U.S. To Announce $1B In Georgia Aid

Bush Administration Plans To Roll Out Economic Aid After Georgia-Russia Clash

(CBS/ AP)  The Bush administration plans to roll out a $1 billion economic aid package for Georgia on Wednesday to help the pro-Western former Soviet republic rebuild after Russia's invasion last month, The Associated Press has learned. Earlier Tuesday, Russia issued further warnings against NATO involvement in the region.

The multiyear proposal calls for spending about half the total in the administration's remaining five months in office and recommending that the next president and his team continue financing the project when they take over in January, a senior official said.

Both the Democratic and Republican contenders for November's presidential elections, Barack Obama and John McCain, have expressed support for Georgia's embattled government in the face of the Russian invasion after Georgia moved to reclaim a breakaway province.

The package, some of which will require congressional approval, will be a substantial U.S. investment in Georgia but is only half the $2 billion a year in aid that Washington provides its closest Middle East ally, Israel.

The White House and State Department intend to jointly announce the aid package Wednesday afternoon after a fact-finding and assessment mission to Georgia by Reuben Jeffrey, a senior U.S. diplomat who returned from the country last week, the official told the AP.

Jeffrey has recommended that aid be sped to Georgia to help rebuild its economy and infrastracture that was destroyed by Russian tanks, troops and airstrikes, according to the official, who spoke on condition of anonymity ahead of the announcement.

Specific details of the aid were still being worked out, but large chunks will go toward fixing transportation, utility and other essential facilities damaged in the fighting, the official said.

The aid is aimed at showing concrete U.S. support for Georgian President Mikhail Saakhashvili and his government and is to be announced shortly before Vice President Dick Cheney visits Georgia this week.

It follows increasingly harsh criticism from Bush, Cheney, Secretary of State Condoleezza Rice and other top administration officials of Russia's actions against Georgia and its refusal thus far to comply with the terms of a cease-fire brokered by the French and the European Union.

However, the aid will not be accompanied by threatened punitive measures against Russia that still are being considered and which the administration would like to take in concert with European nations, the official said.

European Union leaders threatened on Monday to delay talks with Moscow on a political and economic agreement unless Russia pulls its troops back from positions in Georgia that they occupied in early August in a dispute over the separatist areas of Abkhazia and South Ossetia.

On Tuesday, Russian Prime Minister Vladimir Putin said that Russia will respond calmly to an increase in NATO ships in the Black Sea in the aftermath of the short war with Georgia, but promised that "there will be an answer."

Russia has repeatedly complained that NATO has too many ships in the Black Sea. Foreign Ministry official Andrei Nesterenko said Tuesday that currently there are two U.S., one Polish, one Spanish and one German ship there.

Russian officials say the United States could have delivered weapons to Georgia under the guise of humanitarian aid.

"We don't understand what American ships are doing on the Georgian shores, but this is a question of taste, it's a decision by our American colleagues," he reportedly said. "The second question is why the humanitarian aid is being delivered on naval vessels armed with the newest rocket systems."

On Aug. 7, Georgian forces attacked South Ossetia, hoping to retake the province, which broke away from Georgia in the early 1990s. Russian forces repelled the offensive and pushed into Georgia.

Both sides signed the cease-fire in mid-August, but Russia has ignored its requirement for all forces to return to prewar positions. Moscow insists the cease-fire accord allows Russian checkpoints in security zones of up to four miles into Georgian territory.

Russia has now recognized the independence of the two regions, drawing condemnation but little else from the United States and Europe, which have found only limited leverage with Moscow.

[tngreen]

Is this serious? We still have people living in FEMA trailers and we are spending $1B to build an infrastructure for Western oil tycoons to enjoy while working in Georgia so that they can save their record profits for a rainy day? If the American people re-elect a Republican president, I will be completely convinced that we are the stupidest generation in the history of **** sapiens.

[samsel3]

November 4, 2004 the IAGS Energy Security reported :

"Much of the stability along the BTC corridor would depend on Russia. Russia is not supportive of BTC. It sees it as a U.S. plot to gain control over the Caucasus and cut all links between Moscow of the former Soviet states, building an economic infrastructure that would prevent the former Soviet states to ever reunite with Russia. Moscow also views BTC as a way to weaken its position as major supplier of oil to the European markets. In a recent article at Asia Times Online, John Helmer refers to the BTC project as an effort %u201Cto redraw the geography of the Caucasus on an anti-Russian map.%u201D

Russia sold it s investment share of the BTC pipeline to Japan before the Iraq invasion.

After loosing Iraqi oil to Operation Iraqi Freedom, they negotiated supplies with Iran. The Russians were not happy with Cheneys BTC pipeline or the Caspian Sea Pipelines project going through Afghanistan. This threatens their economy based on oil & gas.

[samsel3]

The truth is, this is all about control of oil & gas pipelines. The BTC oil pipeline in South Ossetia & the Nabucco natural gas pipeline in NW Georgia supply markets in the European Union. In November 2003 the World Bank funded the BTC pipeline to circumvent Russian pipelines supplying europe.

Shareholders in the BTC pipeline are: British Petroleum, AzBTC, Chevron, Statoil, TPAO, ENI, Total, Itochu, INPEX, ConocoPhillips & Amerada Hess.

Russia is the second largest supplier of oil & gas on the planet.
After loosing Iraqi oil to Operation Iraqi Freedom, they negotiated supplies with Iran. The Russians were not happy with Cheneys BTC pipeline or the Caspian Sea Pipelines project going through Afghanistan. This threatens their economy based on oil & gas.

Again it''s the Bush administrations lust for money in World markets for their BIG OIL buddies

[cbs_bull]

Hey, it was Georgia who attacked Russia first. Now it''s clear that Georgia''s action has an explanation. Similar to why Bush/Cheney used make-up facts to start a war. All for money.

[gregvannice]

O yea by the way I served army infantry for 8 years and I am looking at the US security interest(It isn''t always with war that you look after your country)TAKE CARE OF YOUR CITIZENS!!!!!!!

[gregvannice]

I am happy to see others who agree; that we should take care of the flood victims in the midwest, or the the ones still without homes from Katrina, or any number of fire victims throughout the country rather than ship more money that we don''t have overseas.

[vietnam21]

"For those who criticize our government:
1) you should all move to Russia and,
2) what the gosh-darned-heck do you know about US security interest"

[tachoma-2009]

20 billion to go to mars
1 billion to georgia while american people are going broke
jobs going to the mexicans while they take the money back to mexico.
everybody want to hang on to power in this country...

[tootall10142]

IF RUSSIA HAD SUCCEDED WE WOULDNT BE SENDING THEM ANY DA--MED THING.YET WE HAD TO THREATEN TO DISLIKE RUSSIA IF THEY DIDNT WITHDRAW.THEY ARE PROTECTING WHAT MONEY WE WILL SEND THEM NEXT THEY BLOW THIER RESOURSES ON IDEAS TO WIN WARS THAT ONLY EXIST IN THIER MIND.

[prudentvoter]

The US taxpayers should have a say in this. Our government cannot be allowed to support tin pot dictators who kill innocent civilians and international peacekeepers in clear violation of international law and human conscience.

[nextgenman]

Georgia. For a minute there I tought The Shrub Party was actually going to help fellow Americans. I mean, its only American Tax Dollars the Republicans willing give to foreigners.

[cbs_bull]

This is ridiculous. Guess the CBS has learned fast from the Chinese government about how to censor internet postings.

[cbs_bull]

Why ''***''(*** Cheney) in my message has become ''***''?
What''s wrong with CBS News?

[cbs_bull]

1 billion dollars? Why should we as tax payers pay for it? ***''s old company and others have made enough profits from our tax dollars in Iraq. Let them pick up the tab.

[gobluesstl]

I agree , Their soldiers served with ours in Iraq . We should stand with them now. The best face we should show to the Russians, is a stern one.

[nothappyatall]

Oh yes, king george is still mighty loose and free with OUR tax dollars, another BILLION dollars shipped off to some foreign country while our economy tanks and people lose their homes, so what else is new?

[zhynaryll]

Where is the military aid? Are we really afraid of the Russians? I seriously doubt they''d attack any US ship carrying aid of any kind - it''d be suicide for the attacker! We need to respond forcefully to the Russians - not militarily, but through a show of resolve and the flag, as they used to say when our fleet showed up on someone''s shore!

[ndjam]

Excellant news. Georgia is a true ally, they deserve this package.