FROM: U.S. DEFENSE DEPARTMENT
Fisher House Steps Forward to Aid DOD in Paying Death Benefits
By Jim Garamone
American Forces Press Service
WASHINGTON, Oct. 9, 2013 - The Fisher House Foundation has stepped in to aid the Defense Department so families of fallen service members can receive the full set of benefits they have been promised, Defense Secretary Chuck Hagel said here today.
The Fisher House Foundation and DOD entered an agreement that includes the $100,000 death gratuity payment.
"I am offended, outraged, and embarrassed that the government shutdown had prevented the Department of Defense from fulfilling this most sacred responsibility in a timely manner," Hagel said in a written statement.
In the weeks before the shutdown, defense officials had warned Congress that the ability to pay death benefits to grieving families would run out when the appropriations lapsed.
"The Department of Defense informed Congress that the department would be legally unable to pay death benefits were there to be a lapse in DOD appropriations," White House press secretary Jay Carney said during his daily briefing today.
The issue was not explicitly addressed as part of the Pay Our Military Act. "The president was very disturbed to learn of this problem, and he directed the Department of Defense to work with the Office of Management and Budget and his lawyers to develop a possible solution and he expects this ... to be fixed today," Carney said.
Since the shutdown began Oct. 1, DOD budget officials looked at options to continue these benefits, Hagel said. "Even under the Pay Our Military Act, we found that we lacked the necessary authority to make payments to the families directly," the secretary said.
The Fisher House Foundation offered to make payments to these families from its own funds, and OMB officials determined DOD can enter into a contract with the Fisher House Foundation to provide these benefits.
"The Fisher House Foundation will provide the families of the fallen with the benefits they so richly deserve," Hagel said. "After the shutdown ends, DOD will reimburse the Fisher House for the costs it has incurred."
The Fisher House Foundation is best known for the houses built on the grounds of major military and VA medical centers nationwide and in Europe. Families of wounded or hospitalized service members stay at the houses as their loved ones undergo hospitalization for a combat injury, illness or disease.
A total of 26 service members have died since Oct. 1, including five killed in combat in Afghanistan. The $100,000 death gratuity comes from appropriated funds, and DOD could not obligate funds once the fiscal year 2013 appropriation ran out. The department also cannot pay the benefit that provides 12 months of basic allowance for housing, as that money also comes via appropriated funds.
"The department has no higher priority than taking care of our service members and their families," Hagel said. "Congress has responsibilities as well, and it has abdicated them.
"Along with the rest of the department's leaders," he continued, "I will continue to work every day to address the very real impact that the government shutdown is having on our people, and I once again call on Congress to fulfill its basic responsibilities and restore funding for the federal government."
Wednesday, October 9, 2013
MAN ADMITS TO CONSPIRING WITH ORGANIZED CRIME FAMILY
FROM: U.S. JUSTICE DEPARTMENT CONSPIRACY
Monday, September 30, 2013
Pennsylvania Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud Scheme
A Pennsylvania man today admitted he conspired to defraud FIRSTPLUS Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey made the announcement.
Cory Leshner, 30, pleaded guilty before U.S. District Judge Robert B. Kugler in a federal court in Camden, N.J., to a superseding information charging him with conspiracy to commit wire fraud. He faces a maximum of five years in prison when he is sentenced on Jan. 17, 2014.
According to documents filed in this case and statements made in court, Leshner and 12 others – including Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy that included acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.
Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies as part of the scheme to defraud FPFG. Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money involved proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
According to his court statements, Leshner was a law student during the scheme. Leshner graduated from law school in 2009 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.
Scarfo, Pelullo, and five other defendants charged in November 2011 – including attorneys William Maxwell, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
This case was investigated by the FBI; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the U.S. Securities and Exchange Commission. The case is being prosecuted by Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Monday, September 30, 2013
Pennsylvania Man Admits Conspiring with Alleged Members of Organized Crime Family and Others in Fraud Scheme
A Pennsylvania man today admitted he conspired to defraud FIRSTPLUS Financial Group Inc. (FPFG), a Texas-based financial services company allegedly targeted for extortionate takeover and looting by a group led by alleged Lucchese organized crime family member Nicodemo S. Scarfo.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey made the announcement.
Cory Leshner, 30, pleaded guilty before U.S. District Judge Robert B. Kugler in a federal court in Camden, N.J., to a superseding information charging him with conspiracy to commit wire fraud. He faces a maximum of five years in prison when he is sentenced on Jan. 17, 2014.
According to documents filed in this case and statements made in court, Leshner and 12 others – including Scarfo, an alleged member of the Lucchese La Cosa Nostra (LCN) crime family, and Salvatore Pelullo, an alleged associate of the Lucchese and Philadelphia LCN families – were variously charged in a November 2011 indictment with a racketeering conspiracy that included acts of securities fraud, wire fraud, mail fraud, bank fraud, extortion, interstate travel in aid of racketeering, money laundering and obstruction of justice. The indictment charged that FPFG was targeted for extortionate takeover and looting by a group of the conspirators. A substantial part of the enterprise’s activities occurred in New Jersey, including communications and the transfer of money into and out of the state. Cory Leshner admitted that he joined the conspiracy in April 2007.
Leshner admitted that he assisted Scarfo and Pelullo in managing family trusts and limited liability companies as part of the scheme to defraud FPFG. Pelullo directed Leshner in the use of various bank accounts through which Pelullo received hundreds of thousands of dollars between July 2007 and April 2008 as part of the scheme. The money involved proceeds of the fraud that Pelullo allegedly received as part of a fraudulent “consulting” agreement between his shell company, Seven Hills Management, and codefendant William Maxwell, a Texas attorney who served as “special counsel” to FPFG as part of the scheme. The money also involved proceeds received from the fraudulent sale of Scarfo and Pelullo’s worthless companies to FPFG in 2007. The receipt of the fraudulent proceeds often occurred in the form of wire transfers from accounts in Pennsylvania to accounts in New Jersey.
According to his court statements, Leshner was a law student during the scheme. Leshner graduated from law school in 2009 and became an attorney in Pennsylvania in 2011. As part of his plea agreement, Leshner agreed to notify the Pennsylvania Supreme Court of his guilty plea and to accept any disciplinary action brought by disciplinary officials as a result of the guilty plea and sentence. Leshner also agreed to not seek the reinstatement of his license to practice law while serving any sentence of imprisonment imposed in the case.
Scarfo, Pelullo, and five other defendants charged in November 2011 – including attorneys William Maxwell, David Adler, Gary McCarthy, and Donald Manno, as well as John Maxwell – are scheduled for trial beginning Oct. 28, 2013. Todd Stark, also charged in the indictment, previously pleaded guilty to providing ammunition to Scarfo and Pelullo, convicted felons.
This case was investigated by the FBI; the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the U.S. Securities and Exchange Commission. The case is being prosecuted by Trial Attorney Adam Small of the Organized Crime and Gang Section of the Justice Department’s Criminal Division and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office Organized Crime/Gangs Unit and Criminal Division in Camden.
With respect to the defendants awaiting trial, the charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
UPDATE ON GOVERNMENT SHUTDOWN FROM SERVICE LEADERS
FROM: U.S. DEFENSE DEPARTMENT
Hagel Receives Update on Shutdown From Service Leaders
American Forces Press Service
WASHINGTON, Oct. 8, 2013 - The Defense Department's top leadership, including the service secretaries and service chiefs, updated Defense Secretary Chuck Hagel yesterday on the impact of the ongoing government shutdown, Pentagon officials reported.
In a statement summarizing the meeting, officials said Hagel is pleased that most DOD civilians are returning to work this week, and that he thanked the service leadership for quickly implementing the guidance issued over the weekend regarding furloughs.
All of the leaders noted that despite the recall of most civilians and the resumption of many activities, critical programs and benefits remain halted, officials said. For example, they noted, the department does not have the authority to pay death gratuities for the survivors of service members killed in action -- typically, a cash payment of $100,000 paid within three days of the service member's death.
In addition, officials said, emergency funding that supports commanders on the ground and intelligence activities remains unavailable, and service leaders reported that they are further curtailing training for later deploying units -- an activity that already had been reduced due to sequestration spending cuts.
Hagel assured the service leaders that he would work closely with them to address these challenges, and support the service members and families affected by these disruptions, officials said. He expressed his continued concern for the morale and welfare of DOD's civilian employees, who have endured unprecedented uncertainty this year and suffered losses in pay, they added.
The secretary will continue to receive regular updates and review authorities to expend funds during this lapse in appropriations, the statement said.
Hagel Receives Update on Shutdown From Service Leaders
American Forces Press Service
WASHINGTON, Oct. 8, 2013 - The Defense Department's top leadership, including the service secretaries and service chiefs, updated Defense Secretary Chuck Hagel yesterday on the impact of the ongoing government shutdown, Pentagon officials reported.
In a statement summarizing the meeting, officials said Hagel is pleased that most DOD civilians are returning to work this week, and that he thanked the service leadership for quickly implementing the guidance issued over the weekend regarding furloughs.
All of the leaders noted that despite the recall of most civilians and the resumption of many activities, critical programs and benefits remain halted, officials said. For example, they noted, the department does not have the authority to pay death gratuities for the survivors of service members killed in action -- typically, a cash payment of $100,000 paid within three days of the service member's death.
In addition, officials said, emergency funding that supports commanders on the ground and intelligence activities remains unavailable, and service leaders reported that they are further curtailing training for later deploying units -- an activity that already had been reduced due to sequestration spending cuts.
Hagel assured the service leaders that he would work closely with them to address these challenges, and support the service members and families affected by these disruptions, officials said. He expressed his continued concern for the morale and welfare of DOD's civilian employees, who have endured unprecedented uncertainty this year and suffered losses in pay, they added.
The secretary will continue to receive regular updates and review authorities to expend funds during this lapse in appropriations, the statement said.
READOUT: SECRETARY OF DEFENCE HAGEL'S MEETING WITH ISRAELI DEFENSE MINISTER MOSHE YA'ALON
FROM: U.S. DEFENSE DEPARTMENT
Readout of Secretary Hagel's Meeting with Minister of Defense Moshe Ya'alon
Secretary Hagel met with Israeli Minister of Defense Moshe Ya'alon earlier today at the Pentagon for their third face to face meeting in the past six months. Both leaders expressed appreciation for the opportunity to frequently share views on the range of regional security challenges the United States and Israel are facing together.
On Iran, Secretary Hagel noted that while the United States intends to test the prospect for a diplomatic solution with Iran we remain clear eyed about the challenges ahead and will not waver from our firm policy to prevent Iran from obtaining nuclear weapons.
Secretary Hagel applauded the announcement by the Organization for the Prohibition of Chemical Weapons that the destruction of chemical weapons in Syria has started. While much works remains to be done, this recent progress is a step in the right direction to eliminating this threat.
The leaders also discussed progress on the United States effort to increase Israel's qualitative military edge with advanced capabilities that Secretary Hagel announced on his visit to Israel earlier this year.
Both Secretary Hagel and Minister Ya'alon thanked one another for continued unprecedented levels of security cooperation between the United States and Israel and pledged to remain in close touch.
Readout of Secretary Hagel's Meeting with Minister of Defense Moshe Ya'alon
Secretary Hagel met with Israeli Minister of Defense Moshe Ya'alon earlier today at the Pentagon for their third face to face meeting in the past six months. Both leaders expressed appreciation for the opportunity to frequently share views on the range of regional security challenges the United States and Israel are facing together.
On Iran, Secretary Hagel noted that while the United States intends to test the prospect for a diplomatic solution with Iran we remain clear eyed about the challenges ahead and will not waver from our firm policy to prevent Iran from obtaining nuclear weapons.
Secretary Hagel applauded the announcement by the Organization for the Prohibition of Chemical Weapons that the destruction of chemical weapons in Syria has started. While much works remains to be done, this recent progress is a step in the right direction to eliminating this threat.
The leaders also discussed progress on the United States effort to increase Israel's qualitative military edge with advanced capabilities that Secretary Hagel announced on his visit to Israel earlier this year.
Both Secretary Hagel and Minister Ya'alon thanked one another for continued unprecedented levels of security cooperation between the United States and Israel and pledged to remain in close touch.
PENTAGON SAYS U.S. CONTINUES TO CONFRONT TERRORISM
FROM: U.S. DEFENSE DEPARTMENT
Press Secretary: U.S. Will Continue Confronting Terrorist Threat
American Forces Press Service
WASHINGTON, Oct. 7, 2013 - The U.S. military can put pressure on the al-Shabaab terrorist organization's leadership whenever it so chooses, Pentagon Press Secretary George Little said today.
In a statement, Little said U.S. military personnel conducted a targeted operation the night of Oct. 4 against Abdikadir Mohamed Abdikadir, known as "Ikrima," a Kenyan of Somali origin.
Ikrima is a top commander in the terrorist group al-Shabaab, an al-Qaida affiliate, the press secretary said. He is closely associated with now-deceased al-Qaida operatives Harun Fazul and Saleh Nabhan, who played roles in the 1998 bombing of the U.S. Embassy in Nairobi, Kenya, he added, and in the 2002 attacks on a hotel and airline in Mombassa, Kenya, that resulted in the deaths of Kenyan and Israeli citizens, including children.
The goal of the operation was to capture Ikrima under legal authorities granted to the Defense Department by the 2001 authorization to use military force against al-Qaida and its associated forces, Little said.
"While the operation did not result in Ikrima's capture," he added, "U.S. military personnel conducted the operation with unparalleled precision and demonstrated that the United States can put direct pressure on al-Shabaab leadership at any time of our choosing."
Working in partnership with Somalia's government, the press secretary said, the U.S. military will continue to confront the threat posed by al-Shabaab.
"The United States military has unmatched capabilities and could rely on any of them to disrupt terrorist networks and plots," he added.
Press Secretary: U.S. Will Continue Confronting Terrorist Threat
American Forces Press Service
WASHINGTON, Oct. 7, 2013 - The U.S. military can put pressure on the al-Shabaab terrorist organization's leadership whenever it so chooses, Pentagon Press Secretary George Little said today.
In a statement, Little said U.S. military personnel conducted a targeted operation the night of Oct. 4 against Abdikadir Mohamed Abdikadir, known as "Ikrima," a Kenyan of Somali origin.
Ikrima is a top commander in the terrorist group al-Shabaab, an al-Qaida affiliate, the press secretary said. He is closely associated with now-deceased al-Qaida operatives Harun Fazul and Saleh Nabhan, who played roles in the 1998 bombing of the U.S. Embassy in Nairobi, Kenya, he added, and in the 2002 attacks on a hotel and airline in Mombassa, Kenya, that resulted in the deaths of Kenyan and Israeli citizens, including children.
The goal of the operation was to capture Ikrima under legal authorities granted to the Defense Department by the 2001 authorization to use military force against al-Qaida and its associated forces, Little said.
"While the operation did not result in Ikrima's capture," he added, "U.S. military personnel conducted the operation with unparalleled precision and demonstrated that the United States can put direct pressure on al-Shabaab leadership at any time of our choosing."
Working in partnership with Somalia's government, the press secretary said, the U.S. military will continue to confront the threat posed by al-Shabaab.
"The United States military has unmatched capabilities and could rely on any of them to disrupt terrorist networks and plots," he added.
Tuesday, October 8, 2013
SECRETARY OF STATE KERRY'S MEETING WITH MISSION STAFF IN INDONESIA
FROM: U.S. STATE DEPARTMENT
Secretary Kerry Meets With Mission Indonesia Staff
Remarks
John Kerry
Secretary of State
Grand Hyatt Bali
Bali, Indonesia
October 8, 2013
SECRETARY KERRY: Hello.
MS. BAUER: Welcome.
SECRETARY KERRY: Hi, Kristen. How are you? Nice to see you.
MS. BAUER: Hi, I’m well. Well, let me welcome everyone.
SECRETARY KERRY: Like an interview here. “How are you?” “I’m fine.” Right. (Laughter.)
MS. BAUER: As many of you know, I’m from Boston, Massachusetts, so it gives me special pleasure to introduce to you the man who represented my state for 28 years in the U.S. Senate. He’s of course our Secretary of State and has led us through this very successful APEC. Please join me in welcoming Secretary Kerry.
SECRETARY KERRY: Thank you, Kristen. Thank you very, very much. (Applause.) I’m too far away here. I don’t want to come – I can’t even see you with these bright lights. Am I screwing up? Is this all right? It’s okay, you can do that? Now I feel closer, and this is like I’m talking to people. How are you?
AUDIENCE: Good.
SECRETARY KERRY: That’s fantastic. Isn’t it great that she’s from Boston, Massachusetts? (Laughter.) Yeah, I know. That’s not loud enough – yes, it’s great! I want to hear. (Cheers.) Anyway, I want you to know – she doesn’t know this, but she had the job that my father had at the Embassy in Oslo, Norway.
MS. BAUER: Oh, no, I didn’t know that.
SECRETARY KERRY: See? She was the political counselor there, political and economic affairs. And years ago, when I was in my teens, my dad was stationed as a Foreign Service Officer in Norway for a while, which we loved, and I’m sure you did too. Wasn’t it great? Yeah, it was fabulous.
Anyway, I am really happy to be here. And this also deserves applause - she just got promoted to Minister-Counselor, so that’s fabulous. (Applause.) Really excellent. And she’s doing a fabulous job as our charge, and shortly, Ambassador Bob Blake will be here as we get Washington doing what Washington is supposed to do, which is send people out to work and pay them, right, when they do it. It’s not a bad idea. By the way, did you all order your turkeys, those of you who – (laughter) – I know this is – you got your order in, didn’t you? I'm sorry, but I know you've been here working really hard. Thank you.
I guess it’s hard coming to Bali. Was it? (Laughter.) Whoa. Who’s laughing about that one? I know what goes into this. It’s really a tremendous amount of work, a conference like this. Thank you for making it really easy. Everything just worked so well. This is really one of the best international meetings I’ve been to, and I heard a lot of the other leaders saying how organized they thought it was and how effective. So we’re really grateful to all of you. Thank you very, very much, Embassy Jakarta, for doing so much for us here.
And thank you for – I know it was really hard when you were chosen to come to Bali for a few days, and you groaned and said, “I don’t want to,” right? No. You’re all happy, and I know it’s great. Did you get any time off? Anybody get to the beach? None at all? (Laughter.) We worked – all right.
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: I beg your pardon.
PARTICIPANT: To breathe for a little bit.
SECRETARY KERRY: To breathe only a little bit. Well, thank you very, very much. I mean that. This is a special place. It’s pretty incredible to come out here. As I said the other day when I gave a speech that I worked very hard in 2004 to replace a president of the United States, but this is not what I had in mind coming here. (Laughter.) And I know President Obama very, very much regrets not being able to be here, but for all the obvious reasons, he’s back home and focused on the debt crisis and on the question of the government shutdown as he ought to be.
And I apologize to all of you. I am sorry for all the disruption, I’m sorry for the questions that it raises and that you have to answer about what’s going on in our government and at home, and I am particularly sorry that many of you are facing difficulties in terms of pay and what is going to happen over these next months and big question marks. So my apologies to you for what is not being decided and what is not happening that should be.
Obviously it was on the minds of many of the leaders that I met with and talked to, but I am convinced and I do believe that when we get beyond this, the presence of the United States in this region will be as strong as ever, that we will continue to do the rebalance to Asia. We are focused on this; we worked at length today on the TPP. We had a very strong meeting with very good results, and I promise all of you that your hard work and your devotion and commitment to this effort will pay off in the long run. So thank you very, very much for what you’re doing.
On another level, it is amazing to be in a country where so many young kids run around wearing a t-shirt with the President of the United States on it. It’s pretty amazing, and to have a president who can speak some local dialect and who has the kind of connection that he has here, you can just feel it in my conversations with the President that there’s a pride, and there’s a real sense of connection to the United States of America. And our relationship with Indonesia today because of the work that all of you do, because of the relationship with the President, because of the work that Indonesia has done with the United States in terms of environment, economy, our relationship, our security interests, military-to-military, all of these things are working really, frankly, better than they ever have. I’d say the relationship with Indonesia is as strong as it’s ever been and growing stronger.
So I thank every single one of you for being here. I think we have about 276 Americans assigned to the Embassy in Jakarta and about 1,400 or so local staff. All the local staff, raise your hands, please, those of you who are local. Thank you profoundly from all of us. (Applause.) We’re very, very grateful to you. Thank you very, very much.
So I want you to continue to be the optimists that brought you to this kind of mission in the first place. You’re all people who believe in making a difference. You believe in helping countries to come together, people to come together, bridge the gaps, create stability, build a future for all of us not just as Americans, but as global citizens, and I thank you very, very much for caring about that and being part of this great adventure. I look forward to saying hello to all of you now personally. Thank you very, very much. Look forward to it. (Applause.)
Secretary Kerry Meets With Mission Indonesia Staff
Remarks
John Kerry
Secretary of State
Grand Hyatt Bali
Bali, Indonesia
October 8, 2013
SECRETARY KERRY: Hello.
MS. BAUER: Welcome.
SECRETARY KERRY: Hi, Kristen. How are you? Nice to see you.
MS. BAUER: Hi, I’m well. Well, let me welcome everyone.
SECRETARY KERRY: Like an interview here. “How are you?” “I’m fine.” Right. (Laughter.)
MS. BAUER: As many of you know, I’m from Boston, Massachusetts, so it gives me special pleasure to introduce to you the man who represented my state for 28 years in the U.S. Senate. He’s of course our Secretary of State and has led us through this very successful APEC. Please join me in welcoming Secretary Kerry.
SECRETARY KERRY: Thank you, Kristen. Thank you very, very much. (Applause.) I’m too far away here. I don’t want to come – I can’t even see you with these bright lights. Am I screwing up? Is this all right? It’s okay, you can do that? Now I feel closer, and this is like I’m talking to people. How are you?
AUDIENCE: Good.
SECRETARY KERRY: That’s fantastic. Isn’t it great that she’s from Boston, Massachusetts? (Laughter.) Yeah, I know. That’s not loud enough – yes, it’s great! I want to hear. (Cheers.) Anyway, I want you to know – she doesn’t know this, but she had the job that my father had at the Embassy in Oslo, Norway.
MS. BAUER: Oh, no, I didn’t know that.
SECRETARY KERRY: See? She was the political counselor there, political and economic affairs. And years ago, when I was in my teens, my dad was stationed as a Foreign Service Officer in Norway for a while, which we loved, and I’m sure you did too. Wasn’t it great? Yeah, it was fabulous.
Anyway, I am really happy to be here. And this also deserves applause - she just got promoted to Minister-Counselor, so that’s fabulous. (Applause.) Really excellent. And she’s doing a fabulous job as our charge, and shortly, Ambassador Bob Blake will be here as we get Washington doing what Washington is supposed to do, which is send people out to work and pay them, right, when they do it. It’s not a bad idea. By the way, did you all order your turkeys, those of you who – (laughter) – I know this is – you got your order in, didn’t you? I'm sorry, but I know you've been here working really hard. Thank you.
I guess it’s hard coming to Bali. Was it? (Laughter.) Whoa. Who’s laughing about that one? I know what goes into this. It’s really a tremendous amount of work, a conference like this. Thank you for making it really easy. Everything just worked so well. This is really one of the best international meetings I’ve been to, and I heard a lot of the other leaders saying how organized they thought it was and how effective. So we’re really grateful to all of you. Thank you very, very much, Embassy Jakarta, for doing so much for us here.
And thank you for – I know it was really hard when you were chosen to come to Bali for a few days, and you groaned and said, “I don’t want to,” right? No. You’re all happy, and I know it’s great. Did you get any time off? Anybody get to the beach? None at all? (Laughter.) We worked – all right.
PARTICIPANT: (Off-mike.)
SECRETARY KERRY: I beg your pardon.
PARTICIPANT: To breathe for a little bit.
SECRETARY KERRY: To breathe only a little bit. Well, thank you very, very much. I mean that. This is a special place. It’s pretty incredible to come out here. As I said the other day when I gave a speech that I worked very hard in 2004 to replace a president of the United States, but this is not what I had in mind coming here. (Laughter.) And I know President Obama very, very much regrets not being able to be here, but for all the obvious reasons, he’s back home and focused on the debt crisis and on the question of the government shutdown as he ought to be.
And I apologize to all of you. I am sorry for all the disruption, I’m sorry for the questions that it raises and that you have to answer about what’s going on in our government and at home, and I am particularly sorry that many of you are facing difficulties in terms of pay and what is going to happen over these next months and big question marks. So my apologies to you for what is not being decided and what is not happening that should be.
Obviously it was on the minds of many of the leaders that I met with and talked to, but I am convinced and I do believe that when we get beyond this, the presence of the United States in this region will be as strong as ever, that we will continue to do the rebalance to Asia. We are focused on this; we worked at length today on the TPP. We had a very strong meeting with very good results, and I promise all of you that your hard work and your devotion and commitment to this effort will pay off in the long run. So thank you very, very much for what you’re doing.
On another level, it is amazing to be in a country where so many young kids run around wearing a t-shirt with the President of the United States on it. It’s pretty amazing, and to have a president who can speak some local dialect and who has the kind of connection that he has here, you can just feel it in my conversations with the President that there’s a pride, and there’s a real sense of connection to the United States of America. And our relationship with Indonesia today because of the work that all of you do, because of the relationship with the President, because of the work that Indonesia has done with the United States in terms of environment, economy, our relationship, our security interests, military-to-military, all of these things are working really, frankly, better than they ever have. I’d say the relationship with Indonesia is as strong as it’s ever been and growing stronger.
So I thank every single one of you for being here. I think we have about 276 Americans assigned to the Embassy in Jakarta and about 1,400 or so local staff. All the local staff, raise your hands, please, those of you who are local. Thank you profoundly from all of us. (Applause.) We’re very, very grateful to you. Thank you very, very much.
So I want you to continue to be the optimists that brought you to this kind of mission in the first place. You’re all people who believe in making a difference. You believe in helping countries to come together, people to come together, bridge the gaps, create stability, build a future for all of us not just as Americans, but as global citizens, and I thank you very, very much for caring about that and being part of this great adventure. I look forward to saying hello to all of you now personally. Thank you very, very much. Look forward to it. (Applause.)
TRANS-PACIFIC PARTNERSHIP AGREEMENT
FROM: THE WHITE HOUSE
Trans-Pacific Partnership Leaders Statement
We, the Leaders of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam, are pleased to announce today that our countries are on track to complete the Trans-Pacific Partnership negotiations. Ministers and negotiators have made significant progress in recent months on all the legal texts and annexes on access to our respective goods, services, investment, financial services, government procurement, and temporary entry markets. We have agreed that negotiators should now proceed to resolve all outstanding issues with the objective of completing this year a comprehensive and balanced, regional agreement that achieves the goals we established in Honolulu in 2011, ensures the benefits of the agreement are fully shared, and takes into account the diversity of our levels of development.
A final Trans-Pacific Partnership agreement must reflect our common vision to establish a comprehensive, next-generation model for addressing both new and traditional trade and investment issues, supporting the creation and retention of jobs and promoting economic development in our countries. The deepest and broadest possible liberalization of trade and investment will ensure the greatest benefits for countries’ large and small manufacturers, service providers, farmers, and ranchers, as well as workers, innovators, investors, and consumers.
We see the Trans-Pacific Partnership, with its high ambition and pioneering standards for new trade disciplines, as a model for future trade agreements and a promising pathway to our APEC goal of building a Free Trade Area of the Asia Pacific. We are encouraged by the growing interest in this important negotiation and are engaging with other Asia-Pacific countries that express interest in the TPP regarding their possible future participation.
Stakeholders across the region have provided valuable input to TPP negotiating teams both on-site at rounds and in our respective countries. As we work to conclude these negotiations, we will further intensify consultations with stakeholders to craft a final agreement that appropriately addresses the interests of our citizens. We look forward to review and consideration of the outcome of our work, consistent with each of our domestic processes.
Trans-Pacific Partnership Leaders Statement
We, the Leaders of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam, are pleased to announce today that our countries are on track to complete the Trans-Pacific Partnership negotiations. Ministers and negotiators have made significant progress in recent months on all the legal texts and annexes on access to our respective goods, services, investment, financial services, government procurement, and temporary entry markets. We have agreed that negotiators should now proceed to resolve all outstanding issues with the objective of completing this year a comprehensive and balanced, regional agreement that achieves the goals we established in Honolulu in 2011, ensures the benefits of the agreement are fully shared, and takes into account the diversity of our levels of development.
A final Trans-Pacific Partnership agreement must reflect our common vision to establish a comprehensive, next-generation model for addressing both new and traditional trade and investment issues, supporting the creation and retention of jobs and promoting economic development in our countries. The deepest and broadest possible liberalization of trade and investment will ensure the greatest benefits for countries’ large and small manufacturers, service providers, farmers, and ranchers, as well as workers, innovators, investors, and consumers.
We see the Trans-Pacific Partnership, with its high ambition and pioneering standards for new trade disciplines, as a model for future trade agreements and a promising pathway to our APEC goal of building a Free Trade Area of the Asia Pacific. We are encouraged by the growing interest in this important negotiation and are engaging with other Asia-Pacific countries that express interest in the TPP regarding their possible future participation.
Stakeholders across the region have provided valuable input to TPP negotiating teams both on-site at rounds and in our respective countries. As we work to conclude these negotiations, we will further intensify consultations with stakeholders to craft a final agreement that appropriately addresses the interests of our citizens. We look forward to review and consideration of the outcome of our work, consistent with each of our domestic processes.
READOUT: PRESIDENT OBAMA'S CALL TO HOUSE SPEAKER BOEHNER
FROM: THE WHITE HOUSE
Readout of the President’s Call to House Speaker John Boehner
Late this morning, the President telephoned Speaker John Boehner from the Oval Office and repeated what he told him when they met at the White House last week: the President is willing to negotiate with Republicans -- after the threat of government shutdown and default have been removed – over policies that Republicans think would strengthen the country. The President also repeated his willingness to negotiate on priorities that he has identified including policies that expand economic opportunity, support private sector job creation, enhance the competitiveness of American businesses, strengthen the Affordable Care Act and continue to reduce the nation’s deficit.
The President urged the Speaker to hold a vote in the House of Representatives on the Senate-passed measure that would re-open the federal government immediately. Citing the Senate’s intention to pass a clean, yearlong extension of the debt limit this week, the President also pressed the Speaker to allow a timely up-or-down vote in the House to raise the debt limit with no ideological strings attached. He noted that only Congress has the authority to raise the debt limit and failure to do so would have grave consequences for middle class families and the American economy as a whole.
Readout of the President’s Call to House Speaker John Boehner
Late this morning, the President telephoned Speaker John Boehner from the Oval Office and repeated what he told him when they met at the White House last week: the President is willing to negotiate with Republicans -- after the threat of government shutdown and default have been removed – over policies that Republicans think would strengthen the country. The President also repeated his willingness to negotiate on priorities that he has identified including policies that expand economic opportunity, support private sector job creation, enhance the competitiveness of American businesses, strengthen the Affordable Care Act and continue to reduce the nation’s deficit.
The President urged the Speaker to hold a vote in the House of Representatives on the Senate-passed measure that would re-open the federal government immediately. Citing the Senate’s intention to pass a clean, yearlong extension of the debt limit this week, the President also pressed the Speaker to allow a timely up-or-down vote in the House to raise the debt limit with no ideological strings attached. He noted that only Congress has the authority to raise the debt limit and failure to do so would have grave consequences for middle class families and the American economy as a whole.
CENTCOM COMMANDER UNDERSCORES NATIONS COMMITMENT TO TROOPS AND THEIR FAMILIES
FROM: U.S. DEFENSE DEPARTMENT
Centcom Chief Says U.S. Must Keep Faith With Troops, Families
By Donna Miles
American Forces Press Service
WASHINGTON, Oct. 7, 2013 - As more than a decade of conflict winds down in the U.S. Central Command area of operations, Centcom's commander paid tribute to the men and women who have sacrificed there and underscored the nation's commitment to them.
"At the end of the day, our most important assets are our people," Army Gen. Lloyd J. Austin III told American Forces Press Service in an interview conducted via email.
These are far more than platitudes from Austin, a U.S. Military Academy graduate and experienced combat leader. He gave the orders for the 3rd Infantry Division's lead elements to cross the border into Iraq to launch Operation Iraqi Freedom in 2003, and returned in 2009 to command Multinational Force Iraq. During Austin's third deployment to Iraq, in 2010 as commander of U.S. Forces Iraq, he oversaw the drawdown and transition, ultimately casing the colors that officially closed the campaign in December 2011.
Austin also commanded Combined Joint Task Force 180 in Afghanistan from 2003 to 2005, and served as Centcom's chief of staff from 2005 to 2006 before returning to the command's Tampa, Fla., headquarters as commander earlier this year.
"We absolutely could not have accomplished all that we have in Iraq and Afghanistan over the past 12-plus years were it not for the selfless service and sacrifices made by the outstanding men and women serving in our ranks," Austin said. He also noted the staunch support from families and loved ones that sustained the troops through long, challenging deployments.
Now, as U.S. forces return from combat and rejoin their families and communities, Austin said, the nation must live up to its obligation to stand by them.
"We owe it to them to make sure they are cared for properly, and that includes those individuals suffering from the wounds, injuries and illnesses incurred as a result of their service," he said. "In particular, we are focused on treating those suffering from what are often referred to as the 'invisible wounds' of war, namely post-traumatic stress and traumatic brain injury."
Meanwhile, Centcom has joined the rest of the Defense Department in working to reduce the incidence of sexual assault, sexual harassment and suicide within the ranks, he noted. All are top priorities of Defense Secretary Chuck Hagel, who has called on the entire department to eliminate these "debilitating and insidious threats" to the force.
"The fact is, the actions we take now will ultimately determine the readiness of our military for the next decade and beyond," Austin said. "We must do all that we can to keep faith with our troops and civilians and their families, recognizing that we still have a great deal of work to do in the coming days."
Austin said he worries that as U.S. forces return home from Afghanistan, the American people "will grow weary of supporting the military."
"We must all work together to make sure this does not happen," he said.
Centcom Chief Says U.S. Must Keep Faith With Troops, Families
By Donna Miles
American Forces Press Service
WASHINGTON, Oct. 7, 2013 - As more than a decade of conflict winds down in the U.S. Central Command area of operations, Centcom's commander paid tribute to the men and women who have sacrificed there and underscored the nation's commitment to them.
"At the end of the day, our most important assets are our people," Army Gen. Lloyd J. Austin III told American Forces Press Service in an interview conducted via email.
These are far more than platitudes from Austin, a U.S. Military Academy graduate and experienced combat leader. He gave the orders for the 3rd Infantry Division's lead elements to cross the border into Iraq to launch Operation Iraqi Freedom in 2003, and returned in 2009 to command Multinational Force Iraq. During Austin's third deployment to Iraq, in 2010 as commander of U.S. Forces Iraq, he oversaw the drawdown and transition, ultimately casing the colors that officially closed the campaign in December 2011.
Austin also commanded Combined Joint Task Force 180 in Afghanistan from 2003 to 2005, and served as Centcom's chief of staff from 2005 to 2006 before returning to the command's Tampa, Fla., headquarters as commander earlier this year.
"We absolutely could not have accomplished all that we have in Iraq and Afghanistan over the past 12-plus years were it not for the selfless service and sacrifices made by the outstanding men and women serving in our ranks," Austin said. He also noted the staunch support from families and loved ones that sustained the troops through long, challenging deployments.
Now, as U.S. forces return from combat and rejoin their families and communities, Austin said, the nation must live up to its obligation to stand by them.
"We owe it to them to make sure they are cared for properly, and that includes those individuals suffering from the wounds, injuries and illnesses incurred as a result of their service," he said. "In particular, we are focused on treating those suffering from what are often referred to as the 'invisible wounds' of war, namely post-traumatic stress and traumatic brain injury."
Meanwhile, Centcom has joined the rest of the Defense Department in working to reduce the incidence of sexual assault, sexual harassment and suicide within the ranks, he noted. All are top priorities of Defense Secretary Chuck Hagel, who has called on the entire department to eliminate these "debilitating and insidious threats" to the force.
"The fact is, the actions we take now will ultimately determine the readiness of our military for the next decade and beyond," Austin said. "We must do all that we can to keep faith with our troops and civilians and their families, recognizing that we still have a great deal of work to do in the coming days."
Austin said he worries that as U.S. forces return home from Afghanistan, the American people "will grow weary of supporting the military."
"We must all work together to make sure this does not happen," he said.
NEW REPORT RELEASED ON CHILD AND FORCED LABOR
FROM: U.S. LABOR DEPARTMENT
US Labor Department commemorates 20 years of work combating international child labor with release of new reporting and $26 million in grants
WASHINGTON — Secretary of Labor Thomas E. Perez today announced the release of a new report and updated list on child labor and forced labor and the award of $26 million in grants to combat child labor in four countries. The event at the department's headquarters included remarks by Secretary Perez, Senator Tom Harkin of Iowa and former Secretary of Labor Alexis Herman, as well as a video message from Dr. Maya Soetoro-Ng of the University of Hawaii at Manoa.
"These reports remind us that children and adults continue to be exploited for their labor in countries around the world. Until this is no longer true, our work is not done," said Secretary Perez. "We need to call upon governments, international and regional organizations, social partners and civil society to work together to end these human rights abuses." New global estimates from the International Labour Organization place the number of child laborers at 168 million worldwide.
The department's twelfth annual edition of its "Findings on the Worst Forms of Child Labor," a report mandated by the Trade and Development Act of 2000, which analyzes the worst forms of child labor in 143 foreign countries and territories. The report assesses efforts in countries to eliminate the worst forms of child labor, tracking from year to year whether a country has made significant, moderate, minimal or no advancement. This year, 10 countries, more than ever before, received an assessment of significant advancement.
"I have long had a vision of a world free of the scourge of exploitative child labor," said Senator Harkin. "This report is one of our most effective tools in this fight. It is a voice for the voiceless and a call to action on their behalf. We must sustain this fight for as long as it takes."
The department also released an update of its "List of Goods Produced by Child or Forced Labor," as required by the Trafficking Victims Protection Reauthorization Act of 2005, and announced its decision to remove three goods (charcoal from Namibia, diamonds from Zimbabwe and tobacco from Kazakhstan) from that list. The updated list includes a total of 134 goods from 73 countries that the department's Bureau of International Labor Affairs has reason to believe are produced by forced labor, child labor or both in violation of international standards.
As part of the department's international efforts to combat child labor, Secretary Perez also announced $26 million in awards for the following projects in four countries:
$2 million to reduce child labor in home-based carpet production in Afghanistan awarded to GoodWeave USA;
$9 million to combat child labor in the mining sector in Colombia awarded to Pact Inc.;
$10 million to reduce child labor and improve labor rights and working conditions in agriculture in the Dominican Republic awarded to Catholic Relief Services; and
$5 million to combat child labor in the tea sector in Rwanda awarded to Winrock International.
Since 1993, ILAB has produced reports to raise awareness globally about child labor and forced labor and funded projects that provide assistance to vulnerable children and their families. ILAB has funded more than 270 projects in more than 90 countries to combat the worst forms of child labor. In addition to providing international technical assistance in support of U.S. foreign and labor policy objectives, the agency lead's the Department of Labor's efforts to ensure that workers around the world are treated fairly and are able to share in the benefits of the global economy. ILAB's global mission is to improve working conditions, raise living standards, protect workers' ability to exercise their rights and address the workplace exploitation of children and other vulnerable populations.
US Labor Department commemorates 20 years of work combating international child labor with release of new reporting and $26 million in grants
WASHINGTON — Secretary of Labor Thomas E. Perez today announced the release of a new report and updated list on child labor and forced labor and the award of $26 million in grants to combat child labor in four countries. The event at the department's headquarters included remarks by Secretary Perez, Senator Tom Harkin of Iowa and former Secretary of Labor Alexis Herman, as well as a video message from Dr. Maya Soetoro-Ng of the University of Hawaii at Manoa.
"These reports remind us that children and adults continue to be exploited for their labor in countries around the world. Until this is no longer true, our work is not done," said Secretary Perez. "We need to call upon governments, international and regional organizations, social partners and civil society to work together to end these human rights abuses." New global estimates from the International Labour Organization place the number of child laborers at 168 million worldwide.
The department's twelfth annual edition of its "Findings on the Worst Forms of Child Labor," a report mandated by the Trade and Development Act of 2000, which analyzes the worst forms of child labor in 143 foreign countries and territories. The report assesses efforts in countries to eliminate the worst forms of child labor, tracking from year to year whether a country has made significant, moderate, minimal or no advancement. This year, 10 countries, more than ever before, received an assessment of significant advancement.
"I have long had a vision of a world free of the scourge of exploitative child labor," said Senator Harkin. "This report is one of our most effective tools in this fight. It is a voice for the voiceless and a call to action on their behalf. We must sustain this fight for as long as it takes."
The department also released an update of its "List of Goods Produced by Child or Forced Labor," as required by the Trafficking Victims Protection Reauthorization Act of 2005, and announced its decision to remove three goods (charcoal from Namibia, diamonds from Zimbabwe and tobacco from Kazakhstan) from that list. The updated list includes a total of 134 goods from 73 countries that the department's Bureau of International Labor Affairs has reason to believe are produced by forced labor, child labor or both in violation of international standards.
As part of the department's international efforts to combat child labor, Secretary Perez also announced $26 million in awards for the following projects in four countries:
$2 million to reduce child labor in home-based carpet production in Afghanistan awarded to GoodWeave USA;
$9 million to combat child labor in the mining sector in Colombia awarded to Pact Inc.;
$10 million to reduce child labor and improve labor rights and working conditions in agriculture in the Dominican Republic awarded to Catholic Relief Services; and
$5 million to combat child labor in the tea sector in Rwanda awarded to Winrock International.
Since 1993, ILAB has produced reports to raise awareness globally about child labor and forced labor and funded projects that provide assistance to vulnerable children and their families. ILAB has funded more than 270 projects in more than 90 countries to combat the worst forms of child labor. In addition to providing international technical assistance in support of U.S. foreign and labor policy objectives, the agency lead's the Department of Labor's efforts to ensure that workers around the world are treated fairly and are able to share in the benefits of the global economy. ILAB's global mission is to improve working conditions, raise living standards, protect workers' ability to exercise their rights and address the workplace exploitation of children and other vulnerable populations.
SECRETARY OF STATE KERRY AND RUSSIAN FOREIGN MINISTER MAKE REMARKS AFTER MEETING
FROM: U.S. STATE DEPARTMENT
Joint Press Availability With Russian Foreign Minister Sergey Lavrov After Their Meeting
Remarks
John Kerry
Secretary of State
Bali, Indonesia
October 6, 2013
SECRETARY KERRY: Well, good morning, everybody. I want to thank Foreign Minister Lavrov for joining me here today to sign this important agreement. Amending the NRRC agreement is another important step towards reducing risks associated with nuclear weapons, and I think both of us are cognizant of the fact that 26 years ago our predecessors from the United States and the former Soviet Union, Secretary of State George Shultz and Foreign Minister Eduard Shevardnadze signed the original NRRC agreement which established centers in Moscow and in Washington through which our nations were able to communicate with each other the details of our compliance with arms control treaties.
The Cold War is now long over, but thousands of nuclear weapons remain, and we both recognize a responsibility to do everything possible to keep each other appraised of important developments in order to avoid misunderstandings and potentially catastrophic consequences. I might remark that, for instance, after 2001, September 11th, we were quickly in touch with each other through this center as we took our armed forces to the highest level of alert in order to communicate immediately and directly so there could be no misunderstanding about what was taking place. In addition, on at least 13 different conventional and other kinds of treaties between us since then, this center has now become a critical component in helping us to apply the rules, live by the rules, and understand what we’re both doing.
This amended agreement better enables us to do those things. By upgrading the centers, it provides vital support for our strategic and our conventional arms treaties and agreements, like the New START Treaty, which I was privileged to help take through ratification in the Senate just a couple of years ago.
Regarding our meeting today, I would characterize the meeting as really one of the most productive that we have had since our meetings in Geneva, which were obviously productive. And I think Sergey and I talked at great length about Syria. Since the binding resolution was passed in New York, which will eliminate the weapons – the chemical weapons in Syria, we have continued to take very important steps. And I want to thank Sergey for the cooperation Russia has provided in this. It’s been very important. I think it’s an important part of our relationship. And it’s not insignificant that within days of the passing of this resolution in New York inspectors are in Syria, they are on the ground, and now they are already proceeding to the destruction of chemical weapons. That actually began yesterday. There are missile warheads and other instruments that were destroyed yesterday, so the process has become – begun in record time, and we are appreciative for the Russian cooperation, as well as obviously for the Syrian compliance to this date.
We also strongly supported the recent United Nations Security Council statement urging unhindered access to enable humanitarian aid providers to immediately reach parts of the country where the need is most urgent. We talked about that a little bit, and our Russian friends are engaged in almost daily interventions in an effort to move the Syrian regime to comply. And obviously we want to get that aid to the places where the need is much urgent and we want to get there are rapidly as possible. As the world’s largest provider of humanitarian assistance of aid to Syria, the United States applauds the Council for rapidly taking this up and for shining a light on this appalling situation.
Finally, Foreign Minister Lavrov and I discussed our mutual goal, which we are extraordinarily focused on, of ending the war in Syria through a political transition to a more broadly acceptable democratic government, under the terms of the Geneva communique. We agreed, again, that there is no military solution here. We share an interest in not having radical extremists on either side of any kind assuming a greater status or position in Syria. And that is why we recommitted today with very specific efforts to move the Geneva process as rapidly as possible. We are going to both engage with Special Envoy Lakhdar Brahimi and lay the groundwork for a round of talks. It is our mutual hope that that can happen in November. And we are both intent and determined in consultation with our friends in these efforts to try to make certain that this can happen in November. A final date and the terms of participation will have to be determined by the United Nations, but we had a very constructive discussion about the path to getting there and we are both committed to leave here with a determination to begin that process, because we both believe – both countries believe, our leaders believe, President Putin and President Obama – that nothing is served by the prolongation of the violence in Syria. The humanitarian catastrophe is overwhelming the region, and we have a significant responsibility to try to address it. Thank you.
Sergey.
FOREIGN MINISTER LAVROV: Thank you, John. And gentlemen for the benefit of the Russian journalists I will speak in Russian, with your permission.
(Via interpreter) Dear ladies and gentlemen, since John Kerry entered into office as Secretary of State this February, we met 11 times. And our meetings in Geneva and New York are counting, but we have met quite a lot of time also.
Today, we have signed an agreement about the National Nuclear Risk Reduction Centers. These centers are functioning since 1987, but it’s high time to adapt them to new realities with our joint effort. And, of course, these centers are very important to ensure all directions of our joint work to ensure the confidence and such agreements as START agreements, the Vienna agreements, as well as the agreements on Open Skies. And I would like also to say that three weeks ago, there was signs and another important agreement about a scientific cooperation in nuclear energy field.
So this agreement was prepared specially for the Russian-American summit in Moscow that was planned for the 4th of September and which unfortunately didn’t take place. But anyway, this intense cooperation of signing agreements shows that there is no pause in our bilateral relations and there can’t be any one.
In the landlines of our attention was Syria today. Ten days ago, by our joint efforts and with the help of the Security Council of the United Nations, we could work out important decisions. There was also a resolution adopted on the document of – in the framework of the OPCW about the liquidation and elimination of chemical weapons. This is already taking place. The decisions are being fulfilled, and the elimination has started. And during all these weeks up to joining – after Syria joined the document on the elimination of chemical weapons, Damascus is working jointly with – to work on these decisions. And we hope that it will take effect soon. I hope that it will be happening in the future as that. And of course, this bears all the attention and all the necessary responsibility on – not only for this responsibility on the Syrian Government, but also on the opposition and all the states in this sphere should, of course, not let these weapons to fall into the hands of non-state subjects.
And looking into – while the concerns of chemical weapons, we haven’t forgotten other important goals. Of course, the humanitarian situation is very important for us, as well as the situation with the refugees in this country. And of course, we welcomed the Security Council announcement about the goals before the international community to help with the humanitarian situation in this country. Of course, this situation is quite complicated also because the opposition is – of course, important for the opposition to take a part in this process. And I’m convinced that with due cooperation with the United Nations, with the Red Cross, there will be a possibility to get to the places, the necessary places, the humanitarian help such needed in this country.
Of course, we looked into the political settlement, which is much needed in Syria. We also would like to say that we are very concerned and we would like it to take place, the conference on political settlement, in mid-November, as well as the Syrian Government said about its readiness for that. And we also agreed that the government would come with – completely prepared to fulfill all the commitments taken to join this international conference. And I would like to reiterate the government and the opposition to be ready for such a conference. And, of course, the composition which is completely for such an event with the participation of the Special Envoy Brahimi for such an event is very important also. And of course, the main important – the most important thing is for the long-term settlement is for the Syrians themselves to agree on it and all the other participants to fully help in such result.
We also have exchanged opinion on the settlement of the Iranian nuclear program. And we consider that such a positive situation, such a positive signal with the President and the Minister of Foreign Affairs of Iran, which also have met on the General – on the sidelines of General Assembly will materialize in concrete affairs for the course of these actions.
We have also expressed our – of course, our help, our support for achieving for Israelis and the Palestinians to settle their affairs. And of course, thanks to the efforts of John Kerry and the international mediators help, we consider that that could bear fruit.
We have also agreed on many issues of bilateral agenda, and we consider with – that with due efforts we could eliminate all the irritators that are in the bilateral – in the general of our bilateral relations. And I’m sure that if we are guided by the principles of equality, of non-interference in our internal affairs, and consideration of interests of each others, our countries would progress in the field of cooperation for the benefit of Russia and the United States and the whole world.
SECRETARY KERRY: We’re happy to take a few questions.
MS. PSAKI: The first question will be from Lesley Wroughton of Reuters.
QUESTION: Thank you very much. You’ve spoken today of a positive meeting on Syria. Do you believe that the elimination of the chemical weapons is going well? Do you expect it to be completed within a certain time? And how close to you – are you on actually setting a date for the peace talks for Geneva 2? Is there ever – is that ever going to happen? We’ve heard about this a long time?
And to the Minister, what have you done to convince Assad to come to the peace talks? Have you actually convinced him to do that – and the – of moving into a transitional government?
And for Secretary Kerry, there has been a complaint from Libya regarding the operation by U.S. military forces, which has provoked a complaint that Mr. al-Libi was kidnapped. Did you give them advance notice of what – of the operation? And number two, what perception do you think this leaves the world when people are snatched off the street of foreign countries by the U.S. military?
SECRETARY KERRY: So let me be crystal clear. The – we’re very pleased with the pace of what has happened with respect to chemical weapons. In a record amount of time, the United Nations Security Council has embraced a unique approach in a joint effort with the OPCW, the Office for the Prevention of Chemical Weapons. That’s never happened before. They agreed within a record period of time to follow the framework that Minister Lavrov and I negotiated in Geneva, and they put it into place both in The Hague as well as at the United Nations. I think that was a terrific example of global cooperation, of multilateral efforts, to accomplish an accepted goal.
And they have moved with equal speed to get on the ground in Syria and begin the operations. I think it is extremely significant that yesterday, Sunday, within a week of the resolution being passed, some chemical weapons were already being destroyed. I think it’s also credit to the Assad regime for complying rapidly, as they are supposed to. Now, we hope that will continue. I’m not going to vouch today for what happens months down the road, but it’s a good beginning, and we should welcome a good beginning.
I don't know if you’re planning to do the translation? Are we? All right. Please.
And in a world that needs to see government working effectively and that needs to see multilateral institutions serving their purposes, I think this a very important beginning.
With respect to setting a date, neither Minister Lavrov nor I are supposed to set a date. That date has to be set by the United Nations and by Special Envoy Brahimi and the Secretary General. We both agreed that we have some homework to do in preparation, but we are also agreed that we will meet with Lakhdar Brahimi, and we will urge that a specific date be set within the framework that the Envoy has already set, which is somewhere in the second week of November or so. And we will urge a date to be set as soon as possible.
With respect to Abu Anas al-Libi, he is a key al-Qaida figure and he is a legal and an appropriate target for the U.S. military under the Authorization of the Use of Military Force passed in September of 2001. And of course, we regularly consult with our friends in the region; we consult regularly with the Libyan Government on a range of security and counterterrorism issues. But we don’t get into the specifics of our communications with a foreign government or in any kind of operation of this kind.
Finally, I’d just say that with respect to the perception, I hope the perception is in the world that people who commit acts of terror and who have been appropriately indicted by courts of law, by the legal process, will know that the United States of America is going to do everything in its power that is legal and appropriate in order to enforce the law and protect our security. Abu Anas al-Libi was indicted in the southern district of New York in connection with his role in al-Qaida’s conspiracy to kill U.S. nationals, to conduct attacks against interests worldwide, which included al-Qaida plots to attack forces in Saudi Arabia, Yemen, Somalia, as well as attacking the U.S. Embassy in Dar es Salaam, Tanzania and Nairobi, Kenya.
So an indictment is an accusation. In our legal system, a defendant is presumed innocent until proven guilty. But he will now have an opportunity to defend himself and to be appropriately brought to justice in a court of law. And I think it’s important for people in the world not to sympathize with alleged terrorists but to underscore the importance of rule of law. And that is the perception that we believe is the important one for people to understand.
FOREIGN MINISTER LAVROV: (Via interpreter) Concerning our stance about the process of chemical weapons eliminations, we’re satisfied with such a process. We have no grounds to consider that the cooperation that is doing the Syrian Government to fulfill, perfectly, this – that these concerns is – will change anyhow. And the Russian part will do everything so that Damascus will follow the cooperation without any changes.
But there is another thing that concerns us, and we have grounds to suspect that the extremist groups are trying to undermine such a process. And we hope that the resolution of the Security Council, which was adopted 10 days ago, will be fulfilled by all the parties, as well as the countries which are neighbors of Syria, and so to fulfill the requirements of the Security Council not to fall the chemical weapons and the chemical elements into the hands of non-state subjects, as well as the territories for the work of – the territories of this country for the work of terrorists.
And in general, we would like to reiterate – and today we’ve talked about – that we are going to do everything so to completely find the terrorists and extremists element in this country. And it’s our own task and the task of everybody who want this country to be multiconfessional, secular, and to be in peace.
About the terms and the dates of the conference, John already said that we are not to establish this date. And we know the position of Damascus, and from the point of view of the government of Damascus that conference could already be established many months ago.
And we shouldn’t do anything so the delegation from Syrian Government would go there. They already said about their efforts and about their intentions to go there. Already although some of them, they went in Geneva, were adopted of the joint – the joint resolutions of American and Russians.
And we shouldn’t do anything, and we’d like – we have to do everything so that the opposition will also come and agree to come without any preliminary conditions. The important steps that they should do is to fulfill the Geneva communique, which was adopted on the 30 of May last year.
And we also talked about it with John Kerry. We would like to support all the efforts to form the delegation of the oppositions, will be a representative in all its sense. And we also would like so the National Coalition would speak with one voice, because some days ago the leaders said that – they announced that they are ready to go there, but then their partners say that they are really not ready.
And I would like to reiterate that we have a common understanding with our American colleagues that there should be synchronized and coordinated efforts to convene a conference, which would be represented by all parties with the help of important international players.
MODERATOR: (In Russian.)
QUESTION: (Via interpreter) Oleg Velano from Interfax Agency. The last question – that recently the Chief of the Ministry of Foreign Affairs of Iran said that the decisions of the Group of Six is already on the table. How could you comment that in – take into account the planned new round of the Group of Six meeting?
And another question is to John Kerry, that there – Iran and the United States are getting quite close each time. And there are some – will there be any changes in relation to the missile defense in Europe? Because the threat of Iran – of a nuclear threat from Iran was the main reason of the deployment of that missile defense.
SECRETARY KERRY: Was the question on the Group of Six to Sergey or to me?
FOREIGN MINISTER LAVROV: If I understood the question right, the question was about yesterday’s statement of Minister Zarif that Iran expects new proposals from the 3+3, not that the old proposal is on the table. And my understanding of this statement of Minister Zarif is that we discussed in New York – six ministers of the 3+3 group, plus Minister of Foreign Affairs of Iran, Mr. Zarif – and we discussed the need to have a roadmap which would, at the end of the day, satisfy the international community that the Iranian nuclear program is entirely peaceful and that this program is pulled under total and strict control of the International Atomic Energy Agency. And when this is achieved, Iran wants all sanctions to be lifted.
I don’t think that this is contradictory to what the 3+3 has been doing all these years. Iran probably wants more clarity, more specific steps to be spelled out on the road to the result which we all want to achieve. And I think this would be discussed next week in Geneva, a meeting to which Iran agreed, and to which Iran and 3+3 are getting ready in a very constructive mood, as our contacts in New York showed.
SECRETARY KERRY: No translation?
INTERPRETER: No translation, Mr. Kerry.
SECRETARY KERRY: Another (inaudible) please. Does she understand English?
FOREIGN MINISTER LAVROV: Yeah, she does.
SECRETARY KERRY: Okay. Gotcha.
FOREIGN MINISTER LAVROV: And French. (Laughter.)
SECRETARY KERRY: What else can you tell us, Sergey? (Laughter.)
On Iran, the Group of Six put a proposal on the table in Almaty, and I don’t believe that, as of yet, Iran has fully responded to that particular proposal. So I think we’re waiting for the fullness of the Iranian difference in their approach now. But we’re encouraged by the statements that were made in New York, and we’re encouraged by the outreach.
But as the President – as President Obama has said, and I think other the members of the P-5+1 agree, it’s not words that will make the difference. It’s actions that will make the difference. So what we need are a set of proposals from Iran that fully disclose how they will show the world that their program is peaceful. And we have made it clear that if there are those indicators, the United States and our allies are absolutely prepared to move in appropriate ways to meet their actions. So we still have to wait and see where that comes out.
With respect to the part of your question about Iran and the U.S. getting close, I would just say to you that the talk of these first days and the exchanges of a couple of meetings and a phone call do not indicate a closeness. They indicate an opportunity. They indicate the opening of a door or a window to some discussion. We’re very anxious to have that discussion, but it’s way too premature to make any determinations about where we would wind up with respect to the deployment of the missile defense, which you’re right, was predicated on that threat. But as long as that threat is there, we still have to deal with that issue.
Now, that said, the Foreign Minister and I did discuss Iran and we discussed also the discussion that is underway between the United States and Russia on the subject of missile defense. And I think we’re in a place now where the next step in that discussion can take place, regardless of what happens with respect to Iran. And we look forward to having a good, continued discussion with Russia regarding mutual defense. We obviously would like to see something – we’d like to reach an understanding with Russia, and I think the Russians would like to reach an understanding with us. So that discussion will continue in the appropriate channels where it is currently located.
FOREIGN MINISTER LAVROV: And I would just like to add that, indeed, we have this appropriate channels activated, they never actually were frozen, and missile defense is one of the important items on our agenda. We should like to resolve in the way which would not create any suspicions regarding the strategic stability sustainability. And indeed, I (inaudible) of what John said now, that as long as the Iranian threat quote/unquote exists, the American plans remain. So I assume that if we manage to make sure that everyone agrees that the threat is not any longer there, then those plans might be reconsidered.
SECRETARY KERRY: Well, that’s not exactly what I said, Sergey, but obviously we will respond to threats. And I think you know that we’re trying to work out a way for the missile defense system to meet your needs and our needs, and no matter what happens, we’ll pursue that discussion, and I think that’s a very important discussion.
Now obviously if the overall situation in the entire region changes, we’re open to a much more significant discussion.
MS. PSAKI: Thank you. Thanks, everyone.
SECRETARY KERRY: Thank you all.
Joint Press Availability With Russian Foreign Minister Sergey Lavrov After Their Meeting
Remarks
John Kerry
Secretary of State
Bali, Indonesia
October 6, 2013
SECRETARY KERRY: Well, good morning, everybody. I want to thank Foreign Minister Lavrov for joining me here today to sign this important agreement. Amending the NRRC agreement is another important step towards reducing risks associated with nuclear weapons, and I think both of us are cognizant of the fact that 26 years ago our predecessors from the United States and the former Soviet Union, Secretary of State George Shultz and Foreign Minister Eduard Shevardnadze signed the original NRRC agreement which established centers in Moscow and in Washington through which our nations were able to communicate with each other the details of our compliance with arms control treaties.
The Cold War is now long over, but thousands of nuclear weapons remain, and we both recognize a responsibility to do everything possible to keep each other appraised of important developments in order to avoid misunderstandings and potentially catastrophic consequences. I might remark that, for instance, after 2001, September 11th, we were quickly in touch with each other through this center as we took our armed forces to the highest level of alert in order to communicate immediately and directly so there could be no misunderstanding about what was taking place. In addition, on at least 13 different conventional and other kinds of treaties between us since then, this center has now become a critical component in helping us to apply the rules, live by the rules, and understand what we’re both doing.
This amended agreement better enables us to do those things. By upgrading the centers, it provides vital support for our strategic and our conventional arms treaties and agreements, like the New START Treaty, which I was privileged to help take through ratification in the Senate just a couple of years ago.
Regarding our meeting today, I would characterize the meeting as really one of the most productive that we have had since our meetings in Geneva, which were obviously productive. And I think Sergey and I talked at great length about Syria. Since the binding resolution was passed in New York, which will eliminate the weapons – the chemical weapons in Syria, we have continued to take very important steps. And I want to thank Sergey for the cooperation Russia has provided in this. It’s been very important. I think it’s an important part of our relationship. And it’s not insignificant that within days of the passing of this resolution in New York inspectors are in Syria, they are on the ground, and now they are already proceeding to the destruction of chemical weapons. That actually began yesterday. There are missile warheads and other instruments that were destroyed yesterday, so the process has become – begun in record time, and we are appreciative for the Russian cooperation, as well as obviously for the Syrian compliance to this date.
We also strongly supported the recent United Nations Security Council statement urging unhindered access to enable humanitarian aid providers to immediately reach parts of the country where the need is most urgent. We talked about that a little bit, and our Russian friends are engaged in almost daily interventions in an effort to move the Syrian regime to comply. And obviously we want to get that aid to the places where the need is much urgent and we want to get there are rapidly as possible. As the world’s largest provider of humanitarian assistance of aid to Syria, the United States applauds the Council for rapidly taking this up and for shining a light on this appalling situation.
Finally, Foreign Minister Lavrov and I discussed our mutual goal, which we are extraordinarily focused on, of ending the war in Syria through a political transition to a more broadly acceptable democratic government, under the terms of the Geneva communique. We agreed, again, that there is no military solution here. We share an interest in not having radical extremists on either side of any kind assuming a greater status or position in Syria. And that is why we recommitted today with very specific efforts to move the Geneva process as rapidly as possible. We are going to both engage with Special Envoy Lakhdar Brahimi and lay the groundwork for a round of talks. It is our mutual hope that that can happen in November. And we are both intent and determined in consultation with our friends in these efforts to try to make certain that this can happen in November. A final date and the terms of participation will have to be determined by the United Nations, but we had a very constructive discussion about the path to getting there and we are both committed to leave here with a determination to begin that process, because we both believe – both countries believe, our leaders believe, President Putin and President Obama – that nothing is served by the prolongation of the violence in Syria. The humanitarian catastrophe is overwhelming the region, and we have a significant responsibility to try to address it. Thank you.
Sergey.
FOREIGN MINISTER LAVROV: Thank you, John. And gentlemen for the benefit of the Russian journalists I will speak in Russian, with your permission.
(Via interpreter) Dear ladies and gentlemen, since John Kerry entered into office as Secretary of State this February, we met 11 times. And our meetings in Geneva and New York are counting, but we have met quite a lot of time also.
Today, we have signed an agreement about the National Nuclear Risk Reduction Centers. These centers are functioning since 1987, but it’s high time to adapt them to new realities with our joint effort. And, of course, these centers are very important to ensure all directions of our joint work to ensure the confidence and such agreements as START agreements, the Vienna agreements, as well as the agreements on Open Skies. And I would like also to say that three weeks ago, there was signs and another important agreement about a scientific cooperation in nuclear energy field.
So this agreement was prepared specially for the Russian-American summit in Moscow that was planned for the 4th of September and which unfortunately didn’t take place. But anyway, this intense cooperation of signing agreements shows that there is no pause in our bilateral relations and there can’t be any one.
In the landlines of our attention was Syria today. Ten days ago, by our joint efforts and with the help of the Security Council of the United Nations, we could work out important decisions. There was also a resolution adopted on the document of – in the framework of the OPCW about the liquidation and elimination of chemical weapons. This is already taking place. The decisions are being fulfilled, and the elimination has started. And during all these weeks up to joining – after Syria joined the document on the elimination of chemical weapons, Damascus is working jointly with – to work on these decisions. And we hope that it will take effect soon. I hope that it will be happening in the future as that. And of course, this bears all the attention and all the necessary responsibility on – not only for this responsibility on the Syrian Government, but also on the opposition and all the states in this sphere should, of course, not let these weapons to fall into the hands of non-state subjects.
And looking into – while the concerns of chemical weapons, we haven’t forgotten other important goals. Of course, the humanitarian situation is very important for us, as well as the situation with the refugees in this country. And of course, we welcomed the Security Council announcement about the goals before the international community to help with the humanitarian situation in this country. Of course, this situation is quite complicated also because the opposition is – of course, important for the opposition to take a part in this process. And I’m convinced that with due cooperation with the United Nations, with the Red Cross, there will be a possibility to get to the places, the necessary places, the humanitarian help such needed in this country.
Of course, we looked into the political settlement, which is much needed in Syria. We also would like to say that we are very concerned and we would like it to take place, the conference on political settlement, in mid-November, as well as the Syrian Government said about its readiness for that. And we also agreed that the government would come with – completely prepared to fulfill all the commitments taken to join this international conference. And I would like to reiterate the government and the opposition to be ready for such a conference. And, of course, the composition which is completely for such an event with the participation of the Special Envoy Brahimi for such an event is very important also. And of course, the main important – the most important thing is for the long-term settlement is for the Syrians themselves to agree on it and all the other participants to fully help in such result.
We also have exchanged opinion on the settlement of the Iranian nuclear program. And we consider that such a positive situation, such a positive signal with the President and the Minister of Foreign Affairs of Iran, which also have met on the General – on the sidelines of General Assembly will materialize in concrete affairs for the course of these actions.
We have also expressed our – of course, our help, our support for achieving for Israelis and the Palestinians to settle their affairs. And of course, thanks to the efforts of John Kerry and the international mediators help, we consider that that could bear fruit.
We have also agreed on many issues of bilateral agenda, and we consider with – that with due efforts we could eliminate all the irritators that are in the bilateral – in the general of our bilateral relations. And I’m sure that if we are guided by the principles of equality, of non-interference in our internal affairs, and consideration of interests of each others, our countries would progress in the field of cooperation for the benefit of Russia and the United States and the whole world.
SECRETARY KERRY: We’re happy to take a few questions.
MS. PSAKI: The first question will be from Lesley Wroughton of Reuters.
QUESTION: Thank you very much. You’ve spoken today of a positive meeting on Syria. Do you believe that the elimination of the chemical weapons is going well? Do you expect it to be completed within a certain time? And how close to you – are you on actually setting a date for the peace talks for Geneva 2? Is there ever – is that ever going to happen? We’ve heard about this a long time?
And to the Minister, what have you done to convince Assad to come to the peace talks? Have you actually convinced him to do that – and the – of moving into a transitional government?
And for Secretary Kerry, there has been a complaint from Libya regarding the operation by U.S. military forces, which has provoked a complaint that Mr. al-Libi was kidnapped. Did you give them advance notice of what – of the operation? And number two, what perception do you think this leaves the world when people are snatched off the street of foreign countries by the U.S. military?
SECRETARY KERRY: So let me be crystal clear. The – we’re very pleased with the pace of what has happened with respect to chemical weapons. In a record amount of time, the United Nations Security Council has embraced a unique approach in a joint effort with the OPCW, the Office for the Prevention of Chemical Weapons. That’s never happened before. They agreed within a record period of time to follow the framework that Minister Lavrov and I negotiated in Geneva, and they put it into place both in The Hague as well as at the United Nations. I think that was a terrific example of global cooperation, of multilateral efforts, to accomplish an accepted goal.
And they have moved with equal speed to get on the ground in Syria and begin the operations. I think it is extremely significant that yesterday, Sunday, within a week of the resolution being passed, some chemical weapons were already being destroyed. I think it’s also credit to the Assad regime for complying rapidly, as they are supposed to. Now, we hope that will continue. I’m not going to vouch today for what happens months down the road, but it’s a good beginning, and we should welcome a good beginning.
I don't know if you’re planning to do the translation? Are we? All right. Please.
And in a world that needs to see government working effectively and that needs to see multilateral institutions serving their purposes, I think this a very important beginning.
With respect to setting a date, neither Minister Lavrov nor I are supposed to set a date. That date has to be set by the United Nations and by Special Envoy Brahimi and the Secretary General. We both agreed that we have some homework to do in preparation, but we are also agreed that we will meet with Lakhdar Brahimi, and we will urge that a specific date be set within the framework that the Envoy has already set, which is somewhere in the second week of November or so. And we will urge a date to be set as soon as possible.
With respect to Abu Anas al-Libi, he is a key al-Qaida figure and he is a legal and an appropriate target for the U.S. military under the Authorization of the Use of Military Force passed in September of 2001. And of course, we regularly consult with our friends in the region; we consult regularly with the Libyan Government on a range of security and counterterrorism issues. But we don’t get into the specifics of our communications with a foreign government or in any kind of operation of this kind.
Finally, I’d just say that with respect to the perception, I hope the perception is in the world that people who commit acts of terror and who have been appropriately indicted by courts of law, by the legal process, will know that the United States of America is going to do everything in its power that is legal and appropriate in order to enforce the law and protect our security. Abu Anas al-Libi was indicted in the southern district of New York in connection with his role in al-Qaida’s conspiracy to kill U.S. nationals, to conduct attacks against interests worldwide, which included al-Qaida plots to attack forces in Saudi Arabia, Yemen, Somalia, as well as attacking the U.S. Embassy in Dar es Salaam, Tanzania and Nairobi, Kenya.
So an indictment is an accusation. In our legal system, a defendant is presumed innocent until proven guilty. But he will now have an opportunity to defend himself and to be appropriately brought to justice in a court of law. And I think it’s important for people in the world not to sympathize with alleged terrorists but to underscore the importance of rule of law. And that is the perception that we believe is the important one for people to understand.
FOREIGN MINISTER LAVROV: (Via interpreter) Concerning our stance about the process of chemical weapons eliminations, we’re satisfied with such a process. We have no grounds to consider that the cooperation that is doing the Syrian Government to fulfill, perfectly, this – that these concerns is – will change anyhow. And the Russian part will do everything so that Damascus will follow the cooperation without any changes.
But there is another thing that concerns us, and we have grounds to suspect that the extremist groups are trying to undermine such a process. And we hope that the resolution of the Security Council, which was adopted 10 days ago, will be fulfilled by all the parties, as well as the countries which are neighbors of Syria, and so to fulfill the requirements of the Security Council not to fall the chemical weapons and the chemical elements into the hands of non-state subjects, as well as the territories for the work of – the territories of this country for the work of terrorists.
And in general, we would like to reiterate – and today we’ve talked about – that we are going to do everything so to completely find the terrorists and extremists element in this country. And it’s our own task and the task of everybody who want this country to be multiconfessional, secular, and to be in peace.
About the terms and the dates of the conference, John already said that we are not to establish this date. And we know the position of Damascus, and from the point of view of the government of Damascus that conference could already be established many months ago.
And we shouldn’t do anything so the delegation from Syrian Government would go there. They already said about their efforts and about their intentions to go there. Already although some of them, they went in Geneva, were adopted of the joint – the joint resolutions of American and Russians.
And we shouldn’t do anything, and we’d like – we have to do everything so that the opposition will also come and agree to come without any preliminary conditions. The important steps that they should do is to fulfill the Geneva communique, which was adopted on the 30 of May last year.
And we also talked about it with John Kerry. We would like to support all the efforts to form the delegation of the oppositions, will be a representative in all its sense. And we also would like so the National Coalition would speak with one voice, because some days ago the leaders said that – they announced that they are ready to go there, but then their partners say that they are really not ready.
And I would like to reiterate that we have a common understanding with our American colleagues that there should be synchronized and coordinated efforts to convene a conference, which would be represented by all parties with the help of important international players.
MODERATOR: (In Russian.)
QUESTION: (Via interpreter) Oleg Velano from Interfax Agency. The last question – that recently the Chief of the Ministry of Foreign Affairs of Iran said that the decisions of the Group of Six is already on the table. How could you comment that in – take into account the planned new round of the Group of Six meeting?
And another question is to John Kerry, that there – Iran and the United States are getting quite close each time. And there are some – will there be any changes in relation to the missile defense in Europe? Because the threat of Iran – of a nuclear threat from Iran was the main reason of the deployment of that missile defense.
SECRETARY KERRY: Was the question on the Group of Six to Sergey or to me?
FOREIGN MINISTER LAVROV: If I understood the question right, the question was about yesterday’s statement of Minister Zarif that Iran expects new proposals from the 3+3, not that the old proposal is on the table. And my understanding of this statement of Minister Zarif is that we discussed in New York – six ministers of the 3+3 group, plus Minister of Foreign Affairs of Iran, Mr. Zarif – and we discussed the need to have a roadmap which would, at the end of the day, satisfy the international community that the Iranian nuclear program is entirely peaceful and that this program is pulled under total and strict control of the International Atomic Energy Agency. And when this is achieved, Iran wants all sanctions to be lifted.
I don’t think that this is contradictory to what the 3+3 has been doing all these years. Iran probably wants more clarity, more specific steps to be spelled out on the road to the result which we all want to achieve. And I think this would be discussed next week in Geneva, a meeting to which Iran agreed, and to which Iran and 3+3 are getting ready in a very constructive mood, as our contacts in New York showed.
SECRETARY KERRY: No translation?
INTERPRETER: No translation, Mr. Kerry.
SECRETARY KERRY: Another (inaudible) please. Does she understand English?
FOREIGN MINISTER LAVROV: Yeah, she does.
SECRETARY KERRY: Okay. Gotcha.
FOREIGN MINISTER LAVROV: And French. (Laughter.)
SECRETARY KERRY: What else can you tell us, Sergey? (Laughter.)
On Iran, the Group of Six put a proposal on the table in Almaty, and I don’t believe that, as of yet, Iran has fully responded to that particular proposal. So I think we’re waiting for the fullness of the Iranian difference in their approach now. But we’re encouraged by the statements that were made in New York, and we’re encouraged by the outreach.
But as the President – as President Obama has said, and I think other the members of the P-5+1 agree, it’s not words that will make the difference. It’s actions that will make the difference. So what we need are a set of proposals from Iran that fully disclose how they will show the world that their program is peaceful. And we have made it clear that if there are those indicators, the United States and our allies are absolutely prepared to move in appropriate ways to meet their actions. So we still have to wait and see where that comes out.
With respect to the part of your question about Iran and the U.S. getting close, I would just say to you that the talk of these first days and the exchanges of a couple of meetings and a phone call do not indicate a closeness. They indicate an opportunity. They indicate the opening of a door or a window to some discussion. We’re very anxious to have that discussion, but it’s way too premature to make any determinations about where we would wind up with respect to the deployment of the missile defense, which you’re right, was predicated on that threat. But as long as that threat is there, we still have to deal with that issue.
Now, that said, the Foreign Minister and I did discuss Iran and we discussed also the discussion that is underway between the United States and Russia on the subject of missile defense. And I think we’re in a place now where the next step in that discussion can take place, regardless of what happens with respect to Iran. And we look forward to having a good, continued discussion with Russia regarding mutual defense. We obviously would like to see something – we’d like to reach an understanding with Russia, and I think the Russians would like to reach an understanding with us. So that discussion will continue in the appropriate channels where it is currently located.
FOREIGN MINISTER LAVROV: And I would just like to add that, indeed, we have this appropriate channels activated, they never actually were frozen, and missile defense is one of the important items on our agenda. We should like to resolve in the way which would not create any suspicions regarding the strategic stability sustainability. And indeed, I (inaudible) of what John said now, that as long as the Iranian threat quote/unquote exists, the American plans remain. So I assume that if we manage to make sure that everyone agrees that the threat is not any longer there, then those plans might be reconsidered.
SECRETARY KERRY: Well, that’s not exactly what I said, Sergey, but obviously we will respond to threats. And I think you know that we’re trying to work out a way for the missile defense system to meet your needs and our needs, and no matter what happens, we’ll pursue that discussion, and I think that’s a very important discussion.
Now obviously if the overall situation in the entire region changes, we’re open to a much more significant discussion.
MS. PSAKI: Thank you. Thanks, everyone.
SECRETARY KERRY: Thank you all.
SECRETARY OF STATE KERRY'S REMARKS AT APEC CEO SUMMIT
FROM: U.S. STATE DEPARTMENT
Remarks at the APEC CEO Summit
Remarks
John Kerry
Secretary of State
Bali International Convention Center
Bali, Indonesia
October 7, 2013
Thank you, Wishnu, very, very much. It’s a great pleasure for me to be here, and an honor to be able to address you. And on behalf of President Obama, I want to thank our hosts in Indonesia for an absolutely, extraordinary generous hospitality, and I particularly – I think you will join me in feeling that they have been remarkable in their leadership in the course of this summit. So I thank them.
Let me echo the regret President Obama expressed personally to President Yudhoyono that he could not be here this week. I know he really was looking forward, genuinely to being here. I want you all to know that in 2004, obviously, I worked very, very hard to replace a president – this is not what I had in mind. (Laughter.)
But I also want to make it very clear to everybody: No one should mistake what is happening in Washington as anything more than a moment of politics. We’ve all seen it before; we’ll probably see it again, but I guarantee you we will move beyond this and we will move beyond it with strength and determination.
One of the things that encourages me enormously is the recent news that the United States of America is now the world’s largest energy – oil and gas – supplier, and we are renewing manufacturing. Our innovation is strong, our debt is coming down, our deficit is coming down, and I am absolutely confident that the innovation and strength that has characterized our economy for some period of time will continue well beyond this moment being considerably forgotten by all of you.
I want to emphasize that there is nothing that will shake the commitment of the United States to the rebalance to Asia that President Obama is leading. And I think it’s fair to say to all of you that we are very, very proud to be a Pacific nation. We are inextricably linked to this region by ties of geography, of history, culture, economics, and frankly the blood and the treasure that we expended to help lay the framework for the architecture on which prosperity is now being built.
The Asia Pacific region, which we are all a part of, is by far the largest, the fastest-growing, and the most dynamic economic region in the world. But in the 21st century, happily, our lives are defined not just by the work of troops or of diplomats, but increasingly by the efforts of entrepreneurs and executives, of the private sector – those of you and the businesses you build, and the workers that you employ, the places that you invest, the partnerships that you forge, and the students who represent the future of this multinational, multicultural, and multigenerational relationship that is being built in the dawn of the 21st century.
This is an exciting time. It’s an extraordinary time of transformation and change. And I know that every one of you come here with a sense of excitement and a sense of the possibilities that come with that. Quite simply, how this region grows, and how we engage the 2.7 billion customers who live here, that will shape the future of the world’s economy.
And the numbers tell a very important part of this story: More than half of global GDP is represented by this region. Half of global trade happens in this region. When you list the United States top 10 trading partners, half are APEC economies. We send more than half of our exports to this region. And over the next five years, nearly half of all the economic growth that will happen outside of the United States will happen in the Asia Pacific region. So if you put it all together, it is obvious why all of us, the private sector and the public sector, have a stake in the choices that we will make in the days ahead. But make no mistake, they are choices, and they will require the private sector and the public sector to work together like never before, in order to make the right choices.
As you know, when President Obama took office, the top priority had been creating new jobs and security for America’s middle class. And he also knows that can’t happen, and it won’t happen – and to the degree it’s happened, it hasn’t happened without your participation. What you sell, what you buy, where you invest – these are all major parts of the equation. And that’s why President Obama has worked hard to grow our exports by more than 50 percent since taking office, and two-way trade between the United States and other APEC economies has grown by nearly the same amount during the same period. Today, both American exports and American trade with APEC stands at record levels.
And when I became Secretary of State, I reminded my colleagues in the Senate during my confirmation hearing that foreign policy today is more than ever economic policy. National security is not just about the threats that we face – and we’re all familiar with those threats – but it’s about what we can do to prevent the seeds of tomorrow’s threats from being planted today. In a world where vast populations of young people are exploding on the scene with aspirations and demands, all interconnected by the social media, at that time anarchy and terror are sometimes offered as alternatives to the fulfillment of those jobs and opportunity, to the fulfillment of good governance.
And so we have a special challenge, all of us together – nobody’s exempt. There’s no business sector over here and government over here. It’s joined together, and it’s critical that we act together and work together. The consequences of failing to do so are staring at all of us – in Syria, Egypt, Afghanistan, Pakistan, and other parts of the world where young people – young people – remember what happened in Tunisia was a reflection of the aspirations of a fruit vendor who rebelled against corruption simply because he wanted to be able to live his life and sell his goods. What happened in Tahrir Square was without any religious overtones or connotations. It was again young people texting each other, using smart phones, talking about the possibilities of the future. And so it was in Syria, too, where young people wanted a voice in the future, and were met instead with violence.
So I would say to you that with all of their potential, it screams for the chance to fulfill their basic aspirations, and that is what we have to think about, even as we make bottom-line economic choices.
So it is clear: We have a stake in each other’s success. And that’s one of the reasons why multilateral fora like APEC and ASEAN are, frankly, so important in this modern context. And it’s why we are working to complete the Trans-Pacific Partnership negotiations by the end of this year. TPP, which is so critical – and to emphasize how critical it is, President Obama has sent our Secretary of Commerce Penny Pritzker, who is here sitting in the front, and our U.S. Trade Representative Ambassador Mike Froman sitting over here – because we understand how critical this is.
At its core, TPP is about generating growth for our economies and jobs for our people by unleashing a wave of investment and entrepreneurship all across the Asia Pacific. And at a time when we, all of us, seek strong and sustainable growth, TPP is creating a race to the top not to the bottom. It’s reaching for the highest standards of any trade agreement in history. And I will tell you that is good for businesses, it’s good for workers, it’s good for economics, it’s good for stability, it’s good for relationships between countries.
It’s important to remember that all the impressive statistics that we cite about this region and all the exciting projections about our shared future, they’re not just an accident. APEC economies are thriving because over the last 25 years, countries of the region lowered barriers on trade and investment, and that has accelerated growth as much as any other single thing.
APEC has played a critical role in that success by helping governments to align their standards and their practices, by lowering the barriers for women to be full participants, and by making it easier for businesses to reach across borders and find new markets. But the truth is, that is not enough. That alone will not produce success. In this constantly changing marketplace, governments have a huge responsibility to become even more agile, more responsible, and even more responsive to people and to the demands of the business community.
And that means we need to listen carefully to all of you who are on the front lines making the investments, making the decisions, and doing the business of creating businesses and jobs. I want to emphasize, we in governance need you, the leaders of commerce, we need your creativity as the drivers of gatherings like APEC and like the CEO Leaders Summit. And we need you to keep pushing governments forward and urging them to adapt.
Just last night I had the privilege of having dinner with a group of the CEOs, as many of you all did, and I listened to some of them express frustration with policy makers who accept, in principle, certain notions about how we should do business, but in practice often revert to other choices, including protectionism.
Protectionism, my friends, is not a problem because it shuts someone out of the market – though that is a problem. Protectionism is a problem because it stifles opportunity, because it narrows the market, because it crushes the energy of the marketplace, where new solutions are created through that energy. And history has proven again and again, a freer market creates more opportunity, more growth, more dynamism, more innovation, and no one knows that better, I think, than the CEOs who are gathered here.
But I also want to emphasize something. You’ve heard many speakers this week celebrate the economic vitality of this region, and well they should. But I hope it’s not a secret to say to you that there is nothing automatic that says that that will be the future. Nothing automatic. The prosperity that you share today and we are witnessing today did not arrive by accident, and neither is its continuance inevitable. You know as well as anyone that capital looking for a place to invest will seek either the fastest or the safest or a combination of the two, for the return on investment, regardless of geography, regardless of nationality. Capital wants certainty in the political process, and the battle for the future is a battle about competitiveness. And part of what makes a region competitive for investors, is obviously the consistent, predictable business climate that is conducive to success.
There is no question that the most successful markets of the next 25 years will be determined in large measure by how well they demonstrate openness, transparency, inclusivity, and accountability. Now I’m not talking just about high-minded principles. I’m talking about pragmatic choices that will define this region and other regions around the world. I’m talking about a path to long term, shared prosperity.
In your businesses, you all know that connectivity and innovation are the key to success. And you know the kind of environment that you need for innovation to be able to thrive. In the United States, I’m proud to say to you – not arrogantly, but just as a matter, I think, of a reality that the key to our productivity over the last 50 years has been the freedom of this innovation. The entrepreneurial spirit that allows somebody in America to take a risk and take a chance and to find a Google or an Apple or any other number of great businesses historically. That really is what has defined America, and it’s the centerpiece of our continued growth and success, even today. The gas that we are currently using from shale is the result of new technology, of pushing that curve.
And our world-changing businesses and our world-class universities – schools like the one that drew Wishnu across the Pacific to study in Los Angeles – these are a critical component of our economic foundation. It has been proven again and again that the next innovation in technology or the next great stride in medicine is most likely to be created in countries where citizens are free to share ideas, move capital around, free to try new things, free to fail, and where the laws are clear and equitable and where you know that the profits that flow from your ideas will be protected.
In order for businesses to fully unlock the promise of the great Asia Pacific market, or to realize the potential of a booming middle class a billion people strong, we need updated rules that protect not just the basic decisions about moving goods and services, but also protect the spirit of innovation on which the economies of the future are already being built.
We need modern rules for a changing road, rules that keep pace with the speed of today’s markets. We need norms that protect us from competitive disadvantages. We need a level playing field, predictability, transparency – so that when you invest and do business, you can have a reasonable expectation of the risks and rewards in front of you. And that is one of the promises of the TPP. And as I mentioned, it is about breaking down barriers and raising the bar, the standards, in a way that protects everybody and works for everybody.
You’ve all heard American officials talk about the importance of intellectual property. But the truth is that every economy that wants to be an innovation economy needs to defend their innovators. It’s not just Americans; every entrepreneur and business in the Asia Pacific needs to know that they can reap the benefits when they develop the next big thing. Economies that can make that guarantee are inevitably going to be stronger. And those that can’t make that guarantee, if your ideas are at risk of being stolen and your innovations can be ripped off, you will never reach the full potential of that country or economy.
As you know, the Asia Pacific region is increasingly reliant on complex supply chains. Think of an iPad that is designed in California, with its parts made in Taiwan, assembled in China, shipped through Singapore, loaded with apps from Korea, and sold in Jakarta. (Laughter.) All of the businesses and investors along the way – (applause) – that must be the crowd from Jakarta. (Laughter.) But all of the businesses and investors along the way clearly need the consistency and the certainty of transparent policies and predictable regulations. And I want to recognize the cutting-edge work of APEC, which is leading on supply-chain connectivity, all the while ensuring that the rules are made with input from the public and the stakeholders like you.
And that’s why I want to pay tribute to the synergy – I really felt it last night at dinner with the group that I had dinner with. There’s a great synergy here. And I think that it would be very valuable, frankly – one of the greatest assets of this gathering is the interaction between those of us who are privileged to be leaders in our countries, and those of you who lead in the business world.
On behalf of President Obama, I would urge APEC to find more ways to increase the interaction between the leaders here and the private sector, because I think that, in the end, will result in better policy faster. Beneath the surface of the success that we celebrate though, there is also an undercurrent of concern. And I would be remiss if I didn’t say something about it.
When we talk about rules, predictability, and the sanctity of contracts, we cannot forget that corruption corrodes our markets by raising the cost of doing business, it brews uncertainty, it creates inefficiency, it undermines good governance, and it frightens away capital. Put simply, it slows down growth. It doesn’t speed it up. It doesn’t expand growth, and it certainly doesn’t meet the standards of a world that is increasingly looking for more transparency and accountability. It creates a fragile system instead of a strong one.
President Obama and I commend APEC for its close work with the private sector to develop ethics for businesses large and small. And we also commend APEC’s recent work to shine a light on money laundering and illegal trade, including wildlife trafficking. Our economies – simple, bottom-line – our economies will not reach their full potential and we will not meet the demand of all those young people looking to us for good choices, for the future. We will not do that unless we eliminate criminal enterprises that undermine the legitimacy of what we are all trying to achieve, and the rules by which we are all trying to work.
APEC can advance its efforts by continuing to build capacity among customs officials, connecting law enforcement agencies, and reducing demand. And these days, if the governments don’t step up to tackle their responsibility, guess what? Citizens will. Because with the global use of social media, everybody in the world has an instant communications tool, everybody has a camera, and increasingly where I’ve seen people hold people accountable. Pictures, videos, stories that anyone with a video can share with millions of people in milliseconds will actually help to create accountability. There is a new cop on the beat.
Finally, I want to say one last word about another value that we need to defend. And it is one that, like the others that I mentioned, will actually benefit businesses and economies, and it’s one we can only address multilaterally, and some of you may think it’s strange that the Secretary of State of the United States picks this issue to say something about here at this APEC conference, but I think it is a moral responsibility, as well as a practical business one, and that is the urgency with which we must all come together to deal with the issue of climate change.
I know that when people talk about climate change, eyes still glaze over. And against all evidence, there are still some people who wonder if it’s real – and many wonder what they can actually do about it. Well, the fact is that the absence of a concerted global commitment to address this is inviting catastrophe. And for everybody’s business, it is inviting uncertainty.
For insurance companies, it is inviting insolvency. The recent United Nations report, with its nearly unanimous conclusion that human beings are to blame for what is happening, warns us of the consequences and makes clear our responsibility. As the world’s biggest consumers of energy and the biggest emitters of greenhouse gases, Pacific nations, including my own – we’re number two in the world – Pacific nations including my own have an enormous responsibility to lead a transformation that can not only save lives, but create millions of jobs.
I will just tell you, after 29 years of following this, that the extreme weather around the world – the flooding, the fires, the drought, the intense storms – are nothing compared to what will come if we don’t act. The reduction in some of our fisheries, the melt of ice, the rise of sea level, the Pacific islands that are threatened, all of this will present us with refugees such as we have never seen before, and with food shortages that may boggle the mind.
What’s astounding to me is this: Staring us in the face is an economic revolution that can solve all of this. There is a $6 trillion market out there for energy, with six billion to nine billion additional users over the next 20-40 years, and that is the marketplace of all time. The market that created the great wealth of the 1990s was a technology boom. It was a $1 trillion market, with one billion users. Compare that to the six trillion and six to nine billion users.
Energy is the solution to climate change. And the energy market is staring us in the face with an enormous amount of opportunity, and despite the amount of gas that is becoming available, we still have a responsibility, particularly those 20 major emitter nations, to deal with this issue. I think APEC understands that doing nothing is not an option, and that’s why it’s been a leader in increasing energy efficiency and reducing inefficient and market-distorting fossil fuel subsidies, and we need to continue to move in that direction. But this is a visible and tangible change in this part of the world, and tomorrow I look forward to meeting with President Yudhoyono and representatives of the Pacific Island countries and APEC leaders to talk about how we can ensure a more sustainable economic development program around us.
Yesterday, I had the chance to visit Benoa Port, where America is engaged in a public-private partnership with some fishermen here in Indonesia. And we’re engaged with universities – UCLA and three universities out here trying to build a sustainable fishery and sustainable future. These are fishermen who work for a Tampa Bay, Florida company. Fish are shipped from here every day, and it goes to Outback restaurants in America, to Walmart, and to Whole Foods. This is the world we’re living in today. But if there’s too much money chasing too few fish, and we don’t have sustainable practices, then we will obviously inherit crises beyond recognition. Sixty million people in Indonesia depend on fishing and on marine resources for their livelihood. And 60 million Indonesians get most of their protein from the sea.
So these are examples of the ways in which APEC and all of us can come together. This is the new norm. This is the future. This is the way the world is going to have to work in order to deal with these problems, but to grab the opportunities that are staring us in the face. In bringing together businesses and governments, NGOs, students, and all citizens to address these issues, APEC does the seemingly impossible: it makes one of the largest regions in the world smaller and more connected. And because APEC gives economies such an effective forum to talk about and tackle these challenges, and thanks in large part to the business leaders like you, tomorrow we will be able to innovate more imaginatively, think more freely, grow more equitably, consume more sustainably, partner more broadly, and create greater opportunities for this generation and the next. And by doing that, we will live up to our responsibilities. Thank you very, very much. (Applause.)
Remarks at the APEC CEO Summit
Remarks
John Kerry
Secretary of State
Bali International Convention Center
Bali, Indonesia
October 7, 2013
Thank you, Wishnu, very, very much. It’s a great pleasure for me to be here, and an honor to be able to address you. And on behalf of President Obama, I want to thank our hosts in Indonesia for an absolutely, extraordinary generous hospitality, and I particularly – I think you will join me in feeling that they have been remarkable in their leadership in the course of this summit. So I thank them.
Let me echo the regret President Obama expressed personally to President Yudhoyono that he could not be here this week. I know he really was looking forward, genuinely to being here. I want you all to know that in 2004, obviously, I worked very, very hard to replace a president – this is not what I had in mind. (Laughter.)
But I also want to make it very clear to everybody: No one should mistake what is happening in Washington as anything more than a moment of politics. We’ve all seen it before; we’ll probably see it again, but I guarantee you we will move beyond this and we will move beyond it with strength and determination.
One of the things that encourages me enormously is the recent news that the United States of America is now the world’s largest energy – oil and gas – supplier, and we are renewing manufacturing. Our innovation is strong, our debt is coming down, our deficit is coming down, and I am absolutely confident that the innovation and strength that has characterized our economy for some period of time will continue well beyond this moment being considerably forgotten by all of you.
I want to emphasize that there is nothing that will shake the commitment of the United States to the rebalance to Asia that President Obama is leading. And I think it’s fair to say to all of you that we are very, very proud to be a Pacific nation. We are inextricably linked to this region by ties of geography, of history, culture, economics, and frankly the blood and the treasure that we expended to help lay the framework for the architecture on which prosperity is now being built.
The Asia Pacific region, which we are all a part of, is by far the largest, the fastest-growing, and the most dynamic economic region in the world. But in the 21st century, happily, our lives are defined not just by the work of troops or of diplomats, but increasingly by the efforts of entrepreneurs and executives, of the private sector – those of you and the businesses you build, and the workers that you employ, the places that you invest, the partnerships that you forge, and the students who represent the future of this multinational, multicultural, and multigenerational relationship that is being built in the dawn of the 21st century.
This is an exciting time. It’s an extraordinary time of transformation and change. And I know that every one of you come here with a sense of excitement and a sense of the possibilities that come with that. Quite simply, how this region grows, and how we engage the 2.7 billion customers who live here, that will shape the future of the world’s economy.
And the numbers tell a very important part of this story: More than half of global GDP is represented by this region. Half of global trade happens in this region. When you list the United States top 10 trading partners, half are APEC economies. We send more than half of our exports to this region. And over the next five years, nearly half of all the economic growth that will happen outside of the United States will happen in the Asia Pacific region. So if you put it all together, it is obvious why all of us, the private sector and the public sector, have a stake in the choices that we will make in the days ahead. But make no mistake, they are choices, and they will require the private sector and the public sector to work together like never before, in order to make the right choices.
As you know, when President Obama took office, the top priority had been creating new jobs and security for America’s middle class. And he also knows that can’t happen, and it won’t happen – and to the degree it’s happened, it hasn’t happened without your participation. What you sell, what you buy, where you invest – these are all major parts of the equation. And that’s why President Obama has worked hard to grow our exports by more than 50 percent since taking office, and two-way trade between the United States and other APEC economies has grown by nearly the same amount during the same period. Today, both American exports and American trade with APEC stands at record levels.
And when I became Secretary of State, I reminded my colleagues in the Senate during my confirmation hearing that foreign policy today is more than ever economic policy. National security is not just about the threats that we face – and we’re all familiar with those threats – but it’s about what we can do to prevent the seeds of tomorrow’s threats from being planted today. In a world where vast populations of young people are exploding on the scene with aspirations and demands, all interconnected by the social media, at that time anarchy and terror are sometimes offered as alternatives to the fulfillment of those jobs and opportunity, to the fulfillment of good governance.
And so we have a special challenge, all of us together – nobody’s exempt. There’s no business sector over here and government over here. It’s joined together, and it’s critical that we act together and work together. The consequences of failing to do so are staring at all of us – in Syria, Egypt, Afghanistan, Pakistan, and other parts of the world where young people – young people – remember what happened in Tunisia was a reflection of the aspirations of a fruit vendor who rebelled against corruption simply because he wanted to be able to live his life and sell his goods. What happened in Tahrir Square was without any religious overtones or connotations. It was again young people texting each other, using smart phones, talking about the possibilities of the future. And so it was in Syria, too, where young people wanted a voice in the future, and were met instead with violence.
So I would say to you that with all of their potential, it screams for the chance to fulfill their basic aspirations, and that is what we have to think about, even as we make bottom-line economic choices.
So it is clear: We have a stake in each other’s success. And that’s one of the reasons why multilateral fora like APEC and ASEAN are, frankly, so important in this modern context. And it’s why we are working to complete the Trans-Pacific Partnership negotiations by the end of this year. TPP, which is so critical – and to emphasize how critical it is, President Obama has sent our Secretary of Commerce Penny Pritzker, who is here sitting in the front, and our U.S. Trade Representative Ambassador Mike Froman sitting over here – because we understand how critical this is.
At its core, TPP is about generating growth for our economies and jobs for our people by unleashing a wave of investment and entrepreneurship all across the Asia Pacific. And at a time when we, all of us, seek strong and sustainable growth, TPP is creating a race to the top not to the bottom. It’s reaching for the highest standards of any trade agreement in history. And I will tell you that is good for businesses, it’s good for workers, it’s good for economics, it’s good for stability, it’s good for relationships between countries.
It’s important to remember that all the impressive statistics that we cite about this region and all the exciting projections about our shared future, they’re not just an accident. APEC economies are thriving because over the last 25 years, countries of the region lowered barriers on trade and investment, and that has accelerated growth as much as any other single thing.
APEC has played a critical role in that success by helping governments to align their standards and their practices, by lowering the barriers for women to be full participants, and by making it easier for businesses to reach across borders and find new markets. But the truth is, that is not enough. That alone will not produce success. In this constantly changing marketplace, governments have a huge responsibility to become even more agile, more responsible, and even more responsive to people and to the demands of the business community.
And that means we need to listen carefully to all of you who are on the front lines making the investments, making the decisions, and doing the business of creating businesses and jobs. I want to emphasize, we in governance need you, the leaders of commerce, we need your creativity as the drivers of gatherings like APEC and like the CEO Leaders Summit. And we need you to keep pushing governments forward and urging them to adapt.
Just last night I had the privilege of having dinner with a group of the CEOs, as many of you all did, and I listened to some of them express frustration with policy makers who accept, in principle, certain notions about how we should do business, but in practice often revert to other choices, including protectionism.
Protectionism, my friends, is not a problem because it shuts someone out of the market – though that is a problem. Protectionism is a problem because it stifles opportunity, because it narrows the market, because it crushes the energy of the marketplace, where new solutions are created through that energy. And history has proven again and again, a freer market creates more opportunity, more growth, more dynamism, more innovation, and no one knows that better, I think, than the CEOs who are gathered here.
But I also want to emphasize something. You’ve heard many speakers this week celebrate the economic vitality of this region, and well they should. But I hope it’s not a secret to say to you that there is nothing automatic that says that that will be the future. Nothing automatic. The prosperity that you share today and we are witnessing today did not arrive by accident, and neither is its continuance inevitable. You know as well as anyone that capital looking for a place to invest will seek either the fastest or the safest or a combination of the two, for the return on investment, regardless of geography, regardless of nationality. Capital wants certainty in the political process, and the battle for the future is a battle about competitiveness. And part of what makes a region competitive for investors, is obviously the consistent, predictable business climate that is conducive to success.
There is no question that the most successful markets of the next 25 years will be determined in large measure by how well they demonstrate openness, transparency, inclusivity, and accountability. Now I’m not talking just about high-minded principles. I’m talking about pragmatic choices that will define this region and other regions around the world. I’m talking about a path to long term, shared prosperity.
In your businesses, you all know that connectivity and innovation are the key to success. And you know the kind of environment that you need for innovation to be able to thrive. In the United States, I’m proud to say to you – not arrogantly, but just as a matter, I think, of a reality that the key to our productivity over the last 50 years has been the freedom of this innovation. The entrepreneurial spirit that allows somebody in America to take a risk and take a chance and to find a Google or an Apple or any other number of great businesses historically. That really is what has defined America, and it’s the centerpiece of our continued growth and success, even today. The gas that we are currently using from shale is the result of new technology, of pushing that curve.
And our world-changing businesses and our world-class universities – schools like the one that drew Wishnu across the Pacific to study in Los Angeles – these are a critical component of our economic foundation. It has been proven again and again that the next innovation in technology or the next great stride in medicine is most likely to be created in countries where citizens are free to share ideas, move capital around, free to try new things, free to fail, and where the laws are clear and equitable and where you know that the profits that flow from your ideas will be protected.
In order for businesses to fully unlock the promise of the great Asia Pacific market, or to realize the potential of a booming middle class a billion people strong, we need updated rules that protect not just the basic decisions about moving goods and services, but also protect the spirit of innovation on which the economies of the future are already being built.
We need modern rules for a changing road, rules that keep pace with the speed of today’s markets. We need norms that protect us from competitive disadvantages. We need a level playing field, predictability, transparency – so that when you invest and do business, you can have a reasonable expectation of the risks and rewards in front of you. And that is one of the promises of the TPP. And as I mentioned, it is about breaking down barriers and raising the bar, the standards, in a way that protects everybody and works for everybody.
You’ve all heard American officials talk about the importance of intellectual property. But the truth is that every economy that wants to be an innovation economy needs to defend their innovators. It’s not just Americans; every entrepreneur and business in the Asia Pacific needs to know that they can reap the benefits when they develop the next big thing. Economies that can make that guarantee are inevitably going to be stronger. And those that can’t make that guarantee, if your ideas are at risk of being stolen and your innovations can be ripped off, you will never reach the full potential of that country or economy.
As you know, the Asia Pacific region is increasingly reliant on complex supply chains. Think of an iPad that is designed in California, with its parts made in Taiwan, assembled in China, shipped through Singapore, loaded with apps from Korea, and sold in Jakarta. (Laughter.) All of the businesses and investors along the way – (applause) – that must be the crowd from Jakarta. (Laughter.) But all of the businesses and investors along the way clearly need the consistency and the certainty of transparent policies and predictable regulations. And I want to recognize the cutting-edge work of APEC, which is leading on supply-chain connectivity, all the while ensuring that the rules are made with input from the public and the stakeholders like you.
And that’s why I want to pay tribute to the synergy – I really felt it last night at dinner with the group that I had dinner with. There’s a great synergy here. And I think that it would be very valuable, frankly – one of the greatest assets of this gathering is the interaction between those of us who are privileged to be leaders in our countries, and those of you who lead in the business world.
On behalf of President Obama, I would urge APEC to find more ways to increase the interaction between the leaders here and the private sector, because I think that, in the end, will result in better policy faster. Beneath the surface of the success that we celebrate though, there is also an undercurrent of concern. And I would be remiss if I didn’t say something about it.
When we talk about rules, predictability, and the sanctity of contracts, we cannot forget that corruption corrodes our markets by raising the cost of doing business, it brews uncertainty, it creates inefficiency, it undermines good governance, and it frightens away capital. Put simply, it slows down growth. It doesn’t speed it up. It doesn’t expand growth, and it certainly doesn’t meet the standards of a world that is increasingly looking for more transparency and accountability. It creates a fragile system instead of a strong one.
President Obama and I commend APEC for its close work with the private sector to develop ethics for businesses large and small. And we also commend APEC’s recent work to shine a light on money laundering and illegal trade, including wildlife trafficking. Our economies – simple, bottom-line – our economies will not reach their full potential and we will not meet the demand of all those young people looking to us for good choices, for the future. We will not do that unless we eliminate criminal enterprises that undermine the legitimacy of what we are all trying to achieve, and the rules by which we are all trying to work.
APEC can advance its efforts by continuing to build capacity among customs officials, connecting law enforcement agencies, and reducing demand. And these days, if the governments don’t step up to tackle their responsibility, guess what? Citizens will. Because with the global use of social media, everybody in the world has an instant communications tool, everybody has a camera, and increasingly where I’ve seen people hold people accountable. Pictures, videos, stories that anyone with a video can share with millions of people in milliseconds will actually help to create accountability. There is a new cop on the beat.
Finally, I want to say one last word about another value that we need to defend. And it is one that, like the others that I mentioned, will actually benefit businesses and economies, and it’s one we can only address multilaterally, and some of you may think it’s strange that the Secretary of State of the United States picks this issue to say something about here at this APEC conference, but I think it is a moral responsibility, as well as a practical business one, and that is the urgency with which we must all come together to deal with the issue of climate change.
I know that when people talk about climate change, eyes still glaze over. And against all evidence, there are still some people who wonder if it’s real – and many wonder what they can actually do about it. Well, the fact is that the absence of a concerted global commitment to address this is inviting catastrophe. And for everybody’s business, it is inviting uncertainty.
For insurance companies, it is inviting insolvency. The recent United Nations report, with its nearly unanimous conclusion that human beings are to blame for what is happening, warns us of the consequences and makes clear our responsibility. As the world’s biggest consumers of energy and the biggest emitters of greenhouse gases, Pacific nations, including my own – we’re number two in the world – Pacific nations including my own have an enormous responsibility to lead a transformation that can not only save lives, but create millions of jobs.
I will just tell you, after 29 years of following this, that the extreme weather around the world – the flooding, the fires, the drought, the intense storms – are nothing compared to what will come if we don’t act. The reduction in some of our fisheries, the melt of ice, the rise of sea level, the Pacific islands that are threatened, all of this will present us with refugees such as we have never seen before, and with food shortages that may boggle the mind.
What’s astounding to me is this: Staring us in the face is an economic revolution that can solve all of this. There is a $6 trillion market out there for energy, with six billion to nine billion additional users over the next 20-40 years, and that is the marketplace of all time. The market that created the great wealth of the 1990s was a technology boom. It was a $1 trillion market, with one billion users. Compare that to the six trillion and six to nine billion users.
Energy is the solution to climate change. And the energy market is staring us in the face with an enormous amount of opportunity, and despite the amount of gas that is becoming available, we still have a responsibility, particularly those 20 major emitter nations, to deal with this issue. I think APEC understands that doing nothing is not an option, and that’s why it’s been a leader in increasing energy efficiency and reducing inefficient and market-distorting fossil fuel subsidies, and we need to continue to move in that direction. But this is a visible and tangible change in this part of the world, and tomorrow I look forward to meeting with President Yudhoyono and representatives of the Pacific Island countries and APEC leaders to talk about how we can ensure a more sustainable economic development program around us.
Yesterday, I had the chance to visit Benoa Port, where America is engaged in a public-private partnership with some fishermen here in Indonesia. And we’re engaged with universities – UCLA and three universities out here trying to build a sustainable fishery and sustainable future. These are fishermen who work for a Tampa Bay, Florida company. Fish are shipped from here every day, and it goes to Outback restaurants in America, to Walmart, and to Whole Foods. This is the world we’re living in today. But if there’s too much money chasing too few fish, and we don’t have sustainable practices, then we will obviously inherit crises beyond recognition. Sixty million people in Indonesia depend on fishing and on marine resources for their livelihood. And 60 million Indonesians get most of their protein from the sea.
So these are examples of the ways in which APEC and all of us can come together. This is the new norm. This is the future. This is the way the world is going to have to work in order to deal with these problems, but to grab the opportunities that are staring us in the face. In bringing together businesses and governments, NGOs, students, and all citizens to address these issues, APEC does the seemingly impossible: it makes one of the largest regions in the world smaller and more connected. And because APEC gives economies such an effective forum to talk about and tackle these challenges, and thanks in large part to the business leaders like you, tomorrow we will be able to innovate more imaginatively, think more freely, grow more equitably, consume more sustainably, partner more broadly, and create greater opportunities for this generation and the next. And by doing that, we will live up to our responsibilities. Thank you very, very much. (Applause.)
Monday, October 7, 2013
SEC ANNOUNCES CHARGES AUDITORS WITH FAILING TO COMPLY
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today announced charges against three auditors for violating federal securities laws or failing to comply with U.S. auditing standards during their audits and reviews of financial statements for publicly traded companies.
The actions are part of the agency’s ongoing effort to hold gatekeepers accountable for the important roles they play in the securities industry. Internally designated “Operation Broken Gate,” the Enforcement Division’s efforts seek to identify auditors who fail to carry out their duties and responsibilities consistent with professional standards. Gatekeepers that fail to comply with professional standards put investors at risk due to the possibility of undetected fraud or other financial misstatements.
The auditors charged in these latest SEC enforcement actions are certified public accountants Malcolm L. Pollard, who practices in Erie, Pa., and Wilfred W. Hanson and John Kinross-Kennedy, who live in the Irvine, Calif., area. Pollard and Hanson agreed to settle the respective actions against them and will be prohibited from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC. Kinross-Kennedy is litigating his action in a proceeding before an administrative law judge at the agency.
According to the SEC’s order instituting a settled administrative proceeding against Pollard and his firm also located in Erie, they engaged in improper professional conduct while auditing three companies that are empty shells or in the developmental stages. The companies’ public stock is quoted on the Over-the-Counter Bulletin Board. Pollard and his firm’s audits of the issuers were seriously deficient. They failed to include evidence of procedures performed or conclusions reached, and they failed to retain required documentation, perform the required engagement quality reviews, and consider fraud risks and obtain written management representations. Despite these audit failures, Pollard and his firm represented in each of their audit reports that they had conducted the audits in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB).
“These orders reinforce the importance of the audit process and the critical function the auditor plays,” said Antonia Chion, an Associate Director in the SEC’s Division of Enforcement. “Pollard and his firm repeatedly engaged in unreasonable conduct that resulted in violations of applicable professional standards. Their misconduct demonstrates a lack of competence to audit the financial statements of companies registered with the Commission.”
According to the SEC’s order instituting a litigated administrative proceeding against Kinross-Kennedy, he has been the independent accountant for as many as 23 public companies since 2009. The SEC’s Enforcement Division and Office of Chief Accountant allege that there were significant deficiencies in six of Kinross-Kennedy’s audit engagements, and that he failed to obtain engagement quality reviews (EQRs) for more than 30 other audit engagements. Kinross-Kennedy falsely represented that he conducted his audits in accordance with PCAOB standards.
According to the SEC’s order instituting a settled administrative proceeding against Hanson, he conducted EQRs for five of Kinross-Kennedy’s audits, but was not competent to serve as the engagement quality reviewer and failed to exercise due professional care. Accordingly, he failed to conduct multiple EQRs in accordance with PCAOB standards.
“Engagement quality reviews are intended to be a meaningful check on the audit engagement team’s work, and when conducted properly they improve the reliability of a public company’s financial statements,” said David Peavler, Associate Regional Director for Enforcement in the SEC’s Fort Worth Regional Office. “Kinross-Kennedy failed to exercise due professional care on fundamental aspects of the audits by, for example, using outdated audit templates and failing to adapt to changes in auditing standards. He also retained Hanson to conduct engagement quality reviews when Hanson did not have the recent experience necessary to serve as a competent engagement partner.”
By issuing inaccurate audit reports, the SEC’s order finds that Pollard and his firm violated Securities Exchange Act of 1934 Rule 2-02 of Regulation S-X. The SEC’s order also finds that Pollard and his firm violated Exchange Act Section 10A(a)(1) and (b)(1) by failing to have procedures in place to detect, investigate, and report illegal acts. In agreeing to settle the charges without admitting or denying the SEC’s findings, Pollard and his firm consent to the entry of an order to cease and desist from committing or causing any violations of Exchange Act Section 10A(a)(1) and (b)(1) and Rule 2-02 of Regulation S-X. Pollard and his firm also consent to an order suspending their right to appear and or practice before the Commission as an accountant.
The SEC’s order against Kinross-Kennedy alleges violations of Sections 10A(j) and 10A(k) of the Exchange Act and Rules 2-02and 2-07 of Regulation S-X, and improper professional conduct under Rule 102(e)(1)(ii) and (iii) of the Commission’s Rules of Practice and Section 4(C) of the Exchange Act.
The SEC order finds that Hanson engaged in improper professional conduct under Rule 102(e)(1)(ii) and Rule 102(e)(1)(iv)(B)(2) of the Commission’s Rules of Practice and Section 4(C) of the Exchange Act. Without admitting or denying the SEC’s findings, Hanson consents to an order suspending him from practicing before the Commission as an accountant.
The SEC’s investigation of Pollard was conducted by Peter Rosario and Scott Lowry, and supervised by Deborah Tarasevich. The SEC’s investigation of Kinross-Kennedy and Hanson was conducted by Ronda Blair and David King, and supervised by Barbara Gunn.
The Securities and Exchange Commission today announced charges against three auditors for violating federal securities laws or failing to comply with U.S. auditing standards during their audits and reviews of financial statements for publicly traded companies.
The actions are part of the agency’s ongoing effort to hold gatekeepers accountable for the important roles they play in the securities industry. Internally designated “Operation Broken Gate,” the Enforcement Division’s efforts seek to identify auditors who fail to carry out their duties and responsibilities consistent with professional standards. Gatekeepers that fail to comply with professional standards put investors at risk due to the possibility of undetected fraud or other financial misstatements.
The auditors charged in these latest SEC enforcement actions are certified public accountants Malcolm L. Pollard, who practices in Erie, Pa., and Wilfred W. Hanson and John Kinross-Kennedy, who live in the Irvine, Calif., area. Pollard and Hanson agreed to settle the respective actions against them and will be prohibited from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC. Kinross-Kennedy is litigating his action in a proceeding before an administrative law judge at the agency.
According to the SEC’s order instituting a settled administrative proceeding against Pollard and his firm also located in Erie, they engaged in improper professional conduct while auditing three companies that are empty shells or in the developmental stages. The companies’ public stock is quoted on the Over-the-Counter Bulletin Board. Pollard and his firm’s audits of the issuers were seriously deficient. They failed to include evidence of procedures performed or conclusions reached, and they failed to retain required documentation, perform the required engagement quality reviews, and consider fraud risks and obtain written management representations. Despite these audit failures, Pollard and his firm represented in each of their audit reports that they had conducted the audits in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB).
“These orders reinforce the importance of the audit process and the critical function the auditor plays,” said Antonia Chion, an Associate Director in the SEC’s Division of Enforcement. “Pollard and his firm repeatedly engaged in unreasonable conduct that resulted in violations of applicable professional standards. Their misconduct demonstrates a lack of competence to audit the financial statements of companies registered with the Commission.”
According to the SEC’s order instituting a litigated administrative proceeding against Kinross-Kennedy, he has been the independent accountant for as many as 23 public companies since 2009. The SEC’s Enforcement Division and Office of Chief Accountant allege that there were significant deficiencies in six of Kinross-Kennedy’s audit engagements, and that he failed to obtain engagement quality reviews (EQRs) for more than 30 other audit engagements. Kinross-Kennedy falsely represented that he conducted his audits in accordance with PCAOB standards.
According to the SEC’s order instituting a settled administrative proceeding against Hanson, he conducted EQRs for five of Kinross-Kennedy’s audits, but was not competent to serve as the engagement quality reviewer and failed to exercise due professional care. Accordingly, he failed to conduct multiple EQRs in accordance with PCAOB standards.
“Engagement quality reviews are intended to be a meaningful check on the audit engagement team’s work, and when conducted properly they improve the reliability of a public company’s financial statements,” said David Peavler, Associate Regional Director for Enforcement in the SEC’s Fort Worth Regional Office. “Kinross-Kennedy failed to exercise due professional care on fundamental aspects of the audits by, for example, using outdated audit templates and failing to adapt to changes in auditing standards. He also retained Hanson to conduct engagement quality reviews when Hanson did not have the recent experience necessary to serve as a competent engagement partner.”
By issuing inaccurate audit reports, the SEC’s order finds that Pollard and his firm violated Securities Exchange Act of 1934 Rule 2-02 of Regulation S-X. The SEC’s order also finds that Pollard and his firm violated Exchange Act Section 10A(a)(1) and (b)(1) by failing to have procedures in place to detect, investigate, and report illegal acts. In agreeing to settle the charges without admitting or denying the SEC’s findings, Pollard and his firm consent to the entry of an order to cease and desist from committing or causing any violations of Exchange Act Section 10A(a)(1) and (b)(1) and Rule 2-02 of Regulation S-X. Pollard and his firm also consent to an order suspending their right to appear and or practice before the Commission as an accountant.
The SEC’s order against Kinross-Kennedy alleges violations of Sections 10A(j) and 10A(k) of the Exchange Act and Rules 2-02and 2-07 of Regulation S-X, and improper professional conduct under Rule 102(e)(1)(ii) and (iii) of the Commission’s Rules of Practice and Section 4(C) of the Exchange Act.
The SEC order finds that Hanson engaged in improper professional conduct under Rule 102(e)(1)(ii) and Rule 102(e)(1)(iv)(B)(2) of the Commission’s Rules of Practice and Section 4(C) of the Exchange Act. Without admitting or denying the SEC’s findings, Hanson consents to an order suspending him from practicing before the Commission as an accountant.
The SEC’s investigation of Pollard was conducted by Peter Rosario and Scott Lowry, and supervised by Deborah Tarasevich. The SEC’s investigation of Kinross-Kennedy and Hanson was conducted by Ronda Blair and David King, and supervised by Barbara Gunn.
WOMAN CHARGED IN PONZI SCHEME THAT TARGETED MEMBERS OF COLOMBIAN-AMERICAN
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Securities and Exchange Commission today charged a woman living in South Florida with defrauding investors in a Ponzi scheme and affinity fraud that targeted the local Colombian-American community and involved purported investments in immigration bail bonds.
The SEC alleges that Jenny E. Coplan told investors that her company Immigration General Services operated through an investment broker that would invest the funds she raised in immigration bail bonds and turn a profit. Coplan promised interest payments ranging from 60 to 108 percent annually. She also assured investors that their money was safe because it was insured by the Federal Deposit Insurance Corporation (FDIC). However, Coplan never placed investor funds with any investment broker, and their money was never FDIC insured. Instead, she paid supposed profits to earlier investors using funds from newer investors in classic Ponzi fashion, and she stole approximately $878,000 of investor money for her own personal use.
“Coplan deliberately misled investors into believing their investments were safe and secure when in reality she was lining her own pockets,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “Her predatory scheme exploited the trust and friendship of members of her own community by using empty promises to convince them to trust her with their hard-earned savings.”
In a parallel action, the U.S. Attorney’s Office for the Southern District of Florida today announced criminal charges against Coplan.
According to the SEC’s complaint filed in federal court in Miami, Coplan solicited investors through personal conversations over the phone and in person, and many of her targets were Colombian-Americans and Colombians living in Florida. She raised approximately $4 million from more than 90 investors in Florida, California, Georgia, Texas, Canada, and Colombia.
The SEC alleges that Coplan created fictitious investor statements that she disseminated to hide her misuse of the money and lead investors to believe their investments were growing. Furthermore, Coplan e-mailed one investor two purported FDIC statements reflecting insured balances of $107,000 and $250,000, lulling the investor to think the investment was particularly safe. When her scheme began to unravel in 2011, Coplan blamed the purported investment broker for the delay in interest payments to investors, telling them the broker held the investors’ funds to cover deficiencies because Coplan had failed to meet certain monthly investment quotas. Even though Immigration General Services had virtually no funds in its bank accounts and was unable to honor investors’ increasing redemption requests, Coplan tried in late 2011 to create a false appearance that the company was back to business as usual. She issued non-sufficient fund checks to investors purporting to be their monthly profits. Through her continued misstatements, Coplan was able to raise another $578,000 from new investors before the scheme collapsed entirely.
The SEC’s complaint against Coplan, who lives in Tamarac, Fla., seeks disgorgement of ill-gotten gains, financial penalties, and permanent injunctions.
The SEC’s investigation was conducted by Jorge L. Riera and Karaz S. Zaki in the Miami office and supervised by Elisha L. Frank. The SEC’s litigation will be led by Amie Riggle Berlin. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of Florida and the Federal Bureau of Investigation.
The Securities and Exchange Commission today charged a woman living in South Florida with defrauding investors in a Ponzi scheme and affinity fraud that targeted the local Colombian-American community and involved purported investments in immigration bail bonds.
The SEC alleges that Jenny E. Coplan told investors that her company Immigration General Services operated through an investment broker that would invest the funds she raised in immigration bail bonds and turn a profit. Coplan promised interest payments ranging from 60 to 108 percent annually. She also assured investors that their money was safe because it was insured by the Federal Deposit Insurance Corporation (FDIC). However, Coplan never placed investor funds with any investment broker, and their money was never FDIC insured. Instead, she paid supposed profits to earlier investors using funds from newer investors in classic Ponzi fashion, and she stole approximately $878,000 of investor money for her own personal use.
“Coplan deliberately misled investors into believing their investments were safe and secure when in reality she was lining her own pockets,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “Her predatory scheme exploited the trust and friendship of members of her own community by using empty promises to convince them to trust her with their hard-earned savings.”
In a parallel action, the U.S. Attorney’s Office for the Southern District of Florida today announced criminal charges against Coplan.
According to the SEC’s complaint filed in federal court in Miami, Coplan solicited investors through personal conversations over the phone and in person, and many of her targets were Colombian-Americans and Colombians living in Florida. She raised approximately $4 million from more than 90 investors in Florida, California, Georgia, Texas, Canada, and Colombia.
The SEC alleges that Coplan created fictitious investor statements that she disseminated to hide her misuse of the money and lead investors to believe their investments were growing. Furthermore, Coplan e-mailed one investor two purported FDIC statements reflecting insured balances of $107,000 and $250,000, lulling the investor to think the investment was particularly safe. When her scheme began to unravel in 2011, Coplan blamed the purported investment broker for the delay in interest payments to investors, telling them the broker held the investors’ funds to cover deficiencies because Coplan had failed to meet certain monthly investment quotas. Even though Immigration General Services had virtually no funds in its bank accounts and was unable to honor investors’ increasing redemption requests, Coplan tried in late 2011 to create a false appearance that the company was back to business as usual. She issued non-sufficient fund checks to investors purporting to be their monthly profits. Through her continued misstatements, Coplan was able to raise another $578,000 from new investors before the scheme collapsed entirely.
The SEC’s complaint against Coplan, who lives in Tamarac, Fla., seeks disgorgement of ill-gotten gains, financial penalties, and permanent injunctions.
The SEC’s investigation was conducted by Jorge L. Riera and Karaz S. Zaki in the Miami office and supervised by Elisha L. Frank. The SEC’s litigation will be led by Amie Riggle Berlin. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of Florida and the Federal Bureau of Investigation.
COMEX FLOOR BROKER CHARGED BY CFTC WITH FAILING TO PRODUCE REGISTERED DOCUMENTS
FROM: COMMODITY FUTURES TRADING COMMISSIONS
CFTC Charges Registered COMEX Floor Broker Dominick Anthony Cognata with Failing to Produce Required Documents in Response to a CFTC Subpoena and Seeks to Revoke His Registration
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today filed two separate administrative proceedings against Dominick Anthony Cognata, a registered COMEX floor broker. In one proceeding, a Complaint charges Cognata with failing to produce, or otherwise make available, to the CFTC certain records relating to his brokerage activities, in violation of Section 4g of the Commodity Exchange Act (CEA) and CFTC Regulations 1.31(a) and 1.35(a). In the other proceeding, a Notice of Intent to Revoke (Notice) seeks to revoke Cognata’s registration as a floor broker, under Sections 8a(3)(M) and 8a(4) of the CEA.
As alleged in the CFTC Complaint, on or about August 14, 2012, the CFTC’s Division of Enforcement, as part of an ongoing investigation, issued a lawfully-authorized subpoena to Cognata for the production of documents, including trading cards, order tickets, and other documents relating to his trading of gold or silver futures or options on futures, which were required to be made, kept and produced by floor brokers pursuant to the CEA and CFTC Regulations. To date, Cognata has failed to produce any documents in response to the subpoena, according to the Complaint. As a result of Cognata’s violations, the CFTC is seeking a civil monetary penalty and an Order that Cognata cease and desist from violating the provisions of the CEA and CFTC Regulations, as charged.
In the Notice, the CFTC is seeking the revocation of Cognata’s registration as a floor broker for “good cause.” It is alleged that the facts constituting “good cause” include, in addition to Cognata’s failure to produce records to the CFTC, the settlements and findings in two exchange disciplinary actions against Cognata since 2011. In one exchange disciplinary action, the Notice alleges, pursuant to an offer of settlement, a panel of the COMEX Business Conduct Committee (the Panel) found that on various dates from October through December 2008, Cognata engaged in noncompetitive, prearranged trades of silver and gold options. In the other exchange disciplinary action, the Notice alleges, pursuant to an offer of settlement, the Panel found that on three occasions in June and July 2011, Cognata prearranged trades in silver options for the purpose of receiving money passes from other COMEX members. In both disciplinary actions, Cognata neither admitted nor denied any rule violations in his offers of settlement.
CFTC Division of Enforcement staff members responsible for this matter include K. Brent Tomer, R. Stephen Painter, Jr., Patrick Daly, Trevor Kokal, Sheila Marhamati, Elizabeth Brennan, Steven I. Ringer, Lenel Hickson, Stephen J. Obie, Manal Sultan, and Vincent A. McGonagle.
CFTC Charges Registered COMEX Floor Broker Dominick Anthony Cognata with Failing to Produce Required Documents in Response to a CFTC Subpoena and Seeks to Revoke His Registration
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today filed two separate administrative proceedings against Dominick Anthony Cognata, a registered COMEX floor broker. In one proceeding, a Complaint charges Cognata with failing to produce, or otherwise make available, to the CFTC certain records relating to his brokerage activities, in violation of Section 4g of the Commodity Exchange Act (CEA) and CFTC Regulations 1.31(a) and 1.35(a). In the other proceeding, a Notice of Intent to Revoke (Notice) seeks to revoke Cognata’s registration as a floor broker, under Sections 8a(3)(M) and 8a(4) of the CEA.
As alleged in the CFTC Complaint, on or about August 14, 2012, the CFTC’s Division of Enforcement, as part of an ongoing investigation, issued a lawfully-authorized subpoena to Cognata for the production of documents, including trading cards, order tickets, and other documents relating to his trading of gold or silver futures or options on futures, which were required to be made, kept and produced by floor brokers pursuant to the CEA and CFTC Regulations. To date, Cognata has failed to produce any documents in response to the subpoena, according to the Complaint. As a result of Cognata’s violations, the CFTC is seeking a civil monetary penalty and an Order that Cognata cease and desist from violating the provisions of the CEA and CFTC Regulations, as charged.
In the Notice, the CFTC is seeking the revocation of Cognata’s registration as a floor broker for “good cause.” It is alleged that the facts constituting “good cause” include, in addition to Cognata’s failure to produce records to the CFTC, the settlements and findings in two exchange disciplinary actions against Cognata since 2011. In one exchange disciplinary action, the Notice alleges, pursuant to an offer of settlement, a panel of the COMEX Business Conduct Committee (the Panel) found that on various dates from October through December 2008, Cognata engaged in noncompetitive, prearranged trades of silver and gold options. In the other exchange disciplinary action, the Notice alleges, pursuant to an offer of settlement, the Panel found that on three occasions in June and July 2011, Cognata prearranged trades in silver options for the purpose of receiving money passes from other COMEX members. In both disciplinary actions, Cognata neither admitted nor denied any rule violations in his offers of settlement.
CFTC Division of Enforcement staff members responsible for this matter include K. Brent Tomer, R. Stephen Painter, Jr., Patrick Daly, Trevor Kokal, Sheila Marhamati, Elizabeth Brennan, Steven I. Ringer, Lenel Hickson, Stephen J. Obie, Manal Sultan, and Vincent A. McGonagle.
Sunday, October 6, 2013
PENTAGON STATEMENT ON CAPTURE OF ABU ANAS AL LIBI
FROM: U.S. DEPARTMENT OF DEFENSE
Statement by Pentagon Press Secretary George Little on the Capture of Abu
On Oct.5, the Department of Defense, acting under military authorities, conducted an operation to apprehend longtime Al Qaeda member Abu Anas al Libi in Libya. He is currently lawfully detained under the law of war in a secure location outside of Libya.
Wherever possible, our first priority is and always has been to apprehend terrorist suspects, and to preserve the opportunity to elicit valuable intelligence that can help us protect the American people.
Abu Anas al Libi has been indicted in the Southern District of New York in connection with his alleged role in Al Qaeda's conspiracy to kill U.S.nationals and to conduct attacks against U.S. interests worldwide, which included Al Qaeda plots to attack U.S. forces stationed in Saudi Arabia,Yemen, and Somalia, as well as the U.S. embassies in Dar es Salaam, Tanzania, and Nairobi, Kenya.
The successful capture operation was made possible by superb work and coordination across our national security agencies and the intelligence community, and was approved by President Obama. No American personnel or civilians on the ground were injured during the operation. These actions are a clear sign that the United States is committed to using all the tools at our disposal to bring to justice those who commit terrorist acts against Americans.
Statement by Pentagon Press Secretary George Little on the Capture of Abu
On Oct.5, the Department of Defense, acting under military authorities, conducted an operation to apprehend longtime Al Qaeda member Abu Anas al Libi in Libya. He is currently lawfully detained under the law of war in a secure location outside of Libya.
Wherever possible, our first priority is and always has been to apprehend terrorist suspects, and to preserve the opportunity to elicit valuable intelligence that can help us protect the American people.
Abu Anas al Libi has been indicted in the Southern District of New York in connection with his alleged role in Al Qaeda's conspiracy to kill U.S.nationals and to conduct attacks against U.S. interests worldwide, which included Al Qaeda plots to attack U.S. forces stationed in Saudi Arabia,Yemen, and Somalia, as well as the U.S. embassies in Dar es Salaam, Tanzania, and Nairobi, Kenya.
The successful capture operation was made possible by superb work and coordination across our national security agencies and the intelligence community, and was approved by President Obama. No American personnel or civilians on the ground were injured during the operation. These actions are a clear sign that the United States is committed to using all the tools at our disposal to bring to justice those who commit terrorist acts against Americans.
FTC RETURNS MONEY TO VICTIMS OF PHONE BILL CRAMMING SCAM
FROM: FEDERAL TRADE COMMISSION
FTC Returns More Than $5.4 Million to Victims of Massive Cramming Scam
The Federal Trade Commission is mailing 139,357 checks totaling more than $5.4 million to consumers and businesses who were victimized by a massive fraudulent operation that placed unwanted charges on their telephone bills.
In 2010, the FTC stopped the scam, which was led by an internet services company known as Inc21. The company enlisted a number of third-party billing aggregators to place charges on phone bills. In most cases, the victims were either never contacted by the company, were deceived about why they had been contacted, or in fact declined the services for which they were eventually billed. The FTC’s Criminal Liaison Unit cooperated with criminal law enforcement partners at the Department of Justice, the Internal Revenue Service, and United States Postal Inspection Service, leading to the prosecution and conviction of Inc21’s owners.
Consumers who receive the checks from the FTC’s refund administrator should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed. The average amount of the refunds will be approximately $39, however amounts will vary based on how much money was lost.
The checks will be mailed by Epiq Systems, Inc., who is the redress administrator for this matter. Consumers with questions about the redress, can contact Epiq Systems directly at 1-866-328-1992. More information about the FTC’s refunds program is available on the FTC’s website.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
FTC Returns More Than $5.4 Million to Victims of Massive Cramming Scam
The Federal Trade Commission is mailing 139,357 checks totaling more than $5.4 million to consumers and businesses who were victimized by a massive fraudulent operation that placed unwanted charges on their telephone bills.
In 2010, the FTC stopped the scam, which was led by an internet services company known as Inc21. The company enlisted a number of third-party billing aggregators to place charges on phone bills. In most cases, the victims were either never contacted by the company, were deceived about why they had been contacted, or in fact declined the services for which they were eventually billed. The FTC’s Criminal Liaison Unit cooperated with criminal law enforcement partners at the Department of Justice, the Internal Revenue Service, and United States Postal Inspection Service, leading to the prosecution and conviction of Inc21’s owners.
Consumers who receive the checks from the FTC’s refund administrator should deposit or cash them within 60 days of the mailing date. The FTC never requires consumers to pay money or to provide information before refund checks can be cashed. The average amount of the refunds will be approximately $39, however amounts will vary based on how much money was lost.
The checks will be mailed by Epiq Systems, Inc., who is the redress administrator for this matter. Consumers with questions about the redress, can contact Epiq Systems directly at 1-866-328-1992. More information about the FTC’s refunds program is available on the FTC’s website.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.
FDA GRANTS ACCELERATED APPROVAL TO PERJETA FOR BREAST CANCER
FROM: U.S. FOOD AND DRUG ADMINISTRATION
The U.S. Food and Drug Administration today granted accelerated approval to Perjeta (pertuzumab) as part of a complete treatment regimen for patients with early stage breast cancer before surgery (neoadjuvant setting). Perjeta is the first FDA-approved drug for the neoadjuvant treatment of breast cancer.
Perjeta was approved in 2012 for the treatment of patients with advanced or late-stage (metastatic) HER2-positive breast cancer. HER2-positive breast cancers have increased amounts of the HER2 protein that contributes to cancer cell growth and survival.
Perjeta’s new use is intended for patients with HER2-positive, locally advanced, inflammatory or early stage breast cancer (tumor greater than 2 cm in diameter or with positive lymph nodes) who are at high risk of having their cancer return or spread (metastasize) or of dying from the disease. It is to be used in combination with trastuzumab and other chemotherapy prior to surgery and, depending upon the treatment regimen used, may be followed by chemotherapy after surgery. Following surgery, patients should continue to receive trastuzumab to complete one year of treatment.
The U.S. Food and Drug Administration today granted accelerated approval to Perjeta (pertuzumab) as part of a complete treatment regimen for patients with early stage breast cancer before surgery (neoadjuvant setting). Perjeta is the first FDA-approved drug for the neoadjuvant treatment of breast cancer.
Perjeta was approved in 2012 for the treatment of patients with advanced or late-stage (metastatic) HER2-positive breast cancer. HER2-positive breast cancers have increased amounts of the HER2 protein that contributes to cancer cell growth and survival.
Perjeta’s new use is intended for patients with HER2-positive, locally advanced, inflammatory or early stage breast cancer (tumor greater than 2 cm in diameter or with positive lymph nodes) who are at high risk of having their cancer return or spread (metastasize) or of dying from the disease. It is to be used in combination with trastuzumab and other chemotherapy prior to surgery and, depending upon the treatment regimen used, may be followed by chemotherapy after surgery. Following surgery, patients should continue to receive trastuzumab to complete one year of treatment.
U.S.-VIETNAM JOINT STATEMENT ON SECURITY AND DEFENSE DIALOGUE
FROM: U.S.STATE DEPARTMENT
Joint Statement on the Sixth U.S.-Vietnam Political, Security, and Defense Dialogue
Media Note
Office of the Spokesperson
Washington, DC
October 1, 2013
The text of the following statement was released by the Governments of the United States of America and Vietnam on the occasion of the Sixth U.S.-Vietnam Political, Security, and Defense Dialogue.
Begin Text:
Acting Assistant Secretary of State for Political-Military Affairs Tom Kelly welcomed Vice Foreign Minister Ha Kim Ngoc to the Department of State in Washington, DC, on October 1, 2013 for the sixth annual U.S.-Vietnam Political, Security, and Defense Dialogue to discuss a broad range of bilateral and regional security issues of mutual concern. This meeting follows the announcement by President Obama and President Sang this past July for establishing a new Comprehensive Partnership between the two nations, and reflects increasing cooperation between the United States and Vietnam.
During this Dialogue, Acting Assistant Secretary Kelly and Vice Foreign Minister Ngoc noted with satisfaction the progress that has been made in recent years in many areas of the bilateral relationship, helping to elevate the framework of friendly and mutually beneficial cooperation between the two countries. Regarding the multilateral arena, the two sides exchanged ideas on promotion of U.S.-ASEAN cooperation and issues concerning the ASEAN Regional Forum and the East Asia Summit. Both sides noted with satisfaction the progress in negotiating a Civil Nuclear Agreement, and pledged to make progress on further nonproliferation measures.
The participants in the meeting today discussed ways to further strengthen cooperation in multiple areas, including counterterrorism, counternarcotics, human trafficking, cyber, and law enforcement issues. The two delegations discussed further defense and security cooperation under the framework of the 2011 Memorandum of Understanding on Advancing Bilateral Defense Cooperation. Both parties agreed to continue to expand cooperation in maritime law enforcement, particularly on developing capabilities to address disaster response and search and rescue. The two sides pledged to continue cooperation in resolving war legacy issues such as POW/MIA accounting, dioxin and Agent Orange, and unexploded ordnance.
During this Dialogue, the United States and Vietnam reaffirmed their commitment to strengthening the bilateral relationship based on friendship, mutual respect, and shared commitments to ensure a peaceful, stable, prosperous, and secure Asia-Pacific region. The two sides affirmed that cooperation with respect to international and regional security challenges is a natural evolution of mutual and maturing political, economic, cultural, and people-to-people ties, and helps to cement the economic prosperity of both countries.
Taking place in a spirit of growing trust and deepening friendship, the Dialogue helped to chart the course for the new Comprehensive Partnership between our two countries. The seventh Dialogue will take place in Hanoi in 2014.
Joint Statement on the Sixth U.S.-Vietnam Political, Security, and Defense Dialogue
Media Note
Office of the Spokesperson
Washington, DC
October 1, 2013
The text of the following statement was released by the Governments of the United States of America and Vietnam on the occasion of the Sixth U.S.-Vietnam Political, Security, and Defense Dialogue.
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Acting Assistant Secretary of State for Political-Military Affairs Tom Kelly welcomed Vice Foreign Minister Ha Kim Ngoc to the Department of State in Washington, DC, on October 1, 2013 for the sixth annual U.S.-Vietnam Political, Security, and Defense Dialogue to discuss a broad range of bilateral and regional security issues of mutual concern. This meeting follows the announcement by President Obama and President Sang this past July for establishing a new Comprehensive Partnership between the two nations, and reflects increasing cooperation between the United States and Vietnam.
During this Dialogue, Acting Assistant Secretary Kelly and Vice Foreign Minister Ngoc noted with satisfaction the progress that has been made in recent years in many areas of the bilateral relationship, helping to elevate the framework of friendly and mutually beneficial cooperation between the two countries. Regarding the multilateral arena, the two sides exchanged ideas on promotion of U.S.-ASEAN cooperation and issues concerning the ASEAN Regional Forum and the East Asia Summit. Both sides noted with satisfaction the progress in negotiating a Civil Nuclear Agreement, and pledged to make progress on further nonproliferation measures.
The participants in the meeting today discussed ways to further strengthen cooperation in multiple areas, including counterterrorism, counternarcotics, human trafficking, cyber, and law enforcement issues. The two delegations discussed further defense and security cooperation under the framework of the 2011 Memorandum of Understanding on Advancing Bilateral Defense Cooperation. Both parties agreed to continue to expand cooperation in maritime law enforcement, particularly on developing capabilities to address disaster response and search and rescue. The two sides pledged to continue cooperation in resolving war legacy issues such as POW/MIA accounting, dioxin and Agent Orange, and unexploded ordnance.
During this Dialogue, the United States and Vietnam reaffirmed their commitment to strengthening the bilateral relationship based on friendship, mutual respect, and shared commitments to ensure a peaceful, stable, prosperous, and secure Asia-Pacific region. The two sides affirmed that cooperation with respect to international and regional security challenges is a natural evolution of mutual and maturing political, economic, cultural, and people-to-people ties, and helps to cement the economic prosperity of both countries.
Taking place in a spirit of growing trust and deepening friendship, the Dialogue helped to chart the course for the new Comprehensive Partnership between our two countries. The seventh Dialogue will take place in Hanoi in 2014.
IVORY KINGPIN ARRESTED BY TOGOLESE AUTHORITIES
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| Confiscated ivory tusks. Credit: U.S. State Department |
IN THE NEWS: Togo Authorities Arrest Ivory Kingpin in Lomé
Date: 09/27/2013 Description: Confiscated ivory tusks.
Earlier this summer, Togolese law enforcement authorities arrested suspected wildlife trafficker Emile N’Bouké and seized 700 kg of ivory. Recently featured on ABC’s Nightline, N’Bouké who is alleged to be a major ivory dealer in West Africa believed to be responsible for two ivory shipments totaling more than 6.2 tons that were seized by authorities in the last seven months. Although there are no elephants in Togo, the small West African nation is a key shipping hub for international wildlife traffickers elsewhere on the continent.
INL is assisting in global efforts to combat trafficking of wildlife and wildlife parts, including through $10 million in related assistance for Kenya, South Africa, and regional Africa programs that President Obama announced during his visit to Tanzania earlier this year.
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