U.S. DEFENSE DEPARTMENT CONTRACTS FOR MAY 5, 2014

FROM:  U.S. DEFENSE DEPARTMENT 

CONTRACTS

NAVY

Bechtel Plant Machinery Inc., Monroeville, Pennsylvania, is being awarded a $17,792,893 cost-plus-fixed-fee modification to previously awarded contract (N00024-12-C-2106) for naval nuclear propulsion components. Work will be performed in Schenectady, New York (68 percent), and Monroeville, Pennsylvania (32 percent). No completion date or additional information is provided on naval nuclear propulsion program contracts. Fiscal 2014 other procurement, Navy and fiscal 2014 shipbuilding and conversion, Navy contract funds in the amount of $17,792,893 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

Lockheed Martin Corp., Mission Systems and Training, Baltimore, Maryland, is being awarded a $10,281,531 cost-plus-fixed-fee contract for MK 41 Vertical Launching System (VLS) electrical design agent, technical and engineering services. The MK 41 VLS provides a missile launching system for CG 47 and DDG 51 class and the ground ballistic missile defense program. The contractor will provide logistics and technical services to support the Life Cycle Support Facility, integration of new missiles into MK 41 VLS, integration of MK 41 VLS into new ships, product improvement engineering, systems engineering, computer program engineering, failure analysis, creation and prototyping of engineering change proposals and production support. This contract includes options which, if exercised, would bring the cumulative value of this contract to $182,068,736. This contract combines purchases for the U.S. Navy (96.3 percent) and the government of Japan (3.7 percent) under the Foreign Military Sales program. Work will be performed in Baltimore, Maryland (93.7 percent), and Ventura, California (6.3 percent), and is expected to be completed by September 2014. Fiscal 2014 research, development, test & evaluation; fiscal 2014 other procurement, Navy; fiscal 2014 FMS; and fiscal 2010, 2011, 2012 and 2013 shipbuilding and conversion, Navy contract funds in the amount of $10,281,531 will be obligated at award and will not expire at the end of the current fiscal year. This contract was not competitively procured in accordance with 10 U.S.C. 2304 (c)(1), as implemented by FAR 6.302-1 - only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington District of Columbia, is the contracting activity (N00024-14-C-5317).
Rolls-Royce Corp., Indianapolis, Indiana, is being awarded an $8,021,387 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0020) for Mission CareTM support for the CV-22 AE1107C engine, including lower power engine removals. Work will be performed in Oakland, California (70 percent) and Indianapolis, Indiana (30 percent), and is expected to be completed in February 2015. Fiscal 2014 operations and maintenance, Air Force overseas contingency operations funds in the amount of $8,021,387 are being obligated on this award, all of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity.

AIR FORCE

Sierra Nevada Corp., Sparks, Nevada, has been awarded a $34,425,000 cost-plus-fixed-fee contract for Afghan National Army Special Operations Forces contractor logistics support for fixed-wing aircraft (PC-12) sustainment necessary to perform the maintenance operations and keep the aircraft operational. Work will be performed at Kabul International Airport and Kandahar, Afghanistan, and is expected to be completed by Dec 16, 2014. This urgent 100 percent foreign military sales undefinitized contract for Afghanistan is a sole-source award. The contracting activity is 645 AESG/WIJK, Wright-Patterson Air Force Base, Ohio (FA8620-14-C-3027).

Alliant Techsystems Inc., Fort Worth, Texas, was awarded a maximum $15,167,984 firm-fixed-price undefinitized contract modification (P00039) to FA8106-10-C-0010 to continue contractor logistic support services for the Iraqi Air Force’s Cessna 208s intelligence, surveillance, reconnaissance caravan and the Cessna 208 armed caravan and for aircraft maintenance student training on both aircraft types without a break in service. Work will be performed at Joint Base Balad, Iraq, and is expected to be completed by Dec. 31, 2014. This contract involves 100 percent Foreign Military Sales for Iraq. A maximum of $7,574,242 is obligated at time of award. Air Force Life Cycle Management Center/WLKCL, Tinker Air Force Base, Oklahoma, is the contracting activity.

Hoffman Engineering Corp. Stamford, Connecticut, has been awarded an estimated $6,700,857 firm-fixed-price, requirements type contract for manufacture and delivery of up to 80 each night vision goggle infrared test sets and up to 200 each test set upgrade kits. Work will be performed at Stamford, Connecticut, and will be completed by Sept. 30, 2018. This award is the result of a sole-source acquisition. Foreign Military Sales orders (unclassified) are anticipated to be issued against this contract. FMS countries and the portion of the effort that will support FMS requirements are not known at this time. Funds will be obligated on individual orders issued hereunder. Air Force Life Cycle Management Center/WNKB, Robins Air Force Base, Ga., is the contracting activity (FA8532-14-D-0002).

DEFENSE LOGISTICS AGENCY

Foster Fuels Inc.,* Brookneal, Virginia, has been awarded a minimum $828,799,801 fixed-price with economic-price-adjustment, requirements-type contract for fuel. This is a competitive acquisition, and four offers were received. This is a five-year base contract with no options. Locations of performance are Federal Emergency Management Agency Regions I-X, except Alaska, Hawaii, Puerto Rico and Virgin Islands with a May 31, 2019 performance completion date. Using service is Department of Homeland Security/Federal Emergency Management Agency. Type of appropriation is fiscal 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Virginia, (SP0600-14-D-4005) (Awarded May 1, 2014).
Labatt Food Service, San Antonio, Texas, has been awarded a maximum $49,500,000 modification (P00202) exercising the first option period on a one-year base contract (SPM300-13-D-3659) with one one-year option period for prime vendor food and beverage support. This is a fixed-price with economic-price-adjustment based on producer-price-index contract. Location of performance is Texas with a May 4, 2015 performance completion date. Using military services are Army, Navy, Air Force, and Marine Corps. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

ARMY

TQM Inc.*, doing business as Two Rivers Medical, Saint Charles, Missouri, (W81XWH-14-D-0063); Lighthouse for the Blind, doing business as The LHB Industries, Saint Louis, Missouri, (W81XWH-14-D-0064); MSGI Corp., Tampa, Florida, (W81XWH-14-D-0065) were awarded a $45,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity, multi-year contract to supply complete medical, surgical, pharmaceutical, dental, laboratory, veterinary equipment and materiel sets for the U.S. Army medical units, nonmedical and medical support programs. Funding and work performance location will be determined with each order. Estimated completion date is May 4, 2019. Bids were solicited via the Internet with four received. Army Medical Research Acquisition Activity Frederick, Maryland, is the contracting activity.

*Small Business

.LEADERS OF U.S. AND DJIBOUTI ISSUE JOINT STATEMENT REGARDING RELATIONSHIP

FROM:  THE WHITE HOUSE 

Joint Statement by the Leaders of the United States and the Republic of Djibouti

Today at the White House, President Obama and Djiboutian President Ismail Omar Guelleh pledged to work closely together to advance their shared vision for a secure, stable, and prosperous Horn of Africa and to strengthen and deepen the strategic partnership between our two countries.

Economic, Trade, and Energy Cooperation
President Obama and President Guelleh discussed their shared vision for addressing human capital and economic development challenges in Djibouti.  President Obama noted his strong support for the Djiboutian government’s efforts to achieve its ambitious reform goals and to respond to the needs of Djiboutian citizens.  President Guelleh highlighted the positive impact of U.S. investments in Djiboutian communities, particularly in the areas of health and education, and President Obama commended President Guelleh for his commitment to lowering unemployment, reducing poverty, and improving reliable access to energy, potable water, and health care.

To help grow Djibouti’s economy and assist Djibouti in achieving these goals, the United States pledged to increase technical and financial assistance to the Djiboutian people and to invest in Djibouti’s development priorities.  President Obama pledged to expand U.S.-sponsored workforce education and training to help strengthen Djibouti’s workforce and set a foundation for expanded employment and private sector investment.

President Obama also reaffirmed his strong commitment to expanding reliable access to electricity in Africa.  Given Djibouti’s electricity needs and to enhance its role as a regional commercial hub, the United States plans to provide technical assistance to support Djibouti’s energy sector.  The leaders identified areas for future cooperation on energy, including through the East African Geothermal Partnership.  The United States plans to help build the Government of Djibouti's technical and institutional capacity to leverage greater private sector investment across the energy sector, including working together to catalyze private financing to develop renewable energy in Djibouti.

Regional Integration, Youth Empowerment, and Development
President Obama congratulated President Guelleh on Djibouti’s committed participation and leadership in regional bodies, including as host to and co-founder of the Intergovernmental Authority on Development (IGAD).  President Obama noted his strong support for President Guelleh’s leadership in the Horn of Africa and welcomed his plans for infrastructure development and economic integration across an increasingly vital region.  The two leaders shared their assessments of the pivotal role economic development and democratic governance can play in Djibouti’s future, including in advancing economic and development goals.

President Obama recognized President Guelleh for his commitment to empowering women and girls and promoting increased access to education and health services.  President Obama congratulated President Guelleh on the Djiboutian youth who have been selected to represent Djibouti as participants in the Young African Leaders Initiative.  The leaders emphasized the importance of supporting young entrepreneurs, encouraging youth to engage in public service and invest in the next generation of African leaders.

The Presidents also discussed ways that the U.S. presence at Camp Lemonnier can help further expand economic opportunity for the Djiboutian people, including through the Administration’s work with the U.S. Congress on proposed “Djibouti First” legislation that would that would give preference to Djiboutian products and services in Department of Defense procurements in support of U.S. requirements in Djibouti.  In doing so, the United States seeks to promote stability and economic development beneficial to both countries and to demonstrate our long term commitment to Djibouti’s long term economic growth. 

Defense, Security and Regional Counterterrorism Cooperation
The two leaders discussed their shared commitment to increase security and stability in the Horn of Africa and to prevent al-Qa’ida and al-Shabaab from gaining new footholds.  President Obama and President Guelleh discussed ongoing civilian and military cooperation in the areas of countering terrorism and violent extremism, countering piracy, enhancing maritime security, and securing Djibouti’s borders.  They recognized the important role that U.S.-Djibouti cooperation plays in achieving these goals, and reaffirmed that our shared security priorities remain a central component of our relationship.

The Presidents noted Camp Lemonnier’s critical role as an operational headquarters for regional security and the importance the base plays in protecting Americans and Djiboutians alike from violent extremist individuals and organizations.  President Obama thanked President Guelleh for helping ensure the safety and security of U.S. personnel in Djibouti.

President Obama announced the United States’ intention to provide enhanced security assistance and equipment to Djiboutian security forces to advance these shared regional security and counterterrorism goals, including by providing materiel and assistance to Djiboutian forces deploying to the African Union Mission in Somalia (AMISOM).  The leaders also plan to expand liaison relationships as a critical way to deepen our partnership.

Shared Efforts in Somalia
The Presidents noted that transnational challenges in the Horn of Africa cannot be met by any one country alone.  President Obama commended Djibouti’s important contributions to peace and security in Somalia,  including through its participation in AMISOM operations aimed at defeating al-Shabaab and by organizing a number of reconciliation conferences in support of peacemaking efforts.  Djibouti has also strongly and consistently supported multinational efforts to counter piracy off the coast of Somalia.

President Guelleh noted that Djibouti’s efforts as part of AMISOM have helped provide Somalis with their best chance to achieve security, stability and peace in more than two decades.  The two leaders discussed Djibouti’s experience as a troop-contributing country to AMISOM.  The Presidents highlighted the need to support renewed efforts by AMISOM and the Somali National Army to defeat al-Shabaab and to help bring security and stability to Somalia.  This commitment has not been without burden and cost.  President Obama praised the brave service of Djiboutian soldiers in Somalia and recognized the sacrifices members of the Djiboutian Armed Forces and their families have made to help bring peace to Somalia. 

A Long-Term Strategic Partnership
President Obama and President Guelleh concluded their meeting by reaffirming their shared commitment to the special and longstanding relationship between the United States and the Republic of Djibouti.  The leaders pledged to continue to work to strengthen our strategic partnership and contribute to a more secure world.  To carry this important dialogue forward, they intend to establish a U.S.-Djibouti Binational Forum and to designate senior officials to lead the implementation of the commitments made today in the spirit of building a vibrant 21^stCentury Strategic Partnership grounded in friendship, mutual trust, and common security.

SECRETARY OF DEFENSE HAGEL'S REMARKS ON NATO EXPANSION

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Defense Secretary Chuck Hagel delivers remarks during the forum "Into the Fold or Out in the Cold? NATO Expansion and European Security After the Cold War," at the Ronald Reagan Building in Washington, D.C., May 2, 2014. DOD photo by Glenn Fawcett. 

Hagel Calls for NATO Meeting on Defense Investment
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, May 2, 2014 – At a Wilson Center forum here this morning on NATO’s 21st-century security challenges, Defense Secretary Chuck Hagel called for the creation of a new NATO ministerial meeting focused on defense investment that includes finance ministers or senior budget officials.

Hagel’s proposal builds on President Barack Obama's March 26 speech in Brussels, and Atlantic Council statements earlier this week by Vice President Joe Biden and Secretary of State John F. Kerry urging every NATO-member state to meet its commitment to the alliance.

Holding such a ministerial meeting would allow finance ministers or senior budget officials “to receive detailed briefings from alliance military leaders on the challenges we face,” Hagel said.

“Leaders across our governments must understand the consequences of current trends in reduced defense spending,” he added, “and help break through the fiscal impasse.”

Since the end of the Cold War, America’s military spending has become increasingly disproportionate within the alliance, the secretary said. Today, America’s gross domestic product is smaller than the combined GDPs of the 27 NATO allies, but America’s defense spending is three times its allies’ combined defense spending, he added.

Over time, such a lopsided burden threatens NATO’s integrity, cohesion and capability, the secretary said, and ultimately, it affects European and transatlantic security.

“Many of NATO’s smaller members have pledged to increase their defense investment, and earlier this week at the Pentagon, I thanked Estonia’s defense minister for his nation’s renewed commitment and investment in NATO,” Hagel told the audience.

“But the alliance cannot afford for Europe’s larger economies and most militarily capable allies not to do the same, particularly as transatlantic economies grow stronger,” he said. “We must see renewed financial commitments from all NATO members.”

Russia’s actions in Ukraine have made NATO’s value abundantly clear, the secretary said, adding that he knows from frequent conversations with NATO defense ministers that they need no convincing.

“Talking amongst ourselves is no longer good enough,” Hagel said. “Having participated in three NATO defense ministerials and having met with all of my NATO counterparts, I have come away recognizing that the challenge is building support for defense investment across our governments, not just in our defense ministries.”

Defense investment must be discussed in the broader context of member nations’ overall fiscal challenges and priorities, he added.

In meeting its global security commitments, the United States must have strong, committed and capable allies, and this year’s Quadrennial Defense Review makes this clear, the secretary said. Going forward, the Defense Department will seek and increasingly rely on closer integration and collaboration with allies, and in ways that will influence U.S. strategic planning and future investments, Hagel said.
From the early days of the Cold War, American defense secretaries have called on European allies to ramp up their defense investment, he noted. In recent years, one of the biggest obstacles to alliance investment has been a sense that the end of the Cold War ushered in an end to insecurity, at least in Europe, from aggression by nation states, the secretary said.

“Russia’s actions in Ukraine shatter that myth and usher in bracing new realities. Even a united and deeply interconnected Europe still lives in a dangerous world,” Hagel said.

“In the short term, the transatlantic alliance has responded to Russian actions with strength and resolve,” he added. “But over the long term, we should expect Russia to test our alliance’s purpose, stamina and commitment. Future generations will note whether, at this moment of challenge, we summoned the will to invest in our alliance.”

NATO should find creative ways to help nations around the world adapt collective security to a rapidly evolving global strategic landscape, the secretary said.

Collective security is not only the anchor of the transatlantic alliance, he added, but also is a model for emerging security institutions around the world, from Africa to the Persian Gulf to Southeast Asia.

“I say this having just convened a forum of [Association of Southeast Asian Nations] defense ministers last month,” Hagel said, “and having called for a Gulf Cooperation Council defense ministerial this year.”

He added, “These institutions bring our people, interests and economies closer together, serving as anchors for stability, security and prosperity. Strengthening these regional security institutions must be a centerpiece of America’s defense policy as we continue investing in NATO.”

STATE DEPARTMENT OFFICIAL'S REMARKS ON U.S.-RUSSIA NUCLEAR ARMS NEGOTIATIONS

FROM:  U.S. STATE DEPARTMENT 

U.S.-Russia Nuclear Arms Negotiations: Ukraine and Beyond

Remarks

Anita E. Friedt

Acting Assistant Secretary, Bureau of Arms Control, Verification and Compliance

Testimony Before House Foreign Affairs Committee Joint Subcommittee

Washington, DC

April 29, 2014

---

Chairmen Poe and Rohrabacher, Ranking Members Sherman and Keating, and members of this Committee, I am grateful for the opportunity to speak to you about the Administration’s arms control policy toward Russia.

Today, I want to speak to you about: 1) why arms control agreements with Russia continue to be an important tool to enhance the security of the United States, our allies and partners; 2) how we have used numerous arms control tools since the crisis in Ukraine began to increase transparency and stability in support of our broader regional efforts; and 3) the seriousness with which the Administration takes compliance with arms control treaties.

First, as has been recognized for over four decades, arms control is a tool that can be used to enhance the security of the United States, our Allies and our partners. It is one of the many diplomatic, military, and economic tools that the United States uses to address 21^st century challenges. Many of our allies and partners are signatories and States-Parties to these same arms control agreements and we have worked closely with them to negotiate and implement these agreements. The Obama Administration has continued the longstanding bipartisan approach to arms control with Russia that had its origins in the days of the Cold War. The administrations of Presidents Ronald Reagan and George H.W. Bush were the architects of many of our most successful and enduring arms control efforts. Let me affirm that the United States is committed to maintaining strategic stability between the United States and Russia and to encouraging mutual steps to foster a more stable, resilient, predictable, and transparent security relationship.

That said, Russia’s illegal actions in Ukraine have undermined trust. While diplomacy between the United States and Russia continues, no one can ignore that Russia’s actions in Ukraine have violated the very principles upon which cooperation is built. Further, as we consider arms control priorities this year or in any year, we will continue to consult closely with our allies and partners every step of the way. Our security and defense, as well as that of our allies and partners, is non-negotiable. We will only pursue arms control agreements that advance our national interest.

The New START Treaty and Next Steps

During the Cold War, Washington and Moscow found it in our mutual interest to work together to cap and then to begin reducing the number of nuclear weapons to reverse the nuclear arms race and improve mutual security and stability. For the same reasons, we judged that the New START was in the U.S. national security interest, and that is why we continue to implement the New START Treaty with Russia even today. We are now in the fourth year of implementation and, despite the crisis in Ukraine, we and Russia continue to implement the Treaty in a business-like manner.

Since entry into force in 2011, the United States has inspected—with boots on the ground—Russian nuclear weapons facilities 58 times. Moreover, the United States and the Russian Federation have exchanged more than six thousand notifications on one another’s nuclear forces since entry into force. These notifications provide predictability by enabling the tracking of strategic offensive arms from location to location, giving advance notice of upcoming ballistic missile test launches, and providing updates of changes in the status of systems covered by the Treaty. For example, a notification is sent every time a heavy bomber is moved out of its home base for more than 24 hours. Additionally, when either party conducts a flight test of an ICBM or SLBM, they are required to notify the other party one day in advance.

The Treaty’s verification mechanisms allow us to monitor and inspect Russia’s strategic nuclear forces to ensure compliance with the Treaty. For both the United States and Russia, accurate and timely knowledge of each other’s nuclear forces helps to prevent the risks of misunderstandings, mistrust, and worst-case analysis and worst-case policymaking. Put another way, the New START Treaty’s verification regime is a vital tool in ensuring transparency and predictability between the world’s largest nuclear powers.

The 2010 Nuclear Posture Review (NPR) highlighted the importance of aligning U.S. forces to address the 21^st century security threats. As a result of further analysis called for by the NPR, the President announced in Berlin last June that, after a comprehensive review of our nuclear forces, we have determined that we can ensure the security of the United States and our allies and partners and maintain a strong and credible strategic deterrent while safely pursuing up to a one-third reduction in deployed strategic warheads from the level established in the New START Treaty. We have sought to negotiate reductions with Russia, but to date Russia has not expressed interest in nuclear reductions below the New START levels. We will also continue to work within NATO to develop ideas for reciprocal measures that we could in the future propose to Russia to build confidence and increase transparency with regard to non-strategic nuclear weapons in Europe. This will lay important groundwork for the future when conditions may be more conducive to progress in this area. Any changes to NATO’s nuclear posture must be taken by consensus within the Alliance.

Conventional Arms Control

In the realm of conventional arms control, the United States and our allies have been using arms control mechanisms in an effort to promote stability in Europe, provide transparency on Russia’s provocative actions in and around Ukraine, and assure our allies and partners in the face of Russian aggression.

The Vienna Document on Confidence and Security Building Measures is a series of politically binding confidence and security-building measures (CSBMs) designed to increase openness and transparency concerning military activities conducted inside the OSCE's zone of application (ZOA), which includes the territory, surrounding sea areas, and air space of all European (Russia from the western border to the Ural Mountains) and Central Asian participating States. The Vienna Document allows for a variety of information exchanges, on-site inspections, evaluation visits, observation visits, and other military-to-military contacts to take place according to Vienna Document provisions. In the case of the United States, only military forces and activities inside the ZOA are impacted.

It was designed to increase openness and transparency on military activities across Europe and Russia. Since the crisis in Ukraine began, allies and partners from six countries have participated in four Vienna Document inspections in Russia and Ukraine. Using additional Vienna Document provisions, inspectors continue a near-continuous presence in Ukraine, providing insight into events there. So far, inspectors from 16 countries have participated in five such missions since March 20.

Ukraine has also implemented provisions of the Vienna Document in order to host observers to dispel any concerns about its own military activities by inviting all OSCE participating States to Ukraine from March 5-20. A total of 77 people from 32 OSCE states and the OSCE Secretariat participated in this visit. Ukraine called on Russia to host a similar visit in western Russia near the border with Ukraine, but Russia has not offered to do so.

The use of these tools in Ukraine demonstrates that the Vienna Document can help provide insight and transparency into military activities during a crisis. However, it is not designed to address a crisis when one OSCE participating State ignores the OSCE principles and commitments it has undertaken. Moving forward, the United States will work with our allies and partners to develop ideas to update the Vienna Document to reflect lessons learned.
The United States and its Treaty partners have also made active use of the Open Skies Treaty to monitor events in Ukraine and Russia. The Open Skies treaty establishes a regime of aerial observation flights over the territories of its signatories. The Treaty is designed to enhance mutual understanding and confidence by giving Treaty partners the ability to gather information through aerial imaging on military forces and activities of concern to them. During special OSCE meetings on April 7 and 17 that were convened under Vienna Document provisions to address unusual military activities, the U.S. delegation was able to display Open Skies Treaty imagery of the Russian forces, in order to show that concerns about Russia’s actions and military movements are valid and disturbing. Unfortunately, the Russian Federation has refused to provide information that could dispel the concerns of other states.

Since the Ukraine crisis began, the United States and 15 Treaty partners have flown 11 missions over Ukraine and Western Russia yielding imagery of thousands of square miles of territory. These flights have resulted in valuable data and insights for not only the United States but our partners and allies who are also States Parties.

One particularly notable event which has occurred in light of the crisis: the Treaty’s provision for “Extraordinary Observation Flights” was invoked for the first time. Per Ukraine’s request, two extraordinary flights were conducted over Ukrainian territory to observe whether Russia forces had moved beyond Crimea. In response to this request, Sweden flew from Kiev south to Odessa, with observers from Norway, Belgium, and the U.K. on March 13. On March 14, the U.S. flew along Ukraine’s eastern border with Russia, with observers from Canada and Estonia. These flights provided reassurance to Ukraine and demonstrated our commitment to work with allies to uphold key elements of the Euro-Atlantic security architecture. The following week, Russia accepted an extraordinary flight by Ukraine over its territory near the border. The U.S. is in Kyiv this week flying another extraordinary flight over eastern Ukraine in response to the latest Russian activities.

Since then, a number of allies have conducted observation flights in Russia. We are working closely with allies to maximize the benefit of these missions, coordinating on mission planning as well as sharing imagery and analysis. As an example of the utility of these flights, the German/U.S. mission on March 24 over Russia near the border with Ukraine provided unclassified imagery helping substantiate Russian military activity in Belgorod, Boguchar, and Rostov despite Russia’s denials.

We believe these arms control mechanisms have great importance not only in providing insight and transparency into Russian actions in and around Ukraine, but demonstrating support for our allies and partners in ensuring their sovereignty and territorial integrity. More broadly, such mechanisms contribute to greater transparency and stability in the Euro-Atlantic region.
I want to underscore that our NATO allies and other partners in Europe are strong supporters of arms control in Europe and our active participation and leadership in those efforts.

Compliance Report

Let me turn now to the issue of compliance. First and foremost, the Administration takes compliance with all arms control agreements extremely seriously. For this reason, this Administration worked hard to produce a compliance report in July of 2010 – the first delivered to Congress after a five year lapse – and has produced one every year since. Prior to this Administration, 2005 was the last year that a report had been delivered to Congress.
We endeavor every year to produce a compliance report by April 15. This is challenging, as the reporting period ends at the end of each calendar year, leaving us just three and one half months to gather the necessary input from the Departments of State, Defense, and Energy, as well as the Intelligence Community. Given the volume of information and seriousness with which the Administration conducts its annual compliance review, a thorough collecting, weighing, and reviewing of all available information throughout the reporting period is required and takes time. As such, despite our best efforts we have not always been able to complete the coordination process in time to provide the report by April 15. This will be true again this year, however, the report will be fully coordinated and available later in the spring. The report is currently in final interagency review.

Let me add that when countries do not uphold their arms control obligations, we hold them accountable. Russia ceased implementation of its Conventional-Armed Forces in Europe Treaty (CFE) obligations in December 2007. After two intense diplomatic efforts to break the impasse and encourage Russia to resume implementation, in November 2011, the United States ceased carrying out certain obligations under the CFE Treaty with regard to Russia. We were joined by our NATO Allies that are party to the Treaty, as well as Georgia and Moldova, in taking this step – in all, 24 of the 30 countries that are party to the Treaty.

As we have previously stated, we have concerns about Russian compliance with the INF Treaty. We have raised them with Russia and are pressing for clear answers in an effort to resolve our concerns because of the importance of the INF Treaty to Euro-Atlantic security. We’ve briefed our NATO allies on our concerns and will continue to coordinate with them on this and other matters that affect our common security. We have been keeping Congress informed on this matter through briefings with relevant congressional committees and will continue to do so. We will continue to work with Russia to resolve our concerns, and to encourage mutual steps to help foster a more stable, resilient, transparent security relationship. We’re not going to drop the issue until our concerns have been addressed. As I hope you understand, I am not able to go more deeply into this subject in an open hearing, and would ask that you not press me to do so in open session.

As another example of how we seek to address compliance concerns, several years ago we had questions with regard to China’s implementation of the Chemical Weapons Convention. Through active engagement with Chinese officials about whether China should have declared production and subsequent consumption of a particular chemical, our technical experts outlined U.S. concerns and China addressed each of our questions in a collegial and productive manner to close out this issue.

Conclusion

Arms control treaties and agreements continue to be an important tool that can enhance the security of the United States and our friends and allies. The successful implementation of the New START Treaty, and the important contributions that the Open Skies Treaty and the Vienna Document have played recently in Ukraine, demonstrate the continued relevance of arms control for our national security. Thank you very much. I look forward to your questions.

BANKER ACCUSED OF HELPING U.S. TAXPAYERS TO HIDE OVERSEAS BANK ACCOUNTS BY USING FAKE NAMES

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, April 30, 2014

California Banker Charged with Helping U.S. Taxpayers Conceal Secret Israeli Bank Accounts

Shokrollah Baravarian, of Beverly Hills, California, was charged today in the U.S. District Court for the Central District of California with conspiracy to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced.

According to the indictment, Baravarian, a former senior vice president at the Los Angeles branch of a bank headquartered in Tel Aviv, Israel, conspired to conceal the existence of undeclared accounts owned and controlled by U.S. customers in Israel.  The indictment alleges that these accounts were concealed from the IRS by opening them under pseudonyms, code names and the names of nominee entities set up in the British Virgin Islands and the island of Nevis.

“This charge results from an ongoing and extensive investigation into the use of undeclared bank accounts in Israel, and demonstrates the department’s determination to find and prosecute those who help U.S. taxpayers evade taxes through offshore accounts located anywhere in the world,” said Deputy Attorney General James M. Cole.

“IRS-Criminal Investigation and Tax Division prosecutors have been investigating the use of undeclared bank accounts globally, and charges have been brought against not only the U.S. taxpayers with undeclared Israeli bank accounts but also those who facilitate the hiding of assets and income abroad,” said Assistant Attorney General Kathryn Keneally for the Tax Division.  “Whether it be Israel, Switzerland, the Caribbean or elsewhere, the Justice Department is finding the hiding places and is committed to prosecuting tax cheats.”

“The defendant assisted others to hide the true ownership of offshore bank accounts through the use of code names and nominee entities,” said Chief of IRS-Criminal Investigation Richard Weber.  “Our special agents unraveled the complex financial transactions used to disguise the funds in the undeclared accounts.  Those who help others commit tax evasion risk prosecution and substantial monetary penalties.”

The indictment further alleges that Baravarian assisted U.S. customers in secretly accessing the funds in their undeclared accounts by obtaining back-to-back loans from the Los Angeles branch of the bank.  According to the indictment, a back-to-back loan was a loan that was secured by funds in an undeclared account in Israel and issued by the Los Angeles branch to a U.S. customer.  Baravarian is alleged to have helped conceal the fact that U.S. customers were using their own funds as collateral by purposely not keeping copies of loan-related documents in the files at the Los Angeles branch.  These documents included Israeli account information and pledge agreements used to secure the loans.  As detailed in the indictment, some U.S. customers obtained back-to-back loans from the Los Angeles branch by transferring funds to Israel from other foreign countries, including Switzerland and China.

The indictment further alleges that a banker in Israel would periodically travel to Los Angeles and meet with U.S. customers to discuss their account statements.  Prior to making these trips, the banker would redact the names of the U.S. customers reflected on the account statements.

Baravarian is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with conspiring to defraud the United States in connection with using undeclared bank accounts in Israel to obtain back-to-back loans in the United States.

U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns and on a Report of Foreign Bank and Financial Reports filed with the U.S. Treasury.

If convicted, Baravarian faces a potential maximum prison term of five years and a maximum fine of $250,000.  The charge contained in the indictment is only an allegation. The defendant is presumed innocent and it is the government’s burden to prove guilt beyond a reasonable doubt.

The case was investigated by special agents of IRS-Criminal Investigation.  Senior Litigation Counsel John E. Sullivan and Assistant Chief Elizabeth C. Hadden of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Sandra R. Brown, Chief of the Tax Division of the U.S. Attorney’s Office for the Central District of California.

CDC SAYS UP TO 40 PERCENT OF DEATHS FROM 5 LEADING CAUSES ARE PREVENTABLE

FROM:  CENTERS OF DISEASE CONTROL AND PREVENTION 

Up to 40 percent of annual deaths from each of five leading US causes are preventable

Each year, nearly 900,000 Americans die prematurely from the five leading causes of death – yet 20 percent to 40 percent of the deaths from each cause could be prevented, according to a study from the Centers for Disease Control and Prevention.

The five leading causes of death in the United States are heart disease, cancer, chronic lower respiratory diseases, stroke, and unintentional injuries. Together they accounted for 63 percent of all U.S. deaths in 2010, with rates for each cause varying greatly from state to state.  The report, in this week’s issue of CDC’s weekly journal, Morbidity and Mortality Weekly Report, analyzed premature deaths (before age 80) from each cause for each state from 2008 to 2010. The authors then calculated the number of deaths from each cause that would have been prevented if all states had same death rate as the states with the lowest rates.
The study suggests that, if all states had the lowest death rate observed for each cause, it would be possible to prevent:

34 percent of premature deaths from heart diseases, prolonging about 92,000 lives
21 percent of premature cancer deaths, prolonging about 84,500 lives

39 percent of premature deaths from chronic lower respiratory diseases, prolonging about 29,000 lives

33 percent of premature stroke deaths, prolonging about 17,000 lives

39 percent of premature deaths from unintentional injuries, prolonging about 37,000 lives

“As a doctor, it is heartbreaking to lose just one patient to a preventable disease or injury – and it is that much more poignant as the director of the nation’s public health agency to know that far more than a hundred thousand deaths each year are preventable,” said Tom Frieden, MD, MPH. “With programs such as the CDC’s Million Hearts initiative, we are working hard to prevent many of these premature deaths.”

The numbers of preventable deaths from each cause cannot be added together to get an overall total, the authors note. That’s because prevention of some premature deaths may push people to different causes of death. For example, a person who avoids early death from heart disease still may die prematurely from another preventable cause, such as an unintentional injury.
Modifiable risk factors are largely responsible for each of the leading causes of death:
Heart disease risks include tobacco use, high blood pressure, high cholesterol, type 2 diabetes, poor diet, overweight, and lack of physical activity.

Cancer risks include tobacco use, poor diet, lack of physical activity, overweight, sun exposure, certain hormones, alcohol, some viruses and bacteria, ionizing radiation, and certain chemicals and other substances.

Chronic respiratory disease risks include tobacco smoke, second-hand smoke exposure, other indoor air pollutants, outdoor air pollutants, allergens, and exposure to occupational agents.

Stroke risks include high blood pressure, high cholesterol, heart disease, diabetes, overweight, previous stroke, tobacco use, alcohol use, and lack of physical activity.

Unintentional injury risks include lack of seatbelt use, lack of motorcycle helmet use, unsafe consumer products, drug and alcohol use (including prescription drug misuse), exposure to occupational hazards, and unsafe home and community environments.

Many of these risks are avoidable by making changes in personal behaviors. Others are due to disparities due to the social, demographic, environmental, economic, and geographic attributes of the neighborhoods in which people live and work. The study authors note that if health disparities were eliminated, as called for in Healthy People 2020External Web Site Icon, all states would be closer to achieving the lowest possible death rates for the leading causes of death.
”We think that this report can help states set goals for preventing premature death from the conditions that account for the majority of deaths in the United States,” said Harold W. Jaffe, MD, the study’s senior author and CDC’s associate director for science. “Achieving these goals could prolong the lives of tens of thousands of Americans.”

Southeastern states had the highest number of preventable deaths for each of the five causes. The study authors suggest that states with higher rates can look to states with similar populations, but better outcomes, to see what they are doing differently to address leading causes of death.

SWISS CITIZEN PLEADS GUILTY FOR ROLE IN U.S. TAX EVASION SCHEMES

 FROM:  U.S. JUSTICE DEPARTMENT 

Office of Public Affairs

FOR IMMEDIATE RELEASE

Wednesday, April 30, 2014

Swiss Offshore Tax Evasion Enabler Pleads Guilty

Josef Dörig, 72, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as the owner of a trust company in Switzerland.  Deputy Attorney General James Cole, Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.  Dörig was charged in a one count superseding indictment on July 21, 2011.  Sentencing is set for Aug. 8, 2014, and Dörig faces a statutory maximum sentence of five years in prison.

“Today’s plea further pulls back the curtain on efforts by Swiss banks to help U.S. taxpayers evade taxes through the use of sham trusts and foundations,” said Deputy Attorney General Cole.  “Rest assured, the days of bank secrecy for U.S. tax cheats in Switzerland – and around the world – are numbered.”

“This plea sends a strong message to those who use or help others use offshore bank accounts to evade U.S. taxes,” said Assistant Attorney General Keneally.  “We are receiving information from a variety of sources and are committed to investigating and prosecuting this wrongdoing.”

“We will continue to investigate and prosecute banks and individuals who assist U.S. citizens in the evasion of income taxes with overseas accounts,” said U.S. Attorney Boente.  “The doors are quickly closing on this illegal activity.”

“Assisting American taxpayers to evade their tax obligations with the use of secret bank accounts held in sham entities violates the law, and we will find those who are doing it,” said Chief of IRS-Criminal Investigation Richard Weber.  “IRS-CI will pursue those who use anonymous offshore accounts to avoid paying their fair share.  IRS Criminal Investigation is proud to have shared our hallmark expertise in following the money trail in this and other increasingly sophisticated criminal schemes.”

In a statement of facts filed with the plea agreement, Dörig admitted that between 1997 and 2011, while owning and operating a trust company, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret bank accounts held in the names of sham entities at a financial institution referred to in the superseding indictment as International Bank (IB), one of the biggest banks in Switzerland and one of the largest wealth managers in the world.

According to the statement of facts, from 1972 to 1996, Dörig worked for a subsidiary of IB.  The subsidiary formed, managed and maintained nominee tax haven entities.  Individuals concealed their assets by holding their accounts at IB in the names of these tax haven entities.  During this time, the subsidiary managed and maintained over 100 sham entities for U.S. taxpayers committing tax evasion.

Also included in the statement of facts, in 1997, executives at the subsidiary devised a plan to spin off all of these sham entities into a new trust company, Dörig Partner AG, to be owned and operated by Dörig, who was then an employee of the subsidiary.  Dörig was required to make his best efforts to keep the existing accounts at IB open and to ensure that any clients referred to him by IB would open new accounts at that institution.

According to the statement of facts, IB promoted Dörig Partner as a provider of various entity structures.  The phone list used in IB’s New York representative office identified Dörig Partner as an external trust expert.  Dörig Partner also sublet space from IB in an office tower where a private bank owned by IB was the major tenant.

As part of the conspiracy, Dörig traveled to the United States to introduce himself to new clients he had obtained as part of the spin-off.  In the following years, he traveled to the United States with bankers from IB, including his co-defendants Markus Walder, Marco Parenti-Adami and Michele Bergantino, to meet with existing and prospective clients who already had undeclared accounts at IB but had been identified by the IB’s bankers as potential candidates for the use of a structure.

According to the statement of facts, although Dörig ostensibly controlled both the structure and the account at IB, in practice, many of the U.S. taxpayers with undeclared accounts controlled the assets in those accounts by dealing directly with IB bankers, often without either the knowledge or consent of Dörig.

According to the statement of facts, in 2008, IB ordered Dörig Partner to close accounts for the structures they managed.  Dörig turned to an asset manager at a financial services firm in Zurich for assistance.  The financial services firm maintained a master account in its own name at a private bank in Gibraltar, and then opened sub-accounts for Dörig’s clients at that bank to which Dörig transferred the funds from the clients’ undeclared accounts at IB.  The financial services firm provided the Gibraltar bank only with the number associated with each sub-account and did not inform the bank of any information regarding the owners of the assets in the sub-accounts.

This case is being investigated by IRS-Criminal Investigation.  Assistant U.S. Attorney Mark D. Lytle and Trial Attorneys Mark F. Daly and Nanette L. Davis of the Tax Division are prosecuting the case.

SECRETARY KERRY'S REMARKS TOURING GE FACILITY IN LUANDA, ANGOLA

FROM:  THE STATE DEPARTMENT 

Remarks While Touring a GE Facility in Luanda

Remarks

John Kerry

Secretary of State

Luanda, Angola

May 4, 2014

---

Well, Jay Ireland, thank you very much for a generous welcome here to General Electric in Luanda in the center of this extraordinary economic activity. I’m very excited to be here. I’m sorry that my wife is not here, because she was born in Mozambique and speaks – her first language is Portuguese. (Applause.) So I hear it around the house all the time – muito obrigadoand all that stuff. (Laughter.)

But it’s a privilege for me to be able to be here, and I want to thank Foreign Minister Chikoti for his welcome and for the opportunity to be able to meet the president tomorrow and have a good conversation about the bilateral relationship between the United States and Angola. I am particularly pleased to be here with other representatives of the oil and gas industry, a representative from Chevron, from ConocoPhilips, as well as from ExxonMobil – Esso, as you call it here. And I’m very grateful that the representative from the U.S.-Angola Chamber of Commerce is here, too.

As you’ve heard in the earlier introductions, I’m here with former United States Senator Russ Feingold, who is our – President Obama’s and my special envoy to the Great Lakes region and who is working to produce greater stability and peace in the region. President dos Santos and Angola have provided important leadership, and I want to thank you, Angola, for the leadership an the participation and the help to solve conflicts that have gone on for too long.

But as I mentioned a moment ago, we’re standing in a place of enormous economic activity with great promise for future economic growth and development. I am accompanied on this trip by the president and CEO of the EximBank^[1], Elizabeth Littlefield, because the EximBank^[2] is very much a partner with General Electric and very involved in helping to support economic development here in Angola and in other parts of Africa.

In fact, though EximBank^[2] we have just provided a $600 million, just about a $600 million loan guarantee that will assist in the purchase of a Boeing 777 for Angola. This will grow the opportunity of, obviously, more ability to have business and more ability to have trade, and also for people to simply come to be able to engage in some of the exciting things that are happening in Angola. In addition, Exim^[2] is providing another $300 million or so of additional economic investment here in Angola.

So let me just say quickly why being here is important today. Africa is changing. Eight of the ten fastest-growing economies in the world are here in Africa. There is enormous opportunity for the people of Africa, the people of Angola, to be able to gain in healthcare, in education, in jobs, in the quality of life. And I know the government is very focused on how to provide for increased standard of living for the people of the country. That comes from fair and reasonable trade agreements where everybody benefits, where there’s an ability to create jobs. When a Boeing airliner is bought from Boeing, it creates jobs in America, but it will also create jobs and opportunity here in Angola.

General Electric has recently sold four power turbines to Angola. This is for a project in Soyo. And this will help provide the power that then generates the ability for hospitals, for schools, for homes, for cities, for stores to be able to grow and prosper. So we believe there are great opportunities on which we can build where, most importantly, Angolans will benefit.
I just spoke with the representative for ConocoPhillips, who tells me and the representative for Chevron – who tell me about the several thousands of employees. ConocoPhilipps is newer here, but Chevron has about 3,500 workers employed. So more and more Angolans are being trained to take on more and more different kinds of important jobs.

The first lady of Angola was in Los Angeles a number of years ago, and she was talking with the executives there about a disease here in Angola. A lot of people thought you couldn’t do anything about it. But Chevron, which had been working here for many years, stepped up and they talked with the Texas Children’s Hospital and they got care to be able to come her to help cure this disease for children. More than 3,000 children’s lives have been saved

So this is not just about business. This is about building a relationship between two people, two countries, and building a future. And when I look out at the economic energy out here in the port in all these containers and these ships and the work that you’re doing, I am confident that Angola, working together as you are now, will be able to help contribute to an extraordinary journey in Africa as a whole, and we will provide greater opportunity to everybody.

Thank you for the privilege. Muito obrigado. (Applause.)

---

[1] Elizabeth Littlefield is the president and CEO of OPIC.
[2] OPIC

PRESIDENT OBAMA OFFERS CONDOLENCES FOR LANDSLIDE IN AFGHANISTAN'S BADAKHSHAN PROVINCE

May 04, 2014

FROM:  THE WHITE HOUSE PRESIDENT OBAMA, PRESIDENT KARZAI, AFGHANISTAN, LANDSLIDE IN BADAKHSHAN

Readout of the President’s Call with President Karzai

President Obama called President Karzai today to express his condolences for the extensive loss of life in the May 2 landslide in Afghanistan’s rural northeast province of Badakhshan. President Karzai expressed appreciation for international assistance and described to the President the ongoing Afghan government response, to include visits to the region by the Afghan Vice Presidents. President Obama affirmed the support of the American people as the Afghans respond to this tragedy and offered additional U.S. assistance to the ongoing relief efforts.

President Obama also expressed support for the April 5 Afghan elections and reaffirmed that the United States supports a sovereign, stable, unified, and democratic Afghanistan.

TRANSCRIPT: PRESIDENT OBAMA'S REMARKS AT WHITE HOUSE CORRESPONDENTS' DINNER

FROM:  THE WHITE HOUSE 

Remarks by the President at White House Correspondents' Dinner

10:21 P.M. EDT

THE PRESIDENT:  Thank you so much, everybody.  Have a seat, have a seat.  Before I get started, can we get the new presidential setup out here? 

(Aides bring out two ferns.)

It was worked before.  (Laughter and applause.)  That’s more like it.

It is great to be back.  What a year, huh?  I usually start these dinners with a few self-deprecating jokes.  After my stellar 2013, what could I possibly talk about?  (Laughter.)

I admit it -- last year was rough.  Sheesh.  (Laughter.)  At one point things got so bad, the 47 percent called Mitt Romney to apologize.  (Laughter.)

Of course, we rolled out healthcare.gov.  That could have gone better.  (Laughter.)  In 2008 my slogan was, “Yes We Can.”  In 2013 my slogan was, “Control-Alt-Delete.”  (Laughter.)  On the plus side, they did turn the launch of healthcare.gov into one of the year’s biggest movies.  (Laughter.)

But rather than dwell on the past, I would like to pivot to this dinner.  Let’s welcome our headliner this evening, Joel McHale.  (Applause.)  On “Community,” Joel plays a preening, self-obsessed narcissist.  So this dinner must be a real change of pace for you.  (Laughter.)

I want to thank the White House Correspondents Association for hosting us here tonight.  I am happy to be here, even though I am a little jet-lagged from my trip to Malaysia.  The lengths we have to go to get CNN coverage these days.  (Laughter and applause.)  I think they’re still searching for their table.  (Laughter and applause.)

MSNBC is here.  They’re a little overwhelmed.  (Laughter.)  They’ve never seen an audience this big before.  (Laughter.)

But, look, everybody is trying to keep up with this incredibly fast-changing media landscape.  For example, I got a lot of grief on cable news for promoting Obamacare to young people on Between Two Ferns.  But that’s what young people like to watch.  And to be fair, I am not the first person on television between two potted plants.  (Laughter and applause.) 

Sometimes I do feel disrespected by you reporters.  But that’s okay.  Seattle Seahawk cornerback Richard Sherman is here tonight.  (Applause.)  And he gave me some great tips on how to handle it.  Jake Tapper, don’t you ever talk about me like that!  (Laughter.)  I’m the best President in the game!  (Laughter.) 

What do you think, Richard?  Was that good?  A little more feeling next time?

While we’re talking sports, just last month, a wonderful story -- an American won the Boston Marathon for first time in 30 years.  (Applause.)  Which was inspiring and only fair, since a Kenyan has been president for the last six.  (Laughter and applause.)  Had to even things out.  (Laughter.)

We have some other athletes here tonight, including Olympic snowboarding gold medalist Jamie Anderson is here.  We’re proud of her.  (Applause.)  Incredibly talented young lady.  Michelle and I watched the Olympics -- we cannot believe what these folks do -- death-defying feats -- haven’t seen somebody pull a “180” that fast since Rand Paul disinvited that Nevada rancher from this dinner.  (Laughter.)  As a general rule, things don’t like end well if the sentence starts, “Let me tell you something I know about the negro.”  (Laughter.)  You don’t really need to hear the rest of it.  (Laughter and applause.)  Just a tip for you -- don’t start your sentence that way.  (Laughter.)

Speaking of Rand Paul -- (laughter) -- Colorado legalized marijuana this year, an interesting social experiment.  I do hope it doesn’t lead to a whole lot of paranoid people who think that the federal government is out to get them and listening to their phone calls.  (Laughter.)  That would be a problem.  (Laughter.)

And speaking of conservative heroes, the Koch brothers bought a table here tonight.  But as usual, they used a shadowy right-wing organization as a front.  Hello, Fox News.  (Laughter and applause.)

I’m just kidding.  Let’s face it, Fox, you’ll miss me when I’m gone.  (Laughter.)  It will be harder to convince the American people that Hillary was born in Kenya.  (Laughter and applause.)

A lot of us really are concerned about the way big money is influencing our politics.  I remember when a Super PAC was just me buying Marlboro 100s instead of regulars.  (Laughter.)

Of course, now that it’s 2014, Washington is obsessed on the midterms.  Folks are saying that with my sagging poll numbers, my fellow Democrats don’t really want me campaigning with them.  And I don’t think that’s true -- although I did notice the other day that Sasha needed a speaker at career day, and she invited Bill Clinton.  (Laughter.)  I was a little hurt by that.  (Laughter.)

Both sides are doing whatever it takes to win the ruthless game.  Republicans -- this is a true story -- Republicans actually brought in a group of consultants to teach their candidates how to speak to women.  This is true.  And I don’t know if it will work with women, but I understand that America’s teenage boys are signing up to run for the Senate in droves.  (Laughter.)

Anyway, while you guys focus on the horserace, I’m going to do what I do -- I’m going to be focused on everyday Americans.  Just yesterday, I read a heartbreaking letter -- you know I get letters from folks from around the country; every day I get 10 that I read -- this one got to me.  A Virginia man who’s been stuck in the same part-time job for years; no respect from his boss; no chance to get ahead.  I really wish Eric Cantor would stop writing me.  (Laughter.)  You can just pick up the phone, Eric.  (Laughter.)

And I’m feeling sorry -- believe it or not -- for the Speaker of the House, as well.  These days, the House Republicans actually give John Boehner a harder time than they give me, which means orange really is the new black.  (Laughter and applause.)

But I have not given up the idea of working with Congress. In fact, two weeks ago, Senator Ted Cruz and I, we got a bill done together.  And I have to say, the signing ceremony was something special.  We’ve got a picture of it I think.  (Laughter.)

Look, I know, Washington seems more dysfunctional than ever.  Gridlock has gotten so bad in this town you have to wonder:  What did we do to piss off Chris Christie so bad?  (Laughter and applause.)

One issue, for example, we haven’t been able to agree on is unemployment insurance.  Republicans continue to refuse to extend it.  And you know what, I am beginning to think they’ve got a point.  If you want to get paid while not working, you should have to run for Congress just like everybody else.  (Laughter and applause.)

Of course, there is one thing that keeps Republicans busy.  They have tried more than 50 times to repeal Obamacare.  Despite that, 8 million people signed up for health care in the first open enrollment.  (Applause.)  Which does lead one to ask, how well does Obamacare have to work before you don’t want to repeal it?  What if everybody’s cholesterol drops to 120?  (Laughter.)  What if your yearly checkup came with tickets to a Clippers game?  (Laughter.)  Not the old, Donald Sterling Clippers -- the new Oprah Clippers.  Would that be good enough?  (Laughter.)  What if they gave Mitch McConnell a pulse?  (Laughter.)  What is it going to take?  (Laughter.) 

Anyway, this year, I’ve promised to use more executive actions to get things done without Congress.  My critics call this the “imperial presidency.”  The truth is, I just show up every day in my office and do my job.  I’ve got a picture of this I think.  (Laughter and applause.)  You would think they’d appreciate a more assertive approach, considering that the new conservative darling is none other than Vladimir Putin.  (Laughter.)  Last year, Pat Buchanan said Putin is “headed straight for the Nobel Peace Prize.”  He said this.  Now I know it sounds crazy but to be fair, they give those to just about anybody these days.  (Laughter.)  So it could happen.

But it’s not just Pat -- Rudy Giuliani said Putin is “what you call a leader.”  Mike Huckabee and Sean Hannity keep talking about his bare chest, which is kind of weird.  (Laughter.)  Look it up -- they talk about it a lot.  (Laughter.) 

It is strange to think that I have just two and a half years left in this office.  Everywhere I look, there are reminders that I only hold this job temporarily.  (Laughter.)

But it’s a long time between now and 2016, and anything can happen.  You may have heard the other day, Hillary had to dodge a flying shoe at a press conference.  (Laughter and applause.)  I love that picture.  (Laughter.)

Regardless of what happens, I’ve run my last campaign and I’m beginning to think about my legacy.  Some of you know -- Mayor Rahm Emanuel recently announced he is naming a high school in Chicago after me, which is extremely humbling.  I was even more flattered to hear Rick Perry, who is here tonigh, is doing the same thing in Texas.  Take a look.  (Laughter.)  Thank you, Rick.  It means a lot to me.  (Laughter and applause.) 

And I intend to enjoy all the free time that I will have.  George W. Bush took up painting after he left office, which inspired me to take up my own artistic side.  (Laughter.)  I’m sure we’ve got a shot of this.  (Laughter.)  Maybe not.  The joke doesn’t work without the slide.  (Laughter.)  Oh well.  Assume that it was funny.  (Laughter.)  Does this happen to you, Joel?  It does?  Okay.

On a more serious note, tonight reminds us that we really are lucky to live in a country where reporters get to give a head of state a hard time on a daily basis -- and then, once a year, give him or her the chance, at least, to try to return the favor.  

But we also know that not every journalist, or photographer, or crewmember is so fortunate, because even as we celebrate the free press tonight, our thoughts are with those in places around the globe like Ukraine, and Afghanistan, and Syria, and Egypt, who risk everything -- in some cases, even give their lives -- to report the news. 

And what tonight also reminds us is that the fight for full and fair access goes beyond the chance to ask a question.  As Steve mentioned, decades ago, an African American who wanted to cover his or her President might be barred from journalism school, burdened by Jim Crow, and, once in Washington, banned from press conferences.  But after years of effort, black editors and publishers began meeting with FDR’s press secretary, Steve Early.  And then they met with the President himself, who declared that a black reporter would get a credential.  And even when Harry McAlpin made history as the first African American to attend a presidential news conference, he wasn’t always welcomed by the other reporters.  But he was welcomed by the President, who told him, I’m glad to see you, McAlpin, and I’m very happy to have you here.

Now, that sentiment might have worn off once Harry asked him a question or two -- (laughter) -- and Harry’s battles continued.  But he made history.  And we’re s proud of Sherman and his family for being here tonight, and the White House Correspondents Association for creating a scholarship in Harry’s name.  (Applause.)

For over 100 years, even as the White House Correspondents Association has told the story of America’s progress, you’ve lived it, too -- gradually allowing equal access to women, and minorities, and gays, and Americans with disabilities.  And, yes, radio, and television, and Internet reporters, as well.  And through it all, you’ve helped make sure that even as societies change, our fundamental commitment to the interaction between those who govern and those who ask questions doesn’t change.  And as Jay will attest, it’s a legacy you carry on enthusiastically  every single day.

And because this is the 100^th anniversary of the Correspondents’ Association, I actually recorded an additional brief video thanking all of you for your hard work.  Can we run the video?

(Video fails to play.)

THE PRESIDENT:  What’s going on?  (Laughter.)  I was told this would work.  Does anybody know how to fix this?  (Laughter.) 

(Secretary Sebelius enters from backstage.)

THE PRESIDENT:  Oh, thank you.  (Laughter and applause.)  You got it?

SECRETARY SEBELIUS:  I got this -- I see it all the time.  There, that should work. 

(Video plays.)

THE PRESIDENT:  Thank you very much, everybody.  God bless you.  And God bless America, and thank you, Kathleen Sebelius.  (Applause.) 

END
10:40 P.M. EDT

SECRETARY KERRY'S REMARKS IN KINSHASA, DEMOCRATIC REPUBLIC OF THE CONGO

FROM:  U.S. STATE DEPARTMENT 

Press Availability on the D.R.C. and the Great Lakes Region

Press Availability

John Kerry

Secretary of State

Kinshasa, Democratic Republic of the Congo

May 4, 2014

---

SECRETARY KERRY: Well, good morning, everybody. I’ve just come from a productive, good meeting with President Kabila and Foreign Minister Tshibanda. We spoke candidly about the enormous opportunities and the challenges that are faced by the Democratic Republic of the Congo, and we spoke very candidly also about the ways in which we can make progress going forward. I congratulated the president on the accomplishments that he and his government have achieved, together with the work of MONUSCO, but we also talked about the steps that now need to be taken to provide further stability; increased, broader democracy; greater justice; and a greater amount of economic development for the Congolese people.

The president expressed his vision and his commitment to each of these efforts, and I think it’s fair to say that he leaned forward on his commitment to make sure that the accords – the Kampala accords as well as the peace and security agreement are well implemented over the course of the days ahead.

The suffering in the Great Lakes region of Africa and the crisis in the eastern part of the Democratic Republic of Congo really continues to trouble all of us. The eastern D.R.C. has been the scene of some of the most horrific crimes of violence against women and girls that are imaginable. And it’s a powerful reminder of the obligations that we all face, that we all share with respect to not only ending the killing and the fear, but in order to work for the birth of a new generation of stability and of hope.

Achieving a lasting peace in the D.R.C. is a priority of President Obama and a priority of mine. And that is why we appointed a close colleague of mine from the Senate for 18 years, Senator Russ Feingold, who is here with us today, as the United States Special Envoy for the African Great Lakes region and the Democratic Republic of Congo. Russ brings enormous intellect, passion, commitment to this issue. And already, he has been able to have an impact on the ground. He has been working with the UN Representative Mary Robinson, with the leaders in the region, and we are very pleased that the Nairobi Declarations were achieved, as well as a reduction in violence.

But he would be the first to say that we have further steps to take in order to complete this task, and we all understand what they are. The efforts to disarm, to demobilize, to reintegrate – these are the priorities of the moment. I want to commend the Congolese military and MONUSCO for defeating the M23 and for taking the fight to the Allied Democratic Forces – the ADF, as we know them – and many other Congolese armed groups. The United States welcomes the Kabila government’s commitment to focus on the Democratic Forces for the Liberation of Rwanda, and we discussed with President Kabila the steps that need to be taken with respect to that.

But I need to be clear: Military force alone will not deliver stability to the D.R.C. Lasting peace will not grow out of the barrel of a gun. It will come from restoring state authority and state services, and providing the capacity building that is necessary in those areas that have been recaptured from armed groups. It will also come from demobilizing the combatants and returning them to civilian life. I welcome the government’s initial efforts on this front, and we look forward to working with them as we continue programs that will advance that initiative.
The United States also strongly supports the Peace, Security, and Cooperation Framework peace process. Now I can’t emphasize enough how important that process is in identifying and resolving the root causes of the conflict in the D.R.C. as well as in the entire Great Lakes region. It’s imperative that all of the signatories fully implement their commitments and support the ongoing broader process of bringing peace to the region. Peace cannot be delayed or deferred or denied, and I think the people of Congo – of the Democratic Republic of Congo made that clear.

It is not enough just to focus on the military side of this equation, and it’s not enough to focus only on the political stability or economic development side of it. We need to work on all of these at the same time, and we need to keep the pressure on the FDLR and the other armed groups. We need to support the parties as they try to implement the framework agreement. So we must provide partnership and leadership as we urge all of the parties to come together to create a political solution.

And that means free, fair, timely, and transparent elections. I encouraged President Kabila to work with his government and the parliament in order to complete the election calendar and the budget. And they need to do so in accordance with the constitution. The United States is committed to supporting the Congolese people, the government, and other donors as they work towards decisions that are credible, timely, and consistent with the current constitution. And obviously, it is very clear that the dates and the process need to be set and fully defined, and the sooner, the better.

As a sign of our commitment, I am pleased to announce that $30 million will be immediately made available from the United States in additional funding in order to support transparent and credible elections as well as recovery and reconstruction programs in the eastern D.R.C. This contribution comes on top of already substantial U.S. assistance for economic development for the Congolese people. USAID plans to invest $1.2 billion over the next five years in the D.R.C., focusing on improving political and economic governance and on promoting social development. Our programs will strengthen Congolese institutions and improve their ability to respond to the peoples’ needs, and that includes the delivery of critical healthcare and education services.

I also spoke with President Kabila about another issue which has been a concern of late, and that is the question of adoption for families in the United States and friends of mine in the Senate who know that there is important, required attention to this question of international adoption. Here in the D.R.C. since 2009, the number of American families able to provide a house to children who have lost their parents has grown each year. And today, I urged President Kabila to move as rapidly as possible in the review of the situation that raised some concerns, and also to lift the new freeze on international adoption from the D.R.C. We want to enable Congolese children, who seek to, to be able to be matched with parents abroad who are eager to provide them with a secure and happy future. And as someone – I have seen this firsthand. My sister has adopted a young child from China. I know how positive and important this can be for everybody concerned, and I think it’s an issue that’s important to all of us as a matter of basic human decency.

And we have to admit, all of us, we can have no illusions about the challenges that lie ahead. But even as we look down a complicated road, we cannot lose sight of the fact that the Democratic Republic of the Congo is a place of enormous potential. Its people provide enormous potential. And the people of Congo want a better future. The fact is that together, we have an ability to be able to work to support the people of the Congo, to build a more secure and prosperous future, which is a responsibility that belongs to all of us.

I can guarantee you that the United States, through the immediate efforts of our ambassador on the ground, our embassy, and particularly our special envoy, we will continue to work in every way that we know how to be a good partner in this effort, and we look forward to working with the people of Congo in that in furtherance of that objective.

So I’d be delighted to answer a couple of questions if there are a few.

MS. PSAKI: Great. The first question will be from Mimie Engumb from Radio Oakpi.

QUESTION: (In French.)

SECRETARY KERRY: (In French.)

QUESTION: (In French.)

SECRETARY KERRY: Well, I think I just mentioned it, to be honest with you. There will be elections in many countries in Africa over the course of the next year or so. I think there are 15 presidential elections and some 37 elections in countries in Africa. And so every election is really critical and important, and it is important for the people to be able to know what the process is, to have confidence in that process.

And the United States position is very clear: We believe that the elections need to be free, fair, open, transparent, accountable; and the sooner the process is announced, the sooner that the date is set, the sooner people have an ability to be able to participate; and we believe that it ought to be done in keeping with the constitutional process of the country.

MS. PSAKI: The next question will be from Nicolas Revise from AFP.

QUESTION: Thank you very much, Mr. Secretary. You just announced your financial support for D.R.C. for its demobilization plan, but is there some conditions to this support? What are specifically these conditions? Did you ask specifically to President Kabila to give this green light to go after the FDLR still active in eastern Congo? And politically, is the U.S. support tied to the respect of the constitution? So did you ask specifically to President Kabila not to change the constitution and not to run for a third term? Thank you.

SECRETARY KERRY: Well, let me discuss all of that. But first of all, with respect to the conditions, obviously the demobilization is taking place in accordance with the agreement. And that agreement requires people to go back to their homes, where possible, where they sign, appropriately, an amnesty for those who qualify. And I think for those who don’t, it is clear that there remains – that is, people who may have been engaged in crimes against humanity, war crimes – those people remain liable for that. But others who sign the agreement and sign the amnesty are committed to and encouraged, obviously must return to their homes. That’s an important part of this demobilization effort.

With respect to the election process, the constitution, and the FDLR, we want to see the process of providing stability and completing the task of disarming the armed groups in the east completed. So that includes not just the completion of the efforts with the ADF, but also obviously, indeed making sure that the FDLR is held accountable and that the initiative with respect to them will commence.

The president – we did discuss it. The president made it clear that he intends to do that, and I think that there is a schedule. I don’t want to discuss it because I think it would be inappropriate to do so. But the answer is the president gave his word that that is not just on the agenda, but that he has a specific process in mind and timing.

And with respect to the constitutional process, we talked about the election. I believe the president’s legacy is a legacy that is very important for the country, and that he has an opportunity, which he understands, to be able to put the country on a continued path of democracy. And I believe it is clear to him that the United States of America feels very strongly, as do other people, that the constitutional process needs to be respected and adhered to. That’s how you strengthen a country.

I have no doubt that President Kabila’s legacy will be defined by the progress he has made in the – particularly the last year in addressing the security issues of the east, the economic issues of the country. And he’s a young man with an enormous amount of time to be able to continue to contribute to his country. And I’m quite confident that he will weigh all of those issues as he makes a decision about the future.

But clearly, the United States of America believes that a country is strengthened, that people have respect for their nation and their government, when a constitutional process is properly implemented and upheld by that government. And we obviously believe – we’re a country with term limits. We live by them. We had several hundred years of transformation under that process, and we encourage other countries to adhere to their constitution.
MS. PSAKI: Thank you, everyone.

SECRETARY KERRY: Thank you.