Thursday, June 27, 2013
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDNG JUNE 22, 2013
SEASONALLY ADJUSTED DATA
In the week ending June 22, the advance figure for seasonally adjusted initial claims was 346,000, a decrease of 9,000 from the previous week's revised figure of 355,000. The 4-week moving average was 345,750, a decrease of 2,750 from the previous week's revised average of 348,500.
The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending June 15, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending June 15 was 2,965,000, a decrease of 1,000 from the preceding week's revised level of 2,966,000. The 4-week moving average was 2,973,250, a decrease of 9,250 from the preceding week's revised average of 2,982,500.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 334,978 in the week ending June 22, a decrease of 1,589 from the previous week. There were 370,521 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.2 percent during the week ending June 15, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,787,079, an increase of 7,471 from the preceding week's revised level of 2,779,608. A year earlier, the rate was 2.5 percent and the volume was 3,113,846.
The total number of people claiming benefits in all programs for the week ending June 8 was 4,556,706, an increase of 23,146 from the previous week. There were 5,890,083 persons claiming benefits in all programs in the comparable week in 2012.
Extended Benefits were not available in any state during the week ending June 8.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,206 in the week ending June 15, a decrease of 211 from the prior week. There were 2,262 initial claims filed by newly discharged veterans, a decrease of 124 from the preceding week.
There were 16,930 former Federal civilian employees claiming UI benefits for the week ending June 8, a decrease of 179 from the previous week. Newly discharged veterans claiming benefits totaled 34,609, an increase of 532 from the prior week.
States reported 1,707,109 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending June 8, an increase of 23,147 from the prior week. There were 2,645,554 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending June 15 were in Puerto Rico (4.6), Alaska (4.2), New Mexico (3.2), California (3.1), Connecticut (3.0), New Jersey (3.0), Pennsylvania (2.9), Nevada (2.8), Virgin Islands (2.8), Illinois (2.6), and Oregon (2.6).
The largest increases in initial claims for the week ending June 15 were in California (+15,341), Pennsylvania (+4,882), Florida (+4,850), Michigan (+1,114), and Maryland (+1,065), while the largest decreases were in Illinois (-3,401), New York (-2,090), Georgia (-1,893), Missouri (-1,591), and Tennessee (-1,542).
In the week ending June 22, the advance figure for seasonally adjusted initial claims was 346,000, a decrease of 9,000 from the previous week's revised figure of 355,000. The 4-week moving average was 345,750, a decrease of 2,750 from the previous week's revised average of 348,500.
The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending June 15, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending June 15 was 2,965,000, a decrease of 1,000 from the preceding week's revised level of 2,966,000. The 4-week moving average was 2,973,250, a decrease of 9,250 from the preceding week's revised average of 2,982,500.
The advance number of actual initial claims under state programs, unadjusted, totaled 334,978 in the week ending June 22, a decrease of 1,589 from the previous week. There were 370,521 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 2.2 percent during the week ending June 15, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,787,079, an increase of 7,471 from the preceding week's revised level of 2,779,608. A year earlier, the rate was 2.5 percent and the volume was 3,113,846.
The total number of people claiming benefits in all programs for the week ending June 8 was 4,556,706, an increase of 23,146 from the previous week. There were 5,890,083 persons claiming benefits in all programs in the comparable week in 2012.
Extended Benefits were not available in any state during the week ending June 8.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,206 in the week ending June 15, a decrease of 211 from the prior week. There were 2,262 initial claims filed by newly discharged veterans, a decrease of 124 from the preceding week.
There were 16,930 former Federal civilian employees claiming UI benefits for the week ending June 8, a decrease of 179 from the previous week. Newly discharged veterans claiming benefits totaled 34,609, an increase of 532 from the prior week.
States reported 1,707,109 persons claiming EUC (Emergency Unemployment Compensation) benefits for the week ending June 8, an increase of 23,147 from the prior week. There were 2,645,554 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending June 15 were in Puerto Rico (4.6), Alaska (4.2), New Mexico (3.2), California (3.1), Connecticut (3.0), New Jersey (3.0), Pennsylvania (2.9), Nevada (2.8), Virgin Islands (2.8), Illinois (2.6), and Oregon (2.6).
The largest increases in initial claims for the week ending June 15 were in California (+15,341), Pennsylvania (+4,882), Florida (+4,850), Michigan (+1,114), and Maryland (+1,065), while the largest decreases were in Illinois (-3,401), New York (-2,090), Georgia (-1,893), Missouri (-1,591), and Tennessee (-1,542).
U.S. CONGRATULATES PEOPLE OF DJIBOUTI ON THEIR NATIONAL DAY
FROM: U.S. SECRETARY OF STATE KERRY
Djibouti's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
June 26, 2013
On behalf of the government and the people of the United States, I extend my warmest wishes to the government and people of Djibouti on your National Day, June 27.
Djibouti has been a staunch supporter of peace and stability in the Horn of Africa. I am proud of the work we have both undertaken to support Somalia's political transition and our ongoing security cooperation through the African Union Mission in Somalia.
In pursuing our shared counterterrorism and security goals, we present a formidable, unified front against extremist threats in the region.
The United States is committed to helping Djibouti improve health services, expand education, and build responsive governing institutions.
I look forward to greater partnership in your 36th year of independence.
Djibouti's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
June 26, 2013
On behalf of the government and the people of the United States, I extend my warmest wishes to the government and people of Djibouti on your National Day, June 27.
Djibouti has been a staunch supporter of peace and stability in the Horn of Africa. I am proud of the work we have both undertaken to support Somalia's political transition and our ongoing security cooperation through the African Union Mission in Somalia.
In pursuing our shared counterterrorism and security goals, we present a formidable, unified front against extremist threats in the region.
The United States is committed to helping Djibouti improve health services, expand education, and build responsive governing institutions.
I look forward to greater partnership in your 36th year of independence.
STATE DEPARTMENT OFFICIAL'S CONGRESSIONAL TESTIMONY ON ETHIOPIA
FROM: U.S. DEPARTMENT OF STATE
Ethiopia After Meles Zenawi
Testimony
Donald Y. Yamamoto
Acting Assistant Secretary, Bureau of African Affairs
Before the House Subcommittee on Africa, Global Health, Global Human Rights, and International Organizations
Washington, DC
June 20, 2013
Mr. Chairman and Members of the Committee, thank you for inviting me to discuss the situation in Ethiopia since the death in August 2012 of Prime Minister Meles Zenawi. Post-Meles Ethiopia presents the United States with a significant opportunity to encourage Ethiopia to improve its human rights record, liberalize its economy, and provide increased space for opposition parties and civil society organizations. Post-Meles Ethiopia also presents a significant challenge since Ethiopia plays an important role in advancing regional integration and mitigating regional conflict in Somalia and Sudan. Our partnership with Ethiopia balances these interests by focusing on democracy, governance, and human rights; economic growth and development; and regional peace and security.
Ethiopia and the United States enjoy strong ties on several levels. More than one million people of Ethiopian origin live in the United States. Many of these individuals are returning to their homeland to expand the political and economic ties between our two countries. A wide range of groups and individuals in the United States provide humanitarian support to Ethiopians. Ethiopia is also home to one of the oldest Peace Corps programs.
Democracy, Governance, and Human Rights
Ethiopia’s weak human rights record creates tension in our relationship and we continue to push for press freedom, appropriate application of anti-terrorism legislation, a loosening of restrictions on civil society, greater tolerance for opposition views, and religious dialogue. The ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF) controls all aspects of government, including the legislative branch where the EPRDF and its allies hold 545 of 547 parliamentary seats. Political space in Ethiopia is limited and opposition viewpoints are generally not represented in government. In recent years, Ethiopia has passed legislation restricting press freedoms and NGO activities. On June 2, several thousand demonstrators calling for the release of political prisoners, an end to interference in religious affairs, action on unemployment and corruption, and an end to illegal evictions marched peacefully through the capital, without government interference. This was the first such political demonstration officially permitted by the Ethiopian Government since 2005.
Economic Growth and Development
Ethiopia ranks among the ten fastest-growing economies in the world, averaging 10 percent GDP growth over the last five years. State-run infrastructure drives much of this growth. Our bilateral trade and investment relationship is limited by investment climate challenges and the lack of market liberalization. The main sectors of interest to U.S. companies are telecommunications, financial services, logistics, and wholesaling. U.S. firms have a significant competitive advantage in these areas. These sectors, however, are closed to foreign investors and U.S. firms are discouraged by Ethiopia’s relatively weak private sector and state-dominated economy. These issues are compounded by macroeconomic challenges that include volatile inflation, a shortage of foreign exchange, lack of capital, financing, and logistical bottlenecks. Despite the challenges, however, there are clearly opportunities and U.S. business is taking advantage of them. Currently about 100 U.S. companies are represented in Ethiopia. Total U.S. exports to Ethiopia in 2012 were $1.29 billion; imports from Ethiopia totaled $183 million. Ethiopian Airlines is an important customer for Boeing, with over one billion dollars in recent purchases, supported in part by the Export-Import Bank. Ethiopian Airlines was the third airline to purchase the Boeing 787 Dreamliner and the first to get it back into service following the Federal Aviation Administration’s temporary grounding. Ethiopia will also host the Africa Growth and Opportunity Act Forum on August 12-13 this year, as we begin the dialogue on renewal of AGOA in 2015.
Ethiopia is a significant recipient of U.S. foreign aid, having benefited from over $740 million in FY 2012 assistance, primarily in health (under the President’s Emergency Plan for AIDS Relief, the Global Health Initiative, and the President’s Malaria Initiative), agriculture and food and nutrition security (through Feed the Future and the G-8 New Alliance for Food Security and Nutrition), basic education, and food aid. Other major donors include the United Kingdom, the World Bank, the European Union, and the Global Fund to Fight AIDS, TB, and Malaria. As a matter of policy, the Ethiopian Government is focused on eventually eliminating the need for donor assistance. The Ethiopian Government co-hosted the Child Survival Call to Action and has emerged as a leader on the push to end preventable maternal and child deaths.
Regional Peace and Security
As chair of the African Union, Ethiopia will play a key role in determining AU priorities on peace and security and development and governance. Ethiopia views Somali instability and al-Shabaab and other Islamic extremist groups as serious threats to its national security. Though not a troop contributing country for the African Union Mission in Somalia (AMISOM), Ethiopia expends significant resources to support the AMISOM-led campaign against al-Shabaab including deploying its own forces to fight alongside the Somali National Army and AMISOM. Expansion of U.S. funding of Somali National Army forces in the Gedo region is appreciated by Ethiopia and helps keep Ethiopia active in the fight against al-Shabaab. Ethiopia maintains strong relations with both Sudan and South Sudan and is the sole troop-contributor (4,200 increasing to over 5,000 shortly) to the UN Interim Stabilization Force in Abyei (UNISFA), where an Ethiopian peacekeeper was killed and two others were seriously injured in an attack on May 4. Since he took office, Prime Minister Hailemariam has organized two summits of the leaders of the Sudan and South Sudan to facilitate negotiations; pressed Sudan to negotiate with rebels from the Sudan People’s Liberation Movement – North; and urged Sudan to allow humanitarian aid into Blue Nile and South Kordofan. The Government of Ethiopia has also contributed more than 2,000 personnel to the United Nations-African Union Mission in Darfur (UNAMID). Ethiopia continues to receive and welcome a stream of refugees from Eritrea, Somalia, Sudan, and South Sudan.
Advancing Our Relationship
Mr. Chairman, members of the Committee, Ethiopia is an important U.S. partner and we value continued cooperation on a range of mutually important objectives.
As Secretary Kerry noted when he met with Prime Minister Hailemariam Desalegn at the 60th anniversary of the Organization of African Unity summit on May 25, Ethiopia plays a crucial role in fostering peace and stability across the volatile Horn of Africa, particularly in weakening al-Shabaab in Somalia and helping mitigate conflict between Sudan and South Sudan. While the country boasts one of the fastest growing economies in the world, our evolving commercial and business relationship is limited due to restrictions on foreign investment, investment climate challenges, and the Ethiopian Government’s strict control of the economy. In advancing our policy objectives in Ethiopia, we focus simultaneously on improving cooperation in security and counterterrorism, strengthening economic growth and development, and pushing for greater respect for human rights, stronger governance, and democratic principles.
We appreciate Ethiopia’s influential role in ensuring regional peace and security, and we will continue to work closely with Ethiopia to coordinate cooperation in Somalia, in the Sudans, and throughout the region.
We are also committed to expanding our bilateral trade and investment relationship, as a key driver for broad-based economic growth. To that end, we will encourage Ethiopia to work toward greater market liberalization, including progress towards World Trade Organization accession. Recent successes on the economic front include a May 13-15 trade mission sponsored by the State of Illinois and a November 2012 agricultural investment conference sponsored by the Corporate Council on Africa. We are working closely with a major U.S. company to secure multimillion dollar deals in support of several key infrastructure development projects, and American companies have signed letters of intent and committed to investments in support of Ethiopia’s country Cooperation Framework under the G8 New Alliance.
On democracy and human rights, we recently secured agreements to do media development training and open two community radio stations. Mechanisms such as our bilateral Democracy, Governance, and Human Rights Working Group, bilateral Economic Growth and Development Working Group, and Bilateral Defense Committee are useful tools for advancing our policy objectives in our three focus pillars. At the same time, we are public in our support for an improved environment for civil society, those we believe to have been subjected to politically motivated arrests, inclusive democratic processes, and rule-of-law. Making progress on this area will continue to be challenging and will require a great deal of creativity.
Thank you very much. I will be pleased to take your questions.
Ethiopia After Meles Zenawi
Testimony
Donald Y. Yamamoto
Acting Assistant Secretary, Bureau of African Affairs
Before the House Subcommittee on Africa, Global Health, Global Human Rights, and International Organizations
Washington, DC
June 20, 2013
Mr. Chairman and Members of the Committee, thank you for inviting me to discuss the situation in Ethiopia since the death in August 2012 of Prime Minister Meles Zenawi. Post-Meles Ethiopia presents the United States with a significant opportunity to encourage Ethiopia to improve its human rights record, liberalize its economy, and provide increased space for opposition parties and civil society organizations. Post-Meles Ethiopia also presents a significant challenge since Ethiopia plays an important role in advancing regional integration and mitigating regional conflict in Somalia and Sudan. Our partnership with Ethiopia balances these interests by focusing on democracy, governance, and human rights; economic growth and development; and regional peace and security.
Ethiopia and the United States enjoy strong ties on several levels. More than one million people of Ethiopian origin live in the United States. Many of these individuals are returning to their homeland to expand the political and economic ties between our two countries. A wide range of groups and individuals in the United States provide humanitarian support to Ethiopians. Ethiopia is also home to one of the oldest Peace Corps programs.
Democracy, Governance, and Human Rights
Ethiopia’s weak human rights record creates tension in our relationship and we continue to push for press freedom, appropriate application of anti-terrorism legislation, a loosening of restrictions on civil society, greater tolerance for opposition views, and religious dialogue. The ruling Ethiopian People’s Revolutionary Democratic Front (EPRDF) controls all aspects of government, including the legislative branch where the EPRDF and its allies hold 545 of 547 parliamentary seats. Political space in Ethiopia is limited and opposition viewpoints are generally not represented in government. In recent years, Ethiopia has passed legislation restricting press freedoms and NGO activities. On June 2, several thousand demonstrators calling for the release of political prisoners, an end to interference in religious affairs, action on unemployment and corruption, and an end to illegal evictions marched peacefully through the capital, without government interference. This was the first such political demonstration officially permitted by the Ethiopian Government since 2005.
Economic Growth and Development
Ethiopia ranks among the ten fastest-growing economies in the world, averaging 10 percent GDP growth over the last five years. State-run infrastructure drives much of this growth. Our bilateral trade and investment relationship is limited by investment climate challenges and the lack of market liberalization. The main sectors of interest to U.S. companies are telecommunications, financial services, logistics, and wholesaling. U.S. firms have a significant competitive advantage in these areas. These sectors, however, are closed to foreign investors and U.S. firms are discouraged by Ethiopia’s relatively weak private sector and state-dominated economy. These issues are compounded by macroeconomic challenges that include volatile inflation, a shortage of foreign exchange, lack of capital, financing, and logistical bottlenecks. Despite the challenges, however, there are clearly opportunities and U.S. business is taking advantage of them. Currently about 100 U.S. companies are represented in Ethiopia. Total U.S. exports to Ethiopia in 2012 were $1.29 billion; imports from Ethiopia totaled $183 million. Ethiopian Airlines is an important customer for Boeing, with over one billion dollars in recent purchases, supported in part by the Export-Import Bank. Ethiopian Airlines was the third airline to purchase the Boeing 787 Dreamliner and the first to get it back into service following the Federal Aviation Administration’s temporary grounding. Ethiopia will also host the Africa Growth and Opportunity Act Forum on August 12-13 this year, as we begin the dialogue on renewal of AGOA in 2015.
Ethiopia is a significant recipient of U.S. foreign aid, having benefited from over $740 million in FY 2012 assistance, primarily in health (under the President’s Emergency Plan for AIDS Relief, the Global Health Initiative, and the President’s Malaria Initiative), agriculture and food and nutrition security (through Feed the Future and the G-8 New Alliance for Food Security and Nutrition), basic education, and food aid. Other major donors include the United Kingdom, the World Bank, the European Union, and the Global Fund to Fight AIDS, TB, and Malaria. As a matter of policy, the Ethiopian Government is focused on eventually eliminating the need for donor assistance. The Ethiopian Government co-hosted the Child Survival Call to Action and has emerged as a leader on the push to end preventable maternal and child deaths.
Regional Peace and Security
As chair of the African Union, Ethiopia will play a key role in determining AU priorities on peace and security and development and governance. Ethiopia views Somali instability and al-Shabaab and other Islamic extremist groups as serious threats to its national security. Though not a troop contributing country for the African Union Mission in Somalia (AMISOM), Ethiopia expends significant resources to support the AMISOM-led campaign against al-Shabaab including deploying its own forces to fight alongside the Somali National Army and AMISOM. Expansion of U.S. funding of Somali National Army forces in the Gedo region is appreciated by Ethiopia and helps keep Ethiopia active in the fight against al-Shabaab. Ethiopia maintains strong relations with both Sudan and South Sudan and is the sole troop-contributor (4,200 increasing to over 5,000 shortly) to the UN Interim Stabilization Force in Abyei (UNISFA), where an Ethiopian peacekeeper was killed and two others were seriously injured in an attack on May 4. Since he took office, Prime Minister Hailemariam has organized two summits of the leaders of the Sudan and South Sudan to facilitate negotiations; pressed Sudan to negotiate with rebels from the Sudan People’s Liberation Movement – North; and urged Sudan to allow humanitarian aid into Blue Nile and South Kordofan. The Government of Ethiopia has also contributed more than 2,000 personnel to the United Nations-African Union Mission in Darfur (UNAMID). Ethiopia continues to receive and welcome a stream of refugees from Eritrea, Somalia, Sudan, and South Sudan.
Advancing Our Relationship
Mr. Chairman, members of the Committee, Ethiopia is an important U.S. partner and we value continued cooperation on a range of mutually important objectives.
As Secretary Kerry noted when he met with Prime Minister Hailemariam Desalegn at the 60th anniversary of the Organization of African Unity summit on May 25, Ethiopia plays a crucial role in fostering peace and stability across the volatile Horn of Africa, particularly in weakening al-Shabaab in Somalia and helping mitigate conflict between Sudan and South Sudan. While the country boasts one of the fastest growing economies in the world, our evolving commercial and business relationship is limited due to restrictions on foreign investment, investment climate challenges, and the Ethiopian Government’s strict control of the economy. In advancing our policy objectives in Ethiopia, we focus simultaneously on improving cooperation in security and counterterrorism, strengthening economic growth and development, and pushing for greater respect for human rights, stronger governance, and democratic principles.
We appreciate Ethiopia’s influential role in ensuring regional peace and security, and we will continue to work closely with Ethiopia to coordinate cooperation in Somalia, in the Sudans, and throughout the region.
We are also committed to expanding our bilateral trade and investment relationship, as a key driver for broad-based economic growth. To that end, we will encourage Ethiopia to work toward greater market liberalization, including progress towards World Trade Organization accession. Recent successes on the economic front include a May 13-15 trade mission sponsored by the State of Illinois and a November 2012 agricultural investment conference sponsored by the Corporate Council on Africa. We are working closely with a major U.S. company to secure multimillion dollar deals in support of several key infrastructure development projects, and American companies have signed letters of intent and committed to investments in support of Ethiopia’s country Cooperation Framework under the G8 New Alliance.
On democracy and human rights, we recently secured agreements to do media development training and open two community radio stations. Mechanisms such as our bilateral Democracy, Governance, and Human Rights Working Group, bilateral Economic Growth and Development Working Group, and Bilateral Defense Committee are useful tools for advancing our policy objectives in our three focus pillars. At the same time, we are public in our support for an improved environment for civil society, those we believe to have been subjected to politically motivated arrests, inclusive democratic processes, and rule-of-law. Making progress on this area will continue to be challenging and will require a great deal of creativity.
Thank you very much. I will be pleased to take your questions.
AIR FORCE WARNING REGARDING CHEEBA CHEWS AND CAREERS
FROM: U.S. AIR FORCE SPECIAL OPERATIONS COMMAND
"Cheeba Chews" can cause career issues
by Airman 1st Class Jeffrey Parkinson
1st Special Operations Wing Public Affairs
6/13/2013 - HURLBURT FIELD, Fla. -- The latest trends in consumption and distribution of tetrahydrocannabinol, also known as THC, may impact Air Commandos.
"Cheeba Chews," which look like taffy candy, have been showing up in different locations. The "medicated" chews contain 70mg to 175mg of THC, which is normally found in marijuana, according to the Southern Maryland Information Center in Waldorf, Maryland.
"Some drugs can accidently get in the body," said Senior Airman Christopher Guthrie, 1st Special Operations Wing Judge Advocate General paralegal. "Because of these factors, the [Department of Defense] places thresholds on the presence of drugs in the body. We are allowed to test positive for certain drugs as long as they are below the DOD cutoff. However, THC is not allowed in our bodies at all, and trace amounts could lead to a discharge."
The "un-medicated" chews contain hemp seed oil, which laboratory studies in Utah have shown can make consumers test positive for THC after ingesting.
"The bottom line is situational awareness of what you eat, because you never know what is in it," said Master Sgt. Charles Mann, 1st Special Operations Comptroller Squadron first sergeant.
"Cheeba Chews" can cause career issues
by Airman 1st Class Jeffrey Parkinson
1st Special Operations Wing Public Affairs
6/13/2013 - HURLBURT FIELD, Fla. -- The latest trends in consumption and distribution of tetrahydrocannabinol, also known as THC, may impact Air Commandos.
"Cheeba Chews," which look like taffy candy, have been showing up in different locations. The "medicated" chews contain 70mg to 175mg of THC, which is normally found in marijuana, according to the Southern Maryland Information Center in Waldorf, Maryland.
"Some drugs can accidently get in the body," said Senior Airman Christopher Guthrie, 1st Special Operations Wing Judge Advocate General paralegal. "Because of these factors, the [Department of Defense] places thresholds on the presence of drugs in the body. We are allowed to test positive for certain drugs as long as they are below the DOD cutoff. However, THC is not allowed in our bodies at all, and trace amounts could lead to a discharge."
The "un-medicated" chews contain hemp seed oil, which laboratory studies in Utah have shown can make consumers test positive for THC after ingesting.
"The bottom line is situational awareness of what you eat, because you never know what is in it," said Master Sgt. Charles Mann, 1st Special Operations Comptroller Squadron first sergeant.
SECRETARY OF STATE HAGEL ASKS RUSSIA TO TURN OVER SNOWDEN
FROM: U.S. DEPARTMENT OF DEFENSE
Hagel Calls on Russia to Hand Snowden Over to U.S.
By Nick Simeone
American Forces Press Service
WASHINGTON, June 26, 2013 - Defense Secretary Chuck Hagel today called on Russia to hand over Edward Snowden to the United States.
Hagel said he believes that Snowden, the former National Security Agency contractor and now fugitive who has admitted to revealing highly classified U.S. government surveillance programs, is probably still at a Moscow airport.
"I would hope that the Russians do the right thing here and turn Snowden over to the United States," Hagel told reporters during a Pentagon news conference, adding that he did not know if Moscow has made a final decision on what to do with the man now charged with espionage.
Hagel called the Snowden affair a negative in U.S.-Russian relations but nevertheless one that both nations must work through.
Hagel, along with Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, told reporters that Snowden's decision to reveal details about the NSA's gathering of phone records of millions of Americans as well as a separate classified program that involved eavesdropping on Internet activity by foreigners overseas did uncalculated damage to U.S national security.
"We are assessing that now. But make no mistake. This violation of our laws was a serious security breach," Hagel said. He added that he was in the Senate when the laws approving the programs were passed.
"They are legal," Hagel said of those laws, "and they do protect the United States."
Army Gen. Keith B. Alexander, director of the National Security Agency and commander of U.S. Cyber Command, has told Congress the classified surveillance programs have prevented more than 50 terrorist plots since the 9/11 attacks.
Snowden has not been seen in public since arriving in Russia June 23 from Hong Kong, where, despite a U.S. request that he be detained there, was allowed to board a flight to Moscow.
"We're very disappointed in the Chinese government in how they've handled this," Hagel said, adding that both countries could have chosen to cooperate.
"And this was an occasion, I think, where we had an opportunity to do that," Hagel added. "But that was the decision of the Chinese government." Even so, Hagel said, he did not foresee a disruption in Sino-U.S. military relations.
While steps are always being taken to evaluate insider threats and to counter them through upgraded systems and improved technologies, Hagel said, in the end, little can be done if someone with a top-secret security clearance is willing to break the law.
"I don't know how you can ever completely 100-percent guard against someone who wants to break the law and violate the statutes and the interests of our nation," Hagel said.
Hagel Calls on Russia to Hand Snowden Over to U.S.
By Nick Simeone
American Forces Press Service
WASHINGTON, June 26, 2013 - Defense Secretary Chuck Hagel today called on Russia to hand over Edward Snowden to the United States.
Hagel said he believes that Snowden, the former National Security Agency contractor and now fugitive who has admitted to revealing highly classified U.S. government surveillance programs, is probably still at a Moscow airport.
"I would hope that the Russians do the right thing here and turn Snowden over to the United States," Hagel told reporters during a Pentagon news conference, adding that he did not know if Moscow has made a final decision on what to do with the man now charged with espionage.
Hagel called the Snowden affair a negative in U.S.-Russian relations but nevertheless one that both nations must work through.
Hagel, along with Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, told reporters that Snowden's decision to reveal details about the NSA's gathering of phone records of millions of Americans as well as a separate classified program that involved eavesdropping on Internet activity by foreigners overseas did uncalculated damage to U.S national security.
"We are assessing that now. But make no mistake. This violation of our laws was a serious security breach," Hagel said. He added that he was in the Senate when the laws approving the programs were passed.
"They are legal," Hagel said of those laws, "and they do protect the United States."
Army Gen. Keith B. Alexander, director of the National Security Agency and commander of U.S. Cyber Command, has told Congress the classified surveillance programs have prevented more than 50 terrorist plots since the 9/11 attacks.
Snowden has not been seen in public since arriving in Russia June 23 from Hong Kong, where, despite a U.S. request that he be detained there, was allowed to board a flight to Moscow.
"We're very disappointed in the Chinese government in how they've handled this," Hagel said, adding that both countries could have chosen to cooperate.
"And this was an occasion, I think, where we had an opportunity to do that," Hagel added. "But that was the decision of the Chinese government." Even so, Hagel said, he did not foresee a disruption in Sino-U.S. military relations.
While steps are always being taken to evaluate insider threats and to counter them through upgraded systems and improved technologies, Hagel said, in the end, little can be done if someone with a top-secret security clearance is willing to break the law.
"I don't know how you can ever completely 100-percent guard against someone who wants to break the law and violate the statutes and the interests of our nation," Hagel said.
FACT SHEET: U.S.-INDIA CULTURAL COOPERATION
FROM: U.S. DEPARTMENT OF STATE
U.S.-India Joint Fact Sheet: Cultural Cooperation
Media Note
Office of the Spokesperson
Washington, DC
June 24, 2013
U.S.-India cooperation in the area of culture includes cultural exchanges, art exhibitions, collaboration in areas of conservation and museum management, and the establishment of Indian chairs at U.S. universities.
MoA between Ministry of Culture and Metropolitan Museum of Art, New York
The Indian Ministry of Culture and the Metropolitan Museum Art, New York , signed a Memorandum of Agreement in February 2013 to enhance cultural exchanges, training and visits undertaken by museum professionals from both sides and enhance cooperation in areas of conservation, exhibition, academic research, information sharing, public education, promotion and publicity, publication, museum management, and short and long term loans.
The Indian Ministry of Culture Vivekananda Chair
As part of the celebrations of the 150th birth anniversary of Swami Vivekananda, a $1.5 million "The Indian Ministry of Culture Vivekananda Chair" was established in the University of Chicago and a plaque of Swami Vivekananda was installed at the Art Institute of Chicago.
Vivekananda Memorial Program for Museum Excellence
The Ministry of Culture is cooperating with the Art Institute of Chicago under the $500,000 "Vivekananda Memorial Programme for Museum Excellence" for upgrading the skills of museum professionals of India. The training of the first batch of Indian museum professionals took place in the Art Institute of Chicago during September-October 2012. The second program will commence in the later part of 2013.
The Last Harvest
The Tagore exhibition "The Last Harvest" was organized at the Asia Society, New York (September 2011 to January 2012) and at the Art Institute of Chicago (January to April 2012).
U.S.-India Joint Fact Sheet: Cultural Cooperation
Media Note
Office of the Spokesperson
Washington, DC
June 24, 2013
U.S.-India cooperation in the area of culture includes cultural exchanges, art exhibitions, collaboration in areas of conservation and museum management, and the establishment of Indian chairs at U.S. universities.
MoA between Ministry of Culture and Metropolitan Museum of Art, New York
The Indian Ministry of Culture and the Metropolitan Museum Art, New York , signed a Memorandum of Agreement in February 2013 to enhance cultural exchanges, training and visits undertaken by museum professionals from both sides and enhance cooperation in areas of conservation, exhibition, academic research, information sharing, public education, promotion and publicity, publication, museum management, and short and long term loans.
The Indian Ministry of Culture Vivekananda Chair
As part of the celebrations of the 150th birth anniversary of Swami Vivekananda, a $1.5 million "The Indian Ministry of Culture Vivekananda Chair" was established in the University of Chicago and a plaque of Swami Vivekananda was installed at the Art Institute of Chicago.
Vivekananda Memorial Program for Museum Excellence
The Ministry of Culture is cooperating with the Art Institute of Chicago under the $500,000 "Vivekananda Memorial Programme for Museum Excellence" for upgrading the skills of museum professionals of India. The training of the first batch of Indian museum professionals took place in the Art Institute of Chicago during September-October 2012. The second program will commence in the later part of 2013.
The Last Harvest
The Tagore exhibition "The Last Harvest" was organized at the Asia Society, New York (September 2011 to January 2012) and at the Art Institute of Chicago (January to April 2012).
Wednesday, June 26, 2013
CFTC CHAIRMAN GENSLER TESTIMONY BEFORE SENATE APPROPRIATIONS SUBCOMMITTEE
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
Testimony of Chairman Gary Gensler Before the U.S. Senate Appropriations Subcommittee on Financial Services and General Government, Washington, DC
June 25, 2013
Good afternoon Chairman Udall, Ranking Member Johanns and members of the Subcommittee. Thank you for inviting me to today’s hearing on the President’s request for the Commodity Futures Trading Commission’s (CFTC) fiscal year (FY) 2014 budget. I’m pleased to testify along with Securities and Exchange Commission (SEC) Chair Mary Jo White.
This hearing is occurring at an historic time in the markets because under Congress’ direction, the CFTC now oversees not only futures markets that we have overseen for decades, but also the swaps market. The SEC oversees the security-based swaps market. The CFTC has completed 90 percent of the swap market reform rules required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The public is benefiting from seeing the price and volume of each swap transaction. This information is available free of charge on a website, like a modern-day tickertape. For the first time, standardized swaps will have to be traded on transparent trading platforms. The public also is benefiting from the risk reduction and greater access to the market that comes from centralized clearing. And for the first time, the public is benefiting from the oversight of swap dealers. So far, 78 have registered and must adhere to sales practice and business conduct standards to help lower risk to the overall economy.
The marketplace is increasingly shifting to implementation of these common-sense rules of the road. Now it is all the more clear: the CFTC is not the right size for its new and expanded mission Congress has directed it to perform.
The CFTC’s current funding is $195 million after sequestration. We recognize that the federal government is operating under a sequester and that budgets for agencies across government require additional scrutiny. Our mission, however, has expanded dramatically. We now oversee the nearly $300 trillion swaps market. It is critical that we be resourced to promote transparency in these markets and to help protect the economy and taxpayers from risks posed by these markets. Thus, the President’ FY 2014 budget requests an appropriation of $315 million and 1,015 FTEs. The overall funding levels requested approximate the plan set forth in the President’s 2013 Budget ($308 million and 1,015 FTE), but also take into account industry progress in implementing financial reform. Although the 1,015 FTE requested in this budget are at the same level as for FY 2013, adjustments were made across our mission activities to reflect the transition from Dodd-Frank rulemaking to swaps market oversight in 2014. Primarily, the Commission shifted its requested resource allocation to support and maintain direct examinations – a critical component of customer protection. Market events have highlighted that the Commission must do everything within our authorities and resources to strengthen oversight programs and the protection of customers and their funds.
The President’s budget request for the Commission strikes a balance between important investments in technology and human capital, both of which are essential to carrying out the agency’s mandate. This approximately 50 percent increase in appropriated funding includes a 62 percent increase in IT services, but only a 44 percent increase in staff.
The CFTC is dedicated to using taxpayer dollars efficiently – nearly a fourth of the overall budget request, $73 million, is for outside IT services. When the CFTC’s dedicated IT staff is included, the request is $94.8 million for IT, or nearly a third of the overall budget. But it still takes human beings to watch for market manipulation and abuses that affect hedgers, farmers, ranchers, producers and commercial companies, as well as the public buying gas at the pump.
The CFTC is operating under a strategic plan for FY 2011-2015. This plan raises the bar on the agency’s performance measures to more accurately evaluate our progress. But the agency’s performance is affected by the challenges of limited resources. For the second year in a row, there are many goals that were not met, as are detailed in the agency’s Annual Performance Report (APR). The agency will include findings from the APR in this year’s revision of the strategic plan and consider the results as the agency reevaluates the allocation of resources.
Appropriations statutes for the CFTC for FY 2012 granted authority to transfer funds between purposes. This authority will expire on September 30, 2013. We used the authority in both FY 2012 and FY 2013 to avoid furloughs or reductions-in-force that otherwise would have been necessary. In the event that FY 2014 funding is provided through a continuing resolution for any period of time on and after October 1, 2013, the lapse in the transfer authority will very likely lead to a need to take personnel actions that seriously undermine the agency’s ability to perform its mission.
In my remaining testimony, I will review the five areas that make up over 90 percent of our requested budgeted staff increase: registrations, examinations, surveillance and data, enforcement, and economics and legal analysis.
Registration and Product Reviews
A significant task before us in FY 2014 will be the continuation of registration of entities, as well as reviews of new products for both the clearing mandate and the trading mandate.
We want to consider registration applications in a thoughtful and timely manner, be efficient in reviewing submissions, and be responsive to market participant inquiries – but this will require sufficient funding. For FY 2014, the President’s request supports $38.9 million and 147 FTEs for these two mission areas, an increase of $22.6 million and 92 FTEs.
The estimated 200 clearinghouses, trading platforms, swap data repositories, swap dealers and major swap participants that are recently registered or may seek CFTC registration within the next year is a dramatic increase over any registration effort the agency has overseen in the past.
The Commission needs staff to facilitate the registration of the following:
Clearinghouses – Entities that lower risk to the public by guaranteeing the obligations of both parties in a transaction. We are working with four entities seeking to register as DCOs and have inquiries from others. These entities would join the 13 we currently oversee.
Designated contract markets (DCMs) – U.S. trading platforms that list futures and options and likely will start listing swaps. The CFTC currently oversees 16 DCMs, and by 2014, staff expects another three to four to seek registration.
Foreign boards of trade (FBOTs) – Regulated trading platforms in other countries that are generally equivalent to DCMs. Since the FBOT rule became effective, 20 FBOTs have filed applications with the CFTC. By 2014, staff expects an additional couple of FBOTs to seek registration with the CFTC.
Swap data repositories (SDRs) – Recordkeeping facilities created by Dodd-Frank to bring transparency to the swaps market. Three are provisionally registered with the CFTC, and by 2014, one additional SDR may seek registration.
Swap dealers and major swap participants – Under the Dodd-Frank Act, the CFTC is working to comprehensively regulate swap dealers and major swap participants to lower their risk to the economy. As the result of completed CFTC rules, 78 swap dealers and two major swap participants are now provisionally registered. This group includes the largest domestic and international financial institutions dealing in swaps with U.S. persons. Commission staff currently estimates that over time, 25-50 additional swap dealers may request registration with the National Futures Association (NFA). We’ll be overseeing their registration and related questions.
Swap execution facilities (SEFs) – The new trading platform for swaps. Commission staff estimates that 15-20 entities may request to become SEFs.
The Commission approved the first clearing requirement last November. As of June 10, most financial entities were required to bring certain credit default and interest rate swaps into central clearing. Accounts managed by third party investment managers and ERISA pension plans have until September 9 to begin clearing. The Commission continues in the resource intensive review for determinations of other swaps that will be subject to the clearing mandate.
Full funding for the agency means that we will be best prepared to review the dramatic increase in requested registrations and to review swaps for the clearing mandate. A partial increase in funding means market participants will see a backlog in registrations, responses to their inquiries, and product review because we won’t have personnel sufficient to review their submissions in a timely and complete manner. Flat funding means market participants will wait even longer. There will be significant backlogs for participants seeking to register with the CFTC, as well as for the review of swaps for mandatory clearing.
Examinations
Another critical mission for FY 2014 will be more regular and more in-depth examinations of the major market participants the CFTC oversees. Examinations are the CFTC’s tool to check for compliance with laws that protect the public and to ensure the protection of customer funds. The President’s request would provide $44.3 million and 185 FTEs for examinations, an increase of $25.6 million and 104 FTEs. The CFTC would more than double our current allocation for this mission because the number of entities we examine is expected to more than double.
This is an area where the agency has fallen short of our goals in performance reviews. The CFTC directly reviews clearinghouses and trading platforms and will review SDRs. But while the agency reviews them directly, we don’t have the resources to have full-time staff onsite, unlike other regulatory agencies that do have on-the-ground staff at the significant firms they oversee. The CFTC also doesn’t do annual reviews. Clearinghouses, for instance, currently are examined on a three-year cycle. For intermediaries such as futures commission merchants (FCMs) and swap dealers, the CFTC relies on what are known as self-regulatory organizations (SROs) to be the primary examiners. Given our lack of resources, we’re only able to double check the SROs’ work on a limited number of FCMs each year, and the agency can spend little time onsite at the firms. Our budget also doesn’t allow us to review commodity pool operators or commodity trading advisors.
On top of the current lack of staff for examinations, our responsibilities in 2014 will expand to include reviews of many new market participants. For instance, there are currently 106 FCMs, 78 swap dealers and two major swap participants have provisionally registered, and more are expected to do so as the year progresses. More frequent and in-depth examinations are necessary to assure the public that firms have adequate capital, as well as systems and procedures in place to protect customer money. Reviews are critical to ensuring the financial soundness of clearinghouses, and ensuring transparency and competition in the trading markets.
Fully funding the increase for examinations means the Commission can move toward annual reviews of all significant clearinghouses and trading platforms and adequate reviews of FCMs and swap dealers. A partial increase for examinations means cutting back our monitoring plans for new market participants and more in-depth risk reviews. Flat funding means we will continue lacking the ability to assure the public that the CFTC’s registrants are financially sound and in compliance with regulatory protections.
Surveillance and Data
Effective market surveillance is dependent on the CFTC’s ability to acquire and analyze extremely large volumes of data to identify trends and events that warrant further investigation. For FY 2014, the President’s request would support $61.7 million and 174 FTEs for surveillance, data acquisition, and analytics, an increase of $18.3 million and 53 FTEs. Of the $61.7 million request, 55 percent would be directed toward IT.
The Dodd-Frank swaps market transparency rules mean a major increase in the amount of incoming data for the CFTC to aggregate and analyze. The agency is taking on the challenge of establishing connections with SDRs and aggregating the newly available swaps data with futures market data. This requires high performance hardware and software and the development of analytical alerts. But it also requires the corresponding personnel to manage this technology effectively for surveillance and enforcement.
As the CFTC also receives ownership and control information for trading accounts, the agency will have data to better detect intraday position limit violations and analyze high frequency trading.
A full increase for surveillance means the CFTC will have the ability to analyze futures and swaps data to protect market participants and the public. A partial increase would limit the agency’s investments in analysis-based surveillance tools. And flat funding will limit our capacity to effectively utilize and aggregate the new data we now are receiving.
Enforcement
The CFTC’s enforcement arm protects market participants and other members of the public from fraud, manipulation, and other abusive practices in the futures and swaps markets. Our efforts range from pursuing Ponzi schemers who defraud individuals across the country out of life savings; to abuses that threaten customer funds; to false reporting of prices; to schemes to manipulate prices, including of goods, such as oil, gas and agricultural products. The Commission has opened more than 800 investigations in the past two fiscal years. The President’s FY 2014 request would provide $57.7 million and 213 FTEs for enforcement, an increase of $18.1 million and 51 FTEs.
In 2002, we had 154 people devoted to enforcement, and that number is nearly flat with our current staff of 156. This staff has been called upon to enforce laws and rules that are new to our arsenal. The Dodd-Frank mandate closed a significant gap in the agency’s enforcement authorities by extending the enforcement reach to swaps and prohibiting the reckless use of manipulative or deceptive schemes. In addition, the CFTC will be overseeing a host of new market participants.
A full increase for enforcement means more investigations and cases that the agency can pursue to protect the public. A less than full increase means that the CFTC will be faced with difficult choices. We could maintain the current volume and types of cases, but we would have to shift resources from futures cases to swaps cases or not cover all of the swaps market. Flat funding means not only that the Commission’s enforcement volume likely would shrink, but parts of the markets would be left with little enforcement oversight.
The Commission’s engagement in targeted enforcement efforts in the public interest include its historic actions regarding the rigging of benchmark rates, such as the London Interbank Offered Rate (LIBOR), a reference rate for much of the U.S. futures and swaps markets. Barclays, UBS and RBS were fined approximately $2.5 billion for manipulative conduct by the CFTC, the UK Financial Services Authority (FSA) and the Justice Department. At each bank, the misconduct spanned many years, took place in offices in several cities around the globe, included numerous people, and involved multiple benchmark rates and currencies. In each case, there was evidence of collusion. In the UBS and RBS cases, one or more inter-dealer brokers painted false pictures to influence submissions of other banks, i.e., to spread the falsehoods more widely. Barclays and UBS also were reporting falsely low borrowing rates in an effort to protect their reputation. While the cases led to $2 billion in fines flowing to the U.S. Treasury, this is about ensuring for financial market integrity.
Economics and Legal Analysis
For FY 2014, the President’s budget would support $24.6 million and 97 FTEs to invest in robust economic analysis teams and Commission-wide legal analysis, a decrease of $3.6 million and 20 FTEs from our estimate under the pre-sequester continuing resolution. The CFTC’s economists support all of the Commission’s divisions, including surveillance and complex enforcement cases. They have served on Dodd-Frank rule teams to carefully consider the costs and benefits of each rule.
The decision to make downward adjustments in the resources requested for this critical mission activity was not an easy one. However, given the increasing number of intermediaries the CFTC now oversees, examination teams need to be bolstered.
In 2014, the CFTC’s economists will be integral in developing tools to analyze automated surveillance data and continuing to evaluate new products for clearing.
Flat funding means a strained ability to analyze the market and detect problems that could be negative for the economy. Flat funding also means the Commission’s legal analysis team will be cut back even further to support front-line examinations, adding to the delays in responding to market participants and processing applications and straining the team’s ability to support enforcement efforts.
Conclusion
The CFTC’s hardworking team is just 9 percent more in numbers than at our peak in the 1990s. Yet since that time, the futures market has grown five-fold, driven by rapid advances in technology. The swaps market is eight times larger than the futures market. Effective market implementation of swaps reforms by the CFTC requires additional resources. We are not asking for eight times the funding or staff. Investments in both technology and people, however, are needed for effective oversight of these markets.
Though data has started to be reported to the public and to regulators, we need the staff and technology to access, review and analyze the data. With 80 entities having registered as new swap dealers and major swap participants, we need people to answer their questions and work with the NFA on the necessary oversight to ensure market integrity. Furthermore, as market participants expand their technological sophistication, CFTC technology upgrades are critical for market surveillance and to enhance customer fund protection programs.
This is an incredibly strained budget environment. But without sufficient funding for the CFTC, the nation cannot be assured this agency can closely monitor for the protection of customer funds and utilize our enforcement arm to its fullest potential to go after bad actors in the futures and swaps markets. Without sufficient funding for the CFTC, the nation cannot be assured that this agency can effectively enforce essential rules that promote transparency and lower risk to the economy.
Thank you again for inviting me today, and I look forward to your questions.
Testimony of Chairman Gary Gensler Before the U.S. Senate Appropriations Subcommittee on Financial Services and General Government, Washington, DC
June 25, 2013
Good afternoon Chairman Udall, Ranking Member Johanns and members of the Subcommittee. Thank you for inviting me to today’s hearing on the President’s request for the Commodity Futures Trading Commission’s (CFTC) fiscal year (FY) 2014 budget. I’m pleased to testify along with Securities and Exchange Commission (SEC) Chair Mary Jo White.
This hearing is occurring at an historic time in the markets because under Congress’ direction, the CFTC now oversees not only futures markets that we have overseen for decades, but also the swaps market. The SEC oversees the security-based swaps market. The CFTC has completed 90 percent of the swap market reform rules required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The public is benefiting from seeing the price and volume of each swap transaction. This information is available free of charge on a website, like a modern-day tickertape. For the first time, standardized swaps will have to be traded on transparent trading platforms. The public also is benefiting from the risk reduction and greater access to the market that comes from centralized clearing. And for the first time, the public is benefiting from the oversight of swap dealers. So far, 78 have registered and must adhere to sales practice and business conduct standards to help lower risk to the overall economy.
The marketplace is increasingly shifting to implementation of these common-sense rules of the road. Now it is all the more clear: the CFTC is not the right size for its new and expanded mission Congress has directed it to perform.
The CFTC’s current funding is $195 million after sequestration. We recognize that the federal government is operating under a sequester and that budgets for agencies across government require additional scrutiny. Our mission, however, has expanded dramatically. We now oversee the nearly $300 trillion swaps market. It is critical that we be resourced to promote transparency in these markets and to help protect the economy and taxpayers from risks posed by these markets. Thus, the President’ FY 2014 budget requests an appropriation of $315 million and 1,015 FTEs. The overall funding levels requested approximate the plan set forth in the President’s 2013 Budget ($308 million and 1,015 FTE), but also take into account industry progress in implementing financial reform. Although the 1,015 FTE requested in this budget are at the same level as for FY 2013, adjustments were made across our mission activities to reflect the transition from Dodd-Frank rulemaking to swaps market oversight in 2014. Primarily, the Commission shifted its requested resource allocation to support and maintain direct examinations – a critical component of customer protection. Market events have highlighted that the Commission must do everything within our authorities and resources to strengthen oversight programs and the protection of customers and their funds.
The President’s budget request for the Commission strikes a balance between important investments in technology and human capital, both of which are essential to carrying out the agency’s mandate. This approximately 50 percent increase in appropriated funding includes a 62 percent increase in IT services, but only a 44 percent increase in staff.
The CFTC is dedicated to using taxpayer dollars efficiently – nearly a fourth of the overall budget request, $73 million, is for outside IT services. When the CFTC’s dedicated IT staff is included, the request is $94.8 million for IT, or nearly a third of the overall budget. But it still takes human beings to watch for market manipulation and abuses that affect hedgers, farmers, ranchers, producers and commercial companies, as well as the public buying gas at the pump.
The CFTC is operating under a strategic plan for FY 2011-2015. This plan raises the bar on the agency’s performance measures to more accurately evaluate our progress. But the agency’s performance is affected by the challenges of limited resources. For the second year in a row, there are many goals that were not met, as are detailed in the agency’s Annual Performance Report (APR). The agency will include findings from the APR in this year’s revision of the strategic plan and consider the results as the agency reevaluates the allocation of resources.
Appropriations statutes for the CFTC for FY 2012 granted authority to transfer funds between purposes. This authority will expire on September 30, 2013. We used the authority in both FY 2012 and FY 2013 to avoid furloughs or reductions-in-force that otherwise would have been necessary. In the event that FY 2014 funding is provided through a continuing resolution for any period of time on and after October 1, 2013, the lapse in the transfer authority will very likely lead to a need to take personnel actions that seriously undermine the agency’s ability to perform its mission.
In my remaining testimony, I will review the five areas that make up over 90 percent of our requested budgeted staff increase: registrations, examinations, surveillance and data, enforcement, and economics and legal analysis.
Registration and Product Reviews
A significant task before us in FY 2014 will be the continuation of registration of entities, as well as reviews of new products for both the clearing mandate and the trading mandate.
We want to consider registration applications in a thoughtful and timely manner, be efficient in reviewing submissions, and be responsive to market participant inquiries – but this will require sufficient funding. For FY 2014, the President’s request supports $38.9 million and 147 FTEs for these two mission areas, an increase of $22.6 million and 92 FTEs.
The estimated 200 clearinghouses, trading platforms, swap data repositories, swap dealers and major swap participants that are recently registered or may seek CFTC registration within the next year is a dramatic increase over any registration effort the agency has overseen in the past.
The Commission needs staff to facilitate the registration of the following:
Designated contract markets (DCMs) – U.S. trading platforms that list futures and options and likely will start listing swaps. The CFTC currently oversees 16 DCMs, and by 2014, staff expects another three to four to seek registration.
Foreign boards of trade (FBOTs) – Regulated trading platforms in other countries that are generally equivalent to DCMs. Since the FBOT rule became effective, 20 FBOTs have filed applications with the CFTC. By 2014, staff expects an additional couple of FBOTs to seek registration with the CFTC.
Swap data repositories (SDRs) – Recordkeeping facilities created by Dodd-Frank to bring transparency to the swaps market. Three are provisionally registered with the CFTC, and by 2014, one additional SDR may seek registration.
Swap dealers and major swap participants – Under the Dodd-Frank Act, the CFTC is working to comprehensively regulate swap dealers and major swap participants to lower their risk to the economy. As the result of completed CFTC rules, 78 swap dealers and two major swap participants are now provisionally registered. This group includes the largest domestic and international financial institutions dealing in swaps with U.S. persons. Commission staff currently estimates that over time, 25-50 additional swap dealers may request registration with the National Futures Association (NFA). We’ll be overseeing their registration and related questions.
Swap execution facilities (SEFs) – The new trading platform for swaps. Commission staff estimates that 15-20 entities may request to become SEFs.
The Commission approved the first clearing requirement last November. As of June 10, most financial entities were required to bring certain credit default and interest rate swaps into central clearing. Accounts managed by third party investment managers and ERISA pension plans have until September 9 to begin clearing. The Commission continues in the resource intensive review for determinations of other swaps that will be subject to the clearing mandate.
Full funding for the agency means that we will be best prepared to review the dramatic increase in requested registrations and to review swaps for the clearing mandate. A partial increase in funding means market participants will see a backlog in registrations, responses to their inquiries, and product review because we won’t have personnel sufficient to review their submissions in a timely and complete manner. Flat funding means market participants will wait even longer. There will be significant backlogs for participants seeking to register with the CFTC, as well as for the review of swaps for mandatory clearing.
Examinations
Another critical mission for FY 2014 will be more regular and more in-depth examinations of the major market participants the CFTC oversees. Examinations are the CFTC’s tool to check for compliance with laws that protect the public and to ensure the protection of customer funds. The President’s request would provide $44.3 million and 185 FTEs for examinations, an increase of $25.6 million and 104 FTEs. The CFTC would more than double our current allocation for this mission because the number of entities we examine is expected to more than double.
This is an area where the agency has fallen short of our goals in performance reviews. The CFTC directly reviews clearinghouses and trading platforms and will review SDRs. But while the agency reviews them directly, we don’t have the resources to have full-time staff onsite, unlike other regulatory agencies that do have on-the-ground staff at the significant firms they oversee. The CFTC also doesn’t do annual reviews. Clearinghouses, for instance, currently are examined on a three-year cycle. For intermediaries such as futures commission merchants (FCMs) and swap dealers, the CFTC relies on what are known as self-regulatory organizations (SROs) to be the primary examiners. Given our lack of resources, we’re only able to double check the SROs’ work on a limited number of FCMs each year, and the agency can spend little time onsite at the firms. Our budget also doesn’t allow us to review commodity pool operators or commodity trading advisors.
On top of the current lack of staff for examinations, our responsibilities in 2014 will expand to include reviews of many new market participants. For instance, there are currently 106 FCMs, 78 swap dealers and two major swap participants have provisionally registered, and more are expected to do so as the year progresses. More frequent and in-depth examinations are necessary to assure the public that firms have adequate capital, as well as systems and procedures in place to protect customer money. Reviews are critical to ensuring the financial soundness of clearinghouses, and ensuring transparency and competition in the trading markets.
Fully funding the increase for examinations means the Commission can move toward annual reviews of all significant clearinghouses and trading platforms and adequate reviews of FCMs and swap dealers. A partial increase for examinations means cutting back our monitoring plans for new market participants and more in-depth risk reviews. Flat funding means we will continue lacking the ability to assure the public that the CFTC’s registrants are financially sound and in compliance with regulatory protections.
Surveillance and Data
Effective market surveillance is dependent on the CFTC’s ability to acquire and analyze extremely large volumes of data to identify trends and events that warrant further investigation. For FY 2014, the President’s request would support $61.7 million and 174 FTEs for surveillance, data acquisition, and analytics, an increase of $18.3 million and 53 FTEs. Of the $61.7 million request, 55 percent would be directed toward IT.
The Dodd-Frank swaps market transparency rules mean a major increase in the amount of incoming data for the CFTC to aggregate and analyze. The agency is taking on the challenge of establishing connections with SDRs and aggregating the newly available swaps data with futures market data. This requires high performance hardware and software and the development of analytical alerts. But it also requires the corresponding personnel to manage this technology effectively for surveillance and enforcement.
As the CFTC also receives ownership and control information for trading accounts, the agency will have data to better detect intraday position limit violations and analyze high frequency trading.
A full increase for surveillance means the CFTC will have the ability to analyze futures and swaps data to protect market participants and the public. A partial increase would limit the agency’s investments in analysis-based surveillance tools. And flat funding will limit our capacity to effectively utilize and aggregate the new data we now are receiving.
Enforcement
The CFTC’s enforcement arm protects market participants and other members of the public from fraud, manipulation, and other abusive practices in the futures and swaps markets. Our efforts range from pursuing Ponzi schemers who defraud individuals across the country out of life savings; to abuses that threaten customer funds; to false reporting of prices; to schemes to manipulate prices, including of goods, such as oil, gas and agricultural products. The Commission has opened more than 800 investigations in the past two fiscal years. The President’s FY 2014 request would provide $57.7 million and 213 FTEs for enforcement, an increase of $18.1 million and 51 FTEs.
In 2002, we had 154 people devoted to enforcement, and that number is nearly flat with our current staff of 156. This staff has been called upon to enforce laws and rules that are new to our arsenal. The Dodd-Frank mandate closed a significant gap in the agency’s enforcement authorities by extending the enforcement reach to swaps and prohibiting the reckless use of manipulative or deceptive schemes. In addition, the CFTC will be overseeing a host of new market participants.
A full increase for enforcement means more investigations and cases that the agency can pursue to protect the public. A less than full increase means that the CFTC will be faced with difficult choices. We could maintain the current volume and types of cases, but we would have to shift resources from futures cases to swaps cases or not cover all of the swaps market. Flat funding means not only that the Commission’s enforcement volume likely would shrink, but parts of the markets would be left with little enforcement oversight.
The Commission’s engagement in targeted enforcement efforts in the public interest include its historic actions regarding the rigging of benchmark rates, such as the London Interbank Offered Rate (LIBOR), a reference rate for much of the U.S. futures and swaps markets. Barclays, UBS and RBS were fined approximately $2.5 billion for manipulative conduct by the CFTC, the UK Financial Services Authority (FSA) and the Justice Department. At each bank, the misconduct spanned many years, took place in offices in several cities around the globe, included numerous people, and involved multiple benchmark rates and currencies. In each case, there was evidence of collusion. In the UBS and RBS cases, one or more inter-dealer brokers painted false pictures to influence submissions of other banks, i.e., to spread the falsehoods more widely. Barclays and UBS also were reporting falsely low borrowing rates in an effort to protect their reputation. While the cases led to $2 billion in fines flowing to the U.S. Treasury, this is about ensuring for financial market integrity.
Economics and Legal Analysis
For FY 2014, the President’s budget would support $24.6 million and 97 FTEs to invest in robust economic analysis teams and Commission-wide legal analysis, a decrease of $3.6 million and 20 FTEs from our estimate under the pre-sequester continuing resolution. The CFTC’s economists support all of the Commission’s divisions, including surveillance and complex enforcement cases. They have served on Dodd-Frank rule teams to carefully consider the costs and benefits of each rule.
The decision to make downward adjustments in the resources requested for this critical mission activity was not an easy one. However, given the increasing number of intermediaries the CFTC now oversees, examination teams need to be bolstered.
In 2014, the CFTC’s economists will be integral in developing tools to analyze automated surveillance data and continuing to evaluate new products for clearing.
Flat funding means a strained ability to analyze the market and detect problems that could be negative for the economy. Flat funding also means the Commission’s legal analysis team will be cut back even further to support front-line examinations, adding to the delays in responding to market participants and processing applications and straining the team’s ability to support enforcement efforts.
Conclusion
The CFTC’s hardworking team is just 9 percent more in numbers than at our peak in the 1990s. Yet since that time, the futures market has grown five-fold, driven by rapid advances in technology. The swaps market is eight times larger than the futures market. Effective market implementation of swaps reforms by the CFTC requires additional resources. We are not asking for eight times the funding or staff. Investments in both technology and people, however, are needed for effective oversight of these markets.
Though data has started to be reported to the public and to regulators, we need the staff and technology to access, review and analyze the data. With 80 entities having registered as new swap dealers and major swap participants, we need people to answer their questions and work with the NFA on the necessary oversight to ensure market integrity. Furthermore, as market participants expand their technological sophistication, CFTC technology upgrades are critical for market surveillance and to enhance customer fund protection programs.
This is an incredibly strained budget environment. But without sufficient funding for the CFTC, the nation cannot be assured this agency can closely monitor for the protection of customer funds and utilize our enforcement arm to its fullest potential to go after bad actors in the futures and swaps markets. Without sufficient funding for the CFTC, the nation cannot be assured that this agency can effectively enforce essential rules that promote transparency and lower risk to the economy.
Thank you again for inviting me today, and I look forward to your questions.
U.S. ACTING AIR FORCE SECRETARY RECOUNTS EXPERIENCE AS GAY MEMBER OF DEFENSE DEPARTMENT
FROM: U.S. DEPARTMENT OF DEFENSE
Acting Air Force Secretary Recounts Journey to Equality
By Amaani Lyle
American Forces Press Service
WASHINGTON, June 25, 2013 - During a Lesbian, Gay, Bisexual and Transgender Pride Month event at the Pentagon today, the highest-ranking openly gay member of the Defense Department described his experiences witnessing the evolution of the law that banned openly gay service members, from its implementation to its eventual repeal.
Acting Air Force Secretary Eric Fanning noted the significance of Defense Secretary Chuck Hagel kicking off the DOD's pride celebration, as just two years ago, gay and lesbian service members could not openly serve in the military.
Absent an association like DOD Pride to lend support, Fanning described the difficulties and sense of isolation that he and others at the Pentagon endured as the repeal process ran its course. "There were no other open LGBT appointees, and anyone serving openly in uniform was surely in the process of being discharged," he said.
Fanning began working in the Pentagon 20 years ago, a time he described as a personally painful experience as DOD began to implement the law that came to be known as "Don't Ask, Don't Tell."
"It was a deeply conflicting time for me," the Air Force's top civilian official said. "I was launching a career with strong support from amazing bosses who knew about my personal life. ... I was being given opportunities that were being denied to people just like me. I was working for an institution that discriminated -- against people just like me."
He also recalled how during that time, people spoke about gays and lesbians in "blistering and emotional ways," denigrating them for simply wanting the right to serve their country while being honest about who they were.
Still, Fanning said, the military underwent the difficult process of opening doors to those it previously denied or constrained: women, immigrants looking to prove their patriotism and earn their citizenship, and to gays and lesbians.
"At times, it seemed agonizingly slow, or even that we were losing ground," Fanning said. "But never once did we doubt we were on the right path."
Relying on the diverse talents of a broader pool of people who are willing and able to serve has fortified the military, Fanning explained. "We are stronger for looking more like the society we are charged with protecting, and we are today ... the finest military the world has ever known," he said.
In the two years leading up to the repeal of "Don't Ask Don't Tell," the debate had a remarkably different tone, due in great part to the support of the president and the then-chairman of the Joint Chiefs of Staff, Navy Adm. Mike Mullen.
"I cannot escape being troubled by the fact that we have in place a policy which forces young men and women to lie about who they are in order to defend their fellow citizens," the admiral testified before Congress. "It comes down to integrity -- theirs as individuals and ours as an institution."
Looking back to almost two decades earlier as a junior aide, Fanning said, he could never imagine having a chairman say things like Mullen did.
Fanning said most people had begun to accept the possibility of repeal long before it occurred, though he was fortunate enough to be present when the president signed the historic document.
Among the celebrations and congratulations, he said, many supporters asked what it was like to be in the Pentagon after the repeal.
"I answered honestly, and I think disappointingly, that ... we went back to the building, and in my view, the building had already moved on past the decision and we talked about what we talk about every single day: the budget," he said in a deadpan tone.
Fanning also said he's received a bit of attention since he was nominated to be undersecretary of the Air Force -- not all of it welcome, some quite negative, and some that he described as "rather imaginative."
"Many have speculated as to my agenda, what color I'll paint the planes, what designs I have on the uniforms," he said. But like almost everyone else, he added, he remains focused on simply doing his job, and chiding comments are dwarfed by the outpouring of support he's received in and out of the Pentagon.
"It reminds me that, as important as events like this are for our community, they're also important opportunities for our allies to identify themselves and to let us know they're right alongside us," Fanning said. "Events like this give voice not just to us, but to those who support us."
Acting Air Force Secretary Recounts Journey to Equality
By Amaani Lyle
American Forces Press Service
WASHINGTON, June 25, 2013 - During a Lesbian, Gay, Bisexual and Transgender Pride Month event at the Pentagon today, the highest-ranking openly gay member of the Defense Department described his experiences witnessing the evolution of the law that banned openly gay service members, from its implementation to its eventual repeal.
Acting Air Force Secretary Eric Fanning noted the significance of Defense Secretary Chuck Hagel kicking off the DOD's pride celebration, as just two years ago, gay and lesbian service members could not openly serve in the military.
Absent an association like DOD Pride to lend support, Fanning described the difficulties and sense of isolation that he and others at the Pentagon endured as the repeal process ran its course. "There were no other open LGBT appointees, and anyone serving openly in uniform was surely in the process of being discharged," he said.
Fanning began working in the Pentagon 20 years ago, a time he described as a personally painful experience as DOD began to implement the law that came to be known as "Don't Ask, Don't Tell."
"It was a deeply conflicting time for me," the Air Force's top civilian official said. "I was launching a career with strong support from amazing bosses who knew about my personal life. ... I was being given opportunities that were being denied to people just like me. I was working for an institution that discriminated -- against people just like me."
He also recalled how during that time, people spoke about gays and lesbians in "blistering and emotional ways," denigrating them for simply wanting the right to serve their country while being honest about who they were.
Still, Fanning said, the military underwent the difficult process of opening doors to those it previously denied or constrained: women, immigrants looking to prove their patriotism and earn their citizenship, and to gays and lesbians.
"At times, it seemed agonizingly slow, or even that we were losing ground," Fanning said. "But never once did we doubt we were on the right path."
Relying on the diverse talents of a broader pool of people who are willing and able to serve has fortified the military, Fanning explained. "We are stronger for looking more like the society we are charged with protecting, and we are today ... the finest military the world has ever known," he said.
In the two years leading up to the repeal of "Don't Ask Don't Tell," the debate had a remarkably different tone, due in great part to the support of the president and the then-chairman of the Joint Chiefs of Staff, Navy Adm. Mike Mullen.
"I cannot escape being troubled by the fact that we have in place a policy which forces young men and women to lie about who they are in order to defend their fellow citizens," the admiral testified before Congress. "It comes down to integrity -- theirs as individuals and ours as an institution."
Looking back to almost two decades earlier as a junior aide, Fanning said, he could never imagine having a chairman say things like Mullen did.
Fanning said most people had begun to accept the possibility of repeal long before it occurred, though he was fortunate enough to be present when the president signed the historic document.
Among the celebrations and congratulations, he said, many supporters asked what it was like to be in the Pentagon after the repeal.
"I answered honestly, and I think disappointingly, that ... we went back to the building, and in my view, the building had already moved on past the decision and we talked about what we talk about every single day: the budget," he said in a deadpan tone.
Fanning also said he's received a bit of attention since he was nominated to be undersecretary of the Air Force -- not all of it welcome, some quite negative, and some that he described as "rather imaginative."
"Many have speculated as to my agenda, what color I'll paint the planes, what designs I have on the uniforms," he said. But like almost everyone else, he added, he remains focused on simply doing his job, and chiding comments are dwarfed by the outpouring of support he's received in and out of the Pentagon.
"It reminds me that, as important as events like this are for our community, they're also important opportunities for our allies to identify themselves and to let us know they're right alongside us," Fanning said. "Events like this give voice not just to us, but to those who support us."
FRANK ROSE MAKES REMARKS ON MISSILE DEFENSE
FROM: U.S. STATE DEPARTMENT
2013 National Defense Industrial Association, Air Force Association, and Reserve Officers Association
Remarks
Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance
Congressional Breakfast Seminar Series
Washington, DC
June 21, 2013
Thank you, Peter, for inviting me here this morning. This series is an important resource for the Hill and the larger community here; and I’m glad to have the chance to offer some views on U.S. missile defense policy.
At the State Department, I am responsible for overseeing a wide range of defense issues, including missile defense policy. Today, I would like to speak to you about three parts of U.S. missile defense policy:
First, implementation of the European Phased Adaptive Approach (or EPAA);
Second, the recent changes in U.S. missile defense policy announced by Secretary of Defense Hagel on March 15, and
Third, our ongoing discussion with the Russian Federation on missile defense cooperation.
Implementation of the European Phased Adaptive Approach and NATO Missile Defense
In 2009, the President announced that the EPAA would "provide stronger, smarter, and swifter defenses of American forces and America's Allies" Since then, we have been working hard to implement his vision. As you know, we have made great progress.
EPAA Phase One gained its first operational elements in 2011 with the start of a sustained deployment of an Aegis BMD-capable multi-role ship to the Mediterranean and the deployment of an AN/TPY-2 radar in Turkey.
Spain agreed in 2011 to host four U.S. Aegis-capable ships at the existing naval facility at Rota. These multi-role ships will arrive in the 2014- 2015 timeframe; specifically, two are scheduled to arrive in 2014 and two more in 2015.
With regard to Phase Two, we have an agreement with Romania, ratified in December of 2011, to host a U.S. land-based SM-3 interceptor site beginning in the 2015 timeframe. This site, combined with BMD-capable ships in the Mediterranean, will enhance coverage of NATO from short- and medium-range ballistic missiles launched from the Middle East.
And finally there is Phase Three. Phase Three places land-based SM-3 Block IIA interceptors in Poland, per the Ballistic Missile Defense agreement between the United States and Poland which entered into force in September 2011. This site is on schedule and on budget for deployment in the 2018 timeframe. The interceptor site in Poland is key to the EPAA: when combined with other EPAA assets, Phase Three will provide the necessary capabilities to ensure ballistic missile defense coverage of all NATO European territory in the 2018 timeframe.
Already, NATO has made significant progress on achieving an Alliance missile defense capability. At the Chicago NATO Summit in May 2012, NATO declared it had achieved an "interim" missile defense capability. This is an operationally significant first step, giving NATO the ability to conduct missile defense across southern NATO Europe.
So, as you can see; we are continuing to implement the President’s vision for missile defense in Europe. Of course, many of you are probably interested to hear more about recent changes to U.S. missile defense policy.
Recent Changes to U.S. Missile Defense Policy
On March 15, Secretary of Defense Hagel announced a number of changes to the U.S. missile defense program designed deal with the increasing missile threat from North Korea. In December 2012, North Korea put a satellite in orbit using its Taepodong-2 launch vehicle, demonstrating progress towards long range missile technology. Additionally, North Korea has displayed what appears to be a road mobile ICBM.
As outlined in the February 2010 Ballistic Missile Defense Review, it is U.S. policy to stay ahead of this threat. To maintain the United States advantageous position vis-à-vis the ballistic missile threat from North Korea and Iran, the United States will take four steps:
First, the United States will deploy 14 additional Ground-Based Interceptors (GBIs) in Fort Greely, Alaska. This will increase the total number of GBIs deployed from 30 to 44, providing a nearly 50 percent increase in our current capability.
Second, we are restructuring the SM-3 IIB missile defense interceptor program into a technology development program focusing on an enhanced kill vehicle capability for both the GBI and the SM-3 family of interceptors.
While the SM-3 IIB interceptor would have provided some intercept capability against ICBMs launched at the U.S. homeland from the Middle East, the program experienced significant delays due to cuts from the level of requested funding by Congress, and would therefore not be available in time to meet the increasing threat. The additional GBIs deployed in the United States will address the potential ICBM threat from North Korea sooner than the SM-3 IIB would have been available.
Third, with the support of the Japanese Government, an additional AN/TPY-2 radar will be deployed in Japan. This will provide improved early warning and tracking of any missile launched from North Korea at the United States or Japan.
Fourth, the United States will study the possibility of an additional domestic GBI site. While the Obama Administration has not decided on whether to proceed with an additional site, studying various options would shorten the timeline for construction should such a decision be made in the future.
While we are no longer planning to deploy Phase Four of the EPAA, let me emphasize that the U.S. commitment to the EPAA and NATO missile defense remains, as Secretary Hagel noted, "ironclad." This commitment includes the planned sites in Poland and Romania. Like the Administration, Congress has supported, and continues to support full funding for Phases One through Three.
I also would note that Phases One through Three of the EPAA will continue to provide important contributions to the defense of the United States homeland. For example, the radar deployed in Turkey can provide important early tracking data on any Iranian missile launches against the United States. The interceptor sites in Romania and Poland, as well as BMD-capable ships at sea, will also be key to protecting U.S. deployed forces and assets in Europe.
Before I move on to our ongoing discussions with the Russian Federation, let me note that the U.S. Government remains committed to our "fly-before-you-buy" policy. This means that we require that missile defense systems demonstrate their effectiveness through intercept flight testing. Specifically, proving the operational capability of the latest model of the GBI kill vehicle is one of our top priorities.
As you can see, we’ve made significant adjustments to U.S. plans for the global ballistic missile defense system going forward. These changes will allow us to achieve better defense of the United States and achieve it sooner.
Cooperation with the Russian Federation
At the same time we are developing a NATO missile defense capability, we also seek to work cooperatively with Russia. We remain convinced that missile defense cooperation between the United States and Russia (and between NATO and Russia) is in the national security interests of all countries involved. For that reason, missile defense cooperation with Russia remains a Presidential priority for this Administration, as it has been for nearly 20 years under both Democratic and Republican administrations.
As such, the United States is continuing discussions with the Russian Federation on missile defense cooperation. Secretary of Defense Hagel and Russian Defense Minister Shoygu agreed in March to reconvene missile defense discussions between Under Secretary of Defense Jim Miller and Deputy Defense Minister Antonov. My boss, Acting Under Secretary Rose Gottemoeller, was in Moscow a few weeks ago continuing discussions with her Russian Ministry of Foreign Affairs counterpart on missile defense cooperation, among other issues.
We believe that through cooperation, Russia will see firsthand that this system is designed to respond to ballistic missile threats from outside the Euro-Atlantic area, and that NATO missile defense systems will not undermine Russia’s strategic nuclear deterrent.
Furthermore, in Chicago last year, the NATO Allies made a very clear statement of our intent regarding strategic stability and Russia’s strategic deterrent. The Chicago Summit Declaration made clear that "…the NATO missile defense in Europe will not undermine strategic stability. NATO missile defense is not directed against Russia and will not undermine Russia’s strategic deterrence capabilities."
While we seek to develop ways to cooperate with Russia on missile defense, it is important to remember that in keeping with its collective security obligations, NATO alone bears responsibility for defending the Alliance from ballistic missile threats. This is why the United States and NATO cannot agree to Russian proposals for "sectoral" or "joint" missile defense architectures. Just as Russia must ensure the defense of Russian territory, NATO must ensure the defense of NATO territory. NATO cannot and will not outsource its Article 5 commitments.
Russia continues to request legal guarantees that could create limitations on our ability to develop and deploy future missile defense systems against regional ballistic missile threats such as those presented by Iran and North Korea. We have made clear that we cannot and will not accept limitations on our ability to defend ourselves, our allies, and our partners, including where we deploy our BMD-capable Aegis ships. As Secretary Hagel’s March decision makes clear, the United States must have the flexibility, without legal limitations, to respond to evolving missile threats from states like Iran and North Korea.
Conclusion
Let me conclude by noting that we are proud of how much we have already achieved thus far with our partners. Yet, there is still much to do. By working with our allies and partners to counter the threat from ballistic missiles, we look forward to achieving higher levels of BMD cooperation and effectiveness both in Europe and around the world.
Thanks very much, and I look forward to your questions.
2013 National Defense Industrial Association, Air Force Association, and Reserve Officers Association
Remarks
Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance
Congressional Breakfast Seminar Series
Washington, DC
June 21, 2013
Thank you, Peter, for inviting me here this morning. This series is an important resource for the Hill and the larger community here; and I’m glad to have the chance to offer some views on U.S. missile defense policy.
At the State Department, I am responsible for overseeing a wide range of defense issues, including missile defense policy. Today, I would like to speak to you about three parts of U.S. missile defense policy:
Second, the recent changes in U.S. missile defense policy announced by Secretary of Defense Hagel on March 15, and
Third, our ongoing discussion with the Russian Federation on missile defense cooperation.
Implementation of the European Phased Adaptive Approach and NATO Missile Defense
In 2009, the President announced that the EPAA would "provide stronger, smarter, and swifter defenses of American forces and America's Allies" Since then, we have been working hard to implement his vision. As you know, we have made great progress.
EPAA Phase One gained its first operational elements in 2011 with the start of a sustained deployment of an Aegis BMD-capable multi-role ship to the Mediterranean and the deployment of an AN/TPY-2 radar in Turkey.
Spain agreed in 2011 to host four U.S. Aegis-capable ships at the existing naval facility at Rota. These multi-role ships will arrive in the 2014- 2015 timeframe; specifically, two are scheduled to arrive in 2014 and two more in 2015.
With regard to Phase Two, we have an agreement with Romania, ratified in December of 2011, to host a U.S. land-based SM-3 interceptor site beginning in the 2015 timeframe. This site, combined with BMD-capable ships in the Mediterranean, will enhance coverage of NATO from short- and medium-range ballistic missiles launched from the Middle East.
And finally there is Phase Three. Phase Three places land-based SM-3 Block IIA interceptors in Poland, per the Ballistic Missile Defense agreement between the United States and Poland which entered into force in September 2011. This site is on schedule and on budget for deployment in the 2018 timeframe. The interceptor site in Poland is key to the EPAA: when combined with other EPAA assets, Phase Three will provide the necessary capabilities to ensure ballistic missile defense coverage of all NATO European territory in the 2018 timeframe.
Already, NATO has made significant progress on achieving an Alliance missile defense capability. At the Chicago NATO Summit in May 2012, NATO declared it had achieved an "interim" missile defense capability. This is an operationally significant first step, giving NATO the ability to conduct missile defense across southern NATO Europe.
So, as you can see; we are continuing to implement the President’s vision for missile defense in Europe. Of course, many of you are probably interested to hear more about recent changes to U.S. missile defense policy.
Recent Changes to U.S. Missile Defense Policy
On March 15, Secretary of Defense Hagel announced a number of changes to the U.S. missile defense program designed deal with the increasing missile threat from North Korea. In December 2012, North Korea put a satellite in orbit using its Taepodong-2 launch vehicle, demonstrating progress towards long range missile technology. Additionally, North Korea has displayed what appears to be a road mobile ICBM.
As outlined in the February 2010 Ballistic Missile Defense Review, it is U.S. policy to stay ahead of this threat. To maintain the United States advantageous position vis-à-vis the ballistic missile threat from North Korea and Iran, the United States will take four steps:
First, the United States will deploy 14 additional Ground-Based Interceptors (GBIs) in Fort Greely, Alaska. This will increase the total number of GBIs deployed from 30 to 44, providing a nearly 50 percent increase in our current capability.
Second, we are restructuring the SM-3 IIB missile defense interceptor program into a technology development program focusing on an enhanced kill vehicle capability for both the GBI and the SM-3 family of interceptors.
While the SM-3 IIB interceptor would have provided some intercept capability against ICBMs launched at the U.S. homeland from the Middle East, the program experienced significant delays due to cuts from the level of requested funding by Congress, and would therefore not be available in time to meet the increasing threat. The additional GBIs deployed in the United States will address the potential ICBM threat from North Korea sooner than the SM-3 IIB would have been available.
Third, with the support of the Japanese Government, an additional AN/TPY-2 radar will be deployed in Japan. This will provide improved early warning and tracking of any missile launched from North Korea at the United States or Japan.
Fourth, the United States will study the possibility of an additional domestic GBI site. While the Obama Administration has not decided on whether to proceed with an additional site, studying various options would shorten the timeline for construction should such a decision be made in the future.
While we are no longer planning to deploy Phase Four of the EPAA, let me emphasize that the U.S. commitment to the EPAA and NATO missile defense remains, as Secretary Hagel noted, "ironclad." This commitment includes the planned sites in Poland and Romania. Like the Administration, Congress has supported, and continues to support full funding for Phases One through Three.
I also would note that Phases One through Three of the EPAA will continue to provide important contributions to the defense of the United States homeland. For example, the radar deployed in Turkey can provide important early tracking data on any Iranian missile launches against the United States. The interceptor sites in Romania and Poland, as well as BMD-capable ships at sea, will also be key to protecting U.S. deployed forces and assets in Europe.
Before I move on to our ongoing discussions with the Russian Federation, let me note that the U.S. Government remains committed to our "fly-before-you-buy" policy. This means that we require that missile defense systems demonstrate their effectiveness through intercept flight testing. Specifically, proving the operational capability of the latest model of the GBI kill vehicle is one of our top priorities.
As you can see, we’ve made significant adjustments to U.S. plans for the global ballistic missile defense system going forward. These changes will allow us to achieve better defense of the United States and achieve it sooner.
Cooperation with the Russian Federation
At the same time we are developing a NATO missile defense capability, we also seek to work cooperatively with Russia. We remain convinced that missile defense cooperation between the United States and Russia (and between NATO and Russia) is in the national security interests of all countries involved. For that reason, missile defense cooperation with Russia remains a Presidential priority for this Administration, as it has been for nearly 20 years under both Democratic and Republican administrations.
As such, the United States is continuing discussions with the Russian Federation on missile defense cooperation. Secretary of Defense Hagel and Russian Defense Minister Shoygu agreed in March to reconvene missile defense discussions between Under Secretary of Defense Jim Miller and Deputy Defense Minister Antonov. My boss, Acting Under Secretary Rose Gottemoeller, was in Moscow a few weeks ago continuing discussions with her Russian Ministry of Foreign Affairs counterpart on missile defense cooperation, among other issues.
We believe that through cooperation, Russia will see firsthand that this system is designed to respond to ballistic missile threats from outside the Euro-Atlantic area, and that NATO missile defense systems will not undermine Russia’s strategic nuclear deterrent.
Furthermore, in Chicago last year, the NATO Allies made a very clear statement of our intent regarding strategic stability and Russia’s strategic deterrent. The Chicago Summit Declaration made clear that "…the NATO missile defense in Europe will not undermine strategic stability. NATO missile defense is not directed against Russia and will not undermine Russia’s strategic deterrence capabilities."
While we seek to develop ways to cooperate with Russia on missile defense, it is important to remember that in keeping with its collective security obligations, NATO alone bears responsibility for defending the Alliance from ballistic missile threats. This is why the United States and NATO cannot agree to Russian proposals for "sectoral" or "joint" missile defense architectures. Just as Russia must ensure the defense of Russian territory, NATO must ensure the defense of NATO territory. NATO cannot and will not outsource its Article 5 commitments.
Russia continues to request legal guarantees that could create limitations on our ability to develop and deploy future missile defense systems against regional ballistic missile threats such as those presented by Iran and North Korea. We have made clear that we cannot and will not accept limitations on our ability to defend ourselves, our allies, and our partners, including where we deploy our BMD-capable Aegis ships. As Secretary Hagel’s March decision makes clear, the United States must have the flexibility, without legal limitations, to respond to evolving missile threats from states like Iran and North Korea.
Conclusion
Let me conclude by noting that we are proud of how much we have already achieved thus far with our partners. Yet, there is still much to do. By working with our allies and partners to counter the threat from ballistic missiles, we look forward to achieving higher levels of BMD cooperation and effectiveness both in Europe and around the world.
Thanks very much, and I look forward to your questions.
U.S.-TAJIK NONPROLIFERATION COOPERATION
FROM: U.S. STATE DEPARTMENT
U.S.-Tajik Nonproliferation Cooperation
Remarks
Simon Limage
Deputy Assistant Secretary for Nonproliferation Programs, Bureau of International Security and Nonproliferation
Dushanbe, Tajikistan
June 25, 2013
(As Prepared)
Thank you for the kind introduction and warm and generous welcome. The Academy of Sciences has a rich tradition of bringing together some of the greatest minds to address the day’s most pressing security issues. In keeping with that tradition, it’s a real honor and privilege for me to talk with you today about one of the greatest challenges facing all of us: the proliferation of weapons of mass destruction.
In his annual State of the Union Address this February, President Obama proclaimed, "America will continue to lead the effort to prevent the spread of the world’s most dangerous weapons." Underscoring this pledge the President charted out a course for all of us stating, "We simply cannot allow the 21st century to be darkened by the worst weapons of the 20th century."
In Berlin, President Obama laid out a clear path to achieving this by signaling that he intends to negotiate cuts with Russia to move beyond Cold War nuclear postures while reducing U.S. deployed strategic nuclear weapons by up to one-third. His vision is a world in which "peace with justice means pursuing the security of a world without nuclear weapons."
In line with the president’s call for action, and also to turn the page on the legacy of the Cold War, we have already taken concrete steps to develop a new bilateral framework with Russia to build on past accomplishments and reinforce our nonproliferation partnership on nuclear security. The Nunn-Lugar Cooperative Threat Reduction (CTR) program has advanced the United States’ and Russia’s mutual interest in preventing the spread of weapons of mass destruction (WMD). Under the CTR program, the United States and Russia have successfully partnered to implement security upgrades at Russia’s nuclear weapons storage sites, deactivate more than 7,500 nuclear warheads, destroy chemical weapons, and improve security for fissile material. The newly agreed upon framework, known as the Framework Agreement on the Multilateral Nuclear Environmental Programme in the Russian Federation (MNEPR), will permit cooperative nuclear activities on areas such as nuclear material physical protection, control, accounting, consolidation of highly enriched uranium (HEU), converting HEU-fuel reactors to operate with LEU fuel.
Part and parcel to this historic transition currently underway is the status and future of the International Science and Technology Center (ISTC). We appreciate the major role Tajikistan has played in supporting the vibrancy of the Center’s activities in Central Asia. And we appreciate Tajikistan’s demonstrated leadership in offering sound advice in how best to structurally transform it as an effective nonproliferation platform. The ISTC was established as an international, intergovernmental organization, under the CTR program, to provide former Soviet Union (FSU) weapons scientists and engineers opportunities to use their talents for peaceful, civilian activities. In the course of two decades, the ISTC has accomplished much of what it set out to do in Russia, and the world is a safer place because of it. While the pending Russian and Canadian withdrawal is indeed unfortunate, these actions do not obviate the need for a Center.
The proliferation of expertise in nuclear, chemical, biological, missile, and advanced weaponry fields has expanded geographically , and this proliferation has become more complex. Both state and non-state actors are looking worldwide to exploit the specialized knowledge of scientists, engineers, and technicians, to aid in the acquisition and development of weapons capabilities. The ISTC remains one of the most important means for applying multilateral scientific and technical cooperation to address security concerns, and provides a multilateral nexus for cooperation within the region and potentially beyond.
Moving forward, the non-Russian parties have confirmed their intent to see the ISTC continue after the Russian Federation’s withdrawal by standing up an office in Almaty, Kazakhstan. On January 3, 2013, Kazakhstan Deputy Prime Minister Orybayev provided an official invitation to begin the process of establishing a new headquarters in the Republic of Kazakhstan. Beyond this, a newly negotiated multilateral ISTC Agreement will expand scientist engagement beyond the traditional redirection of former weapon scientists to include engagement of all scientists and engineers with "weapon applicable" or "dual-use" knowledge and expertise. In particular this will help the new generation of younger scientists.
Aside from our close collaboration on the ISTC, Tajikistan has proven an invaluable partner in its efforts to secure its borders from the illicit flow of WMD materials by strengthening both its infrastructure to detect and its capacity to enforce. We remain concerned that nuclear materials may remain available on the black market and could potentially fall into terrorist hands. Therefore, we applaud Tajikistan’s work to improve its counter nuclear smuggling capabilities, including by implementing steps identified in the Joint Action Plan to Counter Nuclear Smuggling that our governments signed in November 2011.
To augment these efforts, I’m proud to say the joint efforts of the Export Control and Related Border Security (EXBS) program and Tajik Customs are in the final phase of establishing a practical exercise training area at the Customs facility. Once completed, the facility will allow Tajik Customs to train on the full spectrum of customs-related inspection and detection scenarios, including with the use of radiation detection equipment. In addition, EXBS has completed two major enforcement-related projects over the past two years. First, it has completed the Calibration Lab, done in collaboration with the IAEA. Second, it donated forty all terrain vehicles (ATVs) to the Tajik Border Guards. All of this bodes well for our future cooperation on these issues and I’m confident that as Tajikistan reviews draft legislation on a new legal framework for trade controls, licensing practices, and procedures, Tajikistan will adopt the legislation. This will pave the way for Tajikistan to become a Central Asian leader in bringing its strategic trade controls closer to international standards.
Our president has been steadfast in his commitment to eliminate the global threat of nuclear weapons. He has articulated a concrete path forward to achieve this. Although there is still much work to be done, I’m confident this can be accomplished over time. Our U.S.-Tajik bilateral nonproliferation partnership will continue to play a critical role in transforming Central Asian into a region as that mitigates these particular security threats. The United States appreciates Tajikistan’s continued support on these key issues and we look forward to our two countries’ future collaboration. Thank you. I look forward to your questions.
U.S.-Tajik Nonproliferation Cooperation
Remarks
Simon Limage
Deputy Assistant Secretary for Nonproliferation Programs, Bureau of International Security and Nonproliferation
Dushanbe, Tajikistan
June 25, 2013
(As Prepared)
Thank you for the kind introduction and warm and generous welcome. The Academy of Sciences has a rich tradition of bringing together some of the greatest minds to address the day’s most pressing security issues. In keeping with that tradition, it’s a real honor and privilege for me to talk with you today about one of the greatest challenges facing all of us: the proliferation of weapons of mass destruction.
In his annual State of the Union Address this February, President Obama proclaimed, "America will continue to lead the effort to prevent the spread of the world’s most dangerous weapons." Underscoring this pledge the President charted out a course for all of us stating, "We simply cannot allow the 21st century to be darkened by the worst weapons of the 20th century."
In Berlin, President Obama laid out a clear path to achieving this by signaling that he intends to negotiate cuts with Russia to move beyond Cold War nuclear postures while reducing U.S. deployed strategic nuclear weapons by up to one-third. His vision is a world in which "peace with justice means pursuing the security of a world without nuclear weapons."
In line with the president’s call for action, and also to turn the page on the legacy of the Cold War, we have already taken concrete steps to develop a new bilateral framework with Russia to build on past accomplishments and reinforce our nonproliferation partnership on nuclear security. The Nunn-Lugar Cooperative Threat Reduction (CTR) program has advanced the United States’ and Russia’s mutual interest in preventing the spread of weapons of mass destruction (WMD). Under the CTR program, the United States and Russia have successfully partnered to implement security upgrades at Russia’s nuclear weapons storage sites, deactivate more than 7,500 nuclear warheads, destroy chemical weapons, and improve security for fissile material. The newly agreed upon framework, known as the Framework Agreement on the Multilateral Nuclear Environmental Programme in the Russian Federation (MNEPR), will permit cooperative nuclear activities on areas such as nuclear material physical protection, control, accounting, consolidation of highly enriched uranium (HEU), converting HEU-fuel reactors to operate with LEU fuel.
Part and parcel to this historic transition currently underway is the status and future of the International Science and Technology Center (ISTC). We appreciate the major role Tajikistan has played in supporting the vibrancy of the Center’s activities in Central Asia. And we appreciate Tajikistan’s demonstrated leadership in offering sound advice in how best to structurally transform it as an effective nonproliferation platform. The ISTC was established as an international, intergovernmental organization, under the CTR program, to provide former Soviet Union (FSU) weapons scientists and engineers opportunities to use their talents for peaceful, civilian activities. In the course of two decades, the ISTC has accomplished much of what it set out to do in Russia, and the world is a safer place because of it. While the pending Russian and Canadian withdrawal is indeed unfortunate, these actions do not obviate the need for a Center.
The proliferation of expertise in nuclear, chemical, biological, missile, and advanced weaponry fields has expanded geographically , and this proliferation has become more complex. Both state and non-state actors are looking worldwide to exploit the specialized knowledge of scientists, engineers, and technicians, to aid in the acquisition and development of weapons capabilities. The ISTC remains one of the most important means for applying multilateral scientific and technical cooperation to address security concerns, and provides a multilateral nexus for cooperation within the region and potentially beyond.
Moving forward, the non-Russian parties have confirmed their intent to see the ISTC continue after the Russian Federation’s withdrawal by standing up an office in Almaty, Kazakhstan. On January 3, 2013, Kazakhstan Deputy Prime Minister Orybayev provided an official invitation to begin the process of establishing a new headquarters in the Republic of Kazakhstan. Beyond this, a newly negotiated multilateral ISTC Agreement will expand scientist engagement beyond the traditional redirection of former weapon scientists to include engagement of all scientists and engineers with "weapon applicable" or "dual-use" knowledge and expertise. In particular this will help the new generation of younger scientists.
Aside from our close collaboration on the ISTC, Tajikistan has proven an invaluable partner in its efforts to secure its borders from the illicit flow of WMD materials by strengthening both its infrastructure to detect and its capacity to enforce. We remain concerned that nuclear materials may remain available on the black market and could potentially fall into terrorist hands. Therefore, we applaud Tajikistan’s work to improve its counter nuclear smuggling capabilities, including by implementing steps identified in the Joint Action Plan to Counter Nuclear Smuggling that our governments signed in November 2011.
To augment these efforts, I’m proud to say the joint efforts of the Export Control and Related Border Security (EXBS) program and Tajik Customs are in the final phase of establishing a practical exercise training area at the Customs facility. Once completed, the facility will allow Tajik Customs to train on the full spectrum of customs-related inspection and detection scenarios, including with the use of radiation detection equipment. In addition, EXBS has completed two major enforcement-related projects over the past two years. First, it has completed the Calibration Lab, done in collaboration with the IAEA. Second, it donated forty all terrain vehicles (ATVs) to the Tajik Border Guards. All of this bodes well for our future cooperation on these issues and I’m confident that as Tajikistan reviews draft legislation on a new legal framework for trade controls, licensing practices, and procedures, Tajikistan will adopt the legislation. This will pave the way for Tajikistan to become a Central Asian leader in bringing its strategic trade controls closer to international standards.
Our president has been steadfast in his commitment to eliminate the global threat of nuclear weapons. He has articulated a concrete path forward to achieve this. Although there is still much work to be done, I’m confident this can be accomplished over time. Our U.S.-Tajik bilateral nonproliferation partnership will continue to play a critical role in transforming Central Asian into a region as that mitigates these particular security threats. The United States appreciates Tajikistan’s continued support on these key issues and we look forward to our two countries’ future collaboration. Thank you. I look forward to your questions.
EDUCATION DEPARTMENT ISSUES PAMPLET ON SUPPORTING PREGNANT AND PARENTING STUDENTS
FROM: U.S. DEPARTMENT OF EDUCATION
Education Department Releases Guidance to Help Schools Better Support Pregnant and Parenting Students' Academic Success
June 25, 2013
U.S. Secretary of Education Arne Duncan announced today that the Department of Education has issued a Dear Colleague letter and accompanying pamphlet on supporting the academic success of pregnant and parenting students under Title IX. This pamphlet updates and expands upon the pamphlet on this topic issued in 1991.
The pamphlet, which was sent to school districts as well as colleges and universities across the country, provides information on school retention problems associated with young mothers and fathers and the requirements related to these issues contained in the Department's regulation implementing Title IX.
"We need to do more to help the hundreds of thousands of students who become mothers and fathers each year graduate from high school ready for college and successful careers," said Secretary Duncan. "We must support pregnant and parenting students so that they can build better lives for themselves and their children."
The pamphlet is aimed at secondary school administrators, teachers, counselors, parents and students. Although the pamphlet focuses on secondary schools, Title IX prohibits discrimination on the basis of pregnancy and parental status at all education levels, including at postsecondary institutions. The guidance clarifies the specific requirements of Title IX applicable to pregnant and parenting students, noting, among other things, that it is illegal under Title IX for schools to exclude pregnant students from participating in any part of an educational program, including extracurricular activities.
The pamphlet contains information on strategies educators may use and programs schools can develop to address the educational needs of students who become pregnant or have children. It also provides examples of promising practices designed to support pregnant and parenting students that schools may choose to adopt.
"The Office for Civil Rights is committed to working with schools to help them support pregnant and parenting students and ensure that these students are not discriminated against as they strive to stay in school," said Acting Assistant Secretary for Civil Rights Seth Galanter. "By making sure that young parents can fully participate in school, we can encourage them to work toward graduation instead of dropping out of school."
For more information about OCR and the anti-discrimination statutes that it enforces, please visit http://www2.ed.gov/about/offices/list/ocr/aboutocr.html.
Education Department Releases Guidance to Help Schools Better Support Pregnant and Parenting Students' Academic Success
June 25, 2013
U.S. Secretary of Education Arne Duncan announced today that the Department of Education has issued a Dear Colleague letter and accompanying pamphlet on supporting the academic success of pregnant and parenting students under Title IX. This pamphlet updates and expands upon the pamphlet on this topic issued in 1991.
The pamphlet, which was sent to school districts as well as colleges and universities across the country, provides information on school retention problems associated with young mothers and fathers and the requirements related to these issues contained in the Department's regulation implementing Title IX.
"We need to do more to help the hundreds of thousands of students who become mothers and fathers each year graduate from high school ready for college and successful careers," said Secretary Duncan. "We must support pregnant and parenting students so that they can build better lives for themselves and their children."
The pamphlet is aimed at secondary school administrators, teachers, counselors, parents and students. Although the pamphlet focuses on secondary schools, Title IX prohibits discrimination on the basis of pregnancy and parental status at all education levels, including at postsecondary institutions. The guidance clarifies the specific requirements of Title IX applicable to pregnant and parenting students, noting, among other things, that it is illegal under Title IX for schools to exclude pregnant students from participating in any part of an educational program, including extracurricular activities.
The pamphlet contains information on strategies educators may use and programs schools can develop to address the educational needs of students who become pregnant or have children. It also provides examples of promising practices designed to support pregnant and parenting students that schools may choose to adopt.
"The Office for Civil Rights is committed to working with schools to help them support pregnant and parenting students and ensure that these students are not discriminated against as they strive to stay in school," said Acting Assistant Secretary for Civil Rights Seth Galanter. "By making sure that young parents can fully participate in school, we can encourage them to work toward graduation instead of dropping out of school."
For more information about OCR and the anti-discrimination statutes that it enforces, please visit http://www2.ed.gov/about/offices/list/ocr/aboutocr.html.
SECRETARY OF STATE KERRY'S REMARKS AT U.S. EMBASSY IN NEW DELHI, INDIA
FROM: U.S. DEPARTMENT OF STATE
Meeting With Staff and Families at Embassy New Delhi
Remarks
John Kerry
Secretary of State
Embassy New Delhi
New Delhi, India
June 25, 2013
AMBASSADOR POWELL: Mr. Secretary, please. A very big thank you to you. We are delighted that you came. I think yesterday advanced our relationship with India, this very, very key relationship, in very important ways. And I assure you that team India not only has prepared for your visit, but we will prepare for the next one by working on that action plan that you talked about, and we are delighted that we were able to welcome you. We hope the rain will hold off just a little while longer, but I want to say how very, very proud I am of my team, including those who didn’t see mom and dad for a while while we were preparing, and to say, "Please come again, and thank you very much."
SECRETARY KERRY: Thank you so much, Nancy. Thank you very, very much. Thank you. (Applause.) Good to see everybody. Thank you. Thank you very, very much. Thank you all for taking time. I know it’s a trek to get over here to the Embassy, and it’s a little bit difficult and I’m really appreciative of – for all of you struggling to get over here. Does it get a little cooler when the rain comes or not? (Laughter.) I don’t know.
Hi, kids. How are you? You guys look great. Are you awake? (Laughter.) Are you? Come on up here. Come up here with me. I want all the kids to come up here. Come on guys. Come on. Come on up here. Because you guys are what this is all about. How are you doing, buddy? Are you doing all right? That a boy. (Laughter.) Come on up here, kids. Come on. Let’s just make a big crowd up here. You guys will make me look good. I can hide behind you. (Laughter.) Actually, I better get out of here so I can talk.
Anyway. How are you all? Are you guys having fun? Is this the – who’s first time trip to another country? Anybody here? So all of you have been somewhere else? This is your first time, right?
PARTICIPANT: Mm-hmm, yes.
SECRETARY KERRY: Where are you from?
PARTICIPANT: America. (Laughter and applause.)
SECRETARY KERRY: Okay. Where are you from?
PARTICIPANT: America and Thailand.
SECRETARY KERRY: America and China. That’s fantastic.
PARTICIPANT: Thailand.
SECRETARY KERRY: Oh, Thailand. I’m sorry. (Laughter.) Thailand. Okay. Gosh, shame on me. And how about you? Have you been to other countries, too?
PARTICIPANT: Five.
SECRETARY KERRY: Five countries. Wow.
PARTICIPANT: Including the U.S. (Laughter.)
SECRETARY KERRY: Including the U.S. Hey, all right. Well, I’m glad you’re including the U.S. That’s great. And who – how old are you?
PARTICIPANT: I’m 14.
SECRETARY KERRY: Fourteen.
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: Thirteen?
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: Eleven – twelve. (Laughter.) Well, did you just turn 12 today? (Laughter.) Okay. It’s hard to remember sometimes.
I was exactly his age when I went away as the son of a Foreign Service officer. And I went to Berlin, Germany, after the war in the – I’m going to date myself, now, guys. This was in the 1950s, and it was at the height of the Cold War, obviously. But it was really, really interesting. So you guys are going to have the experience of a lifetime and you’re going to have advantages over everybody else, because you’re going to know other countries and some languages and have a lot of fun, too, right? Right? Yeah. (Laughter.) Okay. Anyway.
Well, I want to thank everybody very, very, very much. It’s a privilege for me to be here at Embassy Delhi, and – no, stay up here guys. You can stay up here. Don’t go away. (Laughter.) Where you going? You got somewhere to go? (Laughter.)
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: What did he say?
PARTICIPANT: Because they said so.
SECRETARY KERRY: Oh, they said so. No, no. That’s just the Ambassador. Don’t worry about her. (Laughter.) Ambassador. I want to thank – Ambassador Powell is one of our great professionals, and you all are very, very lucky to have her. She’s been in so many countries – Ghana and Africa and various places – Pakistan. We are very, very honored to have her expertise here in helping to build a relationship that is so important. And that goes for every single one of you. This is one of our largest embassies in the world, as all of you know. We have about 254 folks who are what we’d call direct hires, and a whole bunch of families over here, and about a thousand-plus local hires – and I see some of them here – (baby crying) – and I want to thank you because it’s time to eat over here. (Laughter.) He just wants to be part of the deal.
I really want to thank all of you who are from India or are from a third country because there’s no way possible for us to do what we try to do to build relationships with the people of your country without your help. And so everything that you do is so critical for us, and everybody, including those of you who are Indian or from another country, you’re kind of adopted in a way in terms of your responsibilities because you become ambassadors for us. And because you work with us and you work in this effort to try to build a relationship, every time somebody meets you they get a sense of you and they get a sense of us through you. And that goes, obviously, for every one of you who’s American, who is part of the Embassy – thank you on behalf of President Obama and your country.
This – India – I started coming here about 20 years ago – a little bit more actually – and I’ve always believed that the relationship with India is potentially down the – as we build it – literally one of the most important that we’re going to have on this planet. The reason for that is because this country is so teeming with energy and with innovation and a kind of excitement. There’s a freedom to talk about everything and anything. They love to debate, as you know. There’s a huge sort of confrontation with ideas, and yet there’s a huge diversity, this incredible diversity and pluralism that gets along. It works it. Not always; sometimes there are tensions. But there are tensions everywhere, including in the United States.
But fundamentally, this is a democracy, largest in the world, extraordinary place that is so important to everything that happens to the west of here, all the way to the Caspian Sea, what happens with Afghanistan, its relationship with Iran; all the way to the east, to China, to Japan, to the Asia Pacific. So its size of its economy, its values, and its aspirations and the energy of the people make India a vital partner to everything that the United States is fighting for and stands for.
So I just want to thank you, all of you, for everything that you do to do this sometimes lonely work, sometimes difficult – often difficult work as you carry the values of our country and try to build a relationship that makes a difference. What we’re working for is peace and stability and friendship and opportunity and a chance for people to live their dreams and reach their aspirations and share in the freedom that we have been blessed with ever since our founding fathers fought for it for our own independence.
So our journey should connect to people, and we need to do more. That’s part of our mission, to make sure that every moment that it does connect for all the right reasons. So I want to have a chance to say hello to everybody and relieve these moms from the burden of keeping their kids quiet – (laughter) – and take a moment here to say hi. And I just want to thank you all for coming out here. I want to thank you for what you do, and I look forward to having a chance to say hello and meet you. And I understand there’s a tradition that when I get out of town there’s a wheels-up party. (Laughter.) Okay, you guys have a good time. I’ll be going to work. But anyway, thank you all very, very, very much. Great to be with you. Thank you. (Applause.)
Meeting With Staff and Families at Embassy New Delhi
Remarks
John Kerry
Secretary of State
Embassy New Delhi
New Delhi, India
June 25, 2013
AMBASSADOR POWELL: Mr. Secretary, please. A very big thank you to you. We are delighted that you came. I think yesterday advanced our relationship with India, this very, very key relationship, in very important ways. And I assure you that team India not only has prepared for your visit, but we will prepare for the next one by working on that action plan that you talked about, and we are delighted that we were able to welcome you. We hope the rain will hold off just a little while longer, but I want to say how very, very proud I am of my team, including those who didn’t see mom and dad for a while while we were preparing, and to say, "Please come again, and thank you very much."
SECRETARY KERRY: Thank you so much, Nancy. Thank you very, very much. Thank you. (Applause.) Good to see everybody. Thank you. Thank you very, very much. Thank you all for taking time. I know it’s a trek to get over here to the Embassy, and it’s a little bit difficult and I’m really appreciative of – for all of you struggling to get over here. Does it get a little cooler when the rain comes or not? (Laughter.) I don’t know.
Hi, kids. How are you? You guys look great. Are you awake? (Laughter.) Are you? Come on up here. Come up here with me. I want all the kids to come up here. Come on guys. Come on. Come on up here. Because you guys are what this is all about. How are you doing, buddy? Are you doing all right? That a boy. (Laughter.) Come on up here, kids. Come on. Let’s just make a big crowd up here. You guys will make me look good. I can hide behind you. (Laughter.) Actually, I better get out of here so I can talk.
Anyway. How are you all? Are you guys having fun? Is this the – who’s first time trip to another country? Anybody here? So all of you have been somewhere else? This is your first time, right?
PARTICIPANT: Mm-hmm, yes.
SECRETARY KERRY: Where are you from?
PARTICIPANT: America. (Laughter and applause.)
SECRETARY KERRY: Okay. Where are you from?
PARTICIPANT: America and Thailand.
SECRETARY KERRY: America and China. That’s fantastic.
PARTICIPANT: Thailand.
SECRETARY KERRY: Oh, Thailand. I’m sorry. (Laughter.) Thailand. Okay. Gosh, shame on me. And how about you? Have you been to other countries, too?
PARTICIPANT: Five.
SECRETARY KERRY: Five countries. Wow.
PARTICIPANT: Including the U.S. (Laughter.)
SECRETARY KERRY: Including the U.S. Hey, all right. Well, I’m glad you’re including the U.S. That’s great. And who – how old are you?
PARTICIPANT: I’m 14.
SECRETARY KERRY: Fourteen.
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: Thirteen?
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: Eleven – twelve. (Laughter.) Well, did you just turn 12 today? (Laughter.) Okay. It’s hard to remember sometimes.
I was exactly his age when I went away as the son of a Foreign Service officer. And I went to Berlin, Germany, after the war in the – I’m going to date myself, now, guys. This was in the 1950s, and it was at the height of the Cold War, obviously. But it was really, really interesting. So you guys are going to have the experience of a lifetime and you’re going to have advantages over everybody else, because you’re going to know other countries and some languages and have a lot of fun, too, right? Right? Yeah. (Laughter.) Okay. Anyway.
Well, I want to thank everybody very, very, very much. It’s a privilege for me to be here at Embassy Delhi, and – no, stay up here guys. You can stay up here. Don’t go away. (Laughter.) Where you going? You got somewhere to go? (Laughter.)
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: What did he say?
PARTICIPANT: Because they said so.
SECRETARY KERRY: Oh, they said so. No, no. That’s just the Ambassador. Don’t worry about her. (Laughter.) Ambassador. I want to thank – Ambassador Powell is one of our great professionals, and you all are very, very lucky to have her. She’s been in so many countries – Ghana and Africa and various places – Pakistan. We are very, very honored to have her expertise here in helping to build a relationship that is so important. And that goes for every single one of you. This is one of our largest embassies in the world, as all of you know. We have about 254 folks who are what we’d call direct hires, and a whole bunch of families over here, and about a thousand-plus local hires – and I see some of them here – (baby crying) – and I want to thank you because it’s time to eat over here. (Laughter.) He just wants to be part of the deal.
I really want to thank all of you who are from India or are from a third country because there’s no way possible for us to do what we try to do to build relationships with the people of your country without your help. And so everything that you do is so critical for us, and everybody, including those of you who are Indian or from another country, you’re kind of adopted in a way in terms of your responsibilities because you become ambassadors for us. And because you work with us and you work in this effort to try to build a relationship, every time somebody meets you they get a sense of you and they get a sense of us through you. And that goes, obviously, for every one of you who’s American, who is part of the Embassy – thank you on behalf of President Obama and your country.
This – India – I started coming here about 20 years ago – a little bit more actually – and I’ve always believed that the relationship with India is potentially down the – as we build it – literally one of the most important that we’re going to have on this planet. The reason for that is because this country is so teeming with energy and with innovation and a kind of excitement. There’s a freedom to talk about everything and anything. They love to debate, as you know. There’s a huge sort of confrontation with ideas, and yet there’s a huge diversity, this incredible diversity and pluralism that gets along. It works it. Not always; sometimes there are tensions. But there are tensions everywhere, including in the United States.
But fundamentally, this is a democracy, largest in the world, extraordinary place that is so important to everything that happens to the west of here, all the way to the Caspian Sea, what happens with Afghanistan, its relationship with Iran; all the way to the east, to China, to Japan, to the Asia Pacific. So its size of its economy, its values, and its aspirations and the energy of the people make India a vital partner to everything that the United States is fighting for and stands for.
So I just want to thank you, all of you, for everything that you do to do this sometimes lonely work, sometimes difficult – often difficult work as you carry the values of our country and try to build a relationship that makes a difference. What we’re working for is peace and stability and friendship and opportunity and a chance for people to live their dreams and reach their aspirations and share in the freedom that we have been blessed with ever since our founding fathers fought for it for our own independence.
So our journey should connect to people, and we need to do more. That’s part of our mission, to make sure that every moment that it does connect for all the right reasons. So I want to have a chance to say hello to everybody and relieve these moms from the burden of keeping their kids quiet – (laughter) – and take a moment here to say hi. And I just want to thank you all for coming out here. I want to thank you for what you do, and I look forward to having a chance to say hello and meet you. And I understand there’s a tradition that when I get out of town there’s a wheels-up party. (Laughter.) Okay, you guys have a good time. I’ll be going to work. But anyway, thank you all very, very, very much. Great to be with you. Thank you. (Applause.)
REMARKS BY SECRETARY OF STATE KERRY AND SUADI FOREIGN MINISTER PRINCE SAUD AL-FAISAL
FROM: U.S. STATE DEPARTMENT
Remarks With Saudi Foreign Minister Prince Saud al-Faisal After Their Meeting
Remarks
John Kerry
Secretary of State
Jeddah, Saudi Arabia
June 25, 2013
FOREIGN MINISTER SAUD: (Via interpreter) I would like to welcome His Excellency Mr. John Kerry, the U.S. Secretary of State, and his accompanying delegation to the Kingdom of Saudi Arabia. This, his third visit to the region, only asserts his personal concern with the region’s issues and the interests of the United States and those of its friends.
Secretary Kerry and I had a fruitful, constructive discussion today, just like we do in all of our transparent, open-minded meetings. We reviewed many regional and international issues, on top of which is the crisis in Syria and the developments on the Syrian, regional, and international arenas.
Perhaps the most ominous of these developments is the involvement of foreign forces, foremost of which is the motions of Hezbollah and others with support from Iran’s national guard in the mass murder of Syrians with unlimited military support from Russia. This critical turn of events cannot possibly be overlooked. Over and above the regime’s genocide against its own people, this adds an even deadlier element in the form of an all-out foreign invasion that breaks every international law, protocol, and principle. This violates the Syrian land and turns it into a battleground for global and regional conflicts and puts it under the mercy of sectarian struggles. Syria now can only be considered an occupied land. This requires a firm stand and speedy action from the international community. There no longer is rhyme or reason to let Russia’s open and fervent weaponization of the Syrian regime and the hordes of foreign forces backing it to go on unabated.
In the meantime, we are still failing to secure international protection for the Syrian people, or at least provide some sort of military assistance to help it defend itself against these abhorrent crimes being committed against it with nary an excuse. In this regard, the Kingdom demands a clear, unequivocal, international resolution that bans any sort of weaponry support for the Syrian regime, and declares null and void the legitimacy of that regime, which it had lost on day one of this crisis when it denied the simplest, most basic demands of its people, and waged a genocidal war against it instead. It lost its membership in both the Arab League and the Islamic Cooperation Organization, and the Gulf Cooperation Council had already reiterated its illegitimacy, a fact that has been further reaffirmed by the Friends of Syria meetings.
The regime’s illegitimacy eliminates any possibility of it being part of any arrangements or playing any role whatsoever in shaping the present and future of Syria, taking into consideration that the Syrian National Coalition now has the recognition of the international community as the sole representative of the Syrian people in its political and ethnic entirety. The Coalition is now ready to commence with the transitional ruling body with full-fledged authorities away from the pillars of the Syria regime and its cohorts who have blood on their hands.
At the same time, the Kingdom affirms the necessity of changing the balance of powers on the ground in favor of the Free Syrian people. This is the only way to bolster the chances of a peaceful solution, one that we will all seek at the upcoming Geneva 2 convention. I would like to commend the U.S. decision to send military aid to the Free Syrian Army, and express my relief for what I heard today from the U.S. Secretary of State concerning both changing the military balance of powers on the ground and maintaining the legitimacy of the Syrian National Coalition as the sole representative of the Syrian people.
I shouldn’t forget to underline the European Union’s resolution to lift the ban on arming the Syrian opposition. I call upon the EU to immediately put the resolution into action to counter the serious current developments on the Syrian ground.
We also reviewed the Palestinian-Israeli conflict and the ongoing efforts to revive the peace process and the negotiations between the two sides. The Kingdom sees it vital that these efforts focus on resolving the conflict’s major issues after all else had failed at achieving any progress. All previous efforts had been dealing with the ramifications rather than the causes. Therefore there should be consensus towards a solution that is based on international resolutions and principles, agreements and understandings already signed, and the Arab Peace Initiative, so as to reach the goal of a sustainable, independent, and a contiguous Palestinian state.
I would like to thank the Secretary for his efforts in resolving this conflict, and we appreciate his efforts. Now I’d like to thank you all. The Secretary has the floor.
SECRETARY KERRY: Thank you, Your Royal Highness. Assalamu alaikum. It’s a privilege for me to be here again back in Saudi Arabia, and I’m happy to be in this very beautiful city, which is a great hub of innovation and a great history and the crossroads, obviously, for all the pilgrimage to Mecca, and important to the Kingdom. I’m particularly grateful to my friend, Prince Saud al-Faisal, for his welcome here. Always a great welcome and always a very enjoyable and frank conversation, and I respect and appreciate that.
As I think everybody knows, Saudi Arabia is one of our closest partners, and we are grateful for that. We work together on a host of key issues in the region, including the most important one of protecting stability for all of the countries in the region. And the relationship between the United States and Saudi Arabia is critical, I think, to both of our countries.
So, first, I thank Saudi Arabia for its very important leadership and work within the Arab League and, in fact, internationally with the critical and sometimes not properly recognized initiative of His Majesty King Abdullah with the Arab Peace Initiative. This is a most important initiative. And while not everybody agrees with every portion of it, it is an effort, literally, to bring about peace, an offer of a future in which there is a normal set of relationships with real peace, with diplomatic recognition, commerce, trade, all that comes with that peace. And I think that the Arab League’s mission to Washington some weeks ago was an important step forward in helping to lay the groundwork for the possibility of peace between Israelis and Palestinians.
We believe, President Obama believes, that those negotiations should start as soon as is possible, and hopefully that they should conclude with two states living side by side in peace and security. And he has sent me out here to this region on a number of different occasions now in order to work with both the Israelis and the Palestinians, but also with the neighbors, in order to try to bring about the conditions for negotiations to take place, and ultimately notwithstanding all of the turmoil, notwithstanding all of the conflict, notwithstanding all of the counter-indications, to be able to bring about peace.
We need to be able to do that. And we share a belief with Saudi Arabia and many countries that these next weeks are perhaps – or at least this next period of time is an important period of time where decisions could be made that could affect this region for years to come.
We also discussed, as His Royal Highness has said, the crisis of Syria. I join His Royal Highness in making clear that this is a crisis that has been made worse, a situation that’s been made far more difficult and complicated by Assad’s invitation to Iran and to Hezbollah, Iran’s surrogate, to cross lines – international lines – and to become engaged on the ground in Syria. It is the Assad regime that has internationalized the violence on the ground in the worst of ways. And I would remind people, as I think His Royal Highness has and would join me, that peaceful demonstrations that asked for small amounts of reform were met with violence in the very beginning, and it is that violence that has grown, and now, because of the Assad regime’s decision, been internationalized.
I expressed our appreciation for Saudi Arabia’s leadership within the region, within the Arab League, in efforts to try to help us to find a political solution. We believe that the best solution is a political solution in which the people of Syria have an opportunity to be able to make a choice about their future. And we believe that every minority can be respected, that there could be diversity and pluralism, and that people could do so in a climate of peace in the absence of oppression and violence or the involvement of foreign fighters, providing the Assad regime is prepared to live by the framework that was created in the Geneva communique for a transition government with full executive powers chosen by mutual consent of all the parties, which really has the best chance of bringing about peace in Syria. We continue to believe, as His Royal Highness referred to, that the Geneva 2 offers the best opportunity to be able to try to bring that about.
And as countries like the United States and Saudi Arabia aid the opposition, we do so with the belief that it is done in the effort to try to bring people to the decision to go to Geneva and respect the Geneva 1 communique. Earlier this week, we agreed in Doha to do more to aid the opposition in order to help bring that about. And the President of the United States has made the decision to do more, and today I came here to talk with His Royal Highness the Foreign Minister in order to understand better what Saudi Arabia will be doing, what the countries in the region will be doing, and how we can coordinate those efforts in the best way to bring about the solution that we all hope for.
Finally, let me commend Saudi Arabia and the Gulf Cooperation Council for their support of President Hadi and the people of Yemen in their ongoing national dialogue and their broader transition process. This is critical to the future of Yemen, to the future of the region, and we agreed that there are ways that we can cooperate further on that, and we will.
All of these concerns and everything that we discussed today, frankly, has global consequences. And that is why our partnership, the partnership between the United States and the Kingdom of Saudi Arabia, is so essential. So I thank His Majesty, King Abdullah, and the I thank the Foreign Minister, my friend, Prince Saud al-Faisal for his welcome today, and I thank him most importantly for the serious purpose and serious discussion that he is engaged in and for the cooperation that we are both engaged in, in order to bring about peace and stability to this region.
Thank you, Your Royal Highness.
FOREIGN MINISTER SAUD: (Via interpreter) Thank you, Mr. Secretary, and before I close, I would like to congratulate Prince Tamim bin Hamad bin Khalifa Al Thani, the new prince of – the Emir of Qatar. And I would like to appreciate his father, Prince Hamad, for his efforts in developing Yemen and bolstering the relations between our two countries and our two peoples and his work on the issues of the region. And we pray for Qatar’s prosperity and advancement.
We will take your questions now.
MS. PSAKI: The U.S. question will be from Margaret Brennan of CBS News.
QUESTION: Margaret Brennan from CBS. Your Royal Highness, a lot has changed in terms of (inaudible) providing (inaudible). When will we see it make a difference on the ground? And (inaudible) that difference without outside military intervention? And Secretary Kerry, if you could explain more on how the U.S. is helping to coordinate on (inaudible) demonstration (inaudible). (Inaudible) Sergey Lavrov just said that (inaudible).
FOREIGN MINISTER SAUD: (Inaudible) and the corollary to that is (inaudible) a massive flow of money, of weapons to aid and abet (inaudible) genocide. This must end. And Saudi Arabia is not a country that interferes in internal affairs of countries. But an invaded country, where genocide is being perpetrated, is not a normal situation. And I can say with all clarity that we will help the Syrian people defend themselves. We will take our means we have – we are a small country. The aid we can provide is proportionate to our capabilities. But we will not stop helping them in the most effective way that we can, according to that capability.
SECRETARY KERRY: Well, with respect to the (inaudible) technicalities of one particular type of aid versus another, or logistics, but it is obvious from the London 11 meeting that we had the other day, as well as from this meeting, that we are trying to coordinate. We’re trying to understand as well as possible what each nation is doing today, what they’re prepared to do, and obviously, how we can work in a way that isn’t at cross-purposes. We need to be coordinated. So that coordination effort was a subject of discussion today. And I think that given the fact that the President made the decision to provide additional assistance, we want to make sure that that’s being done in the most effective way possible.
We also wanted to – I wanted to hear from His Royal Highness the views of Saudi Arabia with respect to the strategy going forward, and larger concerns: What are the implications of Iran and Hezbollah, a terrorist organization, being involved across international lines in another country, in effect managing a war for that country? What are the impacts on our friends who are neighbors, on Jordan, on Israel, on Lebanon, on Turkey? These are all important considerations, and sometimes one needs to sit face to face in order to have an opportunity to be able to better understand our friends’ thinking on these issues. And that’s exactly what we did.
With respect to Egypt and the demonstrations, first of all, demonstrations are a very legitimate form of expression for citizens in any country. And it’s imperative, we hope, that those demonstrations will be peaceful, that the government would respect them, and that the people will respect their fellow citizens. So that is an important principle on which to begin, but obviously Egypt is going through a very difficult period. We have made many recommendations to our friends in Egypt. We are trying to help, as other countries are trying to help, to create a place for the opposition to be part of the political process in order to create some economic reforms that will help attract business and capital and begin to move their economy. And I think it’s up to the citizens of Egypt to make decisions as to whether or not they feel that all of those kinds of reforms and initiatives are taking place in a way that meets their needs.
That’s not our – that’s – we’re not involved in that. That’s their choice. This demonstration is spontaneous and comes from the Egyptian people. We hope that it will bring the government ultimately to a place where the reforms are effected and choices that need to be made about the economy are implemented. And we will obviously hope that it will not produce violence and be a moment of catalyzing, positive change for Egypt itself.
With respect to the comments – with respect to Mr. Snowden’s situation and the comments, I haven’t read the comments. I understand from – indirectly that it was a strong statement by the Foreign Minister. But I would simply appeal for calm and reasonableness in a moment where we don’t need to raise the level of confrontation over something as, frankly, basic and normal as this.
It is accurate that there is not an extradition treaty between Russia and the United States, so if you want to be technical, certainly there is no extradition treaty. But there are standards of behavior between sovereign nations. There are – there is common law. There is respect for rule of law. And we would simply call on our friends in Russia to respect the fact that a partner nation, a co-member of the Permanent Five of the United Nations has made a normal request under legal systems for law to be upheld.
And we would hope that as a nation, as a sovereign nation, Russia would not see its interests in siding with a person who is accused of breaking the law in another nation and who is a fugitive from justice according to international standards of law. So we simply call on them to – they don’t have to enforce the law, but they certainly can allow him to be subject to the laws of our land and our Constitution, which he is a citizen of. And that’s what we call on them to do.
We’re not looking for a confrontation. We’re not ordering anybody. We’re simply requesting, under a very normal procedure, for the transfer of somebody, just as we transferred to Russia seven people in the last two years that they requested that we did without any clamor, without any rancor, without any argument, and according to our sense of the appropriateness of meeting their request. And that’s what we would hope they would reciprocate with here today.
QUESTION: I have two questions. One is for Mr. Secretary and the other one for His Royal Highness. Mr. Secretary, I believe that there is a tremendous concern in the West and United States about – there was tremendous concern to arm the Syrian Free Army (inaudible) those are in relation to (inaudible). I believe that this concern has resulted in making Hezbollah and Iran more strong in the theater of operation in Syria. Now with the decision of the American Administration to arm the Free Syrian Army, I mean, are you going to arm them with the heavy weapons that could topple the regime or just to make the advance of power on the ground?
(Via translation.) Supporting the Syrian – the Syrian Free Army with (inaudible.)
SECRETARY KERRY: Well, let me just say very directly we never discussed the details of whatever class of weapons we might or might not be providing to anybody. That is not a matter of public discussion. And I think our goal, as I stated, is very clear. We do not want this to be a wider war. We do not want (inaudible) contribute to more bloodshed and a prolongation of the agony of the people of Syria. So our hope is to be able to speedily move to a place where the killing can end and the people of Syria will have a chance to choose their future. We believe that best is provided for through the Geneva process.
But we will continue to provide assistance to the Syrian military coalition and to the Syrian opposition in the interim and because we do not believe that it is appropriate for the Assad regime to have invited the Iranians and Hezbollah to cross international lines and to have their fighters on the ground. There are no United States fighters, there are no Saudi fighters, there are no Qatari fighters on the ground. The opposition was fighting. It is Assad who has grown this in its significance and global implications. And needless to say, we are responding appropriately and we will continue to respond appropriately as the President has said.
FOREIGN MINISTER SAUD: (Via interpreter.) The Kingdom’s aid to Syria – just like I said earlier, Syria is facing two things: genocide, unprecedented genocide in this region and a foreign invasion. The Syrians are calling out for the conscience – the collective conscience of the Arab, Islamic, and international communities to help them out and defend themselves against this unbelievable attack on them. Just like the Secretary said, what led to this situation are simple and basic demands by the Syrians to make their lives a little better. But the reaction, the violent reaction of the regime by killing the opposition and murdering those it considers to be opposition, made it inevitable for the Kingdom, which is an Arab country that’s a sister of Syria and has mutual interests with the Syrian people – it’s left with no choice but to help that people defend themselves. And the only restriction we – there is on the aid we can give to the Syrian opposition is our ability to help, our --
SECRETARY KERRY: Your call. It’s up to you. You can do whatever you want.
FOREIGN MINISTER SAUD: (Via interpreter.) The Secretary has an appointment.
QUESTION: (Via interpreter.) Concerning the Geneva 2, how will you hold the conference when the Syrian coalition will not participate? And what’s Saudi Arabia’s stand on calls for jihad? And what measures has it taken to – concerning that? And now the Syrian rebels, there is a rift among the alliance of the Syrian opposition. What is Saudi doing to alleviate that?
And Mr. Kerry, about (inaudible) agreement between Saudi Arabia and the U.S.A. that (inaudible) between Saudi and Arabia and the Americans. Why has that not include in this agreement?
SECRETARY KERRY: Oh, which agreement is that?
PARTICIPANT: The case of Hamid (inaudible), a Saudi citizen.
SECRETARY KERRY: I will have to investigate that. I can’t tell you exactly, but I will find out for you, and we’ll get back to you. Fair enough?
FOREIGN MINISTER SAUD: (Via interpreter.) A rift among Syrian – factions within the Syrian oppositions, this – it’s important for them to agree, so as to defend themselves better and to go on to rebuild Syria in a way that preserves the interests of everyone, of all sects and ethnicities.
What the Kingdom is doing in that regard, we are always trying to convince them to tell them to – to help them to understand that it’s in their best interest to agree. And we hope that these efforts continue so as we arrive at their goals.
Jihad is basically according to – determined by whatever one can achieve. One can do jihad with their hands or with their words. And we are doing it with all our efforts. Thank you.
Remarks With Saudi Foreign Minister Prince Saud al-Faisal After Their Meeting
Remarks
John Kerry
Secretary of State
Jeddah, Saudi Arabia
June 25, 2013
FOREIGN MINISTER SAUD: (Via interpreter) I would like to welcome His Excellency Mr. John Kerry, the U.S. Secretary of State, and his accompanying delegation to the Kingdom of Saudi Arabia. This, his third visit to the region, only asserts his personal concern with the region’s issues and the interests of the United States and those of its friends.
Secretary Kerry and I had a fruitful, constructive discussion today, just like we do in all of our transparent, open-minded meetings. We reviewed many regional and international issues, on top of which is the crisis in Syria and the developments on the Syrian, regional, and international arenas.
Perhaps the most ominous of these developments is the involvement of foreign forces, foremost of which is the motions of Hezbollah and others with support from Iran’s national guard in the mass murder of Syrians with unlimited military support from Russia. This critical turn of events cannot possibly be overlooked. Over and above the regime’s genocide against its own people, this adds an even deadlier element in the form of an all-out foreign invasion that breaks every international law, protocol, and principle. This violates the Syrian land and turns it into a battleground for global and regional conflicts and puts it under the mercy of sectarian struggles. Syria now can only be considered an occupied land. This requires a firm stand and speedy action from the international community. There no longer is rhyme or reason to let Russia’s open and fervent weaponization of the Syrian regime and the hordes of foreign forces backing it to go on unabated.
In the meantime, we are still failing to secure international protection for the Syrian people, or at least provide some sort of military assistance to help it defend itself against these abhorrent crimes being committed against it with nary an excuse. In this regard, the Kingdom demands a clear, unequivocal, international resolution that bans any sort of weaponry support for the Syrian regime, and declares null and void the legitimacy of that regime, which it had lost on day one of this crisis when it denied the simplest, most basic demands of its people, and waged a genocidal war against it instead. It lost its membership in both the Arab League and the Islamic Cooperation Organization, and the Gulf Cooperation Council had already reiterated its illegitimacy, a fact that has been further reaffirmed by the Friends of Syria meetings.
The regime’s illegitimacy eliminates any possibility of it being part of any arrangements or playing any role whatsoever in shaping the present and future of Syria, taking into consideration that the Syrian National Coalition now has the recognition of the international community as the sole representative of the Syrian people in its political and ethnic entirety. The Coalition is now ready to commence with the transitional ruling body with full-fledged authorities away from the pillars of the Syria regime and its cohorts who have blood on their hands.
At the same time, the Kingdom affirms the necessity of changing the balance of powers on the ground in favor of the Free Syrian people. This is the only way to bolster the chances of a peaceful solution, one that we will all seek at the upcoming Geneva 2 convention. I would like to commend the U.S. decision to send military aid to the Free Syrian Army, and express my relief for what I heard today from the U.S. Secretary of State concerning both changing the military balance of powers on the ground and maintaining the legitimacy of the Syrian National Coalition as the sole representative of the Syrian people.
I shouldn’t forget to underline the European Union’s resolution to lift the ban on arming the Syrian opposition. I call upon the EU to immediately put the resolution into action to counter the serious current developments on the Syrian ground.
We also reviewed the Palestinian-Israeli conflict and the ongoing efforts to revive the peace process and the negotiations between the two sides. The Kingdom sees it vital that these efforts focus on resolving the conflict’s major issues after all else had failed at achieving any progress. All previous efforts had been dealing with the ramifications rather than the causes. Therefore there should be consensus towards a solution that is based on international resolutions and principles, agreements and understandings already signed, and the Arab Peace Initiative, so as to reach the goal of a sustainable, independent, and a contiguous Palestinian state.
I would like to thank the Secretary for his efforts in resolving this conflict, and we appreciate his efforts. Now I’d like to thank you all. The Secretary has the floor.
SECRETARY KERRY: Thank you, Your Royal Highness. Assalamu alaikum. It’s a privilege for me to be here again back in Saudi Arabia, and I’m happy to be in this very beautiful city, which is a great hub of innovation and a great history and the crossroads, obviously, for all the pilgrimage to Mecca, and important to the Kingdom. I’m particularly grateful to my friend, Prince Saud al-Faisal, for his welcome here. Always a great welcome and always a very enjoyable and frank conversation, and I respect and appreciate that.
As I think everybody knows, Saudi Arabia is one of our closest partners, and we are grateful for that. We work together on a host of key issues in the region, including the most important one of protecting stability for all of the countries in the region. And the relationship between the United States and Saudi Arabia is critical, I think, to both of our countries.
So, first, I thank Saudi Arabia for its very important leadership and work within the Arab League and, in fact, internationally with the critical and sometimes not properly recognized initiative of His Majesty King Abdullah with the Arab Peace Initiative. This is a most important initiative. And while not everybody agrees with every portion of it, it is an effort, literally, to bring about peace, an offer of a future in which there is a normal set of relationships with real peace, with diplomatic recognition, commerce, trade, all that comes with that peace. And I think that the Arab League’s mission to Washington some weeks ago was an important step forward in helping to lay the groundwork for the possibility of peace between Israelis and Palestinians.
We believe, President Obama believes, that those negotiations should start as soon as is possible, and hopefully that they should conclude with two states living side by side in peace and security. And he has sent me out here to this region on a number of different occasions now in order to work with both the Israelis and the Palestinians, but also with the neighbors, in order to try to bring about the conditions for negotiations to take place, and ultimately notwithstanding all of the turmoil, notwithstanding all of the conflict, notwithstanding all of the counter-indications, to be able to bring about peace.
We need to be able to do that. And we share a belief with Saudi Arabia and many countries that these next weeks are perhaps – or at least this next period of time is an important period of time where decisions could be made that could affect this region for years to come.
We also discussed, as His Royal Highness has said, the crisis of Syria. I join His Royal Highness in making clear that this is a crisis that has been made worse, a situation that’s been made far more difficult and complicated by Assad’s invitation to Iran and to Hezbollah, Iran’s surrogate, to cross lines – international lines – and to become engaged on the ground in Syria. It is the Assad regime that has internationalized the violence on the ground in the worst of ways. And I would remind people, as I think His Royal Highness has and would join me, that peaceful demonstrations that asked for small amounts of reform were met with violence in the very beginning, and it is that violence that has grown, and now, because of the Assad regime’s decision, been internationalized.
I expressed our appreciation for Saudi Arabia’s leadership within the region, within the Arab League, in efforts to try to help us to find a political solution. We believe that the best solution is a political solution in which the people of Syria have an opportunity to be able to make a choice about their future. And we believe that every minority can be respected, that there could be diversity and pluralism, and that people could do so in a climate of peace in the absence of oppression and violence or the involvement of foreign fighters, providing the Assad regime is prepared to live by the framework that was created in the Geneva communique for a transition government with full executive powers chosen by mutual consent of all the parties, which really has the best chance of bringing about peace in Syria. We continue to believe, as His Royal Highness referred to, that the Geneva 2 offers the best opportunity to be able to try to bring that about.
And as countries like the United States and Saudi Arabia aid the opposition, we do so with the belief that it is done in the effort to try to bring people to the decision to go to Geneva and respect the Geneva 1 communique. Earlier this week, we agreed in Doha to do more to aid the opposition in order to help bring that about. And the President of the United States has made the decision to do more, and today I came here to talk with His Royal Highness the Foreign Minister in order to understand better what Saudi Arabia will be doing, what the countries in the region will be doing, and how we can coordinate those efforts in the best way to bring about the solution that we all hope for.
Finally, let me commend Saudi Arabia and the Gulf Cooperation Council for their support of President Hadi and the people of Yemen in their ongoing national dialogue and their broader transition process. This is critical to the future of Yemen, to the future of the region, and we agreed that there are ways that we can cooperate further on that, and we will.
All of these concerns and everything that we discussed today, frankly, has global consequences. And that is why our partnership, the partnership between the United States and the Kingdom of Saudi Arabia, is so essential. So I thank His Majesty, King Abdullah, and the I thank the Foreign Minister, my friend, Prince Saud al-Faisal for his welcome today, and I thank him most importantly for the serious purpose and serious discussion that he is engaged in and for the cooperation that we are both engaged in, in order to bring about peace and stability to this region.
Thank you, Your Royal Highness.
FOREIGN MINISTER SAUD: (Via interpreter) Thank you, Mr. Secretary, and before I close, I would like to congratulate Prince Tamim bin Hamad bin Khalifa Al Thani, the new prince of – the Emir of Qatar. And I would like to appreciate his father, Prince Hamad, for his efforts in developing Yemen and bolstering the relations between our two countries and our two peoples and his work on the issues of the region. And we pray for Qatar’s prosperity and advancement.
We will take your questions now.
MS. PSAKI: The U.S. question will be from Margaret Brennan of CBS News.
QUESTION: Margaret Brennan from CBS. Your Royal Highness, a lot has changed in terms of (inaudible) providing (inaudible). When will we see it make a difference on the ground? And (inaudible) that difference without outside military intervention? And Secretary Kerry, if you could explain more on how the U.S. is helping to coordinate on (inaudible) demonstration (inaudible). (Inaudible) Sergey Lavrov just said that (inaudible).
FOREIGN MINISTER SAUD: (Inaudible) and the corollary to that is (inaudible) a massive flow of money, of weapons to aid and abet (inaudible) genocide. This must end. And Saudi Arabia is not a country that interferes in internal affairs of countries. But an invaded country, where genocide is being perpetrated, is not a normal situation. And I can say with all clarity that we will help the Syrian people defend themselves. We will take our means we have – we are a small country. The aid we can provide is proportionate to our capabilities. But we will not stop helping them in the most effective way that we can, according to that capability.
SECRETARY KERRY: Well, with respect to the (inaudible) technicalities of one particular type of aid versus another, or logistics, but it is obvious from the London 11 meeting that we had the other day, as well as from this meeting, that we are trying to coordinate. We’re trying to understand as well as possible what each nation is doing today, what they’re prepared to do, and obviously, how we can work in a way that isn’t at cross-purposes. We need to be coordinated. So that coordination effort was a subject of discussion today. And I think that given the fact that the President made the decision to provide additional assistance, we want to make sure that that’s being done in the most effective way possible.
We also wanted to – I wanted to hear from His Royal Highness the views of Saudi Arabia with respect to the strategy going forward, and larger concerns: What are the implications of Iran and Hezbollah, a terrorist organization, being involved across international lines in another country, in effect managing a war for that country? What are the impacts on our friends who are neighbors, on Jordan, on Israel, on Lebanon, on Turkey? These are all important considerations, and sometimes one needs to sit face to face in order to have an opportunity to be able to better understand our friends’ thinking on these issues. And that’s exactly what we did.
With respect to Egypt and the demonstrations, first of all, demonstrations are a very legitimate form of expression for citizens in any country. And it’s imperative, we hope, that those demonstrations will be peaceful, that the government would respect them, and that the people will respect their fellow citizens. So that is an important principle on which to begin, but obviously Egypt is going through a very difficult period. We have made many recommendations to our friends in Egypt. We are trying to help, as other countries are trying to help, to create a place for the opposition to be part of the political process in order to create some economic reforms that will help attract business and capital and begin to move their economy. And I think it’s up to the citizens of Egypt to make decisions as to whether or not they feel that all of those kinds of reforms and initiatives are taking place in a way that meets their needs.
That’s not our – that’s – we’re not involved in that. That’s their choice. This demonstration is spontaneous and comes from the Egyptian people. We hope that it will bring the government ultimately to a place where the reforms are effected and choices that need to be made about the economy are implemented. And we will obviously hope that it will not produce violence and be a moment of catalyzing, positive change for Egypt itself.
With respect to the comments – with respect to Mr. Snowden’s situation and the comments, I haven’t read the comments. I understand from – indirectly that it was a strong statement by the Foreign Minister. But I would simply appeal for calm and reasonableness in a moment where we don’t need to raise the level of confrontation over something as, frankly, basic and normal as this.
It is accurate that there is not an extradition treaty between Russia and the United States, so if you want to be technical, certainly there is no extradition treaty. But there are standards of behavior between sovereign nations. There are – there is common law. There is respect for rule of law. And we would simply call on our friends in Russia to respect the fact that a partner nation, a co-member of the Permanent Five of the United Nations has made a normal request under legal systems for law to be upheld.
And we would hope that as a nation, as a sovereign nation, Russia would not see its interests in siding with a person who is accused of breaking the law in another nation and who is a fugitive from justice according to international standards of law. So we simply call on them to – they don’t have to enforce the law, but they certainly can allow him to be subject to the laws of our land and our Constitution, which he is a citizen of. And that’s what we call on them to do.
We’re not looking for a confrontation. We’re not ordering anybody. We’re simply requesting, under a very normal procedure, for the transfer of somebody, just as we transferred to Russia seven people in the last two years that they requested that we did without any clamor, without any rancor, without any argument, and according to our sense of the appropriateness of meeting their request. And that’s what we would hope they would reciprocate with here today.
QUESTION: I have two questions. One is for Mr. Secretary and the other one for His Royal Highness. Mr. Secretary, I believe that there is a tremendous concern in the West and United States about – there was tremendous concern to arm the Syrian Free Army (inaudible) those are in relation to (inaudible). I believe that this concern has resulted in making Hezbollah and Iran more strong in the theater of operation in Syria. Now with the decision of the American Administration to arm the Free Syrian Army, I mean, are you going to arm them with the heavy weapons that could topple the regime or just to make the advance of power on the ground?
(Via translation.) Supporting the Syrian – the Syrian Free Army with (inaudible.)
SECRETARY KERRY: Well, let me just say very directly we never discussed the details of whatever class of weapons we might or might not be providing to anybody. That is not a matter of public discussion. And I think our goal, as I stated, is very clear. We do not want this to be a wider war. We do not want (inaudible) contribute to more bloodshed and a prolongation of the agony of the people of Syria. So our hope is to be able to speedily move to a place where the killing can end and the people of Syria will have a chance to choose their future. We believe that best is provided for through the Geneva process.
But we will continue to provide assistance to the Syrian military coalition and to the Syrian opposition in the interim and because we do not believe that it is appropriate for the Assad regime to have invited the Iranians and Hezbollah to cross international lines and to have their fighters on the ground. There are no United States fighters, there are no Saudi fighters, there are no Qatari fighters on the ground. The opposition was fighting. It is Assad who has grown this in its significance and global implications. And needless to say, we are responding appropriately and we will continue to respond appropriately as the President has said.
FOREIGN MINISTER SAUD: (Via interpreter.) The Kingdom’s aid to Syria – just like I said earlier, Syria is facing two things: genocide, unprecedented genocide in this region and a foreign invasion. The Syrians are calling out for the conscience – the collective conscience of the Arab, Islamic, and international communities to help them out and defend themselves against this unbelievable attack on them. Just like the Secretary said, what led to this situation are simple and basic demands by the Syrians to make their lives a little better. But the reaction, the violent reaction of the regime by killing the opposition and murdering those it considers to be opposition, made it inevitable for the Kingdom, which is an Arab country that’s a sister of Syria and has mutual interests with the Syrian people – it’s left with no choice but to help that people defend themselves. And the only restriction we – there is on the aid we can give to the Syrian opposition is our ability to help, our --
SECRETARY KERRY: Your call. It’s up to you. You can do whatever you want.
FOREIGN MINISTER SAUD: (Via interpreter.) The Secretary has an appointment.
QUESTION: (Via interpreter.) Concerning the Geneva 2, how will you hold the conference when the Syrian coalition will not participate? And what’s Saudi Arabia’s stand on calls for jihad? And what measures has it taken to – concerning that? And now the Syrian rebels, there is a rift among the alliance of the Syrian opposition. What is Saudi doing to alleviate that?
And Mr. Kerry, about (inaudible) agreement between Saudi Arabia and the U.S.A. that (inaudible) between Saudi and Arabia and the Americans. Why has that not include in this agreement?
SECRETARY KERRY: Oh, which agreement is that?
PARTICIPANT: The case of Hamid (inaudible), a Saudi citizen.
SECRETARY KERRY: I will have to investigate that. I can’t tell you exactly, but I will find out for you, and we’ll get back to you. Fair enough?
FOREIGN MINISTER SAUD: (Via interpreter.) A rift among Syrian – factions within the Syrian oppositions, this – it’s important for them to agree, so as to defend themselves better and to go on to rebuild Syria in a way that preserves the interests of everyone, of all sects and ethnicities.
What the Kingdom is doing in that regard, we are always trying to convince them to tell them to – to help them to understand that it’s in their best interest to agree. And we hope that these efforts continue so as we arrive at their goals.
Jihad is basically according to – determined by whatever one can achieve. One can do jihad with their hands or with their words. And we are doing it with all our efforts. Thank you.
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