Egypt proceeds with trial as talks with U.S. continue

CAIRO - Egypt pushed ahead Sunday with the trial of 43 employees of pro-democracy groups, including 16 Americans, even as Egyptian and U.S. officials tried to resolve the case that has caused the deepest rift in their alliance in 30 years.

In a sign those back-channel negotiations may already be bearing fruit, only Egyptian defendants attended the hearing and the judge gave no instructions to police to ensure the American and other foreign defendants attend the next hearing in two months. The 43 are charged with using illegal foreign funds to foment unrest that has roiled Egypt over the past year. None of the Americans appeared in court for the hearing.

The United States has threatened to cut off aid to Egypt over the crackdown on the nonprofit groups, putting at risk $1.3 billion in military aid this year and an additional $250 million in economic assistance. Egyptian officials say the matter is entirely in the hands of the judiciary, but many view the U.S. threat as unacceptable meddling.

U.S. Secretary of State Hillary Rodham Clinton has raised the dispute twice in person with Egypt's foreign minister - once in London and once in Tunisia - in recent days, according to a senior U.S. official speaking on condition of anonymity due to the delicacy of the discussions.

Speaking to reporters in Morocco on Sunday as the trial opened, Clinton said American officials were evaluating the latest developments.

President Obama has urged Egypt's military rulers to drop the investigation, and high-level officials, including Joint Chiefs Chairman Martin Dempsey and Sen. John McCain (R., Ariz.), have flown to Cairo recently to seek a solution. However, the United States cannot be seen as pushing too hard against the ruling generals, who are viewed as the best hope for a stable transition.

The case has been linked to the turmoil in Egypt since an 18-day uprising forced Hosni Mubarak to step down on Feb. 11, 2011. It poses questions about the commitment to democracy by the Mubarak-era generals who took over from their former patron.

The U.S. groups have trained thousands of Egyptians on political activism and organizing, an education that played a key part in the success of last year's uprising. The generals contend they support the uprising, routinely referring to it as the "glorious revolution."

But rights groups have criticized the investigation into the civil society groups and the charges, saying they are part of an orchestrated effort by the generals to silence critics and cripple pro-democracy organizations critical of their handling of what was supposed to be a transition to democracy.

Of the 43 defendants in the case, 16 are American, 16 are Egyptian, and others are German, Palestinian, Serb, or Jordanian. Of the 16 Americans, seven have been banned from leaving Egypt, among them Sam LaHood, son of Transportation Secretary Ray LaHood.

The 43 worked for the International Republican Institute; the National Democratic Institute; Freedom House, a group that trains journalists; and a German nonprofit group. If convicted, they could face up to five years in jail.

The timing of the crackdown raised questions about the military's motives; the generals have promised to hand over power to a civilian authority by the end of June. It could reflect concern that the pro-democracy movement will push for prosecuting the generals after they hand over power or force civilian oversight over the military's affairs that would undercut their financial and political power.