PRESIDENT OBAMA'S REMARKS WITH PRIME MINISTER ABADI OF IRAQ

FROM:  THE WHITE HOUSE PRESIDENT OBAMA 

September 24, 2014

Remarks by President Obama and Prime Minister Abadi of the Republic of Iraq After Bilateral Meeting

United Nations Building

New York City, New York

12:05 P.M. EDT

PRESIDENT OBAMA:  Well, I want to thank Prime Minister Abadi and his delegation for the opportunity to meet here this morning.

As I’ve said previously, the United States and Iraq have a strategic relationship that is important to both countries.  We believe in a vision of an Iraq that is inclusive, in which Sunni, Shia, Kurd are all able to come together to peacefully iron out their differences and to achieve prosperity and peace for all the people of the country.

Obviously, Iraq is under enormous threat at the moment from the organization that calls itself ISIL.  And as I’ve discussed today and for many weeks now, we consider ISIL to be a threat not only to Iraq, but to the region, to the world, and to the United States.

We are committed to working in support of Iraq regaining territory that ISIL has currently taken over, and making sure that an inclusive Iraqi government is able to control its territory and push ISIL back.  In doing that, we are coordinating closely in our military campaign.  And the airstrikes and air support that we’re able to provide, as well as the training and assistance, I think will be critical in partnership with Iraqi forces on the ground.

One of the things I’m very impressed with, however, is the fact that Prime Minister Abadi understands that in order for Iraq to succeed it’s not just a matter of a military campaign; it’s also the need for political outreach to all factions within the country.  And I’ve been very impressed with Prime Minister Abadi’s vision.

Since he took over the prime-ministership, he has reached out systematically to all the peoples of Iraq.  He has articulated a vision of reform and a commitment to moving forward with many of the laws that had previously stalled but offer the potential of unleashing energy and entrepreneurship inside of Iraq.

And so, in addition to the military campaign in which we’re going to be coordinating, I want to say directly to the Prime Minister that we fully support his political vision, and we are also encouraged by his willingness to reach out and work with other countries in the region who are going to be very important in supporting our overall effort to defeat ISIL.

The last point I would make:  I think that the Prime Minister recognizes this is not something that is going to be easy and it is not going to happen overnight.  But after talking with the Prime Minister, I’m confident that he’s the right person to help work with a broad-based coalition of like-minded Iraqis and that they will be successful.

And my main message to the Prime Minister is that although we cannot do this for you, we can be a strong partner, and we are fully committed to your success.  We wish you Godspeed.  And we are grateful for your willingness to take on this leadership mantle at such a critical time in your country’s history.

PRIME MINISTER ABADI:  (As interpreted.)  In the name of God, Most Compassionate, Most Merciful, I would like to thank President Obama for allowing for this opportunity for Iraq to explain its points of view towards the confrontation that is happening in Iraq and in which Iraq is at the forefront of the confrontation against the forces of ISIL.

The Iraqi people have confronted this very brutal, ruthless attack on the Iraqi territory with bravery, and I am very proud to say that I am the commander of the Iraqi armed forces.  Our armed forces have also offered a lot of sacrifices when they confronted the Daesh attack.  And I can say today that in many of the areas we are now turning around the ground.  

Today, I am also proud to say that our people are brave, and the popular effort on the ground has been of utmost importance.  I am keen to protect our brave people on the ground, and I am proud of the sacrifices and protect them and protect all that they have been doing to protect their communities on the ground, their religious sites, and to stand a firm stance against the terrorist attacks that targeted the minorities, and targeted and killed children, men and women.

In my discussion with President Obama, I emphasized the importance of the respect of the sovereignty of Iraq and the territorial integrity of Iraq.  And as a Prime Minister of Iraq, I reaffirmed the importance for all forces that want to help Iraq to respect the sovereignty of Iraq and its territorial integrity. I am very thankful for President Obama and all the allies, all who are helping, for maintaining and respecting the territorial integrity of Iraq and its sovereignty.

Finally, one of the requests that I have put forth for President Obama is the importance of equipping and arming the Iraqi army and to provide the Iraqi armed forces with weapons.  As you know, our armed forces are in dire need for equipment and for weapons, mostly because we lost a lot of the equipment and the weapons in our confrontation and our fight against ISIL, and specifically when the ISIL groups came through the borders from Syria, many of the weapons were destroyed.  Some of the weapons fell in the hand of ISIL.  Therefore, I am very thankful for President Obama that he promised that weapons and supplies would be delivered to Iraq as soon as possible so Iraq can defeat ISIL and Iraq can overcome this crisis.

We are keen in Iraq to promote further the strategic relationship between our two countries, a strategic relationship that is based on mutual respect within the Strategic Framework Agreement that was signed between the two governments back in 2008.  I am pleased to say that President Obama has promised to reinvigorate the Strategic Framework Agreement not only to put the focus on the military and security aspect of that agreement, but also on all other levels -- scientific, educational, economic, cultural and academic, social and other aspects of our relationship.

Mr. President, I thank you for all your support and all the promises that you have given us.  And I hope to see that these promises will be concretely fulfilled on the ground as soon as possible.

Thank you.

PRESIDENT OBAMA:  Thank you very much, everybody.

DEFENSE OFFICIAL SAYS MILITARY COMPENSATION GROWTH RATE MUST BE SLOWED

DOD photo by Erin A. Kirk-Cuomo.

Right:  Acting Deputy Defense Secretary Christine H. Fox answers a question as Navy Adm. James A. Winnefeld Jr., vice chairman of the Joint Chiefs of Staff, listens during testimony before the Senate Armed Services Committee in Washington, D.C., Jan. 28, 2014. Fox and Winnefeld addressed the current budget environment and the possible requirement to slow the rate of growth in military compensation. 

FROM:  DEFENSE DEPARTMENT
Fox Says DOD Must Slow Growth of Military Compensation
By Jim Garamone
American Forces Press Service

WASHINGTON, Jan. 28, 2014 – The Defense Department must slow the rate of growth in military pay and compensation or the organization will not be able to fight and win the nation’s wars, Acting Deputy Defense Secretary Christine H. Fox said here today.

Fox, testifying before the Senate Armed Services Committee, said DOD must get a handle on pay and benefits or risk sending service members into harm’s way unprepared.

The deputy thanked the senators for supporting the Bipartisan Budget Act, which she said mitigates the worst of the problems DOD faces under the Budget Control Act of 2011. Still, she added, it only goes through the next two years, and this is a long-term problem.

“Beyond those two years, the BCA remains the law of the land,” she said. “If sequestration is allowed to persist, our analysis shows that it will lead to a force that is too small, inadequately equipped and insufficiently trained to fully defend the nation’s interests.”

Given this budgetary background, DOD civilian and military leaders have said time and again that the one-third of the defense budget consumed by military compensation cannot be exempt as an area of defense savings. “We must find ways to slow the rate of growth,” Fox told the committee.

Inflation-adjusted pay and benefit costs are 40 percent higher than in 2001, even though the active force today is just slightly larger. Defense health care costs alone have grown from less than $20 billion in 2001 to nearly $50 billion in 2013. Payments for housing costs also have increased faster than inflation.
“If this department is going to maintain a future force that is properly sized, modern and ready, we clearly cannot maintain the last decade’s rate of military compensation growth,” Fox said.

Military service is about more than just a paycheck. The jobs and service military personnel perform are as important. If the department doesn’t have money to maintain equipment, or supply the latest technology, or get service members the latest and best training “then they are being done a disservice,” the deputy said.
“When they’re sent into harm’s way, this disservice can quickly transition into a breach of trust,” Fox said. “Here I am referring to our collective, sacred obligation to provide our troops with the finest training and equipment possible, so that they can deploy to combat able to accomplish their mission and return to their families.”

The department does have recommendations for slowing the growth of compensation fairly and effectively, Fox said. “Most notably, just this year, Congress accepted a 1 percent basic pay raise, even though the employment cost index called for an increase of 1.8 percent. We are currently reviewing all military pays and benefits, and may offer further proposals.”

Fox spoke directly to the “COLA-minus-one” or “CPI-minus-one” provision included as part of the Bipartisan Budget Act. The provision required capping cost-of-living raises in retirement pay for working-age military retirees at 1 percent below inflation, as measured by the Consumer Price Index.

“To my knowledge, no DOD officials were consulted on the details of the BBA, including the CPI-minus-one provision,” she said. “The department fully supported the changes made to the provision to exempt military disability retirement and survivors.”

The department does support a comprehensive review of this provision, the acting deputy defense secretary said, including its effect on retirees not currently exempted. “If the Congress decides to retain the CPI-minus-one approach, we strongly recommend it be modified to include ‘grandfathering,’” she said.
Fox called on Congress to refrain from changing military retirement until the Military Compensation and Retirement Modernization Commission presents its final report in February 2015.

“There are many ways we might change military retirement, including more fundamental reforms,” she said. “Because the CPI-minus-one provision does not go into effect until December 2015, there is ample time for such a careful review, including waiting for the commission to provide its input.”

MARKETERS CHARGED BY FTC WITH DECEIVING BUSINESSES INTO PURCHASING CREDIT/DEBIT CARD PROCESSING FEES

FROM:  FEDERAL TRADE COMMISSION 
FTC Charges Marketers with Deceiving Small Businesses into Buying Credit/Debit Card Processing Services and Equipment

The Federal Trade Commission has charged an operation that sells credit and debit card payment processing services to small businesses with violating federal law.  The defendants allegedly made false and unsubstantiated claims and failed to disclose material facts to storefront businesses and sole proprietorships before they applied for services and equipment to process credit and debit card payments.  The FTC seeks to halt the allegedly illegal practices and return money to victims.

The defendants are Merchant Services Direct LLC (MSD), also doing business as Sphyra Inc.; Boost Commerce Inc.; Generation Y Investments LLC; Kyle Lawson Dove; and Shane Patrick Hurley.  The Washington State Attorney General’s Office has simultaneously filed an action against these defendants in the Superior Court for Spokane County, Washington.

According to the FTC’s complaint, as an “independent sales organization” (ISO), MSD sells to small local businesses the ability to accept credit and debit card payments.   The businesses pay fees whenever their customers pay with a credit or debit card.

As alleged in the complaint, MSD sales agents typically call small businesses and lead them to believe they are associated with the businesses’ current card processor, Visa or MasterCard, or their bank.  The sales agents allegedly promise substantial savings on credit and debit card processing.  They specify a much lower rate than the businesses currently pay, and quote one fee, a fixed per-transaction cost, without mentioning all the other fees the businesses will have to pay.  Merchants who ask if there are other fees allegedly are told there are none.

According to the FTC’s complaint, MSD agents also dupe customers into leasing new card processing terminals for two to four years, falsely claiming their current “swipe” terminals are outdated or incompatible with its services.  Sometimes they even claim the terminals are free.  Agents persuade merchants to sign fine-print, binding contracts on the spot by telling them the documents are merely applications – a ruse made easier, according to the FTC, by the fact that the contracts are labeled “applications.”  Merchants are often falsely told they can cancel any time.  Many victims discover their new lease obligation only after being billed, still owing the balance of their previous lease, which can be thousands of dollars.

Defendants also tout on various versions of their website “Guaranteed Lowest Rates,” claiming merchants could “save 30%” with “whole sale [sic] processing” or have “anywhere from 20% to 30% savings when switching to” MSD.  In fact, according to the FTC, there are no wholesale rates, as third parties process card payments, not MSD.   As alleged in the complaint, those who call MSD’s customer service department reach employees who either do not help them or say they will waive fees or provide refunds but don’t.  Customers who were promised they could cancel the “applications” they signed with no penalty are charged substantial cancellation fees, according to the FTC’s complaint.  Generally, only in response to complaints filed with the Better Business Bureau and state attorneys general have the defendants refunded money or waived fees.

The Commission vote authorizing the staff to file the complaint was 4-0.  The complaint was filed in the U.S. District Court for the Eastern District of Washington.  In addition to filing the lawsuit, the FTC has sought a court order immediately halting the unlawful practices along with an order freezing the defendants’ assets and appointing a receiver over the corporate defendants.

The FTC acknowledges the assistance of the Washington State Attorney General’s Office and the Better Business Bureau of Eastern Washington, North Idaho, and Montana.

NOTE:  The Commission files a complaint when it has “reason to believe” that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest.  The case will be decided by the court.