STATE DEPARTMENT OFFICIAL TESTIFIES BEFORE HOUSE ON U.S.-REPUBLIC OF KOREA ALLIANCE

FROM: U.S. STATE DEPARTMENT

Next Steps in the U.S. - Republic of Korea Alliance

Testimony
James P. Zumwalt
Acting Principal Deputy Assistant Secretary, Bureau of East Asian and Pacific Affairs

Before the House Foreign Affairs CommitteeSubcommittee on Asia and the Pacific and Subcommittee on Terrorism, Nonproliferation, and Trade

Washington, DC
June 27, 2013

Chairman Chabot, Chairman Poe, Mr. Faleomavaega, Mr. Sherman, and Members of the Subcommittees, I am pleased to appear before you today to discuss this important topic. The U.S.-Republic of Korea (ROK) alliance is a linchpin of security and prosperity in Northeast Asia, and our bilateral ties have never been stronger. This year marks the 60th anniversary of the U.S.-ROK Mutual Defense Treaty, the foundation of our alliance and a force for peace and stability on the Korean Peninsula. Over the past six decades, our close cooperation has evolved into an increasingly global partnership, and our economic and people-to-people ties are as robust as ever. Today, while our alliance continues to counter the threat from North Korea, we are expanding our cooperation to meet 21st-century challenges on the Korean Peninsula, in the Asia-Pacific region, and beyond.



A Future-Oriented Alliance
During her May 8 address to a joint meeting of Congress, Republic of Korea President Park Geun-hye said: "Along our journey, we have been aided by great friends and among them, the United States is second to none." Our alliance was forged in shared sacrifice in the Korean War sixty years ago, and it continues to provide an anchor for peace and security in the region. Today, we continue to strengthen and adapt our alliance to meet existing and emerging security challenges.

As stated by Presidents Obama and Park in their May 7 joint declaration, we have made significant progress on the goals outlined in our 2009 Joint Vision for the Alliance statement. The blueprint for the future of our alliance includes our Strategic Alliance 2015 plan, which outlines the conditions for the transition of wartime operational control (OPCON) to a Republic of Korea-led defense in December 2015. Our two countries continue to improve our interoperability and readiness through annual joint and combined exercises, and through a bilateral Extended Deterrence Policy Committee that focuses on improving the effectiveness of extended deterrence against threats posed by North Korean nuclear and weapons of mass destruction programs.


Cooperation on Global Issues
Presidents Obama and Park on May 7 highlighted recent successes and publicly committed to deepening our cooperation on global challenges, an increasingly important pillar of the U.S.-ROK alliance. The Republic of Korea hosted the November 2010 G-20 Summit, the November 2011 Fourth High-Level Forum on Aid Effectiveness, and the March 2012 Nuclear Security Summit. The Republic of Korea is currently a non-permanent member on the UN Security Council and our cooperation at the UN and in other multilateral fora has been excellent. We also have outstanding cooperation on countering biological threats, and just last week the Republic of Korea hosted our third bilateral, whole-of-government biopreparedness "Able Response" exercise.

U.S. and Korean soldiers serve side by side in Afghanistan, where the Republic of Korea is a major donor to reconstruction and stabilization efforts. The Republic of Korea has been a leader in supporting international efforts to resolve the Iranian nuclear issue, including by supporting Iran sanctions and significantly reducing imports of oil from Iran. We are working together on Syria, where the Republic of Korea is providing assistance to address the humanitarian needs of the Syrian people. In April, we held the second U.S.-ROK Africa Dialogue, to share views and advance our cooperation on economic development and political and security issues in Africa.


A Strong Economic Partnership
The engine of our alliance is our deep economic cooperation. The Republic of Korea is Asia’s fourth-largest economy and our seventh-largest trading partner; our two countries have one of the most vibrant trading relationships in the world, one that topped over $100 billion in 2012. The year 2013, in addition to marking the 60th anniversary of our alliance, also marks the first anniversary of the entry into force of the U.S.-Korea Free Trade Agreement (KORUS FTA). The KORUS FTA is increasing trade and investment between our two countries, is providing significant new opportunities for U.S. exporters, businesses, workers, and farmers, and reflects the depth and maturity of our strategic relationship. Our two countries continue to work together closely to fully implement the KORUS FTA, and we look forward to even more economic benefits as more provisions of the agreement are implemented.

The landmark KORUS FTA is not simply focused on strengthening trade ties, but also deepens the political and strategic partnership with our key Asia-Pacific ally and demonstrates to Americans and Koreans alike that our relationship brings them real, practical benefits. Our commitment to the KORUS FTA enhances our credibility as a Pacific power and tells the world that we will remain engaged in the Asia-Pacific region. As President Park said before Congress last month, the KORUS FTA "helps underpin Washington’s rebalancing toward the region."

On the topic of economic development, there is no better example than the Republic of Korea, which has made extraordinary progress, from a recipient of foreign aid and Peace Corps volunteers in the past, to a thriving economic powerhouse and international aid donor today. The ROK example shows the benefits of investing in development aid and people-to-people ties, and we plan to further expand our development partnership with Korea on a global basis. Building on the development cooperation memorandum of understanding (MOU) we signed in 2011, the Peace Corps and the Korea International Cooperation Agency will sign an MOU to collaborate on global development and international volunteer programs. This type of cooperation not only advances our shared interests, but will help forge closer ties between future generations of young Americans and Koreans.


Strong Science and Technology Ties
Our substantial ties also include strong cooperation in science and technology, on cyber space and cyber security, and on climate change and energy. The United States and Republic of Korea are also global leaders and partners on peaceful nuclear energy. We both recently decided to seek an extension of our existing civil nuclear cooperation agreement which has benefitted our two countries for over four decades and are in the process of negotiating a successor agreement to continue and expand this longstanding and fruitful cooperation in the future. As President Obama said, "I believe that we can find a way to support South Korea’s energy and commercial needs even as we uphold our mutual commitments to prevent nuclear proliferation." The Administration is ready to work with Congress to achieve an early extension of the existing agreement, and we are grateful for your efforts on the related pending draft legislation. We are confident that our two governments can produce a successor agreement that advances both our shared nonproliferation and nuclear cooperation policy objectives.


Deep People-to-People Ties
The foundation of our alliance and our sixty years of partnership and shared prosperity rests on our people-to-people ties and our shared values—a commitment to freedom, democracy, and the rule of law. Ties between Americans and Koreans are deeper and tighter than ever: Last year more than one million South Koreans visited the United States. The Republic of Korea sends more university students to the United States per capita than any other major economy, over 72,000 per year—a strong vote of confidence in the U.S. education system and the future of U.S.-ROK ties. The United States is the clear top choice for Korean entrepreneurs and scientists seeking to create businesses and develop new technologies, and we support efforts to facilitate such exchanges.

Our countries are working to reinvigorate exchange programs between Americans and Koreans. In May, we jointly announced our intent to renew the Work, English, Study, and Travel (WEST) program, which provides an opportunity for qualified university students from Korea to study English, participate in internships, and travel independently in the United States. We are also expanding the U.S.-Korea Fulbright Program through the creation of two new Fulbright scholarships focused on U.S.-ROK alliance studies. Our International Visitor Leadership Program (IVLP), which brings promising young Korean leaders to the United States on professional exchanges, has had notable successes—over 100 current and former ROK legislators and multiple cabinet ministers have been IVLP alumni.

Perhaps the most important example of our close ties is the proud legacy of Korean-Americans—over two million strong—who have made crucial contributions to America’s prosperity, defended America’s freedom, added their own unique qualities to America’s culture, and distinguished themselves in academia, science, medicine, business, and athletics. Korean-Americans increase the strength and vitality of our strong partnership.


DPRK
Let me turn now to perhaps the greatest challenge our alliance faces—North Korea. Many of the DPRK’s provocations in recent months—from its missile launch in December to its third nuclear test in February and subsequent bellicose rhetoric —have directly targeted the United States and the Republic of Korea. Let me be clear: the United States remains fully committed to the defense of the Republic of Korea, and we will continue to stand shoulder-to-shoulder with our ally in the face of these North Korean provocations, including through extended deterrence and the full range of U.S. military capabilities, both conventional and nuclear.

Despite the DPRK’s recent overtures in the region and outreach to counterparts in the Six-Party process, we have yet to see concrete steps suggesting that North Korea is prepared to negotiate on the key issue of paramount concern: the verifiable denuclearization of the Korean Peninsula. We continue to coordinate closely with the ROK, as well as other Six-Party partners, on North Korea policy. The United States remains committed to authentic and credible negotiations to implement the September 2005 Joint Statement of the Six-Party Talks and to bring North Korea into compliance with its international obligations through irreversible steps leading to denuclearization. We will not accept North Korea as a nuclear-armed state, nor will we reward the DPRK for the absence of bad behavior, or compensate the DPRK merely for returning to dialogue. We have also made clear that U.S.-DPRK relations cannot fundamentally improve without sustained improvement in inter-Korean relations, which we support.

Like the Republic of Korea, the United States remains gravely concerned about the deplorable human rights situation in the DPRK and about the well-being of the North Korean people. With the co-sponsorship of the United States, Republic of Korea, Japan, the European Union, and others, the UN Human Rights Council in March established an independent one-year Commission of Inquiry to investigate and report to the international community on North Korea’s widespread, systemic human rights violations. Ambassador Robert King and Department of State Bureau of Democracy, Labor, and Human Rights Deputy Assistant Secretary Dan Baer recently organized the latest in a series of face-to-face consultations with the ROK and other key partners on ways to enhance pressure on Pyongyang to improve its human rights record.


The Future of the U.S.-ROK Alliance
Our sixty-year-strong alliance is rooted in our legacy of sacrifice, our shared interests in the Asia-Pacific region and around the world, our deep economic ties, and most importantly, our shared values and strong personal friendships that have developed from extensive people-to-people ties. The alliance has never been stronger and both our countries are actively working to prepare our alliance for the years to come. As President Park said to Congress in May, our efforts portray a "forward-leaning alliance" and "point to a 21st-century partnership that is both comprehensive and strategic."

President Park’s landmark visit to Washington this past May—a visit by Northeast Asia’s first modern-day female head of state—opens a new chapter in our alliance and partnership. We welcome the Republic of Korea’s growing leadership on the world stage and the United States is fully committed to this alliance, which is a force for peace and security not just on the Korean Peninsula, but in the region and around the globe. We are heartened that support for the alliance from the American and Korean people is at an all-time high: recent polls show that over 80 percent of Koreans support the alliance. Strong and enduring Congressional support for the Republic of Korea and for our alliance and partnership has been critical to the success of our relationship for the last six decades, and will be even more important in the decades to come.

Thank you for inviting me to testify on this important topic. I am happy to answer any questions you may have.

ATTORNEY GENERAL HOLDER SPEAKS AT UNIVERSITY OF CHICAGO INSTITUTE OF POLITICS

FROM: U.S. DEPARTMENT OF JUSTICE

Attorney General Eric Holder Speaks at the University of Chicago Institute of Politics

Chicago ~ Tuesday, April 30, 2013

Thank you, David, for those kind words; for your dedication to public service, not only in the Obama Administration but throughout your career; and for your commitment to training future generations of political leaders right here at your alma mater. It’s a pleasure to be with you at the University of Chicago tonight, and a privilege to stand with Dean Schill; members of the Levi family; leaders from throughout Chicago’s legal community; Attorney General Ashcroft and each of our distinguished panelists; and so many of the faculty members and students who have always made the University of Chicago such an exceptional place.

Thank you for welcoming me to your beautiful campus, and for providing a forum for tonight’s important discussion – as we celebrate the legacy of our nation’s 71st Attorney General, Edward Levi, and reaffirm our shared commitment to building on the work that defined his remarkable career.

It’s fitting that we come together this evening here in Hyde Park, at an institution – and a wonderful city – that Attorney General Levi was always proud to call home; on a campus that shaped him, and which he would in turn help to shape. As a young man, a student, and a faculty member – as Dean of the Law School, as the University’s first provost, and later as its President – Edward Levi was part of this community of learning for nearly his entire life. From kindergarten through his retirement – over the course of a career that would take him from the South Side to Washington and back again – he remained an essential member of the University of Chicago family.

His contributions were publicly recognized by another Attorney General – Robert F. Kennedy – exactly 49 years ago tomorrow, during a speech at your Law School in which Attorney General Kennedy praised Dean Edward Levi for his commitment to "public service, community concern, and intellectual inquiry." By that time, Dean Levi had already spent several years at the Justice Department – serving in the Antitrust Division and the War Division, among other assignments, during the Second World War.

By the mid-1970s, he was President of this University – and had already built a national reputation as a brilliant scholar, a faithful steward of the law, and a passionate servant of all whom the law protects and empowers. He was widely known as a principled and independent leader who – as he once put it – tried to "radiate the values" of this institution at all times. And he was in many ways a perfect choice to become Attorney General of the United States after President Gerald Ford took office – in a moment of national crisis, at a time of almost unprecedented difficulty – and during a period when the faith of the American people in their government, and the reputation of the Justice Department, had been badly shaken by the Watergate scandal.

Into this atmosphere of cynicism, Attorney General Levi brought an air of calm. He raised standards, fought for transparency, and restored a sense of integrity. He rejected both politics and ideology, insisting – rightfully – that every decision be based solely on the facts and the law. He brought a fractured Justice Department back together, and inspired his colleagues to redouble their efforts – reminding them that "[n]o task has more to do with the future of our country than the work in which [they were] engaged."

Even more importantly – as Jack Fuller’s new book demonstrates – Attorney General Levi worked hard to win back the trust of the American people, and to rebuild public confidence in the Department. He taught an entire generation of citizens and legal professionals – including me – that, when it comes to expanding opportunities and seeing that justice is done, even a single person can make a difference. And that all of us have both the power, and the responsibility, to try.

In 1975, when Attorney General Levi took office, I was still in law school at Columbia University in New York. Like all who are old enough to remember Watergate, I will never forget those tumultuous days – or the poisonous political climate that the scandal created. Despite this climate – and in part because of Edward Levi’s work to turn the page and restore the Justice Department – I did not give up on my dream of building a career in public service that the Kennedys had helped to generate. And when I graduated from law school, in 1976, I proudly moved to Washington to work for this new Attorney General, in a component of the Criminal Division that had been created under his leadership to fight against misconduct and corruption – the Public Integrity Section.

There, as an idealistic young attorney, I tried to bring accountability to those who violated the public trust. I learned also that Attorney General Levi was someone not only to be admired, but emulated. And I came to see him as a role model and a personal hero – whose example has helped to guide my entire professional life.

This is why, when I became Attorney General – three and a half decades later – I had Ed Levi’s official portrait hung in my conference room, just across from a portrait of Robert Kennedy and steps from my private office. There, it reminds me every day of the standard to which I – and all of his successors – must aspire. In particularly difficult moments, it also reminds me of his wise assurance, nearly 40 years ago, that although "the agenda of the Department is inevitably unfinished . . . it is also always boundless."

For me, and for each of my colleagues – the nearly 116,000 dedicated men and women serving in Justice Department offices around the world – advancing this agenda constitutes both a solemn responsibility and a breathtaking opportunity. As these committed public servants know all too well – and as Attorney General Ashcroft and I have learned – this is seldom easy. Our attorneys, investigators, and support staff face some of the most challenging and complex issues in all of government. Addressing these issues – and rising to these challenges – remains as important today as ever before.

In recent years, the Department has responded to a financial crisis that left our economy severely crippled. We’ve contended with budgetary difficulties, including sequestration, and sought innovative ways to accomplish more with less. We’ve witnessed our nation’s most severe environmental catastrophe – the Deepwater Horizon disaster – and have taken action to hold accountable those who were responsible.

Alongside our fellow citizens, we also have mourned the loss of innocent lives. We have struggled to understand – and to respond to – unspeakable acts of violence, including the cowardly terrorist attack on the Boston Marathon just two weeks ago. We’ve repeatedly demonstrated our commitment to achieving justice on behalf of all who were killed, or suffered injuries, as a result of such senseless violence. And we have paid tribute to far too many law enforcement heroes who – in the line of duty and in the service of their country – have made the ultimate sacrifice.

Despite these and other challenges, my colleagues and I have taken meaningful – and, in many cases, historic – steps to fulfill our duties to the American people, and to carry on the essential work of public servants like Edward Levi. Although, as he said, this work will always be unfinished, I believe we can all be encouraged by the progress we’ve seen – and the momentum we’ve built – in just the last few years.

Nowhere is this clearer than in the efforts of the Department’s Civil Rights Division. Since 2009, the Division has filed more criminal civil rights cases than ever before, including record numbers of police misconduct and human trafficking cases. We are working tirelessly to protect the voting rights of every eligible citizen – and to combat all forms of bias, discrimination, and intimidation.

Beyond these efforts, the Department has reinvigorated its fight against drug trafficking, international crime networks, gangs, and cyber criminals. We’ve refined our ability to protect the American people – including our brave men and women in law enforcement – from an evolving range of global threats. We’ve secured convictions, and tough sentences, against scores of dangerous terrorists. And we’ve done it all while upholding our most cherished principles and by relying on our most respected, powerful, and proven tool in bringing terrorists to justice: our federal court system.

As we speak, we’re exploring ways to improve America’s criminal justice system; to tear down barriers that prevent some formerly incarcerated individuals from becoming productive members of society; to address unwarranted sentencing disparities; and – where appropriate – to give judges more flexibility in determining certain sentences.

We’re also working with Congressional leaders to bring about essential legislative changes – including comprehensive immigration reform, so that 11 million people who are here in an undocumented status can step out of the shadows. And we are absolutely determined to pass commonsense measures to prevent and reduce gun violence.

Despite my frustration at some recent setbacks – such as the filibuster in the Senate that, earlier this month, prevented a bipartisan majority from passing a straightforward proposal to keep firearms out of the hands of dangerous people – my colleagues and I remain committed to standing with the people of Newtown, Connecticut; with citizens here in Chicago, where you’ve seen shocking levels of gun violence; and with countless others whose lives are shattered by gun crimes each and every day.

As my colleagues and I work to advance these and other critical efforts, we will continue to benefit from the example set by leaders like Attorney General Levi – and to remain true to the values he instilled.

Of course, I recognize – as he did – that the Justice Department will never be able to complete this work, or secure the results our nation needs, on its own. We will need the help of a concerned and active citizenry that is committed to the positive change that has always transformed our country for the better.

But, especially this evening – as we gather at another institution that Edward Levi once led with distinction – I can’t help but feel confident in our ability to keep moving forward together. And I urge everyone here to be mindful of the unique role that you can play – as students, public servants, educators, advocates, and members of the private bar – to extend the legacy of a man who was without question one of the greatest Attorneys General in American history.

Here in Hyde Park – at the University he loved, and served, all his life – this legacy is very much alive. His work goes on in campus organizations like the Mandel Legal Aid Clinic, which Edward Levi helped to create, and once described as "a major step in American legal education." It goes on in your efforts to foster public engagement and instill a commitment to public service among all members of the University of Chicago community. And it goes on in the advocacy of passionate leaders like many of our distinguished guests, including John Levi – another legendary Chicago attorney whose service as Chair of the Board of Directors of the Legal Services Corporation has helped to provide legal assistance to millions who cannot afford it.

John, you are truly your father’s son. I can think of no higher compliment. I am honored to join you in celebrating his enduring contributions this evening. I am proud to count everyone here as a colleague and partner. And I am eager to see where your efforts will lead us in the days ahead – as we seize the boundless opportunities before us; as we fight to protect the rights, safety, and interests of the American people; and as we strive, as Edward Levi did, to build the brighter future that all of our fellow citizens deserve.

Thank you.

U.S. SAYS LINK BETWEEN ORGANIZED CRIME AND TERRORISM IS GROWING

The following excerpt is from the American Forces Press Service:

Link Grows Between Terrorism, Organized Crime, Officials Say

By Karen Parrish
American Forces Press Service

WASHINGTON, March 28, 2012 - The two missions of fighting terrorism and combating global organized crime are increasingly linked, senior Defense Department officials told Congress yesterday.

Michael A. Sheehan, assistant secretary of defense for special operations and low-intensity conflict; Garry Reid, deputy assistant secretary of defense for special operations and combating terrorism; and William F. Wechsler, deputy assistant secretary of defense for counternarcotics and global threats, testified before the Senate Armed Services Committee's emerging threats and capabilities subcommittee.

The hearing focused on the Pentagon's role in implementing the national strategies for counterterrorism and combating transnational organized crime under the 2013 defense budget request.

"Terrorism, drug trafficking and other forms of transnational organized crime are increasingly intertwined," Sheehan noted, adding that his office -- which is responsible for overall supervision of special operations forces -- is uniquely positioned to provide policy guidance and program oversight to the department's efforts in both missions.

Wechsler noted four trends in terrorism and transnational crime:

-- Terrorist groups are adopting criminal techniques, including drug trafficking, to raise funds;

-- Criminal organizations are adopting terrorist techniques, such as beheadings;

-- Terrorist organizations and criminal organizations that have been separate are now "working together in ways that previously we hadn't seen ... [such as] the attempted assassination of a Saudi ambassador here in the United States"; and

-- Some countries are using criminal activity to produce revenue.

Sheehan said that while the Defense Department plays a central role in fighting terrorism and a more supporting role battling transnational organized crime, the national strategies governing the two missions are complementary and mutually reinforcing.

While the counterterrorism focus on al-Qaida remains, he said, the landscape is changing. As al-Qaida and other terror groups meld with international criminal networks, DOD is expanding its efforts beyond direct strikes against terrorist targets in supporting an interagency approach, Sheehan said.

"All our national security challenges ... [are] becoming increasingly interagency," he noted.

Fighting terrorism increasingly includes targeting the global drug trade, he said. "Nowhere is the link between transnational organized crime, insurgency and terrorism more apparent than in Afghanistan, where the Taliban continues to receive a large percentage of its revenue through heroin trade," he added.

Fighting insurgents, prosecuting criminals and applying pressure to states profiting from terror or criminal activity involves agencies from DOD to the Drug Enforcement Agency to the State Department, Sheehan noted. And while direct strike is an important special operations capability, even purely military action often focuses on a partnering approach, he said.

"Just as important ... are the special operations forces' efforts that build the capability and capacity of our partners to shape the global information and ideas environment, as well as train and equip the capacity of other countries," he added.

Working with Pakistan to keep pressure on al-Qaida is essential, and Yemen serves as an important front against al-Qaida on the Arabian Peninsula, he noted.

"DOD continues to collaborate extensively with the Yemeni forces on operational matters, and together we are closely monitoring [al-Qaida on the Arabian Peninsula] and regularly improving our understanding of its external plots," Sheehan said.

Combating the nexus of terrorism and transnational organized crime, he said, "is a call to action to leverage all of the elements of national power to protect citizens and U.S. national security interests and to enable our foreign partners to do the same."

DEFENSE DEPARTMENT SAYS U.S. FACES MANY NATIONAL SECURITY THREATS

The following excerpt is from a Department of Defense American Forces Press Service e-mail:

U.S. Faces Broad Spectrum of Threats, Intel Leaders Say

By Lisa Daniel
American Forces Press Service

WASHINGTON, Feb. 16, 2012 - The United States and its allies face a broad spectrum of national security threats from terrorism, nuclear proliferation and cyber attacks, intelligence leaders told Congress members today.

Director of National Intelligence James R. Clapper and Defense Intelligence Agency Director Army Lt. Gen. Ronald L. Burgess Jr. provided their worldwide threat assessments to the Senate Armed Services Committee.

Clapper listed countering terrorism, nuclear proliferation and cyber threats, as well as counterintelligence, as being at the forefront of national security concerns. But, he added, "it is virtually impossible to rank – in terms of long-term importance – the numerous potential threats to U.S. national security."

Unlike in the Cold War days of having a single, large adversary, Clapper said, "it is the multiplicity and interconnectedness of potential threats – and the actors behind them – that constitute our biggest challenge."

Burgess cited a "broad spectrum of dissimilar threats," including rising regional powers and highly adaptive and resilient transnational terrorist networks.

Intelligence shows the next three years will be a critical transition time in counterterrorism, as groups like al-Qaida diminish in importance and terrorist groups become more decentralized, Clapper said.

U.S. counterterrorism has caused al-Qaida to lose so many top lieutenants since 2008 "that a new group of leaders, even if they could be found, would have difficulty integrating into the organization and compensating for mounting losses," the director said. Al-Qaida's regional affiliates in Iraq, the Arabian peninsula and North Africa are expected to "surpass the remnants of core al-Qaida in Pakistan," he said.

With continued, robust counterterrorism efforts and cooperation from international partners, Clapper said, "there is a better-than-even chance that decentralization will lead to fragmentation of the movement within a few years," although he added that terrorist groups will continue to be a dangerous transnational force.

Intense counterterrorism pressure has made it unlikely that a terrorist group would launch a chemical, biological, radiological or nuclear mass attack against the United States in the next year, Clapper said, but groups such as al-Qaida in the Arabian Peninsula continue to show interest in such an attack. Most terrorist groups, however, remain locally focused, Clapper said, noting that al-Qaida in Iraq remains focused on overthrowing the Shiia-led government in Baghdad in favor of a Sunni-led government.

In Africa, the al-Qaida in the Islamic Maghreb and al-Shabaab organizations struggle with internal divisions and outside support, and have been diminished by government and military pressure in Somalia, Kenya and Ethiopia, he said.

Clapper also said that extremist "lone actors," including criminals and homegrown terrorists, continue to be a concern inside the United States. The intelligence community, he added, will stay alert to events that might precipitate an attack, such as a perceived anti-Islamic bias, military involvement in another Muslim country, or unrest overseas.

In Afghanistan, Clapper noted that the transition of security is successful so far in the first two phases. His assessment, he told the committee, is that the government in Kabul will continue to make "incremental, fragile progress" this year in governance, security and development that is dependent on the support of international partners.

The Taliban still are resilient, and NATO's International Security Assistance Force will remain essential at least through the end of this year, Clapper said. Enduring stability depends heavily on support from neighboring states such as Pakistan, he added, especially since many European governments harbor doubts about extending financial help past 2014.

The Taliban have lost influence in the past year, mostly where ISAF forces are concentrated, but its senior leaders continue to enjoy safe havens in Pakistan, the director said.

Al-Qaida's impact on the Afghan insurgency "is limited," he said, and it most often works with other insurgent groups that don't depend on foreign fighters.

Clapper cited incremental improvements with governments operating in most provinces of Afghanistan. However, he said, provinces still struggle to provide essential services, and access to official governance mostly is limited to urban areas, leaving much of the rural areas isolated.

The director acknowledged the intelligence view is somewhat more pessimistic than that of U.S. military leaders in Afghanistan, but he said that is not unusual. "I don't find it a bad thing," he said. "In fact, I think it's healthy that there is a contrast between what the operational commanders believe and what the intelligence community assesses."

Burgess cited "endemic corruption and inefficiencies" in the Afghan army and police that he said are undermining security efforts. Afghan forces rely on ISAF for logistics, intelligence and transportation and will need sustained mentoring and support, he said.

In Iraq, Burgess said, Iraqi security forces have maintained security since U.S. troops left the country in December and probably will sustain that through the next year. But, he said, Iraqi forces still need training in a number of areas, including logistics, intelligence, and on new equipment purchased from the United States.

The Iraqi forces have demonstrated their ability to "put forces on the street, conduct static security of high-profile sites, operate checkpoints and conduct intelligence-driven targeting," Burgess said. But, he added, numerous security vulnerabilities remain due to manning shortages, logistical shortfalls and overly centralized command and control.

Weapons proliferation continues to be a concern, an increasingly among non-nation states, Clapper said. "Biological and chemical materials and technologies, almost always dual-use, move easily in our globalized economy, as do the personnel with scientific expertise to design and use them," he said. "The latest discoveries in life sciences diffuse globally and rapidly."

Still, intelligence shows no nation states have provided weapons of mass destruction assistance to terrorist groups, and no nonstate actors are targeting WMD sites in countries with unrest, the director said. But that could change as governments become more unstable, he added.

Middle East security largely will depend on how things work out for countries where governments were toppled in the Arab Spring, such as Egypt, Libya and Tunisia, Clapper said. The possible collapse of the Syrian government would have broad implications throughout the Middle East, both intelligence leaders told the senators.

The two also outlined threats from nations such as Iran and North Korea.

The pair told the committee they could not say whether Iran is developing nuclear weapons --, only that it "is keeping open the option" by developing nuclear capabilities that better position it to do so. Also, they said, Iran is expanding its uranium enrichment capabilities, which can be used either for civil or weapons purposes, but the amount enriched so far does not appear to be weapons grade.

Intelligence shows that Iran is capable of producing nuclear weapons as well as the ballistic missiles to carry them, "making the central issue its political will to do so," Clapper said.

For now, Burgess said, "We assess that Tehran is not close to agreeing to abandon its nuclear program."

Iran increasingly has shown a willingness to conduct attacks outside its borders, and any future attacks probably will be shaped by Tehran's cost-benefit analysis of an attack, as well as their perceptions of U.S. threats against the regime, Clapper said. Because of that, he said, the international community still can influence Iran's decisions, noting that increasingly tough economic sanctions seem to be working.

"Iran can close the Strait of Hormuz, at least temporarily," and may launch nuclear w

eapons against U.S. forces in the area if attacked, Burgess said. He added, though, that the agency believes Iran is unlikely to initiate an attack.

In North Korea, the government views its nuclear capabilities as intended for deterrence, international prestige, and coercive diplomacy, Clapper said. Its nuclear weapons and missile programs pose a serious threat in East Asia, and leaders in Pyongyang have shown in the past their willingness to export them to places such as Iran and Syria, he said.

Still, Clapper said, intelligence analysts assessed that North Korea would consider using nuclear weapons only under narrow circumstances, including a military defeat or loss of control.

Meanwhile, Clapper and Burgess said cyber attacks, while largely invisible to the public, are growing in scale and sophistication, and largely come from China and Russia against U.S. corporations and government sites."