Tuesday, July 15, 2014

P5+1 NEGOTIATIONS BRIEFING

FROM:  U.S. STATE DEPARTMENT 

Background Briefing on P5+1 Negotiations

Special Briefing
Senior U.S. Administration Officials
Vienna, Austria
July 12, 2014


MODERATOR: Hello. Hi, everyone. Welcome back to Vienna. Thank you for you flexibility today and for coming tonight. First, to start with ground rules. This is all on background as Senior U.S. Administration Officials. Most of you are familiar with our team up here. [Senior U.S. Administration Official One] will give some opening remarks and then we’ll open it up for questions. We have a bunch of folks up here who can answer them, including, I think most of you know [Senior U.S. Administration Official Two], and has been doing these talks for a long time as well, so – but all of that will be on background. No matter who it is, Senior Administration Officials. Please keep us honest on this.

So in a moment I’ll turn it over to [Senior U.S. Administration Official One] and then [Senior U.S. Administration Official One] will give some brief opening remarks and then we’ll do questions. When we do Q&A, please, even though we know most of you, identify yourself and your outlet so we make sure we all know who you are. So, with that.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Okay. Thank you. Thank you all for being here this evening and welcome to today’s backgrounder.

It’s been a very busy 10 days since we arrived in Vienna. We all have to stop and remember what day of the week it is. They’ve all sort of blended together, so I know for all of you, it’s been a difficult 10 days as well, because we try to keep it fairly buttoned up, so appreciate your patience.

We’ve had a mix of plenary sessions, expert meetings, bilaterals with all of the other countries here, and of course with Iran, and coordination sessions that are led by the High Representative of the European Union Catherine Ashton, who coordinates and leads these talks. Today, I want to say a few words about what we expect from Secretary Kerry’s visit here tomorrow and about what’s happened in the talks during this round, and then of course, I and my colleagues would be happy to take your questions.

The Secretary is coming to Vienna for consultations with Iranian Foreign Minister Zarif, EU High Representative Ashton, and other foreign ministers from the P5+1, whose schedules allowed them to be here at this time. He will talk with them about where the negotiations currently stand. He obviously will meet with Foreign Minister Zarif and assess Iran’s willingness to make the critical choices it will need to make if we have a chance of getting a comprehensive agreement. And he will see if progress can be made on the issues where significant gaps do remain.
He will then make recommendations to President Obama about next steps in the negotiation. You all have probably noticed there isn’t a whole lot of time left until July 20th, and this is clearly a critical time in these talks. So in many ways, you could consider this a check-in point by the ministers and all of the delegations, even those who cannot bring ministers here because of scheduling conflicts – the BRICS conference is about to start at the beginning of next week – are sending high-level representatives to add to their delegations.

A few additional points: We remain very united in the P5+1. Everybody has their national positions, of course, but when it comes to having one negotiating position for going forward, we have stayed quite united. The sessions that will take place tomorrow are not meant to be a formal ministerial. There will not be a formal plenary session, but rather, a chance for people to check in with their teams on the ground and with each other. As I noted, the Russians and Chinese both have important business to attend to in Brazil this week at the BRIC summit, which complicated their efforts to come, but are sending senior diplomats to Vienna for these meetings as well. So while I know it’s easy to write a story that the P5+1 is in danger of not being united, it’s simply not true.

Second, in terms of what has happened thus far in this round, we’ve made some progress. But on some key issues, Iran has not moved from their – from our perspective – unworkable and inadequate positions that would not in fact assure us that their program is exclusively peaceful, which, as I’ve said to you many times, we have two objectives: that Iran not acquire a nuclear weapon and that they assure the international community that their program is exclusively peaceful. And so far, on some key issues, Iran has yet to be able to take the decisions that are necessary to meet those objectives.

All you had to do is listen this week to the public comments coming from some in Iran’s leadership to see that we are still very far apart on some issues, and obviously, on enrichment capacity. The numbers we’ve seen them putting out publicly go far beyond their current program, and we’ve been clear that in order to get an agreement, that their current program would have to be significantly reduced. So this is one of the gaps, although, of course, not the only one that remains, but a key and core one.

And finally, as we said the other day, it’s worth remembering that this is not a negotiating – a negotiation between two equal parties. It’s certainly a negotiation among sovereign nations and we respect the sovereignty of every country. This is not, however, a mediation. This is the international community assessing whether Iran can come in line with its numerous nonproliferation obligations, to which it has been in violation for years.

To conclude, and then I’ll be happy to take your questions, we do believe there is a way forward here. What the Secretary and all of us will be doing over the coming days is to determine what that path might look like and how we can give all of us the best chance of solving this problem diplomatically, which is what President Obama hopes that all will be able to achieve.
With that, let’s move to your questions.

MODERATOR: Great. And again, and when I call on you, please identify yourself and your outlet.

Yes, go ahead.

QUESTION: Amir Paivar, BBC Persian. We were told that what the Iranian leadership says in public is something you are not focusing on as much as what you hear in the negotiation room. Are you being told the same numbers you referred to in the negotiation room as well?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: What I think I’ll say to that is there is no question that we have heard about Iran’s aspirations for its nuclear program in very specific terms and very specific numbers. And that remains far from a significant reduction in their current program.

MODERATOR: Yes. Go ahead.

QUESTION: Ali Arouzi, NBC News. You say the Secretary’s coming here to gauge Iran’s willingness. Isn’t it getting a bit late in the day to gauge Iran’s willingness? And secondly, you said Iran has to make some very tough choices. The Iranian delegation has consistently said also that the United States needs to make some tough choices. Do you agree with that, and if so, what are the tough choices you have to make?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: I think that the United States has already made a number of very tough choices, and I think that’s evident in the Joint Plan of Action that was negotiated among the P5+1. In that, the President of the United States took, I think, a very bold decision to say that we would be open to discussing a very limited enrichment program to meet the practical needs of Iran.

He also agreed that we could sit down and negotiate a Joint Plan of Action, that we would make some limited sanctions relief available to Iran and some of their frozen assets in bank accounts around the world if they would take very concrete steps. Iran chose to take those very concrete steps, and we followed through in what our obligations were.

So I think the good news of the JPOA, it shows that in fact we can each take difficult decisions to try to reach an agreement. Now we’re talking about a comprehensive agreement and we’re talking about the very heart of Iran showing the international community, not just with its words, because of course we have the Supreme Leader’s fatwa and saying that Iran has never had an interest in having a nuclear weapon. Now we have to have concrete actions that are verifiable.
I think that everyone at the table has come with ideas. We have presented a number of proposals, concepts, ways forward, that we think are very thoughtful and acknowledge the tremendous scientific knowhow that Iran has, but at the same time really does mean that Iran must address the international community’s concerns. We’re talking about a decade of violations of obligations under the NPT, such that the UN Security Council has passed four resolutions and required international sanctions that have been imposed by the international community. So that’s really what’s at stake here.

SENIOR U.S. ADMINISTRATION OFFICIAL TWO: And I would just add that it is certainly late in the day in these negotiations, but it’s not too late for Iran to take the steps that are necessary to give the international community confidence.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Good point.

MODERATOR: Go ahead, Lou.

QUESTION: Thanks. Lou Charbonneau, Reuters. I wanted to maybe first follow up on the comment that [Senior U.S. Administration Official Two] just made. And so if it’s not – there are only a few days left until July 20th, and here we’ve heard how large the differences are. Is one of the issues that will be discussed a possible extension of the talks? And, I mean, how workable is this? It does seem that some in Congress – we had a story yesterday that it seems like it would probably go through. And then the Brits have released a statement saying that Gaza will be discussed tomorrow, the situation there. And so I don’t know if maybe you could say a word or two on that.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: So let me say a couple things and then Senior Official sitting to my right here might want to add something.

The ministers are not coming here to discuss an extension. The ministers are coming here, as we said in the statement about Secretary Kerry’s coming, to assess the situation, to see whether more substantive progress can be made while they are here, to see that in fact we get done everything we can possibly get done. If, at the end of that process, we have not come to a final agreement, then we will assess where we are and the Secretary will make recommendations to the President about next steps.

We have always said that if we can make some significant progress, that if we thought we needed some additional time, we thought the world would probably want us to take it, and to get to a final agreement. But what the ministers are coming here to do is to assess whether, in fact, we have made and are making and will make, in the eight days remaining, enough progress that it warrants, indeed, us continuing that work if we cannot get to a final agreement. And as you’ve noted, it’s difficult to do – not impossible, but it is difficult to do.

In terms of the issue on Gaza, these are foreign ministers. Whenever they show up anywhere, they discuss whatever is happening in the news and in the day. But they are coming here very focused on this negotiation. None of them are going to be here for a long, long time, so their first priority is going to be to see what they can do to move this negotiation forward and to make substantive progress. I would be very surprised if foreign ministers, wherever they show up, wouldn’t talk about the issues of the day.

QUESTION: A quick follow-up on that, if I may?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Yeah, and then --

QUESTION: For – just what you said about --

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Yeah, yeah.

QUESTION: So are you planning to work down to the wire, up to the 20th and now --

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: We have always said we would work till the last moment. We have always said so. I don’t know whether [Senior U.S. Administration Official Two] wants to add something, particularly about Congress, because some of us have lived here in Vienna now for 10 days. Some people got to go home for a few days, but that person did spend some time chatting with members of Congress, so you might want to add something.

SENIOR U.S. ADMINISTRATION OFFICIAL TWO: I would just add two points. First, as we’ve made clear, the Secretary, Secretary Kerry, is focused on determining whether a comprehensive agreement can be reached in the next few days, and that’s going to be his focus when he’s here.

Now if that can’t happen by July 20th, both the Administration and Congress are on the same page, which is that we obviously have to consider all of our options. But we – it would be hard to contemplate things like an extension without seeing significant progress on key issues. And that’s what we’re going to be looking for here over the next few days. We’re going to be trying to get to a comprehensive agreement and then we’ll think about everything else as we go forward. And in that, I think Congress and the Administration are approaching this with the same perspective.

On Gaza, the one point I’d like to underscore is that Iran has a longstanding record of supplying weapons, rockets to various terrorist groups in Gaza, including Hamas; that those rockets are being used to fire at civilian areas; and that Iran has a responsibility to cease and desist from continuing to supply weapons of war that are fueling this conflict. And any opportunity that we get to communicate that message to them, we will take.

MODERATOR: Yes, George. Go ahead.

QUESTION: It’s kind of a – George Jahn, Associated Press. It’s kind of a peripheral issue, this whole issue of unity, but it pops up every so often, and Mr. Ryabkov today spoke to some Russian media and said, basically, our national interests trump unity. And they do have national interests with Iran that are quite strong and they’re trying to develop them even further. Why would he choose to make this comment at this point? Thank you.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: You’ll have to ask Mr. Ryabkov – (laughter) --

QUESTION: He’s --

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: -- why he – and he’ll be back here, I think, sometime tomorrow, I believe. But – he’s here already?

QUESTION: Yes, he’s already here.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Excellent, so then you – excellent. He was trying to get back sooner. He was in Brazil himself getting ready for the BRIC meeting, so I’m glad to hear he’s back. He’s a good colleague.

QUESTION: I have a follow-up question (inaudible).

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: But – so --

MODERATOR: Do you have any more you’d like to say?

QUESTION: Is that it?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: What I would say is you’ll have to ask the Russians why they said what they said. All I can tell you is that we all have national interests; of course we do. But we have all been completely unified in the objective of this negotiation and the key issues that need to be pursued.

MODERATOR: Yes. David Sanger.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Please introduce yourself.

QUESTION: I’m David Sanger from The New York Times. The statement that you made earlier about the public statements that have been made by Iranian officials, I assume you were referring to the Supreme Leader’s comments a few days ago. What they seem to reflect was a fundamental argument by the Iranians that they still need to be able to move to industrial production; if not right away, then I think in this – in the talk, he said five years from now or sometime after that.

As you look at the fundamental differences right now – not the numbers, but the fundamental differences – is there still a view among the Iranians that industrial production is their key goal? And is it still your view that only, as you said, a very limited enrichment capability for a long period of time is your key goal?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Absolutely, our key goal is a very limited enrichment program. As you know, we believe that what would be best is no indigenous enrichment program at all, but if there is to be one, then it should be limited for a very long duration of time. And the United States is on record worldwide, believing that no one should have an industrial-scale enrichment program, that it’s not necessary, that fuel is available on the open market. You all know that we negotiate 123 agreements all over the world about what people’s programs – nuclear programs are going to look like, their civil-nuclear program, how they’re going to provide fuel for those programs.

QUESTION: But we have one in the United States.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Huh?

QUESTION: We have one in the United States.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Indeed we do, but we are one of the original NPT states, so for non-nuclear weapons NPT states, we have worked worldwide to really limit those who have indigenous enrichment.

Now the reality is that, as well, as you know, President Obama has been a leader in the world to decrease the number of nuclear weapons in the world, including our own, and hopes that sometime in the future – maybe not in my lifetime, I hope in the President’s lifetime – that in fact, we have no nuclear weapons.

So I don’t – I think where we are, David, in this negotiation, is we believe that right now, we are at a place where Iran is in violation of its NPT obligations and its obligations to the UN Security Council. For some period of time, they’re going to have to have a very limited, very constrained program that will have inspections, verification, monitoring, and a lot of limitations on what they can do. At the end of that duration, they will be, like any other non-weapons – nuclear non-weapons NPT state and will make their own choices.

QUESTION: When you said a limited period of time, how long a period of time?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Yes.

QUESTION: Can you measure this in years, decades? What’s your concept?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: We’ve said always double digits, a long time.

MODERATOR: Great. The gentleman from Bloomberg on the far right, the non-Indira Bloomberg reporter. I know that’s a good title to have.

QUESTION: I’m happy to be called a gentleman, thank you. (Laughter.) And thank you, Mr. Sanger, because my question fits into that. Mr. Lavrov is going to a country tomorrow where Russia has announced it will be negotiating nuclear deals. Now the country he’ll be visiting tomorrow developed a indigenous enrichment program by military junta in secret using a technology, gaseous diffusion, that had exclusively been used for bombs. And that country, which is Argentina, announced 10 days ago that it was going to implement an industrial-scale 20,000 (inaudible) program.

So I know you don’t answer questions directly, but I would like to ask you, what can Iran, and the P5+1, for that matter, learn from the Argentine instance?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Well, look, every situation is sui generis to some extent, and there is a long history to where Argentina is today. What I would say is that we are looking at this instance and this particular situation where Iran has been outside of its obligations to the NPT and the UN Security Council for over a decade. And I think, quite wisely, Iran came to the negotiating table wanting to re-enter the international community, to meet its obligations, to become a normal nuclear non-weapons NPT state. It’s going to take them some time to get there. There are a number of things they need to do to be able to get there. But there is a path for them to do so, and quite frankly, to have a very modern, civil nuclear program that meets the needs of their people within constraints that will give the international community assurance that they will not obtain a nuclear weapon and that their program is exclusively peaceful.

Should they choose to do that, and I hope that they do because I think it’s in the interests of their own country to do so, though they will define those interests – not me, as they tell me all the time – if they do so, then I think the return for the country economically, politically, domestically, and in the world is quite substantial.

MODERATOR: Laurence Norman from The Wall Street Journal. I’ll introduce you.
QUESTION: Thanks, hi. Two – a couple of questions if I may. First of all, just a detail of how long people are going to be here for. You said they’re not coming for very long. Can we take from that that Mr. Kerry will be leaving on Monday definitely, or is that still in play?

And secondly, there’s a lot of focus on the enrichment issue, but you said at the beginning that there are some issues that have made some progress. I know you don’t know – I certainly know you’re not going to sit here and list them off for us, but can you give us a sense of whether you feel that those other issues are really – that we all know are really beginning to come together to take shape could be turned into a deal?

And just finally, you said double digits before. Just for the sake of a clean quote, can we say that the U.S. position is asking for at least 10 years as a duration of this accord?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: I think it’d be better to leave it just to double digits, even though I take your point. Trying to get a number is a good thing, but I’m not going to give you one.

Second, in terms of the Secretary’s schedule, those of you who have had the pleasure of traveling with the Secretary of State, for me to try to predict his schedule would be an insane feat on my part. I don’t think that, had you asked me in the beginning of the week whether the Secretary of State was going to be in Kabul today, I would have said yes. So if you ask me if he’s going to leave here – come here tomorrow and leave here tomorrow, I can’t tell you a thing.
All I can tell you is that the ministers are coming here for a check-in. They are not coming here to be the negotiators, to work text. They are here to see if they can help move substantial progress on the areas in which there are some serious gaps. And I think you all understand well enough, in a negotiation, that when parties know ministers are showing up, they’re going to wait to see what can be accomplished. And we hope that something can be further accomplished, because as [Senior U.S. Administration Official Two] pointed out, we need to see some additional progress in this.

As to areas in where there has been progress, there has been some. There are areas in which the gaps have narrowed so that one can see if everything else fell in place, that that would probably fall in place. Remember we’ve talked about this Rubik’s Cube concept 100 times here. You can have every piece fall in place and that last one won’t go into the tumbler until everything else is in place. So one can see that there are places where there’s progress and you might get that final step taken if something else falls into place as well. It’s a negotiation.
QUESTION: Can I just follow that up (inaudible)?

MODERATOR: Yeah.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Yeah.

QUESTION: Are they significant areas? Are these other areas where there’s been progress, are they significant keys?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: They can become significant areas once other pieces fall into place.

MODERATOR: Great. Laura Rozen.

QUESTION: Laura Rozen from Al-Monitor. Thank you for doing this. You all have had the chance to be in the room with the Iranians when they do show flexibility or there has been progress after weeks and weeks or – I’m sure of arguing over differences. Can you just give us a sense, not on the specific substance necessarily, but how do you see movement with them? Things that were intractable in conversations two weeks ago, how might it move? Because many of us are trying to wonder on these big things, because we understand both your positions very well, how might they move, or you might move? Thank you.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Well, look, when we came in here, we did not have a text. We have a text that we are working off of. There are brackets that remain in that text. But nonetheless, it has made some progress moving forward. Some of the brackets have been taken out. I think Baroness Ashton and her deputy Helga Schmid have worked constantly, very difficult. The Iranians are very good negotiators. Their English is quite good and we – as you all know, this is done in English and words mean a great deal. My lawyers tell me that every single day as we look over this.

So this is a process of discussion, but also of coming up with ideas, ways that one might get from here to there. Sorry I’m not giving you a whole lot, but doing the best I can.

QUESTION: Can I ask one follow-up?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Yeah.

QUESTION: Because so much of what they’re arguing for in terms of industrial-scale enrichment and not having to be dependent on a foreign power to provide fuel for their power program at some point is a pride – I mean, kind of. And I noticed you using language today talking about their technological achievements. Are there ways that, recognizing their research potential or right, would be able to compensate them for a longer delay in this thing that’s very important to them?
SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Right. We’ll see. As I said, there are a number of ideas that are on the table, a number of ways forward. We’ve also talked in this room that this is a package; this is not about any one element. All the pieces have to come together to reach the objectives of making sure they can’t acquire a nuclear weapon and that their program is exclusively peaceful. I think that what we are talking about here is how you get from where we are today to normal, and that’s going to be a long duration of time because of past history, under a lot of constraints, but there will come a point, if Iran does make these choices, where they will be free to be like any other non-nuclear NPT state, non-nuclear weapons NPT state.

MODERATOR: Okay, let’s see, who haven’t I – Michael Wilner. Who haven’t I gone to yet?

QUESTION: Yes. Hi. Michael Wilner with The Jerusalem Post. My question is on the role of Congress, and I know I’ve asked you this before, but they don’t seem entirely thrilled with what they’ve gotten. No surprise there. They sent this week a letter; 344 members of Congress signed onto it. And what they said was that there is no such thing as nuclear-related sanctions that are designated in the laws that they’ve passed. Now, your colleague, Catherine Ashton, has said that her mandate is to negotiate specifically on only nuclear-related issues and that that doesn’t include ballistic missile issues or technology, it doesn’t include certainly terrorism-related matters. Do you agree with her on that and do you read the law differently? Is your understanding that the U.S. does demarcate nuclear-related sanctions?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: What we have said to Iran and what was discussed in the Joint Plan of Action where we promised, working within our system which has checks and balances, that we would not – we would work with our Congress so that there would be no new nuclear-related sanctions, and we make a distinction between nuclear-related sanctions and sanctions on human rights, sanctions on terrorism, and they – those will all stay in place.

We are in consultations with Congress. Congress has played a very critical role in this negotiation. I do not believe that Iran would be at the table except for the leadership that Congress has shown on their concerns for these issues and for the sanctions that were passed in addition to the very critical UN Security Council resolutions which passed international sanctions, and the European Union’s actions, and individual countries’ actions around sanctions. I think Congress plays in that regard a critical and leadership role, and we see them as very important partners.

Both the letter from the House and the letter from the Senate really talk about wanting to ensure that partnership continues, that Congress will play an active role in anything that comes out of these negotiations, and we would absolutely agree that they will.
You want to add?

SENIOR U.S. ADMINISTRATION OFFICIAL TWO: Yeah, I would just add that I think we agree with Congress that sanctions are not an end in themselves; they’re a means to an end. And many of the sanctions that Congress has passed in partnership and consultation with the Administration have been designed to help produce progress at the negotiating table. We believe the Joint Plan of Action was the result of the strategy we developed. We believe that progress in these talks can be connected to that as well.

To say that there is not one single sanction that can be lifted in the context of a nuclear agreement, of course, is not a plausible position. Equally true to say that all sanctions get lifted in the context of a nuclear agreement is not plausible because there are, as my colleague said, terrorism and human rights-related sanctions that are quite specifically targeted at other behavior of Iran.

So ultimately, this is going to be a negotiation within these talks, and then consultation with Congress to determine what are effectively nuclear-related sanctions and what are not. And we believe that we can find a way forward on that that works for everybody.

MODERATOR: Yes, Paul Richter, the L.A. Times.

QUESTION: Hi. If the Secretary determines that Iran is not willing to go ahead, is that the moment when you begin discussing an extension, or does his determination mean the show has ended and there’s no purpose in further discussions?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Well, as I said, Paul, I think we’ve made some progress, and I think that we hope that the ministers being here will build on that progress, and that we can keep moving forward toward that comprehensive agreement. And as I said, it’s not impossible to complete it by the end of these eight days – difficult. But we certainly want to make substantial progress such that we can make an assessment about the best way forward from there.

I don’t want to prejudge what the Secretary will think or say or what he will recommend to the President of the United States. So this is the check-in. He will have direct discussions with Baroness Ashton. He will have direct discussions with his ministerial partners in the P5+1, with the senior diplomats who are coming here from Russia and China, and with Minister Zarif. And then he will assess where we are and give those of us who are here to continue negotiations – and I would include my colleagues who are sitting up here as well – as I think most of you know, Deputy Burns has returned here as well.

So we will see what is possible and then we will decide what’s the best way forward. But right now, we are entirely focused on seeing what additional substantive progress can be made.
MODERATOR: Let’s just do two more, I think. Who hasn’t had one? Hannah Kaviani.

QUESTION: Yeah, thank you. Hannah from Radio Free Europe. I want to go back,
unfortunately, to digits. You mentioned in your comments that Supreme Leader’s words last week basically shows where the gap is, and I wanted to see his position on the timeframe that Iran should have met its practical needs in its nuclear program, is also where it shows you the gap in your positions, or this timeframe that he mentions – not now, not two years, not five years – is something that can help you in the process of negotiations?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Well, there is no question, Hannah, that those statements that talk about what Iran’s aspirations are, but not necessarily aspirations that are met today, are – is important. And we certainly have noted that and we hope that that will be considered in working through an agreement for a period of time that is necessary to provide the assurances that the international community is looking for.

MODERATOR: Okay, let’s do one more. We’re going to go up here.

QUESTION: Yeah, if I may, a totally different subject.

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Tell me your name and where you’re from.

QUESTION: My name is (inaudible). I’m with Suddeutsche Zeitung in Germany. So I would be interested if you can give us an idea what the Secretary and his German counterpart are going to talk about on the recent spy cases in Germany. I understand that the U.S. Government is not happy that the German Government has asked the highest-ranking intelligence official to leave the country. What is the Secretary going to offer to kind of smooth things, as has been said in Washington?

SENIOR U.S. ADMINISTRATION OFFICIAL ONE: Well, our relationship with Germany is a very critical one and a very important relationship. We very much look forward to the conversation between Foreign Minister Steinmeier and Secretary Kerry tomorrow. They are close colleagues who consult frequently on every subject that’s taking place in the world, but tomorrow they will be focused on how they can get substantive progress in this nuclear negotiation.

MODERATOR: Great. Well, thank you all for coming. As a reminder, especially for those who walked in late, this is all on background: Senior U.S. Administration Officials. We’ll keep you posted on when we’ll have further backgrounders, and we’ll do a transcript tonight as well, and there’s no embargo. So with that, have a great rest of your evening.

President Obama Hosts an Iftar Dinner



HHS SECRETARY ANNOUNCES NEW COLLABORATION WITH STATES TO IMPROVE MEDICAID BENEFICIARY CARE

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 
New resources improve states’ abilities to advance Medicaid payment and delivery system reform

Monday, Health and Human Services Secretary Sylvia M. Burwell announced a new innovative collaboration with states to improve care for Medicaid beneficiaries by accelerating efforts in reforming their health care systems to improve health and care while reducing costs.  The goals and activities of the Medicaid Innovation Accelerator Program build on many of the recent recommendations made by the National Governors Association’s (NGA) Health Care Sustainability Task Force.

This initiative is consistent with states’ recommendation that the Centers for Medicare & Medicaid Services (CMS) identify opportunities for care improvement and addressing high priority areas such as mental health and emergency department utilization.  Through the Medicaid Innovation Accelerator Program, HHS is investing over $100 million in technical support to help states in their efforts to improve health, improve care and decrease costs for their Medicaid beneficiaries.  While complementing other federal-state delivery system reform efforts such as the State Innovation Models initiative, this new initiative will help jumpstart innovation by providing federal tools and resources to support states in advancing Medicaid-specific delivery system reform.

“Medicaid innovation is moving forward, and the new Medicaid Innovation Accelerator Program, announced in response to recommendations from Governors, will give states the opportunity to even further strengthen their great work,” said Secretary Burwell.  “HHS will provide strategically targeted resources that states can leverage to enhance the impact of their efforts to transform health care.”

“We are very pleased by this new effort to develop performance partnerships with states that can deliver better health outcomes at a cost we can afford,” said Oregon Gov. John Kitzhaber. “Using the reform principles developed by a bipartisan NGA Health Care Sustainability Task Force that I co-chaired with Governor Haslam, Oregon has begun to prove these principles can deliver. We look forward to working with HHS, NGA and other states to scale this work.”

“The Task Force's recommendations highlighted many key areas that needed reform, and I appreciate the continued conversations CMS has had with us about these areas," said Tennessee Gov. Bill Haslam. "This new initiative and investment demonstrate that there is great benefit to state-federal collaboration.”

The Medicaid Innovation Accelerator Program will develop Medicaid specific resources to support state-based innovative health care reform efforts by identifying and advancing new Medicaid service delivery and financing models to improve patient care by providing data analytics, improving quality measurement and rapid cycle evaluation capabilities, and advancing effective and timely dissemination of best practices and learning among states.

Monday, July 14, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JULY 14, 2914

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

AIR FORCE

Lockheed Martin Corp., Gaithersburg, Maryland (FA87732-13-D-0001); Jacobs Technology, Fort Walton Beach, Florida (FA8732-13-D-0002); SRA International, Fairfax, Virginia (FA8732-13-D-0003); L-3 National Security Solutions, Reston, Virginia (FA8732-13-D-0004); Raytheon, Garland, Texas (FA8732-13-D-0006); InfoReliance Corp., Fairfax, Virginia (FA8732-13-D-0026); CACI-ISS, Inc., Chantilly, Virginia (FA8732-13-D-0027); Northrop Grumman Information Systems, Herndon, Virginia (FA8732-13-D-0028), General Dynamics Information Technology, Needham, Massachusetts (FA8732-13-D-0029); and International Business Machines Corp., Reston, Virginia (FA8732-13-D-0030) are being awarded a $960,000,000 multiple award, indefinite-delivery/indefinite-quantity (ID/IQ) contract for Network-Centric Solutions-2 (NETCENTS-2) Application Services. This contract vehicle will provide services such as sustainment, migration, integration, training, help desk support, testing and operational support. Other services include, but are not limited to, exposing data from Authoritative Data Sources to support web-services or Service Oriented Architecture constructs in Air Force enterprise environments. This contract vehicle is the mandatory source for all USAF units purchasing services that fall under the scope of the contract. Because this is an ID/IQ contract, the location of performance is not known at this time and will be cited on individual delivery orders. The period of performance is 10 years. This award is the result of a competitive acquisition; offers were solicited electronically through FedBizOps and 21 offers were received. The contract ceiling for NETCENTS-2 Application Services Full and Open remains the same at $960,000,000. NETCENTS-2 is a set of five categories of contract capabilities spanning Netcentric Products, Network Operations and Infrastructure Solutions, Applications Services, Enterprise Integration and Service Management, and Information Technology Professional Services. An obligation of $2,500 has been issued to each of the awardees utilizing fiscal 2013 operations and maintenance funds for the original awards and fiscal 2014 operations and maintenance funds for the five new awards. This is not a multi-year contract. Air Force Life Cycle Management Center/HICK, Maxwell Air Force Base-Gunter Annex, Alabama, is the contracting activity.

NAVY

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $278,649,002 modification to the previously awarded F-35 Lightning II Low Rate Initial Production Lot VI contract (N00019-11-C-0083). This modification provides for non-recurring sustainment activities, to include procurement of Depot Phases I-IV sustainment activities. Work will be performed in Fort Worth, Texas (35 percent); El Segundo, California (25 percent); Warton, United Kingdom (20 percent); Orlando, Florida (10 percent); Nashua, New Hampshire (5 percent); and Baltimore, Maryland (5 percent), and is expected to be completed in October 2018. Fiscal 2012 aircraft procurement (Navy and Air Force) funds and international partner funds in the amount of $278,649,002 will be obligated at time of award, $236,913,238 of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

Northrop Grumman Systems Corp, Maritime Systems, Charlottesville, Virginia, is being awarded a five year, not to exceed $61,177,585 firm-fixed price, performance based logistics contract (N00104-14-D-ZD00), for logistics support, which includes managing the systems by furnishing repaired and new units for approximately 202 items for the WSN Ring Laser Gyro Navigation System, AN/BPS-15/16 Radar Set Weapon System, Guided Missile Destroyer Steering/Scalable Integrated Bridge System, and SPQ-9B Radar Set items. Work will be performed in Charlottesville, Virginia, and is expected to be completed by July 14, 2019. Fiscal 2014 Navy working capital funds in the amount of $2,578,529 will be obligated at the time of award. The contract funds will not expire before the end of the current fiscal year. This contract was a sole source requirement in accordance with 10 U.S.C. 2304 (c)(1). The NAVSUP Weapon Systems Support, Mechanicsburg, Pennsylvania, is the contracting activity.
BAE Systems Information and Electronic Systems Integration, Inc., Greenlawn, New York, is being awarded a $12,420,183 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the procurement of 249 Mode 5 Combined Interrogator Transponder (CIT) Kits for the U.S. Navy (132) and the governments of Finland (69), Australia (46) and Switzerland (2), in support of the F/A-18 aircraft. In addition, this contract provides for the procurement of 26 power supply Shop Replaceable Assemblies for the U.S. Navy; 10 Integrated CIT systems for the governments of Finland (8) and Switzerland (2); and one lot of Production Acceptance Test Capability for the U.S. Navy. Work will be performed in Greenlawn, New York, and is expected to be completed in March 2017. No funds are being obligated at time of award. Funds will be obligated on individual delivery orders as they are issued. This contract was not competitively procured pursuant to FAR.6.302-1. This contract combines purchases for the U.S. Navy ($7,570,415; 61 percent); and the governments of Finland ($2,874,560; 23.1 percent); Australia ($1,879,744; 15.1 percent); and Switzerland ($95,464; .8 percent), under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-D-0025).

The Boeing Co., St. Louis, Missouri, is being awarded a $6,947,488 modification to a previously awarded firm-fixed-price contract (N00019-14-C-0032) for aircraft armament equipment items: SUU-789A/A centerline pylons for the Navy (35) and Royal Australian Government (RAAF) (15); and ALE-50 well covers for the U.S. Navy (11). Work will be performed in El Segundo, California (95 percent); Irvine, California (4 percent); and St. Louis, Missouri (1 percent), and is expected to be completed in May 2017. Fiscal 2013 and 2014 aircraft procurement (Navy) funds in the amount of $4,907,038 and foreign military sales funds in the amount of $2,040,450 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This contract combines purchase for the U.S. Navy ($4,907,038; 70 percent) and the government of Australia ($2,040,450; 30 percent) under the Foreign Military Sales Program. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

ARMY

Voith Hydro, Inc., York, Pennsylvania (W9127N-14-D-0003); National Electric Coil, Inc, Columbus, Ohio (W9127N-14-D-0004); Alstom Power Inc., Littleton, Colorado (W9127N-14-D-0005); and Andritz Hydro, Corp., Charlotte, North Carolina (W9127N-14-D-0006), were awarded a $99,500,000 firm-fixed-price contract for the rehabilitation and/or replacement of generating equipment at U.S. Army Corps of Engineers hydroelectric facilities within the Northwestern Division: Portland District, Seattle District, Walla Walla District, Omaha District and Kansas City District. This may also be used to perform emergency nonroutine maintenance and assessment at Northwestern Division hydroelectric facilities. Bids were solicited via the Internet with five received. Funding and work location will be determined with each order with an estimated completion date of July 13, 2019. U.S. Army Corps of Engineers, Portland, Oregon District is the contracting activity.

Lockheed Martin Corp., Grand Prairie, Texas, was awarded a $28,453,514 modification (0007) to foreign military sales (Kuwait) contract W31P4Q-12-G-0001 for the Launcher Modification Kit Phase II Redesign for the Patriot PAC-3. Fiscal 2014 other procurement funds in the amount of $28,453,514 were obligated at the time of the award. Estimated completion date is Sept. 30, 2017. Work will be performed at Grand Prairie, Texas; Clearwater, Florida; Minneapolis, Minnesota; and Aguadilla, Puerto Rico. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.

IBM Corp., Reston, Virginia, was awarded a $12,223,063 modification (P00007) to contract W912DY-13-F-0037 Army General Fund Audit Support Services. Fiscal 2014 operations and maintenance (Army) funds in the amount of $12,223,063 were obligated at the time of the award. Estimated completion date is Jan. 19, 2015. Work will be performed in Reston, Virginia. Army Contracting Command, Aberdeen, Maryland, is the contracting activity.

DEFENSE LOGISTICS AGENCY

AvKare, Inc.,* Pulaski, Tennessee, has been awarded a maximum $9,728,923 firm-fixed-price, requirements contract for purchase of pravastatin. This contract was a competitive acquisition and three offers were received. Locations of performance are Tennessee, Czech Republic and Israel, with a July 18, 2015, performance completion date. This is a one-year base contract with four one-year option periods. Using services are military and federal civilian agencies. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D2-14-D-0004).

*In HubZone Service-Disabled Veteran-Owned Small Business

AG HOLDER HOLDS PRESS CONFERENCE TO ANNOUNCE $4 BILLION FINANCIAL FRAUD SETTLEMENT

FROM:  U.S. JUSTICE DEPARTMENT 
Attorney General Holder Speaks at Press Conference Announcing Major Financial Fraud
Washington, D.C. ~ Monday, July 14, 2014

Good morning – and thank you all for being here.  Today, I am joined by Associate Attorney General [Tony] West; United States Attorney for the Eastern District of New York [Loretta] Lynch; United States Attorney for the District of Colorado [John] Walsh; and Acting Inspector General for the Federal Housing Finance Agency [Michael] Stephens – as we announce a significant step in our ongoing effort to hold accountable those whose actions have threatened the integrity of our financial markets and undermined the stability of our economy.

Today, the Justice Department attained a landmark civil resolution with Citigroup totaling $7 billion in fines and consumer relief to address the bank’s involvement in a scheme to sell fraudulent securities that were backed by toxic loans.  This total includes a civil penalty of $4 billion, the largest penalty to date of its kind.

The penalty is appropriate given the strength of the evidence of the wrongdoing committed by Citi.  Despite the fact that Citigroup learned of serious and widespread defects among the increasingly risky loans they were securitizing, the bank and its employees concealed these defects.  They misrepresented the facts, including the level of risk.  They sold defective loans to countless investors, including federally-insured financial institutions.  And they made false statements to investors, in marketing materials, and even in documents filed with the Securities and Exchange Commission.  They led investors and the public to believe that these financial products had been originated in compliance with the law and key underwriting guidelines when this was often not the case.

The bank’s misconduct was egregious.  And under the terms of this settlement, the bank has admitted to its misdeeds in great detail.  The bank’s activities shattered lives and livelihoods throughout the country and around the world.  They contributed mightily to the financial crisis that devastated our economy in 2008.  While Citigroup was not alone in its willingness to ignore internal warnings and disregard the law in order to defraud consumers and investors, as a result of their assurances that toxic financial products were sound, Citigroup was able to expand its market share and increase profits.  They did so at the expense of millions of ordinary Americans and investors of all types – including other financial institutions, universities and pension funds, cities and towns, and even hospitals and religious charities.  Ultimately, these investors suffered billions of dollars in losses when Citi’s false and fraudulent claims came crashing down.

Today, we hold the bank accountable for this wrongdoing – which had devastating ripple effects that cascaded through economies and financial institutions across the globe.  I want to thank U.S. Attorneys Lynch and Walsh, along with their dedicated staff members, for their leadership in making this resolution possible.  Alongside attorneys, analysts, and other committed public servants assigned to the RMBS Working Group – part of the President’s Financial Fraud Enforcement Task Force, which I am proud to chair – they questioned a succession of witnesses, sifted through terabytes of data, and reviewed millions of documents.

In addition to the historic $4 billion penalty assessed against Citi, this resolution also includes $2.5 billion in relief that will be provided to those homeowners and communities affected by the bank’s fraudulent activities.  This assistance has become a must-have element in our agreements with banks that contributed to the mortgage crisis.  It will remain so.

Importantly, this agreement does not in any way absolve Citigroup or its individual employees from facing any possible criminal charges in the future.

Taken together, we believe the size and scope of this resolution goes beyond what could be considered the mere cost of doing business.  In fact, it was not at all inevitable in these last few weeks that this case would be resolved out of court.  But in all of its cases, the Justice Department is committed to delivering outcomes that are commensurate with the misconduct at issue.

This action is merely the latest step in our active and ongoing pursuit of those whose activities defrauded the American people and inflicted grave damage on our financial markets.  Citi is not the first financial institution to be held accountable by this Justice Department, and it will certainly not be the last.  In the investigations that remain open, we will continue to move forward – guided by the facts and the law – to achieve justice for those affected by the financial crisis.  These investigations are not only about holding those who violate the public trust to account; they are also intended to deter banks from engaging in this type of conduct in the future.

Now I’d like to turn things over to Associate Attorney General Tony West, who will provide additional details on today’s announcement.

NASA | WFIRST: UNCOVERING THE MYSTERIES OF THE UNIVERSE

MAN SENTENCED IN $10.5 MILLION MEDICARE FRAUD CASE

FROM:  U.S. JUSTICE DEPARTMENT 
Friday, July 11, 2014

South Florida Man Sentenced to Prison for $10.5 Million Medicare Fraud Scheme
A south Florida man was sentenced in federal court in Tampa, Florida, to serve 48 months in prison in connection with a $10.5 million Medicare fraud scheme involving physical and occupational therapy services.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III for the Middle District of Florida, Acting Special Agent in Charge Ryan Lynch of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) region including all of Florida, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.

Luis Alberto Garcia Perojo (Garcia), 43, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud.   In addition to his prison term, he was sentenced to serve three years of supervised release and ordered to pay $6,248,056 in restitution, jointly and severally with his co-conspirators.

According to documents filed in the case, Garcia conspired with others to execute a health care fraud scheme through Renew Therapy Center of Port St. Lucie LLC (Renew Therapy), a comprehensive outpatient rehabilitation facility that he helped operate.   From November 2007 through August 2009, Renew Therapy submitted approximately $10,549,361 in fraudulent claims for reimbursement to Medicare for therapy services that were not legitimately prescribed and not legitimately provided to Medicare beneficiaries.   As a result of those fraudulent claims, Medicare deposited approximately $6,248,056 into a Renew Therapy bank account.   The fraud proceeds in that account were subsequently disbursed to various entities, including $1,847,222 to Ariguanabo Investment Group Inc. and IRE Diagnostic Center Inc.   Garcia was President of Ariguanabo Investment Group and had authority over bank accounts for Ariguanabo Investment Group and IRE Diagnostic Center, both of which were shell companies.   Garcia and others used this money from Renew Therapy for, among other purposes, paying kickbacks to obtain Medicare beneficiary identifying information that was used in Renew Therapy’s fraudulent reimbursement claims.

This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida.   This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion.   In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

EXPORT-IMPORT BANK PROVIDES $64.5 MILLION DIRECT LOAN TO URUGUAYAN COMPANY TO PURCHASE U.S. WIND TURBINES

FROM:  EXPORT-IMPORT BANK 
Ex-Im Bank Finances Export of U.S.-Manufactured Wind Turbines to Talas de Maciel Wind Farm in Uruguay 

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) is providing a $64.5 million direct loan to Astidey S.A., in Montevideo, Uruguay, for the purchase of U.S.-manufactured wind-turbine generators being exported by Gamesa Technology Corporation Inc., headquartered in Feasterville-Trevose, Pa.

The authorization, which is Ex-Im Bank's second wind transaction in Uruguay, will support approximately 400 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.

Gamesa will supply, transport, install and commission 25 of its G97 2.0-megawatt (MW) wind turbines in the 50 MW Talas de Maciel I wind farm in the Department of Flores, Uruguay, located approximately 135 kilometers northwest of Montevideo. The agreement also includes Gamesa’s operation and maintenance of the facility for 20 years.

"We at Ex-Im Bank are committed to providing the export financing needed to support American jobs in a very competitive global marketplace," said Ex-Im Bank Chairman and President Fred P. Hochberg. "By supporting exports in the renewable-energy sector, we are not only creating jobs here at home but ensuring that American manufacturing continues to thrive."

The Bank’s support for the transaction was needed due to a lack of long-term financing available from commercial lenders. Wind-energy projects typically require longer repayment terms due to the extended amount of time needed for installation and operation at full capacity.

"Gamesa has a strong track record of Latin American projects supported by Ex-Im Bank, which continues to work with us to create new opportunities for growth and expansion. With their competitive rates and expertise, Ex-Im Bank is opening up new markets for U.S.-manufactured goods, which is helping to sustain American jobs across the supply chain," said Borja Negro, CEO of Gamesa North America.

In fiscal year 2013, Ex-Im Bank authorized a $72.6 million loan to support Gamesa’s exports to Palmatir S.A., in Uruguay. The Bank has also supported Gamesa’s exports to wind-energy projects in Costa Rica and Honduras, including the Cerro de Hula project in Honduras, the largest wind farm in Latin America.

Gamesa Technology Corp. designs, manufactures and installs wind-turbine generators and specializes in the turnkey development, operation and maintenance of wind farms. Gamesa has installed more than 29 gigawatts of wind-energy capacity in 44 countries on five continents. The company has more than 19,500 MW under operation and maintenance service contracts globally.

NSF-FUNDED SCIENTIST LOOKS AT WHY GALAXIES CHANGE

FROM:  NATIONAL SCIENCE FOUNDATION 
Exploring dramatic changes in galaxies
Scientist hopes to uncover physical process behind the changes, including cosmic webs and supermassive black holes

The evolution of galaxies over billions of years offers any number of tantalizing clues about the origins of the universe. Alison Coil is trying to solve some of these mysteries by studying how galaxies have been changing over time, and why.

"Galaxies have changed dramatically," says Coil, an associate professor of physics at the University of California, San Diego. "In the past, for example, they formed more stars, and had smaller supermassive black holes. These black holes were more active, brighter and gobbling up materials faster."

The National Science Foundation (NSF)-funded scientist is conducting three research projects with the goal of uncovering some of the physical processes underlying these dramatic changes.

"We are looking at large statistical samples of what galaxies are doing, including nearby galaxies and distant ones," she says.

These include looking at the stellar mass of both nearby and distant galaxies, comparing the properties of galaxies that still are forming stars with those that are not; studying the "clustering" behavior of distant galaxies, that is, the process by which they form a "cosmic web," a filamentary-like structure that resembles a sponge; and quantifying supermassive black holes among distant galaxies.

"This may help us discover if we live in a typical kind of galaxy, and how we came to be, and why we're here," she says. "It tells us something about where we came from. I'd like to understand the galaxy population as a whole, as it helps to put our own Milky Way into context."

Coil is conducting her research under an NSF Faculty Early Career Development (CAREER) award, which she received in 2011. The award supports junior faculty who exemplify the role of teacher-scholars through outstanding research, excellent education, and the integration of education and research within the context of the mission of their organization.

One project is looking halfway back to the Big Bang to compare galaxies still forming stars with those that have stopped. These include nearby galaxies, which formed later and are brighter, as well as distant galaxies, which developed when the universe was younger, and are faint.

"Within the population that is no longer forming stars, there's a lot of growth happening for the lower mass galaxies, they are still getting bigger and there is more of them," she says. "For the population still forming stars, the massive galaxies disappear, and are turning into the other population, those whose star formation has turned off.

"We don't know why," she adds. "We know that one kind turns into the other kind, but we don't know what is shutting off star formation."

Her team also is examining distant galaxies and how they form "cosmic webs," which are clusters of galaxies grouped together like foam, likely the result of gravitational pull.

"The thing that is interesting here is that if you look at the clustering in galaxies still forming stars, and those not forming stars, the clustering is different," she says.

Those galaxies no longer producing stars are more clustered together, and typically are located in the middle of the web, she says.

"Those that are still forming stars tend to be on the outskirts," she says. "We are trying to understand this, whether this has to do with when the galaxies are formed, how much mass they have and whether being near other galaxies shuts off star formation."

Finally, she and her colleagues also are studying supermassive black holes located in the centers of distant galaxies, trying to quantify them.

"We want to know how many galaxies have these super massive black holes, which seem to be fairly common," she says. "They have to be shining for us to see them, and they shine when they are accreting material, that is, when stars and gas fall into the black hole. When you see this light, you know there is a black hole actively accreting. But there are other black holes that exist that we can't see. We want to know why some are shining--accreting--and some aren't."

Much of her work uses data generated by the PRIsm Multi-object Survey (PRIMUS), the largest faint galaxy spectroscopic redshift (which refers to a shift in the spectra of very distant galaxies toward longer wavelengths, usually considered evidence that the universe is expanding) survey taken to date.

As part of the grant's educational component, Coil created and taught a new course during the fall 2013 semester on stars and black holes, and convinced her department to split a pre-existing course entitled "the universe" into two courses, including "stars and black holes," and "galaxies and cosmology."

"The new course is much more fun to teach, as we can spend more time on concepts and class discussions," she says. "I found that the students learned more, at a deeper level. I am very pleased with the new course and hope to attract more students to the lower division astrophysics survey courses as a result."

She also is developing a proposal to add an astrophysics doctoral track in her department, which currently has a physics and a biophysics track. "The astrophysics PhD track would allow students to take more graduate level courses in astrophysics and begin astrophysics research in their first year, a year earlier than the physics PhD track," she says. "I hope to recruit more astrophysics graduate students to UCSD as a result of the new track."

She also informally mentors several female undergraduate and graduate students in the department through individual meetings, and holds monthly meetings of the "women in physics" group she established for women graduate students and postdocs.

During the last year, among other things, the group sponsored two guest speakers--a female faculty in another department and a colloquium speaker who works in science policy--and discussed such topics as diversity in faculty hiring, maternity leave policies, and unconscious bias.

She also runs a one-day physics outreach program for the Reach for Tomorrow foundation, which targets underprivileged middle school youth. About 50 students are participating this year.

Finally, every June she leads a similar program with the Tech Trek program, which is aimed at middle school girls interested in math and science. About 25 girls participate in the physics portion of the program, which involves hands-on demonstrations, and a soldering lab, all run by graduate students and postdocs in the department.

"I specifically recruit mostly women students and postdocs to help run the event, so that the girls can meet and interact with many women who were actively pursuing physics careers," she says.

-- Marlene Cimons, National Science Foundation
Investigators
Alison Coil
Related Institutions/Organizations
University of California-San Diego

NASA | X-ray Nova Reveals a New Black Hole in Our Galaxy

Sunday, July 13, 2014

SECRETARY KERRY'S REMARKS AFTER MEETING WITH GERMAN FOREIGN MINISTER STEINMEIER IN VIENNA, AUSTRIA

FROM:  U.S. STATE DEPARTMENT 

Remarks With German Foreign Minister Frank-Walter Steinmeier After Their Meeting

Remarks
John Kerry
Secretary of State
Palais Coburg
Vienna, Austria
July 13, 2014


FOREIGN MINISTER STEINMEIER: (In German.)

SECRETARY KERRY: Frank, thank you very much. We discussed a number of difficult issues. The most important part of our conversation was focused on the issue of Iran, the question that will be asked at this, in the current negotiations and the road forward, which we are totally in (inaudible) on, along with our other colleagues.

We also discussed Afghanistan, where I’ve just come from, as the minister mentioned, and we discussed the Middle East, where he is going. And so we had a lot of back and forth about the criticality of this moment in many parts of the world.

And in addition, we discussed Iraq and the very critical choices we need to make or help the Iraqis make in order to get a new government in place that has the ability to begin to deal with the crisis of Iraq, and particularly the terrorist ISIL. And so we had a very fulsome discussion.
Let me emphasize, the relationship between the United States and Germany is a strategic one. We have enormous political cooperation, and we are great friends. And we will continue to work together in the kind of spirit that we exhibited today in a very thorough discussion. It was my pleasure to say to the foreign minister tonight: (In German.) (Laughter.) All right. Thank you so much.

SECRETARY KERRY'S REMARKS AT PALAIS COBURG

FROM:  U.S. STATE DEPARTMENT 

Remarks to Press at Entrance of Palais Coburg

Remarks
John Kerry
Secretary of State
Palais Coburg
Vienna, Austria
July 13, 2014


SECRETARY KERRY: Well, good morning everybody. I am delighted to be here in Vienna and look forward to my to meeting with my colleagues in the 3+1 in order to discuss where we are in the negotiations, get caught up. And obviously, we have some very significant gaps still, so we need to see if we can make some progress, and I really look forward to a very substantive and important set of meetings and dialogues.

And we obviously… this is a very important subject. It is vital to make certain that Iran is not going to develop a nuclear weapon, that their program is peaceful. That’s what we’re here to try to achieve and I hope we can make some progress. Thank you all.

USS OSCAR AUSTIN PARTICIPATES IN ROYAL NAVY EXERCISE

FROM:  U.S. NAVY 
USS Oscar Austin Participates in Royal Navy Exercise
Story Number: NNS140712-08Release Date: 7/12/2014 7:12:00 AM 
By Mass Communication Specialist 3rd Class DJ Revell, USS Oscar Austin Public Affairs

USS OSCAR AUSTIN, At Sea (NNS) -- The guided-missile destroyer USS Oscar Austin (DDG 79) participated in a U.K.-led maritime exercise in the Atlantic Ocean, July 10.

The exercise consisted of combat operations in all areas of warfare including anti-submarine warfare, anti-aircraft warfare, and surface warfare.

Naval units from the U.S., Germany and the United Kingdom included Royal Navy frigates HMS Richmond (F239), HMS Lancaster (F229), and HMS St Albans (F83); Royal Navy destroyer HMS Dragon (D35); and the German Navy's Braunschweig-class corvette FGS Ludwigshafen am Rhein (F264).

"We dealt with a lot of scenarios," said Operations Specialist 2nd Class Gwendolyn Wadley, assigned to Oscar Austin, who participated in the exercise in the ship's combat information center. "Overall it was very busy and fast-paced, but it went pretty well."

The exercise also tested the various communications and defensives systems between the ships to help improve future training, tactical expertise and interoperability.

Following the exercise, Oscar Austin conducted a replenishment-at-sea (RAS) with the Royal Fleet Auxiliary tanker RFA Gold Rover (A271), further advancing cooperation between the two navies.

Oscar Austin, homeported in Norfolk, Virginia, is deployed in a multi-mission role to enhance regional maritime security with NATO and regional partners and allies in the Baltic region.

U.S. 6th Fleet, headquartered in Naples, Italy, conducts the full spectrum of joint and naval operations, often in concert with allied, joint, and interagency partners, in order to advance U.S. national interests and security and stability in Europe and Africa.

NASA | LANDSAT LOOKS TO THE MOON

SECRETARY KERRY'S REMARKS WITH AFGHANISTAN'S PRESIDENT KARZAI, UN OFFICIAL JAN KUBIS

FROM:  U.S. STATE DEPARTMENT 

Remarks With Afghan President Hamid Karzai and Head of UN Assistance Mission in Afghanistan Jan Kubis

Remarks
John Kerry
Secretary of State
Kabul, Afghanistan
July 12, 2014


PRESIDENT KARZAI: (Via interpreter) In the name of God, (inaudible) media, welcome to today’s conference. You have been waiting since Iftar. I apologize for that. Today, we have His Excellency John Kerry, Secretary of State to the United States with us, as well as His Exellency Jan Kubis, Special Representative of the United Nations to Afghanistan. As you’re all aware that his visit to Afghanistan – John Kerry’s visit to Afghanistan was about elections, and His Excellency’s Jan Kubis’s effort and hard work about the elections of Afghanistan. He’s been involved in that.

Dear (inaudible) countrymen, the first round and second round of the election in Afghanistan has been held. Second round of the elections – voices of fraud have been heard, and in order to reach and address the issues and establish some sort of understanding between them has (inaudible) has started.

This effort’s been undertaken by the (inaudible) presidents as well as the commissions – election commissions, compliance commissions. After as well as (inaudible) the votes were counted, His Excellency Dr. Abdullah Abdullah announced that in order to address the problems of election, mainly fraud, ask the United Nations to intervene and find a possible solution.

I and my deputies, in order to speed up these efforts and in order to avoid any kind of misunderstanding, we accepted Dr. Abdullah Abdullah’s request. After that, we had a discussion with Mr. Jan Kubis, who was ready to intervene and find a solution. And following that, I talked to my brother Abdullah Abdullah on the phone, and he agreed.

After that, I talked to Ashraf Ghani Ahmadzai on the phone and asked him if he agrees to Dr. Abdullah’s request. He said whatever solution that can address this problem is welcomed by him, and he accepted our requests. As you are all aware that after two – election 2009, I always try to strengthen our Afghan national election institution, and it should – (inaudible) is to run under the leadership of the Afghans. Considering the current situation and to speed up the process, we accepted the intervention of United Nations. Mr. Jan Kubis started his efforts to address this.

His Excellency John Kerry, Secretary of State to the United States of America, has been in contact with candidates and he eventually traveled to Afghanistan so that he can find a possible solution along with the presidential candidates tonight. As you witnessed on – they had a press conference, both brothers – our candidates, Dr. Abdullah Abdullah and Dr. Ashraf Ghani Ahmadzai along with His Excellency John Kerry and Mr. Jan Kubis at the – they had some announcements which I welcome (inaudible) announcement and supporters’ announcements, and I hope that 100 percent audit of the votes will take place and start as soon as possible so that the nation of Afghanistan finally elect their next president.

We hope that the commissions – the commission IEC and – both commissions, the election commission and the compliance commission – will accept these suggestions and speed up the process in cooperation with United Nations and international observers. The people of Afghanistan all have been patient so far, and at the meantime, they all (inaudible) and they would like to hear soon about the result of the election and witness their next president of Afghanistan. And the work of the government’s been slowed down these days and their hope is that the audit that’s been announced today, that 100 percent audit will take place, will start as soon as possible, the best way possible, so that as soon as this process completed, the inauguration ceremony will take place for the next president of Afghanistan.

It was supposed to take place on August 2. We were prepared – all the preparation were made, but now I hope that the commissions will (inaudible) this and agree this – to this suggestion and finish and conclude this as soon as possible so that we can have the next president of Afghanistan – elect the next president of Afghanistan and the inauguration will take place.

Afghanistan president will be a strong president, the people of Afghanistan will take (inaudible). The Afghan people are committed and united and they stand on each other and this land, this soil is (inaudible) service of the Afghan people, and it’s been always protected. But we (inaudible) by the people of Afghanistan. It will continue. The Afghan people are committed for democracy and they believe, beside all the (inaudible), beside all the instabilities and (inaudible) and uncertainties, all the people were encouraged and convinced to participate and elect the next president of Afghanistan as well as provincial council. The Afghan people votes is to be respected. We will respect and honor their votes, and the next president will take over (inaudible).

I would like to stop now and hand it – allow His Excellency John Kerry and which – His Excellency (inaudible) to deliver (inaudible), a mission that keep its destiny, its own hand, well determined future.

SECRETARY KERRY: Well, Mr. President Karzai, thank you very, very much, sir. It is a pleasure to be with you again. And I want to thank you for your very generous hospitality, and again, I missed Iftar tonight because we were busy having conversations. But last night, you entertained us with great stories and a great sense of the unbelievable generosity of Afghanistan, and we’re very grateful to you.

I also am particularly grateful – I had a chance to speak a few minutes ago at the UN Headquarters with both of the candidates, Dr. Ghani and Dr. Abdullah. I think it is fair to say that both of them spoke with great eloquence about their vision for Afghanistan and about the choice that they are making to come together for the unity of the country. I want to thank President Karzai for his role in supporting this effort in these last days, and even before I came here, to make it clear that he knew that it was important that the democracy that is springing up here be given its opportunity to have full bloom. And that is something that he is deeply committed to, and in these next days, we will be able to achieve.

President Karzai and I have traveled an interesting journey in the last years. We’ve known each other on many different – in many different events and many different times, but none more so than in 2009 when I had the privilege of spending a fair amount of time with him talking about how to help grow this democracy. We took long walks here on the palace grounds, we spent meals together, we talked through a very difficult period. And I witnessed his political skill and his ability to be able to try to put the country first, ahead of any other interests. Again tonight, President Karzai is doing that, and he has done so in the last days by honoring the notion that the international community could play a constructive role, and by inviting us to be helpful in the effort to try to bring the candidates together in a thoughtful way.

This will be still a difficult road because there are important obligations of audit. There will be difficult choices that will be made. It will still require leadership and statesmanship from both of the candidates. But tonight, Afghanistan saw a moment of what unity can mean. Tonight, Afghanistan saw two opposing candidates with passionate supporters bring their supporters together in the interests of country, in the interests of something bigger than each of them individually. We hope that the promise of the next weeks will deliver the authenticity and credibility that the people of Afghanistan deserve in the presentation of the next president of this country.

And so I thank President Karzai for his willingness to move the inauguration in response to the request of both candidates and the United Nations. I know he had been planning to leave on the 2nd of August, but he is willing to obviously stay the course because he is invested in this democracy, as are the people of the country. So I thank him for that. I am grateful for, again, the willingness to work with us and the great hospitality that we’ve had.

And because of that, if this works, if people will stay the course and everybody works together, the people of Afghanistan, for the first time in the history of the country, will have the peaceful transition at the ballot box of one president to another. That’s worth the fight, and I’m proud to be here with America standing behind Afghanistan, and President Obama could not be more pleased and more prepared to help complete this journey. Thank you.

MR. KUBIS: Your Excellency, President Karzai, may I start by applauding your strong and dedicated leadership and your exceptional commitment to the political transition – indeed, a first process of this kind in the modern history of Afghanistan. That is twice as important because it’s happening at the same time as the country’s undergoing another difficult transition, security transition. As the country is taking its fate fully in her hands, there are questions about its political transition. There are questions about commitment, Mr. President. You proved all those skeptics wrong.

Secretary Kerry, if I may say, Afghanistan is blessed that it has such a strong strategic partner as the United States, and Afghanistan is blessed to have such a committed personal friend in yourself. Whenever there is a need, you are here, and you deliver miracles, because what we witnessed today, it was not just a top-notch diplomatic achievement; it was close to a miracle. As the third point, I applaud the commitment of both presidential candidates, Dr. Abdullah Abdullah and Dr. Ashraf Ghani Ahmadzai, for their commitment to the unity, prosperity, stability, and peace here in Afghanistan. They showed it strongly today in spite, again, of perhaps setbacks, disappointments, and nevertheless, as they showed today, they can walk together to the better – to a better future, hand in hand.

We as the UN, as always, will accompany Afghanistan on this way forward. Thank you for your attention.

MICHAEL FUCHS MAKES REMARKS AT SOUTH CHINA SEA CONFERENCE

FROM:  U.S. STATE DEPARTMENT 
Fourth Annual South China Sea Conference
Remarks
Michael Fuchs
Deputy Assistant Secretary, Bureau of East Asian and Pacific Affairs
Center for Strategic and International Studies
Washington, DC
July 11, 2014

Good morning. I’d like to thank Ernie Bower and CSIS for organizing this conference.

This is a timely conversation, and I understand that the discussions yesterday were informative and productive. It’s essential to have a wide range of perspectives as we look for creative solutions to the challenges we face in the South China Sea.

In that spirit, today I’ll offer some practical suggestions for how the U.S. and the parties in the region can move forward to reduce tensions and set relations on a better path.

But first I’d like to take a step back and address the regional context surrounding this issue and U.S. policy in the region. We are all familiar with the dynamism of the Asia-Pacific. The trade numbers, the demographics, the transnational challenges – the statistics and the trends are clear and compelling. And they lead us to the inevitable conclusion that what happens there is increasingly important not only to the United States, but also to the world.

That is why President Obama decided to rebalance to the Asia-Pacific. That is why we are continuing to modernize our alliances, invest in strengthening regional institutions, expand our trade and investment, deepen engagement with new and emerging regional partners, and why we continue to expand people-to-people ties and promote our values and universal human rights.

And yet, despite our enhanced engagement and long-standing ties to the region, some are questioning and criticizing our policy. These criticisms come in all shapes and sizes.

Some call alliances outdated. But these critics ignore the fact that U.S. alliances have served as the foundation for regional peace and security, providing the environment for countries to prosper and resulting in some of the world’s most remarkable growth stories, from China to South Korea to countries across Southeast Asia. Today, our efforts to modernize these alliances – including new agreements like the Enhanced Defense Cooperation Agreement with the Philippines and the U.S.-Australia Force Posture Agreement – will benefit the entire region.

Some call us “outsiders” and tell us not to intervene in regional issues. But they ignore that for decades the United States has been a Pacific power, integral to regional peace and stability, and that our interests are directly affected by what happens across the Asia-Pacific. They ignore an increased demand for enhanced U.S. engagement and presence from allies and partners across the Asia-Pacific who want us more deeply involved in the region’s future.

And some say that our attention has been diverted by crises elsewhere. But the best demonstration of our how the rebalance continues to move forward despite competing priorities is that the United States – our people, our businesses, and our security presence – is woven into the fabric of the Asia-Pacific. As the numbers show – from trade to travel to student exchanges to the time and attention of our senior leaders and the placement of our resources – U.S. engagement in the region is increasing, and our efforts are bearing fruit. Of course, while the U.S. has been essential to peace and prosperity for decades, we can’t rest on our laurels. We must continue adapting to seize new opportunities and meet new challenges.

We are working to seize new opportunities through trade deals like the Trans-Pacific Partnership, which we are looking to conclude soon, and the bilateral investment treaty negotiations with China, which we agreed to begin again last year. But while dynamic economic growth and trade deals bring prospects for jobs and growth in the U.S. and across the region, threats to progress remain. Growing provocative actions, increased military spending, strident nationalism, and rehashing of painful history make up a combustible mix that threatens the region’s stability and its future prosperity.

These challenges highlight the need to strengthen the transparent, rules-based order and institutions that have helped the region thrive for decades. Everyone has benefited from this order, and everyone can continue to benefit, if we work together.

That’s why the U.S. is investing in the institutions that bring the region together to advance common interests and strengthen norms of behavior. Open and inclusive multilateral forums are critical to upholding and enforcing international law and standards that help manage relations between countries and ensure a fair playing field for all.

The Association of Southeast Asian nations is a key partner that sits at the heart of the Asia-Pacific's architecture. Especially since joining the Treaty of Amity and Cooperation in Southeast Asia in 2009, we have adopted an increasingly proactive role in working with and promoting ASEAN and related institutions, including by joining the East Asia Summit and holding annual summits with ASEAN.

We believe strongly that ASEAN and other regional institutions such as APEC are the key forums where countries can have frank and open discussions about the region’s most concerning challenges, come together to forge solutions, and build habits of cooperation. The tensions arising from competing territorial and maritime claims in the South China Sea are a key test of the region’s institutions and their ability to uphold international law and resolve disputes peacefully.

The situation in the South China Sea, no doubt, is complex. Six claimants, plentiful fisheries and potential hydrocarbon reserves, the growing presence of maritime law enforcement vessels, and hundreds of geographic features make for a dynamic situation. Moreover, many of these features are submerged and therefore not subject to sovereignty claims but are nonetheless a source of friction in the region.

Now some may ask why, given the many areas of tension across this part of the world, small features in the middle of the sea are generating so much concern and so much attention. It’s because the way in which countries pursue their claims speaks to whether future disputes will be handled by the threat and use of force on the one hand or the rule of law on the other. It speaks to whether the same rules will apply to all claimants – big and small alike. And it’s because everyone inside and outside the region stands to lose if rules are devalued, dialogue breaks down, misreadings and misinterpretations multiply, and tensions spiral.

Recent events in particular are of great concern. Incidents involving the coercion and the threat of force contribute to an increasingly tenuous situation that could affect not only the claimants, but the entire region and beyond.

No claimant is solely responsible for the state of tensions. However, a pattern of provocative and unilateral behavior by China has raised serious concerns about China’s intentions and willingness to adhere to international law and standards.

Provocative actions include efforts to assert claims in the South China Sea – such as its restrictions on access to Scarborough Reef, pressure on the long-standing Philippine presence at Second Thomas Shoal, and, most recently, the commencement of drilling operations in disputed waters near the Paracel Islands.

While the United States does not take a position on the sovereignty over land features in the South China Sea, we have a strong interest in the manner in which countries address their disputes and whether countries’ maritime claims comport with the international law of the sea.

International law, not power or an ambiguous sense of historical entitlement, should be the basis for making and enforcing maritime claims in the South China Sea.

The ambiguity of some claims, such as China’s nine-dash line, and recent actions in disputed areas heighten regional tensions and inhibit the emergence of cooperative arrangements to jointly manage resources. They undermine possible resolutions to the overlapping disputes.

As a Pacific power with a clear national interest in how these disputes are addressed, the United States is working to lower tensions and help peacefully manage these disputes. First, we have communicated our growing concerns – from the President down – to the Chinese very clearly, both in public and in private – most recently in the Strategic Security Dialogue and the Strategic and Economic Dialogue that were held in Beijing earlier this week. U.S. concerns are also regularly expressed at the highest levels to other claimants, and we consistently encourage all claimants to clarify their claims and base their claims on land features in the manner set out under the international law of the sea, as reflected in the Law of the Sea Convention. Others have also raised their concerns, as evidenced by recent statements from ASEAN and the G-7.

Second, we are working with ASEAN and the international community to help put in place diplomatic and other structures to lower tensions and manage these disputes peacefully. We are reinforcing the importance of exercising restraint, lowering rhetoric, behaving safely and responsibly in the sky and at sea, and resolving the disputes in accordance with international law. This includes building habits of cooperation through mechanisms like the ASEAN Regional Forum and the Expanded ASEAN Maritime Forum, where we are promoting concrete multilateral cooperation on everything from ensuring the safety of seafarers to working together to respond to oil spills.

Third, the administration has invested considerably in the capabilities of our partners in the maritime domain. For instance, last December Secretary Kerry announced an initial commitment of $32.5 million in new regional and bilateral assistance to advance maritime capacity building in Southeast Asia. Including this new funding, our planned region-wide support for maritime capacity building exceeds $156 million for the next two years.

Fourth, enhanced U.S. presence and posture in the Asia-Pacific as a result of the rebalance continues to help ensure regional stability and deter conflict.

And fifth, we continue to urge all parties to use diplomatic means, including arbitration or other dispute resolution mechanisms, to address these issues. This includes encouraging ASEAN and China to quickly complete a meaningful Code of Conduct. An effective Code of Conduct would help reduce tensions by creating crisis management tools to address contentious issues as they arise.

In the meantime, China and ASEAN already committed under the 2002 Declaration on the Conduct of the Parties in the South China Sea to avoid activities that “would complicate or escalate disputes and affect peace and stability.”

However, based on the rhetoric we’ve seen from claimant states, there isn’t a consensus or definition of what kinds of activities complicate or escalate disputes.

Recent incidents highlight the need for claimants to be transparent about their respective activities in disputed areas and to reach a shared understanding on appropriate behavior in these areas. As such, we are urging China and ASEAN to have a real and substantive discussion to flesh out elements of the Declaration on Conduct that call for self-restraint.

We have called for claimant states to clarify and agree to voluntarily freeze certain actions and activities that escalate the disputes and cause instability, as described in the DoC. Such commitments would help to lower tensions and expand space for peaceful solutions to emerge. They would be a strong confidence-building measure as more difficult details are worked out in the Code of Conduct negotiations.

Deciding on what elements would be included in a freeze would ultimately be up to the claimants, but there are a number of different types of commitments that could be included in such an agreement and would be relatively easy for the claimants to agree to.

To start, claimants could recommit not to establish new outposts. This is already in the DoC and is an easy first step. More important, claimants could commit not to seize features that another claimant has occupied since before the November 2002 Declaration on Conduct was signed.

Construction and land reclamation by claimants have been another constant source of tension. Claimants could clarify what types of alterations are provocative and what are merely efforts to maintain a long-existing presence in accordance with the 2002 status quo. For example, alterations that fundamentally change the nature, size, or capabilities of the presence could fall under the “freeze,” whereas routine maintenance operations would be permissible. Finally, claimants could agree to refrain from unilateral enforcement measures against other claimants’ long-standing economic activities that have been taking place in disputed areas.

All of these measures that I have listed would more clearly define the type of activities already suggested by the DoC, to which the parties have already committed. And the agreement would not affect any party until all claimants had agreed to abide by its terms. Moreover, if adopted, the freeze would not be prejudicial to the resolution of competing claims. The freeze would simply halt efforts to reinforce claims, pending their resolution.

Exercising self-restraint via this type of voluntary freeze would create a conducive and positive environment for negotiations on a China-ASEAN Code of Conduct and dramatically lower the risk of a dangerous incident. This would benefit all concerned parties. We make this suggestion as an idea to spark serious discussions about ways to reduce tensions and address the disputes; the claimants themselves should get together to decide the parameters of a freeze.

To conclude, the United States is a Pacific power and plays a central role in ensuring regional peace and prosperity. And while we are not a claimant in the South China Sea, the actions of the claimants in the South China Sea are affecting everyone in the region and beyond, and therefore we all have roles to play in tackling this challenge.

I hope that the next month leading up to the ASEAN Regional Forum will see real progress on regional efforts to promote the peaceful resolution of disputes in the South China Sea, and I have outlined some specific steps to that end. It’s high time for the region to have a robust discussion on tangible ways to de-escalate the current dispute, and hopefully some of these ideas can help begin that discussion.

Thank you and I’ll be happy to take a few of your questions.

GOLFING BUDDIES CHARGED BY SEC IN INSIDER TRADING CASE

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission charged a group of friends, most of them golfing buddies, who made more than $554,000 of illegal profits from trading on inside information about Massachusetts-based American Superconductor Corporation.

In a complaint filed in federal court in Boston, the SEC alleges that Eric McPhail repeatedly provided non-public information about American Superconductor to six others, most fellow competitive amateur golfers.  McPhail’s source was an American Superconductor executive who belonged to the same country club as McPhail and was a close friend.  According to the complaint, from July 2009 through April 2011, the executive told McPhail about American Superconducter’s expected earnings, contracts, and other major pending corporate developments, trusting that McPhail would keep the information confidential.

Instead, McPhail, of Waltham, Massachusetts, misappropriated the inside information about the energy technology company and fed it to his friends, often via email.  The insider-trading ring included a handful of golfing buddies, four of whom live in Massachusetts: Douglas A. Parigian of Lowell, John J. Gilmartin of Andover, Douglas Clapp of Walpole, and James A. “Andy” Drohen of Granville. The fifth, Drohen’s brother, John C. Drohen, is a resident of Cranston, Rhode Island.  In addition to the group of golfers, McPhail tipped a sixth man, his longtime friend Jamie A. Meadows, of Springfield, Massachusetts.  Each of the six traded and profited on the inside information McPhail supplied to them.

“Whether the tips are passed on the golf course, in a bar, or elsewhere, the SEC will continue to track down those who seek an unfair advantage trading stocks,” said Paul G. Levenson, director of the SEC’s Boston Regional Office.  “Working with our partners in law enforcement, we are sending a message to all investors that insider trading does not pay.”

According to the SEC’s complaint, in April 2011, McPhail tipped Parigian and Meadows a few days before American Superconductor announced that it expected fourth-quarter and fiscal year-end results to be weaker due to a deteriorating relationship with its primary customer, China-based Sinovel Wind Group Co., Ltd.  Parigian and Meadows used the information to place bets, through option contracts, that the company’s stock price would decline. When American Superconductor made the announcement, its stock price fell 42 percent and as a result of this one tip alone, Parigian made profits and avoided losses of $278,289, while Meadows made profits of $191,521.

McPhail tipped the various defendants on other occasions, funneling them inside information about American Superconductor’s quarterly earnings announcements in July and September 2009, and again in January 2010.  He also alerted them in the fall of 2009 to a contract worth $100 million, and in November 2010 to a likely drop in American Superconductor’s share’s price, which occurred a few days later when AMSC announced a secondary stock offering.

The complaint charges that McPhail, Parigian, Gilmartin, Clapp, the Drohens, and Meadows violated federal antifraud laws and the SEC’s antifraud rule, and seeks to have them be enjoined, return their allegedly ill-gotten gains with interest, and pay financial penalties of up to three times their gains.  Gilmartin, Clapp, and the Drohens agreed to settle the SEC’s charges, without admitting or denying the allegations, by consenting to the entry of judgments permanently enjoining them from violating the relevant securities laws.  The judgments also order:

Gilmartin to return $23,713 in trading profits plus prejudgment interest of $4,034 and a civil penalty of $23,713, for a total of $51,460
Clapp to return $11,848 in trading profits plus prejudgment interest of $1,767 and a civil penalty of $11,848, for a total of $25,463
Andy Drohen to return $22,543 in trading profits plus prejudgment interest of $3,845 and a civil penalty of $22,543, for a total of $48,931
John Drohen to return $8,972 in trading profits plus prejudgment interest of $1,511 and a civil penalty of $8,972, for a total of $19,455
The SEC’s investigation was conducted by Asita Obeyesekere and Kevin Kelcourse of its Boston Regional Office and by Mike Foster of its Chicago Regional Office, who will lead the SEC’s litigation of this matter.

The SEC appreciates the cooperation and assistance of the U.S. Attorney’s Office for the District of Massachusetts and the Boston Field Office of the Federal Bureau of Investigation in this matter.  The SEC also thanks the Options Regulatory Surveillance Authority and the Financial Industry Regulatory Authority for their assistance.

DOJ, HHS ANNOUNCE FRAME CALL FOR TAKING A STAND AGAINST ELDER ABUSE

FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 
DOJ and HHS call for action to address abuse of older Americans
Elder Justice Roadmap outlines critical path to combating problem 

Today, leaders in the fight against elder abuse announced a framework for tackling the highest priority challenges to elder abuse prevention and prosecution, and called on all Americans to take a stand against the serious societal problem of elder abuse, neglect and financial exploitation.

Research suggests that 1 in 10 Americans over the age of 60 has experienced elder abuse or neglect, and that people with dementia are at higher risk for abuse.

Supported by the Department of Justice (DOJ) and the Department of Health and Human Services (HHS), the Elder Justice Roadmap was developed by harnessing the expertise of hundreds of public and private stakeholders from across the country and by gathering their input. The goal of these expert summits was to identify the most critical priorities and concrete opportunities for greater public and private investment and engagement in elder abuse issues. The Elder Justice Roadmap, being published today, reflects the knowledge and perspectives of these experts in the field and will be considered by the Elder Justice Coordinating Council and others in developing their own strategic plans to prevent and combat elder abuse.

“The Roadmap Project is an important milestone for elder justice,” said Associate Attorney General Tony West. “Elder abuse is a problem that has gone on too long, but the Roadmap Report released today can change this trajectory by offering comprehensive and concrete action items for all of the stakeholders dedicated to combating the multi-faceted dimensions of elder abuse and financial exploitation,” he explained. “While we have taken some important steps in the right direction, we must do more to prevent elder abuse from occurring in the first place and face it head on when it occurs.”

“From now until 2030, every day, about 10,000 baby boomers will celebrate their 65th birthday. And the fastest-growing population is people 85 years old, or older,” says Kathy Greenlee, HHS’ assistant secretary for aging and administrator of the Administration for Community Living. “Stemming the tide of abuse will require individuals, neighbors, communities, and public and private entities to take a hard look at how each of us encounters elder abuse—and commit to combat it.”

To support the mission of elder abuse prevention and prosecution, DOJ has developed an interactive, online curriculum to teach legal aid and other civil attorneys to identify and respond to elder abuse. The first three modules of the training cover what lawyers should know about elder abuse; practical and ethical strategies to use when facing challenges in this area; and a primer on domestic violence and sexual assault. This training will expand to include six one-hour modules covering issues relevant to attorneys who may encounter elder abuse victims in the course of their practice.

HHS is supporting the mission by developing a voluntary national adult protective services (APS) data system. Collecting national data on adult mistreatment will help to identify and address many gaps about the number and characteristics of adults who are the victims of maltreatment and the nature of services that are provided by APS agencies to protect these vulnerable adults.  In addition, the data will better inform the development of improved, more targeted policy and programmatic interventions.

In addition to informing federal elder justice efforts, the Roadmap has already inspired private stakeholders to take action.  For example, as a result of the Roadmap, the Archstone Foundation has funded a project at the Keck School of Medicine at the University of Southern California to develop a national training initiative, while other funders, such as the Weinberg Foundation, have begun to consider inquiries and projects outlined in the Roadmap.  Likewise, the Brookdale Center for Healthy Aging at Hunter College, The Harry and Jeannette Weinberg Center for Elder Abuse Prevention at the Hebrew Home at Riverdale, and the New York City Elder Abuse Center will be co-sponsoring a symposium in September 2014 focusing on innovations and challenges related to elder abuse multidisciplinary teams, a priority area identified in the Roadmap.

“While federal and state governments certainly have critical roles to play, the battle against elder abuse can only be won with grassroots action at the community and individual level,” said Greenlee. “Turning the tide against elder abuse requires much greater public commitment, so every American will recognize elder abuse when they see it and know what to do if they encounter it.”

Two steps local communities, families, and individuals can take are:

Learn the signs of elder abuse. The National Center on Elder Abuse, a program of the Administration on Aging at ACL, has developed a helpful Red Flags of Abuse Factsheet (PDF) that lists the signs of and risk factors for abuse and neglect.
Report suspected abuse when you see it. Contact your local adult protective services agency. Phone numbers for state or local offices can be found at the National Center for Elder Abuse website, or call 1-800-677-1116.
“We must take a stand to ensure that older Americans are safe from harm and neglect. For their contributions to our nation, to our society, and to our lives, we owe them nothing less,” said Associate Attorney General West.

SUPERCOMPUTER USED FOR MATERIAL SCIENCE RESEARCH

FROM:  NATIONAL SCIENCE FOUNDATION 
Helping ideas gel

NSF-supported Stampede supercomputer powers innovations in materials science
Cornell University researchers are using the Stampede supercomputer at the Texas Advanced Computing Center to help explain a nanoscale mystery: How can a colloidal gel--a smart material with promise in biomedicine--maintain its stability?

Colloidal gels are comprised of microscopic particles suspended in a solvent. They form networks of chained-together particles that support their own weight under gravity. For this reason, the soft solids form an emerging class of smart materials such as injectable pharmaceuticals and artificial tissue scaffolds. However, they are also beset by stability problems.

Using Stampede, researchers conducted the largest and longest simulation of a colloidal gel ever recorded. Their simulations helped answer several questions, including: What are the concentration and structure of the network strands? How does the gel restructure itself over time? And how does its structure affect a gel's mechanical properties?

"We have been absolutely happy with our entire experience on Stampede," said Roseanna N. Zia, an assistant professor of chemical and biomolecular engineering at Cornell. "The support of the review panel in granting such a large series of requests was just fantastic. In addition, the help desk has been consistently outstanding, and our XSEDE [Extreme Science and Engineering Discovery Environment] Campus Champion was a huge help in getting started. There is no way this study could have taken place without XSEDE's computational support."

XSEDE is the most advanced and robust collection of integrated advanced digital resources and services in the world. Thousands of scientists use XSEDE each year to interactively share computing resources, data and expertise. The five-year, $121-million project is supported by the National Science Foundation.

Zia presented the results on her colloidal gel research at the Society of Rheology annual meeting in October 2013. Her work was featured on the cover of the January 2014 Rheology Bulletin, and she was asked to contribute to an invitation-only special issue of the Journal of Rheology in 2014.

-- Aaron Dubrow, NSF
Investigators
Roseanna Zia
Daniel Stanzione

Search This Blog

Translate

White House.gov Press Office Feed