US announces major West Asia arms package

WASHINGTON, July 30 (Reuters) The United States today announced military aid packages worth more than 43 billion dollars for Egypt, Israel, Saudi Arabia and other Gulf states in an effort to bolster Arab allies against Iran and others.

The United States plans to offer a 13 billion dollars package for Egypt over 10 years and a billion package for Israel over the same period, increases over previous military funding, as well as unspecified defense aid to Saudi Arabia and Gulf states, said US Secretary of State Condoleezza Rice.

The proposed aid packages still have to be approved by Congress and there is expected to be opposition by some lawmakers, particularly over assistance to Saudi Arabia, which is accused of not being helpful in Iraq.

Rice made the announcement hours before leaving with Defense Secretary Robert Gates for a rare joint trip to Egypt and Saudi Arabia where they are seeking more Arab help in stabilizing Iraq.

''This effort will help bolster forces of moderation and support a broader strategy to counter the negative influences of al Qaeda, Hezbollah, Syria, and Iran,'' said Rice in a statement announcing the defense agreements.

Washington is striving to assure Gulf allies, worried by the growing strength of Iran and war in Iraq, that the United States is committed to the region and will stand by them, with arms sales part of that process, US officials say.

IRAN CRITICAL But Iran accused the United States today of seeking to create fear and cause divisions in the Middle East by announcing the major package of arms deals.

''America has always considered one policy in this region and that is creating fear and concerns in the countries of the region and trying to harm the good relations between these countries,'' Iran foreign ministry spokesman Mohammad Ali Hosseini told a regular press briefing.

Rice said the Bush administration was starting discussions with Egypt for the 13 billion dollars military assistance deal which would strengthen Egypt's ability to ''address shared strategic goals.'' ''Further modernizing the Egyptian and Saudi Armed Forces and increasing interoperability will bolster our partners' resolve in confronting the threat of radicalism and cement their respective roles as regional leaders in the quest for West Asia peace and in ensuring Lebanon's freedom and independence,'' Rice said.

The increased aid package to Israel is a significant rise over a previous 10-year plan negotiated by the Clinton administration in 1998, said US Under Secretary of State Nicholas Burns.

Burns said under that deal Israel got about 2.4 billion dollars in military aid each year which would now rise to about 3 billion dollars annually. Burns planned to travel to Israel next week to conclude the formal agreement for the 30 billion dollars.

''We will have to do a lot of quick follow-up,'' said Burns in a conference call with reporters.

The Saudi package is expected to upgrade the country's missile defenses and air force and increase its naval capabilities, a defense official told Reuters on Saturday. The package for Saudi Arabia and the other Gulf countries could reach 20 billion dollars over 10 years, the official said.

But Burns said the final amount for the Saudi and Gulf states arms package was still being negotiated although he expected it to be in the billions.

Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates are also expected to benefit but no details have been given.

REUTERS JT KP2153