Rice rejects Iran charge on West Asia military aid

SHANNON, Ireland, July 31 (Reuters) US Secretary of State Condoleezza Rice headed to the West Asia today with huge military aid for US allies like Egypt and Saudi Arabia, rejecting Iranian charges it would destabilise the region.

Rice, joining US Defense Secretary Robert Gates on a trip to Egypt and Saudi Arabia, planned to urge the region to do more to help over Iraq but dismissed suggestions the tens of billions of dollars in aid was a quid pro quo to get that assistance.

''This is not an issue of quid pro quo. We are working with these states to fight back extremism and to give a chance to the forces of moderation and reform,'' Rice told reporters en route to Egypt.

''We all have the same interest in a stable Iraq that can defend itself, defend its new political system and be unified,'' said Rice, whose plane made a refuelling stop in Ireland.

Iran has criticised the military aid, accusing the United States of trying to create fear and mistrust in the Middle East and of aiming to destabilise the region.

''If there is a destabilisation of the region it can be laid at the feet of an Iranian regime,'' said Rice. ''This is a positive agenda in the West Asia, not one that is a negative agenda or against someone.'' US President George W Bush's administration says the Rice-Gates mission is meant to send a signal to long-standing US allies that Washington remains committed to the region despite its problems in Iraq and the growing strength of Iran.

Before leaving Washington, Rice said the United States planned to offer Egypt a 13 billion dollars package and Israel 30 billion dollars over 10 years -- increases on previous military funding -- as well as aid to Saudi Arabia and other Gulf states.

MILITARY BALANCE Rice said the aid was not aimed at shifting the military balance in the region or kicking off a new arms race.

''There isn't anything new in the United States working with its allies for security cooperation,'' she said.

''We are also determined to maintain the balances -- the military and strategic balances -- within the region that we have been committed to as well.

''These are our long-standing and close friends and allies.

They are strategic relationships that go back decades. We are really determined to signal our commitment and to provide for the security of our allies.'' The Democrat-controlled US Congress still has to approve the funding.

Rice and Gates plan to reassure Arab allies anxious about Iran, urge them to do more to help stabilise Iraq, and get support for a West Asia peace conference planned for later this year.

Privately, Bush administration officials are increasingly frustrated at Sunni-dominated Saudi Arabia's attitude towards the Shi'ite-led Iraqi government, but Rice sought to play down that criticism ahead of talks in Jeddah.

She praised Saudi Arabia for offering debt relief to Baghdad and for attempting to better secure its border with Iraq.

Rice and Gates will meet ministers from the six-member Gulf Cooperation Council as well as from Jordan and Egypt in the Egyptian Red Sea resort of Sharm el-Sheikh today.

The council groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

Later in the day, Rice and Gates will travel to Saudi Arabia for dinner with King Abdullah before going their separate ways tomorrow. Rice will meet Israeli and Palestinian leaders before to Washington on Thursday.

Reuters AK VP0705