DOD REPORT SAYS CHINA MILITARY MODERNIZING, PREPARING CONTINGENCIES FOR TERRITORIAL DISPUTES

FROM:  U.S. DEFENSE DEPARTMENT 

China Continues Military Modernization, Report Says

By Jim Garamone

American Forces Press Service

WASHINGTON, June 5, 2014 – China continues to modernize and improve its military capabilities, according to an annual DOD report to Congress, and is also preparing for contingencies in the South and East China Seas where Beijing has been involved in increasingly tense territorial disputes with its neighbors.
The just-released “Military and Security Developments Involving the People’s Republic of China for 2014” report said China’s military expenditures continue to grow in keeping with its goal of being a regional and world power.
The main mission for the People’s Liberation Army, the report said, is to improve the capacity of its armed forces to fight and win short-duration, high-intensity regional contingencies.

China continues to prepare for potential conflict in the Taiwan Strait -- which includes deterring or defeating the United States, according to the report.
“The People’s Liberation Army also is placing emphasis on preparing for contingencies other than Taiwan, including potential contingencies in the South and East China Seas,” the report says.

The PLA Navy, the report said, conducted its largest-ever fleet exercise in the Philippine Sea.

China also conducted a series of joint military exercises in September and October, according to the report. “These exercises combined PLA ground, navy and air forces in large-scale maneuvers along China’s southern and southeastern coasts,” the report said.

“As China’s interests, capabilities, and international influence have grown, its military modernization program has also become increasingly focused on military investments for a range of missions beyond China’s coast, including sea lane security, counterpiracy, peacekeeping and humanitarian assistance/disaster relief,” the report says. The United States has worked with China on some of these missions.

Chinese leaders, the report said, see this era as a “period of strategic opportunity” to advance national development.

China is using the strategic space to prioritize economic growth and development and to achieve “national rejuvenation” by 2049, according to the report.
“At the same time, Chinese leaders express a desire to maintain peace and stability along their country’s periphery; expand their diplomatic influence to facilitate access to markets, capital, and resources; and avoid direct confrontation with the United States and other countries,” the report said.

Following this strategy, China’s presence is growing in all regions of the world, the report said. This has led to friction between some of its regional neighbors, including allies and partners of the United States.

The U.S.-China relationship is expanding and improving, the report said. In the military area there are questions about the rate of growth. The Chinese have not been transparent about their spending, with U.S. experts believing the country spends roughly $145 billion on defense, far beyond the $119 billion that China has officially announced.

China has sustained its investments in strategic forces modernization, as well as key anti-access/area-denial capabilities such as advanced intermediate- and medium-range conventional ballistic missiles, long-range land-attack and anti-ship cruise missiles, counter-space weapons, and offensive cyber capabilities, according to the report.

DOD WILL SAVE MONEY RETURNING SITES TO EUROPEAN HOST NATIONS

FROM:  U.S. DEFENSE DEPARTMENT 

Breedlove Supports Returning European Sites to Host Nations

By Army Sgt. 1st Class Tyrone C. Marshall Jr.

American Forces Press Service

DEAUVILLE, France, June 8, 2014 – The Defense Department will save money but will not reduce military readiness when it returns more than 20 sites across Europe that have been designated for return to host nations, the top U.S. military commander in Europe said.

In an interview with American Forces Press Service during events marking the 70th anniversary of D-Day, Air Force Gen. Philip Breedlove, supreme allied commander Europe and commander, U.S. European Command, reaffirmed cutting excess infrastructure will produce DOD savings.

“What I have said ever since I’ve taken command -- even now after we are beginning to look at how do we respond to Russia -- I still believe that we have excess infrastructure here in Europe just like we do in the United States,” he said.
“We’re having to pay to maintain some of that infrastructure,” Breedlove said. “We need to skinny down and get rid of it.”

The Defense Department announced May 23 it will fully return 21 sites to their host nations in Europe, saving the U.S. government approximately $60 million annually. Military officials have said that neither existing force structure nor military capabilities will be affected.

Breedlove emphasized the cuts are intended to reduce excess infrastructure only.
“Infrastructure -- not force structure,” he said. “I believe we’ve probably gone too far in drawing down our force structure in Europe. We need to re-look at that as well.”

“But in the meantime,” Breedlove said, “giving back infrastructure saves us money, and it returns these lands and properties to their nations.”

NSF INVESTIGATES PRECURSORS OF AN EL NINO

FROM:  NATIONAL SCIENCE FOUNDATION 

World Oceans Day: 12 things to know about El Niño: Is it coming, and when?

How will it affect coastal species--and the fish on our dinner tables?

June 5, 2014

Just in time for World Oceans Day on June 8, cometh El Niño. But is El Niño really on the horizon? How certain are we of its arrival? And how will we know it's here? What effect will it have on the weather, on coastal species and on what's on our dinner tables?

To find out, the National Science Foundation (NSF) talked with biological oceanographer Mark Ohman and physical oceanographer Dan Rudnick of California's Scripps Institution of Oceanography. Their work is funded by NSF's Division of Ocean Sciences.

1) What is El Niño?

(Ohman) El Niño is the formation of warmer-than-usual ocean waters in the equatorial Pacific, with extensive temperature changes along the coast of South America during the month of December--hence the Spanish name "El Niño," the Christmas child. Scientists refer to the phenomenon as the El Niño-Southern Oscillation (ENSO). Its warm ocean phase is termed El Niño, and cool ocean phase La Niña.

2) Is El Niño predictable?

(Rudnick) Yes, to some extent. Scientists have identified the precursors of an El Niño; observations to monitor them are taking place near the equator. These observations are used in sophisticated models to predict the timing and magnitude of a developing El Niño. Right now, the models show anything from a weak to a strong El Niño ahead.

3) How do we know that changes in the ocean are the result of El Niño?

(Ohman) El Niño is the strongest year-to-year "signal" on Earth, with distinct temperature and precipitation changes over land and in the sea. Because the ocean is variable on many time scales (tidal, seasonal, year-to-year and decade-to-decade), it's essential to have a baseline of ocean measurements against which to measure departures from normal conditions.

Scientists at the NSF California Current Ecosystem Long-Term Ecological Research site, located in Southern California waters, have access to records of ocean conditions as far back as 1916.

4) Are all El Niños alike?

(Ohman) Not at all. Not only do El Niños vary in intensity, there are at least two major types. In one El Niño, termed Eastern Pacific, the most extreme temperature changes happen off the South American coast. In Central Pacific (CP) El Niños, the center of ocean temperature changes is much farther to the west. Some evidence suggests that the frequency of CP El Niños may be increasing.

(Rudnick) Ultimately every El Niño is different, and only some will strongly affect the coasts of the Americas.

5) When are the effects of El Niño the strongest?

(Ohman) The development of an El Niño is seasonal. The first ocean temperature changes usually begin during the Northern summer (June through September) then continue to grow, reaching their maximum during winter, from November to the following January. But precursors can sometimes be detected as early as February or March of the year of an El Niño's onset.

6) How often do El Niños occur, and how long do they last?

(Ohman) El Niños happen about every two to seven years. The last one was in 2009-10. Their duration is variable, but is usually six to eight months along the equator, with shorter time periods in higher latitudes. There have been exceptional cases of very long El Niños that lasted for two or more years, such as in 1957-59.

7) Are there new ways of observing developing El Niños?

(Rudnick) Yes, we're doing transects--criss-crossings of the ocean--using bullet-shaped, winged robotic gliders that collect underwater data. They're part of a project called Repeat Observations by Gliders in the Equatorial Region (ROGER).

These futuristic-looking gliders, called Spray gliders, traverse the oceans under their own power and are taking measurements in the Pacific Ocean near the Galapagos Islands. The information that returns with a glider tells us how the ocean is changing, and whether those changes indicate the coming of an El Niño.

8) How do the Spray gliders work?

(Rudnick) Spray gliders dive from the surface down to 1,000 meters (3,281 feet) and back, completing a cycle in six hours and covering six kilometers (3.7 miles) during that time.

The gliders carry sensors to measure temperature, salinity, current velocity, chlorophyll fluorescence (a measure of the abundance of phytoplankton), and acoustic backscatter (a measure of zooplankton). Spray gliders are launched for missions lasting about 100 days.

9) How do you know when to send out the gliders?

(Rudnick) The ROGER project wasn't originally designed to observe an El Niño, but the gliders were always capable of doing so. With a scientific project funded by NSF for two years, we couldn't realistically expect to catch an El Niño.

But science does involve serendipity, and we're fortunate to have the gliders in position just as an El Niño is appearing. We expect our data to include the most high-resolution repeated ocean transects ever done across the equator during an El Niño. Results from the gliders are showing the classic signs of an El Niño, including a strengthening equatorial undercurrent.

10) What effects will El Niño have on marine ecosystems along the U.S. West Coast?

(Ohman) During El Niño, the spawning grounds of coastal fish like sardines and anchovies often move closer to the coast. As warming waters from the open ocean come ever nearer to the California coast, cool upwelled water is found mostly along the edge of the land.

Warm-water plankton and fish may be transported far to the north of their normal ranges. In some El Niños, species that live along the coast of Baja California, Mexico, may be found as far north as off British Columbia.

11) Do seabirds and marine mammals respond to El Niño?

(Ohman) It all comes down to where the fish are. Some seabirds, especially those with limited foraging ranges or narrow food preferences, may have reduced reproductive success during an El Niño. California sea lions may have less fish prey available and therefore depressed birth weights of pups. Some whales, dolphins and porpoises may move to different foraging grounds where the fishing is better.

12) Will fisheries off California be affected?

(Ohman) El Niño may have a substantial effect on the catch of, for example, market squid, one of the most commercially important species off California. The spawning of this cool-water species may be severely curtailed, or take place in deeper waters than usual.

During an El Niño, U.S. West Coast sportfishers often catch more warm-water fish such as yellowfin tuna, dolphinfish (dorado), and yellowtail, and fewer cool-water fish like rockfish and lingcod. What's on your dinner table may, for a time, look just a bit different.

-- Cheryl Dybas, NSF

2 INMATES SENTENCED TO DEATH FOR MURDER OF FELLOW INMATE

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, June 3, 2014

Two Federal Inmates Sentenced to Death for Murder

Two inmates of the U.S. Medical Center for Federal Prisoners in Springfield, Missouri, who were convicted by a federal jury for murdering another inmate at the facility were sentenced to death late yesterday.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Tammy Dickinson of the Western District of Missouri made the announcement.


“Two federal inmates senselessly killed another inmate, and today, they have been brought to justice,” said Assistant Attorney General Caldwell.   “The Justice Department is committed to ensuring the safety and security of all Bureau of Prisons employees and inmates.”

“Achieving justice sometimes requires us to ask our citizens to make the most difficult sentencing decisions,” said U.S. Attorney Dickinson.    “We appreciate their patience and commitment throughout trial.   The defendants’ conduct strikes at the heart of our justice system, which depends upon the safety and security of our penal institutions.   Mr. Castro was targeted for murder, in part, because he intervened to help a Bureau of Prisons employee as he was being attacked by another inmate.”

Wesley Paul Coonce Jr., 34, and Charles Michael Hall, 43, who are both inmates at the U.S. Medical Center for Federal Prisoners, were found guilty on May 7, 2014, of one count of murder in the first degree.   Coonce was also found guilty of one count of murder by an inmate serving a life sentence.  The trial began on April 28, 2014, before U.S. District Judge Gary A. Fenner of the Western District of Missouri.

The evidence presented at trial demonstrated that another inmate at the prison medical center, Victor Castro-Rodriguez, 51, was found dead on the floor of his cell on Jan. 26, 2010, and had been murdered by Coonce and Hall.   At the time of the murder, Coonce was serving a life sentence for a kidnapping and carjacking that involved the brutal rape of a young woman, and Hall was serving a combined 194-month sentence from the District of Maine for making threatening communications against a federal judge and a federal prosecutor.


This case was investigated by the FBI and the Bureau of Prisons and it was prosecuted by Assistant U.S. Attorney Randall D. Eggert and Trial Attorney James D. Peterson of the Capital Case Section of the U.S. Department of Justice’s Criminal Division.

WHITE HOUSE REPORT ON HEALTH AND CLIMATE CHANGE

FROM:  THE WHITE HOUSE 

White House Release Report on the Health Impacts of Climate Change on Americans

 June 6, 2014

Today, the White House released a report on the health impacts of climate change on Americans. The report summarizes the ways that climate change will be felt across the Nation.

In the past three decades, the percentage of Americans with asthma has more than doubled, and climate change is putting those Americans at greater risk of landing in the hospital. And extreme weather events are becoming more frequent across the country – from more rain falling in downpours in many regions, to longer and hotter heat waves in others, to more severe droughts and wildfires in some (notably the West and Southwest).

The effects of climate change impact the most vulnerable Americans – putting the elderly, kids, and people already suffering from burdensome allergies, asthma and other illnesses at greater risk.

The President believes we have a moral obligation to leave our children a planet that’s not irrevocably polluted or damaged. While no single step can reverse the effects of climate change, we must take steady, responsible action to cut carbon pollution, protect our children’s health, and begin to slow the effects of climate change so that we leave behind a cleaner, more stable environment. That’s why the President put forward the Climate Action Plan last year and earlier this week, the Environmental Protection Agency released a vital component of that plan – common-sense carbon pollution standards for existing power plants.

Through common-sense measures to cut carbon pollution we can protect the health of our Nation, while stimulating the economy and helping to prevent the worst impacts of climate change.

SEC FILES ACTION TO HALT ALLEGED ONGOING FRAUD

FROM:  SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission filed an emergency
 enforcement action to halt an ongoing fraud by an investment adviser based in Albany, N.Y., who is charged with lying to clients about the success of their investments while stealing their money for his personal use.

The SEC alleges that Scott Valente and his firm The ELIV Group LLC have fraudulently raised more than $8.8 million from approximately 80 clients by falsely claiming they achieve consistent and outsized positive returns among other misrepresentations about the safety of the investments.  ELIV Group has in fact earned no positive results at all, instead sustaining consistent investment losses for the past three years. Meanwhile, Valente has been making substantial cash withdrawals of client funds and spending their money on his home improvements and mortgage payments as well as jewelry and a vacation condominium.  Valente’s unsuccessful trading strategies and misappropriations have severely diluted the amount of client funds on hand at ELIV Group, and the SEC is seeking an asset freeze to halt the fraud as Valente continues to solicit new clients with his false claims.  ELIV Group has offices in Albany and Warwick, N.Y.

“Valente used his one-man advisory firm to fraudulently lure unsuspecting investors in the Albany and Warwick communities to invest millions of dollars with him as advisory clients,” said Andrew M. Calamari, director of the SEC’s New York Regional Office.  “He said all the right things to make investors believe he was making the right investments and taking the right precautions with their money, but he was merely telling blatant false tales about the safety and success of the investments.”

Sanjay Wadhwa, senior associate director for enforcement in the SEC’s New York office, added, “Beyond the lies to his clients regarding his investment performance, Valente’s abuse of his fiduciary obligations included the theft of at least $2.66 million in client funds for personal spending, including hefty credit card bills, a vacation home, and jewelry.”

According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York, Valente misleadingly told his clients that he has a 30-year record of investing experience “dedicated to the highest standards of service” and that he founded ELIV Group after leaving the “corporate financial industry” upon concluding there “had to be a better way for clients to achieve financial independence.”  What he failed to disclose was that he twice filed for bankruptcy and started ELIV Group only after the Financial Industry Regulatory Authority (FINRA) permanently expelled him from the broker-dealer industry in 2009 for engaging in serial misconduct against numerous customers.

The SEC alleges that Valente and ELIV Group attracted clients by falsely assuring them that the principal amount of their investments was fully liquid and “guaranteed” because it was backed by a large money market fund.  Client funds were in fact never guaranteed or backed by any money market funds, and the majority of ELIV Group’s investments were in highly illiquid investments in privately-held companies.  Valente and ELIV Group also assured clients that the firm’s books and records were audited independently.  However, ELIV Group never had an auditor, and the firm sent clients monthly investment reports in which they actually inflated the monthly returns, assets under management, and client account values.

The SEC’s complaint charges Valente and ELIV with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b) as well as Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.  The SEC is seeking a temporary restraining order to freeze their assets and prohibit Valente and ELIV from committing further violations of the federal securities laws.  The SEC seeks a final judgment ordering them to disgorge their ill-gotten gains plus prejudgment interest and pay financial penalties.

The SEC’s investigation, which is continuing, has been conducted by Gerald Gross, Richard Primoff, and Barry O’Connell of the New York Regional Office.  The inquiry that led to the investigation was conducted by Richard Heaphy, Yvette Panetta, Dee-Ann DiSalvo, and Edward Cody of the New York Regional Office.  The SEC appreciates the assistance of the Federal Bureau of Investigation.

SECRETARY KERRY'S REMARKS AT LIBERATION COMMEMORATION CEREMONY IN ST. BRIAC, FRANCE

FROM:  U.S. STATE DEPARTMENT 

Remarks at the Liberation Commemoration Ceremony and Dedication of City Hall Square

Remarks

John Kerry

Secretary of State

St. Briac, France

June 7, 2014

---

SECRETARY KERRY: (In French.)

I’m going to deliver remarks in French, but I want to start by saying a few words in English for the Americans who want to know why the American Secretary of State is here today and what we are celebrating. And I want to quickly explain why St. Briac and all of Brittany means so much to me and to my entire family, and it is why we wanted to come here today to celebrate the liberation even though the liberation was in August, but yesterday we were at the beginning of that liberation, celebrating with people from all of Europe and the world who know the meaning of D-Day and of freedom.

My grandfather was an American businessman, and he discovered the beauty of the Emerald Coast and raised his family of 11 children, 11 brothers and sisters, including my mother, Brice’s mother, between St. Briac and England. When the Nazis arrived here in St. Briac, they took over our house and they turned it into their local headquarters. And after the liberation, as they were leaving, they set it on fire and bombed it to the ground.

Just this morning, one of my cousins showed me the telegram from my grandmother, who was in England, who sent word to my grandfather, who was then in Washington, D.C., about the house being bombed. And my mother told me that before the Nazis reached this village, the people of St. Briac collected some of our family items, things that were special – the linens, silverware, and so forth – and they kept them for safe keeping during the war. And when they gave these items back to my grandmother years later, she was overwhelmed with gratitude. So I know I speak for my entire family when I say we will never forget the people of St. Briac, this town’s courage and kindness. Thank you. (Applause.)

The very first time that my parents brought me to St. Briac is really one of the most – is one of the earliest, most vivid memories, but the earliest memories of my childhood. I was about four years old or so when you begin to remember. And it was a couple of years, a few years after the war had ended. It was the first time that my mother had come back here since she had fled France during the war, and I can still hear the sounds of the rubble and the broken glass that was crunching under our feet as we walked through what used to be her house. Almost nothing was left – just a stone staircase that rose up to the sky and an old brick chimney also rising up.
A few years later my grandparents rebuilt the house, and we have spent a family decades since filling it with happy memories. In a sense, that represents the story of France. Certainly this country saw and felt and experienced the tragedy of World War II as very few others did. But France rebuilt itself, brick by brick, and today she is as strong as ever. (Applause.)
A few minutes ago I had the privilege of visiting the American memorial which you have so graciously placed there above the port. And we had a chance to lay wreaths and celebrate those who gave their lives in the liberation of St. Briac, three Americans: Private Ralph Posey from Louisiana, Private Sim McDaniel from Arkansas, and Captain John Wilmer from Washington, D.C.

Captain Wilmer’s wife was pregnant when he left for Normandy. So before he died, Captain Wilmer wrote a letter to his unborn daughter. And he knew that he might not make it back to the United States alive, and he wanted to explain why he took the risk – what exactly he was fighting for. And his explanation was very simple. He told his daughter that he never met, “…family, home, and the right to breathe freely. I am willing to die fighting for these things. I am happy to fight for them.”

This sentiment – this dream of uncompromising defense of liberty – is at the heart of the partnership the United States and France have long shared and will continue to share. It is what has united us from the beginning of American history. (Applause.)

(In French.)

(Applause and cheers.)

AEOLIAN BEDFORMS ON MARS

FROM:  NASA 

Sandy landforms formed by the wind, or aeolian bedforms, are classified by the wavelength--or length--between crests. On Mars, we can observe four classes of bedforms (in order of increasing wavelengths): ripples, transverse aeolian ridges (known as TARs), dunes, and what are called “draa.” All of these are visible in this Juventae Chasma image. Ripples are the smallest bedforms (less than 20 meters) and can only be observed in high-resolution images commonly superposed on many surfaces. TARs are slightly larger bedforms (wavelengths approximately 20 to 70 meters), which are often light in tone relative to their surroundings. Dark-toned dunes (wavelengths 100 meters to 1 kilometer) are a common landform and many are active today. What geologists call “draa” is the highest-order bedform with largest wavelengths (greater than 1 kilometer), and is relatively uncommon on Mars. Here, this giant draa possesses steep faces or slip faces several hundreds of meters tall and has lower-order superposed bedforms, such as ripples and dunes. A bedform this size likely formed over thousands of Mars years, probably longer. This image was acquired by the HiRISE camera aboard NASA's Mars Reconnaissance Orbiter on Jan. 6, 2014. The University of Arizona, Tucson, operates the HiRISE camera, which was built by Ball Aerospace & Technologies Corp., Boulder, Colo. NASA's Jet Propulsion Laboratory, a division of the California Institute of Technology in Pasadena, manages the Mars Reconnaissance Orbiter Project for the NASA Science Mission Directorate, Washington. > More information and image products.  Image Credit-NASA-JPL-University of Arizona Caption: Matthew Chojnacki.

U.S. FACTSHEET: PROMOTING PEACE IN BURMA

Description:  Map of Burma.  U.S. State Department Image. 

FROM:  U.S. STATE DEPARTMENT 

Promoting Peace in Burma

Fact Sheet

Bureau of Conflict and Stabilization Operations

May 30, 2014

Opportunity

Changes in Burma provide an opening for investment, promoting human rights, and political and economic reform. These opportunities hinge on building an inclusive political system where parties use dialogue, not violence, to address ethnic identity and reconciliation issues. Longstanding conflicts between the central government and ethnic minorities as well as recent flare-ups of communal violence in areas such as Rakhine State threaten a lasting peace. The U.S. government can help break cycles of violence, particularly in high-risk ethnic minority strongholds, to advance national reconciliation and a lasting political solution between the Government of Burma and diverse ethnic and religious groups.

How CSO Works

CSO supports Department of State conflict prevention and crisis response efforts through locally grounded analysis, strategic planning, and operational support for local partners. CSO deploys civilian talent at the subnational level to catalyze local efforts to build civilian security and connect program implementation to policymaking.


ObjectivesCSO in Burma 

In Burma, CSO officers provide conflict and reconciliation expertise to Embassy Rangoon, focusing particularly on Rakhine State, trust-building through humanitarian mine action, and the peace process. In Washington, a CSO team advises the Department of State on Burma’s peace and reconciliation processes as well as on local conflict.

Support efforts to reduce violence and build community relations, especially in Rakhine State.

Build trust between ethnic groups and the government through issues of common concern, including landmines.

Empower civil society to participate more fully in peace-related initiatives.
U.S. Support for Violence Reduction: CSO contributes to U.S. efforts to reduce violence and strengthen community relations.

Increase U.S. Government understanding of ethnic minority groups’ priorities and concerns. CSO helps the Embassy sharpen U.S. understanding of states facing ethnic armed conflict, increase engagement and trust with ethnic nationalities, and demonstrate U.S. support for the vulnerable, particularly in Rakhine State.
Help shape U.S. Government approaches that support Embassy Rangoon’s mission goals. CSO’s conflict analysis, strategic planning, and violence prevention recommendations are incorporated into post’s approaches.

Facilitate donor and diplomatic coordination. CSO helped establish regular donor meetings to coordinate humanitarian mine action and reinforce conflict-sensitive approaches.

Build Trust: The government, army, civil society, and ethnic minorities share a common interest in reducing the number of landmines. CSO supports the Department of State’s Bureau of Political-Military Affairs and Embassy efforts to use mine-risk education and survivor assistance to build trust and support positive interactions between civilians and the military in ethnic states.

Build momentum for mine risk education and survivor assistance as a trust-building tool.

In coordination with the Kayah State government and armed groups, CSO is facilitating small grants to community-based organizations so they can identify and develop landmine-related projects.

In May 2013, CSO convened Burmese Government officials, armed groups, and civil society in Kayah State to build broader community dialogue around mine action.

In May 2013, CSO organized a workshop for journalists to improve the accuracy of conflict coverage and cast mine action as a contributor to national reconciliation.

In an October 2012 speech, the U.S. Ambassador reinforced to mine action organizations and the Government of Burma that humanitarian mine action should be inclusive, conflict-sensitive, and coordinated.

Advance Mine Risk Education and Survivor Assistance. In cooperation with a number of Department of State and USAID offices, including the Bureau of Political-Military Affairs and the Bureau of Population, Refugees, and Migration, CSO facilitated the obligation of $3 million to build trust and strengthen civil society around mine risk education and survivor assistance.
Empower Civil Society:

Strengthen civil society’s ability to engage in peace-related initiatives. CSO helped organize a “TechCamp” in January 2014 to introduce local civil society, including members of ethnic minority groups, to new technologies that should strengthen their ability to mitigate conflict.

Empower women and marginalized groups. Through roundtables, CSO helped to advance gender equality and disabled people’s rights and inclusion in conflict resolution.

SEC CHARGES BROKERAGE FIRM WITH IMPROPER USE OF TRADER CONFIDENTIAL INFORMATION

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission charged a New York-based brokerage firm that operates a dark pool alternative trading system with improperly using subscribers’ confidential trading information in marketing its services.

Regulations require an alternative trading system (ATS) to establish and enforce safeguards and procedures to protect the confidential trading information of its subscribers.  Among them is limiting access to subscribers’ data to employees who operate the ATS or have a direct compliance role.

An SEC investigation found that Liquidnet Inc. violated its regulatory obligations and its own promises to its ATS subscribers during a nearly three-year period when it improperly allowed a business unit outside the dark pool operation to access the confidential trading data.  Employees in that unit used the confidential information about Liquidnet’s dark pool subscribers during marketing presentations and various communications to other customers.  Liquidnet also used subscribers’ confidential trading information in two ATS sales tools that it devised.

SEC examiners spotted potential data access problems during an examination of Liquidnet and referred the matter to the Enforcement Division for further investigation.  Liquidnet has agreed to settle the SEC’s charges and pay a $2 million penalty.

“Dark pool operators violate the law when they fail to protect the confidential trading information that their subscribers entrust to them, as Liquidnet did here when it used this confidential information to try to expand its business,” said Andrew J. Ceresney, director of the SEC Enforcement Division.  “We will continue to aggressively police broker-dealers who operate an ATS and fail to rigorously ensure the protection of confidential trading information.”

According to the SEC’s order instituting a settled administrative proceeding, Liquidnet’s core business is operating a block-trading dark pool for large institutional investors.  Liquidnet has represented to its dark pool subscribers that it would keep their trading information confidential and allow them to trade with maximum anonymity and minimum information leakage.  In an effort to find additional sources of liquidity for its dark pool, Liquidnet launched an Equity Capital Markets (ECM) desk in 2009 to offer block execution services to corporate issuers and control persons of corporate issuers as well as private equity and venture capital firms looking to execute large equity capital markets transactions with minimal market impact.

The SEC’s order finds that Liquidnet provided ECM employees with access to the confidential trading information of dark pool subscribers from 2009 to late 2011, and they used it to market ECM’s services.  For example, ECM employees would provide issuers with descriptions of ATS subscribers who had recently indicated interest in buying or selling shares of issuers’ stock.  These descriptions included the geographic locations, approximate assets under management, and investment styles of those dark pool subscribers.  ECM employees used dark pool subscribers’ trading data to advise issuers about which institutional investors they should meet during investor conferences or non-deal roadshows.  They also used dark pool subscriber data to advise ECM customers when they should execute transactions in the ATS given the liquidity the ECM employees could see in the dark pool.

“Liquidnet’s subscribers trusted and believed that the firm was safeguarding their confidential information,” said Daniel M. Hawke, chief of the SEC Enforcement Division’s Market Abuse Unit.  “Instead, the firm breached its assurances of confidentiality and anonymity to them by allowing its ECM employees to improperly access subscriber trading data.”

According to the SEC’s order, Liquidnet also improperly used the confidential trading data of dark pool subscribers in two ATS sales tools.  Liquidnet created “ships passing” alerts that alerted ATS sales employees to missed execution opportunities between subscriber algorithmic orders and subscriber indications.  The firm also developed an application called Aqualytics, which identified subscribers to be contacted about Liquidnet’s recent dominance in certain stocks.

The SEC’s order charges Liquidnet with violating Section 17(a)(2) of the Securities Act of 1933, which prohibits obtaining money or property by means of materially false or misleading statements in the offer or sale of securities.  Liquidnet also violated Rule 301(b)(2) of Regulation ATS, which requires that an ATS file certain amendments on Form ATS with the SEC, as well as Rule 301(b)(10) of Regulation ATS, which requires an ATS to establish adequate safeguards and procedures for protecting confidential trading information of its subscribers.  Without admitting or denying the findings, Liquidnet consented to the SEC’s order, which censures the firm and requires it to pay the $2 million penalty and cease and desist from committing the violations.

The SEC’s investigation was conducted by Simona Suh, Stephen A. Larson, and Mandy B. Sturmfelz of the Market Abuse Unit and Thomas P. Smith Jr. and Jordan Baker of the New York Regional Office.  The case was supervised by Amelia A. Cottrell of the New York office.  The SEC examiners who conducted the examination of Liquidnet that led to the investigation were June Reinertsen, Maggie Simmermon, Ronald Sukhu, Ilan S. Felix, and Richard A. Heaphy of the New York office.  The SEC appreciates the cooperation of the Financial Industry Regulatory Authority.

WHITE HOUSE FACT SHEET ON EUROPEAN REASSURANCE INITIATIVE

FROM:  THE WHITE HOUSE 

FACT SHEET: European Reassurance Initiative and Other U.S. Efforts in Support of NATO Allies and Partners

Since early March, the United States has taken action, both bilaterally and through NATO, to reassure allies of our solemn commitment to their security and territorial integrity as members of the NATO Alliance.  A persistent U.S. air, land, and sea presence in the region, especially in Central and Eastern Europe, is a necessary and appropriate show of support to allies who have contributed robustly and bravely to Alliance operations in Afghanistan and elsewhere and who are now deeply concerned by Russia’s occupation and attempted annexation of Crimea and other provocative actions in Ukraine.  The United States stands by its allies, as they have stood by us.  We will continue to take actions that increase the capability, readiness, and responsiveness of NATO forces to address any threat and that aid in deterring further destabilizing activities.  That is why the President today called on Congress to support a European Reassurance Initiative of up to $1 billion, which will enable us in the next year to undertake measures to:

• Increase exercises, training, and rotational presence across Europe but especially on the territory of our newer allies.  Many of the U.S. air and ground forces participating in these activities would rotate from the United States.
• As we have done in Poland, deploy detachments of U.S. planners to augment the capability of our allies to design and host a broad range of training and exercise opportunities.
• Increase the responsiveness of U.S. forces to reinforce NATO by exploring initiatives such as the prepositioning of equipment and improvements to other reception facilities and infrastructure in Europe.
• Increase participation by the U.S. Navy in NATO naval force deployments, including more persistent deployments to the Black and Baltic seas.
• Build the partner capacity of close friends such as Georgia, Moldova, and Ukraine so they can better work alongside the United States and NATO, as well as provide for their own defense.

This initiative will build on existing tools and authorities and will be included in the Department of Defense’s FY 2015 Overseas Contingency Operations (OCO) request to Congress.

In addition to this initiative, we are reviewing our force presence in Europe in light of the new security challenges on the continent.  These efforts will not come at the expense of other defense priorities, such as our commitment to the Asia Pacific rebalance.

With current funding, the United States and NATO have already undertaken the following specific efforts, which are indicative of the types of activities we would seek to maintain and expand with the European Reassurance Initiative:

New U.S. Measures

• Land Force Deployments:  In April, approximately 600 paratroopers from the 173rd Airborne Brigade deployed for training rotations in Estonia, Latvia, Lithuania, and Poland to enhance ongoing military-to-military relationships and demonstrate assurance of America's commitment to its NATO allies.  These exercises are part of a series of expanded American land force training activities with European partners that are scheduled to take place over the next few months and beyond.
• Maritime Deployments:
  • In early April, the United States deployed the USS Donald Cook to the Black Sea, where the ship conducted operations to improve interoperability, increase readiness, and develop professional relationships with allies.  The Donald Cook conducted presence operations and a port visit in Constanta, Romania, as well as an exercise with the Romanian Navy before departing the Black Sea on April 24.
  • From April 24 through May 12, the USS Taylor, the U.S. contribution to the Standing NATO Maritime Group, was deployed to the Black Sea, where she conducted bilateral operations with Romania and Georgia, including port visits to both countries.
  • The USS Vella Gulf entered the Black Sea May 23 to conduct operations to promote peace and stability in the region.  Highlights to date include an exercise with the Turkish Navy, a port visit in Batumi, Georgia, and combined maritime training with allied naval forces.
• Air Deployments:
  • Poland Aviation Detachment (AVDET) Training:  Quarterly rotations of military aircraft and airmen through the Aviation Detachment began in late 2012, and in March 2014 the United States augmented the rotations with additional F-16s and support airmen.  These F-16s and airmen provide a persistent presence in Poland and enhance training and operability with the Polish Air Force.  Three C-130J aircraft deployed to Powidz Air Base, Poland, on March 31 as part of a regularly scheduled two-week AVDET rotation.
  • Air-to-Air Refueling Missions:  Since mid-March, the United States has been flying refueling missions in support of NATO Airborne Warning and Control System (AWACS) flights over Poland and Romania.
  • Open Skies Treaty Flight:  On March 14 the United States conducted -- at Ukraine’s request -- an Open Skies observation mission over Ukraine.

 Preplanned but Enhanced U.S. Measures

•  The USS Truxtun entered the Black Sea through the Turkish Straits on March 7 to conduct port calls in Constanta, Romania, and conduct an exercise with Romanian and Bulgarian naval forces.  The Truxtun’s stay in the Black Sea was extended so that she could visit the Port of Varna, Bulgaria, to hold an onboard maritime planning conference with Bulgarian and Romanian officers and conduct a second exercise.
• NATO Air Policing:  On March 6, the United States deployed an additional six F-15Cs to augment the four F-15Cs already in Lithuania filling a NATO peacetime requirement to have quick reaction interceptor aircraft “ramp-ready” for a four-month period to ensure the integrity of the airspace above Estonia, Latvia, and Lithuania.  The U.S. rotation began in January and ended in early May.  Poland, with augmentation from the United Kingdom, France, and Denmark, took over the air policing task in the Baltic region, and Canada deployed aircraft to augment NATO air policing in Southeast Europe.

United States Ongoing/Steady State Measures

• U.S. Force Presence:  There are approximately 67,000 service members in Europe.  Approximately 57,000 active duty service members are assigned to U.S. European Command, and approximately 10,000 support other organizations, such as U.S. Africa Command.
• NATO Response Force (NRF) Commitment:  The United States has pledged several thousand service members to the NRF, including a brigade combat team from the Texas-based 1st Cavalry Division, a hospital ship, air-to-air refueling tankers, and escort ships.
• Army Rotational Forces:  The United States sends a battalion-sized unit from the United States to Europe twice a year for up to two months per rotation.  One of these battalions recently participated in NRF exercise ROCHAMBEAU in France and is currently participating in U.S. European Command-hosted multinational exercise COMBINED RESOLVE II.  Additionally, elements of the unit participated in NATO Exercise STEADFAST JAZZ this past November.
• Missile Defense / European Phased Adaptive Approach:  The U.S. contribution to European missile defense, whose aim is to protect against emerging threats from outside of the Euro-Atlantic area, includes a missile defense radar in Turkey, plans for four Aegis destroyers to be forward deployed in Rota, Spain (the first, the USS Donald Cook, arrived in February), and two planned Aegis Ashore sites -- one in Romania (2015) and one in Poland (2018).
• Black Sea Rotational Forces (BSRF):  This force, based out of Mihail Kogalniceanu (MK) Air Base, Romania, includes 250 Marines and sailors tasked with maintaining positive relations with partner nations, enhancing regional stability, and increasing interoperability while providing the capability for rapid crisis response in the Black Sea, Balkan, and Caucasus regions.  In May, BSRF personnel participated in exercise PLATINUM LYNX, an infantry field training with the Romanian military to enhance familiarity and interoperability between U.S. and Romanian forces.  Additional U.S. forces in Romania not associated with the BSRF include:
  • 500 U.S. troops permanently stationed at MK Air Base conducting transit center operations; and   
  • 175 U.S. Marines temporarily based out of MK Air Base as part of the Special Purpose Marine Air-Ground Task Force (SPMAGTF).  The SPMAGTF is postured to respond to a broad range of military operations in Africa and Europe, including fixed-site security, non-combatant evacuation operations, humanitarian assistance and disaster relief operations, tactical recovery of aircraft and personnel, theater security cooperation, and other missions as directed. 
• Exercises in the Baltic Sea and Poland:  The United States sent U.S. Marines from the Black Sea Rotational Force to the Baltics this April to participate in exercise SUMMER SHIELD.  U.S. forces participated in exercises NAMEJS and FLAMING SWORD in Latvia and Lithuania, respectively, in May and are participating in multilateral exercises BALTOPS and SABER STRIKE in the Baltic region in June.  The United States will also deploy 18 F-16CJs and one KC-135 tanker to Łask Air Base, Poland, concurrent with the SABER STRIKE and BALTOPS exercise.  BALTOPS is an annual, multinational maritime exercise focusing on interoperability, maritime security, and cooperation among Baltic Sea regional partners.  SABER STRIKE is an annual, multinational ground and air exercise focused on enhancing interoperability among U.S. Army units and the land forces of Estonia, Latvia, and Lithuania.

NATO Measures

• Revised Planning:  NATO is updating its defense plans and is developing a readiness action plan that includes a review of joint exercises, threat assessments, intelligence-sharing arrangements, early-warning procedures, and crisis response planning.
• Support to Ukraine:  On March 5, NATO allies decided on a number of measures to intensify NATO’s partnership with Ukraine and strengthen cooperation to support democratic reforms.  Measures included an increased engagement with the Ukrainian civilian and military leadership; strengthened efforts to build the capacity of the Ukrainian military, including with more joint training and exercises; and increased efforts to include Ukraine in multinational projects to develop capabilities.
• Suspension of NATO-Russia Council (NRC) Activities:  At an NRC meeting in April, NATO Foreign Ministers condemned Russian military intervention in Ukraine and suspended staff-level civilian and military meetings with Russia.  Ambassadorial-level meetings of the NRC will continue.
• New Air and Sea deployments:
  • AWACS:  On March 10, the North Atlantic Council approved establishing AWACS orbits over Poland and Romania to enhance NATO’s situational awareness of activities in the region and to reassure NATO allies.  These aircraft will only fly over NATO territory and will come from the NATO fleet and allied contributions.
  • Standing Naval Forces:  In late April, NATO activated Standing NATO Mine Counter-Measures Group One and sent it to patrol the Baltic Sea.  The group, which consists of six ships from Belgium, Estonia, Germany, The Netherlands, Norway, and Poland, is conducting port visits and participated in an annual mine clearance operation (NATO naval exercise OPEN SPIRIT 2014).  On May 12, NATO tasked its augmented Standing NATO Maritime Group One to perform maritime assurance measures alongside counter-terrorism patrols in the eastern Mediterranean.  The group includes five ships from Canada, Germany, Norway, Turkey, and the United States.
• New Exercises:  NATO launched a large-scale exercise, STEADFAST JAVELIN 1, in Estonia on May 16, which tested allied forces on their ability to work together as well as maintaining NATO’s readiness and combat effectiveness.  The exercise reflects NATO’s strong commitment to collective defense in the Baltic region.  Around 6,000 troops from Belgium, Denmark, Estonia, France, Latvia, Lithuania, Poland, the United Kingdom, and the United States participated in the exercise which finished on May 23.  Many participants were already in Estonia taking part in the annual Estonian-led KEVADTORM14 exercise that began on May 5 and that was merged into the NATO-led event.

EX-IM BANK SAYS U.S. EXPORTS REACHED $193.3 BILLION IN APRIL

FROM:  U.S. EXPORT-IMPORT BANK 

U.S. Exports Reach $193.3 Billion in April

 Export-Import Bank Financing Support Helps Create American Jobs

Washington, D.C. – The United States exported $193.3 billion of goods and services in April 2014, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

“The numbers show that the world’s consumers want U.S. goods and services for their quality and reliability,” said Export-Import Bank Chairman and President Fred P. Hochberg. “Made in America is still the best in the world, and the Ex-Im Bank is proud to play its part in boosting U.S. exporters abroad and supporting jobs here at home.”

Exports of goods and services over the last twelve months totaled $2.3 trillion, which is 45.1 percent above the level of exports in 2009, and have been growing at an annualized rate of 9.0 percent when compared to 2009.

During the same time period among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, were Panama (22.7 percent), Russia (18.9 percent), Peru (18.5 percent), Hong Kong (17.9 percent), Colombia (17.6 percent), Argentina (16.4 percent), Ecuador (16.1 percent), Chile (15.5 percent), Indonesia (14.6 percent) and China (14.5 percent).

U.S. CHARGES FORMER BERMUDA REGISTERED SECURITIES TRADER WITH CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 

Wednesday, June 4, 2014

Conspiracy Charge Filed Against Former Convergex Trader

A former trader for ConvergEx Global Markets Limited (CGM Limited) — a former securities broker-dealer registered in Bermuda — has been charged in the District of New Jersey with conspiracy to commit wire fraud.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.

Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014, and he made his initial appearance this morning.

On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey.   On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement.   Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.

According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders.   ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”

Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold.   After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.

The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.

The charges in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service.   The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section.  Fraud Section Assistant Chief Robert Zink and former Trial Attorney Charles Reed also assisted with the investigation.

The department appreciates the assistance of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the District of New Jersey.

FACT SHEET ON U.S. ASSISTANCE TO UKRAINE

FROM:  THE WHITE HOUSE 

FACT SHEET: U.S. Security Assistance to Ukraine

The United States is working to bolster Ukraine’s ability to secure its borders and preserve its territorial integrity and sovereignty in the face of Russian occupation of Crimea and a concerted effort by Russian-backed separatists to destabilize eastern Ukraine.  President Obama has approved more than $23 million in additional defensive security assistance since early March.

This assistance includes:

A new tranche of $5 million for the provision of body armor, night vision goggles, and additional communications equipment.  This is in addition to the approximately 300,000 Meals Ready to Eat (delivered in March), as well as assistance for the provision of materiel using Foreign Military Financing to support Ukraine’s armed forces with medical supplies, service member equipment (e.g., helmets, sleeping mats, water purification units), explosive ordnance disposal equipment, and handheld radios.

The United States also has allocated Cooperative Threat Reduction funding to support Ukraine’s State Border Guard Service with supplies (e.g., clothing, shelters, small power generators and hand fuel pumps, engineering equipment, communications equipment, vehicles, and non-lethal individual tactical gear).
To date, Embassy Kyiv has purchased and delivered 20-person shelters, sleeping bags, fuel filter adapters, barbed wire, patrol flashlights, perimeter alarm systems, fuel pumps, concertina wire, vehicle batteries, spare tires, binoculars, excavators, trucks, generators, food storage freezers, field stoves, and communications gear to the Ukrainian State Border Guard Service, for use in monitoring and securing their borders.

Senior Leader Engagement

On April 1, senior U.S. defense officials met with their Ukrainian counterparts in Kyiv for bilateral defense consultations, during which they held substantive discussions on regional security, defense cooperation, and areas for growth in the U.S.-Ukraine defense relationship.

Senior defense officials met with Ukrainian counterparts in Kyiv in early June to discuss ongoing U.S.-Ukraine defense cooperation and U.S. support to Ukraine’s defense reform efforts.

In early June, U.S. European Command will hold a general/flag officer steering group meeting with Ukrainian counterparts in Kyiv to set the strategic direction for future military-to-military cooperation.

FTC TESTIFIES BEFORE CONGRESS ON GEOLOCATION PRIVACY AND SECURITY

FROM:  U.S. FEDERAL TRADE COMMISSION

FTC Testifies on Geolocation Privacy

June 4, 2014

The Federal Trade Commission testified before Congress o
n the Commission's efforts to address the privacy concerns raised by the tracking of information about consumers’ location, as well as proposed legislation to protect the privacy of geolocation data.

Delivering testimony before the Senate Judiciary Committee’s Subcommittee for Privacy, Technology and the Law, Jessica Rich, Director of the FTC Bureau of Consumer Protection, outlined the FTC’s ongoing efforts to protect the privacy of consumers’ geolocation information through enforcement, policymaking, and consumer and business education.

Precise geolocation data is sensitive personal information increasingly used in consumer products and services, the testimony states. These products and services make consumers’ lives easier and more efficient, but the use of geolocation information can raise concerns because it can reveal a consumer’s movements in real time and provide a detailed record of a consumer’s movements over time.

“Geolocation information can divulge intimately personal details about an individual. Did you visit an AIDS clinic last Tuesday? What place of worship do you attend? Were you at a psychiatrist's office last week? Did you meet with a prospective business customer?” the testimony states.

Geolocation information may be sold to companies to help build profiles about consumers without their knowledge or consent, or it could be accessed by cybercriminals, hackers or through surreptious means such as “stalking apps.”

The FTC has used its enforcement authority under Section 5 of the FTC Act to take action against companies engaged in unfair or deceptive practices involving geolocation information. Last month, for example, the Commission entered into a settlement with the mobile messaging app Snapchat, resolving FTC allegations that Snapchat made multiple misrepresentations to consumers about the disappearing nature of messages sent through its service, as well its transmission of users’ geolocation information. The FTC has raised similar allegations involving undisclosed collection and transmission of location data as part of  privacy complaints against a popular flashlight app, as well as a national rent-to-own retailer and one of its software vendors, the testimony states.

In addition to its enforcement activities involving geolocation information, the Commission has conducted studies, held workshops, and issued reports on mobile privacy disclosures, mobile apps directed to kids, and other topics that elucidate best practices for companies collecting, using, and sharing geolocation information, the testimony says.

The testimony also notes the FTC’s ongoing efforts to educate consumers and businesses about protecting the privacy of geolocation information. For instance, the Commission recently released an updated version of ''Net Cetera: Chatting with Kids About Being Online," and it has released guidance directed to businesses operating in the mobile arena to help educate them on best practices to handle sensitive information, such as geolocation information.

The testimony also provides the Commission’s initial views on the Location Privacy Protection Act of 2014, proposed legislation that seeks to improve the transparency of geolocation services and give consumers greater control over the collection of their geolocation information. The FTC supports the goals of the LPPA, and believes it is an important step forward in protecting consumers’ sensitive geolocation information, the testimony states.

In particular, the testimony highlights three important LPPA provisions that are consistent with the Commission’s views:

The bill defines “geolocation information” as information that is “sufficient to identify the street name and name of the city or town” in which a device is located. This definition is consistent in many respects with the definition of “geolocation information” in the Commission's COPPA Rule.

The LPPA requires that an entity collecting consumer geolocation information disclose its collection of such information. The Commission has recommended that companies make their data collection practices more transparent to consumers.
The LPPA requires affirmative express consent from consumers before a covered entity may knowingly collect or disclose geolocation information, and the Commission supports that approach.

In addition, the testimony notes that the LPPA gives the Department of Justice sole enforcement authority and rulemaking authority, in consultation with the FTC. As the federal government’s leading privacy enforcement agency, the testimony recommends that the Commission have rulemaking and enforcement authority with regard to the civil provisions of the LPPA, and that DOJ have enforcement authority for the criminal provisions.

The Commission vote approving the testimony and its inclusion in the formal record was 5-0.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JUNE 6, 2014

FROM:  THE DEFENSE DEPARTMENT 

CONTRACTS

NAVY

Hewlett Packard Enterprise Services (HPES), Herndon, Virginia, is being awarded a $138,000,000 modification to a previously awarded contract (N00039-10-D-0010) for the continuity of services contract (CoSC) for Navy Marine Corps Intranet (NMCI). The modification includes increasing the contract ceiling from $5,603,792,250 to $5,741,792,250, and adding an option to extend the period of performance by three months, from July 1, 2014, to Sept. 30, 2014. The NMCI services are currently provided under the CoSC, which was awarded to HPES in order to continue providing information technology (IT) services following the expiration of the original NMCI contract. The CoSC contract period of performance for IT services was due to expire on June 30, 2014; the contract ceiling would have been exceeded in June 2014 based on current requirements. The CoSC ensures that the scope of NMCI IT services and performance levels delivered are sustained until the Next Generation Enterprise Network contract is satisfactorily providing the replacement services. Work is performed at nearly 2,500 Navy and Marine Corps locations worldwide, and expected completion for this modification is Sept. 30, 2014. No funds will be obligated at the time of award. The Space and Naval Warfare Systems Command, San Diego, California, is the contracting activity.

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a $122,099,075 cost-plus-incentive-fee modification to a previously awarded advance acquisition contract (N00019-13-C-0008) for the procurement of initial aircraft spares for the F-35 Lightning II Joint Strike Fighter aircraft for the U.S. Marine Corps, U.S. Air Force, U.S. Navy, and international partners. Work will be performed in Fort Worth, Texas (35 percent); El Segundo, California (25 percent); Warton, United Kingdom (20 percent); Orlando, Florida (10 percent); Nashua, New Hampshire (5 percent); and Baltimore, Maryland (5 percent); and is expected to be completed in December 2016. Fiscal 2014 aircraft procurement (Navy and Air Force) and international partner funds in the amount of $122,099,075 are being obligated on this award, none of which will expire at the end of the current fiscal year. This modification combines purchases for the U.S. Marine Corps ($38,254,135; 31.3 percent); U.S. Air Force ($27,890,266; 22.9 percent); U.S. Navy ($10,837,918; 8.9 percent), and international partners ($45,116,756; 27.8 percent). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting authority.

BAE Systems Norfolk Ship Repair, Norfolk, Virginia, is being awarded a $15,060,606 modification to previously awarded contract (N00024-10-C-4308) for USS Ramage (DDG-61) fiscal 2014 Selected Restricted Availability (SRA). A SRA includes the planning and execution of depot-level maintenance, alterations, and modifications that will update and improve the ship's military and technical capabilities. Work will be performed in Norfolk, Virginia, and is expected to be completed by November 2014. Fiscal 2014 operations and maintenance (Navy) and fiscal 2014 other procurement (Navy) contract funds in the amount of $15,060,606 will be obligated at time of award. Contract funds in the amount of $13,821,384 will expire at the end of the current fiscal year. Norfolk Ship Support Activity, Norfolk, Virginia, is the contracting activity.

Raytheon Co., Tucson, Arizona, is being awarded a $13,296,203 cost-plus-fixed-fee contract for the development of the drawings and specifications for the Joint Standoff Weapon C Block III variant for the government of Saudi Arabia including qualification and validation under the Foreign Military Sales Program. Work will be performed in Tucson, Arizona (80 percent); Dallas, Texas (10 percent); and Cedar Rapids, Iowa (10 percent); and is expected to be completed in September 2015. FM S funds in the amount of $13,296,203 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1). The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-C-0025).

ARMY

Weeks Marine, Inc. Covington, Louisiana, was awarded a $63,322,388 firm-fixed-price, multi-year contract with options for dredging and beach fill of the main channel of the Delaware River. Work will be performed in Lewes, Delaware, with an estimated completion date of April 15, 2016. Bids were solicited via the Internet with four received. Fiscal 2014 operations and maintenance (Army) funds in the amount of $7,000,000 and fiscal 2014 other procurement funds in the amount of $8,000,000 are being obligated at the time of the award. U.S. Army Corps of Engineers, Philadelphia, Pennsylvania, is the contracting activity (W912BU-14-C-0015).

Precon Marine, Inc.*, Chesapeake, Virginia, was awarded a $11,625,500 firm-fixed-price contract for Craney Island Northern Shoreline Revetment Phase III, Portsmouth, Virginia, with an estimated completion date of April 30, 2015. Bids were solicited via the Internet with six received. Fiscal 2014 operations and maintenance (Army) funds in the amount of $11,625,500 are being obligated at the time of the award. U.S. Army Corps of Engineers, Norfolk, Virginia, is the contracting activity (W91236-14-C-0034).

Evergreen Helicopters, Inc., McMinnville, Oregon, was awarded a $10,672,126 modification (P00008) to contract W91CN-12-D-0002 to exercise option two for service and support for Medical Evacuation for the U.S. Army Garrison, Hawaii. Funding and work location will be determined with each order. Estimated completion date is June 22, 2015. Army Contracting Command, Fort Shafter, Hawaii, is the contracting activity.

DEFENSE LOGISTICS AGENCY

GlaxoSmithKline, Research Triangle Park, North Carolina, has been awarded a maximum $17,616,339 firm-fixed-price contract for flu vaccines. This contract was a competitive acquisition with four offers received. This is a one-year base contract with no option periods. Location of performance is North Carolina with a Sept. 30, 2015, performance completion date. Using military service is Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DP-14-D-0005).

Sanofi Pasteur, Swiftwater, Pennsylvania, has been awarded a maximum $8,969,432 firm-fixed-price contract for flu vaccines. This contract was a competitive acquisition with four offers received. This is a one-year base contract with no option periods. Location of performance is Pennsylvania with a Sept. 30, 2015, performance completion date. Using military service is Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2DP-14-D-0004).

AIR FORCE

SES Government Solutions, McLean Virginia, has been awarded an $8,245,160 firm-fixed-price contract for the purchase of commercial on-orbit transponders to support Ku-band communications for U.S. Africa Command and operations and sustainment support for a base year and four one-year options. Work will be performed at Ramstein Air Base, Germany and the western portion of Africa, and is expected to be complete by Aug. 5, 2019. This award is the result of a full and open competition, and two offers were received. Fiscal 2014 procurement funds in the amount of $8,000,000 are being obligated at time of award. The Space and Missile Systems Center, Los Angeles Air Force Base, California is the contracting activity (FA8808-14-C-0001).

*Small business

COMMANDER U.S. EUROPEAN COMMAND COMMEMORATES D-DAY

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Soldiers from the 101st Airborne Division, along with allied troops from multiple countries, participate in a parade through the streets of Carentan, France, June 4, 2014. The town is hosting several events commemorating the 70th anniversary of D-Day operations conducted during World War II. U.S. Army photo by Sgt. A.M. LaVey, 173rd Airborne Brigade 

Breedlove Pays Tribute to Sacrifices Made at D-Day
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

CARENTAN, France, June 5, 2014 – The sacrifice made by World War II veterans is reflected in the legacy of freedom they left following their success in the “greatest endeavor ever undertaken in the name of liberty,” NATO’S Supreme Allied Commander Europe said.

Air Force Gen. Philip M. Breedlove, also commander of U.S. European Command, traveled here to participate in a series of French-hosted commemorations of the 70th anniversary of the June 6, 1944, D-Day invasion of Normandy during World War II. Breedlove saluted the veterans for their courage in liberating Europe.

 “The French said ‘thank you’ today as they gave [veterans] the [French] Legion of Honor,” Breedlove told American Forces Network yesterday.

“Well, you just can’t buy this,” he said, referring to French gratitude for what the allies did by liberating France and Europe as part of the 70th anniversary of D-Day. “You can’t put it in a bottle. To see the nations -- all of them -- represented around this town, this country, this host nation, coming out like this in the hundreds and thousands to thank our soldiers and thank our veterans -- it’s amazing. It’s a great feeling.”

Breedlove added, “You don’t know what it’s like until you watch these little kids and their parents, and their grandparents waving American flags, waving French flags, waving [British] flags, all the nations represented.”

The French citizens’ emotions illustrate “what it means to these people [regarding] the sacrifices that our soldiers, sailors, airmen and Marines made for this country,” he added.

Breedlove reflected on the hard choices Army Gen. Dwight D. Eisenhower -- the D-Day invasion commander -- had to make in order to carry out the operation.
“Can you imagine what he was thinking as he sent so many of our nation’s sons ashore knowing what was waiting for them?” Eisenhower knew what was going to be required to achieve success, Breedlove said, and he knew the sacrifice that would have to be made.

“It’s probably the most incredible decision of our military,” the general said. “And he stood up to it and sent these forces ashore, and they accomplished their mission.”

Breedlove said he learned, from talking to veterans, that none of them made the decision to fight based on what was in front of them.

“They made decisions about standing shoulder-to-shoulder with their fellow soldiers, sailors and airmen. “Shoulder-to-shoulder with those who cared. And their mission was to get the job done and take care of each other.”

It was the cohesion, camaraderie and esprit de corps, Breedlove said, that got them through some pretty tough times.

“They all gave so much. But what we owe all veterans is our freedom.”
Speaking about freedom as the legacy of those who fought in World War II, Breedlove referred to a speech from a young French woman during an earlier ceremony where veterans received the French Legion of Honor.

“She wrote about that freedom that was purchased by the bravery and the sacrifice of our soldiers,” he said. “So all we can do is just say, ‘We thank you and we’re lucky that you were there to stand for us.’”

Walking down Carentan’s streets, the general also lauded veterans serving in today’s formations, and the families who support them.

“I say thank you to the families,” Breedlove said, “and to those veterans who are marching right in front of them who also served in multiple wars and multiple places around the world.

“We have lots of veterans that we owe dearly,” he continued. “Thank you to all of them.”

WHITE HOUSE FACT SHEET ON U.S. CONTRIBUTIONS TO EUROPEAN PEACE SINCE WWII

FROM:  THE WHITE HOUSE 

FACT SHEET: Overview of U.S. Contributions to Peace and Security in Europe Since WWII

Europe is an indispensable partner with which the United States tackles key global security challenges, and advancing transatlantic peace and security has stood at the heart of U.S. foreign policy for more than a century.  The United States works hand-in-hand with our European allies and partners -- bilaterally and through the North Atlantic Treaty Organization (NATO), the European Union (EU), and the Organization for Security and Cooperation in Europe (OSCE) -- to advance our shared goal of a Europe that is whole, free, and at peace.

As Europe emerged from the devastation of World War II, the United States implemented the Marshall Plan (officially called the European Recovery Program) in 1948 to provide $11 billion in economic support to rebuild European economies.  In April 1949, the United States joined 11 allies to create NATO.  NATO’s membership has since grown six times and now comprises 28 members.  NATO’s Article 5 guarantees the security of all NATO members, declaring that an attack on one of these allies will be considered as an attack on all.  U.S. contributions to NATO significantly enhance transatlantic stability and security, and since the end of the Cold War, the Alliance has transformed itself to meet the global security challenges of the 21st century.  NATO’s “Open Door” to new members has brought peace, stability, and security to Europe, contributing to the spread of democracy and prosperity across the continent.

The United States has also had a strong partnership with the European Union since the first U.S. observers went to the European Coal and Steel Community in 1953.  For decades, the United States and the EU have partnered together to promote peace and stability, sustain democracy and development around the world, respond to global challenges, contribute to the expansion of world trade and closer economic relations, and build bridges across the Atlantic.  The EU, which today includes 28 Member States and more than 500 million people, works to expand economic stability, prosperity, and security across Europe and beyond.  The United States and the EU are strengthening our economic ties through negotiations to form a Transatlantic Trade and Investment Partnership.

Deriving from the historic 1975 Helsinki Accords and the Conference on Security and Cooperation in Europe, the Organization for Security and Cooperation in Europe is the world’s largest and most comprehensive regional security organization -- with 57 participating states spanning from Vancouver to Vladivostok and 11 partner countries.  The OSCE is a political forum in which the United States works with other participating states to build a Europe and Eurasia whole, free, and at peace; to promote good governance; to build confidence and security through arms control; to resolve protracted conflicts in the OSCE region; and to encourage democracy and respect for human rights.  The United States supports the contributions of the OSCE across all three dimensions of its comprehensive security mandate and values, in particular the work of the 15 OSCE field missions.

Throughout the Cold War, the United States stood firmly by our NATO allies in confronting the threats posed to their peace and security by the Soviet Union.  From the 1947 Truman Doctrine and 1948 Berlin Airlift to today, our policies are designed to promote freedom and democracy in Europe.  When the Berlin Wall fell in 1989, the United States was quick to support German reunification within NATO.  The United States led the efforts to bring peace and security to the countries of the former Yugoslavia through the painful years of the Balkans crises, and we have supported the European and Euroatlantic aspirations of newly independent countries.

U.S. MARINES PATROL IN HELMAND PROVINCE AFGHANISTAN

FROM:  U.S. DEFENSE DEPARTMENT

U.S. Marines Corps 2nd Lt. Michael Bressler observes a row of small shops for any signs of danger during a security patrol before making contact with the local Afghans near the town of Boldak in Helmand province, Afghanistan, May 21, 2014. Bressler, a platoon commander, is assigned to 1st Battalion, 2nd Marine Regiment. U.S. Marine Corps photo by Cpl. Michael Dye.

U.S. Marines and sailors conduct a security patrol near Patrol Base Boldak in Helmand province, Afghanistan, May 21, 2014. The Marines and sailors, assigned to Charlie Company, 1st Battalion, 2nd Marine Regiment, conduct patrols to maintain trust and communication with the local Afghan population. U.S. Marine Corps photo by Cpl. Michael Dye.

MAN PLEADS GUILTY TO IMPORTING,SALE OF COUNTERFEIT INTEGRATED CIRCUITS USED ON NUCLEAR SUBMARINES

FROM:  U.S. JUSTICE DEPARTMENT   

Tuesday, June 3, 2014

Massachusetts Man Pleads Guilty to Importing and Selling Counterfeit Intergrated Circuits from China and Hong Kong

Peter Picone, 41, of Methuen, Massachusetts, pleaded guilty today in U.S. District Court in Hartford, Connecticut to importing thousands of counterfeit integrated circuits (ICs) from China and Hong Kong and then reselling them to U.S. customers, including contractors supplying them to the U.S. Navy for use in nuclear submarines.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Deirdre M. Daly for the District of Connecticut made the announcement.

Picone pleaded guilty before U.S. Magistrate Judge Donna Martinez of the District of Connecticut to an indictment charging him with conspiracy to traffic in counterfeit military goods.   As part of a plea agreement with the government, Picone agreed to a forfeiture money judgment of $70,050 and the forfeiture of 12,960 counterfeit ICs seized during the execution of a search warrant at his business and residence.   Sentencing was set for Aug. 22, 2014.

According to court filings, from 2007 through 2012, Picone conspired with his suppliers in China and Hong Kong to sell millions of dollars’ worth of ICs bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola, Xilinx and National Semiconductor.   Picone sold counterfeit ICs to contractors knowing that they would be supplied to the United States Navy for use in nuclear submarines.

Many of Picone’s customers specified in their orders that they would not accept anything but new ICs that were not from China, but Picone told them that the ICs were new and manufactured in Europe.   Testing by the Navy and one of its contractors revealed that in fact the ICs purchased from Picone had been resurfaced to change the date code and to affix counterfeit marks, all in order to hide their true pedigree.   Federal agents searched Picone’s business and residence on April 24, 2012, and recovered 12,960 counterfeit ICs.

This is the second conviction ever on a charge of trafficking in counterfeit military goods, a relatively new provision in the U.S. Criminal Code that was enacted as part of the National Defense Authorization Act of 2011.

The case was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and Homeland Security Investigations.   The case is being prosecuted by Trial Attorney Kendra Ervin and Senior Counsel Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Special Assistant U.S. Attorney Carol Sipperly of the District of Connecticut, Trial Attorney Anna Kaminska of the Criminal Division’s Fraud Section, and Trial Attorney Kristen Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section.  Significant assistance was provided by the CCIPS Cybercrime Lab.