FIREARMS DEALER WHO CREATED SHAM TRUSTS TO HIDE INCOME WILL HE SENT TO PRISON

The following excerpt is form the Department of Justice website:
Wednesday, March 28, 2012
Honolulu Firearms Business Owner Sentenced to 51 Months in Prison for Federal Tax Offenses
Arthur Lee Ong of Honolulu was sentenced Tuesday to 51 months in prison and ordered to pay $1 million in restitution to the Internal Revenue Service (IRS) by District Court Judge Leslie Kobayashi today, the Justice Department and IRS announced today.   On Nov. 7, 2001, a federal jury in Honolulu convicted Ong of conspiracy to defraud the United States and six counts of tax evasion.

 According to evidence introduced at trial, Ong, the owner and operator of Thunder Bug Inc., doing business in the state of Hawaii as Magnum Firearms, failed to report to the IRS millions of dollars of income he earned from the sale of firearms and related products to federal, state, county and military agencies, as well as to the general public.  Ong, with the assistance of a Hawaiian attorney, created multiple sham trusts in 1990 for the purpose of hiding his income and assets.   He stopped filing personal income tax returns beginning in 1994 and also filed false tax returns on behalf of the sham trusts that fraudulently reported to the IRS that the income from his businesses was attributable to these trusts and not to him.

The evidence at trial showed that Ong evaded more than $600,000 in federal income taxes from 2000 to 2006.   In sentencing Ong, Judge Kobayashi found that Ong had attempted to evade more than $973,300 in federal and state income taxes from 1994 to 2009.

“There are some responsibilities that come with living in this great country, such as paying the federal income taxes that you legally owe,” said Kenneth J. Hines, the IRS Special Agent in Charge in Hawaii.  “With Tax Day right around the corner, this sentence sends a clear warning to anyone contemplating a tax crime.”

The case resulted from an investigation by IRS - Criminal Investigation and was prosecuted by Trial Attorneys Timothy J. Stockwell and Todd P. Kostyshak of the Justice Department’s Tax Division.

CYPRESS PHARMACEUTICAL INC., AND CEO TO PAY $2.8 MILLION TO RESOLVE ALLEGED MARKETING OF UNAPPROVED DRUGS

The following excerpt is from the Department of Justice website:
Wednesday, March 28, 2012
Mississippi Pharmaceutical Firm and CEO to Pay $2.8 Million to Resolve Allegations of Illegal Marketing of Unapproved Drugs
Mississippi-based Cypress Pharmaceutical Inc., its subsidiary Hawthorn Pharmaceuticals Inc. and its CEO, Max Draughn, have agreed to pay $2.8 million to resolve civil allegations under the False Claims Act, the Justice Department announced today.   The government alleged that between 2003 and 2009, Cypress, Hawthorn and Draughn were responsible for marketing three pharmaceutical products that were not approved as safe and effective by the Food and Drug Administration (FDA).   The products were Hylira, a gel used for the treatment of dry skin, Zaclir, an acne treatment and Zacare, another acne treatment.

The government alleged that although the drugs lacked the “safe and effective” designation, Hawthorn’s sale representatives promoted the products to physicians and state Medicaid officials using that designation. This caused TRICARE, the military’s health care program, and state Medicaid programs to improperly pay for the three products. The government also alleged that Cypress, Hawthorn and Draughn caused the submission to the Centers for Medicare and Medicaid Services (CMS) of false quarterly reports that misrepresented these products’ regulatory status and failed to advise CMS that the drugs did not qualify as outpatient drugs that were covered for payment.

Medicaid is partially funded by the federal government.   The federal portion of today’s settlement, including payments due to the TRICARE program, is $1,615,783.   The state Medicaid share of the settlement is $1,184,217.

The settlement resolves a False Claims Act lawsuit filed in the Eastern District of Texas by Robert Heiden, a former district sales manager for Hawthorn.   The whistleblower, or qui tam, provisions of the False Claims Act permit the relator to obtain a portion of the proceeds obtained by the federal government.  As part of today’s resolution, Heiden will receive more than $300,000.
         
 “The marketing and promotion of unapproved new drugs undermines the FDA’s important role in protecting the American public,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division.  “This civil settlement demonstrates our continued commitment to protecting the integrity of the FDA’s regulatory process and ensuring that taxpayer dollars are spent appropriately.”  

 “Today’s settlement strips the defendants of money they should not have been paid and helps reimburse state and federal health care programs,” said John M. Bales, U.S. Attorney for the Eastern District of Texas.

 “This settlement sends a strong message to those who seek to put the health of American patients at risk by marketing and promoting drugs which have not been approved by the FDA,” said Ilisa Bernstein, Acting Director of the Office of Compliance in FDA’s Center for Drug Evaluation and Research.

This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover nearly $6.7 billion since January 2009 in cases involving fraud against federal health care programs.  The Justice Department’s total recoveries in False Claims Act cases since January 2009 are over $9 billion.

The claims settled by this agreement are allegations only; there has been no determination of liability.

GENERAL THURMAN SAYS NUMBER OF FAMILY MEMBERS IN KOREA SHOULD REMAIN AT ABOUT 4,600

The following excerpt is from an American Forces Press Service e-mail:

Thurman: Keep Accompanied Korea Tours at Current Level

By Karen Parrish

WASHINGTON, March 28, 2012 - Family-member-accompanied tours for U.S. service members in South Korea should not expand beyond the roughly 4,600 family members now authorized, the commander of U.S. Forces Korea told Congress today.

Army Gen. James D. Thurman testified alongside Peter R. Lavoy, acting assistant secretary of defense for Asian and Pacific security affairs, before the House Armed Services Committee today on the security situation on the Korean Peninsula.

Given continued uncertainty on the peninsula and ongoing budget constraints, the general said, it's essential to maintain U.S. force readiness at its highest level, "given our requirement to 'fight tonight.'"

During his confirmation hearing before he took command of U.S. military forces in Korea, Congress asked him to assess tour normalization and force relocation, Thurman noted.

"It is my assessment that expanding tour normalization beyond our current authorization of 4,645 family members is unaffordable under the current construct," he said.

Force relocation plans are on track, Thurman said, adding that he will continue to assess them to ensure they place the right capabilities in the right places to meet operational requirements.

Defense Department officials have considered "tour normalization" in South Korea for a number of years. Then-Defense Secretary Robert M. Gates said in July 2010 that he was considering a two-year tour for single service members and a three-year tour for troops accompanied by their families.

Gates cautioned at the time, however, that the infrastructure such tours would require -- such as schools, hospitals and commissaries -- would make the change an expensive one.
 

MEDICAL CLINIC OWNER PLEADS GUILTY TO MEDICARE FRAUD

The following excerpt is from the U.S. Department of Justice website:
Thursday, March 29, 2012
Detroit Medical Clinic Owner Pleads Guilty to Medicare Fraud Scheme
WASHINGTON – The owner of a Detroit medical clinic pleaded guilty today for his participation in a Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).  

Juan Villa, 29, of Miami, pleaded guilty before U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  At sentencing, Villa faces a maximum penalty of 10 years in prison and a $250,000 fine.      

According to the plea documents, Villa owned Blessed Medical Clinic in Livonia, Mich.  Villa admitted that he hired patient recruiters who paid cash bribes to Medicare beneficiaries to attend the clinic and provide their Medicare numbers and other information.  Villa admitted that he used the beneficiary information to bill for medically unnecessary diagnostic tests and treatments.  According to court documents, Blessed Medical Clinic fraudulently billed Medicare $2.4 million during the course of the scheme.

Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
   
This case is being prosecuted by Assistant U.S. Attorneys Frances Lee Carlson and Philip A. Ross of the Eastern District of Michigan, with assistance from Assistant Chief Gejaa T. Gobena of the Criminal Division’s Fraud Section.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.    

Since their inception in March 2007, the Medicare Fraud Strike Force operations in nine locations have charged more than 1,190 individuals who collectively have falsely billed the Medicare program for more than $3.6 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

GREEK SHIPPING COMPANY FOUND GUILTY OF OBSTRUCTION OF JUSTICE

The following excerpt is from the Department of Justice website:
Tuesday, March 27, 2012
Greek Shipping Company Sentenced in New Orleans to Pay $2 Million for Intentional Cover-Up of Oil Pollution and Obstruction of Justice
WASHINGTON – Ilios Shipping Company S.A. was sentenced today in federal court in New Orleans for violating the Act to Prevent Pollution from Ships (APPS) and obstruction of justice, announced Assistant Attorney General Ignacia S. Moreno and Jim Letten, U.S. Attorney for the Eastern District of Louisiana.

Ilios operated the M/V Agios Emilianos, a 738 foot, 36,573 ton bulk carrier cargo ship that hauled grain from New Orleans to various ports around the world.  According to the plea agreement, from April 2009 until April 2011, oily bilge waste and sludge was routinely discharged from the vessel directly into the sea without the use of required pollution prevention equipment.  During that time, the crew intentionally covered up the illegal discharges of oil waste by falsifying the vessel’s oil record book.  The master of the vessel, Valentino Mislang, previously pleaded guilty to and was sentenced for conspiracy to obstruct justice for his role in destroying evidence and instructing crewmembers to lie to the Coast Guard during an inspection of the vessel in April 2011.  According to Mislang, a senior manager of Ilios directed the destruction of computer records and ordered Mislang to tell crewmembers to lie to the Coast Guard.

The chief engineer of the vessel, Romulo Esperas, previously pleaded guilty to and was sentenced for conspiracy to obstruct justice for his role in falsifying the vessel’s oil record book and directing the discharge of oily bilge waste and sludge directly into the sea.  According to Esperas, a senior manager of Ilios directed him to discharge the vessel’s oily waste into the sea and refused to provide funding for the proper discharge of the oily waste to shore-side facilities.  Both Mislang and Esperas were sentenced to three years of unsupervised release and are not permitted to re-enter the United States during that time.
“The Department of Justice will continue to prosecute shipping companies who break the laws that protect our oceans,” said Assistant Attorney General Moreno.  “The penalty imposed by this sentence holds Ilios fully accountable for violating the Act to Prevent Pollution from Ships, and a part of the penalty will fund projects that will help restore precious marine and aquatic resources in Louisiana.”

“We owe a debt of gratitude to the men and women of the U.S. Coast Guard, their partners in the Environmental Protection Agency and our brethren in the U. S. Department of Justice Environment and Natural Resources Division, along with our own U.S. Attorney’s Office professionals, for their continued vigilance in this and other cases protecting our precious environment, coastline and water resources from those unscrupulous companies and individuals who clandestinely and wantonly discharge oily waste into our waters,” said U.S. Attorney Letten.  “We will not falter in our commitment to do everything within our power to apprehend and punish these violators in defense of our environment.”

“Unfortunately, we continue to see many environmental crimes cases involving ocean-going commercial vessels.  The Coast Guard will continue to hold non-compliant companies and operators accountable when they break the law and endanger the marine environment or public health.  I applaud the efforts of Coast Guard Sector New Orleans, the Coast Guard Investigative Service, our Eighth District legal staff and the Department of Justice for their tireless efforts in investigating and prosecuting this case,” said Rear Admiral Roy A. Nash, Eighth Coast Guard District Commander.
All discharges of sludge or oily bilge waste from a vessel are required to be recorded in the vessel’s oil record book.  However, none of the illegal discharges were recorded in the oil record book for the M/V Agios Emilianos.

The court ordered Ilios to pay an overall criminal penalty of $2 million.  The National Fish and Wildlife Foundation will receive $250,000 to fund projects aimed at the restoration of marine and aquatic resources in the Eastern District of Louisiana.

As a condition of probation, Ilios is required to implement an environmental compliance plan which will ensure that any ship operated by Ilios complies with all maritime environmental requirements established under applicable international, flag state and port state laws.  The plan ensures that Ilios’s employees and the crew of any vessel operated by Ilios are properly trained in preventing maritime pollution.  An independent monitor will report to the court about Ilios’s compliance with its obligations during the period of probation.

This case was investigated by the U.S. Coast Guard and the Environmental Protection Agency.  The case was prosecuted by Emily Greenfield and Dorothy Manning Taylor from the U.S. Attorney's Office of the Eastern District of Louisiana and by Ken Nelson in the Environmental Crimes Section of the Environment and Natural Resources Division of the Department of Justice.

COURT ENTERS FINAL JUDGEMENT AGAINST FORMER CFO OF BRISTOL MYERS

The following excerpt is from the SEC website:
March 30, 2012
The Securities and Exchange Commission announced that on March 27, 2012, the United States District Court in New Jersey entered final judgments against Frederick S. Schiff, former CFO of Bristol-Myers Squibb Co. (Bristol Myers) and Richard J. Lane, former President of the Worldwide Medicines Group for Bristol Myers. Schiff and Lane consented to the entry of the final judgments without admitting or denying the allegations of the Commission’s complaint.

The Commission’s complaint alleged that for the period January 1, 2000 through December 31, 2001, Schiff and Lane deceived the investing public about the true performance, profitability and growth trends of Bristol Myers and a t their direction, Bristol Myers engaged in a “channel-stuffing” scheme. The complaint alleged that Bristol Myers used financial incentives to induce wholesalers to buy its pharmaceutical products in excess of prescription demand in order to artificially inflate its results, which in turn was necessary in order to meet Bristol Myers’ internal earnings targets and the consensus earnings estimates of Wall Street securities analysts. The complaint alleged that by doing so, Bristol Myers improperly recognized revenue from pharmaceutical sales associated with the channel-stuffing.

Schiff consented to a final judgment permanently enjoining him from violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, requiring him to pay disgorgement plus prejudgment interest totaling $130,992, and barring him from serving as an officer or director of a public company for one year. Lane consented to a final judgment permanently enjoining him from violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, requiring him to pay disgorgement plus prejudgment interest totaling $36,750, and barring him from serving as an officer or director of a public company for one year.

DETROIT PODIATRIST GOES TO PRISON FOR MEDICARE FRAUD

The following excerpt is from the Department of Justice website:
Tuesday, March 27, 2012
Detroit Podiatrist Sentenced to One Year in Prison for Medicare Fraud Scheme
WASHINGTON – A Detroit-area doctor of podiatric medicine was sentenced today to one year in prison for a fraud scheme involving false billings to Medicare, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
Dr. Errol Sherman was sentenced by U.S. District Judge Gerald E. Rosen in Detroit.  In addition to his prison term, Sherman was sentenced to three years of supervised release and ordered to pay $300,000 in restitution.  Sherman pleaded guilty on Nov. 22, 2011, to one count of health care fraud.

According to the plea documents, Sherman is a doctor of podiatric medicine licensed in the state of Michigan.  Between January 2003 and December 2006, Sherman billed Medicare and Blue Cross Blue Shield of Michigan for a procedure known as an avulsion of the nail plate or nail avulsion procedure.  Sherman billed for this procedure thousands of times, claiming that he had performed this procedure on hundreds of beneficiaries from 2003 through 2006.  In fact, he had not performed the procedures billed.
Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General (HHS-OIG), Office of Investigation.

This case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John K. Neal of the U.S. Attorney’s Office for the Eastern District of Michigan.  The case was investigated jointly by the FBI and HHS-OIG, as part of the Medicare Fraud Strike Force, supervised by the U.S. Attorney’s Office for the Eastern District of Michigan and the Criminal Division’s Fraud Section.
Since their inception in March 2007, the strike force operations in nine locations have charged more than 1,190 individuals who collectively have falsely billed the Medicare program for more than $3.6 billion.  In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

STATE DEPARTMENT STATEMENT TO CONGRESS ON SECURITY IN LATIN AMERICA

The following excerpt is from the U.S. State Department website:
Security Challenges in Latin America
Testimony William R. Brownfield
Assistant Secretary, Bureau of International Narcotics and Law Enforcement Affairs Statement Before the Subcommittee on State, Foreign Operations, and Related Programs of the House Appropriations Committee
Washington, DC
March 29, 2012
As prepared
Chairwoman Granger, Ranking Member Lowey, and distinguished Members of the Subcommittee, thank you for your invitation to discuss security threats in the Western Hemisphere as well as our efforts to address them. I am pleased to be with you today.

Let me begin by describing the security challenge as we see it in the INL Bureau. The persistently high homicide and crime rates throughout Central America, the Caribbean, and the horrific reports of violence inside Mexico, are symptoms of a broader climate of insecurity throughout the region. Crime and violence are exacerbated by widespread poverty and unemployment. This is brought into greater focus as criminal organizations react to the increasing pressure placed on their operations by governments in the region with support from the United States. These threats undermine and pose profound challenges to good governance, citizen security, and the rule of law. And absent these fundamental principles, transnational crime, gangs, and other illicit activity can flourish in many countries, threatening stability and public security.

To counter these threats, this Administration has advanced an integrated approach of U.S. assistance programs, from traditional prevention, law enforcement and counternarcotics programs, to anti-corruption, judicial reform, anti-gang, community policing, and corrections efforts. We are transforming our relationship with foreign partners by moving from the traditional donor-recipient relationship to one built on equal partnerships that involve shared responsibility and accountability. In each of our initiatives, we work hand in hand with host nation officials and our partners in the U.S. government, as well as with other donors, such as Colombia, to strengthen the justice sector institutions, including the judiciary, police and corrections. We coordinate our efforts with others in the U.S. government who work with communities, civil society, and the private sector, recognizing that security solutions require a whole of society approach. We have learned that this is the only way to bring long-term stability to countries threatened by crime and violence. Governments must have the ability, and in fact, have the responsibility to protect their citizens, to deal with crime and violence so that these issues remain or become law enforcement problems, not national security threats. This is a long-term strategy that has proven to be effective.

The Central America Regional Security Initiative (CARSI), Mérida Initiative, Colombian Strategic Development Initiative (CSDI), and Caribbean Basin Security Initiatives (CBSI) embrace this approach. They are partnerships in which governments have collaborated with the United States on the development of joint programs and initiatives that are aimed at protecting citizens and strengthening the institutions responsible for ensuring citizen safety.

Support for Central America
Today, some 95 percent of the cocaine from South America destined for the U.S. transits the Central America/Mexico corridor. With these activities comes violence: Battles between criminal groups for territory and transit routes; clashes between criminals and law enforcement; and violent crime fuelled by drug consumption, all with the ultimate motive of making a profit. In 2008, anticipating that Mexico’s efforts to challenge cartels would result in the movement of trafficking routes elsewhere, the U.S. government formed a partnership with Central American nations to enhance their security capacity. CARSI is the resulting program.

Applying our overall strategy and lessons learned through the years, CARSI works to increase the capacity of law enforcement to combat drug traffickers and provide public security, support prevention efforts targeting at-risk youth and those living in communities susceptible to crime and recruitment by gangs and traffickers, and strengthen justice sector institutions. While CARSI prioritizes the so-called “Northern Triangle” countries of El Salvador, Guatemala, and Honduras, where the levels of crime and violence are most severe and stability most threatened, the program is leveraging our assistance throughout the region to improve citizen security.

Thanks to support from this Subcommittee and your Senate colleagues, our government has already committed approximately $231 million in INCLE funding for technical assistance and training for CARSI between Fiscal Years 2008 and 2011, and, with your approval, we are seeking to dedicate an additional $85 million for CARSI under the INCLE account in Fiscal Year 2012. Our request for Fiscal Year 2013 continues our work at $60 million, at an assistance level that matches programming goals for each fiscal year with the actual capacity of our partners to absorb that assistance.

Our programs are starting to see results. In a relatively short period of time, crime rates have decreased in municipalities where we are providing targeted training, equipment, and support. For example, in Lourdes, El Salvador – where INL has a Model Police Precinct – crime rates have dropped 40 percent over the past year. We have similar model precinct programs in Guatemala and are starting others in Honduras. Our support to law enforcement is also gaining traction, with specialized vetted units, overall police reform efforts, and targeted training with our partners from Colombia and Mexico in Central America.

Governments in the region are increasingly recognizing the need to invest in their own security and are passing new laws on taxes to support investments in citizen security programs, judicially authorized wiretapping programs, extradition, and asset forfeiture. Change is slow to take hold, however, as corruption and impunity remains widespread. We are working to accelerate our programs to achieve even more results, including standing up a full-fledged Narcotics Affairs Sections in San Salvador and Tegucigalpa, and enhancing levels of coordination and planning across the interagency to identify opportunities and de-conflict programs as necessary.

The regional nature of transnational crime and the violence it spurs has also prompted an unprecedented international effort to support citizen security efforts in Central America, including through the Group of Friends of Central America. We are working together with the Central America Integration System (SICA), joined by common principals, to address
our common challenges.

Mérida/Mexico
In Mexico we continue to see shocking news reports of killings and violence; however, the Government of Mexico, with assistance from the United States through the Mérida Initiative, has had some significant results. The resources you have provided to the INL Bureau, approximately $1.1 billion in INCLE funds for Mérida since its inception, have helped the Government of Mexico, together with its United States partner departments and agencies, to continue turning the tables on the cartels. Funds appropriated in Fiscal Year 2012, approximately $249 million, along with our request for Fiscal Year 2013, $199 million, will ensure continued and sustainable progress. Through bilateral law enforcement cooperation, 47 high value targets have been arrested or removed in Mexico, including 23 of Mexico’s top 37 most wanted criminals, since December 2009. This aggressive and coordinated approach to dismantle and disrupt the drug cartels has included an institutional focus on all elements of the justice sector and civil society. The Government of Mexico, through our Mérida Initiative is transforming Mexico’s security forces and has strengthened Mexican government institutions in order to confront trafficking organizations and associated crime, and maintain public trust and citizen security.

Through the Mérida Initiative, the mobility of Mexico’s security forces has increased significantly. Thanks to your support, the United States has already delivered eight Bell helicopters to Mexico’s Army (SEDENA), three Black Hawk helicopters to Mexico’s Navy (SEMAR), and four Black Hawk helicopters to Mexico’s Secretariat of Public Security (SSP) and its Federal Police. As a practical example of the initiative’s impact, Mérida provided Black Hawks were responsible for enabling Mexico’s high profile operations against the La Familia cartel in Michoacán in December 2010, and another operation against Los Zetas in Nuevo Leon in September 2011. Neither of these operations would have been possible without the air mobility provided and well trained Mexican personnel traveling onboard.

In another example, Mérida Initiative training, provided through U.S. agency implementers, has reached more than 52,000 federal police, justice sector officials, and state police officials providing lessons on leadership, accountability, and management. As a result of our professionalization training, and the Government of Mexico’s revolutionary reforms, the new cadre of security officers and officials is more impervious to coercion and corruption by transnational criminals and the federal government in Mexico now has its own polygraph capacity to vet personnel through two certified federal and 15 state polygraph centers.

The Mérida Initiative has also illustrated the importance of syncing our assistance in equipment and training for the government of Mexico with programs that enable Mexican communities to work more closely with government entities to improve their security. We have found that when material resources, training, and community programs complement each other, the outcome is more successful and more sustainable. Through one Mérida program, for example, our partners at USAID have delivered over 40 small grants to nongovernmental organizations that have resulted in programs for at-risk youth and other programs that reduce violence against women, improve mental health, strengthen community cohesion, and improve education. Another program through Mérida has provided classroom lessons on the culture of lawfulness and ethics to more than 600,000 students and 14,000 teachers, in some 7,000 separate schools located in 24 Mexican States.

As is the case in other parts of the hemisphere, our strategy through Mérida was not singularly focused on dismantling the cartels, but rather a long term institution building strategy in our partnership with the Government of Mexico.

Colombia: An Exporter of Regional Security
Best practices learned over decades in Colombia have informed our overall hemispheric strategy. As a follow-on to Plan Colombia we have continued our partnership with the Government of Colombia to fortify the gains made over the past decade. We developed a program called the Colombia Strategic Development Initiative (CSDI), which supports the Colombian Government’s National Consolidation Plan. Today, CSDI provides for civilian institution building, rule of law, and alternative development programs, along with security and counternarcotics efforts in those areas where poverty, violence, and illicit cultivation or drug trafficking persist and have historically converged. We are supporting these endeavors with significantly reduced resource levels; however, continued resources will be needed to sustain and consolidate our gains.

For example, our Fiscal Year 2013 request represents more than an $18 million reduction from our Fiscal Year 2012 INCLE enacted, and a $62 million reduction from Fiscal Year 2011 INCLE enacted. We’ve worked closely with our Colombian partners to ensure that this is not misinterpreted as a reduction in priority or partnership, but rather the appropriate evolution of our joint efforts -- where we once led assistance efforts to now supporting Colombia’s sustainment and nationalization of those efforts.

Our efforts in Colombia are paying dividends regionally as well. With the capacity that the Government of Colombia built over the years, Colombia is now bolstering efforts to address similar security concerns elsewhere in the region. Colombia today is no longer just a recipient of security assistance but an exporter of it. Since 2009, the Colombian National Police (CNP), our closest partner in promoting citizen security throughout the region, has trained some 10,000 police from across Latin America in areas such as criminal investigation skills, personal protection, and anti-kidnapping among other critical law enforcement disciplines. Colombia’s participation in improving security and reducing instability throughout the hemisphere by providing needed training is an enormous return on our investment in that country, and is precisely the type of regional approach to security promoted by Secretary Clinton. This is a positive trend, one which we firmly believe will continue with additional partners and with ownership by governments of the region.

Support for Caribbean Nations
The deleterious effects of drug smuggling, gangs and violent crime are also adversely affecting many countries in the Caribbean, including transnational criminals returning in a limited nature to air, maritime, and terrestrial routes in the Caribbean to traffic illicit products. Accordingly, in 2009, President Obama launched the Caribbean Basin Security Initiative, which like our other initiatives, is a collaborative endeavor undertaken in partnership with various United States departments and agencies, as well as the nations in the region.

Citizen security is the single most important issue confronting the Caribbean as narcotics-driven crime and violence have reached epidemic proportions, threatening the safety and security of United States and Caribbean citizens alike.

CBSI, like each of our other major partnerships, aims to increase stability and improve security, and applies a whole of government approach to the challenges confronting Caribbean nations. We have committed $48 million in INCLE funds during the first two years of CBSI for programs and equipment to support our Caribbean partners, and we expect to commit an additional $30 million in INCLE funds for Fiscal Year 2012, with your support.

Our Fiscal Year 2013 INCLE request of $21 million will allow us to continue to support programs that strengthen Caribbean partner nation capabilities in the areas of maritime security, law enforcement, information sharing, border and migration control, transnational crime, and criminal justice.

Specifically, our programs seek to increase regional cooperation of our Caribbean partners to share law enforcement data, including ballistics imaging, airport passenger manifests, and fingerprinting, through software and training. Technical assistance will increase the ability of our partners to combat financial crimes and money laundering, while equipment and training for law enforcement personnel target narcotics trafficking on land and sea. These efforts seek to strengthen national and regional security systems throughout the Caribbean before the threats of illicit trafficking and transnational crime worsen.
* * *
 Madam Chairwoman, Ranking Member Lowey, I have focused my prepared remarks today on the programs we are administering to support our partners in the Western Hemisphere for a reason. As you know well, the challenges to secure and safe societies in the hemisphere are vast, and insecure societies host the majority of criminals whose crimes directly threaten our nation’s security. We recognize that there is no easy fix for these problems, and we will continue to evaluate our progress and adjust our approaches as these complex and dynamic threats evolve. We focus largely on regional programs because they provide the platform for several nations to coordinate their strategy and ensure a unified capability to addressing their shared challenges. Regional programs also allow us to multiply the impact and value of our assistance by syncing up with the contributions made by each government in the region. While these programs represent our major mechanisms for addressing threats to security in the Western Hemisphere, they are by no means our only mechanisms. We have ongoing bilateral programs – some robust like in Peru and Haiti, and some less so, in other countries in the hemisphere.

In Peru for example, where our bilateral counternarcotics relationship has been reinvigorated by an eager and supportive administration there, we have programs to increase capacity of law enforcement and programs to support a significant coca eradication effort. This is going to be an important area for us to watch closely, and I look forward to further discussions with the Subcommittee as our partnership there continues to evolve. And in Haiti, where perhaps the absence of strong and capable government institutions had been the most striking in the Western Hemisphere, INL supports programs to improve the capacity of law enforcement as well as the judicial sector. It is also worth noting that we are working very diligently to engage our friends in the region, particularly those with recognized competency in particular areas, to strengthen the capacity of not just others countries within the Western Hemisphere, but across the globe.

Madam Chairwoman, Ranking Member Lowey, thank you very much for the opportunity to discuss and share with you the work we are doing to address these challenging threats to the security of the people of the Western Hemisphere. I look forward to your questions.

STATE DEPARTMENT DAILY PRESS BRIEFING

Mark C. Toner, Deputy Spokesperson
Daily Press Briefing
Washington, DC
March 30, 2012
TRANSCRIPT:
12:58 p.m. EDT
MR. TONER: Good afternoon, everyone. Happy Friday. Yay. First of all, I want to welcome – I think we have a number of students from the International Student House. Is that right, guys? Hey. As well as – led by Barbara Slavin, who’s known to many of you and formerly part of the noble State Department press corps. And anyway, welcome to the State Department.
QUESTION: You mean it’s that bad today? (Laughter.)
MR. TONER: I am not above pandering, really, honestly. It’s – if it makes this thing any quicker. Anyway, welcome to the State Department.
Also, before beginning, I do want to mention how very pleased we all here at State of the large number of nominees who were confirmed by the Senate yesterday, including our very own Mike Hammer, which is the reason why I’ve donned a purple tie today, because it’s his favorite color. So kudos to Mike, as well as Tara D. Sonenshine, who’s our new Under Secretary of State for Public Diplomacy. So, congratulations. There’s a long list, you’ve all seen it, but indeed we’re very pleased that these individuals can now begin their work in earnest. And we also will continue to work with Congress on the remaining nominees.
And then, just before taking your questions, I do want to note – and we’ll be putting out a Media Note later, right after the briefing – that Under Secretary of State for Political Affairs Wendy Sherman will be traveling to New Delhi and to Patna, India, April 1st through 4th. In New Delhi, Under Secretary Sherman will meet with Foreign Secretary Mathai as well as other senior Government of India officials to discuss preparations for the upcoming U.S.-India Strategic Dialogue, which will be held here in Washington in mid-June.
On April 4th, she’ll travel to Kathmandu, Nepal, where she’ll meet with Prime Minister Bhattarai as well as other Government of Nepal officials. And then she’ll travel on to Dhaka, Bangladesh on April 5th, where she’ll meet with Prime Minister Sheikh Hasina and Foreign Minister Moni, as well as other Bangladeshi officials. And she’ll also go on to visit the Grameen Borrower Group site outside of Dhaka.
So we’ll put this out just after the briefing with all the details. That’s it.
QUESTION: I want to go back to something we talked about yesterday involving Russia and Ambassador McFaul.
MR. TONER: Yeah.
QUESTION: What – have you all decided on what course of action you’re going to take about what’s been going on?
MR. TONER: Well, I think we put out a taken question. At least, it should’ve gone out shortly – a short time ago. Did it not? Is it a go? Okay.
QUESTION: Saying what?
MR. TONER: Basically saying that – answering the question that was raised at yesterday’s briefing, which is that have we raised this with the Government of Russia, and indeed we have. So --
QUESTION: And, well, I mean, what have you raised with the Government of Russia?
MR. TONER: Well, we’ve raised our concerns. There’s been a number of incidents since his arrival there that have caused us to have some concerns about his security and safety. So as we would in any – following normal protocol, we’ve raised that with the Government of Russia.
QUESTION: Do you have any concerns at all about just – I mean in general about the tweets that he’s been sending out?
MR. TONER: No. I think I said yesterday that we have full confidence in our chiefs of mission to use Twitter as a way to communicate to a number of followers, whether they be in Russia – in Mike McFaul’s case, but – or outside. And I did note, having looked at his Twitter account – we had an exchange yesterday – but there’s quite a few of his followers who respond in Cyrillic, so he does have some measure. I don’t have any way to measure that, but you questioned --
QUESTION: One of his followers appears to be someone with the name the – at least the Twitter handle Prostitutkamila. Do you have any – (laughter) – whose avitar is crossed legs. Do you have any – I mean, he is going back and forth with Prostitutkamila about this situation yesterday. Do you have any concerns or problems with that? Is that appropriate for – I mean, God knows who this person actually is, but --
MR. TONER: Right. Exactly, Matt. You well know, as I do, even though we’re not of the – this generation that uses Twitter – well, maybe you do, maybe you are, I don’t mean to age you – but that avitars come in all shapes and forms.
QUESTION: Well, I know, but, I mean, here he’s having a discussion saying that he was accosted by Cossacks at this event where these journalists – there were not just journalists there, there were men in military uniform, and I just – do you think that ambassadors should be routinely engaged in Twitter conversations with people who identify themselves as prostitutes?
MR. TONER: Again, he’s engaged with his followers. I’m not going to get – regulate or talk about from this podium who within his followers he should be talking to. Twitter – his tweets go out to a broad audience.
QUESTION: Did your concerns with – over his security and safety predate his Twitter activities yesterday?
MR. TONER: Yeah. I mean, I would say that. There’s been a number of incidents. I’m not going to go into them in detail but – because they do pertain to his security, but we’ve raised this.
QUESTION: Okay. And did you raise the concerns with the Russians before or after that exchange yesterday?
MR. TONER: Before. And we’re going to raise the latest concerns as well.
QUESTION: The latest concern being about his security, maybe --
MR. TONER: Well, and about --
QUESTION: My understanding was previous – the ones previous were about the anti-American incidents that --
MR. TONER: That’s right.
QUESTION: And then – but the new concern comes from the fact that he seems to be being followed around and --
MR. TONER: That’s my understanding, yes.
QUESTION: -- thinks that his phone and --
MR. TONER: Yes.
QUESTION: Have the Russians said anything in response to this latest --
MR. TONER: No. I don’t have any details about what their response has been.
QUESTION: Have they responded to the previous concerns about his being followed?
MR. TONER: Not that I’m aware.
QUESTION: New subject?
MR. TONER: Sure.
QUESTION: Going back to the Senate confirmations, India is now, for a long time, without any U.S. ambassador, and now – we have now, you said, Strategic Dialogue is coming up and a lot of (inaudible) are going back to – back and forth to India and to New Delhi to Washington. Have Secretary – she’s making any plea to the Senate for the confirmation of --
MR. TONER: Who? We --
QUESTION: -- for --
MR. TONER: Nancy Powell was --
QUESTION: Yeah.
MR. TONER: -- was on my list of those confirmed yesterday.
QUESTION: Right.
MR. TONER: So --
QUESTION: There is an ambassador to India now --
MR. TONER: Yeah. There is an ambassador to India. I was somewhat confused.
QUESTION: -- as well as an ambassador to many other countries that are --
MR. TONER: Absolutely. I didn’t go through the long laundry list that --
QUESTION: -- that also didn’t have ambassadors for a long time.
MR. TONER: Right. Thank you, Matt. (Laughter.)
QUESTION: And she’ll – when’s she leaving?
MR. TONER: I don’t know. I’m sure as soon as possible. I was just confused because your question seemed based on the premise that she was not confirmed, so --
QUESTION: No, because you did not answer – I mean, you didn’t mention --
MR. TONER: I didn’t go through the laundry – I mean, there’s a long list of people, so I just gave a shout-out to the folks in PA.
QUESTION: The question sort – also on India, the deadline’s looming for the President on sanctions on – regarding oil to Iran, to give --
QUESTION: It’s here.
QUESTION: It’s here – to give exemptions. Is that something the State Department will be handling, or does that come in from the White House?
MR. TONER: I think I’d refer you to the White House on his --
QUESTION: Just the exemptions for countries, what – about the – about purchasing oil from Iran.
MR. TONER: Well --
QUESTION: A lot of the sanctions --
MR. TONER: We continue to – I mean, we already announced a number of those exemptions, and we continue to have a dialogue with a number of countries, including India. And when we have – and when we’re ready to announce a new round of exemptions, then we’ll do so, but nothing planned.
QUESTION: Syria?
MR. TONER: Yeah. Those discussions are ongoing.
QUESTION: The chairman of the Joint Chiefs told reporters as he was returning from Latin America that the message has been sent from the U.S. to the Syrian opposition that it would be helpful if they would basically consolidate who they are and consolidate their actions. I know – I’m asking, here at State, has that message indeed been sent to the various parts of the broader Syrian opposition that it’s better to get behind one banner at this point?
MR. TONER: Well, indeed. I mean, it’s going to be one of the topics of discussion in Istanbul. And the Secretary herself spoke to it the other day about this need for a unifying vision for the Syrian opposition, recognizing, of course, the challenges that are inherent in this process, which is that you’ve – they’re under relentless pressure by the Assad regime trying to basically survive, much less come up with a vision statement. And then you’ve got elements of the opposition who are outside the country and obviously many more who are within the country. So it’s a difficult task. We recognize that.
QUESTION: Does that kind of solidification make it easier for the U.S. to figure out exactly how it’s going to provide assistance if you actually have some sort of organization that you can direct countries to, such as what we saw with the NTC in Libya?
MR. TONER: Well, certainly. As we move forward on the path set out by the Annan plan that foresees a dialogue and then a transition, it’s absolutely essential that we’ve got a strong unified opposition. We believe that’s happening, but it’s just taking time.
QUESTION: Mark, conversely – a follow up to Ros’ question. I mean, is it – doesn’t that – the fact that they have a hundred different group make it really very difficult for you to provide aid and, in fact, frustrates whatever aid that might be forthcoming, and, in fact, may have nixed whatever possible military support to the opposition groups?
MR. TONER: Well, I mean, it depends, Said, what we’re talking about. I mean, our humanitarian assistance is ongoing, and that’s metered out through – basically through the ICRC, but other international organizations. When you’re talking about assistance, the President and others have mentioned a possibility of non-lethal assistance to the Syrian opposition, and that’s going to be one of the topics of discussion in Istanbul.
QUESTION: You said that --
QUESTION: (Inaudible)
MR. TONER: Yeah, sure. Go ahead.
QUESTION: Just a follow up. Should the opposition feel now be – or should the opposition be resigned to the fact that no military aid is forthcoming, at least not in the foreseeable future?
MR. TONER: Look, we’ve – our position hasn’t changed on that. We’re focused on political, economic pressure on Assad to choke off his options, as well as ramping up humanitarian assistance. And as I’ve said, talking about non-lethal assistance or aid to the Syrian opposition to help them come together and become more coherent.
QUESTION: You said as we move forward with the Annan plan. Do you see any indication that that plan is actually moving forward at this stage?
MR. TONER: Well, look, I talked yesterday about giving him the diplomatic space that he needs to operate. He continues to consult. We haven’t seen – I think what you’re asking – we haven’t seen any signs by Assad or his regime that they’re following the first element of that plan is for a ceasefire.
QUESTION: So when does it – when do you make the calculation that giving him diplomatic space to operate is also giving Assad physical space to keep on mowing down his people? I mean --
MR. TONER: Well --
QUESTION: -- you’re – it seems --
MR. TONER: This isn’t a – no. I mean, it’s a fair question, but this isn’t – when I talk about giving him the diplomatic space to operate, I’m not at all implying that we’re relenting in any way in our other efforts to apply economic and political pressure on Assad. I mean, these things are concurrent.
Yeah.
QUESTION: Mark, Syrian sources say that the Bashar al-Assad is getting ready to give a major speech in about a week. And it is expected that during that speech, he will announce ceasing fire. Is that good enough?
MR. TONER: Look, we want to see immediate ceasefire on the ground. If they said – and they sent through a letter to Kofi Annan that said that they were – that they agreed with the plan, then they should take immediate steps to halt the violence.
QUESTION: Yeah, but --
MR. TONER: We’ve seen – look, I’m not – the Secretary and others spoke to this. We’re not going to – we’re going to remain skeptical until we see real action on the ground, real steps being taken.
QUESTION: But you don’t think that Kofi Annan told them, “Okay. We’ll give you one more week to finish up your business,” so to speak.
MR. TONER: I think – I can’t speak for him. I think he’s working equally hard to stop the violence as soon as possible.
Yeah. Go ahead.
QUESTION: In India yesterday, five fastest growing economies including India – Brazil, India, China, Russia, and South Africa, they met and established a, what it called, BRICS. And what they’re saying is, like, challenging the IMF and the World Bank. And also they are calling on the United States that there should be some kind of change as far as the way World Bank and IMF is works. And any – and also, they want to do business in their own local currencies rather than in dollar.
MR. TONER: Well, in answer to your first question, I don’t – or your question implied that they was established – I think that BRICS been around for a few years as a multilateral organization. We enjoy good relations with all the countries within the BRIC. We have ongoing bilateral dialogues with all of them. So we understand their positions on a broad range of multilateral issues and we welcome the BRICS’ efforts to engage constructively on global issues, and we’re going to continue to talk with them about the range of global issues.
QUESTION: And also, at the same time, the U.S. Commerce Secretary John Bryson was in India – he’s in India. So where do we stand as far as U.S.-India trade and commerce is concerned today?
MR. TONER: Well, I haven’t had a chance to get a readout from his visit, but I’m fairly certain that we’re on solid footing in terms of trade with India.
QUESTION: Thank you.
MR. TONER: Yeah. Go ahead. You had a question.
QUESTION: Do you mind going back to Iran?
MR. TONER: I don’t mind going back to Iran.
QUESTION: On the issue of the Iranian sanctions slated to take place at the end of June, how concerned is the Administration with the fact that these increased sanctions will have an effect on oil prices, gas prices back here?
MR. TONER: Well, look, I think the fact that we’re having very deliberate and ongoing consultations with many of our friends and allies around the world to impress upon them the need to stop their import of Iranian crude and then to move to other sources shows that we’re going about this in a very deliberative way. We want to – and certainly the announcement a couple weeks ago of those countries that we believe have made substantial progress in this indicate that there’s a – that we’re confident that we can do this in a very coherent, deliberative fashion that’s not going to affect the market.
QUESTION: It seems to be (inaudible) White House (inaudible).
MR. TONER: Okay.
QUESTION: On the Secretary’s trip, I’m wondering if you have any readouts from the U.S. side on what the Secretary is doing, since she’s gone there without her faithful band of followers and the only word we have now is from the Saudi Foreign Ministry. So can you tell us?
MR. TONER: And precisely because of that, I don’t have much of a readout for you because my faithful --
QUESTION: (Off-mike.) (Laughter.)
MR. TONER: My faithful colleague, Toria, is on that same second plane. As many of you know, the Secretary’s plane developed some mechanical problems yesterday. She went forward, I believe, with just a few skeleton staff to carry out her meetings, bilateral meetings on the ground. And then the larger plane followed with the rest of her staff, including Toria, of course, and the press corps. So I don’t have a readout. We’ll try to get it to you.
QUESTION: You’re not likely to get anything until Toria actually gets on the ground? I mean, there are other senior U.S. officials with the Secretary.
MR. TONER: I understand that, and I know she’s coordinating with them to try to get something.
QUESTION: Different topic?
MR. TONER: Yeah. Sure.
QUESTION: Yeah. On Palestinian issue, today the Israelis – and in fact Haaretz – exposed that the Israelis have plans to annex 10 percent of the West Bank and allocate it for a settlement. Do you have any comment on that? They published the maps and that actually will turn the West Bank, the area designated for a Palestinian state, into basically a discontiguous, Swiss cheese area.
MR. TONER: I really don’t. I haven’t seen the story. I don’t know what it’s based on. You know our policy on – our position regarding settlements.
QUESTION: Well, it’s a major expose in an Israeli –
MR. TONER: Well, we’ll certainly take a look at it --
QUESTION: -- a most respectable (inaudible) --
MR. TONER: I’m pretty sure our position is going to remain the same, which is --
QUESTION: Yeah. But I mean, beside your position remaining the same, if this is the case, if there are actually secret plans to annex – I mean --
MR. TONER: But, Said, you’re asking me to comment on secret plans. I mean, I – just it’s impossible for me right now to do that. I’ll take a look at the article and – but you know what our position is.
Yeah, in the back.
QUESTION: I think you --
QUESTION: Can we stay on that for a second?
MR. TONER: Yeah. Sure.
QUESTION: And this has to do with Jerusalem, but it’s not the same question from the other day. Do you know if you all have taken a position on the construction of this Museum of Tolerance that the Israelis are building? It’s supposed – there’s some controversy about it because it’s going to be built on a Muslim cemetery.
MR. TONER: I’ll take the question, Matt. I don’t know what our position is.
Yeah, go ahead.
QUESTION: Mark, is the Armenia and Turkish relation, the genocide topic or the church property issues, part of the Secretary’s discussions in Turkey?
MR. TONER: You know what? I can’t speak to – I know she’s going to have some bilateral discussions on the side and, of course, on the margins of the Syrian – Friends of Syria meeting. It’s impossible for me to judge. Of course, those issues, those topics are a constant source of – or a issue that we discuss with Turkey and with Armenia, in fact. So we want to see the rapprochement process continue in that regard.
QUESTION: New topic?
MR. TONER: Yeah.
QUESTION: Pakistan?
MR. TONER: Okay.
QUESTION: On the reports that Usama bin Ladin’s wife is saying that he was always in Pakistan, is it your assessment that the Pakistani Government was consistently lying to the U.S. Government over the years?
MR. TONER: Again, I don’t think we have an assessment. We have – as you know, immediately after the Abbottabad raid, we asked the Pakistani Government the question of whether there was a larger network at play here or there was some kind of network of support, I guess, for bin Ladin when he was there. We have not received any information that indicates that there was such a network of support there. So I don’t really have anything new for you on that.
QUESTION: So you don’t believe that they were lying?
MR. TONER: I don’t believe so. Again, we haven’t received any indications that indicate that there was some broader network, no.

Go ahead, Shaun.
QUESTION: On Burma, Myanmar?
MR. TONER: Yeah. Go ahead.
QUESTION: Just a follow-up real quick?
MR. TONER: On Pakistan? Yeah, go ahead. Let’s stay on Pakistan.
QUESTION: A just quick one that Pakistanis are again angry at the U.S. because of this recent attack, drones and also --
MR. TONER: Recent? I’m sorry. Recent --
QUESTION: Missile attack.
MR. TONER: Okay.
QUESTION: Over Pakistan. I believe they are saying three people were killed and they are asking the U.S. that they should stop this as far as drone attacks and missiles are concerned in order to have good relations or opening of the doors and all so forth.
MR. TONER: Well, you know where we’re at on this, Goyal. We continue to await the results of the parliamentary review. That’s still ongoing. But I think that in terms of our relations, we continue to have engagement at all levels within the Pakistani Government. And we certainly respect the review process that’s underway and we look forward to the results, and then we’ll be willing to discuss some of the issues raised by that. But as to this incident, I don’t have any comment.
Yeah.
QUESTION: On Burma?
MR. TONER: I’m sorry. Burma. Yeah, sure.
QUESTION: The bi-elections, of course, are coming up this weekend.
MR. TONER: Of course.
QUESTION: Aung San Suu Kyi overnight made some remarks about the elections, saying that while obviously Burma is not a perfect democracy yet, but that what’s – what she saw as problems, irregularities, and that that’s well beyond what’s acceptable. What’s your read so far? What’s the State Department’s read so far on the elections –
MR. TONER: I’m sorry, just to go back to the tail end of what her comments were --
QUESTION: Sure. Saying that the level of irregularities were not acceptable. What’s the State Department’s read on how the bi-elections are going?
MR. TONER: Well, again, we just have – as you guys all know very well, that we’re going to have representatives of the National Democratic Institute as well as the International Republican Institute who are going to actually be on the ground – I believe they actually are on the ground – to observe the – Sunday’s elections. We view that, in and of itself, this invitation to – of the international community to observe the elections, as a – as something that’s positive in terms of the country’s democratic development.
They’ve been very clear that they cannot do a proper election observation in that short a window, but certainly, we’ll look forward to their analysis leading up to it. I think we have raised our concerns, though, about – going into this about some of the irregularities that we’ve seen. But we’re going to have folks on the ground on Sunday to observe how they’re carried out.
QUESTION: Sure. Just to expand on that a little bit --
MR. TONER: Yeah, sure.
QUESTION: I mean, is there – the overall conduct of these, that you’ve raised concerns about some irregularities, is – I mean, is – at this point, do you see it as credible? Do you see the by-elections as – or is it too early to judge?
MR. TONER: Well, I think – no, I think – first of all, this is a really – this is an important moment for Burma. These by-elections would demonstrate – if they are seen as free and fair – would demonstrate the government’s continued commitment to democratization. So we certainly want to see free and fair elections on Sunday. This would certainly propel further momentum in our bilateral relations, but we have noted some of these irregularities, and we’re just going to – as we move forward through Sunday, we’re going to assess.
QUESTION: Speaking of the bilateral relationship, how is the process of trying to establish an embassy going there?
MR. TONER: Well, it’s ongoing. I mean, we talked a little bit about this yesterday. If you’re asking about naming an ambassador --
QUESTION: (Inaudible)
MR. TONER: What? Oh, of course. Thank you, Matt. (Laughter.) We do have an embassy. I jumped to the conclusion you’re talking about naming an ambassador, and that’s really something for the White House. Thank you, Matt.
Yeah. Go ahead, Said.
QUESTION: Iraq?
MR. TONER: Yes, sir.
QUESTION: In fact, the northern region of Kurdistan. The president of the northern region of Kurdistan, Masoud Barzani, is coming to town. I think he arrives tomorrow. And --
MR. TONER: And you want to know if we’re meeting with him and what we’re doing with him?
QUESTION: Yeah, exactly. Is the Secretary –
MR. TONER: I’ll find out for you, Said.
QUESTION: Please, yeah.
MR. TONER: I don’t have that in front of me. Thanks, though.
QUESTION: Thank you.
QUESTION: A different topic?
MR. TONER: Yeah, go ahead.
QUESTION: Mali.
MR. TONER: Yeah.
QUESTION: The coup leader, if you want to call – yeah, the coup leader – Captain Sonogo, is, I believe, his name – he made a statement saying – appealing for help, saying that there’s quite a drastic situation with the rebellion, the Tuareg rebellion. What’s the level of concern that the U.S. has with this situation in Mali, both the –
MR. TONER: Well --
QUESTION: -- since the coup and with the rebellion?
MR. TONER: Well, we are very concerned. You saw that ECOWAS heads of state held an emergency meeting in Abidjan yesterday, and they presented the mutineers with an ultimatum that they must step down and return Mali to constitutional rule within 72 hours. And if they don’t comply, ECOWAS is going to impose economic, financial, and – financial and other sanctions on Mali. And these would include, I believe, closing the borders with ECOWAS countries and freezing Mali’s account within the West African Central Bank.
We echo ECOWAS’s call for the mutineers to step down and allow for a swift return to democratic rule and for presidential elections to – ultimately to take place. We have seen these reports you’re talking about, advances by the Tuareg rebels. We are very concerned. Toria spoke to this last week when she said that if these mutineers are so concerned, then why are they occupied with events in Bamako rather than pressing the fight against the Tuaregs in the north of Mali.
So we are very concerned about this. I know ECOWAS has offered to mediate between the Tuaregs and the Government of Mali. And we do recognize that these mutineers have some grievances against the government, but their actions to date have not been the right way to get – have anyone to address those grievances in any kind of productive way.
QUESTION: Has the situation risen to the level of needing a Security Council meeting?
MR. TONER: I simply don’t know where the discussion is on that yet. I mean, we believe that ECOWAS has taken an appropriate leadership role to date on this.
QUESTION: But if we get to Monday and the general is still holding press conferences and talking to any media come --
MR. TONER: We still believe there’s time for this to reverse itself and for democratic rule to return to Mali and for elections to take place.
QUESTION: And what do you know about the security of the president right now?
MR. TONER: I don’t know. I don’t have any updates on his whereabouts. We’ve been told he’s secure and safe, but I don’t have any confirmation of that.
QUESTION: And you will have – now having had a week, you have those numbers for us?
MR. TONER: I believe we’re getting close on those numbers.
QUESTION: Oh? Where – how close would that be?
MR. TONER: We’ll release them at 8 o’clock tonight, how about that? (Laughter.)
QUESTION: How about 4:00 in the morning?
MR. TONER: That’s right. (Laughter.)
QUESTION: Just on --
QUESTION: North Korea --
MR. TONER: Point taken, Matt. We – I can’t say it enough that these are complicated. Military assistance has stopped and we’re de-conflicting all of the assistance that goes directly to the Malian Government. But these are pots of money within programs, and it simply takes time for us to --
QUESTION: Yeah, but five days?
MR. TONER: I appreciate your thoughtful analysis.
Yes.
QUESTION: Just if I may, a quick follow – Shaun’s question on Burma quickly?
MR. TONER: Yeah.
QUESTION: Burmese community here – I meant what they are saying is that they’ve been waiting for a free Burma for the last 20-plus years and they are optimistic that as far as free and fair elections, unless U.S. really takes a closer look and gets involved because that’s what happened in the 1990 elections when she – Aung San Suu Kyi was cheated or her party. So what’s new or different now in the previous 1990 elections and today – I mean, this coming one?
MR. TONER: Well, we’re taking a step-by-step approach in Burma. You are very well aware we’ve had the Secretary out there visiting. We’ve had this positive momentum in the relationship. The government has indeed taken many steps, including the freeing up of – or the freeing of political prisoners inter alia that have led us to engage with the Burmese Government. But we’re obviously going to be looking to these elections on Sunday as another indication of what direction the country’s moving in.
QUESTION: But Mark, what they’re saying is that the international community, including the U.S., been dealing with the dictator for the last 20 years. How come?
MR. TONER: I’m sorry. What are you – I didn’t hear the last question, that we’ve been --
QUESTION: The international community and the U.S. been dealing with a dictator, a military dictator.
MR. TONER: I don’t think that’s true at all. We’ve had a very strong sanctions program against Burma. We have had this period of the two-track approach, and we believe its borne fruit.
Yeah. Go ahead.
QUESTION: Yeah. One more thing going back to the Palestinian issue --
MR. TONER: Yeah.
QUESTION: Today is Land Day. It’s a day that the Palestinians celebrate every year. And Israel imposed very severe restrictions on the movement of people, and there are actually some violent clashes that the Israeli Army committed against the Palestinian demonstrators. I wonder if you have a comment on that.
MR. TONER: Well, we certainly don’t want to see any violence on a – by either side. We certainly, as you all know, support the rights of people everywhere to protest peacefully, and so we would just call for restraint.
QUESTION: They actually imposed a great many closures. I mean, people are not able to move from one place to another. They closed the West Bank, Gaza --
MR. TONER: No, I’m aware of those. And again, we would want people to be able to peacefully protest, of course.
Yeah. In the back.
QUESTION: Mark, I recall last time when the Secretary of State was in Armenia, she mentioned that it’s up to Turkey now to make a step towards reconciliation. I think she said, “The ball is on Turkey’s side.” I was wondering if this is the same message that this building is trying to deliver to Ankara authorities as well.
MR. TONER: You know what? Let me, frankly, take the question. I mean, I know that we continue to look for movement on this issue, but as to where it is exactly and where that ball is, let me take the question.
QUESTION: North Korea?
MR. TONER: Yeah.
QUESTION: For modern times some uncharacteristically tough language from Tokyo about this planned missile launch in mid-April. Has the U.S. talked to Tokyo about its threats to intervene militarily to keep this from happening?
MR. TONER: You’re talking about which comments specifically?
QUESTION: That they’ve authorized this response if North Korea goes ahead with its planned satellite launch.
MR. TONER: Well, of course, we consult extremely closely with Japan, with our other allies in the region, and we’re certainly understanding of their concerns, which is why we’ve been so vocal about asking or telling North Korea that this planned missile launch is a mistake, that they should back away from it, and that it’s jeopardizing the Leap Year agreement.
QUESTION: That is certainly different from what Chinese officials were saying, which is basically, “North Korea, reconsider what you’re doing.” This is actually elevating or escalating the rhetoric, as it were. Does that worry this building at all?
MR. TONER: Well, again, let’s be very clear that it’s the intentions stated by North Korea that are elevating tensions, which is why we are asking them to back away from that decision.
QUESTION: Is this building telling Tokyo that perhaps it should be a little more careful in its language if trying to manage the situation is the goal here?
MR. TONER: Look, we continue to consult very closely with the Japanese on this situation, and as I said, we share their concerns.
QUESTION: Was there any sense that Tokyo could make good on its threats?
MR. TONER: That’s a question for Japan.
Yeah. Go ahead.
QUESTION: On North Korea. The State Department has consistently been saying that they are working to encourage North Korea to back away. Concretely, what has this meant? What forms has this encouragement taken?
MR. TONER: Well, I mean, we’ve been very publicly vocal about our concerns and the fact that this launch, if it goes forward, would call into question the credibility of all North Korea’s commitments. So beyond that, we continue to consult with our allies and partners within the Six-Party process about next steps. I know China and others have also been vocal as well about expressing their concerns.
Yeah.
QUESTION: I – forgive me if I’ve missed this detail, but could you give me a rundown of exactly what contact the U.S. has had with North Korea since the announcement of the launch? I remember on March 16th, a few hours before North Korea put out their statement --
MR. TONER: That’s correct.
QUESTION: -- they had contacted the U.S. though the New York channel.
MR. TONER: That’s correct. And as far as I’m aware – I have not spoken with Glyn Davies in a couple of days, but I’m not aware that we’ve had any contact with them since then. I can check.
Yeah. In the back.
QUESTION: Yeah. For old time’s sake if I get to ask a question, there’s a report in Foreign Policy by Mark Perry that the Israelis are – have a deal with Azerbaijan to use military bases, air bases there, as a contingency perhaps to attack Iran. Does the U.S. State Department have any comment on that?
MR. TONER: We do not. Nope. I took this question yesterday, and I said the same thing. You know where we are in terms of Iran, and the President’s been very clear that we believe there’s still time for diplomacy to work here. We want to see Iran return to the negotiating table willing to address the international community’s concerns about its nuclear program in a real, substantive, and ongoing manner – not just one meeting but indeed a process here where we can really discuss and reach agreement on these issues.
QUESTION: Have you raised it with the Azerbaijanis?
MR. TONER: We have not.
QUESTION: Thank you.
QUESTION: Back to North Korea.
MR. TONER: Sure.
QUESTION: Is the U.S. planning to have any direct communication or meetings with the North Koreans before this proposed launch in mid-April?
MR. TONER: Again, we continue to consult with our Six-Party allies and partners. I don’t have anything to preview for you in terms of direct conversations with North Korea. It’s not something we usually do, in fact.
QUESTION: Okay. And one on Japan, please?
QUESTION: There’s been no contact through – there’s been no contact through the New York channel?
MR. TONER: No. I just said I’m not aware of – the last is what she cited, which is the conversation we had up to – right before North Korea decided to make its announcement.
Yeah. Sure.
QUESTION: On Japan and the Koreas. Secretary Clinton, at the beginning of this month, said as soon as possible she wanted to have a trilateral meeting with the U.S., Japan, and South Korea. Has a date been set for that?
MR. TONER: I’m not aware that a date has been set. Once we have something to announce, we’ll let you know. But I don’t think it has been.
QUESTION: Okay. Is there an intention to try to schedule it around the time that a lot of Japanese officials will be coming here in April, including foreign minister --
MR. TONER: It could be. I mean, we always look for – look, I don’t have a date for you, simply put. I mean, we try to, obviously, accommodate foreign leaders as well as the Secretary’s own schedule as much as we can.
Is that it?
QUESTION: Just one quick one. I just got – today, there was a hearing for this Dr. Fai as far as his connection working for Pakistan. He has been sentenced for 24 months because his connection with Pakistan and working against the U.S. Any comments on that?
MR. TONER: I don’t have any comments.
QUESTION: Thank you, sir. And finally, Secretary, are you buying any Mega tickets? (Laughter.)
MR. TONER: Oh yeah. I wish. (Laughter.) You wouldn’t see me at the podium on Monday, if that were the case. (Laughter.)
QUESTION: Thank you, Mark.

U.S. TO SEND $200 MILLION IN HUMANITARIAN AID TO SAHEL REGION OF AFRICA

The following excerpt is from a U.S. State Department e-mail: 
Humanitarian Assistance to Sahel Region
Press Statement Hillary Rodham Clinton
Secretary of State Washington, DC
March 29, 2012
The United States is deeply concerned about the humanitarian emergency in the Sahel region of Africa. Around 10 million people are in need of emergency assistance due to erratic rainfall, failed harvests, high food prices and conflict across the region that includes Burkina Faso, Chad, Mali, Mauritania, and Niger. In response to current needs, including protection and assistance for refugees, and to prevent a potentially much more serious situation, I am pleased to announce that the United States is providing an additional $120 million in emergency assistance. With these funds, the U.S. Government is providing nearly $200 million this fiscal year in humanitarian assistance to the Sahel region.

We are currently providing targeted humanitarian assistance that addresses acute malnutrition and hunger and builds resilience, and we are also focused on long-term approaches to establish lasting food security. We are making highly nutritious therapeutic food available for malnourished children. In addition to providing life-saving food, we are working to help vulnerable families and communities buy locally-available food and services, while developing small-scale projects and infrastructure that can help build the resilience necessary to withstand future drought.

In partnership with other donors, we have taken early action in response to early warnings. We are targeting specific pockets of great need while working toward sustainable, longer term development. Together, we are saving lives, mitigating impact, and building resilience.

U.S. EMBASSY IN MADAGASCAR RECEIVES GREEN BUILDING CERTIFICATION

The following excerpt is from a U.S. State Department e-mail:
Bureau of Overseas Buildings Operations Announces LEED® Silver Certification for U.S. Embassy in Antananarivo, Madagascar
Media Note Office of the Spokesperson Washington, DC
March 27, 2012
The Bureau of Overseas Buildings Operations announced today that the Green Building Certification Institute (GBCI) has awarded the newly constructed U.S. Embassy in Antananarivo, Madagascar the Silver Level of Leadership in Energy and Environmental Design (LEED®) Certification.

This U.S. Embassy is the first building in Madagascar to earn LEED® Certification, and only the fifth LEED® certified building in Africa, four of which are U.S. diplomatic facilities.

Antananarivo joins U.S. Embassies and Consulates in Sofia, Bulgaria; Panama City, Panama; Johannesburg, South Africa; Brazzaville, Republic of the Congo; and Ouagadougou, Burkina Faso as LEED® certified U.S. diplomatic facilities.

The embassy was designed to reduce energy costs by incorporating sun shades for the façade, occupancy sensors, and solar hot water. The building conserves water through the installation of low-flow and low-flush plumbing fixtures. All consumed water is treated at an on-site wastewater treatment plant. The cleansed water is reused for irrigation and infiltrated on-site, replenishing the ground water.

LEED® certification is the recognized standard for measuring building sustainability. LEED® certified buildings are designed to lower operating costs while increasing asset value, reduce waste sent to landfills, conserve energy and water, be healthier and safer for occupants, and reduce harmful greenhouse gas emissions.

The Embassy in Antananarivo was constructed by B.L. Harbert International of Birmingham, Alabama; and designed by Page Southerland Page of Arlington, Virginia. Mechanical, electrical and plumbing design was completed by H&A Architects and Engineers of Glen Allen, Virginia.

Since 1999, as part of the Department’s Capital Security Construction Program, OBO has completed 88 new diplomatic facilities and has an additional 41 projects in design and construction. The program has successfully moved more than 27,000 people in safer facilties, furthering OBO’s mission to provide safe, secure and functional facilities that represent the U.S. Government to the host nation and support our staff in the achievement of U.S. foreign policy objectives. These facilities should represent American values and the best in American architecture, engineering, technology, sustainability, art, culture, and construction execution.

BUZZ AND LORI ADDRESS THE SMITHSONIAN

The following photo and excerpt are from the NASA website:
NASA Deputy Administrator Lori Garver addresses the audience with Buzz Lightyear, left, of the film "Toy Story" at the Smithsonian National Air and Space Museum's Moving Beyond Earth Gallery, Thursday, March 29, 2012, in Washington. Launched May 31, 2008 aboard the space shuttle Discovery (STS-124) and returned on Discovery 15 months later with STS-128, the 12-inch action figure is the longest serving toy in space and became part of the museum's popular culture collection. Image Credit: NASA/Paul E. Alers

SPACE: THE STABLE ENVIRONMENT FRONTIER

The following excerpt is from the U.S. State Department website:
Laying the Groundwork for a Stable and Sustainable Space Environment
Remarks Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance United Nations Institute for Disarmament Research, Space Security Conference
Geneva, Switzerland
March 29, 2012
Thank you for the kind introduction. It is my pleasure to be back in Geneva, speaking at what has become one of my favorite conferences to discuss space security. This year’s theme, “Laying the Groundwork for Progress,” seems to me to be particularly fitting when we consider the efforts that have been, and will be, underway this year to ensure the long-term sustainability, stability, safety, and security of the space environment.

Before I discuss the approaches towards ensuring space security that we can and are taking today, I’d like to look at how we are using space today and consider the consequences of a future without access to space. Today, several nations use communications satellites to enable health services for remote segments of their populations. Dubbed “telehealth,” the satellite link provides patients with access to the medical knowledge and experience necessary to diagnose conditions and prescribe treatment. For example, Burkina Faso, one of several West African nations using telehealth, relies upon donated transponder time to transmit abnormal ultrasound images from village clinics to specialists in a few regional hospitals. Communication satellites have a direct impact on Burkina Faso’s women and children, and the loss of this service could greatly affect the country’s ability to meet its health care delivery needs.

The use of communications satellites to transmit health care data across countries and across the globe is only one of the many uses of space on which we rely. Telephone calls, news reports, television broadcasts, and financial transactions are also relayed through satellites. Financial markets, power grids, and wireless, satellite, cable, and broadcast industries all use GPS satellites for precise timing, and ships, planes, automobiles, and individual people use them for navigation. Meteorological satellites provide weather and environmental forecasts, while remote-sensing satellites provide imagery used in agriculture, resource exploration, land use planning, treaty verification, and disaster relief, amongst other things. Clearly the use of space assets and the information we derive from them permeate almost every aspect of our daily lives. The telehealth scenario I have just mentioned is only one example of how important the utilization of space is, and clearly shows that the loss of space systems, even for a short period of time, can have damaging consequences. Extrapolating from this, we must ask ourselves “What will the consequences be if the space environment were to become unusable?”

Recognizing the need to prevent such a future, and to ensure the long-term sustainability and stability of the space environment, the question becomes “What can we do today to ensure that the generations that come after us can access and benefit from space?” I’m sure that each speaker on this panel, and probably in this conference, would answer this question slightly, if not very, differently. Some of us would suggest we pursue legally-binding arms control agreements. While the United States is prepared to engage in substantive discussions on space security as part of a Conference on Disarmament’s consensus program of work, and is willing to “consider” space arms control proposals and concepts that are equitable, effectively verifiable, and enhance the national security of the United States and our allies, we have not yet seen a proposal that meets these criteria. However, it is important to focus on those areas that unite us rather than divide us. While each speaker may have differing views on how to best ensure stability and security in space, there are many ways forward in which we do agree. It is in those areas, I believe, we should focus on making progress in the near term.

Orbital Debris Mitigation
Considering the serious and long-lasting threat posed by orbital debris, I think we can all agree that cooperation is necessary to address and mitigate this growing problem. The fact was illustrated by events this past weekend, when the astronauts on the International Space Station were forced to take shelter when a piece of debris came close to the station. Had that debris collided with the space station, it could have caused catastrophic damage to the station and placed the lives of the crew at serious risk.

In 2002, international guidelines to minimize debris were established by the Inter-Agency Space Debris Coordination Committee. These guidelines served as the basis for similar guidelines then adopted by the Committee on the Peaceful Uses of Outer Space (COPUOS) and endorsed by the United Nations General Assembly. It is important that we continue to make progress in encouraging nations to adopt and implement these guidelines.

From a national perspective, we in the United States also recognize the importance of preventing collisions between satellites and/or orbiting objects, due to the resulting debris creation. The United States is currently reaching out to all space-faring nations and organizations to ensure that our Joint Space Operations Center, or JSpOC, has current contact information for both government and private sector satellite operations centers to provide notifications of potentially hazardous conjunctions. In 2011 alone, we provided over 1,100 notifications to nations around the world, including Russia and China.

UNCOPUOS
We can also all agree that there is great value in efforts to adopt best practice guidelines through “bottom-up” initiatives developed by government and private sector satellite operators, such as the work done in the multi-year study of “long-term sustainability of space activities” within the Scientific and Technical Subcommittee (STSC) of UNCOPUOS. The STSC Working Group on the Long-Term Sustainability of Outer Space Activities is a key forum focusing on the international development of “best practices guidelines” for space activities, in particular in the areas of space debris, space operations, and space situational awareness. The United States believes that many of the best practice guidelines addressed by this working group will be integral to international efforts to enhance spaceflight safety and to preserve the use of space for the long-term.

Transparency and Confidence-Building Measures
Finally, we can all agree that the development of near-term, voluntary, and pragmatic space transparency and confidence-building measures can enhance the stability and security of the space environment. TCBMs, whether they address important areas such as hazards to spaceflight safety and collision avoidance, or reduce tensions through the sharing of information, help to increase familiarity and trust and encourage openness among space actors. One opportunity for the international community to cooperate in this area is through the Group of Government Experts (or GGE) on Outer Space TCBMs, established by UN General Assembly Resolution 65/68. We look forward to working with our international colleagues this year in a GGE that serves as a constructive mechanism to examine voluntary and pragmatic TCBMs that have the potential to mitigate the dangers and risks in an increasingly contested and congested space environment, enhance stability and security, and promote responsible operations in space.

Another opportunity for the international community to cooperate on TCBMs is through the development and adoption of an “International Code of Conduct for Outer Space Activities.” As many of you are aware, on January 17, 2012, the United States announced that it had decided to join with the European Union and other spacefaring nations to develop an International Code of Conduct.

In her written statement announcing the decision, U.S. Secretary of State Hillary Clinton said, “the long-term sustainability of our space environment is at serious risk from space debris and irresponsible actors … Unless the international community addresses these challenges, the environment around our planet will become increasingly hazardous to human spaceflight and satellite systems, which would create damaging consequences for all of us.”

We were pleased that Japan, Australia, and other countries have also stated their support for the development of a Code of Conduct, and we encourage other spacefaring nations to consider playing an active role in the multilateral meetings of experts in 2012 that the European Union intends to schedule. We view the European Union’s draft Code of Conduct as a good foundation for developing a non-legally binding International Code focused on the use of voluntary and pragmatic TCBMs. An International Code of Conduct, if adopted, would establish a political commitment to reduce the hazards of accidental and purposeful debris-generating events and would increase the transparency of operations in space to minimize the danger of collisions, furthering cooperation in areas we all recognize as crucial for ensuring stability and sustainability in space. We look forward to engaging with the rest of the international community on this initiative in the months to come.

Looking Towards the Future
The world is increasingly interconnected through, and increasingly dependent on space systems. While there is no way of knowing when, or if, we will reach a “tipping point” when it comes to debris and our access to space, it is clear that the long-term sustainability of our space environment is at serious risk from space debris and irresponsible actors. Because of our disparate histories and situations, there will always be differing views on how to best ensure stability and sustainability in space. We should not focus on what divides us, but instead on those efforts we can agree to now that will lay the groundwork for progress and sustain space for future generations.

U.S. CHAIRMAN JOINT CHIEFS OF STAFF GEN. DEMPSEY SEEKS TO EXPAND MILITARY TIES TO BRAZIL

The following excerpt is from an American Forces Press Service e-mail:

Dempsey Looks to Expand Military Ties With Brazil

By Jim Garamone

ABOARD A U.S. MILITARY AIRCRAFT, March 29, 2012 - Army Gen. Martin E. Dempsey, on his way back from Brazil today, said he hopes to expand military-to-military relations with the country he said is "clearly, an economic engine globally."

The chairman of the Joint Chiefs of Staff said he was pleased with "wide-ranging" discussions he had with Brazilian Defense Minister Antonio Celoso Amorim and top-ranking military official Gen. Jose Carlos de Nardi.

Dempsey also flew yesterday to Bogota, Colombia, then directly to the headquarters of the Amazon Military Command in Manaus.

The U.S. relationship with Brazil is a partnership of equals, U.S. Southern Command officials said. After years of promise, Brazil's economy recently became the sixth largest in the world. With a population of 220 million, an educated workforce and abundant raw materials, the nation is poised to climb even higher.

National power is the aggregate of economic, diplomatic and military power, and Brazil already regards itself as an economic and diplomatic world power. Dempsey discussed how military power fits into the equation.

The leaders discussed common interests – transnational organized crime, border controls, intelligence sharing, technology transfers and cyber. "I went in hoping that we wouldn't get bogged down in a single weapons system or on technology transfer, and we didn't," Dempsey said.

The chairman said he was not surprised that Brazil has the same concern as the United States about cyber. "The better they do economically and the more influence they have internationally, the more they see what we see, which is cyber is both our greatest opportunity and our greatest vulnerability," he said, adding that cyber defense may be an area where the two military partners can work together.

Brazilian officials briefed the chairman on their military's deployments, which the country limits to only those in which there is a United Nations mandate Brazil commands the U.N. mission in Haiti and serves in various other peacekeeping missions, Brazilian leaders told Dempsey.

"They are concerned about the Mideast, the long-term implications of the Arab Spring, whether we think Iran will respond to sanctions," the chairman said. "They were interested in Libya and how the mission evolved from stopping the violence to trying to stabilize the land."

They also discussed the regional picture. Brazil is at ease with the relationships it has with all its neighbors. "They see Colombia in a special light because they feel Colombia has made significant progress in containing the FARC insurgency," Dempsey said. "That worried the Brazilians because they were afraid of spillover."

Brazilian leaders told Dempsey they must deal with transnational organized crime. Brazil is second only to the United States in cocaine consumption, officials said.