LISA KUBISKE MAKES REMARKS AT GLOBAL REPORTING INITIATIVE ROUNDTABLE

FROM:  U.S. STATE DEPARTMENT
Remarks at the Global Reporting Initiative Roundtable
Remarks
Lisa J. Kubiske
Deputy Assistant Secretary for International Finance and Development, Bureau of Economic and Business Affairs
GRI
Washington, DC
June 22, 2015

As Prepared

Welcome to what I consider to be an incredibly important collaboration – and thank you for taking time out of your very busy schedules to be here this afternoon. Many of our private sector participants have come long distances to participate in these roundtables, and we greatly appreciate their willingness to do so. Although this is an event jointly organized by GRI and The State Department’s Bureau of Economic and Business Affairs, GRI has done more than its fair share of the preparations. Teresa, Robyn, and the rest of the GRI team have done an incredible job.

2015 will be a critical year for development and for the multilateral system. Three major UN conferences this year together have the potential to form a global consensus on development that could last 15 years or more and have impacts that affect generations to come.

All the reflection and analysis that takes place before these conferences reinforces what we already know: the private sector is the key player in advancing development. This is why it is so important that GRI brought together such innovative and dynamic U.S. companies here today so that we in the U.S. government can learn from and capitalize on your experiences and best practices.

For 17 years, the Secretary of State has, through the “ACE” awards or Awards for Corporate Excellence, formally recognized U.S. businesses that undertake responsible activities to improve lives and advance the needs of local communities around the world.

Beyond private philanthropy and corporate social responsibility, the private sector is a key partner in development through establishing new enterprises, creating jobs, providing goods and services, generating income and profits, and contributing to public revenues. Domestic private sector growth is the lifeblood to developing countries’ economies, whereby businesses deliver investment, trade, jobs, and innovation. Domestic private finance has greatly surpassed public finance in recent years, making it the single largest source of finance for all developing countries.

According to World Bank, in 2014, private infrastructure investment for energy, transport and water projects was $107.5 billion among the 139 emerging economies. Foreign direct investment (FDI) is by far the biggest source of international capital flows to developing countries – around 60% on average.

But there is also growing recognition that some of the most important, effective development initiatives involve the public and private sectors working together. Today, Official Development Assistance represents only about 28% of all official and private flows from OECD members. Through innovative financing mechanisms and public-private partnerships, ODA can spur key investments and prompt important reforms in developing countries that enable the private sector to have even more impact.

The UN conferences this year provide a real opportunity to reaffirm and build upon the global development consensus that we developed in Monterrey and confirmed in Doha. And the private sector should be at the heart of that consensus.

The U.S. Government is taking initiative to make the world a more hospitable place for U.S. businesses to set up shop. We are negotiating trade and investment agreements. Some are in the headlines, like TPP and T-TIP. Some, less so, like the China BIT negotiations. We are also working hard to put together the National Action Plan on Responsible Business Conduct that President Obama announced last September. We believe the plan will help to consolidate the excellent brand and reputation U.S. businesses have established around the world by being responsible partners in development for nations and communities alike.

I look forward to today’s discussion and the ideas that come from it. And I am excited about finding new ways we can further collaborate and drive private sector investment and public private partnerships.

EX-IM BANK CHAIRMAN MAKES STATEMENT ON EXPORT DATA

FROM:  U.S. EXPORT-IMPORT BANK 
Export-Import Bank Chairman Fred P. Hochberg Statement on the Release of Export Data from the Commerce Department
U.S. Sets Record for Fifth Consecutive Year

Washington, D.C. – Ex-Im Bank Chairman and President Fred P. Hochberg issued the following statement with respect to the FY 2014 export data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department. According to BEA, the United States exported a record $2.345 trillion of goods and services in FY 2014, which represents a 2.9 percent increase and a record high for the fifth consecutive year.

In December, the United States exported $194.9 billion of goods and services. This figure represents a decrease from November’s $196.4 billion exports total, which was revised slightly upward.

“These export numbers are a testament to the quality and innovation of American goods and services, but they don’t mean we can rest on our laurels,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “The thousands of U.S. businesses, small and large, that count on Ex-Im Bank being there to support them to win export sales and add good-paying jobs here in America can’t afford an unforced error that would threaten the positive momentum demonstrated by today’s news.”

EXPORT-IMPORT BANK SUPPORTS VET-OWNED BUSINESSES

FROM:  U.S. EXPORT-IMPORT BANK 
Ex-Im Bank Supports Veteran-Owned Businesses as they Export Products Abroad and Support Jobs at Home

Washington, D.C. – As Veterans Day approaches, the Export-Import Bank of the U.S. remains proud to support veterans across all of the branches who continue to serve the nation by exporting quality, made-in-America goods and services abroad, while creating more jobs in local communities across the country.

“Veterans Day—as well as the Marines’ birthday on November 10th—affords us a wonderful opportunity to thank our veterans for their service, and to reaffirm our support for veteran-owned businesses as they seek out opportunities in the global marketplace,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Those who bravely served our country, and returned home to start and run businesses, deserve to have reliable support standing behind them as they sell quality products and promote American economic leadership overseas—and Ex-Im Bank is proud to be a part of that support for countless veteran-owned businesses.”

The following veteran-owned small business success stories underscore the commitment the Bank has made to ensuring that those who sacrificed for this country are supported in turn. Ex-Im equips these businesses with the financing support needed to grow, win sales in global markets, and create good-paying American jobs.

Jeco Plastic Products, headquartered in Plainfield, Ind., sells custom high-tolerance pallets to customers abroad.

Jeco opened for business in 1973, but it did not start exporting until joining forces with Ex-Im Bank in 1999. Since then, Jeco has shipped products to Germany, Austria, Japan, Mexico, and Canada, among others.  The export growth, in turn, has led to the creation of 23 jobs and could very well lead to the creation of 27 more over the next two years. Approximately 65 percent of company sales are export related.

“Jeco has grown 300 percent since we started using Ex-Im Bank so we could offer open account terms to overseas customers,” said Craig Carson, owner and CEO of Jeco. “We anticipate an additional 300 percent growth from our existing base if we continue to have Ex-Im Bank support. We have routinely displaced low-cost alternatives from competitors in China on the basis of technology and kept the production base in the U.S. We could not have done this without Ex-Im Bank, and probably would not have survived the downturn in 2008 and 2009.”

Carson graduated from the U.S. Military Academy in 1968 and commanded an airborne infantry company in Vietnam.

Energy International Corporation (EIC), based in Canton, Mich., exports a variety of products that includes HVAC (Heating, Ventilating, and Air Conditioning) electromechanical components, cooling towers, fire and smoke curtains, fire dampers, and industrial plumbing.

The company was founded in 1979 by Dr. Nassib Fawaz, a U.S. Army veteran, to meet a need for HVAC and electromechanical components for construction projects in the Middle East. Today the company employs 170 people, 18 of whom work in the company’s Canton office.

Since it started using Ex-Im Bank products in 1985, EIC has transacted more than $100 million in business over the years. Total revenue in 2013 amounted to nearly $15.7 million, and exports accounted for all of it.

“Plain and simple, without Ex-Im Bank we would not have been able to finance our export receivables,” said Fawaz. “Our sales have expanded by more than 100 percent since receiving Ex-Im Bank support.”

Surface Armor, a small business based in Rockwall, Texas, exports temporary surface protection films and tapes.

Founded in 2005 by a service disabled veteran who had served for seven years in the U.S. Air Force, the company now employs eight people. Since taking advantage of Ex-Im Bank financing in 2014, the company, which previously exported to Brazil, Peru, Mexico, and Europe, has expanded its export reach to China. Due to Ex-Im Bank’s support, annual sales have grown by more than $100,000.

“Without credit insurance coverage from Ex-Im Bank, we would not have been able to provide credit terms to customers in China and would not gotten that business,” said Rick Pietrykowski, owner of Surface Armor. “Previously we could not offer foreign buyers favorable credit terms.”

LEADERS MAKE STATEMENT ON TRANS-PACIFIC PARTNERSHIP (TPP)

FROM:  THE WHITE HOUSE 
November 10, 2014
Trans-Pacific Partnership Leaders’ Statement
November 10, 2014

We, the Leaders of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam, welcome the significant progress in recent months, as reported to us by our Ministers, that sets the stage to bring these landmark Trans-Pacific Partnership (TPP) negotiations to conclusion. We are encouraged that Ministers and negotiators have narrowed the remaining gaps on the legal text of the agreement and that they are intensively engaging to complete ambitious and balanced packages to open our markets to one another, in accordance with the instructions we gave them in Bali a year ago. With the end coming into focus, we have instructed our Ministers and negotiators to make concluding this agreement a top priority so that our businesses, workers, farmers, and consumers can start to reap the real and substantial benefits of the TPP agreement as soon as possible.

As we mobilize our teams to conclude the negotiations, we remain committed to ensuring that the final agreement reflects our common vision of an ambitious, comprehensive, high-standard, and balanced agreement that enhances the competitiveness of our economies, promotes innovation and entrepreneurship, spurs economic growth and prosperity, and supports job creation in our countries. We are dedicated to ensuring that the benefits of the agreement serve to promote development that is sustainable, broad based and inclusive, and that the agreement takes into account the diversity of our levels of development.  The gains that TPP will bring to each of our countries can expand even further should the open approach we are developing extend more broadly throughout the region.  We remain committed to a TPP structure that can include other regional partners that are prepared to adopt its high standards.

Our fundamental direction to our Ministers throughout this process has been to negotiate an outcome that will generate the greatest possible benefit for each of our countries.  In order to achieve that, our governments have worked to reflect the input we each have received from our stakeholders in the negotiation.  Continued engagement will be critical as our Ministers work to resolve the remaining issues in the negotiation.

AG HOLDER ANNOUNCES DOJ DESIGNEE CO-CHAIR OF PRESIDENT'S TASK FORCE ON PUERTO RICO

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, November 7, 2014

Attorney General Holder Announces Stuart Delery Will Serve as the Department of Justice Designee as Co-Chair of the President’s Task Force on Puerto Rico
Attorney General Eric Holder announced today that Stuart Delery, the Acting Associate Attorney General, will serve as the Department of Justice’s designee as Co-Chair of the President’s Task Force on Puerto Rico.

“Stuart Delery is an exceptional public servant who will continue the work of his predecessors, Tom Perrelli and Tony West, as Co-Chair of the President’s Task Force on Puerto Rico,” said Attorney General Holder.  “Stuart demonstrated his commitment to strengthen our nation’s security and to protect public health and safety in his prior role as Assistant Attorney General for the Civil Division.  Stuart will serve the Task Force – and the people of Puerto Rico – well.”

“The ongoing work of the Task Force reflects the Administration’s – and the Department of Justice’s – commitment to the people of Puerto Rico,” said Associate Attorney General Delery.  “I am pleased to have the opportunity to contribute to the Task Force, and look forward to working with my federal colleagues and Commonwealth officials in Puerto Rico and Washington.”

 The President’s Task Force on Puerto Rico, which is co-chaired by the Attorney General’s designee and the White House Director of Intergovernmental Affairs, was created by President Bill Clinton to examine Puerto Rico’s political status and to identify a process by which the people of Puerto Rico could express their views on the subject.  The Task Force continued to address these issues through the Administration of President George Bush.  President Barack Obama expanded the Task Force’s scope and directed it to recommend policies to promote job creation, education, health care, clean energy, and economic development on the island.  The Task Force published its report and recommendations to the President and Congress in March of 2011, and its efforts to implement the recommendations continue today.

EXPORT-IMPORT BANK SAYS IT APPROVED $200 MILLION IN SUPPORT OF RENEWABLE ENERGY EXPORTS IN FY 2014

FROM:  U.S. EXPORT-IMPORT BANK 

Ex-Im Bank Approves $200 Million to Support Renewable Energy Exports in FY 2014

Washington, D.C. – The Export-Import Bank announced today that it authorized approximately $200 million to finance U.S. renewable energy exports in FY 2014, bringing its total support to nearly $2 billion since 2009. Backed by a congressional mandate to support environmentally beneficial U.S. exports, Ex-Im is committed to empowering American companies to sell their renewable energy goods and services in overseas markets, which results in more highly skilled jobs for U.S. workers.

“American businesses have the innovation, technologies, and skilled workers needed to seize the unprecedented opportunities emerging in the global renewable energy sector,” said Ex-Im Chairman and President Fred P. Hochberg. “Our goal at Ex-Im is to fill the gap when private lenders can’t offer support, so that U.S. companies can compete on a level playing field in this growing market.”

Last year alone, the Bank’s nearly $200 million in financing authorizations enabled U.S. companies to ship approximately $550 million worth of renewable energy exports to the global marketplace in support of wind, solar, hydropower, and geothermal projects. Private sector lenders generally are unable to offer longer financing terms on renewable energy projects, so the  Bank’s support is especially important in a sector where capital needs and fuel costs are spread across the lives of projects in very different ways as compared with traditional energy projects.

NSF FUNDS SIMULATIONS TO TRAIN STUDENTS IN CYBERSECURITY

FROM:  NATIONAL SCIENCE FOUNDATION 
Cybersecurity: It's about way more than countering hackers
Growing professionals in cybersecurity means supporting an interdisciplinary approach that develops sophisticated thinkers

It's tense in the situation room. A cyber attack on the electrical grid in New York City has plunged Manhattan into darkness on a day that happens to be the coldest in the year. Concurrently, the cellular phone network has been attacked, silencing smartphones and sowing confusion and panic. A foreign power has claimed responsibility for the attacks and says more are coming. Your job is to look at geopolitical factors, intelligence feeds, military movements and clues in cyberspace to predict what may be happening next. Your goal is to make a recommendation to the President.

This scenario is thankfully not real, but it is the kind of simulation planned for students in the cybersecurity program at California State University, San Bernardino (CSUSB). With funding from the National Science Foundation's (NSF) CyberCorps®: Scholarships for Service (SFS) program, undergraduate and graduate students take an interdisciplinary approach to cybersecurity.

"We provide an environment where business students can work with engineers on drones, and students from political science can work on predictive modeling," said Principal Investigator (PI) Tony Coulson. "Our students can major in business, public administration, criminal justice, computer science, intelligence, all with cyber security as an option. We produce students who can problem-solve--people who can understand politics and finance as well as computer science."

Cybersecurity is a field that has received a lot of attention in recent years because of hacking episodes that have compromised networks, and in turn, the personal information of citizens who depend on a safe cyberspace to do such activities as banking and shopping. Following such a breach, attention is generally focused on identifying the hackers and their methods.

Among the options for students supported through San Bernardino's SFS program is being educated in cyber intelligence to deal proactively with cyber threats--to predict malicious behavior before it happens. Doing so draws not only on a background in computer and information science, but also on an understanding of human behavior and psychology and the political and economic environment. About 50 students have gone through the program, including completing internship requirements, and Coulson reports 100 percent placement with employers.

"The San Bernardino project is one of 166 active projects around the country fully or partly funded by SFS," said SFS Lead Program Director Victor Piotrowski. "Cybersecurity is a dynamic and evolving field, and the country needs talented people with the skills to protect U.S. interests around the world. Through SFS, we prepare students for high-paying careers in government, and increase the capacity of institutions to offer quality course work in this area."

A condition of students' receiving support through SFS is that they put their skills to work in a government agency for a period equal to the duration of their scholarship. Coulson says that after completing the program at CSUSB, students often have to choose from multiple offers. The program boasts having students placed in many areas of government.

"CSUSB students have a depth of skills and often pick their dream jobs," said Coulson, including a student who got a job at his first-choice agency--the National Archives.

San Bernardino is a poor community, and the good jobs available to SFS graduates can make a huge difference to them and their families. To promote their success in finding and keeping employment, the professional development offered to students goes beyond their academic work to include business etiquette, mentoring, how to succeed at an internship, and how to conduct oneself successfully in an office. The goal is to produce a graduate ready to be hired.

In addition to traditional essay-based projects, students have to complete a very hands-on final exam, requiring that they pick locks and use digital and biometric information to hack into a network. According to Coulson, they enjoy the challenge.

Along with running the SFS project, Coulson is co-PI on another NSF-supported project, CyberWatch West, funded through the Advanced Technological Education program (ATE).

"Despite Silicon Valley being on the West coast, and California having the largest population of community colleges in the country, there are very few cybersecurity programs here," said Coulson.

So CyberWatch West aims to help community colleges, K-12 schools and universities link together in 13 western states to develop faculty and students in cybersecurity. The project is a resource for faculty to identify curriculum pathways and outreach, find mentors and engage students in competitions, events and presentations.

"There's such a need in the Los Angeles and Orange County areas," said Coulson. There are something like 2,500 open positions, and we're graduating 200 kids."

Bringing together cybersecurity, law and digital forensics

Also responding to the need for a cybersecurity workforce prepared to deal with today's complex problems is an SFS project for undergraduates and graduate students at the University of Illinois, Urbana-Champaign (UIUC). The project has graduated 25 students who are already working in government (reflecting another 100 percentage placement rate), and another 20 are set to graduate next May.

Since last year, this project offers scholarships to law students as well as engineering and computer science students. According to PI Roy Campbell, few lawyers understand cybersecurity and few computer scientists understand the legal framework involved in prosecuting and preventing cyber crimes.

The first law student to be accepted in the program, Whitney Merrill, is a recent law school graduate currently practicing as an attorney while completing her master's in computer science at UIUC. She found the combination of cybersecurity and law in the UIUC program to be valuable.

"The two fields are fiercely intertwined," said Merrill. "Understanding both fields allows me to better serve and advocate for my clients. Additionally, I hope to be able to help the two communities more effectively communicate with each other to create tools and a body of law that reflects accurately an understanding of both law and technology."

Merrill found the program challenging at first.

"But my interest and love for the subject matter made the challenging workload (29 credits last semester) enjoyable," she added. "Working towards a mastery in both fields has also helped me to spot legal issues where I would not have before."

Next summer Merrill will be working as a summer intern at the Federal Trade Commission in their Division of Privacy and Identity Protection. She graduates in December 2015.

With additional NSF support, a new related program in digital forensics at UIUC has the goal of building a curriculum that will teach students about cybersecurity in the context of the law enforcement, the judicial system, and privacy laws.

"Digital forensics is not the sort of area a computer scientist can just jump into," Campbell said. "It's not just malware or outcropping of hacking techniques. It has to be done in a deliberate way to produce evidence that would be acceptable to courts and other entities."

Co-PI Masooda Bashir says digital forensics gets to the heart of the multidisciplinary nature of cybersecurity.

"If you think about the amount of digital information that is being generated, exchanged, and stored daily you begin to understand the impact that the field of Digital Forensics is going to have in the coming years, " she said. "But Digital Forensics (DF) is not only a technical discipline, but a multidisciplinary profession that draws on a range of other fields, including law and courtroom procedure, forensic science, criminal justice and psychology."

She added, " I believe it is through integration of such relevant nontechnical disciplines into the DF education we can help students develop the comprehensive understanding that they will need in order to conduct examinations and analyses whose processes and findings are not just technically sound, but legal, ethical, admissible in court, and otherwise effective in achieving the desired real-world goal."

As the new program evolves, Masooda is drawing on her background as a computer scientist/psychologist to add the psychology of cybercrime to the curriculum. She's also working on a project examining cybersecurity competitions to understand their impact on the cybersecurity workforce and also to better understand the psychological factors and motivations of cyber security specialist and hackers.

Students with an interest in cybersecurity can start planning now

The U.S. Office of Personnel Management maintains a website where students can get information of SFS and the institutions that are participating in it. Meanwhile, PIs can update their project pages and agency officials can check resumes for students with the qualifications they need.

In the evolving field of cybersecurity, individuals with technical skills and knowledge of the social and legal context for what they do will continue to be highly desirable workers

EXPORT-IMPORT BANK GUARANTEES LOAN FOR EXPORTING TRANSMISSION TOWERS TO CANADA

FROM:  U.S. EXPORT-IMPORT BANK 

Ex-Im Bank Guarantees $21 Million Export Loan

Transaction Supports Hundreds of U.S. Jobs in Texas

WASHINGTON, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) today announced its guarantee of a $21 million revolving loan facility by Cadence Bank to Jyoti Americas LLC for the export to Canada of lattice transmission towers to be constructed by U.S. workers in Conroe, Texas.

The 220,000 square-foot Jyoti Americas manufacturing plant already employs about 159 workers. As a result of this transaction, an additional shift of skilled workers will be added to the present workforce for this export production.

“We’re pleased to support both Jyoti’s direct investment in America, and the jobs that open up when U.S. manufacturers export,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “This transaction also illustrates how exporters like Jyoti Americas can get fast export credit through one of Ex-Im’s delegated-authority lenders, Cadence Bank. Ex-Im’s guarantee helped clinch the sale, and paved the way for more business and U.S. jobs.”

Jyoti Americas LLC is wholly-owned subsidiary of Jyoti Structures, Ltd., India, which directly invested $41 million to establish a state-of-the-art manufacturing plant in Conroe. The Texas employees will source U.S.-produced steel to fabricate up to 54,000 metric tons annually. Jyoti Americas’ customer in Canada requires electric transmission towers for the Labrador-Island Link LP, an element of the Lower Churchill Project which generates and distributes hydroelectric power to Canada’s Atlantic provinces. Jyoti Americas will design, manufacture, and test eleven different types of high-voltage towers weighing a total 34,000 metric tons.

“We are delighted to receive this support from Ex-Im Bank which paved the way for us to secure and smoothly execute this prestigious export to Canada,” said Ashok Goyal, Joint Managing Director at Jyoti. “With Ex-Im Bank’s guarantee support along with Cadence Bank’s working capital facilities, we look forward to many more such successes globally.”

EXPORT-IMPORT BANK SAYS BILLION DOLLAR GUARANTEE OF PEMEX BONDS SUPPORTS U.S. JOBS

FROM:  U.S. EXPORT-IMPORT BANK 

Ex-Im Bank Supports U.S. Jobs Through $1 Billion Guarantee of Pemex Bonds To Be Issued in the Capital Markets

Guarantee of Pemex Bonds Will Support an Estimated 6,700 U.S. Jobs 

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) on Monday approved two authorizations totaling $1 billion in financing to support the export of U.S. goods and services to Petróleos Mexicanos (Pemex), Mexico's national oil-and-gas company.

Ex-Im Bank’s financing will support approximately 6,700 U.S. jobs, at both large and small businesses, according to Bank estimates derived from Departments of Commerce and Labor data and methodology.

“Capital-markets financing is an innovative and proven approach that helps to provide funding for Pemex’s purchases of made-in-America goods and services at no extra cost to the U.S. Treasury,” said Ex-Im Bank Chairman and President Fred P. Hochberg. ”With these authorizations, Ex-Im Bank is continuing to meet our mission to support U.S. exporters and their workers by helping to maintain American jobs in both large and small businesses around the country.”

This transaction is assisting in financing exports to Pemex of American-made oil-field and gas-field drilling services, drilling platforms, turbine generators, mud pumps, chemicals, spare parts, geophysical studies and safety equipment – among numerous other U.S.-produced goods and services.

One of the many U.S. small businesses that is benefiting from this Ex-Im Bank financing for Pemex is Checkpoint Pumps & Systems in Mandeville, La., near New Orleans. Checkpoint Pumps, a chemical-injection packages provider, is a single source for concept, engineering, manufacturing, testing and field service. The company has approximately 70 employees at its Mandeville facility and 30 additional employees at other locations worldwide.

“We confidently expect that Ex-Im Bank financing will play an even larger role in our growth within the expanding Latin American market in the coming years,” said David Cheadle, Checkpoint’s Latin American sales manager.

Pemex will issue Ex-Im Bank-guaranteed bonds in the capital markets to fund the purchases of these exports.

EX-IM BANK AUTHORIZES ALMOST $65 MILLION IN LOANS FOR WIND POWER PROJECTS IN PERU

FROM:  U.S. EXPORT-IMPORT BANK 

Ex-Im Financing Supports the Export of Wind Turbines made in Kansas and Iowa to Peru

The sale will support approximately 800 jobs in those states

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) has authorized a pair of direct loans to two wind power projects in Peru for the export of wind turbines manufactured in Hutchinson, Kan., and Fort Madison, Iowa, by Siemens Energy Inc.  

The financing, almost $65 million in total, represents Ex-Im Bank’s first renewable-energy transactions in Peru and will support approximately 800 U.S. jobs in Kansas and Iowa, according to bank estimates derived from Departments of Commerce and Labor data and methodology. Additionally, 20 percent of each transaction should provide indirect support to small-business exporters.

“These transactions reflect our continued commitment to increasing U.S. renewable energy exports while supporting good-paying jobs here at home,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “During this fiscal year alone, Ex-Im Bank has approved financing for five wind farm projects, and we are looking to do more in the near future. This financing helps ensure that the turbines helping to power Peru are made here in the U.S. by American workers, rather than in a competing country.”

The wind turbines are destined for use in the Marcona wind project and the Tres Hermanas wind project, which are located in close proximity in the Ica region of southern Peru and are estimated to yield an aggregate 129 Mega Watts. Repayment terms are 17.3 years for the Marcona project and 16.6 years for the Tres Hermanas project, respectively.

Siemens Energy Inc. is a U.S. subsidiary of Siemens AG, an engineering company that operates in the industry, energy, healthcare, and infrastructure and cities sectors. The company reported revenue of $5.9 billion in exports and employs approximately 52,000 people throughout all 50 states and Puerto Rico.

“In addition to manufacturing wind turbine blades in Iowa and assembling nacelles in Kansas for projects across the United States, we’ve been able to successfully export our equipment to Americas wind projects in Canada, Chile, Brazil and with Ex-Im Bank’s help, Peru, ” said Mark Albenze, CEO of Siemens’ Onshore Wind Americas business. “Being able to export our equipment has helped support more than 800 manufacturing jobs in the heartland of the U.S. at a time when the U.S. wind market continues to be beleaguered by policy uncertainty.”

In FY 2013 alone, Ex-Im Bank authorized $257 million to support renewable energy exports, primarily to Central and Latin America.

EXPORT-IMPORT BANK SAYS U.S. EXPORTS IN MAY WERE $195.5 BILLION

FROM:  U.S. EXPORT-IMPORT BANK 
U.S. Exports Reach $195.5 Billion in May

Export-Import Bank Financing Support Helps Create American Jobs

Washington, D.C. – The United States exported $195.5 billion of goods and services in May 2014, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

“The numbers show that the world’s consumers continue to value U.S. goods and services for their quality and reliability,” said Export-Import Bank Chairman and President Fred P. Hochberg. “Given a level playing field, U.S. exporters can compete with anyone in the world, and Ex-Im Bank is proud to support them abroad as they support jobs here at home.”

Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 45.7 percent above the level of exports in 2009, and have been growing at an annualized rate of 8.9 percent when compared to 2009.

During the same time period among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, were Panama (22.5 percent), Russia (19.6 percent), Peru (17.9 percent), Colombia (17.4 percent), Ecuador (17.3 percent), Hong Kong (17.3 percent), Argentina (16.3 percent), Nigeria (15.1 percent), Chile (14.8 percent) and Indonesia (14.6 percent).

PRESIDENT OBAMA, GERMAN CHANCELLOR MERKEL MAKE REMARKS AT JOINT PRESS CONFERENCE

May 02, 2014

FROM:  THE WHITE HOUSE 

Remarks by President Obama and German Chancellor Merkel in Joint Press Conference

Rose Garden

12:07 P.M. EDT

PRESIDENT OBAMA:  Well, good morning, everybody.  It is always a great pleasure to welcome my friend Chancellor Merkel to the White House.  Germany is one of our strongest allies, and Angela is one of my closest partners.  And with her indulgence, I want to start by making two brief comments.

First, as President, my top priority is doing everything that we can to create more jobs and opportunity for hardworking families -- for our economic strength is a source of strength in the world.  And this morning, we learned that our businesses created 273,000 new jobs last month.  All told, our businesses have now created 9.2 million new jobs over 50 consecutive months of job growth.

The grit and determination of the American people are moving us forward, but we have to keep a relentless focus on job creation and creating more opportunities for working families.  There’s plenty more that Congress should be doing, from raising the minimum wage to creating good construction jobs rebuilding America.  And I want to work with them wherever I can, but I keep acting on my own whenever I must to make sure every American who works hard has the chance to get ahead.

Second point -- I also want to say on behalf of the American people that our thoughts are with the people of Afghanistan, who have experienced an awful tragedy.  We are seeing reports of a devastating landslide, on top of recent floods.  Many people are reported missing; rescue efforts are underway.  Just as the United States has stood with the people of Afghanistan through a difficult decade, we stand ready to help our Afghan partners as they respond to this disaster.  For even as our war there comes to an end this year, our commitment to Afghanistan and its people will endure. 

Now, Angela, I’m still grateful for the hospitality that you and the German people extended to me, Michelle and our daughters last year in Berlin.  It was an honor to speak at the Brandenburg Gate.  You promised me a warm welcome and delivered an unbelievable 90-degree day in Berlin. 

This morning, our work touched on the range of issues where the United States and Germany are vital partners.  We agreed to continue the close security cooperation -- including law enforcement, cyber, and intelligence -- that keeps our citizens safe.  We reaffirmed our strong commitment to completing the Transatlantic Trade and Investment Partnership -- T-TIP -- which is critical to supporting jobs and boosting exports in both the United States and in Europe.

We discussed energy security, including the importance of Europe diversifying its energy sources.  The United States has already approved licenses for natural gas exports, which will increase global supply and benefit partners like Europe.  And T-TIP would make it even easier to get licenses to export gas to Europe.

At our working lunch, we’ll review our negotiations with Iran and our shared determination to prevent Iran from acquiring a nuclear weapon.  We’ll discuss Syria, where we continue to support the moderate opposition and provide humanitarian relief to the Syrian people.  I look forward to briefing Angela on my trip to Asia, a region where both our nations can help ensure that all countries in the Asia Pacific adhere to international law and international norms.

Of course, most of our time was spent on the situation in Ukraine.  Angela, I want to thank you for being such a strong partner on this issue.  You’ve spoken out forcefully against Russia’s illegal actions in Ukraine.  And you’ve been a leader in the European Union, as well as an indispensable partner in the G7.  And your presence here today is a reminder that our nations stand united.

We are united in our determination to impose costs on Russia for its actions, including through coordinated sanctions.  We’re united in our unwavering Article 5 commitment to the security of our NATO allies, including German aircraft joining NATO patrols over the Baltics.  We’re united in our support for Ukraine, including the very important IMF program approved this week to help Ukraine stabilize and reform its economy.  And as Ukrainian forces move to restore order in eastern Ukraine, it is obvious to the world that these Russian-backed groups are not peaceful protestors.  They are heavily armed militants who are receiving significant support from Russia.  The Ukrainian government has the right and responsibility to uphold law and order within its territory, and Russia needs to use its influence over these paramilitary groups so they disarm and stop provoking violence. 

Let me say that we’re also united in our outrage over the appalling treatment of the OSCE observers who have been detained in eastern Ukraine.  Pro-Russian militants are still holding seven observers, including four Germans, as well as their Ukrainian escorts.  They’ve been paraded in front of the media and forced to make statements at the barrel of a gun.  It is disgraceful and it’s inexcusable.  Russia needs to work to secure their immediate release, and the international community is not going to be satisfied until Colonel Schneider and his fellow captives come home.

Finally, as both Angela and I have repeatedly said, we want to see a diplomatic resolution to the situation in Ukraine.  But we’ve also been clear that if the Russian leadership does not change course, it will face increasing costs as well as growing isolation -- diplomatic and economic.  Already, the ruble has fallen to near all-time lows, Russian stocks this year have dropped sharply, and Russia has slipped into recession.  Investors are fleeing, and it’s estimated that $100 billion in investment will exit Russia this year.  Russian companies are finding it harder to access the capital they need, and Russia’s credit rating has been downgraded to just above “junk” status.  In short, Russia’s actions in Ukraine are making an already weak Russian economy even weaker.

Moreover, if Russia continues on its current course, we have a range of tools at our disposal, including sanctions that would target certain sectors of the Russian economy.  And we’ve been consulting closely with our European and G7 partners, and we’re stepping up our planning.  Angela and I continued these consultations today.  The Russian leadership must know that if it continues to destabilize eastern Ukraine and disrupt this month’s presidential election, we will move quickly on additional steps, including further sanctions that will impose greater costs.  But that is a choice facing the Russian leadership. 

Our preference is a diplomatic resolution to this issue.  And the Ukrainian government has already shown itself more than willing to work through some of the issues that would ensure that the rights of all Ukrainians are respected, that you have a representative government.  They’ve shown themselves willing to discuss amendments to their constitution that devolve power to a local level.  They have gone through with their commitment to potentially provide amnesty for those who lay down arms and who are willing to abandon the buildings that they’ve occupied.  The Ukrainian government in Kyiv has followed through on the commitments that it made in Geneva.  We need Russians to do the same.   

So, Angela, I want to thank you again for being here and, as always, for your friendship and partnership.  These are challenging times.  Russia’s actions in Ukraine pose a direct challenge to the goal that brought Europe and the United States together for decades -- and that is a Europe that is whole, free and at peace.  Just as our predecessors stood united in pursuit of that vision, so will we. 

Chancellor Merkel.  

CHANCELLOR MERKEL:  (As interpreted.)  Well, thank you very much, Barack, for this gracious hospitality and this very warm welcome that you accorded to me.  And I’m very glad to be able to be back in Washington to have an opportunity to address all of these different issues with you. 

I think priority really is on the current issue of Ukraine and that looms very large on our agenda.  It showed how important the transatlantic partnership is also in today’s times.  And I think it’s a very good thing that all of those steps that we’ve taken so far, we’ve taken together.  And today, in our talk, we yet again underlined that we fully intend to go ahead as we did in the past.  What happened on Ukraine, what happened on the Crimean Peninsula?  Well, the post-war order has been put into question that rests on the acceptance of territorial integrity by all, and this is why it was so important for us to react in concord.

And what is at stake here is that people in Ukraine can act on the basis of self-determination and can determine themselves which road they wish to embark on into the future.  The 25th of May is a very crucial date in order to ensure that, and we will see to it that elections can take place.  The OSCE will play a central role in all of this.  We talked about this.  And together with the OSCE, we shall do everything we can in order to bring Russia -- that is, after all, a member of the OSCE -- to do the necessary steps so as the 25th of May bringing about some progress in stabilizing Ukraine. 
   
The 25th of May is not all that far away.  Should that not be possible to stabilize the situation, further sanctions will be unavoidable.  This is something that we don’t want.  We have made a diplomatic offer, an offer for a diplomatic solution.  So it’s very much up to the Russians which road we will embark on, but we are firmly resolved to continue to travel down that road.

Now, secondly, we addressed issues that have a bearing on the work of the intelligence services here.  Let me underline yet again for the German side -- we have always enjoyed a very close cooperation with our American partner on this front.  And anyone in political responsibility is more than aware, looking at the challenges of the modern world today, that obviously in fighting terrorism, the work of the intelligence services is not only important, it is indeed indispensable. 

I am firmly convinced that our cooperation in this area is a very helpful one, yet there are differences of opinion on what sort of balance to strike between the intensity of surveillance, of trying to protect the citizens against threats, and on the other hand, protecting individual privacy and individual freedom, and rights of personality.  And that will require further discussion between our two countries in order to overcome these differences of opinion. 

We have these discussions incidentally also on the European front.  We are talking about Safe Harbor agreement, for example, about a privacy protection agreement.  And I take back the message home that the U.S. is ready to do that, is ready to discuss this, although we may have differences of opinion on certain issues.

Thirdly, T-TIP, I think particularly in the overall context of further intensifying our trade relations, of global growth, but also in the context of diversification of our energy supply -- this is a very important issue.  It will be very important for us to bring the negotiations very quickly to a close on T-TIP.  We are firmly convinced that for the European Union, for Germany and for the United States, this offers a lot of opportunities for the future.  And it’s so important for us to bring this agreement to a successful conclusion.  There are a number of discussions, I know; a number of skeptical remarks.  People have doubts.  But these doubts, this skepticism can be overcome and it needs to be overcome.  Just look at the many partners all over the world that have bilateral trade agreements.  I mean, it’s simply necessary.  Looking at the intensity of a transatlantic partnership and the closeness of our partnership, for us to have this agreement, this transatlantic trade agreement, and we are fully at one on this one.

So we had very intensive talks and we are going to build on this over lunch.  Thank you very much, Barack, for giving me this opportunity and also thank you for your gracious hospitality.

PRESIDENT OBAMA:  I think we’re going to take two questions from the U.S. press and two questions from the German press.  We’ll start with Lesley Clark.

Q    Thank you, Mr. President.  With violence today in Ukraine, you’ve said today that Germany and the United States are united in efforts to deescalate.  But have you been able to reach any common ground with the Chancellor on sectoral sanctions, particularly the energy -- the Russian energy section -- sector?  What’s next if you’re unable to? 

And to Chancellor Merkel, reports in the U.S. press have suggested that you’ve said that you believed President Putin may not be in touch with reality.  Is that what you’ve said, is that what you believe?  And could you give us -- you talked to him earlier this week -- could you give us a little more insight into what he might be thinking?  And do you believe that he is a threat to Europe?  Thank you.

PRESIDENT OBAMA:  Obviously, every day we’re watching the events in eastern Ukraine and southern Ukraine with deep concern.  And I think that what you’ve seen over the course of the last several months in the midst of this crisis is remarkable unity between the United States and the European Union in the response. 

We have at the same time offered a diplomatic approach that could resolve this issue.  We have been unified in supporting the Ukrainian government in Kyiv -- both economically, diplomatically, and politically.  And we have said that we would apply costs and consequences to the Russians if they continued with their actions.  And that’s exactly what we’ve done.  And you saw just over the course of the last week additional sanctions applied both by the Europeans and the U.S.

The next step is going to be a broader-based sectoral sanctions regime.  And what we have said is, is that we want to continue to keep open the possibility of resolving the issue diplomatically.  But as Angela Merkel said, if, in fact, we see the disruptions and the destabilization continuing so severely that it impedes elections on May 25th, we will not have a choice but to move forward with additional, more severe sanctions.  And the consultations have been taking place over the course of the last several weeks about what exactly those would look like, and would apply to a range of sectors.  The goal is not to punish Russia; the goal is to give them an incentive to choose the better course, and that is to resolve these issues diplomatically.  And I think we are united on that front. 

Within Europe, within the EU, I'm sure there has to be extensive consultations.  You’ve got 28 countries and some are more vulnerable than others to potential Russian retaliation, and we have to take those into account.  Not every country is going to be in exactly the same place.  But what has been remarkable is the degree to which all countries agree that Russia has violated international law, violated territorial integrity and sovereignty of a country in Europe.  And I think there’s unanimity that there has to be consequences for that. 

How we structure these sectoral sanctions the experts have been working on, and we anticipate that if we have to use them, we can.  Our preference would be not to have to use them.  And I thank Chancellor Merkel’s leadership on this front.  She has been extraordinarily helpful not only in facilitating European unity, but she’s also been very important in helping to shape a possible diplomatic resolution and reaching out to the Russians to encourage them to take that door while it's still open.

Q    Do you feel confident you have German support on sectoral sanctions, particularly the energy sector?

PRESIDENT OBAMA:  You’ve got to keep in mind that when it comes to sectoral sanctions we're looking at a whole range of issues.  Energy flows from Russia to Europe -- those continued even in the midst of the Cold War, at the height of the Cold War.  So the idea that you're going to turn off the tap on all Russian oil or natural gas exports I think is unrealistic.  But there are a range of approaches that can be taken not only in the energy sector, but in the arms sector, the finance sector, in terms of lines of credit for trade -- all that have a significant impact on Russia.

I don't think it's appropriate for us to delve into the details at this stage because our hope is that we don't have to deploy them.  But what I can say is, is that our experts at the highest level, and not just bilaterally, but multilaterally through the European Commission and our diplomatic teams, have been working through all the possibilities, and we're confident that we will have a package that will further impact Russia’s growth and economy.  But again, our hope is that we shouldn’t have to use them.  We're not interested in punishing the Russian people.  We do think that Mr. Putin and his leadership circle are taking bad decisions and unnecessary decisions and he needs to be dissuaded from his current course.

CHANCELLOR MERKEL:  (As interpreted.)  It is, I think, obvious to all that there are very different assessments on what happens in Ukraine.  On the one hand, you have the United States and Europe -- we've always taken our decisions together -- and on the other hand, the Russian appreciation and appraisal of the situation.  I hope that Russia will live up better in the future to its responsibilities.  But we need to see deeds matching up their words. 

We don't have any release of the hostages of the OSCE, among them also four German hostages.  This is a very crucial step that needs to happen first.  We have not yet seen any implementation of the Geneva agreement by the Russian side.  The Ukrainian side has taken some steps in the right direction.  And the OSCE, too, is an organization to which we wish to accord a greater role so that they can prepare and pave the way for elections. 

And one word on sanctions.  I agree with the American President; they are not an end in itself, but combined with the offer that we want diplomatic solutions, it is a very necessary second component to show that we're serious -- we're serious about our principles.  And there is a broad base, a broad range of possibilities that are being prepared for in the European Union.  In Europe, we have taken a decision that should further destabilization happen, we will move to a third stage of sanctions. 

I would like to underline this is not necessarily what we want, but we are ready and prepared to go to such a step.  My main aim would be, first and foremost, to improve stabilization and to see to it that the elections can happen there.  We will work on this in the next few days, but we are also prepared to take further steps. 

What we are talking about here will be sectoral measures in the context of certain branches of industry.  The American President and I can only agree to this and said what is necessary as regards the dependency on gas, which is very strong in Europe, but we can also look ahead in the medium term what we can do in order to promote an energy union in the European Union, which we’re doing.  Looking at our dependencies in the next 10 to 15 years on Russian gas supplies, there are six countries right now in the EU that depend 100 percent on gas supplies.  We need to improve the reverse flow, as we call it.  We need to improve our grade of pipelines.  All of the countries need to share supplies.  And those are measures that we’re currently discussing in Europe.

We’re talking about short-term but also medium-term and long-term measures.  And then the free trade agreement, T-TIP, is also gaining more prominence in this respect.

Q    (As interpreted.)  Madam Chancellor, you said that time is of the essence and that it’s getting shorter, leading up to the 25th.  When would be the time when you would say a third phase -- moving to a third phase of sanctions is what you would promote?  And is a more energy-intensive initiative by the EU necessary, for example, on heads of state and government level?

And, President, can you understand the fact that also Mr. Putin needs to play a role in the solution, which is the position of the European Union, that also his arguments have to be weighed?  And after the Chancellor having made those several phone calls with Mr. Putin, do you think that the Chancellor also stands a chance to sort of work on this?

CHANCELLOR MERKEL:  Well, to answer the question, what about the next few days to come -- I think the meeting of foreign ministers of the EU on the 12th of May is going to play a very important role.  In this respect, one can sound out the possibilities there are in various directions.  We, from the German side, as we have agreed with our American friends, will do everything we can in order bring the OSCE into a situation, supported politically that is, to do what is necessary in order to bring matters forward in Ukraine. 

On the one hand, you have OSCE monitors for the elections, but also questions as regards a change of the constitution; reform towards further devolution or decentralization.  All of the different parts of the country obviously have to be at the same level as regards information on this, and the OSCE wants to do that.  We want to give them the necessary political backing.

When a certain point in time is there, it’s very difficult to predict.  I can only say that, for me, the elections on the 25th of May are crucial.  And should there be further attempts at destabilization, this will be getting more and more difficult.  But for now, I am working for elections to take place on that very date, and the heads of state and government are ready at any time should they be proved necessary to meet.

We’ve approved that over the past in other areas -- for example, the euro crisis.  And we will demonstrate this resolve yet again.  I am firmly convinced that the United States of America and the European Union need to act in concert here, and they have done so in the past and they are going to continue to do so.

PRESIDENT OBAMA:  I’ve said from the start that Russia has legitimate interests in terms of what happens next door in Ukraine.  Obviously there is a deep and complicated history between Russia and Ukraine, and so, of course, Mr. Putin’s views should be taken into account.  What can’t be taken into account is Mr. Putin’s suggestion, both through words and actions, that he has the right to violate the sovereignty of another country, to violate its territorial integrity, to dictate the economic policies or foreign policy of a sovereign country.  That’s not acceptable. 

Our view from the start has been that the Ukrainians should be able to make their own decisions.  And I’m very confident that if the Ukrainians are allowed to make their own decisions, then they will choose to have a good relationship with Russia as well as a good relationship with Europe; that they’ll want to trade with Russia and they’ll want to trade with Europe.  But what they cannot accept, understandably, is the notion that they are simply an appendage, an extension of Russia, and that the Kremlin has veto power over decisions made by a duly elected government in Kyiv. 

So if, in fact, Mr. Putin’s goal is to allow Ukrainians to make their own decisions, then he is free to offer up his opinions about what he would like the relationship to be between Ukraine and Russia.  And I suspect that there will be a whole lot of Ukrainian leaders who will take those views into consideration.  But it can’t be done at the barrel of a gun.  It can’t be done by sending masked gunmen to occupy buildings or to intimidate journalists. 

And one of the biggest concerns that we’ve seen is the Russian propaganda that has been blasted out nonstop suggesting somehow that the Ukrainian government is responsible for the problems in eastern Ukraine.  The Ukrainian government has shown remarkable restraint throughout this process.  The notion that this is some spontaneous uprising in eastern Ukraine is belied by all the evidence of well-organized, trained, armed militias with the capacity to shoot down helicopters.  Generally, local protestors don’t possess that capacity of surface-to-air missiles or whatever weapons were used to shoot down helicopters, tragically.

We’ve seen the attempts of OSCE monitors -- who were approved not just by Europe or the United States, but also by Russia -- being detained.  And somehow Russia is suggesting that Kyiv is responsible for that?  We’ve heard Mr. Putin say, well, Kyiv has to do a better job of reaching out to Eastern Europe -- or eastern Ukraine.  You’ve seen attempts by Kyiv in a very serious way to propose decentralization of power and to provide for local elections, and for them to offer amnesty to those who have already taken over these buildings.  None of that has been acknowledged by Mr. Putin or the various Russian mouthpieces that are out there. 

You’ve also seen suggestions or implications that somehow Americans are responsible for meddling inside Ukraine.  I have to say that our only interest is for Ukraine to be able to make its own decisions.  And the last thing we want is disorder and chaos in the center of Europe. 

So for the German audience who perhaps is tuning into Russian TV, I would just advise to stay focused on the facts and what’s happened on the ground.  A few weeks ago, Mr. Putin was still denying that the Russian military was even involved in Crimea.  Then, a few weeks later, he acknowledged, yeah, I guess that was our guys.  And so there just has not been the kind of honesty and credibility about the situation there, and a willingness to engage seriously in resolving these diplomatic issues. 

And our hope is, is that, in fact, Mr. Putin recognizes there’s a way for him to have good relations with Ukraine, good relations with Europe, good relations with the United States.  But it cannot be done through the kinds of intimidation and coercion that we’re seeing take place right now in eastern Europe [Ukraine].

Tangi.

Q    Thank you, Mr. President.  Earlier this week, an inmate died in Oklahoma in what critics have called an inhumane manner because of a seemingly botched execution.  Human rights groups put the United States in the devious company of China, Iran and Saudi Arabia when it comes to the prevalence of executions.  Some European countries have expressed their concerns as well.  What are your thoughts on this?  And does this raise moral questions about U.S. justice and global reputation?

And to Chancellor Merkel, after Edward Snowden’s revelations on U.S. surveillance of your own cell phone, you said that friends shouldn’t spy on friends.  Are you satisfied that the steps taken by the U.S. on NSA surveillance are now consistent with a healthy alliance?  Has the personal trust been rebuilt?  And I was wondering if you could elaborate a little bit on this no-spy agreement that apparently couldn’t be reached.  Thank you.

PRESIDENT OBAMA:  What happened in Oklahoma is deeply troubling.  The individual who was subject to the death penalty had committed heinous crimes, terrible crimes.  And I’ve said in the past that there are certain circumstances in which a crime is so terrible that the application of the death penalty may be appropriate -- mass killings, the killings of children.  But I’ve also said that in the application of the death penalty in this country, we have seen significant problems -- racial bias, uneven application of the death penalty, situations in which there were individuals on death row who later on were discovered to have been innocent because of exculpatory evidence.  And all these I think do raise significant questions about how the death penalty is being applied.  And this situation in Oklahoma I think just highlights some of the significant problems there. 

So I’ll be discussing with Eric Holder and others to get me an analysis of what steps have been taken not just in this particular instance but more broadly in this area.  I think we do have to, as a society, ask ourselves some difficult and profound questions around these issues.

If you don’t mind, I’m going to also go ahead and maybe say something about NSA just because I know it’s of great interest in the German press as well.  Germany is one of our closest allies and our closest friends, and that’s true across the spectrum of issues -- security, intelligence, economic, diplomatic.  And Angela Merkel is one of my closest friends on the world stage, and somebody whose partnership I deeply value.  And so it has pained me to see the degree to which the Snowden disclosures have created strains in the relationship.

But more broadly, I’ve also been convinced for a very long time that it is important for our legal structures and our policy structures to catch up with rapidly advancing technologies.  And as a consequence, through a series of steps, what we’ve tried to do is reform what we do and have taken these issues very seriously.  Domestically, we’ve tried to provide additional assurances to the American people that their privacy is protected.  But what I’ve also done is taken the unprecedented step of ordering our intelligence communities to take the privacy interests of non-U.S. persons into account in everything that they do -- something that has not been done before and most other countries in the world do not do.  What I’ve said is, is that the privacy interests of non-U.S. citizens are deeply relevant and have to be taken into account, and we have to have policies and procedures to protect them, not just U.S. persons.  And we are in the process of implementing a whole series of those steps. 

We have shared with the Germans the things that we are doing.  I will repeat what I’ve said before -- that ordinary Germans are not subject to continual surveillance, are not subject to a whole range of bulk data gathering.  I know that the perceptions I think among the public sometimes are that the United States has capacities similar to what you see on movies and in television.  The truth of the matter is, is that our focus is principally and primarily on how do we make sure that terrorists, those who want to proliferate weapons, transnational criminals are not able to engage in the activities that they’re engaging in.  And in that, we can only be successful if we’re partnering with friends like Germany.  We won’t succeed if we’re doing that on our own. 

So what I’ve pledged to Chancellor Merkel has been in addition to the reforms that we’ve already taken, in addition to saying that we are going to apply privacy standards to how we deal with non-U.S. persons as well as U.S. persons, in addition to the work that we’re doing to constrain the potential use of bulk data, we are committed to a U.S.-German cyber dialogue to close further the gaps that may exist in terms of how we operate, how German intelligence operates, to make sure that there is transparency and clarity about what we’re doing and what our goals and our intentions are. 

These are complicated issues and we’re not perfectly aligned yet, but we share the same values and we share the same concerns.  And this is something that is deeply important to me and I’m absolutely committed that by the time I leave this office, we’re going to have a stronger legal footing and international framework for how we are doing business in the intelligence sphere. 

I will say, though, that I don’t think that there is an inevitable contradiction between our security and safety and our privacy.  And the one thing that I’ve tried to share with Chancellor Merkel is that the United States historically has been concerned about privacy.  It’s embedded in our Constitution, and as the world’s oldest continuous constitutional democracy, I think we know a little bit about trying to protect people’s privacy. 

And we have a technology that is moving rapidly and we have a very challenging world that we have to deal with, and we’ve got to adjust our legal frameworks.  But she should not doubt, and the German people should not doubt, how seriously we take these issues.  And I believe that we’re going to be able to get them resolved to the satisfaction not just of our two countries but of people around the world. 

CHANCELLOR MERKEL:  (As interpreted.)  Under the present conditions, we have, after all, possibilities as regards differences of opinion to overcome those differences in the medium term and in the long term.  One possibility is to enter into such a cyber dialogue, which is very important because that gives us a forum to have somewhat longer discussions as to where we stand individually, what the technical possibilities but also ramifications of technological advances are.

Secondly, there are two strands of negotiations with the European Union -- on the one hand, the Safe Harbor agreement and then the data protection -- privacy protection accord.  And in the course of the negotiations, it will come out very clearly what differences of opinion there are, what different perspectives there are.  And I think it’s of prime importance for us to bring these negotiations forward, the process, but also bring it to a successful conclusion. 

And something else comes into play.  I heard this, this morning when I had a breakfast meeting with people who are very closely in contact with the parliaments.  They suggested to me that our parliaments, too, ought to have closer contacts on this.  And that’s very important not only for the governments to talk about these things, but also for the broader public.  And these could be three possibilities as to how to address this further and also understand each other’s motivations and arguments better.
 
Q    Mr. President, could you explain to us from your point of view why it’s not possible to agree on a no-spy agreement, which was, as we understood, proposed by the U.S. government last summit?  What kind of assurances could you give Chancellor Merkel with regard not only to ordinary German citizens, but to government members -- some of them sitting here -- that they are not under U.S. surveillance anymore?

(As interpreted.)  And, Chancellor, the question addressed to you -- when the French President was here a couple of weeks ago, after his talk with President Obama, he said that trust as regards to the NSA discussion has been rebuilt.  Can you say the same thing?

PRESIDENT OBAMA:  It’s not quite accurate to say that the U.S. government offered a no-spy agreement and then withdrew it.  I think that what is accurate to say is, is that we do not have a blanket no-spy agreement with any country, with any of our closest partners.  What we do have are a series of partnerships and procedures and processes that are built up between the various intelligence agencies. 

And what we are doing with the Germans -- as we’re doing with the French, as we do with the British, or the Canadians, or anybody -- is to work through what exactly the rules are governing the relationship between each country and make sure that there are no misunderstandings.  And I think that we have gone a long way in closing some of the gaps, but as Chancellor Merkel said, there are still some gaps that need to be worked through.

But I think what we can be confident about is that the basic approach that we take with Germany is similar to the approach that we take with all our allies and all our friends, and that during the course of the last several years as technology advanced, I think there was a danger in which traditional expectations tipped over because of new technologies.  And what we’ve tried to do is make sure that our policies now reflect increased capabilities and, as a consequence, increased dangers of intrusions in privacy. 

But let me put it this way:  Our interest in working effectively with the Germans and to making sure that German governments as well as the German people feel confident about what we do is as important to us as any other country.  Germany is at the top of our list in terms of friends and allies and colleagues, and so we’re not holding back from doing something with Germany that we somehow do with somebody else.

CHANCELLOR MERKEL:  (As interpreted.)  I think the whole debate has shown that the situation is such that we have a few difficulties yet to overcome.  So this is why there’s going to be this cyber dialogue between our two countries, and this is also why there needs to be and will have to be more than just business as usual.  I mean, looking at the discussion not only in the German parliament but also among members of the German government and also in the German public, we need to do that. 

But it’s very good that we have taken these first steps, and what’s still dividing us -- issues, for example, of proportionality and the like -- will be addressed.  We will work on this, and it’s going to be on the agenda for the next few weeks to come.

PRESIDENT OBAMA:  Thank you very much, everybody.

END   
12:50 P.M. EDT

100,000 CONSTRUCTION JOBS PLEDGED TO VETERANS

FROM:  LABOR DEPARTMENT 
Construction industry pledges to hire more than 100,000 veterans in announcement with Joining Forces and US Labor Department

WASHINGTON — In an announcement today at A National Symposium: Veterans' Employment in Construction, hosted by the U.S. Department of Labor and Joining Forces, First Lady Michelle Obama and U.S. Secretary of Labor Thomas E. Perez celebrated a broad coalition of construction employers and associations that have collectively pledged to hire 100,000 veterans over the next five years.

Also at the announcement were representatives of the construction companies making these hiring commitments, veterans who have completed apprenticeships in the construction industry, and other leaders in the field.

In an op-ed running in this morning's Wall Street Journal, the First Lady writes:
"Today, more than 100 American construction companies came together to announce that they plan to hire more than 100,000 veterans within the next five years. They made this commitment not just because it's the patriotic thing to do, and not just because they want to repay our veterans for their service to our country, but because they know that it's the smart thing to do for their business."
"All men and women who have sacrificed for our country in our armed services deserve opportunities for good jobs worthy of their character and their achievements," said Secretary Perez. "The Department of Labor will do whatever it takes to help our veterans translate their skills and leadership into jobs, and I am inspired by the commitment displayed today by the construction industry and all our partners in helping to achieve that mission."

The construction industry is expected to grow rapidly in the coming years – outpacing the steady growth of the economy as a whole and helping to strengthen local communities. The Bureau of Labor Statistics estimates that construction is one of the fastest-growing industries in the nation, with job growth of more than 1.5 million jobs between now and 2022 – an annual growth rate of 2.6 percent.
Construction companies large and small – from national firms like Jacobs and Bechtel, to regional firms like Cianbro Construction, to local contractors and subcontractors across America – are stepping up to ensure their industry welcomes home the nation's heroes with good-paying jobs. More than 80 additional companies are committing their existing training and employment programs to fill new construction jobs with veterans.

The construction industry was represented at the announcement by executives of several participating companies, with Larry L. Melton, project executive for Bechtel and Marine Corps veteran delivering remarks. "Veterans are invaluable to the construction industry. Men and women who serve in the military often have the traits that are so critical to our success: agility, discipline, integrity, and the drive to get the job done right," Melton said. "Bechtel is passionate about supporting veterans and we continue to expand our efforts to hire transitioning military members."

Lori Sundberg, senior vice president of human resources at Jacobs also stated: "We are pleased to support programs that provide career opportunities for our military veterans. Many of the skills and abilities gained during military training and service are highly transferable to the skills we require to successfully serve our clients around the world. We are proud of the veterans working at Jacobs and appreciate their military service, their dedication, and the value they add to our company."

REMARKS BY PRESIDENT OBAMA AT SIGNING OF NEW FARM BILL

FROM:  THE WHITE HOUSE 
Remarks by the President at Signing of the Farm Bill -- MI
Michigan State University
East Lansing, Michigan
FEBRUARY 7, 2014
2:16 P.M. EST

THE PRESIDENT:  Hello, Spartans!  (Applause.)  Go, Green!

AUDIENCE:  Go, White!

THE PRESIDENT:  Thank you so much.  Everybody have a seat here.

It’s good to be at Michigan State.  Thank you, Ben, for that wonderful introduction.  Give Ben a big round of applause.  (Applause.)  He’s got his beautiful family right here.  How did dad do?  Was he pretty good?  Yes, there he is.  He did good?  I thought he did great.

It is good to be in East Lansing.  It’s good to be with all of you here today.  I’m here because I’ve heard about all the great things that you’re doing.  And I want to thank Mayor Triplett and President Simon for hosting us.

I am also here to do some scouting on my brackets.  (Laughter and applause.)  I just talked to Coach Izzo -- Spartans are looking pretty good.  I know things were a little wild for a while, had some injuries.  But the truth is that Coach Izzo, he always paces so that you peak right at the tournament.  (Applause.)  That’s a fact.  Then I got a chance to meet Mark Dantonio.  (Applause.)  So you’ve already got a Rose Bowl victory.  (Applause.)  You guys, you’re greedy.  (Laughter.)  You want to win everything.

But it’s wonderful to be here.  I love coming to Michigan.  Mainly I love coming to Michigan because of the people.  But I also love coming here because there are few places in the country that better symbolize what we’ve been through together over these last four, five years.

The American auto industry has always been the heartbeat of the Michigan economy and the heart of American manufacturing.  So when that heartbeat was flat-lining, we all pulled together, all of us -- autoworkers who punched in on the line, management who made tough decisions to restructure, elected officials like Gary Peters and Mark Schauer who believed that -- (applause) -- folks who believed that rescuing America’s most iconic industry was the right thing to do.

And today, thanks to your grit and your ingenuity and dogged determination, the American auto industry’s engines are roaring again and we are building the best cars in the world again.  And some plants are running three shifts around the clock -- something that nobody would have imagined just a few years ago.  (Applause.)

I just had lunch with Detroit’s new Mayor, Mike Duggan.  (Applause.)  He told me if there’s one thing that he wants everybody to know, it’s that Detroit is open for business.  And I have great confidence that he’s going to provide the leadership that we need.  (Applause.)  Really proud of him.  The point is we’ve all had to buckle down.  We’ve all had to work hard.  We’ve had to fight our way back these past five years.  And in a lot of ways, we are now better positioned for the 21st century than any other country on Earth.

This morning, we learned that our businesses in the private sector created more than 140,000 jobs last month, adding up to about 8.5 million new jobs over the past four years.  (Applause.)  Our unemployment rate is now the lowest it’s been since before I was first elected.  Companies across the country are saying they intend to hire even more folks in the months ahead.  And that’s why I believe this can be a breakthrough year for America.

And I’ve come here today to sign a bill that hopefully means folks in Washington feel the same way -- that instead of wasting time creating crises that impede the economy, we’re going to have a Congress that’s ready to spend some time creating new jobs and new opportunities, and positioning us for the future and making sure our young people can take advantage of that future.

And that’s important, because even though our economy has been growing for four years now, even though we’ve been adding jobs for four years now, what’s still true -- something that was true before the financial crisis, it’s still true today -- is that those at the very top of the economic pyramid are doing better than ever, but the average American’s wages, salaries, incomes haven’t risen in a very long time.  A lot of Americans are working harder and harder just to get by -- much less get ahead -- and that’s been true since long before the financial crisis and the Great Recession.

And so we’ve got to reverse those trends.  We’ve got to build an economy that works for everybody, not just a few.  We’ve got to restore the idea of opportunity for all people -- the idea that no matter who you are, what you look like, where you came from, how you started out, what your last name is, you can make it if you’re willing to work hard and take responsibility.  That’s the idea at the heart of this country. That’s what’s at stake right now.  That’s what we’ve got to work on.  (Applause.)

Now, the opportunity agenda I laid out in my State of the Union address is going to help us do that.  It’s an agenda built around four parts.  Number one:  More new jobs in American manufacturing, American energy, American innovation, American technology.  A lot of what you’re doing here at Michigan State helps to spur on that innovation in all sorts of areas that can then be commercialized into new industries and to create new jobs.

Number two:  Training folks with the skills to fill those jobs -- something this institution does very well.

Number three:  Guaranteeing access to a world-class education for every child, not just some.  That has to be a priority.  (Applause.)  That means before they even start school, we’re working on pre-K that’s high quality and gets our young people prepared, and then takes them all the way through college so that they can afford it, and beyond.

Number four:  Making sure our economy rewards honest work with wages you can live on, and savings you can retire on, and, yes, health insurance that is there for you when you need it.  (Applause.)

Now, some of this opportunity agenda that I put forward will require congressional action, it’s true.  But as I said at the State of the Union, America does not stand still; neither will I.  And that’s why, over the past two weeks, I’ve taken steps without legislation, without congressional action, to expand opportunity for more families.  We’ve created a new way for workers to start their own retirement savings.  We’ve helped to make sure all of our students have high-speed broadband and high-tech learning tools that they need for this new economy.

But I’ve also said I’m eager to work with Congress wherever I can -- because the truth of the matter is, is that America works better when we’re working together.  And Congress controls the purse strings at the federal level and a lot of the things that we need to do require congressional action.

And that is why I could not be prouder of our leaders who are here today.  Debbie in particular, I could not be prouder of your own Debbie Stabenow, who has done just extraordinary work.  (Applause.)  We all love Debbie for a lot of reasons.  She’s been a huge champion of American manufacturing but really shepherded through this farm bill, which was a very challenging piece of business.  She worked with Republican Senator Thad Cochran, who I think was very constructive in this process.  We had Representatives Frank Lucas, a Republican, working with Collin Peterson, a Democrat.  We had a terrific contribution from our own Secretary of Agriculture, Tom Vilsack, who deserves a big round of applause.  (Applause.)

And so Congress passed a bipartisan farm bill that is going to make a big difference in communities all across this country.  And just so they don’t feel left out, I want to recognize one of your congressmen, who’s doing an outstanding job -- Dan Kildee.  (Applause.)  And somebody who was just a wonderful mentor to me when I was in the Senate and has been just a great public servant, not just for your state, but for the entire country -- Carl Levin.  (Applause.)  He’s always out there, especially when it comes to our men and women in uniform.  We’re very proud of him.  (Applause.)

     And while we’re at it, we got a couple of out-of-towners -- Pat Leahy from Vermont -- there are a lot of dairy farms up there, so he had something to do with it.  (Applause.)  Amy Klobuchar from Minnesota.  (Applause.)  All that cold air is blowing from Minnesota down into -- (laughter).

Now, despite its name, the farm bill is not just about helping farmers.  Secretary Vilsack calls it a jobs bill, an innovation bill, an infrastructure bill, a research bill, a conservation bill.  It’s like a Swiss Army knife.  (Laughter.)  It’s like Mike Trout -- for those of you who know baseball.  (Laughter.)  It’s somebody who’s got a lot of tools.  It multitasks.  It’s creating more good jobs, gives more Americans a shot at opportunity.  And there are two big ways in which it does so.

First, the farm bill lifts up our rural communities.  Over the past five years, thanks to the hard work and know-how of America’s farmers, the best in the world, we’ve had the strongest stretch of farm exports in our history.  And when I’m traveling around the world, I’m promoting American agriculture.  And as a consequence, we are selling more stuff to more people than ever before.  Supports about 1 million American jobs; what we grow here and that we sell is a huge boost to the entire economy, but particularly the rural economy.

Here at Michigan State, by the way, you are helping us to do even more.  So I just got a tour of a facility where you’re working with local businesses to produce renewable fuels.  You’re helping farmers grow crops that are healthier and more resistant to disease.  Some students are even raising their own piglets on an organic farm.  When I was in college, I lived in a pig sty -- (laughter) -- but I didn't work in one.  So I’m impressed by that.  (Laughter.)  That's no joke, by the way.  (Laughter and applause.)  Your hygiene improves as you get older.  (Laughter.)

So we’re seeing some big advances in American agriculture.  And today, by the way, I’m directing my administration to launch a new “Made in Rural America” initiative to help more rural businesses expand and hire and sell more products stamped “Made in the USA” to the rest of the world -- because we’ve got great products here that need to be sold and we can do even more to sell around the world.  (Applause.)

But even with all this progress, too many rural Americans are still struggling.  Right now, 85 percent of counties experience what’s called “persistent poverty.”  Those are in rural areas.  Before I was elected President, I represented Illinois, home of a couple of your Big Ten rivals, but also a big farming state.  And over the years, I’ve seen how hard it can be to be a farmer.  There are a lot of big producers who are doing really well, but there are even more small farms, family farms, where folks are just scratching out a living and increasingly vulnerable to difficulties in financing and all the inputs involved -- farmers sometimes having to work off the farm, they’ve got a couple of jobs outside the farm just to get health care, just to pay the bills, trying to keep it in the family, and it’s very hard for young farmers to get started.

And in these rural communities, a lot of young people talk about how jobs are so scarce, even before the recession hit, that they feel like they’ve got to leave in order to have opportunity.  They can't stay at home, they’ve got to leave.

So that's why this farm bill includes things like crop insurance, so that when a disaster like the record drought that we’re seeing across much of the West hits our farmers, they don’t lose everything they’ve worked so hard to build.  This bill helps rural communities by investing in hospitals and schools, affordable housing, broadband infrastructure -- all the things that help attract more businesses and make life easier for working families.

This bill supports businesses working to develop cutting-edge biofuels -- like some of the work that's being done here at Michigan State.  That has the potential to create jobs and reduce our dependence on foreign oil.  It boosts conservation efforts so that our children and grandchildren will be able to enjoy places like the Mississippi River Valley and Chesapeake Bay.

It supports local food by investing in things like farmers markets and organic agriculture -- which is making my wife very happy.  And when Michelle is happy, I don't know about everybody being happy, but I know I'm happy.  (Laughter and applause.)  And so it's giving smaller producers, local producers, folks like Ben, the opportunity to sell more of their products directly, without a bunch of processing and distributors and middlemen that make it harder for them to achieve.  And it means that people are going to have healthier diets, which is, in turn, going to reduce incidents of childhood obesity and keep us healthier, which saves us all money.

It does all this while reforming our agricultural programs, so this bill helps to clamp down on loopholes that allowed people to receive benefits year after year, whether they were planting crops or not.  And it saves taxpayers hard-earned dollars by making sure that we only support farmers when disaster strikes or prices drop.  It's not just automatic.

So that’s the first thing this farm bill does -- it helps rural communities grow; it gives farmers some certainty; it puts in place important reforms.

The second thing this farm bill does -- that is huge -- is help make sure America’s children don’t go hungry.  (Applause.)   And this is where Debbie’s work was really important.  One study shows that more than half of all Americans will experience poverty at some point during their adult lives.  Now, for most folks that's when you're young and you're eating ramen all the time.  But for a lot of families, a crisis hits, you lose your job, somebody gets sick, strains on your budget -- you have a strong work ethic, but it might take you six months, nine months, a year to find a job.  And in the meantime, you’ve got families to feed.

That’s why, for more than half a century, this country has helped Americans put food on the table when they hit a rough patch, or when they’re working hard but aren’t making enough money to feed their kids.  They’re not looking for a handout, these folks, they’re looking for a hand up -- (applause) -- a bridge to help get them through some tough times.  (Applause.)

And we sure don't believe that children should be punished when parents are having a tough time.  As a country, we’re stronger when we help hardworking Americans get back on their feet, make sure that children are getting the nutrition that they need so that they can learn what they need in order to be contributing members of our society.

That’s the idea behind what’s known as the Supplemental Nutrition Assistance Program, or SNAP.  A large majority of SNAP recipients are children, or the elderly, or Americans with disabilities.  A lot of others are hardworking Americans who need just a little help feeding their families while they look for a job or they’re trying to find a better one.  And in 2012, the SNAP program kept nearly 5 million people -- including more than 2 million children -- out of poverty.  (Applause.)  Think about that -- 5 million people.

That’s why my position has always been that any farm bill I sign must include protections for vulnerable Americans, and thanks to the good work of Debbie and others, this bill does that.  (Applause.)  And by giving Americans more bang for their buck at places like farmers markets, we’re making it easier for working families to eat healthy foods and we're supporting farmers like Ben who make their living growing it.  So it’s creating new markets for produce farmers, and it means that people have a chance to directly buy from their farmers the kind of food that’s going to keep them healthy.

And the truth is a lot of folks go through tough times at some points in their lives.  That doesn’t mean they should go hungry.  Not in a country like America.  So investing in the communities that grow our food, helping hardworking Americans put that food on the table -- that’s what this farm bill does, all while reducing our deficits through smart reforms.

It doesn’t include everything that I’d like to see.  And I know leaders on both sides of the aisle feel the same way.  But it’s a good sign that Democrats and Republicans in Congress were able to come through with this bill, break the cycle of short-sighted, crisis-driven partisan decision-making, and actually get this stuff done.  (Applause.)  That's a good sign.

And that’s the way you should expect Washington to work.  That’s the way Washington should continue to work.  Because we’ve got more work to do.  We’ve got more work to do to potentially make sure that unemployment insurance is put in place for a lot of folks out there who need it.  (Applause.)  We’ve got more work to do to pass a minimum wage.  We’ve got more work to do to do immigration reform, which will help farmers like Ben.  (Applause.)

So let’s keep the momentum going here.  And in the weeks ahead, while Congress is deciding what’s next, I’m going to keep doing everything I can to strengthen the middle class, build ladders of opportunity in the middle class.  And I sure hope Congress will join me because I know that’s what you’re looking for out of your elected officials at every level.  (Applause.)

So thank you, everybody.  God bless you.  I’m now going to sign this farm bill.  (Applause.)

Hold on a second, I forgot to mention Marcia Fudge is here.  I wasn’t sure whether she came to the event.  I knew she flew in with me.  She does great work -- (applause) -- out of the great state of Ohio.

(The bill is signed.)  (Applause.)

END