By Saeed Shah | McClatchy Newspapers
ISLAMABAD, Pakistan — The Pakistan military declared Sunday that it doesn't need U.S. military aid, as the White House confirmed that Washington is stopping some $800 million in assistance to Pakistan's armed forces, further poisoning ties between the two anti-terror "allies."
Already tense relations between Islamabad and Washington had plummeted after the unilateral U.S. raid to kill Osama bin Laden in northern Pakistan in May, even before the current row over aid. Nuclear-armed Pakistan is struggling to combat Islamic extremists, while its economy is lurching towards disaster.
At stake is Pakistan's co-operation against al Qaida, the Taliban and other extremist groups that the increasingly bitter ties are putting at risk. Much of al Qaida's remaining leadership is believed to be hiding in Pakistan, while Pakistani territory is used as a safe haven by the Afghan Taliban and the allied Haqqani network, fighting across the border in Afghanistan.
"The Pakistani relationship is difficult but it must be made to work over time," William Daley, the White House chief of staff, told ABC News on Sunday. "But until we get through these difficulties we will hold back some of the money that the American taxpayers have committed to give them." Daley said the figure amounted to about $800 million.
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http://www.mcclatchydc.com/2011/07/10/117389/pakistan-defiant-as-us-cuts-off.html