Obama Cancels Egypt Military Exercise, Condemns Violence in Speech (TRANSCRIPT, SLIDESHOW)

From his vacation on Martha's Vineyard, President Barack Obama was briefed on the situation in Egypt, where Morsi supporters have been locked in battle with anti-government citizens for almost two days now, leaving 525 dead and thousands injured.

The POTUS then gave a statement from his vacation on the East Coast, speaking out against violence in the country ripped in two by a military coup that ousted former president Mohammed Morsi and created an intense divide between the largely Muslim Brotherhood supporters who want to put Morsi back in office and the citizens that are fighting to keep him out.

President Obama opened his remarks by taking a look back at Egypt since the 2011 Arab Spring, and the United States' tangled relationship with the Middle Eastern country, but then quickly moved to the crux of his speech, stating that the U.S. announced a cancelled joint military exercise with Egypt.

Let me begin by stepping back for a moment. The relationship between the United States and Egypt goes back decades. It's rooted in our respect of Egypt as a nation, an ancient center of civilization and a cornerstone for peace in the Middle East. It's also rooted in our ties to the Egyptian people, forged through a long-standing partnership.

Just over two years ago, America was inspired by the Egyptian people's desire for change as millions of Egyptians took the streets to defend their dignity and demand a government that was responsive to their aspirations for political freedom and economic opportunity.

...We're...concerned by recent events. We appreciate the complexity of the situation. While Mohammed Morsi was elected president in a democratic election, his government was not inclusive and did not respect the views of all Egyptians.

The United States strongly condemns the steps that have been taken by Egypt's interim government and security forces. We deplore violence against civilians... Given the depths of our partnership with Egypt, our national security interest in this pivotal part of the world...our traditional cooperation cannot continue as usual when civilians are being killed in the streets and rights are being rolled back.

As a result, this morning we notified the Egyptian government that we are canceling our biannual joint military exercise, which was scheduled for next month.

America cannot determine the future of Egypt. That's a task for the Egyptian people.

The "depths of partnership" with Egypt that the President mentioned concerns the estimated $1.3 billion that the United States sends to Egypt annually in the form of military aid, according to CNN.

President Obama did not pull all aid from Egypt, deciding instead to take a more symbolic route by canceling a scheduled military exercise. Egypt is a key ally in the territory, mostly due to its reconciliation with Israel-the U.S. won't give Egypt up, but will certainly apply pressure on the government.

Read the full transcript here.