U.S. Says Will Give Georgia $1 Billion In Aid

Secretary of State Condoleezza Rice unveiled the package to help reconstruct Georgia`s economy and infrastructure.

The United States on Wednesday announced at least $1 billion in aid to help ally Georgia rebuild after its war with Russia but U.S. officials said it was too soon to consider military assistance.

Secretary of State Condoleezza Rice unveiled the plan to help reconstruct Georgia's economy and infrastructure that was destroyed by the Russian military as it crushed Georgia's attempt to regain control of the separatist enclave of South Ossetia.

Rice sidestepped a question about why Washington has not taken threatened steps to punish Moscow for its military incursion into Georgia, although she said it was "high time" that Russian troops withdrew in accordance with an internationally negotiated ceasefire.

"The free world cannot allow the destiny of a small independent country to be determined by the aggression of a larger neighbor," Rice told reporters at the State Department. With U.S. help, Georgia would "survive, rebuild and thrive."

A multi-year aid commitment to Georgia "will begin now under President Bush and we believe strongly will endure in the next U.S. administration," Rice said.

A new U.S. president will be elected in November and take over in January.

U.S. officials were at pains to stress that the package included no military aid for Georgia. Moscow has accused Washington of resupplying Georgia with military hardware under the cover of humanitarian aid, a charge Washington denies.

"It is not yet time to look at the questions of assistance for the military side," Rice said.

The aid plan was unveiled as Vice President Dick Cheney began a trip to the former Soviet republics of Azerbaijan, Georgia and Ukraine to show U.S. support for its allies in the region despite Russia's military intervention.

RUSSIA 'DONE ITSELF IN'

Russia's decision to send troops into Georgia last month and its subsequent recognition of South Ossetia and Abkhazia, another rebel Georgian region, as independent has drawn western condemnation but few tangible actions to punish Moscow.

Rice said Russia was not achieving its objectives through its actions in Georgia and again said Moscow was putting its participation in global clubs at risk.

"Russia has done itself in on this," she said. But she did not say when the United States might take punitive steps such as scrapping a civilian nuclear deal with Russia. The White House has said U.S. officials may cancel that pact.

In another move that could anger Moscow, Bush on Wednesday also directed federal agencies to expand economic aid for Georgia to help the small strategic ally recover.

Bush said he directed the U.S. trade representative, Susan Schwab, to negotiate an enhanced bilateral investment treaty with Tbilisi and widen preferential access for exports from Georgia into the United States.

Rice said the first tranche of $570 million from the aid package would be delivered to Georgia by the end of 2008 and the rest by a new administration that takes over in January.

Some parts of the package will need to get congressional approval, but difficulty is not expected on Capitol Hill or from the presidential candidates.

Democratic presidential candidate Sen. Barack Obama of Illinois already has endorsed a proposal by his vice presidential running mate, Delaware Sen. Joe Biden, for $1 billion in U.S. aid to the former Soviet republic.

Republican presidential candidate Sen. John McCain of Arizona also has expressed strong support for the Georgian government of President Mikheil Saakashvili.

Two influential senators who are close to McCain, Sen. Lindsey Graham and Sen. Joe Lieberman, have urged that Georgia, which wants to join the NATO alliance, be given anti-aircraft and anti-armor systems to deter any renewed Russian attack.

But U.S. officials said that while Georgia had the right to develop its military, it was too soon for such discussions.

"Before one talks about military assistance it's important to think through and assess what the situation is, what the needs are," said deputy assistant secretary of state Matt Bryza. "The Georgian government needs to take some decisions of its own about what its future force structure would look like, based on what its own goals are."