FROM: U.S. STATE DEPARTMENTBermuda is a British Overseas Territory with significant autonomy. U.S. policy toward the United Kingdom is the basis of U.S.-Bermuda relations. Bermuda has executed a Tax Information Exchange Agreement in a treaty between the United States, the United Kingdom, and Bermuda. The United States and the Government of Bermuda have signed a Mutual Legal Assistance Treaty, authorizing authorities in the U.S. and Bermuda to request and obtain assistance from each other in criminal investigations and prosecutions and related administrative and other proceedings. The treaty provides for cooperation between the U.S. and Bermuda in combating a wide variety of crimes, including economic crimes and money laundering, by facilitating the collection of evidence needed by authorities in one country but located within the other country. The U.S. Coast Guard provides search and rescue assistance to Bermuda as needed.
U.S. Assistance to BermudaThe United States provides no foreign assistance to Bermuda.
Bilateral Economic RelationsThe United States is Bermuda's principal trading partner. The economy is based primarily on international business and tourism. Bermuda is an important regional and global offshore financial center. It has large insurance and reinsurance sectors, with firms based in the jurisdiction writing significant volumes of business in the United States and United Kingdom. The government cooperates with the United States to prevent money laundering and terrorist financing. An estimated 8,000 registered U.S. citizens live in Bermuda, many of them employed in the international business community. There also are a large number of American businesses incorporated in Bermuda. Areas of opportunity for U.S. investment are principally in the reinsurance and financial services industries. U.S. visitors are critical to the island's tourism industry.
Bermuda's Membership in International OrganizationsThe United Kingdom is formally responsible for Bermuda's foreign and defense policy.
PROFILE
Geography
Area: 58.8 sq. km. (22.7 sq. mi.).
Cities (2000 census): Capital--Hamilton (pop. 3,461). Other city--St. George (pop. 3,306).
Terrain: Hilly islands.
Climate: Semi-tropical.
People
Nationality: Noun and adjective--Bermudian(s).
Population (2010 est.): 64,566.
Annual population growth rate (2009 est.): 0.31%.
Ethnic groups (2000): Black 63%, white and other 37%.
Religions (2000): Anglican 23%, Roman Catholic 15%, African Methodist Episcopal 11%, Seventh Day Adventist 7%, Methodist 4%, other 40% (none or not stated).
Language: English.
Education: Years compulsory--to age 18. Bermuda placed third overall of six developed nations (including the U.S.) in the 2005 Adult Literacy and Life Skills Survey.
Health (2009 est.): Infant mortality rate--2.46 per thousand. Life expectancy--men 77.2 yrs., women 83.72 yrs.
Work force 39,520: Professionals 19%; service workers/shop and market sales workers 19%; senior officials/managers 18%; clerks 17%; craft and related trade workers 10%; technicians/associated professionals 7%; plant and machine operators and assemblers 5%; elementary occupations (mostly simple and routine tasks) 4%; agriculture and fisheries workers 2% (2009).
Government
Type: British Overseas Territory with significant autonomy.
Constitution: June 8, 1968; amended 1989 and 2003.
Branches: Chief of State--Queen Elizabeth II, British monarch (head of state, represented by a governor). Head of Government--Premier, Paula Cox. Legislative--Senate (upper house, 11 members appointed by the governor, the premier, and the opposition); House of Assembly (lower house; 36 seats elected by popular vote). Judicial--Supreme Court.
Subdivisions: Nine parishes.
Political parties: Progressive Labor Party (PLP), United Bermuda Party (UBP), Bermuda Democratic Alliance (BDA).
Suffrage: Universal at 18.
Economy
GDP (current market prices, 2009): $5.7 billion. Sectors--26% ($1.543 billion) from international companies; 14% ($876 million) from real estate and rental; 12% ($923 million) from financial intermediation; 10% ($597 million) from business activities; 6% ($397 million) from education, health and social work; 8% ($435 million) from wholesale, retail trade, and repair services; 5% ($326 million) from public administration; 5% ($370 million) from construction and quarrying; 4% ($308 million) from the hotel and restaurant sector; 4% ($297 million) from transport and communications; and 1% each ($309 million) for manufacturing, utilities supply, and community/social/personal services; 3% other sectors.
GDP growth rate (2009): -8.1%.
Per capita nominal GDP (2009): $86,875.
Annual inflation rate (January 2011): 2.2%.
Natural resource: Limestone, used primarily for building.
Agriculture: Products--semitropical produce, dairy products, flowers, honey.
Industry: Types--re/insurance, financial services, tourism, structural concrete products, paints, perfumes, furniture.
Trade: Exports (2009, includes re-exports)--$28.7 million: pharmaceuticals, semitropical produce, light manufactures. Imports (2009)--$1.051 billion: food, clothing, household goods, chemicals, live animals, machinery, transport, and miscellaneous manufactures. Major suppliers--U.S. (68%), Canada (7%), United Kingdom (4%), Caribbean countries (2%), other (19%).
HISTORICAL HIGHLIGHTS
Bermuda is an archipelago consisting of seven main islands and many smaller islands and islets lying about 1,050 kilometers (650 mi.) east of North Carolina. The main islands--with hilly terrain and subtropical climate--are clustered together, connected by bridges, and are considered to be a geographic unit, referred to as the Island of Bermuda.
Bermuda was discovered in 1503 by a Spanish explorer, Juan de Bermudez, who made no attempt to land because of the treacherous reef surrounding the uninhabited islands.
In 1609, a group of British colonists led by George Somers was shipwrecked and stranded on the islands for 10 months. Their reports aroused great interest about the islands in England, and in 1612 King James extended the Charter of the Virginia Company to include them. Later that year, about 60 British colonists arrived and founded the town of St. George, the oldest continuously inhabited English-speaking settlement in the Western Hemisphere. When representative government was introduced to Bermuda in 1620, it became a self-governing colony.
Due to the islands' isolation, for many years Bermuda remained an outpost of 17th-century British civilization, with an economy based on the use of the islands' endemic cedar trees for shipbuilding and the salt trade. Hamilton, a centrally located port founded in 1790, became the seat of government in 1815.
Slaves from Africa were brought to Bermuda soon after the colony was established. The slave trade was outlawed in Bermuda in 1807, and all slaves were freed in 1834. Today, about 60% of Bermudians are of African descent.
The establishment of a formal constitution in 1968 bolstered internal self-government; debate about independence ensued, although a 1995 independence referendum was defeated. The government re-opened the independence debate in 2004.
GOVERNMENT AND POLITICAL CONDITIONS
Bermuda is the oldest self-governing overseas territory in the British Commonwealth. Its 1968 constitution provides the island with formal responsibility for internal self-government, while the British Government retains responsibility for external affairs, defense, and security. The Bermudian Government is consulted on any international negotiations affecting the territory. Bermuda participates, through British delegations, in the UN and some of its specialized and related agencies.
Government Structure
Queen Elizabeth II is head of state and is represented in Bermuda by a governor, whom she appoints. Internally, Bermuda has a parliamentary system of government.
The premier is head of government and leader of the majority party in the House of Assembly. The cabinet is composed of ministers selected by the premier from among members of the House of Assembly and the Senate.
The 36-member House is elected from 36 electoral districts (one representative from each district) for a term not to exceed 5 years. The Senate, or reviewing house, serves concurrently with the House and has 11 members--five appointed by the governor in consultation with the premier, three by the opposition leader, and three at the governor's discretion.
The judiciary is composed of a chief justice and associate judges appointed by the governor.
For administrative purposes, Bermuda is divided into nine parishes, with Hamilton and St. George considered autonomous corporations.
Political Conditions
Bermuda's first political party, the Progressive Labor Party (PLP), was formed in May 1963 with predominantly black adherents. In 1965, the two-party system was launched with the formation of the United Bermuda Party (UBP), which had the support of the majority of white voters and of some black voters. A third party, the Bermuda Democratic Party (BDP), was formed in the summer of 1967 with a splinter group from the PLP as a nucleus; it disbanded in 1970. It was later replaced by the National Liberal Party (NLP), which has since disbanded. In the fall of 2009 several UBP parliamentarians broke away from the party and in November formed a third party, the Bermuda Democratic Alliance (BDA).
Bermuda's first election held on the basis of universal adult suffrage and equal voting took place on May 22, 1968; previously, the franchise had been limited to property owners. In the 1968 election, the UBP won 30 House of Assembly seats, while the PLP won 10 seats and the BDP lost the 3 seats it had previously held. The UBP continued to maintain control of the government, although by decreasing margins in the Assembly, until 1998 when the PLP won the general election for the first time.
Following a bitter and divisive general election on December 18, 2007--which many predicted would be very close--the PLP under Premier Ewart Brown was returned to power with the same number of seats as it had going into the election. The opposition UBP lost its third successive election. The UBP elected member of parliament Kim Swan as opposition leader and Cole Simons as deputy. Mr. Swan is a first-time member of parliament whose previous public service was as a UBP senator.
Unsatisfied aspirations, particularly among young blacks, led to a brief civil disturbance in December 1977, following the execution of two men found guilty of the 1972-73 assassinations of Governor Richard Sharples and four others. In the 1980s, the increasing prosperity of Bermudians, combined with limited land area, caused a housing shortage. Despite a general strike in 1981 and economic downturn in the early 1980s, Bermuda's social, political, and economic institutions remained stable.
The PLP and UBP have both discussed the possibility of complete independence. An independence referendum called by a sharply divided UBP in the summer of 1995 was resoundingly defeated and resulted in the resignation of the premier and UBP leader, John Swan. Just over 58% of the electorate voted in the independence referendum, with over 73% voting against independence and only 25% in favor.
Eventual independence from the United Kingdom (U.K.) has been a goal of the PLP since the party's inception in 1963. In February 2004 then-Premier (and PLP party leader) Alex Scott announced his decision to commence an open and objective debate on the subject of independence. The government-appointed Bermuda Independence Commission held hearings island-wide where there was considerable focus on the mechanics of deciding independence, whether through an independence referendum, a general election, or some combination of the two. However, several recent polls indicated little support for independence.
Currently citizens of Britain's overseas territories, including Bermuda, are entitled to British citizenship. The British Overseas Territories Bill, passed in February 2002, provides automatic acquisition of British citizenship, including automatic transmission of citizenship to their children; the right of abode, including the right to live and work in the U.K. and the European Union (EU); the right not to exercise or to formally renounce British citizenship; and the right to use the European Union/European Economic Area (EU/EEA) channel at the airport. The U.K. has indicated that citizens of an independent Bermuda would no longer be automatically entitled to British citizenship and the EU benefits that accrue to it by this method.
There are no conditions attached to the grant of British citizenship to the overseas territories, a fact of particular importance to Bermuda where the issue of independence is being debated. A 1999 U.K. government White Paper states: "The new grant of British citizenship will not be a barrier, therefore, to those Overseas Territories choosing to become independent of Britain. Our Overseas Territories are British for as long as they wish to remain British. Britain has willingly granted independence where it has been requested; and we will continue to do so where this is an option."
Principal Government Officials
Head of State--Queen Elizabeth II
Governor--Richard Gozney
Premier--Paula Cox
Bermuda's interests in the U.S. are represented by the United Kingdom, whose embassy is at 3100 Massachusetts Avenue, NW, Washington, DC 20008; tel: 202-588-6500; fax: 202-588-7870. Bermuda also has an office at "Liberty Place," Suite 350, 325 7th Street NW, Washington, DC 20004.
The Bermudian Government's Department of Tourism has offices in London, New York, and Toronto.
ECONOMY
Bermuda has enjoyed steady economic prosperity since the end of World War II, although the island has experienced a recession since 2007, paralleling the global economic recession. Bermuda enjoys one of the highest per capita incomes in the world. Its economy is based primarily upon international business and tourism. In 2009, international business and tourism accounted for 74% of the total balance of payments current account receipts of foreign exchange. Generally, the role of international business in the economy has been expanding, whereas that of tourism has been contracting.
Bermuda is an important regional and global offshore financial center with a robust financial regulatory system. The Bermuda Monetary Authority (BMA) is designated as the supervisory and enforcement authority. The government cooperates with the United States and the international community to prevent money laundering and terrorist financing and continues to update its legislation and procedures in conformance with international standards. It is the third-largest reinsurance center in the world and the second-largest captive insurance domicile, with firms based in the jurisdiction writing significant volumes of business in the U.S. and U.K.
In 2010, 15,078 international companies were registered in Bermuda, many U.S.-owned. They are an important source of foreign exchange for the island, and spent an estimated $2 billion in Bermuda in 2009. The importance of international business is reflected in its share of GDP. This sector provided $1.5 billion in total output (current market prices), representing 26.1% of total GDP, or a 3.7% decrease compared to 2008. International business is no longer the island's largest employer, with 4,293 jobs in 2009, down from 4,761 in 2008. Provisional estimates for 2009 state that there were 4,758 jobs in wholesale and retail and repair services and 4,680 jobs in hotels and restaurants.
Historically important for employment and tax revenue, Bermuda's tourism industry had been experiencing difficulties for many years. The travel industry, particularly the airline sector, has been declining for decades. However, a total of 585,266 visitors arrived in 2010, up from 559,048 visitors in 2009. This was a direct result of an active year on the cruise and yacht front. Hotel occupancy rates averaged 54.0% in 2010, which represents an increase of 5.7% from 2009. Visitors contributed an estimated $383.9 million to the economy in 2010, up from $331.3 million in 2009. This compares to $475 million in 1996.
Bermuda has little in the way of exports or manufacturing; almost all manufactured goods and foodstuffs must be imported. The value of imports rose from $551 million in 1994 to $1.051 billion in 2009. The U.S. is Bermuda's primary trading partner, with $663 million in U.S. imports in 2009. The U.K., Canada, and the Caribbean countries also are important trading partners. Exports from Bermuda, including imports into the small free port that are subsequently re-exported, decreased from $35 million in 1993 to $28 million in 2009.
Duty on imports is a major source of revenue for the Government of Bermuda. In 2009-2010, the government obtained $225.4 million, or 24% of its revenue base, from import duties. Heavy importation duties are reflected in retail prices. Even though import duties are high, wages have kept up for the most part with the cost of living. Poverty was until very recently practically nonexistent; however, in 2007, 11% of the population was below the low-income threshold of $27,046 per year. Although Bermuda imposes no income, sales, or profit taxes, it does levy a real estate tax.
Bermuda is home to immigrants from other countries. According to the 2000 census, 79% of the population is Bermuda-born and 21% is foreign-born. U.K. immigrants comprise 28% of the immigrant population; U.S., 20% (although the U.S. Consulate estimates that the figure is closer to 40%); Canada, 15%; Caribbean, 12%; and Portugal/Azores, 10%. A new census was conducted in May 2010 with results to be released in 2011. In February 1970, Bermuda converted from its former currency, the pound, to a decimal currency of dollars pegged to the U.S. dollar.
FOREIGN RELATIONS AND U.S.-BERMUDIAN RELATIONS
The United Kingdom is formally responsible for Bermuda's foreign and defense policy. U.S. policy toward the U.K. is the basis of U.S.- Bermuda relations. In the early 20th century, as modern transportation and communication systems developed, Bermuda became a popular destination for wealthy U.S., British, and Canadian tourists. While the tariff enacted in 1930 by the U.S. against its trading partners ended Bermuda's once-thriving agricultural export trade--primarily fresh vegetables to the U.S.--it helped spur the overseas territory to develop its tourist industry, which is second only to international business in terms of economic importance to the island.
During World War II, Bermuda became a significant U.S. military site because of its location in the Atlantic Ocean. In 1941, the U.S. signed a lend-lease agreement with the U.K. giving the British surplus U.S. Navy destroyers in exchange for 99-year lease rights to establish naval and air bases in Bermuda. The bases consisted of 5.8 square kilometers (2.25 sq. mi.) of land largely reclaimed from the sea. The U.S. Naval Air Station was on St. David's Island, while the U.S. Naval Air Station Annex was at the western end of the island in the Great Sound.
Both bases were closed in September 1995 (as were British and Canadian bases), and the lands were formally returned to the Government of Bermuda in 2002.
The Government of Bermuda has begun to pursue some international initiatives independent of the U.K. in recent years pursuant to a General Entrustment Agreement. Bermuda signed a cultural memorandum of understanding with Cuba in 2003. The island also joined the Caribbean Community (CARICOM) as an associate member in 2003.
The U.S. Coast Guard (USCG) provided search and rescue assistance immediately following Hurricane Fabian in September 2003, but Bermuda declined subsequent offers of reconstruction assistance from the U.S. and U.K., preferring to accept assistance from its Caribbean neighbors. The USCG continues to provide search and rescue assistance as needed.
Bermuda executed its first Tax Information Exchange Agreement (TIEA) in 1986 in a treaty between the United States, the United Kingdom, and Bermuda. As of spring 2011, Bermuda had signed 23 TIEAs and one Double Taxation Agreement. On January 12, 2009, the United States and the Government of Bermuda signed a Mutual Legal Assistance Treaty (MLAT), authorizing authorities in the U.S. and Bermuda to request and obtain assistance from each other in criminal investigations and prosecutions and related administrative and other proceedings. The MLAT provides for cooperation between the U.S. and Bermuda in combating a wide variety of crimes, including economic crimes and money laundering, by facilitating the collection of evidence needed by authorities in one country but located within the other country.
In 2009 the Government of Bermuda offered asylum to four former Uighur Guantanamo Bay detainees, without consulting the U.K., on the basis that the decision was an internal immigration matter. The U.K. countered that security is a matter for which it has jurisdiction. As a result, the U.K. is reviewing the General Entrustment Agreement.
An estimated 8,000 registered U.S. citizens live in Bermuda, many of them employed in the international business community. There also are a large number of American businesses incorporated in Bermuda, although no actual figures are available. Despite the trend of American businesses moving to Bermuda, Bermuda maintains that the island is not a "tax haven" since it taxes both local and foreign businesses equally.
U.S. visitors are critical to the island's tourism industry, but overall the number of U.S. visitors to Bermuda has been declining. In 2010, 483,264 Americans visited. Another 3,046 Americans sailed to the island via private yacht in 2010, an increase from 2,222 in 2009. Air arrivals in particular have dropped, down to 166,016 in 2010, compared to 172,648 in 2009. To some extent that shortfall has been made up by an increase in American cruise ship visitors--314,202 in 2010 compared to 286,819 in 2009.
Areas of opportunity for U.S. investment are principally in the reinsurance and financial services industries, although the former U.S. base lands also may present long-term investment opportunities
Tuesday, July 24, 2012
MILITARY PERCENT RECRUITMENT MET OR WAS EXCEEDED FOR FISCAL 2012 THROUGH JUNE
Active, Reserve Forces Meet Recruiting Goals Through JuneFROM: AMERICAN FORCES PRESS SERVICE
WASHINGTON, July 23, 2012 - The military's active and reserve components met or exceeded their recruiting goals for fiscal 2012 through June, Pentagon officials reported today.
Here are the numbers for the active services:-- Army: 42,538 accessions, 101 percent of its goal of 42,250;
–- Navy: 24,854 accessions, 100 percent of its goal of 24,848;
-- Marine Corps: 18,391 accessions, 100 percent of its goal of 18,346; and
-- Air Force: 21,332 accessions, 100 percent of its goal of 21,332.
All four services exhibited strong retention through the ninth month of fiscal 2012, officials said.
Here are the reserve component numbers:
-- Army National Guard: 36,508 accessions, 102 percent of its goal of 35,876;
-- Army Reserve: – 19,918 accessions, 101 percent of its goal of 19,736;
-- Navy Reserve: 5,841 accessions100 percent of its goal of 5,841;
-- Marine Corps Reserve: 6,927 accessions, 104 percent of its goal of 6,649;
-- Air National Guard: 6,453 accessions, 100 percent of its goal of 6,439; and
-- Air Force Reserve: 6,458 accessions, 100 percent of its goal of 6,458.
All reserve components are on target to achieve their fiscal year attrition goals, officials said.
U.S. TELLS SYRIA NOT TO USE CHEMICAL WEAPONS
FROM: U.S. DEPARTMENT OF DEFENSEBy Claudette Roulo
American Forces Press Service
WASHINGTON, July 23, 2012 - Syrian leaders should not even think about using chemical weapons, Pentagon Press Secretary George Little told reporters today.
"The Syrian regime is already responsible for unacceptable levels of deplorable violence against the Syrian population, and they should not think one iota about using chemical weapons," Little said.
Syrian officials have said chemical weapons would never be used against the country's own citizens, but a government spokesman today drew the line at foreign aggressors.
"When chemical weapons are mentioned in the press by Syrian officials, that raises concerns," Little said. "And we just want to make it known that we would strongly object, to put it mildly, to any thinking that would generate a motivation on the part of the Syrian regime to employ these weapons."
Little reaffirmed the United States continues to work to find a solution to end the violence in Syria.
"We've been talking with a number of our partners about the situation in Syria," Little said. "We, and they, share very serious concerns about the overall situation in Syria, to include chemical weapons."
The Syrian regime is aware of the concerns of the international community, Little said. "We believe that public messaging has an effect. We also believe that the regime has received the message through other channels," he added.
AN AIDS-FREE GENERATION
FROM: U.S. DEPARTMENT OF STATEFact Sheet
Office of the Spokesperson
Washington, DC
July 23, 2012
What is an AIDS-Free Generation?
An AIDS-free generation entails that first, no one will be born with the virus; second, that as people get older, they will be at a far lower risk of becoming infected than they are today; and third, that if they do acquire HIV, they will get treatment that keeps them healthy and prevents them from transmitting the virus to others.
Progress Being Made:
Since Secretary Clinton declared that we can create an AIDS-Free Generation on November 8, 2011, the President’s Emergency Plan for AIDS Relief (PEPFAR) and other agencies across the government have heeded the call and have been working to put us on the path to an AIDS-Free Generation by focusing on "combination prevention" – condoms, counseling and testing, and special emphasis on three core interventions: treatment as prevention, voluntary medical male circumcision, and stopping the transmission of HIV from mothers to children. Since November 8, PEPFAR has made considerable progress on implementing the three core interventions by:
Supporting more than 400,000 male circumcision procedures since December; and
Reaching more than 370,000 women globally, putting PEPFAR on track to meet its target of reaching an additional 1.5 million women by the end of 2013.
Barriers to Overcome:
Secretary Clinton also stated that creating an AIDS-Free Generation requires addressing the critical needs of people living with HIV, including women, orphans and vulnerable children, and key populations at high-risk of contracting HIV.
Call to Action:
The Secretary called upon Ambassador Goosby to take the lead on developing a blueprint by World AIDS Day 2012 that outlines the goals and objectives for the next phase of our effort to achieve an AIDS-Free Generation. She also emphasized that other countries needed to step up to the plate and do their part, in particular by supporting the Global Fund to Fight AIDS, TB, and Malaria.
In addition to for calling for a blueprint for an AIDS-Free Generation, Secretary Clinton announced:
An additional $40 million to support South Africa’s plans to provide voluntary medical male circumcisions for almost half a million boys and men in the coming year;
$15 million for implementation research to identify the specific interventions that are most effective for reaching key populations;
$20 million to launch a challenge fund that will support country-led plans to expand services for their key populations; and
$2 million investment in the Robert Carr Civil Society Networks Fund to bolster the efforts of civil society groups in addressing key populations.
EXECUTIVE INDICTED FOR BEING ALLEGED MUNICIPAL B OND FRAUDSTER
FROM: U.S. DEPARTMENT OF JUSTICEFriday, July 20, 2012
Former Financial Services Executive Indicted for His Participation in a Far-Reaching Conspiracy and Scheme to Defraud Involving Investment Contracts for the Proceeds of Municipal Bonds
WASHINGTON – A former financial services executive was indicted yesterday for his participation in a far-reaching conspiracy and scheme to defraud related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
The three-count indictment was filed yesterday in the U.S. District Court in Charlotte, N.C. The indictment charges Phillip D. Murphy, a former executive for a financial institution, with participating in a wire fraud scheme and separate fraud conspiracies from as early as 1998 until 2006.
The charged conspiracies and scheme to defraud relate to the provision of a type of contract, known as an investment agreement, to public entities, such as state, county and local governments and agencies throughout the United States. Major financial institutions, including banks, investment banks, insurance companies and financial services companies, are among the providers of investment agreements and other related municipal finance contracts. Public entities seek to invest money from a variety of sources, primarily the proceeds of municipal bonds that they issue to raise money for, among other things, public projects. Public entities typically hire a broker to conduct a competitive bidding process among various providers for the award of an investment agreement to invest such money. Competitive bidding for these agreements is the subject of regulations issued by the U.S. Department of the Treasury and is related to the tax-exempt status of the bonds. The company that employed Murphy marketed financial products and services, including services as a provider of investment agreements.
"The individual charged yesterday allegedly participated in a complex fraud scheme and conspiracies to manipulate what was supposed to be a competitive process," said Scott D. Hammond, Deputy Assistant Attorney General of the Antitrust Division’s Criminal Enforcement Program. "The division recently convicted at trial several individuals in this investigation, which is ongoing. We will continue to prosecute those who engage in such illegal and anticompetitive behavior.
The indictment charges that Murphy conspired with Rubin/Chambers, Dunhill Insurance Services Inc., also known as CDR Financial Products (CDR), a broker of municipal finance contracts, and others to increase the number and profitability of investment agreements and other municipal finance contracts awarded to the provider company where Murphy was employed. Murphy won investment agreements through CDR’s manipulation of the bidding process in obtaining losing bids from other providers, which is explicitly prohibited by U.S. Treasury regulations. As a result of the information, various providers won investment agreements and other municipal finance contracts at artificially determined prices. In exchange for this information, Murphy submitted intentionally losing bids for certain investment agreements and other contracts when requested, and, on occasion, agreed to pay or arranged for kickbacks to be paid to CDR and other co-conspirator brokers.
The indictment also alleges that Murphy and co-conspirators misrepresented to municipal issuers or bond counsel that the bidding process was in compliance with U.S. Treasury regulations. This caused the municipal issuers to award investment agreements and other municipal finance contracts to providers that otherwise would not have been awarded the contracts if the issuers had true and accurate information regarding the bidding process. Such conduct placed the tax-exempt status of the underlying bonds in jeopardy.
According to court documents, the efforts by Murphy and his co-conspirators to control and manipulate the bidding for investment contracts, and the execution of a variety of certifications that covered up their scheme, also obstructed the Internal Revenue Service (IRS)’s ability to monitor compliance with U.S. Treasury regulations and impeded the IRS’s ability to determine whether municipal issuers had correctly accounted for any money that was owed to the U.S. Treasury.
In a separate count, the indictment charges that Murphy conspired with others to falsify bank records related to marketing profits so that the co-conspirators could pay the kickbacks to CDR and others.
"Yesterday’s charges outline a fraudulent scheme to subvert competition in the marketplace. Those who engage in this type of criminal activity not only stand to defraud public entities, but erode the public’s trust in the competitive bidding process," said Janice K. Fedarcyk, Assistant Director in Charge of the FBI in New York. "The FBI will continue to work with the Antitrust Division to ensure the integrity of competitive bidding in public finance."
"This case demonstrates the value of a coordinated approach by multiple agencies and law enforcement authorities," said Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Richard Weber. "IRS Criminal Investigation contributed to this joint effort by providing financial investigative expertise to uncover this complex and sophisticated scheme. Professionals, including financial service executives, should know we will devote all resources necessary to bring to justice those who commit financial crimes."
Murphy is charged with two counts of conspiracy and one count of wire fraud. The fraud conspiracy with which Murphy is charged carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine. The false bank records conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. The maximum fines for each of these offenses may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charges announced today resulted from an ongoing investigation conducted by the Antitrust Division’s New York and Cleveland Field Offices, the FBI and IRS-CI. The division is coordinating its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
To date, a total of 13 individuals and one company have pleaded guilty to charges stemming from the ongoing investigation. In May 2012, a federal jury in the Southern District of New York convicted Dominick Carollo, Steven Goldberg and Peter Grimm of multiple counts involving similar fraud conspiracies after a four-week trial. Three other former executives of a financial institution were indicted on Dec. 9, 2010, for participating in fraud schemes and conspiracies related to the bidding for investment agreements, and are awaiting trial, which is scheduled to begin in Manhattan on July 30, 2012.
Yesterday’s indictment is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
LARGEST EVER NEUTRON BEAM CREATED AT LOS ALAMOS
FROM LOS ALAMOS NATIONAL LABORATORYTrident Target caption: Tom Hurry of Plasma Physics adjusts the target positioner and particle beam diagnostics prior to an experiment at Trident.
World Record Neutron Beam at Los Alamos National Laboratory
New Method Has Potential to Advance Materials Measurement
LOS ALAMOS, NEW MEXICO, July 10, 2012— Using a one-of-a-kind laser system at Los Alamos National Laboratory, scientists have created the largest neutron beam ever made by a short-pulse laser, breaking a world record. Neutron beams are usually made with particle accelerators or nuclear reactors and are commonly used in a wide variety of scientific research, particularly in advanced materials science.
Using the TRIDENT laser, a unique and powerful 200 trillion-watt short-pulse laser, scientists from Los Alamos, the Technical University of Darmstadt, Germany, and Sandia National Laboratories focus high-intensity light on an ultra-thin plastic sheet infused with an isotope of hydrogen called deuterium.
The laser light — 200 quintillion watts per square centimeter, equivalent to focusing all of the light coming from the sun to the earth (120,000 terawatts) onto the tip of a pencil — interacts with the plastic sheet, creating a plasma, an electrically charged gas. A quintillion is a one with 18 zeros after it.
The plasma then accelerates large numbers of deuterons — the nucleus of the deuterium atom — into a sealed beryllium target, converting the deuterons into a neutron beam. Using a unique property of plasmas called relativistic transparency, the deuterons are accelerated in just one millimeter rather than the many meters required by standard accelerator technologies.
"So far only at TRIDENT has this new plasma acceleration mechanism been successfully implemented," said Markus Roth from the Technical University of Darmstadt, who serves as the 2012 Rosen Scholar at Los Alamos. "This result is the world’s record for short-pulse laser generated neutron flux, four quintillion neutrons per square centimeter for an object one centimeter from the source. In this generation scheme, the neutrons are emitted along the direction of the initial laser beam and can reach very high energies, in excess of 50 million electron volts."
According to Roth, the new record is five times larger than the previous record and required less than a quarter of the laser energy.
"Neutrons are a unique probe with many scientific applications," said Frank Merrill of LANL’s neutron science and technology group. "Neutrons are used to study fundamental properties of the universe, advanced materials, and have potential applications such as active interrogation of cargo containers, monitoring for clandestine nuclear explosives at border crossings, and as a test bed for fusion-relevant neutron diagnostics, the initial impetus for this study."
This record neutron beam has the speed and energy range that makes it an ideal candidate for radiography and a wide variety of high-energy-density physics studies.
"An object placed one centimeter behind the source would be exposed to more than 40 neutrons per square micrometer (one millionth of a meter) in less than a nanosecond (one billionth of a second) making it an impressive probe for radiography applications," said Merrill.
"Also, for the first time, in these experiments a neutron image driven by a short-pulse laser was realized and showed excellent agreement with numerical calculations," said Roth. Using short-pulse lasers for the production of neutrons can open the field of neutron research to universities, and a broader research community in general.
This project combined the expertise of LANL‘s Los Alamos Neutron Science Center (LANSCE) neutron science group with Physics division’s plasma physicists, TRIDENT laser scientists, and scientists developing neutron detection diagnostics to be fielded at the National Ignition Facility. Scientists from Sandia provided neutron yield and nuclear activation measurements.
DEPUTY DEFENSE SECRETARY CARTER URGES CLOSER U.S-INDIA COOPERATION
FROM: U.S. DEPARTMENT OF DEFENSECarter Urges Closer U.S.-India Defense Cooperation
By Karen Parrish
American Forces Press Service
NEW DELHI, July 23, 2012 - Deputy Defense Secretary Ashton B. Carter today offered what he called "practical steps" to improve U.S-India defense cooperation.
During remarks at an event hosted here by the Confederation of Indian Industry, Carter noted President Barack Obama has called the two nations' relationship "one of the defining partnerships of the 21st century," adding that defense cooperation is central to that tie.
India, along with Brazil, Russia and China, is one of the "Big Four," or BRIC, nations that economists have identified as being at a similar level of recently advanced economic development. Carter said partnership with India is a key part of the U.S. strategic emphasis on the Asia-Pacific region and its focus on broader security and prosperity.
"You are an economic power with an increasing military capability," the deputy secretary said. "Your leadership in civil discourse and democracy is critical to the political stability of South Asia, and a beacon to the world."
The United States and India have built their military-to-military engagement steadily through dialogues, exercises, defense trade and research cooperation, Carter noted. He added that U.S. defense leaders want to expand that linkage even further.
"We want to develop a joint vision for U.S.-India defense cooperation," he said. "That's why I'm here, at the request of Secretary of Defense [Leon E.] Panetta."
U.S. defense leaders' goal is to strengthen the relationship, Carter said, "to get to a place where we discover new opportunities continuously, making new and innovative investments that benefit both countries for generations to come."
"We want to knock down any remaining bureaucratic barriers in our defense relationship, and strip away the impediments," he added. "And we want to set big goals to achieve."
The deputy secretary noted the United States has begun to prune back bureaucratic restrictions hindering defense trade and joint development between the two countries. The United States' export control system is designed to prevent high-end technology from getting to states that shouldn't have it, Carter noted.
"But our system can be confusing, rigid, and controls too many items for the wrong reasons," he added. "We know we need to improve it," and the president's 2010 Export Control Reform initiative is guiding those improvements, he said.
The Defense Department's internal procedures also can erect barriers, the deputy secretary acknowledged. He added that he and Panetta are committed to reforming those processes. For example, he said, the United States has moved India's Defense Research and Development Organization and the Indian Space Research Organization off the Commerce Department's entity list. The list sets restrictions on foreign end-user nations involved in proliferation activities.
"We trust India and know that India is not a re-exporter or exploiter of our technologies," Carter said.
U.S. leaders consider India a top priority in the nation's export considerations, and want the United States to be India's "highest-quality and most trusted long-term supplier of technology – not a simple seller of goods -- in such fields as maritime domain awareness, counterterrorism, and many others," the deputy secretary said. In addition, he said, the United States is committed to India's military modernization.
Even as they work to increase bureaucratic speed, Carter said, U.S. defense leaders also are taking a more strategic approach to export decisions.
"We're making decisions more anticipatory, looking at what partners are likely to want in the future, and beginning our thinking and processes earlier," he said. "In a terrific new initiative, we're building exportability into our systems from the start, so it doesn't consume time and money to do it later."
U.S. leaders also are fast-tracking priority sales, Carter said.
"All these steps will be felt here in New Delhi. ... These and other efforts will help us respond more rapidly to India's requests for U.S. equipment and systems – particularly for more advanced technologies," the deputy secretary told Indian defense industry representatives.
Defense Department leaders also are working to improve the Foreign Military Sales program, or FMS, he said.
"India was our second-largest FMS customer in 2011, with 4 and a half billion [dollars] in total FMS transactions," he noted. "And we delivered six C-130J's on time." The C-130J, produced by Lockheed Martin, is the "Super Hercules" four-engine military transport aircraft.
"We think our defense technology is the best quality on the market. ... Buying American, whether through direct commercial sales or Foreign Military Sales, will get India exceptionally high-quality technology, a high degree of transparency, and no corruption," Carter said.
Defense leaders also are working to make their acquisition process clearer and more export-friendly, he added.
"I used to be undersecretary of defense for acquisition, technology and logistics," he said. "There was a chart on my wall, outlining the 250 ... steps it takes to move a program from development to delivery. It read like hieroglyphics."
The department is working to make that system more export-friendly, and also has a new fund that allows the Pentagon to procure long-lead, high-demand items in anticipation of partner nations' requests, he said. Officials also have developed a cadre of acquisition experts to help other countries define their requests and to streamline DOD's response, he noted.
"That should help India significantly," Carter added.
The deputy secretary said most importantly, DOD leaders want to move beyond defense trade, toward cooperative research, development and co-production with India.
"I'm a scientist," said Carter, who holds a doctorate in theoretical physics from Oxford University, where he was a Rhodes Scholar. "I know this is the critical part."
Carter noted he will travel south tomorrow from New Delhi to Hyderabad, India's technology corridor. There, he said, he will visit the facilities where India's Tata Advanced Systems Limited and Lockheed soon will begin producing parts for the C-130J.
"From now on, every [C-130J] around the world will contain parts made in Hyderabad," he added. "That's an example of the kind of co-production that is the future. It highlights what can be achieved when we unleash the potential of our private industries. It shows what's possible when there's a common strategic view, when the bureaucratic barriers are down, and importantly, when our strategic interests and genuine economic and business interests are aligned."
Carter said such joint efforts can and should expand further. "The only question for us is: Where does India want to expand and grow?" he added.
India also is adapting its bureaucratic processes for the global marketplace, the deputy secretary said.
"We want to cooperate with you on high-value technologies," Carter said. "To get where we both want to be, India can make some changes too, to increase U.S. investment."
If India raises its foreign direct investment ceiling to international standards, he said, commercial incentives to invest would be greater. India currently limits foreign investment in its defense sector to 25 percent. A Washington-based nonprofit research group, the Center for Strategic and International Studies, recommended in a report last week that India increase its defense FDI cap to above 50 percent.
"An arrangement where U.S. companies invest in [the] Indian defense industry could provide a win-win for both the United States and India by improving India's defense industry while providing U.S. companies a potential source of lower-cost manufacturing for defense products," the report's authors wrote.
Carter said the Indian government also could adjust offset agreements to increase U.S investment opportunities. Offset agreements typically involve a foreign supplier agreeing to buy products from a government acting as buyer, to offset the buyer's investment.
"Offsets can be tremendously helpful to growing industry capabilities – if you have the right companies, and the right absorptive capacity," Carter said. "If offsets are calibrated correctly, they work. But if offset requirements are too onerous or too narrow, they deter a company's interest, and you lose that alignment of economic interest and strategic intent. For companies to participate, our arrangements must make good economic sense as well as good strategic sense."
Third, he said, projects integrating technology development, production and acquisition require administrative structures that can accomplish that integration, he said.
Foreign direct investment limits, offset agreement restrictions and integrative administration structures are "just three points where change could be a real help in Indian-American cooperation," the deputy secretary said.
"The point is that on both sides we need to change, reform, and push ourselves to get to a place where U.S.-India defense relations are only limited by our thinking, not by our capacity to cooperate," Carter said.
Cooperation is the norm in technology and industry, he said.
"The leaders of industry globally, such as those in this room, know that," the deputy secretary added. "Sometimes, we in the security community lag behind them in our ability to cooperate and advance technology."
Carter's visit to India is part of a 10-day Asia-Pacific tour that has included stops in Hawaii, Guam, Japan and Thailand. The deputy secretary will conclude the tour with a trip to South Korea later this week.
INDIA
PROFILEGeography
Area: 3.29 million sq. km. (1.27 million sq. mi.); about one-third the size of the U.S.
Cities: Capital--New Delhi (pop. 12.8 million, 2001 census). Other major cities--Mumbai, formerly Bombay (16.4 million); Kolkata, formerly Calcutta (13.2 million); Chennai, formerly Madras (6.4 million); Bangalore (5.7 million); Hyderabad (5.5 million); Ahmedabad (5 million); Pune (4 million).
Terrain: Varies from Himalayas to flat river valleys and deserts in the west.
Climate: Alpine to temperate to subtropical monsoon.
People
Nationality: Noun and adjective--Indian(s).
Population (2012 est.): 1.21 billion; urban 29%.
Annual population growth rate (2012 est.): 1.312%.
Density: 324/sq. km.
Ethnic groups: Indo-Aryan 72%, Dravidian 25%, others 3%. While the national census does not recognize racial or ethnic groups, it is estimated that there are more than 2,000 ethnic groups in India.
Religions (2001 census): Hindu 80.5%; Muslim 13.4%; Christian 2.3%; Sikh 1.9%; other groups including Buddhist, Jain, Parsi within 1.8%; unspecified 0.1%.
Languages: Hindi, English, and 16 other official languages.
Education: Years compulsory--K-10. Literacy--61%.
Health: Infant mortality rate--46.07/1,000. Life expectancy--67.14 years (2012 est.).
Work force (est.): 467 million. Agriculture--52%; industry and commerce--14%; services and government--34%.
Government
Type: Federal republic.
Independence: August 15, 1947.
Constitution: January 26, 1950.
Branches: Executive--president (chief of state), prime minister (head of government), Council of Ministers (cabinet). Legislative--bicameral parliament (Rajya Sabha or Council of States, and Lok Sabha or House of the People). Judicial--Supreme Court.
Political parties: Indian National Congress (INC), Bharatiya Janata Party (BJP), Communist Party of India-Marxist, and numerous regional and small national parties.
Political subdivisions: 28 states,* 7 union territories (including National Capital Territory of Delhi).
Suffrage: Universal over 18.
Economy
GDP (FY 2011 est.): $1.843 trillion.
Real growth rate (2011 est.): 7.8%.
Per capita GDP (PPP, FY 2011 est.): $3,700.
Natural resources: Coal, iron ore, manganese, mica, bauxite, chromite, thorium, limestone, barite, titanium ore, diamonds, crude oil.
Agriculture: 18.1% of GDP. Products--wheat, rice, coarse grains, oilseeds, sugar, cotton, jute, tea.
Industry: 26.3% of GDP. Products--textiles, jute, processed food, steel, machinery, transport equipment, cement, aluminum, fertilizers, mining, petroleum, chemicals, and computer software.
Services and transportation: 55.6% of GDP.
Trade: Exports (FY 2011 est.)--$298.2 billion; engineering goods, petroleum products, precious stones, cotton apparel and fabrics, gems and jewelry, handicrafts, tea. Services exports ($101.2 billion in 2008-2009) represent more than one-third of India's total exports. Software exports (FY 2009)--$35.76 billion. Imports (FY 2011 est.)--$451 billion; petroleum, machinery and transport equipment, electronic goods, edible oils, fertilizers, chemicals, gold, textiles, iron and steel. Major trade partners--U.S., China, U.A.E., EU, Russia, Japan.
PEOPLE
Although India occupies only 2.4% of the world's land area, it supports over 15% of the world's population. Only China has a larger population. India's median age is 25, one of the youngest among large economies. About 70% live in more than 550,000 villages, and the remainder in more than 200 towns and cities. Over the thousands of years of its history, India has been invaded from the Iranian plateau, Central Asia, Arabia, Afghanistan, and the West; Indian people and culture have absorbed and modified these influences to produce a remarkable racial and cultural synthesis.
Religion, caste, and language are major determinants of social and political organization in India today. However, with more job opportunities in the private sector and better chances of upward social mobility, India has begun a quiet social transformation in this area. The government has recognized 18 official languages; Hindi, the national language, is the most widely spoken, although English is a national lingua franca. Although about 80% of its people are Hindu, India also is the home of more than 138 million Muslims--one of the world's largest Muslim populations. The population also includes Christians, Sikhs, Jains, Buddhists, and Parsis.
The Hindu caste system reflects Indian occupational and socially defined hierarchies. Ancient Sanskrit sources divide society into four major categories, priests (Brahmin), warriors (Kshatriya), traders/artisans (Vaishya) and farmers/laborers (Shudra). Although these categories are understood throughout India, they describe reality only in the most general terms. They omit, for example, the tribal people and those outside the caste system formerly known as "untouchables", or dalits. In reality, Indian society is divided into thousands of jatis--local, endogamous groups based on occupation--and organized hierarchically according to complex ideas of purity and pollution. Discrimination based on caste is officially illegal, but remains prevalent, especially in rural areas. Nevertheless, the government has made strong efforts to minimize the importance of caste through active affirmative action and social policies. Moreover, caste is often diluted if not subsumed in the economically prosperous and heterogeneous cities, where an increasing percentage of India's population lives. In the countryside, expanding education, land reform and economic opportunity through access to information, communication, transport, and credit are helping to lessen the harshest elements of the caste system.
HISTORY
The people of India have had a continuous civilization since 2500 B.C.E., when the inhabitants of the Indus River valley developed an urban culture based on commerce and sustained by agricultural trade. The Harappan Civilization, as it came to be known, declined around 1500 B.C.E., most likely due to ecological changes.
During the second millennium B.C.E., pastoral, Aryan-speaking tribes migrated from the northwest into the subcontinent, settled in the middle Ganges River valley, and adapted to antecedent cultures. Alexander the Great expanded across Central Asia during the 4th century B.C.E., exposing India to Grecian influences. The Maurya Empire came to dominate the Indian subcontinent during the 3rd century B.C.E., reaching its greatest height under Emperor Ashoka.
The political map of ancient and medieval India was made up of myriad kingdoms with fluctuating boundaries. At the height of the Roman Empire under Emperor Hadrian during the 2nd century C.E., the Kushan Empire, originating in ancient Bactria, conquered north India and the trans-Indus region ushering in a period of trade and prosperity. In the 4th and 5th centuries C.E., northern India was unified under the Gupta Dynasty. During this period, known as India's Golden Age, Hindu culture and political administration reached new heights.
Islam spread across the subcontinent over a period of 700 years. In the 10th and 11th centuries, Turks and Afghans invaded India and established the Delhi Sultanate. In the early 16th century, Babur, a Turkish-Mongol adventurer and distant relative of Timurlane and Genghis Khan, established the Mughal Dynasty, which lasted for 200 years. South India followed an independent path, but by the 17th century large areas of South India came under the direct rule or influence of the expanding Mughal Empire. While most of Indian society in its thousands of villages remained untouched by the political struggles going on around them, Indian courtly culture evolved into a unique blend of Hindu and Muslim traditions.
The first British outpost in South Asia was established by the English East India Company in 1619 at Surat on the northwestern coast. Later in the century, the Company opened permanent trading stations at Madras (now Chennai), Bombay (now Mumbai), and Calcutta (now Kolkata), each under the protection of native rulers.
The British expanded their influence from these footholds until, by the 1850s, they controlled most of present-day India, Pakistan, Sri Lanka, and Bangladesh. In 1857, an unsuccessful rebellion in north India led by Indian soldiers seeking the restoration of the Mughal Emperor led the British Parliament to transfer political power from the East India Company to the Crown. Great Britain began administering most of India directly and maintained both political and economic control, while controlling the rest through treaties with local rulers. Imperial India became the "crown jewel" of the rapidly expanding British Empire.
In the late 1800s, the first steps were taken toward self-government in British India with the appointment of Indian councilors to advise the British Viceroy and the establishment of Provincial Councils with Indian members; the British subsequently widened participation in Legislative Councils. Beginning in 1920, Indian leader Mohandas K. Gandhi transformed the Indian National Congress political party into a mass movement to campaign against British colonial rule. The party used both parliamentary and nonviolent resistance and non-cooperation to agitate for independence. During this period, however, millions of Indians served with honor and distinction in the British Indian Army, including service in both World Wars and countless other overseas actions in service of the Empire.
With Indians increasingly united in their quest for independence, a war-weary Britain led by Labor Prime Minister Clement Attlee began in earnest to plan for the end of its suzerainty in India. On August 15, 1947, India became a dominion within the Commonwealth, with Jawaharlal Nehru as Prime Minister. Strategic colonial considerations, as well as political tensions between Hindus and Muslims, led the British to partition British India into two separate states: India, with a Hindu majority; and Pakistan, which consisted of two "wings," East and West Pakistan--now Bangladesh and Pakistan--with Muslim majorities. India became a republic, but chose to continue as a member of the British Commonwealth, after promulgating its constitution on January 26, 1950.
After independence, the Indian National Congress, the party of Gandhi and Nehru, ruled India under the leadership first of Nehru and then his daughter (Indira Gandhi) and grandson (Rajiv Gandhi), with the exception of brief periods in the 1970s and 1980s and during a short period in 1996. From 1998-2004, a coalition led by the Bharatiya Janata Party governed.
Prime Minister Nehru governed the nation until his death in May 1964. Nehru was succeeded by Lal Bahadur Shastri, who also died in office in January 1966. In 1 month, power passed to Nehru's daughter, Indira Gandhi, Prime Minister from 1966 to 1977. In June 1975, beset with deepening political and economic problems, Mrs. Gandhi declared a state of emergency and suspended many civil liberties. Seeking a mandate at the polls for her policies, she called for elections in March 1977, only to be defeated by Morarji Desai, who headed the Janata Party, an amalgam of five opposition parties.
In 1979, Desai's government crumbled. Charan Singh formed an interim government, which was followed by Mrs. Gandhi's return to power in January 1980. On October 31, 1984, Mrs. Gandhi was assassinated by her Sikh bodyguards, which led to the killings of thousands of Sikhs in New Delhi. Her son, Rajiv, was chosen by the Congress (I)--for "Indira"--Party to take her place. His Congress government was plagued with allegations of corruption resulting in an early call for national elections in November 1989.
Although Rajiv Gandhi's Congress Party won more seats than any other single party in the 1989 elections, he was unable to form a government with a clear majority. The Janata Dal, a union of opposition parties, then joined with the Hindu-nationalist Bharatiya Janata Party (BJP) on the right and the Communists on the left to form the government. This loose coalition collapsed in November 1990, and the Janata Dal, supported by the Congress (I), came to power for a short period, with Chandra Shekhar as Prime Minister. That alliance also collapsed, resulting in national elections in June 1991.
While campaigning in Tamil Nadu on behalf of his Congress (I) party, Rajiv Gandhi was assassinated on May 21, 1991 by Tamil extremists from Sri Lanka unhappy with India's military intervention in that country’s civil war. In the elections, Congress (I) won 213 parliamentary seats and returned to power at the head of a coalition, under the leadership of P.V. Narasimha Rao. This Congress-led government, which served a full 5-year term, initiated a gradual process of economic liberalization under then-Finance Minister Manmohan Singh. These reforms opened the Indian economy to global trade and investment. India's domestic politics also took new shape, as the nationalist appeal of the Congress Party gave way to traditional caste, creed, regional, and ethnic alignments, leading to the founding of a plethora of small, regionally based political parties.
The final months of the Rao-led government in the spring of 1996 were marred by several major corruption scandals, which contributed to the worst electoral performance by the Congress Party in its history. The Hindu-nationalist BJP emerged from the May 1996 national elections as the single-largest party in the Lok Sabha but without a parliamentary majority. Under Prime Minister Atal Bihari Vajpayee, the subsequent BJP coalition lasted only 13 days. With all political parties wishing to avoid another round of elections, a 14-party coalition led by the Janata Dal formed a government known as the United Front, under the former Chief Minister of Karnataka, H.D. Deve Gowda. His government collapsed after less than a year, when the Congress Party withdrew its support in March 1997. Inder Kumar Gujral replaced Deve Gowda as the consensus choice for Prime Minister at the head of a 16-party United Front coalition.
In November 1997, the Congress Party again withdrew support from the United Front. In new elections in February 1998, the BJP won the largest number of seats in parliament--182--but fell far short of a majority. On March 20, 1998, the President approved a BJP-led coalition government with Vajpayee again serving as Prime Minister. On May 11 and 13, 1998, this government conducted a series of underground nuclear tests, spurring U.S. President Bill Clinton to impose economic sanctions on India pursuant to the 1994 Nuclear Proliferation Prevention Act.
In April 1999, the BJP-led coalition government fell apart, leading to fresh elections in September-October. The National Democratic Alliance--a new coalition led by the BJP--won a majority to form the government with Vajpayee as Prime Minister in October 1999. The NDA government was the first coalition in many years to serve a full 5-year term, providing much-needed political stability.
The Kargil conflict in May-July 1999 and an attack by terrorists on the Indian parliament in December 2001 led to increased tensions with Pakistan.
Hindu nationalists supportive of the BJP agitated to build a temple on a disputed site in Ayodhya, destroying a 17th-century mosque there in December 1992, and sparking widespread religious riots in which thousands, mostly Muslims, were killed. In February 2002, 57 Hindu volunteers returning from Ayodhya were burnt alive when their train caught fire. Alleging that the fire was caused by Muslim attackers, anti-Muslim rioters throughout the state of Gujarat killed over 2,000 people and left 100,000 homeless. The Gujarat state government and the police were criticized for failing to stop the violence and in some cases for participating in or encouraging it.
The ruling BJP-led coalition was defeated in a five-stage election held in April and May of 2004. The Congress Party, under the leadership Sonia Gandhi, the widow of Rajiv Gandhi, formed a coalition government, known as the United Progressive Alliance (UPA). It took power on May 22 with Manmohan Singh as Prime Minister. The UPA's victory was attributed to dissatisfaction among poorer rural voters that the prosperity of the cities had not filtered down to them, and rejection of the BJP's Hindu nationalist agenda.
The Congress-led UPA government continued many of the BJP's foreign policies, particularly improving relations with the U.S. Prime Minister Singh and President George W. Bush concluded a landmark U.S.-India strategic partnership framework agreement on July 18, 2005. In March 2006, President Bush visited India to further the many initiatives underlying the agreement. The strategic partnership is anchored by a historic civil nuclear cooperation initiative and includes cooperation in the fields of space, high-technology commerce, health issues, democracy promotion, agriculture, and trade and investment.
In July 2008, the UPA won a confidence motion with 275 votes in its favor and 256 against. In late November 2008, terrorists killed at least 164 people in a series of coordinated attacks around Mumbai. Prime Minister Singh promised a thorough investigation and Home Minister Chidambaram pledged significant reforms to improve India’s counterterrorism agencies.
The Congress-led UPA coalition gained a more stable majority following May 2009 elections, riding mainly on the support of rural voters. Singh became the first prime minister since Nehru to return to power after completing a full 5-year term.
GOVERNMENT
According to its constitution, India is a "sovereign, socialist, secular, democratic republic." Like the United States, India has a federal form of government. However, the central government in India has greater power in relation to its states, and has adopted a British-style parliamentary system.
The government exercises its broad administrative powers in the name of the president, whose duties are largely ceremonial. A special electoral college elects the president and vice president indirectly for 5-year terms. Their terms are staggered, and the vice president does not automatically become president following the death or removal from office of the president.
Real national executive power is centered in the cabinet (senior members of the Council of Ministers), led by the prime minister. The president appoints the prime minister, who is designated by legislators of the political party or coalition commanding a parliamentary majority in the Lok Sabha (lower house). The president then appoints subordinate ministers on the advice of the prime minister.
India's bicameral parliament consists of the Rajya Sabha (Council of States) and the Lok Sabha (House of the People). The Council of Ministers is responsible to the Lok Sabha.
The legislatures of the states and union territories elect 233 members to the Rajya Sabha, and the president appoints another 12. The members of the Rajya Sabha serve 6-year terms, with one-third up for election every 2 years. The Lok Sabha consists of 545 members, who serve 5-year terms; 543 are directly elected, and two are appointed.
India's independent judicial system began under the British, and its concepts and procedures resemble those of Anglo-Saxon countries. The Supreme Court consists of a chief justice and 25 other justices, all appointed by the president on the advice of the prime minister.
India has 28 states* and 7 union territories. At the state level, some legislatures are bicameral, patterned after the two houses of the national parliament. The states' chief ministers are responsible to the legislatures in the same way the prime minister is responsible to parliament.
Each state also has a presidentially appointed governor, who may assume certain broad powers when directed by the central government. The central government exerts greater control over the union territories than over the states, although some territories have gained more power to administer their own affairs. Local governments in India have less autonomy than their counterparts in the United States. Some states are trying to revitalize the traditional village councils, or panchayats, to promote popular democratic participation at the village level, where much of the population still lives. Over half a million panchayats exist throughout India.
Principal Government Officials
President--Pratibha D. Patil
Vice President--Mohammed Hamid Ansari
Prime Minister--Manmohan Singh
Minister for Home Affairs--P. Chidambaram
Minister of External Affairs--S.M. Krishna
Ambassador to the U.S.--Nirupama Rao
Ambassador to the UN--Hardeep Singh Puri
POLITICAL CONDITIONS
Having emerged as the nation's single-largest party in the May 2009 Lok Sabha election, Congress leads a coalition UPA government under Prime Minister Singh. Party President Sonia Gandhi was re-elected by the Party National Executive in May 2005. Also a member of parliament, she heads the Congress Lok Sabha delegation. Congress positions itself as being a secular, left of center party, with a long history of political dominance. Although its performance in national elections had steadily declined during the previous 12 years, its surprise victory in 2004 was a result of recruiting strong allies into the UPA, the anti-incumbency factor among voters, and its courtship of India's many poor, rural, and Muslim voters. Congress's political fortunes suffered badly in the 1990s, as many traditional supporters were lost to emerging regional and caste-based parties, such as the Bahujan Samaj Party and the Samajwadi Party, but rebounded following its May 2004 ascension to power. In November 2005, the Congress regained the Chief Ministership of Jammu and Kashmir state, under a power-sharing agreement.
The Bharatiya Janata Party (BJP), led by Shri Nitinn Gadkari, took the second-largest number of seats in the Lok Sabha in 2009. Sushma Swaraj is leader of the opposition. The Hindu-nationalist BJP draws its political strength mainly from the "Hindi Belt" in the northern and western regions of India. Former Foreign Minister Jaswant Singh was expelled from the party in August 2009 after authoring a book which portrayed the founder of Pakistan, Muhammad Ali-Jinnah, in a positive light, although he was allowed to rejoin in June 2010.
Popularly viewed as the party of the northern upper caste and trading communities, the BJP made strong inroads into lower castes in past national and state assembly elections. The party must balance the competing interests of Hindu nationalists, (who advocate construction of a temple on a disputed site in Ayodhya, and other primarily religious issues including the propagation of anti-conversion laws and violence against religious minorities), and center-right modernizers who see the BJP as a party of economic and political reform.
Four Communist and Marxist parties are united in a bloc called the "Left Front," which had 59 parliamentary seats following the 2009 elections. The Left Front provided external support to the UPA government until the July 2008 confidence vote. It advocates a secular and Communist ideology and opposes many aspects of economic liberalization and globalization, resulting in dissonance with Prime Minister Singh's liberal economic approach. The Maoist-inspired Naxalite insurgency continues to be a major internal security threat, affecting large parts of eastern India. With the Communists in retreat in West Bengal, the Trinamool Congress Party was expected to perform well in the 2011 state elections.
ECONOMY
For 2011, India's estimated GDP was $1.843 trillion with 7.8% growth. Services, industry, and agriculture account for 56%, 26%, and 18% of GDP, respectively. India's population is estimated at 1.2 billion and is growing at 1.3% a year. The country is capitalizing on its large numbers of well-educated people skilled in the English language to become a major exporter of software services and software workers, but more than half of the population depends on agriculture for its livelihood. 700 million Indians live on $2 per day or less, but there is a large and growing middle class of more than 50 million Indians with disposable income ranging from 200,000 to 1,000,000 rupees per year ($4,166-$20,833). Estimates are that the middle class will grow tenfold by 2025.
India continues to move forward, albeit haltingly, with market-oriented economic reforms that began in 1991. Reforms include increasingly liberal foreign investment and exchange regimes, industrial decontrol, reductions in tariffs and other trade barriers, opening and modernization of the financial sector, significant adjustments in government monetary and fiscal policies, and more safeguards for intellectual property rights.
The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. India achieved 9.6% GDP growth in 2006, 9.0% in 2007, and 6.6% in 2008, significantly expanding manufactures through late 2008. The country weathered the 2008-2009 global financial crisis well. Estimated GDP growth was 6.5% for 2009. Foreign portfolio and direct investment inflows have risen significantly in recent years. They contributed to the $283.5 billion in foreign exchange reserves by December 2009. Government receipts from the 34-day 3G spectrum auction in 2010 were $14.6 billion.
Economic growth is constrained by inadequate infrastructure, a cumbersome bureaucracy, corruption, labor market rigidities, regulatory and foreign investment controls, the "reservation" of key products for small-scale industries, and high fiscal deficits. The outlook for further trade liberalization is mixed, and a key World Trade Organization (WTO) Doha Ministerial in July 2008 was unsuccessful due to differences between the U.S. and India (as well as China) over market access. India eliminated quotas on 1,420 consumer imports in 2002 and incrementally lowered non-agricultural customs duties in later budgets. However, the tax structure is complex, with compounding effects of various taxes.
U.S.-India bilateral merchandise trade in 2008 topped nearly $50 billion. Principal U.S. exports are diagnostic or lab reagents, aircraft and parts, advanced machinery, cotton, fertilizers, ferrous waste/scrap metal, and computer hardware. Major U.S. imports from India include textiles and ready-made garments, Internet-enabled services, agricultural and related products, gems and jewelry, leather products, and chemicals.
The rapidly growing software sector is boosting service exports and modernizing India's economy. Software exports surpassed $35 billion in FY 2009, while business process outsourcing (BPO) revenues hit $14.8 billion in 2009. Personal computer penetration is 14 per 1,000 persons. The number of cell phone users was expected to rise to nearly 300 million by 2010.
The United States is India's largest investment partner, with a 13% share. India's total inflow of U.S. direct investment was estimated at more than $16 billion through 2008. Proposals for direct foreign investment are considered by the Foreign Investment Promotion Board and generally receive government approval. Automatic approvals are available for investments involving up to 100% foreign equity, depending on the kind of industry. Foreign investment is particularly sought after in power generation, telecommunications, ports, roads, petroleum exploration/processing, and mining.
India's external debt was nearly $230 billion by the end of 2008, up from $126 billion in 2005-2006. Foreign assistance was approximately $3 billion in 2006-2007, with the United States providing about $126 million in development assistance. The World Bank planned to double aid to India to almost $3 billion a year, focusing on infrastructure, education, health, and rural livelihoods.
DEFENSEThe supreme command of the Indian armed forces is vested in the president of India. Policies concerning India's defense, and the armed forces as a whole, are formulated and confirmed by the cabinet.
The Indian Army numbers over 1.4 million strong and fields 34 divisions. Its primary task is to safeguard the territorial integrity of the country against external threats. The Army has been heavily committed in the recent past to counterterrorism operations in Jammu and Kashmir, as well as the in the Northeast. Its modernization program focuses on obtaining equipment to be used in combating terror. The Army often provides aid to civil authorities and assists the government in organizing relief operations.
The Indian Navy is by far the most capable navy in the region. The Navy's primary missions are the defense of India and of India's vital sea lines of communication. India relies on the sea for 90% of its oil and natural gas and over 90% of its foreign trade. The Navy operates one aircraft carrier with two on order, 15 submarines, and 15 major surface combatants. It is capable of projecting power within the Indian Ocean basin and occasionally operates in the South China Sea, the Mediterranean Sea, and the Arabian Gulf. Fleet introduction of the Brahmos cruise missile, the possible lease of nuclear submarines from Russia, and the introduction of a new aircraft carrier in 2012 will add significantly to the Indian Navy's flexibility and striking power.
Although small, the Indian Coast Guard has been expanding rapidly in recent years. Indian Navy officers typically fill top Coast Guard positions to ensure coordination between the two services. India's Coast Guard is responsible for control of India's huge exclusive economic zone.
Fielding nearly 900 combat aircraft, the Indian Air Force is the world’s fourth largest. It is becoming a 21st-century force through modernization, new tactics, and the acquisition of modern aircraft, such as the SU-30MKI, a new advanced jet trainer (BAE Hawk), and the indigenously produced advanced light helicopter (Dhruv). In April 2008 six firms submitted proposals to the Indian Government to manufacture 126 multi-role combat aircraft for the Indian Air Force.
FOREIGN RELATIONS
India's size, population, and strategic location give it a prominent voice in international affairs, and its growing economic strength, military prowess, and scientific and technical capacity give it added weight. The end of the Cold War dramatically affected Indian foreign policy. India remains a leader of the developing world and the Non-Aligned Movement (NAM). India is now strengthening its political and commercial ties with the United States, Japan, the European Union, Iran, China, and the Association of Southeast Asian Nations. India is an active member of the South Asian Association for Regional Cooperation (SAARC).
Always an active member of the United Nations, India seeks a permanent seat on the UN Security Council. The country holds a non-permanent seat on the Security Council 2011-2012. India has a long tradition of participating in UN peacekeeping operations.
Bilateral and Regional Relations:
Pakistan. India and Pakistan have been locked in a tense rivalry since the partition of the subcontinent based on the "two-nations theory" upon achieving independence from Great Britain in 1947. The principal source of contention has been Kashmir, whose Hindu Maharaja at that time chose to join India, although a majority of his subjects were Muslim. India maintains that his decision and subsequent elections in Kashmir have made it an integral part of India. This dispute triggered wars between the two countries in 1947 and 1965 and provoked the Kargil conflict in 1999.
Pakistan and India fought a war in December 1971 following a political crisis in what was then East Pakistan and the flight of millions of Bengali refugees to India. The brief conflict left the situation largely unchanged in the west, where the two armies reached an impasse, but a decisive Indian victory in the east resulted in the creation of Bangladesh.
Since the 1971 war, Pakistan and India have made slow progress toward normalization of relations. In July 1972, Indian Prime Minister Indira Gandhi and Pakistani President Zulfikar Ali Bhutto met in the Indian hill station of Simla. They signed an agreement by which India would return all personnel and captured territory in the west and the two countries would "settle their differences by peaceful means through bilateral negotiations." Diplomatic and trade relations were re-established in 1976.
The 1979 Soviet invasion of Afghanistan caused new strains between India and Pakistan. Pakistan supported the Afghan resistance, while India implicitly supported the Soviet occupation. In the following 8 years, India voiced increasing concern over Pakistani arms purchases, U.S. military aid to Pakistan, and Pakistan's nuclear weapons program. In an effort to curtail tensions, the two countries formed a joint commission. In December 1988, Prime Ministers Rajiv Gandhi and Benazir Bhutto concluded a pact not to attack each other's nuclear facilities and initiated agreements on cultural exchanges and civil aviation.
In 1997, high-level Indo-Pakistani talks resumed after a 3-year pause. The Prime Ministers of India and Pakistan met twice, and the foreign secretaries conducted three rounds of talks. In June 1997 at Lahore, the foreign secretaries identified eight "outstanding issues" around which continuing talks would be focused. The dispute over the status of Jammu and Kashmir, an issue since partition, remains the major stumbling block in their dialogue. India maintains that the entire former princely state is an integral part of the Indian union, while Pakistan insists upon the implementation of UN resolutions calling for self-determination for the people of the state.
In September 1997, the talks broke down over the structure of how to deal with the issues of Kashmir and peace and security. Pakistan advocated that separate working groups treat each issue. India responded that the two issues be taken up along with six others on a simultaneous basis. In May 1998 India, and then Pakistan, conducted nuclear tests. Attempts to restart dialogue between the two nations were given a major boost by the February 1999 meeting of both Prime Ministers in Lahore and their signing of three agreements. These efforts were stalled by the intrusion of Pakistani-backed forces into Indian-held territory near Kargil in May 1999 (that nearly turned into full scale war), and by the military coup in Pakistan that overturned the Nawaz Sharif government in October the same year. In July 2001, Prime Minister Vajpayee and General Pervez Musharraf, leader of Pakistan after the coup, met in Agra, but talks ended after 2 days without result.
After the terrorist attack on the Indian parliament in December 2001, India-Pakistan relations cooled further as India accused Pakistan of involvement. Tensions increased, fueled by killings in Jammu and Kashmir, peaking in a troop buildup by both sides in early 2002.
Prime Minister Vajpayee's April 18, 2003 speech in Srinagar (Kashmir) revived bilateral efforts to normalize relations. In November 2003, Prime Minister Vajpayee and President Musharraf agreed to a ceasefire, which still holds, along the Line-of-Control in Jammu and Kashmir. After a series of confidence building measures, Prime Minister Vajpayee and President Musharraf met on the sidelines of the January 2004 SAARC summit in Islamabad and agreed to commence a Composite Dialogue addressing outstanding issues between India and Pakistan, including Kashmir.
In February 2004, India and Pakistan agreed to restart the "2+6" Composite Dialogue formula, providing for talks on Peace and Security and Jammu and Kashmir, followed by technical and Secretary-level discussions on six other bilateral disputes: Siachen Glacier, Wuller Barrage/Tulbul Navigation Project, Sir Creek estuary, Terrorism and Drug Trafficking, Economic and Commercial cooperation, and the Promotion of Friendly Exchanges in various fields. The restart of the Composite Dialogue process was especially significant given the almost 6 years that had transpired since the two sides agreed to this formula in 1997-1998. The UPA government continued the Composite Dialogue with Pakistan. Following the October 2005 earthquake in Kashmir, the two governments coordinated relief efforts and opened access points along the Line-of-Control to allow relief supplies to flow from India to Pakistan and to allow Kashmiris from both sides to visit one another.
The Foreign Secretary talks resumed in November 2006, after a 3-month delay following July 11, 2006 terrorist bombings in Mumbai. The meeting generated modest progress, with the two sides agreeing to establish a joint mechanism on counterterrorism. Since 2006, India and Pakistan have continued to take part in the Composite Dialogue process in an effort to maintain the peace process and strengthen bilateral relations. Following Pakistani elections in February 2008 the Indian Minister of External Affairs and the Indian Foreign Secretary met with their new counterparts to advance the Composite Dialogue talks, reaffirming a commitment to maintain the ceasefire along the Line-of-Control as well as increasing people-to-people connections through improving cross-border bus services. The July 2008 bombing of the Indian Embassy in Kabul and the Mumbai terrorist attacks in November 2008 increased tensions between India and Pakistan. Although Prime Minister Singh and Pakistan Prime Minister Yousuf Gilani agreed to resume talks following the 2010 SAARC summit, India continued to insist that Pakistan must do its part to dismantle terror networks operating from its territory and prosecute those who had a hand in planning the Mumbai attacks.
SAARC. Certain aspects of India's relations within the subcontinent are conducted through the South Asian Association for Regional Cooperation (SAARC). Its members are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, with the People's Republic of China, Iran, Japan, European Union, Republic of Korea, and the U.S. as observers. Established in 1985, SAARC encourages cooperation in agriculture, rural development, science and technology, culture, health, population control, narcotics, and terrorism.
SAARC has intentionally stressed these "core issues" and avoided those which could prove divisive, although political dialogue is often conducted on the margins of SAARC meetings. In 1993, India and its SAARC partners signed an agreement gradually to lower tariffs within the region. Forward movement in SAARC had slowed because of tension between India and Pakistan, and the SAARC summit scheduled for 1999 was not held until January 2002. In addition, to boost the process of normalizing India's relationship with Pakistan, the January 2004 SAARC summit in Islamabad produced an agreement to establish a South Asia Free Trade Area (SAFTA). All the member governments have ratified SAFTA, which was slated to come into force on January 1, 2006, with a series of graduated tariff cuts through 2015. As of December 2006, however, the FTA partners were still negotiating sensitive product lists, rules of origin, and technical assistance. India hosted the 2007 SAARC summit, which called for greater regional cooperation on trade, environmental, social, and counterterrorism issues. At the 2008 SAARC summit in Sri Lanka, the SAFTA member countries signed a protocol for Afghanistan’s accession and several countries (Including India, Pakistan, and Sri Lanka) agreed to drop some items from their sensitive product lists.
China. Despite suspicions remaining from a 1962 border conflict between India and China and continuing territorial/boundary disputes, Sino-Indian relations have improved gradually since 1988. Both countries have sought to reduce tensions along the frontier, expand trade and cultural ties, and normalize relations. Their bilateral trade reached $24 billion in 2006. China is India's second-largest trading partner behind the U.S.
A series of high-level visits between the two nations has improved relations. In December 1996, Chinese President Jiang Zemin visited India on a tour of South Asia. While in New Delhi, he and the Indian Prime Minister signed a series of confidence-building measures along the disputed border, including troop reductions and weapons limitations.
Chinese Premier Wen Jiabao invited Prime Minister Vajpayee to visit China in June 2003. They recognized the common goals of both countries and made the commitment to build a "long-term constructive and cooperative partnership" to peacefully promote their mutual political and economic goals without encroaching upon their good relations with other countries. In Beijing, Prime Minister Vajpayee proposed the designation of special representatives to discuss the border dispute at the political level, a process that is still under way.
In November 2006, President Hu Jintao made an official state visit to India, further cementing Sino-Indian relations. India and China are building on growing economic ties to improve other aspects of their relationship such as counterterrorism, energy, and trade. In another symbol of improved ties, the two countries opened the Nathu La Pass to bilateral trade in July 2006 for the first time in 40 years. Although it was the first direct land trade route in years, trade was expected to be local and small since the pass is open only 4 months a year.
Prime Minister Singh and Chinese President Hu met in January 2008 in Beijing in an effort to reinforce their confidence to further develop ties, vowing to promote their relations to a higher level. The meetings cemented a shared vision for the 21st century, with agreement to raise the annual volume of bilateral trade to $60 billion by 2010. Despite flare-ups over border issues, China-India relations remain stable at the strategic level. In 2010 there were a large number of high-level visits from Indian Government officials, including National Security Advisor Shivshankar Menon, External Affairs Minister S.M. Krishna, and President Pratibha Patil.
Former Soviet Union. The collapse of the Soviet Union in 1991 and the emergence of the Commonwealth of Independent States (CIS) had major repercussions for Indian foreign policy. India's substantial trade with the region plummeted after the Soviet collapse and has yet to recover. Longstanding military supply relationships were similarly disrupted due to questions over financing. Russia nonetheless remains India's largest supplier of military systems and spare parts.
Russia and India have not renewed the 1971 Indo-Soviet Peace and Friendship Treaty and follow what both describe as a more pragmatic, less ideological relationship. The visit of Russian President Boris Yeltsin to India in January 1993 helped cement this new relationship. The pace of high-level visits has since increased, as has discussion of major defense purchases. UPA leader Sonia Gandhi and Prime Minister Singh visited Russia in July 2005. President Vladimir Putin traveled to India in January 2007 to attend an Indo-Russia summit and was the guest of honor at India's Republic Day celebrations. President Dmitriy Medvedev visited India in December 2008 and signed a civil nuclear agreement.
U.S.-INDIA RELATIONS
Recognizing India as a key to strategic U.S. interests, the United States has sought to strengthen its relationship with India. The two countries are the world's largest democracies, both committed to political freedom protected by representative government. India is also moving gradually toward greater economic freedom. The U.S. and India have a common interest in the free flow of commerce and resources, including through the vital sea lanes of the Indian Ocean. They also share an interest in fighting terrorism and in creating a strategically stable Asia.
There were some differences, however, including over India's nuclear weapons programs and the pace of India's economic reforms. In the past, these concerns may have dominated U.S. thinking about India, but today the U.S. views India as a growing world power with which it shares common strategic interests. A strong partnership between the two countries will continue to address differences and shape a dynamic and collaborative future.
In late September 2001, President Bush lifted sanctions imposed under the terms of the 1994 Nuclear Proliferation Prevention Act following India's nuclear tests in May 1998. The nonproliferation dialogue initiated after the 1998 nuclear tests has bridged many of the gaps in understanding between the countries. In a meeting between President Bush and Prime Minister Vajpayee in November 2001, the two leaders expressed a strong interest in transforming the U.S.-India bilateral relationship. High-level meetings and concrete cooperation between the two countries increased during 2002 and 2003. In January 2004, the U.S. and India launched the Next Steps in Strategic Partnership (NSSP), which was both a milestone in the transformation of the bilateral relationship and a blueprint for its further progress.
In July 2005, President Bush hosted Prime Minister Singh in Washington, DC. The two leaders announced the successful completion of the NSSP, as well as other agreements to further enhance cooperation in the areas of civil nuclear, civil space, and high-technology commerce. Other initiatives announced at this meeting included: a U.S.-India economic dialogue, the fight against HIV/AIDS, disaster relief, technology cooperation, a democracy initiative, an agriculture knowledge initiative, a trade policy forum, an energy dialogue, and a CEO forum. President Bush made a reciprocal visit to India in March 2006, during which the progress of these initiatives was reviewed, and new initiatives were launched.
In December 2006, Congress passed the historic Henry J. Hyde United States-India Peaceful Atomic Cooperation Act, allowing direct civilian nuclear commerce with India for the first time in 30 years. U.S. policy had opposed nuclear cooperation with India because the country had developed nuclear weapons in contravention of international conventions and never signed the Nuclear Non-Proliferation Treaty. The legislation cleared the way for India to buy U.S. nuclear reactors and fuel for civilian use.
In July 2007, the United States and India reached a historic milestone in their strategic partnership by completing negotiations on the bilateral agreement for peaceful nuclear cooperation, also known as the "123 agreement." This agreement, signed by Secretary of State Condoleezza Rice and External Affairs Minister Pranab Mukherjee on October 10, 2008, governs civil nuclear trade between the two countries and opens the door for American and Indian firms to participate in each other's civil nuclear energy sector.
In July 2009, Secretary of State Hillary Clinton traveled to India to launch the "Strategic Dialogue," which called for collaboration in a number of areas, including energy, climate change, trade, education, and counterterrorism. Prime Minister Singh visited Washington, DC in November 2009 for the first state visit of the Barack Obama administration. The inaugural session of the U.S.-India Strategic Dialogue was held in June 2010 in Washington, DC. The event was successful and showed progress in the U.S. India relationship. President Obama visited India in November 2010.
In July 2011, Secretary Clinton led a U.S. delegation to India for the second round of the U.S.-India Strategic Dialogue, which took place in New Delhi on July 19, 2011, followed by a visit to Chennai.
Principal U.S. Embassy Officials
Ambassador--Nancy J. Powell (arrival April 2012)
Deputy Chief of Mission--Donald Lu
Counselor for Management--Michael C. Mullins
Counselor for Commercial Affairs--Judy Reinke
Counselor for Political Affairs--Herro K. Mustafa
Counselor for Agricultural Affairs--Allan P. Mustard
USAID Country Director--William Hammink (Acting)
RECENT U.S. NAVY PHOTOS
FROM: U.S. NAVY
Seabees construct a building to treat tsunami victims during the Rim of the Pacific (RIMPAC) 2012 exercise. Twenty-two nations, more than 40 ships and submarines, more than 200 aircraft and 25,000 personnel are participating in RIMPAC exercise 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 of 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 2nd Class Jason Daniel Johnston (Released) 120719-N-RJ303-078
Culinary Specialist Seaman John Blas enters a smoke-filled space aboard the Arleigh Burke-class guided-missile destroyer USS McCampbell (DDG 85) to attack a simulated fire during a general quarters drill. McCampbell is forward deployed to Yokosuka, Japan, and is underway in the U.S. 7th Fleer area of responsibility. U.S. Navy photo by Mass Communication Specialist Seaman Declan Barnes (Released) 120721-N-TG831-030
Monday, July 23, 2012
ONE OF THE BEST IN WOUNDED WARRIOR TRAUMA CARE
Col. Alan Sutton holds a model created by his department at San Antonio Military Medical Center, San Antonio, Texas, July 11, 2012. Anaplastology is the art and science of restoring a malformed or absent part of the human body through artificial means. (U.S. Air Force photo/Desiree N. PalaciosFROM: U.S. AIR FORCE
San Antonio health system among best in wounded warrior, trauma care
by Desiree N. Palacios
Air Force News Service
7/19/2012 - Joint Base San Antonio--Lackland (AFNS) -- During the 2005 Base Realignment and Closure commission hearings, it was suggested that the military should consolidate all health facilities in San Antonio to create the San Antonio Military Health system.
The SAMHS was established after both the Air Force and Army chiefs of staff signed a memorandum of agreement in September 2010.
Maj. Gen. Byron C. Hepburn, SAMHS director, and Army Col. Mary Garr, Fort Sam Houston garrison commander, explained that the goal of the system is to increase efficiencies and effectiveness, while providing a cutting edge, and state-of-the art medical activity within the San Antonio Military Health system.
"Being mindful of our readiness requirements, our education requirements and also our research requirements for the nation, we are doing all of that in a very synergistic coordinated manner here in San Antonio," said Hepburn, the first director of SAMHS and the 59th Medical Wing commander.
The 59th Medical Wing, at Joint Base San Antonio-Lackland, is the largest medical wing in the Air Force. The Wilford Hall Ambulatory Surgical Center is a new facility currently under construction and when finished will be the largest ambulatory surgical center within the department of defense.
"One of the key things that we are doing here is research for enroute care for air evacuation for part of our Air Force and joint mission in the medical arena," said Hepburn.
"We take great pride in what we are doing with our critical transport teams, where we're taking it to the next level." He said the center has installed partial heart lung bypass machines that can keep wounded warriors with lung injuries alive, with the ability to move them intercontinental distances. "We are also looking at how we are going to move an infectious patient safely across intercontinental distances, so we'll see a lot of really cutting edge, state of the art medical activity happening in San Antonio."
According to Hepburn, SAMHS has the distinction of being the only level one trauma center in the military. "We are caring for very high acuity patients, so our doctors, nurses and technicians are learning how to care for these trauma patients. Those skills will serve them well if they have to go forward in combat or serve the nation for a natural disaster here in the United States."
Hepburn also explained that SAMHS has a unique partnership with the Veteran's Administration.
"Secretary Shinseki, from the Veteran Affairs, has asked us to be a pilot site for an integrated electronic health record," said Hepburn. "It'll really lend to an increased synergy of seamless transfer of care between our active duty force and those that go on to get their care in the veterans administration system."
In addition to developing a reputation as a state-of-the-art health center and top level trauma hospital, SAMHS offers many facilities for wounded warriors injured in combat. The maxillofacial prosthetic department, laser treatment for wounded warriors, the Center for the Intrepid, and the contingency aeromedical staging facility are just a few areas dedicated to providing top-notch care.
"We saw tremendous change in the training, education and research areas in health care here in San Antonio," said Army Col. Mary Garr, the chief operating officer of SAMHS. "All of the enlisted medical training across the Department of Defense has now consolidated through BRAC here in San Antonio.
"In addition to the research area, we opened the battlefield health and trauma center on Fort Sam (Houston), which consolidated some of our important research and development. The tri-service research lab, which was headquartered on Brooke City Base, stayed here in San Antonio as well and is able to continue to provide much needed research in areas that support healthcare."
Hepburn added that this transformation in San Antonio has been a win-win, for not only the Air Force and the Army, but most importantly is a win-win for its patients.
"We have an A+ system and it's only going to get stronger and better in the years ahead," said Hepburn. "Through collaboration and teamwork we have a clear focus on our patients and patients' safety and high quality outcomes. We are shifting from healthcare to health here in San Antonio in a very positive and proactive manner."
Hepburn believes that it is an honor to serve in one of the military's premier health institutions and is excited about the future of military health care in San Antonio. "The new San Antonio Military Medical Center and the new Wilford Hall Ambulatory Surgical Center, which will be finished in 2015, are beautiful facilities but more importantly it's the men and women, officers, enlisted and civilians who really give it the A+ rating that it so well deserves."
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