U.S. to Pledge $1 Billion to Rebuild Georgia

Sept. 3, 2008— -- The Bush administration announced today an aid package totaling more than $1 billion to help rebuild Georgia, the former Soviet republic that battled Russia last month.

"The billion-dollar support package that I am announcing today marks a significant contribution to our long-term commitment to ensure that Georgia's economic success continues and to deepen our trade and commercial relations with Georgia," Secretary of State Condoleezza Rice said.

"With our full support and with the support of the entire free world, a democratic Georgia will survive, will rebuild and will thrive," she said.

The move follows a fact-finding mission to Georgia last week led by Undersecretary of State for Economic, Energy and Agricultural Affairs Reuben Jeffery.

The multiyear plan will aim to boost Georgia's economy and reconstruct infrastructure destroyed during a short but intense battle with Russian troops. It also will provide humanitarian assistance in Georgia, particularly to populations displaced by the fighting.

The State Department made clear that this aid package will not be used to rebuild Georgia's military. Secretary Rice, however, hinted that such a move may still come.

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

Over half of the package, about $570 million, is expected to be sent to Georgia before the end of the year, with the balance, around $430 million to be doled out in subsequent years.

"We envision a multiyear commitment, which will begin now under President Bush, and we believe strongly will endure in the next U.S. administration," Rice said.

Both presidential candidates, Democratic Sen. Barack Obama and Republican Sen. John McCain, have expressed support for rebuilding Georgia. Obama endorsed a similar aid package proposed by Sen. Joe Biden, now his running mate, after Biden returned from a trip to Georgia just before joining the Democratic ticket.

The European Union has agreed to host a donors conference for Georgia, and the United States will make its formal pledge there.

During the brief war, Russian forces hit strategic transportation, energy and utility targets in Georgia in an effort the Kremlin insisted was aimed at defending the breakaway region of South Ossetia, which had long sought independence from Georgia and received strong Russian support.

Both sides signed a cease-fire agreement, but the United States and its allies say Russia has ignored a requirement that it remove its forces from Georgian territory. Russia insists it is entitled to leave troops on the ground as a buffer zone around South Ossetia.

"It's high time that Russia met its obligations to the cease-fire, to withdraw its forces," Rice said today. She sidestepped a question about any punitive measures the U.S. or its allies could take to punish Russia for its actions.

Recently Moscow recognized South Ossetia's independence and that of Abkhazia, another Georgian province that has declared its intention to be independent of Georgia. The move was quickly condemned by the United States and its allies in Western Europe.

The United States has had a close relationship with Georgia. Washington promoted an energy pipeline that runs through Georgia. Until fighting with Russia began last month, Georgian troops were the third-largest foreign contingent in Iraq, behind only the United States and Great Britain.