IV 

115TH CONGRESS 

1ST SESSION H. RES. 113 

Expressing the sense of the House of Representatives that the United States 

should continue to authorize cash flow financing to Egypt and expand 

other areas of cooperation. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 9, 2017 

Mr. ROHRABACHER submitted the following resolution; which was referred to 

the Committee on Foreign Affairs, and in addition to the Committee on 

Ways and Means, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

RESOLUTION 

Expressing the sense of the House of Representatives that 

the United States should continue to authorize cash flow 

financing to Egypt and expand other areas of cooperation. 

Whereas the United States and the Arab Republic of Egypt 

have enjoyed decades of cordial and productive relations; 

Whereas Egypt is a vital United States ally in a region where 

many threats emerge and opportunities arise; 

Whereas the United States deplores terrorist attacks in 

Egypt by the Islamic State of Iraq and the Levant 

(ISIL) and other terrorist organizations; 


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•HRES 113 IH 

Whereas the United States applauds the Egyptian Government for having constructive ties and mutually beneficial 

relations with Israel and historic relations with its neighbors; 

Whereas United States-Egypt relations are stronger when 

such relations are based on both mutual strategic interests and shared values; 

Whereas, after a major popular uprising of 33,000,000 Egyptian citizens on July 3, 2013, removed from power 

former Egyptian President Mohammad Morsi of the 

Muslim Brotherhood, on June 8, 2014, Abdel Fattah elSisi was democratically sworn into office as President of 

Egypt; 

Whereas Egypt maintains the longest standing parliamentary 

system in the region; 

Whereas President el-Sisi has reached out to the minority 

Christian community in Egypt, calling for unity among 

all Egyptian citizens regardless of religion; 

Whereas President el-Sisi has made courageous, but difficult, 

economic reforms to put the Egyptian economy back on 

keel; 

Whereas under the first eight months of President el-Sisi’s 

leadership, Egypt’s debt fell 13.5 percent; 

Whereas Moody’s, Fitch, and Standard & Poor’s have all upgraded Egypt’s credit rating, as a result of its recent economic reforms; 

Whereas Egypt has sought to partner with and emulate free 

societies around the world through its membership and 

participation in the United Nations, the World Trade Organization, the International Monetary Fund, and the 

World Bank; 


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•HRES 113 IH 

Whereas President el-Sisi continues to defend the rights of all 

Egyptians without prejudice to religion, ethnicity or origin; 

Whereas, on March 31, 2015, President Obama announced 

that the United States would stop offering cash flow financing (CFF) to Egypt starting in fiscal year 2018; 

Whereas CFF is an important financial tool that allows foreign governments to fund United States defense equipment acquisition in installments over time, rather than 

full payment at once; 

Whereas every Presidential administration since 1979, the 

first year CFF was authorized to Egypt, has provided 

CFF to Egypt, making President Obama’s announcement 

a departure from long-standing United States policy; 

Whereas the extension of CFF further strengthens ties between the United States and Egypt; 

Whereas assistance from the Economic Support Fund (ESF) 

to Egypt has decreased from $815,000,000 in fiscal year 

1998 to $241,000,000 in fiscal year 2013; 

Whereas Congress cut the funding to Egypt from the ESF 

to $200,000,000 in fiscal year 2014 and to $150,000,000 

in fiscal year 2015; 

Whereas the Obama Administration’s request for assistance 

to Egypt from the ESF for fiscal year 2016 and fiscal 

year 2017 was $150,000,000; 

Whereas coupled with the diminishing economic assistance 

from the United States, the refusal to authorize CFF to 

Egypt limits Egypt’s ability to provide regional stability, 

adequately combat terrorism, and further develop its internal economy; 


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•HRES 113 IH 

Whereas these developments also weaken the United StatesEgyptian bilateral relationship; 

Whereas the Qualified Industrial Zones (QIZ) are designated 

geographical areas in Egypt, the products of which are 

granted duty free access to United States markets provided such products meet specific targets of inputs from 

Israel; 

Whereas there are over 15 Qualified Industrial Zones in 

Egypt which host over 700 qualifying companies; 

Whereas companies operating within such zones have enjoyed 

more than $1,000,000,000 in annual sales; 

Whereas other benefits of the QIZ program include enhancing economic cooperation between Egypt and Israel, 

lower unemployment, and ever expanding business; 

Whereas education remains another important area of cooperation between the United States and Egypt; and 

Whereas the Egyptian economy has suffered tremendously in 

the past five years with an extreme slowdown in economic 

growth, a major reduction in foreign reserves, a diminishing inflow of income from tourism, a significant expense fighting terrorism, and management of a difficult 

economic transition with some, but not sufficient, assistance from the IMF: Now, therefore, be it 

1 Resolved, That the House of Representatives— 

2 (1) reaffirms its commitment to the fruitful alli3 ance between Egypt and the United States; 

4 (2) sends its thoughts and prayers to the vic5 tims of terrorism in Egypt; 


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•HRES 113 IH 

1 (3) stands with the people and the Government 

2 of Egypt in the face of terrorism; 

3 (4) stresses the importance of continuing to 

4 provide Egypt with the current levels of military as5 sistance; 

6 (5) calls for an increase to pre-fiscal year 2009 

7 levels of United States economic aid to Egypt; 

8 (6) calls for the President to reinstate cash flow 

9 financing (CFF) to Egypt in 2018, and afterwards; 

10 (7) reaffirms the importance of the United 

11 States providing a $10,000,000,000 loan guarantee 

12 for five years; 

13 (8) calls for the expansion of the QIZ program; 

14 and 

15 (9) supports greater academic cooperation be16 tween the United States and Egypt, to include the 

17 extension of more scholarships to Egyptian students 

18 studying in the United States. 

Æ 


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