U.S. STRATEGIC COMMANDER DISCUSSES CHALLENGES

FROM:  U.S. DEFENSE DEPARTMENT

Stratcom Chief Outlines Deterrence Challenges

By Terri Moon Cronk

DoD News, Defense Media Activity

WASHINGTON, July 11, 2014 – Strategic deterrence in the 21st century is complicated, challenging and vastly different from that of the Cold War, the commander of U.S. Strategic Command said yesterday.

Navy Adm. Cecil D. Haney said extremist organizations, significant regional unrest, protracted conflicts, budgetary stresses and competition for natural resources could have strategic implications for the United States and the world.
“While terrorism remains the most direct threat to our nation -- particularly weapons of mass destruction -- we are also dealing in advances in state and nonstate military capabilities across air, sea, land and space domains, and cyber security,” the admiral told an audience at the State Department’s George Marshall Conference Center.

Some nations continue to invest in long-term modernization with strategic capabilities, he added, some are replacing their older systems, while others are modernizing based on their perceived need in the geopolitical situation. He cited India, Pakistan, Russia, Iran, North Korea and China as examples of nations developing modern military capabilities.

When Russia recently invaded Ukraine and overtook Crimea, Haney said, Russian troops also exercised “their strategic ability, not just their conventional capabilities.” On May 8, he said, “Russia conducted a major strategic force exercise involving significant nuclear forces and associated command control six months from the last one. And I don’t mean just moving it around. I mean demonstrating firing each part of their associated arsenal.”

While adversarial threats grow against the United States, the nation still retains the strategic advantage, he said, although potential adversaries are moving quickly in their development of destructive capabilities.

“While we have improved and increased our cyberspace capabilities, the worldwide threat is growing in sophistication in a number of state and nonstate actors,” he said. “As we monitor developments, we must not lose sight of nation states and non-nation-state actors [that] continue to have goals of obtaining proliferation,” Haney said. “As long as these threats remain, so too does the value of our strategic capabilities to deter these threats.”

The Stratcom commander emphasized the importance of the U.S. nuclear triad.
“Each element of the nuclear triad has unique and complementary attributes in strategic deterrence,” Haney said. “As we look at ballistic missiles and air response capabilities to the survivable leg of our submarine capability to the heavy bombers, the real key is integration of all three that make a difference in the deterrence equation for any country that would want to take us on. And it works.”
Haney pointed out that while the United States has sought to have a world free of nuclear weapons, those weapons still have a role in strategic deterrence and in the foundational force, “until we can get rid of them.”

“We must continue to lean forward with arms-control agreements while continuing to provide assurance and deterrence,” he said. “As a nation, we must create strategies and policies to deal with this diverse, multidisciplinary-problem world we live in, because we have to deliver strategic stability and effective solutions in a conscious manner, given today’s fiscal environment.”

Haney urged students in the audience to challenge traditional thinking.

“Successful 21st-century strategic deterrence lies in our understanding that this is not about a Cold War approach,” he said. “It’s about understanding that deterrence is more than nuclear.”

And while U.S. nuclear weapons are just as salient today as in the past, Haney said, “it’s understanding that what our adversaries are willing to risk requires deep understanding.”

REMARKS BY SECRETARY KERRY AT ECOPARTNERSHIPS SIGNING CEREMONY IN BEIJING, CHINA

FROM:  U.S. STATE DEPARTMENT 

Remarks at EcoPartnerships Signing Ceremony

Remarks

John Kerry

Secretary of State

Great Hall of the People

Beijing, China

July 10, 2014

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Well, State Councilor Yang and all of our ecopartners today who traveled so far in order to sign these landmark agreements, we are delighted to be here. I was sitting here, thinking, listening to the State Councilor -- the amazing journey we have traveled in very few years.
I was in Rio in 1992 for the first Earth Day for the Earth Summit, when we first began to discuss, globally, the challenge of climate change. And even five years ago, when I was in the United States Senate, I would not have imagined that we would have been standing here in Beijing, joining together in this kind of initiative. And the reason we are here is because the science is growing so significantly, and coming back at us not just with the truth of what was predicted, but coming back in greater quantities, faster than anybody predicted.

And so, it is no secret that China and the United States have a very special role to play together in combating climate change. Our words and our actions will set the tone. Either we create the momentum to galvanize global action in order to deal with this, or we risk a global catastrophe. That is the science. You can't be half pregnant on this. If you accept the science, and it tells you what is happening, you have to also listen to the people as they give us warnings about what will happen if we don't take action.

All of us in this room recognize that governments cannot meet this challenge alone. And that is why we are harnessing the ingenuity and the innovation of the private sector, universities, civil society, in order to promote economic growth, energy security, and environmental sustainability. And our EcoPartnerships program is a tremendous jumping-off point to help us do exactly what we need to do in those three objectives.

Some of you here are working on biofuels and battery storage technology. Some of you are focused on reducing air pollution in ports, and promoting low-emission cities, creating city planning that works on sustainability and efficiency, and also developing clean technologies. But all of you are turning a singular challenge into a moment of great opportunity.

The former Speaker of the U.S. House of Representatives, my friend -- I had the privilege of serving with him -- Speaker Tip O'Neill, had a terrific saying, that all politics is local. Well, our ecopartnerships are applying the Tip O'Neill doctrine to climate. If you want to make progress globally, start locally.

And I will just share one example. The Center for Climate Strategies in the United States has been working very closely with the Global Environmental Institute in China in order to develop ideas for reducing greenhouse gas emissions. And the Center has already worked with 36 states in the United States on ways to reduce greenhouse gas emissions, and it is transferring these best practices to Chinese provinces. It is doing so directly. In the next three years, the partnership will develop 30 low-carbon plans across China. And that is exactly how we are going to make the most progress in this fight.

Now, it is easy to get caught up in the conventional wisdom that says no big change is going to be able to happen without big bureaucracies, big government, big decisions. But, frankly, a lot of us have learned in the last 20 years that you've got to begin somewhere.

I still remember participating, back in 1970, in the first Earth Day in the United States of America. On that day, 20 million Americans came out of their homes and demonstrated, because they didn't want to grow up drinking water that came from pollution from local dumps, or from toxic chemical sites, and so forth. We had no Environmental Protection Agency in 1970 in America. We had no laws preventing paint from being used in people's homes or on babies’ cribs that was lead and could do injury, if not death to those children. We had no one that was safeguarding our public drinking water. Polluters were even dumping medical waste directly into the oceans. And by 1970, our rivers were so dirty that, famously, one particular river in one of our states actually caught fire.

The explosion of our activism at that moment in time, on that very first Earth Day, was people-driven, local citizens demanding something better. And that first Earth Day led, ultimately, to the creation of the Environmental Protection Agency, signed into law by Richard Nixon; the passage of the Clean Air Act; the Clean Water Act; the Safe Drinking Water Act; the Marine Mammal Protection Act; the Coastal Zone Management Act; and the EPA, itself. So, I have seen the power of grass roots action, of local efforts becoming magnified and ultimately creating action at a larger, federal level. And I see that same kind of drive, that same kernel of innovation, and of demand for a difference right here, today.

What one country does with respect to the environment impacts the livelihoods of people in other countries. And what we all do to address climate change will now determine the kind of planet that our children and our grandchildren will live on. That is not a question about who wins and who loses. If you tackle climate change and you lead the way to a clean energy future, the fact is it is win-win-win: win for China, win for America, and win for the world. And today, these ecopartnerships are a signal to everybody that we are serious, we are on our way, and we intend to seize the opportunity. Thank you. (Applause.)

SECRETARY KERRY'S REMARKS AT CEO ROUNDTABLE IN BEIJING, CHINA

FROM:  U.S. STATE DEPARTMENT 

Remarks at Opening of CEO Roundtable

Remarks

John Kerry

Secretary of State

Secretary of Treasury Jacob Lew, State Councilor Yang Jiechi

Diayuotai State Guesthouse

Beijing, China

July 10, 2014

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MODERATOR: (Via interpreter) Special representatives, friends of the business community, (inaudible) joining us in the Strategic and Economic Dialogue through a cultural performance, then the roundtable is a routine program of this cultural show. So I will first give the floor to State Councilor Yang Jiechi.

STATE COUNCILOR YANG: (Via interpreter) Vice Premier Wang, Secretary Kerry, Secretary Lew, business leaders from China and the United States, ladies and gentlemen, good morning. First of all, let me warmly welcome all the business leaders from China and the United States at this breakfast. I’ve seen many old friends and new friends here today. So all of the four special representatives are here, and we also have the leading figures from important ministries and agencies of China, and I think this shows – the presence of them shows how much importance our two governments attach to our business relationship. And I’ll be looking forward to the remarks from all the business leaders as well as your insights.

And business is a backbone of China-U.S. economic relationship. Over the past 35 years, our bilateral trade increased by over 200 times. It was up from U.S. $2.45 billion in 1979 to $520 billion in 2013. Bilateral investment, which was hardly in existence, grew to U.S. $100 billion last year. So without your hard work, there would not have been such big progress in our bilateral economic relationship and trade.

The businesses also drive our cooperation. Trade and investment between our businesses’ leaders – businesses not only brings goods and jobs to us, but also mutual understanding and friendship among our peoples. Over the past 35 years, we have been expanding the areas of our cooperation and have seen a big increase in our people-to-people exchanges, and we ought to thank our enterprises for their hard work.

Finally, the business is also the pillars for our new model of major-country relationship, which is an unprecedented and innovative endeavor. We need to work very hard and work continuously. And we also look forward to the active support and participation of people from all sectors so that our companies and businesses play very important roles.

And I believe that the government departments from those countries will attach great importance to your views and your comments, and we will try our best to include them into the agenda of S&ED so as to remove the obstacles for cooperation between our two – between the companies of the two sides and create a better development environment for all of you. Thank you.

MODERATOR: (Via interpreter) Secretary Jacob Lew please.

SECRETARY LEW: Thank you very much, Vice Premier. On behalf of President Obama and all of my colleagues in the States, I’d like to thank our Chinese colleagues for hosting this morning’s discussions, and to all the business leaders who’ve come (inaudible). As we all know, we’re in the middle of our sixth U.S.-China Strategic and Economic Dialogue, and over the past five years, this has really become a foundation of our economic engagement.
I think that the dialogue itself is the government-to-government engagement. But what’s really driving a lot of what we do economically is the people-to-people engagement that goes on in the business world. I think it’s important to remember that before we had diplomatic relations, we did have commercial relations. They were small, and as the State Councilor noted, they’ve grown tremendously over the last 35 years. But it began with relationships in commerce and grew into government-to-government relationships.

Today, strengthening the commercial relationship remains an important task ahead of us. It’s a way of creating economic growth and jobs in our two countries, and it’s a way to help drive the global economy forward. You, the business leaders, are the strongest champions of the robust, fair and expanding U.S.-Chinese relationship.

The United States welcomes foreign direct investment. It has been the backbone of our economy for our entire history, and we look forward to discussions that will continue (inaudible) the next few years. Foreign direct investment from China in the United States has grown tenfold, and we hope that we can, through conversations like this, continue to identify opportunities (inaudible) in both countries.

Last year marked the first time that Chinese direct investment in the United States was greater than investment from the United States into China. Chinese firms are making important contributions to U.S. output and employment and are valued members of the communities in which they invest.

U.S. firms, which, I believe, are the most dynamic and innovative in the world, likewise are contributing to the Chinese economy. And they’re capable contributing to even more of China’s efforts to transform its development model, develop its services industry, deepen financial sector reform, and improve access to capital and boost domestic demand. It’s important that these firms are able to participate in healthy competition on a level playing field that will produce benefits to both our nations and the global economy.

And that’s where each of you, the business leaders here this morning, comes in. Each of your firms plays a pivotal role in helping to propel the U.S.-China relationship forward. And with that, I look forward to hearing your comments this morning about the successes you’ve had in the collaboration, and importantly, the challenges you face where we, as government officials, can perhaps play a role to help make things easier on both sides.

With that, I look forward to hearing what all of my colleagues on both sides – the government part of the table, but mostly what the business side of the table – have to say here this morning. Thank you very much.

MODERATOR: (Via interpreter) Secretary Kerry please.

SECRETARY KERRY: Vice Premier Wang, thank you very, very much. Thank you very much for your generous welcome here over the last 48 hours. We’re really delighted to be here with so many high-level, extraordinarily successful, confident business leaders. And I’m very happy to be joined with a very strong American delegation. Our – in addition to the Secretary of the Treasury Jack Lew, we have our Commerce Secretary Penny Pritzker, our Trade Representative Mike Froman, our Counselor to the President John Podesta, our ambassador – well, Senator Max Baucus. And we really have come here to listen to you. We want to hear your thoughts.

But I would just say as a preface to that, the State Department today is very clear that economic policy is foreign policy and foreign policy is economic policy. And all of our people – the people of China, the people of the United States, really the people of the world – are looking for their fair opportunities. That was part of the unrest that we see in certain parts of the world. Huge numbers of young people connected to everybody in the world, every day, all the time. So everything that happens anywhere is now known to everybody.

The fact is that it’s a world of rising expectations, but it’s also a world of rising possibilities. And nobody defines that more than your businesses. When half the world is still living on less than $2 a day and a large percentage of it on $1, there’s immense opportunity for growth and development. How we manage that is really what is going to define, I think, this century.
And the fact is that you’ve heard the figures. Thirty-five years ago, $2 billion of trade in goods; now, well over 500 and growing, with foreign direct investment moving in both directions – not yet even, but something we need to work at, but it doubled last year from China to the United States. We want to do better. We are in the middle of negotiating now a bilateral investment treaty. We’ll want to get that completed. We want to have an intellectual/technology trade agreement. We need to make sure we’re protecting intellectual property rights; make sure we’re creating transparency in the regulatory process; make sure that we are raising the bar for everybody in a sense, in terms of the standards by which we do business.

China and the United State represent the greatest economic alliance trading partnership in the history of humankind, and it is only going to grow. So this is a very important meeting and we really look forward to hearing from you your thoughts about how we, in the Obama Administration, can grow these possibilities, meet your needs, strengthen our countries, and strengthen the security relationship as well, which grows out of the economic relationship at the same time.

So thank you for coming today, and we thank the Vice Premier and the State Councilor for convening us.

MODERATOR: (Via interpreter) I want to thank the three special representatives for their opening remarks. Now I will open up the floor.

PRESIDENT OBAMA, AUSTRALIAN PRIME MINISTER ABBOT MAKE REMARKS AFTER MEETING

FROM:  THE WHITE HOUSE 

Remarks by President Obama and Prime Minister Abbott of Australia After Bilateral Meeting

Oval Office

12:16 P.M. EDT

PRESIDENT OBAMA:  Well, it’s wonderful to have an opportunity to visit with Prime Minister Abbott.  We had a chance to meet when I had the great honor of addressing the Australian Parliament.  And we are so glad to be able to return the favor in the Prime Minister’s first visit here to the Oval Office.

We don’t have a better friend in the world, as well as the Asia Pacific region, than Australia.  They are a treaty ally.  We cooperate on a whole range of issues.  Historically, there hasn’t been a fight that the United States was in that Australia wasn’t standing shoulder to shoulder with us.  And most recently, in Afghanistan, Australian troops have made enormous contributions and made enormous sacrifices, and we’re very grateful to them for that.

We had the opportunity this morning to discuss a wide range of issues, many of them focused on the importance of the Asia Pacific region.  We discussed the security cooperation that is continuing to deepen between our two nations as treaty allies.  In addition to the Marines that are now in Darwin and the rotations that have been established, we actually have arrived at additional agreements around force postures that will enhance the bilateral cooperation between our militaries and give us additional reach throughout this very important part of the world.  And we’re grateful for the cooperation there.

I should note that Australia, under the Prime Minister’s leadership, is increasing its defense budget, even under tough times, recognizing that we all have to make sure that we’re doing our fair share to help maintain global order and security.

We had an opportunity to discuss the strong commercial ties between our two countries.  And both of us have been very invested in trying to bring the Trans-Pacific Partnership, the TPP, to a successful outcome.  Negotiations continue, but Australia has been a very constructive partner in that process, and we both agree that not only can this agreement help to bring about jobs and growth for our respective populations, but it will also help establish the kinds of norms and free market principles throughout the region that will be important for our long-term prosperity.

We had an opportunity to discuss the work that we try to do in the region with organizations like ASEAN to maintain basic rules of the road when it comes to maritime issues, the South China Sea.  Obviously, both the United States and Australia have enormous trade relationships with China, and we both agree that it’s important to continue to see China prosper and rise.  But what’s also important is that as China emerges as this great world power that it also is helping to reinforce and abide by basic international law and norms.

And we had an opportunity to discuss some of the hotspots and international concerns that are on the front page of the papers over the last several weeks and months.  I shared with him my views after my trip to Europe about the situation in Ukraine and the possibility of still resolving that issue in a diplomatic fashion, but thanked the Australians for joining with us and being firm with the Russians about their need to abide by international law and the application of sanctions and other consequences when they do not.

We discussed the situation in the Middle East, and obviously the concerns that we have around Iraq and Syria.  Both our countries are potentially threatened by jihadists and freedom fighters, as they call them, that are going into Syria, getting trained in terrorist tactics and then potentially coming back to our countries and could end up being a significant threat to our homeland, as well.

And we also had an opportunity to talk about North Korea and the continuing threat there and the importance for us to maintain vigilance, including additional coordination around protection from potential missile strikes from North Korea.

Finally, I indicated to the Prime Minister that I’m very much looking forward to visiting Australia -- one of my favorite countries to visit -- for the G20.  And I assured him that we want to cooperate in any ways that we can to ensure that Australia’s renowned hospitality is also coupled with a very productive set of G20 meetings to talk global growth. 

So I think that the Prime Minister and I share a whole range of concerns, but we also see a whole range of opportunities out there for increased cooperation.  And I’m very glad that he’s had the chance to come by today and have a very productive meeting. 

So thank you, Tony.

PRIME MINISTER ABBOTT:  Well, thank you so much, Barack.  This has been a really full and thorough engagement over the last hour or so.  Obviously, I’m here to thank the United States for its deepening engagement in our region.  I’m here to further entrench our security and our economic cooperation.  I’m here to celebrate the extraordinary friendship between the Australian and the American peoples.  And I’m thrilled to have you coming to the G20 in November, because we have a very important job in November in Brisbane to accelerate economic growth around the world so that we have more prosperity and more jobs.

Obviously, right now, there are a whole range of security issues which the United States is leading on and where Australia is doing our part to secure the freedom and the safety of the world and its citizens.  I want to assure the President that Australia will be an utterly dependable ally of the United States.  The United States has had to bear many burdens, many burdens.  The United States has paid a very high price to secure freedom and prosperity for many countries, not just itself.  And the United States should never have to do all that work on its own. 

So it’s been a terrific discussion.  And I think that many good things will come from this meeting today.

PRESIDENT OBAMA:  Thank you, Tony.  I’m going to take just one question.  Nedra. 

Q    Mr. President, are you considering drone strikes or any sort of action to stop the insurgence in Iraq?

PRESIDENT OBAMA:  Well, this is an area that we’ve been watching with a lot of concern not just over the last couple of days but over the last several months, and we’ve been in close consultation with the Iraqi government.  Over the last year, we have been providing them additional assistance to try to address the problems that they have in Anbar, in the northwestern portions of the country, as well as the Iraqi and Syrian border.  That includes, in some cases, military equipment.  It includes intelligence assistance.  It includes a whole host of issues.

But what we’ve seen over the last couple of days indicates the degree to which Iraq is going to need more help.  It’s going to need more help from us, and it’s going to need more help from the international community. 

So my team is working around the clock to identify how we can provide the most effective assistance to them.  I don’t rule out anything, because we do have a stake in making sure that these jihadists are not getting a permanent foothold in either Iraq or Syria, for that matter. 

Part of the challenge -- and I’ve said this directly to Prime Minister Maliki, and Vice President Biden has said this in his very frequent interactions with the Iraqi government -- is that the politics of Shia and Sunni inside of Iraq, as well as the Kurds, is either going to be a help in dealing with this jihadist situation, or it’s going to be a hindrance.  And frankly, over the last several years, we have not seen the kind of trust and cooperation develop between moderate Sunni and Shia leaders inside of Iraq, and that accounts in part for some of the weakness of the state, and that then carries over into their military capacity.

So I think it’s fair to say that in our consultations with the Iraqis there will be some short-term, immediate things that need to be done militarily, and our national security team is looking at all the options.  But this should be also a wakeup call for the Iraqi government.  There has to be a political component to this so that Sunni and Shia who care about building a functioning state that can bring about security and prosperity to all people inside of Iraq come together and work diligently against these extremists.  And that is going to require concessions on the part of both Shia and Sunni that we haven’t seen so far. 

The last point I’ll make -- what’s happened over the last couple of days I think underscores the importance of the point that I made at my West Point speech:  the need for us to have a more robust regional approach to partnering and training partner countries throughout the Middle East and North Africa.  We’re not going to be able to be everywhere all the time, but what we can do is to make sure that we are consistently helping to finance, train, advise military forces with partner countries, including Iraq, that have the capacity to maintain their own security.  And that is a long and laborious process, but it’s one that we need to get started. 

That’s part of what the Counterterrorism Partnership Fund that I am going to be calling for Congress to help finance is all about, giving us the capacity to extend our reach without sending U.S. troops to play Whac-A-Mole wherever there ends up being a problem in a particular country.  That’s going to be more effective.  It’s going to be more legitimate in the eyes of people in the region, as well as the international community.  But it’s going to take time for us to build it.  In the short term, we have to deal with what clearly is an emergency situation in Iraq.

PRIME MINISTER ABBOTT:  Perhaps, Barack, I might take one question.

Q    Mr. President, just on that point you made there about limitations of American power -- what would it take for militarization, be it in the Middle East, be it in the Asia Pacific region?  Where is the line drawn?

THE PRESIDENT:  Well, I gave a very long speech about all this, so I probably would refer you to that as opposed to repeating it.  But the basic principle obviously is that we, like all nations, are prepared to take military action whenever our national security is threatened.  Where the issues have to do with the broader international order -- humanitarian concerns, concerns around rights to navigation, concerns around our ability to deal with instability or fragile states or failed states, and the consequences for populations there and refugee flows -- those sorts of international issues, wherever we can, our preference should be to partner with other countries.  We’re going to be more effective if we can work with other nations.

Q    What does --

THE PRESIDENT:  And that’s why -- well, that’s part of where Australia is so important to us.  There are a handful of countries in the world that we always know we can count on, not just because they share our values, but we know we can count on them because they’ve got real capacity.  Australia is one of those countries.  We share foundational values about liberal democracies and human rights, and a world view that’s governed by international law and norms.  And Aussies know how to fight, and I like having them in a foxhole if we’re in trouble.  So I can’t think of a better partner.  

Part of our task now in a world where it’s less likely that any particular nation attacks us or our treaty allies directly, but rather more typically that you have disorder, asymmetric threats, terrorist organizations -- all of which can be extraordinarily disruptive and damaging, but aren’t the traditional types of war that so often we’ve been equipped to fight -- it becomes that much more important for us to start building new partners who aren’t going to be as capable as the Australians, aren’t going to be as capable as our own troops.  And that’s going to take some time.  It’s going to take some resources, but we need to start now.  We’ve learned some lessons over the last decade and we need to start applying them. 

Thank you, everybody.

END

U.S. FACT SHEET: G-7 DECLARATION ON NON-PROLIFERATION AND DISARMAMENT FOR 2014

FROM:  U.S. STATE DEPARTMENT 

G-7 Declaration on Non-Proliferation and Disarmament for 2014

Fact Sheet

Bureau of International Security and Nonproliferation

June 5, 2014

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1. We are committed to seeking a safer world for all. Preventing the proliferation of weapons of mass destruction (WMD) and their means of delivery remains a top priority. Such proliferation poses a major threat to international peace and security as recognized in UN Security Council Resolutions (UNSCRs) 1540, 1673, 1810, 1887, and 1977. During this tenth anniversary year of UNSCR 1540, we reaffirm our commitment to working together towards full implementation of the resolution by 2021 and to strengthen our efforts to combat the proliferation of nuclear, chemical, and biological weapons and their means of delivery.

2. In seeking this safer world, we reiterate our commitment to create the conditions for a world without nuclear weapons, in accordance with the goals of the Non-Proliferation Treaty (NPT), in a way that promotes international stability, based on the principle of equal and undiminished security for all, and underlining the vital importance of non-proliferation for achieving this goal.

3. We reaffirm our unconditional support for all three pillars of the NPT, which remains the cornerstone of the nuclear non-proliferation regime and the essential foundation for the pursuit of disarmament and the peaceful uses of nuclear energy.

4. We call on all NPT Parties to fulfill their obligations under the Treaty and to preserve and strengthen the international nuclear non-proliferation regime. The 2015 NPT Review Conference presents a vital opportunity for all NPT Parties to further strengthen the Treaty in all its aspects. We recall the successful, consensus outcome of the 2010 NPT Review Conference, including its Action Plan. We remain fully committed to the Action Plan’s implementation, and call on all States Parties to implement its actions. In this regard, we welcome and encourage continued engagement of and among the NPT nuclear-weapon States on verification, transparency and confidence-building measures, with a view to strengthening implementation of all three pillars of the NPT. We welcome the April 2014 meeting of China, France, the Russian Federation, the United Kingdom, and the United States (P5) in Beijing, the latest in this ongoing dialogue, and welcome the timely submission of the individual reports made to the third session of the NPT Preparatory Committee in New York in April, 2014, pursuant to Actions 5, 20, and 21 of the Action Plan. We encourage all States Parties, consistent with Action 20 of the Action Plan, to make similar reports.

5. The G7 partners continue to attach great importance to the development of internationally recognized nuclear weapon free zones, established on the basis of agreements freely arrived at among States of the regions concerned, in line with the principles set out by the UN Disarmament Commission in 1999 and recognize the legitimate interest of non-nuclear-weapon States in receiving security assurances from nuclear-weapon States in the framework of the relevant legally binding protocols of nuclear-weapon-free zone treaties. These protocols enhance regional and international security by helping to build confidence between nuclear and non-nuclear weapon states. We welcome the signature of the protocol to the Treaty on a Nuclear Weapon-Free-Zone in Central Asia. We also welcome the commitment of the P5 States to continue to consult with the States Parties to the Treaty on the Southeast Asia Nuclear-Weapon-Free Zone.

6. We reaffirm the importance of commitments and assurances given by the NPT nuclear weapons States to the NPT non-nuclear weapon States. We deplore the recent and ongoing breaches of the commitments given to Ukraine by the Russian Federation in the Budapest Memorandum. In this Memorandum, the Russian Federation, United Kingdom and the United States reaffirmed their commitment to respect Ukraine’s independence and sovereignty and existing borders; reaffirmed their obligation to refrain from the threat or use of force against the territorial integrity or political independence of Ukraine and that none of their weapons will ever be used against Ukraine except in self-defense or otherwise in accordance with the Charter of the United Nations, and reaffirmed their commitment to Ukraine to refrain from economic coercion. We consider that Ukraine’s historic decisions in 1994 were significant steps in promoting its own and wider regional and international security. We also welcome Ukraine’s statement at the 2014 Non-Proliferation Treaty Preparatory Committee that Ukraine remains committed to the provisions of the NPT.

7. The G-7 strongly support the goal of a zone free of nuclear weapons, as well as other weapons of mass destruction and their means of delivery in the Middle East. Recalling the decision at the 2010 NPT Review Conference to hold a Conference on the establishment of such a zone, we strongly support Finnish Ambassador Laajava’s work as facilitator of the Conference, and welcome the continued commitment of the co-sponsors of the 1995 Resolution (the Russian Federation, the United Kingdom and the United States). We call upon the States of the region to continue their direct engagement with each other in order to finalize the preparation and convening of the Conference in the nearest future.

8. While acknowledging the right of withdrawal from the NPT contained in Article X.1, we consider that modalities and measures to address withdrawal from that Treaty are needed as demonstrated by North Korea’s announcement of withdrawal. We underscore the role of the UN Security Council in addressing announcements of withdrawal promptly and without delay, assessing the consequences of such withdrawal, including possible adoption of measures in this regard. We also emphasize that a State Party will remain responsible under international law for violations of the NPT committed prior to its withdrawal. We also underscore that nuclear transfers received prior to withdrawal should remain in peaceful uses and subject to IAEA safeguards. We welcome the growing recognition that this issue needs to be addressed urgently at the 2015 Review Conference and we support the adoption of appropriate recommendations on measures that address withdrawal in the Final Document.

Nuclear Proliferation Challenges

9. We underscore our support for E3+3 efforts led by High Representative Ashton to reach a long-term comprehensive solution to the Iranian nuclear issue that resolves fully the international community’s concerns regarding the exclusively peaceful nature of Iran’s nuclear program and ensures Iran does not acquire nuclear weapons. We welcome the implementation of the Joint Plan of Action (JPOA) between the E3+3 and Iran and the essential role played by the IAEA in verifying the nuclear-related measures. We commend those states which made financial contributions in this context for the monitoring work of the IAEA. We reaffirm our strong support for the IAEA’s ongoing efforts to verify the exclusively peaceful nature of Iran’s nuclear program and we call on Iran to cooperate fully with the IAEA to resolve all outstanding issues, particularly those which give rise to concerns about the possible military dimensions (PMD) of Iran’s nuclear program, the satisfactory resolution of which will be critical for a long-term comprehensive solution to the Iranian nuclear issue.

10. We call on Syria to remedy its noncompliance with its nuclear safeguards obligations, and to cooperate fully with the IAEA in resolving all outstanding questions regarding the nature of its nuclear program.

11. We will not accept North Korea as a nuclear armed state and urge North Korea to abandon all nuclear weapons and existing nuclear programs, and to return, at an early date, to the NPT and to IAEA safeguards and come into full compliance with its nonproliferation obligations. We condemn in the strongest possible terms North Korea’s continued development of its nuclear and ballistic missile programs in direct violation of UN Security Council Resolutions 1718, 1874, 2087 and 2094. In this regard, we condemn North Korea’s February and March 2014 ballistic missile launches in clear violation of its UNSCR obligations and call on North Korea to refrain from further provocations. We urge North Korea to halt any efforts to restart, readjust, and expand its nuclear facilities at Yongbyon, and cease immediately all nuclear activities including the ones related to its uranium enrichment and plutonium programs. We reaffirm our collective hope for lasting peace and stability on the Korean Peninsula and call on North Korea to refrain from any actions that escalate tensions in the region. We firmly support diplomatic efforts to implement the 2005 Joint Statement and to bring North Korea into compliance with its UN Security Council obligations, and call on North Korea to take concrete steps toward complete, verifiable and irreversible denuclearization. We commend the international community’s unified resolve in the face of North Korea’s defiance of it and urge continued vigilance by all states to curtail North Korea’s proliferation activities and impede the continued pursuit of its proscribed nuclear and ballistic missile programs.

Nuclear Disarmament

12. We encourage the P5 to continue their important dialogue, including on nuclear arms reductions and their work on confidence-building and transparency that represent major steps in accordance with Article VI of the NPT and the Action Plan adopted by the NPT Review Conference in May 2010. We welcome the continued implementation of the New START Treaty by the U.S. and Russia and the disarmament-related actions already made by France and the UK, as well as urge others that possess nuclear weapons but have not yet engaged in nuclear disarmament efforts to reduce their arsenals.

13. Early entry into force and universalization of the Comprehensive Nuclear-Test-Ban Treaty (CTBT) is in the security interests of every nation. States that have yet to sign or ratify the Treaty should do so without waiting for others. For the Treaty to be an effective mechanism for nuclear disarmament and nonproliferation, we believe all States must maintain the political will and provide adequate resources to complete the Treaty’s verification regime and maximize the capabilities of the Provisional Technical Secretariat. We welcome the voluntary adherence to unilateral moratoria on nuclear explosive tests and call on all States to refrain from acts which would defeat the object and purpose of the Treaty. We also welcome the establishment of the Group of Eminent Persons and support its activities, which will inject new energy and dynamics into the push for entry into force.

14. The Conference on Disarmament (CD) and its predecessor bodies have a long history of delivering landmark agreements, but we share the growing impatience of many in the international community at the impasse at the CD. We believe the next logical step in multilateral negotiations to advance both nuclear nonproliferation and disarmament goals is the negotiation of a Treaty banning the production of fissile material for use in nuclear or other nuclear explosive devices (FMCT), on the basis of document CD/1299 and the mandate contained therein. While we welcome declared moratoria by some states on the production of fissile material for use in nuclear weapons or other nuclear explosive devices, a binding and verifiable ban on such production is a necessary step toward a world without nuclear weapons. We welcome the work of the UN Group of Governmental Experts (GGE), which will make recommendations on possible aspects that could contribute to a future Treaty, and can build momentum towards eventual negotiations in the CD.

Peaceful Use of Nuclear Energy

15. All States Parties to the NPT have an inalienable right to use nuclear energy for peaceful purposes, in compliance with their international obligations. We reiterate our willingness to cooperate with States that meet their nuclear non-proliferation obligations and wish to develop a civil nuclear program in a manner that meets the highest standards of safety, security, non-proliferation, and respect for the environment.

16. We urge strong support for implementation of the IAEA’s Nuclear Safety Action Plan, including working towards establishing a global nuclear liability regime, and welcome the progress in enhancing the effectiveness of the Convention on Nuclear Safety. We emphasize the importance of the establishment, implementation and continuous improvement of national emergency preparedness and response measures.

17. Multilateral approaches to the nuclear fuel cycle contribute to nuclear energy programs. We support the IAEA’s work to establish a bank of Low Enriched Uranium in Kazakhstan and urge the conclusion of a Host State Agreement at an early date in order to allow for the beginning of operation of the bank.

IAEA Safeguards

18. We support the central role of the IAEA, and in particular its safeguards system, which remains essential for the effective implementation of the nuclear non-proliferation regime. The IAEA must continue to have the necessary resources and legal authorities to be able to carry out its mission in full, in accordance with its statutory mandate. We will continue to help promote an IAEA Comprehensive Safeguards Agreement together with an Additional Protocol as the universally accepted international verification standard, which should be a consideration in decisions on the supply of nuclear fuel, equipment, or technology. We call on all States which have not yet done so to sign and bring into force the Additional Protocol and apply its provisions as soon as possible.

Nuclear Security

19. We welcome the outcomes of the Nuclear Security Summit in The Hague on 24-25 March 2014 where 58 world leaders worked to further reduce the threat of nuclear terrorism by securing vulnerable nuclear and other radioactive material around the globe. The Hague Summit participants agreed to a Communique that reaffirms the fundamental responsibility of States, the need to further strengthen and coordinate international cooperation, and the need for a strengthened and comprehensive international security architecture. Many countries agreed to multilateral joint commitments intended to advance the goal of nuclear security. We highlight Belgian and Italian work to complete the removal of their excess supplies of highly enriched uranium and plutonium for elimination, and Japan for announcing that it will work with the United States to eliminate hundreds of kilograms of nuclear material from one of its experimental reactors. We call on others to take additional transparency measures. We also continue to encourage nations to join existing relevant international initiatives that support Summit goals.

20. We urge all States Parties to the Convention on the Physical Protection of Nuclear Material (CPPNM) to ratify, accept or approve the 2005 Amendment to the Convention as soon as possible. In addition to securing nuclear and radiological material at their source, we recognize the need to locate and secure material currently available on the illicit market and prosecute those involved in the trafficking of these materials.

21. We commend the work of the Global Initiative to Combat Nuclear Terrorism and other international efforts to counter nuclear smuggling and combat nuclear terrorism. The ongoing occurrence for more than 20 years of nuclear and radioactive trafficking highlights the threat that terrorists or other malicious actors can acquire these dangerous materials. The international community must be vigilant to prevent the world’s most dangerous materials from falling into the wrong hands.

The Nuclear Suppliers Group

22. We welcome the call by the Nuclear Suppliers Group (NSG) on all states to exercise vigilance to ensure that the supply of nuclear related technologies and materials is for peaceful purposes and to make best efforts to ensure that none of their exports of goods and technologies contributes to the spread of nuclear weapons. In this regard, we recognize that the NSG Guidelines serve as the standard for nuclear and nuclear-related dual-use exports. We call on NSG Participating Governments to strictly observe the Guidelines and encourage nuclear supplier states that are not NSG participating governments to act in conformity with the Guidelines on a voluntary basis. We also support the discussion of the Additional Protocol as a condition of supply to enhance nuclear non-proliferation efforts. We welcome the progress that is being made by the Technical Experts Group to ensure that control lists remain current, and we welcome the Group’s outreach efforts to enhance non-proliferation. We welcome the membership of Mexico in 2012 and Serbia in 2013.

Chemical Weapons

23. We reaffirm our unconditional support for the Chemical Weapons Convention (CWC) and the functions of the Organization for the Prohibition of Chemical Weapons (OPCW). We applaud the success of the Convention and the awarding of the Nobel Peace Prize to the OPCW for its ongoing work to eliminate an entire class of WMD and toward preventing the re-emergence of chemical weapons. We look forward to continuing the work set out in the final document of the 2013 Review Conference and support efforts to ensure the universalisation and effective implementation of the Convention, and we call on all states not party to the Convention to adhere to it now. Destroying chemical weapons remains a key objective of the Convention together with refraining from the development, production, acquisition, stockpiling, use and proliferation of chemical weapons. We welcome the progress being made by the possessor states as reported recently to the OPCW Executive Council (EC) and Conference of the States Parties. We encourage all possessor states to continue to take every necessary measure to complete their destruction processes as soon as possible in a transparent fashion, and within the framework of the existing verification regime. We reiterate the importance of an effective industry verification regime.

24. We share deep concern over the use of chemical weapons by the Assad regime against its citizens. We share further concern about the more recent allegations of use of a toxic chemical as a weapon in Syria and we support the OPCW fact-finding mission. We urge the regime to cooperate fully with the mission to ensure those who are responsible for such attacks are brought to account. The continued possession of chemical weapons material by the Assad regime represents a sustained danger to Syria’s population and all of its neighbors. We support the full implementation of the OPCW Executive Council Decision of September 27, 2013 and UN Security Council Resolution (2118), which resulted from the Russia U.S. Geneva framework to eliminate Syria’s chemical weapons program. We welcome the efforts of the Joint OPCW-UN Mission and the assistance provided by individual States and by the international community at large to support safe elimination of Syria’s chemical weapons program. Whilst efforts have been made, the removal process remains behind schedule. We call upon Syria to make sustained efforts in meeting its obligations under the CWC, OPCW EC decisions and UNSCR 2118. International confidence that the program has been completely eliminated requires further review of Syria’s declaration of its CW program. Syria must also take immediate steps to physically destroy the remaining 13 chemical production facilities in accordance with the CWC.

Biological Weapons

25. We welcome the work undertaken so far to implement the outcome of the Seventh Review Conference of the Biological and Toxin Weapons Convention (BTWC). We are committed to achieving real progress to promote national implementation, confidence-building measures, and cooperation and assistance, to reviewing developments in science and technology, and to strengthening the Convention’s Article VII on responding to use of biological or toxin weapons. We support further exploration or consideration of practical approaches to promote the exchange of best practices, enhance transparency, and build trust among states parties, such as peer review, voluntary transparency visits and briefings, and constructive approaches to raising and addressing concerns where they arise. Such approaches may play a role in strengthening implementation and enhancing assurance of compliance with BWC obligations. We reaffirm our commitment to promote universal membership of the BTWC, and we are determined to work with all the State Parties to reinforce its regime.

Addressing the Proliferation of Weapons of Mass Destruction

26. WMD and delivery means- related export controls by members of the international nonproliferation regimes (Australia Group, Missile Technology Control Regime, Nuclear Suppliers Group) and the Zangger Committee has significantly reduced the availability to proliferators of support from countries with the most advanced technology. These controls, and the information-sharing, best practices, and patterns of cooperation fostered by the regimes, have made it more difficult, time-consuming, and costly for proliferators to produce or acquire WMD and their delivery systems. We plan to continue to work through the regimes to reduce the global proliferation threat and urge all countries to unilaterally adopt and apply on a national basis the guidelines and standards of the regimes.

27. We fully support the key role played by the United Nations Security Council in addressing proliferation issues. We welcome the adoption by the Security Council of Resolution 1977, which renewed the mandate of the 1540 Committee for ten years and reaffirmed Resolution 1540’s obligations. We invite all States to nominate a national point of contact and to work toward full implementation of UNSCR 1540. We stand ready to provide assistance to States in this regard and we reiterate our support to the 1540 Committee in the discharge of its mandate.

28. We strongly believe that the proliferation of missiles, especially those capable of delivering weapons of mass destruction, continues to be a serious concern to us all and a threat to international peace and security, as reaffirmed in UN Security Council Resolutions 1540, 1887, and 1977. We believe that a multilateral response and international norms are the most adequate and effective way to address this issue. We strongly endorse the MTCR and the Hague Code of Conduct in that regard.

29. We affirm our commitment to the Global Partnership Against the Spread of Weapons and Material of Mass Destruction (Global Partnership) and this commitment remains unwavering. We therefore commend the Global Partnership on its efforts to coordinate and collaborate on programs and activities in the areas of nuclear and radiological security, biological security, chemical security, scientist engagement and countering knowledge proliferation, and in the implementation of UN Security Council Resolution 1540. The Global Partnership has continued its valuable work on engagement with centers of excellence and the expansion of its membership. Since 2013, the Global Partnership has welcomed the Philippines, Hungary and Spain as new members. Members of the Global Partnership also welcome the ongoing participation and closer cooperation of relevant international organizations and bodies in global efforts to improve information sharing and coordination of WMD threat reduction projects. The sub-groups that focused on each of the substantive areas of chemical, biological, nuclear and radiological security helped the Global Partnership improve information sharing, funding and project coordination. The Global Partnership has provided significant funding for the destruction of chemical weapons in Syria. In addition, strengthened matchmaking has begun to enable the Global Partnership to improve coordination of projects globally.

30. We continue to promote robust counter-proliferation tools. We support the Proliferation Security Initiative (PSI). The list of endorsing nations continues to grow, with Vietnam recently being the 104th endorsing nation. We commit to undertake further measures to enhance the capabilities and authorities required to interdict shipments of weapons of mass destruction, their delivery systems, and related materials to and from states and non-state actors of proliferation concern. We promote outreach for enhanced participation in the PSI and continue to focus on legal and operational issues.

Conventional

31. Conventional arms play a legitimate role in enabling governments to defend their citizens, as enshrined in the UN Charter. However, in the wrong hands they pose a threat to global, regional and national security. Improperly controlled, they can fuel terrorism and threaten peace and stability. For this reason, we welcome the adoption of UNSCR 2117 and stress the need for full and effective implementation by States at the national, regional and international levels, of the UN Programme of Action to Prevent, Combat and Eradicate the Illicit Trade in Small Arms and Light Weapons. In this context, we also reiterate our support for full implementation of UNSCR 2017 in order to stem arms proliferation from Libya. In addition, the Wassenaar Arrangement on Export Controls for Conventional Arms and Dual-use Goods and Technologies contributes to preventing de-stabilizing accumulations of these arms, goods and technologies. We urge those which currently sit outside the regime to make every effort to apply the Wassenaar Arrangement’s standards and control lists. Conventional arms agreements and commitments can also address specific regional security concerns. The Vienna Document and Open Skies Treaty have provided useful transparency about military activities in Ukraine and western Russia in recent months, reflecting the importance of continued implementation and modernization of these agreements and commitments.

32. We welcome the rapid progress that has been made towards entry into force of the Arms Trade Treaty since it was opened for signature on 3 June 2013. We call upon States who have not yet done so to join the Treaty as soon as possible. Effective implementation of the Treaty’s obligations will contribute to saving lives, reducing human suffering, protecting human rights, preventing the diversion of conventional arms to the illegal market and combating terrorism, while upholding the legitimate trade in arms, which is vital for national defense and security. We urge States in a position to do so to render assistance in capacity building to enable States Parties needing such assistance to fulfill and implement the Treaty’s obligations.

Outer Space

33. Outer space activities continue to play a significant role in the social, economic, scientific, and technological development of states, as well as in maintaining international peace and security. We acknowledge the need to take collaborative, timely, and pragmatic steps to enhance the long-term safety, security, sustainability, and stability of the space environment. In this context, the G-7 supports and encourages constructive discussion on the development and implementation of transparency and confidence building measures to enhance stability in space, taking into account the recommendations of the United Nations Group of Governmental Experts on Transparency and Confidence-Building Measures in Outer Space. The G7 continues to support ongoing efforts to develop a non-legally-binding International Code of Conduct for Outer Space Activities and strongly encourages completion of the Code in the near future or in the first half of 2015 at the latest. We also support the efforts to complete the United Nations Committee on the Peaceful Uses of Outer Space Guidelines on Long-Term Sustainability for Space Activities in 2015.

DOD REPORT SAYS CHINA MILITARY MODERNIZING, PREPARING CONTINGENCIES FOR TERRITORIAL DISPUTES

FROM:  U.S. DEFENSE DEPARTMENT 

China Continues Military Modernization, Report Says

By Jim Garamone

American Forces Press Service

WASHINGTON, June 5, 2014 – China continues to modernize and improve its military capabilities, according to an annual DOD report to Congress, and is also preparing for contingencies in the South and East China Seas where Beijing has been involved in increasingly tense territorial disputes with its neighbors.
The just-released “Military and Security Developments Involving the People’s Republic of China for 2014” report said China’s military expenditures continue to grow in keeping with its goal of being a regional and world power.
The main mission for the People’s Liberation Army, the report said, is to improve the capacity of its armed forces to fight and win short-duration, high-intensity regional contingencies.

China continues to prepare for potential conflict in the Taiwan Strait -- which includes deterring or defeating the United States, according to the report.
“The People’s Liberation Army also is placing emphasis on preparing for contingencies other than Taiwan, including potential contingencies in the South and East China Seas,” the report says.

The PLA Navy, the report said, conducted its largest-ever fleet exercise in the Philippine Sea.

China also conducted a series of joint military exercises in September and October, according to the report. “These exercises combined PLA ground, navy and air forces in large-scale maneuvers along China’s southern and southeastern coasts,” the report said.

“As China’s interests, capabilities, and international influence have grown, its military modernization program has also become increasingly focused on military investments for a range of missions beyond China’s coast, including sea lane security, counterpiracy, peacekeeping and humanitarian assistance/disaster relief,” the report says. The United States has worked with China on some of these missions.

Chinese leaders, the report said, see this era as a “period of strategic opportunity” to advance national development.

China is using the strategic space to prioritize economic growth and development and to achieve “national rejuvenation” by 2049, according to the report.
“At the same time, Chinese leaders express a desire to maintain peace and stability along their country’s periphery; expand their diplomatic influence to facilitate access to markets, capital, and resources; and avoid direct confrontation with the United States and other countries,” the report said.

Following this strategy, China’s presence is growing in all regions of the world, the report said. This has led to friction between some of its regional neighbors, including allies and partners of the United States.

The U.S.-China relationship is expanding and improving, the report said. In the military area there are questions about the rate of growth. The Chinese have not been transparent about their spending, with U.S. experts believing the country spends roughly $145 billion on defense, far beyond the $119 billion that China has officially announced.

China has sustained its investments in strategic forces modernization, as well as key anti-access/area-denial capabilities such as advanced intermediate- and medium-range conventional ballistic missiles, long-range land-attack and anti-ship cruise missiles, counter-space weapons, and offensive cyber capabilities, according to the report.

MAN PLEADS GUILTY TO IMPORTING,SALE OF COUNTERFEIT INTEGRATED CIRCUITS USED ON NUCLEAR SUBMARINES

FROM:  U.S. JUSTICE DEPARTMENT   

Tuesday, June 3, 2014

Massachusetts Man Pleads Guilty to Importing and Selling Counterfeit Intergrated Circuits from China and Hong Kong

Peter Picone, 41, of Methuen, Massachusetts, pleaded guilty today in U.S. District Court in Hartford, Connecticut to importing thousands of counterfeit integrated circuits (ICs) from China and Hong Kong and then reselling them to U.S. customers, including contractors supplying them to the U.S. Navy for use in nuclear submarines.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Deirdre M. Daly for the District of Connecticut made the announcement.

Picone pleaded guilty before U.S. Magistrate Judge Donna Martinez of the District of Connecticut to an indictment charging him with conspiracy to traffic in counterfeit military goods.   As part of a plea agreement with the government, Picone agreed to a forfeiture money judgment of $70,050 and the forfeiture of 12,960 counterfeit ICs seized during the execution of a search warrant at his business and residence.   Sentencing was set for Aug. 22, 2014.

According to court filings, from 2007 through 2012, Picone conspired with his suppliers in China and Hong Kong to sell millions of dollars’ worth of ICs bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola, Xilinx and National Semiconductor.   Picone sold counterfeit ICs to contractors knowing that they would be supplied to the United States Navy for use in nuclear submarines.

Many of Picone’s customers specified in their orders that they would not accept anything but new ICs that were not from China, but Picone told them that the ICs were new and manufactured in Europe.   Testing by the Navy and one of its contractors revealed that in fact the ICs purchased from Picone had been resurfaced to change the date code and to affix counterfeit marks, all in order to hide their true pedigree.   Federal agents searched Picone’s business and residence on April 24, 2012, and recovered 12,960 counterfeit ICs.

This is the second conviction ever on a charge of trafficking in counterfeit military goods, a relatively new provision in the U.S. Criminal Code that was enacted as part of the National Defense Authorization Act of 2011.

The case was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and Homeland Security Investigations.   The case is being prosecuted by Trial Attorney Kendra Ervin and Senior Counsel Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Special Assistant U.S. Attorney Carol Sipperly of the District of Connecticut, Trial Attorney Anna Kaminska of the Criminal Division’s Fraud Section, and Trial Attorney Kristen Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section.  Significant assistance was provided by the CCIPS Cybercrime Lab.

SECRETARY KERRY'S REMARKS ON 25TH ANNIVERSARY OF TIANANMEN SQUARE PROTEST

FROM:  U.S. STATE DEPARTMENT 

Message on the 25th Anniversary of Tiananmen Square

Press Statement

John Kerry

Secretary of State

Washington, DC

June 4, 2014

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Today of all days, we remember the courage and commitment of hundreds of thousands of peaceful protesters who took to the streets to demand fundamental, universal rights. I’ll never forget turning on the television in my office and seeing a column of tanks halted by a single man armed only with his conscience. In those uncertain days, I was in the presence of 2,000 students in Massachusetts. I shared with them that these events were not the happenings of a weekend, but the happenings of an epoch, of a lifetime, and they demanded a moral and political response.

For all people who seek freedom, Tiananmen Square still stirs our conscience. That is why the United States and the international community commemorate the tragic loss of hundreds of lives and the heavy price paid by those who braved the violence in pursuit of the freedom to express their views. We express our sorrow to the families still grieving the loved ones, the lost, and especially to the Tiananmen Mothers.

We all recognize and appreciate that China has made marked social and economic progress in the past several decades. Continued progress will be defined by openness not just to the world, but to the voices and diverse perspectives of China’s citizens. Open discussion and examination of the events of 1989 and a full public accounting of those killed, detained, or missing would be a sign of strength and healing, not weakness and division. A peaceful, prosperous future is made more promising by healing the wounds of the past. We call on Chinese authorities to release from prison all those still serving sentences in connection with the events surrounding June 4, 1989, and end the ongoing pattern of harassment, detention, and official retribution against those who participated in the demonstrations, their family members, and those who continue to bravely speak out. We also urge China to release those who were detained in advance of the anniversary of June 4, and to uphold its international commitments to protect fundamental freedoms of all in China. All societies are stronger when every citizen has a say and a stake in their country’s direction.

STATEMENT ON TERRORIST ATTACK IN CHINA

FROM:  THE WHITE HOUSE 

WHITE HOUSE PRESS 

Statement by Press Secretary Jay Carney on Terrorist Attack in China

The United States condemns the horrific terrorist attack in Urumqi, China today.  We are aware of reports that the attack resulted in the death of 31 citizens and the injury of 90 more. This is a despicable and outrageous act of violence against innocent civilians, and the United States resolutely opposes all forms of terrorism.  We offer our condolences and sympathies to the victims, their families, and all those affected by this attack.

U.S. STATE DEPARTMENT REMARKS NUCLEAR DISARMAMENT AND SECURITY NPT CLUSTER 1

FROM:  U.S. STATE DEPARTMENT

NPT Cluster 1: Nuclear Disarmament and Security: U.S. Statement

Remarks

Christopher Buck, Deputy Chief of Mission, Delegation to the Conference on Disarmament Permanent Mission, Geneva

Third Meeting of the Preparatory Committee for the 2015 Nuclear Non-Proliferation Treaty Review Conference

United Nations, New York City

May 2, 2014

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(As Delivered)

Mr. Chairman,

I am pleased to provide an update on ongoing U.S. activities in fulfillment of our obligations and commitments under Article VI of the Nuclear Non-Proliferation Treaty (NPT) and the 2010 NPT Action Plan. In this context, I highlight the extensive report that the United States has submitted to this Preparatory Committee meeting, consistent with Actions 5, 20, and 21 of the 2010 NPT Action Plan.

U.S. policy is to achieve the peace and security of a world without nuclear weapons. This remains a central element of President Obama’s nuclear agenda, and we are working to create conditions that can enable its eventual achievement by pursuing a multifaceted, step-by-step approach incorporating national, bilateral, and multilateral actions.

It is because we understand the consequences of the use of nuclear weapons that the United States continues to devote considerable resources in a decades-long effort to reduce and ultimately eliminate nuclear weapons. There is no “quick fix” to achieving nuclear disarmament. There is no path other than the hard, daily work of verifiable step-by-step disarmament to which we remain resolutely committed.

In line with our support for the NPT, in 2010 the United States changed our nuclear posture to further reduce the number and role of nuclear weapons in our national security strategy and emphasize the interest of all nations in extending the 69-year record of non-use of nuclear weapons. The President also made it clear that the United States will not develop new nuclear warheads nor will we pursue new military missions for nuclear weapons.

This important shift in U.S. nuclear posture has taken place against the backdrop of dramatic and ongoing reductions in our nuclear arsenal. In fact, when the NPT entered into force in 1970, the United States had a nuclear stockpile of over 26,000 nuclear weapons. As Under Secretary Gottemoeller announced on Tuesday, the U.S. nuclear stockpile now has been reduced to 4,804 warheads, which reflects an 85% decrease from its Cold War peak. During this period, the United States reduced its non-strategic nuclear warheads by 90 percent. To lend a better sense of the scale of this ongoing activity in the post-Cold War period, between 1994 and 2013, the United States dismantled 9,952 nuclear warheads.

Moreover, this effort continues as we fulfill our obligations under the New Strategic Arms Reduction Treaty (New START) between the United States and Russia, now in its fourth year of implementation. When the Treaty limits are reached in 2018, the strategic forces of the United States and Russia will be capped at 1,550 deployed strategic warheads, their lowest level since the 1950s.

Contrary to the view expressed by some in this hall, we do not regard the achievement of nuclear disarmament as simply a rhetorical goal. It is one the United States is working on and pursuing every day.

And this work is not done. As outlined by President Obama in Berlin in June 2013, the United States remains open to negotiate further reductions with Russia in all categories of nuclear weapons – including strategic and non-strategic nuclear weapons.

We are also developing effective verification methodologies and processes that will be essential as we move toward increasingly smaller nuclear arsenals. Our experience with verified bilateral nuclear disarmament provides valuable experience and useful tools for multilateral nuclear disarmament approaches in the future. To that end, we are working closely with all NPT nuclear weapon states (or “P5”) to lay the foundation for future arms control agreements with participants beyond Russia and the United States.

Within the P5 process we have institutionalized regular dialogue on nuclear weapons-related issues. China hosted a fifth P5 Conference in Beijing on April 14 and 15, and the United Kingdom has agreed to host a sixth conference next year. Through these high-level conferences and frequent expert-level meetings, the P5 were able to reach consensus on a framework for reporting to this PrepCom in accordance with their commitments in the Action Plan. P5 CTBT experts have held productive discussions on ways they can collaborate in strengthening the CTBT monitoring regime. And the P5 Working Group on Nuclear Terms and Definitions, chaired by China, has made progress on the development of a P5 nuclear terms glossary.

The significance of this work should not be underestimated. P5 engagement is a long-term investment to strengthen and advance the NPT, build trust and create a stronger foundation to achieve the Treaty’s disarmament and nonproliferation goals. In addition, the United States and the United Kingdom are conducting a joint project to further develop verification procedures and technologies, which we will brief today at 1:15 p.m. in the North Lawn Building, Conference Room 5.

Turning to the broader multilateral context, the United States supports the immediate commencement of negotiations on a Fissile Material Cutoff Treaty (FMCT), which is the next logical and necessary step toward achieving our shared disarmament goals. A verifiable ban on the production of fissile material for use in nuclear weapons is necessary if we are to create conditions for a world without nuclear weapons. All states can contribute to achieving this goal. We are disappointed that the Conference on Disarmament (CD) has been unable to initiate negotiations on an FMCT. Even as we continue our efforts in the CD, the United States is actively engaged in the meeting of the FMCT Group of Governmental Experts (GGE), which can usefully complement efforts to promote negotiations of an FMCT in the CD.

In another important multilateral effort, the ratification and entry into force of the Comprehensive Nuclear-Test-Ban Treaty (CTBT) remains a top priority for the U.S. Administration. Our active involvement in all activities of the CTBT Organization’s Preparatory Commission clearly demonstrates our ongoing commitment to the Treaty and the vital importance the United States attaches to completing the verification regime. The United States recognizes that the voluntary adherence to unilateral nuclear testing moratoria is no substitute for a legally binding prohibition against the conduct of such explosions. Entry into force of the CTBT is in the security interests of every nation. All States have an important role to play in providing the necessary resources to complete the Treaty’s verification regime and maximize the capabilities of the Provisional Technical Secretariat.

Mr. Chairman,

The United States recognizes the importance of security assurances in the context of the NPT. Accordingly, the United States updated and strengthened its long-standing negative security assurance policy in the context of the U.S. Nuclear Posture Review published in April 2010. The United States declared that it will not use or threaten to use nuclear weapons against non-nuclear weapon States that are party to the NPT and in compliance with their nuclear nonproliferation obligations. It was also made clear that the United States would only consider the use of nuclear weapons in extreme circumstances to defend the vital interests of the United States or our allies and partners.

The United States also supports well-crafted nuclear-weapon-free zones (NWFZs) that are vigorously enforced and developed in accordance with the guidelines adopted by the United Nations Disarmament Commission. We are a Party to both Protocols of the Treaty of Tlatelolco and in recent years the United States has worked toward extending legally binding negative security assurances by submitting for ratification the protocols to the African and South Pacific nuclear-weapon-free zones. We are pleased to note that the United States and other NPT nuclear weapon states will soon sign the Protocol to the Central Asian Nuclear Weapon Free Zone Treaty. The nuclear weapon states are also engaging ASEAN to resolve any remaining differences so that we can sign the revised Protocol to the Southeast Asia nuclear-weapon-free zone. These actions are a priority for us.

Mr. Chairman,

The United States is committed to achieving a world without nuclear weapons, and we are dedicated to working with all NPT States Parties to make that goal a reality. The pursuit of our shared goal will require patience and persistence from all of us. But we are confident in our purpose, and strengthened in both our methods and morale by the tremendous progress we have made thus far.

Thank you, Mr. Chairman.

U.S.-JAPAN JOINT STATEMENT ON ASIA-PACIFIC FUTURE

FROM:  THE WHITE HOUSE 

U.S.-Japan Joint Statement: The United States and Japan: Shaping the Future of the Asia-Pacific and Beyond

The relationship between the United States of America and Japan is founded on mutual trust, a common vision for a rules-based international order, a shared commitment to upholding democratic values and promoting open markets, and deep cultural and people-to-people ties. The U.S.-Japan Alliance is the cornerstone for regional peace and security as well as a platform for global cooperation.  The U.S. rebalance to the Asia-Pacific and Japan’s policy of “Proactive Contribution to Peace” based on the principle of international cooperation both contribute to the Alliance playing a leading role in ensuring a peaceful and prosperous Asia-Pacific.  

Close U.S.-Japan cooperation is essential in managing and responding to long-standing and emerging threats and challenges in Asia and around the world.  Recent events underscore the importance of coordinated action to uphold regional and global rules and norms.  At the March 25 Trilateral Summit in The Hague, the leaders of the United States, Japan, and the Republic of Korea urged North Korea to take concrete actions to meet its international obligations on nuclear and missile issues and to address, without delay, humanitarian concerns, including the abductions issue.  In concert with our G-7 partners, the United States and Japan have condemned Russia over its illegal attempt to annex Crimea and are consulting closely on further measures against Russia over its deplorable conduct, while strongly urging Russia to deescalate tensions in Ukraine.  Together, we are taking concrete steps to support Ukraine’s sovereignty, territorial integrity, and economic stability.  The United States and Japan are working collaboratively to resolve the Iranian nuclear issue, support Middle East peace efforts, contribute to Afghan reconstruction, and improve the situation in Syria, including through the disposal of its chemical stockpiles.  The United States and Japan recognize that China can play an important role in addressing all of these challenges, and both countries reaffirm their interest in building a productive and constructive relationship with China. 

The United States and Japan, as maritime nations with global trade networks that depend on open seas, underscore the importance of maintaining a maritime order based upon respect for international law, including the freedom of navigation and overflight.  The United States and Japan share strong concern over recent actions that have raised tensions in the East China Sea and South China Sea, such as the uncoordinated declaration of an Air Defense Identification Zone in the East China Sea.  Our two countries oppose any attempt to assert territorial or maritime claims through the use of intimidation, coercion or force.  The United States and Japan urge the establishment of confidence-building measures among governments and militaries in the region to address these tensions.  In the South China Sea, we call on countries concerned to clarify the basis of their maritime claims in accordance with international law.  We support efforts for the early establishment of an effective Code of Conduct as a way to reduce the risk of an unintended incident.  The United States and Japan fully support the use of diplomatic and legal means, including international arbitration, to settle maritime disputes in the South China Sea. 

Given the common security challenges our two countries face, the United States and Japan are strengthening and modernizing our security alliance as directed by the Security Consultative Committee, including through the revision of the Guidelines for U.S.-Japan Defense Cooperation.  The United States has deployed its most advanced military assets to Japan and provides all necessary capabilities to meet its commitments under the U.S.-Japan Treaty of Mutual Cooperation and Security.  These commitments extend to all the territories under the administration of Japan, including the Senkaku Islands.  In that context, the United States opposes any unilateral action that seeks to undermine Japan’s administration of the Senkaku Islands. The United States appreciates Japan’s establishment of a National Security Council and creation of a legal framework for information security that will facilitate enhanced policy and intelligence coordination between the two countries.  The United States welcomes and supports Japan’s consideration of the matter of exercising the right of collective self-defense.  The United States and Japan reaffirmed the importance of the U.S. extended deterrence to maintain regional security.  The United States and Japan are also making sustained progress towards realizing a geographically distributed, operationally resilient and politically sustainable U.S. force posture in the Asia Pacific, including the development of Guam as a strategic hub.  The early relocation of Futenma Marine Corps Air Station to Camp Schwab and consolidation of bases in Okinawa will ensure a long-term sustainable presence for U.S. forces.  In this context, we reaffirm our commitment to reducing the impact of U.S. forces on Okinawa. 

The United States and Japan also coordinate closely in multilateral financial and economic fora to advance trade liberalization and promote economic growth.  Our joint efforts are grounded in support for an international economic system that is free, open, and transparent, and embraces innovation.  In order to further enhance economic growth, expand regional trade and investment, and strengthen the rules-based trading system, the United States and Japan are committed to taking the bold steps necessary to complete a high-standard, ambitious, comprehensive  Trans-Pacific Partnership (TPP) agreement.  Today, we have identified a path forward on important bilateral TPP issues. This marks a key milestone in the TPP negotiations and will inject fresh momentum into the broader talks. We now call upon all TPP partners to move as soon as possible to take the necessary steps to conclude the agreement.  Even with this step forward, there is still much work to be done to conclude TPP.

We also support Japan’s Chairmanship in the OECD Ministerial Council Meeting on the occasion of the 50th anniversary of its accession to the OECD and support China’s hosting of the Asia Pacific Economic Cooperation (APEC) forum and Australia’s hosting of the G20 this year.  We are working together in the APEC and the G20 on the promotion of the role of women, which is an important domestic and foreign policy priority for both countries.  Through the Equal Futures Partnership and upcoming events such as the White House Summit on Working Families and Japan’s international symposium on women’s empowerment, the two countries are committed to ensuring women’s full participation in society.  Furthermore, the United States and Japan continue to be world leaders in high-technology, where our collaboration is expanding the frontiers of robotics, space, and medical science. 

The United States and Japan view energy security as vital to prosperity and stability.  Both sides welcomed the prospect of U.S. LNG exports in the future since additional global supplies will benefit Japan and other strategic partners.  The United States welcomed Japan’s new Strategic Energy Plan, which includes global, peaceful and safe use of nuclear energy and acceleration of the introduction of renewable energy.  Both countries are working together to promote the development of clean energy, including by facilitating business cooperation and deepening civil nuclear cooperation.  These steps are part of a broader effort to address the urgent challenge of global climate change.  Both countries plan to put forward robust post-2020 nationally determined contributions, building on decisions taken at the 19^th Conference of the Parties (COP-19) to the United Nations Framework Convention on Climate Change (UNFCCC), in order to promote the adoption of a protocol, another legal instrument, or an agreed outcome with legal force under the UNFCCC applicable to all Parties at COP-21 in Paris in December 2015.  We will continue to work with other countries on complementary initiatives to encourage reduction of greenhouse gas emissions. 

The United States and Japan are committed to promoting peace, stability, and economic growth throughout the world, including in Africa.  Through our recently launched senior-level U.S.-Japan Development Dialogue, we are expanding our development cooperation in these areas.  Furthermore, the United States and Japan are continuing bilateral policy coordination to address other global challenges and promote our common agenda, such as women’s empowerment, human security, humanitarian assistance, disaster risk reduction, the post-2015 development agenda, global health, climate change, counter-terrorism and transnational organized crime, cyber policy, the goal of a world without nuclear weapons, nuclear security, and cooperation at the United Nations, including in peacekeeping.  The United States looks forward to a reformed UN Security Council that includes Japan as a permanent member.  Our two countries are continuing to cooperate in the field of disaster risk management based on the experience of the Great East Japan Earthquake. 

The United States and Japan renew our commitment to deepening diplomatic, economic, and security cooperation with the Association of Southeast Asian Nations (ASEAN), recognizing the importance of ASEAN unity and centrality to regional security and prosperity.  We are coordinating closely to support ASEAN and its affiliated fora as its members seek to build a regional economic community and address trans-border challenges, including cybersecurity and cybercrime.  In this context, the two countries view the East Asia Summit as the premier political and security forum in the region.  We support the Asian Development Bank work to address the region’s infrastructure and connectivity needs.  The United States and Japan are collaborating to assist Southeast Asian littoral states in building maritime domain awareness and other capacities for maritime safety and security so that they can better enforce law, combat illicit trafficking and weapons proliferation, and protect marine resources.  The robust U.S. and Japanese civilian and military response to Typhoon Haiyan in the Philippines demonstrated our ability to collectively assist the region in disaster relief and risk reduction. 

To achieve our shared objectives of promoting peace and economic prosperity in the Asia-Pacific and around the globe, the United States and Japan are strengthening trilateral cooperation with like-minded partners, including the Republic of Korea, Australia, and India. 

The United States and Japan reaffirm our long-standing and indispensable partnership in shaping the future of the Asia-Pacific and beyond through close cooperation and collaboration.

ANNEX:  Leaders Statement on U.S.-Japan Bilateral Exchanges

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  ANNEX:  Leaders Statement on U.S.-Japan Bilateral Exchanges

 Broad people-to-people exchange between Japan and the United States has been a key pillar of our Alliance since its inception.  Close ties and shared values between the people of the United States and the people of Japan form the foundation of the global partnership between our nations.

To ensure the future strength of the U.S.-Japan relationship, the two governments share the goal, established by the U.S.-Japan Conference on Cultural and Educational Interchange (CULCON), of doubling two-way student exchange by the year 2020.

Recognizing that people-to-people exchange is an irreplaceable investment in the future of the Alliance, President Obama and Prime Minister Abe announced their intent to create a new bilateral exchange program that would enable Japanese youth to visit the United States, enhance their English language abilities, and develop professional skills through internship opportunities.  The leaders also intend to explore internship opportunities for U.S. youth in Japan.  

Furthermore, Japan is going to send 6,000 Japanese students to the United States in fiscal year 2014 through student exchange support programs, including public-private partnerships such as the TOBITATE! Young Ambassador Program, further contributing to reaching our shared goal established by CULCON.  Japan and the United States also plan to explore new avenues for exchange, including support for Japanese researchers and programs linking the next generation of Japanese and U.S. leaders and friends. 

The Japanese government’s program inviting Japanese-American leaders to Japan has promoted broad understanding and support for the U.S.-Japan Alliance.  Building on this successful effort, Japan intends to broaden the scope of this initiative in fiscal year 2014 to further deepen mutual understanding. 

The Japanese government’s ongoing KAKEHASHI Project, under which a total of 4,600 young Japanese and U.S. citizens are expected to visit each other’s countries in exchange programs, has made a significant contribution to fostering mutual understanding.  In addition, following the March 2011 Great East Japan Earthquake, the U.S. government and the U.S.-Japan Council launched the TOMODACHI Initiative, a path-breaking public-private partnership that engages the private sector in promoting U.S.-Japan youth exchange.  To date, with the support of over eighty U.S. and Japanese companies, organizations, and individuals, more than 2,300 Japanese and U.S. youth have participated in TOMODACHI exchange programs. 

These initiatives build on established programs, such as the binational Fulbright Program, which has benefited nearly 10,000 Japanese and U.S. students and scholars over more than 60 years; the Japan Exchange and Teaching (JET) Program; the Student Exchange Support Program and the Japanese Government Scholarship provided by the Japanese Ministry of Education, Culture, Sports, Science and Technology; the National Science Foundation’s Summer Institutes in Japan, funded in cooperation with the Japan Society for the Promotion of Science; the Japan-U.S. Training Exchange Program for English Language Teachers (JUSTE); and the Mansfield Fellowship Program.  These programs have for years expanded and strengthened people-to-people connections between our countries. 

These government programs are complemented by the many non-governmental programs linking the people of our two countries, such as the Japan-America Societies, the U.S.-Japan Council, and the more than 400 sister-city and sister-state and prefecture relationships between Japan and the United States.  Such programs are indispensable, as are the dozens of academic associations, university linkages, and privately-funded exchanges, for example the Crown Prince Akihito Scholarship; the United States-Japan Bridging Foundation Scholarships, the Grew Bancroft Scholarship; and the Japan-America Student Conference, which celebrates its 80^th anniversary this year.  Japan and the United States aim to further encourage new and expanded non-governmental dialogues to bring together opinion leaders from both nations. 

Symbolizing the grassroots friendship uniting our nations, the U.S. government and a range of private sector partners have created the Friendship Blossoms Initiative, which is currently planting 3,000 American dogwood trees throughout Japan on behalf of the people of the United States, to reciprocate the City of Tokyo’s gift of 3,000 flowering cherry trees to Washington, DC in 1912.  The 1912 gift from Japan is celebrated each year during the National Cherry Blossom Festival, an iconic spring event in Washington, D.C. 

The President and Prime Minister welcomed the invigoration of exchanges between the U.S. Congress and the Diet of Japan, praising the work of the U.S.-Japan Caucus and the Congressional Study Group on Japan in the United States Congress, the Japan-U.S. Parliamentary Friendship League in the Diet of Japan, as well as the U.S.-Japan Legislative Exchange Program and the Japan-U.S. Senate Inter-parliamentary Conference.  Nearly 200 Diet Members visited the United States in fiscal year 2013, and the number of Members of Congress visiting Japan in 2013 more than doubled over the previous year and continues to increase in 2014. 

Finally, the United States and Japan note that millions of Japanese and U.S. citizens visit each other’s country every year to visit family and friends, enjoy tourist sites and cultural experiences, and conduct the business transactions that underpin the tight economic relationship between two of the world’s largest economies.  To facilitate this travel, the United States and Japan plan to expedite work to establish a reciprocal arrangement, including through Japan’s participation in the U.S. Global Entry program, to streamline border formalities for trusted travelers from both our countries, and to make travel between the United States and Japan easier, faster and more secure.