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U.S. To Give Georgia $1 Billion

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Published: September 4, 2008

WASHINGTON - The Bush administration announced a $1 billion aid package to Georgia on Wednesday, making the former Soviet republic one of the highest per-capita recipients of U.S. economic assistance.

Secretary of State Condoleezza Rice, who unveiled the plan, drew a direct line between what she called Russia's irresponsible behavior in sending troops into Georgian territory last month and the need for "the free world" to "help Georgia sustain itself during these difficult times."

The announcement came on the eve of Vice President Dick Cheney's arrival today in the Georgian capital of Tbilisi, part of a three-nation tour demonstrating what he called the United States' "abiding interest" in the Caucasus region along Russia's southern border. Cheney stopped Wednesday in Azerbaijan and will also visit Ukraine.

In a statement issued by the White House, President Bush said the United States is "prepared to help Georgia rebuild and regain its position as one of the world's fastest growing economies."

U.S. officials emphasized that the new plan includes no military aid. "There is zero military assistance component in this billion-dollar package," said Reuben Jeffery III, undersecretary of state for economic, energy and agricultural affairs.

He said the multiyear plan includes humanitarian assistance, reconstruction of physical damage to Georgian infrastructure during the recent conflict with Russia, and support for the economy.

"Now is not the time" to discuss military assistance, Jeffery said. He recently returned from a trip to Georgia assessing the level of funding it would need.

The aid will be divided into two phases, Rice said: $570 million from fiscal 2008 and 2009 funds, and $430 million she said she hopes the next administration will approve.

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