In a sign of tensions with Pakistan following the U.S. raid on former Al Qaeda leader Osama bin Laden, White House chief of staff Bill Daley said today that the U.S. will suspend some $800 million in aid to Pakistan's military.

"Obviously they have been an important ally in the fight on terrorism. They've been the victim of enormous amounts of terrorism," Daley said. "But right now they have taken some steps that have given us reason to pause on some of the aid which we were giving to their military, and we're trying to work through that."

Daley confirmed a report in The New York Times this morning that "up to about $800 million in military aid and equipment, or over one-third of the more than $2 billion in annual American security assistance to Pakistan, could be affected" because of concerns over Pakistan's expulsion of American military trainers, as well as Pakistan's ineffectiveness in fighting militants.

Tensions have been on the rise since the successful U.S. mission against bin Laden in May, who was hiding in a suburb of Pakistan's capital, with Pakistani officials angry over the incursion into their territory without permission.

"It's a complicated relationship in a very difficult complicated part of the world," Daley said. "Obviously there is still a 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, that we have no regrets over.
The Pakistan relationship is difficult, but it must be made to work over time," Daley added. "But until we get through these difficulties, we will hold back some of the money that the American taxpayers have committed to give to them."