ARABS-ISRAEL - March 23 - Mubarak Warns Sharon.

Egyptian Pres. Mubarak tells Al Ahram: "If it is correct that Sharon spoke of cancelling (US) military aid to Egypt that would be his position and I would consider it a hostile position". (Sharon had been reported by Israel army radio as telling a group of US congressional leaders while on a visit to Washington this week that Egypt faced no strategic threat and as such the US should reconsider its military aid programme. Under the terms of the Camp David peace accords signed in 1979 between Israel and Egypt, the US gives the two countries substantial assistance packages split between military and economic support. In 2001, the US is due to give $1.3 bn in military aid to Egypt and just under $2 bn to Israel. In addition, Washington is due to give the two countries economic aid of $695m and $840m, respectively. The amount of economic aid is in the third year of a 10-year reduction programme which lowers the amount given to Egypt by 5% and 10% annually in the case of Israel - although Israel's reduction is partially offset by an increase in military support. In Jerusalem, Israeli officials decline to comment publicly on the reports that Sharon had asked Washington to cut military assistance to Egypt. But officials at Sharon's office highlight Israel's appreciation of Egypt's central role in the region. The timing of Mubarak's comments is perhaps more significant than their substance. He was speaking ahead of a visit next week to Amman to attend March 27-28 Arab summit concerned primarily with nearly six months of violence between Israel and the Palestinians. Egypt, a prominent moderate in the Arab World, has remained largely silent since Sharon was elected last month although Mubarak has cautioned against talk of war between Israel and the Arab World. In Nov., Cairo withdrew its ambassador from Tel Aviv in protest at the violence. In early April, Mubarak is due in Washington to pay his first visit to the administration of George W. Bush).