Bush announces billion-dollar aid for Georgia

The US will send an extra billion dollars to Georgia to help the pro-Western former Soviet republic in the wake of Russia’s invasion, President George Bush said today.

He said in a statement: “Georgia has a strong economic foundation and leaders with an impressive record of reform.

“Our additional economic assistance will help the people of Georgia recover from the assault on their country, and continue to build a prosperous and competitive economy.”

Vice President Dick Cheney, due in Georgia tomorrow, planned to make the massive aid package a major highlight of his discussions with Georgian president Mikhail Saakashvili.

The vice president, in Azerbaijan today, is on a tour of three former Soviet republics that are wary of Russia’s intentions in what Moscow likes to call its “near abroad” and what Mr Cheney termed “the shadow of the Russian invasion of Georgia”.

Secretary of State Condoleezza Rice told reporters at the State Department: “The free world cannot allow the destiny of a small independent country to be determined by the aggression of a larger neighbour.”

She mocked Russia for its recognition of the two separatist regions in Georgia that are at the heart of the conflict that broke out last month, and for its failure to garner international backing.

“Almost no one followed suit, I might note. It isn’t really an impressive list to have Abkhazia and South Ossetia recognise each other,” she said.

Also in tandem with Mr Bush, the International Monetary Fund announced it has agreed to lend Georgia 750 million US dollars for economic recovery.

The US administration is delaying an announcement on some sort of punishment of Russia for its actions against Georgia and its refusal thus far to comply with a French-brokered ceasefire.

But the decision to shower tiny Georgia with such substantial aid and have Mr Cheney talk about it in Moscow’s backyard will be seen by the Kremlin as highly provocative, if not a punitive measure in itself.

The dollar total pales in comparison to the two billion dollars a year the US gives Israel, its largest aid recipient. But the sizable amount still shows the strategic importance the US places on both supporting Mr Saakashvili’s Western-leaning government and pushing back against a newly resurgent and energy-rich Moscow.

Mr Cheney made a point in Azerbaijan of saying that Washington has “a deep and abiding interest” in the region’s stability.

The US has found during this conflict that it has little leverage with Russia. Moscow has drawn condemnations from the United States and Europe, but little else.

Meanwhile, Russia closed its embassy in Georgia today, following Georgia’s severing of diplomatic ties with Moscow.

After years of tensions, the recent fighting began on August 7 when Georgian forces went into its breakaway province of South Ossetia in hopes of re-establishing control. Russian forces repelled the offensive and pushed deep into Georgia proper.

Both sides signed the ceasefire in mid-August, but Russia has ignored its requirement for all forces to return to pre-war positions.

Mr Bush said the money will meet humanitarian needs, such as helping to resettle families that were displaced. The US has already provided 30 million dollars in humanitarian relief since the conflict began.

The United States has sent two military ships bearing aid to Georgia, and the USS Mount Whitney – the flagship of the Navy’s 6th Fleet – steamed through the Dardanelles early today and was expected to pass through the Bosphorus later in the day. The two Turkish-controlled straits link the Mediterranean to the Black Sea.

The new funds are also aimed at helping impoverished Georgia, wedged between Russia and Turkey on the Black Sea, to rebuild infrastructure and boost an economy that has been growing but is nowhere near grown.

Georgia wants to rebuild and modernise its military. Though US officials emphasised that none of the current package was for military aid, there was no effort to rule that out for the future.

Russia has accused the United States of delivering arms on the US warships that have docked in Georgian ports with humanitarian supplies.