Pakistan Defiant Over U.S. Aid Cuts

The Pakistani army contends it is committed to fighting terrorists and is surprised the U.S. is suspending $800 million in aid, but a spokesman insists today the cut in military aid during these strained times will have "no significant effect" on anti-terror efforts.

"We will continue our operations as in the past," Gen. Athar Abbas tells the BBC after a top Obama administration official said the U.S. was pulling the purse strings.

Frustrated by duplicitous behavior on the part of Pakistan amid evidence that some officials may have helped hide deceased Al Qaeda boss Osama bin Laden, White House Chief of Staff Bill Daley told ABC"s "This Week" program yesterday that Islamabad had "taken some steps that have given us reason to pause on some of the aid."

"Obviously, there's still lot of pain that the political system in Pakistan is feeling by virtue of the raid that we did to get Osama Bin Laden, something that the President felt strongly about and we have no regrets over," Daley explained.

The U.S. hands Pakistan $2 billion a year in aid, but amid the decline of the American economy, combined with suspect Pakistani activities, some in Congress say it is time to end that foreign aid.

"Until we get through these difficulties, we will hold back some of the money that the American taxpayers have committed to give them," Daley added.

At the heart of the deteriorating relationship is Pakistan's spy agency, the powerful Inter-Services Intelligence, which has ties to militants groups and is believed to have been infiltrated by anti-American terrorist sympathizers.

The U.S. also nbelieves the ISI assassinated Saleem Shahzad, 40, to muzzle his reports that the ISI had been corrupted by Al Qaeda operatives or allies.

Halal MREs From U.S. Arrive in Benghazi

Crucial supplies from the United States are arriving in the de facto rebel capital of Benghazi.

More than 10,000 field rations from the U.S. prepared in the Islamic tradition (Halal)  arrived yesterday as opposition fighters prepare to launch another offensive aimed at sweeping up the oil patch towns and terminals on North Central Libya.

The MREs -- meals ready to eat -- from Department of Defense stocks are just the first shipment of millions of dollars worth of surplus non-lethal U.S. aid being sent to the rebels' Transitional National Council.

"Other items are en route and include medical supplies, uniforms, boots, tents, and personal protective gear, and these are also from DOD inventories," said State Department spokesman Mark Toner. "We continue to work with the TNC to determine what additional assistance requirements we might be able to support in the coming weeks."