STATE DEPARTMENT REMARKS ON BUSINESS OPPORTUNITIES IN EUROPE

FROM:  U.S. STATE DEPARTMENT
Business Opportunities in Europe Post-Crisis
Remarks Deborah A. McCarthy
Principal Deputy Assistant Secretary, Bureau of Economic and Business Affairs22nd Global Summit of Women
Athens, Greece
June 1, 2012
Introduction
Thank you. I am honored to be a part of the 22nd Global Summit of Women, and I am especially pleased that conference organizers chose Athens as the location for this year’s summit.

According to the OECD’s latest Economic Outlook, the global economy is gradually gaining momentum, but the recovery is fragile, extremely uneven across different regions, and could be derailed by what nearly every global outlook will tell you – the eurozone remains the single biggest downside risk facing the global outlook.
With slow growth, high unemployment and limited room for maneuver regarding macroeconomic policy space, structural reforms are key means to spur growth and boost confidence.

Recently, World Bank President Robert Zoellick said, “All countries need to focus on the structural reforms – the microeconomic policies – that will drive future growth.”
Such changes are essential to enhancing productivity, competition and innovation – whether it’s so that Europe can regain its economic performance, or China can avoid the so-called “middle income trap.”

Nevertheless, the mixture of low growth, aging populations, structural inefficiencies, and high government debt load is giving policymakers difficult choices to make to try to balance fiscal restraint with growth-enhancing measures.

Finding a careful balance between spending cuts and revenue increases is critically important. The reform agenda must also be specifically targeted at supporting employment, reducing inequalities and protecting the weakest segments of the population.

My country is not immune to this dilemma. We too face the same choices.
I have been asked to speak about post-crisis Europe but it is difficult to speak about “post-crisis” Europe when we remain very much in an emergency response mode. Thus, I’d like to discuss some trends apparent in Europe, which will need resolution for the crisis to end.

Economic Trends: Europe and Global
A stable, growing European economy is essential for a thriving global economy.
Europe has taken significant steps to manage its financial crisis, but there is more work to be done.

Business confidence has continued to deteriorate in the eurozone. Confidence in the financial sector is also eroding. Government debt sustainability is one concern that is pulling down market and investor confidence in the region.

Recent Eurostat figures illustrate some of the other underlying issues. In the first quarter of 2012, overall GDP growth in the euro area was flat at zero percent. That aggregate figure masks a widening divergence in performance across the 17 countries in the eurozone.
Germany boasted growth of 0.5 percent while the others such as Portugal, Spain and Italy, all posted negative growth figures.

Some have called Germany “Europe’s engine for growth,” but it is not the only one. Baltic and Nordic countries report strong economic growth. Turkey and Poland also have positive GDP forecasts.

Within the eurozone itself, imbalances make it hard for less competitive countries to keep pace with the more competitive ones. This is one of the reasons why Spain, Italy, Greece, and others have struggled in recent years. Economic, fiscal, and financial imbalances within the eurozone have become even more pronounced since 2010. Recovery in the same countries has not been sufficient to pull other s with it.

Job creation is expected by the IMF and other forecasters to remain “sluggish” in 2012. This can create a vicious cycle, as the unemployed will need more income support and retraining or skills development assistance, resulting in a further drag on already limited government resources.

Interestingly, Spain has the highest unemployment rate in Europe at 24.1 percent and the highest unemployment rate among youth age 15-24 at an astonishing 51 percent. Spain also had the highest proportion of early leavers from education and training at 28 percent.

Of additional concern is the deleveraging of banks in Europe. In an effort to improve their balance sheets, many banks have restricted lending. By tightening access to credit, entrepreneurs and small-to-medium enterprises have fewer options for financing. This, in turn, further stymies growth prospects.

All of these elements feed into the ongoing debate about austerity versus growth. We continue to believe it is not an “either/or” discussion, but rather should be about a balanced approach.

There is an emerging consensus that more must be done to promote growth and job creation. There was a deep and productive discussion of this at the recent G8 Summit we hosted. Focus has returned on a key element of any sustainable solution – growth – needs to be balanced with fiscal consolidation efforts.

The challenges to economic growth, including in the U.S., have brought a fundamental shift in priorities for U.S. foreign policy. Economic issues, economic power is just as important as political and military power. What happens in board rooms, what happens in key negotiations is just as important as defense discussions. We call this job diplomacy. It is about using the tools of diplomacy abroad to support trade and the rights of investors, leverage the strengths and expertise of the private sector in our economic engagement overseas and use diplomacy and our overseas presence to grow our economy at home and foster development and opportunity abroad, most particularly for women.
The Secretary has directed that we incorporate gender issues in every initiative, every program of the U.S. across the globe with emphasis on support for entrepreneurship, recognizing that small-to-medium sized enterprises are a vital element of any economy. Here in Greece, the strength and vitality emerging from women and women business leaders will play a critical role in Greece’s economic recovery.

We view women’s participation in the economy as critical to a free and prosperous society, and we make it a part of our engagement with all countries.

Conclusion
Back in March, there was optimism that Europe had turned the corner and the crisis was near resolution. Unfortunately, recent events have again reminded of the fragility of our global economic recovery.

I hope we draw from the exchange of ideas at this Summit and focus on strengthening the fundamentals of the economy, invest in infrastructure, foster private-sector development, expand markets at home and abroad, and encourage new and “green” technology. We can each do our part to help make progress to upgrade our economies, especially focusing on key areas such as education, health, labor, taxes, innovation and better inclusion of women.
Thank you.

COORDINATION BETWEEN NUKE PLANT OPERATORS OK'D BY JUSTICE

Photo Credit:  Wikimedia.
FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, July 3, 2012
Department of Justice Will Not Challenge Proposed Collaboration of Nuclear Power Plant Operators

WASHINGTON – The Department of Justice today announced that it will not challenge a proposal by seven nuclear power plant operators to share resources and coordinate best practices and other operational activities through a proposed venture to be named the STARS Alliance LLC. The members of the proposed STARS Alliance each operate single nuclear electric generation plants of a similar design – pressurized water reactors – and vintage.

The department’s position was stated in a business review letter to counsel for the STARS Alliance, from Joseph Wayland, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.

STARS members propose to share best practices and resources such as personnel, parts and equipment, as well as coordinate contingency planning, including coordinated responses to new Nuclear Regulatory Commission requirements adopted in the aftermath of the nuclear disaster in Fukushima, Japan.  None of the proposed activities involve the procurement of goods and services or the sale or purchase of electric power.  Membership and participation in all of the activities of the proposed STARS joint venture is voluntary.

In issuing the letter, Acting Assistant Attorney General Wayland stated, “To the extent that the proposed cooperative activities increase efficiencies that result in lower costs, increased output or increased safety, the proposed conduct could have a procompetitive effect.”

The department noted that the cooperative activities STARS proposes to undertake should not have any adverse effect on competition.  STARS members would represent 13 of the 69 operating commercial nuclear pressurized water reactors in the United States and 13 of the 104 operating commercial nuclear reactors in the United States.  The STARS members, for the most part, are in separate geographic areas and do not compete against each other for the sale of electricity. In the two instances where members both have reactors in the same electricity transmission organization, the members’ nuclear units are not likely to have an impact on price.  The members will be prohibited from sharing competitively-sensitive pricing or marketing information.

The STARS Alliance participants are:  Union Electric Co., with its Callaway plant in Missouri; Arizona Public Service Co., with its Palo Verde plant in Arizona; Luminant Generation Company LLC, with its Comanche Peak plant in Texas; Pacific Gas and Electric Co., with its Diablo Canyon plant in California; Southern California Edison Co., with its San Onofre plant in California; STP Nuclear Operating Co., with its STP plant in Texas; and Wolf Creek Nuclear Operating Co., with its Wolf Creek plant in Kansas.

Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.

A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530.  After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the Business Review Procedure.

VIRTUAL STUDENT FOREIGN SERVICE eINTERNSHIPS

U.S. DEPARTMENT OF STATE
U.S. College Students Can Apply Now for Virtual Student Foreign Service eInternships
Media Note Office of the Spokesperson Washington, DC
July 3, 2012

In 2009, Secretary of State Hillary Rodham Clinton announced the Virtual Student Foreign Service (VSFS) program as part of the 21st Century Statecraft Initiative. VSFS enables smart, technologically savvy young people to work remotely from their schools, dorm rooms, and homes to support U.S. Department of State and U.S. Agency for International Development’s (USAID) domestic offices and overseas U.S. diplomatic posts. The VSFS program connects posts and offices interested in dynamic new forms of diplomatic engagement, with American students eager to understand and assist U.S. foreign policy goals.

The VSFS program has seen enormous growth since it was first announced. In Winter 2010 through Spring 2011, there were 54 VSFS projects and 91 eInternship positions available for students. In the 2011-2012 program, there were 121 projects with 209 positions available. For the 2012-2013 program, there are 177 projects total, with more than 313 eInternship spots open in a wide range of areas. The competitiveness of the program has only increased, however, and with last year’s applicant pool reaching well above 1,400, it is anticipated that the 2012-2013 VSFS eInternship program will be more selective than ever. This year, accepted students will assist posts and offices in countries all around the world with research, coding, graphic design, video creation and editing, statistical analysis, and social media outreach projects. Selected students could be assisting research on women's empowerment in the food security sector in Zimbabwe, connecting with Russian or Malaysian students to help them succeed in the American educational system, or fighting for press freedom by keeping track of violence against journalists.

Because they work remotely, students who may not have been able to take on a physical internship because of financial or time constraints can still participate. The eInternships last nine months, and typically require ten hours of work per week, though the time commitment may vary depending on post or project. U.S. citizen college students interested in applying for a VSFS eInternship position for the Fall 2012 through Spring 2013 academic year may apply on USA Jobsstarting July 2 and ending on July 20. Students can view the projects and learn more about the program at:www.state.gov/vsfs and http://www.facebook.com/usdos.vsfs. VSFS eInternship applications for the 2012-2013 program are available on www.usajobs.gov from July 2 to July 20. The vacancy announcement can be found through this direct link.

NATO SECRETARY GENERAL ADDRESSES NATO ROLE IN SYRIA AND AFGHANISTAN

Photo:  Secretary General Anders Fogh Rasmussen.  Credit:  U.S. DOD.
FROM:  AMERICAN FORCES PRESS SERVICE
NATO Chief Discusses Alliance Role in Syria, Afghanistan
By Cheryl Pellerin
WASHINGTON, July 3, 2012 - NATO's core business is security, Secretary General Anders Fogh Rasmussen told reporters in Brussels yesterday as he outlined the role of the alliance and the international community in Syria and Afghanistan.

"NATO is where North America and Europe come together every day to discuss the security issues which concern us," Rasmussen said, "and NATO is where Europe and North America work together every day to find solutions.
"
In NATO, any ally can bring any issue to the table at any time, he added, referring to the meeting of NATO allies called by Turkey after a June 22 shootdown by Syrian forces of a Turkish F-4 fighter and its two-member crew.

"We condemn Syria's shooting down of the Turkish aircraft in the strongest possible terms, and we condemn the escalating spiral of killing, destruction and human rights abuses in Syria," Rasmussen said.

"The right response to this crisis remains a political response," he added, "and a concerted response by the international community against a regime that has lost all humanity and all legitimacy."

Last week Kofi Annan, the Joint Special Envoy for Syria, announced a June 30 meeting of the Action Group for Syria in Geneva. There, according to the United Nations, the international group forged an agreement outlining steps for a peaceful transition in Syria while strongly condemning the continued and escalating violence that has taken place there over the past 16 months.

The group also called for all parties to immediately recommit to a sustained halt of armed violence, to fully cooperate with observers serving with the U.N. supervision mission in Syria, and to implement a six-point peace plan that Annan put forward earlier this year.
The U.N. estimates that more than 10,000 people, mostly civilians, have been killed in Syria and tens of thousands displaced since the uprising began.
Rasmussen said he welcomed the action group meeting.

"The international community has come together [and] ... clearly endorsed a plan for a democratic transition to end the violence and answer the legitimate aspirations of the people of Syria," the secretary general added.

To enforce the political plan, he said, every member of the international community should use its influence to bring an end to the bloodshed and move Syria forward.

"This conflict has already gone on for too long," Rasmussen noted. "It has cost too many lives and put the stability of the whole region at risk. The international community has a duty to put an end to it -- and to do it now."

NATO is at work on another sort of transition in Afghanistan, he said: to put the security of Afghanistan in the hands of the Afghans.

"As we speak," the secretary general added, "half the Afghan population lives in areas where their own forces are in the lead for providing security. And over the coming weeks and months, that protection will extend to three quarters of the population."

But security is just one challenge in Afghanistan, and NATO is just one part of the solution, he said. In the bigger picture of Afghanistan's security future, Rasmussen added, development and good governance must come together, and the international community and the Afghan people are putting the pieces in place.
"Over the last few months, we have built a strong framework of partnership and mutual responsibility on which Afghanistan can rely as it stands on its own two feet," he said.
In Chicago in May, decisions at the NATO summit sent a clear message that after 2014, NATO's mission will be to train, advise and assist the Afghan security forces, Rasmussen added.

At a conference in the Afghan capital of Kabul in June, the message was one of regional responsibility for the countries of Central Asia and their neighbors to support Afghanistan well into the next decade, he said.

Next week, the international community will gather in Tokyo to show its commitment to Afghanistan's long-term economic development, he said, calling it a key opportunity to make sure Afghanistan continues to develop and remain secure after 2014.
"Even when Afghanistan is fully in charge of its own security, it will still be one of the poorest countries in the world," Rasmussen said. "And the best way to maintain its security will be to help it face this challenge."

At the same time, the international community needs to know that the Afghan authorities will live up to their commitments, the secretary general said.

Rasmussen said Afghan President Hamid Karzai has pledged to improve governance, fight corruption and ensure the protection of human rights, including the rights of women.
Delivering on those pledges is vital, Rasmussen added.

"We now have a once-in-a-generation chance to break the cycle of violence and extremism in Afghanistan," the secretary general said, "[and] to build long-term security for Afghans, the wider region and for ourselves. It's a chance we must all seize."

USS CAR ARRIVED IN COLOMBIA DURING DEPLOYMENT SUPPORTING OPERATION MARTILLO

FROM:  U.S. NAVY
120619-N-ZZ999-005 PACIFIC OCEAN (June 19, 2012) Suspected drug smugglers raise their hands above their heads after the engines of their fleeing boat were disabled by a U.S. Coast Guard gunner firing from a helicopter deployed from the guided-missile frigate USS Nicholas (FFG 47). Nicholas, with an embarked U.S. Coast Guard law enforcement detachment, was on patrol in the region as part of Operation Martillo, a U.S., European, and western hemisphere partner nation effort targeting illicit trafficking routes in coastal waters along the Central American isthmus. (U.S. Navy photo/Released) 


USS Carr Visits Santa Marta, Colombia 
By Ensign Joshua J. Stewart, USS Carr Public Affairs
SANTA MARTA, Colombia (NNS) -- The guided missile frigate USS Carr (FFG 52) arrived in Santa Marta, Colombia, for their first Caribbean port visit, June 28, during their deployment in support of Operation Martillo.

Carr visited Santa Marta following a month at sea conducting operations to counter transnational organized crime (CTOC) in the U.S. 4th Fleet (C4F) area of responsibility in support of Operation Martillo.

Carr Sailors took advantage of the opportunity to visit historic areas and experience the culture of Colombia's oldest city.

"This was an excellent opportunity for Carr's Sailors to experience Colombia's rich culture. My group spent time walking around the city to see the historic buildings and many statues as well as enjoy the local food," said Quartermaster 3rd Class David Blancoventura.

Visiting another country can be a rewarding and educational experience. Learning the cultural differences and history plays a major role for Sailors visiting other countries.

"Port visits aren't just about taking some time off to unwind; they also provide an opportunity to learn more about other cultures and history. We used this as an opportunity to learn more about Simon Bolivar and United Fruit's role in the development of Colombia," said Cmdr. Patrick Kulakowski, Carr commanding officer.

Carr is homeported in Norfolk, Va., and is currently deployed in support of Operation Martillo, under operational control to U.S. Naval Forces Southern Command and C4F (COMUSNAVSO/C4F) while conducting CTOC operations in support of Joint Interagency Task Force - South, U.S. Southern Command (USSOUTHCOM), and U.S. Coast Guard District Seven.

Operation Martillo (Spanish for 'hammer') is a U.S., European, and Western Hemisphere partner nation effort targeting illicit trafficking routes in coastal waters along the Central American isthmus. U.S. military participation is being led by Joint Interagency Task Force-South, a component of USSOUTHCOM. Operation Martillo is a component of the U.S. government's coordinated interagency regional security strategy in support of the White House strategy to combat transnational organized crime and the U.S. Central America Regional Security Initiative.

COMUSNAVSO/C4F supports USSOUTHCOM joint and combined full-spectrum military operations by providing principally sea-based, forward presence to ensure freedom of maneuver in the maritime domain, to foster and sustain cooperative relationships with international partners and to fully exploit the sea as maneuver space in order to enhance regional security and promote peace, stability, and prosperity in the Caribbean, Central and South American regions.

BUILDING U.S.-COLUMBIA TIES

FROM:  U.S. AIR FORCE
Staff Sgt. Angel Ortega (left), 571st Mobility Support Advisory Squadron air transportation air advisor, and Staff Sgt. Peter Salinas, 571st MSAS air transportation air advisor, secure cargo straps onto a pallet before loading it onto an aircraft during an Air Mobility Command Building Partner Capacity mission at General Alberto Pauwels Rodriguez Air Base in Barranquilla, Colombia, June 27, 2012. (U.S. Air Force photo by Tech. Sgt. Lesley Waters)  
Airmen build ties with Colombian counterparts 
by Tech. Sgt. Lesley Waters
621st Contingency Response Wing Public Affairs

7/3/2012 - BARRANQUILLA, Columbia (AFNS) -- Members of the 571st Mobility Support Advisory Squadron completed the first part of an Air Mobility Command Building Partner Capacity mission - working with the Colombian air force to promote regional stability by fostering key relationships and enhancing partner nation capabilities, at General Alberto Pauwels Rodriguez Air Base in Barranquilla, Colombia, June 28.

The mission also supports the 12th Air Force's (Air Forces Southern) continued engagements in the U.S. Southern Command area of responsibility of Latin America and the Caribbean. In addition, the 571st reached out to the Inter-American Air Forces Academy and 12th AF (AFSOUTH) for assistance to complement their team.

"This BPC mission was a success from multiple angles," said Maj. Brian Symon, 571st MSAS Colombia mission commander. "We were able to build lasting relationships that will pave the way for greater interoperability and we shared ideas to make both our nation's mobility systems more efficient and effective."

During the month-long partnership mission the 571st, a group of Air Force air mobility experts, travelled within the country to several locations working side-by-side with the Colombian air force fighter, and transport aircrews.  They developed the four core competencies of aerial support, command and control and communications, airfield operations and flight management.

The Airmen participated in a mutually beneficial forum for the exchange of ideas between U.S. and Colombian Airmen via interactive classroom seminars and hands-on exchanges at Commando Aéreo de Transporte Militar in Bogota, Comando Aéreo de Combate No. 1 Base in Palanquero and at General Alberto Pauwels Rodriguez Air Base in Barranquilla.

The 571st MSAS, stationed out of Travis AFB, Calif., continues the second part of its BPC mission as the team heads to Davis Monthan AFB, Ariz. and continues working with the Colombian air force for additional preparation and hands-on exchanges before arriving at Nellis AFB, Nev., to participate in Red Flag Exercise, July 16-27.

"We were able to work closely with the FAC (Colombian air force) by establishing common goals built on mutual respect and confidence," said Symon. "Their attendance at Red Flag is a cooperative accomplishment for both our countries and hopefully just one of many similar success stories."

The Colombian air force will make its first appearance during the Red Flag exercise and add its name to the 28 other countries who have participated in these exercises since 1975. Red Flag provides a peacetime "battlefield" to better prepare and train each nation's air forces. Each Red Flag exercise normally involves a variety of interdiction, attack, air superiority, defense suppression, airlift, air refueling and reconnaissance aircraft.

"The exchange of ideas we shared with the MSAS air advisors was invaluable," said Maj. Carlos Gutierrez, Colombian air force member. "With this being our first time at Red Flag, we wanted to take in everything the air advisors shared with us."

Red Flag has provided training for more than 440,000 military personnel, including more than 145,000 aircrew members flying more than 385,000 sorties and logging more than 660,000 hours of flying time. The mock battle in the skies over the Nevada Test and Training Range has yielded results that will increase the combat capability of each country's armed forces for future combat situations.

"There will always be ways for the U.S. and partner nations to improve their mobility systems and become more efficient," Symon said. "Persistent engagements, like this one, build upon past success and pave the way for sustained capacity improvements."

4TH OF JULY CENSUS FACTS FROM U.S. CENSUS BUREAU

FROM:  U.S. CENSUS BUREAU
The Fourth of July 2012
On this day in 1776, the Declaration of Independence was approved by the Continental Congress, setting the 13 colonies on the road to freedom as a sovereign nation. As always, this most American of holidays will be marked by parades, fireworks and backyard barbecues across the country.

How Do We Know?
As we celebrate this Independence Day, we reflect on how our Founding Fathers enshrined the importance of statistics in our Constitution as a vital tool for measuring our people, places and economy. Since 1790, the U.S. Census has been much more than a simple head count; it has charted the growth and composition of our nation. The questions have evolved over time to address our changing needs. Today, the Decennial Census, the Economic Census and the American Community Survey give Congress and community leaders the information they need to make informed decisions that shape our democracy. These statistics are how we know how our country is doing..

2.5 million
In July 1776, the estimated number of people living in the newly independent nation.
Source: Historical Statistics of the United States: Colonial Times to 1970 <http://www2.census.gov/prod2/statcomp/documents/HistoricalStatisticsoftheUnitedStates1789-1945.pdf>

313.9 million
The nation's estimated population on this July Fourth.
Source: Population clock <http://www.census.gov/main/www/popclock.html>

USS DWIGHT D. EISENHOWER CONDUCTS UNDERWAY REPLENISHMENT

FROM:  U.S. NAVY
The Nimitz-class aircraft carrier USS Dwight D. Eisenhower (CVN 69) and the guided-missile destroyer USS Winston S. Churchill (DDG 81) conduct an underway replenishment with the Military Sealift Command fleet-replenishment oiler USNS Big Horn (T-AO 198) as the guided-missile cruiser USS Hue City (CG 66) and the guided-missile destroyer USS Jason Dunham (DDG 109) transit behind. Eisenhower, Winston S. Churchill, Jason Dunham and Hue City are on a deployment in support of maritime security operations and theater security cooperation efforts in the U.S. 5th and 6th Fleet areas of responsibility. U.S. Navy photo by Ship Serviceman 3rd Class Matthew Thomson (Released) 120630-N-EW884-267

COMPANY PAYS $4 MILLION TO RESOLVE FALSE CLAIMS ACT VIOLATIONS REGARDING NATURAL GAS PURCHASES

FROM:  U.S. DEPARTMENT OF JUSTICE
Tuesday, July 3, 2012
Louis Dreyfus Energy Services Pays $4 Million to Resolve Allegations That It Violated the False Claims ActConnecticut-based Company Allegedly Failed to Pay Money Owed on Natural Gas Acquired from Government

Louis Dreyfus Energy Services has paid the United States $4,084,000 to settle allegations that it violated the False Claims Act by failing to pay money owed on natural gas acquired from the Department of the Interior, the Justice Department announced today.   Louis Dreyfus, which is based in Connecticut, is an energy company that is involved in merchandising, transportation, trading and storage of natural gas.

The settlement agreement resolves contentions by the United States that from December 2004 to March 2008, Louis Dreyfus Energy Services made false claims or misleading statements to the Department of the Interior involving contracts to buy natural gas produced from federal oil and gas leases in the Gulf of Mexico.   Starting in 2004, Louis Dreyfus agreed to pay the Interior Department for natural gas based on a price associated with the delivery of the gas at a fixed point along a natural gas pipeline. After its contracts with the Interior Department were executed, the company requested and received a discount in the price it would pay the Interior Department for the natural gas obtained under the contracts.   The United States contends that this price discount applied only when there was a complete or near-complete constraint in the natural gas pipeline such that Louis Dreyfus was unable to transport natural gas along the pipeline.   However, the energy services company claimed and obtained the price discounts even on days when it was able to ship natural gas along the pipeline.   Thus, the United States contends that Louis Dreyfus was not entitled to the price discounts that it sought and received from the Department of the Interior.

“Companies that deal with the United States have to live up to their commitments, whether they relate to the use of the nation’s natural resources or to other government programs or benefits,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division.   “The American taxpayers will not tolerate those that claim price discounts from the United States to which they are not entitled.”
“Oil and natural gas companies must understand that using false or misleading claims to get a better price is unfair and unlawful.   For companies that make such claims, there are significant consequences,” said John Walsh, U.S. Attorney for the District of Colorado.  

“This settlement is a message to industry and the public that federal government agencies, working together, are focused on the promise that the American taxpayers will get their fair share of all monies owed from public resources,” said Mary L. Kendall, Acting Inspector General of the Department of the Interior.

“Energy companies have a responsibility to respect the public trust in their efforts to help fuel this nation’s energy needs,” said Paul Mussenden, the Department of the Interior’s Deputy Assistant Secretary for Natural Resources Revenue Management.   “It is imperative they honor that trust and pay the appropriate revenues that are due to American taxpayers for these precious natural resources.”   Mussenden added that “ONRR will remain diligent in its efforts to collect every dollar due to the public and the U.S. Government.”

In addition to resolving the company’s False Claims Act liability, the settlement today also resolves certain administrative claims between the Interior Department’s Office of Natural Resources Revenue and Louis Dreyfus.

The investigation and settlement of this matter were jointly handled by the U.S. Attorney for the District of Colorado, the Justice Department’s Civil Division, the Office of Natural Resources Revenue, the Department of the Interior’s Office of the Solicitor and the Energy Investigations Unit of the Department of the Interior’s Office of Inspector General.   The claims settled by this agreement are allegations only.   There has been no determination of liability.

STATE DEPARTMENT OFFICIAL REMARKS ON MISSILE DEFENSE AND EUROPEAN SECURITY

Photo:  Missile Launch.  Credit:  U.S. DOD.
FROM:  U.S. DEPARTMENT OF STATE
Missile Defense and European Security
Remarks Frank A. Rose
Deputy Assistant Secretary, Bureau of Arms Control, Verification and Compliance8th International Conference on Missile Defence
Paris, France
July 3, 2012
Thank you so much for inviting me to speak today. This venue provides an opportunity for constructive dialogue on missile defense, and in this context, I will share an update on the U.S. approach to missile defense. At the State Department, I am responsible for overseeing a wide range of defense policy issues, including missile defense. In that capacity, it was my responsibility to negotiate the details of the Ballistic Missile Defense (BMD) agreements with Poland, Romania, and Turkey that will enable the United States to implement the European Phased Adaptive Approach, the U.S. contribution to NATO missile defense. I will touch more on this later in my presentation, but suffice to say that I have been focused over the last couple of years on ensuring that we are able to meet the vision President Obama laid out in his 2009 announcement regarding the European Phased Adaptive Approach.

Missile Defense Policy
Today, there is a growing threat from short-, medium-, and intermediate-range ballistic missiles to our deployed forces, allies, and partners. This threat is likely to increase in both quantitative and qualitative terms in the coming years, as some states are increasing their inventories, and making their ballistic missiles more accurate, reliable, and survivable.

Recognizing the seriousness of the ballistic missile threat, the United States seeks to create an environment, based on strong cooperation with allies and partners, which will diminish an adversary’s confidence in the effectiveness of ballistic missile attacks. This will devalue ballistic missiles and provide a disincentive for their development, acquisition, deployment, and use. To that end, President Obama has made international cooperation on missile defense a key priority, and we are pursuing a region-by-region approach based on the following three principles:

1) First, the United States will strengthen regional deterrence architectures built upon solid cooperative relationships with an eye toward efficiently incorporating assets and structures that our partners already have today or are seeking.

2) Second, the United States is pursuing phased adaptive approaches (PAAs) to missile defense within key regions that are tailored to their unique deterrence requirements and threats, including the scale, scope, and pace of their development, and the capabilities available and most suited for deployment. Specifically, we will phase in the best available technology to meet existing and evolving threats, and adapt to situations that evolve in the future.

3) Third, recognizing that our supply of missile defense assets cannot meet the global demand we face, the United States is developing mobile capabilities that can be relocated to adapt to a changing threat and provide surge defense capabilities where they are most needed.

Missile defense plays an important role in the broader U.S. international security strategy, supporting both deterrence and diplomacy. Missile defense assures our allies and partners that the United States has the will and the means to deter and, if necessary, defeat a limited ballistic missile attack against the U.S. homeland and regional ballistic missile attacks against our deployed forces, allies, and partners.

NATO and European Missile Defense
Today I will focus on our work in Europe, which continues to receive a great deal of attention. In order to augment the defense of the United States against a future long-range threat and provide more comprehensive and more rapid protection to our deployed forces and European Allies against the current short- and medium- range threat, President Obama outlined a four-phase approach for European missile defense called the European Phased Adaptive Approach or EPAA. Through the EPAA, the United States will deploy increasingly capable BMD assets to defend Europe against a ballistic missile threat from the Middle East that is increasing both quantitatively and qualitatively.

The EPAA is designed to protect our deployed forces and Allies in Europe, as well as improve protection of the U.S. homeland against potential ICBMs from the Middle East. As part of Phase 1, we have deployed to Turkey a missile defense radar, referred to as the AN/TPY-2 radar in support of NATO’s common missile defense efforts. Also, as part of Phase 1, the United States deployed a BMD-capable Aegis ship to the Mediterranean Sea in March of 2011, and has maintained a BMD-capable ship presence in the region ever since.

Slightly more than a year ago, we reached an agreement with Romania to host a U.S. land-based SM-3 BMD interceptor site, designed to extend missile defense protection to a greater portion of Europe. The land-based SM-3 system to be deployed to Romania is anticipated to become operational in the 2015 timeframe. We also reached an agreement with Poland to place a similar U.S. BMD interceptor site there in the 2018 timeframe, which will extend missile defense protection to all of NATO Europe. Spain has also agreed to host four U.S. Aegis destroyers at the existing naval facility at Rota. These multi-mission ships will support the EPAA as well as other EUCOM and NATO maritime missions.

The Obama Administration is implementing the EPAA within the NATO context. At the 2010 Lisbon Summit, NATO Heads of State and Government approved a new Strategic Concept and took the historic decision to develop the capability to defend NATO European populations and territory against the increasing threat posed by ballistic missile proliferation. The Allies also welcomed the EPAA as a U.S. national contribution to the new NATO territorial missile defense capability, in support of our commitment to the collective defense of the Alliance under Article 5 of the North Atlantic Treaty.

At the Lisbon Summit, NATO Heads of State and Government also decided to expand the scope of the NATO Active Layered Theatre Ballistic Missile Defense (ALTBMD) program to serve as the command, control, and communications network to support this new capability. NATO allies have committed to investing over $1 billion for command, control, and communications infrastructure to support NATO missile defense. NATO’s plan for missile defense is based on the principle that individual Allies will make voluntary national contributions of the sensors and interceptor systems, BMD capabilities that will be integrated into the NATO ALTBMD C2 backbone. As with any national contribution, Allies are responsible for the costs associated with their own contributions. NATO agreed at Chicago that only the command and control systems of ALTBMD and their expansion to territorial defense are eligible for common funding.

On May 20-21, the NATO Heads of State and Government met in Chicago for the NATO Summit and announced that NATO has achieved an interim BMD capability. This means that the Alliance has an operationally meaningful standing peacetime ballistic missile defense capability. NATO also agreed on the command and control procedures for ballistic missile defense, designated Supreme Allied Commander Europe (SACEUR) as the commander for this mission, and demonstrated an interoperable command and control capability. As with all of NATO’s operations, full political control by Allies over military actions undertaken pursuant to Interim Capability will be ensured.

To support this interim BMD capability, the United States will offer EPAA assets to the Alliance as voluntary national contributions to the BMD mission, and will welcome contributions by other Allies. For example, President Obama announced in Chicago that he has directed the transfer of the AN/TPY-2 radar deployed in Turkey to NATO operational control. The EPAA also includes BMD-capable Aegis ships that can perform many roles besides BMD. U.S. missile defense-capable ships in Europe are able to operate under NATO operational control when necessary.

These decisions have created a framework for Allies to contribute and optimize their own BMD assets for our collective defense, and the United States welcomes contributions from other Allies. We believe that NATO missile defense will be more effective should Allies decide to provide sensors and interceptors to complement the U.S. EPAA contributions. If Allies should decide to develop their own missile defense capabilities, that would create significant opportunities for European industries. In short, there is absolutely no requirement or assumption that NATO missile defense will be “made in the USA.” The only requirement is that the systems contributed by Allies be interoperable with NATO's missile defense command and control capability. Several NATO Allies possess land- and sea-based sensors that could be linked into the system, as well as lower tier systems that can be integrated and used to provide point defense. For example, the Netherlands has indicated that it will spend close to 250 million Euros to modify the radars on its frigates to detect and track ballistic missiles at long ranges and has indicated it will contribute its Patriot BMD systems to the NATO missile defense mission. There are potentially many more opportunities for joint development and procurement.

Russia
An update on missile defense cooperation with Europe should also include a discussion of our efforts to pursue cooperation with the Russian Federation. Missile defense cooperation with Russia is a Presidential priority, as it has been for several Administrations going back to President George H.W. Bush in the early 1990s.

When President Obama announced his new vision for missile defense in Europe in September 2009, he stated that “we welcome Russia’s cooperation to bring its missile defense capabilities into a broader defense of our common strategic interests.” Missile defense cooperation with Russia will not only strengthen our bilateral and NATO-Russia relationships, but also could enhance NATO’s missile defense capabilities. Successful missile defense cooperation would provide concrete benefits to Russia, our NATO Allies, and the United States and will strengthen – not weaken – strategic stability over the long term.

This means it is important to get the Russian Federation inside the missile defense tent now, working alongside the United States and NATO, while we are in the early stages of our efforts. Close cooperation between Russia and the United States and NATO is the best and most enduring way for Russia to gain the assurance that European missile defenses cannot and will not undermine its strategic deterrent.
Russia is not being asked to blindly trust us. Through cooperation, Russia would see firsthand that this system is designed for the ballistic missile threat from outside the Euro-Atlantic area, and that NATO missile defense systems will not undermine Russia’s strategic nuclear deterrent capabilities. Cooperation would send a strong message to proliferators that the United States, NATO, and Russia are working together to counter their efforts.

That said, Russia has raised the issue of wanting a legal guarantee with a set of “military-technical criteria” that could, in effect, create limitations on our ability to develop and deploy future missile defense systems against regional ballistic missile threats such as those presented by Iran and North Korea. We have made it clear that we cannot and will not accept limitations on our ability to defend ourselves, our allies, and our partners, including where we deploy our BMD-capable Aegis ships. These are multi-mission ships that are used for a variety of purposes around the world, not just for missile defense.

While we seek to develop ways to cooperate with Russia on missile defense, it is important to remember that under the terms of Article 5 of the North Atlantic Treaty, NATO alone bears responsibility for defending the Alliance from the ballistic missile threat. This is why the United States and NATO cannot agree to Russia’s proposal for “sectoral” missile defense. Just as Russia must ensure the defense of Russian territory, NATO must ensure the defense of NATO territory. NATO cannot and will not outsource its Article 5 commitments.

We would, however, be willing to agree to a political framework for cooperation that includes a statement that our missile defenses are not oriented toward Russia. Any such statement would publicly proclaim our intent to work together and chart the direction for cooperation.

During the G-20 Meeting in Los Cabos, Mexico, President Obama and President Putin announced in their June 18 Joint Statement that “despite differences in assessments, we have agreed to continue a joint search for solutions to challenges in the field of missile defense.”

The United States looks forward to continuing discussions with the Russian Federation to develop a mutually agreed framework for missile defense cooperation.

I want to close by noting the obvious which is that the worst-case scenario for dealing with missile threats is after a missile has launched. We are taking several steps diplomatically to counter missile proliferation and address missile programs of concern. We are working with the other 33 Missile Technology Control Regime (MTCR) Partners to create the global standard for controlling the transfer of equipment, software, and technology that could make a contribution to rockets and unmanned aerial vehicles. We also are working to support the efforts of the Hague Code of Conduct Against Ballistic Missile Proliferation (HCOC), and are working through the Proliferation Security Initiative (PSI) to help partners improve their ability to stop shipments of proliferation concern. Those are just some of the efforts that are ongoing to address missile threats, and while we do this work quietly, these efforts are having an impact.

Conclusion
Let me conclude by saying that today’s ballistic missile threats continue to increase in number and sophistication. This increasing threat reinforces the importance of our collaborative missile defense efforts with allies and partners around the world, which not only strengthen regional stability, but also provide protection for our forces serving abroad and augment the defense of the United States.
Thank you for your time and attention.

ISAF REPORT ON AFGHANISTAN JULY 3, 2012

MAP CREDIT:  U.S. STATE DEPARTMENT. 
FROM:   AMERICAN FORCES PRESS SERVICE
Combined Forces Confirm Death of al-Qaida Leader
Compiled from International Security Assistance Force Joint Command News Releases
WASHINGTON, July 3, 2012 - Afghan and coalition forces today confirmed the death of Hanzallah, an al-Qaida leader who operated in Afghanistan, military officials reported.
Hanzallah was killed July 1 during a security operation in the Watahpur district of Afghanistan's Kunar province, officials said.
Hanzallah acted as a military advisor to insurgents in Kunar, Nuristan and Laghman provinces and provided them with improvised explosive device training, officials said. Officials noted that Hanzallah was one of several al-Qaida terrorists killed during the security operation.

Also today, an airstrike called in by a combined force killed several insurgents in the Bermal district of Paktika province.
In operations yesterday:
-- A combined force killed two insurgents in Ghazni province's Giro district.

-- A combined force killed four insurgents in Ghazni province's Andar district.

-- Combined forces found and safely cleared IEDs in Ghazni province's Ab Band and Qarah Bagh districts.

-- A combined force detained an insurgent in Khost province's Gurbuz district.

-- Combined forces detained three insurgents in Khowst province's Khowst districtand found and safely cleared an IED in Khost's Sabari district.

-- A combined force killed an insurgent in Kunar province's Watahpur district, and another detained two insurgents in Kunar's Sar Kani district.

-- A combined force killed four insurgents in Logar province's Charkh district.

-- A combined force detained two insurgents in Paktika province's Sar Rowzah district.

-- Afghan national security forces and coalition forces killed three insurgents in Paktia province's Shwak district.

-- A combined force detained two insurgents in Paktia's Zurmat district.

-- A combined force found and safely cleared three IEDs, killed two insurgents and detained five others in Wardak province's Qarah Bagh district.

-- A combined force found and safely cleared two IEDs in Wardak's Sayyadabad district.

In a June 30 operation, a combined force killed numerous insurgents and seized 220 pounds of poppy seed, 11 pounds of wet opium, IED-making components, 700 7.62mm rounds and weapons in the Shiray Kajaki and Baghran districts of Helmand province.

USDA ANNOUNCES NEW STEPS PROTECTING PUBLIC FROM PESTICIDES, CHEMICALS

Photo Credit:  USDA.
FROM:  U.S. DEPARTMENT OF AGRICULTURE
USDA to Enhance Consumer Safeguards with Expanded Testing for Illegal Drug Residues in Meat
WASHINGTON, July 2, 2012—The U.S. Department of Agriculture's Food Safety and Inspection Service (FSIS) today announced new steps to safeguard the food supply and to protect consumers nationwide. Later this summer, the Department will launch a new approach to its testing to protect the public from exposure to harmful levels of chemical residues in meat, poultry, and egg products.

"The new testing methods being announced today will help protect consumers from illegal drug residues in meat products," USDA Under Secretary for Food Safety Dr. Elisabeth Hagen said. "By allowing us to test for more chemical compounds from each sample, these changes will enable USDA to identify and evaluate illegal drug residues more effectively and efficiently."

Through its National Residue Program (NRP), FSIS tests for the presence of chemical compounds, including approved (legal) and unapproved (illegal) veterinary drugs, pesticides, hormones, and environmental contaminants that may appear in meat, poultry, and egg products. The new, modern, high-efficiency methods that FSIS is announcing today will conserve resources and provide useful and reliable results while enabling the Agency to analyze each sample for more chemical compounds than previously possible.

One of the multi-residue methods being implemented for veterinary drugs will allow the Agency to screen for chemical compounds that include several types of legal and illegal drugs such as antibiotics, anti-inflammatories and growth promoters. In the past, FSIS would have collected 300 samples from 300 cows and looked for just one chemical at a time. Under the new system, one sample may be tested for as many as 55 pesticide chemicals, 9 kinds of antibiotics, various metals, and eventually more than 50 other chemicals. In all, FSIS will assess more compounds per sample using several multi-residue methods.

FSIS is also revamping its scheduled sampling program to increase the annual number of samples per slaughter class from 300 to 800. If an establishment has samples containing illegal residue levels, FSIS will notify the Food and Drug Administration, which may review practices of producers supplying the establishment with livestock or poultry, and FSIS may subject the establishment to increased testing and review.

FSIS is responsible for protecting the health and welfare of consumers by regulating the meat, poultry, and egg products produced in federally inspected establishments. One way FSIS provides this protection is through the NRP—an inter-departmental collaboration designed to protect the public from exposure to harmful levels of chemical residues in meat, poultry, and egg products produced or imported into the United States. The NRP is designed to provide a structured process for identifying and evaluating chemical compounds of concern in food animals; collecting, analyzing and reporting results; and identifying the need for regulatory follow-up when violative levels of chemical residues are found.

FSIS is inviting interested persons to submit comments on today's announcement, which is tentatively slated to be published in the Federal Register on July 6, 2012 athttp://www.regulations.gov. The new testing regimen is expected to take effect 30 days after the Federal Register notice is published.

In the past two years, FSIS has announced several new measures to safeguard the food supply, prevent foodborne illness, and improve consumers' knowledge about the food they eat. These initiatives support the three core principles developed by the President's Food Safety Working Group: prioritizing prevention; strengthening surveillance and enforcement; and improving response and recovery. Some of these actions include:

Zero-tolerance policy for non-O157:H7 STECs. On June 4, 2012, FSIS began routinely testing raw beef manufacturing trim for six strains of non-O157:H7 Shiga-toxin producing E. coli (STEC) serogroups. Trim found to be contaminated with these pathogens, which can cause severe illness and even death, will not be allowed into commerce and will be subject to recall.

Labeling requirements that provide better information to consumers about their food by requiring nutrition information for single-ingredient raw meat and poultry products and ground or chopped products.
Public Health Information System, a modernized, comprehensive database with information on public health trends and food safety violations at the nearly 6,100 plants FSIS regulates.

Performance standards for poultry establishments for continued reductions in the occurrence of pathogens. After two years of enforcing the new standards, FSIS estimates that approximately 5,000 illnesses will be prevented each year under the new Campylobacterstandards, and approximately 20,000 illnesses will be prevented under the revised Salmonella standards each year.

Test and hold policy that will significantly reduce consumer exposure to unsafe meat products, should the policy become final, because products cannot be released into commerce until Agency test results for dangerous contaminants are known.

PRESIDENT OBAMA PRAISES AIRMEN FIREFIGHTERS

FROM:  U.S. DEPARTMENT OF DEFENSE
Obama Praises Airmen for Firefighting Efforts, Bravery
President Barack Obama reflected on the sacrifices made by airmen fighting wildfires in the Rocky Mountain region, calling them “heroes who deserve the appreciation of a grateful nation.” Obama made the statement in Washington, D.C., July 2, 2012, following the crash of a North Carolina Air National Guard C-130 aircraft flown by a crew battling a South Dakota wildfire.

NAVY CRACKS DOWN ON "SPICE", "BATH SALTS"

FROM:  U.S. NAVY
120329-N-WP746-068 JOINT BASE PEARL HARBOR-HICKAM (March 29, 2012) The Criminal Investigative Division at Commander, Navy Region Hawaii, displays examples of seized evidences of synthetic drugs, commonly known as "Spice" as part of an awareness campaign and training against its usage. Spice looks similar to marijuana or oregano and is used for its psychoactive and hallucinogenic effects. Spice and other designer drugs are falsely marketed by manufacturers in commercial-like packaging as a safe way to get high while avoiding drug testing. (U.S. Navy photo by Mass Communication Specialist 2nd Class Mark Logico/Released) 
Navy Weeds Out Users Of Designer Drugs 
MILLINGTON, Tenn. (NNS) -- Navy's implementation of synthetic drug testing for synthetic chemical compounds like "Spice" and "Bath Salts" is helping the service close ranks on Sailors who use these prohibited and dangerous substances, officials said July 2.

"Navy has zero tolerance for drug abuse. Drug abuse, including use of designer drugs and synthetic compounds, by members of the Navy is incompatible with high standards of performance, military discipline, and readiness as embodied by of 21st Century Sailors and Marines," said Rear Adm. Tony Kurta, director, military personnel plans and policy.

Navy reviews its testing of synthetic compounds continuously, and also continually responds to production of new controlled and synthetic compounds, changing testing procedures and pacing the changes being made by producers.

Navy has analyzed more than 3,300 urine samples for synthetic chemical compounds since testing began in March, with 101 samples testing positive. Authorized testing under the synthetic drug testing program is conducted under member consent, command directed, unit and/or subunit sweep.

NCIS will be notified of every positive sample for possible further investigation with a view towards potential disciplinary or adverse administrative action by the service member's command.

Spice is a synthetic chemical compound that is sold as herbal incense and mimics the effects of the drug marijuana. A ban was placed on five synthetic cannabis compounds commonly found in the designer drug Spice, but also sold under different names.

Some of the short-term effects include auditory and visual hallucinations, painless head pressure, panic attacks, time distortion and delirium. Long-term effects from the designer drug can include permanent physical impairment, mental illness or death.

Another synthetic chemical compound, bath salts are sold under the common names: Vanilla Sky, Ivory Wave, Pure Ivory, Purple Wave, Charge+, Ocean Burst, and Sextacy. Bath salts are a potentially addictive powdered substance that is snorted, smoked or injected. They can have an adverse effect on the heart, circulation, nervous system, similar to ecstasy or cocaine, and result in lethal overdose.

The unlawful possession or use by Department of the Navy personnel of controlled substance analogues (designer drugs), natural substances, chemicals wrongfully used as inhalants, propellants, prescribed or over-the-counter medication or pharmaceutical compound with the intent to induce intoxication, excitement or stupefaction of the central nervous system is prohibited via SECNAVINST 5300.28D. Violators are subject to punitive action under the Uniform Code of Military Justice, Article 92.

Navy's Synthetic Drug Testing Operating Guide is posted on the Navy Alcohol and Drug Abuse Prevention Office (NADAP) website and contains procedures for commands to request synthetic drug testing and synthetic drug testing information.

The Navy's zero-tolerance policy towards drug use is a key contributor to the readiness area of the 21st Century Sailor and Marine. To view the guide or for more news from NADAP, visitwww.nadap.navy.mil.

HHS GRANTS $971 MILLION FOR PUBLIC HEALTH DISASTER PREPAREDNESS

Photo Credit:  Wikimedia.
FROM:  DEPARTMENT OF HEALTH AND HUMAN SERVICES
HHS grants bolster health care and public health disaster preparedness
Systems prepared for emergencies can provide better daily care
The Department of Health and Human Services has awarded more than $971 million to continue improving preparedness and health outcomes for a wide range of public health threats within every state, eight U.S. territories, and four of the nation’s largest metropolitan areas.

“Health care and public health systems that are prepared to respond successfully to emergencies and recover quickly from all hazards are also able to deliver services more effectively and efficiently every day,” said Dr. Nicole Lurie, HHS assistant secretary for preparedness and response. “Having systems in place to provide better treatment for disaster survivors and improved public health for our communities also leads to better health outcomes on a day-to-day basis.”

The funding awards included a total of approximately $352 million awarded for the Hospital Preparedness Program (HPP) cooperative agreement and more than $619 million awarded for the Public Health Emergency Preparedness (PHEP) cooperative agreement.

Administered by the HHS Office of the Assistant Secretary for Preparedness and Response (ASPR), HPP funding supports preparedness for health care systems, health care coalitions, and health care organizations. HHS’ Centers for Disease Control and Prevention administers PHEP funding to support the preparedness of state, local, and territorial public health systems.

HPP and PHEP funding helps recipients build and sustain public health and health care preparedness capabilities outlined in ASPR’s Healthcare Preparedness Capabilities: National Guidance for Healthcare System Preparedness (PDF – 902 KB) and in CDC’s Public Health Preparedness Capabilities: National Standards for State and Local Planning. These documents establish standards for protecting human health and national health security.

For the first time, the HPP and PHEP funds are being awarded jointly, encouraging cooperation between the nation’s health care and public health systems. This change follows a year-long effort by ASPR and CDC to align the two federal preparedness programs. These programs represent critical sources of funding and support for public health and health care preparedness systems.

Improved coordination among federal emergency preparedness programs is a high priority of HHS and other federal entities, as well as for HPP and PHEP awardees. In December 2010, ASPR, CDC, and other federal partners began developing strategies to better align grants with public health and health care preparedness components.
“State and local agencies have made tremendous progress over the past decade in building and sustaining public health and health care preparedness capabilities,” Dr. Lurie said. "The integration fostered by HPP and PHEP alignment is important in streamlining and strengthening the day-to-day relationships and cross-sector cooperation that are critical to achieving a resilient health system ready to face any health hazard and capable of providing the affordable, high-quality daily care that all Americans deserve.”

With aligned HPP and PHEP cooperative agreement programs, states and communities can more easily, efficiently, and effectively conduct joint planning, exercising, and program operations. These activities are vital in preparing communities to respond and recover from emergencies and help communities manage health care and public health on a daily basis.

Dr. Lurie noted that as access to health care increases, more Americans are likely to seek care from primary care providers and health clinics to address these day-to-day health issues rather than visiting emergency departments. With fewer people seeking basic care in emergency rooms, hospitals can care for a greater number of patients during emergencies.
ASPR and CDC aligned HPP and PHEP cooperative agreements to advance all-hazards preparedness and national health security, promote responsible stewardship of federal funds, and reduce the administrative burden for grant recipients. The programs support complementary preparedness capabilities and performance measures, use the same processes for grants administration, technical assistance and data management, use common reporting requirements, and have compatible IT systems.

While closely aligned in many aspects, HPP and PHEP will continue to remain individual programs, in accordance with authorizing legislation. HPP and PHEP budgets also will remain separate, to ensure accountability for the statutory requirements of each separate funding stream.

This alignment has resulted in several key changes for the 2012 HPP-PHEP grant cycle. Among the changes are a single HPP-PHEP funding opportunity announcement, funding application, and grant award, as well as a single grants administration agency, CDC’s Procurement and Grants Office. An aligned grant cycle is also being implemented, with the annual HPP-PHEP grant cycle beginning each July 1 and ending on June 30 of the following year.

To learn more about HPP and PHEP including grant awards to individual states, territories or localities, visithttp://www.cdc.gov/about/organization/ophpr.htm.

FUND ADVISER SUED BY SEC FOR ALLEGED BREACH OF DUTY

FROM:  SECURITIES AND EXCHANGE COMMISSION
SEC Sues Fund Adviser for Fees Charged in Breach of Duty Under the Investment Company Act
Washington, D.C., June 26, 2012 — The Securities and Exchange Commission today sued AMMB Consultant Sendirian Berhad (AMC), a Malaysian investment adviser, alleging that for more than a decade, AMC charged a U.S. registered fund for advisory services that AMC did not provide. The SEC alleges that by doing so, AMC breached its fiduciary duty with respect to compensation under the Investment Company Act of 1940.

Kuala Lumpur-based AMC served as a sub-adviser to the Malaysia Fund, Inc., a closed-end fund that invests in Malaysian companies, whose principal investment adviser is Morgan Stanley Investment Management, Inc. (MSIM). The SEC alleges that AMC misrepresented its services during the fund’s annual advisory agreement review process for each year for more than 10 years, and AMC collected fees for advisory services that it did not provide.

AMC, a unit of AMMB Holdings Berhad, one of Malaysia’s largest banking groups, agreed to pay $1.6 million to settle the SEC’s charges, without admitting or denying the allegations. The case follows the SEC’s recent related action against the Malaysia Fund’s primary adviser, MSIM, and is part of an inquiry into the investment advisory contract renewal process by the SEC Enforcement Division’s Asset Management Unit.
“We are committed to ensuring that advisers to registered funds adhere to their fiduciary duty with respect to the receipt of compensation. Here, AMC breached that duty by charging fees for services that were not rendered,” said Bruce Karpati, Chief of the Asset Management Unit in the SEC’s Division of Enforcement.

AMC’s advisory fees were approved each year from 1996 to 2007 as part of the “15(c) process,” a reference to Section 15(c) of the Investment Company Act of 1940, which requires a registered fund’s board to annually evaluate the fund’s advisory agreements, and advisers to provide the board with information reasonably necessary to make that evaluation.

According to the SEC, AMC submitted a report to the Malaysia Fund’s board of directors each year that falsely claimed that AMC was providing specific advice, research, and assistance to MSIM for the benefit of the fund. In reality, the SEC’s complaint said AMC’s services were limited to providing two monthly reports based on publicly available information that MSIM did not request or use. Moreover, the SEC alleged that AMC failed to adopt and implement adequate policies, procedures, and controls over its advisory business, contrary to certifications provided to the fund’s directors in 2006 and 2007. AMC’s advisory agreement with the fund was terminated in early 2008 after the SEC’s examination staff inquired about the services AMC was purportedly providing to the fund.

The SEC’s complaint, filed in the U.S. District Court for the District of Columbia, alleges that AMC breached its fiduciary duty with respect to the receipt of compensation within the meaning of Section 36(b) of the Investment Company Act of 1940. The SEC also alleges that AMC violated Sections 206(2) and (4) of the Investment Advisers Act of 1940, and Rule 206(4)-7 thereunder, and Section 15(c) of the Investment Company Act of 1940. AMC consented to a judgment that bars it from violating these provisions in the future. AMC has also agreed to disgorge $1.3 million of its advisory fees paid by the fund and pay a $250,000 penalty.

Chad Alan Earnst, Christine Lynch, and Jessica Weiner, of the Enforcement Division’s Asset Management Unit staff, conducted the investigation along with Tonya Tullis and Edward D. McCutcheon. Karen Stevenson, Susan Schneider, and Dennis Delaney conducted the related examinations.

The SEC acknowledges the assistance of the Securities Commission of Malaysia and the Monetary Authority of Singapore.

U.S. SECRETARY OF STATE PANETTA WELCOMES OPENING OF SUPPLY LINES BY PAKISTAN

FROM:  AMERICAN FORCES PRESS SERVICE

By Cheryl Pellerin
WASHINGTON, July 3, 2012 - Defense Secretary Leon E. Panetta today welcomed Pakistan's decision to open ground lines of communication on the border with Afghanistan that have been closed since November.
Secretary of State Hillary Rodham Clinton announced the decision after a telephone call this morning with Pakistani Foreign Minister Hina Rabbani Khar.


"As I have made clear," Panetta said, "we remain committed to improving our partnership with Pakistan and to working closely together as our two nations confront common security challenges in the region."


On the call with Khar, Clinton said, "I once again reiterated our deepest regrets for the tragic incident in Salala last November. I offered our sincere condolences to the families of the Pakistani soldiers who lost their lives."


Clinton and Khar acknowledged the mistakes that resulted in the loss of Pakistani military lives, she added.


"We are sorry for the losses suffered by the Pakistani military," she added. "We are committed to working closely with Pakistan and Afghanistan to prevent this from ever happening again."


In reopening the ground lines of communication, Pakistan will not charge transit fees in the larger interest of peace and security in Afghanistan and the region, Clinton said.


"This is a tangible demonstration of Pakistan's support for a secure, peaceful and prosperous Afghanistan and our shared objectives in the region," she said, adding that the move will help the United States and the International Security Assistance Force conduct the planned drawdown at a much lower cost.
"This is critically important to the men and women who are fighting terrorism and extremism in Afghanistan," Clinton said.


Khar said no lethal equipment will transit Pakistan into Afghanistan unless it is meant to equip the Afghan national security force.


During the call, Khar and Clinton discussed the importance of taking coordinated action against terrorists who threaten Pakistan, the United States and the region, she said.


Clinton said she and Khar also discussed supporting Afghanistan's security, stability and efforts towards reconciliation, and continuing to work together to advance the two nations' many other shared interests, from increasing trade and investment to strengthening our people-to-people ties.


"Our countries should have a relationship that is enduring, strategic and carefully defined, and that enhances the security and prosperity of both our nations and the region," the secretary said.


U.S. and Pakistani troops are in a fight against a common enemy, she said, and have enhanced counterterrorism cooperation against terrorists that threaten both countries, with the goal of defeating al-Qaida in the region.


As the call ended, Clinton said, "I reiterated our deep appreciation to the government and the people of Pakistan for their many sacrifices and their critical contribution to the ongoing fight against terrorism and extremism."

C-130 MODULAR AIRBORNE FIREFIGHTING SYSTEM FLEET RESUMES OPERATIONS

Photo:  C130 Aircraft Fighting Wildfire.  Credit:  U.S. Air Force.
FROM:  U.S. DEPARTMENT OF DEFENSE
From a U.S. Northern Command News Release
PETERSON AIR FORCE BASE, Colo., July 3, 2012 – The military’s C-130 Modular Airborne Fire-Fighting System fleet will resume operations today to support the National Interagency Fire Center and its firefighters battling wildfires in several states, U.S. Northern Command officials said.
Operational flying was suspended yesterday to review flying and safety procedures after the July 1 crash of a MAFFS C-130 while fighting South Dakota's White Draw Fire. An official investigation into the crash is ongoing.

SOYUZ TMA-03M SPACECRAFT LANDS

The Soyuz TMA-03M spacecraft is seen as it lands with Expedition 31 Commander Oleg Kononenko of Russia and Flight Engineers Don Pettit of NASA and Andre Kuipers of the European Space Agency in a remote area near the town of Zhezkazgan, Kazakhstan, on Sunday, July 1, 2012. Pettit, Kononenko and Kuipers returned from more than six months onboard the International Space Station where they served as members of the Expedition 30 and 31 crews. Image Credit: NASA/Bill Ingalls

U.S. GOVERNMENT PROGRAM BOLSTERS RELATIONS IN SOUTH AMERICAN NATIONS

FROM:  AMERICAN FORCES PRESS SERVICE
 Excitement builds in El Rancho, Guatemala, as hundreds of local residents gather for the opening of a new medical clinic built by U.S. service members during U.S. Southern Command's Beyond the Horizons humanitarian civic assistance exercise, June 26, 2012. DOD photo by Donna Miles  

'Beyond the Horizons' Strengthens Bonds in Guatemala, Honduras
By Donna Miles
EL RANCHO, Guatemala, June 27, 2012 - Celebration filled this tiny mountain town yesterday, as hundreds of residents pulled out all the stops to mark the opening of a new medical clinic and to thank the U.S. service members who built it as part of U.S. Southern Command's Beyond the Horizons 2012 mission.

Women and young children dressed in a rainbow of colors began gathering long before the ceremony, with the local men looking on proudly as they awaited a musical procession toward the balloon- and ribbon-decked clinic. Schoolchildren waved Guatemalan and U.S. flags as they led members of Naval Mobile Construction Battalion 23 up a steep hill toward the gleaming blue-and-white structure the Seabees spent the last two and a half months building.

The Seabees -- Navy reservists based at Fort Belvoir, Va. -- are among almost 1,300 soldiers, airmen and sailors who have brought engineering, construction and health care services to Guatemala and Honduras since Beyond the Horizon kicked off in April.

In Guatemala alone, they collectively built a school and two new medical clinics, including the one here. They also renovated two other schools and a medical clinic.

The troops also sponsored three medical readiness exercises, providing free medical care in three local communities.

Army Maj. Orlando Ortega, Southcom's lead planner for Beyond the Horizons and its New Horizons sister mission in Peru, called the comprehensive humanitarian civic assistance exercises an opportunity for U.S. service members to receive valuable engineering and medical training while fostering stronger partnerships in the region.

The 90-day exercises are Southcom's largest involving ground troops in its area of responsibility, which includes Central and South America and the Caribbean. Many of the participants have been National Guard soldiers and airmen who served two- to four-week rotations in Guatemala or Honduras.

"These are joint ventures, with all services in the United States and within the host nation participating together and learning from each other," Ortega said.

U.S. Army South is leading the Beyond the Horizons exercises in Honduras and Guatemala, and U.S. Air Forces Southern is leading New Horizons.

With each concrete block laid and each patient treated, the missions help build closer relationships between the United States and its regional partners while demonstrating long-term U.S. commitment, Ortega said.

"This is a win-win situation for everyone. Our troops get training. The host nation forces get training. And in doing so, they leave something very tangible behind," he said. "And the local people appreciate that. You can see it on their faces, the fact that they know this is going to improve their communities."

Army Lt. Col. John Findley, a Missouri National Guardsman who served as commander of the Partnership of the Americas Cooperation and Collaboration Element overseeing the exercise in Guatemala, said the biggest reward was watching relationships unfold between the U.S. forces and the Guatemalans.

"The thing I really liked was the exchanging of experiences," he said. Guatemalan and U.S. doctors shared expertise as they treated cases that most medical staffs simply don't see in the United States. National Guard engineers, many of whom had focused predominantly on route-clearance operations in Afghanistan and Iraq, got a chance to return to basic engineering skills.

"Our biggest goal is to ensure that the soldiers, airmen and Seabees got valuable training in their job specialties," Findley said. "But there's also been another huge takeaway: that sense of accomplishment that comes from doing something good for a community and seeing the real benefit of that work."

Findley said he enjoyed watching the Guatemalan children grow attached to him and his troops. "At first, the kids were scared of us, but now it's all big smiles, high-fives and knuckle bumps," he said.

Naval Mobile Construction Battalion 23 experienced that growing acceptance as they put their skills to work on the 23-by-60-foot, concrete-block medical clinic here. It includes offices and a kitchen, and will serve 30,000 to 40,000 people in six communities.
The Seabees got so excited about the project that they took it the extra mile, also redoing the water and septic system that serves the facility and building a three-stall latrine, benches from scrap wood and a cooking pit, explained Navy Lt. Jeff Dong, the officer in charge.

"You know that you are making a sacrifice of your own time, but when you see how much it will do, it gives you a good, warm feeling," he said. "To be able to do something like this that will make such a difference for so many people is really rewarding."
Navy Petty Officer 2nd Class Al Baldassarre, participating in his first humanitarian assistance mission, said he enjoyed watching the growing anticipation among the local residents as the clinic took shape.

While knowing he and his fellow Seabees were making a valuable contribution to the community, Navy Petty Officer 1st Class Jeff Ambrose, lead petty officer for the project, said the experience also underscored his unit's full range of capabilities. "It reinforced that we actually are a mobile battalion, and that we can pick up and go anywhere and have the capability of doing our job," he said.

As Guatemalan community leaders expressed thanks to the United States and its military during yesterday's ceremony, Findley said everyone ultimately benefited through the Beyond the Horizons experience.

"By participating in this project, our soldiers have gained valuable experiences and opportunities that will be a lasting legacy of our partnership together," he told the group.
That sentiment is captured on a plaque affixed outside the front door of the new medical clinic: "This project was possible, thanks to the cooperation of the governments of Guatemala and the United States of America as a symbol of friendship between our countries."

"Beyond the Horizons is just part of the progress we can achieve together" as partners, Findley told yesterday's gathering. "I am confident that, working together, there is nothing we cannot achieve."