It will try to thwart any congressional effort to restrict further engagement with the Morsi regime, for example by cutting off or conditioning foreign aid andmilitarysales.
The International Traffic in Arms Regulations (ITAR) allow the president to ban foreignsales of military products and services if he deems it in the national interest.
In a region that is looking increasingly unstable, the U.S. as well as many Gulf states and Israel may look to sign more FMS (Foreign MilitarySales) contracts.
The development weakening the outlook for foreignmilitarysales is recent unrest in Egypt and Tunisia unrest that calls into question the stability of regional U.S. allies.
But smoother skies could be ahead, thanks to prospects for an extended civilian aerospace up-cycle and the little-noted possibility that Boeing could see an increase in foreignmilitarysales.