Tuesday, July 29, 2014

SECRETARY KERRY'S REMARKS AT CENTER FOR AMERICAN PROGRESS' INDIA: 2020 PROGRAM

FROM:  U.S. STATE DEPARTMENT 

Remarks at the Center for American Progress' India: 2020 Program

Remarks
John Kerry
Secretary of State
Center for American Progress
Washington, DC
July 28, 2014


Neera, thank you very, very much. Thank you for confirming to me your mother’s fealty. (Laughter.) I’m deeply appreciative for her support through the years and I’m sorry we lost you when you were 18, but I’m glad you wound up here, as is everybody else. We’re delighted that you’re here.

It’s a privilege for me to be back at the Center for American Progress, and I am very, very apologetic for the delay. I know I’ve kept you all from your appointed rounds and I apologize for that. It’s good to get the telephone unglued for a few minutes here. Obviously, we are still working hard at trying to deal with the issue of the crisis in the Middle East. I spoke to it a little earlier today, so I’m not going to repeat what I said, except to say to all of you that we want to be able to find a way to get to a table to discuss the underlying issues which are real and impactful on everybody and on the region. And we hope to be able to find the magic formula by which the violence could cease for a long enough period of time to try to find that sustainable ceasefire which could allow you to move on from there. The region has known violence for far too long. Too many innocent people caught in the crossfire, too many lives ruptured, and so it is imperative for all of us in positions of responsibility to do everything we can to try to find a diplomatic way, a peaceful way forward if possible.

It is a privilege for me to be back here at the Center for American Progress. Ambassador Sandhu, thank you for being here representing the Embassy, the DCM here, all of our ex-ambassadors and ex-assistant secretaries of Defense and otherwise – greatly appreciative for their supports and efforts to advance the very crucial relationship between the United States and India. And at a time when so many people are – you know, back in history when they were looking for a lot of simple slogans and silver bullets to cure an immediate problem, which was pretty basic, that the Democratic Party was out of the White House and sidelined in the minority in both the House and the Senate – that’s when a guy named John Podesta stood up and was determined to get past the day-to-day ups and downs of the Washington echo chamber, and helped to shape a principled and progressive policy agenda for governing.

John knew then what he practices now in the White House for President Obama: Good policy is good politics. So – excuse me, let me get rid of my flight here – good policy really does make good politics. I always found that and I’ve always tried to practice that. Under Neera Tanden’s leadership for the last couple years, CAP has continued to prove that good ideas are still the most important currency in our political debate. And that is a principle that has also guided CAP’s work on foreign policy, especially in convening Track II, the first intensive climate change dialogue between the United States and India.

India 2020 builds on that success by showing how the United States and India together can tackle global challenges, from security in the Asia Pacific to providing clean energy to delivering more inclusive growth. And Vikram Singh and Rich Verma are going to help lead us together on that, bringing some of the best minds together in terms of policy and politics, and I thank you very, very much for your contribution. Rich and Vikram, thank you for what you’re undertaking. It is really a dialogue about what is in most people’s currency but not always yet fully blossomed, one of the most important relationships internationally.

Now I just got back, as I think you all know, from a pretty intensive trip to Egypt, Israel, the West Bank, and to Europe, working to try to find an end to the violence that has threatened our ally Israel, and which has also cost hundreds of innocent lives in Gaza and elsewhere. The fact is that we were able to produce at least the beginnings of a ceasefire process, a 12-hour ceasefire, then confusion over 4 hours and 12 hours. But the bottom line is the concept of that, I think, is still appreciated by all, and the key now is to find the road, not the question of what.
Now there are some in America who question America’s efforts actually not just in America. There’s some people who ask this elsewhere. But particularly here, they question about our efforts to bring peace to various conflicts around the world. I think they ought to ask: What’s the alternative? Make no mistake, when the people of Israel are rushing to bomb shelters, when innocent Israeli and Palestinian teenagers are abducted and murdered, when hundreds of innocent civilians have lost their lives, I will and we will make no apologies for our engagement.
Ungoverned spaces threaten us all. Instability threatens us all. And upholding the rule of law and humanitarian standards are not only national security imperatives; they are the right thing to do. This is who we are and this is what we do. And frankly, I think it is what we do with greater gusto, with greater grounding, if you will, in international rule of law and structure, than almost – almost any other country.

But I want to be very clear about something, and that’s why I’m here today: Even as we focus on crises and flashpoints that dominate the daily headlines and govern the cable talk shows and so forth, even as that happens and they demand our leadership, we will always act with long-term strategic imperatives foremost in our mind, and that’s why we’re here today. You can go to any capital in the world and you can find different nuanced and self-assured perspectives about American foreign policy. But if you were lucky enough to have the top hundred foreign policy thinkers sit in a room together and you asked them to name the most important relationships for which the United States, with that relationship, will most affect the direction of the 21st century, I can guarantee you this: Every single one of them would rank the U.S.-India relationship right up there in the top tier.

So I want to emphasize the key relationship for the United States – one of the key relationships for the United States in that context is the deepening relationship with India, and particularly trying to deepen our ties with India in terms of our strategic imperatives, both of us. It doesn’t matter just to us or to India; it actually matters to the world. And that’s why, in my first months as Secretary of State, I went to India. And it’s no coincidence that at the time, I – that in Prime Minister Modi’s first 100 days in his government, I’m now returning to Delhi for two days of Strategic Dialogue and discussion. And it was no accident that in the intervening time, we’ve had many discussions and meetings and the prime minister – former Prime Minister Singh, came here to the White House during that period of time.

But then, of course, they had an election. And as everybody knows, from certain number of months during an election, things tend to be put on hold. Now is the time to renew that dialogue with a new government, with a new set of opportunities, new possibilities. This is a potentially transformative moment in our partnership with India, and we’re determined to deliver on the strategic and historic opportunities that we can create together.

In a globalized world, we recognize that yes, India’s going to have many different partners. That’s the nature of the world we’re in today. But we believe there are unique opportunities for just United States and India, and that the dynamism and the entrepreneurial spirit of Mumbai and Bangalore, of Silicon Valley and of Boston – that is precisely what is required in order to solve some of the world’s greatest challenges.

President Obama is absolutely right to call this a defining partnership for the 21st century. India’s new government has won an historic mandate to deliver change and reform. And together, we have a singular opportunity to help India to be able to meet that challenge – to boost two-way trade, to drive South Asia’s connectivity, to develop cleaner energy, to deepen our security partnership in the Asia Pacific and beyond. The United States and India can and should be indispensable partners for the 21st century, and that is, I assure you, the way we approach the Modi government and the way we view this particular time. This week, Secretary Pritzker and I will be emphasizing those opportunities as we meet leaders of India’s new government.

Now we face, as we all know – and Neera talked about it, and it is true – this is a particularly challenging moment. Forces that were pent up for years in the Cold War tampened down by dictatorship and absence of freedom to speak have suddenly been released everywhere, and everywhere everybody is in touch with everybody all the time. It changes the face of politics profoundly everywhere. People have more information, more ability to organize, more ability to talk to each other. So we do face a host of critical challenges together and we face a world in which more young people more rapidly are demanding more from their governments with too many places where there’s too little response. And that is a challenge for all governance, none more so than what we do to link our economies, India and the United States, in order to further our shared prosperity agenda.

What we do to strengthen global security and a rules-based international system, how we turn the challenges of climate change into an opportunity for greater cooperation and economic growth – these are the big challenges. These are opportunities for us. Our countries have had a decades-long relationship, and I can personally remember the lingering sense of suspicion and distrust when I first went to India at the end of the Cold War. I traveled to Delhi, Mumbai, Bangalore with executives from companies like Raytheon and Nextel, companies that are doing booming business in India today. I remember talking to then-Finance Minister Singh about the reforms that were needed and the opening up of the economy and the ability to be able to attract capital and have rules that made sense to everybody that we all understood. I remember that back then, and I felt then the possibility of the enormous potential of a closer, stronger partnership.

And now, it’s not hard to see how in this moment, we can actually deliver on that partnership’s full promise. The new Indian Government’s plan, “Sabka Saath, Sabka Vikas”, together with all, development for all – that’s a concept, a vision that we want to support. We believe it’s a great vision, and our private sector is eager to be a catalyst in India’s economic revitalization. American companies lead in exactly the key sectors where India wants to grow: in high-end manufacturing, in infrastructure, in healthcare, information technology, all of them vital to sort of leapfrogging stages of development so you can provide more faster to more people
India also wants to build a more competitive workforce, and already 100,000 Indians study each year in American universities. But America’s community colleges actually set a remarkable standard for 21st century skills training. We should be expanding our educational ties across the board, increasing opportunities for young people in both of our nations. I know Prime Minister Modi drew from that energy of India’s youth during his campaign. He repeatedly pointed out that while India’s one of the world’s oldest civilizations, it has the world’s youngest population. Prime Minister Modi has said that young people have a natural instinct to rise like a flame. And he has spoken about India’s duty to nurture that instinct, and we believe, frankly, that’s a duty for both of our nations.

And that means strengthening the exchange in technical education, in vocational programs for high-skilled trades, and especially in areas where we can build on the entrepreneurial and innovative spirit of both of our nations. And we all know about the extraordinary work ethic that people in India have and the capacity to be able to do this and seize this opportunity. One of the marked contrasts of this moment is this juxtaposition to parts of the world where young people demanded a participation in this world they see around them, and rose up against leadership that had stultified over the course of years, decades even – Tunisia, Egypt, Syria. They all began without one flake of religious extremism involved in the revolutions that brought change. It was all about young people gathering and forcing the notion that they wanted something more to life. They wanted opportunity, education, respect, dignity, jobs, a future.

So this possibility I’ve just defined between India and the United States, which fits very neatly into Prime Minister Modi’s vision that he expressed in a campaign which was ratified overwhelmingly by the people of his country is exactly the vision that we need to embrace now, and that’s why this opportunity is actually so ripe. This area of cooperation is particularly exciting, I think, and I’m particularly confident about these opportunities, because only countries that reward creativity the way the United States and India do could have possibly launched Hollywood and Bollywood. (Laughter.) Only countries that celebrate the entrepreneur the way we do could have launched Silicon Valley and Bangalore as global epicenters for innovation.
Innovation and entrepreneurship are in both of our DNA, and they not only make us natural partners; they give us natural advantages in a world that demands adaptability and resilience. The United States and India cannot afford to just sort of sit back and rest on these currently existing advantages. We have to build on them and we have to build on them by investing more in one another. Now unlike some other nations, the United States cannot direct a private corporation to go invest in a particular country. President Obama can’t order businesses to build factories in Kolkata or Chennai. It just doesn’t happen.

But we do know this from several hundred years of experience: If India’s government delivers on its plans to support greater space for private initiative, if it creates greater openness for capital flows, if it limits subsidies that stifle competition, if it provides strong intellectual property rights, believe me, even more American companies will come to India. They may even race to India. And with a clear and ambitious agenda, we can absolutely help create those conditions.
So as we work with our trading partners around the world to advance trade and investment liberalization, India has a decision to make about where it fits in the global trading system. India’s willingness to support a rules-based trading order and fulfill its obligations will help to welcome greater investment from the United States and from elsewhere around the world. The greater transparency and accountability that Prime Minister Modi put in place during his time as chief minister tells us he has already provided a model of how raising standards can actually increase economic growth.

Now I believe the United States and India should continue to reach for the ambitious target that Vice President Biden laid out last summer in India, to push from 100 billion to 500 billion a year in trade. And whatever impediments we may face along the way, we need to always be mindful of the opportunities and the bigger picture around this. So it’s in our – excuse me. It is completely in our mutual interest to address those obstacles that kind of raise their head here and there as you go along the way and to remember that a lot bigger opportunities will come from more robust ties, so we need to keep our eye on the prize out there and not get dragged down by one small or lesser particular aspect of a restraint. The bigger picture has to guide us and the end game has to guide us.

If you have any doubts, just look at the opportunities that Ford is creating right now in India. They’re doubling production from plants in Gujarat and Chennai. They’re investing 1 billion to make India a global hub for exports. Take a look at the jobs that TATA is creating for Americans by expanding auto design and sales in the United States, adding to its 24,000 employees already in this country. Already, Indian investment creates close to 100,000 jobs right here at home.

And we also convinced – we are convinced that just as the United States and India can do more to create shared prosperity, so can India and its neighbors. Simply from the size of South Asia’s market – 1.6 billion consumers – and from India’s geography, sitting at the center of this dynamic Asian continent, the opportunities are leaping out at us. They’re just enormous. And just to underscore how untapped this potential is, consider this: South Asia is the least integrated economic region in the world. Fastest growing region in the world, Southeast Asia.
By strengthening trade links with Bangladesh, by building on the political opening in Burma, by increasing trade with the Asia Pacific and Southeast Asia, India can be at the heart of a more connected, prosperous region. So we are deeply committed to helping India grab ahold of these opportunities.

That’s why the United States is supporting an Indo-Pacific Economic Corridor to connect South Asia to Southeast Asia. That’s why we’re focused on investing in regional infrastructures and in the creation of a regional energy market. And that’s why we’re supporting new trade routes linking Central and South Asia with the New Silk Road Initiative. I mean this is – the possibilities here are gigantic.

Now clearly, Prime Minister Modi understands the opportunities that regional connectivity provides for India and for a more stable, prosperous region. And by inviting leaders from around the region to his swearing-in, and by bringing them together to speak about connecting their economies as one of his first orders of business, he is eager for India to play a leading role. And guess what? So are we.

Nowhere is that leadership more critical than in improving cross-border trade and relations between India and Pakistan. Prime Minister Modi took the important first step of inviting Nawaz Sharif to his inauguration. Both men are business-minded leaders who want to create opportunity for their people. I talked to Nawaz Sharif after his visit there. He was very encouraged, thought it was positive, possibilities he understood. So improved trade is a win-win for both countries and both peoples. And I know that there are plans for the commerce secretaries and foreign secretaries to meet in the coming weeks in order to build on that. I commit to you that the United States will do everything we can to encourage India and Pakistan to work together and improve the prospects for both prosperity and stability in the region.
Now India has already shown a deep commitment to regional stability with the generous investments in Afghanistan. At this critical moment of transition and in the coming months, support from all across the international community will be vitally important. In the coming days, I will continue to work closely with President Karzai, with the candidates, with the United Nations in order to provide Afghanistan with support during the transition. And we look forward to working also with India on this, and we look forward to India engaging with its neighbors so that Afghanistan’s connections to the region and the world are defined by the opportunity that they can create together.

Far beyond Afghanistan, India is assuming greater responsibilities for regional and global security. As India plays an increasingly global role, its interests are served by forging strong partnerships on a broad range of issues. Among South Asian nations and within international organizations, India should be a global leader. That’s why President Obama voiced his clear support for a reformed UN Security Council that includes India as a permanent member.
For several years, India has been a major partner in the fight against piracy in the Strait of Malacca and off the Horn of Africa. Even as we speak, India and the United States are participating in RIMPAC and Malabar joint naval exercises. Secretary Hagel will explore broadening our deepening – the deepening possibilities of our relationship with India when he travels there in early August.

Counterterrorism is also a challenge to both of our nations. The United States and India are continuing a very close partnership in that regard we began after the horrific Mumbai attacks, and then we began to train first responders in order to help protect our citizens. And President Obama was critical clear – crystal clear about the stakes for our counterterrorism partnership in his West Point speech in May. And our two nations have already provided one model of how these partnerships can work. Our collaboration on counterterrorism and real-time information sharing has helped us confront common threats and bring terrorists to justice.

But there is obviously room for us to be able to do more. When terrorist attacks took 400 Indian lives in 2013 alone, we know that the threat of terrorism remains too real and far too high for India’s people. Confronting terrorism requires our continued partnership and it requires continued vigilance. And it also means leading with our values. India and the United States are two nations that have worked hard to overcome our own divisions so that today we draw strength from pluralism and diversity. We’ve got to provide that example as we work to provide opportunity beyond our borders, addressing the conditions that allow extremists to thrive in the first place.

I won’t tell you where, but I’ll tell you I was with a foreign minister of a country in Africa recently, and we had dinner and we talked kind of candidly and openly as you can in that situation. And he said to me – I asked him about their Muslim population and what was happening. And he said, “Well, X percentage of our population is Muslim, and we’re very worried, because the bad guys have a strategy. They grab these young minds when they’re 13, 14, 15, 16. They pay them originally, and then when they get the minds, they don’t pay them anymore, they don’t have to. Then they send them out to recruit or conduct a mission. And they subvert the state. They have a strategy. Do we?”

It’s a prime question for all of us, and in so many parts of the world where 60 percent of the population is under the age of 30, 50 percent under the age of 21, 40 percent under the age of 18 and more in some places – if these people don’t find jobs and they don’t get an education and they don’t have opportunity and dignity and respect and a voice, then you know who’s going to grab them and say, out of frustration, “There’s a better way.” That’s part of our challenge and responsibility as great global powers, and that’s part of how we tame the most dangerous impulses of a more interconnected world.

One challenge that drives home just how interconnected and interdependent we are on this planet is this challenge of a lifetime called climate change. For millions of Indians, extreme weather and resource shortages are not future threats; they are here now. They’re endangering their health and prosperity and security every single day.

In India’s largest rice-producing region, West Bengal, the Monsoon rains have been 50 percent lower than average this year. This comes after the monsoons all but failed last year in several Indian states, helping to cause one of the worst droughts in a generation, affecting 120 million Indians.

In parts of northern India, armed bandits have imposed what amounts to a water tax, demanding 35 buckets a day. So believe me, it is not hard to measure the ways in which climate change every single day is already a catalyst for instability. I can show you places in the world where tribes fight over a well and people are dying because of the absence of water.
And while parts of India suffer from a once-in-a-generation drought, others suffer from – guess what – historic rains. When I arrived in India last summer, Uttarakhand was grappling with historic floods that killed more than 5,000 people.

So climate volatility is clearly taking a toll on India’s population. And so is pollution. Of the 10 cities in the world with the worst air quality, six are in India. Each year in India, the effects of air pollution cause nearly 1.5 million deaths.

So we know what the down sides are, but happily, guess what, we also know what the solutions are. And forging these solutions is a huge economic opportunity for both of us. The solution comes from areas where we already do things very well, where we’ve already made great progress, where innovation, smarter energy policy, and clean energy technology are already defining the future.

Let me just share with everybody – I reinforce this again and again whenever I get a chance. The solution to climate change is energy policy. It’s not some magical, unreachable, untouchable thing out there. It’s not pie in the sky. It’s energy policy. And where we put good energy policy in place, we reduce emissions and we begin to contribute to the solution. It’s a huge market, my friends.

I also remind people that the market that created the great wealth of the United States of America during the 1990s, which made Americans individually and otherwise richer than they’d ever been in American history – at the top end it made people richer than they did in the 1920s when we didn’t have an income tax, and every single quintile of American income earners saw their income go up in the 1990s. You know what that was? A $1 trillion market with one billion users. It was the high-tech computer, personal computer, et cetera market.

Today’s energy market is a – today’s energy market is a $6 trillion market now, with four to five billion users, growing to nine billion users over the course of the next 30 years, by 2050. Just think about that. It’s an opportunity for huge numbers of jobs, for transformation in the provision of our power, transformation in health, get rid – lowering the pollution, moving into the new energy sources, providing safety and security in energy so we don’t have instability. And I could run on in the possibilities, not the least of which our global responsibility to stand up for and leave a cleaner, better, more sustainable Earth to our children and our grandchildren. It’s a way of living up to our responsibility as stewards of the planet, which, by the way, is directed to us in every major scripture of every major religion.

Now, both of our nations pride ourselves on science and innovation. So the bottom line is this is up to us. It’s up to us to deliver. I know Prime Minister Modi understands the urgency. He’s called for a Saffron Revolution, because “the saffron color represents energy.” And he said that “this revolution should focus on renewable energy sources such as solar energy, to meet India’s growing energy demand.” He is absolutely right, and together I believe that we can at last begin a new constructive chapter in the United States-India climate change relationship.

The United States has an immediate ability to make a difference here, and we need to eliminate the barriers that keep the best technology out of the Indian market. And the United States can help India find and develop new sources of energy through renewable technologies and greater export capacity for liquefied natural gas.

Already, we’ve brought together more than 1 billion in financing for renewable energy projects. And with this funding, we helped to bring India’s first 1,000 megawatts of solar power online. But we need to build on the U.S. India Civil Nuclear Agreement, so that American companies can start building and can start providing clean power to millions in India. And we need to build on the $125 million investment that we’ve made in a Joint Clean Energy Research and Development Center.

Prime Minister Modi has also made a commitment to electrify every home in India by 2019. With fewer limits on foreign technology and investment in India’s green energy sector, we can help make clean power more cost-effective and more accessible at the same time. We can provide 400 million Indians with power without creating emissions that dirty the air and endanger public health. And by working together to help an entire generation of Indians leapfrog over fossil fuels, we can actually set an example to the world.

So I readily acknowledge that today’s climate challenges did not start with India. And we know that the United States is the second-largest emitter of carbon in the world – the first now being China, who have overtaken us. But we also know that we can’t solve these problems alone – no one. They require partnership. And our partnership requires our leadership. By acting right now to reduce emissions, just as President Obama has done here in the United States, by investing in innovation, and by working together in the UN climate negotiations, we could prevent the most devastating consequences of climate change and meet this generational challenge.
Lastly, in this century, one that will continue to be defined by competing models of government, India and the United States have a common responsibility – we already have it; we share it – to prove that democracies can deliver for their citizens. Our two nations believe that when every citizen, no matter their background, no matter their beliefs, can make their full contribution. That is when we are strongest and that’s when we’re most secure.

So we are two confident nations, connected by core values, optimistic nations, never losing sight of how much more we can and must achieve. From women’s rights to minority rights, there is room to go further with our work together. And we also have to speak with a common voice against the violence against women in any shape or form that is a violation against our deepest values.

The United States and India are two nations that began both of their founding documents with exactly the same three words: “We the people.” By deepening our partnership, we can work together to deliver opportunity to all of our people and become stronger nations.
President Roosevelt, of course, described America as having a “rendezvous with destiny.” India’s first Prime Minister Jawaharlal Nehru spoke about India’s “tryst with destiny.” This can be a moment where our destinies actually do converge. And if we harness our capacity of our two nations, if we deepen our partnership, if we make smart choices, if we seize these opportunities, the United States and India can create a more prosperous and secure future for the world and for one another.

That is why I leave for Delhi tomorrow night, and that is why the President will welcome Prime Minister Modi to Washington in September. Because this is the moment to transform our strategic relationship into an historic partnership that honors our place as great powers and great democracies. We intend to leave not an instant behind us. We are going to get to work now. Thank you. (Applause.)

NSF REPORTS ON TELE-ROBOTICS

FROM:  NATIONAL SCIENCE FOUNDATION 
Tele-robotics puts robot power at your fingertips
University of Washington research enables robot-assisted surgery and underwater spill prevention

At the Smart America Expo in Washington, D.C., in June, scientists showed off cyber-dogs and disaster drones, smart grids and smart healthcare systems, all intended to address some of the most pressing challenges of our time.

The event brought together leaders from academia, industry and government and demonstrated the ways that smarter cyber-physical systems (CPS)--sometimes called the Internet of Things--can lead to improvements in health care, transportation, energy and emergency response, and other critical areas.

This week and next, we'll feature examples of Nationals Science Foundation (NSF)-supported research from the Smart America Expo. Today: tele-robotics technology that puts robot power at your fingertips. (See Part 1 of the series.)

In the aftermath of an earthquake, every second counts. The teams behind the Smart Emergency Response System (SERS) are developing technology to locate people quickly and help first responders save more lives. The SERS demonstrations at the Smart America Expo incorporated several NSF-supported research projects.

Howard Chizeck, a professor of electrical engineering at the University of Washington, showed a system he's helped develop where one can log in to a Wi-Fi network in order to tele-operate a robot working in a dangerous environment.

"We're looking to give a sense of touch to tele-robotic operators, so you can actually feel what the robot end-effector is doing," Chizeck said. "Maybe you're in an environment that's too dangerous for people. It's too hot, too radioactive, too toxic, too far away, too small, too big, then a robot can let you extend the reach of a human."

The device is being used to allow surgeons to perform remote surgeries from thousands of miles away. And through a start-up called BluHaptics--started by Chizeck and Fredrik Ryden and supported by a Small Business Investment Research grant from NSF--researchers are adapting the technology to allow a robot to work underwater and turn off a valve at the base of an off-shore oil rig to prevent a major spill.

"We're trying to develop tele-robotics for a wide range of opportunities," Chizeck said. "This is potentially a new industry, people operating in dangerous environments from a long distance."

-- Aaron Dubrow, NSF
Investigators
Fredrik Ryden
Howard Chizeck
Blake Hannaford
Tadayoshi Kohno
Related Institutions/Organizations
BluHaptics Inc
University of Washington

SECRETARY KERRY'S REMARKS AT YOUNG AFRICAN LEADERS SUMMIT

FROM:  U.S. STATE DEPARTMENT 

Remarks at the Presidential Summit of the Washington Fellowship for Young African Leaders

Remarks
John Kerry
Secretary of State
Omni Shoreham Hotel
Washington, DC
July 28, 2014




SECRETARY KERRY: Wow. What a great group. Thank you. Please, sit down. Sit down, sit down. Thank you. It is so good to see you all. Welcome. You having fun?

AUDIENCE: Yes.

SECRETARY KERRY: I’m glad to hear it. It’s just beginning. And the President’s going to get a chance to speak with everybody before long. That’ll be great. We look forward to it. I can’t tell you – I’m really excited to see you all here, and I hope you’re excited to be here. That’s important. (Cheers and applause.)

I cannot thank all the leaders all across the State Department and across the Administration – people have worked really hard to get here. Leaders on our campuses, college campuses all across the country, all of them have come together to help make this possible. And I’m particularly grateful to the Bureau of Educational and Cultural Affairs, the Bureau of African Affairs, the Bureau of International Information Programs, USAID, the U.S. African Development Foundation, NGO IREX, and the staff of 20 – 20 – academic host universities. That’s a big group of people who helped make this happen, and we’re grateful for them. (Applause.)
But most importantly I want to thank you. I’m so honored and excited, as you can tell, I think – I hope you can tell – (laughter) – to welcome you all here. It is such a pleasure to welcome so many young African leaders to Washington. And as you know, the leaders of countries will be coming here in just a few days for a first-ever summit of all the African leaders. We’re really excited about that. The President’s been personally very focused on it. And right now, we have five hundred fellows from all 49 countries in sub-Saharan Africa. This is really remarkable. This is a first. And I know the real presence of a kind of excitement, a hopefulness, a sense of possibility that is accompanying and defining this meeting. I can almost feel my hair growing brown again. (Laughter.) It’s reversed.

I actually had a chance to meet a few of you – and I don’t know where you all are in the ground here. How many of you met me along the way in the last journey? There we go. Hands waiving over here and here. Anybody over here? Hello, again. Nice to see you. Anybody back here? Thank you. And that’s what gave me such a great belief in this, was when I was in Africa in May.
And I will never forget the story of one young woman named Haleta Giday – (cheers and applause.) Where’s Heleta? Yeah, stand up. Let everybody know. (Applause.) So Haleta graduated from one of the best schools in Ethiopia. She could pick any job she wanted to do, believe me. She had the chance to do the most lucrative job there is – make a lot of money, go into the big corporate world, and literally do anything. You know what? Instead, she chose to represent women and children who were the victims of violence. And when Haleta saw how many widows went bankrupt after they lost their husbands, she began a campaign to educate women about their legal and financial rights.

She’s already lived a remarkable life. But what’s even more remarkable is that she’s not alone. She is just one of many young African leaders who are taking on some of the toughest challenges, all of you.

We’re here today because the United States and countries across Africa are natural partners, and it’s time to take our partnership to the next level by investing in the continent’s greatest natural resource of all: its people. (Applause.) And that’s what the Young African Leaders Initiative is all about: investing in your future – and ours – by engaging in the promise of a new generation of great leaders in every single field of endeavor. And when 65 percent of Africa’s population is under the age of 35, let me tell you, we don’t have a moment to waste.

The fact is that we have reached an inflection point for the new Africa. It is a time and a place where all of you have the great opportunity of a lifetime to bend the arc of history toward change, not stagnation. You can bend it towards peace and prosperity, not conflict and retribution. Africa’s course – and this is not an exaggeration – it is ultimately up to you, the next generation of leaders who will seize the future and become the next generation of CEOs and community and political leaders, the national leaders. You will define that future.
When I look out at this audience, I’m not kidding you when I say I see the promise of that future. (Applause.) I see the human faces behind the story of just how far Africa has come. Just consider what all of you have witnessed over the course of your young lives.

You have seen real incomes across Africa increase more than 30 percent, reversing two decades of decline. You’ve seen African trade with the rest of the world increase by 20 percent – 200 percent, excuse me. You’ve seen 35 peaceful transitions of power – 35 peaceful transitions of power – and the number of democracies has more than tripled. That is a continent on the move. And you’ve seen HIV infections decline by nearly 40 percent and malaria deaths among children decline by 50 percent. And we are on a cusp of looking at the first generation of children who may be born AIDS-free as a result of the efforts that we are making. (Applause.)
So this really is a moment of great opportunity for Africa. But make no mistake, it’s not automatic. It is also a moment of great decision. The choices that African leaders make, the choices that you make, the choices that you push the political systems of your countries to make, the choices that you help to debate and put on the table and make part of the dialogue of your countries – all of that will determine the future.

You will decide whether or not a decade of progress leads to an era of African prosperity and stability or whether your countries tragically fall back into cycle after cycle of tragic violence and mark a governance that is weak and stifles the promise of a continent for too long – your promise, the promise that each and every one of you bring here to Washington, the promise that I know motivates you every single day as you pursue an education or begin to work as professionals and go out into the world, whether it’s in the private sector or the public sector, all of you committed to try to change the future. You have the ability to do that.

And that is precisely why President Obama launched YALI, to empower you with new skills, new resources, new networks so that you can not just demand action but you can go out and act on your own dreams and hopes and vision for the future. Your brief experiences here in the United States are just the start of what we hope will be lasting relationships between each of you but also with us. We’re investing in you so that you can invest in your countries and in the U.S.-Africa partnership. YALI embodies the United States continuing commitment to that vision. And I am very, very proud that you aren’t just heeding the call, you’re leading the charge. (Applause.)
I’m also inspired by the story of Hashim Pondeza. Hashim, where are you? (Cheers and applause.) Hashim, stand up. I wanted to – Hashim is from Tanzania and he is leading the charge to strengthen democratic institutions. That’s never easy work and it can carry risks in some places. He has worked on child protection issues for Save the Children and for Zanzibar’s Ministry of Labor. But today, he’s working to strengthen civil society and democratic institutions at the local level across Tanzania.

Hashim knows that promoting good governance isn’t just about whether you can work well on your side; it’s about working side by side. And as he says, “The biggest challenge is trying to get many factions to cooperate to reach the same aim.” Let me tell you something, as somebody who’s in the middle of trying to get some people to just get seven days of a ceasefire in the Middle East, I know what you’re talking about Hashim. (Applause.) It’s never easy, but that doesn’t mean you stop and that doesn’t mean you turn away. You have to keep doing it. Remember what Nelson Mandela said, “It always seems impossible, until it is done.” And that’s what we have to have as our guide. (Applause.) So I’m proud that the future of our partnership is in Hashim’s hands, in your hands.

I’m also inspired by Aichatou Tamba. Where’s Aichatou? Is she here somewhere? Aichatou. (Cheers and applause.) Aichatou’s from Ethiopia and she’s leading the charge to promote peace and security. Too often, in too many countries borders become a barrier – a barrier not just to communication but a barrier to trade, a barrier to the movement of talent, a barrier to technology. Aichatou has been working to turn those barriers into opportunities. She’s partnered with a dozen African states to promote conflict prevention, and she’s working with the African Union Border Program in Ethiopia to make a difference on the ground. I’m proud that the future of our partnership is also in Aichatou’s hands. (Applause.)

And I’m inspired by Zandile Lambu from Zimbabwe. (Cheers and applause.) Where is Zandile? Raise your hand. She is leading the charge to promote inclusive economic growth. And Zandile hasn’t just spoken words about shared prosperity; she’s walked the walk. She’s used her position at Econet Services to create new trade opportunities for mobile money products in Africa. She’s partnered with businesses to provide mobile money services to local communities. You know how hard it is to get money into people’s hands or move it or control it. Well, there’s a way to do that now in this mobile technological world that we all live in. And she’s being creative and grabbing the best of that, and she’s volunteered to teach other young women how to design and develop mobile apps. She’s not in this business to make money. She’s in it to make a difference, and I’m proud that the future of this partnership is also in Zandile’s hands. (Applause.)

Now we live in a very complicated world today, full of very close calls that can go either way, but I know this: When you promote democratic change, when you transform borders of conflict into bastions of peace, when you empower women to realize their aspirations, you create a better future, not for some, but for all. There is no way to win this battle in countries where women are left behind – you cannot leave half your team off the field and win the game. (Applause.)
I want you to know that the Obama Administration is inspired by the work that Hashim and Aichatou and Zandile are all doing, all of you are doing, and that’s why we are so committed to the Young African Leaders Initiative for the long haul – not just for this meeting, for the long haul. And when you leave here, I hope you will leave here with a renewed sense of purpose, with a renewed sense of hope, with a renewed commitment, with a renewed understanding of what is possible, and I hope you will take these connections you’ve made here and make the change that you seek.

The challenges may be real – no, they are real. We all know that. But guess what? So are the opportunities. Africa can be a beacon for the world. Dramatic transformations are possible. Africa will be the place of great growth in this century. You will be the witnesses to remarkable transformation. But how you transform; who benefits; what you become; what rights you protect; what opportunities you create and guarantee – that will write the real history. Each of you has an incredible opportunity to change lives for the better, and you can do – you can define your nations in the doing of that. It’s tough work. It requires sober commitment and a clear vision of a better future. But I have every confidence, and President Obama is more than convinced, which is why he convened this, that you will rise to the challenge and lift up and inspire citizens in your own countries, all of whom you know are hoping desperately for change.
I want to leave you with a thought from the man who inspired me when I was growing up, a younger brother of the youngest man ever elected America’s president, and a man who had a vision in his own right and went to South Africa in 1968 and laid it out to people at a time when it was still difficult – Robert Kennedy.

He said: “Few will have the greatness to bend history itself, but each of us can work to change a small portion of events – and in the total of all those acts will be written the history of this generation.” He went on to say that each time a man or a woman works to strike out against injustice or change the lot of others, he or she sends forth a tiny ripple of hope, and crossing each other for a million different centers of energy and daring, those ripples can build a current that will sweep down the mightiest walls of oppression and resistance.

My friends, this is your moment to write the history of Africa for the next generation. You have the will. You have the drive. You have the intelligence. You have the vision. You have the ability. You have the courage to stand up and say loudly and clearly, “I will be responsible.” And that is leadership. That’s the future that we can build together. And we are convinced that that future begins now, here, with these meetings and in the work that you will take back with you, and in our partnership over these next years.

Thank you all, and God bless. Thank you. (Applause.)

LLOYDS BANKING GROUP ADMITS WRONGDOING AND WILL PAY $86 MILLION FOR LIBOR MANIPULATION

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, July 28, 2014
Lloyds Banking Group Admits Wrongdoing in LIBOR Investigation, Agrees to Pay $86 Million Criminal Penalty

Lloyds Banking Group plc has entered into an agreement with the Department of Justice to pay an $86 million penalty for manipulation of submissions for the London InterBank Offered Rate (LIBOR), a leading global benchmark interest rate.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Antitrust Division, and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

A criminal information will be filed today in U.S. District Court for the District of Connecticut that charges Lloyds as part of a deferred prosecution agreement (DPA).   The information charges Lloyds with wire fraud for its role in manipulating LIBOR.   In addition to the $86 million penalty, the DPA requires the bank to admit and accept responsibility for its misconduct as described in an extensive statement of facts.   Lloyds has agreed to continue cooperating with the Justice Department in its ongoing investigation of the manipulation of benchmark interest rates by other financial institutions and individuals.

“For more than three years, traders at Lloyds manipulated the bank’s LIBOR submissions for three currencies to benefit the trading positions of themselves and their friends, to the detriment of the parties on the other side of the trades,” said Assistant Attorney General Caldwell.   “Because investors and consumers rely on LIBOR’s integrity, rate-rigging fundamentally undermines confidence in financial markets.   Lloyds is the fifth major financial institution that has admitted LIBOR manipulation and paid a criminal penalty, and nine individuals have been criminally charged by the Justice Department.   Our active investigation continues, as we work to restore trust in the markets.”

“Lloyds manipulated benchmark rates, allowing its traders to increase their profits unfairly and fraudulently,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.   “Lloyds’s conduct undermined financial markets domestically and abroad, and today’s charges send a clear message that we will continue to bring those responsible to justice."

“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s agreement further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”

Together with approximately $283 million in criminal and regulatory penalties imposed by other agencies in actions arising out of the same conduct – $105 million by the Commodity Futures Trading Commission (CFTC), and approximately $178 million by the U.K. Financial Conduct Authority (FCA) – the Justice Department’s $86 million criminal penalty brings the total amount to be paid by Lloyds to almost $370 million.

According to signed documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world and reflecting the rates those banks believe they would be charged if borrowing from other banks.   LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.   The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.

At the time relevant to the conduct in the criminal information, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London.   LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year.   The LIBOR for a given currency at a specific maturity was the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA.   From at least 2006 through the present, Lloyds (through its subsidiaries) has been a member of the Contributor Panel for a number of currencies, including United States Dollar LIBOR, Pound Sterling LIBOR, and Yen LIBOR.

According to the statement of facts accompanying the agreement, between at least as early as 2006 and at least as late as July 2009, Lloyds’s LIBOR submitters for Dollar LIBOR, Yen LIBOR, and Pound Sterling LIBOR submitted LIBOR contributions intended to benefit their own trading positions or the trading positions of others , rather than rates that complied with the definition of LIBOR.   When Lloyds LIBOR submitters contributed LIBOR submissions to benefit trading positions, the manipulation of the submissions affected the fixed rates on occasion.

According to signed documents, on May 19, 2009, a money markets trader who was a former Dollar LIBOR submitter at a subsidiary of Lloyds wrote to the then-current Dollar LIBOR submitter: “have 5 yard [billion] 3 month liability rolls today so would be advantageous to have lower 3month libor setting if doesn’t conflict with any of your fix’s.”   Later that day, the Dollar LIBOR submitter told the money markets trader in a phone call: “obviously we got the Libors down for you.”

In another example, on March 6, 2009, a money markets trader who was a former Pound Sterling LIBOR submitter for a subsidiary of Lloyds told the then-current Pound Sterling LIBOR submitter: “Um, I’m paying on 12 yards [billions] of 1s today, . . . so if there is any way of making 1s relatively low it would just be helpful for us all.”   That day, the Pound Sterling LIBOR submitter contributed a rate that was ten basis points lower than the previous day’s submission.

Also according to the statement of facts, a Yen LIBOR submitter and a former submitter at Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) who traded money-markets and derivatives products had an agreement to submit Yen LIBOR contributions that benefitted their respective trading positions, rather than submissions that complied with the definition of LIBOR.

For example, on July 28, 2006, the Rabobank submitter wrote to the Yen LIBOR submitter: “morning skipper.....will be setting an obscenely high 1m again today...poss 38 just fyi.”   The Yen LIBOR submitter responded: “(K)...oh dear..my poor customers....hehehe!! manual input libors again today then!!!!”   Both banks’ submissions on July 28 moved up one basis point, from 0.37 to 0.38.

This ongoing investigation is being conducted by special agents, forensic accountants, and intelligence analysts of the FBI’s Washington Field Office. The prosecution of Lloyds is being handled by Trial Attorney Patrick Pericak of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. Assistant U.S. Attorneys Chris Mattei and Michael McGarry of the U.S. Attorney’s Office for the District of Connecticut, along with the Criminal Division’s Office of International Affairs, have provided valuable assistance in this matter.

The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

Monday, July 28, 2014

READOUT: 5 LEADER TELECONFERENCE ON UKRAINE, GAZA AND LIBYA

FROM:  THE WHITE HOUSE

Readout of the President’s Video Teleconference with Prime Minister Cameron of the United Kingdom, President Hollande of France, Chancellor Merkel of Germany, and Prime Minister Renzi of Italy

President Obama spoke today with Prime Minister Cameron of the United Kingdom, President Hollande of France, Chancellor Merkel of Germany, and Prime Minister Renzi of Italy.  The five leaders discussed next steps concerning the crisis in Ukraine, efforts to achieve a ceasefire in Gaza, and also the situations in Iraq and Libya.  On Ukraine, the leaders stressed the continued need for unrestricted access to the shoot-down site of Malaysia Airlines Flight 17 to allow for recovery of victims’ remains and for international investigators to proceed with their efforts.  They agreed on the importance of coordinated sanctions measures on Russia for its continued transfer of arms, equipment, and fighters into eastern Ukraine, including since the crash, and to press Russia to end its efforts to destabilize the country and instead choose a diplomatic path for resolving the crisis.  Concerning the situation in Gaza, the President noted that Israel has the right to take action to defend itself.  The leaders agreed on the need for an immediate, unconditional humanitarian ceasefire, noting shared concern about the risk of further escalation and the loss of more innocent life.  On Iraq, they discussed the security challenges, welcomed developments in the political process, and urged the swift completion of the formation of an inclusive government.  With respect to Libya, they agreed on the need for an immediate ceasefire among militias in Tripoli, called for the seating of the newly elected Council of Representatives, and underscored support for the UN in seeking a resolution to this conflict.  They condemned any use of violence to attack civilians, intimidate officials, or disrupt the political process. 

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JULY 18, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS
ARMY
Exelis Systems Corp., Colorado Springs, Colorado, was awarded a $445,107,802 modification (P00083) to contract W52P1J-10-C-0062 for base operations at Camp Arifjan, Camp Buehring, Udairi Range and Camp Patriot in Kuwait and the aerial port of debarkation, and sea port of debarkation in Kuwait. Fiscal 2014 other funds in the amount of $445,107,802 were obligated at the time of the award. Estimated completion date is Sept. 28, 2015. Work will be performed in Kuwait. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity.
SAIC, McLean, Virginia, was awarded an $89,526,485 cost-plus-incentive fee, incrementally- funded contract with options, for management and technical support for high performance computing services, capabilities, infrastructure, and technologies. Work will be performed at Wright-Patterson Air Force Base, Ohio; Aberdeen Proving Ground, Maryland; Stennis Space Center, Mississippi; Vicksburg, Mississippi; Kihei, Hawaii; Lorton, Virginia; and McLean, Virginia, with an estimated completion date of July 28, 2019. Bids were solicited via the Internet with four received. Research, development, testing and evaluation fiscal 2013 ($18,230,430) and fiscal 2014 ($5,770,000) funds are being obligated at the time of the award. U.S. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-14-F-0103).
Jacobs Technology Inc., Tullahoma, Tennessee, was awarded a $63,375,000 time and materials contract with options for support services to the Aberdeen Test Center, Aberdeen Proving Ground, Maryland. Funding and work location will be determined with each order with an estimated completion date of July 31, 2015. One bid was solicited with one received. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W91CRB-14-D-0017).
Northrop Grumman, Herndon, Virginia, was awarded an $11,410,533 modification (P00022) to contract W91WAW-12-C-0047 for the oversight of all information technology requirements for developing, administering, maintaining, and enhancing automated data and information systems. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,410,328 were obligated at the time of the award. Estimated completion date is July 28, 2015. Work will be performed in Washington, District of Columbia. Army Contracting Command, Aberdeen, Maryland, is the contracting activity.
Accenture Federal Services, Reston, Virginia, was awarded an $11,112,066 modification (D00353) to contract N00104-04-A-ZF12 for general fund enterprise business systems onsite support and change requests. Fiscal 2014 other procurement (Army) funds in the amount of $1,200,000 were obligated at the time of the award. Estimated completion date is June 26, 2015. Work will be performed in Alexandria, Virginia. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity.
FLIR Systems, Inc., Wilsonville, Oregon, was awarded a $7,171,955 firm-fixed-price, foreign military sales (Austria) contract for seven Star Safire 380-High Definition Thermal Imaging Systems, with accessories, training and extended warranty. Work will be performed in Wilsonville, Oregon, with an estimated completion date of Aug. 1, 2016. One bid was solicited with one received. Fiscal 2014 other procurement funds in the amount of $7,151,174 are being obligated at the time of the award. Army Contracting Command, Aberdeen Proving Ground, Maryland, is the contracting activity (W15P7T-14-C-D058).
AIR FORCE
Herman Construction Group, Inc., San Diego, California (FA4887-14-D-0002); Rore, Inc., San Diego, California (FA4887-14-D-0003); M & M, Tempe, Arizona (FA4887-14-D-0004); and Premier Civil Construction, Chandler, Arizona (FA4887-14-D-0005), have been awarded a ceiling $95,000,000 multiple-award, firm-fixed-price, indefinite-delivery/indefinite-quantity contract with a minimum guarantee of $2,000. This contracting vehicle will be used to award multi-discipline construction requirements (i.e. civil, mechanical, electrical, demolition, etc.), with additional capability to perform large scale design build projects necessary to support larger requirements at Luke Air Force Base, Arizona. Contractors shall furnish all plant, labor, material, equipment, transportation, and supervision necessary to accomplish each task order in accordance with the contract, specifications, and additional terms and conditions. The location of performance is to be determined per each task order, but will be limited to Luke Air Force Base, Arizona; Fort Tuthill, Arizona; and Gila Bend Air Force Auxiliary Field, Arizona, and work is expected to be completed by July 31, 2015, for the base year, and a maximum time period to fulfill orders by July 31, 2019. These awards are the result of an 8(a) competitive acquisition and 25 offers were received. Fiscal 2014 operations and maintenance funds for task orders will be used during the base year. 56 Contracting Squadron/LGCB, Luke Air Force Base, Arizona, is the contracting activity.
Arcadis U.S., Inc., Highlands Ranch, Colorado, has been awarded a $27,055,427 firm-fixed-price contract for performance-based remediation (PBR). The work includes a full range of construction and engineering activities necessary for investigation, design, remedial action, remedial construction, and environmental remediation activities to achieve minimum performance objectives and stretch goals and support progress to site closeout at 107 Installation Restoration Program sites under this PBR effort. Work will be performed at Vandenberg Air Force Base, California, and is expected to be completed July 28, 2024. This award is a result of a competitive acquisition on FedBizOpps and three proposals were received. Fiscal 2014 Air Force defense environmental restoration account funds in the amount of $27,055,427 are being obligated at time of award. 772d Enterprise Sourcing Squadron/PKB, Joint Base San Antonio, Lackland, San Antonio, Texas, is the contracting activity (FA8903-14-C-0010).
Edaptive Computing Inc.,* Dayton, Ohio, has been awarded a ceiling $20,000,000, indefinite-delivery/indefinite-quantity contract for the Large Aircraft Infrared Countermeasures (LAIRCM) Program Office in evaluating and analyzing its acquisition, logistics, and sustainment operations to optimize their performance. The effort will encompass traditional study and analysis techniques as well as quantitative and model-based techniques for improving analysis and decision support. Work will be performed at Dayton, Ohio, and is expected to be completed by July 2019. This award is the result of a successful, competitive technology advancement effort; it is the third phase of a Small Business Innovative Research (SBIR) effort. Fiscal 2014 research and development funds in the amount of $496,000 will be obligated at time of award and $2,600,000 will be obligated incrementally during performance of delivery order 0001. Air Force Life Cycle Management Center, Aircraft Survivability Division, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-14-D-6456).
NAVY
EJB Facilities Services, Arlington, Virginia, is being awarded a $12,122,891 modification under a previously awarded firm-fixed-price, indefinite-delivery indefinite-quantity contract (N44255-05-D-5103) to exercise option 8c for base operations support at various installations in the Naval Facilities Engineering Command (NAVFAC) Northwest area of responsibility (AOR). The work to be performed provides for, but is not limited to, all management and administration, visual services, security, housing, facilities support (excluding grounds and janitorial services), pavement clearance, utilities, base support vehicles and equipment, and environmental services to provide base operations support services. The total contract amount after exercise of this modification will be $583,089,713. Work will be performed at various installations in the NAVFAC Northwest AOR including but not limited to: Washington (95 percent); Alaska (1 percent); Idaho (1 percent); Montana (1 percent); Oregon (1 percent); and Wyoming (1 percent). Work for this option period is expected to be completed September 2014. Fiscal 2014 operation and maintenance (Navy); fiscal 2014 Navy working capital funds; fiscal 2014 defense health program funds; and fiscal 2014 non-appropriated funds in the amount of $7,645,688 are obligated on this award and will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Northwest, Silverdale, Washington, is the contracting activity.
Science Applications International Corp., McLean, Virginia, is being awarded a $10,437,025 modification under a previously awarded indefinite-delivery/indefinite-quantity contract (N00033-10-D-6506) with firm-fixed-price and/or firm, fixed-price, level-of-effort task orders for information technology ashore operations support services in support of Military Sealift Command’s Command, Control, Communications and Computer Systems directorate. Work will be performed in Washington, District of Columbia (74.7 percent); Norfolk, Virginia (16.9 percent); San Diego, California (5.9 percent); Pensacola, Florida (2.4 percent); Scott Air Force Base, Illinois (less than 1 percent); Yokohama, Japan (less than 1 percent); and Naples, Italy (less than 1 percent), and is expected to be completed by July 2015. Fiscal 2015 working capital funds in the amount of $10,437,025 will be obligated on individual task orders subject to the availability of fiscal 2015 funds, and will not expire at the end of that fiscal year. The U.S. Navy’s Military Sealift Command, Washington, District of Columbia, is the contracting activity (N00033-10-D-6506).
DEFENSE LOGISTICS AGENCY
The Boeing Company, St. Louis, Missouri, has been awarded a maximum $6,969,157 firm-fixed-price contract for Radome (structural, weatherproof enclosures for radar antenna protection). This contract was a sole-source acquisition. This is a three-year base contract with no option periods. Location of performance is Missouri with an Aug. 28, 2017, performance completion date. Using military service is Navy. Type of appropriation is fiscal 2014 through fiscal 2017 Navy working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania (SPE4A1-14-G-0007-THBJ).
Golden State Medical Supply,* Camarillo, California, has been awarded a maximum $6,590,033 firm-fixed-price contract for medical supplies. This contract was a competitive acquisition with three offers received. This is a four-year base contract with four one-year option periods. Locations of performance are California and West Virginia, with a July 27, 2015, performance completion date. Using services are eligible military and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D2-14-D-0005).
*Small business

PERU'S INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 

Peru's Independence Day

Press Statement
John Kerry

Secretary of State
Washington, DC
July 28, 2014


On behalf of President Obama and the people of the United States, I send best wishes to the people of Peru as you celebrate your independence July 28.

The United States has called Peru a friend since soon after José de San Martín crossed the Andes and swept into Lima to proclaim freedom and independence for all Peruvians.
Today, our two countries are working to address the challenges and opportunities of the 21st century. Our joint efforts promote economic prosperity, education, science and technology, environmental protection, social inclusion, and citizen security.

We celebrate the 5th anniversary of the U.S.-Peru Trade Promotion Agreement this year as well. It has been an unqualified success that has bolstered the economic prosperity of both our nations.

Peru and the United States share a long tradition of academic and cultural exchange and partnership. Nearly 1,000 Peruvians have pursued degrees in the United States through funding from the William J. Fulbright Fellowship program.

Our cooperation on environmental protection helps to preserve Peru’s incredible biodiversity and fight climate change across the globe. We look forward to working with Peru as it prepares to host the December 2014 “20th Conference of Parties” meeting (COP-20) under the United Nations Framework Convention on Climate Change.

On this day of celebration, the United States looks forward to continued friendship and successful collaboration with Peru in the years to come.

NASA VIDEO: APOLLO 11 CELEBRATION, NEXT GIANT LEAP

ADM. GEENERT SAYS CHINA RAPIDLY MODERNIZING NAVY

FROM:  U.S. DEFENSE DEPARTMENT 
Greenert: China Moving Quickly to Modernize Navy
By Claudette Roulo
DoD News, Defense Media Activity

ASPEN, Colo., July 26, 2014 – China’s naval modernization program is moving at a rapid pace, the chief of U.S. naval operations said here yesterday.
Navy Adm. Jonathan W. Greenert spoke at the Aspen Security Forum on his way home from meetings with his Chinese counterpart, Adm. Wu Shengli.

China is participating in this year’s Rim of the Pacific Exercises. “They're doing about average compared to all the other fleets, which is interesting,” Greenert said. “… Average is good -- it's good enough; it's not what they thought. It's a little difficult, multinational exercises.”

China expressed interest in continuing to develop the military-to-military relationship through exercises and personnel exchanges, he said.

The two leaders discussed the need for developing maritime protocols for their navies and civilian mariners, the admiral said.

“It was a good visit, it was frank, it was respectful,” he said.

Greenert said he was the first U.S. service member to be allowed aboard China’s first aircraft carrier, the Liaoning, something he wasn’t sure would happen on this trip. He also met with some of the carrier’s crew.

The Liaoning is a refitted Russian aircraft carrier.

“We went, not stem-to-stern, but throughout a lot of it,” Greenert said. “Then we went to a submarine. Then we went to a destroyer -- about a 2,000-ton ... almost the length of a football field -- and then on one of their patrol craft.”
The Chinese aircraft carrier is “very Russian,” Greenert said.

“That means it's big, it's heavy and it's onerous,” he explained.

But, the admiral said, the Chinese have completely upgraded their carrier. They stripped out all the old Russian-style equipment “and everything they put in is very modern and Chinese.”

The carrier is still being worked on at a shipyard in Dalian, in northeast China, he said.

China will build another carrier like the Liaoning relatively soon, Greenert said.
“It'll look just like this one, they said -- ski ramp, about the same tonnage, 65,000-70,000 tons. … They're moving on a pace that is extraordinary,” the admiral said.
Greenert said Wu told him the ship is the basis for research and development of what will be a blue-water, aircraft-carrier-focused navy.

"I think that he may be wanting to do this on his watch,” he said. “He's got about four-and-a-half more years to ... have this carrier out to sea like we do, with a series of destroyers around it and the ability to launch and recover aircraft in the tens and maybe twenties. But I'm not overly concerned right now, they have a lot of work to do."

FORMER U.S. HOUSE OFFICE MANAGER PLEADS GUILTY FOR PADDING OWN SALARY, TRAVEL EXPENSES

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, July 25, 2014
Former U.S. House of Representatives Employee Pleads Guilty to Theft of Government Property

Brian Prokes, 28, a former office manager in the U.S. House of Representatives, pleaded guilty today for causing the House of Representatives to pay more than $19,000 in excess salary and unauthorized travel expenses, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.

According to court documents, Prokes worked as the office manager for a U.S. Congressman.   Prokes’s responsibilities included transmitting salary and bonus information to the House of Representatives’ Office of Payroll and Benefits in order to adjust the pay of employees in the Congressman’s office.   Prokes admitted that, between April 2012 and March 2013, he submitted unauthorized paperwork to the Office of Payroll and Benefits to pay himself larger salary and bonus than he had been approved to receive.

In addition, Prokes admitted that, between February 2012 and December 2012, he charged unauthorized, personal travel expenses for himself and an acquaintance to a government credit card used by the Congressman’s office.   The excess salary payments and unauthorized travel expenses amounted to more than $19,000.

Prokes, of Atlanta, Georgia, is scheduled to be sentenced on Oct. 14, 2014, before U.S. District Judge Rudolph Contreras in the District of Columbia.

This case was investigated by the FBI.   This case is being prosecuted by Trial Attorneys Kevin O. Driscoll and Sean F. Mulryne of the Criminal Division’s Public Integrity Section.

BNP PARIBAS TO PAY $80 MILLION JUDGEMENT FOR FALSE CLAIMS TO USDA

FROM:  U.S. JUSTICE DEPARTMENT 
Thursday, July 24, 2014
$80 Million Judgment Entered Against BNP Paribas for False Claims to the U.S. Department of Agriculture

The Department of Justice announced today that an $80 million False Claims Act judgment was entered against BNP Paribas for submitting false claims for payment guarantees issued by the U.S. Department of Agriculture (USDA).  BNP Paribas is a global financial institution headquartered in Paris.    

 “We will not tolerate the misuse of taxpayer funded programs designed to help American businesses,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  “Companies that abuse these programs will be held accountable.”

The United States filed a lawsuit against BNP Paribas in connection with its receipt of payment guarantees under USDA’s Supplier Credit Guarantee (SCG) Program.  The program provided payment guarantees to U.S.-based exporters for their sales of grain and other agricultural commodities to importers in foreign countries.  The program encouraged American exporters to sell American agricultural commodities to foreign importers and covered part of the losses if the foreign importers failed to pay.  The SCG Program regulations provided that U.S. exporters were ineligible to participate in the SCG Program if the exporter and foreign importer were under common ownership or control.
         
The judgment entered by the court resolves the government’s allegations that, from 1998 to 2005, BNP Paribas participated in a sustained scheme to defraud the SCG Program.  In furtherance of the scheme, American exporters and Mexican importers who were under common control improperly obtained SCG Program export credit guarantees for transactions between the affiliated exporters and importers.  In some cases, the underlying transactions were shams and did not involve any real shipment of grain.  BNP Paribas accepted assignment of the credit guarantees from the American exporters, even though it knew that the affiliated exporters and importers were ineligible for SCG Program financing, and a BNP Paribas vice-president, Jerry Cruz, received bribes from the exporters.  Beginning in April 2005, when the Mexican importers began defaulting on their payment obligations, BNP Paribas submitted claims to the USDA for the resulting losses.

On Jan. 20, 2012, Cruz pleaded guilty to conspiracy to commit bank fraud, mail fraud and wire fraud, and conspiracy to commit money laundering.  

“I would like to thank the Department of Justice and the USDA General Counsel’s office for their collaboration in recovering $80 million under this judgment,” said Administrator of USDA’s Foreign Agricultural Service Phil Karsting.  “This illustrates the importance USDA and this administration places on protecting the integrity of our programs.”

The resolution of this matter was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the USDA, the USDA Office of Inspector General, the U.S. Postal Inspection Service and the Internal Revenue Service Criminal Investigation.

WHITE HOUSE VIDEO: WEST WING WEEK 07/25/14

Sunday, July 27, 2014

THE F-35 LIGHTNING II: U.S. DEFENSE DEPARTMENTS NEWEST FIGHTER PROGRAM

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Defense Secretary Chuck Hagel speaks with reporters after touring the 33rd Fighter Wing and the F-35 Lightning II integrated training center at Eglin Air Force Base, Fla., July 10, 2014. During his visit, Hagel met with Eglin service members for 45 minutes to praise their work in the Defense Department’s newest fighter program. U.S. Air Force photo by Samuel King Jr.  

Kendall: F-35 Rollout Marks U.S.-Australia Partnership Milestone
By Cheryl Pellerin
DoD News, Defense Media Activity

WASHINGTON, July 25, 2014 – The official rollout of the first two F-35 Lightning II joint strike fighter aircraft for the Royal Australian Air Force is a milestone in the U.S.-Australia partnership, the undersecretary of defense for acquisition, technology and logistics said yesterday.

Frank Kendall spoke during a ceremony held on the flightline at the Lockheed Martin aviation facility in Fort Worth, Texas.

"We join Australia, as one of our original partners, to celebrate this delivery and the numerous Australian contributions to the joint strike fighter program," Kendall said.

"For both our nations," he added, "this program represents an exponential leap in capability on the cutting edge of technology, and an integral component of our ongoing joint commitment to stability and peace in the Asia-Pacific."
The two F-35A aircraft, known as AU-1 and AU-2, are scheduled for delivery to the Australian air force later this year. They will be based at Luke Air Force Base in Arizona and used for Australian and partner-country pilot training beginning next year. The first F-35s to operate in Australia are expected by 2017.
The F-35 Lightning II program consists of a series of single-seat, single-engine, multirole fighters designed with stealth capability to perform ground attack, reconnaissance and air defense missions. The three variants of the F-35 include the F-35A, a conventional takeoff and landing variant; the F-35B, a short take-off and vertical-landing variant; and the F-35C, a carrier-based variant.
Joining Kendall as members of the official party were Australian Finance Minister and Senator Matthias Cormann, Air Marshal Geoff Brown, chief of the Royal Australian Air Force, and Lockheed Martin CEO Marillyn Hewson.
Kendall told an audience of about 300 that it takes a community to accomplish something as significant as the F-35.

"In this case it takes a community of nations, it takes a community of companies, it takes a community of militaries and departments within the U.S. and around the world, and all of our partners. It takes a community of industry to come together," the undersecretary added. "This aircraft is a testimony to our ability to do that."
Kendall described a time two decades ago when he served at the Pentagon as director of tactical warfare programs under then-Deputy Defense Secretary John M. Deutch.

"John got a number of us together one day,” he recalled, “and said that he'd decided [to] start a new technology program called the joint strike technology program that would lead to a common set of aircraft, of which there would be three variants: one for the Marine Corps, one for the Air Force and one for the Navy."
Kendall said he didn't think it would work, because the communities would never agree on what to do, or stay together on the agreement long enough to develop three such aircraft.
"Now if John had said, 'Also, we're going to make it a little more interesting by bringing on eight international partners at the same time,' I would have just thrown my hands up in the air and said, 'Forget about it.'" he added.

Admitting he was wrong, Kendall said the “fundamental reason [for the program’s success] is the capability that we've been able to develop and the cutting-edge capability we're offering to all the partners, all the services, all the nations involved in the F-35."

The program's eight partner nations and two Foreign Military Sales countries already have announced plans to procure nearly 700 F-35s. The program of record outlines the acquisition of more than 3,000 aircraft, defense officials say.
Many partners have ordered their first aircraft, and pilots and maintainers from the United Kingdom and the Netherlands have taken delivery of their first F-35 aircraft at Eglin Air Force Base in Florida, where they're training with U.S. counterparts.

The communities supporting the F-35 have stayed together because of common values and shared interests, Kendall said, and because they are committed to having next-generation capability and a multirole fighter that all partners need and will be able to depend on for decades.

In his remarks, Kendall explored the nature of the F-35, which has overcome many issues since its first flight in 2006, by discussing the 1981 nonfiction book he's reading, author

Tracy Kidder's “The Soul of a New Machine.”

The Pulitzer Prize- and American Book Award-winning story is an account of the efforts of a team of researchers at now-defunct Data General, one of the first late-1960s microcomputer firms, to create a new 32-bit superminicomputer.
"At the time, Data General was in trouble,” Kendall said. “A company called Digital Equipment Corp. had introduced something called the VAX. They were cutting-edge in their day, and Data General had to respond to this threat, so they launched a crash program to develop a new design."
Telling the story, Kendall explained the point in the book he considers relevant today.

"The program manager, the chief designer for Data General, realized the computer he was building was too complex to be understood by a single individual," the undersecretary said. But the designer realized that no single person could possibly grasp all the complexity involved in the design they were creating, he added, and the designer had to trust many others to design their parts successfully and bring the machine together.

"It's that complexity that led to a very successful product, and they were successful at the time," Kendall said. "It's that complexity that characterizes the product behind me," referring to a gleaming new F-35.

During one of Kendall's first office calls several years ago with then-Defense Secretary Leon E. Panetta, the undersecretary recalled, "[Panetta] said, 'Frank, why can't we make more things like the [mine resistant, ambush-protected vehicle]? Why is the F-35 taking so long and costing so much?'

"My answer was one word," Kendall said. "Complexity."

The undersecretary listed several of the factors that make the F-35 so complex: "Millions of lines of code, an incredibly integrated design that brings together stealth, a number of characteristics, very advanced sensors, advanced radars, advanced [infrared] sensors, incredibly capable electronic warfare capability, integration of weapons and integration across the force of multiple aircraft and multiple sensors to work together as a team."

All of that integrated technology is unprecedented, he said. "You're talking about something that no one has ever done before, which will put us all a decade or more ahead of anybody else out there. And [it will] keep us ahead for some time to come as we continue to upgrade the F-35," he added.

Such complexity has led to the cost and the time it has taken to design and build the F-35, Kendall said, but also to the capability it represents. “That's why we're all still together,” he added. “That's why all the communities I talked about have stayed with this aircraft."

As he ended his remarks, Kendall asked for a round of applause for the engineers and production workers who made the F-35 possible.

REMARKS BY SECRETARY, TURKISH FOREIGN MINISTER DAVUTOGLU AND QATARI FOREIGN MINISTER AL-ATTIYAH

FROM:  THE STATE DEPARTMENT 

Remarks With Turkish Foreign Minister Ahmet Davutoglu and Qatari Foreign Minister Khalid al-Attiyah After Their Meeting

Remarks
John Kerry
Secretary of State
U.S. Ambassador's Residence
Paris, France
July 26, 2014


SECRETARY KERRY: I’m delighted to have a chance to be able to welcome my colleagues, the Foreign Minister of Turkey Ahmet Davutoglu and Foreign Minister of Qatar Khalid Attiyah, here to the American Embassy in Paris. And I’m going to say a couple of words about what we’ve been working on with respect to the situation in Gaza in a moment.

But first, I want to try to clarify something and announce, to some degree, for people who haven’t heard, news regarding our situation in Libya. The United States, together with other countries – one of them Turkey – have decided that because of the free-wheeling militia violence that is taking place in Tripoli, and particularly in our case around – a lot of the violence is around our embassy but not on the embassy. But nevertheless is presents a very real risk to our personnel. So we are suspending our current diplomatic activities at the embassy – not closing the embassy, but suspending the activities. And we have moved people on ground to Tunisia where they will then disperse to other places where we will continue our diplomatic activities in Libya.

We are deeply committed and remain committed to the diplomatic process in Libya. Our envoy will continue to be engaged with the British envoy and other envoys. And we will continue to try to build out of the election the legitimacy of the government formation and the efforts to end the violence. We call on all Libyans to engage in the political process and to come together in order to avoid the violence.

So many people died and gave so much effort to the birth of the new Libya, and we’re very, very hopeful that together all those people will recognize that the current course of violence will only bring chaos and possibly longer term difficulties. We will return the moment the security situation permits us to do so, but given the situation, as with Turkey – I think they moved some 700 people or so out – we want to take every precaution to protect our folks.

Now I want to express my appreciation for the enormous amount of work that both Foreign Minister Attiyah, Foreign Minister Davutolgu engaged in the last days to help bring about the short-term cease-fire that we all hope is going to be extended into a longer term cease-fire where people can get together and work on the way forward for a sustainable cease-fire, a longer-term effort to work out the difficult issues between the state of Israel and the Palestinian factions.

We’re very hopeful that that can happen, but I will tell you the progress that we’ve made was significantly contributed to by many people, and we’re grateful obviously for the Egyptian initiative, for the Israeli efforts initially, but also this particular effort now has been significantly assisted by the input of Qatar, the input of Turkey, and the willingness of these foreign ministers to work hard even though they were at a distance, and to engage directly with some of the Palestinian factions in order to try to help get us where we are today. They’re both committed to trying to work to continue further, and we very much appreciate that.

If you want to say something, Ahmet.

FOREIGN MINISTER DAVUTOGLU: Thank you, John. It’s a great pleasure to meet again, but this time we are meeting for a very tragic development in Gaza. The humanitarian situation in Gaza is terrible. I want to extend condolences to all those who lost their lives in this crisis and especially in these holidays approaching – Ramadan, Eid. We intensified our efforts to agree on a cease-fire; in less than 10 days all of our teams have working last two – three days. We worked in close contact with the – with Secretary Kerry and my dear colleague, Minister Attiyah. As a team, we worked together. Yesterday we had several telephone conversations, consultations, and today we are continuing here.

We wish to have a sustainable cease-fire, which we approached very closely until last month. Unfortunately, it was rejected by Israeli side – but still we are working very hard to reach the (inaudible), hopefully with the great effort – we all appreciate Secretary Kerry’s effort.
Now we have a short-term cease-fire, which is really a success of his effort, and supported by all of us. And I want to assure all the parties and, of course, both of our colleagues, allies, that Turkey will be working very hard to stop this bloodshed on the ground, to reach a sustainable cease-fire, and at the end of these efforts, to have two-state solution, which is the real solution for all these disasters and bloodshed.

Again, I want to express my thanks to my dear colleagues, Secretary Kerry and Minister Attiyah, for this joint cooperation and all those who contributed to this process, to this short-term cease-fire. And as a team, we will continue to work – Egyptian – Egypt, Turkey, Qatar, United States, and Israel and Palestinian groups – (inaudible) and Hamas, all of us split – Palestinian Administration – at the end of the day, our goal is to achieve sustainable cease-fire as early as possible.

Thank you. Thank you.

SECRETARY KERRY: Thank you. You have any --

FOREIGN MINISTER AL-ATTIYAH: Yes.

SECRETARY KERRY: Okay.

FOREIGN MINISTER AL-ATTIYAH: And I’d like again also to thank John and Dr. Ahmet for the effort of the past days to come to such agreement on humanitarian cease-fire. As from now, I won’t add more of what John and Dr. Ahmet says. For now, we will be working hardly to come to a point where we have cease-fire and the lift of blockade. The tragic situation of – was I think deserve now to have a free movement of goods, a free movement of trade, that they deserve now to have their own port – their sea port, so they can trade in and out, even though if it’s under the international supervision. But I think the time now comes that we have to have long-term solution for the people of Gaza. They’ve been suffering for a long time, and with the help of Secretary Kerry and Brother Ahmet and all the other international player who their input will be positive on this. I’m sure you will come to a stage where we can get a cease-fire and a lift of blockade in Gaza. Thank you.

SECRETARY KERRY: So before we end, I want to just pick up on a couple of themes expressed by both the foreign ministers and on what I said last night. And I want anybody who cares about the Palestinian side of these issues to listen, and I want everybody in Israel to understand: we clearly understand – I understand that Palestinians need to live with dignity, with some – freedom, with goods that can come in and out, and they need a life that is free from the current restraints that they feel on a daily basis, and obviously free from violence. But at the same time, Israelis need to live free from rockets and from tunnels that threaten them, and every conversation we’ve had embraces a discussion about these competing interests that are real for both. And so we need to have a solution that works at this.

I understand that Israel can’t have a cease-fire in which they are not able to – that somehow the tunnels are never going to be dealt with. The tunnels have to be dealt with. We understand that; we’re working at that. By the same token, the Palestinians can’t have a cease-fire in which they think the status quo is going to stay and they’re not going to have the ability to be able to begin to live and breathe more freely and move within the crossings and begin to have goods and services that come in from outside. These are important considerations. Each side has powerful feelings about the history and why they are where they are. And what we’re going to work at is how do we break through that so that the needs are met and we have an ability to provide security for Israel and a future – economic and social and otherwise development for the Palestinians. That’s what this is about.

Thank you all very much.

QUESTION: (Inaudible.) Secretary Kerry, are you going back to (inaudible)?

SECRETARY KERRY: No.

WHITE HOUSE VIDEO: 7/25/14: WHITE HOUSE PRESS BRIEFING

SEC WARNS INVESTORS ABOUT FRAUDSTERS USING SOCIAL MEDIA TO MANIPULATE STOCK PRICES

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The U.S. Securities and Exchange Commission’s (SEC) Office of Investor Education and Advocacy (“OIEA”) is issuing this Investor Alert to warn investors about fraudsters who may attempt to manipulate share prices by using social media to spread false or misleading information about stocks.

Social media and the Internet in general have become important tools for investors. Investors may use social media to research particular stocks, look up background information on a broker-dealer or investment adviser, find guidance on investing strategies, receive up-to-date news, and discuss the markets with others.

While social media can provide many benefits for investors, it also presents opportunities for fraudsters. Through social media, fraudsters can spread false or misleading information about a stock to large numbers of people with minimum effort and at a relatively low cost. They can also conceal their true identities by acting anonymously or even impersonating credible sources of market information.

One way fraudsters may exploit social media is to engage in a market manipulation, such as spreading false and misleading information about a company to affect the stock’s share price. Wrongdoers may perpetuate stock rumors on social media, as well as on online bulletin boards and in Internet chat rooms.

The false or misleading rumors may be positive or negative. For example, in a “pump-and-dump” scheme, promoters “pump” up the stock price by spreading positive rumors that incite a buying frenzy and they quickly “dump” their own shares before the hype ends. Typically, after the promoters profit from their sales, the stock price drops and the remaining investors lose money. In other instances, fraudsters start negative rumors urging investors to sell their shares so that the stock price plummets and the fraudsters take advantage of buying shares at the artificially low price.

BEETLE INSPIRES NEW MATERIALS DEVELOPED TO TRAP AND CHANNEL SMALL AMOUNTS OF FLUIDS

FROM:  NATIONAL SCIENCE FOUNDATION 
Quenching the world's water and energy crises, one tiny droplet at a time

In pursuit of beetle biomimicry, NSF-funded engineers develop new, textured materials to trap and channel small amounts of liquid

In the Namib Desert of Africa, the fog-filled morning wind carries the drinking water for a beetle called the Stenocara.

Tiny droplets collect on the beetle's bumpy back. The areas between the bumps are covered in a waxy substance that makes them water-repellant, or hydrophobic (water-fearing). Water accumulates on the water-loving, or hydrophilic, bumps, forming droplets that eventually grow too big to stay put, then roll down the waxy surface.

The beetle slakes its thirst by tilting its back end up and sipping from the accumulated droplets that fall into its mouth. Incredibly, the beetle gathers enough water through this method to drink 12 percent of its body weight each day.

More than a decade ago, news of this creature's efficient water collection system inspired engineers to try and reproduce these surfaces in the lab.

Small-scale advances in fluid physics, materials engineering and nanoscience since that time have brought them close to succeeding.

These tiny developments, however, have the prospect to lead to macro-scale changes. Understanding how liquids interact with different materials can lead to more efficient, inexpensive processes and products, and might even lead to airplane wings impervious to ice and self-cleaning windows.

Beetle bumps in the lab

Using various methods to create intricately patterned surfaces, engineers can make materials that closely mimic the beetle's back.

"Ten years ago no one had the ability to pattern surfaces like this at the nanoscale," says Sumanta Acharya, a National Science Foundation (NSF) program director. "We observed naturally hydrophobic surfaces like the lotus leaf for decades. But even if we understood it, what could we do about it?"

What researchers have done is create surfaces that so excel at repelling or attracting water they've added a "super" at the front of their description: superhydrophobic or superhydrophilic.

Many superhydrophobic surfaces created by chemical coatings are already in the marketplace (water-repellant shoes! shirts! iPhones!).

However, many researchers focus on materials with physical elements that make them superhydrophobic.

These materials have micro or nano-sized pillars, poles or other structures that alter the angles at which water droplets contact their surface. These contact angles determine whether a water droplet beads up like a teeny crystal ball or relaxes a bit and rests on the surface like a spilled milkshake.

By varying the layout of these surfaces, researchers can now trap, direct and repulse small amounts of water for a variety of new purposes.

"We can now do things with fluids we only imagined before," says mechanical engineer Constantine Megaridis at the University of Illinois at Chicago. Megaridis and his team have two NSF grants from the Engineering Directorate's Division of Chemical, Bioengineering, Environmental and Transport Systems.

"The developments have enabled us to create devices -- devices with the potential to help humanity -- that do things much better than have ever been done before," he says.

Megaridis has used his beetle-inspired designs to put precise, textured patterns on inexpensive materials, making microfluidic circuits.

Plastic strips with superhydrophilic centers and superhydrophobic surroundings that combine or separate fluids have the potential to serve as platforms for diagnostic tests (watch "The ride of the water droplets").

"Imagine you want to bring drops of blood or water or any liquid to a certain location," Megaridis explains. "Just like a highway, the road is the strip for the liquid to travel down, and it ends up collecting in a fluid storage tank on the surface." The storage tank could hold a reactive agent. Medical personnel could use the disposable strips to field-test water samples for E. coli, for example.

Devices such as these -- created in engineering labs -- are now working their way to the marketplace.

Water, water in the air

NBD Nanotechnologies, a Boston-based company funded by NSF's Small Business Technology Transfer program, aims to scale up the durability and functionality of surface coatings for industrial use.

One of the most impactful applications for superhydrophobic or hydrophobic research is improved condensation efficiency. When water vapor condenses to a liquid, it typically forms a film. That film is a barrier between the vapor and the surface, making it more difficult for other droplets to form. If that film can be prevented by whisking away droplets immediately after they condense--say, with a superhydrophobic surface--the rate of condensation increases.

Condensers are everywhere. They're in your refrigerator, car and air conditioner. More efficient condensation would let all this equipment function with less energy. Better efficiency is especially important in places where large-scale cooling is paramount, such as power plants.

"NBD makes more durable coatings that span large surface areas," says NBD Nanotechnologies senior scientist Sara Beaini. "Durability is an important factor, because when you're working on the micro level you depend on having a pristine surface structure. Any mechanical or chemical abrasion that distorts the surface structures can significantly reduce or eliminate the advantageous surface properties quickly."

NBD, which you might have guessed stands for Namib Beetle Design, has partnered with Megaridis and others to improve durability, the main challenge in commercializing superhydrophobic research. Power plant condensers with durable hydrophobic or superhydrophobic coatings could be more efficient. And with water and energy shortages looming, partnerships such as theirs that help to transfer this breakthrough from the lab to the outside world are increasingly valuable.

Other groups have applied hydrophobic patterning methods in clever ways.

Kripa Varanasi, mechanical engineer at MIT and NSF CAREER awardee, has applied superhydrophobic coatings to metal, ceramics and glass, including the insides of ketchup bottles. Julie Crockett and Daniel Maynes at Brigham Young University developed extreme waterproofing by etching microscopic ridges or posts onto CD-sized wafers.

With all these cross-country efforts, many are optimistic for a future where people in dry areas can harvest fresh water from a morning wind, and lower their energy needs dramatically.

"If someone comes up with a really cheap solution, then applications are waiting," said Rajesh Mehta, NSF Small Business Innovation Research/Small Business Technology Transfer program director.
-- Sarah Bates
Investigators
Constantine Megaridis
Sara Beaini
Julie Crockett
Kripa Varanasi
Brent Webb
R Daniel Maynes
Related Institutions/Organizations
University of Illinois at Chicago
Iowa State University
Brigham Young University
NBD Nanotechnologies, Inc.
Massachusetts Institute of Technology

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