LEAD: Egypt will not back down in NGO row, says premier

Feb 8, 2012, 17:53 GMT

Cairo - The Egyptian government will not be deterred by US threats of reduced funding in a row concerning alleged illegal activities by non-governmental organizations (NGO) operating in the country, Prime Minister Kamal al-Ganzouri was reported as saying Wednesday.

'The case is in the hands of the judiciary. These organizations are being probed for violating Egyptian laws,' the website of the semi-official newspaper Al Ahram quoted al-Ganzouri as saying.

Egyptian magistrates Monday accused 43 NGO workers, among them 19 United States and two German citizens, of setting up unlicensed offices in Egypt and of providing support to certain political groups during recent parliamentary elections.

They are to appear before a criminal court at a yet-to-be-fixed date.

Their indictment has heightened tensions between Egypt's army-backed government and the United States, which is Egypt's key donor.

US Secretary of State Hillary Rodham Clinton expressed 'deep concerns' after meeting her Egyptian counterpart in Munich over the weekend. In a clear hint towards US aid to the country, she said the situation could 'impact all the rest of our relationship with Egypt.'

Egypt receives 1.3 billion dollars worth of military aid from Washington each year.

The affected US citizens belong to the National Democratic Institute (NDI), the International Republican Institute (IRI), and the International Centre for Journalists and Freedom House.

'Egypt will apply the law in the case and will not retreat because of the aid or any other reason,' Al Ahram quoted al-Ganzouri as saying Wednesday.

Berlin, for its part, has indicated to the Egyptian government that it is fully backing its citizens, who work for the Konrad Adenauer Foundation.

The head the foundation, Hans-Gert Poettering, said Wednesday he still hoped for a 'satisfactory political solution.'

Only five of the US workers - who include Sam LaHood, son of US Transportation Secretary Ray LaHood - are currently in Egypt and face a travel ban.

Last December, Egyptian police raided the offices of 17 local and foreign pro-democracy centres, in a crackdown that brought the country's military rulers under heavy criticism.