FROM: U.S. JUSTICE DEPARTMENT
Assistant Attorney General Leslie R. Caldwell Speaks at Cybercrime 2020 Symposium
Washington, DCUnited States ~ Thursday, December 4, 2014
Good morning and welcome to the Criminal Division’s inaugural symposium on cybercrime. Before we start, I would like to thank Dean Treanor and the Georgetown Law Center for being such gracious partners in planning and holding this event.
I would also like to thank the moderators and panelists for traveling from across the country to contribute their expertise to today’s discussions. We have assembled an impressive array of experts from the private sector, academia, privacy groups, and all three branches of government, and I am looking forward to the diverse perspectives they will be sharing with us today.
A special welcome and thanks to Troels Orting, our keynote speaker, who has traveled the farthest to be with us today. Troels is the Director of Europol’s European Cybercrime Center or “EC3,” which is headquartered at the Hague in the Netherlands. In recent months, the Criminal Division, U.S. Attorneys’ Offices, federal investigators, and private companies have executed some of the most elaborate law enforcement operations ever attempted in the cybercrime arena. Troels and EC3 have been instrumental to the success of those operations.
You’ll hear more about that in a moment, but I wanted to make sure I expressed my personal appreciation to him and EC3. I believe that such robust cooperation within the international law enforcement community is the necessary future of cybercrime investigations. I anticipate that the Department of Justice and EC3 will be allies for years to come.
Today’s symposium is focused on the future of technology and online crime, so I expect that you will be hearing a lot about “change” and “evolution.” I want to briefly discuss the state of affairs today, and how I see cybercrime evolving over the coming years.
I also want to take this opportunity to talk about changes within the Criminal Division and our evolving efforts to deter, investigate, and prosecute cyber criminals and to protect the country’s computer networks from cyber threats in the first instance.
In that regard, I will highlight two ways in which we are addressing the growing threat:
First, we are mounting increasingly innovative and cooperative, international law enforcement operations to disrupt cyber criminal organizations across the globe;
Second, we are increasing our efforts to prevent cyber attacks by providing resources for our public and private partners to enhance cyber security across the board. In furtherance of this effort, we are creating a dedicated Cybersecurity Unit within the Criminal Division, which I will discuss more in a moment.
As I mentioned, I will start with a few words about the Internet and technology, how they are influencing the crimes we see today, and how we anticipate they will shape the crimes of tomorrow.
By now it has become obvious not only to those of us who gather at events like this but to the entire world: the Internet and related technologies have changed the way we work, play, and live. Everyone in this room is carrying a cell phone, tablet, or some other device that is connected to the Internet right now. The vast majority of Americans have made technology part of their everyday lives.
This boom in Internet-driven technology brings with it new opportunities for innovation, productivity, and entertainment. It is helping people connect locally and globally through email, social networking, and various other forms of communication. It is helping our businesses compete in expanding markets. It is giving us ready access to a seemingly endless stream of information, resources, and services unlike anything that preceded it. From big companies to tiny start-ups, innovation is taking place around the world at a dizzying pace.
Unfortunately, there is also a flip side to these advances. A tool that has become so vital to families, consumers, businesses, and governments was also bound to become a target for criminals. Not surprisingly, cyber criminals are taking advantage of the same advances in technology to perpetrate more complex and extensive crimes. Indeed, according to data from the 2013 Norton Report, there will be more than 14,000 additional victims of online crime by the time I have finished this speech.
For the foreseeable future, cybercrime will increase in both volume and sophistication. By exploiting technology, the most skilled cyber criminals will be capable of committing crimes on a scale that will result in more lost data, greater damage to the security of networks, and greater risk to Internet users. We are already getting glimpses of this new criminal tide.
Last year, two cyber intrusions targeting the banking system inflicted $45 million in losses on the global financial system in a matter of hours. Let me emphasize, that figure is not a speculative estimate or a projection. That is the sum total of money that the perpetrators withdrew from banks around the world by breaking into bank computers and removing limits on the amount of money they could withdraw from ATM machines. That crime dwarfed the biggest bank heists in U.S. history several times over, and the masterminds never had to worry about security guards, dye-packs, or silent alarms. In fact, they never had to leave home.
Our dependence on technology is also ushering in a new era of online breaches. Ever larger networks are processing more consumer data in an effort to make our purchases simpler and less time consuming. These networks transmit vast amounts of personal and financial data, and enterprising hackers are targeting them to produce data breaches that dwarf anything we’ve seen before. Individual breaches regularly put at risk the financial information of tens of millions of consumers. This threatens consumer confidence and has devastating consequences for companies who have fallen victim.
We have also witnessed the rise of another type of intrusion that causes harms less simple to quantify. Rather than stealing money or valuable financial data, these breaches have robbed people of their privacy. Some hackers have become virtual home invaders, using malware to tap into personal webcams located in homes around the world so they can spy on our most intimate moments. Other hackers have broken into online storage accounts and personal devices to snatch personal photos or communications for money or prurient thrills.
So, how is the Department responding to these new types of online threats and challenges? In the case of the $45 million dollar cyber heist I mentioned, we were able to promptly find, arrest and prosecute some of those responsible. Thus far, 13 defendants have been convicted for their participation in the scheme. The Criminal Division and U.S. Attorneys’ Offices are bringing the lessons of this successful prosecution and others to the investigations of recent breaches that have been in the news.
While arrests and prosecutions are our primary goal, we recognize that it is increasingly common for sophisticated cyber criminals to base themselves overseas in countries where they are not so easily reached. Consequently, we have adjusted our tactics in two significant ways. We are engaging in larger, international law enforcement operations to target criminals around the globe. And, we are acting up front to stop the harm that these cyber criminals are causing, even before we can get them into custody. A prime example of this has been our approach to “botnets.”
“Botnets” are networks of computers that have been secretly infected by malware and controlled by criminals. Some botnets are millions of computers strong. Once created, they can be used without a computer owner’s knowledge to engage in a variety of criminal activities, including siphoning off personal and financial data, conducting disruptive cyber attacks, and distributing malware to infect other computers.
One particularly destructive botnet—called Gameover Zeus—was used by criminals to steal millions of dollars from businesses and consumers and to extort additional millions of dollars in a “ransomware” scheme. Ransomware is malware that secretly encrypts your hard drive and then demands payments to restore access to your own files and data. Ransomware called “Cryptolocker” was distributed through the Gameover Zeus Botnet, which infected hundreds of thousands of computers, approximately half of which were located in the United States. It generated more than $27 million in ransom payments for its creators, including Russian hacker Evgeniy Bogachev, in just the first two months after it emerged.
But through carefully choreographed international law enforcement coordination, we not only identified and obtained a 14-count indictment against Bogachev, but also obtained injunctions and court orders to dismantle the network of computers he used to orchestrate his scheme. The Justice Department, U.S. law enforcement, numerous private sector partners, and foreign partners in more than 10 countries, as well as EC3, mounted court-authorized operations that allowed us to wrest control of the botnet away from the criminals, disable it, and start to repair the damage it caused.
This afternoon, you will hear from David Hickton, the U.S. Attorney for the Western District of Pennsylvania, whose office worked with CCIPS to spearhead this effort. This case serves as a model of both international cooperation and our ability to mitigate the damage caused by cyber criminals even before making an arrest.
In another international operation, just a few weeks ago, we targeted so-called “dark market” websites selling illegal goods and services online. These websites were operating on the “Tor” network, a special network of computers on the Internet designed to conceal the locations of individuals who use it. The websites we targeted traded in illegal narcotics; firearms; stolen credit card data; counterfeit currency; fake passports and other identification documents; and computer-hacking tools and services. Using court-authorized legal process and mutual legal assistance treaty requests, the Department, the FBI, and international partners from approximately 16 foreign nations working under the umbrella of EC3 seized over 400 Tor addresses associated with dozens of websites, as well as multiple computer servers hosting these websites.
Once again, international cooperation among the world’s law enforcement agencies was pivotal to the success of this global operation. And, once again, we were able to disrupt cybercrime in manners other than traditional arrest and prosecution.
In addition to undertaking these innovative international operations and takedowns, the Criminal Division is also re-orienting itself to better address the complex nature of cyber threats on multiple fronts.
High-tech crimes are not new to the Criminal Division. We have been investigating and prosecuting computer crimes since the Division created the Computer Crime and Intellectual Property Section, or “CCIPS,” in 1996. As I have already described, CCIPS prosecutors have led complex computer crimes investigations for years, and this work will continue.
Through CCIPS, the Criminal Division has also supported and expanded our U.S. Attorneys’ Offices’ expertise and capacity to tackle the most complex cybercrimes. CCIPS has worked over the last 12 years to build the Computer Hacking and Intellectual Property or “CHIP” Network with U.S. Attorneys’ Offices across the nation, which is now over 270 prosecutors strong. That network has fostered a close partnership between CCIPS and the U.S. Attorneys’ Offices in addressing the nation’s most sophisticated computer crimes. In addition, over the last two years, the CHIP Network was used as the model for the National Security Cyber Specialists’ network, a partnership among the National Security Division, the U.S. Attorneys’ Offices, and CCIPS that focuses on cyber threats to national security.
As the threats increase daily, however, I want to make sure that cyber security is receiving the dedicated attention it requires. It is important that we address cyber threats on multiple fronts, with both a robust enforcement strategy as well as a broad prevention strategy. I am, therefore, announcing today the creation of the Cybersecurity Unit within CCIPS. The Cybersecurity Unit will have responsibility on behalf of the Criminal Division for a variety of efforts we are undertaking to enhance public and private cyber security efforts.
Given the growing complexity and volume of cyber attacks, as well as the intricate rubric of laws and investigatory tools needed to thwart the attacks, the Cybersecurity Unit will play an important role in this field. Prosecutors from the Cybersecurity Unit will provide a central hub for expert advice and legal guidance regarding the criminal electronic surveillance statutes for both U.S. and international law enforcement conducting complex cyber investigations to ensure that the powerful law enforcement tools are effectively used to bring the perpetrators to justice while also protecting the privacy of every day Americans. The Cybersecurity Unit will work hand-in-hand with law enforcement and will also work with private sector partners and Congress. This new unit will strive to ensure that the advancing cyber security legislation is shaped to most effectively protect our nation’s computer networks and individual victims from cyber attacks.
As you know, the private sector has proved to be an increasingly important partner in our fight against all types of online crime, but particularly cyber security-related matters. Prosecutors from the Cybersecurity Unit will be engaging in extensive outreach to facilitate cooperative relationships with our private sector partners. This is a fight that the government cannot and will not wage alone.
As just one example of the kind of outreach we can do, earlier this year, we heard concerns expressed by communications service providers about uncertainty over whether the Electronic Communications Privacy Act prohibits sharing certain cyber threat information. This uncertainty limited the lawful sharing of information that could better protect networks from cyber threats. In response, we produced a white paper in May to address these concerns and publicly released our analysis of the issue. We will continue to engage in this open dialogue about emerging issues and to clear roadblocks like this one.
Finally, we will be engaging with the public at-large about cyber security issues. Over the past several years, but especially this past year, I have noticed a growing public distrust of law enforcement surveillance and high-tech investigative techniques. This kind of mistrust can hamper investigations and cyber security efforts. Most of this mistrust, however, comes from misconceptions about the technical abilities of the law enforcement tools and the manners in which they are used. I hope to engage the public directly on these issues and to allay concerns.
CCIPS already plays an important role in this regard, and I expect that to expand with the Cybersecurity Unit. CCIPS’s manuals on laws governing searching and seizing computers, electronic surveillance, and prosecuting computer crimes are probably the most comprehensive materials on those topics you will find anywhere. To ensure transparency and wide access to this helpful information, those manuals are publicly available on CCIPS’s website, cybercrime.gov.
I would like to start the public dialogue, however, by briefly addressing an overarching misconception: the apparent belief that privacy and civil liberties are afterthoughts to criminal investigators. In fact, almost every decision we make during an investigation requires us to weigh the effect on privacy and civil liberties, and we take that responsibility seriously. Privacy concerns are not just tacked onto our investigations, they are baked in. Privacy concerns are in the laws that set the ground rules for us to follow; the Departmental policies that govern our investigative and prosecutorial conduct; the accountability we must embrace when we present our evidence to a judge, a jury, and the public in an open courtroom; and in the proud culture of the Department.
We not only carefully consider privacy implications throughout our investigations, but we also dedicate significant resources to protecting the privacy of Americans from hackers who steal our financial and credit card information, online predators that stalk and exploit our children, and cyber thieves who steal the trade secrets of innovative American entrepreneurs. As just an example our efforts, we recently announced the conviction of a Danish citizen who marketed and sold StealthGenie, a spyware application or “app” that could remotely monitor calls, texts, videos and other communications on mobile phones without detection. This app was marketed to individuals who wanted to spy on spouses and lovers suspected of infidelity.
Additionally, earlier this year, the FBI and the U.S. Attorney for the Southern District of New York announced charges against the owner of “Blackshades,” which sold the Blackshades Remote Access Tool. EC3 again played a substantial role in this worldwide takedown, which resulted in the arrests of more than 90 people across the globe. The Blackshades tool was used by hackers to gain access to victims’ personal computers to secretly steal files and account information, browse personal photos, and even to monitor the victims through their own webcams. This software tool illustrates one of the scariest capabilities of hackers to date, as the Blackshades product or a similar tool was used by one hacker to secretly capture naked photos of teens and young women, including Miss Teen USA. The hacker then used the photos to extort his victims—with threats that he would post the photos on the Internet—into sending additional nude photos and videos.
These are just two examples of our work to investigate and prosecute criminals who invade the privacy of unsuspecting citizens. We hope that continuing to host symposiums like this one—and other outreach efforts—will help combat misconceptions about the Department’s efforts to protect the privacy of Americans. Outreach allows us to participate in the growing public debate about evolving technology. The open debate will benefit from the information that we can contribute about how technology is being used by criminals, how we are leveraging technology to investigate and disrupt criminal activity, and how technology can be leveraged in the public and private sectors to enhance cyber security. Without that information, misconceptions and inaccuracies can take root and hamper enforcement efforts as well as cyber security programs.
Georgetown and the Department designed today’s event to bring diverse viewpoints together. Our aim is to make sure that a range of perspectives are presented. Of course, there will be limits to what Department representatives can publicly discuss for a variety of reasons, including the potential of harming an ongoing investigation, the need to protect individuals who are the subjects of investigations, and statutory and Departmental restrictions on disclosure of certain information. Regardless, we are excited to add our voice to the debate and grateful to Georgetown and to all of you for supporting this event. We hope it will be the first of many.
Thank you.
Saturday, December 6, 2014
U.S. OFFICIAL'S REMARKS AT CONNECTING THE AMERICAS 2022 INVESTMENT SUMMIT
FROM: U.S. JUSTICE DEPARTMENT
Remarks at the Opening of the Connect 2022 Investment Summit
December 3, 2014
By Special Representative for Commercial and Business Affairs Scott Nathan
As Prepared
Good morning. Buenos dias.
It is a privilege to be here today with so many distinguished representatives from Mesoamerican nations, regional and development organizations, and leaders from the private sector.
I want to thank President Otto Perez Molina, Minister of Energy and Mines Erick Archila, and the Republic of Guatemala for hosting the first Connecting the Americas 2022 Investment Summit. I also thank the Inter-American Development Bank and the World Bank for their support and for bringing their expertise to help inform our discussions today.
The Western Hemisphere is on a clear trajectory of greater opportunity, greater democracy, and greater prosperity. We see the consolidation of democratic values and freer and more inclusive societies. We see some of the world’s biggest and fastest growing economies. We see a growing middle class that today is nearly 300 million strong. And we know the Americas is vital to global energy markets. The Hemisphere is endowed with a significant portion of the world’s oil, gas, and coal, and a rich and diverse array of renewable energy sources, from geothermal in El Salvador and Guatemala, to wind in Mexico and Nicaragua, to hydropower in Colombia and Panama, and biomass in Honduras and Costa Rica. The Americas is a model of energy cooperation and of high renewables penetration.
Today we look to the future of our Hemisphere not with trepidation about looming conflicts and crises, but with confidence that together -- as equal partners -- we can achieve sustainable economic growth and development.
Last year the United States launched one of the most active periods of American engagement with our Hemispheric partners in a very long time, with trips to the region by President Obama, Vice-President Biden, and Secretary Kerry, as well as visits to the White House this year by the Presidents of El Salvador, Guatemala, and Honduras.
Next week our Vice President and the IDB will convene high-level officials from regional governments, the private sector, the international community, and non-governmental organizations to discuss how to address the complex issues that impact Central America’s security and prosperity.
This engagement demonstrates a conscious effort by the Obama Administration to define a shared vision for the future of our Hemisphere and outline a practical and concrete agenda for action. Today we gather here in Guatemala City to advance an important piece of that agenda – our need to transition to a more reliable, affordable, interconnected, commercially viable, and sustainable electricity network.
The Challenges
We will not reach our full potential as a region – not in economic competitiveness, not in job creation, not in education, and not in healthcare – if tens of millions of people in our hemisphere are off the grid and hundreds of millions more are limited to unreliable and expensive electricity.
The scope of the challenge is clear.
First, thanks to booming economies and a growing middle class, energy demand in our region is skyrocketing. Studies suggest that Central American countries will need to double its energy supply in the next 10 years to keep up with demand – an endeavor that will require $25 billion in power sector investment by 2030. We know public finance alone cannot close the energy investment gap, particularly as it needs resources to improve citizen security.
Second, increased demand is driving up the cost of energy. Central America pays very high prices for electricity – ranging from two to five times what we pay in the United States. Expensive electricity hurts competitiveness, undermines investment, slows job growth, and ultimately undercuts the welfare and security of households.
Third, climate change is putting us all at risk. In those countries where clean hydroelectric power has met most needs, climate change is affecting patterns and levels of water availability. Droughts and flood are driving those nations to diversify energy sources, including renewable sources of power. In other countries, continued reliance on conventional, imported heavy oil and diesel, is releasing toxins into communities and greenhouse gases into the atmosphere. Climate change also puts the region’s biodiversity at risk – and Central America is the source of 40 percent of global biodiversity.
No country can confront the energy and climate challenge on its own. It is not viable from a technical perspective, it is not viable from a business perspective, and it is not viable from a political perspective.
The Response
This is why the United States supported Colombia’s launch of the Connecting the Americas 2022 initiative at the Sixth Summit of the Americas. The goal of this initiative is clear: universal access to reliable, clean, and affordable electricity in one decade, so that families and businesses have the energy they need at a price they can afford.
To achieve this goal, we all pledged to work together to create a modern, commercially viable electricity network in the Western Hemisphere that attracts private investment and transforms power markets to incorporate cleaner, renewable, and more efficient sources of energy. Underlying this commitment is a profound vision of how we bring prosperity to this hemisphere. The leaders of the Western Hemisphere did not endorse Connect 2022 out of a commitment to energy, but rather because they recognize that energy means jobs, education, and health care for their citizens.
This same vision has to inform our continuing political determination to achieve Connect 2022 goals. There will be times when prospects for low-cost and clean energy come up against legacy investments that are dirty and expensive. The right choices for society may be clear. But that is not always how powerful interests function. And that is why the leadership of policymakers, informed by sound technical analysis, is so very important as we make choices for posterity.
This Mesoamerican region has made important progress over the past two years. My government sees this region as the leader on Connect 2022, and we encourage you to celebrate your success when leaders meet at the 2015 Summit of the Americas in Panama.
Permanent regional market rules have been in place since June 2013. These rules are essential for creating a business and legal climate that encourages investors to take capital and development risks. You need look no further than regional electricity trade statistics to see how setting clear rules can unleash powerful growth. The volume of electricity trade over the past twelve months, at 1,316 gigawatt-hours, is more than triple what it was in the twelve months ending in June 2013.
Just over a month ago, the Electrical Interconnection System of Central America, or SIEPAC completed its regional transmission line, connecting 37 million consumers in, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Power grids are now connected from Canada to Panama.
And each government has shown a commitment to diversification with cleaner sources of electricity. From Mexico’s historic energy reform, to Nicaragua’s impressive and diverse renewables portfolio, Guatemala’s utility scale solar project and potential gas resources, to wind energy in Honduras and Costa Rica, which the U.S. Export-Import Bank helped finance, Mesoamerican energy transformation and integration is well underway.
We must build on this momentum by addressing several important challenges.
The first is, by far, the most straightforward: ensure that the physical infrastructure of the SIEPAC line is strong and resilient, that the company operating the line has the resources it needs to maintain and expand the line, and that the Regional Electricity Market develops robust interconnections with Mexico to the north and Colombia to the south. Ensure that there is non-discriminatory access to national transmission systems in order to take full advantage of power systems. As in any business, you must have a product to sell. The new Central American line is there but it is not sufficient to support the volume of trade required to meet the region’s full power needs. The market is growing. Let’s work together to achieve its potential.
The second challenge is contractual. If you are going to make a 20-year investment in power generation, then you need to know that you have access to the power line for 20 years to amortize your investment. If you need bank financing, banks need to understand the contracts. The more that contracts are built around a common model, the more competition you’ll get from financial institutions and the lower the cost. Long term financing that reduces the cost of capital will enable leaders to meet their growing electricity demand without necessarily increasing electricity prices. Interest rates reflect risk, but development banks have instruments to mitigate risk. And of course in any business that cuts across national lines, you need mechanisms to resolve disputes. These are issues we know how to solve. And that is why we are gathered here today.
The third challenge is financial. We need to leverage private capital to support the Connect 2022 initiative. Governments have their role in creating business opportunities. But the $25 billion we need in the region is not going to come from the collective Treasuries of the countries in this region. And it does not need to if we create conditions that allow businesses to make a return on capital.
This is an area where the United States can help. The Export-Import Bank and the Overseas Private Investment Corporation are able to provide excellent terms for projects that include an element of U.S. industry. Our development, energy, commerce, and trade agencies all stand ready to assist and support your efforts however and wherever we can.
Demand is real. Just last year EXIM finalized direct loans of $220 million for wind power projects in Central America. OPIC has committed $1.2 billion in support for renewable energy projects worldwide, 53 percent of which were in Latin America. Central America’s share, while small today has enormous potential. If we open the doors with the right enabling policy environment and financial conditions, private capital is ready to come in.
The IDB, World Bank and IFC, and other finance partners are equally committed to help finance these investments.
Conclusion
Now is the time for definitive action – to clear the outstanding technical, contractual, and financial hurdles…to finalize the legal, regulatory, operational, and market conditions required for greater investment… and to diversify our energy supplies.
We have the knowledge and the means to do all of these things. All we need is political will, leadership, and courage. Political will to focus our governments on this effort in the midst of competing and often urgent priorities. Leadership to change the way our governments and industries do business. And courage to innovate, take risks, and transcend our differences for the common good.
Let’s challenge ourselves to have a productive and successful day of discussions.
Thank you very much.
Remarks at the Opening of the Connect 2022 Investment Summit
December 3, 2014
By Special Representative for Commercial and Business Affairs Scott Nathan
As Prepared
Good morning. Buenos dias.
It is a privilege to be here today with so many distinguished representatives from Mesoamerican nations, regional and development organizations, and leaders from the private sector.
I want to thank President Otto Perez Molina, Minister of Energy and Mines Erick Archila, and the Republic of Guatemala for hosting the first Connecting the Americas 2022 Investment Summit. I also thank the Inter-American Development Bank and the World Bank for their support and for bringing their expertise to help inform our discussions today.
The Western Hemisphere is on a clear trajectory of greater opportunity, greater democracy, and greater prosperity. We see the consolidation of democratic values and freer and more inclusive societies. We see some of the world’s biggest and fastest growing economies. We see a growing middle class that today is nearly 300 million strong. And we know the Americas is vital to global energy markets. The Hemisphere is endowed with a significant portion of the world’s oil, gas, and coal, and a rich and diverse array of renewable energy sources, from geothermal in El Salvador and Guatemala, to wind in Mexico and Nicaragua, to hydropower in Colombia and Panama, and biomass in Honduras and Costa Rica. The Americas is a model of energy cooperation and of high renewables penetration.
Today we look to the future of our Hemisphere not with trepidation about looming conflicts and crises, but with confidence that together -- as equal partners -- we can achieve sustainable economic growth and development.
Last year the United States launched one of the most active periods of American engagement with our Hemispheric partners in a very long time, with trips to the region by President Obama, Vice-President Biden, and Secretary Kerry, as well as visits to the White House this year by the Presidents of El Salvador, Guatemala, and Honduras.
Next week our Vice President and the IDB will convene high-level officials from regional governments, the private sector, the international community, and non-governmental organizations to discuss how to address the complex issues that impact Central America’s security and prosperity.
This engagement demonstrates a conscious effort by the Obama Administration to define a shared vision for the future of our Hemisphere and outline a practical and concrete agenda for action. Today we gather here in Guatemala City to advance an important piece of that agenda – our need to transition to a more reliable, affordable, interconnected, commercially viable, and sustainable electricity network.
The Challenges
We will not reach our full potential as a region – not in economic competitiveness, not in job creation, not in education, and not in healthcare – if tens of millions of people in our hemisphere are off the grid and hundreds of millions more are limited to unreliable and expensive electricity.
The scope of the challenge is clear.
First, thanks to booming economies and a growing middle class, energy demand in our region is skyrocketing. Studies suggest that Central American countries will need to double its energy supply in the next 10 years to keep up with demand – an endeavor that will require $25 billion in power sector investment by 2030. We know public finance alone cannot close the energy investment gap, particularly as it needs resources to improve citizen security.
Second, increased demand is driving up the cost of energy. Central America pays very high prices for electricity – ranging from two to five times what we pay in the United States. Expensive electricity hurts competitiveness, undermines investment, slows job growth, and ultimately undercuts the welfare and security of households.
Third, climate change is putting us all at risk. In those countries where clean hydroelectric power has met most needs, climate change is affecting patterns and levels of water availability. Droughts and flood are driving those nations to diversify energy sources, including renewable sources of power. In other countries, continued reliance on conventional, imported heavy oil and diesel, is releasing toxins into communities and greenhouse gases into the atmosphere. Climate change also puts the region’s biodiversity at risk – and Central America is the source of 40 percent of global biodiversity.
No country can confront the energy and climate challenge on its own. It is not viable from a technical perspective, it is not viable from a business perspective, and it is not viable from a political perspective.
The Response
This is why the United States supported Colombia’s launch of the Connecting the Americas 2022 initiative at the Sixth Summit of the Americas. The goal of this initiative is clear: universal access to reliable, clean, and affordable electricity in one decade, so that families and businesses have the energy they need at a price they can afford.
To achieve this goal, we all pledged to work together to create a modern, commercially viable electricity network in the Western Hemisphere that attracts private investment and transforms power markets to incorporate cleaner, renewable, and more efficient sources of energy. Underlying this commitment is a profound vision of how we bring prosperity to this hemisphere. The leaders of the Western Hemisphere did not endorse Connect 2022 out of a commitment to energy, but rather because they recognize that energy means jobs, education, and health care for their citizens.
This same vision has to inform our continuing political determination to achieve Connect 2022 goals. There will be times when prospects for low-cost and clean energy come up against legacy investments that are dirty and expensive. The right choices for society may be clear. But that is not always how powerful interests function. And that is why the leadership of policymakers, informed by sound technical analysis, is so very important as we make choices for posterity.
This Mesoamerican region has made important progress over the past two years. My government sees this region as the leader on Connect 2022, and we encourage you to celebrate your success when leaders meet at the 2015 Summit of the Americas in Panama.
Permanent regional market rules have been in place since June 2013. These rules are essential for creating a business and legal climate that encourages investors to take capital and development risks. You need look no further than regional electricity trade statistics to see how setting clear rules can unleash powerful growth. The volume of electricity trade over the past twelve months, at 1,316 gigawatt-hours, is more than triple what it was in the twelve months ending in June 2013.
Just over a month ago, the Electrical Interconnection System of Central America, or SIEPAC completed its regional transmission line, connecting 37 million consumers in, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. Power grids are now connected from Canada to Panama.
And each government has shown a commitment to diversification with cleaner sources of electricity. From Mexico’s historic energy reform, to Nicaragua’s impressive and diverse renewables portfolio, Guatemala’s utility scale solar project and potential gas resources, to wind energy in Honduras and Costa Rica, which the U.S. Export-Import Bank helped finance, Mesoamerican energy transformation and integration is well underway.
We must build on this momentum by addressing several important challenges.
The first is, by far, the most straightforward: ensure that the physical infrastructure of the SIEPAC line is strong and resilient, that the company operating the line has the resources it needs to maintain and expand the line, and that the Regional Electricity Market develops robust interconnections with Mexico to the north and Colombia to the south. Ensure that there is non-discriminatory access to national transmission systems in order to take full advantage of power systems. As in any business, you must have a product to sell. The new Central American line is there but it is not sufficient to support the volume of trade required to meet the region’s full power needs. The market is growing. Let’s work together to achieve its potential.
The second challenge is contractual. If you are going to make a 20-year investment in power generation, then you need to know that you have access to the power line for 20 years to amortize your investment. If you need bank financing, banks need to understand the contracts. The more that contracts are built around a common model, the more competition you’ll get from financial institutions and the lower the cost. Long term financing that reduces the cost of capital will enable leaders to meet their growing electricity demand without necessarily increasing electricity prices. Interest rates reflect risk, but development banks have instruments to mitigate risk. And of course in any business that cuts across national lines, you need mechanisms to resolve disputes. These are issues we know how to solve. And that is why we are gathered here today.
The third challenge is financial. We need to leverage private capital to support the Connect 2022 initiative. Governments have their role in creating business opportunities. But the $25 billion we need in the region is not going to come from the collective Treasuries of the countries in this region. And it does not need to if we create conditions that allow businesses to make a return on capital.
This is an area where the United States can help. The Export-Import Bank and the Overseas Private Investment Corporation are able to provide excellent terms for projects that include an element of U.S. industry. Our development, energy, commerce, and trade agencies all stand ready to assist and support your efforts however and wherever we can.
Demand is real. Just last year EXIM finalized direct loans of $220 million for wind power projects in Central America. OPIC has committed $1.2 billion in support for renewable energy projects worldwide, 53 percent of which were in Latin America. Central America’s share, while small today has enormous potential. If we open the doors with the right enabling policy environment and financial conditions, private capital is ready to come in.
The IDB, World Bank and IFC, and other finance partners are equally committed to help finance these investments.
Conclusion
Now is the time for definitive action – to clear the outstanding technical, contractual, and financial hurdles…to finalize the legal, regulatory, operational, and market conditions required for greater investment… and to diversify our energy supplies.
We have the knowledge and the means to do all of these things. All we need is political will, leadership, and courage. Political will to focus our governments on this effort in the midst of competing and often urgent priorities. Leadership to change the way our governments and industries do business. And courage to innovate, take risks, and transcend our differences for the common good.
Let’s challenge ourselves to have a productive and successful day of discussions.
Thank you very much.
Friday, December 5, 2014
U.S. CONGRATULATES PEOPLE OF FINLAND ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
On the Occasion of Finland's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
December 5, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Finland as you celebrate your Independence Day on December 6. The bond between our nations is strong and founded on our shared democratic principles and the lasting contributions of Americans of Finnish heritage.
Your “sisu” and vigorous entrepreneurial spirit are integral to your success and an inspiration to others. We look forward to continuing to deepen our commercial ties and the broad cultural and political bonds that exist between our nations. We are proud to work closely with you to advance energy security; global climate, health and education initiatives; and the Transatlantic Trade and Investment Partnership. Finland is a valued partner in advancing global peace and security, including in Africa and other regions.
As you celebrate this day, please know that the United States will always stand with you as a faithful friend and partner. I wish all Finnish people continued peace and prosperity in the coming year.
On the Occasion of Finland's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
December 5, 2014
On behalf of President Obama and the people of the United States, I congratulate the people of Finland as you celebrate your Independence Day on December 6. The bond between our nations is strong and founded on our shared democratic principles and the lasting contributions of Americans of Finnish heritage.
Your “sisu” and vigorous entrepreneurial spirit are integral to your success and an inspiration to others. We look forward to continuing to deepen our commercial ties and the broad cultural and political bonds that exist between our nations. We are proud to work closely with you to advance energy security; global climate, health and education initiatives; and the Transatlantic Trade and Investment Partnership. Finland is a valued partner in advancing global peace and security, including in Africa and other regions.
As you celebrate this day, please know that the United States will always stand with you as a faithful friend and partner. I wish all Finnish people continued peace and prosperity in the coming year.
TYPHOON HAGUPIT'S RAINS AND WINDS TO HIT PHILIPPINES ON SATURDAY DECEMBER 6. 2014
FROM: NASA
NASA Analyzes Super Typhoon Hagupit's Rains and Wind on Philippine Approach
Super Typhoon Hagupit is forecast to make landfall in the eastern Philippines bringing heavy rainfall, damaging winds and storm surge. NASA/JAXA's TRMM satellite and the RapidScat instrument provided rainfall and wind data, while NASA-NOAA's Suomi NPP satellite provided a visible image of the storm. In the Philippines, Hagupit is known locally as "Typhoon Ruby."
The Tropical Rainfall Measuring Mission or TRMM satellite caught a good view of Super Typhoon Hagupit on December 4, 2014 at 1721 UTC (12:21 p.m. EST) when its sustained winds were estimated at over 145 knots (166.8 mph). TRMM's Microwave Imager (TMI) showed that the heaviest rainfall was just southwest of a well-defined eye.
About three hours later the International Space Station-RapidScat instrument captured data on Hagupit's winds. The RapidScat image showed sustained winds of at least 30 meters per second (67 mph/108 kph) around the eye of the storm.
NASA-NOAA's Suomi NPP satellite flew over Super Typhoon Hagupit on Dec. 5 at 4:22 UTC (Dec. 4 at 11:22 p.m. EDT) and the Visible Infrared Imaging Radiometer Suite or VIIRS instrument aboard captured a visible image of the storm. The VIIRS image showed a symmetric ring of intense thunderstorms surrounding the 12-nautical-mile-wide eye.
VIIRS is a scanning radiometer that collects visible and infrared imagery and "radiometric" measurements. Basically it means that VIIRS data is used to measure cloud and aerosol properties, ocean color, sea and land surface temperature, ice motion and temperature, fires, and Earth's albedo (reflected light).
At 1500 UTC (10 a.m. EST) on Dec. 5, Super Typhoon Hagupit's maximum sustained winds were near 130 knots (149.6 mph/241 kph), down from 150 knots (172 mph/277.8 kph). Typhoon-force winds extend out 40 nautical miles (46 miles/74 km) from the center, while tropical-storm-force winds extend out to 120 miles (138 miles/222 km).
Hagupit was centered near 12.1 north longitude and 128.2 east latitude, about 465 nautical miles (535 miles/861 km) southeast of Manila, Philippines. Hagupit continued moving in a west-northwesterly direction. The storm is generating very rough and dangerous seas with wave heights to 45 feet (13.7 meter).
According to the Joint Typhoon Warning Center (JTWC) forecast, Super Typhoon Hagupit will "maintain intensity until it starts interacting with land near 24 hours (1500 UTC/10 a.m. EST on Dec. 6) then the system will begin rapidly weakening."
Many warnings are in effect throughout the Philippines. Public storm warning signal #2 is in effect in the following provinces: Visayas: Northern and eastern Samar, Samar, Biliran, Leyte, southern Leyte, northern Cebu and Cebu City, Bantayan Island and Camotes Island. In Luzon, signal #2 is in effect for: Albay, Sorsogon, Ticao Island and Masbate.
Public storm warning signal #1 is in effect in the Province of Visayas including: Capiz, Iloilo, Antique, Guimaras, Aklan, Negros Oriental & Occidental, rest of Cebu, Siquijor and Bohol. Signal #1 is also in effect in the Mindanao Province for Surigao del Sur, & Norte, Misamis Oriental, Agusan del Sur & Norte, Dinagat Island and Camiguin Island; and in the Province of Luzon, including: Catanduanes, Camarines Norte & Sur, Burias Island and Romblon.
On Dec. 5 at 10 a.m. EST (1500 UTC) the latest update from the Philippine Atmospheric, Geophysical and Astronomical Services Administration known as PAGASA called for expected landfall on Saturday evening (Dec. 6) or Sunday morning (Dec. 7) over the Eastern Samar – Northern Samar area and it will be associated with strong winds, storm surge (up to 4 meters) and heavy-intense rainfall.
PAGASA noted:
• "Estimated rainfall amount is from 7.5 – 20 mm per hour (heavy – intense) within the 600 km diameter of the typhoon.
• Ruby (Hagupit) and the Northeast Monsoon will bring rough to very rough sea conditions over the seaboards of Northern Luzon, eastern seaboard of Central and Southern Luzon, seaboards of Visayas and over northern and eastern seaboards of Mindanao. Fishermen and those using small seacraft are advised not to venture out over the said seaboards."
For more information and updates visit: www.pagasa.dost.gov.ph or http://meteopilipinas.gov.ph/map.php.
Hagupit is tracking generally westward along the southwestern edge of a subtropical ridge (elongated area) of high pressure which is located south of Japan. Over the next three days, Hagupit is forecast to track west to west-northwest under the influence of that area of high pressure.
Rob Gutro
NASA's Goddard Space Flight Center
NASA Analyzes Super Typhoon Hagupit's Rains and Wind on Philippine Approach
Super Typhoon Hagupit is forecast to make landfall in the eastern Philippines bringing heavy rainfall, damaging winds and storm surge. NASA/JAXA's TRMM satellite and the RapidScat instrument provided rainfall and wind data, while NASA-NOAA's Suomi NPP satellite provided a visible image of the storm. In the Philippines, Hagupit is known locally as "Typhoon Ruby."
The Tropical Rainfall Measuring Mission or TRMM satellite caught a good view of Super Typhoon Hagupit on December 4, 2014 at 1721 UTC (12:21 p.m. EST) when its sustained winds were estimated at over 145 knots (166.8 mph). TRMM's Microwave Imager (TMI) showed that the heaviest rainfall was just southwest of a well-defined eye.
About three hours later the International Space Station-RapidScat instrument captured data on Hagupit's winds. The RapidScat image showed sustained winds of at least 30 meters per second (67 mph/108 kph) around the eye of the storm.
NASA-NOAA's Suomi NPP satellite flew over Super Typhoon Hagupit on Dec. 5 at 4:22 UTC (Dec. 4 at 11:22 p.m. EDT) and the Visible Infrared Imaging Radiometer Suite or VIIRS instrument aboard captured a visible image of the storm. The VIIRS image showed a symmetric ring of intense thunderstorms surrounding the 12-nautical-mile-wide eye.
VIIRS is a scanning radiometer that collects visible and infrared imagery and "radiometric" measurements. Basically it means that VIIRS data is used to measure cloud and aerosol properties, ocean color, sea and land surface temperature, ice motion and temperature, fires, and Earth's albedo (reflected light).
At 1500 UTC (10 a.m. EST) on Dec. 5, Super Typhoon Hagupit's maximum sustained winds were near 130 knots (149.6 mph/241 kph), down from 150 knots (172 mph/277.8 kph). Typhoon-force winds extend out 40 nautical miles (46 miles/74 km) from the center, while tropical-storm-force winds extend out to 120 miles (138 miles/222 km).
Hagupit was centered near 12.1 north longitude and 128.2 east latitude, about 465 nautical miles (535 miles/861 km) southeast of Manila, Philippines. Hagupit continued moving in a west-northwesterly direction. The storm is generating very rough and dangerous seas with wave heights to 45 feet (13.7 meter).
According to the Joint Typhoon Warning Center (JTWC) forecast, Super Typhoon Hagupit will "maintain intensity until it starts interacting with land near 24 hours (1500 UTC/10 a.m. EST on Dec. 6) then the system will begin rapidly weakening."
Many warnings are in effect throughout the Philippines. Public storm warning signal #2 is in effect in the following provinces: Visayas: Northern and eastern Samar, Samar, Biliran, Leyte, southern Leyte, northern Cebu and Cebu City, Bantayan Island and Camotes Island. In Luzon, signal #2 is in effect for: Albay, Sorsogon, Ticao Island and Masbate.
Public storm warning signal #1 is in effect in the Province of Visayas including: Capiz, Iloilo, Antique, Guimaras, Aklan, Negros Oriental & Occidental, rest of Cebu, Siquijor and Bohol. Signal #1 is also in effect in the Mindanao Province for Surigao del Sur, & Norte, Misamis Oriental, Agusan del Sur & Norte, Dinagat Island and Camiguin Island; and in the Province of Luzon, including: Catanduanes, Camarines Norte & Sur, Burias Island and Romblon.
On Dec. 5 at 10 a.m. EST (1500 UTC) the latest update from the Philippine Atmospheric, Geophysical and Astronomical Services Administration known as PAGASA called for expected landfall on Saturday evening (Dec. 6) or Sunday morning (Dec. 7) over the Eastern Samar – Northern Samar area and it will be associated with strong winds, storm surge (up to 4 meters) and heavy-intense rainfall.
PAGASA noted:
• "Estimated rainfall amount is from 7.5 – 20 mm per hour (heavy – intense) within the 600 km diameter of the typhoon.
• Ruby (Hagupit) and the Northeast Monsoon will bring rough to very rough sea conditions over the seaboards of Northern Luzon, eastern seaboard of Central and Southern Luzon, seaboards of Visayas and over northern and eastern seaboards of Mindanao. Fishermen and those using small seacraft are advised not to venture out over the said seaboards."
For more information and updates visit: www.pagasa.dost.gov.ph or http://meteopilipinas.gov.ph/map.php.
Hagupit is tracking generally westward along the southwestern edge of a subtropical ridge (elongated area) of high pressure which is located south of Japan. Over the next three days, Hagupit is forecast to track west to west-northwest under the influence of that area of high pressure.
Rob Gutro
NASA's Goddard Space Flight Center
SECRETARY KERRY'S REMARKS AT LONDON CONFERENCE ON AFGHANISTAN
FROM: U.S. STATE DEPARTMENT
Remarks at the London Conference on Afghanistan
Remarks
John Kerry
Secretary of State
Lancaster House
London, United Kingdom
December 4, 2014
Thank you very much, all of you, for being here. And thank you for the privilege of being part of this very important conference. And I want to thank Prime Minister Cameron for hosting and, you, President Ghani for cohosting this effort. We saw each other in Brussels. You’ve been on a whirlwind tour, and I will tell everybody here that everywhere that he Chief Executive Abdullah are going they are impressing people. And I will tell you this is one person who is not surprised.
I had the privilege of spending quite a few hours in Kabul during the post-election period, prior to the creation of the unity government. And during that time, I saw two men, both of whom were convinced, and took steps to prove it, that Afghanistan was far more important than them personally. And we are here today at a very different kind of meeting than might’ve taken place because they were both willing to exhibit enormous leadership, statesmanship, and were prepared to put their own political interests, as manifested through many of their supporters, behind the interests of unity and of country. And I will tell you, I think that augurs enormously well for the future. That’s why I think we can come to this conference with considerable confidence.
At the Tokyo conference two years ago, we all agreed that we would meet this year here in London and take stock. And we are taking stock in a very different place than we might have been were it not for their choices. Since the time of Tokyo, Afghanistan has obviously made enormous progress. It’s just a transformation taking place, and you have to go there to see it and feel it, notwithstanding the difficulties of security, the difficulties of an insurgent force that still chooses to kill people randomly rather than offer a platform for progress and for the future. So Afghan forces have now assumed responsibility for security across the country, with the United States and our international allies shifting to a supporting role.
Politically, Afghans achieved something incredible. They achieved the first democratic transfer of power from one elected leader to another in their entire history. And they have continued to work to improve governance. They have committed not just to maintaining but to building on the progress that was made in the last decade, including continued advances in respect to the rights of women and girls. I was there last year and met with 10 women entrepreneurs, who were among the most remarkable women I’ve ever met, each of whom were taking extraordinary risks to be leaders, but they were making a remarkable difference. Their voices and their votes gave Afghans the clarity that they will not tolerate any backsliding, and nor should we. This is a country whose leaders and whose people are wisely focused on the future.
In Tokyo, Afghanistan and its partners pledged to go forward based on mutual accountability and sustainability. That framework remains the touchstone for gauging progress. President Ghani and CEO Abdullah have presented a reform agenda that commits to these principles, and they’ve begun backing up these words with action already. During their short time in office, they’ve taken steps to combat money laundering and corruption, improve the country’s fiscal situation, and foster better relations with their neighbors, including importantly – perhaps most importantly – Pakistan.
One specific area where the new Afghans’ Government’s engagement has made a meaningful impact is in expanding economic connectivity across the region. I welcome the agreement yesterday between Tajikistan, Kyrgyzstan, Afghanistan, and Pakistan on the CASA-1000 electricity transmission project. Advancing this project to completion would make real the idea of a regional energy market connecting South and Central Asia. This project is important because Afghanistan’s economic future depends on improved connectivity with regional and international markets. And to facilitate that broader goal, I am pleased to report that the United States and Afghanistan have agreed to improve private sector links between our countries by issuing visas that will be valid longer and will allow for multiple entries for eligible business travelers, students, exchange visitors, and tourists.
The United States has met the commitments that we made in Tokyo to support Afghanistan’s development, and we are convinced that this extraordinary commitment of U.S. support serves our long-term national security interests in Afghanistan, in the region, as well as assists Afghanistan to stand on its own two feet. And we are committed to ensuring that Afghanistan can never again be used as a safe haven from which terrorists can threaten the international community. We know that the most effective way to advance this objective is to support Afghanistan’s political unity and its security. Between 2012 and 2015, we will have provided more than 8 billion in civilian assistance, and the Administration will continue to request from Congress extraordinary levels of assistance through 2017 and gradually declining levels beyond that date, consistent with the terms of the Strategic Partnership Agreement signed by our two governments in 2012. And we will continue, clearly, to invest in Afghanistan’s growth and development.
Looking ahead, we will engage regularly and constructively with Afghan leaders both in government and civil society to assist where and when we can. And we are confident that the policies outlined today by President Ghani and CEO Abdullah will result in a more stable and prosperous Afghanistan. So this is really an extraordinary moment of transition. It’s a moment of transformation, and the possibilities are so enormous. It’s hard to think that those who want to go backwards have the ability to interrupt progress in the way that they do, but what is clear to me is the majority of the people of Afghanistan by vast proportions – 85, 90 percent – are supporting this president and supporting the current direction of Afghanistan. While recognizing this progress, we also need to be realistic and remain conscious that there are these threats. And we need to recognize the urgency, therefore, of continuing to back the Afghan people, which is what brings us here to London for this conference.
My friends, we have a government in Kabul that merits our confidence and our support. And never before has the prospect of a more fully independent and sustainable Afghanistan been more clear than it is at this moment as we assemble here in London. The Afghan people should be very proud of this progress. And as they continue to move forward, they can be confident of the support of the international community. The many countries represented here today have been and must continue to be generous in our financial commitment. We must all help the Afghan people to build the future that they deserve through sustained assistance, but also with the determination to respond to Afghan reforms with private investment, improved market access, and deeper economic engagement. A stable and a peaceful Afghanistan that is at peace with its neighbors is in the interests of all of us, and we all expect and hope for sure that the authorities in Kabul will make good on their promises.
One thing I have learned about this region is it’s a region of unbelievable guts and grit and determination. There’s no question in my mind that the pride of the people of Afghanistan, the people of Pakistan, the people of India could have a very different future facing them. This can be a powerhouse of an economic region, and with our help, with our ability to help this government to deliver the promises it has made, we can, I think, write a very different future for all of us for the long term. We have to be faithful to our commitments as our part of that bargain, and I’m confident that everybody here will do so, and together we will write a very different history for South Central Asia. Thank you. (Applause.)
Remarks at the London Conference on Afghanistan
Remarks
John Kerry
Secretary of State
Lancaster House
London, United Kingdom
December 4, 2014
Thank you very much, all of you, for being here. And thank you for the privilege of being part of this very important conference. And I want to thank Prime Minister Cameron for hosting and, you, President Ghani for cohosting this effort. We saw each other in Brussels. You’ve been on a whirlwind tour, and I will tell everybody here that everywhere that he Chief Executive Abdullah are going they are impressing people. And I will tell you this is one person who is not surprised.
I had the privilege of spending quite a few hours in Kabul during the post-election period, prior to the creation of the unity government. And during that time, I saw two men, both of whom were convinced, and took steps to prove it, that Afghanistan was far more important than them personally. And we are here today at a very different kind of meeting than might’ve taken place because they were both willing to exhibit enormous leadership, statesmanship, and were prepared to put their own political interests, as manifested through many of their supporters, behind the interests of unity and of country. And I will tell you, I think that augurs enormously well for the future. That’s why I think we can come to this conference with considerable confidence.
At the Tokyo conference two years ago, we all agreed that we would meet this year here in London and take stock. And we are taking stock in a very different place than we might have been were it not for their choices. Since the time of Tokyo, Afghanistan has obviously made enormous progress. It’s just a transformation taking place, and you have to go there to see it and feel it, notwithstanding the difficulties of security, the difficulties of an insurgent force that still chooses to kill people randomly rather than offer a platform for progress and for the future. So Afghan forces have now assumed responsibility for security across the country, with the United States and our international allies shifting to a supporting role.
Politically, Afghans achieved something incredible. They achieved the first democratic transfer of power from one elected leader to another in their entire history. And they have continued to work to improve governance. They have committed not just to maintaining but to building on the progress that was made in the last decade, including continued advances in respect to the rights of women and girls. I was there last year and met with 10 women entrepreneurs, who were among the most remarkable women I’ve ever met, each of whom were taking extraordinary risks to be leaders, but they were making a remarkable difference. Their voices and their votes gave Afghans the clarity that they will not tolerate any backsliding, and nor should we. This is a country whose leaders and whose people are wisely focused on the future.
In Tokyo, Afghanistan and its partners pledged to go forward based on mutual accountability and sustainability. That framework remains the touchstone for gauging progress. President Ghani and CEO Abdullah have presented a reform agenda that commits to these principles, and they’ve begun backing up these words with action already. During their short time in office, they’ve taken steps to combat money laundering and corruption, improve the country’s fiscal situation, and foster better relations with their neighbors, including importantly – perhaps most importantly – Pakistan.
One specific area where the new Afghans’ Government’s engagement has made a meaningful impact is in expanding economic connectivity across the region. I welcome the agreement yesterday between Tajikistan, Kyrgyzstan, Afghanistan, and Pakistan on the CASA-1000 electricity transmission project. Advancing this project to completion would make real the idea of a regional energy market connecting South and Central Asia. This project is important because Afghanistan’s economic future depends on improved connectivity with regional and international markets. And to facilitate that broader goal, I am pleased to report that the United States and Afghanistan have agreed to improve private sector links between our countries by issuing visas that will be valid longer and will allow for multiple entries for eligible business travelers, students, exchange visitors, and tourists.
The United States has met the commitments that we made in Tokyo to support Afghanistan’s development, and we are convinced that this extraordinary commitment of U.S. support serves our long-term national security interests in Afghanistan, in the region, as well as assists Afghanistan to stand on its own two feet. And we are committed to ensuring that Afghanistan can never again be used as a safe haven from which terrorists can threaten the international community. We know that the most effective way to advance this objective is to support Afghanistan’s political unity and its security. Between 2012 and 2015, we will have provided more than 8 billion in civilian assistance, and the Administration will continue to request from Congress extraordinary levels of assistance through 2017 and gradually declining levels beyond that date, consistent with the terms of the Strategic Partnership Agreement signed by our two governments in 2012. And we will continue, clearly, to invest in Afghanistan’s growth and development.
Looking ahead, we will engage regularly and constructively with Afghan leaders both in government and civil society to assist where and when we can. And we are confident that the policies outlined today by President Ghani and CEO Abdullah will result in a more stable and prosperous Afghanistan. So this is really an extraordinary moment of transition. It’s a moment of transformation, and the possibilities are so enormous. It’s hard to think that those who want to go backwards have the ability to interrupt progress in the way that they do, but what is clear to me is the majority of the people of Afghanistan by vast proportions – 85, 90 percent – are supporting this president and supporting the current direction of Afghanistan. While recognizing this progress, we also need to be realistic and remain conscious that there are these threats. And we need to recognize the urgency, therefore, of continuing to back the Afghan people, which is what brings us here to London for this conference.
My friends, we have a government in Kabul that merits our confidence and our support. And never before has the prospect of a more fully independent and sustainable Afghanistan been more clear than it is at this moment as we assemble here in London. The Afghan people should be very proud of this progress. And as they continue to move forward, they can be confident of the support of the international community. The many countries represented here today have been and must continue to be generous in our financial commitment. We must all help the Afghan people to build the future that they deserve through sustained assistance, but also with the determination to respond to Afghan reforms with private investment, improved market access, and deeper economic engagement. A stable and a peaceful Afghanistan that is at peace with its neighbors is in the interests of all of us, and we all expect and hope for sure that the authorities in Kabul will make good on their promises.
One thing I have learned about this region is it’s a region of unbelievable guts and grit and determination. There’s no question in my mind that the pride of the people of Afghanistan, the people of Pakistan, the people of India could have a very different future facing them. This can be a powerhouse of an economic region, and with our help, with our ability to help this government to deliver the promises it has made, we can, I think, write a very different future for all of us for the long term. We have to be faithful to our commitments as our part of that bargain, and I’m confident that everybody here will do so, and together we will write a very different history for South Central Asia. Thank you. (Applause.)
BILLION-DOLLAR INVESTMENT SCAMMER SENTENCED TO 10 YEARS IN PRISON
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
Paul Greenwood Sentenced to 10 Years in Federal Prison for Billion-Dollar Investment Scam
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Paul Greenwood of North Salem, New York, who operated a $1.3 billion investment scam where he and a co-Defendant misappropriated at least $554 million from commodity pool participants, was sentenced to 10 years in federal prison for charges related to his participation in the scam. Earlier, on July 28, 2010, Greenwood pled guilty to a six-count criminal indictment on the charges, including a commodities fraud charge in violation of the Commodity Exchange Act (CEA).
The criminal charges arose from Greenwood’s solicitation fraud and misappropriation of pool participant funds, as charged in a Complaint filed by the CFTC on February 25, 2009 (see CFTC Press Release 5621-09) and a companion Complaint filed by the Securities and Exchange Commission. According to findings in Consent Orders entered earlier in the CFTC case, from at least 1996 to 2009, Greenwood and a co-Defendant solicited more than $7.6 billion from institutional investors, including charitable and university foundations and pension and retirement plans through Westridge Capital Management, WG Trading Investors, LP, and other entities. The Defendants defrauded victims by falsely depicting that all pool participants’ funds would be employed in a single investment strategy that consisted of index arbitrage. However, pool participants’ funds were transferred to another entity from which Greenwood and the co-Defendant siphoned funds.
Of the approximately $554 million in pool participants’ funds misappropriated, over $130 million was used for Greenwood and the co-Defendant’s personal expenses, including purchasing rare books, horses, and Steiff teddy bears for as much as $80,000.
In a sentencing letter filed with the Court in the criminal proceeding, the U.S. Attorney’s Office for the Southern District of New York acknowledged that Greenwood had cooperated and had provided substantial assistance to the government and the court-appointed receiver in the CFTC and SEC cases. The receiver’s efforts to marshal assets to date have resulted in the recovery of over $900 million dollars, or close to 90 percent of investors’ claims.
Aitan Goelman, the CFTC’s Director of Enforcement, stated: “The sentence in this case should serve as a warning that those who willfully violate the CEA face the very real chance of a significant term of imprisonment. The CFTC will continue its vigilance in protecting commodities and derivatives investors from fraud and other forms of financial crime.”
The CFTC greatly appreciates the assistance of the National Futures Association, the office of the U.S. Attorney for the Southern District of New York, the Federal Bureau of Investigation, and the Securities and Exchange Commission.
The following CFTC Division of Enforcement staff members are responsible for this matter: Patricia Gomersall, Kyong Koh, JonMarc Buffa, Peter Haas, Joan Manley, and Paul Hayeck.
Paul Greenwood Sentenced to 10 Years in Federal Prison for Billion-Dollar Investment Scam
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Paul Greenwood of North Salem, New York, who operated a $1.3 billion investment scam where he and a co-Defendant misappropriated at least $554 million from commodity pool participants, was sentenced to 10 years in federal prison for charges related to his participation in the scam. Earlier, on July 28, 2010, Greenwood pled guilty to a six-count criminal indictment on the charges, including a commodities fraud charge in violation of the Commodity Exchange Act (CEA).
The criminal charges arose from Greenwood’s solicitation fraud and misappropriation of pool participant funds, as charged in a Complaint filed by the CFTC on February 25, 2009 (see CFTC Press Release 5621-09) and a companion Complaint filed by the Securities and Exchange Commission. According to findings in Consent Orders entered earlier in the CFTC case, from at least 1996 to 2009, Greenwood and a co-Defendant solicited more than $7.6 billion from institutional investors, including charitable and university foundations and pension and retirement plans through Westridge Capital Management, WG Trading Investors, LP, and other entities. The Defendants defrauded victims by falsely depicting that all pool participants’ funds would be employed in a single investment strategy that consisted of index arbitrage. However, pool participants’ funds were transferred to another entity from which Greenwood and the co-Defendant siphoned funds.
Of the approximately $554 million in pool participants’ funds misappropriated, over $130 million was used for Greenwood and the co-Defendant’s personal expenses, including purchasing rare books, horses, and Steiff teddy bears for as much as $80,000.
In a sentencing letter filed with the Court in the criminal proceeding, the U.S. Attorney’s Office for the Southern District of New York acknowledged that Greenwood had cooperated and had provided substantial assistance to the government and the court-appointed receiver in the CFTC and SEC cases. The receiver’s efforts to marshal assets to date have resulted in the recovery of over $900 million dollars, or close to 90 percent of investors’ claims.
Aitan Goelman, the CFTC’s Director of Enforcement, stated: “The sentence in this case should serve as a warning that those who willfully violate the CEA face the very real chance of a significant term of imprisonment. The CFTC will continue its vigilance in protecting commodities and derivatives investors from fraud and other forms of financial crime.”
The CFTC greatly appreciates the assistance of the National Futures Association, the office of the U.S. Attorney for the Southern District of New York, the Federal Bureau of Investigation, and the Securities and Exchange Commission.
The following CFTC Division of Enforcement staff members are responsible for this matter: Patricia Gomersall, Kyong Koh, JonMarc Buffa, Peter Haas, Joan Manley, and Paul Hayeck.
SECRETARY KERRY'S REMARKS AT OSCE
FROM: U.S. STATE DEPARTMENT
Remarks at OSCE Ministerial Plenary Session
Remarks
John Kerry
Secretary of State
Basel, Switzerland
December 4, 2014
Thank you, President Burkhalter, for hosting us, and thanks to you and your team for chairing the OSCE during a very turbulent year. Your excellencies, when this ministerial last convened, tens of thousands of Ukrainian citizens were on the Maidan. And they were not intimidated by police violence, the threat of further repression, or the freezing weather. They were warmed by a simple desire: to live in a country with an honest government. The people of Ukraine continue to persevere. Through – tested by external aggression, they are casting off the shackles of repression and opening a new and promising chapter in their nation’s history. Twice in the past year, they have chosen new leaders through genuine democratic elections, and President Poroshenko and Prime Minister Yatsenyuk have pledged to implement a robust agenda of reforms designed to make Ukraine more secure, just, inclusive, prosperous, and free.
As the people of Ukraine have fought for their country, the OSCE has played a pivotal role. The organization has proven to the world the value of collective security and human rights instruments that we have built there, and underlined how important it is that these tools be allowed to work. In Ukraine, the OSCE has deployed the Special Monitoring Mission and used the Vienna Document to send inspection teams. The High Commission on National Minorities and Representatives on Freedom of the Media have supported civil society, documented abuses, and defended the voiceless in Crimea and other parts of Ukraine. ODIHR and the Parliamentary Assembly organized the largest election observation effort in OSCE history, and the list goes on.
The international community is united in condemning the violence that has led to so much needless suffering in Ukraine, but the violence continues. Regrettably, Russia continues to supply new weapons and increase support for armed separatists. In doing so, it fails to meet its international and OSCE obligations and to live up to an agreement that it actually negotiated and signed. The result is damage to its credibility, and its own citizens wind up paying a steep economic and human price, including the price of hundreds of Russian soldiers who fight and die in a country where they had and have no right to be.
So let me emphasize: The United States and countries that support Ukraine’s sovereignty and rights do not seek confrontation. It is not our design or desire that we see a Russia isolated through its own actions. In fact, we are convinced that Moscow could rebuild trust and relationships if it simply helps to calm turbulent waters, if it takes steps now to implement the Minsk protocol in letter and spirit, end support for violence in eastern Ukraine, withdraw Russian weapons and fighters, use its influence on the separatists to release all hostages, guarantee safe and unfettered access for OSCE monitors, cooperate in securing and respecting the entire internationally-recognized Ukrainian-Russian border, and end the illegal occupation of Crimea. No one gains from this confrontation. The nations around this table have too much work to do, too many common challenges, from terrorism and nuclear proliferation to epidemic disease and climate change.
My friends, more broadly, the crisis that we have experienced in Europe this past year is not the fault of the international system. It stems from the unwillingness of individual actors to abide by the rules and the principles of that system. When rules are broken, they need to be enforced, not rewritten. Despite numerous violations of Helsinki this year, the timeless wisdom of the final act – that sustainable security can only be achieved when fundamental freedoms and human rights are protected – has been reaffirmed. To build a more secure OSCE area, we need to acknowledge the serious failure of some member states to live up to their responsibilities, and these failures affect us all. In too many of the countries gathered here, the space for independent civil society and media is shrinking, breeding abuses of power and corruption. Laws have been enacted that repress religious freedom and unfairly punish legitimate political dissent. We have seen a rising tide of intolerance across the OSCE region, including hate crimes targeting Roma, Jews, Muslims, the LGBT community, and others. This organization is at its best when it sheds light where there is darkness and when it stands up against repression and for human rights and fundamental freedoms, including internet freedom. It is at its best when it speaks out, when we speak out, when society and independent activists and journalists – wherever people’s rights are denied or in jeopardy.
In closing, I thank President Burkhalter once again for his stewardship, the people of Switzerland for their hospitality, and we look forward to working with Prime Minister Vucic and Foreign Minister Dacic during Serbia’s chairmanship next year. And you will be sure that you will have our support as we celebrate the 40th anniversary of the Helsinki Final Act. Thank you.
Remarks at OSCE Ministerial Plenary Session
Remarks
John Kerry
Secretary of State
Basel, Switzerland
December 4, 2014
Thank you, President Burkhalter, for hosting us, and thanks to you and your team for chairing the OSCE during a very turbulent year. Your excellencies, when this ministerial last convened, tens of thousands of Ukrainian citizens were on the Maidan. And they were not intimidated by police violence, the threat of further repression, or the freezing weather. They were warmed by a simple desire: to live in a country with an honest government. The people of Ukraine continue to persevere. Through – tested by external aggression, they are casting off the shackles of repression and opening a new and promising chapter in their nation’s history. Twice in the past year, they have chosen new leaders through genuine democratic elections, and President Poroshenko and Prime Minister Yatsenyuk have pledged to implement a robust agenda of reforms designed to make Ukraine more secure, just, inclusive, prosperous, and free.
As the people of Ukraine have fought for their country, the OSCE has played a pivotal role. The organization has proven to the world the value of collective security and human rights instruments that we have built there, and underlined how important it is that these tools be allowed to work. In Ukraine, the OSCE has deployed the Special Monitoring Mission and used the Vienna Document to send inspection teams. The High Commission on National Minorities and Representatives on Freedom of the Media have supported civil society, documented abuses, and defended the voiceless in Crimea and other parts of Ukraine. ODIHR and the Parliamentary Assembly organized the largest election observation effort in OSCE history, and the list goes on.
The international community is united in condemning the violence that has led to so much needless suffering in Ukraine, but the violence continues. Regrettably, Russia continues to supply new weapons and increase support for armed separatists. In doing so, it fails to meet its international and OSCE obligations and to live up to an agreement that it actually negotiated and signed. The result is damage to its credibility, and its own citizens wind up paying a steep economic and human price, including the price of hundreds of Russian soldiers who fight and die in a country where they had and have no right to be.
So let me emphasize: The United States and countries that support Ukraine’s sovereignty and rights do not seek confrontation. It is not our design or desire that we see a Russia isolated through its own actions. In fact, we are convinced that Moscow could rebuild trust and relationships if it simply helps to calm turbulent waters, if it takes steps now to implement the Minsk protocol in letter and spirit, end support for violence in eastern Ukraine, withdraw Russian weapons and fighters, use its influence on the separatists to release all hostages, guarantee safe and unfettered access for OSCE monitors, cooperate in securing and respecting the entire internationally-recognized Ukrainian-Russian border, and end the illegal occupation of Crimea. No one gains from this confrontation. The nations around this table have too much work to do, too many common challenges, from terrorism and nuclear proliferation to epidemic disease and climate change.
My friends, more broadly, the crisis that we have experienced in Europe this past year is not the fault of the international system. It stems from the unwillingness of individual actors to abide by the rules and the principles of that system. When rules are broken, they need to be enforced, not rewritten. Despite numerous violations of Helsinki this year, the timeless wisdom of the final act – that sustainable security can only be achieved when fundamental freedoms and human rights are protected – has been reaffirmed. To build a more secure OSCE area, we need to acknowledge the serious failure of some member states to live up to their responsibilities, and these failures affect us all. In too many of the countries gathered here, the space for independent civil society and media is shrinking, breeding abuses of power and corruption. Laws have been enacted that repress religious freedom and unfairly punish legitimate political dissent. We have seen a rising tide of intolerance across the OSCE region, including hate crimes targeting Roma, Jews, Muslims, the LGBT community, and others. This organization is at its best when it sheds light where there is darkness and when it stands up against repression and for human rights and fundamental freedoms, including internet freedom. It is at its best when it speaks out, when we speak out, when society and independent activists and journalists – wherever people’s rights are denied or in jeopardy.
In closing, I thank President Burkhalter once again for his stewardship, the people of Switzerland for their hospitality, and we look forward to working with Prime Minister Vucic and Foreign Minister Dacic during Serbia’s chairmanship next year. And you will be sure that you will have our support as we celebrate the 40th anniversary of the Helsinki Final Act. Thank you.
DOD REPORTS ON PREVENTING SKIN TRANSPLANT REJECTION USING STEM CELLS
FROM: U.S. DEFENSE DEPARTMENT
Research Team Finds Promising Way to Prevent Skin Transplant Rejection
Story Number: NNS141203-03Release Date: 12/3/2014 10:02:00 AM Email this story to a friend Print this story
By Doris Ryan, Naval Medical Research Center Public Affairs
SILVER SPRING, Md. (NNS) -- A team of Navy researchers and collaborators working at the Naval Medical Research Center may have found a way to stop skin tissue rejection and published their results in the latest issue of STEM CELL Translational Medicine.
The research team developed and tested a laboratory skin transplantation treatment strategy model that supports the indefinite survival of donor transplanted skin grafts without use of long-term immunosuppression drug therapy.
This novel approach entails the intravenous injection of a small number of donor bone marrow cells and human stem cells.
"We demonstrated in the laboratory that a single infusion of adipose-derived stromal cells (ASC), stem cells taken from human body fat in a minimally invasive procedure, from an unmatched donor combined with an extremely low dose of bone marrow cells resulted in stable long-term tolerance of the skin graft without rejection for 200 days after the initial graft," said Thomas Davis, Ph.D., lead author on the paper and a contractor from the Henry M. Jackson Foundation. Davis is working at the Naval Medical Research Center's Regenerative Medicine Department.
Researchers still have a lot of work to do. From these preliminary studies, the next step is to test this strategy in preclinical studies to determine safety and efficacy. With promising results, this research will provide important knowledge about new ways to prevent rejection of transplanted organs.
"As we move forward, we are cautiously optimistic, appreciating that the transition from a laboratory model to proof-of-principle preclinical studies is challenging and not straightforward. If successful, this technology has diverse therapeutic applications in clinical transplantation in both military and civilian settings," Davis said.
Capt. Eric A. Elster, professor and chairman at Norman M. Rich Department of Surgery, Uniformed Services University of the Health Sciences, helped lead the study.
"ASC constitutively produced high levels of anti-inflammatory immunoregulatory factors," Elster said. "While further work is needed to validate this approach in other laboratory models before clinical trials can begin, the ability to use ASC, which are non-donor specific and clinically feasible, to induce tolerance opens a new horizon in transplantation."
Traumatically injured warfighters often undergo complex tissue and limb reconstruction that includes procedures involving skin, muscle, bone, joint, cartilage and nerve. Preservation and reconstruction is critical to long-term rehabilitation related to daily activities such as walking, eating, bathing and dressing. Doctors are using reconstructive surgery to treat devastating combat wounds and burns and that includes tissue transplantation combined with long-term immune-suppression medications. Rejection of transplanted tissue from an unmatched donor can lead to critical complications.
Research Team Finds Promising Way to Prevent Skin Transplant Rejection
Story Number: NNS141203-03Release Date: 12/3/2014 10:02:00 AM Email this story to a friend Print this story
By Doris Ryan, Naval Medical Research Center Public Affairs
SILVER SPRING, Md. (NNS) -- A team of Navy researchers and collaborators working at the Naval Medical Research Center may have found a way to stop skin tissue rejection and published their results in the latest issue of STEM CELL Translational Medicine.
The research team developed and tested a laboratory skin transplantation treatment strategy model that supports the indefinite survival of donor transplanted skin grafts without use of long-term immunosuppression drug therapy.
This novel approach entails the intravenous injection of a small number of donor bone marrow cells and human stem cells.
"We demonstrated in the laboratory that a single infusion of adipose-derived stromal cells (ASC), stem cells taken from human body fat in a minimally invasive procedure, from an unmatched donor combined with an extremely low dose of bone marrow cells resulted in stable long-term tolerance of the skin graft without rejection for 200 days after the initial graft," said Thomas Davis, Ph.D., lead author on the paper and a contractor from the Henry M. Jackson Foundation. Davis is working at the Naval Medical Research Center's Regenerative Medicine Department.
Researchers still have a lot of work to do. From these preliminary studies, the next step is to test this strategy in preclinical studies to determine safety and efficacy. With promising results, this research will provide important knowledge about new ways to prevent rejection of transplanted organs.
"As we move forward, we are cautiously optimistic, appreciating that the transition from a laboratory model to proof-of-principle preclinical studies is challenging and not straightforward. If successful, this technology has diverse therapeutic applications in clinical transplantation in both military and civilian settings," Davis said.
Capt. Eric A. Elster, professor and chairman at Norman M. Rich Department of Surgery, Uniformed Services University of the Health Sciences, helped lead the study.
"ASC constitutively produced high levels of anti-inflammatory immunoregulatory factors," Elster said. "While further work is needed to validate this approach in other laboratory models before clinical trials can begin, the ability to use ASC, which are non-donor specific and clinically feasible, to induce tolerance opens a new horizon in transplantation."
Traumatically injured warfighters often undergo complex tissue and limb reconstruction that includes procedures involving skin, muscle, bone, joint, cartilage and nerve. Preservation and reconstruction is critical to long-term rehabilitation related to daily activities such as walking, eating, bathing and dressing. Doctors are using reconstructive surgery to treat devastating combat wounds and burns and that includes tissue transplantation combined with long-term immune-suppression medications. Rejection of transplanted tissue from an unmatched donor can lead to critical complications.
SECRETARY KERRY'S REMARKS AT COUNTER-ISIL MEETING
FROM: U.S. STATE DEPARTMENT
Remarks at the Counter-ISIL Meeting
Remarks
John Kerry
Secretary of State
Brussels, Belgium
December 3, 2014
Good morning, everybody. Thank you very, very much for being here. Can everybody hear?
Mr. Secretary-General, Mr. Prime Minister, Excellencies, welcome everybody. I just want to begin the meeting by stressing that despite the location, this is not a NATO event. And as you noticed, there are no signs or any evidence other than the location, which is purely a matter of logistics but nobody is meant to misinterpret.
This is the first ministerial-level meeting of the anti-ISIL coalition, and we’re very, very grateful for everybody finding the time to be here. Many have traveled some significant distance to be here. Frankly, this impressive turnout reflects a shared determination to degrade and defeat ISIL, or to use the Arab term, Daesh.
Two and a half months ago, this didn’t exist. This is the work of two and a half months, and it reflects an extraordinary rapid coalescing of effort. And frankly, it is important that everybody reflect on the fact that this is not cosmetic; this is a reflection of actions that have taken – have been taken by more than 62 countries and entities in order to respond to the challenge of Daesh.
I’m very pleased that we’re going to have a chance to hear from Iraqi Prime Minister al-Abadi, whose government and citizens are on the front lines of this battle. And we’re very grateful for the steps that he has taken. Just yesterday he announced a significant agreement on the oil revenues. As everybody knows who’s been involved with Iraq, for years now that has been a long-sought goal and it’s a very significant achievement among many. In addition, there have been significant visits in recent days. Abdullah bin Zayed, Foreign Minister of the Emirates, Prime Minister Davutoglu of Turkey, others have visited Iraq and begun to indicate a new moment in the relationship with Iraq and indeed within the region.
We’ll also hear from General Allen, our special envoy, who will update us on the five public lines of effort that we are engaged in. And we will hear from many of you and we want to hear from people. We don’t want this to be a speechifying session. We would really like to have a dialogue so that we can digest the best thoughts about ways to do things better, things that haven’t been done that should be, or things that could be done differently. We want to plan carefully for the months ahead. And we will hear, including from representatives from Kuwait, Bahrain, Morocco, who have sponsored key gatherings themselves on key issues like communications, money, foreign fighters. These gatherings are just one indication of the dynamic leadership role that the Arab states are playing in the work of this coalition. The Arab states are taking leadership, and this leadership is both necessary and appropriate given that the geographic center of gravity of our global effort is in the Middle East.
One outcome of this meeting will be a statement that encompasses our message that we are united in moving ahead on all fronts and that we will engage in this campaign for as long as it takes to prevail. And there’s a reason that we are confident that we will, and that is all of you around this table, the members of this coalition. Our countries differ in geography, history, background, culture, but we all recognize a common threat, and Daesh is a danger and a threat to the interests and the values of all of us.
In opposing these terrorists, our diversity is, in fact, a source of remarkable strength because it gives us the credibility and the breadth of reach to move against Daesh not only in Iraq and Syria, but to counter any support that might exist for it around the world. Our coalition has been together now for less than three months, as I mentioned, so we recognize the hard work that remains to be done.
Our commitment will be measured most likely in years, but our efforts are already having a significant impact. The roughly 1,000 coalition air missions that we have flown have reduced Daesh’s leadership and inflicted damage on its logistical and operational capabilities. In much of Iraq, Daesh’s earlier momentum has dissipated. With coalition support, Iraqi forces have regained ground at Mosul and Haditha dams. They have retaken territory in the vicinity of Tikrit and expanded the security perimeter around the Baiji oil refinery. In the north and west, Kurdish troops are battling bravely and Sunni tribal fighters are beginning to come on board.
We also continue to strike targets in Syria, where Daesh has seen its command facilities attacked, its oil infrastructure damaged, and its siege of Kobani blocked. It is much harder now than when we started for Daesh to assemble forces in strength, to travel in convoys, and to launch concerted attacks. No large Daesh unit can move forward aggressively without worrying about what will come down on it from the skies.
In coming weeks, the coalition’s train, advise, and assist missions for Iraqi Security Forces will expand. Air strikes will continue as necessary. Step by step, Iraqis are mobilizing to reclaim the land that they have lost, and as the prime minister will attest, to develop the kind of broadly representative government they must have in order to succeed.
We are therefore encouraged by the significant progress this government is making to implement its national program and to unite against Daesh. Just yesterday, the government reached a breakthrough agreement with the Kurdistan region on managing oil exports and revenue that I mentioned earlier. It also issued an order to release detainees being held without formal charges. These initiatives take strong leadership, as exhibited by Prime Minister Abadi, and they will help the work of our coalition.
Meanwhile, there are many ways to contribute to the work of this coalition. The United States is constantly looking for the means to enhance the effectiveness of our actions, and I am confident that each of the coalition members represented here is going to do the same. This matters because the rise of Daesh was rapid, but it, in fact, has left those terrorists very exposed. What was relatively easy for them last summer has become more difficult. Daesh casualties are going up by the day. Muslim leaders across the globe are speaking out against the killers who have sought to hijack a whole faith, and Daesh’s repellent nature is becoming more evident with every ugly execution and every former recruit’s admission of being duped into believing Daesh is something that it most clearly is not.
The leaders of Daesh recently asked their followers to unleash volcanic eruptions of hate in every country. Our own rallying cry is not so dramatic, but it is far more responsive to the needs of people everywhere, and especially in the Middle East where suffering and violence have gone on for far too long. Our coalition does not summon hate, but rather the courage to build a future that is based on shared interests, shared values, and a shared faith in one another. That contrast in goals marks the dividing line between barbarism and civilization, and it explains both why we dare not fail and why we will succeed.
Remarks at the Counter-ISIL Meeting
Remarks
John Kerry
Secretary of State
Brussels, Belgium
December 3, 2014
Good morning, everybody. Thank you very, very much for being here. Can everybody hear?
Mr. Secretary-General, Mr. Prime Minister, Excellencies, welcome everybody. I just want to begin the meeting by stressing that despite the location, this is not a NATO event. And as you noticed, there are no signs or any evidence other than the location, which is purely a matter of logistics but nobody is meant to misinterpret.
This is the first ministerial-level meeting of the anti-ISIL coalition, and we’re very, very grateful for everybody finding the time to be here. Many have traveled some significant distance to be here. Frankly, this impressive turnout reflects a shared determination to degrade and defeat ISIL, or to use the Arab term, Daesh.
Two and a half months ago, this didn’t exist. This is the work of two and a half months, and it reflects an extraordinary rapid coalescing of effort. And frankly, it is important that everybody reflect on the fact that this is not cosmetic; this is a reflection of actions that have taken – have been taken by more than 62 countries and entities in order to respond to the challenge of Daesh.
I’m very pleased that we’re going to have a chance to hear from Iraqi Prime Minister al-Abadi, whose government and citizens are on the front lines of this battle. And we’re very grateful for the steps that he has taken. Just yesterday he announced a significant agreement on the oil revenues. As everybody knows who’s been involved with Iraq, for years now that has been a long-sought goal and it’s a very significant achievement among many. In addition, there have been significant visits in recent days. Abdullah bin Zayed, Foreign Minister of the Emirates, Prime Minister Davutoglu of Turkey, others have visited Iraq and begun to indicate a new moment in the relationship with Iraq and indeed within the region.
We’ll also hear from General Allen, our special envoy, who will update us on the five public lines of effort that we are engaged in. And we will hear from many of you and we want to hear from people. We don’t want this to be a speechifying session. We would really like to have a dialogue so that we can digest the best thoughts about ways to do things better, things that haven’t been done that should be, or things that could be done differently. We want to plan carefully for the months ahead. And we will hear, including from representatives from Kuwait, Bahrain, Morocco, who have sponsored key gatherings themselves on key issues like communications, money, foreign fighters. These gatherings are just one indication of the dynamic leadership role that the Arab states are playing in the work of this coalition. The Arab states are taking leadership, and this leadership is both necessary and appropriate given that the geographic center of gravity of our global effort is in the Middle East.
One outcome of this meeting will be a statement that encompasses our message that we are united in moving ahead on all fronts and that we will engage in this campaign for as long as it takes to prevail. And there’s a reason that we are confident that we will, and that is all of you around this table, the members of this coalition. Our countries differ in geography, history, background, culture, but we all recognize a common threat, and Daesh is a danger and a threat to the interests and the values of all of us.
In opposing these terrorists, our diversity is, in fact, a source of remarkable strength because it gives us the credibility and the breadth of reach to move against Daesh not only in Iraq and Syria, but to counter any support that might exist for it around the world. Our coalition has been together now for less than three months, as I mentioned, so we recognize the hard work that remains to be done.
Our commitment will be measured most likely in years, but our efforts are already having a significant impact. The roughly 1,000 coalition air missions that we have flown have reduced Daesh’s leadership and inflicted damage on its logistical and operational capabilities. In much of Iraq, Daesh’s earlier momentum has dissipated. With coalition support, Iraqi forces have regained ground at Mosul and Haditha dams. They have retaken territory in the vicinity of Tikrit and expanded the security perimeter around the Baiji oil refinery. In the north and west, Kurdish troops are battling bravely and Sunni tribal fighters are beginning to come on board.
We also continue to strike targets in Syria, where Daesh has seen its command facilities attacked, its oil infrastructure damaged, and its siege of Kobani blocked. It is much harder now than when we started for Daesh to assemble forces in strength, to travel in convoys, and to launch concerted attacks. No large Daesh unit can move forward aggressively without worrying about what will come down on it from the skies.
In coming weeks, the coalition’s train, advise, and assist missions for Iraqi Security Forces will expand. Air strikes will continue as necessary. Step by step, Iraqis are mobilizing to reclaim the land that they have lost, and as the prime minister will attest, to develop the kind of broadly representative government they must have in order to succeed.
We are therefore encouraged by the significant progress this government is making to implement its national program and to unite against Daesh. Just yesterday, the government reached a breakthrough agreement with the Kurdistan region on managing oil exports and revenue that I mentioned earlier. It also issued an order to release detainees being held without formal charges. These initiatives take strong leadership, as exhibited by Prime Minister Abadi, and they will help the work of our coalition.
Meanwhile, there are many ways to contribute to the work of this coalition. The United States is constantly looking for the means to enhance the effectiveness of our actions, and I am confident that each of the coalition members represented here is going to do the same. This matters because the rise of Daesh was rapid, but it, in fact, has left those terrorists very exposed. What was relatively easy for them last summer has become more difficult. Daesh casualties are going up by the day. Muslim leaders across the globe are speaking out against the killers who have sought to hijack a whole faith, and Daesh’s repellent nature is becoming more evident with every ugly execution and every former recruit’s admission of being duped into believing Daesh is something that it most clearly is not.
The leaders of Daesh recently asked their followers to unleash volcanic eruptions of hate in every country. Our own rallying cry is not so dramatic, but it is far more responsive to the needs of people everywhere, and especially in the Middle East where suffering and violence have gone on for far too long. Our coalition does not summon hate, but rather the courage to build a future that is based on shared interests, shared values, and a shared faith in one another. That contrast in goals marks the dividing line between barbarism and civilization, and it explains both why we dare not fail and why we will succeed.
TECH AND NEW IDEAS SOUGHT BY DOD FOR RESEARCH DEVELOPMENT PLAN
FROM: U.S. DEFENSE DEPARTMENT
DoD Seeks Future Technology Via Development Plan
By Amaani Lyle
DoD News, Defense Media Activity
WASHINGTON, Dec. 3, 2014 – The Defense Department seeks technology and innovative ideas as part of its Long Range Research Development Plan within the Defense Innovation Initiative, a broad effort that examines future capabilities, dominance and strategy, a senior DoD official said Nov. 24.
The newly-released LRRDP Request for Information will provide a way for DoD technology scouts to collaborate with industry, academia, and the general public to explore topics and ideas to better identify the “art of the possible,” said Deputy Assistant Secretary of Defense for Systems Engineering Stephen P. Welby.
“We’re interested in getting the broadest set of folks, the brightest minds we can find, to come help us on this effort,” Welby said. “We’re hoping that by casting this wide net, we’ll be able to harness the creativity and innovation going on in the broader ecosystem and help us think about the future department in a new way.”
Domains of Interest
Specific military domains of interest, he said, include space, undersea technologies, affordable protective systems against precision-guided munitions threats, air dominance and strike capability possibilities, ecologically and biologically inspired ideas and human-computer interaction.
“We expect the topics and ideas that come back will inform our science and technology planning and we’re mining that whole space,” Welby said.
He described a “small, agile team” of bright government officials who’ve been charged to engage industry, academia, not-for-profits, small businesses and the general public to help the department explore future possibilities. Inputs will also be accepted from allies and international partners who may have unique perspectives or contributions to the effort.
Officials expect the seven-month study to yield results in time to brief the defense secretary by mid-2015 and influence future budget and offset technology decisions, Welby said.
DoD’s Future
“The key opportunity out of this whole effort is to start a discussion,” he said. “We’re asking questions about people, business practices, but particularly … about technology, what we need to drive the future of the department.”
Deputy Secretary of Defense Robert O. Work will oversee the program as part of the overall effort to explore how technology can be incorporated with future DoD strategy and capabilities.
Pentagon officials noted a justified urgency in reviewing the future systems and architectures to maintain dominance over competing investments around the globe.
“There is no better time to look at the long-range strategy we’re taking to invest in technologies that will make a difference,” Welby said.
Capability Breakthrough in the 1980s
During the 1980s, Welby said, DoD found itself facing the Soviets and recognized there was a better way to confront the issue rather than a “tank-versus-tank” military buildup.
“The big breakthrough in that time period was introduction of precision weapons … and technology that allowed us to replace quantity with very precise technology-driven capabilities,” Welby said.
That, he said, has been the key driver in the way the nation has conducted itself in the national security environment for more than 40 years.
“People have understood our playbook,” Welby said. “Adversaries are now building systems that look to blunt particular United States’ advantages and we’d like to revisit that.”
Efforts in 1973 included the original Long-Range Research and Development Plan, which ushered in nascent digital technologies, early iterations of global positioning systems and the beginnings of the future Internet.
Today, he said, DoD faces challenges posed by globalization and technologies driven by both the military and commercial sectors.
“We’re now asking broader questions like, ‘How does the United States maintain its … lead against the entire path of technology and innovation going on globally?’” Welby said.
Maintaining a compelling U.S. advantage in technology is critical, he said.
DoD’s long-range plan, Welby said, will focus on “near-peer competitors,” state actors and a broader scope of conventional deterrence, namely key technologies that will enable the protection of U.S. interests and freedom of movement, and deter future aggression into the 2025 timeframe.
DoD Seeks Future Technology Via Development Plan
By Amaani Lyle
DoD News, Defense Media Activity
WASHINGTON, Dec. 3, 2014 – The Defense Department seeks technology and innovative ideas as part of its Long Range Research Development Plan within the Defense Innovation Initiative, a broad effort that examines future capabilities, dominance and strategy, a senior DoD official said Nov. 24.
The newly-released LRRDP Request for Information will provide a way for DoD technology scouts to collaborate with industry, academia, and the general public to explore topics and ideas to better identify the “art of the possible,” said Deputy Assistant Secretary of Defense for Systems Engineering Stephen P. Welby.
“We’re interested in getting the broadest set of folks, the brightest minds we can find, to come help us on this effort,” Welby said. “We’re hoping that by casting this wide net, we’ll be able to harness the creativity and innovation going on in the broader ecosystem and help us think about the future department in a new way.”
Domains of Interest
Specific military domains of interest, he said, include space, undersea technologies, affordable protective systems against precision-guided munitions threats, air dominance and strike capability possibilities, ecologically and biologically inspired ideas and human-computer interaction.
“We expect the topics and ideas that come back will inform our science and technology planning and we’re mining that whole space,” Welby said.
He described a “small, agile team” of bright government officials who’ve been charged to engage industry, academia, not-for-profits, small businesses and the general public to help the department explore future possibilities. Inputs will also be accepted from allies and international partners who may have unique perspectives or contributions to the effort.
Officials expect the seven-month study to yield results in time to brief the defense secretary by mid-2015 and influence future budget and offset technology decisions, Welby said.
DoD’s Future
“The key opportunity out of this whole effort is to start a discussion,” he said. “We’re asking questions about people, business practices, but particularly … about technology, what we need to drive the future of the department.”
Deputy Secretary of Defense Robert O. Work will oversee the program as part of the overall effort to explore how technology can be incorporated with future DoD strategy and capabilities.
Pentagon officials noted a justified urgency in reviewing the future systems and architectures to maintain dominance over competing investments around the globe.
“There is no better time to look at the long-range strategy we’re taking to invest in technologies that will make a difference,” Welby said.
Capability Breakthrough in the 1980s
During the 1980s, Welby said, DoD found itself facing the Soviets and recognized there was a better way to confront the issue rather than a “tank-versus-tank” military buildup.
“The big breakthrough in that time period was introduction of precision weapons … and technology that allowed us to replace quantity with very precise technology-driven capabilities,” Welby said.
That, he said, has been the key driver in the way the nation has conducted itself in the national security environment for more than 40 years.
“People have understood our playbook,” Welby said. “Adversaries are now building systems that look to blunt particular United States’ advantages and we’d like to revisit that.”
Efforts in 1973 included the original Long-Range Research and Development Plan, which ushered in nascent digital technologies, early iterations of global positioning systems and the beginnings of the future Internet.
Today, he said, DoD faces challenges posed by globalization and technologies driven by both the military and commercial sectors.
“We’re now asking broader questions like, ‘How does the United States maintain its … lead against the entire path of technology and innovation going on globally?’” Welby said.
Maintaining a compelling U.S. advantage in technology is critical, he said.
DoD’s long-range plan, Welby said, will focus on “near-peer competitors,” state actors and a broader scope of conventional deterrence, namely key technologies that will enable the protection of U.S. interests and freedom of movement, and deter future aggression into the 2025 timeframe.
Thursday, December 4, 2014
U.S. REPRESENTATIVE MAKES REMARKS AT UN SECURITY COUNCIL MEETING ON UNMIK
FROM: U.S. STATE DEPARTMENT
U.S. Mission to the United Nations: Remarks at the UN Security Council Meeting Debate on UNMIK
12/04/2014 05:45 PM EST
Ambassador David Pressman
Alternate Representative to the UN for Special Political Affairs
New York, NY
December 4, 2014
AS DELIVERED
Thank you, Mr. President, and thank you Special Representative Zarif for your briefing. We welcome Prime Minister ThaÒ«i and Prime Minister VuÄiÄ to the Council and thank them for their statements.
Mr. President, the EU-facilitated Kosovo-Serbia Dialogue and implementation of the April 2013 agreement to normalize relations continue to be critical elements for building a strong, inclusive, and integrated democracy in Kosovo. We are eager to see high-level meetings resume and expeditious progress continue toward full implementation of the Brussels agreement, including the full functioning of all of Kosovo’s municipalities in accordance with Kosovo law.
In this regard, the United States welcomes recent progress by Kosovo political leaders to overcome the political impasse that has prevented the formation of a Kosovo government following the June elections. We call on Kosovo’s political party leaders to move lawfully and quickly to constitute the Assembly and form the government in a manner fully in line with Kosovo’s constitution, laws and rulings by its constitutional court. As the Secretary-General observed in his report, there are many pressing issues affecting the future of all people living in Kosovo, and there are opportunities to continue the historic process of normalization with Belgrade and reconcile with the past.
Sustaining momentum in the Belgrade-Pristina Dialogue and full implementation of all agreements reached to date remain integral to the welfare of the people of Kosovo, to both Kosovo and Serbia’s progress on their respective paths toward European integration, and to a stable, peaceful, and prosperous region. To this end, we will continue to back the intensive engagement of the EU and the EU High Representative in advancing the Dialogue.
While progress at the political level has paused while awaiting Kosovo government formation, progress does continue to be made on the technical level, including important agreements on integrated border management, freedom of movement, energy, and reciprocal recognition of vehicle insurance that will allow citizens of both countries to travel easily across the borders. We welcome the cooperation between the international and local authorities that helped facilitate visits by Serb pilgrims to Kosovo for religious holidays in November.
The United States condemns those that seek to oppose the work of building inclusive democracy in Kosovo by committing acts of violence or intimidation, or sowing tension, mistrust and fear between the communities. Threats against returnees and their property, the deplorable acts of vandalism at DeÄani monastery on October 11th and 12th, and the incendiary rhetoric that surrounded the suspension of the soccer match in Belgrade between Serbia and Albania are all grounds for concern. These incidents demonstrate the need to intensify outreach, redouble efforts to promote dialogue and understanding, and further strengthen security where it is needed.
KFOR and EULEX continue to exercise indispensable roles, in cooperation with Kosovo authorities, in ensuring security and strengthening the rule of law throughout the country. Their work has also been instrumental in ensuring an environment conducive to advancing the implementation of the dialogue agreements between Kosovo and Serbia. KFOR support for security and its presence as a third responder in Mitrovica following the Serbia-Albania soccer game help prevent tensions from escalating into violence. EULEX personnel remain essential in mentoring and training Kosovo’s judicial and police personnel and their work continues to facilitate the identification and repatriation of remains from previous conflicts as we witnessed in September and in October. Colleagues have raised recent allegations against certain EULEX officials. These allegations should be the subject of a full and transparent investigation. Nonetheless, inflammatory language directed against EULEX and the lack of full cooperation in certain law enforcement matters are unacceptable. We continue to support EULEX's important rule of law mission in Kosovo.
Finally, Mr. President, the United States notes and welcomes Kosovo’s growing involvement in the regional cooperation fora, and commends the October 10 decision of the Multinational Advisory Group of RACVIAC Centre for Security Cooperation in South East Europe inviting Kosovo’s full participation in the organization. Increased dialogue among the countries of the region is vital to addressing shared concerns, such as the threat of foreign terrorist fighters. We call upon the countries in the region to work together to ensure effective preventative and response mechanisms are in place to counter extremist individuals and violent extremist ideas. In connection with these efforts, the United States commends the work of Kosovo and Serbia law enforcement agencies in response to the threat of foreign terrorist fighters. These are important lines of effort of the counter-ISIL coalition, of which we thank both Kosovo and Serbia for being members.
Thank you very much.
U.S. Mission to the United Nations: Remarks at the UN Security Council Meeting Debate on UNMIK
12/04/2014 05:45 PM EST
Ambassador David Pressman
Alternate Representative to the UN for Special Political Affairs
New York, NY
December 4, 2014
AS DELIVERED
Thank you, Mr. President, and thank you Special Representative Zarif for your briefing. We welcome Prime Minister ThaÒ«i and Prime Minister VuÄiÄ to the Council and thank them for their statements.
Mr. President, the EU-facilitated Kosovo-Serbia Dialogue and implementation of the April 2013 agreement to normalize relations continue to be critical elements for building a strong, inclusive, and integrated democracy in Kosovo. We are eager to see high-level meetings resume and expeditious progress continue toward full implementation of the Brussels agreement, including the full functioning of all of Kosovo’s municipalities in accordance with Kosovo law.
In this regard, the United States welcomes recent progress by Kosovo political leaders to overcome the political impasse that has prevented the formation of a Kosovo government following the June elections. We call on Kosovo’s political party leaders to move lawfully and quickly to constitute the Assembly and form the government in a manner fully in line with Kosovo’s constitution, laws and rulings by its constitutional court. As the Secretary-General observed in his report, there are many pressing issues affecting the future of all people living in Kosovo, and there are opportunities to continue the historic process of normalization with Belgrade and reconcile with the past.
Sustaining momentum in the Belgrade-Pristina Dialogue and full implementation of all agreements reached to date remain integral to the welfare of the people of Kosovo, to both Kosovo and Serbia’s progress on their respective paths toward European integration, and to a stable, peaceful, and prosperous region. To this end, we will continue to back the intensive engagement of the EU and the EU High Representative in advancing the Dialogue.
While progress at the political level has paused while awaiting Kosovo government formation, progress does continue to be made on the technical level, including important agreements on integrated border management, freedom of movement, energy, and reciprocal recognition of vehicle insurance that will allow citizens of both countries to travel easily across the borders. We welcome the cooperation between the international and local authorities that helped facilitate visits by Serb pilgrims to Kosovo for religious holidays in November.
The United States condemns those that seek to oppose the work of building inclusive democracy in Kosovo by committing acts of violence or intimidation, or sowing tension, mistrust and fear between the communities. Threats against returnees and their property, the deplorable acts of vandalism at DeÄani monastery on October 11th and 12th, and the incendiary rhetoric that surrounded the suspension of the soccer match in Belgrade between Serbia and Albania are all grounds for concern. These incidents demonstrate the need to intensify outreach, redouble efforts to promote dialogue and understanding, and further strengthen security where it is needed.
KFOR and EULEX continue to exercise indispensable roles, in cooperation with Kosovo authorities, in ensuring security and strengthening the rule of law throughout the country. Their work has also been instrumental in ensuring an environment conducive to advancing the implementation of the dialogue agreements between Kosovo and Serbia. KFOR support for security and its presence as a third responder in Mitrovica following the Serbia-Albania soccer game help prevent tensions from escalating into violence. EULEX personnel remain essential in mentoring and training Kosovo’s judicial and police personnel and their work continues to facilitate the identification and repatriation of remains from previous conflicts as we witnessed in September and in October. Colleagues have raised recent allegations against certain EULEX officials. These allegations should be the subject of a full and transparent investigation. Nonetheless, inflammatory language directed against EULEX and the lack of full cooperation in certain law enforcement matters are unacceptable. We continue to support EULEX's important rule of law mission in Kosovo.
Finally, Mr. President, the United States notes and welcomes Kosovo’s growing involvement in the regional cooperation fora, and commends the October 10 decision of the Multinational Advisory Group of RACVIAC Centre for Security Cooperation in South East Europe inviting Kosovo’s full participation in the organization. Increased dialogue among the countries of the region is vital to addressing shared concerns, such as the threat of foreign terrorist fighters. We call upon the countries in the region to work together to ensure effective preventative and response mechanisms are in place to counter extremist individuals and violent extremist ideas. In connection with these efforts, the United States commends the work of Kosovo and Serbia law enforcement agencies in response to the threat of foreign terrorist fighters. These are important lines of effort of the counter-ISIL coalition, of which we thank both Kosovo and Serbia for being members.
Thank you very much.
FORMER EXECUTIVE PLEADS GUILTY IN KICKBACK SCHEME INVOLVING POWER CONTRACTS IN EGYPT
FROM: U.S. JUSTICE DEPARTMENT
Thursday, December 4, 2014
Former Bechtel Executive Pleads Guilty in Connection with a $5.2 Million Kickback Scheme
The former Principal Vice President of Bechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo) pleaded guilty today in connection with a $5.2 million kickback scheme intended to manipulate the competitive bidding process for state-run power contracts in Egypt.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement.
“Asem Elgawhary took more than $5 million in kickbacks from companies trying to manipulate a competitive bidding process in their favor,” said Assistant Attorney General Caldwell. “Foreign corruption is an international scourge, and we will pursue those who take bribes, whether they are government officials or high-ranking corporate executives, like Elgawhary. Every corruption conviction is a step towards rooting out and deterring this global problem.”
“Our economy is so global in this day and age that if we allowed corrupt practices overseas such as taking bribes in exchange for special consideration when comparing bids, it would seriously impact our international trade. What Mr. Elgawhary admitted to doing has a dramatic affect on U.S. companies being able to expand and grow their work forces overseas in a fair market place, which in the long run hurts our economy,” said Special Agent in Charge Vogt of the FBI in Maryland and Delaware. “He displayed his blatant disregard for our rule of law when he used a portion of the bribe payment to purchase a house for $1.6 million in cash. This should send a message to others like Mr. Elgawhary, that hiding behind a foreign government won’t protect you from prosecution.”
“Mr. Elgawhary allowed greed to compromise his business practices by taking kickbacks to provide unfair advantages to companies willing pay for power contracts,” stated Special Agent in Charge Kelly of IRS-CI’s Washington D.C. Field Office. “He compounded his criminal activities by failing to report any of the kickback payments as income on his tax returns. It is imperative that honest companies know IRS Criminal Investigation will investigate and bring to prosecution those willing to line their pockets through unethical business practices.”
Asem Elgawhary, 73, of Potomac, Maryland, pleaded guilty today before U.S. District Judge Deborah K. Chasanow of the District of Maryland to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. Sentencing is scheduled for Mar. 23, 2015.
In his plea agreement, Elgawhary admitted that, from 1996 to 2011, he was assigned by Bechtel – a U.S. corporation engaged in engineering, construction and project management – to be the general manager at PGESCo, a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company (EEHC). PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. According to court documents, the power companies and their consultants paid more than $5.2 million in kickback payments into various off-shore bank accounts under the control of Elgawhary, including various Swiss bank accounts.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors in Maryland, falsely certifying that he had no knowledge of any fraud or suspected fraud at PGESCo, and that there were no violations or possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary also admitted to conspiring to launder the proceeds of the scheme and to obstructing and impeding the administration of U.S. tax laws by falsely claiming that he maintained only one foreign bank account, denying that he received any income from a foreign bank account, and failing to report any of the kickback payments as income for the tax years 2008 through 2011.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
The case is being investigated by the FBI’s Baltimore Division and IRS-CI’s Washington D.C. Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland.
Thursday, December 4, 2014
Former Bechtel Executive Pleads Guilty in Connection with a $5.2 Million Kickback Scheme
The former Principal Vice President of Bechtel Corporation and General Manager of the Power Generation Engineering and Services Company (PGESCo) pleaded guilty today in connection with a $5.2 million kickback scheme intended to manipulate the competitive bidding process for state-run power contracts in Egypt.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement.
“Asem Elgawhary took more than $5 million in kickbacks from companies trying to manipulate a competitive bidding process in their favor,” said Assistant Attorney General Caldwell. “Foreign corruption is an international scourge, and we will pursue those who take bribes, whether they are government officials or high-ranking corporate executives, like Elgawhary. Every corruption conviction is a step towards rooting out and deterring this global problem.”
“Our economy is so global in this day and age that if we allowed corrupt practices overseas such as taking bribes in exchange for special consideration when comparing bids, it would seriously impact our international trade. What Mr. Elgawhary admitted to doing has a dramatic affect on U.S. companies being able to expand and grow their work forces overseas in a fair market place, which in the long run hurts our economy,” said Special Agent in Charge Vogt of the FBI in Maryland and Delaware. “He displayed his blatant disregard for our rule of law when he used a portion of the bribe payment to purchase a house for $1.6 million in cash. This should send a message to others like Mr. Elgawhary, that hiding behind a foreign government won’t protect you from prosecution.”
“Mr. Elgawhary allowed greed to compromise his business practices by taking kickbacks to provide unfair advantages to companies willing pay for power contracts,” stated Special Agent in Charge Kelly of IRS-CI’s Washington D.C. Field Office. “He compounded his criminal activities by failing to report any of the kickback payments as income on his tax returns. It is imperative that honest companies know IRS Criminal Investigation will investigate and bring to prosecution those willing to line their pockets through unethical business practices.”
Asem Elgawhary, 73, of Potomac, Maryland, pleaded guilty today before U.S. District Judge Deborah K. Chasanow of the District of Maryland to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. Sentencing is scheduled for Mar. 23, 2015.
In his plea agreement, Elgawhary admitted that, from 1996 to 2011, he was assigned by Bechtel – a U.S. corporation engaged in engineering, construction and project management – to be the general manager at PGESCo, a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company (EEHC). PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. According to court documents, the power companies and their consultants paid more than $5.2 million in kickback payments into various off-shore bank accounts under the control of Elgawhary, including various Swiss bank accounts.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors in Maryland, falsely certifying that he had no knowledge of any fraud or suspected fraud at PGESCo, and that there were no violations or possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary also admitted to conspiring to launder the proceeds of the scheme and to obstructing and impeding the administration of U.S. tax laws by falsely claiming that he maintained only one foreign bank account, denying that he received any income from a foreign bank account, and failing to report any of the kickback payments as income for the tax years 2008 through 2011.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
The case is being investigated by the FBI’s Baltimore Division and IRS-CI’s Washington D.C. Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. The case is being prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland.
"TYPHOON HAGUPIT CONTINUES TO INTENSITY"
Right: NASA's Terra satellite captured this visible image of Tropical Storm Hagupit in the western Pacific Ocean on Dec. 1 at 00:05 UTC (7:05 p.m. EST, Nov. 30). Image Credit: NASA Goddard MODIS Rapid Response
Typhoon Hagupit continues to intensify as it continued moving through Micronesia on Dec. 3 triggering warnings.
NASA's Aqua satellite passed overhead and captured an image of the strengthening storm while the Rapidscat instrument aboard the International Space Station provided information about the storm's winds.
The International Space Station-RapidScat instrument monitors ocean winds to provide essential measurements used in weather predictions, including hurricanes. "RapidScat measures wind speed and direction over the ocean surface and captured an image of Hagupit when it was a tropical storm on Dec 2 at 8:50 a.m. GMT," said Doug Tyler of NASA's Jet Propulsion Laboratory, Pasadena, California. "The growing storm, north of New Guinea and headed for the Philippines, already had 25 meters/second winds (50 knots/57.5 mph/92.6 kph)."
A typhoon and tropical storm warning are in effect in Micronesia, in addition to a typhoon watch as Hagupit marches through Micronesia on a west-northwesterly track. A typhoon warning is in effect for Yap and Ngulu in Yap state, and a typhoon watch and tropical storm warning is in effect for Kayangel in the Republic of Palau. In addition, a tropical storm warning is in effect for Koror in the Republic of Palau.
NASA's Aqua satellite captured a visible image of Typhoon Hagupit on Dec. 3 at 04:30 UTC (Dec. 2 at 11:30 p.m. EST) as it moved through Micronesia in the western Pacific Ocean. The image showed a concentration of strong thunderstorms around the center with bands of thunderstorms spiraling into it.
At 1500 UTC (10 a.m. EST) on Dec. 3, Typhoon Hagupit's maximum sustained winds had increased to 100 knots 115.1 mph/185.2 kph). Typhoon-strength winds extend 30 nautical miles (34.5 miles/55.5 km) out from the center, while tropical storm force winds extend up to 120 nautical miles (138 miles/222 km).
The typhoon was centered near 8.7 north longitude and 138.3 east latitude, just 91 nautical miles (104.7 miles/168.5 km) west-southwest of the island of Yap. The typhoon is kicking up very rough seas with wave heights to 34 feet (10.3 meters). It was moving to the west-northwest at 18 knots (20.7 mph/33.4 kph) and is expected to continue in that general direction.
Forecasters at the Joint Typhoon Warning Center (JTWC) expect that Hagupit will continue to move west-northwest through Micronesia while intensifying to a Category four typhoon on the Saffir-Simpson scale peaking at 130 knots (149.6 mph/240 kph) over the next two days before it starts to weaken. The JTWC forecast calls for the typhoon to turn to the northwest and stay to the east of the Philippines.
Image Credit: NASA Goddard MODIS Rapid Response
Dec. 02, 2014 - NASA Sees Typhoon Hagupit as Micronesia Posts Warnings
NASA's Aqua satellite captured a visible picture of Typhoon Hagupit in the western North Pacific Ocean on December 2, when several warnings were in effect for islands in Micronesia.
Micronesia warnings include a Typhoon Warning for Woleai, Yap and Ngulu in Yap state, a Typhoon Watch posted for Faraulep, Fais and Ulithi in Yap state, and a Tropical Storm Warning for Faraulep in Yap state.
When NASA's Aqua satellite passed over Hagupit on Dec. 2 at 03:45 UTC (Dec. 1 at 10:45 p.m. EST) the MODIS instrument took a visible picture of the storm that showed it had become much better organized over the previous day.
Powerful, high thunderstorms circled the center while bands of thunderstorms spiral in from the west, south and north.
At 1500 UTC (10 a.m. EST) on Dec. 2, Hagupit had become a Category One typhoon on the Saffir-Simpson wind scale with maximum sustained winds near 70 knots (80.5 mph/129.6 kph). Hagupit was centered near 6.2 north longitude and 142.7 east latitude, about 463 nautical miles (532.8 miles/857.5 km) south of Andersen Air Force Base, Guam. It was moving to the west at 17 knots (19.5 mph/31.8 kph) and generating high seas with waves up to 25 feet (7.6 meters).
Forecasters at the Joint Typhoon Warning Center forecast Hagupit to continue moving west-northwest through Micronesia and to intensify to 130 knots before weakening. The forecast track takes the center of Hagupit between Palau and Yap on Dec. 3 and toward the Philippines thereafter.
Weakening is not expected to begin until Dec. 6 so Hagupit is expected to maintain typhoon status through December 7.
Rob Gutro NASA's Goddard Space Flight Center
NASA PLANS MARS MISSION IN 2030'S
FROM: NASA
NASA is developing the capabilities needed to send humans to an asteroid by 2025 and Mars in the 2030s – goals outlined in the bipartisan NASA Authorization Act of 2010 and in the U.S. National Space Policy, also issued in 2010. Mars is a rich destination for scientific discovery and robotic and human exploration as we expand our presence into the solar system. Its formation and evolution are comparable to Earth, helping us learn more about our own planet’s history and future. Mars had conditions suitable for life in its past. Future exploration could uncover evidence of life, answering one of the fundamental mysteries of the cosmos: Does life exist beyond Earth? While robotic explorers have studied Mars for more than 40 years, NASA’s path for the human exploration of Mars begins in low-Earth orbit aboard the International Space Station. Astronauts on the orbiting laboratory are helping us prove many of the technologies and communications systems needed for human missions to deep space, including Mars. The space station also advances our understanding of how the body changes in space and how to protect astronaut health. Our next step is deep space, where NASA will send a robotic mission to capture and redirect an asteroid to orbit the moon. Astronauts aboard the Orion spacecraft will explore the asteroid in the 2020s, returning to Earth with samples. This experience in human spaceflight beyond low-Earth orbit will help NASA test new systems and capabilities, such as Solar Electric Propulsion, which we’ll need to send cargo as part of human missions to Mars. Beginning in FY 2018, NASA’s powerful Space Launch System rocket will enable these “proving ground” missions to test new capabilities. Human missions to Mars will rely on Orion and an evolved version of SLS that will be the most powerful launch vehicle ever flown. A fleet of robotic spacecraft and rovers already are on and around Mars, dramatically increasing our knowledge about the Red Planet and paving the way for future human explorers. The Mars Science Laboratory Curiosity rover measured radiation on the way to Mars and is sending back radiation data from the surface. This data will help us plan how to protect the astronauts who will explore Mars. Future missions like the Mars 2020 rover, seeking signs of past life, also will demonstrate new technologies that could help astronauts survive on Mars. Engineers and scientists around the country are working hard to develop the technologies astronauts will use to one day live and work on Mars, and safely return home from the next giant leap for humanity. NASA also is a leader in a Global Exploration Roadmap, working with international partners and the U.S. commercial space industry on a coordinated expansion of human presence into the solar system, with human missions to the surface of Mars as the driving goal. NASA's Orion Flight Test and the Journey to Mars Image Credit: NASA
REMARKS: SECRETARY KERRY, EU HIGH REPRESENTATIVE FEDERICA MOGHERINI
FROM: U.S. STATE DEPARTMENT
Remarks With EU High Representative Federica Mogherini Following Their Working Lunch
Remarks
John Kerry
Secretary of State
European External Action Service
Brussels, Belgium
December 3, 2014
HIGH REPRESENTATIVE MOGHERINI: John, thank you for your visit here. We had a first bilateral in my new capacity, and I’m particularly happy this takes place in Brussels, so thank you for visiting and thank you for having a bilateral meeting here. I’m looking forward to come and visit you in Washington if we find you in Washington sometime, which might be a challenge.
We’ve had a good discussion as always on all issues open on the agenda, which are many. And we are concentrating more on the area around Europe, Ukraine, although we have discussed the further measures that European Union has decided to take in the last weeks, and also the way forward to push for full implementation of the Minsk agreement.
And we discussed a lot also this morning in a very good session with other states, other nations, our situation in Syria and in Iraq, the fight against Daesh and the common effort against terrorists in the area, and to stabilize the region.
And we also had a discussion on the Middle East peace process, where we are looking forward to work together. All the work that John has done in the last months needs to be resumed, and the European Union is more than ready to support the continuation of this work. We know that your dedication personally we appreciate very much, and we are ready to support your efforts.
We also discussed Libya – extremely worrying situation where we also will cooperate.
And we will now unfortunately leave you soon without questions because we are starting a EU-U.S. Energy Council, which is also going to be important for our cooperation not only on the energy policies and security but also on climate. This is also something we owe you a lot. The link between energy and climate and all the efforts that foreign ministers and the foreign policy community can do on energy and climate in view of the Paris conference next year and the Lima conference that is taking place in these days. We know that U.S. leadership on that is something we owe you and your inspiration very much, and we appreciate very much your (inaudible). I think no other moment in history where on this particular issue the EU and U.S. have exactly the same position, and I think we should build on it.
Other point we talked and reviewed, TTIP. We are ready to work closely together and hard to make the negotiations proceed. It’s going to be a strategic goal, not only an economic one but also political, and so we are ready to work together for that.
John.
SECRETARY KERRY: Thank you, thank you. Well, let me say that for me it’s a great pleasure to be here and to meet bilaterally with the new EU High Representative, and I’m delighted to be working with Federica. We began to build a strong foreign minister-to-foreign minister relationship when she represented Italy, and now we have a chance to work with her as the EU High Rep taking on a much larger role representing all 28 countries that are part of the EU.
It is safe to say that the U.S.-EU transatlantic partnership is as important a relationship as there is. We work so closely on all of the issues of concern that we face today. Federica just ran through a list of them. But obviously, at the top of the list right now is the challenge of dealing with Ukraine and the question of upholding the sovereignty and territorial integrity of Ukraine. The EU has played a critical role in that. My original meetings in Geneva really were U.S., EU, Russia, and Ukraine, and now we have to try to see the Minsk agreement enforced and we have very, very strong energy-related, trade-related, security-related interests with respect to the outcome of that conflict.
We did have a very serious discussion this morning about Libya. We agree that Libya is at a particular moment of challenge for all of us, and we are very much seized by the issue and focused on it. We are supportive of Bernadino Leon’s initiative, but beyond that we are looking at other alternatives so that there’s not just one plan on the table. And I think we agreed today on a number of things that we can do and will do in order to try to minimize the violence, to end the violence, and find a constitutional process that will produce a government that has an ability to represent the people and can be sustainable.
In addition to that, we talked about ISIL/Daesh. Obviously, that was a large part of our conversation this morning in the session that we had, and we have significant interests there.
We also talked about the Mideast peace process, which may at this particular moment be a misnomer but nevertheless something that we are deeply committed to, and we will work on it. The United States believes that any solution that is ultimately going to be achieved, if there can be one, is going to achieved on a multilateral basis; it needs the support of the EU, it needs the support of the Arab community, it needs the support of the global community in order to take effect. And we will continue to work, and I will continue to consult with and work closely with Federica with respect to that.
There are many other issues, obviously. Federica mentioned the Transatlantic Trade Investment Partnership, and I just want to say a quick word about that. There is a misunderstanding to some degree which we need to address, and we will address in the coming months, that this somehow is a challenge to European standards or Europeans’ regulatory structure. And it is anything but. This is an agreement which seeks to raise practices in trade to the highest common denominator, not the lowest. And we have great respect for the integrity of the European regulatory system. We are confident of the ability of this agreement to be done in a way which doesn’t pull down any standard or any expectation that Europeans have, but rather raises everybody to a common standard but opens up new opportunities for trade, investment, and for job creation. And we’re convinced that over the course of time we will be able to show people that the positive benefits are enormous.
So let me just summarize by saying that I am absolutely confident that given the nature of the challenges we face with Bosnia to Serbia to Ukraine to Egypt, throughout the Horn of Africa, the Maghreb, the Sahel, the Levant, the Arabian Peninsula, we all have interests that are shared. And the EU-U.S. relationship began strong and it’s going to get stronger in the days ahead as we work together. And I’m delighted that Federica has been willing to take on this important responsibility. We wish her well.
Thank you. Thank you very much.
Remarks With EU High Representative Federica Mogherini Following Their Working Lunch
Remarks
John Kerry
Secretary of State
European External Action Service
Brussels, Belgium
December 3, 2014
HIGH REPRESENTATIVE MOGHERINI: John, thank you for your visit here. We had a first bilateral in my new capacity, and I’m particularly happy this takes place in Brussels, so thank you for visiting and thank you for having a bilateral meeting here. I’m looking forward to come and visit you in Washington if we find you in Washington sometime, which might be a challenge.
We’ve had a good discussion as always on all issues open on the agenda, which are many. And we are concentrating more on the area around Europe, Ukraine, although we have discussed the further measures that European Union has decided to take in the last weeks, and also the way forward to push for full implementation of the Minsk agreement.
And we discussed a lot also this morning in a very good session with other states, other nations, our situation in Syria and in Iraq, the fight against Daesh and the common effort against terrorists in the area, and to stabilize the region.
And we also had a discussion on the Middle East peace process, where we are looking forward to work together. All the work that John has done in the last months needs to be resumed, and the European Union is more than ready to support the continuation of this work. We know that your dedication personally we appreciate very much, and we are ready to support your efforts.
We also discussed Libya – extremely worrying situation where we also will cooperate.
And we will now unfortunately leave you soon without questions because we are starting a EU-U.S. Energy Council, which is also going to be important for our cooperation not only on the energy policies and security but also on climate. This is also something we owe you a lot. The link between energy and climate and all the efforts that foreign ministers and the foreign policy community can do on energy and climate in view of the Paris conference next year and the Lima conference that is taking place in these days. We know that U.S. leadership on that is something we owe you and your inspiration very much, and we appreciate very much your (inaudible). I think no other moment in history where on this particular issue the EU and U.S. have exactly the same position, and I think we should build on it.
Other point we talked and reviewed, TTIP. We are ready to work closely together and hard to make the negotiations proceed. It’s going to be a strategic goal, not only an economic one but also political, and so we are ready to work together for that.
John.
SECRETARY KERRY: Thank you, thank you. Well, let me say that for me it’s a great pleasure to be here and to meet bilaterally with the new EU High Representative, and I’m delighted to be working with Federica. We began to build a strong foreign minister-to-foreign minister relationship when she represented Italy, and now we have a chance to work with her as the EU High Rep taking on a much larger role representing all 28 countries that are part of the EU.
It is safe to say that the U.S.-EU transatlantic partnership is as important a relationship as there is. We work so closely on all of the issues of concern that we face today. Federica just ran through a list of them. But obviously, at the top of the list right now is the challenge of dealing with Ukraine and the question of upholding the sovereignty and territorial integrity of Ukraine. The EU has played a critical role in that. My original meetings in Geneva really were U.S., EU, Russia, and Ukraine, and now we have to try to see the Minsk agreement enforced and we have very, very strong energy-related, trade-related, security-related interests with respect to the outcome of that conflict.
We did have a very serious discussion this morning about Libya. We agree that Libya is at a particular moment of challenge for all of us, and we are very much seized by the issue and focused on it. We are supportive of Bernadino Leon’s initiative, but beyond that we are looking at other alternatives so that there’s not just one plan on the table. And I think we agreed today on a number of things that we can do and will do in order to try to minimize the violence, to end the violence, and find a constitutional process that will produce a government that has an ability to represent the people and can be sustainable.
In addition to that, we talked about ISIL/Daesh. Obviously, that was a large part of our conversation this morning in the session that we had, and we have significant interests there.
We also talked about the Mideast peace process, which may at this particular moment be a misnomer but nevertheless something that we are deeply committed to, and we will work on it. The United States believes that any solution that is ultimately going to be achieved, if there can be one, is going to achieved on a multilateral basis; it needs the support of the EU, it needs the support of the Arab community, it needs the support of the global community in order to take effect. And we will continue to work, and I will continue to consult with and work closely with Federica with respect to that.
There are many other issues, obviously. Federica mentioned the Transatlantic Trade Investment Partnership, and I just want to say a quick word about that. There is a misunderstanding to some degree which we need to address, and we will address in the coming months, that this somehow is a challenge to European standards or Europeans’ regulatory structure. And it is anything but. This is an agreement which seeks to raise practices in trade to the highest common denominator, not the lowest. And we have great respect for the integrity of the European regulatory system. We are confident of the ability of this agreement to be done in a way which doesn’t pull down any standard or any expectation that Europeans have, but rather raises everybody to a common standard but opens up new opportunities for trade, investment, and for job creation. And we’re convinced that over the course of time we will be able to show people that the positive benefits are enormous.
So let me just summarize by saying that I am absolutely confident that given the nature of the challenges we face with Bosnia to Serbia to Ukraine to Egypt, throughout the Horn of Africa, the Maghreb, the Sahel, the Levant, the Arabian Peninsula, we all have interests that are shared. And the EU-U.S. relationship began strong and it’s going to get stronger in the days ahead as we work together. And I’m delighted that Federica has been willing to take on this important responsibility. We wish her well.
Thank you. Thank you very much.
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