Clinton: Near resolution of Egypt NGO case

Washington and Cairo may soon end a standoff over 16 pro-democracy Americans, Secretary of State Hillary Clinton said as the case\'s judges recused themselves. \"We are engaged in very intensive discussions with the Egyptian government about finding a solution,\" Clinton said during a Senate hearing. \"We\'ve had a lot of very tough conversations, and I think we\'re ... moving toward a resolution.\" Cairo is \"coming to understand\" Washington was serious when it threatened to cut off $1.55 billion in annual aid to Egypt, she said Tuesday. When pressed for more information by Sen. Lindsey Graham, R-S.C., Clinton said she did not \"want to go any further,\" but said \"we\'re hoping to resolve this very soon.\" In recent weeks, as tensions over the case escalated, Cairo said it might retaliate against Washington\'s possible aid cutoff by reassessing its 1978 Camp David peace treaty with Israel. Forty-three defendants, including at least 16 U.S. citizens, have been charged by Egypt with operating local offices of international non-governmental organizations without required licenses and illegally receiving and distributing foreign funds, state news media have reported. If convicted, they could face a financial penalty and up to five years in prison. The American defendants work for four U.S. groups. The National Democratic Institute and the International Republican Institute are chartered as democracy-building organizations and have close ties to U.S. congressional leaders of both major parties. The other two are Freedom House, which conducts research and advocacy on democracy, political freedom and human rights, and the International Center for Journalists, devoted to journalism training to raise journalism standards. Egyptian officials have accused the organizations of paying protesters to incite Egyptian unrest in a bid to destabilize the country. The defendants and Egypt\'s civil-society community say the charges are a bid by Egypt\'s military rulers to blame protests, labor strikes and violence on a foreign conspiracy, The Wall Street Journal reported. Nine of the 16 U.S. citizens are no longer in Egypt. The seven others, barred from leaving the country, have taken refuge at the U.S. Embassy to avoid potential arrest. One of the seven, Sam LaHood of IRI, is the son of U.S. Transportation Secretary Ray LaHood. Graham asked Clinton if she felt the charges against the workers were legitimate. \"No, I do not,\" she said. The workers\' trial started Sunday but was adjourned within 2 hours until April 26 to let lawyers review court documents, the court said. The three judges assigned to a case then submitted letters Tuesday, shortly after Clinton\'s testimony, saying they would step down, citing \"embarrassment\" over the trial, Egypt\'s official Middle East News Agency reported. Abdel Moez Ibrahim, head of the Cairo Appeal Court, told CNN the judges made their decision for \"personal psychological reasons.\" He did not elaborate. The Ministry of Judiciary had no immediate comment. The appeals court intends to assign new judges to the case, Ibrahim said.