Rice coupled announcement of the aid plan with harsh criticism of Russian behavior during and after the brief conflict.

Shesaid the invasion by Russia failed to topple Georgia's democracy buthas raised serious questions about the wisdom of integrating Moscowinto international institutions.

US Announces $ 1 Billion Aid Package for Georgia

The U.S. aid package isentirely economic and U.S. officials say they hope more than half ofit, about $570 million, can be delivered by the end of the year.

US Announces $ 1 Billion Aid Package for Georgia

Citingbipartisan sympathy and support for Georgia in the U.S. Congress, Riceexpressed confidence the remainder will be provided, regardless ofwhether Senator Barack Obama or Senator John McCain wins the Novemberelection.

US Announces $ 1 Billion Aid Package for Georgia

At the roll-out event for the aid plan, the Secretaryof State said Russia may have demonstrated its military potency inGeorgia but the operation has called into question its standing as aresponsible player in world affairs. "It is very clear that Russia isnot achieving its objectives. Georgian democracy is standing. It isthriving. It is receiving extraordinary international support -- thatdespite the unfortunate Russian decision to recognize South Ossetia andAbkhazia, which are zones of conflict and which in the very cease-fireagreement that Russia signed, were to be subject of internationaldiscussions," she said.

Administration officials who briefedreporters joined Rice in calling for full Russian adherence to theFrench-brokered cease-fire accord. They rejected Moscow's assertion itis entitled, under the six-point plan, to set up a buffer zone orcheckpoints beyond the two disputed regions.

The StateDepartment's top expert on the Caucasus region, Deputy AssistantSecretary Matthew Bryza, also dismissed Moscow's continuing claim thatGeorgia started the conflict by its troop movement in South OssetiaAugust 7. "It did not begin on August 7th with the attack onTskhinvali, by Georgia, which we do believe was a mistake. But it beganmuch sooner, thanks to provocations by South Ossetian militias underthe command, by the way, of Russian officers. So Georgia did not launcha war. Georgia was drawn into one," he said.

Bryza said there isno military aid in the U.S. package because of Georgia's pressingeconomic problems. But he clearly indicated that U.S. help inrebuilding the country's military will be forthcoming, once the Tbilisigovernment comes up with a new force-structure plan.

He rejectedcalls by Moscow for an arms embargo on Georgia, calling it apeace-loving sovereign state that has a right to develop its ownmilitary for defense, and contributions to international peace-keeping.