Tuesday, July 29, 2014

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JULY 29, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS
U.S. TRANSPORTATION COMMAND
National Air Cargo Group, Inc., Orlando, Florida, is being awarded a $513,625,650 maximum ceiling modification (P00013), exercising the second option period to previously awarded contract HTC711-12-D-R010 for international commercial multimodal transportation services. Work will be performed worldwide, with an expected completion date of July 31, 2015. Fiscal 2014 and 2015 transportation working capital funds will be obligated on individual task orders. The contracting activity is the U.S. Transportation Command Directorate of Acquisition, Scott Air Force Base, Illinois.
NAVY
K2 Energy Solutions, Inc.,* Henderson, Nevada, is being awarded a ceiling-priced $81,400,000 firm-fixed price/cost-plus fixed-fee, basic ordering agreement for the fully self-contained battery intermediate energy store system required to power a large modular capacitor bank for the electromagnetic railgun. Work will be performed in Henderson, Nevada, and is expected to be completed by December 2016. No funding will be obligated at time of award. The contract was sole sourced in accordance with the Federal Acquisition Regulation 6.302-5. This SBIR Phase III is for work that derives from, extends, or logically concludes effort(s) performed under prior SBIR funding agreements and is authorized under 15 U.S.C. § 638(r). The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-14-G-4207).
Rolls-Royce Corp., Indianapolis, Indiana, is being awarded a $29,148,390 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) for the procurement of Mission CareTM support for the AE1107C engine, including flight hours, and lower power engine removals and repairs, for the V-22 aircraft. Work will be performed in Oakland, California (70 percent) and Indianapolis, Indiana (30 percent), and is expected to be completed in February 2015. Fiscal 2014 operations and maintenance (Navy, Special Operations Command and Air Force) funds in the amount of $29,148,390 will be obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
Science Applications International Corp., McLean, Virginia, is being awarded a $21,593,120 cost-plus-fixed-fee contract for the Department of Navy, U. S. Fleet Forces Command, highly specialized, comprehensive, analytical training and technical services in direct support of their Fleet Deployment Training Program. Under this effort, the contractor will provide live, virtual, and constructive training program support, fleet training academics and instruction support, training exercise and event support. This contract contains a seven-month base period and one two-month option period, which if exercised, will bring the contract value to $27,752,969. Work will be performed in Norfolk, Virginia (41.6 percent); Virginia Beach, Virginia (39.6 percent); San Diego, California (7.6 percent); Fallon, Nevada (5.1 percent); Suffolk, Virginia (3 percent); Pearl Harbor, Hawaii (1.7 percent); Okinawa, Japan (0.9 percent); and Mayport, Florida (0.5 percent). Work is expected to be completed Feb. 28, 2015. If all options are exercised, work will continue until April 29, 2015. Fiscal 2014 operations and maintenance (Navy) funds in the amount of $21,593,120 will be obligated at the time of award and will expire at the end of the current fiscal year. The requirement was not competitively procured in accordance with 10 U.S.C. 2304 (c)(1), with one offer received in response to this solicitation. NAVSUP Fleet Logistics Center Norfolk, Contracting Department, Norfolk, Virginia, is the contracting activity (N00189-14-C-0033).
CCI Solutions, LLC,* Augusta, Maine, is being awarded $10,172,160 for firm-fixed-price task order 0004 under a previously awarded multiple award construction contract (N40085-13-D-8006) for energy upgrades and repairs to Building 291 at the Portsmouth Naval Shipyard. The work to be performed provides for energy efficiency improvements by replacing external siding and upgrading heating, ventilation, air conditioning, electrical and lighting systems. An addition to the building will be constructed to house mechanical equipment, and new direct digital control and sprinkler systems will be installed. Work will be performed in Kittery, Maine, and is expected to be completed by May 2018. Fiscal 2014 operation and maintenance (Navy) contract funds in the amount of $10,172,160 are obligated on this award and will expire at the end of the current fiscal year. Two proposals were received for this task order. The Naval Facilities Engineering Command, Mid-Atlantic, Public Works Department Maine, Kittery, Maine, is the contracting activity.
Remotec Inc., Clinton, Tennessee, is being awarded an $8,801,324 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for depot level repairs to the MK3 Series Remote Ordnance Neutralization Systems (RONS), and the upgrade and repair of the MK3 Mod 0 to the MK3 Mod 1 System. The MK3 Mod 1 upgrade will improve the serviceability of the robots, increase the availability of the spare parts and increase the capabilities of the robots. In situations where it is economically infeasible to upgrade or repair the MK3 Mod 0 system, the option to purchase a new RONS MK3 Mod 1 for replacement will be available under a new contract. The contract includes a one-year base period with four one-year options, which if exercised, will bring the contract value to $12,355,953. Work will be performed in Clinton, Tennessee, and is expected to be completed by August 2019. Fiscal 2013 other procurement (Navy and Army) funding in the amount of $4,500,775 will be obligated at the time of the award and contract funds will not expire at the end of the current fiscal year. This contract was synopsized via the Federal Business Opportunities website as a sole source procurement in accordance with 10 U.S.C. 2304(c)(1) - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Surface Warfare Center, Indian Head Explosive Ordnance Disposal Technology Division, Indian Head, Maryland, is the contracting activity (N00174-14-D-0027).
Sikorsky Aerospace Maintenance, Stratford, Connecticut, is being awarded a $7,927,579 modification to a previously awarded firm-fixed-price contract (N00019-09-C-0024) to exercise an option for organizational, selected intermediate, and limited depot-level maintenance for aircraft operated by adversary squadrons. Work will be performed at the Naval Air Station Key West, Florida (40 percent); Naval Air Station Fallon, Nevada (30 percent); and Marine Corps Air Station, Yuma, Arizona (30 percent), and is expected to be completed in October 2014. Fiscal 2014 operations and maintenance (Navy Reserve) funds in the amount of $7,927,579 are being obligated at time of award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.
ARMY
*Strock Enterprises LTD*, Cheektowaga, New York (W912P4-14-D-0001); Upstate Construction Services, Inc.,* Watertown, New York (W912P4-14-D-0002); Oddo Construction Services LLC,* Amherst, New York (W912P4-14-D-0003); Tidewater, Inc.,* Elkridge, Maryland (W912P4-14-D-0004); Great Lakes Dock and Materials LLC,* Muskegon, Michigan (W912P4-14-D-0005); Geo. Gradel Co.,* Toledo, Ohio (W912P4-14-D-0006); Morrish-Wallace Construction Co.,* Cheboygan, Michigan (W912P4-14-D-0007); Huffman Equipment Rental,* Willoughby, Ohio (W912P4-14-D-0008); and SAF, Inc.,*Akron, Ohio (W912P4-14-D-0009), were awarded a $40,000,000 firm-fixed-price, multi-year, multiple-award, task order contract for general construction throughout the lakes and rivers division with an estimated completion date of July 28, 2019. Bids were solicited via the Internet with 17 received. Funding and work location will be determined with each order. U.S. Army Corps of Engineers, Buffalo, New York, is the contracting activity.
HNTB Corp. Kansas City, Missouri was awarded a $35,000,000 firm-fixed-price, indefinite- delivery/indefinite-quantity contract for architectural and engineering services required for planning and design for the Arlington National Cemetery southern expansion project. Funding and work location will be determined with each order with an estimated completion date of July 31, 2019. Bids were solicited via the Internet with seven received. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-14-D-0035).
Lockheed Martin Corp., Grand Prairie, Texas, was awarded an $8,119,209 modification (P00076) to contract W31P4Q-12-C-0048 for industrial engineering support to include Army Tactical Missile System (ATACMS), Block I/IA, Guided Multiple Launch Rocket System (GMLRS), High Mobility Artillery Rocket System (HIMARS), Multiple Launch Rocket System (MLRS) M270/M270A1/M270B1/M270C1 launcher platforms and Low Cost Reduced Range Practice Rocket (LCRRPR). Fiscal 2014 research, development, test and evaluation funds in the amount of $8,119,209 were obligated at the time of the award. Estimated completion date is Feb, 20, 2015. Work will be performed at Grand Prairie, Texas. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity.
Pratt & Miller,* New Hudson, Michigan, was awarded a $6,541,220 modification (P00004 ) to contract W56HZV-13-C-0375 to complete the build, integration, and final testing and evaluation for the Occupant Centric Platform, Technology Enabled Capability Demonstrator test asset. Fiscal 2014 research, development, test and evaluation funds in the amount of $6,541,220 were obligated at the time of the award. Estimated completion date is Jan. 31, 2016. Work will be performed in New Hudson, Michigan. Army Contracting Command, Warren, Michigan, is the contracting activity.
DEFENSE LOGISTICS AGENCY
Gossner Foods, Inc.,** Logan, Utah, has been awarded a maximum $25,577,791 fixed-price with economic-price-adjustment, indefinite-quantity contract for ultra-high temperature, shelf-stable milk. This contract was a competitive acquisition with one offer received. This is a five-year base contract with no option periods. Location of performance is Utah with a July 28, 2019 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal 2014 through fiscal 2019 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE3S1-14-D-Z201).
Graybar Electric Company, Inc., St. Louis, Missouri, has been awarded a maximum $15,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, prime vendor, bridge contract for maintenance, repair, and operations for the South central zone one region. This contract was a sole-source acquisition. Location of performance is Missouri with a Nov. 28, 2014 performance completion date. Using services are Army, Navy, Air Force, Marine Corps, 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 (SPE8E3-14-D-0903).
Science Application International Corporation, Fairfield, New Jersey, has been awarded a maximum $10,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, prime vendor, bridge contract for maintenance, repair, and operations for the South central zone two region. This contract was a sole-source acquisition. Location of performance is New Jersey with a Nov. 28, 2014, performance completion date. Using services are Army, Navy, Air Force, Marine Corps, 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 (SPE8E3-14-D-0904).
SupplyCore Inc.,* Rockford, Illinois, has been awarded a maximum $8,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, prime vendor, bridge contract for maintenance, repair, and operations for the North central region. This contract was a sole-source acquisition. Location of performance is Illinois with a Nov. 28, 2014, performance completion date. Using services are Army, Navy, Air Force, Marine Corps, 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 (SPE8E3-14-D-0902).
AIR FORCE
Northrop Grumman Systems, Linthicum Heights, Maryland, has been awarded an $11,343,138 indefinite-delivery requirements contract to provide E-3 Airborne Warning and Command System Radar Maintenance Technician Initial Skills Training program to the Royal Saudi Air Force. Proposed training will be developed and conducted by the contractor, procured by the Air Education and Training Command, and presented under the auspices of the Security Assistance Training Program. This contract will span a four-year ordering period, and training will take place in Baltimore, Maryland. The work is expected to be completed July 28, 2018. This contract is 100 percent foreign military sales for Saudi Arabia; no funds will be obligated at time of award. The 338 Specialized Contracting Squadron, Joint Base San Antonio-Randolph, Texas, is the contracting activity (FA3002-14-D-0010).
L-3 Communication, San Carlos, California, has been awarded a $6,816,326 firm-fixed-price, indefinite-delivery contract for the remanufacture of F-16 Traveling Wave Tubes. Work will be performed at San Carlos, California, and is expected to be completed by Dec. 29, 2016. This award is the result of a competitive acquisition. Two companies were solicited, one offer was received. Contract will use current year working capital funds. Air Force Sustainment Center, Hill Air Force Base, Utah, is the contracting activity (FA8251-14-D-0007).
*Small business
**Woman-owned small business

REMARKS BY SECRETARY KERRY, UKRAINIAN FOREIGN MINISTER KLIMKIN

FROM:  THE STATE DEPARTMENT

Remarks With Ukrainian Foreign Minister Pavlo Klimkin After Their Meeting

Remarks
John Kerry
Secretary of State
Treaty Room
Washington, DC
July 29, 2014




SECRETARY KERRY: Make sure it’s still morning. Good morning, everybody. Thank you for being here with us. It’s my pleasure to be able to welcome Foreign Minister Pavlo Klimkin to Washington, and this is the second time that he and I have had a chance to be able to meet and thoroughly discuss the issues of Ukraine, the challenges of the region, and I deeply appreciate his making time today at a critical time in the region.

We meet today less than two weeks after Malaysian Airlines Flight 17 was tragically shot out of the sky in the separatist-controlled territory of Ukraine, and the victims of that crash and their families clearly deserve a thorough international investigation that is unimpeded in any respect so that people have access to the site, so that the families can know that their loved ones are being treated with the decency that any family anywhere in the world would expect in these circumstances.

The United States supports a thorough international investigation into this heinous act, and we support the efforts of the Malaysians, Dutch, and Australians to help the Ukrainians in order to secure the site so that those investigations can take place now. They’re overdue, and it is absolutely important for the separatists to stand back and permit this access to take place.
The work of the investigators is absolutely critical. It’s been 10 days since this plane went down. And investigators have still not received full, unfettered access to the crash site. And without this access, they have no way to collect debris, no way to collect other evidence from the scene in order to be able to provide the kind of examination that is necessary. They still can’t even ensure that all of the victims’ remains have been removed, and that is an unsupportable burden for any family to have to bear, and it is an unacceptable standard for behavior, period. The site has to be cordoned off. The evidence has to be preserved. And Russia needs to use its considerable influence among the separatists in order to be able to help ensure this basic approach of common decency.

Well beyond the crash site, the fighting is continuing. And as President Poroshenko has made clear repeatedly and as Foreign Minister Klimkin reiterated to me just a few minutes ago, the Ukrainians are ready to accept a mutual cease-fire now – not in the future, now. And they have proposed a peace plan that includes serious and substantive dialogue with the Russian-backed separatists with international participation because they understand that that is the only way that this crisis is going to come to an end.

This morning, I talked with Foreign Minister Lavrov and raised these concerns and agreed that there is a way to try to put some very specific proposals on the table to try to move forward. But the Russians and their so-called volunteers are continuing to ship arms and funds and personnel across the border. We see this. There is clear evidence of it. We now have clear evidence of artillery and rocket fire from Russia into Ukraine. And while the Russians have said that they want to de-escalate the conflict, their actions have not shown a shred of evidence that they really have a legitimate desire to end the violence and end the bloodshed.
As a result, the Russian-backed separatists refuse to lay down their arms and be part of the political process. They continue to fire on Ukrainian forces, even in the area just around the crash site, and they have displayed an appalling disregard for human decency. And evidently, the separatists will continue to do so unless they can feel some pressure, something real from their Russian backers.

President Putin can make a huge difference here if he chooses to. And we and our European partners will take additional measures and impose wider sanctions on key sections of the Russian economy if that is what we must do. We hope that it will not be necessary. And if Russia continues to go down this path, however, Russia will leave the international community with no choice. What is unfolding in Ukraine has already gone on for far too long. It’s well past time for the violence to stop and for the people of Ukraine to begin the process of rebuilding their country and rebuilding it in a way that can have a relationship with Russia, with the West.
I think Foreign Minister Klimkin will affirm today that we’re not asking them to choose between the two, and I think Ukrainians understand that they have strong ties to Russia. They’re prepared to have a relationship with Russia, and they understand that the future of Ukraine depends on having a strong relationship with Russia.

So it’s well past time for this violence to stop, and that is why yesterday, Vice President Biden announced nearly $7 million in rapid assistance for humanitarian and rebuilding purposes to be deployed immediately. Specifically, these funds will go towards rebuilding eastern Ukraine, including the cities of Slovyansk and Kramatorsk, where people celebrated in the streets recently when they were liberated from separatist control.

We are also asking Congress for approval to provide financial support and mentoring to small businesses throughout Ukraine. Through mechanisms like the public-private partnerships and export promotion initiatives, we are hoping to inject additional resources into Ukraine’s economy so that together, all Ukrainians can rebuild their lives along with their cities.

Over the past few months, the Ukrainian Government has taken a number of steps to try to bring about a better future for its people and to reform the government that had failed them so much in the past, including signing an historic association agreement with the European Union and also finalizing a vital standby arrangement with the International Monetary Fund. We strongly urge Ukrainians to continue the process of reforming their democracy, even if not particularly during this moment of crisis, because this is a troubling time where everyone is looking for those reforms to be implemented, and they can make a huge difference in rebuilding confidence and also in providing a sense in Russia that the concerns expressed by the separatists are, in fact, being listened to and being incorporated into the political process of Ukraine.

The United States stands ready to support our Ukrainian partners in this effort, because we know that ultimately, a strong democratic government and a strong economy are the keys to providing the Ukrainian people with the stability and the prosperity that they want and that they deserve.

So again, I thank Foreign Minister Klimkin for joining me today for this meeting, and I have pledged to him that we will continue to work closely together. We’re talking about the possibility of when we could find time for a visit to continue this discussion more directly with the prime minister and with President Poroshenko. I think we share high hopes for the possibilities of what a resolution of this crisis with the separatists and with Russia could bring – a strong Ukraine, the respect for their sovereignty, and the possibilities of stability for the region.
Mr. Foreign Minister, please.

FOREIGN MINISTER KLIMKIN: Good morning, everyone. Mr. Secretary of State, I would like to thank you for your commitment, for your solidarity, and for – also for your personal leadership, also in Geneva format, and for your commitment to democratic, united, and European Ukraine.
It’s my first visit since I’ve been appointed the foreign minister, and it’s, indeed, a pleasure to be here to discuss all issues of bilateral agenda, but first and foremost, the ongoing developments in Ukraine. And I’m glad we have the same vision of these developments and I am glad that I feel a real commitment, a real solidarity here. We have in Ukraine clear commitment to the settlement of the situation in Donetsk and Luhansk, and the peace plan of the president of Ukraine, Petro Poroshenko, gives peace a chance.

It includes three main dimensions. It’s firstly about de-escalation and reaching a cease-fire. Secondly, it’s about humanitarian dimension and restoring the infrastructure disrupted on the ground. And of course, it’s about political dimension, because what counts and what is critical is reaching the bilateral cease-fire with the aim of restoring the territorial integrity of Ukraine. Of course, we need a critical progress. We need a breakthrough on hostages. We need to release hostages as soon as possible. And it’s also the issue of human dignity.

We need, of course, the OSCE. We need the OSCE observers to be present on the ground from the very first moment of cease-fire. We paid for our commitment on two unilateral cease-fire with 30 lives and more than 100 people wounded. The unilateral cease-fire was broken more than 100 times, and now it’s about bilateral cease-fire, it’s about OSCE again to be present on the ground, but it’s also about closing down the border. It’s also about stopping the inflow of money, armed persons, weapons, and heavy weaponry across the border, because it’s critical precondition for reaching stability in Donetsk and Luhansk.

Of course, it’s also about humanitarian dimension. It’s about restoration of all disrupted infrastructure, because what we’ve been doing now, we’ve been trying to restore disrupted electricity networks, water supply, gas supply. We’ve been trying to bring normal life back to the people of Donbas. And I am particularly grateful to the Secretary of State, to the United States, for urgent help, for urgent assistance to the people of Donbas, which should be aimed at restoring infrastructure. I believe it was – has symbolic, but also extremely important practical dimension.

And of course, it’s about political process. It’s about settlement. And we are ready to (inaudible) decentralization. We are ready to give more powers to the communities, to the districts, to the regions. It’s about giving people more freedom, but also more responsibility – political responsibility and economic responsibility. And it’s about not allowing to play up any sort of issues like using the Russian language, because it would be up to every community to decide what language should be spoken.

It’s about clear idea how we can de-escalate the situation on the ground, because we are ready for local elections. We are ready that the real representative of Donbas, a real representative of Donetsk and Luhansk should take responsibility over the situation on the ground, should take responsibility over de-escalation, over economic and social development on Donbas. And in this sphere, we feel solidarity by the United States and we also have clear and targeted assistance.

And also under difficult conditions on the ground, we’ve been trying – we’ve been working around the clock on securing access to the crash site, and it’s our key priority. We’ve been working on ensuring the possibility for fully transparent and effective investigation of the causes of the tragedy with the plane of Malaysian Airlines. And of course, for us, it’s about human dignity. It’s about the possibility of recovering all bodies and body fragments from the crash site. It’s about giving back the friends and the loved ones any sort of personal belongings. It’s not just the priority; it’s an absolute priority for Ukraine at the moment.

So we have the same vision on these developments and we feel continuous support by the United States. Of course we’ve touched upon also a number of issues on our bilateral agenda and we’ve been – we’ll be working on that extremely closely. And I used the chance to invite the Secretary of State to visit Kyiv and to chair the next meeting of our Strategic Partnership Commission, where we are able to discuss all the issues of bilateral interest and all the issues of bilateral agenda. Many thanks again.

MS. PSAKI: The first question will be from Andrea Mitchell of NBC News.

QUESTION: Thank you both very much. Mr. Secretary, I want to ask you about Ukraine and about the sanctions and Vladimir Putin. But first, let me ask you about the situation in the Middle East. Overnight, two UN officials have been reported killed in Gaza. Israel has apparently hit the electric utility, the only source of electricity for much of the strip. And the Israeli media has unleashed a fierce attack on you personally, from the left and from the right, unprecedented in, frankly, any of our experience. Ari Shavit in Haaretz is quoting a senior official as saying that your diplomacy has been, quote, “a strategic terrorist attack” on Israel. Others say that if there is an escalation, you are responsible for the increasing bloodshed. At this point, there’s also a report today of a new Palestinian initiative from the Palestinian Authority, perhaps with Hamas joining in. I wanted to ask you about that. There’s a report in Al-Hayat that you have launched a new initiative as well.

So if you could clear some of this up: Is it hurting your ability to be a mediator here to have Israel, with these blind quotes from Israeli officials, attacking you so vociferously? And is there a way out here through some new cease-fire that the Palestinians may be promoting today?
Secondly on Ukraine, you said that Vladimir Putin has a choice now. Does he still have a choice? We were told that the United States, with the President’s call with the European leaders yesterday, were going to be imposing sanctions today. Are you giving him yet another chance to prove himself after everything that’s happened? Or are these sanctions actually going to finally be implemented? And can you and perhaps the minister respond to credible reports from the region, we’re told today that government forces have fired back at Russian forces – so have fired across the border. Thank you for taking all of this.

SECRETARY KERRY: Well, let me take the second part first and then I’ll come back to your first question. With respect to Ukraine, we are in the process of preparing additional sanctions with Europe. That is absolutely accurate. And what will happen will happen. But of course, President Putin still has a choice going forward with respect to his ability to be able to have an impact on the separatists. That is a choice that will be there tomorrow, the next day, and in the weeks ahead in order to resolve this. So separate the two.

Europe is working on the sanctions. We are working with them on the sanctions. We anticipate those additional sanctions, but – forthwith – but the point I’m making is that in the long road ahead here to resolve the kinds of issues of the gas deal – the gas has been cut off to Ukraine; to resolve the movement and flow of weapons and people across the border; the issue of firing from Russia into Ukraine; all of these issues – whatever happens with sanctions today or tomorrow, those issues remain and they are remaining to be the choices that President Putin has to make.

So we talked today about a political road ahead, the ways in which Ukraine can contribute to an effort to try to make it clear to President Putin that the agreements originally arrived at in Geneva about a political process are, indeed, being fully implemented. And Russia has raised on a number of occasions significant questions about whether or not that road has been sufficiently explored. And I think the foreign minister and I agree that there is more that we think can be done there, and we’re going to talk about that in the days ahead.

Now on the subject of Israel, I have talked to Prime Minister Netanyahu two, three, four times a day in the last days. We continue to talk. Last night we talked and the prime minister talked to me about an idea and a possibility of a cease-fire. He raised it with me, as he has consistently. He has consistently said that he would embrace a cease-fire that permits Israel to protect itself against the tunnels and obviously not be disadvantaged for the great sacrifice that they have made in order to be able to protect themselves thus far.

So the bottom line is that we are working very carefully and, I think, thoughtfully with our Israeli friends in order to be able to find a way to reduce the civilian loss of life, to prevent this from spiraling downwards into a place from which both sides have difficulty finding a way forward in order to address the underlying kinds of issues.

Now obviously, no one – no one in the United States, no one I know in the world condones the idea that Israel ought to be somehow subject to attack from these tunnels. We have supported from day one Israel’s right to defend itself, Israel’s right to take action, Israel’s right to live free from rockets and from tunnels that threaten it. But all we have suggested, and that President Obama has had several conversations with the prime minister about, is the need to try to find if you can resolve any of those issues through a legitimate negotiation and ultimately with less loss of life everywhere.

Now look, I’ve taken hits before in politics. I’m not worried about that. This is not about me. This isn’t about Israel and Israel’s right to defend itself, and our strong support for Israel’s right to defend itself, but about whether or not there is a way forward that could avoid the loss of soldiers for Israel and the loss of civilians in – everywhere. What we put on the table, in fact, allowed Israel – let me make this clear – allowed Israel to continue to deal with its tunnels even as they were in a short-term cease-fire to try to see if there was a way to reach a sustainable cease-fire. The UN has called for this, the international community has called for this, and Prime Minister Netanyahu himself has said that he is prepared to embrace it, providing it doesn’t prejudice Israel in its way of protecting itself. And we have made certain that we guarantee that it doesn’t.

Now let me just finish quickly. The fact is that because of our efforts, we were able to get a short-term 12-hour cease-fire which then was expanded to 24, but then because of confusion over the 12 hours and four hours didn’t hold. That doesn’t mean that the right approach here isn’t to try to have an appropriate way to come to the table in order to see if a negotiation can take place. Now, let me emphasize Israel itself accepted a cease-fire under the Egyptian formula of no preconditions, cease of – cessation of hostilities, negotiations to take place in Cairo. That is exactly what we have been talking about. No variation, no deviation. We’ve been in touch with the Egyptians; we have honored the Egyptian concept. If there is a negotiation, it would be in Cairo. It would be entirely without preconditions, and it would not prejudice Israel’s ability to defend itself.

So I think there’s a little bit of energy being expended here unnecessarily, and I do think we will continue to work with our very close friend and ally. And I’m not going to worry about personal attacks. I think that President Obama has it right and the international community has it right when we say that it is more appropriate to try to resolve the underlying issues at a negotiating table than to continue a tit for tat of violence that will invite more violence and perhaps a greater downward spiral, which would be much more difficult to recover from.

QUESTION: Do you think it’s still possible --

SECRETARY KERRY: Let me --

QUESTION: Do you think it’s still possible to get a cease-fire after the past two days?

SECRETARY KERRY: Well, that depends entirely on the parties at this point, Andrea. I mean, we – we’re trying to very carefully – without, as I said, diminishing Israel’s legitimate right to defend itself against tunnels and rockets – but to find a way to see if we can spare the people of Israel as well as Palestinians the possibilities of, at any moment, something going terribly wrong. When one of those rockets hits a major school in Israel or a major population center, lots of people die. The effort here is to find whether or not – I can’t vouch for it and President Obama can’t vouch for it, but we know that we owe it to everybody to try to see if you can find that way. If, after you get to a table, it proves that there is absolute reluctance to honor basic defensive needs of Israel; to deal with the rockets, to deal with the tunnels, to deal with other things, then at least you know you’ve made that effort to try to spare lives and to find a legitimate way forward. That’s our job, to try to do that. And we think we’re doing it in a way that completely reinforces Israel’s rights.

I’ve spent 29 years in the United States Senate and had a 100 percent voting record pro-Israel, and I will not take a second seat to anybody in my friendship or my devotion to the protection of the state of Israel. But I also believe, as somebody who’s been to war, that it is better to try to find a way, if you can, to solve these problems before you get dragged into something that you can’t stop. And it seems to me that this is a reasonable effort, fully protecting Israel’s rights, fully protecting Israel’s interests, and Prime Minister Netanyahu himself said to me: Can you try to get a humanitarian cease-fire for this period of time? And if it weren’t for his commitment to it, obviously, the President of the United States and I would not be trying to make this effort. Now, either I take his commitment at face value, or someone is playing a different game here, and I hope that’s not the fact.

FOREIGN MINISTER KLIMKIN: On this report, I have such a record of cases of Russian – of shelling, not just artillery fire, but also rocket-propelled grenade fire from the Russian territory; of cases of Russian helicopters intruding the Ukrainian airspace. But we never, never fired back, of course, in order not to provoke the situation, but first and foremost because we are fully committed to international law. We have our legal and political commitments, and in the sense of United Nations statute, shelling from the territory of another state constitutes an act of aggression. So we are fully committed to international law. We never fired back.

And there were also many cases when the terrorists tried to position themself exactly near the border and fire on Ukrainian forces. We also exercised an extreme restraint, trying not to fire back, not to provoke the situation, and not to break our obligation under international law. So all reports on us firing back onto Russian territory are not true.

MS. PSAKI: The final question will be from Alex Yanevskyy from VOA.

QUESTION: Thank you, Mr. Secretary. Thank you, Mr. Foreign Minister. I have a question. Putin not showing signs that he slows down. Mr. Secretary, what exactly the United States is going to do if Russia invades Ukraine, and should Ukraine expect to become an ally of the United States? Thank you.

SECRETARY KERRY: What was the first part of that?

QUESTION: What exactly the United States is going to do if Russia invades Ukraine?

SECRETARY KERRY: Well, the President has made it clear that there are many different options, but that would be taken, needless to say, as not just a violation of all notions of international law, but an exceedingly dangerous action, which would wind up with the most severe possible kinds of isolation and sanctions possible. And Germany, France, other countries in Europe would clearly join into that in ways that would have a profound, profound impact on the Russian economy. I would believe, for the very reasons that hasn’t happened yet, that President Putin understands that, that the risks are enormous.

It doesn’t – I think that alliances are a more – I mean, it depends whether you’re talking in legal terms or in other terms. We are a partner. We are a strategic ally now. And we are working very, very closely already providing advice and materials to Ukraine, as well as other countries who are doing the same thing. And we are working very, very hard to see if we can’t find the political key to be able to provide redress for the grievances that President Putin keeps talking about through the political process in a way that will recognize that Russia has a legitimate interest, which even Ukraine has acknowledged – interests about ethnic connection, historic connection, about the religious and historical foundations of Russia, all of which can be traced back to Kyiv and to many battlefields that are now in Ukraine and so forth. All of that is understood. And what Ukraine is looking for is simply respect for its sovereignty, and hopefully the political process that is unfolding now can address the concerns in a way that will strengthen that sovereignty and address the concerns that President Putin has expressed.

But we are and Europeans who have signed now an association agreement are firmly committed to the sovereignty and independence and stability of Ukraine, and we will continue to do the things that we are doing in furtherance of that policy.

MS. PSAKI: Thank you, everyone.



SECRETARY KERRY: Thank you all.

NASA VIDEO: LANDSAT'S GLOBAL PERSPECTIVE

ASSOCIATE AG WEST'S REMARKS AT JUVENILE JUSTICE COORDINATING COUNCIL

FROM:  U.S. JUSTICE DEPARTMENT 
Remarks by Associate Attorney General Tony West at the Juvenile Justice Coordinating Council
Washington, D.C. ~ Monday, July 28, 2014
As Prepared for Delivery

Thank you, Kathi. As always, I greatly appreciate the opportunity to participate in this meeting with you, our federal and practitioner members, as we explore ways we can better address the critical needs of our nation ’ s youth and their families.

Just a few minutes ago, I had the chance to spend some time with Starcia Ague and Osbert Duoa.  You'll hear from them directly in a moment, and I think you'll find their life journeys as compelling as did I when I first read about them.  But meeting with them helped to remind me of the essence of why we've gathered here this morning.

Of course, we're here as part of the Juvenile Justice Coordinating Council, and in particular in response to Attorney General Holder 's call to this Council four years ago that we make juvenile reentry a priority.

We're here because all of you heeded that call and have been actively engaged in the type of effective interagency collaboration that is producing real results and making a positive difference in the lives of so many youth.  Because while fewer youth are coming into contact with the justice system -- a development made possible thanks in no small measure to the efforts of folks around this table, as well as supportive private foundations such as MacArthur and Annie E. Casey -- we know that notwithstanding that, the recidivism rates for those youth who do come under systems supervision are often quite high.

We're here because, even though the last two decades have produced remarkable changes in state and local juvenile justice systems -- with juvenile arrest rates, including those for violent crimes, falling by over 50 percent from 1997 to 2011 (their lowest level in over 30 years) and youth confinement rates declining by half during that same period --- even with our success, we're here because 60,000 young people are still confined in juvenile detention and correction facilities on any given day and when they are released they will need support to successfully make that transition to productive adulthood and stable lives.

We're here because of young adults like Osbert and Starcia.  They remind us that at the end of all of the policy discussions and interagency collaborations, there are actual young lives that depend on folks around this table getting it right.  They remind us that each of these young lives has something of value to offer -- something unique to express to the world -- and through the work we do in these and other sessions -- by working to expand the support that will reduce recidivism and enhance post-juvenile systems education, job-training, parenting skills, counseling and health care -- we can maximize the opportunities for young people to express and be who they truly are; to find that inner strength, so clearly evidenced by Starcia, Osbert and so many others, to rise above circumstance and, as the English poet wrote, "open[] out a way/Whence the imprisoned splendor may escape."

So that's what brings us -- and keeps us -- around this table.  And today, we'll talk about effective strategies that should be applied as soon as youth come into contact with the juvenile and criminal justice systems and approaches that involve meaningful engagement with families and caregivers, as well as multiple service systems.

We will hear from our partners around the table, including the Council of State Governments Justice Center, regarding their activities that can help state and local juvenile justice systems to positively impact the well-being of transitioning youth.  And the department ’ s Office of Juvenile Justice and Delinquency Prevention (OJJDP) will discuss its strategic plan to position state and local governments in their efforts to support youth transition to a healthy, crime-free, and productive adulthood.

And it's important to note that our conversations today take place against a backdrop of sustained commitment to these efforts by this Administration.  As many of you know, just last week, the White House announced the Youth Opportunity AmeriCorps program that is jointly funded by the Corporation for National and Community Service (CNCS) and OJJDP.  It's an effort that supports the My Brother ’ s Keeper Initiative and will enroll disconnected youth in national service programs such as AmeriCorps over the next three years, backed by funding of up to $10 million.  We are pleased that Melissa Bradley and Kim Mansaray from CNCS are here with us today and we thank the Corporation for its commitment to this innovative initiative.

I started my remarks by mentioning Osbert and Starcia.  And as remarkable as those two individuals are, we know that nobody makes it in this world alone.  So I also want to acknowledge Osbert ’ s mother, Saygba Carl, and Osbert's mentor , Chef Jennifer Stott, who are both here with us today.

Thank you all for joining us.  It's now my pleasure to turn the floor over to Assistant Attorney General Karol Mason.

SECRETARY KERRY'S REMARKS AT CENTER FOR AMERICAN PROGRESS' INDIA: 2020 PROGRAM

FROM:  U.S. STATE DEPARTMENT 

Remarks at the Center for American Progress' India: 2020 Program

Remarks
John Kerry
Secretary of State
Center for American Progress
Washington, DC
July 28, 2014


Neera, thank you very, very much. Thank you for confirming to me your mother’s fealty. (Laughter.) I’m deeply appreciative for her support through the years and I’m sorry we lost you when you were 18, but I’m glad you wound up here, as is everybody else. We’re delighted that you’re here.

It’s a privilege for me to be back at the Center for American Progress, and I am very, very apologetic for the delay. I know I’ve kept you all from your appointed rounds and I apologize for that. It’s good to get the telephone unglued for a few minutes here. Obviously, we are still working hard at trying to deal with the issue of the crisis in the Middle East. I spoke to it a little earlier today, so I’m not going to repeat what I said, except to say to all of you that we want to be able to find a way to get to a table to discuss the underlying issues which are real and impactful on everybody and on the region. And we hope to be able to find the magic formula by which the violence could cease for a long enough period of time to try to find that sustainable ceasefire which could allow you to move on from there. The region has known violence for far too long. Too many innocent people caught in the crossfire, too many lives ruptured, and so it is imperative for all of us in positions of responsibility to do everything we can to try to find a diplomatic way, a peaceful way forward if possible.

It is a privilege for me to be back here at the Center for American Progress. Ambassador Sandhu, thank you for being here representing the Embassy, the DCM here, all of our ex-ambassadors and ex-assistant secretaries of Defense and otherwise – greatly appreciative for their supports and efforts to advance the very crucial relationship between the United States and India. And at a time when so many people are – you know, back in history when they were looking for a lot of simple slogans and silver bullets to cure an immediate problem, which was pretty basic, that the Democratic Party was out of the White House and sidelined in the minority in both the House and the Senate – that’s when a guy named John Podesta stood up and was determined to get past the day-to-day ups and downs of the Washington echo chamber, and helped to shape a principled and progressive policy agenda for governing.

John knew then what he practices now in the White House for President Obama: Good policy is good politics. So – excuse me, let me get rid of my flight here – good policy really does make good politics. I always found that and I’ve always tried to practice that. Under Neera Tanden’s leadership for the last couple years, CAP has continued to prove that good ideas are still the most important currency in our political debate. And that is a principle that has also guided CAP’s work on foreign policy, especially in convening Track II, the first intensive climate change dialogue between the United States and India.

India 2020 builds on that success by showing how the United States and India together can tackle global challenges, from security in the Asia Pacific to providing clean energy to delivering more inclusive growth. And Vikram Singh and Rich Verma are going to help lead us together on that, bringing some of the best minds together in terms of policy and politics, and I thank you very, very much for your contribution. Rich and Vikram, thank you for what you’re undertaking. It is really a dialogue about what is in most people’s currency but not always yet fully blossomed, one of the most important relationships internationally.

Now I just got back, as I think you all know, from a pretty intensive trip to Egypt, Israel, the West Bank, and to Europe, working to try to find an end to the violence that has threatened our ally Israel, and which has also cost hundreds of innocent lives in Gaza and elsewhere. The fact is that we were able to produce at least the beginnings of a ceasefire process, a 12-hour ceasefire, then confusion over 4 hours and 12 hours. But the bottom line is the concept of that, I think, is still appreciated by all, and the key now is to find the road, not the question of what.
Now there are some in America who question America’s efforts actually not just in America. There’s some people who ask this elsewhere. But particularly here, they question about our efforts to bring peace to various conflicts around the world. I think they ought to ask: What’s the alternative? Make no mistake, when the people of Israel are rushing to bomb shelters, when innocent Israeli and Palestinian teenagers are abducted and murdered, when hundreds of innocent civilians have lost their lives, I will and we will make no apologies for our engagement.
Ungoverned spaces threaten us all. Instability threatens us all. And upholding the rule of law and humanitarian standards are not only national security imperatives; they are the right thing to do. This is who we are and this is what we do. And frankly, I think it is what we do with greater gusto, with greater grounding, if you will, in international rule of law and structure, than almost – almost any other country.

But I want to be very clear about something, and that’s why I’m here today: Even as we focus on crises and flashpoints that dominate the daily headlines and govern the cable talk shows and so forth, even as that happens and they demand our leadership, we will always act with long-term strategic imperatives foremost in our mind, and that’s why we’re here today. You can go to any capital in the world and you can find different nuanced and self-assured perspectives about American foreign policy. But if you were lucky enough to have the top hundred foreign policy thinkers sit in a room together and you asked them to name the most important relationships for which the United States, with that relationship, will most affect the direction of the 21st century, I can guarantee you this: Every single one of them would rank the U.S.-India relationship right up there in the top tier.

So I want to emphasize the key relationship for the United States – one of the key relationships for the United States in that context is the deepening relationship with India, and particularly trying to deepen our ties with India in terms of our strategic imperatives, both of us. It doesn’t matter just to us or to India; it actually matters to the world. And that’s why, in my first months as Secretary of State, I went to India. And it’s no coincidence that at the time, I – that in Prime Minister Modi’s first 100 days in his government, I’m now returning to Delhi for two days of Strategic Dialogue and discussion. And it was no accident that in the intervening time, we’ve had many discussions and meetings and the prime minister – former Prime Minister Singh, came here to the White House during that period of time.

But then, of course, they had an election. And as everybody knows, from certain number of months during an election, things tend to be put on hold. Now is the time to renew that dialogue with a new government, with a new set of opportunities, new possibilities. This is a potentially transformative moment in our partnership with India, and we’re determined to deliver on the strategic and historic opportunities that we can create together.

In a globalized world, we recognize that yes, India’s going to have many different partners. That’s the nature of the world we’re in today. But we believe there are unique opportunities for just United States and India, and that the dynamism and the entrepreneurial spirit of Mumbai and Bangalore, of Silicon Valley and of Boston – that is precisely what is required in order to solve some of the world’s greatest challenges.

President Obama is absolutely right to call this a defining partnership for the 21st century. India’s new government has won an historic mandate to deliver change and reform. And together, we have a singular opportunity to help India to be able to meet that challenge – to boost two-way trade, to drive South Asia’s connectivity, to develop cleaner energy, to deepen our security partnership in the Asia Pacific and beyond. The United States and India can and should be indispensable partners for the 21st century, and that is, I assure you, the way we approach the Modi government and the way we view this particular time. This week, Secretary Pritzker and I will be emphasizing those opportunities as we meet leaders of India’s new government.

Now we face, as we all know – and Neera talked about it, and it is true – this is a particularly challenging moment. Forces that were pent up for years in the Cold War tampened down by dictatorship and absence of freedom to speak have suddenly been released everywhere, and everywhere everybody is in touch with everybody all the time. It changes the face of politics profoundly everywhere. People have more information, more ability to organize, more ability to talk to each other. So we do face a host of critical challenges together and we face a world in which more young people more rapidly are demanding more from their governments with too many places where there’s too little response. And that is a challenge for all governance, none more so than what we do to link our economies, India and the United States, in order to further our shared prosperity agenda.

What we do to strengthen global security and a rules-based international system, how we turn the challenges of climate change into an opportunity for greater cooperation and economic growth – these are the big challenges. These are opportunities for us. Our countries have had a decades-long relationship, and I can personally remember the lingering sense of suspicion and distrust when I first went to India at the end of the Cold War. I traveled to Delhi, Mumbai, Bangalore with executives from companies like Raytheon and Nextel, companies that are doing booming business in India today. I remember talking to then-Finance Minister Singh about the reforms that were needed and the opening up of the economy and the ability to be able to attract capital and have rules that made sense to everybody that we all understood. I remember that back then, and I felt then the possibility of the enormous potential of a closer, stronger partnership.

And now, it’s not hard to see how in this moment, we can actually deliver on that partnership’s full promise. The new Indian Government’s plan, “Sabka Saath, Sabka Vikas”, together with all, development for all – that’s a concept, a vision that we want to support. We believe it’s a great vision, and our private sector is eager to be a catalyst in India’s economic revitalization. American companies lead in exactly the key sectors where India wants to grow: in high-end manufacturing, in infrastructure, in healthcare, information technology, all of them vital to sort of leapfrogging stages of development so you can provide more faster to more people
India also wants to build a more competitive workforce, and already 100,000 Indians study each year in American universities. But America’s community colleges actually set a remarkable standard for 21st century skills training. We should be expanding our educational ties across the board, increasing opportunities for young people in both of our nations. I know Prime Minister Modi drew from that energy of India’s youth during his campaign. He repeatedly pointed out that while India’s one of the world’s oldest civilizations, it has the world’s youngest population. Prime Minister Modi has said that young people have a natural instinct to rise like a flame. And he has spoken about India’s duty to nurture that instinct, and we believe, frankly, that’s a duty for both of our nations.

And that means strengthening the exchange in technical education, in vocational programs for high-skilled trades, and especially in areas where we can build on the entrepreneurial and innovative spirit of both of our nations. And we all know about the extraordinary work ethic that people in India have and the capacity to be able to do this and seize this opportunity. One of the marked contrasts of this moment is this juxtaposition to parts of the world where young people demanded a participation in this world they see around them, and rose up against leadership that had stultified over the course of years, decades even – Tunisia, Egypt, Syria. They all began without one flake of religious extremism involved in the revolutions that brought change. It was all about young people gathering and forcing the notion that they wanted something more to life. They wanted opportunity, education, respect, dignity, jobs, a future.

So this possibility I’ve just defined between India and the United States, which fits very neatly into Prime Minister Modi’s vision that he expressed in a campaign which was ratified overwhelmingly by the people of his country is exactly the vision that we need to embrace now, and that’s why this opportunity is actually so ripe. This area of cooperation is particularly exciting, I think, and I’m particularly confident about these opportunities, because only countries that reward creativity the way the United States and India do could have possibly launched Hollywood and Bollywood. (Laughter.) Only countries that celebrate the entrepreneur the way we do could have launched Silicon Valley and Bangalore as global epicenters for innovation.
Innovation and entrepreneurship are in both of our DNA, and they not only make us natural partners; they give us natural advantages in a world that demands adaptability and resilience. The United States and India cannot afford to just sort of sit back and rest on these currently existing advantages. We have to build on them and we have to build on them by investing more in one another. Now unlike some other nations, the United States cannot direct a private corporation to go invest in a particular country. President Obama can’t order businesses to build factories in Kolkata or Chennai. It just doesn’t happen.

But we do know this from several hundred years of experience: If India’s government delivers on its plans to support greater space for private initiative, if it creates greater openness for capital flows, if it limits subsidies that stifle competition, if it provides strong intellectual property rights, believe me, even more American companies will come to India. They may even race to India. And with a clear and ambitious agenda, we can absolutely help create those conditions.
So as we work with our trading partners around the world to advance trade and investment liberalization, India has a decision to make about where it fits in the global trading system. India’s willingness to support a rules-based trading order and fulfill its obligations will help to welcome greater investment from the United States and from elsewhere around the world. The greater transparency and accountability that Prime Minister Modi put in place during his time as chief minister tells us he has already provided a model of how raising standards can actually increase economic growth.

Now I believe the United States and India should continue to reach for the ambitious target that Vice President Biden laid out last summer in India, to push from 100 billion to 500 billion a year in trade. And whatever impediments we may face along the way, we need to always be mindful of the opportunities and the bigger picture around this. So it’s in our – excuse me. It is completely in our mutual interest to address those obstacles that kind of raise their head here and there as you go along the way and to remember that a lot bigger opportunities will come from more robust ties, so we need to keep our eye on the prize out there and not get dragged down by one small or lesser particular aspect of a restraint. The bigger picture has to guide us and the end game has to guide us.

If you have any doubts, just look at the opportunities that Ford is creating right now in India. They’re doubling production from plants in Gujarat and Chennai. They’re investing 1 billion to make India a global hub for exports. Take a look at the jobs that TATA is creating for Americans by expanding auto design and sales in the United States, adding to its 24,000 employees already in this country. Already, Indian investment creates close to 100,000 jobs right here at home.

And we also convinced – we are convinced that just as the United States and India can do more to create shared prosperity, so can India and its neighbors. Simply from the size of South Asia’s market – 1.6 billion consumers – and from India’s geography, sitting at the center of this dynamic Asian continent, the opportunities are leaping out at us. They’re just enormous. And just to underscore how untapped this potential is, consider this: South Asia is the least integrated economic region in the world. Fastest growing region in the world, Southeast Asia.
By strengthening trade links with Bangladesh, by building on the political opening in Burma, by increasing trade with the Asia Pacific and Southeast Asia, India can be at the heart of a more connected, prosperous region. So we are deeply committed to helping India grab ahold of these opportunities.

That’s why the United States is supporting an Indo-Pacific Economic Corridor to connect South Asia to Southeast Asia. That’s why we’re focused on investing in regional infrastructures and in the creation of a regional energy market. And that’s why we’re supporting new trade routes linking Central and South Asia with the New Silk Road Initiative. I mean this is – the possibilities here are gigantic.

Now clearly, Prime Minister Modi understands the opportunities that regional connectivity provides for India and for a more stable, prosperous region. And by inviting leaders from around the region to his swearing-in, and by bringing them together to speak about connecting their economies as one of his first orders of business, he is eager for India to play a leading role. And guess what? So are we.

Nowhere is that leadership more critical than in improving cross-border trade and relations between India and Pakistan. Prime Minister Modi took the important first step of inviting Nawaz Sharif to his inauguration. Both men are business-minded leaders who want to create opportunity for their people. I talked to Nawaz Sharif after his visit there. He was very encouraged, thought it was positive, possibilities he understood. So improved trade is a win-win for both countries and both peoples. And I know that there are plans for the commerce secretaries and foreign secretaries to meet in the coming weeks in order to build on that. I commit to you that the United States will do everything we can to encourage India and Pakistan to work together and improve the prospects for both prosperity and stability in the region.
Now India has already shown a deep commitment to regional stability with the generous investments in Afghanistan. At this critical moment of transition and in the coming months, support from all across the international community will be vitally important. In the coming days, I will continue to work closely with President Karzai, with the candidates, with the United Nations in order to provide Afghanistan with support during the transition. And we look forward to working also with India on this, and we look forward to India engaging with its neighbors so that Afghanistan’s connections to the region and the world are defined by the opportunity that they can create together.

Far beyond Afghanistan, India is assuming greater responsibilities for regional and global security. As India plays an increasingly global role, its interests are served by forging strong partnerships on a broad range of issues. Among South Asian nations and within international organizations, India should be a global leader. That’s why President Obama voiced his clear support for a reformed UN Security Council that includes India as a permanent member.
For several years, India has been a major partner in the fight against piracy in the Strait of Malacca and off the Horn of Africa. Even as we speak, India and the United States are participating in RIMPAC and Malabar joint naval exercises. Secretary Hagel will explore broadening our deepening – the deepening possibilities of our relationship with India when he travels there in early August.

Counterterrorism is also a challenge to both of our nations. The United States and India are continuing a very close partnership in that regard we began after the horrific Mumbai attacks, and then we began to train first responders in order to help protect our citizens. And President Obama was critical clear – crystal clear about the stakes for our counterterrorism partnership in his West Point speech in May. And our two nations have already provided one model of how these partnerships can work. Our collaboration on counterterrorism and real-time information sharing has helped us confront common threats and bring terrorists to justice.

But there is obviously room for us to be able to do more. When terrorist attacks took 400 Indian lives in 2013 alone, we know that the threat of terrorism remains too real and far too high for India’s people. Confronting terrorism requires our continued partnership and it requires continued vigilance. And it also means leading with our values. India and the United States are two nations that have worked hard to overcome our own divisions so that today we draw strength from pluralism and diversity. We’ve got to provide that example as we work to provide opportunity beyond our borders, addressing the conditions that allow extremists to thrive in the first place.

I won’t tell you where, but I’ll tell you I was with a foreign minister of a country in Africa recently, and we had dinner and we talked kind of candidly and openly as you can in that situation. And he said to me – I asked him about their Muslim population and what was happening. And he said, “Well, X percentage of our population is Muslim, and we’re very worried, because the bad guys have a strategy. They grab these young minds when they’re 13, 14, 15, 16. They pay them originally, and then when they get the minds, they don’t pay them anymore, they don’t have to. Then they send them out to recruit or conduct a mission. And they subvert the state. They have a strategy. Do we?”

It’s a prime question for all of us, and in so many parts of the world where 60 percent of the population is under the age of 30, 50 percent under the age of 21, 40 percent under the age of 18 and more in some places – if these people don’t find jobs and they don’t get an education and they don’t have opportunity and dignity and respect and a voice, then you know who’s going to grab them and say, out of frustration, “There’s a better way.” That’s part of our challenge and responsibility as great global powers, and that’s part of how we tame the most dangerous impulses of a more interconnected world.

One challenge that drives home just how interconnected and interdependent we are on this planet is this challenge of a lifetime called climate change. For millions of Indians, extreme weather and resource shortages are not future threats; they are here now. They’re endangering their health and prosperity and security every single day.

In India’s largest rice-producing region, West Bengal, the Monsoon rains have been 50 percent lower than average this year. This comes after the monsoons all but failed last year in several Indian states, helping to cause one of the worst droughts in a generation, affecting 120 million Indians.

In parts of northern India, armed bandits have imposed what amounts to a water tax, demanding 35 buckets a day. So believe me, it is not hard to measure the ways in which climate change every single day is already a catalyst for instability. I can show you places in the world where tribes fight over a well and people are dying because of the absence of water.
And while parts of India suffer from a once-in-a-generation drought, others suffer from – guess what – historic rains. When I arrived in India last summer, Uttarakhand was grappling with historic floods that killed more than 5,000 people.

So climate volatility is clearly taking a toll on India’s population. And so is pollution. Of the 10 cities in the world with the worst air quality, six are in India. Each year in India, the effects of air pollution cause nearly 1.5 million deaths.

So we know what the down sides are, but happily, guess what, we also know what the solutions are. And forging these solutions is a huge economic opportunity for both of us. The solution comes from areas where we already do things very well, where we’ve already made great progress, where innovation, smarter energy policy, and clean energy technology are already defining the future.

Let me just share with everybody – I reinforce this again and again whenever I get a chance. The solution to climate change is energy policy. It’s not some magical, unreachable, untouchable thing out there. It’s not pie in the sky. It’s energy policy. And where we put good energy policy in place, we reduce emissions and we begin to contribute to the solution. It’s a huge market, my friends.

I also remind people that the market that created the great wealth of the United States of America during the 1990s, which made Americans individually and otherwise richer than they’d ever been in American history – at the top end it made people richer than they did in the 1920s when we didn’t have an income tax, and every single quintile of American income earners saw their income go up in the 1990s. You know what that was? A $1 trillion market with one billion users. It was the high-tech computer, personal computer, et cetera market.

Today’s energy market is a – today’s energy market is a $6 trillion market now, with four to five billion users, growing to nine billion users over the course of the next 30 years, by 2050. Just think about that. It’s an opportunity for huge numbers of jobs, for transformation in the provision of our power, transformation in health, get rid – lowering the pollution, moving into the new energy sources, providing safety and security in energy so we don’t have instability. And I could run on in the possibilities, not the least of which our global responsibility to stand up for and leave a cleaner, better, more sustainable Earth to our children and our grandchildren. It’s a way of living up to our responsibility as stewards of the planet, which, by the way, is directed to us in every major scripture of every major religion.

Now, both of our nations pride ourselves on science and innovation. So the bottom line is this is up to us. It’s up to us to deliver. I know Prime Minister Modi understands the urgency. He’s called for a Saffron Revolution, because “the saffron color represents energy.” And he said that “this revolution should focus on renewable energy sources such as solar energy, to meet India’s growing energy demand.” He is absolutely right, and together I believe that we can at last begin a new constructive chapter in the United States-India climate change relationship.

The United States has an immediate ability to make a difference here, and we need to eliminate the barriers that keep the best technology out of the Indian market. And the United States can help India find and develop new sources of energy through renewable technologies and greater export capacity for liquefied natural gas.

Already, we’ve brought together more than 1 billion in financing for renewable energy projects. And with this funding, we helped to bring India’s first 1,000 megawatts of solar power online. But we need to build on the U.S. India Civil Nuclear Agreement, so that American companies can start building and can start providing clean power to millions in India. And we need to build on the $125 million investment that we’ve made in a Joint Clean Energy Research and Development Center.

Prime Minister Modi has also made a commitment to electrify every home in India by 2019. With fewer limits on foreign technology and investment in India’s green energy sector, we can help make clean power more cost-effective and more accessible at the same time. We can provide 400 million Indians with power without creating emissions that dirty the air and endanger public health. And by working together to help an entire generation of Indians leapfrog over fossil fuels, we can actually set an example to the world.

So I readily acknowledge that today’s climate challenges did not start with India. And we know that the United States is the second-largest emitter of carbon in the world – the first now being China, who have overtaken us. But we also know that we can’t solve these problems alone – no one. They require partnership. And our partnership requires our leadership. By acting right now to reduce emissions, just as President Obama has done here in the United States, by investing in innovation, and by working together in the UN climate negotiations, we could prevent the most devastating consequences of climate change and meet this generational challenge.
Lastly, in this century, one that will continue to be defined by competing models of government, India and the United States have a common responsibility – we already have it; we share it – to prove that democracies can deliver for their citizens. Our two nations believe that when every citizen, no matter their background, no matter their beliefs, can make their full contribution. That is when we are strongest and that’s when we’re most secure.

So we are two confident nations, connected by core values, optimistic nations, never losing sight of how much more we can and must achieve. From women’s rights to minority rights, there is room to go further with our work together. And we also have to speak with a common voice against the violence against women in any shape or form that is a violation against our deepest values.

The United States and India are two nations that began both of their founding documents with exactly the same three words: “We the people.” By deepening our partnership, we can work together to deliver opportunity to all of our people and become stronger nations.
President Roosevelt, of course, described America as having a “rendezvous with destiny.” India’s first Prime Minister Jawaharlal Nehru spoke about India’s “tryst with destiny.” This can be a moment where our destinies actually do converge. And if we harness our capacity of our two nations, if we deepen our partnership, if we make smart choices, if we seize these opportunities, the United States and India can create a more prosperous and secure future for the world and for one another.

That is why I leave for Delhi tomorrow night, and that is why the President will welcome Prime Minister Modi to Washington in September. Because this is the moment to transform our strategic relationship into an historic partnership that honors our place as great powers and great democracies. We intend to leave not an instant behind us. We are going to get to work now. Thank you. (Applause.)

NSF REPORTS ON TELE-ROBOTICS

FROM:  NATIONAL SCIENCE FOUNDATION 
Tele-robotics puts robot power at your fingertips
University of Washington research enables robot-assisted surgery and underwater spill prevention

At the Smart America Expo in Washington, D.C., in June, scientists showed off cyber-dogs and disaster drones, smart grids and smart healthcare systems, all intended to address some of the most pressing challenges of our time.

The event brought together leaders from academia, industry and government and demonstrated the ways that smarter cyber-physical systems (CPS)--sometimes called the Internet of Things--can lead to improvements in health care, transportation, energy and emergency response, and other critical areas.

This week and next, we'll feature examples of Nationals Science Foundation (NSF)-supported research from the Smart America Expo. Today: tele-robotics technology that puts robot power at your fingertips. (See Part 1 of the series.)

In the aftermath of an earthquake, every second counts. The teams behind the Smart Emergency Response System (SERS) are developing technology to locate people quickly and help first responders save more lives. The SERS demonstrations at the Smart America Expo incorporated several NSF-supported research projects.

Howard Chizeck, a professor of electrical engineering at the University of Washington, showed a system he's helped develop where one can log in to a Wi-Fi network in order to tele-operate a robot working in a dangerous environment.

"We're looking to give a sense of touch to tele-robotic operators, so you can actually feel what the robot end-effector is doing," Chizeck said. "Maybe you're in an environment that's too dangerous for people. It's too hot, too radioactive, too toxic, too far away, too small, too big, then a robot can let you extend the reach of a human."

The device is being used to allow surgeons to perform remote surgeries from thousands of miles away. And through a start-up called BluHaptics--started by Chizeck and Fredrik Ryden and supported by a Small Business Investment Research grant from NSF--researchers are adapting the technology to allow a robot to work underwater and turn off a valve at the base of an off-shore oil rig to prevent a major spill.

"We're trying to develop tele-robotics for a wide range of opportunities," Chizeck said. "This is potentially a new industry, people operating in dangerous environments from a long distance."

-- Aaron Dubrow, NSF
Investigators
Fredrik Ryden
Howard Chizeck
Blake Hannaford
Tadayoshi Kohno
Related Institutions/Organizations
BluHaptics Inc
University of Washington

SECRETARY KERRY'S REMARKS AT YOUNG AFRICAN LEADERS SUMMIT

FROM:  U.S. STATE DEPARTMENT 

Remarks at the Presidential Summit of the Washington Fellowship for Young African Leaders

Remarks
John Kerry
Secretary of State
Omni Shoreham Hotel
Washington, DC
July 28, 2014




SECRETARY KERRY: Wow. What a great group. Thank you. Please, sit down. Sit down, sit down. Thank you. It is so good to see you all. Welcome. You having fun?

AUDIENCE: Yes.

SECRETARY KERRY: I’m glad to hear it. It’s just beginning. And the President’s going to get a chance to speak with everybody before long. That’ll be great. We look forward to it. I can’t tell you – I’m really excited to see you all here, and I hope you’re excited to be here. That’s important. (Cheers and applause.)

I cannot thank all the leaders all across the State Department and across the Administration – people have worked really hard to get here. Leaders on our campuses, college campuses all across the country, all of them have come together to help make this possible. And I’m particularly grateful to the Bureau of Educational and Cultural Affairs, the Bureau of African Affairs, the Bureau of International Information Programs, USAID, the U.S. African Development Foundation, NGO IREX, and the staff of 20 – 20 – academic host universities. That’s a big group of people who helped make this happen, and we’re grateful for them. (Applause.)
But most importantly I want to thank you. I’m so honored and excited, as you can tell, I think – I hope you can tell – (laughter) – to welcome you all here. It is such a pleasure to welcome so many young African leaders to Washington. And as you know, the leaders of countries will be coming here in just a few days for a first-ever summit of all the African leaders. We’re really excited about that. The President’s been personally very focused on it. And right now, we have five hundred fellows from all 49 countries in sub-Saharan Africa. This is really remarkable. This is a first. And I know the real presence of a kind of excitement, a hopefulness, a sense of possibility that is accompanying and defining this meeting. I can almost feel my hair growing brown again. (Laughter.) It’s reversed.

I actually had a chance to meet a few of you – and I don’t know where you all are in the ground here. How many of you met me along the way in the last journey? There we go. Hands waiving over here and here. Anybody over here? Hello, again. Nice to see you. Anybody back here? Thank you. And that’s what gave me such a great belief in this, was when I was in Africa in May.
And I will never forget the story of one young woman named Haleta Giday – (cheers and applause.) Where’s Heleta? Yeah, stand up. Let everybody know. (Applause.) So Haleta graduated from one of the best schools in Ethiopia. She could pick any job she wanted to do, believe me. She had the chance to do the most lucrative job there is – make a lot of money, go into the big corporate world, and literally do anything. You know what? Instead, she chose to represent women and children who were the victims of violence. And when Haleta saw how many widows went bankrupt after they lost their husbands, she began a campaign to educate women about their legal and financial rights.

She’s already lived a remarkable life. But what’s even more remarkable is that she’s not alone. She is just one of many young African leaders who are taking on some of the toughest challenges, all of you.

We’re here today because the United States and countries across Africa are natural partners, and it’s time to take our partnership to the next level by investing in the continent’s greatest natural resource of all: its people. (Applause.) And that’s what the Young African Leaders Initiative is all about: investing in your future – and ours – by engaging in the promise of a new generation of great leaders in every single field of endeavor. And when 65 percent of Africa’s population is under the age of 35, let me tell you, we don’t have a moment to waste.

The fact is that we have reached an inflection point for the new Africa. It is a time and a place where all of you have the great opportunity of a lifetime to bend the arc of history toward change, not stagnation. You can bend it towards peace and prosperity, not conflict and retribution. Africa’s course – and this is not an exaggeration – it is ultimately up to you, the next generation of leaders who will seize the future and become the next generation of CEOs and community and political leaders, the national leaders. You will define that future.
When I look out at this audience, I’m not kidding you when I say I see the promise of that future. (Applause.) I see the human faces behind the story of just how far Africa has come. Just consider what all of you have witnessed over the course of your young lives.

You have seen real incomes across Africa increase more than 30 percent, reversing two decades of decline. You’ve seen African trade with the rest of the world increase by 20 percent – 200 percent, excuse me. You’ve seen 35 peaceful transitions of power – 35 peaceful transitions of power – and the number of democracies has more than tripled. That is a continent on the move. And you’ve seen HIV infections decline by nearly 40 percent and malaria deaths among children decline by 50 percent. And we are on a cusp of looking at the first generation of children who may be born AIDS-free as a result of the efforts that we are making. (Applause.)
So this really is a moment of great opportunity for Africa. But make no mistake, it’s not automatic. It is also a moment of great decision. The choices that African leaders make, the choices that you make, the choices that you push the political systems of your countries to make, the choices that you help to debate and put on the table and make part of the dialogue of your countries – all of that will determine the future.

You will decide whether or not a decade of progress leads to an era of African prosperity and stability or whether your countries tragically fall back into cycle after cycle of tragic violence and mark a governance that is weak and stifles the promise of a continent for too long – your promise, the promise that each and every one of you bring here to Washington, the promise that I know motivates you every single day as you pursue an education or begin to work as professionals and go out into the world, whether it’s in the private sector or the public sector, all of you committed to try to change the future. You have the ability to do that.

And that is precisely why President Obama launched YALI, to empower you with new skills, new resources, new networks so that you can not just demand action but you can go out and act on your own dreams and hopes and vision for the future. Your brief experiences here in the United States are just the start of what we hope will be lasting relationships between each of you but also with us. We’re investing in you so that you can invest in your countries and in the U.S.-Africa partnership. YALI embodies the United States continuing commitment to that vision. And I am very, very proud that you aren’t just heeding the call, you’re leading the charge. (Applause.)
I’m also inspired by the story of Hashim Pondeza. Hashim, where are you? (Cheers and applause.) Hashim, stand up. I wanted to – Hashim is from Tanzania and he is leading the charge to strengthen democratic institutions. That’s never easy work and it can carry risks in some places. He has worked on child protection issues for Save the Children and for Zanzibar’s Ministry of Labor. But today, he’s working to strengthen civil society and democratic institutions at the local level across Tanzania.

Hashim knows that promoting good governance isn’t just about whether you can work well on your side; it’s about working side by side. And as he says, “The biggest challenge is trying to get many factions to cooperate to reach the same aim.” Let me tell you something, as somebody who’s in the middle of trying to get some people to just get seven days of a ceasefire in the Middle East, I know what you’re talking about Hashim. (Applause.) It’s never easy, but that doesn’t mean you stop and that doesn’t mean you turn away. You have to keep doing it. Remember what Nelson Mandela said, “It always seems impossible, until it is done.” And that’s what we have to have as our guide. (Applause.) So I’m proud that the future of our partnership is in Hashim’s hands, in your hands.

I’m also inspired by Aichatou Tamba. Where’s Aichatou? Is she here somewhere? Aichatou. (Cheers and applause.) Aichatou’s from Ethiopia and she’s leading the charge to promote peace and security. Too often, in too many countries borders become a barrier – a barrier not just to communication but a barrier to trade, a barrier to the movement of talent, a barrier to technology. Aichatou has been working to turn those barriers into opportunities. She’s partnered with a dozen African states to promote conflict prevention, and she’s working with the African Union Border Program in Ethiopia to make a difference on the ground. I’m proud that the future of our partnership is also in Aichatou’s hands. (Applause.)

And I’m inspired by Zandile Lambu from Zimbabwe. (Cheers and applause.) Where is Zandile? Raise your hand. She is leading the charge to promote inclusive economic growth. And Zandile hasn’t just spoken words about shared prosperity; she’s walked the walk. She’s used her position at Econet Services to create new trade opportunities for mobile money products in Africa. She’s partnered with businesses to provide mobile money services to local communities. You know how hard it is to get money into people’s hands or move it or control it. Well, there’s a way to do that now in this mobile technological world that we all live in. And she’s being creative and grabbing the best of that, and she’s volunteered to teach other young women how to design and develop mobile apps. She’s not in this business to make money. She’s in it to make a difference, and I’m proud that the future of this partnership is also in Zandile’s hands. (Applause.)

Now we live in a very complicated world today, full of very close calls that can go either way, but I know this: When you promote democratic change, when you transform borders of conflict into bastions of peace, when you empower women to realize their aspirations, you create a better future, not for some, but for all. There is no way to win this battle in countries where women are left behind – you cannot leave half your team off the field and win the game. (Applause.)
I want you to know that the Obama Administration is inspired by the work that Hashim and Aichatou and Zandile are all doing, all of you are doing, and that’s why we are so committed to the Young African Leaders Initiative for the long haul – not just for this meeting, for the long haul. And when you leave here, I hope you will leave here with a renewed sense of purpose, with a renewed sense of hope, with a renewed commitment, with a renewed understanding of what is possible, and I hope you will take these connections you’ve made here and make the change that you seek.

The challenges may be real – no, they are real. We all know that. But guess what? So are the opportunities. Africa can be a beacon for the world. Dramatic transformations are possible. Africa will be the place of great growth in this century. You will be the witnesses to remarkable transformation. But how you transform; who benefits; what you become; what rights you protect; what opportunities you create and guarantee – that will write the real history. Each of you has an incredible opportunity to change lives for the better, and you can do – you can define your nations in the doing of that. It’s tough work. It requires sober commitment and a clear vision of a better future. But I have every confidence, and President Obama is more than convinced, which is why he convened this, that you will rise to the challenge and lift up and inspire citizens in your own countries, all of whom you know are hoping desperately for change.
I want to leave you with a thought from the man who inspired me when I was growing up, a younger brother of the youngest man ever elected America’s president, and a man who had a vision in his own right and went to South Africa in 1968 and laid it out to people at a time when it was still difficult – Robert Kennedy.

He said: “Few will have the greatness to bend history itself, but each of us can work to change a small portion of events – and in the total of all those acts will be written the history of this generation.” He went on to say that each time a man or a woman works to strike out against injustice or change the lot of others, he or she sends forth a tiny ripple of hope, and crossing each other for a million different centers of energy and daring, those ripples can build a current that will sweep down the mightiest walls of oppression and resistance.

My friends, this is your moment to write the history of Africa for the next generation. You have the will. You have the drive. You have the intelligence. You have the vision. You have the ability. You have the courage to stand up and say loudly and clearly, “I will be responsible.” And that is leadership. That’s the future that we can build together. And we are convinced that that future begins now, here, with these meetings and in the work that you will take back with you, and in our partnership over these next years.

Thank you all, and God bless. Thank you. (Applause.)

LLOYDS BANKING GROUP ADMITS WRONGDOING AND WILL PAY $86 MILLION FOR LIBOR MANIPULATION

FROM:  U.S. JUSTICE DEPARTMENT 
Monday, July 28, 2014
Lloyds Banking Group Admits Wrongdoing in LIBOR Investigation, Agrees to Pay $86 Million Criminal Penalty

Lloyds Banking Group plc has entered into an agreement with the Department of Justice to pay an $86 million penalty for manipulation of submissions for the London InterBank Offered Rate (LIBOR), a leading global benchmark interest rate.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Antitrust Division, and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

A criminal information will be filed today in U.S. District Court for the District of Connecticut that charges Lloyds as part of a deferred prosecution agreement (DPA).   The information charges Lloyds with wire fraud for its role in manipulating LIBOR.   In addition to the $86 million penalty, the DPA requires the bank to admit and accept responsibility for its misconduct as described in an extensive statement of facts.   Lloyds has agreed to continue cooperating with the Justice Department in its ongoing investigation of the manipulation of benchmark interest rates by other financial institutions and individuals.

“For more than three years, traders at Lloyds manipulated the bank’s LIBOR submissions for three currencies to benefit the trading positions of themselves and their friends, to the detriment of the parties on the other side of the trades,” said Assistant Attorney General Caldwell.   “Because investors and consumers rely on LIBOR’s integrity, rate-rigging fundamentally undermines confidence in financial markets.   Lloyds is the fifth major financial institution that has admitted LIBOR manipulation and paid a criminal penalty, and nine individuals have been criminally charged by the Justice Department.   Our active investigation continues, as we work to restore trust in the markets.”

“Lloyds manipulated benchmark rates, allowing its traders to increase their profits unfairly and fraudulently,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.   “Lloyds’s conduct undermined financial markets domestically and abroad, and today’s charges send a clear message that we will continue to bring those responsible to justice."

“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s agreement further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”

Together with approximately $283 million in criminal and regulatory penalties imposed by other agencies in actions arising out of the same conduct – $105 million by the Commodity Futures Trading Commission (CFTC), and approximately $178 million by the U.K. Financial Conduct Authority (FCA) – the Justice Department’s $86 million criminal penalty brings the total amount to be paid by Lloyds to almost $370 million.

According to signed documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world and reflecting the rates those banks believe they would be charged if borrowing from other banks.   LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.   The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.

At the time relevant to the conduct in the criminal information, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London.   LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year.   The LIBOR for a given currency at a specific maturity was the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA.   From at least 2006 through the present, Lloyds (through its subsidiaries) has been a member of the Contributor Panel for a number of currencies, including United States Dollar LIBOR, Pound Sterling LIBOR, and Yen LIBOR.

According to the statement of facts accompanying the agreement, between at least as early as 2006 and at least as late as July 2009, Lloyds’s LIBOR submitters for Dollar LIBOR, Yen LIBOR, and Pound Sterling LIBOR submitted LIBOR contributions intended to benefit their own trading positions or the trading positions of others , rather than rates that complied with the definition of LIBOR.   When Lloyds LIBOR submitters contributed LIBOR submissions to benefit trading positions, the manipulation of the submissions affected the fixed rates on occasion.

According to signed documents, on May 19, 2009, a money markets trader who was a former Dollar LIBOR submitter at a subsidiary of Lloyds wrote to the then-current Dollar LIBOR submitter: “have 5 yard [billion] 3 month liability rolls today so would be advantageous to have lower 3month libor setting if doesn’t conflict with any of your fix’s.”   Later that day, the Dollar LIBOR submitter told the money markets trader in a phone call: “obviously we got the Libors down for you.”

In another example, on March 6, 2009, a money markets trader who was a former Pound Sterling LIBOR submitter for a subsidiary of Lloyds told the then-current Pound Sterling LIBOR submitter: “Um, I’m paying on 12 yards [billions] of 1s today, . . . so if there is any way of making 1s relatively low it would just be helpful for us all.”   That day, the Pound Sterling LIBOR submitter contributed a rate that was ten basis points lower than the previous day’s submission.

Also according to the statement of facts, a Yen LIBOR submitter and a former submitter at Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) who traded money-markets and derivatives products had an agreement to submit Yen LIBOR contributions that benefitted their respective trading positions, rather than submissions that complied with the definition of LIBOR.

For example, on July 28, 2006, the Rabobank submitter wrote to the Yen LIBOR submitter: “morning skipper.....will be setting an obscenely high 1m again today...poss 38 just fyi.”   The Yen LIBOR submitter responded: “(K)...oh dear..my poor customers....hehehe!! manual input libors again today then!!!!”   Both banks’ submissions on July 28 moved up one basis point, from 0.37 to 0.38.

This ongoing investigation is being conducted by special agents, forensic accountants, and intelligence analysts of the FBI’s Washington Field Office. The prosecution of Lloyds is being handled by Trial Attorney Patrick Pericak of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. Assistant U.S. Attorneys Chris Mattei and Michael McGarry of the U.S. Attorney’s Office for the District of Connecticut, along with the Criminal Division’s Office of International Affairs, have provided valuable assistance in this matter.

The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance. In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

Monday, July 28, 2014

READOUT: 5 LEADER TELECONFERENCE ON UKRAINE, GAZA AND LIBYA

FROM:  THE WHITE HOUSE

Readout of the President’s Video Teleconference with Prime Minister Cameron of the United Kingdom, President Hollande of France, Chancellor Merkel of Germany, and Prime Minister Renzi of Italy

President Obama spoke today with Prime Minister Cameron of the United Kingdom, President Hollande of France, Chancellor Merkel of Germany, and Prime Minister Renzi of Italy.  The five leaders discussed next steps concerning the crisis in Ukraine, efforts to achieve a ceasefire in Gaza, and also the situations in Iraq and Libya.  On Ukraine, the leaders stressed the continued need for unrestricted access to the shoot-down site of Malaysia Airlines Flight 17 to allow for recovery of victims’ remains and for international investigators to proceed with their efforts.  They agreed on the importance of coordinated sanctions measures on Russia for its continued transfer of arms, equipment, and fighters into eastern Ukraine, including since the crash, and to press Russia to end its efforts to destabilize the country and instead choose a diplomatic path for resolving the crisis.  Concerning the situation in Gaza, the President noted that Israel has the right to take action to defend itself.  The leaders agreed on the need for an immediate, unconditional humanitarian ceasefire, noting shared concern about the risk of further escalation and the loss of more innocent life.  On Iraq, they discussed the security challenges, welcomed developments in the political process, and urged the swift completion of the formation of an inclusive government.  With respect to Libya, they agreed on the need for an immediate ceasefire among militias in Tripoli, called for the seating of the newly elected Council of Representatives, and underscored support for the UN in seeking a resolution to this conflict.  They condemned any use of violence to attack civilians, intimidate officials, or disrupt the political process. 

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