Rulers in post-Mubarak Egypt are debating amongst themselves over a US plan to fund the democratic transition in the country. Secretary of State Hillary Clinton had said some of the 250 million dollars in annual economic aid for Egypt would be redirected to "support the transition and assist the economic recovery," shortly after Mubarak was ousted.

Senior Egyptian officials warned non-government organizations that taking US funding would damage the country's security, while the Egyptian government has also complained directly to the US, the Wall Street Journal reports.

US officials are expressing their concerns over such resistance to democratic freedom, especially from the new military-controlled government, which is overseeing the country until the September elections.