CBS/AP/ June 18, 2012, 4:32 PM

Worried U.S. tells Egypt's military to cede power

Egyptians supporters of the Muslim Brotherhood celebrate a premature victory for their presidential candidate Mohamed Morsi in Tahrir Square on June 18, 2012 in Cairo, Egypt.

Egyptians supporters of the Muslim Brotherhood celebrate a premature victory for their presidential candidate Mohamed Morsi in Tahrir Square on June 18, 2012 in Cairo, Egypt. / Photo by Daniel Berehulak /Getty Images

(CBS/AP) WASHINGTON - The Obama administration warned Egypt's military leaders on Monday to speedily hand over power or risk losing billions of dollars in U.S. military and economic aid to the country.

As Egypt's Islamist candidate claimed victory in a presidential run-off, Pentagon and State Department officials expressed concern with a last-minute decree by Egypt's ruling military council giving itself sweeping authority to maintain its grip on power and subordinate the nominal head of state. The move followed last week's dissolution of parliament by an Egyptian court.

"This is a critical moment in Egypt, and the world is watching closely," State Department spokeswoman Victoria Nuland told reporters. "We are particularly concerned by decisions that appear to prolong the military's hold on power."

CBS News correspondent Allen Pizzey reports the ploy will give the Supreme Council of the Armed Forces (SCAF) more power than the president - including control over the country's budget. The military will crucially also determine who writes the permanent constitution that will define the country's future, including the powers of the president. Added to that is a decree granting the security forces wide powers of arrest and detention, which amounts to martial law, without the name.

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Pentagon press secretary George Little said the U.S. was troubled by the timing of the military leaders' announcement, just as polls closed Sunday night for the presidential election. He said the U.S. would urge them "to relinquish power to civilian elected authorities and to respect the universal rights of the Egyptian people and the rule of law."

The military council pledged Monday to hand over power to the new civilian authorities by the end of the month.

But the new military powers and the recent collapse of Egypt's first freely and fairly elected parliament have Washington concerned about the perilous state of Egypt's democratic transition. The Obama administration has sought to safeguard its interests while championing change in Egypt. Sunday's election runoff were the second round of the first presidential elections after three decades of authoritarian rule under Hosni Mubarak, who made Cairo a bulwark of American influence in the Middle East before being pushed from power in February 2011.

Nuland said Egypt's military authorities need to "restore popular and international confidence in the democratic transition process" by ensuring an inclusive constitution-writing process, a democratically elected parliament and a swift handover of power to a civilian government.

And asked about calls from Congress for a review of U.S. military aid to Egypt, which the administration granted a waiver for in March, she said the U.S. was laying down "clear markers" for Egypt's ruling council to follow.

"The decisions that are taken in this crucial period are naturally going to have an impact on the nature of our engagement with the government and with the (military council) moving forward," she said. Military leadership have "made a commitment to allow a transfer of democratic power, and we want to see them meet those commitments," adding that all aspects of U.S.-Egyptian relations could be affected.

The new constitutional amendments pushed through by Egypt's military leadership strip the president of almost all significant powers. The military decreed that it will have legislative authority after a court dissolved parliament, it will control of the drafting a new constitution and will not allow civilian oversight of its significant economic interests or other affairs.

Also Monday, Nuland condemned an attack in Israel by militants who crossed over from Egypt's turbulent Sinai desert before opening fire, killing an Israeli worker. Two assailants were shot dead in the ensuing gunfight with Israeli troops, though no group claimed responsibility. The incident underscored growing lawlessness in the desert since Mubarak's ouster 16 months ago.

"We remain concerned about the security situation in the Sinai Peninsula and call for restraint on all sides," Nuland told reporters. "We encourage the Egyptian government to find a lasting resolution to the issue of Sinai security."

© 2012 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
9 Comments Add a Comment
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melpol12 says:
If military aid to the Egyptian military was withdrawn it would be replaced with an army of holy warriors, each wearing a suicide vest. Believers in the sacred word will earn their ticket to paradise even if they have to crawl on their bellies to Israel. It is easier to defend against tanks and planes than thousands of Jihadists disguised as women.
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cbsnews_viewer says:
If no one stands up to the Military Council, then they will do any damn thing they want. The judges' ruling said that 1/3 of the seats had to be independents, and that was something the Muslim Brotherhood did violate. (Csmonitor.com). (ok. But the judges did not say that the military councils could make legislation, or laws any damn way they choose).Now, you have these last minute power grabs when it appears that the elections are not going to go to the former Air Force chief. The 3rd place candidate before the run off was a Arabian nationalist. The leftists, and centrists that started the revolution and country #2 (after Tunesia) 'arab spring'. They came in behind them. So in conclusion: Just because the muslim brotherhood are being bad sports and trying to take over total power does not mean that the military council should be allowed to do the same thing just to stop them. The Egyptians should be allowed sometime of proportional representation with a minimum of basic rights for all including minorities. Democracy can be messy but necessary. When George Washington was part of the ruling class in the United States' formation we had the bill of rights years later (except for woman and slaves which considered as 3/5s of a person).I do not know what is going to happen. Its like a revolution without a true overthrowing of the government.
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takacrat says:
I'm sure that Obama has other Government Programs that he needs to fund this couple of Billions, not being spent, TOO!
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oneStarman says:
Try Telling the U.S. MILITARY to Cede Power to the american People. Whatever the Country the MILITARY are the Real ENEMY. In the USA the Military CONSUMES $.59 of EVERY Tax Dollar - Without this burden there would be No National Debt. THOUSANDS of American Lives have been WASTED and HUNDREDS of THOUSANDS of Iraqi and Afghan Lives have been Taken in Wars without Purpose. We act as though to KILL and DIE are the Highest Purpose One Can Aspire to in SERVICE to One's Country. Why Not work for LIFE for Ourselves and Our Grandchildren. The WORLD is being DESTROYED by Corporate Greed and Shortsighted Stupidity and Most Importantly OUR OWN COMPLACENCY.
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1notrub11 says:
Warn????? They are probably looking at how we are handling aid to Pakistan and thinking: What, me worry?
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valponcho says:
Egyptian military I am afraid are the only thing that will keep the Coptic Christians from being slaughtered by Islamists.
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valponcho replies:
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I might also add that once they are gone, you can expect Egyptian antiquities to also be destroyed. Islam doesn't respect former culture unlike Christianity does.
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fiddlestickawshucks says:
"The US will stop sending millions in military and foreign aid to Egypt if the military does not step down".

WHAT? WHAT??

What makes the US think the military in Egypt will step down if we continue to send money to the military.

Why should they.??

Stop sending American taxpayers money to foreign countries.

If these countries need food, medicine etc, to survive; do it now, but don't send one more penny as aid to the military.

What the hell are the US, NATO, the Arab League thinking.??

Oh; exscuse me; apparently they don't "think" at all.!

Almost no government in the world appears to have any common sense.

When the common sense was being included in the brains, they evidently thought they said trains and they missed theirs.

Diplomacy, political correctness and the lack of logical, common sense thinking are eventually going to destroy the world, and anarchy will rule.
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time2fightback replies:
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What are you talking about, this government has to stop giving money to ALL countries, WE ARE BROKE..
WAKE UP AMERICA STOP PAYING TAXES YOUR MONEY GOES TO THESE pos ANIMALS!!!!