SECRETARY KERRY'S REMARKS WITH CHINESE FOREIGN MINISTER WANG YI

FROM:  U.S. STATE DEPARTMENT 

Remarks With Chinese Foreign Minister Wang Yi Before Their Meeting

Remarks

John Kerry

Secretary of State

Ben Franklin Room

Washington, DC

October 1, 2014

 SECRETARY KERRY:  Good afternoon, everybody.  It’s my distinct pleasure to welcome His Excellency, the foreign minister of China, Foreign Minister Wang Yi.  I met with the foreign minister in July in Beijing for a very productive Strategic & Economic Dialogue.  We spent two days together and President Xi opened up that meeting and closed the meeting.  And we are very grateful for China’s significant commitment to that dialogue.  And in addition, we had useful conversations in August during my trip to Burma for the ASEAN Regional Forum, and we had a chance to briefly talk in New York.  Knowing that we were going to be meeting here, we held back on the length and breadth of that conversation.

But I’m very pleased that he has taken time to visit us here in Washington on the occasion of China’s National Day, and we congratulate you on that and welcome you here.  And I’m pleased he’s taken time to come here and strengthen our relationship as part of the ongoing dialogue between us.

I want to emphasize that the United States welcomes the rise of a peaceful, prosperous, and stable China, and one that plays a responsible role in Asia and the world, and contributes to upholding the existing rules and the norms on economic and security issues.  I take note that China is stepping up and contributing to this challenge of Ebola, and we are appreciative for China’s willingness to put both equipment and personnel on the line in order to help deal with this.  We view that in very positive terms with respect to China’s important role in global leadership.

And that is why we are committed – that role and our interests together – in trying to find ways to cooperate on those issues of greatest consequence on a global basis while we manage some of the differences between us effectively.  We want to show a new model of relations in which we broaden our cooperation on the common interests and constructively manage those differences so that we can be as effective as possible.

The foreign minister and I are both coming off of a very busy and very productive week in New York for the climate summit and the UN General Assembly.  There I took pleasure in participating in President Obama’s meeting with Chinese Vice Premier Zhang Gaoli and I left those meetings encouraged, significantly encouraged, by his commitment on behalf of China to the dialogue with respect to climate change.  And particularly, we talked about dealing with the mitigating of threats from global climate change and also to trying to work together as we develop the targets for next year’s conference in Paris.  We also talked about containing Ebola as well as countering the challenge of radical extremism and terrorism, and particularly ISIL.

One of the issues that we’re going to discuss today, no doubt, is the situation in Hong Kong.  And as China knows, we support universal suffrage in Hong Kong accordant with the Basic Law, and we believe in open society with the highest possible degree of autonomy and governed by rule of law is essential for Hong Kong’s stability and prosperity.  And we have high hopes that the Hong Kong authorities will exercise restraint and respect for the protestors’ right to express their views peacefully.

China, importantly, is hosting APEC this year, and their hosting of that meeting could not be more timely or more important to all of us.  I know President Obama is personally looking forward to attending the APEC summit in November.  We’re grateful to the Chinese for helping to arrange the dates in a way that worked for everybody’s schedule.  And I think that the foreign minister and I in a few moments will discuss how we can make certain that that visit is a success, that it is as productive as possible, but also so that the APEC summit is the success that we all want it to be.

So Mr. Foreign Minister, I’m delighted you’re here, and I very much look forward to our conversation.  Thank you.

FOREIGN MINISTER WANG:  (Via interpreter) Secretary Kerry, friends from the press, today marks the 65th anniversary of the founding of new China.  It’s our National Day.  I want to share the joy of the Chinese people with you.  I also want to thank Secretary Kerry for his best wishes.  This is a regular visit to the United States by me; it is also a return visit for Secretary Kerry’s visit to China earlier this year.

More importantly, I’ve come to the United States to hold discussion with the U.S. side, to have strategic communication with the U.S. colleagues for President Obama’s trip to China for the APEC meeting and visit to China, particularly for the important consultations, talks between the two presidents.  I want to say that the common interests between us are far greater than our differences.  I agree with what Secretary Kerry said about the areas of cooperation.  Indeed, we need cooperation.  We can cooperate with each other.  And there is an increasing list of areas of cooperation between us, and I believe the list can go on.

There is a very important common mission for the two countries; that is, as the largest developing country and largest developed country in the world, China and the United States need to work together to build a new model of major country relations featuring non-conflict, non-confrontation, mutual respect, and win-win cooperation.  This meets our common interests, meets the expectation of the international community.  It is also in keeping with the trend of human progress.

We don’t think the process will be all smooth sailing.  There will be various risks and challenges on the way.  The China-U.S. relationship is just like a giant ship sailing on the sea.  It requires that both sides work jointly to keep the ship on the right course, keep injecting the impetus for it to forge ahead; and at the same time, we also work jointly to properly handle hidden rocks and shoals.  I believe we need to enhance mutual trust, strategic trust; reduce mutual strategic misgivings; and reduce our misjudgment.  As long as we work jointly in that direction, we will be able to meet our goal.  This is our common mission.  It is also the responsibility that we need to jointly fulfill for the international community.

The endeavor for building this new model of major country relationship is an ongoing process that we are undertaking right at this moment.  We are ready to work with the United States to enhance cooperation, properly manage our differences, and make unremitting efforts towards our common goal.

Secretary Kerry mentioned Hong Kong.  The Chinese Government has very firmly and clearly stated its position.  Hong Kong affairs are China’s internal affairs.  All countries should respect China’s sovereignty.  And this is also a basic principle governing international relations.  I believe for any country, for any society, no one will allow those illegal acts that violate public order.  That’s the situation in the United States, and that’s the same situation in Hong Kong.  We believe that the Hong Kong Special Administrative Region’s government has the capability to properly handle the current situation in accordance with the law.

And I am ready to have a full discussion with Secretary Kerry about those regional and international issues of mutual interest and also our strategic bilateral cooperation.  I hope that more consensus can be reached through such dialogue.  Thank you all.

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.

COURT ACTS TO STOP FRAUDULENT PYRAMID SCHEME ON FACEBOOK, TWITTER

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission announced an emergency enforcement action to stop a fraudulent pyramid scheme by phony companies masquerading as a legitimate international investment firm.

The SEC has obtained a federal court order to freeze accounts holding money stolen from U.S. investors by Fleet Mutual Wealth Limited and MWF Financial – collectively known as Mutual Wealth.  The SEC alleges that Mutual Wealth has been exploiting investors through a website and social media accounts on Facebook and Twitter, falsely promising extraordinary returns of 2 to 3 percent per week for investors who open accounts with the firm.  Mutual Wealth purports to invest customer funds using an “innovative” high-frequency trading strategy that allows “capital to be invested into securities for no more than a few minutes.”  In classic pyramid scheme fashion, Mutual Wealth encourages existing investors to become “accredited advisors” and recruit new investors in exchange for a referral fee or commission.

According to the SEC’s complaint filed in U.S. District Court for the Central District of California, almost nothing that Mutual Wealth represents to investors is true.  The company does not purchase or sell securities on behalf of investors, and instead merely diverts investor money to offshore bank accounts held by shell companies.  Mutual Wealth’s purported headquarters in Hong Kong does not exist, nor does its purported “data-centre” in New York.  Mutual Wealth also lists make-believe “executives” on its website, and falsely claims in e-mails to investors that it is “registered” or “duly registered” with the SEC.  Approximately 150 U.S. investors have opened accounts with Mutual Wealth and collectively invested a total of at least $300,000.

“Mutual Wealth used Facebook and Twitter as well as a team of recruiters to spread a steady stream of lies that tricked investors out of their money,” said Gerald W. Hodgkins, an associate director in the SEC’s Division of Enforcement.  “Fortunately we were able to quickly trace the fraud overseas and obtain a court order requiring Mutual Wealth to shut down its website before the scheme gains more momentum.”

According to the SEC’s complaint, Mutual Wealth operates through entities in Panama and the United Kingdom and uses offshore bank accounts in Cyprus and Latvia and offshore “payment processors” to divert money from investors.  Mutual Wealth’s sole director and shareholder presented forged and stolen passports and a bogus address to foreign government authorities and payment processors.

The SEC alleges that Mutual Wealth leverages the scope and reach of social media to solicit investors with its fraudulent pitch.  Mutual Wealth maintains Facebook and Twitter accounts that link to its website and serve as platforms through which it lures new investors.  Some of Mutual Wealth’s “accredited advisors” then use social media channels ranging from Facebook and Twitter to YouTube and Skype to recruit additional investors and earn referral fees and commissions.  Mutual Wealth’s Facebook page spreads such misrepresentations as “HFT portfolios with ROI of up to 250% per annum.  Income yield up to 8% per week.”  A Facebook post on Aug. 12, 2013, boasted “$1000 investment into the Growth and Income Portfolio made on April 8th, 2013 is now worth $2,112.77.”  Mutual Wealth regularly posts status updates for investors on its Facebook page, and the comment sections beneath the posts are often filled with solicitations by the accredited advisors.  Mutual Wealth also tweets announcements posted on its Facebook page.

The SEC’s complaint charges Mutual Wealth with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.  For the purposes of recovering investor money in their possession, the complaint names several relief defendants linked to offshore accounts to which investor funds were diverted from the scheme: Risort Partners Inc., Hullstar Capital LLP, Camber Alliance LLP, Kimrod Estate LLP, and Midlcorp Trade LTD.

The Honorable Dolly M. Gee has granted the SEC’s request for a court order deactivating Mutual Wealth’s website and freezing assets in all accounts at any bank, financial institution, brokerage firm, or third-payment payment processor (including those commercially known as SolidTrust Pay, EgoPay, and Perfect Money) maintained for the benefit of Mutual Wealth.

The SEC’s investigation, which is continuing, has been conducted by H. Norman Knickle and Mark M. Oh and supervised by Conway T. Dodge.  The SEC’s litigation will be led by Melissa Armstrong and Mr. Knickle.  The SEC appreciates the assistance of the Federal Bureau of Investigation, Financial and Capital Market Commission of Latvia, Ontario Securities Commission, and Cyprus Securities and Exchange Commission.

RECENT U.S. NAVY PHOTOS

 

FROM: U.S. NAVY

Sailors and Marines man the rails aboard the amphibious assault ship USS Peleliu (LHA 5) while entering Hong Kong. Peleliu is the flagship for the Peleliu Amphibious Ready Group on deployment in the U.S. 7th Fleet area of responsibility. U.S. Navy photo by Mass Communication Specialist 3rd Class Jasmine Sheard (Released) 130415-N-SH505-028

Hundreds of San Narciso residents cross the new San Pascual footbridge following an official ribbon cutting ceremony. The footbridge was one of seven engineering civic action projects completed by Combined/Joint Civil Military Operations Task Force (CJCMOTF) units in support of exercise Balikatan 2013, an annual Philippine-U.S. bilateral exercise. U.S. Navy photo by Mass Communication Specialist 1st Class Chris Fahey (Released) 040414-N-VN372-002.


 

SAILORS AND MARINES FROM USS MAKIN ISLAND DELIVER FOOD TO THE ELDERLY IN HONG KONG

FROM:  U.S. NAVY
Photo:  USS Makin Island.  Credit:  U.S. Navy.
Makin Island Sailors and Marines Help Deliver Food to the Elderly during Hong Kong Port Visit
By Mass Communication Specialist 1st Class David McKee, USS Makin Island (LHD 8) Public Affairs
HONG KONG (NNS) -- A group of Sailors and Marines from USS Makin Island (LHD 8) and the embarked 11th Marine Expeditionary Unit (MEU) joined local volunteers to help deliver bags of food to residents of the Kwai-Chung Elderly Center in Hong Kong during a community service project May 26.

A group of 35 Sailors and Marines participated in the event as part of the ship's May 25-28 port visit to Hong Kong.

The project also coincided with local observances of Mother's Day, Father's Day and the upcoming Dragon Boat festival in June.

Aviation Boatswain's Mate (Handing) 1st Class Mark Higgenbottom, one of the Sailors volunteered for the project, said that in addition to bringing food and sundry items to the residents he shared his time with men like Cheung Kin Yip.

Through a translator, Higgenbottom said he got to know the 70 year-old man and found out that he enjoys table tennis and the Internet.

"Mr. Yip was hip for an old guy," said Higgenbottom. "The guy had a lot of energy and went out of his way to show us he stayed active playing table tennis and using the Internet to stay in touch with his family and friends."

Yip lives alone in his apartment, which is about the size of a large bedroom in a typical American home and contains a living area, bathroom and kitchen.

Through the translator, he told Higgenbottom that he enjoys a simple life of getting up in the morning and checking the stock market on the Internet and checking his email and Facebook page.

"It's easier to live on my own," said Yip through the translator. "I like my independence."

Lt. Jeff Perry, a chaplain aboard Makin Island who organized the community service project, said he thinks community relations projects like helping the elderly foster good relations in the communities that the Navy and Marine Corps visits.

"Projects like this put a face on the Navy and Marine Corps and helps build a truer and broader image of us and shows another side of the military that isn't often shown by the media," said Perry.

The group of Makin Island Sailors and Marines delivered food to two communities and another group of volunteers spent time at a local dog shelter. More than 2,000 Sailors and Marines were able to experience the Hong Kong culture during the four-day port visit.

Makin Island is the first U.S. Navy ship to deploy using a hybrid-electric propulsion system. By using this unique propulsion system, the Navy expects over the course of the ship's lifecycle, to see fuel savings of more than $250 million, proving the Navy's commitment to energy awareness and conservation.

This initiative is one of many throughout the Navy and Marine Corps that will enable the Department of the Navy to achieve the Secretary of the Navy's energy goals to improve our energy security and efficiency afloat and ashore, increase our energy independence and help lead the nation toward a clean energy economy.

Makin Island is the flagship of the Makin Island Amphibious Ready Group that is currently deployed to the U.S. 7th Fleet area of operations.

The 7th Fleet area of operations includes more than 52 million square miles of the Pacific and Indian oceans, stretching from the international date line to the east coast of Africa, and from the Kuril Islands in the north to the Antarctic in the south.