INCOME OF FDIC INSURED INSTITUTIONS FOR THIRD QUARTER OF 2012

FROM: U.S. FEDERAL DEPOSIT INSURANCE CORPORATION

FDIC-Insured Institutions Earned $37.6 Billion in the Third Quarter of 2012
Number of "Problem" Institutions Fell Below 700 for the First Time in Three Years

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $37.6 billion in the third quarter of 2012, a $2.3 billion (6.6 percent) improvement from the $35.2 billion in profits the industry reported in the third quarter of 2011. This is the 13th consecutive quarter that earnings have registered a year-over-year increase. Increased noninterest income and lower provisions for loan losses accounted for most of the year-over-year improvement in earnings. Also noteworthy was a decline in the number of banks on the FDIC's "Problem List" from 732 to 694. This marked the sixth consecutive quarter that the number of "problem" banks has fallen, and the first time in three years that there have been fewer than 700 banks on the list. Total assets of "problem" institutions declined from $282 billion to $262 billion.

"This was another quarter of gradual but steady recovery for FDIC-insured institutions," said FDIC Chairman Martin J. Gruenberg. "Signs of further progress were evident in a number of indicators, such as loan growth, asset quality and profitability."

More than half of all institutions (57.5 percent) reported improvements in their quarterly net income from a year ago. Also, the share of institutions reporting net losses for the quarter fell to 10.5 percent from 14.6 percent a year earlier. The average return on assets (ROA), a basic yardstick of profitability, rose to 1.06 percent from 1.03 percent a year ago.

Third-quarter loan loss provisions totaled $14.8 billion, which was 20.6 percent less than the $18.6 billion that insured institutions set aside for losses in the third quarter of 2011. Net operating revenue (net interest income plus total noninterest income) totaled $169.6 billion, an increase of $4.9 billion (3.0 percent) from a year earlier, as gains from loan sales rose by $3.9 billion. Net interest income was $746 million (0.7 percent) higher than in the third quarter of 2011.

Asset quality indicators continued to improve as insured banks and thrifts charged off $22.3 billion in uncollectible loans during the quarter, down $4.4 billion (16.5 percent) from a year earlier. The amount of noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell for the 10th consecutive quarter, and the percentage of loans and leases that were noncurrent declined to the lowest level in more than three years (since the first quarter of 2009).

Financial results for the third quarter of 2012 are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings:

Total loan balances increased. Loan balances posted their fifth quarterly increase in the last six quarters, rising by $64.8 billion (0.9 percent). Loans to commercial and industrial borrowers increased by $31.8 billion (2.2 percent), while residential mortgages rose by $14.5 billion (0.8 percent) and auto loans grew by $7.4 billion (2.4 percent). However, home equity lines of credit declined by $12.9 billion (2.2 percent), and real estate construction and development loans fell by $6.9 billion (3.2 percent).

"More than 55 percent of all banks reported loan growth," Chairman Gruenberg noted. "Small banks are also increasing their lending, including their loans to small businesses."

The flow of money into deposit accounts increased. Total deposits increased by $181.7 billion (1.8 percent) in the third quarter, after rising by only $61.5 billion in the second quarter and $74.7 billion in the first quarter. Deposits in domestic offices increased by $146.5 billion (1.6 percent), while deposits in foreign offices increased by $35.2 billion (2.5 percent). The amount of deposits exceeding $250,000 in noninterest-bearing transaction accounts, which have temporary unlimited coverage under the Dodd-Frank Act, increased by $110.9 billion (8.0 percent) in the third quarter after rising by $65.5 billion the previous quarter.

The number of bank failures fell for the eighth time in the last nine quarters. Twelve insured institutions failed during the third quarter. This is the smallest number of failures in a quarter since the fourth quarter of 2008, when there were also 12. An additional seven banks have failed so far in the fourth quarter, bringing the year-to-date total to 50. Through December 4, 2011, there had been 90 failures year-to-date.

The Deposit Insurance Fund (DIF) balance continued to increase. The unaudited DIF balance — the net worth of the fund — rose to $25.2 billion at September 30 from $22.7 billion at the end of June. Assessment revenue and fewer expected bank failures continued to drive growth in the fund balance. The contingent loss reserve, which covers the costs of expected failures, fell from $4.0 billion to $3.6 billion during the quarter. Estimated insured deposits grew 2.3 percent in the third quarter.

PRECIOUS METALS TRADE THEORY 101 (WHERE IS THE GOLD?)

Credit:  U.S. Marshals Service

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION

CFTC alleges that defendants conducted illegal, off-exchange commodity transactions, and deceived customers in connection with financed transactions in precious metals

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that on December 5, 2012, it filed a civil injunctive enforcement action in the U.S. District Court for the Southern District of Florida against Hunter Wise Commodities, LLC; Hunter Wise Services, LLC; Hunter Wise Credit, LLC; Hunter Wise Trading, LLC; Lloyds Commodities, LLC; Lloyds Commodities Credit Company, LLC; Lloyds Services, LLC; C.D. Hopkins Financial, LLC; Hard Asset Lending Group, LLC; Blackstone Metals Group, LLC; Newbridge Alliance, Inc.; United States Capital Trust, LLC; Harold Edward Martin, Jr.; Fred Jager; James Burbage; Frank Gaudino; Baris Keser; Chadewick Hopkins; John King; and David A. Moore. The complaint charges these entities and individuals with fraudulently marketing illegal, off-exchange retail commodity contracts. The complaint alleges that Hunter Wise Commodities, the orchestrator of the fraud, has taken in at least $46 million in customer funds since July 2011.

According to the CFTC complaint, the defendants claim to sell physical metals, including gold, silver, platinum, palladium, and copper, to retail customers in retail commodity transactions. Under the defendants’ retail commodity transactions investment contract, customers allegedly make a down payment on certain quantities of physical metals, usually 25 percent of the total purchase price. Defendants allegedly claim to arrange loans for the balance of the purchase price, and advise customers that their physical metals will be stored in a secure depository.

The complaint further alleges that these statements were false, and that the defendants do not purchase any physical metals, arrange loans for their customers to purchase physical metals, or arrange for storage of physical metals for any customers participating in their retail commodity transactions. Instead, all the transactions are just paper transactions, according to the complaint. Defendants allegedly do not own or sell metals to customers; customers are charged storage and insurance fees on metals that do not exist; and are charged interest on loans, which are never made by the defendants

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010 expanded the CFTC’s jurisdiction over transactions like these, and requires that such transactions be executed on or subject to the rules of a board of trade, exchange or commodity market, according to the complaint. This new requirement took effect on July 16, 2011. The complaint alleges that all of the defendants’ financed commodity transactions after July 16, 2011, were illegal. The complaint also alleges that the defendants defrauded customers in all of these financed commodity transactions.

David Meister, the CFTC’s Director of Enforcement stated: "Here is a prime example of how the Dodd-Frank Act provided the Commission with additional strong authority to go after wrong-doers, such as, as alleged in the complaint, individuals who prey on people looking to make retail investments in commodities like gold and silver. We will use this new authority to the fullest extent possible."

In January 2012 the CFTC issued a Consumer Fraud Advisory (see Advisory under Related Links) regarding precious metals fraud, saying that it had seen an increase in the number of companies offering customers the opportunity to buy or invest in precious metals. The CFTC’s Consumer Fraud Advisory specifically warned that frequently companies do not purchase any physical metals for the customer, instead simply keeping the customer’s funds. The Consumer Fraud Advisory further cautioned consumers that leveraged commodity transactions are unlawful unless executed on a regulated exchange.

In its continuing litigation against the defendants, the CFTC is seeking preliminary and permanent civil injunctions in addition to other remedial relief, including restitution to customers.


 

U.S. SECRETARY OF STATE CLINTON'S REMARKS AT THE IRELAND FUNDS LUNCH

FROM:  U.S. STATE DEPARTMENT
Remarks to a Lunch Hosted by The Ireland Funds

Remarks
Hillary Rodham Clinton
Secretary of State
Titanic Belfast Building
Belfast, Northern Ireland
December 7, 2012
　

This is an absolute personal delight for me to have this opportunity to be here with so many people who I have known over so many years and who have made contributions large and small over those years to bring peace to this beautiful land. And I am very grateful to you, Karen, for putting this together and for everything you do at the Worldwide Ireland Funds. It is a great tribute to the Funds that you are exceeding your funding goals in this time of recession, because people are still so committed to doing what must be done to continue supporting the peacemakers and the decision makers here in Northern Ireland.

I could be here for a long time acknowledging people, which would be a terrible mistake on my part. But I do have to mention a few whom I see in the audience. I am honored to be joined by two men who are known for their commitment to peace and their willingness to work for it, John Hume and David Trimble. (Applause.) Thank you. Thank you (inaudible).

And of course I’ve had already an excellent discussion with Peter and Martin and the more that I have the chance to be with them and work with them, the more impressed I am by their steady leadership and their very sensible, down-to-earth, practical approach to providing the peace and the peace dividend that the people of Northern Ireland so graciously deserve. They both said these incredibly nice things about me. They exceeded their quotient for eloquence by a long shot, but it means the world to me because I not only consider them colleagues, but friends. And so Peter and Martin, thank you. Thank you for what you do every day. (Applause.)

Minister Ford, Secretary Villiers, thank you as well for your contributions. And I was told that Doctor Paisley was here. (Applause.) Dr. Paisley, thank you so much for being here today. It’s just wonderful seeing you and I hope I’ll have a chance to personally greet you before I leave. I was also told Gerry Adams was here. Is Gerry here? Hi, Gerry. (Applause.) I also want to recognize Lou Susman, who has served so (inaudible) as our U.S. Ambassador. And also our Consul General, Greg, thank you for your services here. And I, too, will acknowledge and thank our former Economic Envoy Declan Kelly who has done so much to help bring more investors to the region, and I thank you for your contributions, Declan. (Applause.)

I’m sorry that Loretta cannot be here, but we send our best wishes to Loretta Brennan Glucksman and thank her for her chairmanship of the American-Ireland Fund. But it really is remarkable that for 35 years the Funds have promoted peace without taking sides, and they have been viewed as an important participant in the process of bringing people together. And I was delighted to hear that so many of the groups that I know continue to do such good work will be supported by them.

There are a number of my former interns who are here from the Ireland Funds, who I was privileged to host in my Senate office. They are extraordinary young people. I am very proud of them. And one of them I first – she first came to my attention in 1995 when she was 14 years old and she sent Bill and a deeply moving letter about the future she dreamed of for Northern Ireland. Then I knew her as a bright young intern when she came to work in my office and helping serve my constituents in New York, and apparently that experience really took because today we know her as the Lord Mayor of Armagh, Sharon Haughey. (Applause.) Sharon, why don’t you stand up? Where are you, Sharon? The next generation of leadership. There she is, way back there. Do you have your chain on – you got it? Good. (Laughter.) And I think she’s getting married later this month, so congratulations on that.

One person who is not here that I could not come to Northern Ireland and address any group without mentioning is Inez McCormack. Inez stands out amongst the extraordinary people I have met and worked with over the last 17 years. She inspired and motivated me, challenged me often, and we’re sending her our thoughts and our prayers and our best wishes as she fights a courageous battle against cancer. (Applause.)

Now, I think that we have all recognized and applauded already today the fact that the peace has proven remarkably durable, but I think it is only fair to say it is being tested, it will continue to be tested. Prison officer David Black, who was murdered last month, the police and citizens who have been assaulted, the elected officials threatened, including Naomi Long, who is here with us today – it has been a sad reminder, unfortunately, that despite how hardy the peace has been, there are still those who not only would test it but try to destroy it. And I really commend the leaders and citizens from the many groups who have condemned this violence, and of course, I join them in condemning it as well.

It’s very clear that the voices of the responsible leadership are needed more than ever to remind us all that peace comes through dialogue and debate, not violence, and we have to be strong in the face of provocation and testing that will continue. Democracy is a challenging form of self-government, but it is the best that has ever been invented by any human being, and therefore we have a lot to be both proud of and very careful to continue nurturing. And for me, it is a reminder as well that we have to continue to make sure that the promise of peace is delivered. Because the progress in a democracy can never be taken for granted, even progress so hard-won as here.

I remember very well when Bill and I came 17 years ago this month. He was the first American president ever to set foot in Northern Ireland. We stood behind a bulletproof screen to turn on Belfast’s Christmas lights in front of a vast crowd that stretched so far I could not even find the end of it in any direction. And it was a moment of such hope. And it has been that image that has kept me going through any challenges that have come across my mind when I think about what lies ahead. I said this morning in Stormont that a little girl, Catherine, who was there that night, said that her Christmas wish was that peace and love would last in Ireland forever. That is an appropriate Christmas wish for this season as well.

I also remember that there were still roadblocks, not just because the President of the United States was visiting. There were still searches for explosives as one walked into department stores. Those roadblocks are gone and the searches have ended. Many of us did a double-take when, this summer, Queen Elizabeth came for a visit and joined Martin McGuinness in that historic handshake. More and more foreign students are coming here to study at Queen’s and Ulster universities. So there still is such a sense of hope. But we know that we’re suffering in a terrible economic downturn, and I think it’s important to recognize that there has to be an economic return on peace, especially for democracies that have to deliver results for people.

And although the real credit of the progress that has been made belong to the people of Northern Ireland, those of us who have tried to help along the way, like George Mitchell or my husband and so many others, will continue to walk with you as you practice and tend to this peace. It is always a work in progress, and we have to do more to get out of the ballrooms, out of Stormont, into the communities where people live, where there yet is not that sense of lasting hope and optimism.

Now, I’ve been especially privileged to work with some of the community activists, and particularly a lot of the women, who are here with me today. I remember the late Joyce McCartan, who called herself a family feminist. I love that term, and in fact, adopted it. But what she understood was that peace had to affect families. Families had to believe that life would be better for themselves and their children. I remember meeting with Monica McWilliams and Pearl Sagar at the White House when I was First Lady, and they wanted to talk about how to grow businesses, how to convince people – especially women – to participate in the economy and the politics that was being created. So yes, we did use Vital Voices as a mechanism for bringing not only women together, but having them then reach out to others in a great chain of potential.

So there’s a lot that we can be proud of, but I want to just offer a cautionary word. Because if we do not focus on the community level – and as David Trimble said to me earlier today, on that interface – we will not have really achieved the peace that has been worked for. So I’m looking for new ideas about how to help you do just that. How can we better make an impact on those who are either indifferent or negative toward what has been achieved? How do we reach the hard-to-reach communities – the young man from a loyalist community whose father couldn’t find work and who sees his own chances for a good job slipping away, the young woman from a Republican family who’s had to give up the idea of going to university? We can be more creative and thoughtful about how we support the political leadership of Peter and Martin and other elected leaders by trying to help them from the ground up.

So my offer to you is, as I leave this current position and become a private citizen again, I want to continue working with you. I want to support you in what you are doing. And I hope that we’ll have a chance to really come to grips with some of the serious remaining problems that are still plaguing the fulfillment of our aspirations for the people of Northern Ireland. Of course I look forward to coming back and having some time just to relax and spend a few hours talking with friends and thinking about things besides public life. But I’m very serious about this offer and very serious to the Ireland Funds that I want to remain involved as a friend, an advocate, and a cheerleader for what you have already achieved.

And so as we approach another Christmas season with all that it represents – a season of hope and good tidings – let’s reach out to those who don’t yet feel that in their heart about what has been achieved by the hard work and sacrifice of so many here and so many who have come forth. And know that the greatest gift we can give to any of our fellow man or woman is the gift of peace and of love, and that’s what I want to see for the future for every child, boy and girl, here in Northern Ireland.

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

THE CFTC AND INTERNAL CONTROL FAILURES AT GOLDMAN, SACHS & CO.

FROM: U.S. COMMODITY FUTURES TRADING COMMISSION

CFTC Orders Goldman, Sachs & Co., a Commission Registrant, to Pay $1.5 Million for Supervision Failures

By exploiting Goldman’s internal control failures, a former Goldman employee hid an $8.3 billion trading position; Goldman lost in excess of $100 million unwinding the position

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Goldman, Sachs & Co. (Goldman), a registered futures commission merchant (FCM) based in New York, N.Y., has been ordered to pay a $1.5 million civil monetary penalty to settle CFTC charges that it failed to diligently supervise its employees for several months in late 2007. The CFTC Order also requires Goldman to cease and desist from violating a CFTC regulation requiring diligent supervision.

According to the CFTC’s Order, for several months, Goldman failed to ensure that certain aspects of its risk management, compliance, and supervision programs comported with its obligations to supervise diligently its business as a Commission registrant. During November and December 2007, Goldman further failed to supervise diligently the trading activities of an associated person and former Goldman trader, Matthew Marshall Taylor, whose trading activities on seven days in mid-November and mid-December 2007 in the e-mini S&P 500 futures contract traded on the Chicago Mercantile Exchange’s (CME) Globex platform resulted in a substantial loss to Goldman.

Specifically, in violation of Commission Regulation 166.3, Goldman failed to have policies or procedures reasonably designed to detect and prevent the manual entry of fabricated futures trades into its front office systems, which aggregated manually entered and electronically executed trades in the same product. As a result, on seven trading days in November and December 2007, Taylor circumvented Goldman’s risk management, compliance, and supervision systems, by entering fabricated e-mini S&P 500 sell trades into its manual trading system, which artificially offset and thereby camouflaged e-mini S&P 500 buy trades Taylor had executed in the market. In particular, Taylor established an $8.3 billion e-mini S&P 500 position in a Goldman trading account on December 13, 2007. Goldman suffered a loss of over $118 million in unwinding Taylor’s position.

Separately, the Order states that after Taylor was discharged, Goldman orally notified the CME and the Financial Industry Regulatory Authority (FINRA). Goldman’s ensuing regulatory filings with the National Futures Association (NFA) and FINRA stated that Taylor had been accused of "violating investment-related statutes, regulations, rules, or industry standards of conduct" for "conduct related to inappropriately large proprietary futures positions in a firm trading account." Thereafter, in response to FINRA’s follow-up inquiries, Goldman provided additional important information only to FINRA, i.e., that Taylor attempted to conceal his trading via fabricated trades. Goldman never provided that additional important information to the NFA or the Commission until after the CFTC’s Division of Enforcement commenced the investigation leading to today’s settlement.

The Order states that Goldman has represented in its settlement offer that it has made changes in light of the events discussed in the Order, including implementing written enhancements to its U.S. futures-related trading and risk management controls and supervision policies and procedures. Goldman has also undertaken to implement a written procedure to enhance its provision of information to the NFA and the Commission about misconduct or alleged misconduct of terminated Goldman employees that relates to trading on a Commission-regulated market to ensure that termination notifications of associated persons, including follow-up disclosures, are provided to the NFA and the Commission.

On November 8, 2012, in a related action, the CFTC filed an enforcement action in the Federal District Court for the Southern District of New York, charging Taylor with defrauding Goldman by intentionally concealing from Goldman the true size, as well as the risk and potential profits or losses associated with the S&P e-mini futures contracts positions traded by Taylor in the Goldman account (see CFTC Press Release 6409-12, November 8, 2012 under Related Links).

CFTC staff members responsible for this case are Janine Gargiulo, Trevor Kokal, Judith Slowly, David Acevedo, Lenel Hickson, Stephen Obie, and Vincent McGonagle.

U.S. AIR FORCE PHOTOS

FROM: U.S. AIR FORCE

Search
Staff Sgt. Eduardo Ausmann observes Kyrgyz Republic Lt. Salamat Temirbekov search for simulated contaminated materials as part a chemical, biological, radiological, nuclear and explosives training scenario during Exercise Regional Cooperation 12 at the Koi Tash Military Academy in Kyrgyzstan on June 22, 2012. Regional Cooperation 12 is a multinational exercise designed to strengthen relationships and promote regional cooperation among the participating nations while offering coordinated, rapid response scenarios in the event of a disaster affecting multiple countries within the region. Ausmann is a 376th Expeditionary Medical Group biomedical engineer deployed out of Wright-Patterson Air Force Base, Ohio. (U.S. Air Force photo/Senior Airman Brett Clashman).

Phasing Spirits

Crew chiefs from the 509th Aircraft Maintenance Squadron and 131st Bomb Wing perform a phase inspection on a B-2 Spirit at Whiteman Air Force, Mo., July 12, 2012. Every 1,000 flight hours the B-2 must be ‘phased’ in search of any discrepancies that could cause major damage. (U.S. Air Force photo/Senior Airman Nick Wilson)

ROUNDTABLE WITH JOURNALISTS IN ALGIERS

  View From Algiers Of The Mediterranean Sea .  Credit:  CIA World Factbook.

FROM: U.S. DEPARTMENT OF STATE

December 6 Roundtable with Journalists in Algiers
Remarks
William J. Burns
Deputy Secretary
Algiers, Algeria
December 6, 2012
Deputy Secretary Burns: Good evening everyone.

It’s a pleasure to see all of you this evening and it’s certainly a pleasure to be back in Algiers, which I’ve visited many times over the years. This visit, coming soon after the visit of Secretary Clinton and the U.S. Algeria Strategic Dialogue earlier this fall, is another opportunity to strengthen our constructive and strategically important bilateral relationship. I had excellent and wide-ranging discussions earlier today with President Bouteflika, the Prime Minister, and other senior Algerian officials.

We continue to work together to deepen our ties with the government and the people of Algeria across a broad, mutually beneficial agenda, including, trade and investment, security cooperation, diplomatic partnership, democratic reform, and cultural and educational programs.

In the past year, Algeria has taken further steps to strengthen its democracy. We were encouraged by the roughly 21 million Algerian voters who participated in elections earlier this year to determine who would occupy the National Popular Assembly. These elections - and I would note the high number of women elected- were a welcome step in Algeria’s progress toward democratic reform.

Algeria has dealt with terrorism on its own territory and was one of the first countries to condemn the September 11, 2001 terrorist attacks in the United States. Since that time, we have intensified contacts in key areas of mutual concern and are encouraged by Algeria’s strong support of international counterterrorism efforts, including our partnership in the Global Counterterrorism Forum.　 The rise in terrorist and criminal activity in the northern Sahel is a threat to the entire region and beyond. We applaud Algeria’s resolve to stem the proliferation of weapons, drugs, and fighters across the Sahel, and strongly support these efforts.

Our two countries share concern over instability in Mali and its negative impact on regional security. We call on all of Mali’s neighboring countries to increase their border patrols to curb the flow of arms, drugs, fuel, and fighters into Mali. We support efforts to facilitate a political dialogue with non-extremist groups in northern Mali. We understand Burkina Faso in its role as lead mediator for ECOWAS is preparing a framework for negotiations. We continue to call for a coordinated international effort to accelerate the beginning of serious political talks between the rebel groups and the interim Government of Mali. Algeria has an important role to play in this process.

The United States highly values our relationship with the Government and people of Algeria, and is committed to deepening our cooperation in the months and years ahead.

And now I am glad to take questions. Please.

Question from Hacene Ouali (El Watan): My question is on Mali, there is a talk on Political solution or a military solution; is the U.S. in favor of a military intervention in the north of Mali? Thank you

Deputy Secretary Burns: There are a number of different dimensions to the challenge in Mali today: Political crisis within Mali; a humanitarian crisis resulting in refugees and internally displaced persons; and a security crisis which is a shared concern of the United States and Algeria, particularly the danger of violent extremist groups using northern Mali as a safe haven. A successful strategy to deal with all those challenges also has to have several dimensions. We’ve worked with others in the international community to help deal with the humanitarian challenge posed by the refugee crisis. As I said in my opening remarks, we strongly support Algeria’s leadership in fostering political dialogue, including between the Tuareg and the interim Government in Mali. And in response to the security risk posed by the situation in Mali, we certainly support increased counterterrorism cooperation, cooperation with Mali’s neighbors as well as with the interim Government in Mali, and we believe that an African led multinational force supported by the international community may be necessary. Thanks.

Question from Beatrice Khadige (Agence France Presse, AFP): we read a lot of news talking about an opposition between the positions of France and the United States over the Mali issue, could you confirm there are differences or nuances or finally you agree more than what is said? What is exactly the situation?

Deputy Secretary Burns: I just laid out what the American approach is to the crisis in Mali. All I would add is that we work very closely with our partners in France on this challenge and I think we have a shared view of the nature of the threat that’s posed and we look forward to continuing to work closely together in the weeks and months ahead.

Question from Karim Kebir (Liberté):

Good evening. Mr. Burns, your visit coincides with the visits of foreign officials whose countries are interested in the crisis in Mali including the UK envoy and the African Union special envoy and the presence of the members of Ansar al-Din who are negotiating. Have you met with them?

Deputy Secretary Burns:

I had the meetings I described to you before. All I would add is that it’s a mark of the important role that Algeria plays in working with its neighbors and working with the international community to deal with the challenges in Mali that you have so many visitors and envoys here. We believe Algeria’s role in dealing with this crisis is extremely important and we look forward to strengthening our cooperation on this issue.

Question from Béatrice Khadige (AFP):

Do you consider important that Algeria participate along with Mauritania in a West African force, if necessary, to free Northern Mali?

Deputy Secretary Burns:

Algeria can obviously speak for itself in terms of the position that it takes. All I would stress again is that we value greatly Algeria’s role in dealing with the crisis in Mali and the challenges that it poses to the entire region. And we certainly look forward to deepening our cooperation with Algeria as well as with others in the region and the international community in the weeks ahead.

Question from Hacene Ouali (El Watan):

Can we say today that there a convergence of views among all the international actors, i.e. ECOWAS, Algeria, France, and the United States on the solution to the Malian crisis?

Deputy Secretary Burns:

I think there is a great deal of shared concern about the situation in Mali in all of its dimensions in terms of the humanitarian challenges, the political challenges, the security challenges, that it poses. And I do believe that there is an increasing convergence of view amongst the key players in how best to deal with those challenges. And given the urgency of the situation and the nature of the threats we are going to continue to work hard to deepen our cooperation.

So thank you all very much. It’s nice to have the chance to meet with all of you

THE SUN'S INNERMOST ATMOSPHERE REVEALED

FROM:  NASA,
The Sun's Innermost Atmosphere
This combined image from Nov. 8-9, 2012, shows the sun's innermost atmosphere as seen by the Solar Dynamics Observatory (SDO) inside a larger image provided by the Solar and Heliospheric Observatory (SOHO). A coronal mass ejection can be seen traveling away from the sun in the upper right corner. Scientists can compare the images to correlate what's happening close to the sun with what happens further away.

Image credit: ESA/NASA

NAVY WINS OVER ARMY AT THE LINCOLN FINANCIAL STADIUM

 

 

FROM: U.S. NAVY

121208-D-DB155-001 PHILADELPHIA (Dec. 8, 2012) Midshipman Bo Snelson waves an American Flag while celebrating Navy's 17-13 win over Army at the Lincoln Financial Stadium. (U.S. Navy photo by E.J. Hersom)

121208-D-DB155-002 PHILADELPHIA (Dec. 8, 2012) Lincoln Financial Stadium hosts the 113th Army Navy Game. (Department of Defense photo by E.J. Hersom)
 

U.S. PRESIDENT OBAMA, SEC. OF DEFENSE PANETTA LAUD MAN KILLED IN RESCUE MISSION

Photo Credit:  U.S. Navy.

FROM: U.S. DEPARTMENT OF DEFENSE

Obama, Panetta Laud Special Operator Killed in Rescue Mission
American Forces Press Service

WASHINGTON, Dec. 9, 2012 – President Barack Obama and Defense Secretary Leon E. Panetta today paid tribute to the special operations service member killed in the rescue of an American in eastern Afghanistan yesterday.

The Taliban abducted the man Dec. 5 near the Sarobi district of Afghanistan’s Kabul province. His name is being withheld.

Marine Corps Gen. John R. Allen, the NATO and U.S. commander in Afghanistan, ordered the rescue when intelligence indicated the man was in imminent danger of injury or death. ISAF officials said it was a joint U.S.-Afghan rescue.

An American special operator was killed during the rescue mission.

Obama said the rescue was characteristic of the extraordinary courage, skill and patriotism that U.S. troops show every day. "Tragically, we lost one of our special operators in this effort," the president said in a written statement. "Our thoughts and prayers go out to his family, just as we must always honor our troops and military families. He gave his life for his fellow Americans, and he and his teammates remind us once more of the selfless service that allows our nation to stay strong, safe and free."

Panetta also issued a statement commending the U.S special operations team for the rescue and extending his condolences to the family, teammates and friends of the fallen warrior.

"The special operators who conducted this raid knew they were putting their lives on the line to free a fellow American from the enemy’s grip," Panetta said. "They put the safety of another American ahead of their own, as so many of our brave warriors do every day and every night.

"In this fallen hero, and all of our special operators," he continued, "Americans see the highest ideals of citizenship, sacrifice and service upheld. The torch of freedom burns brighter because of them."

INTERNATIONAL ANTICORRUPTION DAY

FROM: U.S. DEPARTMENT OF STATE

International Anticorruption Day
Remarks
Hillary Rodham Clinton
Secretary of State
Washington, DC
December 9, 2012
Today we recognize International Anticorruption Day and honor the tireless efforts of activists, businesses, government officials, and international organizations to combat corruption and promote open and transparent government.

While much work remains, 2012 was a successful year in the global fight against corruption. Since its inception last year, the Open Government Partnership has grown sevenfold and now includes 58 countries representing a quarter of the world’s population, encouraging greater access to information, citizen engagement, and fiscal transparency. The United States and the world’s largest economies have been leading by example, as the G20 created an ambitious anticorruption action plan for the next two years and adopted principles to keep corrupt officials away from our borders. Under the U.S. presidency, the G8 joined regional partners to convene the first Arab Forum on Asset Recovery in order to help identify and recover proceeds of corruption stowed abroad.

The United States is committed to preventing corruption and the destructive impact it has on communities around the globe. With our partners, we are working to promote legal regimes that prosecute corrupt actors, recover the proceeds of corruption and other illicitly acquired assets, and fight other crimes such as money laundering. The United States is proud to be a partner in the global fight to combat corruption and applauds all those working to sustain transparent, open societies around the world.

MIAMI ENTREPRENEUR CHARGED BY SEC WITH EXAGERATING THE FINANCIAL SUCCESS OF HIS COMPANY



FROM: U.S. SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C., Dec. 7, 2012 — The Securities and Exchange Commission today charged a prominent Miami-based entrepreneur with defrauding investors by grossly exaggerating the financial success of his company that purportedly produced housing materials to withstand fires and hurricanes. Claudio Osorio stole nearly half of the money raised from investors to pay the mortgage on his multi-million dollar mansion and other lavish highlife expenses.

The SEC alleges that Osorio, who is a former Ernst & Young Entrepreneur of the Year award winner, raised at least $16.8 million from investors by portraying InnoVida Holdings LLC as having millions of dollars more in cash and equity than it actually did. Osorio sometimes solicited investors one-on-one at political fundraising events. To add an air of legitimacy to his company, Osorio assembled a high-profile board of directors that included a former governor of Florida, a lobbyist, and a major real estate developer. Osorio falsely told a potential investor he had invested tens of millions of dollars of his own money as InnoVida's largest stakeholder, and he hyped a Middle Eastern sovereign wealth fund investment as a ruse to solicit additional funds from investors.

The SEC also charged InnoVida's chief financial officer Craig Toll, a certified public accountant living in Pembroke Pines, Fla., who helped Osorio create the false financial picture of InnoVida.

The SEC alleges that besides his Miami Beach mansion, Osorio illegally used investor money to pay for his Maserati, a Colorado mountain retreat home, and country club dues. He stole at least $8.1 million in investor funds.

"From his lap of luxury, Osorio concocted a compelling story about InnoVida by recruiting an impressive board of directors and boasting a bogus financial condition to lure investors into funding his scheme of lies," said Eric I. Bustillo, Director of the SEC's Miami Regional Office.

In a parallel action, the U.S. Attorney's Office for the Southern District of Florida today announced criminal charges against Osorio and Toll.

According to the SEC's complaint filed in U.S. District Court for the Southern District of Florida, the scheme began in 2007 and lasted until 2010. InnoVida was purportedly in the business of manufacturing building panels used to construct houses and other structures resistant to fires and hurricanes. The company entered bankruptcy in 2011.

To induce funds from investors, Osorio and Toll allegedly produced false pro forma financial statements. A pro forma financial statement for March 31, 2009, stated that InnoVida had more than $35 million in cash and cash equivalents and more than $100 million of equity. A pro forma financial statement for Dec. 31, 2009, listed more than $39 million in cash and cash equivalents and $122 million of equity. In reality, the company's bank accounts held less than $185,000 on March 31, 2009, and less than $2 million on Dec. 31, 2009. Toll failed to review all of InnoVida's bank account statements when he drafted financial statements. Instead, he accepted Osorio's misrepresentations that InnoVida had these assets in an account to which Toll did not have access.

The SEC alleges that Osorio offered bogus share prices to prospective investors based on false valuations. He told one investor that InnoVida was valued at $250 million, and then a week later told a different investor that the company was worth $50 million. The latter investor purchased $100,000 of Osorio's stake in the company for five cents per share.

The SEC further alleges that Osorio lied to an investor when he said that he had personally invested tens of millions of dollars into InnoVida. He had in fact made no such investment. Osorio also enticed an investor to increase an investment in InnoVida by touting a supposed $500 million deal he was negotiating with a Middle Eastern sovereign wealth fund that would significantly benefit InnoVida investors. Osorio went so far as to create a document showing the investor how much he would make once the sovereign wealth deal closed and was funded. Based on Osorio's misrepresentations, the investor was able to raise approximately $700,000 and later borrowed $3 million from a close friend. However, no sovereign wealth buyout deal ever materialized, and InnoVida investors never benefited as promised.

The SEC's complaint seeks disgorgement of ill-gotten gains, financial penalties, and injunctive relief against InnoVida, Osorio, and Toll to enjoin them from future violations of the federal securities laws. The complaint also seeks an order barring Osorio and Toll from serving as an officer or director of a public company.

The SEC's investigation was conducted in the Miami Regional Office by Senior Investigations Counsel Gary M. Miller and Accountant Karaz S. Zaki under the supervision of Assistant Regional Director Elisha L. Frank. Amie Riggle Berlin will lead the SEC's litigation. The SEC acknowledges the assistance and cooperation of the U.S. Attorney's Office for the Southern District of Florida, and the Federal Bureau of Investigation's Miami Division.

PRESIDENT OBAMA TO PICK ARMY GENERAL LLOYD J. AUSTIN III TO HEAD U.S. CENTRAL COMMAND

President Barack Obama intends to nominate Army Gen. Lloyd J. Austin III [pictured], who's currently serving as the vice chief of staff of the Army, to succeed Marine Corps Gen. James N. Mattis as the next commander of U.S. Central Command. U.S. Army photo

FROM: U.S. DEPARTMENT OF DEFENSE
Obama Intends to Nominate Austin as Centcom Chief

By Jim Garamone
American Forces Press Service
WASHINGTON, Dec. 6, 2012 - President Barack Obama intends to nominate Army Gen. Lloyd J. Austin III, currently the vice chief of staff of the Army, to succeed Marine Corps Gen. James N. Mattis as the next commander of U.S. Central Command, Defense Secretary Leon E. Panetta announced today.

Austin is "one of the military's most seasoned combat leaders," the secretary said, and will "bring an important combination of strategic thinking, regional knowledge and proven judgment to one of the most critical posts in the department."

Austin was the final commander of U.S. Forces Iraq, holding that position from Sept. 1, 2010, until the command was disestablished Dec. 18, 2011.

"During his final deployment to Iraq, Gen. Austin led our military efforts at a particularly important time, overseeing the drawdown of U.S. forces and equipment while simultaneously helping to ensure that hard-fought security gains were preserved and that Iraqis could secure and govern themselves," Panetta said.

Austin's previous commands include the 3rd Infantry Division, with whom he earned a Silver Star for valor for actions in the early months of the war in Iraq. He also served as commander of the 10th Mountain Division in Afghanistan, and as commander of Multinational Corps-Iraq from February 2008 through April 2009.

Mattis has commanded Centcom since Aug. 11, 2010, having previously served as commander of U.S. Joint Forces Command.

"[Mattis] will go down as one of the most celebrated battlefield leaders and strategic military thinkers of our time," Panetta said.

Austin's nomination is subject to Senate confirmation.

WASTWATER TREATMENT OPERATOR SENTENCED TO PRISON FOR ILLEGAL DISCHARGE INTO RED RIVER

FROM: U.S. DEPARTMENT OF JUSTICE

Wednesday, December 5, 2012
Shreveport, La., Wastewater General Manager and Former Owner Sentenced to Five Years in Prison for Discharging Pollutants into the Red River

WASHINGTON – John Tuma, 55, of Centerville, Texas, was sentenced today following his March 21, 2012, trial conviction by a federal jury for discharging untreated wastewater directly into the Red River without a permit, discharging untreated wastewater into the city of Shreveport sewer system in violation of its permit and obstructing an EPA inspection, announced Ignacia S. Moreno, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Stephanie A. Finley of the Western District of Louisiana. U.S. District Judge Tom Stagg sentenced John Tuma to a 60-month prison sentence, three years of supervised release and a $100,000 fine.

John Tuma, who was both general manager and the former owner of Arkla Disposal Services Inc., was charged in a five-count indictment with violations of the Clean Water Act, conspiracy and obstruction of justice related to illegal discharges coming from the Arkla Disposal Services Inc., a facility in Shreveport. The Arkla facility, located at 10845 Highway 1 South in Shreveport, was a centralized wastewater treatment facility that received wastewater from industrial processes and oilfield exploration and production facilities. Arkla contracted to treat the wastewater through a multi-step treatment process and then discharge the treated wastewater to either the City of Shreveport publicly owned treatment works or the Red River.

The case was investigated by EPA’s Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney C. Mignonne Griffing and Trial Attorney Leslie E. Lehnert of the Environmental Crimes Section of the Department of Justice.

U.S. NAVY HONOR GUARD'S STORY

U.S. Navy Honor Guard.  Credit:  U.S. Navy.

FROM: U.S. NAVY
As a member of Navy’s Honor Guard, BM2 Jackson has helped lay to rest over 250 veterans and supervised the laying to rest of over 800 veterans. As he spent this week preparing to honor a hero, he took some time to explain his role and the importance of honoring shipmates and that of their families.

This week I will have the opportunity to lay to rest a Pearl Harbor survivor. When I look back on my military career, this will be a moment that I remember because the men and woman that fought in that era ensured not only the future for the United States during WWII, but also for future Americans. I will speak to my sons about this event because they are not only American but also Japanese.

This Friday, a date known to many as "Pearl Harbor Day," we will honor Mr. Manning, a Pearl Harbor vet. Mr. Manning lived to see one of our greatest adversaries become one of our nation’s greatest allies and we will remember him and his service with honors, customs and traditions that have been a part of Navy culture for centuries.

During his funeral service, the Honor Guard will perform many ceremonies that embody Navy’s core values – Honor, Courage and Commitment, but the best representation of these values is signified in the handling, folding and display of the American flag. A United States flag drapes the casket of deceased veterans to honor the memory of their service to the country. The ceremonial folding and presentation of the flag is a moving tribute of lasting import to the veteran’s family.

The flag placement over the closed casket is also symbolic; the union blue field is at the head and over the left shoulder of the deceased.

After Taps is played, the flag is carefully folded into the symbolic tri-cornered shape. On the outside looking in, most people only witness the flag being folded but each fold is different and has a particular meaning.

After the flag is completely folded and tucked in, it takes on the appearance of a cocked hat, ever reminding us of the soldiers who served under General George Washington and the Sailors and Marines who served under Captain John Paul Jones, who were followed by their comrades and shipmates in the Armed Forces of the United States. The flag is finally presented as a keepsake to the next of kin or a family member to remind them how their Sailor’s service preserved for us the rights, privileges and freedoms we enjoy today.

It is for this reason we honor our fallen. To ensure final honors are given to our comrades in arm a carried out with dignity.

U.S. SECRETARY OF STATE CLINTON'S STATEMENT ON REDUCTION OF IRANIAN CRUDE OIL PURCHASES

Much of the sediment clouding the water in this image of the Persian Gulf is from the Shatt al Arab River, which enters the Gulf in the north along the Iran-Iraq border. The river drains the combined waters of the Euphrates and Tigris Rivers of Iraq, and the Karun River of Iran. Though other rivers empty into the Persian Gulf, most of its fresh water comes from the Shatt al Arab. On the right edge of the image is the narrow Strait of Hormuz, which connects the Persian Gulf to the Arabian Sea, part of the northern Indian Ocean. The Persian Gulf is flanked to the west by wedge-shaped Kuwait and by Saudi Arabia with its vast tan-, pink-, and white-sand deserts; to the south by Qatar, the United Arab Emirates, and Oman; and to the east by the dry mountains of Iran. The wetlands and rivers of Mesopotamia border the Gulf on the north. The red dots mark gas flares in oil fields of Iran and Iraq. Image courtesy of NASA. From: CIA World Factbook.

FROM: U.S. STATE DEPARTMENT

Regarding Significant Reductions of Iranian Crude Oil Purchases
Press Statement
Hillary Rodham Clinton
Secretary of State
Washington, DC
December 7, 2012


The United States and the international community remain committed to maintaining pressure on the Iranian regime until it fully addresses concerns about its nuclear program. That’s why today I am pleased to announce that China, India, Malaysia, Republic of Korea, Singapore, South Africa, Sri Lanka, Turkey, and Taiwan have again qualified for an exception to sanctions outlined in Section 1245 of the National Defense Authorization Act (NDAA) for Fiscal Year 2012, based on additional reductions in the volume of their crude oil purchases from Iran. As a result, I will report to the Congress that exceptions to sanctions pursuant to Section 1245 of the NDAA for certain transactions will apply to the financial institutions based in these countries for a potentially renewable period of 180 days.

A total of 20 countries and economies have continued to significantly reduce the volume of their crude oil purchases from Iran. According to the latest U.S. Energy Information Administration report to Congress, Iran’s oil production fell by one million barrels per day in September and October 2012, compared to the same period in 2011. This has reduced Iran’s export volumes and oil revenues, which fund not only the nuclear program but its support for terror and destabilizing actions in the region. The message to the Iranian regime from the international community is clear: take concrete actions to satisfy the concerns of the international community through negotiations with the P5+1, or face increasing isolation and pressure.

HUMAN ACTIVITY IS DRIVING SPREAD OF DISEASES



American robins play a key role in the spread of West Nile virus.  Credit:  NSF.

FROM: NATIONAL SCIENCE FOUNDATION
Emerging Vector-Borne Diseases Create New Public Health Challenge
Land-use change, globalization of trade and travel, and social upheaval drive emergence of diseases
Human activities are advancing the spread of vector-borne, zoonotic diseases such as West Nile virus, Lyme disease and dengue fever, report scientists publishing a series of papers today in the journal The Lancet.

Vector-borne zoonotic diseases result from disease-causing agents or pathogens that naturally infect wildlife, and are transmitted to humans by carriers such as mosquitoes and ticks. In short, they're diseases transmitted between animals and humans.

Widespread land-use change, globalization of trade and travel, and social upheaval are driving the emergence of zoonotic diseases around the world, said biologist Marm Kilpatrick, who studies the ecology of infectious diseases at the University of California, Santa Cruz.

Kilpatrick co-authored one of several papers in The Lancet, along with Sarah Randolph of the University of Oxford. The Lancet papers are part of a special series in the journal focused on emerging zoonotic diseases.

"Increasing human population, and the urbanization and agricultural intensification of landscapes, put strong selective pressure on vector-borne pathogens to infect humans--and to be transmitted by vectors and hosts that live around humans," Kilpatrick said.

"Humans are altering the environment and moving ourselves and other organisms around the globe at an ever-increasing pace," said Sam Scheiner, a program director for the Ecology and Evolution of Infectious Diseases (EEID) program at the National Science Foundation. "Our fast-track has led to a growing disease threat."

EEID is a joint effort with NSF and the National Institutes of Health. At NSF, the Directorate for Biological Sciences and Directorate for Geosciences fund the program.

EEID funded much of the research discussed in The Lancet papers. "These papers show how and why zoonotic diseases are emerging, and what we need to know to ease the disease burden," said Scheiner.

The papers "offer a bridge between ecologists and clinicians whose combined efforts are needed to address the ongoing challenges of emerging zoonotic diseases," said Kilpatrick.

Added scientist Peter Daszak, president of the EcoHealth Alliance in New York City and author of a paper in the series, "Pandemic zoonoses such as SARS, Ebola and HIV/AIDS are devastating when they emerge. What this series shows is that we have new ways of predicting their origins, of discovering them even before they reach our population--truly a brave new world for pandemic prevention."

There are roughly two types of emerging infectious diseases: introduced and locally emerging.

Introduced diseases arise from the spread of a pathogen to a new location, as when West Nile virus arrived in New York in 1999 and subsequently spread across North America.

Locally emerging diseases increase in importance in areas where they are endemic, as with Lyme disease in the United States during the past three decades.

These two types of emerging diseases can differ markedly with respect to infection dynamics or the number of cases over time, Kilpatrick said.

"Introduced diseases often cause a big spike in infections, and then decrease substantially. Locally emerging diseases often show a steady, sustained rise."

The movement of pathogens by global trade and travel results in the emergence of diseases in new regions.

Once established, introduced pathogens often evolve to take advantage of their new environments, including new hosts and vectors.

With much of the landscape shaped by human activities, pathogens may thrive by infecting hosts and vectors that do well in man-made environments.

Emergence of endemic vector-borne diseases can result from changes in land use, such as movement of people into new habitats, or environmental changes that affect wild animals that serve as natural hosts--and the insect vectors that spread the disease to humans.

Although vector-borne diseases are sensitive to climate, climate change does not appear to be a major driving force behind emerging diseases.

"So far, climate change has been a relatively minor player compared to land use and socioeconomic factors in the emergence of vector-borne disease," Kilpatrick said.

Social and economic changes, ranging from economic downturns to displacement of populations by armed conflict, frequently precipitate disease outbreaks through their effects on public health systems, sanitation systems, behavioral patterns and uses of natural environmental resources.

The incidence of any vector-borne disease involves a complex interplay of multiple factors affecting animal hosts, vectors and people.

Kilpatrick and Randolph emphasize that control of these diseases requires combined efforts by clinicians and public health officials to treat patients; promote behavior likely to minimize the risk of infection; and advise on efforts to reverse the ecological drivers of transmission through vector control, urban planning and ecological restoration.

The Lancet papers are published ahead of a special 20th anniversary symposium to be held on Dec. 11 and 12, 2012, in Washington, D.C.

The symposium is hosted by the National Academies' Institute of Medicine's Forum on Microbial Threats. The symposium will take a retrospective look at the Institute of Medicine's 1992 report on Emerging Infections and its 2003 report on Microbial Threats to Health, as well as its creation of the forum in 1996.

KYRGYSTAN: "THE PREMIER DEMOCRACY IN CENTRAL ASIA"

The Tien Shan Mountains.  From:  CIA World Factbook.

 
FROM: U.S. DEPARTMENT OF STATE

Press Availability with Kyrgyz Republic Media
Remarks
Wendy Sherman
Under Secretary for Political Affairs
Bishkek, Kyrgyzstan
November 30, 2012

Undersecretary Sherman: Thank you all for being here today. I am very honored and delighted to have been in Kyrgyzstan today and had a series of meetings including with the former President, with the current President, with the Prime Minister, and with members of civil society. Also in these meetings the Foreign Minister, the head of the Defense Council and other officials were present.

The United States wants to make sure that the spotlight is on the premier democracy in Central Asia. Kyrgyzstan is a young democracy and has made much progress in a very short period of time. All of the leaders with whom I met today expressed their desire to make more progress. Even in the United States which is a democracy over 200 years old, we are still perfecting our democracy.

The United States also greatly appreciates Kyrgyzstan’s work in partnership with us to bring security and stability and economic development to Afghanistan and to all of Central Asia. I am very grateful for all of the excellent dialogue that I have had today and I return to the United States with many ideas about how to further strengthen our relationship. I’m delighted that Ambassador Spratlen is here to follow up on all that she and I heard today.

I’m delighted to take your questions.

Map:  Kyrgystan.  Credit:  CIA World Factbook.

 
Media: [Through the Interpreter]. What was the outcome of your meeting today with President Atambayev?

Undersecretary Sherman: I had an excellent conversation with your President. We had a very far-ranging discussion. Everything from the development of this democracy to the economic needs of the country to the partnership with the United States, with our ongoing work together in the region and in the world.

Media: [Through the Interpreter]. To what extent United States is committed to the idea of the New Silk Road and the role of Manas Airport in it?

Undersecretary Sherman: Thank you for raising this question. The United States is very committed to an enduring relationship and presence in Central Asia to work in partnership with Kyrgyzstan and other countries to help with economic development for the people of Central Asia. The New Silk Road is a concept of building networks and trade and development across borders that will benefit everyone. Kyrgyzstan is a very active member of the effort to make this vision real.

One small example was a Women’s Economic Symposium that was hosted here in Bishkek last year. As a result of that literally well over 100 small and medium young entrepreneurs have gotten underway.

As far as the transit center at Manas, we are very grateful that Kyrgyzstan has supported an agreement for this transit center to continue to operate through the 2014 length of the agreement. Not only has it been critical to our effort in Afghanistan, but it has also I believe brought benefit to the people of Kyrgyzstan, both in the fees we pay, the jobs it provides, and the acquisition of local products to operate the center. We have helped to build infrastructure that will belong to Kyrgyzstan for years to come.

Media: [Through the Interpreter]. I have two questions. The first question is about are the United States planning to donate to Kyrgyzstan part of the military or equipment after withdrawal of troops from Afghanistan in 2014?

The second question is are the United States planning to provide military assistance to Kyrgyzstan? And what would that military assistance be?

Undersecretary Sherman: I think in the first question you’re referring to what we call excess military equipment. No decisions have been made about that and it’s really premature to discuss that, but it is certainly a discussion that we can have with Kyrgyzstan is there is something that’s appropriate and makes sense. When we do donate excess military equipment it is only non-lethal equipment.

As for military assistance, there is no plan at this time as regards military assistance.

Media: [Through the Interpreter]. My question is related to the son of ex-President Bakayev and we know the United States has been pressing criminal charges against him. Are there any developments in the efforts to extradite him from London?

Undersecretary Sherman: Let me add one thing to the previous question which I wasn’t fully aware of. We do have an Office of Military Cooperation here where we do provide some training and assistance in that regard. So there is an ongoing effort with Kyrgyzstan.

As to your question regarding Maxim Bakayev, the U.S. Department of Justice has a criminal case against him based on his alleged violation of U.S. laws. This is about a specific violation within our jurisdiction and it is strictly a law enforcement issue.

Media: [Through the Interpreter]. Lately we have been having very intensive economic relations between the Kyrgyz Republika and the Russian Federation. With regards to that I would like to ask, several years ago Assistant Secretary Boucher announced the construction of the CASA 1000 project which meant construction of electric power transmission lines in the direction of India and Pakistan. Would you please update us on the development in this area? Because it seems like the regional cooperation has been going horizontal rather than vertical towards those countries, and that in general, could you please give us more information about the economic relations between our countries? Do you envision any large projects coming?

Undersecretary Sherman: My understanding is that Kyrgyzstan very much supports the CASA 1000 project, and that it is moving forward. We are very glad for it because we think it’s a very good example of north/south cooperation. I think these are exactly the kinds of projects that will be integral to the New Silk Road and to ensuring that there is connectivity throughout the region that allows for increased trade, the development of more jobs, and so that young people are assured of a good and prosperous and stable future.

And let me add that we welcome everyone’s investment in Central Asia and in Kyrgyzstan because if it helps develop the country and creates a strong and vibrant democracy with a strong middle class, that will be good for the people of Kyrgyzstan, that will be good for the United States of America to have a strong and vibrant democracy here in Central Asia.

Media: [Through the Interpreter]. There is some information that Russia is joining the project CASA 1000 and I would like to make sure that is it true that’s what good for the region is good for the United States? Is it the same way, what’s good for Russia is good for the United States?

Undersecretary Sherman: Well, that’s probably not always the case but my understanding is that Russia has expressed support for the project and we welcome conversation and we welcome participation. To create north/south connectivity for the region is good for everyone.

Media: [Through the Interpreter]. I know that prior to your visit our administration President’s office has been saying that there might be negotiations about the transit center. Could you give us a little more specifics about which direction the developments could take?

A second question is President Atambayev since his presidency has never been in the United States and has he made an intention to or did he share his plans with you?

Undersecretary Sherman: I think that what I should say about all of this is that we would always welcome of course President Atambayev to come to the United States and just as I’m sure that the President would welcome our President here as well. All presidents have very difficult schedules so we will leave it to them to figure out what they are able to do.

I know you had another part of your questions -- about the transit center.

We greatly appreciate that the President and your country have made a commitment to the transit center to 2014. We will work out together what makes sense into the future. Right now that’s hypothetical. I’m sure that we will all come to an agreement that works first and foremost for Kyrgyzstan.

Media: [Through the Interpreter]. Repeating the question about Maxim Bakayev. Will the United States insist on Maxim Bakayev’s extradition?

Undersecretary Sherman: We have made a request for his extradition. This is a long process. We do have an extradition with the United Kingdom. If we do indeed, he does arrive in the United States at some point he will of course go through our judicial system with all of our appeals. It will also take some time. So there is a long path ahead here, but as I said, we have alleged concerns. This is a Department of Justice matter about a specific violation and we will be following through as we do in our justice system.

Media: [Through the Interpreter]. Did you discuss anything specific with the Secretary of Security Council?

Undersecretary Sherman: No.

Media: [Through the Interpreter]. It’s more for like a personal question. We’ve seen many times how the way Richard Blake travels --

Undersecretary Sherman: Robert.

Media: [Through the Interpreter]. -- as an economy class passenger. He picks up his luggage himself in a very democratic manner. I wanted to check whether you follow the same standards? And in general, are there any VIP [inaudible] for the U.S. officials?

Undersecretary Sherman: We all work very very hard as do I think diplomats in every single country. I am fortunate as an Undersecretary I can get a business class seat. Particularly because when I’m going to walk into a meeting. If I’m on a short distance, however, in the United States, I fly economy class as well. Any place in the United States I fly economy class. So when I’m going on a long distance trip and I have to get off an airplane and walk right into a meeting, then I can fly business class because of my rank. But yes, I carry my own bags. I never check bags because I don’t want them to get lost on an airplane. And for those of you who are women, I always, even if I’m traveling for two weeks, I only take a carry-on suitcase because I’m going to probably be in a different country every single day and nobody’s going to know what I’m going to wear. So I will get bored with my clothes, but I’ll still have only a carry-on suitcase. That’s just something we do.

The other thing is, we work all of the time. On this particular trip I left on a Saturday, I will return on a Saturday. So most of the time my weekends are spent on airplanes. In this one week I’ve been in four countries and five cities in one week.

Media: [Through the Interpreter]. What was the reason for Blake’s [inaudible]?

Undersecretary Sherman: My understanding is that your Foreign Minister had a scheduling conflict with the Organization of Islamic Conference which is certainly a very appropriate reason to reschedule the ABDs. I don’t, there’s no issue here whatsoever. We all have very demanding schedules. We are all juggling our schedules all of the time. And we certainly understand and we have absolutely no question whatsoever that it will be rescheduled and we will continue our very close annual bilateral consultations. Thank you.

　

Kyrgyzstan Locator Map.  Credit:  CIA World Factbook.

ADDITIONAL INFORMATION FROM CIA WORLD FACTBOOK

A Central Asian country of incredible natural beauty and proud nomadic traditions, most of Kyrgyzstan was formally annexed to Russia in 1876. The Kyrgyz staged a major revolt against the Tsarist Empire in 1916 in which almost one-sixth of the Kyrgyz population was killed. Kyrgyzstan became a Soviet republic in 1936 and achieved independence in 1991 when the USSR dissolved. Nationwide demonstrations in the spring of 2005 resulted in the ouster of President Askar AKAEV, who had run the country since 1990. Subsequent presidential elections in July 2005 were won overwhelmingly by former prime minister Kurmanbek BAKIEV. Over the next few years, the new president manipulated the parliament to accrue new powers for himself. In July 2009, after months of harassment against his opponents and media critics, BAKIEV won re-election in a presidential campaign that the international community deemed flawed. In April 2010, nationwide protests led to the resignation and expulsion of BAKIEV. His successor, Roza OTUNBAEVA, served as transitional president until Almazbek ATAMBAEV was inaugurated in December 2011. Continuing concerns include: the trajectory of democratization, endemic corruption, poor interethnic relations, and terrorism.

THE MAGNETIC FIELDS OF EARTH AND MARS

FROM: NASA

Comparing Magnetic Fields on Earth and Mars
This animation compares the magnetic fields on Earth and Mars. The Earth has a large-scale planetary magnetic field that can protect it from space weather and other hazards. Mars, on the other hand, only has small pockets of magnetic fields scattered around the planet.

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY
121207-N-TC587-044 MAYPORT, Fla. (Dec. 7, 2012) Navy Seaman First Class Duane Reyelts, a survivor of the Dec. 7, 1941 Japanese attack on Pearl Harbor, tosses flowers off the side of the guided-missile frigate USS De Wert (FFG 45) during a Pearl Harbor Day ceremony. The ceremony commemorated the anniversary of the Dec. 7, 1941 Japanese attack on Pearl Harbor. (U.S. Navy photo by Mass Communication Specialist 3rd Class Damian Berg/Released)

A bugler plays Echo Taps at the 71st Anniversary Pearl Harbor Day Commemoration. More than 2000 guests, including Pearl Harbor survivors and other veterans, attended the National Park Service and U.S. Navy-hosted joint memorial ceremony at the World War II Valor in the Pacific National Monument. This year's theme focused on "Coming of Age - From Innocence to Valor." U.S. Navy photo by Mass Communication Specialist 3rd Class Dustin W. Sisco (Released) 121207-N-XD424-204

Rating the red wine supplement

Rating the red wine supplement