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Office and has already decided to jam through the proposal that will benefit this group to build nuclear plants in saudi arabia. so lawyers told him and told mime on the nsc, that's a criminal conflict of interest and it shouldn't go forward, yet people close to flynn continued to push it. secondly, there's rules about transferring nuclear technology to other countries. there's policies and procedures to make sure they won't build weapons with the byproducts. according to this report, the rules were not followed. flynn and his people were trying to push it through, disregarding the rules, and ...

They reminded lawmakers that if they can't build weapons for egypt, all those small town suppliers from lima, ohio to oxford, michigan will get buried. >> joe with company x has made this particular piece of a tank for 20 years and that's what he does. he's very good at it. but if i don't give them an order for six months, i'm not sure what's going to happen to old joe and his workforce. >> reporter: jim colby used to control the purse strings on egypt. he heard that pitch year after year. and it worked. >> the contractors have a vested interest in keeping the process going forward. >> reporte...

>> you're buying u.s. equipment from u.s. contractors. >> reporter: the u.s. doesn't cut a check to egypt, it deposits the aid in a count at the federal reserve bank. that money pays american defense contractors to build the weapons and parts for egypt. that includes $400 million to general dynamics for tank kits and $2.5 billion to lockheed for f-16s. big companies sent legions of lobbyists to capitol hill and reminded the government if they can't build weapons to egypt, all the small town suppliers, from ohio, to oxford, michigan, will get buried. >> joe with company "x" has made this piece ...

Capitol hill. they reminded lawmakers that if they can't build weapons for egypt, all the small town suppliers from lima, ohio to oxford, michigan will get buried. >> joe with company "x" made this particular piece for the tank for 20 years. he's good at it. if i don't give him an order for six months, yorn what's going to happen to him. >> they used to control the purse swings. they heard it year after year and it worked. >> the contractors have a vested interest in keeping the process going forward. >> reporter: the u.s. put its in a bind, cutting the aid won't get the government to pay off ...

"outfront" investigation. >> reporter: the obama administration could say enough's enough. and cut aid to egypt. but some american companies want to keep that money flowing because they are the ones cashing in. >> you're buying u.s. equipment from u.s. contractors. >> reporter: the u.s. doesn't cut a check to egypt. it deposits the aid in an account at the federal reserve bank. that money pays american defense contractors to build the weapons and parts for egypt. that includes $400 million to general dynamics for tank kits. and $2.5 billion to lockheed for f-16s. big companies got these contra...