Friday, June 20, 2014

SECRETARY HAGEL, GERMAN'S MINISTER OF DEFENSE LEYEN DISCUSS MUTUAL INTEREST

FROM:  U.S. DEFENSE DEPARTMENT  

Right:  Secretary of Defense Chuck Hagel hosts an honor cordon to welcome Germany's Minister of Defense Ursula von der Leyen to the Pentagon, June 19, 2014. The two leaders met to discuss matters of mutual national interest. DOD Photo by Glenn Fawcett.  
Hagel, German Defense Minister Discuss NATO, Iraq
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, June 19, 2014 – Defense Secretary Chuck Hagel and German Defense Minister Ursula von der Leyen met this morning at the Pentagon, reaffirming the two nations’ strong friendship and alliance, Pentagon Press Secretary Navy Rear Adm. John Kirby said in a statement.

The leaders discussed security challenges, ranging from post-2014 commitments in Afghanistan to recent developments in Iraq, Syria and Ukraine, Kirby said.
"Secretary Hagel and Minister von der Leyen discussed both nations' efforts to reinforce NATO and to reassure our NATO allies since Russia's aggressive actions in Ukraine,” he said, adding that such reassurance includes ongoing air, land and sea measures by the U.S. military and other NATO members.
The measures include President Barack Obama's June 3 announcement of the European Reassurance Initiative of up to $1 billion to fund increased rotational presence and exercises across Europe, and Germany's contributions, which in September will include support to NATO's Baltic air policing mission, Kirby said.

Hagel also thanked von der Leyen for Germany's contributions and sacrifices in Afghanistan.

“Germany has been the third largest contributor of troops and the leader of Regional Command North,” the press secretary said. “We welcome Germany's willingness to continue leading Regional Command North as part of NATO's post-2014 Resolute Support mission.”

Hagel and von der Leyen also discussed the upcoming NATO Summit, to be held Sept. 4-5 in Wales.

Kirby said the United States and Germany count on each other to be credible, capable partners as leaders in the transatlantic alliance and the global community.
“As the crises in Iraq, Syria and Ukraine remind us,” he added, “our leadership roles require investment in ready, modern, agile militaries.”

He added, “Both leaders recognized the importance of investing in capabilities that will strengthen our collective security.”

Both also agreed that, as the NATO Summit approaches, they must renew their commitments to transatlantic security, Kirby said.

After their meeting, Hagel left the Pentagon for the White House where the president met with members of his national security team in the Situation Room ahead of Obama’s statement on the U.S. response to violence in Iraq.
Von der Leyen, who Hagel invited to Washington in February during the Munich Security Conference, held a press conference on the steps of the Pentagon’s River entrance.

The German defense minister characterized her conversation with Hagel as “trustful and constructive,” and on the crisis in Iraq she said, “For the long term we need a sustainable solution for the whole region. That is, we have to integrate the diplomatic and political solution from neighboring countries of the whole region.”

AG HOLDER'S REMARKS ON HEROIN AND PRESCRIPTION DRUGS

FROM:  U.S. JUSTICE DEPARTMENT 
Attorney General Holder Delivers at the ONDCP Summit on Heroin and Prescription Drugs
~ Thursday, June 19, 2014

Thank you, Michael [Botticelli], for those kind words; for your more than two decades of service and leadership in confronting the crisis posed by substance use disorders; and for all that you and your colleagues in the Office of National Drug Control Policy do every day to forge safer and healthier communities.

 It’s a pleasure to help welcome this distinguished group to the White House for today’s important summit.  And it’s a privilege to stand with so many experts, advocates, and extraordinary leaders from America’s law enforcement, public health, and education communities.  The dedication that you have shown to confronting heroin and prescription drug abuse – not only by participating in events like this one, but through your tireless work across the country – is not only inspiring; it makes a tremendous, positive difference.  Your efforts enable us to improve and save countless lives.  And your guidance and expertise – when it comes to addressing the drug abuse epidemic holistically and keeping dangerous substances off of our streets – comes at a time when much is at stake, and this work could not be more important.

You know as well as anyone that the challenges we face are daunting.  You’ve shown us that, as we seek to address the problem of substance abuse, it makes sense to focus on the most dangerous types of drugs.  And right now, few substances are more lethal than prescription opioids and heroin.

Between 2006 and 2010 – across America – heroin deaths increased by 45 percent.  That’s a shocking statistic, but it’s only one of many clear indications that we’re up against an urgent public safety and public health crisis – one that affects Americans in every state, in every region, and from every background and walk of life.  We’ve learned from scientific studies, treatment providers, victims, and investigations that the cycle of heroin abuse commonly begins with prescription opioid abuse.  And this can make the problem exceedingly difficult to track and to overcome.

But that’s exactly why your participation – and your leadership – is more vital today than ever before.  As federal officials, law enforcement officers, medical providers, and prevention and treatment experts, each of you stands on the front lines of our effort to protect this nation from the devastating impact of illegal drug use.  And together – through collaboration and cooperation among stakeholders at every level – we’re making significant strides to build a better, brighter, and more secure future for ourselves and our children.

In recent years, we have targeted the illegal supply chain.  We’ve taken steps to prevent doctor-shopping by drug users and distributors.  We’ve disrupted pill mills masquerading as pain management clinics around the country.  We’ve developed and advocated for cutting-edge public health solutions on the state, local, and community levels.  And as we speak – under the leadership of Acting Director Botticelli and his colleagues in ONDCP – we’re implementing the Administration’s 2011 Prescription Drug Abuse Prevention Plan, so we can target abuse through education, monitoring, medication disposal, and enforcement.

As Acting Director Botticelli noted, these comprehensive efforts are showing promise.  But our work is far from over.  Significant challenges remain before us, and a range of serious and evolving obstacles lie ahead.

Now, I have no doubt – based on the professionalism, the grit, and the insight that has characterized the work that’s underway – that we will confront the impediments ahead with determination and strength.  And I want to assure you that, as you drive our national efforts into the future, you will continue to have not only my admiration and gratitude – but also my full and unwavering support.  My colleagues and I – at every level of the Justice Department – are firmly dedicated to fulfilling the goals we share and combating the challenges on today’s agenda.  And I’m proud to note that this is a commitment we’re backing up with robust action.

Since the beginning of this Administration, with DEA as our lead agency, the Justice Department has adopted a sweeping strategy to prevent pharmaceutical controlled substances from getting into the hands of non-medical users.  We have used our regulatory authority to review and investigate new pharmacy applications to identify and prevent storefront drug traffickers from obtaining DEA registrations.  And since 2010, we have joined with our regulatory partners to sponsor eight Drug Take Back events that provide the general public with a safe, convenient and responsible means of disposing of prescription drugs – providing an incentive for consumers to safely clean out their medicine cabinets.  These Drug Take Back efforts have resulted in the safe destruction of over 2,100 tons of prescription drugs.  And DEA is in the process of promulgating a regulation that will make it easier to establish permanent drug disposal sites nationwide.

We also have stepped up our investigatory efforts, opening more than 4,500 heroin-related investigations since 2011, and increasing the amount of heroin seized along America’s southwest border between 2008 and 2013 by 320 percent. Of course, like you, I recognize that we cannot solve this problem through enforcement alone.  And we will never be able to arrest or incarcerate our way to becoming a safer nation.

This is why education, prevention, and treatment – along with vigorous enforcement – must all be significant components of any comprehensive solution.  Over the past few years, the DEA and others within the Department of Justice have stepped forward to help educate pharmacists, doctors, and other health practitioners in the identification and prevention of controlled substance diversion during the healthcare delivery process.  In the Northern District of Ohio, for example, our U.S. Attorney convened a summit at the Cleveland Clinic, bringing together health and law enforcement professionals to address that area’s 400-percent rise in heroin-related deaths.  And across the country, DEA has participated in numerous conferences at the request of professional health care practitioner organizations to educate their members on prescription drug abuse and diversion trends.  Additionally, since 2011, DEA has sponsored 34 Pharmacy Diversion Awareness Conferences in 16 states – training over 6,500 pharmacists and pharmacy techs in prescription drug abuse trends, the Controlled Substances Act, and the pharmacist’s role in preventing controlled substance diversion at the pharmacy level.

On the national level, we’re moving even more broadly – under the Smart on Crime initiative I announced last August – to put in place a range of targeted, systemic reforms to ensure that 21st century challenges can be met with 21st century solutions.

This groundbreaking new effort relies upon proven, evidence-based strategies to achieve better outcomes throughout the federal criminal justice system – and particularly with regard to nonviolent, drug-related crimes.  These policy changes are predicated on the notion that our work must be informed, and our criminal justice system continually strengthened, by the most effective and efficient strategies available.

We’re also strengthening diversion programs like drug courts, veterans courts, and community service initiatives – so we can provide alternatives to incarceration for some people and offer treatment and rehabilitation to those who need it.  Nationwide, the Justice Department is supporting more than 2,600 specialty courts that connect over 120,000 people convicted of drug-related offenses with the services they need to avoid future drug use.

And we’re striving to improve and reinforce reentry programs and initiatives from coast to coast – so we can enable formerly incarcerated individuals to return to their communities better prepared to contribute, and to lead, as full and productive members of society.

Let me be clear:  we will never waver in our commitment to act aggressively to keep America’s streets safe and our children free from drug addiction and abuse.  And we will never stop being tough on crime and the choices that breed it.  But, like you, we also recognize that we must be smart, efficient, and effective as we strive to disrupt and diminish the scourge of addiction – along with the underlying conditions that trap too many individuals in a vicious cycle of drugs, criminality, and incarceration.

Like many of you, my dedication to this work is personal as well as professional – because, as a former U.S. Attorney and Superior Court judge, I have witnessed the devastating impact that prescription drug and substance abuse can have on individuals, on families, and on entire communities.  I understand the importance of bringing law enforcement officers, community leaders, public health professionals, prosecutors, and other stakeholders together to confront these conditions.  In fact, during my tenure as U.S. Attorney here in Washington, my staff and I pioneered the first-ever community prosecution effort in our nation’s capital.  And we saw both the power and the necessity of employing an approach that draws on the passion, the knowledge, and the expertise of a wide range of authorities and citizens.

Based on the diverse perspectives represented here at the White House today, I know you share that confidence.  You recognize that necessity.  And that’s why you’re making sure our efforts don’t end with treatment, incarceration, or even community outreach: because, when it comes to prescription drug and heroin abuse, the problem does not begin in prisons, or in gangs, or in forgotten areas of our city streets.  It begins in our neighborhoods, on our playgrounds, in our schools.  It begins, all too often, at home.

At the end of the day, the most important work we do is invariably the work that takes place within our own communities – not simply as professionals, but as mentors, advocates, and counselors; as parents, neighbors, and friends.  We need to make sure our kids live in neighborhoods where adults can reach out to them – where moms and dads, teachers and faith leaders, little league coaches and Scoutmasters can be trusted and positive influences in young lives.  And this work must be embraced by whole communities – because it is only by standing together, through collective action and comprehensive effort, that we’ll be able to make the difference we seek.

We need your expertise – but also your passion, your dedication, and your proximity.  We need your boots on the ground and your ideas in effect – here in Washington and around the nation.  Especially over the last five years – through summits like this one and the partnerships you’ve forged on the front lines, national leaders in and far beyond this room have come together to learn, to strategize, to collaborate – and to act.  Today, we reaffirm our commitment to push these efforts forward.  And we renew our pledge to break down traditional “silos” of responsibility; to rally additional experts and allies to this cause; and to use every tool and authority at our disposal to help navigate the complex and interconnected challenges that remain before us.

We’ve seen, after all, that progress will not come easily.  Positive change will not occur as quickly as we might like.  But forums like this one are a testament to the importance of cooperation in the face of adversity.  And as long as we keep our commitments to one another; as long as we keep seeking new ways to work together; as long as we keep striving to build on the promising work that so many of you are leading – I believe there’s good reason for confidence in where these efforts will take us from here.

I am proud to count you as colleagues and partners in the considerable work that lies ahead.  I thank you, once again, for all that you’re doing – today and every day – to combat drug abuse and protect our young people.  I look forward to all that we will accomplish together in the months and years ahead.  And I wish you all a most productive summit.

Thank you.

SEC ISSUES INVESTOR ALERT FOR AFFINITY FRAUD

FROM:   U.S. SECURITIES AND EXCHANGE COMMISSION
The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to help educate investors about affinity fraud, a type of investment scam that preys upon members of identifiable groups, such as religious or ethnic communities or the elderly. 

What is Affinity Fraud? 
Affinity fraud almost always involves either a fake investment or an investment where the fraudster lies about important details (such as the risk of loss, the track record of the investment, or the background of the promoter of the scheme). Many affinity frauds are Ponzi or pyramid schemes, where money given to the promoter by new investors is paid to earlier investors to create the illusion that the so-called investment is successful. This tricks new investors into investing in the scheme, and lulls existing investors into believing their investments are safe. In reality, even if there really is an actual investment, the investment typically makes little or no profit. The fraudster simply takes new investors’ money for the fraudster’s own personal use, often using some of it to pay off existing investors who may be growing suspicious. Eventually, when the supply of investor money dries up and current investors demand to be paid, the scheme collapses and investors discover that most or all of their money is gone. 

How Does Affinity Fraud Work? 
Fraudsters who carry out affinity scams frequently are (or pretend to be) members of the group they are trying to defraud. The group could be a religious group, such as a particular denomination or church. It could be an ethnic group or an immigrant community. It could be a racial minority. It could be members of a particular workforce – even members of the military have been targets of these frauds. Fraudsters target any group they think they can convince to trust them with the group members’ hard-earned savings. 

At its core, affinity fraud exploits the trust and friendship that exist in groups of people who have something in common. Fraudsters use a number of methods to get access to the group. A common way is by enlisting respected leaders from within the group to spread the word about the scheme. Those leaders may not realize the “investment” is actually a scam, and they may become unwitting victims of the fraud themselves. 

Because of the tight-knit structure of many groups, it can be difficult for regulators or law enforcement officials to detect an affinity scam. Victims often fail to notify authorities or pursue legal remedies. Instead, they try to work things out within the group. This is particularly true where the fraudsters have used respected community or religious leaders to convince others to join the investment.

How to Avoid Affinity Fraud
Here are a few tips to help you avoid becoming a victim of an affinity fraud scam.
  • Even if you know the person making the investment offer, be sure to research the person’s background, as well as the investment itself – no matter how trustworthy the person who brings the investment opportunity to your attention seems to be. Be aware that the person telling you about the investment may have been fooled into believing that the investment is legitimate when it is not. 
  • Never make an investment based solely on the recommendation of a member of an organization or group to which you belong. This is especially true if the recommendation is made online. An investment pitch made through an online group of which you are a member, or on a chat room or bulletin board catered to an interest you have, may be a fraud.
  • Do not fall for investments that promise spectacular profits or “guaranteed” returns. Similarly, be extremely leery of any investment that is said to have no risks. Very few investments are risk-free. Promises of quick and high profits, with little or no risk, are classic warning signs of fraud. 
  • Be skeptical of any investment opportunity that you can’t get in writing. Fraudsters often avoid putting things in writing. Avoid an investment if you are told they do not have time to put in writing the particulars about the investment. You should also be suspicious if you are told to keep the investment opportunity confidential or a secret. 
  • Don’t be pressured or rushed into buying an investment before you have a chance to research the “opportunity.” Just because someone you know made money, or claims to have made money, doesn’t mean you will, too. Be especially skeptical of investments that are pitched as “once-in-a-lifetime” opportunities, particularly when the salesperson bases the recommendation on “inside” or confidential information. 

DAVID M. LUNA ON IMPACT OF INTERNATIONAL CRIME

FROM:  U.S. STATE DEPARTMENT

How Criminal Entrepreneurs are Confiscating the Economic Potential of Communities and Corrupting Governments and the Integrity of Markets

Remarks
David M. Luna
Director for Anticrime Programs, Bureau of International Narcotics and Law Enforcement Affairs
UNICRI Impact of Organized Crime Workshop
Rome, Italy
June 16, 2014


Buon giorno!
On behalf of the United States, I would like to thank the Government of Italy’s Ministry of Economic Development and the United Nations Interregional Crime and Justice Research Institute (UNICRI) for co-hosting this week’s workshop with the U.S. Department of State, and for our partnership on developing methodologies to identify strategies to measure and reduce the impact of transnational organized crime (TOC) on the legal economy.

The topics that we will be addressing are critically important to the international community as we work together to:
  • inform the public on the harms and impacts of organized crime;
  • strengthen cooperation to disrupt and dismantle illicit networks across borders, including through tracking illicit financial flows and identifying, freezing or seizing, and confiscating illicit assets;
  • ensure that the global illegal economy does not continue to expand at the expense of the legal one; and
  • safeguard tomorrow’s growth markets and investment frontiers so that they do not become corrupted by criminal entrepreneurs determined to further diversify their illicit portfolios and perpetuate criminal acivity.
The focus of this workshop is timely. Today’s reality across the global threat environment is one of convergence: where criminals and illicit traders are networked across borders and are continuously expanding their tentacles to all parts of the world, infiltrating public and market-based institutions alike.

The illicit activities of organized criminals threaten not only the interdependent commercial, transportation, and transactional systems that facilitate free trade and the movement of people throughout the global economy, but jeopardize governance structures, economic development, security, and supply chain integrity.

Of equal concern is their penetration into the fabric of our daily lives by capitalizing on our vulnerabilities, and through a variety of criminal schemes, including money laundering, reinvesting their criminally-derived proceeds to create parallel markets based on corruption and criminality, and hubs of fear.

Toxicity to Communities: TOC Impact on Public Health and Safety
Ladies and gentlemen, organized criminals are neither the noble protectors nor the business providers that they claim to be to the public.

How can they be, especially when they engage in unconscionable usury (“loan sharking”), extortion, bribery and corruption that continue to decay the foundations for resilient economies?
When they lend money to hard-working people at exorbitant interest rates and then resort to threats and violence to recoup their monies?

Moreover, when tens of thousands of small- and medium-sized companies and “mom and pop” businesses across Europe and elsewhere have to close their doors due to the high prevalence of usurious debt, this is harmful to both economic growth and market resiliency, as well as efforts by our families to improve their livelihoods, and those of their children.

When criminal syndicates engage in the illegal dumping of hazardous waste, it not only impacts our environment, it also imperils the health and safety of our children when such mafia toxic waste ends up in rivers, lakes, water wells, and farming lands that are poisoning agricultural crops. In essence, toxic water streams are now becoming toxic streams in people’s blood systems.

When organized crime perpetuates modern slavery and human trafficking including luring women and young girls to be physically exploited and abused, and forced to pay their bondage debts through prostitution and other forms of indentured work, it corrupts our human capital and dispirits the soul of our humanity.

No these are not “friends,” but rapacious and violent thugs whose greed and wealth is derived from drug addicts, the hard work of entrapped, exploited modern slaves, and the most vulnerable members of our communities: the sick, poor, desperate, and innocent.

Toxicity of TOC to the Licit Economy: Blood Money is Financing Booming Black Markets
In addition to harming the welfare of our people, transnational organized criminal networks are imperiling the global legal economy.

In his book Illicit, Moises Naim underscores how “global criminal activities are transforming the international system, upending the rules, creating new players, and reconfiguring power in international politics and economics.” Professors Louise Shelley, Ernesto Savona, Xavier Raufer, and others have similarly done pioneering research on today’s threat hybrids and new actors (“el dorados”) and their powerful economic influence across sectors and industries.
I agree with Naim and these distinguished criminologists: global criminal activities have transformed the system, changed the rules, and altered power dynamics across the globe. According to some estimates, the illegal economy accounts for 8 to 15 percent of world GDP, distorting local economies, diminishing legitimate business revenues, fueling conflict, and deteriorating social conditions in many of today global security “hot spots.”

A report by A.T. Kearney titled, “The Shadow Economy in Europe, 2013”, estimates the shadow economy in Europe at €2.15 trillion, which is 18.5 per cent of the total economy. Here in Italy, over the past 10 years, there have been numerous estimates placing the major Italian mafias’ market share at around 3 to 7 percent of Italy’s GDP. In fact, recently Italy’s national statistical service, Istat, decided that it was including the black market in its GDP calculations and illicit enterprises such as drug trafficking, human trafficking, prostitution, counterfeits, and other criminal activities.

Of particular significance are the specific sectors that they invest in, consolidate, and now control. Media reports have estimated that the major Italian organized crime families control about one in five business in Italy.

I earlier underscored how criminals have diversified their portfolios in areas, for example, such as narcotics and human trafficking, usury, and environmental crime. But irrespective of which illicit trade areas criminals gravitate to, when it comes time to reinvesting their profits, there are certain sectors that are equally very attractive for them to influence and control, including banking, real estate, tourism, fashion, and the arts, sports, and entertainment industries.
While some argue that injecting any capital, licit or illicit, into local economies can help some communities in times of financial austerity – especially when citizens perceive that their own governments have failed to provide good governance and basic services – I would assert that filthy lucre or blood money that corrupts markets is not a desirable business model in any situation.

It has been well reported how money from the sale of cocaine, heroin, and other drugs in illicit markets is reinvested in numerous sectors where laundering illicit proceeds, often paid in cash, is easy and undetected. Among the alluring choices for criminals to disguise and reinvest their illicit proceeds from drugs and other crimes and integrate them into the formal economy include construction and real estate. Flushed with cash, organized crime has invested heavily in snapping up bars, restaurants, supermarkets, shops, hotels, resorts and other high-end luxury developments.

This is why asset recovery is important to our discussion this week and how the international community can work together to identify and recover illicit assets. When criminals are deprived of the fruits of their criminal activity, their overall economic and corruptive power is reduced and we can further prevent the infiltration of criminal money into the legitimate economy.

TOC Toxicity to National Economic Security and Market Integrity
Let me say a few words on the damage that transnational organized crime can inflict on market integrity, entrepreneurial innovation, brand integrity, and legitimate private enterprise.
As we are keenly aware, another profitable area for criminals these days is counterfeiting and pirated goods, including wine and liquor, cigarettes, pharmaceuticals, computers and electronics, and other products. Trafficking in counterfeit luxury and designer goods and accessories has become more profitable to organized crime than narcotics trafficking.
If one were to walk in some of our major cities, one could easily confront vendors selling some of these goods and others who are hawking designer bags, watches, eyewear, jewelry, footwear, and other luxury knockoffs, that have been counterfeited or smuggled by criminals across borders including such iconic brands such as GUCCI, Prada, Fendi, Louis Vuitton, Giorgio Armani, Polo, and others. Last year, I even learned that one could buy a fake Ferrari, with an unfashionable “turbocharged” Toyota Corolla engine. This is unfortunate because all over the world, smart consumers celebrate the real brands, trust their quality, and love their style.

Of course, the illegal economy and demand for fake handbags, shoes, perfumes, apparel and other luxury products make it harder for legitimate business to compete against these imported fake products. In these instances, illicit trade results in lost profits for companies, job displacements for workers, and with business closures, governments too are economically impacted as less revenue is brought into the treasuries to fund public services.
However, economic loss is not the only harm that results from fake goods. Companies also have to address the diminished integrity and market reputation of their venerable brands that they have worked hard to build and innovate upon over many years.

The same bad actors and networks who reinvest their blood money into the legal economy and who are undermining the good efforts of dedicated public servants and businesses to spur ethical, rule-of-law based markets and to broaden prosperity across communities—these bad actors and networks remain winners in the illegal economy.

We need to drain the swamp of criminality and cesspools of illicit activity that are corrupting our institutions, markets, and iconic brands.

We must not allow any further opportunities for criminal entrepreneurs to fill the role of governments and private enterprise as service providers in our societies nor allow their blood money to become the currency that sustains the global or local economy.

U.S. and International Efforts to Combat TOC and Illicit Trade
Finally, let me outline some of the efforts that the United States is undertaking to combat the threats posed by TOC, recover illicit assets, and shut down the illegal economy.
Recognizing the expanding size, scope, and influence of TOC and its impact on U.S. and international security and governance, in July 2011 the White House released the Strategy to Combat Transnational Organized Crime: Addressing Converging Threats to National Security.

The Strategy calls on all departments and agencies to “build, balance, and integrate the tools of American power to combat transnational organized crime…and urge our foreign partners to do the same.”

The Strategy also calls for the U.S. government and our international partners to work together to combat transnational illicit networks, and take that fight to the next level by breaking their corruptive power, attacking their financial underpinnings, stripping them of their illicit wealth, and severing their access to the financial system.

The new TOCRP program complements the Narcotics Rewards Program by offering rewards up to $5 million for information on significant transnational criminal organizations involved in activities beyond drug trafficking, such as human trafficking, money laundering, trafficking in arms, counterfeits and pirated goods, and other illicit trade areas.

We anticipate that by rewarding informants who provide leads and tips that help hobble transnational criminal organizations, we can protect our citizens, economies, and homeland.
On the issue of how best to administer and dispose of confiscated illicit assets, our governments should strive to ensure that funds are disposed of in a manner that recognizes and compensates legitimate victims, addresses legitimate law enforcement needs, and promotes enhanced governmental transparency and accountability.

Italy has taken note of this goal, using confiscated assets from organized crime for numerous causes that support social good. In fact, confiscated properties have been used for social centers to help children, individuals with special needs, and for other communal functions that serve the public interest.

Efforts consistent with international standards as set forth in the FATF Recommendations and law enforcement cooperation within the frameworks of multilateral instruments such as the United Nations Conventions against Corruption (UNCAC) and Transnational Organized Crime (UNTOC) are used successfully by governments to facilitate mutual legal assistance and other forms of international cooperation, including the exchange of intelligence and information between law enforcement. These tools are also very effective in preventing criminals from acquiring and enjoying the fruits of their criminal activity.

Consistent with international standards and our treaty obligations, I believe that it is important for countries to have a strong legislative framework for effective detection and prevention of illicit financial activity and the means to identify illicit assets, freeze or seize, and confiscate the same. This would include implementation of powerful asset recovery tools such as non-conviction based forfeiture, which is key to overcoming common hurdles to asset recovery such as the death, flight, or immunity of an offender; mechanisms to ensure that identified assets are properly preserved and managed until a final confiscation judgment is obtained; and processes to ensure the transparent and responsible disposition of confiscated property.

At INL, through many of our anti-crime training programs, including our network of International Law Enforcement Academies, we are integrating aspects of asset recovery training in our projects and courses, and helping to improve the capacity of partners to undertake complex asset recovery investigations.

And of course diplomatically, we continue to strengthen international cooperation between U.S. law enforcement authorities with committed partners such as Italy and other G7 countries, international organizations including the European Union, the Council of Europe, UNODC, UNICRI, INTERPOL, the Egmont Group of Financial Intelligence Units, EUROPOL’s Camden Asset Recovery Interagency Network, the OECD Task Force on Charting Illicit Trade, and many others.

Converging against Criminal Entrepreneurs and Confiscating their Assets
In closing, convergence defines the global economy today. We live in a world in which legal business transactions and legitimate commerce both facilitate and feed off the illegal economy.
Crimes such as counterfeiting, human trafficking, money laundering and corruption are often interconnected, with profits from one illicit trade area used to advance further criminal complicity in other areas.

If we are not vigilant, the illegal economy presents an existential threat that we cannot afford to ignore.

But there is hope including in efforts such as the addiopizzo campaign in Palermo where citizens have mobilized to say that “enough is enough” can make a difference in our fight against organized crime and for communities to denounce their extorters. As the campaign rightly underscores: “As long as somebody continues to pay the pizzo, we will not be free.”
My hope is that by the end of tomorrow, we can have some good solutions to devise better ways of recovering illicit assets, and ensuring that we are disposing of the same in a way that creates better lives and sustainable futures for impacted communities, while recognizing that the real threat of the illegal economy centers in convergence, and that we can no longer turn a blind eye on corruption and organized crime.

Thank you.

NSF FUNDS RESEARCH ON CRUSTACEAN PATHOGENS

FROM:  NATIONAL SCIENCE FOUNDATION 
Summer brings crab feasts--and concerns for Chesapeake blue crabs
Infectious diseases play a part in crab population declines

It's almost summer. Seafood restaurants from coast-to-coast are serving platter after platter of steaming crabs, ready for hammering and picking. The supply seems endless, but is it?

Not if we're talking about blue crabs from Chesapeake Bay.

The bay's iconic blue crab population has dropped to levels not seen since before restrictions were placed on the fishery more than five years ago. What's to blame?

A long and, by Mid-Atlantic standards, brutal winter has been fingered as one culprit. In one of the worst die-offs in recent history, more than a quarter of the Chesapeake's blue crabs perished in the frigid waters.

More than cold water to blame

But that's not the only factor, says disease ecologist Jeff Shields of the Virginia Institute of Marine Sciences in Gloucester Point, Va.

"Several commercially important crustacean populations, including blue crabs, have had declines linked to diseases," says Shields. "In most cases, though, the underlying causes have been difficult to pinpoint because crustacean pathogens [infectious agents] aren't very well known."

To help determine what's infecting Chesapeake blue crabs and other crustaceans, the National Science Foundation (NSF) awarded Shields a grant through the joint NSF-NIH Ecology and Evolution of Infectious Diseases Program.

"We know very little about how disease affects populations of marine invertebrates and even less about how disease might interact with other stressors, such as overfishing," says Dave Garrison, director of NSF's Biological Oceanography Program, which also funded the research.

"This study is a major step toward discovering new ways of wisely managing our coastal resources."

One Chesapeake Bay blue crab killer may be a single-celled parasitic dinoflagellate named Hematodinium, a scourge that infects blue crabs and is of concern in fisheries not only in the Chesapeake, but around the world.

Outbreak in the crab pot and the shedding house

The parasite was first reported along the U.S. East Coast in the 1970s and found in the Chesapeake's blue crabs in the 1990s.

In a Hematodinium outbreak, some 50 percent of crabs caught in fishing pots may die. That number jumps to 75 percent in "shedding houses" where crabs molt their shells, then are collected for the soft-shell industry.

"Infection is almost always fatal--for the crabs," says Shields, who adds that the disease isn't harmful to humans.

In a breakthrough for blue crabs, Shields and colleagues recently succeeded in their effort to uncover the life history of Hematodinium.

"Describing the entire life cycle of Hematodinium is an important step toward controlling the infection," says Shields. "With all the parasite's stages in culture in the lab, we can learn when Hematodinium is most infectious."

The biologists made their discovery by looking at many parasite generations over a year-long period.

Answers under a microscope

Through the research, scientists now know that Hematodinium takes some 40 to 50 days to develop. "That matches what we see in the field," he says. "We think infection is linked with blue crabs' molting cycles."

Hematodinium usually infects young crabs. Some 50 to 70 percent of juvenile blue crabs along the Virginia coast carry the pathogen, "and it's prevalent in bays and inlets along the entire U.S. East Coast," says Shields.

The high cost--to the crab population and to the humans that depend on it--comes in the deaths of young blue crabs before they can make their way from coastal spawning grounds to brackish tributaries, where they become large enough to legally catch.

"Imagine a harvest with 50 percent more crabs," says Shields. "The toll exacted by Hematodinium is very clear."

The parasite is after more than blue crabs, however.

"You can't fish out the blue crabs somewhere and hope this pathogen will be gone," says Shields. "It's also in many other crustaceans, including spider crabs, rock crabs and other swimming crabs."

Insights from the bay's shape

Outbreaks of Hematodinium are linked with certain geographic features, such as shallow bays, lagoons and fjords. "Such features are ideal for the growth and spread of pathogens, as they serve to focus transmissive stages or retain them within the system," writes Shields in a paper published in the Journal of Invertebrate Pathology.

Four factors may facilitate epidemics of Hematodinium and other pathogens: relatively "closed" host (crab) populations, with little immigration and emigration of juveniles and adults; bays with restricted water exchange with the open ocean, which hold in pathogens; stressful environmental conditions, such as overfishing and seasonal hypoxia, or "dead zones"; and pathogens that can rapidly multiply.

"The Chesapeake has several of these features," Shields says.

Managing for pathogens

Shields and colleagues are working to understand how Hematodinium is transmitted in wild crustacean populations and at shrimp farms and other aquaculture operations. "We hope to develop 'best practices' for managing, in particular, the Chesapeake's wild blue crabs."

Diseases can have serious effects on commercial fisheries, Shields says. "But there's a perception among resource managers and fishers that diseases aren't important to the fishing industry, or that little can be done to manage them."

Too few fishery models use information like disease prevalence and distribution, according to Shields, and fisheries management decisions often don't consider disease.

"Estimates of disease-induced effects such as mortality or 'negative marketability' can be incorporated into existing models to improve stock assessment and management," Shields writes in the Journal of Invertebrate Pathology.

Disease may be the sleeper in the decline of the Chesapeake Bay blue crab.

Hard-hit by freezing temperatures, low-oxygen waters and overfishing, unless disease is taken into account, believes Shields, the next blue crabs caught may be headed not to your dinner table, but to the crustacean equivalent of the ICU.

-- Cheryl Dybas, NSF
Investigators
Harry Wang
Kimberly Reece
Jeffrey Shields
Related Institutions/Organizations

Thursday, June 19, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JUNE 19, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

ARMY

Raytheon Co. Missile Systems, Tucson, Arizona, was awarded a $391,540,645 modification (P00017) to contract W31P4Q-12-C-0265 for Tube Launched Optically Tracked Wireless Guided (TOW) Missiles for the U.S. Army and Marine Corps, and for foreign military sales to Oman and to the Saudi Arabian National Guard. Work will be performed in Tucson, Arizona, and Farmington, New Mexico, with an estimated completion date of March 30, 2018. Other procurement (Army) funds in the amount of $39,799,200 (fiscal 2014); $8,281,200 (fiscal 2013); $9,517,200 (fiscal 2012), and other procurement funds in the amount of $333,943,045 (fiscal 2010) were obligated at the time of the award. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
Etcon, Inc.,* Gatesville, Texas, was awarded a $25,472,586 modification (P00001) to contract W91151-13-D-0009 to exercise option one for the miscellaneous paving requirement. Funding and work location will be determined with each order, with an estimated completion date of June 19, 2015. Army Contracting Command, Ft. Hood, Texas, is the contracting activity.
BAE Systems Land & Armaments L.P., York, Pennsylvania, was awarded a $9,818,307 modification (P00022) to contract W52P1J-11-C-0047 for pre-positioned stocks (APS-5) for Bradley tracked vehicles. Work will be performed in Kuwait, with an estimated completion date of Aug. 31, 2014. Fiscal 2014 operations and maintenance (Army) funds in the amount of $1,717,905 were obligated at the time of the award. Army Contracting Command, Rock Island Arsenal, Illinois, is the contracting activity.

Airborne Systems North America of California, Inc., was awarded an $8,099,431 firm-fixed-price, indefinite-delivery contract for foreign military sales customers India, Jordan, Moldova and Romania. The total estimated quantities are: 37 T-11 personnel parachute systems, eight T-11 spare parts packages, 825 MC-6 personnel parachute systems, and eight MC-6 spare parts packages. Funding and work location will be determined with each order, with an estimated completion date of June 16, 2016. Bids were solicited via the Internet with one received. Army Contracting Command, Warren, Michigan, is the contracting activity (W56HZV-14-D-0064).

Dynamic Animation Systems, Inc.*, Fairfax, Virginia was awarded a $7,799,646 cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract with options, for Modeling Architecture for Technology, Research, Experimentation II Engineering Services. Funding and work location will be determined with each order, with an estimated completion date of May 8, 2016. One bid was solicited with one received. Army Contracting Command, Research Triangle Park, North Carolina, is the contracting activity (W911NF-14-D-0003).

AIR FORCE

Northrop Grumman Space & Mission Systems Corp., San Diego, California, has been awarded an $89,663,365 cost-plus-fixed-fee modification (P00092) to exercise an option contract line item number on an existing contract (FA8726-09-C-0010) to continue Battlefield Airborne Communications Node (BACN) E-11A and EQ-4B payload operation and support. The total cumulative face value of the contract is $1,208,554,973. The contract modification is for contractor to perform comprehensive tasks and provide personnel, facilities and material necessary to successfully maintain and support the BACN E-11A and EQ-4B aircraft payload operations and support equipment. This includes continental United States and outside the continental United States operations. The BACN aircraft fleet consists of four E-11A aircraft located at Kandahar Air Field, Afghanistan, and three EQ-4B Block 20 aircraft located overseas. This modification is for continued payload operations and support through June 22, 2015. Fiscal 2014 operations and maintenance funds in the amount of $89,663,365 are being obligated at time of award. Air Force Life Cycle Management Center/HNAK, Hanscom Air Force Base, Massachusetts, is the contracting activity.

NAVY

Lockheed Martin, Mission Systems and Training, Moorestown, New Jersey, is being awarded a $57,863,799 modification to previously awarded contract (N00024-13-C-5132), to exercise options for technical engineering, configuration management, associated equipment/supplies, quality assurance, information assurance, and other operation and maintenance efforts required for the Aegis development and test sites, including the Combat Systems Engineering Development Site, SPY-1A Test Facility, and the Naval Systems Computing Center. Work will be performed in Moorestown, New Jersey, and is expected to be completed by June 2015. Fiscal 2014 research, development, test and evaluation funding in the amount of $3,574,016 will be obligated at time of award and contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Kellogg, Brown and Root Services, Inc., Houston, Texas, is being awarded a $56,563,357 modification under a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (N62470-13-D-3008) to exercise option year one for base operation support services at Camp Lemonnier, Djibouti. The work to be performed provides for public safety (security operations, emergency management, and fire/emergency services), air operations, ordnance, supply operations, laundry services, morale welfare and recreation, galley (food services), housing (bachelor quarters), facility support (facilities investment, janitorial services, grounds maintenance, pest control, refuse collection, and roads), utilities (electrical generation, wastewater treatment, and water operations), base support vehicles equipment, and environmental services. The total contract amount after exercise of this modification will be $224,153,913. Work will be performed in Djibouti, Africa (95 percent), and Manda Bay, Kenya (5 percent); work is expected to be completed June 2015. Fiscal 2014 operation and maintenance (Navy) contract funds in the amount of $53,201,122 are being obligated on this award and will expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity.

Head, Inc.,* Columbus, Ohio, is being awarded a $13,721,888 firm-fixed-price contract for the repair of the airfield at Naval Air Station/Joint Reserve Base New Orleans. The work to be performed provides for the repair of the main runway 4/22 and taxiways associated with runway 4/22. The contract includes pavement demolition, temporary removal of arresting gear, debris disposal, grading, settlement monitoring, concrete pavement repairs, asphalt paving repairs, pavement striping, resealing asphalt, runway light repairs, grounding light can repairs and other additional work as provided in the contract. The contract also contains seven unexercised options, which if exercised, would increase cumulative contract value to $19,872,983. Work will be performed in New Orleans, Louisiana, and is expected to be completed by February 2015. If options are exercised, the work will continue through November 2015. Fiscal 2014 operation and maintenance (Navy Reserve) contract funds in the amount of $13,721,888 are being obligated on this award and will expire at the end of the current fiscal year. This contract was competitively procured via the Federal Business Opportunities website with three proposals received. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity (N69450-14-C-1759).

Lockheed Martin Mission Systems & Training, Owego, New York, is being awarded an $11,638,343 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0031) to complete an engineering change proposal for the upgrade of 12 P-3C aircraft for the Government of Taiwan under the Foreign Military Sales program. These upgrades to the Link-11 and Advanced Tactical Data Link will provide high-speed computer to computer digital radio communications in high-frequency and ultra-high frequency. Work will be performed in Owego, New York (70 percent); Austin, Texas (25 percent); Greenville, South Carolina (4 percent); and Clearwater, Florida (1 percent), and is expected to be completed in September 2015. FMS funds in the amount of $11,638,343 are being obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity.

URS Group, Inc., San Antonio, Texas, is being awarded $10,819,000 for firm-fixed-price task order JM02 under a previously awarded multiple award construction contract (N62742-09-D-1174) for seawater reverse osmosis treatment plant recapitalization at Naval Station Guantanamo Bay. The work to be performed provides for the design and construction of the removal and replacement of four of the six existing reverse osmosis process units (trains) and accompanying process equipment in the Windward Desalination Plant, the source water for Naval Station Guantanamo Bay. Design and construction includes construction sequencing to maintain system operations throughout, the addition of concrete piers and access platforms, connection to the existing seawater supply header, installation of transfer pumps, installation of a minimum of five pre-engineered equipment enclosures, installation of pre-engineered metal canopy over all new equipment, and extension of site electrical supply and utilities. Work will be performed in Guantanamo Bay, Cuba, and is expected to be completed by July 2016. Fiscal 2014 working capital funds (Navy) in the amount of $10,819,000 are being obligated on this award and will not expire at the end of the current fiscal year. One proposal was received for this task order. The Naval Facilities Engineering Command, Southeast, Jacksonville, Florida, is the contracting activity.

Northrop Grumman Systems Corp. Electronic Sector, Linthicum, Maryland, is being awarded $8,363,501 for cost-plus-fixed-fee job order 0017 under previously awarded Basic Ordering Agreement (N00164-12-G-WS55) for the procurement of engineering services in support of the AN/ALQ-218(V)2 Tactical Jamming System repair depot at Naval Surface Warfare Center, Crane, Indiana. Work will be performed in Linthicum, Maryland (65 percent), and Crane, Indiana (35 percent), and is expected to be completed by June 2017. Fiscal 2014 aircraft procurement (Navy) funding in the amount of $975,000 will be obligated at time of award and will not expire at the end of the current fiscal year. Naval Surface Warfare Center, Crane, Indiana, is the contracting activity.

BAE Systems Land & Armaments L.P., Armament Systems Division, Louisville, Kentucky, is being awarded a $7,809,034 cost-plus-fixed-fee task order to previously awarded Basic Ordering Agreement (N00174-12-G-0001) for 84 standardized pier side maintenance and repairs to the MK 38 Machine Gun System. Work will be performed in National City, California (34 percent); Norfolk, Virginia (33 percent); and Mayport, Florida (33 percent), and is expected to be completed in June 2017. Fiscal 2014 operation and maintenance (Navy) contract funds in the amount of $7,809,034 will be obligated at time of award and will expire at the end of the current fiscal year. The Naval Surface Warfare Center, Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Maryland, is the contracting activity.

DEFENSE LOGISTICS AGENCY

Hologic LP, Marlborough, Massachusetts, has been awarded a maximum $32,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for purchase of ThinPrep pap test kits and related supplies. This contract was a sole-source acquisition. This is a five-year base contract with no option periods. Location of performance is Massachusetts, with a Sept. 30, 2019 performance completion date. Using military services are Army, Navy, Air Force and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPM2DE-14-D-7205).

*Small business

PRESIDENT OBAMA'S REMARKS ON IRAQ SITUATION

FROM:  THE WHITE HOUSE 

Remarks by the President on the Situation in Iraq

James S. Brady Press Briefing Room
1:32 P.M. EDT
THE PRESIDENT:  Good afternoon, everybody.  I just met with my national security team to discuss the situation in Iraq.  We’ve been meeting regularly to review the situation since ISIL, a terrorist organization that operates in Iraq and Syria, made advances inside of Iraq.  As I said last week, ISIL poses a threat to the Iraqi people, to the region, and to U.S. interests.  So today I wanted to provide you an update on how we’re responding to the situation.
First, we are working to secure our embassy and personnel operating inside of Iraq.  As President, I have no greater priority than the safety of our men and women serving overseas.  So I’ve taken some steps to relocate some of our embassy personnel, and we’ve sent reinforcements to better secure our facilities.
Second, at my direction, we have significantly increased our intelligence, surveillance, and reconnaissance assets so that we’ve got a better picture of what’s taking place inside of Iraq.  And this will give us a greater understanding of what ISIL is doing, where it’s located, and how we might support efforts to counter this threat. 
Third, the United States will continue to increase our support to Iraqi security forces.  We’re prepared to create joint operation centers in Baghdad and northern Iraq to share intelligence and coordinate planning to confront the terrorist threat of ISIL.  Through our new Counterterrorism Partnership Fund, we’re prepared to work with Congress to provide additional equipment.  We have had advisors in Iraq through our embassy, and we’re prepared to send a small number of additional American military advisors -- up to 300 -- to assess how we can best train, advise, and support Iraqi security forces going forward.
American forces will not be returning to combat in Iraq, but we will help Iraqis as they take the fight to terrorists who threaten the Iraqi people, the region, and American interests as well.
Fourth, in recent days, we’ve positioned additional U.S. military assets in the region.  Because of our increased intelligence resources, we’re developing more information about potential targets associated with ISIL.  And going forward, we will be prepared to take targeted and precise military action, if and when we determine that the situation on the ground requires it.  If we do, I will consult closely with Congress and leaders in Iraq and in the region.
I want to emphasize, though, that the best and most effective response to a threat like ISIL will ultimately involve partnerships where local forces, like Iraqis, take the lead. 
Finally, the United States will lead a diplomatic effort to work with Iraqi leaders and the countries in the region to support stability in Iraq.  At my direction, Secretary Kerry will depart this weekend for meetings in the Middle East and Europe, where he’ll be able to consult with our allies and partners.  And just as all Iraq’s neighbors must respect Iraq’s territorial integrity, all of Iraq’s neighbors have a vital interest in ensuring that Iraq does not descend into civil war or become a safe haven for terrorists.
Above all, Iraqi leaders must rise above their differences and come together around a political plan for Iraq’s future.  Shia, Sunni, Kurds -- all Iraqis -- must have confidence that they can advance their interests and aspirations through the political process rather than through violence.  National unity meetings have to go forward to build consensus across Iraq’s different communities.  Now that the results of Iraq’s recent election has been certified, a new parliament should convene as soon as possible.  The formation of a new government will be an opportunity to begin a genuine dialogue and forge a government that represents the legitimate interests of all Iraqis.
Now, it’s not the place for the United States to choose Iraq’s leaders.  It is clear, though, that only leaders that can govern with an inclusive agenda are going to be able to truly bring the Iraqi people together and help them through this crisis.  Meanwhile, the United States will not pursue military options that support one sect inside of Iraq at the expense of another.  There’s no military solution inside of Iraq, certainly not one that is led by the United States.  But there is an urgent need for an inclusive political process, a more capable Iraqi security force, and counterterrorism efforts that deny groups like ISIL a safe haven.
In closing, recent days have reminded us of the deep scars left by America’s war in Iraq.  Alongside the loss of nearly 4,500 American patriots, many veterans carry the wounds of that war, and will for the rest of their lives.  Here at home, Iraq sparked vigorous debates and intense emotions in the past, and we’ve seen some of those debates resurface. 
But what’s clear from the last decade is the need for the United States to ask hard questions before we take action abroad, particularly military action.  The most important question we should all be asking, the issue that we have to keep front and center -- the issue that I keep front and center -- is what is in the national security interests of the United States of America.  As Commander-in-Chief, that’s what I stay focused on.  As Americans, that’s what all of us should be focused on. 
And going forward, we will continue to consult closely with Congress.  We will keep the American people informed.  We will remain vigilant.  And we will continue to do everything in our power to protect the security of the United States and the safety of the American people. 
So with that, I’m going to take a couple of questions.  I’ll start with Colleen McCain Nelson of the Wall Street Journal.
Q    Thank you, Mr. President.  Do you have any confidence in Prime Minister Maliki at this point?  And can Maliki bring political stability to Iraq?
THE PRESIDENT:  As I said, it’s not our job to choose Iraq’s leaders.  Part of what our patriots fought for during many years in Iraq was the right and the opportunity for Iraqis to determine their own destiny and choose their own leaders.  But I don’t think there’s any secret that right now at least there is deep divisions between Sunni, Shia and Kurdish leaders.  And as long as those deep divisions continue or worsen, it’s going to be very hard for an Iraqi central government to direct an Iraqi military to deal with these threats.
And so we’ve consulted with Prime Minister Maliki, and we’ve said that to him privately.  We’ve said it publicly that whether he is prime minister, or any other leader aspires to lead the country, that it has to be an agenda in which Sunni, Shia and Kurd all feel that they have the opportunity to advance their interests through the political process.  And we’ve seen over the last two years, actually dating back to 2008, 2009 -- but I think worse over the last two years -- the sense among Sunnis that their interests were not being served, that legislation that had been promised around, for example, De-Ba’athification had been stalled. 
I think that you hear similar complaints that the government in Baghdad has not sufficiently reached out to some of the tribes and been able to bring them in to a process that gives them a sense of being part of a unity government or a single nation-state.  And that has to be worked through.
Part of the reason why we saw better-equipped Iraqi security forces with larger numbers not be able to hold contested territory against ISIL probably reflects that lack of a sense of commitment on the part of Sunni communities to work with Baghdad.  And that has to be fixed if we’re going to get through this crisis.
Jim Acosta.
Q    Thank you, Mr. President.  Americans may look at this decision that you’re making today as a sneak preview of coming attractions; that the number of advisors that you’re planning to send in may just be the beginning of a boots-on-the-ground scenario down the road.  Why is Iraq’s civil war in the national security interests of the United States?  And are you concerned about the potential for mission creep?
THE PRESIDENT:  I think we always have to guard against mission creep, so let me repeat what I’ve said in the past:  American combat troops are not going to be fighting in Iraq again. 
We do not have the ability to simply solve this problem by sending in tens of thousands of troops and committing the kinds of blood and treasure that has already been expended in Iraq.  Ultimately, this is something that is going to have to be solved by the Iraqis.
It is in our national security interests not to see an all-out civil war inside of Iraq, not just for humanitarian reasons, but because that ultimately can be destabilizing throughout the region.  And in addition to having strong allies there that we are committed to protecting, obviously issues like energy and global energy markets continues to be important. 
We also have an interest in making sure that we don’t have a safe haven that continues to grow for ISIL and other extremist jihadist groups who could use that as a base of operations for planning and targeting ourselves, our personnel overseas, and eventually the homeland.  And if they accumulate more money, they accumulate more ammunition, more military capability, larger numbers, that poses great dangers not just to allies of ours like Jordan, which is very close by, but it also poses a great danger potentially to Europe and ultimately the United States.
We have already seen inside of Syria that -- or groups like ISIL that right now are fighting with other extremist groups, or an Assad regime that was non-responsive to a Sunni majority there, that that has attracted more and more jihadists or would-be jihadists, some of them from Europe.  They then start traveling back to Europe, and that, over time, can create a cadre of terrorists that could harm us.
So we have humanitarian interests in preventing bloodshed.  We have strategic interests in stability in the region.  We have counterterrorism interests.  All those have to be addressed.
The initial effort for us to get situational awareness through the reconnaissance and surveillance that we’ve already done, coupled with some of our best people on the ground doing assessments of exactly what the situation is -- starting, by the way, with the perimeter around Baghdad and making sure that that's not overrun -- that's a good investment for us to make.  But that does not foreshadow a larger commitment of troops to actually fight in Iraq.  That would not be effective in meeting the core interests that we have.
Q    Just very quickly, do you wish you had left a residual force in Iraq?  Any regrets about that decision in 2011?
THE PRESIDENT:  Well, keep in mind that wasn’t a decision made by me; that was a decision made by the Iraqi government.  We offered a modest residual force to help continue to train and advise Iraqi security forces.  We had a core requirement which we require in any situation where we have U.S. troops overseas, and that is, is that they're provided immunity since they're being invited by the sovereign government there, so that if, for example, they end up acting in self-defense if they are attacked and find themselves in a tough situation, that they're not somehow hauled before a foreign court.  That's a core requirement that we have for U.S. troop presence anywhere. 
The Iraqi government and Prime Minister Maliki declined to provide us that immunity.  And so I think it is important though to recognize that, despite that decision, that we have continued to provide them with very intensive advice and support and have continued throughout this process over the last five years to not only offer them our assistance militarily, but we’ve also continued to urge the kinds of political compromises that we think are ultimately necessary in order for them to have a functioning, multi-sectarian democracy inside the country.
Juliet Eilperin. 
Q    Mr. President, you just mentioned Syria a moment ago.  The United States has been slow to provide significant weapons and training directly to the Syrian opposition.  Has the expansion of the Syria war into Iraq changed your mind about the type of weapons and training we’re now willing to give the opposition there?  Is that what prompted Secretary Kerry to say of Syria, “We are augmenting our assistance in significant ways”?  And can you elaborate on what you are you doing now that you weren’t doing before?
THE PRESIDENT:  That assessment about the dangers of what was happening in Syria have existed since the very beginning of the Syrian civil war.  The question has never been whether we thought this was a serious problem.  The question has always been, is there the capacity of moderate opposition on the ground to absorb and counteract extremists that might have been pouring in, as well as an Assad regime supported by Iran and Russia that outmanned them and was ruthless.
And so we have consistently provided that opposition with support.  Oftentimes, the challenge is if you have former farmers or teachers or pharmacists who now are taking up opposition against a battle-hardened regime, with support from external actors that have a lot at stake, how quickly can you get them trained; how effective are you able to mobilize them.  And that continues to be a challenge.  And even before the situation that we saw with ISIL going into Iraq, we had already tried to maximize what we could do to support a moderate opposition that not only can counteract the brutality of Assad, but also can make sure that in the minds of Sunnis they don't think that their only alternative is either Mr. Assad or extremist groups like ISIL or al Nusra.
 
Q    And can you speak to what you might be doing differently, as the Secretary of State alluded to?
THE PRESIDENT:  Well, I think that the key to both Syria and Iraq is going to be a combination of what happens inside the country working with the moderate Syrian opposition, working with an Iraqi government that is inclusive, and us laying down a more effective counterterrorism platform that gets all the countries in the region pulling in the same direction.  And I alluded to this in the West Point speech.  I talked about it today with respect to the Counterterrorism Partnership Fund.
There is going to be a long-term problem in this region in which we have to build and partner with countries that are committed to our interests, our values.  And at the same time, we have immediate problems with terrorist organizations that may be advancing.  And rather than try to play Whac-a-Mole wherever these terrorist organizations may pop up, what we have to do is to be able to build effective partnerships, make sure that they have capacity.  Some of the assets that have been devoted solely to Afghanistan over the last decade we’ve got to shift to make sure that we have coverage in the Middle East and North Africa. 
You look at a country like Yemen -- a very impoverished country and one that has its own sectarian or ethnic divisions -- there, we do have a committed partner in President Hadi and his government.  And we have been able to help to develop their capacities without putting large numbers of U.S. troops on the ground at the same time as we’ve got enough CT, or counterterrorism capabilities that we’re able to go after folks that might try to hit our embassy or might be trying to export terrorism into Europe or the United States. 
And looking at how we can create more of those models is going to be part of the solution in dealing with both Syria and Iraq.  But in order for us to do that, we still need to have actual governments on the ground that we can partner with and that we’ve got some confidence are going to pursue the political policies of inclusiveness.  In Yemen, for example, a wide-ranging national dialogue that took a long time, but helped to give people a sense that there is a legitimate political outlet for grievances that they may have.
Peter Maer.
Q    Thank you, sir.  Going back to where you see Prime Minister al-Maliki playing a role at this point, you said that it’s a time to rise above differences, that there’s a need for more inclusive government.  Is he a unifier?  And how much clout does the United States ultimately have with any of the leadership in Iraq at this point really?
THE PRESIDENT:  Well, we still provide them significant assistance.  I think they recognize that, unlike some other players in the region, we don’t have territorial ambitions in their country.  We’re not looking to control their assets or their energy.  We want to make sure that we’re vindicating the enormous effort and sacrifice that was made by our troops in giving them an opportunity to build a stable, inclusive society that can prosper and deliver for the basic needs and aspirations of the Iraqi people.
And at the same time, they are a sovereign country.  They have their own politics.  And what we have tried to do is to give them our best advice about how they can solve their political problems.  Now that they are in crisis, we are indicating to them that there is not going to be a simple military solution to this issue.  If you start seeing the various groups inside of Iraq simply go to their respective corners, then it is almost certain that Baghdad and the central government will not be able to control huge chunks of their own country.  The only way they can do that is if there are credible Sunni leaders, both at the national level and at the local level, who have confidence that a Shia majority, that the Kurds, that all those folks are committed to a fair and just governance of the country.
Right now, that doesn’t exist.  There’s too much suspicion, there’s too much mistrust.  And the good news is that an election took place in which despite all this mistrust, despite all this frustration, despite all this anger, you still had millions of Iraqis turn out -- in some cases, in very dangerous circumstances.  You now have a court that has certified those elections, and you have a constitutional process to advance government formation.
So far, at least, the one bit of encouraging news that we’ve seen inside of Iraq is that all the parties have said they continue to be committed to choosing a leadership and a government through the existing constitutional order.
So what you’re seeing I think is, as the prospects of civil war heighten, many Iraq leaders stepping back and saying, let’s not plunge back into the abyss; let’s see if we can resolve this politically.  But they don’t have a lot of time.  And you have a group like ISIL that is doing everything that it can to descend the country back into chaos. 
And so one of the messages that we had for Prime Minister Maliki but also for the Speaker of the House and the other leadership inside of Iraq is, get going on this government formation.  It’ll make it a lot easier for them to shape a military strategy.  It’ll also make it possible for us to partner much more effectively than we can currently.
Q    Given the Prime Minister’s track record, is he a unifier?  Can he play that role after what we’ve seen play out over the last couple of weeks is brought into play?
THE PRESIDENT:  I think the test is before him and other Iraqi leaders as we speak.  Right now, they can make a series of decisions.  Regardless of what’s happened in the past, right now is a moment where the fate of Iraq hangs in the balance, and the test for all of them is going to be whether they can overcome the mistrust, the deep sectarian divisions, in some cases just political opportunism, and say this is bigger than any one of us and we’ve got to make sure that we do what’s right for the Iraqi people.  And that’s a challenge.
That’s not something that the United States can do for them.  That’s not something, by the way, that the United States Armed Forces can do for them.  We can provide them the space, we can provide them the tools.  But ultimately, they’re going to have to make those decisions.
In the meantime, my job is to make sure that American personnel there are safe; that we are consulting with the Iraqi security forces; that we’re getting a better assessment of what’s on the ground; and that we’re recognizing the dangers of ISIL over the long term, and developing the kinds of comprehensive counterterrorism strategies that we’re going to need to deal with this issue.  And that’s going to involve some short-term responses to make sure that ISIL is not obtaining capacity to endanger us directly or our allies and partners.  But it also is going to require some long-term strategies, as well. 
Because part of what we’ve with respect to ISIL is a broader trend that I talked about at West Point -- rather than a single network, a discreet network of terrorists, this fluid combination of hardened terrorists, disaffected local leadership.  And where there’s vacuums, they’re filling it and creating the potential for serious danger for all concerned.
Thank you very much.
Q    On Iran, Mr. President, any words on what you’re willing to do, and are you also willing to work with them?
THE PRESIDENT:  Our view is that Iran can play a constructive role if it is helping to send the same message to the Iraqi government that we’re sending, which is that Iraq only holds together if it’s inclusive and that if the interests of Sunni, Shia and Kurd are all respected.  If Iran is coming in solely as an armed force on behalf of the Shia, and if it is framed in that fashion, then that probably worsens the situation and the prospect for government formation that would actually be constructive over the long term.
Q    What’s your sense of that right now?
THE PRESIDENT:  Well, I think that just as Iraq’s leaders have to make decisions, I think Iran has heard from us.  We’ve indicated to them that it is important for them to avoid steps that might encourage the kind of sectarian splits that might lead to civil war. 
And the one thing that I think has to be emphasized -- we have deep differences with Iran across the board on a whole host of issues.  Obviously, what’s happened in Syria in part is the result of Iran coming in hot and heavy on one side.  And Iran obviously should consider the fact that if its view of the region is solely through sectarian frames, they could find themselves fighting in a whole lot of places.  And that’s probably not good for the Iranian economy or the Iranian people over the long term either.  I suspect there are folks in Iran who recognize that.  A Iraq in chaos on their borders is probably not in their interests.  But old habits die hard, and we’ll have to see whether they can take what I think would be a more promising path over the next several days. 
Thank you very much, everybody. 
END
2:01 P.M. EDT

300 MILITARY ADVISERS HEAD TO IRAQ

FROM:  U.S. DEFENSE DEPARTMENT 
Obama Announces Military Advisers Heading to Iraq
By Nick Simeone
American Forces Press Service

WASHINGTON, June 19, 2014 – President Barack Obama today announced plans to send up to 300 military advisers to Iraq to help the government in Baghdad combat a rapid advance by Sunni-led insurgents who have taken over towns and cities and routed Iraqi troops in the north and west of the country, a situation which the president said threatens to plunge Iraq into civil war.

“American forces will not be returning to combat in Iraq, but we will help Iraqis as they take the fight to terrorists who threaten the Iraqi people in the region and American interests as well,” Obama said during an appearance in the White House press room, saying the U.S. forces will help train, advise and support Iraqi security forces.

The president spoke after another in what have been a series of meetings with his national security team to review options on how to respond to Iraq’s request for military assistance in putting down rapid gains made by insurgents led by Syrian-based fighters known as the Islamic State in Iraq and Syria or ISIS, whose advance on Baghdad has threatened reprisals from Iraq’s Shiite majority and a return of full blown sectarian conflict.

“We will be prepared to take targeted and precise military action if and when we determine that the situation on the ground requires it,” Obama said.
Yesterday, Defense Secretary Chuck Hagel and Army Gen. Martin E. Demspey, the chairman of the Joint Chiefs of Staff, told Congress further intelligence would be needed about the situation on the ground along with clear objectives in order for possible airstrikes or other military intervention to be effective.

Obama said joint operation centers in Baghdad and northern Iraq will be stood up to better share intelligence and coordinate planning with the Iraqis as they confront the terrorist threat posed by ISIS. These steps are in addition to surveillance flights the United States is already conducting along with the positioning of increased U.S. military assets in the region.

Obama again called on Iraq’s political leaders including Shiite Prime Minister Nouri al-Maliki to rise above sectarian differences and develop a broad-based political plan for ending a crisis that he said cannot be resolved through military means.

“It’s not the place for the United States to choose Iraq’s leaders,” Obama said. “It is clear, though, that only leaders that can govern with an inclusive agenda are going to be able to truly bring the Iraqi people together and help them through this crisis.”

To that end, Obama said the United States will launch a diplomatic initiative to work with Iraq’s leaders and countries in the region and dispatched Secretary of State John Kerry to Europe and the Middle East for talks with allies and partners.
During an exchange with reporters, Obama said his administration has told Maliki there “has to be an agenda in which Sunni, Shia, and Kurds all feel that they have the opportunity to advance their interest through the political process,” and that “as long as those deep divisions continue or worsen, it’s going to be very hard for an Iraqi central government to direct an Iraqi military to deal with these threats.”
Obama said the rapid collapse of two divisions of the Iraqi military and the threat of sectarian conflict “have reminded us of the deep scars left by America’s war in Iraq” and the sacrifice made by nearly 4,500 Americans, as well as “the need for the United States to ask hard questions before we take action abroad, particularly military action.”

But in announcing his decision to send military advisers to Iraq, the president said it is in the U.S. national security interests not to see “an all-out civil war inside Iraq.”

In addition, a senior U.S official said the terrorist group ISIS -- an outgrowth of Al-Qaeda in Iraq -- if not confronted, would attempt to create a caliphate and expand its influence across a huge swath of territory spanning the Iraq-Syria border, creating a safe haven for extremists groups that could eventually target the United States.

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