DEATH OF AL-QAIDA SECOND-IN-COMMAND CONFIRMED BY WHITE HOUSE

Photo:  9-11 Memorial at Pentagon.  Credit:  U.S. Navy.

FROM:  AMERICAN FORCES PRESS SERVICE

White House Confirms Death of Al-Qaida's Second-in-Command

By Army Sgt. 1st Class Tyrone C. Marshall Jr.

WASHINGTON, June 6, 2012 - The U.S. government has confirmed the death of Abu Yahya al-Libi, the second in command of al-Qaida, a senior White House spokesman said yesterday.

"I can tell you that our intelligence community has intelligence that leads them to believe that al-Qaida's No. 2 leader, al-Libi, is dead," White House Press Secretary Jay Carney said.

Carney didn't provide details on how or where al-Libi was killed but he said the deceased terrorist had "served as al-Qaida's general manager" overseeing the group's day-to-day operations in the tribal areas of Pakistan and managing regional outreach.

"I can simply say that he was the No. 2 leader in al-Qaida, and this is the second time in less than a year that the No. 2 leader of al-Qaida has been removed from the battlefield," he said.

Al-Libi was deputy to Ayman al-Zawahiri, who assumed leadership of the terrorist network after Osama bin Laden, the mastermind of the 9/11 attacks, was killed during an assault by U.S. Navy SEALs on a compound in Abbottabad, Pakistan in May of last year.

"[Al-Libi's] death is part of the degradation that has been taking place to core al-Qaida during the past several years," Carney said. "[This] degradation has depleted the ranks to such an extent that there is now no clear successor to take on the breadth of his responsibilities."

Carney noted the loss of al-Libi adds pressure to al-Zawahiri to effectively manage the group. "We believe al-Libi's death is a major blow to core al-Qaida, removing the No. 2 leader for the second time in less than a year and further damaging the group's morale and cohesion, and bringing it closer to its ultimate demise than ever before," he said.

Carney added that al-Libi's death represents another serious blow to al-Qaida in the wake of the demise of bin Laden, in what is an ongoing effort to disrupt, dismantle and defeat a foe that brought terror and death to the United States on 9/11, and has perpetrated acts of terrorism against innocent civilians around the globe.

F-22 FLIGHTS REMAIN NEAR POTENTIAL DESPITE HYPOXIA-LIKE SYMPTONS CONCERN

Photo:  F-22 Raptor.  Credit:  U.S. Air Force.

FROM:  AMERICAN FORCES PRESS SERVICE

New Flight Restrictions Haven't Curbed F-22 Operations

By Claudette Roulo

WASHINGTON, June 5, 2012 - Safety measures put in place last month on F-22 Raptor flights have had no impact on operations, Pentagon spokesman Navy Capt. John Kirby told reporters today.

Kirby and Pentagon Press Secretary George Little last month announced restrictions to F-22 flight operations after 12 pilots reported hypoxia-like symptoms.

In response, Secretary of Defense Leon E. Panetta directed the retrofitting of automatic backup oxygen systems in the Raptor.

The Air Force is investigating the issue and providing monthly reports to Panetta.

In addition, all F-22 flights were ordered to remain near potential landing locations to enable quick recovery and landing should a pilot encounter problems during flight, Little said last month.

There are no plans to ground the aircraft, but Kirby said the Defense Department remains prepared for all possibilities.

"It's a safety-of-flight issue," he said. "Secretary Panetta understands that, and he's not taking any options off the table with respect to the future of the aircraft."

"Right now the aircraft is performing very well in an operational setting and ... we're just going to continue to watch this as we move forward," Kirby said.

U.S. NAVAL SHIP FROM ANOTHER CENTURY COMMEMORATES BATTLE OF MIDWAY

FROM:  U.S. NAVY
USS Constitution gets underway for her first turnaround cruise of 2012. The underway commemorated the 70th anniversary of the Battle of Midway and recognized members of the Wounded Warrior Project. Constitution is the world's oldest commissioned warship afloat. She defended the sea lanes against threat from 1797 to 1855, much like the mission of today's Navy. U.S. Navy photo by Seaman Michael Achterling (Released) 120604-N-BJ178-118

NATO CENTRAL ASIAN NATIONS HAVE APPROVED AFGHANISTAN ROUTES

Photo Credit:  U.S. Navy
FROM:  AMERICAN FORCES PRESS SERVICE
NATO: Central Asian Nations Approve Afghanistan Exit Routes
By Cheryl Pellerin
WASHINGTON, June 5, 2012 - NATO has reached agreements with Kazakhstan, Kyrgyzstan and Uzbekistan to allow troops and equipment to transit these Central Asian nations to and from Afghanistan, NATO's secretary general said yesterday.

"These agreements will give us a range of new options and the robust and flexible transport network we need. I thank all three partner countries for their support," Rasmussen told reporters during his monthly briefing from NATO headquarters in Brussels.

"NATO will continue to actively engage with Afghanistan's neighbors," he added, "to build wider support for the country's stability."

During a briefing at the Pentagon today, spokesman Navy Capt. John Kirby said the United States also has bilateral agreements with the three nations through the Northern Distribution Network, to move goods in and out of Afghanistan.

"We are very appreciative for those arrangements and continue to use them," Kirby added.
Such ground routes are needed to supply the war in Afghanistan and will be critical as the combat role of NATO's International Security Assistance Force comes to an end in 2014, and troops and equipment begin to make their way home.

Shorter routes through Pakistan have been closed since November, after a cross-border incident involving NATO troops in Afghanistan mistakenly killed 24 Pakistani soldiers.  Defense Department and NATO officials have said that negotiations are underway with Pakistan to reopen the routes.

Kirby said defense officials "do believe having the ground gates open at Chaman and the Torkham gates [on the border between Pakistan and Afghanistan] for the flow of coalition traffic in and out of Afghanistan remains valuable."

He added, "And we continue to be in discussions with our Pakistani counterparts about trying to get those gates open and, in general, trying to improve the relationship with Pakistan writ large."

In Brussels, Rasmussen said he invited Pakistan President Asif Ali Zardari to last month's NATO summit in Chicago, during which "President Zardari confirmed that it is his clear intention, it is the intention of Pakistan, to engage positively in finding solutions to the conflict in Afghanistan."

The secretary general declined to comment on details of the negotiations with Pakistan, adding, "I'll just reiterate that I still hope that a solution can be found in the very near future."

At the same time, he said, "we actually concluded a number of very important transit agreements at the Chicago summit and of course that will contribute in a very positive way to our operation in Afghanistan as we gradually wind down our combat operation towards the end of 2014."

NATO already has a reverse transit arrangement with Russia, Rasmussen added, "and the fact that we have now concluded ... three concrete transit arrangements with Central Asian countries at the Chicago summit will make the use of the Russian transit arrangement even more effective."

The secretary general also declined to comment on details of the Central Asian transit agreements but said, " ... We have concluded agreements that are of mutual satisfaction of the involved partners."

U.S. AIR FORCE TRAINING AT STANFORD, ENGLAND

FROM:  U.S. AIR FORCE
STANFORD TRAINING AREA, England – Senior Airman Steven Trimble, 820th Base Defense Squadron close precision engagement team member, scouts an area during Regiment-hosted sniper training Feb. 28. The lush environment and rainy weather conditions of England provided a new element to the training atmosphere as the team learned to utilize the foliage and fog to discreetly stake out the village and observe their targets. (U.S. Air Force photo by Airman 1st Class Cory D. Payne) (Released)

DEFENSE SECRETARY PANETTA EXPLAINS NEW U.S.DEFENSE FOCUS TO INDIAN LEADERS

FROM:  AMERICAN FORCES PRESS SERVICE

Panetta Explains New Strategic Guidance to Indian Leaders

By Jim Garamone

NEW DELHI, June 5, 2012 - Defense Secretary Leon E. Panetta met with Indian leaders today to explain how the U.S. strategic guidance will shift American focus to the Asia-Pacific region.

Panetta landed at a military airport and immediately went into meetings with Indian Prime Minister Manmohan Singh and National Security Advisor Shivshankar Memon.

Panetta discussed U.S. military initiatives to rebalance to the Asia-Pacific region and the importance the United States places on India, Pentagon Press Secretary George Little said. A senior defense official said the U.S. has excellent military-to-military relations with India and would like to build on the success of the last decade. In 2011, the United States participated in more than 50 exercises with the Indian military. This is in addition to a robust exchange program and multilateral operations.

India, in fact, is the only country specifically mentioned as a key partner in DOD's strategic guidance issued in January.

The secretary underscored the link India provides between eastern and western Asia and how the United States views the country as a provider of security from the Indian Ocean to Afghanistan and beyond, Little said in a written statement following the meetings.

The leaders also discussed the U.S.-India defense relationship including shared security challenges.

U.S. officials say Panetta was very encouraged by the Indian government's support for resuming the recovery of remains of Americans lost over northeastern India during World War II.

DOD believes there are about 400 unaccounted-for service members from some 90 aircraft crashes in the area during the war. The airmen were flying "The Hump" -- an air bridge over the Himalayas to China, a region that is home to some of the world's worst weather.   "This is a critical step toward bringing home our service members lost during World War II," Panetta said. "The United States and India, working together, can help provide comfort to the families of Americans who were lost during the war."

The United States has information on 16 known crash sites and continues to develop information on others.

Planting Trees for a Cleaner Chesapeake Bay

Planting Trees for a Cleaner Chesapeake Bay

REMERBERANCE OF WWI VETERANS AT ST. MIHIEL CEMETERY

FROM:  U.S. AIR FORCE
THIAUCOURT, France -- The Ramstein Air Base, Germany, Honor Guard colors detail advances to position during the Memorial Day event at the St. Mihiel American Cemetery May 27, 2012. The 40.5-acre World War I cemetery, about 24 miles southwest of Metz, France, contains the graves of 4,153 of U.S. military dead. It is the third largest of the eight World War I American military cemetery memorials in Europe. (U.S. Air Force photo by Tech. Sgt. Francesca Popp)

MORGAN STANLEY ORDERED TO PAY $5 MILLION FOR UNLAWFUL TRADES

FROM:  U.S. COMMODITY FUTURES TRADING COMMISSION
CFTC Orders Morgan Stanley & Co. LLC to Pay $5 Million Civil Monetary Penalty for Unlawful Noncompetitive Trades
Morgan Stanley had inadequate supervisory systems and controls to detect and deter the unlawful conduct that occurred repeatedly over 18-months
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an order filing and settling charges that, over an 18-month period, Morgan Stanley & Co. LLC (Morgan Stanley), a registered futures commission merchant (FCM), unlawfully executed, processed, and reported numerous off-exchange futures trades to the Chicago Mercantile Exchange (CME) and Chicago Board of Trade (CBOT) as exchanges for related positions (EFRPs). The CFTC order requires Morgan Stanley to pay a $5 million civil monetary penalty and to cease and desist from further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged.

According to the CFTC order, because the futures trades were executed noncompetitively and not in accordance with exchange rules governing EFRPs, they constituted “fictitious sales” and resulted in the reporting of non-bona fide prices, in violation of the CEA and CFTC regulations. The order also finds that Morgan Stanley had related supervisory and recordkeeping violations.

The commodity futures trading laws generally require that futures trades be executed on a futures exchange. The laws allow for exceptions to that requirement, such as when the futures trade is part of an EFRP, which is where parties exchange futures contracts for a related cash or over-the-counter (OTC) derivative position, such as an option or a swap. As long as the legal requirements are met, parties are permitted to execute EFRPs away from an exchange but then must report their EFRPs to an exchange after execution.
“The laws requiring that futures trades be executed on an exchange serve important price discovery and transparency principles,” said David Meister, Director of the CFTC’s Division of Enforcement. “As today’s action should demonstrate, when an FCM reports that it properly conducted an off-exchange futures trade as part of an EFRP, that report had better be accurate. In all cases, firms must have appropriate systems and controls in place designed to detect and prevent the conduct described in the order.”
According to the CFTC’s order, from at least April 18, 2008 through October 29, 2009, Morgan Stanley noncompetitively executed numerous futures trades and improperly reported them as EFRPs, since they did not have the required corresponding cash or OTC derivative positions.

The order finds that Morgan Stanley’s supervisory systems and internal controls were not adequate to detect and deter the noncompetitive trading of futures contracts improperly designated as EFRPs. For example, although Morgan Stanley’s Futures Operations department had the responsibility to report EFRPs to the CME and CBOT, that department was not required to verify that the EFRPs had the required corresponding related cash or OTC derivative positions, nor was any other operations department required to do so. The order further finds that Morgan Stanley failed to ensure that its employees involved in the execution, handling and processing of EFRPs understood the requirements for executing bona fide EFRPs. Moreover, the order finds that Morgan Stanley lacked sufficient surveillance systems to identify trades improperly designated as EFRPs. The order also finds that Morgan Stanley failed to designate the trades as EFRPs on all orders, records, and memoranda pertaining to EFRPs, as required.

The order recognizes Morgan Stanley’s significant cooperation in the Division of Enforcement’s investigation of this matter.

In a related proceeding, the CME Group is issuing a notice of disciplinary action against Morgan Stanley today. The CFTC thanks the CME Group for its assistance.
CFTC Division of Enforcement staff members responsible for this case are Brian G. Mulherin, Timothy M. Kirby, Brandon T. Tasco, Gretchen L. Lowe, and Vincent A. McGonagle.

SECRETARY OF AGRICULTURE TO APPOINT SOCIALLY-DISADVANTAGED FARMERS AS VOTING MEMBERS OF COUNTY COMMITTEES

Photo:  Angus Cow.  Credit:  USDA
FROM:  U.S. DEPARTMENT OF AGRICULTURE
Agriculture Secretary Vilsack Intends to Appoint Socially-Disadvantaged Farmers as Voting Members of County Committees

WASHINGTON, June 4, 2012—Agriculture Secretary Tom Vilsack announced today that he intends to appoint voting members from socially disadvantaged (SDA) communities to serve on county committees in county jurisdictions that lack fair SDA representation.USDA’s Farm Service Agency (FSA), which works collaboratively with county committees, published an interim rule today in the Federal Register that is open for public comment for 60 days.

County committees have served as a direct link between the farm community and USDA for more than 75 years, helping to deliver FSA farm programs at the local level. Eligible farmers serving on committees provide feedback to USDA on the types of FSA agricultural programs that best serve the needs of local producers.

“As we continue to build a USDA that is responsive to the needs of an evolving, 21st century agricultural economy, we must ensure a strong and sustainable future for these important committees,” said Vilsack. “Appointing new voting members to committees that lack representation will help ensure that county committees continue to play a vital and relevant role in delivering important federal farm programs to citizens of rural communities across our nation.”

County committees were formed in the 1930s to oversee federal farm programs, a tool for grassroots engagement whereby locally elected committees give farmers effective self-government authority. That authority continues today, making farmers primary stewards of farm programs passed by Congress, including administration and outreach to all farmers and ranchers in their area.

Secretarial appointments would add SDA voting members to county jurisdictional areas where representation is lacking, according to a statistical review conducted by USDA. The appointments will supplement the existing election process where currently there are 7,700 elected county committee members representing 2,244 county jurisdictions.

“We are proud of the great diversity that makes up our rural communities,” said FSA Administrator Bruce Nelson, “and appointing voting members to committees that lack representation is an important step in helping to maintain a robust county committee system for all producers.”

Authority to appoint voting SDA members was granted in the 2002 Farm Bill passed by Congress. The interim rule allows the Secretary of Agriculture to ensure fair representation on county committees by appointing a voting member in areas identified under-representing the diversity of area producers. Each year, USDA will conduct a fresh statistical analysis, and appointments with voting authority will continue to occur in areas identified under-representing the diversity of area producers.

A copy of this interim rule is on display in today’s Federal Register. To submit comments, use any of the following methods:

The Obama Administration, with Agriculture Secretary Vilsack’s leadership, has worked tirelessly to strengthen rural America, implement the Farm Bill, maintain a strong farm safety net, and create opportunities for America’s farmers and ranchers. U.S. agriculture is currently experiencing one of its most productive periods in American history thanks to the productivity, resiliency, and resourcefulness of our producers. A strong farm safety net is important to sustain the success of American agriculture. For example, in response to tighter financial markets, USDA has expanded the availability of farm credit, helping struggling farmers refinance loans. In the past 3 years, USDA provided 103,000 loans to family farmers totaling $14.6 billion. Over 50 percent of the loans went to beginning and socially disadvantaged farmers and ranchers.

NEWS FROM THE AFGHANISTAN FRONT

Photo:  Helicopter Flying Over Afghanistan.  Credit:  U.S. Air Force

FROM:  AMERICAN FORCES PRESS SERVICE

Afghan-led, Coalition-supported Force Detains Taliban Leader

Compiled from International Security Assistance Force Joint Command News Releases

WASHINGTON, June 5, 2012 - An Afghan-led, coalition-supported security force detained a Taliban leader and several suspected insurgents in the Kandahar district of Afghanistan's Kandahar province today, military officials reported.

The leader directed the placement of improvised explosive devices and coordinated the delivery of weapons and explosives to insurgents throughout the district, officials said.

The security force also confiscated several AK-47 rifles and other weapons.

In other Afghanistan operations today:

-- A combined force detained a Taliban leader and two suspects in the Zharay district of Kandahar province. The detained insurgent leader was responsible for attacks against Afghan and coalition forces and transported explosives and weapons to insurgents throughout the province.

-- A combined force detained several suspects during a search for a Haqqani leader in the Khost district of Khost province. The Haqqani leader is suspected of planning the attack against Forward Operating Base Salerno on June 1. He is also an explosives expert suspected of building the vehicle-born IEDs that the insurgents detonated at the Salerno gate.

-- A combined force detained several suspects during a search for a Haqqani leader in the Pul-e 'Alam district of Logar province. The Haqqani leader supplies insurgent fighters with weapons and executes attacks against Afghan and coalition forces.

In Afghanistan operations yesterday:

-- In the Waygal district of Nuristan province, a combined force called in an airstrike that killed several insurgents.

-- A combined force requested airstrike killed two Taliban leaders in the Wali Muhammad Shahid Khugyani district of Ghazni province. One deceased insurgent was the senior Taliban leader in the Wali Muhammad Shahid Khugyani and Ghazni districts. He led an improvised explosive device cell and conducted attacks against coalition and Afghan forces throughout the region. The second deceased Taliban leader directed the placement of IED's against coalition and Afghan forces throughout the district.

USS ENTERPRISE COMMEMORATES 70TH ANNIVERSARY OF BATTLE OF MIDWAY

Sailors and Marines aboard the aircraft carrier USS Enterprise (CVN 65) participate in a memorial ceremony commemorating the 70th anniversary of the Battle of Midway. The previous USS Enterprise, CV-6, played a key role in the battle. Enterprise is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions as part of Operation Enduring Freedom. U.S. Navy photo by Chief Intelligence Specialist Daniel B. Mayfield (Released) 120604-N-ZZ999-044

BRIEFING FROM THE PENTAGON JUNE 5, 2012

Photo:  Pentagon.  Credit:  U.S. Department of Defense.
FROM: U.S. DEPARTMENT OF DEFENSE
Presenter: Deputy Assistant Secretary of Defense for Media Operations Capt. John Kirby June 05, 2012
OD News Briefing with Capt. Kirby from the Pentagon
            CAPTAIN JOHN KIRBY:  Afternoon, everybody.
            First, as you -- just a couple of thoughts here.  First, as you know, Secretary Panetta continues his trip to the Asia-Pacific region this week.  Today he arrived in New Delhi, and he paid calls on both Prime Minister Singh and National Security Advisor Menon.  We provided you all a readout of those meetings, both of which the secretary appreciated.  And he continues to believe these meetings are valuable to helping us continue to improve the military relationship that we enjoy with India.

            You may also have seen that we reached agreement today with India to resume activities related to the recovery of remains of U.S. airmen lost in World War II.  We believe there's about 400 unaccounted-for service members from some 90 wartime crashes in northeastern India, and we have information on about 16 of known crash sites and continue to develop information about others.  As the secretary noted, the return of our fallen heroes remains a top priority for the department.  This agreement reached with India today is a critical first step to providing some comfort to the families of those American airmen, and we are grateful for the government -- to the government of India for their cooperation and understanding.
            With that, Bob.
            Q:  John, what can you say about the U.S. government's degree of confidence in having killed al-Libi in the airstrike yesterday?
            CAPT. KIRBY:  Yeah, as you know, Bob, we don't talk about the specific of the counterterrorism operations, so I'm not going to be able to confirm those press reports.  But this is a very dangerous individual, and for him to no longer be walking the earth would be a good thing for everybody.  I think the leadership development program of al-Qaida is -- has some health risks and hazards that we think are good.
            Q:  (Off mic) -- drone attacks took place?
            CAPT. KIRBY:  No, as I said, we don't discuss the specifics of counterterrorism operations.  So I'm not going -- I'm not going to speak to specifics of operations.
            Q:  But can -- could you say if al-Libi, the al-Qaida number two in Pakistan, is one of the United States' targets?
            CAPT. KIRBY:  Senior leaders of al-Qaida period, no matter where they are, by virtue of what they choose to do for a living, are threats to our security, the security of the American people, and the security of our friends and allies around the world.  They remain threats, and the president, the secretary of defense have made it very clear that we're going to deal with those threats wherever they are.
            Q:  So not responding specifically to this operation yesterday or anything that happened in the incidents yesterday, do you have any indication Abu Yahya al-Libi (ph) is less alive today than he was -- (inaudible)?
            CAPT. KIRBY:  I have nothing for you on that today.
            Spence.
            Q:  On India, the secretary asked the Indians to step up their involvement in Afghanistan.  How is that not potentially provocative to the Pakistanis at a time when the department is trying to get greater Pakistani cooperation on a range of Afghanistan-related issues?  And to what degree do the benefits of that deeper Indian cooperation outweigh those potential costs?
            CAPT. KIRBY:  I think the reports have been slightly exaggerated; I don't believe the secretary asked them to impress them to do more rather than expressed how much he appreciated the work they were doing to help provide support in Afghanistan and some of the things that they were -- that they have expressed interest in continuing to do in Afghanistan, but also in the region.  And so I think it was really more a statement of appreciation for everything they've done and the hope that they'll continue to stay involved as a leader in the region.
            And they're -- you know, this is a -- it's a vital part of the world, and our engagement in the region is not about bilateral relations only with any one particular country.  We've long said that security in Afghanistan is a -- is tied very closely to our relationship with Pakistan, as it is also with our relationship with other countries in the region, including India.  India is a global power, and they are meeting their responsibilities and we welcome that.
            Q:  So to clarify, did the secretary or did the secretary not ask the Indians for a deeper involvement in training the Afghan army and police?
            CAPT. KIRBY:  I think he expressed gratitude for what they have done and -- that his fervent hope that they'll continue to stay engaged in the region and in particular in helping Afghanistan as it moves forward.
            Tony.
            Q:  I'm going to shift gears to the F-22.  On May 15th, you and George Little came up here and announced the flight limitation.  Fast-forward three and half weeks later, where does that -- is there any new information you can impart about how close the Air Force is to divining a cause for the oxygen issue?
            CAPT. KIRBY:  Well, I know that -- I don't have anything new to announce today, but I do know that their work continues.  They're working on this very, very hard.  We expect that they will be briefing the secretary, giving him an update, in the very near future.  But I wouldn't want to get ahead of that.  And I certainly would refer you to Air Force on any specifics.  Right now I don't have anything new to announce but -- other than to tell you that we do know that there has been a lot of work in the intervening weeks.  And again, they're preparing to update the secretary soon.
            Q:  What's the -- what's OSD's position on grounding the fleet if at some point a cause is not determined and it's still hanging out there -- as in an engineering problem that needs to be solved, using your words?
            CAPT. KIRBY:  Right.  And I think the secretary -- the secretary takes this issue very, very seriously.  It's a safety-of-flight issue.  He understands that.  And he's not taking any options off the table with respect to the future of the aircraft.
            Right now he doesn't believe that grounding the fleet is the prudent course.  And he endorsed the way forward that the Air Force is pursuing, and also, as we announced, imposed some flight restrictions.  I think he wants to see how that's going and he wants to get updated from Air Force leadership, find out what they've learned before we take any more decisions moving forward.
  But no options with respect to this program are off the table right now.  Again, it's a safety-of-flight issue that he takes very, very seriously.
            Q:  (Inaudible) -- national weapons program in case -- if it is forced into combat would these limitations -- not cripple, but curtail its combat effectiveness?
            CAPT. KIRBY: Well, it's on an operational deployment, as you know, in the Middle East region right now, and we haven't discerned any operational impact as a result of the flight limitations that have been placed on it.  So right now the aircraft is performing very well in an operational setting, and again, we're just going to continue to watch this as we move forward.
            Yes, sir.
            Q:  Japan has a new defense minister.  Has the secretary spoken to him on the phone?
            CAPT. KIRBY:  Not to my knowledge, they have not communicated, no.
            Q:  Captain, may I ask you something on Mexico?  Recently -- well, as you know, in the current situation the most reliable institution and the most respected institution in Mexico is the army, the Mexican army.  They are struggling against the drug cartels.  Mexico and U.S. have been working closer in this relationship between militaries.  But however, now there are allegations of corruption against four high-rank generals of the army.
            Do you have any concern about these allegations?  Do you think some -- how can harm the current relationship and the work of the -- of the -- of both countries against the organized crime?
            CAPT. KIRBY:  I don't have anything -- I've not heard anything about these allegations.  So this is the first I'm hearing that there are allegations against senior officers in the Mexican army.  So I wouldn't be able to comment on that specifically, except to say that we do value our relationship with the Mexican armed forces and we take very seriously our commitment across the interagency in the United States, not just in the Defense Department, to try to help stem the issue of narcotics flow and narco-violence and terrorism that has occurred inside Mexico -- again, to the degree the Mexicans want support.  I mean, we're not -- we're not doing anything without, of course, their invitation and their request and with their approval.  But it's -- but it's a serious issue we share across that border and that we both are taking very, very seriously.
            And without respect to these allegations that -- again, that I don't know anything about -- I would tell you that I don't see anything changing our commitment to continue to assist the Mexican armed forces to the degree that we can.
            Q:  Do you think there is something that must -- can be done, not only in Mexico but in some other countries to avoid the corruption of the military by these cartels?
            CAPT. KIRBY:  Well, again, your question would imply that there is rampant corruption inside the Mexican military, and I certainly wouldn't make that change here today.  Again, it's a very important relationship that we take very seriously, on a very serious topic and issue, a security issue, for both our nations.  And we want to just continue to look for ways to get that cooperation even better, even closer, to continue to address this problem.
            Bob.
            Q:  NATO's announcement yesterday that they have an agreement with -- I think with Uzbekistan and other countries to the north of Afghanistan to -- for the removal of materiel out of -- out of Afghanistan --
            CAPT. KIRBY:  Right.
            Q:  Should this be seen as an indication that the U.S. has essentially given up persuading the Pakistanis to reopening the supply -- overland supply routes?
            CAPT. KIRBY:  No, I wouldn't take it that way at all.  This is an agreement that -- and I would let the alliance speak to it -- that the alliance made with these three nations.  As you know, we have bilateral agreements with them as well, through the Northern Distribution Network, to move goods in and out of Afghanistan.  We are very appreciative for those arrangements and continue to use them.
            We've also long said that we do believe having the ground gates open at Chaman and the Torkham gates open for the flow of coalition traffic in and out of Afghanistan is -- remains valuable.  And we continue to be in discussions with our Pakistani counterparts about the -- about trying to get those gates open and, in general, trying to improve the relationship with Pakistan writ large.
            But no, I would not take the pursuit of this deal and this agreement as any kind of repudiation of the importance of those gates or the larger relationship with Pakistan.
            Q:  The discussions with the Pakistanis about the two gates -- is it -- has it boiled down to a negotiation over money, or are there other issues?
            CAPT. KIRBY:  Well, I wouldn't get into the details here from -- I don't want to be negotiating this in public.  But I mean, it -- certainly the gates are a topic of discussion here in these discussions.  There's no question about that.  But it is really, writ large, about trying to get the relationship, at a strategic level, on a better and more firm footing than it has been since the November 26th incident.
            Jeff?
            Q:  I'm just curious -- after 2014, will the Air Force have a role in supplying the Afghan army and police?
            CAPT. KIRBY:  The post-2014 U.S. presence and mission has yet to be determined.  We have long said and continue to believe that they'll be some U.S. presence in Afghanistan and a -- and a U.S. military mission of some kind after the ISAF mission ends at the end of 2014.  But the details of that are -- we aren't even at the point where, you know, we're starting to lay all that out.  It will most likely be in some sort of training, advising and assisting capacity that could involve Air Force personnel and Air Force capabilities.  But we just aren't there yet, Jeff; we just haven't gotten to that point.
            Q:  Now that NATO's moving so much stuff out of Afghanistan, are there any plans to activate the CRAF?
            CAPT. KIRBY:  The CRAF?
            Q:  Civil Relief Air Fleet.
            CAPT. KIRBY:  None that I'm aware of, but I learned a new acronym today.  (Laughter.)  I appreciate that.
            Yes, sir.
            Q:  Captain Kirby, a Chinese official recently described what the secretary announced about the U.S. Naval pivot to Asia as untimely.  What is DOD's reaction to that?  Are you concerned that this announcement could create more tensions with China?
            CAPT. KIRBY:  The secretary has made it clear on his trip that the defense strategy, which includes a rebalancing and more focus on the Asia-Pacific region, is not targeted at any one country in that region but rather the region as a whole -- and our firm belief that we have significant security interests in the Asia-Pacific, significant security commitments to allies and partners in the region.
            It's not aimed at rebuffing or trying to limit the growth and development of any one country.  In fact, he's also made it clear that the peaceful, prosperous rise of China is a good thing, not just for that region, but for the world.
            And as for the timeliness, I think we would all agree that the -- that the defense strategy as written and as endorsed by not only this department, but by the president, is absolutely timely.  This is the right time to be looking at the Asia-Pacific region for -- to renew our commitments there and to rebalance our resources and our attention there.
            Sir.
            Q: Could I just ask for -- on Syria, has there been any contact between the U.S. military and anyone involved with the Syrian Free Army?
            CAPT. KIRBY:  No.  No.  We work -- as I said last week, remain -- we still remain deeply concerned by the violence and by what the Assad regime continues to do to its own people.  They still have an opportunity here to do the right thing, step down, stop killing their own people.  We certainly -- that's the expectation.
            Sir.
            Q:  There are some reports in regards with the exercises of some military troops that are part of NATO before they go to Afghanistan near the border of Mexico.  Is there anything you can tell us about that?
            CAPT. KIRBY:  No, I'm afraid not.  I don't have anything for you on that today.
            Q:  Has there been any agreement with Canada, maybe, to provide some sort of terrain similar to Afghanistan for the training of their troops?
            CAPT. KIRBY:  Is there an agreement with Canada about sending troops to Afghanistan?
            Q:  (Off mic) -- no, no, no, providing some training -- a place to train with similar conditions to Afghanistan, for example?  (Off mic) -- Arizona perhaps?
            CAPT. KIRBY:  Oh, I'm not aware of anything like that.  I'm happy to take the question and look at that; but I have never -- I have not heard anything about that at all.
            Q:  (Off mic)?
            CAPT. KIRBY:  Yeah.
            Q:  Can you comment at all about the CBS report that suggests that unmanned drones are collecting information on Americans that could be shared with law enforcement?
            CAPT. KIRBY:  Not heard that; have seen that report.  I mean --
            Q:  Well, it's the Defense Department -- (inaudible) --
            CAPT. KIRBY:  -- the Defense Department does not spy on the American people.  But I've not seen that report.
            Q:  So it's not allowed to do this?
            CAPT. KIRBY:  That's right.  Yeah, the Defense Department does not spy on the American people here at home, and I mean, I just -- I've not seen the report, but I certainly wouldn't comment beyond that.
            Q:  Thank you.
            CAPT. KIRBY:  Yeah.
            OK?
            Q:  Thank you.
            CAPT. KIRBY:  Thanks, everybody.
            Q:  (Off mic) --
            CAPT. KIRBY:  Yep -- sorry, we had one more?
            Q:  I'll just take another bite at this apple.  (Laughter.)  Does the department wish to see India deepen its involvement in the Afghanistan war or maintain what its involvement already is?
            CAPT. KIRBY:  We have been -- we encourage all countries in the region -- and I think it came out of the Chicago summit -- encouraged countries around the world to continue to do more to invest in Afghanistan's future, and there was broad consensus at the Chicago summit by every nation attending to do just that.  But to characterize this -- the secretary's visit to India as some sort of poke in the chest to get them to do more would be -- would be to do his visit a disservice.  That's not why he's in India.  He's in India to thank them for their efforts at regional leadership and to look for ways to deepen our defense cooperation with India and our relationship with India.  That is something he would like to do more of.
            But we're very appreciative of India's efforts in the region and in Afghanistan in particular.  Did that help?
            Q:  Thank you.  Thank you.
            CAPT. KIRBY:  You're welcome.
            Thanks, everybody.

STATE DEPARTMENT OFFICIAL'S REMARKS TO U.S.-INDIA WORLD AFFAIRS INSTITUTE

Photo Credit: Wikimedia.
FROM:  U.S. STATE DEPARTMENT
Remarks to the U.S.-India World Affairs Institute
Remarks Robert O. Blake, Jr.
Assistant Secretary, Bureau of South and Central Asian Affairs Washington, DC
June 4, 2012
Thank you Vinod [Jain] for bringing together this great group tonight and my thanks, as well, to the India-U.S. World Affairs Institute, the Asia Society, and the East West Center for hosting us and giving me the opportunity to preview the U.S.-India Strategic Dialogue which will take place here in Washington next week. The SD, as our governments call it, is an annual, high-level series of bilateral meetings chaired by Secretary Clinton and the Indian External Affairs Minister Krishna.

Before I get to some of the details, I would like to say a few words about the essential role of Indian Americans in what we’ve accomplished in partnership with India, and where we see ourselves in the future. As I look out at so many familiar faces, people who share our vision of Americans and Indians working together, learning together, promoting peace and security together, and prospering together, I am reminded that all of you play an invaluable role in helping take this relationship to the next level.

There is perhaps no country in the world with whom we have traveled faster and farther than India over the last ten years. While the extensive consultations we have on a government-to-government level are an essential part of our ever-expanding bilateral relationship, its heart, its core, is all of you – the incredible citizens of both countries.

We share with India a vibrant two-way exchange of entrepreneurs, executives, students, professors, and scientists that has come to serve as a model for others around the world. Our business ties have prospered. Our education and research partnerships have set the standard for innovation. And the common thread -- from the classrooms of Chennai and Charlottesville to the boardrooms in Mumbai and Minneapolis -- is the passionate and committed Indian American community. All of you are helping shape and guide one of the defining bilateral relationships of the 21st century.

Indian Americans have also helped write the story of this nation. President Obama reminded us just a few weeks ago at a gala celebrating our Asian Pacific American heritage of “the trailblazer” Dalip Singh Saund. As a young man in 1920 he came to the U.S.to study agriculture, stayed to become a farmer, and took on the cause of citizenship for all people of South Asian descent.

And once Mr. Saund earned his own citizenship, he stepped up to serve the country he loved -- and became the first Asian American elected to the Congress. Even the youngest Indian Americans are making their mark. Nine of the past 13 national spelling bee champions have been Indian American children whose abilities are surely the envy of all of us who must rely on our computers and smartphones to catch our spelling errors.

From Congress to the National Spelling Bee, the Indian American community is one of the most energetic and successful diaspora groups in the United States. You have one of the highest per capita incomes of any diaspora group, and Indian Americans are increasingly active in American politics as the success of Governors Bobby Jindal, Nikki Haley and so many others shows.

Indian Americans who work tirelessly to improve ties between the United States and India and the lives of their fellow citizens in both countries are a powerful symbol of the best of America: our commitment to community service, our idealism, and our optimism.

To support that unwavering commitment to philanthropy and service, one of my objectives as Assistant Secretary has been to facilitate American generosity towards India. India is home to about 1.5 million NGOs, but much of their work is not fully known here in the United States. In addition, it is not easy to identify the NGOs credible enough to receive a donor’s money.

We are helping to change this. We will soon launch, in partnership with the Indian non-profit – GuideStar India, an online searchable database of Indian NGOs. It will include organizations that have been vetted to ensure they are accountable and transparent so the maximum can go to the intended beneficiaries.

This site will also list all the intermediary institutions that can facilitate tax-deductible donations. We have signed on prominent participants including leaders in the India philanthropy space like GiveIndia, Global Giving, and Give2Asia. By matching a list of certified Indian NGOs with potential American donors, we hope to create an efficient philanthropy marketplace that will grow the overall sector, making it a win-win proposition for all. In today’s budget-constrained environment, such public-private strategies strengthen not only our international economic development efforts, but also the crucial people-to-people ties that bind our two great countries and form a network of partnership that undergirds everything we do.

Secretary Clinton calls it smart power. It’s impossible for any government, no matter how well-meaning, to meet all of the challenges we face, from natural disasters, to economic stagnation, to poverty or civil unrest. While we have a very strong force in our organized government efforts, fostering people-to-people exchanges is the core of smart power. It is also smart to prepare our rising leadership and workforce to know and understand India.

Our new Passport to India initiative is one way that the South and Central Asia Affairs Bureau is promoting smart power. The goal of Passport to India is to significantly increase the number of Americans who visit India for a study and learning experience abroad. The most recent data showed that while nearly 104,000 Indians study here in the United States, fewer than 4,000 Americans study in India. That number is far too low. Indian students in American communities and American students in Indian communities create the friendships and linkages we are working to build. Secretary Clinton and I see expanding opportunities for American students in India as a major investment in three key areas.

It’s an investment in U.S.- India relations, it’s an investment in the American and global economies, and it is an investment in our young people so they have the skills and experience they need to succeed in their professional lives. For our rising generation to be globally competitive, they must know and understand India. The Passport to India initiative is a public-private partnership. To date, we have pledges from both U.S. and Indian private entities to support 225 internship opportunities for American students over the next 3 years in India-based organizations, and we are working hard to generate more. Interns will work side by side with their Indian peers to work on software development in IT companies, on innovation and management practices in manufacturing firms, and on the needs of the marginalized and underserved with local NGOs.

It all comes down to one thing: By building the next generation of leaders who are well versed in each other’s culture, language and business, we will be better prepared to work together and resolve common challenges for the benefit of not only our two countries, but for the international community as well. All of you have already done so much to support the collaborations between Americans and Indians from which ideas come to life. You know the United States and you know India and you know the limitless potential that exists when we get together. Last month in New Delhi, Secretary Clinton re-emphasized that the United States and India are “two great democracies with common values and increasingly convergent interests.”

It is those common values and convergent interests that guide our strategic ties, and serve as our compass as we develop bilateral ties uniquely suited to the challenges of the century ahead. The U.S-India Strategic Dialogue helps us to build that consensus. Over the last three years, our two exceptional nations have expanded our areas of cooperation to reflect 21st century needs, partnering across areas as diverse as education, clean energy and defense. It’s not an exaggeration to say that even the sky is not the limit – we discuss cooperation in space, too!

Our regional and homeland security cooperation has never been stronger. On Afghanistan, the United States and India share a commitment to that country’s stable and prosperous future and have each signed Strategic Partnership Agreements with the Afghan government. The SD will give us a chance to together build on the momentum from the NATO Summit in Chicago, while preparing for the Tokyo Conference on Afghanistan in July. Our nations share a distinct vision for economic integration in the South and Central Asian region. This will be a theme that plays prominently in discussions between Secretary Clinton and Minister Krishna that are likely to include India’s Look East policy, integration opportunities between India, Bangladesh, and increasingly Burma; and developments in Afghanistan. Our partnership has paved the way for real-time information sharing of terrorist threats and sharing of best practices that keep our nations and our neighbors safe. We continue to support an unprecedented number of exchanges between city and high-level federal officials alike, which focus on port, border, and transportation security, illicit finance, and cyber crime issues.

On Friday, May 25, we held the 13th annual Counterterrorism Joint Working Group meeting in Washington. Ambassador Dan Benjamin, the State Department’s Counterterrorism Coordinator, and his Indian counterpart, Special Secretary Asoke Mukerji, along with representatives from across the interagency, met to discuss issues related to counterterrorism and homeland security. This dialogue has been the cornerstone of our counterterrorism relationship with the Indians since 2000. This year, the sides discussed efforts to counter violent extremism and terrorism finance, as well as to see the perpetrators of the 2008 Mumbai attacks brought to justice.

Our two national security councils will also host a second round of U.S.-India Cyber Consultations early next week to further advance our bilateral coordination on key cyber policy issues and to enhance information sharing between our governments in support of counterterrorism and cybercrime mitigation. Following these consultations, the U.S. and India will re-convene their longstanding Information and Communication Technology Working Group, which has a history of bringing government and private sector participants together to resolve challenges and identify opportunities for greater growth and collaboration in the ICT space.

On the margins of the Strategic Dialogue, we will have a day-long Higher Education Dialogue which is a follow on to last fall’s Higher Education Summit and will focus on two key areas identified there: advanced research and innovation and workforce development, specifically, community colleges.

With respect to higher education collaboration, I am delighted that we will announce during the Dialogue the first eight partnership projects to be funded jointly by the United States and India through the Obama-Singh 21st Century Knowledge Initiative. These three-year, approximately quarter-million dollar grants will be used for joint projects between American and Indian universities in the areas of food security, energy, climate change and public health, among others.

Representatives from across our science and technology communities will participate in a Joint Committees Meeting to review progress in advancing S&T cooperation, including retention and advancement of women in science and engineering, and STEM education. This is an area with unlimited potential.

Secretary Clinton and Indian Minister of External Affairs Krishna – the two co-chairs of the Strategic Dialogue – will highlight a series of grants for entrepreneurial projects that seek to improve health and empower citizens through innovation. These aren’t government handouts with strings attached; they are meant to spur legitimate economic growth and encourage the invention and scaling of disruptive technologies.

We are also hosting the Child Survival Call to Action, about which I’ll let Assistant Administrator Biswal say more. On the health and innovation side, Health and Human Services Secretary Kathleen Sebelius will brief on her trip to India earlier in the year, and ways that our two countries can address the most public health challenges of the 21st century. We have a great opportunity to work with India globally, to address chronic disease and strengthen health systems, a testament to both our countries’ global reach, which is only multiplied when we do so in tandem.

But, governments can only provide part of the solution. Our two countries – indeed, the world – need all of you to leverage their unique on-the-ground insights and expertise to help facilitate the collaboration that leads to the big ideas that yield real results. I applaud everyone here tonight for your efforts in helping to bring our two great nations – two great democracies – ever closer together. Because of you, the bond between the United States and India is stronger every day.

You do business with India, you conduct research in India, you teach Indian students. You know what the impact of a policy decision in Washington or New Delhi really is and how it matters to the work you do and the people with whom you collaborate. Thank you for having me here this evening and thank you for all you do to make the partnership between the United States and India successful, globally relevant, and enduring.

GEN, DEMPSEY SEES GROWTH IN U.S.-THAILAND PARTNERSHIP

Photo Credit:  U.S. Department of Defense.
FROM:  AMERICAN FORCES PRESS SERVICE 

Dempsey: U.S.-Thailand Partnership Holds Growth Potential

By Karen Parrish

ABOARD A MILITARY AIRCRAFT, June 5, 2012 - Geostrategic location and global commitment, paired with a maturing military and a growing economy, make longtime U.S. ally Thailand an attractive prospect for even greater bilateral cooperation, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, said today.

Dempsey left Thailand, the last stop on a weeklong Pacific visit, around midafternoon today local time, about a half-day ahead of the eastern United States. En route to Hawaii and then back to Washington, D.C., the chairman told American Forces Press Service the 179-year-plus U.S.-Thailand relationship is ripe for growth as the U.S. furthers its strategic rebalance in the Asia-Pacific region.

Thailand touches Burma, Laos, Cambodia and Malaysia, with Vietnam, India and China not much further away. It also has an eastern coastline on the Gulf of Thailand -- opening into the South China Sea -- and a west coast on the Andaman Sea, also known as the Burma Sea.

"They're in an extraordinarily key location," Dempsey said of Thailand. Thailand's people have used their growing economic and military strength to expand beyond their borders as a contributor to global security efforts, he added.

"For example, just today while I was there, they had a company return from a peacekeeping mission in Sudan," the chairman said.

With stops on his Thailand visit including meetings with Prime Minister Yingluck Shinawatra, Defense Minister Sukamphon Suwannathat, Chief of Defense Forces Gen. Thanasak Patimaprakorn and the Royal Thai army, navy and air force chiefs, Dempsey said he gained a thorough sampling of how Thailand's leaders view U.S. strategic goals.

"They're a very credible, welcoming military partner," he said, adding Thailand's location and growing economy make it likely the Southeast Asian nation will "be able to, over time, do more."

The chairman noted, "We're always eager to partner with nations who have the potential to continue to do more."

An area of potential growth for both Thailand and the United States is under discussion, Dempsey said. The two nation's militaries, he said, are examining concepts for a center of excellence in Thailand devoted to humanitarian assistance and disaster relief.

The United States and Thailand co-host an annual military exercise, Cobra Gold, which began in 1980. The most recent of these exercises, held in January and February, drew Indonesian, Japanese, Malaysian, Singaporean and South Korean military participants.

The next Cobra Gold will serve as a proof of principle for the new center of excellence, Dempsey said. He acknowledged the two militaries haven't agreed on a framework yet, but noted a center of excellence typically brings together experts and resources to focus intensively on a particular problem set to achieve the fastest possible progress.

"This started with a conversation between the two heads of state, our president and the Thai prime minister, that then was passed to the military to develop a concept," the chairman explained. "So we've been talking conceptually. Cobra Gold will be a platform on which we can advance our thinking."

The new center may begin as a bilateral U.S.-Thai effort, or it could involve additional nations from the beginning, he said.

"We have to talk about the location, we have to talk about the size -- and we're not there yet, but that's the objective," the chairman added.

Dempsey noted severe weather and seismic events in the region have become increasingly common in recent years. He pointed out that the need to effectively anticipate and plan responses for humanitarian assistance and disaster relief needs "is one of those functions that nearly everyone can agree on."

Thailand is "perfectly placed" for a center than can pursue that function, he said.

"We think that they would be very interested in that," Dempsey said.

Beyond humanitarian assistance and disaster relief, the chairman said, Thailand's officials share some common concerns with representatives he's spoken with this week from Japan, Australia, South Korea, Malaysia, the Philippines and Singapore.

In all those places, he said, "there's a desire to improve on intelligence sharing, information sharing, maritime security, maritime awareness, counter-terror, counter-piracy, counter-narcotics and countering transnational organized crime."

These common interests provide United States' leaders opportunities to strengthen ties with nations and multinational organizations across the region, Dempsey said.

"As we rebalance ourselves, I think those interests in particular will provide the foundation on which we can build," the chairman said.

U.S. STATE DEPARTMENT FACT SHEET ON U.S. AND CHINA RELATIONS

FROM:  U.S. STATE DEPARTMENT
U.S. Relations With China
Bureau of East Asian and Pacific Affairs
Fact Sheet
June 5, 2012
U.S.-CHINA RELATIONS
The United States seeks to build a positive, cooperative, and comprehensive relationship with China by expanding areas of cooperation and addressing areas of disagreement, such as human rights. The United States welcomes a strong, peaceful, and prosperous China playing a greater role in world affairs and seeks to advance practical cooperation with China in order to build a partnership based on mutual benefit and mutual respect. The annual Strategic and Economic Dialogue (S&ED) has served as a unique platform to promote bilateral understanding, expand consensus, discuss differences, improve mutual trust, and increase cooperation. The strategic track of the S&ED has produced benefits for both countries through a wide range of joint projects and initiatives and expanded avenues for addressing common regional and global challenges such as proliferation concerns in Iran and North Korea, the conflict between Sudan and South Sudan, and climate change. The United States has emphasized the need to enhance bilateral trust through increased high-level exchanges, formal dialogues, and expanded people-to-people ties. The U.S. approach to China is an integral part of reinvigorated U.S. engagement with the Asia-Pacific.

U.S. Assistance to China
U.S. Agency for International Development (USAID) and State’s assistance programs in China focus on four principal areas: assisting Tibetan communities; addressing the threat of HIV/AIDS and other pandemic diseases; advancing the rule of law and human rights; and supporting environmental protection and climate change mitigation efforts. U.S. assistance programs are targeted, scalable with Chinese resources, and directly address U.S. interests such as limiting the transmission of infectious diseases such as tuberculosis, malaria, HIV/AIDS, and avian influenza that pose threats throughout the region and globally. Programs in Tibetan areas of China support activities that preserve the distinct Tibetan culture and promote sustainable development and environmental conservation in Tibetan communities through grants to U.S. organizations.

Bilateral Economic Relations
The U.S. approach to its economic relations with China has two main elements: the United States seeks to fully integrate China into the global, rules-based economic and trading system and seeks to expand U.S. exporters' and investors' access to the Chinese market. Total two-way trade between China and the United States grew from $33 billion in 1992 to over $503 billion in goods in 2011. The United States is China's second-largest trading partner (after the European Union--EU), and China is the fourth-largest trading partner for the United States (after the EU, Canada, and Mexico). During the economic track of the May 2012 S&ED, the two countries announced measures to enhance macroeconomic cooperation, promote open trade and investment, enhance international rules and global economic governance, and foster financial market stability and reform.

China's Membership in International Organizations
The People's Republic of China assumed the China seat at the United Nations in 1971, replacing Taiwan, and is a permanent member of the UN Security Council. Over the years, China has become increasingly active in multilateral organizations in particular through the United Nations. China and the United States work closely with the international community to address threats to global security, including North Korea and Iran's nuclear programs.

CIVIL ACTION FILED AGAINST THREE CONSOLE ENERGY, INC., EMPLOYEES FOR INSIDER TRADING

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
June 1, 2012
The Securities and Exchange Commission announced today that on June 1, 2012, it filed a civil action against three former employees of CONSOL Energy, Inc. (“CONSOL”) for illegal insider trading in CONSOL securities in advance of the company’s public announcement, on March 15, 2010, that it entered into an agreement to acquire the Appalachian Exploration and Production business of Dominion Resources, Inc. (“Dominion”). The Commission alleges that on March 9, 2010, both Charles E. Mazur Jr., CONSOL’s former Director of Corporate Strategy, and Joseph A. Cerenzia, CONSOL’s former Director of Public Relations, received a confidential email stating that the acquisition of Dominion was going to be announced prior to the opening of the market on March 15, 2010. Both individuals traded CONSOL securities after learning of the pending acquisition announcement. James S. Poland, CONSOL’s former General Manager of Engineering, conducted an environmental survey in connection with the of the Dominion acquisition. Poland also traded CONSOL stock after receiving nonpublic information about the acquisition and when it would be announced.

The Commission’s complaint alleges that Mazur violated Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5(a) and (c) thereunder, and alleges that Poland and Cerenzia violated of Sections 17(a)(1) and (3) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Exchange Act and Rules 10b-5(a) and (c) thereunder, and seeks permanent injunctions, disgorgement, prejudgment interest and civil penalties.

The defendants agreed to settle the Commission’s charges, without admitting or denying the allegations in the Commission’s complaint. Under the settlements, the defendants consented to Final Judgments that will permanently enjoin Mazur from violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and permanently enjoin Poland and Cerenzia from violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Mazur agreed to pay approximately $97,171 in disgorgement, prejudgment interest, and civil penalties. Poland agreed to pay approximately $19,600 in disgorgement, prejudgment interest, and civil penalties. Cerenzia agreed to pay approximately $15,453 in disgorgement, prejudgment interest, and civil penalties. The settlements are subject to court approval.

COURT ENTERS FINAL JUDGMENTS AGAINST FORMER CFOS OF INFOUSA, INC.

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
June 1, 2012
Court Enters Final Judgments, Including Indemnity Bars, Against Rajnish K. Das and Stormy L. Dean, Former CFOs of infoUSA, Inc.
The Securities and Exchange Commission announced today that on May 29, 2012, the Honorable Laurie Smith Camp, Chief United States District Judge for the District of Nebraska, entered final judgments against Rajnish K. Das and Stormy L. Dean, two former chief financial officers of infoUSA, Inc., an Omaha-based database marketing company. The court entered final judgments against Das and Dean permanently enjoining them each from violating Sections 10(b), 13(b)(5), and 14(a) of the Securities Exchange Act of 1934; Rules 10b-5, 13a-14, 13b2-1, 13b2-2, 14a-3, 14a-9 thereunder; and aiding and abetting violations of Exchange Act Sections 13(a) and 13(b)(2), and Rules 12b-20 and 13a-1 thereunder. Das was also enjoined from violating Exchange Act Rule 13a-13.

The court also ordered that Das and Dean each were barred from serving as an officer and director of a public company for a period of three years from the date of the final judgments. In addition, the court ordered Das and Dean to pay civil penalties of $50,000 each, and specifically prohibited them from seeking payment, reimbursement, or indemnification from any third party for payment of the civil penalties or the cost of the bond required to stay enforcement of the civil penalties in the event of an appeal. The court also declared that Das and Dean each acted in bad faith towards the shareholders of infoUSA, Inc. and that the defendants each knew their actions were contrary to the interests of the company and its shareholders.

On March 2, 2012, after approximately two hours of deliberations, an Omaha jury found Das and Dean each liable on all claims. At trial, the Commission argued former chief executive officer Vinod Gupta used company funds to pay for his personal expenses including private jet flights, yacht expenses, private club memberships, credit card expenses, and expenses associated with his homes and cars. The Commission argued that Das and Dean each authorized the company to pay for Gupta's personal expenses and that they signed and certified Info's false public filings which underreported Gupta's executive compensation and related party transactions. In its Memorandum and Order on remedies, the court stated that "[t]he testimony and other evidence at trial clearly supported the jury's verdicts" and "[t]he wrongdoing giving rise to this action was not an isolated incident, but a continuing and systematic misuse of corporate funds and failure to abide by SEC reporting requirements for executive compensation and related party transactions. Das and Dean continue to deny wrongdoing, despite clear and compelling evidence of their misconduct." The case was prosecuted by Thomas Krysa, Gregory Kasper, and Nicholas Heinke of the Commission's Denver Regional Office.

CONGRESSMAN RON PAUL EXPRESSES CONCERN OVER U.S. REACTION TO SYRIA

FROM:  THE CONGRESSMAN RON PAUL WEBSITE
War Drums for Syria?
War drums are beating again in Washington. This time Syria is in the crosshairs after a massacre there last week left more than 100 dead. As might be expected from an administration with an announced policy of "regime change" in Syria, the reaction was to blame only the Syrian government for the tragedy, expel Syrian diplomats from Washington, and announce that the US may attack Syria even without UN approval. Of course, the idea that the administration should follow the Constitution and seek a Declaration of War from Congress is considered even more anachronistic now than under the previous administration.

It may be the case that the Syrian military was responsible for the events last week, but recent bombings and attacks have been carried out by armed rebels with reported al-Qaeda ties. With the stakes so high, it would make sense to wait for a full investigation -- unless the truth is less important than stirring up emotions in favor of a US attack.

There is ample reason to be skeptical about US government claims amplified in mainstream media reports. How many times recently have lies and exaggerations been used to push for the use of force overseas? It was not long ago that we were told Gaddafi was planning genocide for the people of Libya, and the only way to stop it was a US attack. Those claims turned out to be false, but by then the US and NATO had already bombed Libya, destroying its infrastructure, killing untold numbers of civilians, and leaving a gang of violent thugs in charge.

Likewise, we were told numerous falsehoods to increase popular support for the 2003 war on Iraq, including salacious stories of trans-Atlantic drones and WMDs. Advocates of war did not understand the complexities of Iraqi society, including its tribal and religious differences. As a result, Iraq today is a chaotic mess, with its ancient Christian population eliminated and the economy set back decades. An unnecessary war brought about by lies and manipulation never ends well.

Earlier still, we were told lies about genocide and massacres in Kosovo to pave the way for President Clinton's bombing campaign against Yugoslavia. More than 12 years later, that region is every bit as unstable and dangerous as before the US intervention – and American troops are still there.

The story about the Syrian massacre keeps changing, which should raise suspicions. First, we were told that the killings were caused by government shelling, but then it was discovered that most were killed at close range with handgun fire and knives. No one has explained why government forces would take the time to go house to house binding the hands of the victims before shooting them, and then retreat to allow the rebels in to record the gruesome details. No one wants to ask or answer the disturbing questions, but it would be wise to ask ourselves who benefits from these stories.

We have seen media reports over the past several weeks that the Obama administration is providing direct "non-lethal" assistance to the rebels in Syria while facilitating the transfer of weapons from other Gulf States. This semi-covert assistance to rebels we don't know much about threatens to become overt intervention. Last week Gen. Martin Dempsey, Chairman of the Joint Chiefs of Staff, said about Syria, "I think the military option should be considered." And here all along I thought it was up to Congress to decide when we go to war, not the generals.

We are on a fast track to war against Syria. It is time to put on the brakes.