Saturday, June 6, 2015
READOUT: PRESIDENT OBAMA'S CALL WITH UKRAINIAN PRESIDENT POROSHENKO
FROM: THE WHITE HOUSE
Readout of the President's Call with President Poroshenko of Ukraine
President Obama spoke today with Ukrainian President Petro Poroshenko about the conflict in eastern Ukraine and the upcoming discussions about Ukraine at the G-7 Summit. The President and President Poroshenko expressed their deep concern about the recent assault by combined Russian-separatist forces across the current line of contact near Donetsk, Ukraine, and once more called on Russia and the separatists it backs to abide strictly by the terms of the February Minsk Implementation Plan. The President reaffirmed the strong support of the United States for Ukraine’s sovereignty and territorial integrity, and reiterated his determination to continue working with international partners to provide the support Ukraine needs as it undertakes transformational reforms. The President also underscored the commitment of the United States to supporting a diplomatic resolution to the conflict in eastern Ukraine and the need to maintain costs on Russia and the separatists until they fulfill all provisions of the Minsk agreements.
Readout of the President's Call with President Poroshenko of Ukraine
President Obama spoke today with Ukrainian President Petro Poroshenko about the conflict in eastern Ukraine and the upcoming discussions about Ukraine at the G-7 Summit. The President and President Poroshenko expressed their deep concern about the recent assault by combined Russian-separatist forces across the current line of contact near Donetsk, Ukraine, and once more called on Russia and the separatists it backs to abide strictly by the terms of the February Minsk Implementation Plan. The President reaffirmed the strong support of the United States for Ukraine’s sovereignty and territorial integrity, and reiterated his determination to continue working with international partners to provide the support Ukraine needs as it undertakes transformational reforms. The President also underscored the commitment of the United States to supporting a diplomatic resolution to the conflict in eastern Ukraine and the need to maintain costs on Russia and the separatists until they fulfill all provisions of the Minsk agreements.
SEC FREEZES ASSETS OF BROKERAGES FOR ALLEGED SCHEMES TO MANIPULATE AVON STOCK
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
06/04/2015 05:30 PM EDT
The Securities and Exchange Commission today announced an emergency asset freeze of two U.S. brokerage accounts connected to schemes to manipulate Avon and other stocks, thwarting any ability to cash in on ill-gotten proceeds.
According to an SEC complaint filed in federal court in Manhattan, the agency has tracked a filing on its EDGAR system last month about a false Avon tender offer to a foreign entity using an IP address located in Sofia, Bulgaria. A Bulgarian trader named Nedko Nedev controlled at least one of the two now-frozen brokerage accounts, and his account held a substantial position in Avon contracts-for-difference (CFDs) that were losing value in recent months. The SEC alleges that Nedev generated approximately $5,000 in excess profits by selling almost half of the account’s Avon CFDs at inflated prices after the EDGAR filing led to a 20-percent increase in the value of Avon stock on May 14.
The court issued an order at the SEC’s request freezing the two accounts, which contain approximately $2 million in assets.
“Only three weeks after the manipulation of Avon stock occurred, this emergency court order keeps not only the alleged illicit profits from being transferred offshore, but preserves the SEC’s ability to recover substantial penalties,” said Andrew Ceresney, Director of the SEC Enforcement Division.
In addition to Nedev, the SEC’s complaint charges Strategic Capital Partners Muster Ltd. and Strategic Wealth Investments Inc., which each own one of the brokerage accounts, and PTG Capital Partners LTD, which made the EDGAR filing containing the purported Avon tender offer. Also charged is similarly named PST Capital Group LTD, which allegedly made a false EDGAR filing in a 2012 scheme involving the stock of Rocky Mountain Chocolate Factory. The defendants also are charged with a similar scheme in 2014 involving Tower Group International Ltd., which involved a false press release instead of an EDGAR filing. The schemes followed similar patterns where the accounts had substantial holdings in a company that had been losing value and the companies’ stock values substantially increased after a false filing or press release originating from Bulgaria. The two accounts profited by more than $20,000 combined from the Tower Group alleged manipulation.
“We used parallel trading analysis to connect the dots and track down these defendants,” said Daniel M. Hawke, Chief of the SEC Enforcement Division’s Market Abuse Unit. “Even when traders attempt to hide behind proxy servers, false filings, and phony foreign entities, we are able to quickly identify patterns and relationships to focus our investigation and identify who is behind the manipulative trading.”
The SEC’s complaint charges the defendants with violating antifraud provisions of the federal securities laws, including Section 17(a) of the Securities Act of 1933, Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-8. The complaint also charges Nedev with control person and other secondary liability under Sections 20(a) and 20(b) of the Exchange Act. The complaint seeks disgorgement, penalties, and other related relief.
The SEC’s investigation, which is continuing, is being conducted by David Snyder, Kelly Gibson, John Rymas, Patrick McCluskey, and Assunta Vivolo in the Market Abuse Unit. The case is being supervised by Mr. Hawke and the unit’s co-deputy chiefs Robert Cohen and Joseph Sansone. The litigation will be led by David Axelrod and John Donnelly of the SEC’s Philadelphia Regional Office.
06/04/2015 05:30 PM EDT
The Securities and Exchange Commission today announced an emergency asset freeze of two U.S. brokerage accounts connected to schemes to manipulate Avon and other stocks, thwarting any ability to cash in on ill-gotten proceeds.
According to an SEC complaint filed in federal court in Manhattan, the agency has tracked a filing on its EDGAR system last month about a false Avon tender offer to a foreign entity using an IP address located in Sofia, Bulgaria. A Bulgarian trader named Nedko Nedev controlled at least one of the two now-frozen brokerage accounts, and his account held a substantial position in Avon contracts-for-difference (CFDs) that were losing value in recent months. The SEC alleges that Nedev generated approximately $5,000 in excess profits by selling almost half of the account’s Avon CFDs at inflated prices after the EDGAR filing led to a 20-percent increase in the value of Avon stock on May 14.
The court issued an order at the SEC’s request freezing the two accounts, which contain approximately $2 million in assets.
“Only three weeks after the manipulation of Avon stock occurred, this emergency court order keeps not only the alleged illicit profits from being transferred offshore, but preserves the SEC’s ability to recover substantial penalties,” said Andrew Ceresney, Director of the SEC Enforcement Division.
In addition to Nedev, the SEC’s complaint charges Strategic Capital Partners Muster Ltd. and Strategic Wealth Investments Inc., which each own one of the brokerage accounts, and PTG Capital Partners LTD, which made the EDGAR filing containing the purported Avon tender offer. Also charged is similarly named PST Capital Group LTD, which allegedly made a false EDGAR filing in a 2012 scheme involving the stock of Rocky Mountain Chocolate Factory. The defendants also are charged with a similar scheme in 2014 involving Tower Group International Ltd., which involved a false press release instead of an EDGAR filing. The schemes followed similar patterns where the accounts had substantial holdings in a company that had been losing value and the companies’ stock values substantially increased after a false filing or press release originating from Bulgaria. The two accounts profited by more than $20,000 combined from the Tower Group alleged manipulation.
“We used parallel trading analysis to connect the dots and track down these defendants,” said Daniel M. Hawke, Chief of the SEC Enforcement Division’s Market Abuse Unit. “Even when traders attempt to hide behind proxy servers, false filings, and phony foreign entities, we are able to quickly identify patterns and relationships to focus our investigation and identify who is behind the manipulative trading.”
The SEC’s complaint charges the defendants with violating antifraud provisions of the federal securities laws, including Section 17(a) of the Securities Act of 1933, Sections 10(b) and 14(e) of the Securities Exchange Act of 1934, and Rules 10b-5 and 14e-8. The complaint also charges Nedev with control person and other secondary liability under Sections 20(a) and 20(b) of the Exchange Act. The complaint seeks disgorgement, penalties, and other related relief.
The SEC’s investigation, which is continuing, is being conducted by David Snyder, Kelly Gibson, John Rymas, Patrick McCluskey, and Assunta Vivolo in the Market Abuse Unit. The case is being supervised by Mr. Hawke and the unit’s co-deputy chiefs Robert Cohen and Joseph Sansone. The litigation will be led by David Axelrod and John Donnelly of the SEC’s Philadelphia Regional Office.
CDC REPORTS ON HEPATITIS B SCREENING AMONG RESETTLED REFUGEES
FROM: U.S. CENTERS FOR DISEASE CONTROL AND PREVENTION
Hepatitis B Screening and Prevalence Among Resettled Refugees — United States, 2006‒2011
Refugees are a heterogeneous population and hepatitis B prevalence is associated with country of origin and individual lived experience. Ongoing health surveillance activities focused on refugees are essential to ensuring appropriate assessment and treatment following resettlement. Hepatitis B is a viral disease that can be acute or chronic and is a significant public health concern both globally and in the United States. Refugees frequently emigrate from countries with high prevalence of active hepatitis B infection (≥2 percent), and/or are at higher risk of hepatitis B infection due to their lived experiences as refugees. However, refugees are a heterogeneous group and recent data are not available regarding prevalence of hepatitis B in recently resettled refugee communities. States, local health departments, healthcare providers, resettlement agencies, refugees, and other stakeholders may better target education and screening programs based on the prevalence of hepatitis B among the three refugee groups to have resettled in the greatest numbers over the last several years: Iraqis, Bhutanese, and Burmese.
Hepatitis B Screening and Prevalence Among Resettled Refugees — United States, 2006‒2011
Refugees are a heterogeneous population and hepatitis B prevalence is associated with country of origin and individual lived experience. Ongoing health surveillance activities focused on refugees are essential to ensuring appropriate assessment and treatment following resettlement. Hepatitis B is a viral disease that can be acute or chronic and is a significant public health concern both globally and in the United States. Refugees frequently emigrate from countries with high prevalence of active hepatitis B infection (≥2 percent), and/or are at higher risk of hepatitis B infection due to their lived experiences as refugees. However, refugees are a heterogeneous group and recent data are not available regarding prevalence of hepatitis B in recently resettled refugee communities. States, local health departments, healthcare providers, resettlement agencies, refugees, and other stakeholders may better target education and screening programs based on the prevalence of hepatitis B among the three refugee groups to have resettled in the greatest numbers over the last several years: Iraqis, Bhutanese, and Burmese.
SECRETARY KERRY'S STATEMENT ON NUCLEAR SECURITY TREATIES LEGISLATION
FROM: U.S. STATE DEPARTMENT
Passage of Implementing Legislation for Nuclear Security Treaties
Press Statement
John Kerry
Secretary of State
Washington, DC
June 4, 2015
This week, President Obama signed into law implementing legislation for treaties that represent legal cornerstones of the global nuclear security architecture, the strengthening of which is a key goal of the Nuclear Security Summits. This legislation will also enhance protections against threats from nuclear, biological, and chemical weapons.
The legislation amends the Convention on the Physical Protection of Nuclear Material (CPPNM), the International Convention for the Suppression of Acts of Nuclear Terrorism (ICSANT), and two Protocols to the Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation (SUA). The Department of State is now preparing the instruments of ratification of these important treaties for the President’s signature.
I want to personally thank the U.S. Congress, particularly the House and Senate Judiciary Committees, for their efforts on this critically important legislation. It is a laudable example of the good we can accomplish when two branches of government and two parties come together to strengthen our nation’s security. It is also yet another indication that the United States is committed on a bipartisan basis to eliminating the greatest threat to global security: nuclear terrorism.
The CPPNM amendment establishes new international norms for the physical protection of nuclear materials and facilities, including protection from sabotage. It also provides for expanded cooperation among state parties and defines new criminal offenses that must be made punishable by state parties under their domestic law. Once our national ratification actions are completed, the United States will work with other countries to secure the 16 additional ratifications that are needed in order for the amendment to enter into force with the goal of achieving this by the end of the year.
The ICSANT provides a specific legal basis for international cooperation in the investigation, prosecution, and extradition of those who commit terrorist acts involving radioactive material or a nuclear device, or any device that may emit radiation or disperse radioactive material.
The SUA Protocols establish the first international treaty framework for criminalizing certain terrorist acts, including using a ship or fixed platform in a terrorist activity, transporting weapons of mass destruction or their delivery systems and related materials, and transporting terrorist fugitives.
U.S. ratification of these treaties will honor U.S. pledges made at the 2010 Nuclear Security Summit and at the Proliferation Security Initiative 10th Anniversary Meeting in 2013. We call on all countries who share our commitment to preventing nuclear terrorism to join and fully implement these treaties.
Passage of Implementing Legislation for Nuclear Security Treaties
Press Statement
John Kerry
Secretary of State
Washington, DC
June 4, 2015
This week, President Obama signed into law implementing legislation for treaties that represent legal cornerstones of the global nuclear security architecture, the strengthening of which is a key goal of the Nuclear Security Summits. This legislation will also enhance protections against threats from nuclear, biological, and chemical weapons.
The legislation amends the Convention on the Physical Protection of Nuclear Material (CPPNM), the International Convention for the Suppression of Acts of Nuclear Terrorism (ICSANT), and two Protocols to the Convention for the Suppression of Unlawful Acts Against the Safety of Maritime Navigation (SUA). The Department of State is now preparing the instruments of ratification of these important treaties for the President’s signature.
I want to personally thank the U.S. Congress, particularly the House and Senate Judiciary Committees, for their efforts on this critically important legislation. It is a laudable example of the good we can accomplish when two branches of government and two parties come together to strengthen our nation’s security. It is also yet another indication that the United States is committed on a bipartisan basis to eliminating the greatest threat to global security: nuclear terrorism.
The CPPNM amendment establishes new international norms for the physical protection of nuclear materials and facilities, including protection from sabotage. It also provides for expanded cooperation among state parties and defines new criminal offenses that must be made punishable by state parties under their domestic law. Once our national ratification actions are completed, the United States will work with other countries to secure the 16 additional ratifications that are needed in order for the amendment to enter into force with the goal of achieving this by the end of the year.
The ICSANT provides a specific legal basis for international cooperation in the investigation, prosecution, and extradition of those who commit terrorist acts involving radioactive material or a nuclear device, or any device that may emit radiation or disperse radioactive material.
The SUA Protocols establish the first international treaty framework for criminalizing certain terrorist acts, including using a ship or fixed platform in a terrorist activity, transporting weapons of mass destruction or their delivery systems and related materials, and transporting terrorist fugitives.
U.S. ratification of these treaties will honor U.S. pledges made at the 2010 Nuclear Security Summit and at the Proliferation Security Initiative 10th Anniversary Meeting in 2013. We call on all countries who share our commitment to preventing nuclear terrorism to join and fully implement these treaties.
FORMER FBI AGENT INDICTED FOR ALLEGEDLY STEALING DRUG PROCEEDS AND OBSTRUCTING JUSTICE
FROM: U.S. JUSTICE DEPARTMENT
Thursday, June 4, 2015
Former FBI Special Agent Indicted for Theft of Drug Proceeds and Obstruction of Justice
A former special agent of the FBI was indicted yesterday for allegedly stealing over $100,000 of drug proceeds seized during the execution of search warrants and obstructing justice by taking steps to hide his alleged theft.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Justice Department’s Office of the Inspector General’s Los Angeles Field Office made the announcement.
“As alleged, former Agent Bowman put his own greed above the trust placed in him by the FBI and the American public,” said Assistant Attorney General Caldwell. “Corrupt law enforcement agents not only compromise those investigations in which they are involved, but also damage the reputations of fellow law enforcement officers who are dedicated to public service and the protection of all Americans.”
Scott M. Bowman, 44, of Moreno Valley, California, was charged in the Central District of California with three counts of conversion of property by a federal employee, three counts of obstruction of justice, two counts of money laundering, one count of falsification of records and one count of witness tampering.
According to allegations in the indictment, which was unsealed today, Bowman misappropriated over $100,000 of drug proceeds seized in June and August 2014 during the execution of three search warrants. The defendant allegedly misappropriated these funds after they were transferred to his custody in his official capacity as a federal law enforcement officer.
The indictment alleges that Bowman used the stolen money for his own purposes, including spending $43,850 in cash to purchase a 2012 Dodge Challenger coupe, $27,500 in cash to purchase a 2013 Toyota Scion FR-S coupe and approximately $26,612 in cash to outfit these vehicles with new equipment including speakers, rims and tires. According to the allegations in the indictment, the defendant also used approximately $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse, and opened a checking account into which he deposited approximately $10,665 of the stolen funds, a portion of which he used to pay for a weekend stay at a luxury hotel, casino and resort in Las Vegas, Nevada.
According to the indictment, to conceal his misappropriation of the drug proceeds, Bowman allegedly falsified official FBI reports and other records. Specifically, in connection with one of the seizures, Bowman allegedly endorsed an evidence receipt knowing that it did not accurately reflect the amount of cash seized and altered the same receipt by forging the signature of a police detective next to his own.
The indictment further alleges that Bowman made false representations to his colleagues regarding the disposition of certain seized drug proceeds. In addition, Bowman allegedly sent an email to the detective whose signature Bowman had forged setting forth a detailed cover story that the detective should offer if asked about Bowman’s activities with respect to the seized drug proceeds. According to the indictment, Bowman also allegedly provided the detective with a copy of the forged receipt so that the detective falsely could claim the forged signature as his own, if asked.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Trial Attorneys Robert J. Heberle and Lauren Bell of the Criminal Division’s Public Integrity Section.
Thursday, June 4, 2015
Former FBI Special Agent Indicted for Theft of Drug Proceeds and Obstruction of Justice
A former special agent of the FBI was indicted yesterday for allegedly stealing over $100,000 of drug proceeds seized during the execution of search warrants and obstructing justice by taking steps to hide his alleged theft.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge Angel D. Gunn of the Justice Department’s Office of the Inspector General’s Los Angeles Field Office made the announcement.
“As alleged, former Agent Bowman put his own greed above the trust placed in him by the FBI and the American public,” said Assistant Attorney General Caldwell. “Corrupt law enforcement agents not only compromise those investigations in which they are involved, but also damage the reputations of fellow law enforcement officers who are dedicated to public service and the protection of all Americans.”
Scott M. Bowman, 44, of Moreno Valley, California, was charged in the Central District of California with three counts of conversion of property by a federal employee, three counts of obstruction of justice, two counts of money laundering, one count of falsification of records and one count of witness tampering.
According to allegations in the indictment, which was unsealed today, Bowman misappropriated over $100,000 of drug proceeds seized in June and August 2014 during the execution of three search warrants. The defendant allegedly misappropriated these funds after they were transferred to his custody in his official capacity as a federal law enforcement officer.
The indictment alleges that Bowman used the stolen money for his own purposes, including spending $43,850 in cash to purchase a 2012 Dodge Challenger coupe, $27,500 in cash to purchase a 2013 Toyota Scion FR-S coupe and approximately $26,612 in cash to outfit these vehicles with new equipment including speakers, rims and tires. According to the allegations in the indictment, the defendant also used approximately $15,000 of the misappropriated cash to pay for cosmetic surgery for his spouse, and opened a checking account into which he deposited approximately $10,665 of the stolen funds, a portion of which he used to pay for a weekend stay at a luxury hotel, casino and resort in Las Vegas, Nevada.
According to the indictment, to conceal his misappropriation of the drug proceeds, Bowman allegedly falsified official FBI reports and other records. Specifically, in connection with one of the seizures, Bowman allegedly endorsed an evidence receipt knowing that it did not accurately reflect the amount of cash seized and altered the same receipt by forging the signature of a police detective next to his own.
The indictment further alleges that Bowman made false representations to his colleagues regarding the disposition of certain seized drug proceeds. In addition, Bowman allegedly sent an email to the detective whose signature Bowman had forged setting forth a detailed cover story that the detective should offer if asked about Bowman’s activities with respect to the seized drug proceeds. According to the indictment, Bowman also allegedly provided the detective with a copy of the forged receipt so that the detective falsely could claim the forged signature as his own, if asked.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Department of Justice Office of the Inspector General and is being prosecuted by Trial Attorneys Robert J. Heberle and Lauren Bell of the Criminal Division’s Public Integrity Section.
Friday, June 5, 2015
DOD REPORTS ON FIGHT AGAINST ISIL
FROM: U.S. DEFENSE DEPARTMENT
Coalition Air Power Leads Fight Against ISIL, General Says
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
DoD News, Defense Media Activity
WASHINGTON, June 5, 2015 – Despite facing one of the most complex operational environments in the fight against the Islamic State of Iraq and the Levant, coalition air power has enabled nearly every victory on the battlefield, a senior U.S. Central Command official said today.
During a telephonic call with Pentagon reporters, Air Force Lt. Gen. John W. Hesterman III, Combined Forces Air Component commander for Centcom, discussed the complexity and effectiveness of the air campaign against ISIL.
True Coalition Effort
Hesterman expressed pride in the multinational air coalition that formed “very quickly” demonstrating international commitment to defeating ISIL.
“The interoperability between our nations’ airmen validates years of combined training and multi-lateral exercises between our coalition partners,” he said.
Each nation brings capabilities, the general said, such as command and control, airlift, fire support and aerial refueling to a very complex operational environment creating a coalition greater than the sum of its parts.
“Our planning is a true coalition effort in the Combined Air Operations Center here,” Hesterman said, “and we’re flying side-by-side across the region in this fight against [ISIL].”
Airpower: Precise and Disciplined
The general said the air coalition is having a “profound” effect on the enemy.
“Our coalition airstrikes are the most precise and disciplined in the history of aerial warfare,” he said.
“We’ve been able to impact the enemy in a significant way, and we do it in a way that minimizes civilian casualties which our coalition nations, rightly, are very proud of,” Hesterman said.
Targeting ISIL, he said, is perhaps more challenging than ever before, but the coalition goes out of its way to protect innocent civilians, “because it’s the right thing to do, and it’s one of the things that separates us from the terrorists we’re fighting who kill anyone who isn’t them.”
ISIL can be targeted while still protecting civilians, Hesterman said.
Air Power’s Effectiveness
Hesterman noted coalition air power has not only been effective, but also has enabled “virtually every victory on the battlefield.”
It’s helped ground forces regain territory, he said, while removing more than 1,000 enemy fighters a month from the battlefield and eliminating the majority of ISIL’s oil refining capability.
More importantly, Hesterman said coalition air power is giving the Iraqi government and security forces the time necessary to prepare and execute sustained counter-ISIL offensives.
Coalition air power, he said, is giving all of the coalition nations the space and time to execute international lines of effort countering the flow of foreign fighters, ISIL financing and messaging, providing humanitarian assistance, and stabilizing liberated areas -- all necessary to defeat ISIL.
Different Type of Air Campaign
Hesterman emphasized the current air campaign is “a lot” different from previous campaigns.
“We’ve provided [an around-the-clock] presence over the battlefield to get after this enemy whenever we have the opportunity,” he said. “We go after this enemy wherever we find them.”
Hesterman added, “The comparisons being made to conflicts against field armies and nation-states don’t apply in this case, and the folks making them, frankly, haven’t been in a fight like the one that we’re in now.”
This enemy wrapped itself around a friendly population before the campaign even started, he said.
“There is no, and never has been, a well-developed target set for that which is necessary to do what we’ve done in the past,” Hesterman said. “It’s an order of magnitude more difficult than what we’ve done before. I can say that with a little bit of authority because I either participated in, or was well familiar with this, for about the last 32 years.”
Proud Coalition
The general lauded the “young men and women” of the multinational coalition risking their lives in the daily pursuit of ISIL “to give the world the time it needs” to galvanize the multiple lines of effort needed to ultimately defeat the terrorist group.
“They’re exceptionally proud of what they’re doing and their impact on the enemy,” he said. “I will tell you their superb ability to do it and the exceptionally limited civilian casualties are historic and [the operation] deserves the deep respect of every one of us.”
Hesterman said he’s proud of the coalition’s air team for what they’re accomplishing but noted this will be a “long fight.”
“There will be tactical setbacks that we should not give [ISIL] strategic victory credit for,” he said. “Be sure -- we in the coalition are fully committed to a strategic defeat of the … terrorists.”
Coalition Air Power Leads Fight Against ISIL, General Says
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
DoD News, Defense Media Activity
WASHINGTON, June 5, 2015 – Despite facing one of the most complex operational environments in the fight against the Islamic State of Iraq and the Levant, coalition air power has enabled nearly every victory on the battlefield, a senior U.S. Central Command official said today.
During a telephonic call with Pentagon reporters, Air Force Lt. Gen. John W. Hesterman III, Combined Forces Air Component commander for Centcom, discussed the complexity and effectiveness of the air campaign against ISIL.
True Coalition Effort
Hesterman expressed pride in the multinational air coalition that formed “very quickly” demonstrating international commitment to defeating ISIL.
“The interoperability between our nations’ airmen validates years of combined training and multi-lateral exercises between our coalition partners,” he said.
Each nation brings capabilities, the general said, such as command and control, airlift, fire support and aerial refueling to a very complex operational environment creating a coalition greater than the sum of its parts.
“Our planning is a true coalition effort in the Combined Air Operations Center here,” Hesterman said, “and we’re flying side-by-side across the region in this fight against [ISIL].”
Airpower: Precise and Disciplined
The general said the air coalition is having a “profound” effect on the enemy.
“Our coalition airstrikes are the most precise and disciplined in the history of aerial warfare,” he said.
“We’ve been able to impact the enemy in a significant way, and we do it in a way that minimizes civilian casualties which our coalition nations, rightly, are very proud of,” Hesterman said.
Targeting ISIL, he said, is perhaps more challenging than ever before, but the coalition goes out of its way to protect innocent civilians, “because it’s the right thing to do, and it’s one of the things that separates us from the terrorists we’re fighting who kill anyone who isn’t them.”
ISIL can be targeted while still protecting civilians, Hesterman said.
Air Power’s Effectiveness
Hesterman noted coalition air power has not only been effective, but also has enabled “virtually every victory on the battlefield.”
It’s helped ground forces regain territory, he said, while removing more than 1,000 enemy fighters a month from the battlefield and eliminating the majority of ISIL’s oil refining capability.
More importantly, Hesterman said coalition air power is giving the Iraqi government and security forces the time necessary to prepare and execute sustained counter-ISIL offensives.
Coalition air power, he said, is giving all of the coalition nations the space and time to execute international lines of effort countering the flow of foreign fighters, ISIL financing and messaging, providing humanitarian assistance, and stabilizing liberated areas -- all necessary to defeat ISIL.
Different Type of Air Campaign
Hesterman emphasized the current air campaign is “a lot” different from previous campaigns.
“We’ve provided [an around-the-clock] presence over the battlefield to get after this enemy whenever we have the opportunity,” he said. “We go after this enemy wherever we find them.”
Hesterman added, “The comparisons being made to conflicts against field armies and nation-states don’t apply in this case, and the folks making them, frankly, haven’t been in a fight like the one that we’re in now.”
This enemy wrapped itself around a friendly population before the campaign even started, he said.
“There is no, and never has been, a well-developed target set for that which is necessary to do what we’ve done in the past,” Hesterman said. “It’s an order of magnitude more difficult than what we’ve done before. I can say that with a little bit of authority because I either participated in, or was well familiar with this, for about the last 32 years.”
Proud Coalition
The general lauded the “young men and women” of the multinational coalition risking their lives in the daily pursuit of ISIL “to give the world the time it needs” to galvanize the multiple lines of effort needed to ultimately defeat the terrorist group.
“They’re exceptionally proud of what they’re doing and their impact on the enemy,” he said. “I will tell you their superb ability to do it and the exceptionally limited civilian casualties are historic and [the operation] deserves the deep respect of every one of us.”
Hesterman said he’s proud of the coalition’s air team for what they’re accomplishing but noted this will be a “long fight.”
“There will be tactical setbacks that we should not give [ISIL] strategic victory credit for,” he said. “Be sure -- we in the coalition are fully committed to a strategic defeat of the … terrorists.”
U.S. AND INDIA SIGN DEFENSE FRAMEWORK AGREEMENT
Right: U.S. Defense Secretary Ash Carter arrives for a meeting with India's Minister of Defense Manohar Parrikar on the final day of his visit to New Delhi, India, June 3, 2015. DoD photo by Glenn Fawcett.
U.S., India Sign 10-Year Defense Framework Agreement
By Jim Garamone
DoD News, Defense Media Activity
WASHINGTON, June 4, 2015 – In India, Defense Secretary Ash Carter and Indian Defense Minister Manohar Parrikar signed a 10-year defense framework agreement yesterday, highlighting the growth of defense cooperation between the two countries.
Carter is on a 10-day trip focused on the U.S. rebalance to the Asia-Pacific region.
The agreement signed in India yesterday is an outgrowth of a meeting that was held between President Barack Obama and Indian Prime Minister Narendra Modi in January.
Working Together
Out of that meeting grew the Defense Trade and Technology Initiative. The idea is for India and the United States to work closely together to develop military capabilities both can use.
Yesterday’s agreement included plans to cooperate in developing a mobile solar energy power source that could be used in remote areas and in developing a lightweight protective suit effective in chemical and biological hazard environments.
In India, Carter also met with Prime Minister Modi and External Affairs Minister Sushma Swaraj and National Security Adviser Ajit Doval. Carter also became the first U.S. defense secretary to visit an Indian operational military command -- the Eastern Naval Command in Visakhapatnam.
“This is just one more of many signs of what a positive trajectory we continue to be on with the defense community here in India,” Carter said during a media availability in New Delhi.
The secretary’s visit capitalizes on the convergence of India’s Act East policy and the U.S. rebalance to the Asia-Pacific region. Under the Act East policy, India will focus on improving relations with Association of Southeast Asian Nations and other East Asian countries. And the U.S. rebalance to the Asia-Pacific region recognizes the increasing importance of Asian nations to the global economy.
“These two things come together when it comes to maritime security, maritime domain awareness,” Carter said.
He also spoke of the convergence between Prime Minister Modi’s “Make In India” policy and the Defense Trade and Technology Initiative.
Cooperative Technology, Industrial Relationships
“The heart of that is to create cooperative technology and industrial relationships that are not just the buyer-seller kind,” the secretary said. “Both we and the Indians want to move beyond that, and there’s no reason why that can’t occur in the sense that industry wants to do it. We’re very willing to be flexible, creative. We are being that with a number of pathfinder projects.”
The agreement requires both countries to cut through the “historical burden of bureaucracy,” he said.
“It’s the burden that we carry forward from the fact that we were two separated industrial systems for so long during the Cold War,” Carter said. “It just takes time to get the two of them together.”
‘Everybody Wins, Everybody Rises’
The secretary reemphasized his message delivered at the Shangri-La Dialogue in Singapore earlier in the week -- the “everybody wins and everybody rises” approach to the Asian security architecture.
“That's what the United States believes in and is championing -- a vibrant Vietnam, it’s eager to do more, and we’re doing more with them,” the secretary said, “and India, an India that’s not only rising economically and militarily but is also a regional security provider now and in the future.”
The secretary expects the cooperation under the 10-year framework to increase. The nations are talking about cooperating on jet engines and aircraft carrier technology, he said.
“Some of the projects that we’re launching just now are, in part, intended to blaze a trail for things to come,” he said. “And the other thing to keep in mind is that the whole point is to make these industrially and economically successful projects. So they are not things that can be dictated by the governments; we try to involve industry.”
SECRETARY KERRY'S STATEMENT ON WORLD ENVIRONMENT DAY
FROM: U.S. STATE DEPARTMENT
World Environment Day
Press Statement
John Kerry
Secretary of State
Washington, DC
June 4, 2015
Every person on Earth has a role to play in protecting the environment we share—on World Environment Day, June 5, and every day. Every one of us has a responsibility to ensure that future generations are able to enjoy the same safe and healthy planet that we inherited.
This is a pivotal moment when it comes to environmental protection, and how we respond—or don’t—may come to define our generation. Today, our ocean is overfished, polluted, and acidifying by the day. And the science is clear: we must take action on climate change, which poses a threat to the entire planet. We just lived through the hottest year on record. The Arctic is melting faster than previously predicted. Islands and coastal regions face the threat of catastrophic flooding. Countries around the world suffer from historic droughts. Unless we take immediate global action to lower the harmful emissions that are linked to climate change and transition to clean energy sources that also help to grow our economies, we can expect to see these threats multiply.
The good news is we still have time to slow or even reverse some of the troubling trends we’re seeing. And over the course of this year, we’ll have some important opportunities to do so. In October, Chile will host the second-ever Our Ocean conference in Valparaíso, building on the remarkable progress we made at the first Our Ocean conference in Washington last June. And this December, world leaders will come together in Paris to try and reach an ambitious and comprehensive global climate change agreement.
But this isn’t just about what world leaders can do. We can all commit to making changes, small and large. For example, we can choose energy efficient products. We can recycle more. And we can choose to buy our food from sustainable sources. As nations and as individuals, we need to unite to protect our planet. We know what needs to be done; now we need to take action.
World Environment Day
Press Statement
John Kerry
Secretary of State
Washington, DC
June 4, 2015
Every person on Earth has a role to play in protecting the environment we share—on World Environment Day, June 5, and every day. Every one of us has a responsibility to ensure that future generations are able to enjoy the same safe and healthy planet that we inherited.
This is a pivotal moment when it comes to environmental protection, and how we respond—or don’t—may come to define our generation. Today, our ocean is overfished, polluted, and acidifying by the day. And the science is clear: we must take action on climate change, which poses a threat to the entire planet. We just lived through the hottest year on record. The Arctic is melting faster than previously predicted. Islands and coastal regions face the threat of catastrophic flooding. Countries around the world suffer from historic droughts. Unless we take immediate global action to lower the harmful emissions that are linked to climate change and transition to clean energy sources that also help to grow our economies, we can expect to see these threats multiply.
The good news is we still have time to slow or even reverse some of the troubling trends we’re seeing. And over the course of this year, we’ll have some important opportunities to do so. In October, Chile will host the second-ever Our Ocean conference in Valparaíso, building on the remarkable progress we made at the first Our Ocean conference in Washington last June. And this December, world leaders will come together in Paris to try and reach an ambitious and comprehensive global climate change agreement.
But this isn’t just about what world leaders can do. We can all commit to making changes, small and large. For example, we can choose energy efficient products. We can recycle more. And we can choose to buy our food from sustainable sources. As nations and as individuals, we need to unite to protect our planet. We know what needs to be done; now we need to take action.
VIETNAM VETERANS AND PTSD
FROM: U.S. DEPARTMENT OF VETERANS AFFAIRS
PTSD and Vietnam Veterans: A Lasting Issue 40 Years Later -
Post-traumatic stress disorder (PTSD) is defined as having flashbacks, upsetting memories, and anxiety following a traumatic event. It was first officially recognized as a mental health condition in 1980, only five years after the end of the Vietnam War. For hundreds of years, these symptoms have been described under different names in soldiers from many wars. However, Vietnam Veterans with these symptoms were the first to have the term ‘PTSD’ applied to them. Despite the passage of 50 years since the war, for some Vietnam Veterans, PTSD remains a chronic reality of everyday life. In 1983, Congress requested that VA conduct a study on the prevalence of PTSD and other postwar psychological problems among Vietnam Veterans. This was the first study to evaluate the prevalence of PTSD among Veterans, and became known as the National Vietnam Veterans Readjustment Study (NVVRS). The NVVRS brought greater attention to the issue of PTSD as it found that as many as 15 percent of Veterans had PTSD.
PTSD and Vietnam Veterans: A Lasting Issue 40 Years Later -
Post-traumatic stress disorder (PTSD) is defined as having flashbacks, upsetting memories, and anxiety following a traumatic event. It was first officially recognized as a mental health condition in 1980, only five years after the end of the Vietnam War. For hundreds of years, these symptoms have been described under different names in soldiers from many wars. However, Vietnam Veterans with these symptoms were the first to have the term ‘PTSD’ applied to them. Despite the passage of 50 years since the war, for some Vietnam Veterans, PTSD remains a chronic reality of everyday life. In 1983, Congress requested that VA conduct a study on the prevalence of PTSD and other postwar psychological problems among Vietnam Veterans. This was the first study to evaluate the prevalence of PTSD among Veterans, and became known as the National Vietnam Veterans Readjustment Study (NVVRS). The NVVRS brought greater attention to the issue of PTSD as it found that as many as 15 percent of Veterans had PTSD.
CDC REPORTS ON INFLUENZA ACTIVITY 2014-15 SEASON
FROM: CENTERS FOR DISEASE CONTROL AND PREVENTION EFFECTIVENESS, INFLUENZA VIRUSES
Influenza Activity — United States, 2014–15 Season and Composition of the 2015–16 Influenza Vaccine
While the influenza vaccine varies in how well it works, vaccination remains the best way to prevent influenza illness and its associated complications. Ongoing, timely influenza surveillance is needed to inform the selection of influenza vaccine viruses used for vaccine production. Although vaccine effectiveness was reduced this season against most H3N2 viruses, vaccination was still protective against vaccine-like influenza A (H3N2) viruses, influenza A (H1N1) viruses and influenza B viruses. The 2014-15 influenza season was an H3N2 predominant, moderately severe season overall, and especially severe for people 65 and older. Adults 65 and older had the highest hospitalization rates. Antigenic and genetic characterization showed that most of the circulating influenza A (H3N2) viruses were different from the influenza A (H3N2) component of the 2014–15 Northern Hemisphere vaccines, resulting in reduced vaccine effectiveness against circulating H3N2 viruses.
Influenza Activity — United States, 2014–15 Season and Composition of the 2015–16 Influenza Vaccine
While the influenza vaccine varies in how well it works, vaccination remains the best way to prevent influenza illness and its associated complications. Ongoing, timely influenza surveillance is needed to inform the selection of influenza vaccine viruses used for vaccine production. Although vaccine effectiveness was reduced this season against most H3N2 viruses, vaccination was still protective against vaccine-like influenza A (H3N2) viruses, influenza A (H1N1) viruses and influenza B viruses. The 2014-15 influenza season was an H3N2 predominant, moderately severe season overall, and especially severe for people 65 and older. Adults 65 and older had the highest hospitalization rates. Antigenic and genetic characterization showed that most of the circulating influenza A (H3N2) viruses were different from the influenza A (H3N2) component of the 2014–15 Northern Hemisphere vaccines, resulting in reduced vaccine effectiveness against circulating H3N2 viruses.
AIR FORCE SECRETARY JAMES OUTLINES CONTRIBUTIONS TO SPACE FLIGHT
Right: Secretary of the Air Force Deborah Lee James. DoD photo
AF Secretary Describes Space Flight Milestones, Challenges
By Amaani Lyle
DoD News, Defense Media Activity
WASHINGTON, June 4, 2015 – Air Force Secretary Deborah Lee James yesterday outlined the Air Force’s contributions to human space flight advancement and discussed projected milestones and investments in space.
James delivered the keynote address at the Center for American Progress at an event marking the 50th anniversary of Air Force Maj. Ed White leaving his Gemini 4 spacecraft to become the first American to walk in space.
“Space-based capabilities and effects are vital today to U.S. warfighting, homeland security and, indeed, to our way of life,” James said. “Space provides us with position, navigation and timing … [and] helps us with communications used in international banking, global commerce and remote sensing to deter against nuclear war.”
And space is not only an enabler for other domains, the secretary said, but also directly affects the calculus of national security. Though for many years people largely perceived the space environment as peaceful, James warned that is no longer necessarily so.
“Today our satellites … are threated by a proliferation of man-made space debris and by those who would deliberately seek to counter some of our advantages or capabilities in space,” the secretary said.
New Threats Require Different Thinking
The United States needs to think differently about strategies to buffer against increasing threats in space, James said, and posturing for defense and situational awareness in the domain are good starts. “We need to … prepare for the day when a conflict on Earth could translate to effects in space,” she added.
She cited success with the Air Force’s launch provider, United Launch Alliance.
“The Air Force [Evolved Expendable Launch Vehicle] program has had an unprecedented 100 percent launch success rate for almost 13 years,” James said. “We also have been encouraging newer launch providers … like SpaceX, to help us re-energize the industrial base and to reintroduce competition into the launch service arena.”
Recently, SpaceX and its Falcon 9 rocket were certified as the national security space launch service provider, which James said enables the Air Force to compete launch services for the first time in almost a decade. Leveraging competition will help the Air Force drive down taxpayer costs and boost space resiliency, she added.
Humans Will Soon Go to Mars
James said President Barack Obama’s national space transportation policy calls on NASA to develop the necessary capabilities to support human exploration of Mars.
During a recent speech at the Kennedy Space Center, Obama proclaimed that by the mid-2030s, he believes the United States can safely send humans to orbit Mars and return to Earth, and that landing on Mars will follow.
“The day we land on Mars -- and I, for one, hope that an airman will be on that mission … who will do so in the spirit of Ed White, this will be huge,” James said.
The Air Force’s support of the evolving space enterprise that will continue the exploration and development of space is equally important, the secretary said.
“The U.S. space infrastructure will grow to include capabilities such as on-orbit servicing, assembly of large orbiting structures and routine use of extraterrestrial resources,” she said, adding that returning to manned missions from U.S. soil will also be among the Air Force’s significant developments.
Innovation With Industry
Innovation and collaboration with industry keep the Air Force at the forefront of space capabilities nationally and globally, James said, and pays dividends for national space programs.
“The Gemini IV launch and Ed’s spacewalk … serve as shining examples of what our government can do when we work in close collaboration with industry,” she said. “So much of what we do depends on that innovation that comes to us from industry.”
With last year’s announcement that NASA selected SpaceX and Boeing to develop the commercial crew capsule, the secretary said she believes it’s “very likely” that airmen will return to space by way of Air Force launch facilities before the decade’s end. “That will mean the days of relying on Russians in this way will be numbered,” she added.
As the Defense Department’s executive agent for space, James said, she looks broadly across the enterprise at its strategy, budgets and threats. This, she told the audience, calls for greater investments in training, doctrine and tactics, just in the air and cyber domains.
Space situational awareness, or “the eyes in the sky,” underpins the domain’s programs, specifically related to launching humans and national security payloads into orbit, the secretary said. In July 2014 for example, the Air Force launched two geosynchronous space situational awareness program vehicles that are currently progressing with on-orbit research, development, testing and evaluation.
“This program is going to provide us with unprecedented awareness of the activities of other satellites and geosynchronous and geostationary orbits,” James said, adding that it will be “one of our key neighborhood watch programs.”
Pending an approved budgetary request, the Air Force is on track for the 2019 introduction of the Space Fence, which the secretary said can track smaller objects in low-Earth orbit, adapting capabilities to the trend of smaller and more capable satellites. “Even very small pieces of debris can do enormous damage to these precious satellites,” she said.
People are Greatest Factor in Space
Airmen, James said, have been seminal contributors to space advancement over the decades, including pioneers such as Astronaut Buzz Aldrin, who became the second moonwalker as part of the Apollo 11 mission and set a spacewalk record with five and a half hours outside the spacecraft during the Gemini 12 mission.
More recent examples, she said, include retired Air Force Gen. Kevin Chilton, who logged more than 704 hours in space before serving as commander of U.S. Strategic Command, and retired Air Force Col. Eileen Collins, who logged 872 hours in space and was the first woman to pilot a shuttle and command a shuttle mission.
James also noted Air Force Col. Terry Virts’ service as commander of the International Space Station, which, over the past 15 years, has been inhabited by astronauts from around the globe to advance space goals for humanity.
Orbiting 250 miles above the Earth, Virts and his team are responsible for “the most comprehensive study of year-long effects of space on the human body,” James said. The study, she added, will yield “absolutely essential information and insight … that will be pivotal in determining how humans will ultimately survive a mission to Mars.”
But in considering how to inspire and motivate future airmen in space, James noted that the Air Force’s contributions don’t begin and end with astronauts. Thousands of engineers, scientists, maintainers and other dedicated professionals also work toward sustaining America’s leadership in space, and launch infrastructure rockets such as the Atlas and Delta have been “workhorses” for space exploration, she said.
Defense Department investments include billions of dollars in the space industrial base and James said she predicted a budget uptick in that area due to the program’s significance.
Encouraging Future Airmen, Astronauts
But capabilities alone will not suffice in keeping an advantage in space, James said.
“Our airmen … must continue and become even more well versed in space, its application and its defense,” the secretary said. “Our airmen have to enhance their knowledge of how information … permeates all military systems and contributes to critical information and vital intelligence.”
Nurturing greater interest in science, technology, engineering and mathematics careers focused on space will ensure future airmen have a sustained zeal and curiosity for the field, James said. The Air Force and the Air Force Association partnered with industry to develop a program, Stellar Explorers, a STEM-themed group encouraging friendly competition in innovation and this year, coincided with the Space Symposium in Colorado, she noted.
“I’m hopeful … that programs like Stellar Explorers will inspire our youth and put them on a path toward careers involving space that is enriching, rewarding and fun. … Let’s face it -- space is fun,” James said.
U.S. OFFICIAL'S REMARKS ON TRANS-ATLANTIC DIGITAL ECONOMY
FROM: U.S. STATE DEPARTMENT
Growing the Trans-Atlantic Digital Economy
Remarks
Catherine A. Novelli
Under Secretary for Economic Growth, Energy, and the Environment
Lisbon Council
Brussels, Belgium
June 2, 2015
I. Introduction
Good afternoon. It is a great pleasure to be here in Brussels. I want to thank the Lisbon Council for bringing us together to discuss the important topic of growing the transatlantic digital economy.
Digital economy issues have been in the news a lot lately, especially with the release of the European Union’s Digital Single Market initiative. Some of that press attention has centered on the huge importance of a dynamic transatlantic digital economy and its implications for the rest of the world.
II. The Digital Single Market and EU History
Having worked on U.S.–European trade issues for 30 years, I am struck by how similar today’s debate over the Digital Single Market is to previous efforts to integrate and unify Europe’s national markets. As far back as the establishment of the European Steel and Coal Community in 1951, European leaders have negotiated agreements to capture the economic benefits of larger, better integrated markets, and made sure those benefits flowed to ordinary people. This process took a huge step forward in 1992, when European leaders first established a single EU market with four freedoms: the free movement of goods, services, people, and capital.
In America, the excitement and promise of a European single market was tempered by the concern that “1992” would result in a “Fortress Europe”. Fueled by the statements of some EU policymakers, there were fears that the post 1992 EU would focus on creating European champions and using discriminatory regulations and standards to close off markets to non-EU companies. Happily for the world, EU policymakers saw the real promise in the twin values of openness and integration. After energetic debate, the single market dismantled barriers, more deeply integrated the EU, and made Europe both more competitive as well as a global force for open, rules-based trade and investment.
Everyone, including U.S. firms, cheered – and invested. They cheered again two years later, when with strong impetus from the U.S. and EU, we concluded the Uruguay Round of multilateral trade negotiations and created the World Trade Organization. The combination of these two powerful liberalizing events had a transformative effect not just on the U.S. and Europe, but on the global economy. Twenty years later, the United States and the EU account for one-third of world trade in goods and services and nearly half of global economic output. U.S. companies have invested more than $2.4 trillion in Europe, nearly half of total U.S. foreign direct investment, while EU companies have invested more than $1.7 trillion in the United States. Thirteen million jobs for our citizens depend on our trade and investment flows.
There is analogous promise for Europe’s single digital market. Tearing down regulatory walls and moving from 28 national markets to a single digital market could contribute 415 billion Euros per year to the European economy and 3.8 million EU jobs in the digital economy alone.
There are some that say that Europe is behind America in the digital space and the EU therefore needs to promulgate policies that hold back U.S. companies so European ones can catch up. But the truth is that Internet related companies are already one of the most dynamic areas of the European economy.
According to a study published in 2014, Europe has produced 30 technology companies worth more than $1 billion since 2000, comparing well with the United States, which produced 39 billion-dollar companies between 2003 and 2013. Some of these are becoming household names, like Sweden’s Spotify, the UK’s King Digital, and Germany’s Zalando.
The growth of the EU’s digital economy is impressive and, with the right policies on both sides of the Atlantic, our digital economies can grow even more. We believe that achieving this goal requires four, key policies: flexible, interoperable standards; efficient cross-border data flows; expanded high-speed Internet access; and Internet-friendly trade agreements.
III. The Importance of Standards for Innovation and Growth
Our digital economies rely upon flexible and interoperable standards. With 4.9 billion connected devices on the planet and many billions more being added over the next decade, we need commonly-agreed technical solutions and standards that ensure the interoperability, security, and portability of digital devices. One of the strengths of the digital economy is that these standards have largely been developed not by governments but voluntarily by the engineers who know innovation best, outside of formal government channels.
Technical experts in major standards-setting organizations, like the World Wide Web Consortium, IEEE or the Internet Engineering Task Force, develop standards through open, participatory processes. They have proven more than capable of addressing issues with the speed and flexibility required in a rapidly changing Internet environment. We believe supporting these processes is fundamentally in the interest of both the United States and Europe.
IV. The Importance of Information Flows for Innovation and Growth
Policies that allow for the free flow of data are just as important as flexible, interoperable standards, and are absolutely critical to the functioning of our economies.
Cross-border data flows between the United States and Europe are already the highest in the world—50 percent higher than data flows between the United States and Asia and almost double the data flows between the United States and Latin America. Nearly 40 percent of data flows between the United States and Europe are over business and research networks.
Combined with the Internet backbone, these data flows enable us to deliver a huge range of activity we have all come to depend on including email, social networking platforms, online shopping sites, and e-banking. The U.S. and the EU are the two largest net exporters of digital goods and services to the rest of the world. In 2012, the United States’ $151 billion trade surplus in digital services was surpassed only by the EU’s $168 billion surplus. What is even more interesting, is the link between digital services and the bricks-and-mortar economy. In the EU, a full 53 percent of digital services imported from the U.S. (including consulting, engineering, design, and financial services) were used in the production of EU physical goods exports. A similar percentage of EU digital services went directly to U.S. exports.
At the same time, vast new data flows raise a number of privacy and security issues that need to be addressed to maintain the confidence of businesses, researchers, innovators, and ordinary citizens in the system. The United States and Europe need to bridge any differences in a way that will keep our transatlantic digital economy healthy. The Safe Harbor Framework is a strong example of one such bridge.
Since it was established 15 years ago, almost 3500 organizations across a broad range of industries have become Safe Harbor certified. These include large, multination corporations, medium sized firms, but also a surprisingly large number of small and medium enterprises, more than 60 percent of Safe Harbor companies are SMEs. By strengthening and affirming the Safe Harbor framework, we can effectively work with European partners to ensure that data can be transferred across borders freely and securely. We look forward to concluding the renegotiations in the very near future.
V. The Importance of Internet Access for Innovation and Growth
The Internet’s power is its universality. To completely fulfill the Internet’s promise, we want to work with the European Commission and other Internet savvy countries to redouble development efforts to extend Internet access to everyone. Unfortunately, the benefits of economic development – access to education, medicine, information and global markets that are fostered by the Internet are not yet shared by all. Roughly three out of every five people in the world today remain without Internet access – and in the poorest countries that figure can top 95%.
Studies show a direct link between internet connectivity and development. For every 10% increase in a country’s broadband penetration, GDP growth increases by 1 to 2%.
There’s a reason why access is relatively high in Colombia but low in Venezuela; high in Malaysia but low in North Korea; high in Kenya but low in Ethiopia. Some governments do much more than others to make access possible. Countries everywhere – including the United States and EU Member States – need clear and comprehensive national broadband plans that allow for private investment, encourage competition, remove bureaucratic obstacles and take full advantage of shared Internet services at schools, libraries, community centers and cafes.
With that goal in mind, we are looking for ways to partner with countries, regional development banks, network engineers, and industry leaders to foster a sound policy environment for a healthy Internet and substantially increase broadband access in the developing world.
VI. Transatlantic Trade and Investment Partnership
I would also like to say a few words about the impact of the Transatlantic Trade and Investment Partnership, or TTIP, on the Trans-Atlantic digital economy.
As we all know, a central goal of nearly all trade agreements, including TTIP, is to reduce or eliminate tariffs and non-tariff barriers to trade. This includes for physical goods provided via the Internet as well as digitally provided services.
What is also sometimes forgotten is how removal of these barriers helps small, innovative firms just getting started in the market. Ninety-nine percent of European and U.S. companies—over 20 million companies in the European Union and 28 million in the United States—are small and medium-sized companies, and these companies provided well over two-thirds of all net new jobs in both the United States in the European Union in recent decades. The Internet has made it possible for a small firm to be a global company from day one, with the reach and capabilities that once only large companies could possess.
SMEs with a strong Web presence earn twice as much from exports as those without a Web presence according to a 2011 McKinsey study. The same study revealed that connected SMEs also created more than twice the number of jobs as others.
However, trade barriers that restrict data flows, such as localization requirements, impair this economic growth. Data localization would mean that all technology or Internet start-ups would face much higher barriers to market entry – they would have to build a physical local infrastructure in every jurisdiction in which they operate. And, these infrastructure costs are staggering.
To build a data center in Brazil, Chile or the United States, per some estimates, a European technology start-up would spend $60.9 million in Brazil, $51.2 million in Chile, and $43 million in the U.S., with enormous additional energy and other operating costs. That creates extremely high barriers of entry for indigenous Internet and technology companies in Europe and across the world. It is in all of our interests to oppose these efforts and enshrine the free flow of data into trade agreements such as TTIP.
VII. Conclusion
As Monnet and Schuman, the founders of the European idea, knew, the free flow of goods, services, and ideas is not just a powerful formula for economic growth – it also reinforces the peaceful, democratic societies we all cherish. This is why we believe so strongly that a strong, single digital EU market that promotes growth, freedom and the free flow of knowledge in the EU and worldwide, will strengthen Trans-Atlantic ties and the world economy. Whether through TTIP, the Safe Harbor framework, or dozens of other proposals and collaborations intended to promote the digital economy, we are committed to working toward a Trans-Atlantic market that is as open, secure, and seamless as possible.
Thank you very much.
Growing the Trans-Atlantic Digital Economy
Remarks
Catherine A. Novelli
Under Secretary for Economic Growth, Energy, and the Environment
Lisbon Council
Brussels, Belgium
June 2, 2015
I. Introduction
Good afternoon. It is a great pleasure to be here in Brussels. I want to thank the Lisbon Council for bringing us together to discuss the important topic of growing the transatlantic digital economy.
Digital economy issues have been in the news a lot lately, especially with the release of the European Union’s Digital Single Market initiative. Some of that press attention has centered on the huge importance of a dynamic transatlantic digital economy and its implications for the rest of the world.
II. The Digital Single Market and EU History
Having worked on U.S.–European trade issues for 30 years, I am struck by how similar today’s debate over the Digital Single Market is to previous efforts to integrate and unify Europe’s national markets. As far back as the establishment of the European Steel and Coal Community in 1951, European leaders have negotiated agreements to capture the economic benefits of larger, better integrated markets, and made sure those benefits flowed to ordinary people. This process took a huge step forward in 1992, when European leaders first established a single EU market with four freedoms: the free movement of goods, services, people, and capital.
In America, the excitement and promise of a European single market was tempered by the concern that “1992” would result in a “Fortress Europe”. Fueled by the statements of some EU policymakers, there were fears that the post 1992 EU would focus on creating European champions and using discriminatory regulations and standards to close off markets to non-EU companies. Happily for the world, EU policymakers saw the real promise in the twin values of openness and integration. After energetic debate, the single market dismantled barriers, more deeply integrated the EU, and made Europe both more competitive as well as a global force for open, rules-based trade and investment.
Everyone, including U.S. firms, cheered – and invested. They cheered again two years later, when with strong impetus from the U.S. and EU, we concluded the Uruguay Round of multilateral trade negotiations and created the World Trade Organization. The combination of these two powerful liberalizing events had a transformative effect not just on the U.S. and Europe, but on the global economy. Twenty years later, the United States and the EU account for one-third of world trade in goods and services and nearly half of global economic output. U.S. companies have invested more than $2.4 trillion in Europe, nearly half of total U.S. foreign direct investment, while EU companies have invested more than $1.7 trillion in the United States. Thirteen million jobs for our citizens depend on our trade and investment flows.
There is analogous promise for Europe’s single digital market. Tearing down regulatory walls and moving from 28 national markets to a single digital market could contribute 415 billion Euros per year to the European economy and 3.8 million EU jobs in the digital economy alone.
There are some that say that Europe is behind America in the digital space and the EU therefore needs to promulgate policies that hold back U.S. companies so European ones can catch up. But the truth is that Internet related companies are already one of the most dynamic areas of the European economy.
According to a study published in 2014, Europe has produced 30 technology companies worth more than $1 billion since 2000, comparing well with the United States, which produced 39 billion-dollar companies between 2003 and 2013. Some of these are becoming household names, like Sweden’s Spotify, the UK’s King Digital, and Germany’s Zalando.
The growth of the EU’s digital economy is impressive and, with the right policies on both sides of the Atlantic, our digital economies can grow even more. We believe that achieving this goal requires four, key policies: flexible, interoperable standards; efficient cross-border data flows; expanded high-speed Internet access; and Internet-friendly trade agreements.
III. The Importance of Standards for Innovation and Growth
Our digital economies rely upon flexible and interoperable standards. With 4.9 billion connected devices on the planet and many billions more being added over the next decade, we need commonly-agreed technical solutions and standards that ensure the interoperability, security, and portability of digital devices. One of the strengths of the digital economy is that these standards have largely been developed not by governments but voluntarily by the engineers who know innovation best, outside of formal government channels.
Technical experts in major standards-setting organizations, like the World Wide Web Consortium, IEEE or the Internet Engineering Task Force, develop standards through open, participatory processes. They have proven more than capable of addressing issues with the speed and flexibility required in a rapidly changing Internet environment. We believe supporting these processes is fundamentally in the interest of both the United States and Europe.
IV. The Importance of Information Flows for Innovation and Growth
Policies that allow for the free flow of data are just as important as flexible, interoperable standards, and are absolutely critical to the functioning of our economies.
Cross-border data flows between the United States and Europe are already the highest in the world—50 percent higher than data flows between the United States and Asia and almost double the data flows between the United States and Latin America. Nearly 40 percent of data flows between the United States and Europe are over business and research networks.
Combined with the Internet backbone, these data flows enable us to deliver a huge range of activity we have all come to depend on including email, social networking platforms, online shopping sites, and e-banking. The U.S. and the EU are the two largest net exporters of digital goods and services to the rest of the world. In 2012, the United States’ $151 billion trade surplus in digital services was surpassed only by the EU’s $168 billion surplus. What is even more interesting, is the link between digital services and the bricks-and-mortar economy. In the EU, a full 53 percent of digital services imported from the U.S. (including consulting, engineering, design, and financial services) were used in the production of EU physical goods exports. A similar percentage of EU digital services went directly to U.S. exports.
At the same time, vast new data flows raise a number of privacy and security issues that need to be addressed to maintain the confidence of businesses, researchers, innovators, and ordinary citizens in the system. The United States and Europe need to bridge any differences in a way that will keep our transatlantic digital economy healthy. The Safe Harbor Framework is a strong example of one such bridge.
Since it was established 15 years ago, almost 3500 organizations across a broad range of industries have become Safe Harbor certified. These include large, multination corporations, medium sized firms, but also a surprisingly large number of small and medium enterprises, more than 60 percent of Safe Harbor companies are SMEs. By strengthening and affirming the Safe Harbor framework, we can effectively work with European partners to ensure that data can be transferred across borders freely and securely. We look forward to concluding the renegotiations in the very near future.
V. The Importance of Internet Access for Innovation and Growth
The Internet’s power is its universality. To completely fulfill the Internet’s promise, we want to work with the European Commission and other Internet savvy countries to redouble development efforts to extend Internet access to everyone. Unfortunately, the benefits of economic development – access to education, medicine, information and global markets that are fostered by the Internet are not yet shared by all. Roughly three out of every five people in the world today remain without Internet access – and in the poorest countries that figure can top 95%.
Studies show a direct link between internet connectivity and development. For every 10% increase in a country’s broadband penetration, GDP growth increases by 1 to 2%.
There’s a reason why access is relatively high in Colombia but low in Venezuela; high in Malaysia but low in North Korea; high in Kenya but low in Ethiopia. Some governments do much more than others to make access possible. Countries everywhere – including the United States and EU Member States – need clear and comprehensive national broadband plans that allow for private investment, encourage competition, remove bureaucratic obstacles and take full advantage of shared Internet services at schools, libraries, community centers and cafes.
With that goal in mind, we are looking for ways to partner with countries, regional development banks, network engineers, and industry leaders to foster a sound policy environment for a healthy Internet and substantially increase broadband access in the developing world.
VI. Transatlantic Trade and Investment Partnership
I would also like to say a few words about the impact of the Transatlantic Trade and Investment Partnership, or TTIP, on the Trans-Atlantic digital economy.
As we all know, a central goal of nearly all trade agreements, including TTIP, is to reduce or eliminate tariffs and non-tariff barriers to trade. This includes for physical goods provided via the Internet as well as digitally provided services.
What is also sometimes forgotten is how removal of these barriers helps small, innovative firms just getting started in the market. Ninety-nine percent of European and U.S. companies—over 20 million companies in the European Union and 28 million in the United States—are small and medium-sized companies, and these companies provided well over two-thirds of all net new jobs in both the United States in the European Union in recent decades. The Internet has made it possible for a small firm to be a global company from day one, with the reach and capabilities that once only large companies could possess.
SMEs with a strong Web presence earn twice as much from exports as those without a Web presence according to a 2011 McKinsey study. The same study revealed that connected SMEs also created more than twice the number of jobs as others.
However, trade barriers that restrict data flows, such as localization requirements, impair this economic growth. Data localization would mean that all technology or Internet start-ups would face much higher barriers to market entry – they would have to build a physical local infrastructure in every jurisdiction in which they operate. And, these infrastructure costs are staggering.
To build a data center in Brazil, Chile or the United States, per some estimates, a European technology start-up would spend $60.9 million in Brazil, $51.2 million in Chile, and $43 million in the U.S., with enormous additional energy and other operating costs. That creates extremely high barriers of entry for indigenous Internet and technology companies in Europe and across the world. It is in all of our interests to oppose these efforts and enshrine the free flow of data into trade agreements such as TTIP.
VII. Conclusion
As Monnet and Schuman, the founders of the European idea, knew, the free flow of goods, services, and ideas is not just a powerful formula for economic growth – it also reinforces the peaceful, democratic societies we all cherish. This is why we believe so strongly that a strong, single digital EU market that promotes growth, freedom and the free flow of knowledge in the EU and worldwide, will strengthen Trans-Atlantic ties and the world economy. Whether through TTIP, the Safe Harbor framework, or dozens of other proposals and collaborations intended to promote the digital economy, we are committed to working toward a Trans-Atlantic market that is as open, secure, and seamless as possible.
Thank you very much.
Thursday, June 4, 2015
GSA ANNOUNCES INFORMATION REGARDING HACK ATTACK EXPOSING PERSONAL INFO OF FEDERAL EMPLOYEES
FROM: GENERAL SERVICES ADMINISTRATION
Information About the Recent OPM Cybersecurity Incident
The U.S. Office of Personnel Management (OPM) recently became aware of a cybersecurity incident affecting its systems and data that may have exposed the personal information of current and former Federal employees.
Beginning June 8 and continuing through June 19, 2015, OPM will be sending email and U.S. mail notifications to current and former Federal employees potentially impacted by the incident.
The communication will contain information regarding services being provided at no cost to individuals impacted by the incident, including credit report access, credit monitoring, identity theft insurance, and recovery services.
Information About the Recent OPM Cybersecurity Incident
The U.S. Office of Personnel Management (OPM) recently became aware of a cybersecurity incident affecting its systems and data that may have exposed the personal information of current and former Federal employees.
Beginning June 8 and continuing through June 19, 2015, OPM will be sending email and U.S. mail notifications to current and former Federal employees potentially impacted by the incident.
The communication will contain information regarding services being provided at no cost to individuals impacted by the incident, including credit report access, credit monitoring, identity theft insurance, and recovery services.
U.S. CONGRATULATES PEOPLE OF SWEDEN ON THEIR NATIONAL DAY
FROM: U.S. STATE DEPARTMENT
On the Occasion of Sweden's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
June 4, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Sweden on the 206th anniversary of the adoption of your constitution.
Sweden’s constitution encapsulates the freedoms to which people all over the world aspire. Together, Sweden and the United States continue to promote our shared values of democracy, respect for human rights, and rule of law across the globe.
We value innumerable Swedish and Swedish-American contributions to the social, economic, and religious development of the United States, such as the historic Swedish settlements in my hometown of Boston, whose traditions we continue to honor today. In particular, Swedes and Swedish-Americans share a rich history of exploration. Swedish-American Charles Lindbergh paved the way for transatlantic travel and Swedish-American astronaut Edwin “Buzz” Aldrin led us to the moon. Today, that legacy continues with Christer Fuglesang, the first Swedish citizen in space.
As you celebrate your national day with family and friends, the United States stands with you as a steadfast partner and looks forward to continuing to address global challenges and expand ties between our peoples. I wish all Swedish people continued peace and prosperity.
On the Occasion of Sweden's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
June 4, 2015
On behalf of President Obama and the people of the United States, I congratulate the people of Sweden on the 206th anniversary of the adoption of your constitution.
Sweden’s constitution encapsulates the freedoms to which people all over the world aspire. Together, Sweden and the United States continue to promote our shared values of democracy, respect for human rights, and rule of law across the globe.
We value innumerable Swedish and Swedish-American contributions to the social, economic, and religious development of the United States, such as the historic Swedish settlements in my hometown of Boston, whose traditions we continue to honor today. In particular, Swedes and Swedish-Americans share a rich history of exploration. Swedish-American Charles Lindbergh paved the way for transatlantic travel and Swedish-American astronaut Edwin “Buzz” Aldrin led us to the moon. Today, that legacy continues with Christer Fuglesang, the first Swedish citizen in space.
As you celebrate your national day with family and friends, the United States stands with you as a steadfast partner and looks forward to continuing to address global challenges and expand ties between our peoples. I wish all Swedish people continued peace and prosperity.
JUNE 4, 2015 DOD REPORT ON AIRSTRIKES AGAINST ISIL
FROM: U.S. DEFENSE DEPARTMENT
Airstrikes Hit ISIL Terrorists in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, June 4, 2015 – U.S. and coalition military forces have continued to attack Islamic State of Iraq and the Levant terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.
Officials reported details of the latest strikes, which took place between 8 a.m. yesterday and 8 a.m. today, local time, noting that assessments of results are based on initial reports.
Airstrikes in Syria
Bomber, fighter and remotely piloted aircraft conducted eight airstrikes in Syria:
-- Near Hasakah, four airstrikes struck two ISIL large tactical units, destroying seven ISIL fighting positions and an ISIL vehicle.
-- Near Raqqah, two airstrikes struck an ISIL tactical unit, destroying six ISIL excavators and an ISIL vehicle.
-- Near Kobani, two airstrikes struck two ISIL tactical units and two ISIL mortar positions, destroying an ISIL vehicle.
Airstrikes in Iraq
Attack, fighter and remotely piloted aircraft conducted nine airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Baghdadi, one airstrike struck an ISIL tactical unit, destroying an ISIL structure.
-- Near Beiji, three airstrikes struck land features denying ISIL a tactical advantage, destroying an ISIL vehicle-borne improvised explosive device.
-- Near Mosul, one airstrike had inconclusive results.
-- Near Ramadi, one airstrike struck an ISIL tactical unit, destroying an ISIL excavator.
-- Near Sinjar, two airstrikes struck an ISIL large tactical unit, destroying three ISIL heavy machine guns, three ISIL buildings and two ISIL vehicles.
-- Near Tal Afar, one airstrike struck an ISIL tactical unit, destroying two ISIL heavy machine guns and two ISIL buildings.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.
Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, Jordan, the Netherlands and the United Kingdom. Coalition conducting airstrikes in Syria include the United States, Bahrain, Canada, Jordan, Saudi Arabia and the United Arab Emirates.
Airstrikes Hit ISIL Terrorists in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, June 4, 2015 – U.S. and coalition military forces have continued to attack Islamic State of Iraq and the Levant terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.
Officials reported details of the latest strikes, which took place between 8 a.m. yesterday and 8 a.m. today, local time, noting that assessments of results are based on initial reports.
Airstrikes in Syria
Bomber, fighter and remotely piloted aircraft conducted eight airstrikes in Syria:
-- Near Hasakah, four airstrikes struck two ISIL large tactical units, destroying seven ISIL fighting positions and an ISIL vehicle.
-- Near Raqqah, two airstrikes struck an ISIL tactical unit, destroying six ISIL excavators and an ISIL vehicle.
-- Near Kobani, two airstrikes struck two ISIL tactical units and two ISIL mortar positions, destroying an ISIL vehicle.
Airstrikes in Iraq
Attack, fighter and remotely piloted aircraft conducted nine airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Baghdadi, one airstrike struck an ISIL tactical unit, destroying an ISIL structure.
-- Near Beiji, three airstrikes struck land features denying ISIL a tactical advantage, destroying an ISIL vehicle-borne improvised explosive device.
-- Near Mosul, one airstrike had inconclusive results.
-- Near Ramadi, one airstrike struck an ISIL tactical unit, destroying an ISIL excavator.
-- Near Sinjar, two airstrikes struck an ISIL large tactical unit, destroying three ISIL heavy machine guns, three ISIL buildings and two ISIL vehicles.
-- Near Tal Afar, one airstrike struck an ISIL tactical unit, destroying two ISIL heavy machine guns and two ISIL buildings.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations.
Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, Jordan, the Netherlands and the United Kingdom. Coalition conducting airstrikes in Syria include the United States, Bahrain, Canada, Jordan, Saudi Arabia and the United Arab Emirates.
Subscribe to:
Posts (Atom)