ARMY PSYCHIATRIST ACCUSED OF IN KILLING RAMPAGE SET FOR TRIAL AUGUST 20, 2012

FROM:  AMERICAN FORCES PRESS SERVICE

Hasan Trial Set for Aug. 20 as Judge Denies Continuance

From a Fort Hood News Release

FORT HOOD, Texas, June 29, 2012 - The trial of an Army psychiatrist accused of killing 12 soldiers and a civilian employee here in a Nov. 5, 2009, shooting rampage that left 30 others injured will start as scheduled Aug. 20, a military judge ruled today.

Army Col. Gregory Gross denied Maj. Nidal M. Hasan's request for a further continuance until December.

Gross also submitted to questioning from Hasan's defense counsel concerning whether he was biased against the accused and ruled that he was not and that no implied bias existed. After announcement of that ruling, defense counsel stated their intention to appeal the military judge's refusal to recuse himself to the Army Court of Criminal Appeals.

In another matter pertaining to the case, the judge ruled that the commanding general of 3rd Corps and Fort Hood and his staff judge advocate must make themselves available for a joint interview by defense counsel concerning the referral of the case for trial by court-martial.

Hasan was not present in court today and viewed the proceedings via a closed-circuit feed in a trailer next to the courthouse. The judge announced that Hasan still was not clean-shaven as required by Army regulations, that the Army had declined to grant him a religious accommodation for the beard, and that the Army Court of Criminal Appeals refused to hear his appeal of the judge's decision last week to remove him from the courtroom because of the beard.

The judge is expected to rule on other pending motions and take up any new motions at a hearing scheduled for July 6.

U.S. RELATIONS WITH MOLDOVA

Map Credit:  U.S. Department Of State.
FROM:  U.S. STATE DEPARTMENT
Bureau of European and Eurasian Affairs
Fact Sheet
June 14, 2012
U.S.-Moldova Relations
Following the dissolution of the Soviet Union, the United States recognized the independence of Moldova on December 25, 1991 and opened an Embassy in its capital, Chisinau, in March 1992. The United States supports the sovereignty and territorial integrity of the Republic of Moldova and on that basis supports the 5+2 negotiations to find a comprehensive settlement that will provide a special status for the separatist region of Transnistria within Moldova. The United States co-chairs the Community of Democracies’ Task Force for Moldova which provides international support to priority areas in Moldova's transition to democracy.

U.S. Assistance to Moldova
U.S. government assistance aims to help Moldova strengthen its democratic institutions, increase prosperity, secure its internationally recognized borders, and integrate with Europe and the Euro-Atlantic community. In 2010, the United States and Moldova signed a $262 million, 5-year Millennium Challenge Corporation compact for economic development and investment projects in irrigation infrastructure, high-value agricultural production, and road rehabilitation.

Bilateral Economic Relations
As a country with a small market, Moldova benefits from liberalized trade and investment and wants to promote the export of its goods and services. A U.S.-Moldovan trade agreement providing reciprocal most-favored-nation tariff treatment took effect in 1992. The same year, an Overseas Private Investment Corporation agreement was signed, encouraging U.S. private investment in Moldova through direct loans and loan guarantees. A bilateral investment treaty was signed in 1993. The United States granted Moldova generalized system of preferences status in 1995, and some Eximbank coverage became available the same year.

Moldova's Membership in International Organizations
Moldova is a member of the United Nations, the Organization for Security and Cooperation in Europe, the North Atlantic Cooperation Council, the International Monetary Fund, the World Bank, the World Trade Organization, the GUAM Organization for Democracy and Economic Development, and the North Atlantic Treaty Organization's Partnership for Peace program. The current Government of Moldova seeks closer integration with Europe and is currently negotiating an Association Agreement, a Deep and Comprehensive Free Trade Area, and a visa liberalization plan with the European Union.

FIREFIGHT IN AFGHANISTAN'S GHANZNI PROVINCE, JUNE 15,2012

FROM:  U.S. DEPARTMENT OF DEFENSE
U.S. paratroopers fire at insurgent forces during a firefight on the outskirts of Spedar village in southern Afghanistan's Ghazni province, June 15, 2012. This was the first of several firefights U.S. and Afghan soldiers encountered during their daylong partnered patrol. The soldiers are assigned to the 82nd Airborne Division's Company D, 1st Battalion, 504th Parachute Infantry Regiment, 1st Brigade Combat Team. U.S. Army photo by Sgt. Michael J. MacLeod

NEW HEALTH CARE LAW IMPLEMENTATION MOVES FORWARD

Photo:  President Obama Signs Affordable Care Act Into Law.  Credit: White House. 
FROM:  U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICE
The Administration makes resources available to help states implement Affordable Insurance Exchanges.
Health and Human Services Secretary Kathleen Sebelius announced today a new funding opportunity to help states continue their work to implement the health care law -- the Affordable Care Act.  When the law is fully implemented in 2014, the affordable insurance exchanges will provide people and small businesses with one-stop shops to find, compare and purchase affordable, high-quality health insurance.  Today’s announcement makes more funding available to build all models of affordable insurance exchanges available to states. HHS also issued further guidance today to help states understand the full scope of activities that can be funded under the available grant funding as they work to build exchanges.

“The federal government and our state partners are moving forward to implement the health care law,” Secretary Sebelius said.  “This new funding opportunity will give states the resources they need to establish affordable insurance exchanges and ensure Americans are no longer on their own when shopping for insurance.”

The funding opportunity announced today will provide states with 10 additional opportunities to apply for funding to establish a state-based exchange, state partnership exchange, or to prepare state systems for a federally facilitated exchange.  To date, 34 states and the District of Columbia have received approximately $850 million in Exchange Establishment Level One and Level Two cooperative agreements to fund their progress toward building exchanges.

Under the new announcement, states can apply for exchange establishment cooperative agreements through the end of 2014. These funds are available for states to use beyond 2014 as they continue to work on their exchanges. This ensures that states have the support and time necessary to build the best exchange for their residents.

The guidance HHS issued today provides information on the exchange-building activities that states can fund with establishment cooperative agreements.
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HHS will conduct regional implementation forums in coming months to assist states and stakeholders on the work to be done in building exchanges, and to address their questions.  HHS will also engage with tribes, tribal governments, and tribal organizations on how exchanges can serve their populations.

For more information on exchanges, including fact sheets, visithttp://www.healthcare.gov/news/factsheets/2011/05/exchanges05232011a.html

SEC. OF STATE CLINTON CONGRATULATES SOMALIANS ON SOMALIA NATIONAL DAY

FROM:  U.S. DEPARTMENT OF STATE
Somalia's National Day
Press StatementHillary Rodham Clinton
Secretary of StateWashington, DC
June 30, 2012
On behalf of President Obama and the people of the United States, I am delighted to send best wishes to the people of Somalia as you celebrate your 52nd independence day this July 1.  


Over the past year, progress has been made toward stability in Somalia.  The Transitional Federal Government and Somalia’s regional governments helped mitigate the effects of drought and famine, improve security and access to assistance for Somalis displaced by the drought and al Shabaab’s violence, and made real political progress to conclude the transitional process.  Thanks to the ongoing efforts by the Somali National Security Forces and the African Union Mission in Somalia, Mogadishu and its surrounding areas are largely free from al-Shabaab, and its influence in southern and central Somalia is waning.


As you celebrate your Independence Day, know that you have a dedicated partner in the people of the United States.  Our support for Somalia and the Somali people will continue beyond the end of the transition.  We stand with the people of Somalia on your path toward peace, stability, prosperity. 

DEFENSE BRIEFING ON THE MIDDLE EAST

FROM:  AMERICAN FORCES PRESS SERVICE

Defense Leaders Provide Middle East Update

By Cheryl Pellerin

WASHINGTON, June 29, 2012 - Steady progress is being made in dealing with challenges in the Middle East, Defense Secretary Leon E. Panetta and Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, told Pentagon reporters in a briefing here today.

Topics included the situation between U.S. ally Turkey and the internally embattled Syria, a rescheduled U.S.-Israeli military exercise, an upcoming DOD visit to Iraq, and continuing discussions with military leaders in Pakistan.

"We continue to be concerned about developments in Syria," Panetta said, referring to ongoing violence between the brutal authoritarian regime of Bashar Assad and determined opposition groups, and the movement of Turkish military assets to the Syrian border after the June 22 shootdown by Syrian forces of a Turkish Phantom F-4 fighter and its two-member aircrew.

The secretary said Secretary of State Hillary Rodham Clinton is engaged in discussions with U.S. allies in the region, including Turkey.

"Turkey is one of our allies in that region," Panetta said. "We continue to be in close discussions with them with regard to how we best approach the situation in Syria."

Dempsey said he had a recent conversation with his Turkish counterpart, Chief of the General Staff Gen. Necdet Ozel, adding, "He's taking a very measured approach to the incident. ... He and I are staying in contact."

Also in the region, the chairman said the United States and Israel have rescheduled a joint military exercise called Austere Challenge.

Dempsey said a final decision on the exercise date will be determined during a current visit to Israel by Undersecretary of Defense for Policy James N. Miller.

In Iraq, where the level of violence increased this month, Panetta said discussions continue with the Iraqis on the threat from al-Qaida terrorists.

"We've seen increased violence [and] ... we share the concern of the Iraqis with regard to that increased violence," the secretary said, adding, "We're going to continue to work with them to ... improve their ability to be able to deal with those kinds of threats."

Before leaving Iraq, he added, U.S. forces worked in great cooperation on this problem.

"We've continued to work with their security forces but we think it's really important now that we try to bring that cooperation even closer together to make sure that these kinds of threats are dealt with directly," Panetta said.

Dempsey said Marine Corps Gen. James N. Mattis, commander of U.S. Central Command, had high-level consultative talks with the Iraqis earlier this year and Panetta hosted a May 23 meeting at the Pentagon with Iraqi Acting Minister of Defense Saadoun al-Dulaymi.

"What we're doing is charting a way ahead, actually, on the potential for exercises, the things we talked about at the closing ceremony" in December 2011, the chairman said, adding that he plans a visit to Iraq later this year.

Discussions also continue between American and Pakistani officials over the reopening of Pakistan supply routes -- called ground lines of communication, or GLOCs -- into Afghanistan, and the breakup of Pakistan safe havens for militant groups like the Haqqani network, Panetta said.

"We continue to have a line of communication with the Pakistanis to try to see if we can take steps to reopen the GLOCs," Panetta said, adding, "The good news is that there continue to be those discussions."

Tough issues still need to be settled, the secretary said.

"I think the important thing right now is that both sides, in good faith, keep working to see if we can resolve this," he said.

Marine Corps Gen. John R. Allen, commander of the International Security Assistance Force and U.S. Forces-Afghanistan, met recently with Pakistani Army Chief of Staff Gen. Ashfaq Parvez Kayani, the secretary said.

"I think [Allen] made clear that both the United States and Pakistan have to work together to deal with the threat from the Haqqanis," Panetta said, adding that Kayani seemed receptive to U.S. concerns.

"After all," the secretary said, "they, too, have been victims of terrorism. They lost 17 Pakistanis on a patrol to the [Tehrik-e Taliban Pakistan] ... so we have a common enemy. It would make sense if we could work together to confront that common enemy."

PRESIDENT OBAMA DECLARES OHIO DISASTER

Photo Credit:  White House. 

FROM:  FEDERAL EMERGENCY MANAGEMENT AGENCY

WASHINGTON, D.C. -- The U.S. Department of Homeland Security's Federal Emergency Management Agency announced that federal emergency aid has been made available to the state of Ohio to supplement state and local response efforts due to the emergency conditions resulting from severe storms beginning on June 29, 2012, and continuing.

The President's action authorizes the Department of Homeland Security, Federal Emergency Management Agency (FEMA), to coordinate all disaster relief efforts which have the purpose of alleviating the hardship and suffering caused by the emergency on the local population, and to provide appropriate assistance for required emergency measures, authorized under Title V of the Stafford Act, to save lives and to protect property and public health and safety, and to lessen or avert the threat of a catastrophe in all 88 counties in the State of Ohio.

Specifically, FEMA is authorized to identify, mobilize, and provide at its discretion, equipment and resources necessary to alleviate the impacts of the emergency.  Emergency protective measures limited to direct federal assistance, will be provided at 75 percent federal funding.

W. Michael Moore has been named as the Federal Coordinating Officer for federal recovery operations in the affected area. 

MINNESOTA, NEVADA RECEIVE MILLIONS TO TURN AROUND LOWEST-PERFORMING SCHOOLS

Photo Credit:  Wikimedia.
FROM:  U.S. DEPARTMENT OF EDUCATION
Minnesota to Receive Nearly $6 Million to Turn Around Lowest-Performing Schools
U.S. Secretary of Education Arne Duncan today announced that Minnesota will receive $5.9 million to turn around its persistently lowest-achieving schools through the Education Department's School Improvement Grants (SIG) program.

The funds are part of $535 million provided through the fiscal year 2011 budget and made available to states under the program. To date, Minnesota has received $44.9 million since the SIG program was redesigned in 2009.

Nevada to Receive $3.5 Million to Turn Around Lowest-Performing Schools
U.S. Secretary of Education Arne Duncan today announced that Nevada will receive $3.5 million to turn around its persistently lowest-achieving schools through the Education Department's School Improvement Grants (SIG) program.

The funds are part of $535 million provided through the fiscal year 2011 budget and made available to states under the program. To date, Nevada has received $30.4 million since the SIG program was redesigned in 2009.

"We've stood on the sidelines for too long as our lowest-performing schools failed our children year after year," said Duncan. "The School Improvement Grants program is providing courageous school leaders and teacher teams in more than 1,300 schools nationwide with the means to accomplish the very difficult work of turning around some of our hardest to serve schools."

When a school system applies to a state for SIG funding, it must indicate that it will implement one of four intervention models in each of its persistently lowest-achieving schools, based on school needs:
Turnaround Model: Replace the principal, screen existing school staff, and rehire no more than half the teachers; adopt a new governance structure; and improve the school through curriculum reform, professional development, extending learning time, and other strategies.
Restart Model: Convert a school or close it and re-open it as a charter school or under an education management organization.

School Closure: Close the school and send the students to higher-achieving schools in the district.
Transformation Model: Replace the principal and improve the school through comprehensive curriculum reform, professional development, extended learning time, and other strategies.

P5 # 3 AND THERMAL NUCLEAR WAR AVOIDANCE

Photo:  Hiroshima Students Monument.  Credit:  Wikimedia.
FROM:  U.S. DEPARTMENT OF STATE
Third P5 Conference: Implementing the NPT
Media Note Office of the Spokesperson Washington, DC
June 29, 2012
Following is the text of a joint statement issued by China, France, Great Britain, Russia, and the United States of America at the conclusion of the Third P5 Conference: Implementing the NPT June 27-29, 2012 in Washington, DC.
Begin text:

The five Nuclear Nonproliferation Treaty (NPT) nuclear-weapon states, or “P5,” met in Washington on June 27-29, 2012, in the wake of the 2009 London and 2011 Paris P5 conferences to review progress towards fulfilling the commitments made at the 2010 NPT Review Conference, and to continue discussions on issues related to all three pillars of the NPT – nonproliferation, the peaceful uses of nuclear energy and disarmament, including confidence-building, transparency, and verification experiences.

The P5 reaffirmed their commitment to the shared goal of nuclear disarmament and emphasized the importance of working together in implementing the 2010 NPT Review Conference Action Plan. The P5 reviewed significant developments in the context of the NPT since the 2011 Paris P5 Conference. In particular, the P5 reviewed the outcome of the 2012 Preparatory Committee for the 2015 NPT Review Conference, continued their discussion of how to report on their relevant activities, and shared views, across all three pillars of the NPT, on objectives for the 2013 Preparatory Committee and the intersessional period. The 2012 PrepCom outcome included issuance of a P5 statement comprehensively addressing issues in all three pillars (NPT/CONF.2015/PC.I/12).

The P5 continued their previous discussions on the issues of transparency, mutual confidence, and verification, and considered proposals for a standard reporting form. The P5 recognize the importance of establishing a firm foundation for mutual confidence and further disarmament efforts, and the P5 will continue their discussions in multiple ways within the P5, with a view to reporting to the 2014 PrepCom, consistent with their commitments under Actions 5, 20, and 21 of the 2010 RevCon final document.
Participants received a briefing from the United States on U.S. activities at the Nevada National Security Site. This was offered with a view to demonstrate ideas for additional approaches to transparency.

Another unilateral measure was a tour of the U.S. Nuclear Risk Reduction Center located at the U.S. Department of State, where the P5 representatives have observed how the United States maintains a communications center to simultaneously implement notification regimes, including under the New Strategic Arms Reduction Treaty (New START), Hague Code of Conduct Against Ballistic Missile Proliferation (HCOC), and Organization for Security and Co-operation in Europe (OSCE) Vienna Document.

The P5 agreed on the work plan for a P5 working group led by China, assigned to develop a glossary of definitions for key nuclear terms that will increase P5 mutual understanding and facilitate further P5 discussions on nuclear matters.

Photo:  Missile Warning  System.  Credit U.S. Navy.

The P5 again shared information on their respective bilateral and multilateral experiences in verification, including information on the P5 expert level meeting hosted by the UK in April, at which the UK shared the outcomes and lessons from the UK-Norway Initiative disarmament verification research project. The P5 heard presentations on lessons learned from New START Treaty implementation, were given an overview of U.S.-UK verification work, and agreed to consider attending a follow-up P5 briefing on this work to be hosted by the United States.

As a further follow-up to the 2010 NPT Review Conference, the P5 shared their views on how to discourage abuse of the NPT withdrawal provision (Article X), and how to respond to notifications made consistent with the provisions of that article. The discussion included modalities under which NPT States Party could respond collectively and individually to a notification of withdrawal, including through arrangements regarding the disposition of equipment and materials acquired or derived under safeguards during NPT membership. The P5 agreed that states remain responsible under international law for violations of the Treaty committed prior to withdrawal.

The P5 underlined the fundamental importance of an effective International Atomic Energy Agency (IAEA) safeguards system in preventing nuclear proliferation and facilitating cooperation in the peaceful uses of nuclear energy. The P5 discussed concrete proposals for strengthening IAEA safeguards, including through promoting the universal adoption of the Additional Protocol; and the reinforcement of the IAEA’s resources and capabilities for effective safeguards implementation, including verification of declarations by States.

Photo:  Missile Interceptor.  Credit:  U.S. Air Force.

The P5 reiterated their commitment to promote and ensure the swift entry into force of the Comprehensive Nuclear-Test-Ban Treaty (CTBT) and its universalization. The P5 reviewed progress in developing the CTBT’s verification regime in all its aspects and efforts towards entry into force. Ways to enhance the momentum for completing the verification regime, including the on-site inspection component, were explored. The P5 called upon all States to uphold their national moratoria on nuclear weapons-test explosions or any other nuclear explosion, and to refrain from acts that would defeat the object and purpose of the Treaty pending its entry into force. The moratoria, though important, are not substitutes for legally binding obligations under the CTBT.

The P5 discussed ways to advance a mutual goal of achieving a legally binding, verifiable international ban on the production of fissile material for use in nuclear weapons. The P5 reiterated their support for the immediate start of negotiations on a treaty encompassing such a ban in the Conference on Disarmament (CD), building on CD/1864, and exchanged perspectives on ways to break the current impasse in the CD, including by continuing their efforts with other relevant partners to promote such negotiations within the CD.
The P5 remain concerned about serious challenges to the non-proliferation regime and in this connection, recalled their joint statement of May 3 at the Preparatory Committee of the NPT.

An exchange of views on how to support a successful conference in 2012 on a Middle East zone free of weapons of mass destruction was continued.

The P5 agreed to continue to meet at all appropriate levels on nuclear issues to further promote dialogue and mutual confidence. The P5 will follow on their discussions and hold a fourth P5 conference in the context of the next NPT Preparatory Committee.
End text.

RUSSIAN NAVY PARTICIPATES IN RIM OF THE PACIFIC EXERCISE

120629-N-WX059-039 JOINT BASE PEARL HARBOR-HICKAM (June 29, 2012) The Russian Navy Udaloy-class destroyer RFS Admiral Panteleyev (BPK 548) arrives at Joint Base Pearl Harbor-Hickam to participate in the Rim of the Pacific (RIMPAC) exercise 2012. Twenty-two nations, 42 ships, six submarines, more than 200 aircraft and 25,000 personnel will participate in the biennial RIMPAC from June 29 to Aug. 3, in and around the Hawaiian Islands. The world's largest international maritime exercise, RIMPAC provides a unique training opportunity that helps participants foster and sustain the cooperative relationships that are critical to ensuring the safety of sea-lanes and security on the world's oceans. RIMPAC 2012 is the 23rd exercise in the series that began in 1971. (U.S. Navy photo by Mass Communication Specialist 3rd Class Sean Furey/Released)
Russian navy rfs admiral pantelevevU.S. Navy photo by Mass Communication Specialist 3rd Class Sean Furey

UNDERWATER SOLAR CELL RESEARCH

FROM:  DEPARTMENT OF DEFENSE ARMED WITH SCIENCE
Power density of GaInP and crystalline silicon cells, underwater, as a function of depth. (U.S. Naval Research Laboratory) 

Written on JUNE 30, 2012 AT 7:13 AM by JTOZER
Tapping Into Underwater Solar Energy
Scientists at theU.S. Naval Research Laboratory,Electronics Science and Technology Division, dive into underwater photovoltaic research to develop high bandgap solar cells capable of producing sufficient power to operate electronic sensor systems at depths of 9 meters.

Underwater autonomous systems and sensor platforms are severely limited by the lack of long endurance power sources.  To date, these systems must rely on on-shore power, batteries orsolar power supplied by an above water platform.
Attempts to use photovoltaics have had limited success, primarily due to the lack of penetrating sunlight and the use of solar cells optimized more towards the unimpeded terrestrial solar spectrum.

“The use of autonomous systems to provide situational awareness and long-term environment monitoring underwater is increasing,” said Phillip Jenkins, head, NRL Imagers and Detectors Section. “Although water absorbs sunlight, the technical challenge is to develop a solar cell that can efficiently convert these underwater photons to electricity.”

Even though the absolute intensity of solar radiation is lower underwater, the spectral content is narrow and thus lends itself to high conversion efficiency if the solar cell is well matched to the wavelength range.

Previous attempts to operate solar cells underwater have focused on crystalline silicon solar cells and more recently, amorphous silicon cells.

High-quality gallium indium phosphide (GaInP) cells are well suited for underwater operation. GaInP cells have high quantum efficiency in wavelengths between 400 and 700 nanometers (visible light) and intrinsically low dark current, which is critical for high efficiency in lowlight conditions.

The filtered spectrum of the sun underwater is biased toward the blue/green portion of the spectrum and thus higher bandgap cells such as GaInP perform much better than conventional silicon cells, states Jenkins.

Preliminary results at a maximum depth of 9.1 meters reveal output to be 7 watts per square meter of solar cells, sufficient to demonstrate there is useful solar power to be harvested at depths commonly found in nearshore littoral zones.
Information for this story provided by the Naval Research Laboratory

SEC CHARGES SOFTWARE COMPANY WITH BRIBERY

FROM:  SECURITIES AND EXCHANGE COMMISSION
SEC Charges Long Island Software Company in Connection with Bribery Scheme
On June 27, 2012, the Securities and Exchange Commission (“Commission”) charged that FalconStor Software, Inc., a Long Island, N.Y., data storage company, misled investors about bribes it paid to obtain business with a subsidiary of J.P. Morgan Chase & Co. FalconStor has agreed to pay a $2.9 million civil penalty to settle the Commission’s case.

The Commission’s complaint, filed in federal district court in the Eastern District of New York, alleges that from October 2007 through July 2010, the Company’s co-founder and then-chief executive officer, president and chairman, who is now deceased (the “CEO’), ordered the bribes, which were paid to three executives of the subsidiary, JPMorgan Chase Bank, National Association, and their relatives. The bribes given and offered, which totaled approximately $430,000, included grants of FalconStor options and restricted stock, direct cash payments, gift cards, payment of golf club fees, and lavish entertainment, including gambling in Macau and Las Vegas casinos. The CEO resigned in September 2010, after admitting that he had been involved in improper payments to a customer.

The complaint further alleges that shortly after the bribes began, FalconStor secured a direct, multi-million dollar, contract with JPMC, which then became one of FalconStor’s largest customers and a major source of FalconStor’s revenue during the relevant period. Thereafter, on several quarterly earnings calls and in two earnings releases filed with the Commission on Forms 8-K in April 2008 and February 2009, the CEO touted FalconStor’s large, direct contract with JPMC as a vindication of the quality and desirability of FalconStor’s products and proof of its strides in moving to direct sales rather than relying on third-party distributors. FalconStor never disclosed that JPMC’s business resulted, in whole or in part, from the inducements that it was lavishing on JPMC’s employees.

The complaint also alleges that the Company also granted restricted stock and options to relatives of two of the executives even though the recipients provided no bona fide services to the Company and the grants were thus not covered by the Company’s registered Incentive Stock Plan. In addition, the Company failed to accurately record the expenses associated with the bribes on its books and records, and failed to devise or implement a system of effective internal accounting controls to detect or prevent the bribes, which violated state law and were inconsistent with the Company’s policies.

The complaint charges FalconStor with violating the books-and-records and internal controls provisions of the Securities Exchange Act of 1934, Sections 13(b)(2)(A) and 13(b)(2)(B), and the offering registration provisions and certain antifraud provisions of the Securities Act of 1933, Sections 5(a), 5(c), and 17(a)(2) and (3).

FalconStor has agreed to settle this matter by consenting to a court order permanently enjoining it from violating Sections 5(a), 5(c), and 17(a)(2) and (3) of the Securities Act and Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act; ordering it to pay a civil monetary penalty of $2.9 million; and ordering it to comply with certain undertakings. The proposed settlement is subject to court approval.

FalconStor is a Delaware corporation headquartered in Melville, New York. The Company also maintains offices in California, and throughout Europe, Asia and Australia. FalconStor’s common stock trades on NASDAQ under the symbol FALC.

The Commission thanks the U.S. Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation, and acknowledges to cooperation of the New York County District Attorney’s Office in this investigation.

IMAGE FROM THE INTERNATIONAL SPACE STATION

FROM:  NASA
Psychedelic Space
This is a composite of a series of images photographed from a mounted camera on the Earth-orbiting International Space Station, from approximately 240 miles above Earth. Expedition 31 Flight Engineer Don Pettit said of the about photographic techniques used to achieve the images: "My star trail images are made by taking a time exposure of about 10 to 15 minutes. However, with modern digital cameras, 30 seconds is about the longest exposure possible, due to electronic detector noise effectively snowing out the image. To achieve the longer exposures I do what many amateur astronomers do. I take multiple 30-second exposures, then ‘stack’ them using imaging software, thus producing the longer exposure." A total of 18 images photographed by the astronaut-monitored stationary camera were combined to create  this composite.
Image Credit: NASA

U.S & AFRICA COUNTER-DRUG COOPERATION

FROM:  AMERICAN FORCES PRESS SERVICE 
A team from the guided-missile cruiser USS Anzio and the U.S. Coast Guard dispose of bags of illegal narcotics from a vessel they boarded on Oct. 15, 2009. The team seized and disposed of more than four tons of hashish while conducting counter-piracy operations off the coast of Somalia. Photo by Petty Officer 1st Class Matthew Bash  

U.S. Paves Way for African Counter-Drug Cooperation, Success
By Donna Miles
STUTTGART, Germany, June 29, 2012 - Last October, when U.S. Africa Command was garnering unprecedented international attention during its campaign to protect Libyan civilians from Moammar Ghadafi's violent crackdown against a rebellion, the command achieved another, less headline-dominating victory.

Police in Cape Verde, a small group of islands off Africa's west coast, seized an estimated 3,300 pounds of cocaine in the country's largest-ever drug bust. The cocaine had originated in South America and was transiting through Cape Verde bound for Europe, Africom officials said.

And as confirmed by an International Institute for Strategic Studies report in April, proceeds from shipments like this one are a major funding source for terrorist activities.
Thanks in large part to the new Africom-funded Counter-Narcotics and Maritime Security Operations Center in Cape Verde, profits from the $100 million in captured cocaine there never made it into terrorists' hands.

The center, built with about $1.5 million from Africom and formally presented to the Cape Verdean government in May 2010, is enabling the country's police, coast guard and military to collaborate more closely to crack down on illicit trafficking, piracy and other transnational threats, U.S. Coast Guard Capt. Mark Huebschman said.

"We feel that interagency center was a key asset that helped facilitate this very significant drug seizure," Huebschman, chief of Africom's counternarcotics and law enforcement assistance division, told American Forces Press Service.

The center features inter-island communications relays that give Cape Verdean government agencies and offices the ability to share information and coordinate their activities against narco-trafficking and other illegal activities, Huebschman explained.

To complement its operations, the United States also helped Cape Verde upgrade its tiny, four-craft patrol boat fleet and donated another small high-speed vessel.

As a result, Cape Verde is better equipped to monitor and patrol its vast territorial waters and economic exclusion zone, with the United States providing only a supporting role, Huebschman said.

Army Gen. Carter F. Ham, Africom's commander, called these efforts an example of the capacity-building initiatives that are helping Africans to solve African problems.

Testifying before the House Armed Services Committee in February, Ham called narcotics trafficking a destabilizing influence throughout Africa, particularly in West Africa.

"The Africans are not the overall consumers of these drugs that are coming from Central and South America," he told the House panel. "But they are the transit point for the narcotics that go into Europe."

Yet the consequences impact Africa directly, he said, breeding corruption and undermining good governance wherever illegal narcotics flow. "That," he told Congress, "works contrary to our national interests."

U.S. Navy Petty Officer 3rd Class Brandon Tysinger searches the cargo of a vessel during a boarding on Oct. 15, 2009. The team seized and disposed of more than four tons of hashish. Photo by Petty Officer 1st Class Matthew Bash  

As narco-traffickers move cocaine shipments through West Africa, their counterparts in Afghanistan and Pakistan are increasingly funneling heroin shipments through East Africa, Huebschman reported. In addition, traffickers are beginning to pay couriers in drugs rather than cash, he said, creating new local markets for drugs on the continent.

Africom is working with its African partners to confront narcotrafficking head-on, while also drawing on resources and expertise from its staff representatives from the Drug Enforcement Agency, Immigration and Customs Enforcement, FBI and Coast Guard, all of which have reach-back to their agencies in the United States.
"This is really a problem we have approached through a whole-of-government effort," Huebschman said.

The efforts run the gamut, from training to building capacity within partners' civilian law enforcement agencies or equipment for them to operate, to minor construction projects to establish bases for their operations.

"We also do projects that promote information sharing, like computer systems and telecommunications systems," Huebschman said. "All are geared toward providing these law enforcement agencies with an enhanced capability to be able to attack these drug-trafficking organizations."

For example, officials used high-tech full-body scanners provided by Africom and ICE-led training to interdict a drug courier at one of Nigeria's international airports almost immediately after putting the system into operation, Huebschman reported. The scanners have proven so successful in supporting Nigeria's counter-narcotics efforts that the United States last year removed Nigeria from its list of major illicit drug-producing and drug-trafficking countries.

Meanwhile, Africom continues to promote cooperation among its African partners so they can provide a unified front to address the problem.

For example, law enforcement officials from seven West African countries met in Sierre Leone in December to explore ways to curtail drug trafficking in the region. The conference, organized by the U.S. State and Justice departments under the auspices of the West Africa Cooperative Security Initiative, focused heavily on the need to combat transnational organized crime activities, particularly corruption, in West Africa.
A new strategy document developed through that initiative is designed to take this effort to the next level by leveraging ongoing efforts by international partners and organizations: G8 partners, The European Union, the African Union and the Economic Community of West African States, among them.

"We're trying to approach this problem from an international perspective, and to leverage all the resources and capabilities that these various countries and agencies bring to this challenging problem," Huebschman said.

Meanwhile, rather than basking in the glory of their recent cocaine interdiction, the Cape Verdeans are continuing to exercise with their counterparts from the United States and Europe to improve their maritime security operations.

They recently took part in the multinational Saharan Express 2012 exercise, part of the Africa Partnership Station mission focused on combating illicit activities -- such as illegal fishing, narcotics-trafficking and piracy -- that are endangering the maritime security in many of the participant nations.

Ten regional militaries participated in the training, conducted off the coasts of Cape Verde, Mauritania, Senegal and The Gambia, with scenarios that included visit, board, search and seizures, search-and-rescue scenarios, medical casualty and radio communication drills, and information management practice techniques.
"We live in a world that is confronted with many problems like piracy, drug trafficking, terrorism, organized crime," said Col. Alberto Ferdandes, chief of staff for the Cape Verde armed forces. "It's necessary for each of us to find a solution to respond to these problems in an efficient manner, we need to have a communal response and it is important that we are all prepared so we can produce a unified action."

"We all know that illegal fishing threatens the food security of our countries," agreed Senegalese Chief of Naval Staff Adm. Mohamed Sane. "Illegal acts like immigration, arms trafficking, pollution, piracy and terrorism threaten social stability. No maritime power can face these challenges alone."

MILITARY RECRUITMENT REMAINS ON TARGET

Photo Credit:  Wikimedia.

FROM:  AMERICAN FORCES PRESS SERVICE

Recruiting Remains on Target for Active Components

WASHINGTON, June 29, 2012 - All four active services met or exceeded their numerical accession goals for fiscal 2012 through May, Defense Department officials announced today.
Here is the breakdown:
-- Army: 37,953 accessions, 101 percent of its goal of 37,700;
–- Navy: 21,160 accessions, 100 percent of its goal of 21,160;
-- Marine Corps: 14,457 accessions, 100 percent of its goal of 14,418; and
-- Air Force: 18,952 accessions, 100 percent of its goal of 18,952.
All four services exhibited strong retention through the eighth month of the fiscal year, officials said.


Also, five of the six reserve components had met or exceeded their numerical accession goals for the fiscal year through May:
-- Army National Guard: 32,542 accessions, 95 percent of its goal of 34,092;
-- Army Reserve: 18,237 accessions, 104 percent of its goal of 17,595;
-- Navy Reserve: 5,056 accessions, 100 percent of its goal of 5,056;
-- Marine Corps Reserve: 5,896 accessions, 106 percent of its goal of 5,583;
-- Air National Guard: 5,669 accessions, 100 percent of its goal of 5,655; 100 percent; and
-- Air Force Reserve: 5,691 accessions, 100 percent of its goal of 5,691.
All reserve components are on target to achieve their fiscal year attrition goals, officials said.

PRESIDENT OBAMA THANKED FIREFIGHTERS, VOWS TO MARSHAL FEDERAL GOVERNMENT

Photo:  Colorado Fire.  Credit:  U.S. Air Force Photo By Master Sgt. Jeremy Lock

FROM:  AMERICAN FORCES PRESS SERVICE
Obama: Employ All Resources to Fight Colorado Wildfires
WASHINGTON, June 30, 2012 - As President Barack Obama thanked firefighters and volunteers, and met with impacted families in wildfire-devastated areas in and around Colorado Springs, Colo., yesterday, he also vowed to marshal all federal resources -- including military -- to combat the fires.

"We're going to continue to make sure that the Federal Emergency Management Agency, the Forest Service, our military and National Guard and all the resources that we have available at the federal level are brought to bear in fighting this fire," Obama said today in his weekly video address to the nation. He recorded this week's address during his Colorado visit.

The federal government has marshaled thousands of firefighters, hundreds of fire engines, and more than 100 aircraft, including 19 air tankers, to support firefighting efforts in a number of Western states including Colorado, White House officials noted.
Meanwhile, four Department of Defense C-130 aircraft equipped with U.S. Forest Service Modular Airborne Fire Fighting Systems and under the command and control of U.S. Northern Command are assisting in the efforts to control fires in the Rocky Mountain region at the request of the National Interagency Fire Center in Boise, Idaho, according to a Northcom news release issued today.

Northcom, based at Peterson Air Force Base, Colo., partners with other agencies to conduct homeland defense, civil support and security cooperation to defend and secure the United States and its interests.

Four additional MAFFS-equipped aircraft will be arriving later today to assist with firefighting efforts within the Rocky Mountain region, the Northcom release said.
As of early today, DOD aircraft have flown the following wildfire fighting missions in Colorado:

-- Waldo Canyon Fire, near Colorado Springs, Colo.: Fifty air drops, employing approximately 133,500 gallons of flame retardant;
-- Flagstaff Fire, near Boulder, Colo.,: Five air drops, employing about 13,200 gallons of flame retardant; and

-- Arapahoe National Forrest Fire, Colo.,: Six air drops, employing approximately 13,250 gallons of flame retardant.

Military units that conducted those missions are the 302nd Airlift Wing, Air Force Reserve, Peterson Air Force Base, Colo., and the Wyoming Air National Guard's 153rd Airlift Wing based in Cheyenne. Both units are currently flying missions out of Peterson Air Force Base, Colo.

The California Air National Guard's 146th Airlift Wing, from Channel Islands, and the North Carolina Air National Guard's 145th Airlift Wing, from Charlotte, will soon join the 153rd and the 302nd, military officials said.

This is the first time since 2008 that all eight military aircraft have been activated at one time, said Air Force Col. Jerry Champlin, 153rd Air Expeditionary Group commander. In that year, the aircraft were stationed at McClellan Airpark in Sacramento, Calif., to fight fires in that state.

Champlin, a member of the Wyoming Air National Guard, has tactical control over the MAFFS aircraft.
Although all eight C-130s will operate from Peterson Air Force Base for now, where they will drop fire retardant depends on the daily situation in the region, officials said. The U.S. Forest Service also may choose to base one or more aircraft in other operating areas.

BOSTON

FROM:  U.S. NAVY
Sailors and Marines assigned to the amphibious assault ship USS Wasp (LHD 1) stand at attention while manning the rails prior to the ship's arrival to Boston for the annual celebration of Fleet Week. The eight-day event coincides with the commemoration of the Bicentennial of the War of 1812 and will host more than 6,000 service members from the Navy, Marine Corps and Coast Guard team in addition to coalition ships from around the world. U.S. Navy photo by Mass Communication Specialist Seaman Apprentice Markus Castaneda (Released) 120628-N-WI365-100

USS CONSTITUTION IN BOSTON HARBOR

FROM:  U.S. NAVY
Performers march during the "Sunset Parade" at the site of the USS Constitution during Boston Navy Week 2012. Boston Navy Week is one of 15 signature events planned across America in 2012. The eight-day long event commemorates the Bicentennial of the War of 1812, hosting service members from the U.S. Navy, Marine Corps and Coast Guard and coalition ships from around the world. U.S. Navy photo by Mass Communication Specialist 2nd Class Jason Daniel Johnston (Released) 120629-N-RJ303-581

120629-N-RJ303-539 BOSTON (June 29, 2012) Spectators watch performers during the "Sunset Parade" at the site of the USS Constitution during Boston Navy Week 2012. Boston Navy Week is one of 15 signature events planned across America in 2012. The eight-day long event commemorates the Bicentennial of the War of 1812, hosting service members from the U.S. Navy, Marine Corps and Coast Guard and coalition ships from around the world. (U.S. Navy photo by Mass Communication Specialist 2nd Class Jason Daniel Johnston/Released)

COLORADO GOVERNOR HICKENLOOPER SELECTS COMMANDER TO OVERSEE WILDFIRE RESPONSE

Photo:  C130 Fighting Wildfire.  Credit:  U.S. Air Force.
FROM:  AMERICAN FORCES PRESS SERVICE
Commander to Oversee Colorado Wildfire Response
By Jim Greenhill
National Guard Bureau
ARLINGTON, Va., June 29, 2012 - A National Guard dual-status commander has been recently appointed to support wildfire response and relief efforts in Colorado, according to Defense Department and National Guard officials.

Air Force Col. Peter J. Byrne -- director of the joint staff, Joint Force Headquarters-Colorado -- was selected by Colorado Gov. John Hickenlooper in agreement with Secretary of Defense Leon E. Panetta, the Colorado National Guard reported.
"The dual-status commander will coordinate military firefighting efforts in the state," Hickenlooper said. "This commander operates as the liaison to make sure that we can take federal assets and airmen, soldiers, bulldozers, helicopters, Modular Airborne Firefighting Systems aircraft and get whatever tool we need."

Byrne, who is a Colorado resident, will work with fire incident commanders.
When agreed upon by the secretary of defense and the governor of an affected state, dual-status commanders can direct both federal active duty forces and state National Guard forces in response to domestic incidents, Defense Department officials said.
The unity of effort is intended to foster greater cooperation among federal and state military assets during a disaster.

The dual-status commander concept was most recently used in support of the NATO Summit in Chicago in May.

Byrne is a command pilot with more than 2,500 military flying hours and more than 145 combat hours, officials said. He was commissioned in 1984 and joined the Colorado Air National Guard in 1991.

"Working hand in hand with active duty forces is something the National Guard has performed seamlessly for more than 10 years in overseas missions," Byrne said. "Though the circumstances are tragic, bringing this experience of partnership to help friends, family and neighbors is a rewarding and natural extension of this valuable relationship."
According to Defense Department officials:

The nation's governors led the creation of this new opportunity for collaboration. Dual-status commanders ensure that state and federal military forces work together effectively together when states request federal forces. Through this improved partnership, military forces responding to the wildfires will be better able to avoid duplication of effort and support the needs of the incident and the American people.

The dual-status commander concept was codified in 2011, with 10 USC - 12304 as the usual and customary command and control arrangement for missions involving the simultaneous deployment of active duty, Reserve and National Guard forces in support of civilian authorities during major disasters and other emergencies.

STATE DEPARTMENT OFFICIAL TESTIFIES ON TRADE EXPANSION IN AFRICA

FROM:  U.S. STATE DEPARTMENT
Economic Statecraft: Embracing Africa's Market Potential
Testimony Johnnie Carson
Assistant Secretary, Bureau of African Affairs Washington, DC
June 28, 2012
Mr. Chairman and Members of the Committee:
Thank you for providing me with the opportunity to address the committee on what I feel is an important and timely topic. The U.S. Government is committed to expanding trade and investment in sub-Saharan Africa and the numbers show our commitment. U.S. trade to and from Africa has grown significantly in the past ten years. U.S. exports to sub-Saharan Africa tripled from just under $7 billion U.S. dollars in 2001 to over $21 billion dollars in 2011.

As Secretary of State Clinton said at the annual AGOA Forum two weeks ago: "twelve years ago, the United States passed the Africa Growth and Opportunity act because we believed that the countries of Africa had tremendous untapped economic potential that could and should be developed. We shared a vision with many of you of a future in which economic growth in Africa would fuel growth and prosperity worldwide…trade and investment would multiply…and people across the continent would have new opportunities to start their own businesses, earn higher salaries, improve their lives, and lift the fortunes of their families and communities."

In large part, this vision is becoming reality. It is my firm belief that Africa represents the next global economic frontier. Sub-Saharan Africa continues to weather the global economic crisis more successfully than other regions, and is home to six – and soon to be seven – of the ten fastest growing economies in the world. A recent McKinsey study documented that Africa offers the highest rate of return on foreign investment of any developing region and has for some years now. Consumer spending continues to rise, and 43 percent of Africans currently have discretionary income or could be considered middle class consumers. And a growing middle class is a market for American products – from ipads to Pampers to Caterpillar tractors which increase crop yields to GE turbines which create additional hours of on-grid electricity to Boeing airliners which facilitate African countries’ growing links with each other and with other continents.

However, we can do more. Africa's recent economic growth is impressive but the region still only accounts for approximately two percent of global trade. The second pillar of President Obama’s recently announced U.S. Strategy Toward Sub-Saharan Africa directs the Administration to "spur economic growth, trade, and investment in sub-Saharan Africa." This new approach recognizes that it is in the interest of both the United States and our African partners to improve the region’s trade competitiveness, encourage the diversification of exports beyond natural resources, and ensure sustained economic growth which benefits all sectors of society.

This new strategy elevates economic growth, trade, and investment issues by calling for increased U.S. focus to (1) promote an enabling environment for trade and investment ; (2) improve economic governance; (3) promote regional integration; (4) expand African capacity to effectively access and benefit from global markets; and (5) encourage U.S. companies to trade with and invest in Africa.

In addition to the President’s new U.S. Strategy Toward Sub-Saharan Africa, our efforts to increase our commercial engagement in Africa are firmly in line with Secretary Clinton's global focus on Economic Statecraft. The State Department's economic statecraft policy harnesses the forces of global economics to advance our diplomatic agenda and puts the tools of our diplomacy to work to meet our economic goals. We are committed to using every opportunity available to advance not only diplomatic and political priorities but our economic and commercial goals as well. I would like to highlight a few of the programs that the Bureau of African Affairs has been working on as we shift our economic orientation towards Africa from focusing almost exclusively on development assistance to promoting sustained economic growth through private sector, commercial, trade, and investment activities.

The African Growth and Opportunity Act continues to be the centerpiece of our trade policy with sub-Saharan Africa. It is Africa’s most important vehicle for market access and its unilateral trade preferences have created enormous goodwill for the United States on the continent. As you know, many African countries are not taking full advantage of the benefits of AGOA. However, some AGOA beneficiary countries take good advantage of the provisions for fabric and apparel product lines. The third country fabric provision component of AGOA was designed to provide an opportunity for AGOA-qualified countries to be more competitive in labor intensive textile processes such as sewing, stitching, and cutting fabric.

It was widely recognized that most African countries were not able to compete in the more capital intensive process of producing fabric from raw cotton. African manufacturers have successfully used the AGOA third country fabric provision to create jobs, not just in the manufacturing countries but have used this provision to create cross-border pan-African supply chains. These supply chains also encourage regional integration – one of our key goals for the continent. Fabric and apparel exports are the second largest AGOA export after extractive industry products. However, these imports still account for less than two percent of U.S. imports.

I’d like to say a few words about what is likely to happen if third country fabric legislation is not renewed. In our globally linked world, American buyers place orders six to nine to twelve months ahead. 95 percent of AGOA apparel and textile exports enter under the third country provision. And the AGOA third country fabric provision is the only way that African textile and apparel companies can remain competitive with larger producers such as China, Vietnam, and Bangladesh.

Without our help, jobs will continue to disappear in some of Africa’s most vulnerable economies, affecting primarily women and the families they support. Eighty-five percent of these imports come from just four countries: Lesotho, Kenya, Mauritius, and Swaziland. I know that diplomats from these countries have come to see you to emphasize the disproportionate effect that lack of renewal of this provision will have on their economies.

The effects of the loss of orders are troubling. At the AGOA Forum, the Swazi Minister for Trade told AGOA delegates that the loss of the provision will "shut the country down". The textile and apparel sector is the largest formal sector employer with over 15,000 jobs and employment is already 41 percent in this small, landlocked country. Loss of just one of these jobs means that ten people lose their livelihood, since Swazi officials calculate that each textile job directly supports ten people. Lack of orders have already led to plants closures in Namibia, robbing people of their legitimate livelihoods and governments of much needed tax revenues. The Mauritians report that their orders are down 30 percent since January due to the uncertainty whether this provision will be renewed in a timely fashion.

Madagascar’s loss of AGOA eligibility in 2009 is a possible model of what could happen if this provision were to expire. Prior to its loss of AGOA eligibility, Madagascar was one of the top textile producing countries in Africa, exporting over $2050 million in textiles in 2007. Due to 2009 coup, the Government of Madagascar lost all AGOA benefits, including the textile provision. Apparel exports plummeted by $150 million in 2010. This more than $150 million drop in textile exports resulted in the loss of 50,000 jobs which will more than likely never return.

We continue to actively educate, inform and encourage U.S. companies to be more active in Africa. This is a continent on the move and there are enormous opportunities for U.S. companies to enter the market, make money, and create jobs for Americans here at home.

In February, I led a trade mission to Mozambique, Tanzania, Nigeria, and Ghana with 10 U.S. energy companies ready to do business. A lack of reasonably priced reliable power remains one of the most binding constraints to economic growth throughout Africa. Governments across the continent are working to attract new trade and foreign investment that will sustain their rapid economic growth and build their middle class. The goal of this mission was to highlight opportunities for U.S. companies and help address a glaring need for increased power sector infrastructure in Africa. The mission was a success and a number of these U.S. companies concluded partnership agreements with African companies to jointly develop power projects. Ex-Im Bank and USTDA representatives also participated in the mission to ensure that both the U.S. participants and our Africa partners are fully aware of U.S. financing options. We are in the process of putting together a trade mission to accompany the Secretary to South Africa for the U.S.-South Africa Strategic Dialogue. In addition, I plan to lead similar trade missions in the future and continue to help and encourage U.S. companies to be a part of the growing economic dynamism of Africa.

In our continuing efforts to inform, educate and encourage U.S. companies to pursue commercial opportunities on the continent, just last week, the State Department, in collaboration with the Department of Commerce’s U.S. Export Assistance Center in Cincinnati, the Department of Transportion, the Ex-Im Bank, USTDA, USAID, USTR, and several other U.S. Government agencies, hosted a U.S.-Africa Business Conference in Cincinnati, Ohio. This conference attracted well over 400 participants, including African government officials, and representatives from the U.S. and African private sectors and civil society. The U.S.-Africa Business Conference expanded on the AGOA Forum infrastructure theme by focusing on infrastructure development, including energy, transportation, and water and sanitation. It showcased U.S. business expertise to potential African clients and highlighted trade and investment opportunities in Africa to U.S. exporters and investors through structured networking opportunities for African government officials and business leaders with U.S. state and local government officials and business leaders; informational sessions on U.S. Government opportunities and services from various federal agencies; and site visits to companies and research facilities highlighting potential technologies for Africa.

Cincinnati was selected as the conference location for its potential to increase commercial partnerships with Africa at local, state, and regional levels given its concentration of Fortune 500 and 1000 companies. I am pleased that the Cincinnati conference built on the successes of the 2010 Kansas City, Missouri business conference. Bringing African government officials and private sector representatives outside of the beltway allows us to more effectively focus on business-to-business linkages.

We also have two very popular programs which develop business capacity in Africa, the African Women’s Entrepreneurship Program (AWEP) and the President’s Young African Leaders Initiative. This year delegates from both programs participated in both our AGOA Forum and U.S.-Africa Business Conference events. AWEP is an outreach, education, and engagement initiative that targets African women entrepreneurs to promote business growth, increase trade both regionally and to the United States using AGOA, create better business environments, and empower African women entrepreneurs to become voices of change in their communities. The State Department organizes an annual AWEP professional exchange program for these women to improve their skills and has created a series of public-private partnerships with ExxonMobil, Intel, Vital Voices, and the Cherie Blair Foundation for Women.

This year’s President’s Young African Leaders Initiative included the Innovation Youth Summit and Mentoring Partnership with Young African Leaders and brought more than 60 participants to the U.S. for three weeks of professional exchange and entrepreneurial hands-on training. This initiative encourages U.S.-Africa collaboration to promote business innovation, investment, and corporate social responsibility activities in Africa.

However, there are still many barriers that stand in the way of companies that hope to do business there. In many places, corruption is too common. The cost of finance, including investment finance, is too high. Infrastructure is lacking or inadequate. Regulatory systems are often inconsistent and inefficient. Also, many U.S. businesses see African markets as too risky. The perception of Africa as poverty filled and strife ridden persists. We work closely with African governments so that they will continue to enact the kinds of reforms to support improved investment climates which will attract both domestic and foreign investment. In addition, we continue to highlight opportunities for trade and investment in the region for U.S. companies and to work with them to conclude deals. Our work with GE Transportation in Ghana on a locomotive tender where GE was ultimately able to win a deal worth $200 million in U.S. content is but one example. We are confident that the U.S. can compete effectively in Africa, but we have to continue to encourage American companies to go to Africa and we have to encourage African countries to continue to make their regulatory and business environment more conducive for American business. Greater U.S.-Africa trade is in the interest of both America and Africa.

Mr. Chairman and Members of the Committee, I want to thank you for the opportunity to appear before you today. I will be happy to answer any questions you have.