Monday, February 16, 2015

REMARKS BY ASSISTANT SECRETARY ROSE ON U.S.-JAPAN SPACE COOPERATION AND SECURITY IN ASIA-PACIFIC

FROM:  U.S. STATE DEPARTMENT
Security in the Asia Pacific Region and U.S.-Japan Space Cooperation
Remarks
Frank A. Rose
Assistant Secretary, Bureau of Arms Control, Verification and Compliance
Elliott School of International Affairs, George Washington University
Washington, DC
February 13, 2015

Panel Details

9:30 – 10:50 am
Session 1: “Security in the Asia Pacific Region and U.S.-Japan Space Cooperation”
Moderator: Victoria Samson, Secure World Foundation
Yasuaki Hashimoto, National Institute for Defense Studies
Yuichiro Nagai, University of Tokyo
Deputy Assistant Secretary Douglas Loverro, U.S. Department of Defense
Assistant Secretary Frank Rose, U.S. Department of State

Introduction

Thanks to you all for having me this morning. I’m so pleased to be up here with my Japanese colleagues as well as Doug Loverro from the Pentagon. I’d also like to thank the Elliot School and Scott Pace, as well as co-sponsors PARI at the University of Tokyo and the Mitsubishi Research Institute, for organizing this important discussion.

Security in the Asia Pacific

This morning’s panel is particularly well timed, as I’ve recently returned from Japan and will be heading back to the region in just over a week for the U.S.-Japan Space Security Dialogue in Tokyo.

Space cooperation between the United States and Japan has a long history, built on the extensive civil and scientific cooperation among NASA, NOAA, and other U.S. agencies and their Japanese counterparts.

And while U.S.-Japan space security cooperation is relatively new, Japan has taken a critical leadership role in those efforts.

Our discussions on these issues have grown into one of the most important relationships we have with our Allies and partners on outer space security issues.

My work in the region, particularly when it comes to outer space cooperation and security, has really shown me the increasing role Japan is playing to address both regional and global security challenges.

The rebalance in the Asia-Pacific region reflects our recognition that the United States must broaden and deepen our engagement there at all levels, including addressing emerging security challenges such as the long-term sustainability, stability, safety, and security of the space environment.

It’s been a lot of ground to cover in a short amount of time. But as Secretary Kerry will tell you, extraordinary transformations are the norm in the Asia-Pacific region today.

Strengthening the U.S.-Japan Alliance

The United States-Japan Alliance has long been the cornerstone of peace and security in the Asia-Pacific region.

Our partnership with Asia-Pacific nations not only enhances the national security of our respective countries, but also strengthens strategic stability in the region as well as international peace and security globally.

We recognize the need to enhance our Alliance with Japan in wide-ranging areas of common interest in order to address the changing security environment. Part of our effort to strengthen and modernize our Alliance is through enhanced space cooperation.

Cooperation on space security is now part of the Common Strategic Objectives of the Alliance, and bilateral cooperation on civil and security space was recognized in the outcomes of summits between President Obama and former Prime Minister Noda in 2012 and again with Prime Minister Abe in 2014.

Recognizing the need to confront emerging security challenges and update the alliance for the 21st century, we are currently working closely with Japan to ensure that space security cooperation is included for the first time in the U.S.-Japan Defense Guidelines, which provide a general framework and policy direction for the roles and missions of the two countries and ways of cooperation and coordination.

Cooperation on space security has expanded alongside the President’s rebalance to Asia. What began as a discussion of threats and possibilities for collaboration has turned into a full-range of cooperative efforts bilaterally, regionally, and multilaterally.

Bilateral Space Cooperation

Recognizing the numerous opportunities for cooperation on space issues, the United States and Japan have held several space security dialogues in the last five years, in addition to ongoing civil space dialogues.

In fact, due to the success and robustness of our space security and civil space dialogues, our governments have also established a Comprehensive Dialogue on Space at the request of President Obama and former Prime Minister Noda, in order to address the bilateral relationship at a strategic level and to ensure a whole-of-government approach to space matters. We have held two Comprehensive Dialogues to date, with a third meeting to be held later this year in Japan.

Through these dialogues, we not only discuss possible avenues of cooperation and exchange space policies, we also have made tremendous progress in furthering our tangible space security cooperation.

In regards to improving our space situational awareness – specifically, improving our shared ability to rapidly detect, warn of, characterize, and attribute natural and man-made disturbances to space systems – in 2013 the United States signed a Space Situational Awareness (SSA) information sharing agreement with Japan.

Building on the foundation of that agreement, we are also exploring the possibility of establishing “two-way” SSA sharing with Japan. We hope that as our space surveillance capabilities improve, we will be able to notify satellite operators earlier and with greater accuracy in order to prevent collisions in space.

We are also looking at how we can expand cooperation on utilizing space systems for maritime domain awareness. To that end, the United States and Japan held the first “Use of Space for Maritime Domain Awareness” table top exercise last year.

We have also worked hard to expand our “people-to-people” cooperation. Between Japanese visits to Washington and my own visits to Tokyo, I find myself engaging with my Japanese counterparts nearly every other month.

Members of the Japanese Ministry of Defense attend U.S. Air Force space training out in Colorado Springs, and a member of my own team at AVC, along with a U.S. airman, has just finished a year-long study on space policy within the Japanese government.

Such cooperation has also produced great successes in the academic and NGO communities, such as the excellent work done here at the Space Policy Institute.

Multilateral Cooperation

We also work closely together to cooperate and to coordinate positions on multilateral space issues. We hold an annual trilateral space security dialogue with Australia and Japan to coordinate our positions on these space security issues.

Our joint efforts to advance the work of the UN Committee on the Peaceful Uses of Outer Space (UNCOPUOS) Working Group on Long-term Sustainability of Outer Space Activities (LTS) continue to make progress.

Perhaps one of the most beneficial transparency and confidence-building measures, or TCBMs, for ensuring sustainability and security in space could be the adoption of an International Code of Conduct to prevent mishaps, misperceptions, and mistrust in space. A code would establish guidelines, or rules of the road, to reduce the risks of debris-generating events, including collisions.

The United States is working with the European Union and other spacefaring nations, like Japan, to advance such a Code and in the Asia-Pacific region. Both Japan and Australia have also endorsed its development.

Conclusion

In his State of the Union, President Obama spoke of the need to modernize our alliances in the Asia Pacific to meet common international challenges.

In his State of the Union, President Obama spoke of the need to modernize our alliances in the Asia Pacific to meet common international challenges.

With the Government of Japan as a strong partner in space security, we are working together to do just that. Thanks very much, and I look forward to the discussion.

U.S. CONGRATULATES PEOPLE OF LITHUANIA ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT
On the Occasion of Lithuania's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 13, 2015

On behalf of President Obama and the people of the United States, I congratulate the people of Lithuania on the 97th anniversary of your independence on February 16.

This year marks 25 years since Lithuanians bravely declared their independence from the Soviet Union and re-established the independent Lithuanian state that first came into existence in 1918.

In 1990, while Lithuanians took to the streets of Vilnius and Kaunas collecting signatures to petition for their freedom, thousands of New Yorkers joined in solidarity across the Atlantic – marching down Fifth Avenue in the name of a sovereign Lithuania.

I appreciate the warm hospitality of the Lithuanian people during my September 2013 visit to Vilnius. We continue to strengthen our bilateral relationship most recently during Vice President Biden’s visit to Vilnius in March 2014 and his meeting with President GrybauskaitÄ on the margins of the 2015 Munich Security Conference.

The ties between our nations are deep, and our cultures are intertwined. As NATO allies, we are committed to freedom, democracy, and human rights. We also share a passion for the expressions of our shared values through art and sports. The works of Jonas Mekas – the godfather of American avant-garde cinema – link our two countries. As does the historic Lithuanian men’s basketball team at the 1992 Summer Olympics, whose famous logo was designed by a New York artist.

The United States is proud of our longstanding friendship with your country and our continued cooperation on today’s pressing challenges. We look forward to working with you to build a future of peace, prosperity, and freedom for all people.

On this day of celebration, I wish all Lithuanians peace and prosperity in the year ahead.

THE HOUSEHOLD BOT

FROM:  NATIONAL SCIENCE FOUNDATION
Human insights inspire solutions for household robots
New algorithms designed by Berkeley and UMass researchers allow autonomous systems to deal with uncertainty

People typically consider doing the laundry to be a boring chore. But laundry is far from boring for artificial intelligence (AI) researchers like Siddharth Srivastava, a scientist at the United Technologies Research Center, Berkeley.

To AI experts, programming a robot to do the laundry represents a challenging planning problem because current sensing and manipulation technology is not good enough to identify precisely the number of clothing pieces that are in a pile and the number that are picked up with each grasp. People can easily cope with this type of uncertainty and come up with a simple plan. But roboticists for decades have struggled to design an autonomous system able to do what we do so casually--clean our clothes.

In work done at the University of California, Berkeley, and presented at the Association for Advancement of Artificial Intelligence conference in Austin, Srivastava (working with Abhishek Gupta, Pieter Abbeel and Stuart Russell from UC Berkeley and Shlomo Zilberstein from University of Massachusetts, Amherst) demonstrated a robot that is capable of doing laundry without any specific knowledge of what it has to wash.

Earlier work by Abbeel's group had demonstrated solutions for the sorting and folding of clothes. The laundry task serves as an example for a wide-range of daily tasks that we do without thinking but that have, until now, proved difficult for automated tools assisting humans.

"The widely imagined helper robots of the future are expected to 'clear the table,' 'do laundry' or perform day-to-day tasks with ease," Srivastava said. "Currently however, computing the required behavior for such tasks is a challenging problem--particularly when there's uncertainty in resource or object quantities."

Humans, on the other hand, solve such problems with barely a conscious effort. In their work, the researchers showed how to compute correct solutions to problems by using some assumptions about the uncertainty.

"The main issue is how to develop what we call 'generalized plans,'" said Zilberstein, a professor of computer science and director of the Resource Bound Reasoning Lab at UMass Amherst. "These are plans that don't just work in a particular situation that is very well defined and gets you to a particular goal that is also well defined, but rather ones that work on a whole range of situations and you may not even know certain things about it."

The researchers' key insight was to use human behavior--the almost unconscious action of pulling, stuffing, folding and piling--as a template, adapting both the repetitive and thoughtful aspects of human problem-solving to handle uncertainty in their computed solutions.

By doing so, they enabled a PR2 robot to do the laundry without knowing how many and what type of clothes needed to be washed.

Out of the 13 or so tasks involved in the laundry problem, the team's system was able to complete more than half of them autonomously and nearly completed the rest--by far the most effective demonstration of laundering AI to date.

The framework that Srivastava and his team developed combines several popular planning paradigms that have been developed in the past using complex control structures such as loops and branches and optimizes them to run efficiently on modern hardware. It also incorporates an effective approach for computing plans by learning from examples, rather than through rigid instructions or programs.

"What's particularly exciting is that these methods provide a way forward in a problem that's well known to be computationally unsolvable in the worst case," Srivastava said. "We identified a simpler formulation that is solvable and also covers many useful scenarios."

"It is exciting to see how this breakthrough builds upon NSF-funded efforts tackling a variety of basic-research problems including planning, uncertainty, and task repetition," said Héctor Muñoz-Avila, program director at NSF's Robust Intelligence cluster.

Though laundry robots are an impressive, and potentially time-saving, application of AI, the framework that Srivastava and his team developed can be applied to a range of problems. From manufacturing to space exploration to search-and-rescue operations, any situation where artificially intelligent systems must act, despite some degree of uncertainty, can be addressed with their method.

"Using this approach, solutions to high-level planning can be generated automatically," Srivastava said. "There's more work to be done in this direction, but eventually we hope such methods will replace tedious and error-prone task-specific programming for robots."

-- Aaron Dubrow, NSF
-- Siddharth Srivastava, United Technologies Research Center
Investigators
Siddharth Srivastava
Shlomo Zilberstein
Related Institutions/Organizations
United Technologies Research Center
University of Massachusetts Amherst
Locations
Berkeley , California
Amherst , Massachusetts
Related Programs
Robust Intelligence
Related Awards
#0915071 RI: Small: Foundations and Applications of Generalized Planning
Years Research Conducted
2009 - 2015

Total Grants
$503,519

Sunday, February 15, 2015

NASA VIDEO | PROJECTED WESTERN MEGADROUGHTS

DEPUTY DEFENSE SECRETARY SAYS MORAL STRONG AT ICBM/BOMB WING BASE

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Deputy Defense Secretary Bob Work tours a B-52 weapons loading training hangar on Minot Air Force Base, N.D., Feb. 11, 2015. Work, who chairs the Nuclear Deterrent Enterprise Review Group, met with nuclear enterprise airmen and toured base facilities. DoD photo by Claudette Roulo.  

Deputy Secretary Visits Minot, Notes Strong Morale
By Claudette Roulo
DoD News, Defense Media Activity

ABOARD A MILITARY AIRCRAFT, Feb. 12, 2015 – Deputy Defense Secretary Bob Work said morale is strong at Minot Air Force Base, North Dakota, after he visited facilities and spoke with airmen yesterday at the only base to host two legs of the nuclear triad.

Work spent the day visiting the base, home to the 91st Missile Wing, responsible for the operation and maintenance of Minuteman III intercontinental ballistic missiles, and the 5th Bomb Wing, which flies the B-52H Stratofortress bomber.
The visit provided the deputy secretary with an opportunity to speak with service members and get a first-hand look at the issues he has been discussing in Washington as chairman of the Nuclear Deterrent Enterprise Review Group.
"Nothing's better than being able to look the troops in the eye and … hear what they're saying," he said. "I now know what a ‘rising B-plug’ is and what it looks like, and I understand all of the different challenges they're facing. It's really good to put eyes on target."

Renewed Effort to Improve Quality of Life

Following a string of incidents dating back to March 2013, when missile-launch crews failed an inspection, the Defense Department has focused renewed effort on improving the quality of life for service members and families at the base.
Some of the facilities the deputy secretary saw during his tour dated back to the 1950s, and are under scrutiny as part of the initiative to reinvigorate the nuclear force.

“These systems are so old that right now what happens is [airmen] will order a part and the part has to be fabricated -- there are not a lot of parts on the shelves -- so it takes longer for them to get parts than they would like,” Work said.
Outdated facilities and equipment haven't stopped the airmen at Minot from performing their mission, Work said. The sign over the base’s gate reads “Only the Best Come North,” and outside-the-box thinking by operators and maintainers is keeping the mission on track, he said.

"Some of the stuff they're doing is just amazing," the deputy secretary said. "The stuff they're doing in there is just unbelievable. … It's because the troops are so damn good, so, the mission-capable rate of the missiles is really quite high. But man, they're so old.”

Airmen Outline Concerns

Work held a private lunch with 12 Air Force maintainers who outlined some of their concerns for the deputy secretary. The airmen agreed that the attention focused on the aging missile and bomber fleets is beginning to bear fruit, he said.
“They've seen the improvements in manning already occurring, they were very happy about that,” the deputy secretary said. “The one area that they're worried about is the overall experience level of the force.”

As manning levels are brought back up, mid-level noncommissioned officers are leading an increasing number of new, inexperienced airmen. At the same time, those NCOs aren’t as experienced as the service would like, Work said.
“That's going to be something that, as the force grows, we'll grow out of it,” the deputy secretary said.

Will the Focus Continue?

The airmen he spoke with all are encouraged by the changes, he said, but they wondered if the attention would continue under the next defense secretary.
“I told them, 'Look, Ash Carter is literally a nuclear physicist. This is one of the areas that he really is both strong on and thinks very much about.' I told them that I thought it would continue, and certainly as long as I was the deputy secretary, it will continue,” Work said.

Morale is high, he said. “The troops were dedicated to the mission,” Work said. “Overall, I was pretty pleased.”

WHITE HOUSE VIDEO: President Obama Signs the Clay Hunt Suicide Prevention for American Vete...

TECHNOLOGY AND SENSING FAILURE

FROM:  NATIONAL SCIENCE FOUNDATION
Warding off failure

Tiny, self-powered sensors push the limits of health and usage monitoring
Imagine a world where bridges, roads, heart valves or knee replacements could monitor themselves and send a warning signal before they fail. Imagine then, if these advanced pieces of technology could power themselves and operate for years without needing any maintenance.

Shantanu Chakrabartty, a researcher at Michigan State University (MSU), has worked for almost a decade on these safety-critical goals. Using four National Science Foundation (NSF) grants since 2006, the associate professor of electrical and computer engineering in MSU's College of Engineering has focused on the fundamental science behind self-powered sensors for health and usage monitoring.

"My part is the core science that drives this technology," Chakrabartty said. "I am interested in the device's physics and in exploring new ways to sense and compute on the sensor. The technology is currently being piloted in different applications, and every new application allows me to optimize the sensor in different ways."

Self-powered sensors developed by Chakrabartty and his collaborators may be attached to or embedded inside bridges, pavements, vehicles, rotating parts and biomedical implants. They can autonomously sense, compute and store cumulative statistics of strain rates, without the aid of batteries.

Tiny sensor networks

With NSF support, Chakrabartty discovered a unique synchrony between the physics of flash memory and the physics of devices that convert mechanical stress into energy.

The innovation, called piezoelectricity-driven hot electron injection (p-IHEI), enables energy-harvesting sensors to be miniaturized.

These tiny sensors can then be embedded inside structures like wind turbines or rotor blades. They can even be placed inside the human body--for instance, in a knee implant or a heart valve.

A network of micro-sized sensors can self-diagnose any catastrophic failure, according to Chakrabartty. Once fully packaged, he hopes the sensor will become an integral part of any "smart" structure, whether it is civil, mechanical or biomechanical.

Remote access to foil failure

The sensors can be remotely retrieved with a smartphone and used to predict the onset of mechanical failure. Users may be alerted to potential problems, minimizing the risk of bodily harm and significantly reducing maintenance costs.

"Currently, we're looking at using a diagnostic ultrasound to retrieve data from the sensors implanted in the body," Chakrabartty said. "This will be highly cost-effective and will be compatible with instrumentation already used by health care professionals."

"My goal is now to explore new biomedical applications of these sensors and push its limits of performance," he said.

One of the new sensor applications is smart sports helmets that diagnose concussions.

"At a time when we all carry sensors in our pockets and on our wrists to monitor many of our daily activities, technology that enables the assessment of the health of critical infrastructure, vital organs or the occurrence of life-threatening events is long overdue and sorely needed," said Massimo Ruzzene, program director in NSF's Engineering Directorate. "Dr. Chakrabartty's innovations in the area of remote, self-powered sensing significantly contributes to this need."

Chakrabartty won an NSF CAREER Award in 2010 for his research in energy-harvesting sensors and processors. Though his Adaptive Integrated Microsystems (AIM) Laboratory at MSU, he has been working on a revolutionary sensing paradigm to help engineers and doctors monitor the health of mechanical structures.

The self-powered sensor research has spawned two U.S. and international patents with several other patents pending. The technology is being marketed by the MSU Technologies Office and has led to the formation of Piezonix, a start-up company based in Michigan.

Key outcomes:

Chakrabartty's technology has led to two issued U.S. patent with several patents pending. The technology also won him the Michigan State University 2012 Innovation of the Year Award, and has created an array of ongoing scientific collaborations.

Nizar Lajnef, assistant professor of civil engineering at MSU, earned his PhD through a related NSF award. His research monitors the degradation of asphalt and bridges. Read more in "Street Smarts – Monitors being created to watch for road and bridge defects."

Formation of Piezonix, a start-up company responsible for commercialization of the self-powered sensing technology.

Several undergraduate senior design projects led to the development of software used for collecting data from the sensors.

Spin-off collaborations include research on smart infrastructure (roads and bridges), smart aircraft skins, smart orthopedic implants, smart heart valves and smart football helmets.


-- Patricia Mroczek, Michigan State University College of Engineering
Investigators
Yang Liu
Niell Elvin
Subir Biswas
Tracey  Covassin
Rigoberto Burgueno
Shantanu Chakrabartty
Related Institutions/Organizations
Piezonix LLC
Michigan State University

COMPANY SETTLES SEC ALLEGATIONS OF NOT CONTROLLING ASSOCIATES

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION 

The Securities and Exchange Commission  announced that the former CEO of a global investment services firm’s brokerage subsidiary agreed to pay more than $783,000 and admit wrongdoing to settle a case involving employees under his control misleading customers.

The SEC previously charged ConvergEx Group subsidiaries, which paid $107 million and admitted wrongdoing to settle the charges.  The SEC also charged two former employees in that enforcement action, and later separately filed a case against a different former ConvergEx subsidiary CEO that is pending in federal court.

According to the SEC’s complaint against Craig S. Lax filed today in federal court in Newark, N.J., the ConvergEx subsidiaries under his control engaged in a scheme that caused customers to pay substantially higher amounts than the disclosed commissions for buying and selling securities.  The scheme involved concealing the practice of routing trading orders to an offshore affiliate in order to take hidden mark-ups and mark-downs commonly referred to as “trading profits” or “TP.”  Lax authorized employees to temporarily suspend taking TP when a customer asked for a certain report that could reveal the hidden charges.  Lax also authorized the use of a proprietary trading algorithm to hide the charges from a customer in an otherwise transparent market.  To avoid potential questions from customers about why one particular trader was located offshore, Lax requested new business cards falsely indicating the trader was located in New York.

In settling the SEC’s charges, Lax additionally agreed to be barred from the securities industry for at least five years.

“Senior executives cannot permit deceptive practices by their subordinates,” said Stephen L. Cohen, an Associate Director in the SEC’s Division of Enforcement.  “Lax not only condoned such conduct, but he specifically authorized practices that kept customers in the dark.”

Lax consented to the entry of a judgment, subject to court approval, permanently enjoining him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.  Lax has entered into an agreement to cooperate in the SEC’s ongoing investigation and pending litigation.  The amount of any financial penalty to be imposed against Lax will be determined at a later date.

The SEC’s investigation is being conducted by Sarah L. Allgeier, Richard E. Johnston, and Thomas D. Manganello and supervised by Jennifer S. Leete.  Litigation is being led by Cheryl L. Crumpton and Kyle M. DeYoung.  The SEC appreciates the assistance of the Fraud Section of the U.S. Department of Justice’s Criminal Division, the Federal Bureau of Investigation, and the U.S. Postal Inspection Service.

Saturday, February 14, 2015

Weekly Address: Giving Every Child, Everywhere, a Fair Shot

NASA VIDEO| SDO: YEAR 5

G-7 LEADERS MAKE STATEMENT ON UKRAINE

FROM:  THE WHITE HOUSE
February 13, 2015
G-7 Leaders Statement on Ukraine

We, the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, the United States, the President of the European Council and the President of the European Commission welcome the “Package of Measures for the Implementation of the Minsk Agreements” adopted by their original signatories on 12th February 2015 in Minsk. Implementation of the “Minsk Package” offers a way forward to a comprehensive, sustainable, and peaceful resolution to the crisis in eastern Ukraine.

However, the G7 remains concerned about the situation in Ukraine, in particular in view of the fighting around Debaltseve where Russian-backed separatist militias are operating beyond the line of contact agreed upon in the Minsk agreements of September 2014, causing numerous civilian casualties. We urge all sides to adhere strictly to the provisions of the Package and to carry out its measures without delay, starting with a ceasefire on the 15th of February. All parties should refrain from actions in the coming days that would hinder the start of the ceasefire. The G7 stands ready to adopt appropriate measures against those who violate the “Minsk package” and therefore intensify the costs for them, in particular against those who do not observe the agreed comprehensive ceasefire and withdrawal of heavy weapons.

We again condemn Russia's illegal annexation of Crimea which is in violation of international law.

The G7 welcomes the agreement in principle reached on the 12th of February by the IMF and the government of Ukraine on a new economic reform program that will be supported by an IMF Extended Fund Facility. The G7 members look forward to prompt consideration of the program by the IMF Executive Board. We are providing financial assistance to support Ukraine. This international assistance will help Ukraine in the ambitious economic reforms it is undertaking to restore economic growth and improve the living standards of the Ukrainian people. We commend the government of Ukraine for its commitment to implement this ambitious reform agenda with regard to economic, rule-of-law, and democratic reforms.

SARAH SEWALL ON ENDING MODERN SLAVERY

FROM:  U.S. STATE DEPARTMENT
Ending Modern Slavery: The Role of U.S. Leadership
Testimony
Sarah Sewall
Under Secretary for Civilian Security, Democracy, and Human Rights
U.S. Senate Committee on Foreign Relations
Washington, DC
February 11, 2015

Chairman Corker,
Senator Menendez,
Members of the Committee,
Ladies and Gentlemen,

Thank you, Mr. Chairman and members of the committee, for your leadership in combating trafficking in persons. On behalf of the State Department, I look forward to working closely with you to tackle this terrible crime and human rights abuse. This issue is a policy priority for the Administration and Secretary Kerry, in particular, and I thank you for the opportunity to speak today.

What do we, in the U.S. government, mean when we talk about human trafficking? Under the Trafficking Victims Protection Act (or TVPA), trafficking in persons includes forced labor, forced prostitution of adults, and the prostitution of children. The term human trafficking describes acts of recruiting, harboring, transporting, providing, or obtaining a person for compelled labor or commercial sex acts through the use of force, fraud, or coercion, although inducing minors into the commercial sex trade is considered trafficking even if no force, fraud or coercion is involved. It can include, but does not require, movement of individuals. Trafficking in persons harms people and corrodes communities. It corrupts labor markets and global supply chains that are essential to a thriving global economy. It undermines rule of law and stability. Fighting trafficking in persons is the smart thing to do, and it is the right thing to do. As President Obama has said, “Our fight against human trafficking is one of the great human rights causes of our time, and the United States will continue to lead it.” It is our responsibility as a country and as individuals to protect the universal values of liberty and freedom.

There is a lot that we as individuals can do to join this struggle against modern slavery. I recently went to SlaveryFootprint.org and took a survey to learn how my consumption habits are connected to modern-day slavery. It was a stark reminder – many of the products I use on a daily basis, the battery in my cell phone, the chocolate I eat, the cotton clothes I wear, may have been produced from the work of dozens of slaves. Slavery Footprint, a project seed-funded by the State Department, has reached millions of consumers globally and given them a voice to insist that the food we eat and the products we buy are made free of forced labor.

Let me begin by discussing what the U.S. government is doing here at home. Federal agencies have been going the extra mile, spurred by President Obama’s March 2012 direction to his Cabinet to redouble the Administration’s efforts to combat human trafficking. The President’s Interagency Task Force to Monitor and Combat and Trafficking in Persons, which Congress established and Secretary Kerry currently chairs, has strengthened its collaborative work, including developing and implementing the nation’s first-ever Federal Strategic Action Plan on Services for Victims of Human Trafficking in the United States. Government agencies are enabling law enforcement and service providers to deploy resources more effectively and raising public awareness both at home and abroad.

Federal agencies are also working to expand partnerships with civil society and the private sector to bring more resources to bear in fighting this injustice. The Treasury Department’s Financial Crimes Enforcement Network issued an advisory last September to financial institutions on recognizing “red flags” that may indicate financial activity related to human trafficking as well as the distinct crime of human smuggling. The advisory provides common terms that financial institutions may use when reporting activity related to these crimes that will assist law enforcement in better identifying possible cases of human trafficking.

As the largest single purchaser of goods and services both in the United States and around the world, the U.S. government must set the highest standards for our own business practices. With Executive Order 13627, the President committed the federal government to strengthen protections against human trafficking in federal contracting. Just over a week ago, the Federal Acquisition Regulatory Council published updates to the Federal Acquisition Regulation, as required by this Executive Order and related requirements in the Ending Trafficking in Government Contracting Act (set forth in the National Defense Authorization Act for 2013), establishing a number of new and important anti-trafficking safeguards. In addition, the State Department funded Verité, an award-winning labor rights NGO, to develop a range of tools and resources for all businesses – not just federal contractors – committed to preventing trafficking. As part of this initiative, Verité just published a report entitled Strengthening Protections Against Trafficking in Persons in Federal and Corporate Supply Chains, which details the risks of human trafficking in 11 key sectors where federal procurement is significant. This type of supply chain risk analysis can help federal contractors, other businesses, and consumers identify and mitigate human trafficking.

Here in the United States, we have modern-day heroes who are changing how we do business. The members of the Coalition of Immokalee Workers have transformed Florida tomato fields from a place of wide-spread egregious exploitation into one where workers’ rights are not only respected, but prioritized. They demanded that the large restaurant and supermarket chains purchase tomatoes at a fair price. On January 29, in front of leaders from the private sector, civil society, and the Federal government assembled for a White House Forum on Combating Trafficking in Persons in Supply Chains, Secretary Kerry presented the Coalition with the 2015 Presidential Award for Extraordinary Efforts to Combat Trafficking in Persons. Among the accomplishments for which the Coalition was recognized is its Fair Foods Program, a highly successful worker-based social responsibility model that leverages the market power of major corporate buyers, coupled with strong consumer awareness, worker training, and robust enforcement mechanisms to end labor trafficking, enhance wages, and promote workplace rights.

Congress and the American people also have much to be proud of. This year marks the 15th anniversary of the Trafficking Victims Protection Act, as well as the United Nations Protocol to Prevent, Suppress, and Punish Trafficking in Persons, known as the Palermo Protocol. We have come a long way in the past 15 years: 166 states are now party to the Palermo Protocol. Human trafficking has moved from a misunderstood issue to an international priority. More than one hundred countries have passed anti-trafficking laws and many have established specialized law enforcement units, set up trafficking victim assistance mechanisms, and launched public awareness campaigns aimed at combating this worldwide crime that affects every country.

However, we have a long way to go. Although the International Labor Organization (ILO) estimates there are 21 million victims of forced labor around the world, the 2014 Trafficking in Persons (TIP) Report notes that fewer than 45,000 trafficking victims were identified in 2014. Convictions of traffickers remain woefully insufficient given the magnitude of the crime. This is a troubling trend we must continue working to address. Having adequate anti-trafficking laws is an important first step for any country, but these laws must be enforced, and traffickers held accountable.

Fueled by the dedication of officers in every bureau of the Department as well as at U.S. missions around the world, the TVPA-mandated TIP Report plays an important role in confronting this lucrative crime. In accordance with the Minimum Standards of the TVPA, the TIP Report assesses the adequacy of national laws in prohibiting and punishing the crime and evaluates government actions to prosecute suspects and protect victims. Countries and territories are ranked by tiers based on these standards. Tier 1 countries fully comply with the Minimum Standards. Tier 2 and Tier 2 Watch List countries do not, but are making significant efforts to do so. Tier 3 countries are not making significant efforts to fully comply with the Minimum Standards. These rankings help hold governments accountable in their efforts to fight human trafficking. They motivate governments to develop policies and structures to fight this serious crime. In fact, researchers have documented the correlation between tier ranking downgrades and states’ subsequent enactment of anti-trafficking legislation.

The TIP Report includes specific recommendations for how each country can better prevent this crime, prosecute its suspected perpetrators, and assist its victims. These recommendations are the heart of the Report. They guide U.S. diplomacy and engagement on human trafficking issues – both publicly and privately. They also serve as a roadmap to better address the problem – not for the sake of improving a tier ranking, but to make institutional changes that will put additional traffickers behind bars, help victims get assistance, and prevent exploitation of the vulnerable.

A key element to the TIP Report is identifying and documenting trends in types of exploitation, in criminal strategies, and in raising awareness and cracking down on the crime. For example, over time we have seen more governments recognize the important contributions of NGOs in this fight and improved cooperation, especially in the areas of victim identification and victim services. Many countries are beginning to grapple with the extent and challenges of detecting forced labor. While we have seen an increase in the detection of forced labor cases, there is still a large disparity in government efforts to address forced labor, which is considered to be more prevalent globally than sex trafficking. In victim identification and services, women and girls appear to comprise the vast majority of identified victims of sex trafficking and are also a substantial portion of labor trafficking victims. In addition, we have seen links in regional and trans-regional human trafficking to economic disparity and migration flows, the presence of organized crime, conflicts and political instability, official corruption and weak rule of law.

The State Department and USAID have sought to combine anti-trafficking and labor rights diplomacy with complementary programming to help countries achieve results. The State Department’s Trafficking in Persons (TIP) Office is currently overseeing 98 projects worth over $59 million in 71 countries around the world. The TIP Office’s foreign assistance targets both sex trafficking and labor trafficking through implementation of the “3P” paradigm of prevention, protection of victims, and prosecution of suspected traffickers. A fourth “P” for partnership, is also a critical element in the majority of programs. Along with funding NGOs that offer services to trafficking victims, much of our anti-trafficking assistance is designed to help partner governments build their own capacity to fight human trafficking. In the last two years, Botswana, Haiti, Maldives, Papua New Guinea, and Seychelles all passed anti-trafficking laws, and Morocco and Namibia have drafted anti-trafficking legislation. In March 2014, the Bahamas secured its first conviction for human trafficking. Maldives also saw its first trafficking conviction.

Successful programs often work in close partnership with host country governments and key stakeholders to encourage a comprehensive response to trafficking. For example, in Afghanistan, a State Department grantee partnered with the Ministry of Women’s Affairs to establish an advocacy council comprised of local non-governmental organizations and relevant government agencies to enhance protection measures for victims of human trafficking. The council and government coalition partners have adopted minimum standards of care for trafficking victims and provide training and capacity-building assistance. The TIP Office is currently funding a global project that integrates survivors of trafficking into a six-month vocational and educational program in the hotel service industry. The project provides survivors and at-risk youth with life skills and vocational training through a combination of training and practical instruction in coordination with leading hotels. This project has already demonstrated successes in Mexico and Vietnam and was recently expanded to India and Ethiopia.

Labor programming from the State Department’s Bureau of Democracy, Human Rights, and Labor (DRL) targets forced labor through strengthening the organizational and technical capacity of worker rights organizations, providing socio-economic support and alternative livelihood opportunities to exploited workers, and strengthening systems to promote identification and remediation of labor law violations in a variety of sectors at the local, regional, and international levels. DRL’s grants are designed to bolster civil society and labor’s capacity to play a role in migration policymaking. The Department makes an effort to ensure that trade and investment policies, agreements, and preference programs consistently address work conditions for both national and foreign migrant workers. In collaboration with the State Department’s Economic Bureau and the Department of Commerce, DRL partners with multinational corporations, business councils, and American Chambers of Commerce to convey expectations on labor rights both to host governments and to companies within their supply chains.

The State Department’s Bureau of Population, Refugees, and Migration funds eight regional migration programs that build government and civil society capacity to identify and protect vulnerable migrants, including victims of human trafficking. The bureau also funds a program that facilitates the family reunification of foreign trafficking victims identified in the United States and contributes to a global fund that helps stranded trafficking victims voluntarily return home.

Corruption and an environment of impunity are significant factors contributing to the practice of human trafficking. The Bureau of International Narcotics and Law Enforcement Affairs has some of the Department’s strongest tools for strengthening rule of law and helping governments prevent and combat corruption. Its anti-corruption and law enforcement programming provides training to law enforcement officers and the judiciary on investigating human trafficking and corruption cases and address the linkages among human trafficking, corruption, and organized crime.

Interagency training at U.S. missions overseas, including Brazil, Cambodia, the Philippines, Togo, the Dominican Republic, and Hong Kong, will enable State Department, DHS, and FBI agents to pursue trafficking cases in the U.S. through international cooperation and engagement in foreign countries. These agencies have trained some 2,000 law enforcement and consular officers, as well as locally employed staff, at embassies and consulates around the world. Closer to home on our border with Mexico, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts to exchange leads and evidence, assist victims, and develop high-impact prosecutions under both U.S. and Mexican law.

USAID is one of the largest donors engaged in efforts to counter human trafficking. Since 2001, USAID has programed approximately $180 million in anti-trafficking activities in over 70 countries and regional missions. Throughout all of its work, USAID seeks to address the root causes of exploitation and vulnerability, such as gender and ethnic discrimination, lack of educational and employment opportunities, weak rule of law, and the absence of social welfare safety nets. In Jordan, USAID has integrated counter-trafficking activities into a broader human rights program combating sexual and gender based violence, early marriage, and child labor among Syrian refugees and host communities affected by the Syrian crisis. With State Department funding, the International Centre for Migration Policy Development is assessing the impact of the Syrian war on trafficking in persons in Syria and the surrounding region (Iraq, Jordan, Lebanon, and Turkey).

In Bangladesh, along with providing training and technical assistance to a range of government officials, USAID has worked to improve community awareness of the risks of human trafficking throughout the country. Local government officials, teachers, parents, students, and community leaders have learned how to prevent human trafficking and support the needs of survivors. USAID also has helped prospective migrant workers protect themselves from deception and abuse through awareness campaigns and trainings on the overseas recruitment process, worker registration, and other risks they may face. USAID continues to train media professionals, NGOs and independent journalists on investigative reporting, story development, and human rights with a focus on migrant worker rights. Complementary TIP Office programming has supported the development and distribution of an anti-trafficking law enforcement training toolkit and hands-on training for 45 Bangladeshi law enforcement officials on the toolkit’s practical application. In Dhaka, Bogra, and Jessore, 258 trafficking survivors so far have received State Department supported shelter, rehabilitation, and reintegration services.

In 2013, Congress gave the State Department a new innovative tool to combat trafficking of children, the Child Protection Compacts (CPC). The compacts can help build sustainable and effective systems of justice, prevention, and protection. I am pleased to tell you that the TIP Office is moving forward to propose the first Child Protection Compact Partnership – to be developed and implemented jointly with the Government of Ghana. This Compact Partnership will include developing a collaborative plan to implement new and more effective policies and programs to reduce child trafficking and improve child protection in Ghana. Several strong civil society organizations are currently working to address child sex trafficking and forced labor in Ghana and, in addition to the Ghanaian government, the TIP Office expects to engage multiple partners to fulfill the promise of this first Partnership.

Our international partners – including civil society, other governments, and international organizations – play an essential role in making each step forward possible. In the Asia-Pacific region, Australia has taken on a leadership role with its Australia-Asia Program to Combat Trafficking in Persons, a five-year AUD50 million program to support the Association of Southeast Asian Nations (ASEAN) and seven Southeast Asian countries in developing and implementing criminal justice responses to trafficking in persons. In addition, Australian police regularly conduct trainings to combat child sex tourism and other forms of human trafficking across the Asia-Pacific region. ASEAN under the Government of Burma’s chairmanship chose to highlight anti-trafficking priorities in 2014.

The European Union is strengthening anti-trafficking efforts across its member states through the issuance and enforcement of its 2011 anti-trafficking directive, as well as the 2012 directive establishing minimum standards of support to victims of crime. Sweden has allocated millions of dollars in anti-trafficking funds in recent years, including in grants to international organizations such as UNICEF and the International Organization for Migration. The Government of the United Kingdom has committed to increase anti-trafficking engagement in select countries around the world and will build on current anti-trafficking programming including “Work in Freedom” – a five-year, approximately $15 million initiative implemented by the ILO to prevent trafficking for labor exploitation of 100,000 women and girls in South Asia by targeting known routes used for the trafficking of migrant workers from South Asia to the Gulf States.

In December, with U.S. support, the Organization for Security and Co-operation in Europe (OSCE) launched its Handbook on Preventing Domestic Servitude in Diplomatic Households, which is relevant for all international organizations and reaches beyond the OSCE region. Also in December of last year, member states of the Organization of American States revised the organization’s Work Plan to Combat Trafficking in Persons in the Western Hemisphere for the 2015-2018 timeframe. The revised, robust plan includes awareness training for diplomatic personnel, protections against trafficking in government procurement of goods and services, greater oversight of recruitment and placement agencies, and inclusion of trafficking survivors’ input in the development of victim assistance policies and programs.

Civilian security and human rights are closely interwoven, and promoting security is often a key means of supporting human rights. Crises increase vulnerabilities to trafficking, as people are displaced, lose income sources and community support systems, and seek physical and economic security for themselves and their families. The breakdown of social and government structures leaves populations defenseless as protections are reduced and options for recourse disappear. In the fight against human trafficking, the State Department looks at the challenge from a holistic foreign policy perspective. We are increasingly mainstreaming anti-trafficking elements into other foreign assistance programs. Our anti-trafficking programs rely on broader U.S. supported reforms in rule of law, community security, and conflict prevention.

The reality is that conflicts and ineffective states give rise to trafficking and allow it to persist. We must address these underlying causes to win this fight. This is a critical component of the State Department and USAID’s work. The U.S. government works diligently to prevent and stabilize conflicts, and, where it cannot, to help refugees and the internally displaced. These activities complement our strategic efforts in fighting human trafficking. Where the United States, foreign partners, and civil society can help address state weakness, we provide a more stable and effective platform for protecting citizens. Poor enforcement of labor laws, discrimination, corruption, and restrictions on freedom of association and on other human and labor rights leave people at risk of exploitation, including trafficking. The struggle against modern slavery is one of interconnected threats and opportunities. I am proud of the leading role the United States has played, with strong leadership from Congress, in elevating the global profile of this issue, helping free individuals from modern slavery, and galvanizing the work of others to join in to this critical effort. The road is long in our battle against human trafficking, but working with our global partners, the United States will not relent in our multipronged approach to combat this scourge. We welcome Congress’s interest and partnership in overcoming this global challenge.

Thank you and I look forward to your questions.

U.N. REPRESENTATIVE POWER'S REMARKS ON DARFUR VOTE

FROM:  U.S. STATE DEPARTMENT
Samantha Power
U.S. Permanent Representative to the United Nations
New York, NY
February 12, 2015
AS DELIVERED

Thank you. In November, this Council was confronted with reports of an alleged mass rape in Thabit – a town in North Darfur, Sudan. The UN peacekeeping mission in Darfur attempted to investigate, but was systematically denied meaningful access. The one time the peacekeepers were permitted to reach Thabit, Sudanese military and intelligence officials refused to let them interview alleged rape victims in private, and in some cases recorded the interviews. To this day, the Government of Sudan has shamefully denied the UN the ability to properly investigate this incident, despite this Council’s mandate for UNAMID to do precisely that.

Yesterday, a report released by Human Rights Watch alleged that at least 221 women and girls were raped in an organized attack on Thabit, over a period of thirty-six harrowing hours beginning on October 30, 2014. According to the report, Sudanese soldiers went door to door – looting, beating, and raping inhabitants. Over 50 current and former residents provided testimony corroborating the crimes, as did two reported army defectors who separately told Human Rights Watch that their superiors had ordered them to rape women. Because the Government of Sudan denied the UN a proper investigation, we have to rely on organizations such as Human Rights Watch to gather witness and perpetrator testimony and to shine a light on what happened.

One woman told Human Rights Watch that soldiers entered her home and said, “You killed our man. We are going to show you true hell.” Then, she said, “They started beating us. They raped my three daughters and me. Some of them were holding the girl down while another one was raping her. They did it one by one.” Two of her daughters were younger than 11-years-old, she said. Many of the witnesses interviewed told Human Rights Watch that government officials had threatened to kill them if they told anybody what happened.

Nearly ten years after the Security Council first adopted Resolution 1591 with the aim of protecting civilians in Darfur and stopping the violence there, the horror of Thabit is just one attack, in one place, out of too many to count.

In 2014 alone, more than 450,000 additional people were displaced in Darfur – the highest number of new IDPs in any year since 2004 – adding to the approximately two million people already displaced. In the first six weeks of this year, humanitarian organizations estimate an additional 36,000 people have been driven from their homes in North Darfur State.

People living in areas afflicted by violence are in desperate need of humanitarian aid, yet obstruction, harassment, and direct attacks by the Sudanese government have made them increasingly hard to reach. Two weeks ago, Medecins Sans Frontieres shut down its operations in three states in Sudan – including two in Darfur – citing the “government’s systematic denial of access” to communities in the greatest need.

In one example MSF cited, the Government of Sudan prevented its emergency workers from traveling to the IDP camp in El Sereif, in Darfur, where the organization said residents did not have enough drinking water to survive. MSF also suspended operations in South Kordofan State, where its hospital was bombed by a Sudanese Air Force jet.

Today we renewed the mandate of an important UN panel that monitors the sanctions imposed by this Council – sanctions the government of Sudan continues to flout. The government and armed groups it supports routinely violate the arms embargo – a fact that they openly acknowledge. They continue to launch deliberate attacks on civilians, as well as on UNAMID peacekeepers; between December 2013 to April 2014 alone, 3,324 villages were destroyed in Darfur, according to the Panel of Experts. And the Sudanese government continues to allow individuals subject to sanctions to travel and access their finances.

Today we renewed a sanctions monitoring panel that has provided thorough, independent monitoring of the Government of Sudan and other armed groups in Darfur, with a resolution that is more forward-leaning than its predecessors.

But even as we take this important step, we are reminded that the sanctions regime is impotent when the Sudanese government systematically violates it, and the Council cannot agree to impose sanctions on those responsible for the violence and the abuses.

Nonetheless, today’s resolution matters. It speaks to our deep concern with these ongoing violations, it presses the Government of Sudan to take the long-overdue steps necessary to protect the people of Darfur and stop the violence. For the first time, it condemns the violence perpetrated by the government-backed Rapid Support Forces, the heirs to the Janjaweed. And, for the first time, it urges the Sudanese government to account for the situation of civilian populations, who are suffering from devastating waves of attacks in North Darfur, like the reported mass rapes at Thabit.

Yet encouraging as it is to see some very modest improvements to today’s renewals resolution, the most important measure of our efforts will be our ability to alleviate the immeasurable suffering of the people of Darfur. And on that front, this Council – and the international community – has failed. Our complacency is deadly for the people of Darfur. So perhaps today, with a slightly more robust sanctions resolution, we can reignite this Council’s engagement on this continuing crisis.

People’s lives depend on it, and so too does the credibility of this Council – because our ability to promote international peace and security depends on our ability to keep our word, and implement the measures that we impose. And we need to do it because for every Thabit we know about, there are so many more villages that have been the victims of unspeakable atrocities over the past decade in Darfur. They demand we find a way to stop this, and we must.

Thank you.

AMBASSADOR SEPULVEDA ON TRADE PROMOTION AND OPEN INTERNET FIGHT

FROM:  U.S. STATE DEPARTMENT
Trade Promotion and the Fight to Preserve the Open Internet
Remarks
Ambassador Daniel A. Sepulveda
Deputy Assistant Secretary and U.S. Coordinator for International Communications and Information Policy, Bureau of Economic and Business Affairs
U.S. Chamber of Commerce and Association of American Chambers of Commerce in Latin America
Los Angeles, CA

February 11, 2015

Three billion people are connected to the Internet today. And trillions of devices are set to join them in the Internet of Things. Together, the connectivity of people and machines is enabling economic and social development around the world on a revolutionary scale.

But it will take open markets, the cooperation of leaders around the world, the participation of a vibrant and diverse range of stakeholders, and strong trade agreements, with language preserving the free flow of information, to protect the Internet’s potential as the world’s engine for future growth, both at home and abroad.

As the number of Internet users worldwide has ballooned from 2 to 3 billion, the increase in Internet use creates significant economic potential. The Obama Administration is working to unlock the promise of e-commerce, keep the Internet free and open, promote competitive access for telecommunications suppliers, and set digital trade rules-of-the-road by negotiating new trade agreements. Trade Promotion Authority legislation and the pending trade agreements we expect Congress to consider over the coming months and years will provide that kind of protection. These agreements aim to ensure that the free flow of information and data are the default setting for nations. This will preserve the architecture that has empowered the Internet and global communications to fuel economic growth at home and abroad. It is in our interest, across parties and ideology, to ensure we move forward and approve TPA and the pending agreements for many reasons, but promoting the preservation and growth of global communications and the open Internet is one of the strongest.

Senator Ron Wyden, the ranking member on the Senate Finance Committee, has made the argument well, stating, "America’s trade negotiating objectives must reflect the fact that the Internet represents the shipping lane for 21st Century goods and services… Trade in digital goods and services is growing and driving economic growth and job creation all around the country. U.S digital exports are beating imports by large margins, but outdated trade rules threaten this growth by providing opportunities for protectionist policies overseas. The U.S. has the opportunity to establish new trade rules that preserve the Internet as a platform to share ideas and for expanding commerce..."

Senator Wyden is absolutely correct. Our pending agreements with nations in the Pacific community will establish rules for the preservation of those virtual shipping lanes as enablers of the transport of services and ideas, allowing startups and the voices of everyday people to challenge incumbent power in markets and ideas.

If we are successful, the partnership of nations across the Trans-Pacific Partnership and Trans-Atlantic Trade and Investment Partnership regions coming behind agreements to preserve the free flow of information will serve as a powerful counterweight to authoritarian governments around the globe that have demonstrated a clear willingness to interfere with open markets and an open Internet. And make no mistake about it, if we do not seize every opportunity at our disposal to win commitments to an open, global Internet, we risk letting others set the rules of the road.

Authoritarian regimes view the Internet’s openness as a threatening and destabilizing influence. The Russian government, just last month, pressured social media companies to block access to pages used to organize peaceful political protests. In China, authorities have blocked Gmail and Google’s search engine. In addition to ongoing and systematic efforts to control content and punish Chinese citizens who run afoul of political sensitivities, such measures are an effort to further diminish the Chinese people’s access to information, while effectively favoring Chinese Internet companies by blocking other providers from accessing its market. And we know they are urging others to take similar action. These trade barriers harm commerce and slow economic growth, and they produce socially oppressive policies that inhibit freedom.

The rules of the road for commerce, and Internet-enabled trade and e-commerce, are up for grabs in Asia. We’re working harder than ever to bring home trade agreements that will unlock opportunities by eliminating barriers to U.S. exports, trade, and investment while raising labor, environment, and other important standards across the board. Right now, China and others are negotiating their own trade agreements and seeking to influence the rules of commerce in the region and beyond. These trade agreements fail to meet the high standards that we strive for in our free trade agreements, including protection for workers’ rights and the environment. And they don’t protect intellectual property rights or maintain a free and open Internet. This will put our workers and our businesses at a disadvantage.

We know that both old and new American businesses, small and large alike, are dependent on the global Internet as the enabler of access to previously unreachable consumers. In the U.S. alone, American Internet companies and their global community of users contribute over $141 billion in annual revenue to the overall U.S. GDP, simultaneously employing 6.6 million people. And the Internet is not simply about the World Wide Web, it is the communications platform for managing global supply chains, distributing services, and acquiring the market information necessary to succeed anywhere.

Many countries no longer primarily produce products. Rather, businesses produce product components and provide services, many of which are delivered digitally. In order to remain competitive globally and promote the capacity of businesses to innovate, the United States and our partners in the Western Hemisphere must build the Americas into a shared, digitally connected, integrated platform for global success. By working with our trade partners in Latin America and Asia to conclude the Trans-Pacific Partnership we are advancing this vision and making it a reality. We will set the standards with twenty-first century trade agreements.

We know that not everyone is convinced of the merits of open markets. And to win their hearts and minds, we have to demonstrate and communicate how these two values – open markets and the open Internet - are interconnected. And we have to show that Trade Promotion Authority and our agreements embrace the values that underpin the Internet today.

As Ambassador Froman has said, “Trade, done right, is part of the solution, not part of the problem.” And, because it is true, our progressive friends should recognize that the fight for open markets is the position most consistent with our progressive tradition and values.

It was Woodrow Wilson who said, “The program of the world's peace, therefore, is our program; and that program, the only possible program, as we see it, is this” and he listed his fourteen points. Among them was number three: “The removal, so far as possible, of all economic barriers and the establishment of an equality of trade conditions among all the nations consenting to the peace and associating themselves for its maintenance.”

It was Franklin Roosevelt who asked the New Deal Congress for the first grant of trade negotiating authority.

In his remarks at the signing of the Trade Expansion Act of 1962, it was JFK who said, “Increased economic activity resulting from increased trade will provide more job opportunities for our workers. Our industry, our agriculture, our mining will benefit from increased export opportunities as other nations agree to lower their tariffs. Increased exports and imports will benefit our ports, steamship lines, and airlines as they handle an increased amount of trade. Lowering of our tariffs will provide an increased flow of goods for our American consumers. Our industries will be stimulated by increased export opportunities and by freer competition with the industries of other nations for an even greater effort to develop an efficient, economic, and productive system. The results can bring a dynamic new era of growth.”

And it is consistent with the sentiments of these giants in our tradition, our progressive tradition, that President Obama most recently stated, “Twenty-first century businesses, including small businesses, need to sell more American products overseas. Today, our businesses export more than ever, and exporters tend to pay their workers higher wages. But as we speak, China wants to write the rules for the world’s fastest-growing region. That would put our workers and our businesses at a disadvantage. Why would we let that happen? We should write those rules. We should level the playing field. That’s why I’m asking both parties to give me trade promotion authority to protect American workers, with strong new trade deals from Asia to Europe that aren’t just free, but are also fair. It’s the right thing to do.”

Friends, we have both a political and economic interest in promoting open markets and an open Internet. Preservation of these ideals is and should remain a bipartisan, and broadly held goal. It is critical to our future and contained within the language we are asking Congress to approve.

VALENTINE'S DAY EXPORTS

FROM:  U.S. IMPORT-EXPORT BANK
Made-in-New York (Valentine Edition): Small Business Love & Quiches Exports Delicious Desserts Around the Globe
Company Was Able to Add 25 Jobs Thanks to Export-Import Bank Support

Washington, D.C. – Thanks to financing extended by the Export-Import Bank of the U.S. (Ex-Im Bank) - and with apologies to ‘60s British Invasion band The Troggs - Love & Quiches is all around.

Started in Susan Axelrod's kitchen in 1973, Love & Quiches sells quiches and desserts to customers all around the world, particularly in the Middle East and Asia. The business outgrew the kitchen, a garage, a local storefront, and its first factory, and now operates out of a state-of-the-art manufacturing facility in Freeport, N.Y. With private export financing options unavailable, in 2005 Love & Quiches found its perfect match with Ex-Im Bank—and they’ve been together ever since.

“Ex-Im Bank stands ready to support even more New York small businesses like Love & Quiches as they add jobs at home by increasing sales overseas,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “In FY 2014 alone, Ex-Im Bank supported $574.4 million in New York small business exports, which accounts for 45 percent of Ex-Im supported exports from the state.”      

Like many small businesses, Love & Quiches relies upon lines of credit and other forms of working capital to finance and grow its business. Ex-Im Bank's small business Export Credit Insurance, backed by the U.S. government, provided the reassurance needed for Wells Fargo Bank to embrace Love & Quiches, advancing funds against the company's foreign receivables and improving its cash flow.

“None of our export business would have been possible without our longstanding partnership with Ex-Im Bank, and we are honored to have received the Ex-Im Bank Small Business Exporter of the Year 2014 Award,” said Susan Axelrod, chairwoman and founder.

Love & Quiches’ export volume increases year after year as the company continues to expand globally. Exports are approaching almost 25 percent of the company’s total volume, and as a result Love & Quiches has added approximately 25 production jobs to their employee roll. The company is flirting with even greater expansion, targeting a 10 percent increase in export sales for FY 2015.

Friday, February 13, 2015

U.S. CONGRATULATES PEOPLE OF SERBIA ON THEIR STATEHOOD ANNIVERSARY

FROM:  U.S. STATE DEPARTMENT
On the Occasion of Serbia's National Day
Press Statement
John Kerry
Secretary of State
Washington, DC
February 13, 2015

On behalf of President Obama and the people of the United States, I congratulate the government and people of Serbia on the anniversary of your statehood.

Today, so different from the tragic and difficult period of the 1990s, our countries work together to strengthen and spread the ideals of democracy, human rights, and rule of law.

We applaud Serbia’s commitment to countering terrorism and violent extremism as part of the anti-ISIL coalition.

The United States looks forward to working with Serbia in its role as Chair of the Organization for Security and Cooperation in Europe.

We are committed to supporting Serbia’s full integration into European institutions. The EU-facilitated Dialogue with Kosovo remains an important part of this effort.

On this joyous occasion, I congratulate all Serbians on your Statehood Day.

WHITE HOUSE VIDEO: WEST WING WEEK: 02/13/15

ASHTON CARTER CONFIRMED AS NEW U.S. DEFENSE SECRETARY

FROM:  U.S DEFENSE DEPARTMENT 
'He'll Help Keep Our Military Strong,’ President Says
DoD News, Defense Media Activity

WASHINGTON, Feb. 12, 2015 – Ash Carter, a former deputy defense secretary who today received a 93-5 affirmative vote by the U.S. Senate to succeed Chuck Hagel as defense secretary, received a welcome back and praise from President Barack Obama.
“Ash Carter served as a key leader of our national security team in the first years of my presidency, and with his overwhelming bipartisan confirmation by the Senate today, I’m proud to welcome him back as our next secretary of defense,” Obama said in a White House statement issued today. “With his decades of experience, Ash will help keep our military strong as we continue the fight against terrorist networks, modernize our alliances, and invest in new capabilities to keep our armed forces prepared for long-term threats.”
As secretary of defense, the president continued, “Ash will play a central role in our work with Congress to find a more responsible approach to defense spending that makes the department more efficient, preserves military readiness, and keeps faith with our men and women in uniform and their families.
“We have the strongest military in the history of the world,” Obama added, “and with Secretary Carter at the Pentagon and our troops serving bravely around the world, we’re going to keep it that way.”
Hagel will remain in office as defense secretary until Carter is sworn in.

NASA VIDEO: U.S. COMMERCIAL CARGO SHIP LEAVES ISS, SPACE EXPLORATION, SCIENCE, RESERCH

DOD REPORT ON AIRSTRIKES IN SYRIA, IRAQ

FROM:  U.S. DEFENSE DEPARTMENT
Airstrikes Continue Against ISIL Targets in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release

SOUTHWEST ASIA, Feb. 12, 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

Fighter aircraft conducted three airstrikes in Syria:
-- Near Hasakah, an airstrike struck multiple ISIL oil pump jacks.
-- Near Kobani, two airstrikes destroyed six ISIL fighting positions.

Airstrikes in Iraq

Fighter, attack, bomber and remotely piloted aircraft conducted 12 airstrikes in Iraq:
-- Near Asad, an airstrike struck an ISIL mortar position.

-- Near Kirkuk, three airstrikes struck an ISIL large tactical unit and an ISIL tactical unit and destroyed three ISIL heavy machine guns, six ISIL buildings, an ISIL vehicle, a vehicle-borne improvised explosive device, an ISIL bulldozer and an ISIL trailer.

-- Near Mosul, four airstrikes struck an ISIL large tactical unit, an ISIL tactical unit and an ISIL staging area and destroyed two ISIL bulldozers, two ISIL vehicles, an ISIL armored vehicle, an ISIL building and an ISIL heavy machine gun.

-- Near Fallujah, two airstrikes struck ISIL earthen berms used to control water.

-- Near Makhmur, an airstrike struck an ISIL large tactical unit.

-- Near Tal Afar, an airstrike struck an ISIL large tactical unit.

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, officials said.

Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, the Netherlands and the United Kingdom. Coalition nations conducting airstrikes in Syria include the United States, Bahrain, Jordan, Saudi Arabia and the United Arab Emirates.

RICHARD HOAGLAND'S REMARKS AT ROUNDTABLE ON EAST-WEST CORRIDOR FOR TRADE & ECONOMIC COOPERATION

FROM:  U.S. STATE DEPARTMENT
Roundtable on East-West Transport Corridor for Trade and Economic Cooperation
Remarks
Richard E. Hoagland
Principal Deputy Assistant Secretary, Bureau of South and Central Asian Affairs
As Prepared
Embassy of Azerbaijan
Washington, DC
February 10, 2015

As we continue our discussion of regional trade and economic issues, I would first like to thank Ambassador Suleymanov for hosting today’s roundtable and for being such a gracious host.

It is a very timely discussion, and I want to use this opportunity to provide U.S. perspectives on how trade and transport are developing in the region. I will offer a few thoughts and then turn to my colleague Deputy Assistant Secretary Rubin for his perspective.

We recognize all the work countries in Central Asia and the Caucasus are doing to diversify trade routes across the Caspian Sea, through Turkey and into Europe.

But to expand the region’s potential as a trade corridor, countries in the region must work together to limit border delays and reduce transport costs. If we look solely at the World Bank’s Doing Business report to gauge the number of days and costs associated with importing and exporting containers of goods, we miss examples of how the region is changing to make trade and transport easier. I believe it is important to recognize those changes.

We see the construction and expansion of port facilities in Kazakhstan and Turkmenistan mirrored across the Caspian Sea in Azerbaijan. New rail lines linking Kazakhstan and Turkmenistan have come at the same time as the development of the Baku-Tbilisi-Kars railway.

We have seen the benefits of the rail line from Uzbekistan to Mazar-e Sharif in Afghanistan, and note the Asian Development Bank’s development of plans for a rail line from Turkmenistan, through Afghanistan, and toTajikistan with Mazar-e Sharif serving as the link in the middle. We have watched Kazakh wheat being exported not only south into Afghanistan, but also west across the Caspian along faster export routes.

We applaud additional efforts by countries in the region to enhance regional trade and transportation, and we encourage you to work more closely with your neighbors to diversify and expand the trade and transport routes that build economic growth throughout the region.

To advance regional connectivity, you have likely heard the Secretary highlight the importance of our New Silk Road initiative, a theme underscored in Assistant Secretary Biswal’s recent Wilson Center speech.

Through development of a regional energy network, better trade and transport links, streamlined customs and border procedures, and greater people-to-people and business-to-business ties, the New Silk Road initiative supports a more stable, secure and prosperous future for Afghanistan and its neighbors in Central and South Asia.

Through the Northern Distribution Network, we have seen inbound and outbound flows of goods to and from Afghanistan pass through Central Asia and the Caucasus. This experience provides the foundations for viable commercial corridors between Europe and Asia. Upgrading east-west linkages across the Caspian as well as north-south transit corridors from Central to South Asia facilitate trade across the region.

To expand these connections, the United States supports the Asian Development Bank-led Central Asia Regional Economic Cooperation (CAREC) Program, which aims to construct or renovate nearly 7,800 kilometers of roads and close to 3,800 kilometers of rail lines in the CAREC region by 2020. As a result of work already completed, we have seen the speed of transport increase and measurable progress in reducing the costs of crossing regional borders.

Through USAID assistance, our International Narcotics and Law Enforcement and Export Control and Related Border Security and programs, the customs working group under the U.S. - Central Asia Trade and Investment Framework Agreement and numerous other measures, the United States continues to pursue activities that lay the foundation for greater regional connections. Our support for Kazakhstan, Afghanistan and other countries seeking World Trade Organization membership represents the value we see in global trade standards. Cross-border cooperation among border and customs officials is an area where we need to concentrate our efforts in the future. We are aware of security concerns and we will continue to offer our support through joint training programs organized in the region or in the United States. At the same time, we need to see a stronger commitment from all governments in the region to implement streamlined standards that reduce time and costs at the borders. It can be done, but it takes political will.

We value the role of our partners in the region. As we focus on greater regional trade and economic cooperation, we should also recognize the important role the European Union plays in the region. Latvia, as the current chair of the EU presidency, has made deepening EU-Central Asian ties a top priority. We recognize the value of additional steps, such as the Enhanced Partnership and Cooperation Agreement initialed in Brussels last month between Kazakhstan and the EU, to broaden Central Asia’s links with its western neighbors.

The extension of the EU’s Border Management Program in Central Asia coincides with our own bilateral efforts to streamline and improve border and customs practices as well as our collective efforts through the Asian Development Bank CAREC program I mentioned earlier. All these efforts increase the opportunities for expanded and diversified trade flows in the region.

Although we are discussing Central Asia’s trade and transport links across the Caucasus and Turkey into Europe, I should also mention two other countries that are active in Central Asia. Through its own Silk Road Economic Belt, we see China seeking to develop infrastructure and trade links that we agree can complement our efforts and those of the international community in the interest of a more secure, stable and prosperous future for the region.

Russia has historical ties to Central Asia. Unfortunately, Russia’s actions in Ukraine have not contributed to a more secure, stable and prosperous future for anyone. With Russia’s economy on the cusp of recession, today’s interconnected world means that problems in Russia impact its economic partners.

We know that Russia will continue to be a major economic force in the region. At the same time, Central Asian states are best placed to decide for themselves how to further their economic development, expand their trade ties, and deepen their integration with global markets.

The expansion of the Eurasian Economic Union, for example, should not come at the expense of the ability of countries in the region to fulfill their existing international commitments, including commitments to the World Trade Organization, nor should it restrict their ability to enter into other bilateral or multilateral trade relationships.

I want to reiterate the importance of countries in the region taking steps to diversify and expand their trade and commercial outlooks. Key events in just the past two months have signaled the interest of Central Asian states to reshape their economic futures.

In December, senior officials from Afghanistan, Pakistan, Tajikistan, and the Kyrgyz Republic met in Istanbul to complete price agreements for the sale of Central Asian hydropower to sustain economic growth in Afghanistan and Pakistan – creating a sustainable regional energy market. In January, officials from Afghanistan, Pakistan and Tajikistan agreed to take steps to remove trade and transit barriers to allow the freer flow of goods across the region. Later this month, under the Heart of Asia Istanbul Process, regional countries will gather in Ashgabat to discuss regional infrastructure issues.

Looking at the countries of Central Asia, the United States will continue to support efforts for greater regional economic connectivity. Today’s focus on Central Asia’s links to the Caspian, the Caucasus, Turkey, Europe and beyond is important for not only the United States, but - more importantly - for the future of the countries in the region.

At this point, I would like to turn to my colleague, Deputy Assistant Secretary Eric Rubin, for additional insights and perspectives on trade and economic cooperation issues in the region.

AG HOLDER'S REMARKS AT MEDAL OF VALOR CEREMONY

FROM:  U.S. JUSTICE DEPARTMENT
Attorney General Holder Delivers Remarks at Medal of Valor Ceremony
Washington, DCUnited States ~ Wednesday, February 11, 2015
Remarks as prepared for delivery

Thank you, Karol [Mason], for those kind words – and for your outstanding leadership as Assistant Attorney General for the Office of Justice Programs.  I want to thank Vice President [Joe] Biden for hosting today’s ceremony here at the White House; for his career spent in the service of this nation; and for his lifetime of unwavering support for the brave men and women who are entrusted with our safety.

And I’d like to extend a special welcome to all of the family members of our courageous Medal of Valor recipients who are here with us today.

Your love, your support, and your sacrifices, are deeply felt – not only by your loved ones, who serve on the front lines of our fight for public safety – but by all those in our nation whose lives are made better, safer, and brighter through their service.  Each and every one of you has been an essential part of everything that our awardees have accomplished.  And you share in the recognitions that we are about to bestow.

It is a great pleasure to join all of you, along with Karol, BJA Director Denise O’Donnell, and Deputy Attorney General Sally Yates, in celebrating this auspicious occasion.  And it’s a tremendous honor to stand among so many valued colleagues, distinguished public safety officers, and true American heroes – as we recognize the remarkable contributions of a courageous few; as we call attention to their inspiring individual efforts and collective accomplishments; and as we express our abiding thanks and deep appreciation for their bravery, their commitment, and their many sacrifices in the line of duty.

Every day, the American people call upon our public safety officials to respond to emergencies, to protect our loved ones, and to safeguard our nation against unrelenting challenges and evolving threats.  Every day, we rely on these men and women to do the difficult and often dangerous work of protecting all that we hold dear – often without expressing the gratitude, and the respect, they so richly deserve.

And every day, these remarkable individuals answer our call without hesitation.  They patrol neighborhoods defined by distress and distrust.  They investigate crimes and assist victims.  And they keep our communities, our homes, and our most vulnerable citizens safe from harm.

As the brother of a retired police officer, I know in a personal way how courageous these public servants are.  I have seen the tremendous and often-unheralded sacrifices that they and their families are regularly called upon to make.  And I have felt both the pride of seeing a loved one in uniform and the anguish of knowing they may be in harm’s way – patrolling the streets, where every seemingly-routine encounter has the potential to take an unexpected turn.

These are all exceptional individuals.  Every one of them deserves our deepest gratitude and boundless respect.  Yet even among the outstanding field of public servants who perform these critical responsibilities, day in and day out – in communities across the country – there are some who stand out.  And today, with these prestigious medals, we recognize these exceptional few for extraordinary valor – above and beyond the call of duty.

Among our honorees this morning are two officers who responded to the tragic, hate-motivated shooting at a Sikh temple in Oak Creek, Wisconsin; seven agents who engaged dangerous suspects in Watertown, Massachusetts, following the bombing of the Boston Marathon; and five FBI agents who risked their lives in the heroic rescue of a 5-year-old child in a perilous hostage situation in Midland City, Alabama.

One officer’s quick thinking and brave actions saved the life of a woman who had been abducted and viciously assaulted by an estranged boyfriend.  One firefighter’s resilience and ingenuity were essential in rescuing an elderly woman from a house fire – an act of daring, undertaken at great personal risk.  One off-duty agent lost his life when he courageously confronted an armed felon who was attempting to rob a pharmacy.  And one off-duty officer’s bravery undoubtedly saved lives – while working at a local grocery store – when he intervened during another armed robbery, protecting customers and employees before being fatally wounded.

Some of the individuals we gather to honor saved the lives of their fellow officers.  Some put their lives on the line to safeguard civilians and bystanders.   And some gave what President Abraham Lincoln once called that “last full measure of devotion” in the performance of their duties, in defense of their fellow Americans, and in the service of their nation.

Each of these officers embodies the very best of what it means to be a public servant.  And each of these award citations serves as a stirring testament – and a fitting reminder, at a time when this country is grappling with deep challenges involving public safety, law enforcement, and community engagement – that the work being done by those who guard our neighborhoods and protect our nation is exceptional, essential, and extraordinary.  I am honored, and humbled, to call you partners and colleagues in the service of this country and the protection of its citizens.

And that’s why I – and my colleagues at every level of the Justice Department – have been proud to stand shoulder-to-shoulder with you over the last six years.

Beyond these honors, America owes you a debt that must be repaid not with words, but with actions.  So I’m here today not just to pay tribute to some of our most remarkable officers – and to say “thank you,” on behalf of a grateful nation, for all that you do – but to pledge my strong and unwavering support as you and your colleagues continue to carry out your vital mission.

This is a commitment that the Obama Administration has maintained since the moment we took office – from our COPS Hiring Program grants to invest in community policing and keep more officers on the streets, to the VALOR Initiative I launched in 2010 to help prevent violence against law enforcement and increase officer resilience and survivability; from our Bulletproof Vest Partnership Program, which has helped purchase over one million protective vests since its inception, to the Byrne Justice Assistance Grants, which allowed us to provide support to every state and territory, and more than a thousand local jurisdictions, last year alone.

As we speak, my colleagues and I are also working tirelessly to empower our officers to do their jobs as safely and effectively as possible – by working with law enforcement and community leaders to address tensions wherever they have been exposed.

Over the last few months, President Obama and I have announced a variety of proposals that will enable us to bridge these divides wherever they are found – from a National Initiative for Building Community Trust and Justice, to a historic new Task Force on 21st Century Policing – which will provide strong, national direction to the profession as a whole, on a scale not seen since the Johnson Administration.  And I have been proud to travel across the country to engage directly with brave law enforcement leaders and concerned citizens in order to advance this work.

After all, we owe it to our courageous public safety officials to confront every threat they may face, to foster the trust that lies at the core of their efforts, and to honor all that they do to defend this nation and safeguard its people.  So my pledge to you – here and now – is that the Justice Department’s commitment to this work will only grow stronger in the days ahead.

Under the leadership of our outstanding Attorney General-nominee, Loretta Lynch – who has been a lifelong supporter of law enforcement – the department will continue to stand with you, to fight for you, and to fulfill our sacred obligations to America’s finest.  Wherever my individual path may take me in the months ahead, my personal commitment to this work will never waver.  The bravery of those we honor today will never be forgotten.  And the contributions of those we have lost will live on – in the work they did; in the lives they saved; and in the examples of valor and selflessness they set for generations to come.

I want to thank each of our Medal of Valor recipients, once again, for your extraordinary service.  I am honored to stand with you in fulfilling the moral charge – and the enduring obligation – we share: to build the more perfect Union that our founders imagined, to create the more just society that all Americans deserve, and to make real the brighter future that you have all worked to create.

At this time, it is my great privilege to introduce another leader who has done much to advance this cause – a tireless public servant who has been a champion of law enforcement throughout his life and career.  Ladies and gentlemen, the Vice President of the United States – Joe Biden.

POSTAL SERVICE CONTRACTING OFFICER INDICTED FOR ALLEGED ROLL IN BRIBERY AND KICKBACK SCHEME

FROM:   U.S. JUSTICE DEPARTMENT
Wednesday, February 11, 2015
Former Contracting Officer and Contractor Charged with Bribery Scheme in Connection with Awarding of U.S. Postal Service Contracts

A former U.S. Postal Service contracting officer, along with a mail delivery contractor, were indicted today for engaging in a scheme to defraud the Postal Service through bribery and kickbacks in connection with the awarding of contracts to deliver the mail.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland and Inspector General David C. Williams of the U.S. Postal Service made the announcement.

Gregory Cooper, 59, of Glenn Dale, Maryland, a former U.S. Postal Service Contracting Officer Representative and Purchasing and Supply Management Specialist, and Barbara Murphy, 51, of Rocky Mount, North Carolina, the owner and operator of MC&G Trucking LLC and ER&R Transportation, were charged today in a ten-count indictment unsealed in the District of Maryland.  Both Cooper and Murphy are charged with one count of conspiracy and five counts of honest services wire fraud, and each is separately charged in a single count of bribery.  Cooper is also charged with one count of executing a false document and one count of making false statements.

According to the indictment, from January 2011 through July 2012, Cooper allegedly solicited and accepted bribes and kickbacks from Murphy in exchange for helping her win contracts for delivery of the mail.  Specifically, the indictment alleges that Cooper accepted, among other things, cash deposits into his checking account, payments against his car loan and cell phone bills and a college tuition payment on behalf of his daughter.  In exchange, Cooper allegedly assumed the responsibility for reviewing the contracts on which Murphy bid from his subordinates, recommended that Murphy be awarded nine Postal Service contracts worth $1.5 million, provided Murphy with confidential bid information and assumed direct oversight over Murphy’s contracts from his subordinates.  The indictment further alleges that Cooper made false statements to investigators regarding his allegedly corrupt relationship with Murphy and executed a false financial disclosure document failing to disclose the bribes he had accepted from Murphy.

The charges and allegations contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.

This case was investigated by the U.S. Postal Service Office of the Inspector General.  The case is being prosecuted by Trial Attorneys Maria Lerner and Mark Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Arun Rao of the District of Maryland.  

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