THOUGHTS ON THE GAMES BY 2012 U.S. PARALYMPICS CHIEF

FROM: U.S. DEPARTMENT OF DEFENSE, 2012 PARALYMPIC GAMES
Charlie Huebner, far left, chief of U.S. Paralympics, and Brian Loeffler, center, coach for the U.S. men's Paralympics swim team, share their thoughts on the 2012 Paralympic Games during a news conference in London featuring Navy Lt. Bradley Snyder, second from left, at the 2012 London Paralympic Games, Sept. 5, 2012. DOD photo by Army Sgt. 1st Class Tyrone C. Marshall Jr.
 
U.S. Paralympics Chief Lauds Athletes, London Games

By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

LONDON, Sept. 8, 2012 - The Paralympic movement continues to grow as competition improves and opportunities to compete increase, providing fundamental growth to this burgeoning movement, the U.S. Paralympics chief said here Sept. 5.

Charlie Huebner, chief of the U.S. Paralympics Committee, praised the American team's athletes for their performance during a news conference honoring Navy Lt. Bradley Snyder, one of three active duty service members, participating in the 2012 Paralympic Games.

"We're very proud of the American team, and we're winning some medals ... and we have more opportunities," he said. "And we're also very proud of the 20 members of the armed forces and veterans that are on our team this year.

"They're great ambassadors for our nation, obviously, with our friends in the United Kingdom, we have a pretty unique partnership," Huebner said. "And they're also excelling ... in competition. I'm just very pleased with how things are going."

The U.S. Paralympics chief recognized Great Britain for its hospitality and organization of an "incredible environment for both the Olympic Games and these Paralympic Games."

"I just wanted to compliment the London Organizing Committee, [and] the people of the United Kingdom," Huebner said. "These games are fabulous, as you can see."

Huebner reaffirmed the U.S. Olympic Committee's commitment to enhancing Paralympic opportunities for those with disabilities.

"The reason this movement exists is [that] it's very personal for us," he said. "We have been asked to play a leadership role by the Department of Veteran Affairs, Department of Defense and congressional leaders in the United States. The U.S. Olympic Committee's expertise in physical disabilities and in multiple sports made it an obvious choice to lead the charge of enhancing the program, he added.

"There's a great need in the United States, not just for injured service members and veterans, but for kids with physical disabilities to have local community programming to be able to simply participate in physical activity," he said. "In 2008, we started a community-based program, now in 183 communities, called the Paralympic Sport Club Program," Huebner said. "We're committing to growing the availability of programs in the United States."

The U.S. Paralympics chief also noted the importance of including service members and veterans, like Snyder, in the U.S. Paralympics program.

"The military and veteran piece is critical us, and we have great partnerships with our government, the Department of Veteran Affairs and the Department of Defense," Huebner said.

Snyder has won Paralympic medals, he added, and the U.S. Paralympics Committee wants to succeed in competition while also providing opportunities for people with disabilities.

"We want to get more people involved in physical activity and sports, ... but we also want to be successful in the games," he said.

U.S.-RUSSIA SIGN MEMORANDUM OF UNDERSTANDING FOR COOPERATION IN ANTARTICA

Map:  Antartica.  Credit:  CIA World Factbook.
FROM: U.S. DEPARTMENT OF STATE, ANTARTICA

U.S.-Russia Cooperation on Antarctica, Interregional Areas, and Beringia

Fact Sheet
Office of the Spokesperson
Washington, DC
September 8, 2012

U.S. Secretary of State Hillary Rodham Clinton and Russian Foreign Minister Sergey Lavrov met during the Asia Pacific Economic Cooperation Summit in Vladivostok, Russia on September 8, 2012 to sign a Memorandum of Understanding for Cooperation in Antarctica and to issue Joint Statements on Pursuing a Transboundary Area of Shared Beringian Heritage and on Enhancing Interregional Cooperation. The United States and Russia conduct some of the most extensive and diverse scientific activities in Antarctica, and are among the original architects and signatories of the 1959 Antarctic Treaty.

Antarctic Cooperation
The Memorandum of Understanding for Cooperation in Antarctica will:
Strengthen cooperation and significantly improve coordination of bilateral policies, science, logistics, search and rescue, training, and public outreach in Antarctica.
Reinforce cooperative activities already taking place. For the first time, the United States and Russia are jointly conducting inspections of foreign facilities in Antarctica, which will take place in two phases in 2012.
Interregional Cooperation
The Joint Statement on Interregional Cooperation will:
Encourage closer state and municipal ties, such as sister-city initiatives, with the goal of stimulating increased U.S.-Russia trade and investment links at the local level.
Facilitate exchanges on state and municipal governance, paying close attention to e-government issues as well as the development of projects, including infrastructure development, along with plans to exchange delegations from local governments.
Foster business ties between our two countries at the sub-national level, particularly between the Pacific Northwest and the Russian Far East, where investments like ExxonMobil’s on Sakhalin Island, as well as our increased U.S. agricultural exports, are already making headway in our economic relationship.
Beringia
The Joint Statement on Pursuing a Transboundary Area of Shared Beringian Heritage represents the first time the United States and Russia have stated their intention to formally link National Parks in Alaska - the Bering Land Bridge Natural Preserve and the Cape Krusenstern National Monument - with the soon-to-be-designated Beringia National Park in Chukhotka, Russia.

The linkage will:
Facilitate conservation of flora, fauna, and the natural ecosystem.
Preserve kinship ties, traditional lifestyle, and languages of the indigenous peoples of the region.
Enhance collaboration on conservation, management, scientific research, and effective monitoring of the environment.
Formalize the symbolic linkage of our two continents, governments, and people.

SEC CHARGES COMPANY AND FORMER EXECS WITH DEFRAUDING INVESTORS

Photo:  Solar Panels.  Credit:  U.S. Navy

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Sept. 6, 2012 – The Securities and Exchange Commission today charged a solar panel manufacturer headquartered in South San Francisco and three of its former executives with defrauding investors by concealing the transfer of nearly half of the ownership stake in its Chinese subsidiary to three individuals in China who manage the subsidiary.

The SEC alleges that Worldwide Energy and Manufacturing USA Inc. (WEMU) raised nearly $9 million from U.S. investors in early 2010 in order to expand its solar subsidiary based in Rugao City, China. The Chinese subsidiary represented the bulk of WEMU’s operations and generated 77 percent of the company’s revenue the previous year. In a power point presentation at road shows and in other communications with investors, the company’s founder and chairman of the board Jimmy Wang and the company’s president Jeffrey Watson touted the solar subsidiary’s success as the primary growth area for the company and represented that the company fully owned its Chinese subsidiary. They neglected to tell investors that WEMU actually was set to transfer 49 percent of the equity in the Chinese subsidiary to its three managers. This critical ownership deal was not disclosed in the company’s filings or offering documents. Later, Wang and his wife Mindy Wang, who served as the company’s vice president, secretary and treasurer, went so far as to sign additional agreements to effectuate the transfer that were concealed from WEMU’s board and auditors.

WEMU, the Wangs, and Watson agreed to settle the SEC’s charges.

"WEMU and its executives deliberately withheld the fact that its investors would not have a full ownership stake in its largest and most profitable subsidiary," said Marc J. Fagel, Director of the SEC’s San Francisco Regional Office. "The decreased ownership interest in the subsidiary would be a key piece of information for anyone investing in a company with significant offshore operations."

According to the SEC’s complaint filed in federal court in San Francisco, because the company’s future success depended on the technical expertise and sales connections of the three Chinese solar managers, WEMU entered into a stock option agreement with them in January 2008 that included consideration for a future change in organizational structure. The Chinese subsidiary grew dramatically over the next year and quickly became WEMU’s most profitable subsidiary. In February 2009, Jimmy Wang signed two key agreements on behalf of WEMU to share 49 percent of the Chinese subsidiary’s net profits with the solar managers and to transfer 49 percent of the subsidiary’s equity to them in February 2010. Failure to disclose these agreements resulted in WEMU filing false and misleading quarterly reports for the first three quarters of 2009 and first quarter of 2010.

According to the SEC’s complaint, WEMU management began planning a capital raise in the fall of 2009 so it could expand its solar operations by building a factory in China to manufacture solar panels. When Jimmy Wang and Watson went out to raise money from investors in early 2010, there was no mention of the agreement to transfer an ownership stake. Instead, in order to avoid informing investors about the profit sharing arrangement and contractual obligation to transfer equity to the Chinese subsidiary’s managers, Jimmy and Mindy Wang traveled to China in March 2010 to secretly sign a set of side agreements that allowed the solar managers to begin the registration process with the Chinese government to effectuate the transfer. Both Jimmy and Mindy Wang concealed these side agreements from WEMU’s auditors, other executives, and its board of directors. The company’s failure to report the transfer of the solar subsidiary resulted in a material overstatement of net income to WEMU’s reported financial statements.

Without admitting or denying the SEC’s allegations, WEMU agreed to pay a $100,000 penalty and be permanently enjoined from future violations of antifraud, reporting, books and records and internal controls provisions of the federal securities laws. The Wangs and Watson consented to permanent bars from serving as officers or directors of a public company and agreed to be permanently enjoined from future violations of the antifraud and other provisions of the federal securities laws. Mindy Wang and Watson each agreed to pay penalties of $50,000. The terms of the settlement with Jimmy Wang reflect credit given to him by the Commission for his substantial assistance in the investigation and the fact that he has entered into a cooperation agreement to assist in the ongoing investigation.

The SEC’s investigation was conducted by staff accountant Adrienne F. Miller, staff attorney Alice L. Jensen, and Assistant Regional Director Jina L. Choi in the SEC’s San Francisco Regional Office.

The SEC acknowledges the assistance of the U.S. Department of Labor in this matter.

MAJOR DREDGEING PROJECT ANNOUNCED FOR WAUKEGAN HARBOR

Photo:  Chicago Dock.  Credit:  Wikimedia.

FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY

EPA, Illinois and Local Officials Announce Major Dredging Project at Waukegan Harbor CHICAGO – (Sept. 6, 2012) The U.S. Environmental Protection Agency, the State of Illinois and Waukegan officials joined forces today to kick off a Superfund dredging project needed to remove the Waukegan Harbor "Area of Concern" (AOC) from a list of toxic hot spots identified in the 1987 Great Lakes Water Quality Agreement.

"Today, Waukegan Harbor is going from what was once called 'the world's worst PCB mess' to one of our best coastal turnaround stories," said Cameron Davis, senior advisor to U.S. EPA Administrator Lisa P. Jackson and founding co-chair of the Waukegan Citizens' Advisory Group in the early 1990s. "Last year, federal agencies announced they were prioritizing the Waukegan Harbor cleanup and this year we are making good on that commitment."


Enacted by Congress in 1980, Superfund is a federal law that was designed to clean up sites contaminated with hazardous substances. EPA's $48 million Superfund dredging project is an important step toward the cleanup of the Waukegan Harbor, one of four cleanup projects associated with the Outboard Marine Corp. (OMC) Superfund site.

EPA will remove approximately 175,000 cubic yards of PCB-contaminated sediment from the harbor. Dredging will begin later this month and is expected to be finished by next summer, a total of about 120 days.

Waukegan Harbor, the only AOC in Illinois, is one of 30 remaining AOCs in the U.S. In 2011, EPA Administrator Lisa P. Jackson targeted Waukegan as one of nine priority AOCs under the Great Lakes Restoration Initiative. The Administrator committed to finishing the cleanup of Waukegan Harbor by 2014. Since the United States and Canada identified the list of AOCs in 1987, only one on the U.S. side has been delisted.

"Illinois EPA is pleased to partner with U.S. EPA and the City of Waukegan in moving forward on this project that is a key step toward reaching the goal of Waukegan Harbor no longer being Illinois’ only designated Area of Concern on Lake Michigan," said Interim Illinois EPA Director John J. Kim.

"Waukegan Harbor has come a long way since contaminated sediment was first discovered here in 1975," said Senator Dick Durbin. "Upon this project’s completion, Waukegan’s fish will be healthier and its water cleaner, ramping up the community’s attractiveness as a place to live. The Great Lakes are one our nation’s greatest natural treasures and I am proud to have supported this effort to clean up Lake Michigan’s shoreline. Thanks to the State of Illinois and the Environmental Protection Agency for their efforts to ensure the waters around the harbor can support fish and wildlife for years to come."

"Today we mark the beginning of the end of a cleanup decades in the making," said Senator Mark Kirk. "Cleaning up Waukegan Harbor has been one of my top priorities since before I came to Congress in 2001, and we could not be here without the leadership of Cameron Davis and the members of the Waukegan Citizens Advisory Group. As co-chair of the Senate Great Lakes Task Force, I am fully committed to seeing this effort through its completion to ensure that Waukegan can transform the harbor into a powerful economic engine in northern Illinois."

"As Lake County’s gateway to Lake Michigan, a clean Waukegan Harbor is critical for our region’s commerce, environmental quality and recreation." said U.S. Representative Robert J. Dold. "The cleanup will save jobs, increase local property values, and leave a cleaner environment for future generations. I am proud to have been part of making this happen."

"When all is said and done the future of this community is greatly enhanced by the cleanup of the harbor and surrounding industrial facilities," said Waukegan Mayor Robert Sobanjian, Jr. "Once the process is completed, potential investors will be able to see past the old misperceptions of this community as a distressed blue collar community and see the great potential that the City of Waukegan has always held."

EPA placed the OMC site on its National Priorities List of Superfund sites in 1983 and has previously conducted cleanup work at this site. The OMC outboard-boat-motor manufacturing plant polluted Waukegan Harbor with PCBs.

In February 2009, President Obama proposed the Great Lakes Restoration Initiative, the largest investment in the Great Lakes in two decades. Since then, EPA has provided approximately $2 million in GRLI funding for habitat restoration projects and fish monitoring at the Waukegan Harbor AOC.

SEC CHARGES ASSET MANAGER WITH LYING TO INVESTORS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Charges Asset Manager Lied to Investors, Hid Major Losses While Boasting Remarkable Performance During Financial Crisis

09/07/2012 03:35 PM EDT
FOR IMMEDIATE RELEASE
2012-185

Washington, D.C., Sept. 7, 2012 – The Securities and Exchange Commission today announced an emergency enforcement action against an asset manager who has boasted remarkable investment success throughout the global financial crisis while allegedly exaggerating the value of the assets he manages and concealing major losses from investors.

The SEC alleges that Nikolai Battoo claims to manage $1.5 billion on behalf of investors around the world, including at least $100 million for U.S.-based investors. But contrary to Battoo’s proclaimed track record of exceptional risk-adjusted returns for his investors, he actually suffered major losses in 2008 due to his investments in the Bernard Madoff Ponzi scheme and a failed derivative investment program. Rather than admit the losses to investors, Battoo has been overstating the value of his investments in a variety of ways. By boasting benchmark-beating returns, he has continued to attract new investors. However, during the past several months, investors have requested redemptions on their investments with Battoo. Instead of paying them, Battoo has provided a series of excuses ranging from the MF Global collapse to others placing a hold on investors’ money due to government investigations.

In U.S. District Court for the Northern District of Illinois this week, the SEC sought and obtained a freeze of U.S.-based assets belonging to Battoo and two of his companies – BC Capital Group S.A. based in Panama and BC Capital Group Limited based in Hong Kong – in order to prevent additional harm to U.S. investors. In addition to Battoo and his companies, the SEC has charged Tracy Lee Sunderlage – an unregistered broker-dealer who was banned from the industry in a previous SEC enforcement action – for his involvement with Battoo’s investment program.

“Battoo attracted quite a following of investors by proclaiming his investments withstood the test of the financial crisis, but reality seems to have finally caught up with him,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “Now, Battoo is offering investors one excuse after another for holding their money hostage.”

According to the SEC’s complaint, Battoo’s financial empire is an amorphous syndicate of funds, entities, and affiliates. Battoo manages significant assets for companies that sell investment products to U.S. investors. Battoo also has investment proceeds channeled to him by a network of U.S.-based investment advisers. Battoo has created for clients individualized “portfolios” that he manages under a brand name Private International Wealth Management (PIWM). These portfolios consist of holdings in several hedge funds he manages, holdings in other hedge funds, and other investments.

The SEC’s complaint alleges that Battoo pitches himself as a highly successful alternative asset manager with a track record unblemished by the global financial crisis of 2008. Battoo hyped his purported success at a “due diligence conference” that he and Sunderlage sponsored for existing and prospective investors at the Four Seasons Hotel in Las Vegas in January 2009. A promotional material for that conference boasted, “How is it that PIWM-I can produce positive results or significantly reduce market losses when nearly everyone else is losing 35 to 50%?”

According to the SEC’s complaint, Battoo arranged for “asset verifications” in 2009 to reassure clients that their money was safe and secure following the market collapse. The asset verifications, however, contained false and backdated information. For example, they identify investments in at least seven hedge funds that Battoo did not manage. Battoo’s actual investments in these hedge funds amounted to about $9 million while his asset verifications falsely stated the investments to be worth approximately $33 million. Moreover, these asset verifications improperly included backdated investments that also inflated the value of the PIWM portfolios..

The SEC’s complaint alleges that while Battoo claimed success, he actually sustained particularly heavy losses in 2008. First, he was terminated as an investment adviser to the master fund of a large international bank, which terminated him from a “fund linked certificate” program through which Battoo-managed hedge funds collectively invested about $138 million. After Battoo’s termination, the net asset value of the hedge fund managed for the bank plummeted by nearly 50 percent, and Battoo’s losses on the fund linked certificates exceeded $100 million. The other major loss suffered by Battoo’s asset management business later that year flowed from Bernie Madoff’s Ponzi scheme, in which several Battoo-managed hedge funds were heavily invested. However, following Madoff’s arrest, Battoo assured his investors that the Madoff fraud had only a nominal or minimal impact on the portfolios. However, several Battoo-managed portfolios held substantial investments in hedge funds that fed into the Madoff scheme. In fact, Battoo had borrowed money to amplify the size of his Madoff investments. Battoo similarly concealed from investors the losses stemming from the fund linked certificates. Without knowledge of these substantial losses, investors have collectively invested tens of millions of dollars with Battoo since 2009.

According to the SEC’s complaint, once investors increasingly began seeking redemptions late last year, Battoo offered several false explanations for not paying them. Originally, Battoo claimed that the significant exposure of some of his investment portfolios to the MF Global liquidation prevented him from redeeming invesmtents. However, Battoo’s actual exposure to MF Global is only a small fraction of what he has claimed. More recently, Battoo has said that certain counterparties had frozen the assets he manages based on investigations by U.S. government agencies, and that his attorneys were negotiating a “release” with the SEC. Prior to filing this complaint, Battoo’s assets were not frozen and he was not negotiating any release with the SEC.

The SEC alleges that Sunderlage – who was charged and banned from the industry by the SEC for participating in an offering fraud in 1986 (SEC v. Sunderlage, et al., 86 C 6101 (N.D. Ill.)) – received commissions from the sale of investments and also received management fees for acting as the designated investment adviser to numerous client trusts that invested with Battoo. Sunderlage thus acted as an unregistered broker-dealer and investment adviser in violation of his industry bar.

The SEC alleges that Battoo and his companies violated Sections 17(a) of the Securities Act of 1933, Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934 (Exchange Act) and Rules 10b-5 thereunder, and Section 206(4) of the Investment Advisers Act of 1940 (Advisers Act) and Rule 206(4)-8 thereunder. The SEC alleges that Sunderlage violated Section 15(a)(1) and 15(b)(6)(B)(i) of the Exchange Act and Section 203(f) of the Advisers Act.

The SEC’s investigation, which is ongoing, has been conducted in the Chicago Regional Office by John D. Mitchell, Brian D. Fagel, Pesach Glaser and John T. Brodersen under the leadership of John J. Sikora, Jr. The SEC's litigation will be led by Jonathan S. Polish, Daniel J. Hayes, and Eric M. Phillips.

The SEC acknowledges the cooperation and assistance of the U.S. Commodity Futures Trading Commission (CFTC), which has filed charges against Battoo in a parallel action.

Weekly Address: Coming Together to Remember September 11th | The White House

Weekly Address: Coming Together to Remember September 11th | The White House

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY

120904-N-FE728-113 DETROIT (Sept. 4, 2012) The US Brig Niagara arrives at Renaissance Pier during the Navy'Äôs commemoration of the bicentennial of the War of 1812 in Detroit. This celebration coincides with Detroit Navy Week, one of 15 signature events planned across America in 2012. Niagara served as the relief flagship for Oliver Hazard Perry in the Battle of Lake Erie during the War of 1812. (U.S. Navy photo by Mass Communication Specialist 1st Class Todd A. Stafford/Released)

　

　
120902-N-KT462-122 PEARL HARBOR (Sept. 2, 2012) Sailors standby to perform a rifle volley during the 67th anniversary of the end of World War II aboard the Battleship Missouri Memorial. The ceremony marked 67 years since Gen. Douglas MacArthur and Fleet Adm. Chester Nimitz, along with other U.S. and Allied officers, accepted the unconditional surrender of the Japanese, ending World War II. (U.S. Navy photo by Mass Communication Specialist 2nd Class Jon Dasbach/Released)

EXTENDING PERMANENT NORMAL TRADE RELATIONS TO RUSSIA

Photo:  Cargo Ship.  Credit:  Wikimedia.

FROM: U.S. DEPARTMENT OF STATE

The Economic and Strategic Case for Extending PNTR to Russia

Remarks
William J. Burns
Deputy Secretary
U.S. Chamber of Commerce
Washington, DC
September 6, 2012
Thank you. It’s an honor to be here with Under Secretary Sanchez at the U.S. Chamber of Commerce. It’s an honor to be introduced by Susan Schwab, for whose service as U.S. Trade Representative I have great admiration, and who did so much during her tenure to advance American economic interests in Russia. And it’s an honor to speak to you briefly today about an issue that matters to all of us -- the economic and strategic argument for extending Permanent Normal Trade Relations (PNTR) to Russia.

I have spent a good deal of my checkered diplomatic career helping Administrations of both parties navigate the complexities of the U.S.-Russia relationship. I’ve seen moments of great promise in that relationship, as well as periods of sharp and sometimes abiding differences. Through it all, I’ve tried my best to keep focused on what’s at stake for America’s own interests, as well as for Russia’s long-term evolution. That sense of focus is not always easy to sustain amidst the push and pull of events in both our countries, and in the world around us, but it’s essential to understanding the importance of extending PNTR to Russia today.

This afternoon’s meeting is well-timed. Tomorrow night, Secretary Clinton will touch down in Vladivostok for the 2012 Asia-Pacific Economic Cooperation Summit where liberalizing trade is expected to be high on the agenda. This is the first time Russia has hosted APEC. But more importantly, Russia is convening this gathering as the newest member of another group: the World Trade Organization (WTO).

Russia’s membership in the WTO is a major milestone, reflecting the strong, persistent support of the last three U.S. Administrations. However, until Congress acts to extend PNTR to Russia, our businesses will be deprived of an unprecedented opportunity to boost trade with one of the largest and fastest growing markets in the world.

A vote to extend PNTR is not a favor to Russia. It is a vote to create and sustain jobs in the United States. PNTR legislation has attracted bipartisan support in both chambers of Congress and from leaders of states across the country. They have lined up to make clear that PNTR is a vital opportunity to keep our companies competitive and help create new, high-quality American jobs. Continuing to deny PNTR for Russia at this stage only hurts American companies and workers, who are facing fierce economic competition—in more sectors and from more places than ever before.

At a time when our leadership in the world depends on shoring up our economy at home, the potential upside to opening the Russian market to U.S. goods and services is considerable. Russia today is the 7th largest economy in the world, but only our 20th largest trading partner. Yet, for many U.S. states, exports to Russia are growing faster than exports to the rest of the world; in April alone, U.S. goods exports to Russia reached $1 billion, a new record level. The U.S. Department of Commerce estimates that at least 5,000 American jobs are supported for every $1 billion of U.S. exports.

But until the WTO Agreement applies between the United States and Russia, America’s competitors will enjoy more liberal treatment for exports of goods and services and stronger commitments on protection of intellectual property rights--American companies will not. Until the WTO Agreement applies between us, Russia will be under no obligation to apply science based food safety standards to U.S. agricultural exports, leaving poultry and beef producers in Delaware, Arkansas, and Montana vulnerable. And until the WTO Agreement applies between us, we will not have the same recourse as our competitors to the WTO’s binding dispute resolution mechanism to ensure that Russia complies with its WTO commitments.

Failing to lift Jackson-Vanik and extend PNTR will not penalize Russia, nor will it provide an effective lever to change the Russian Government’s behavior. However, extending PNTR is a smart strategic investment that over the long term can help create a better, more predictable partner for the United States and contribute to Russian efforts to build a more transparent and accountable political and economic system.

Russia today is very much at a crossroads. As demonstrations across Russia over the last nine months have reminded us, a growing number of Russians both in and out of government want to see their country develop into a modern state with a diverse and competitive economy. But those determined Russians, many from the emerging middle class, are not only driven by a thirst for economic prosperity, but for a voice in how decisions are made in their society—for the predictability and accountability that come with rule of law.

While we do not expect change to occur overnight, this is a trend-line that is increasing in pace--and one we should support. Extending PNTR and thereby increasing U.S. trade with Russia can strengthen the hand of Russians who want an outward-looking society and an economy that depends more on the innovativeness and resourcefulness of its people, rather than on resources pulled out of the ground. It can also provide positive reinforcement to those working to create a level playing field, with transparent, predictable rules to serve as a hedge against corruption and further Russia’s political modernization. These are not just my own views. They are the arguments of some of the Kremlin’s harshest critics who have called on the United States to terminate Jackson-Vanik. That does not diminish their deep concerns about human rights and the Magnitskiy case–concerns which we strongly share.

Neither WTO membership nor extending PNTR to Russia can instantly create the kind of change the Russian people are seeking. PNTR should be one part of a stronger and fuller rule of law framework that we pursue with Russia, combined with the investment protections that would come with a new Bilateral Investment Treaty and implementation of the OECD Anti-Bribery Convention, which Russia joined earlier this year. These steps will not transform Russia’s economy overnight. But they will help integrate Russia into the global economy and send strong signals to investors about Russia’s commitment to strengthening rule of law.

As I said earlier, I’ve learned in many years of helping to navigate U.S.-Russian relations that we have to be realistic about the challenges which lie ahead.

We have serious and enduring differences with Russia that PNTR will not change. We continue to disagree fundamentally about Georgia, whose sovereignty, territorial integrity, and independence we firmly support. We also disagree fundamentally about Syria, where no stable outcome is possible as long as Bashar al-Asad remains in power, shedding the blood of his own people and risking a spillover of sectarian violence in a region that already has more than its share of troubles. Russia must make a choice here in determining where its interests lie. In the meantime—with Russia’s help or without it—we will continue to work with others in the international community to seek an end to the violence and to develop concrete steps to support a real political transition that advances the processes of reform, reconciliation, and reconstruction.

We also have profound differences with Russia over human rights. We want to see Russia emerge as both a global power and a vibrant democracy with strong rule of law. And we are seeing a new generation of Russians asking important questions of their own leaders. Without an active and independent media, how will Russia succeed in rooting out corruption and its debilitating effects on the economy? How will Russia build a modern political system responsive to modern challenges unless its citizens and activists can freely express dissenting views, without fear of political prosecution? How can Russia strengthen accountability in governance when whistleblowers like Sergey Magnitsky are arrested or killed for pointing out fraud and abuse? What will Russia do to develop a strong, capable civil society when NGOs receiving foreign funds are stigmatized with misleading labels?

While we cannot and should not impose American solutions, we can and do support those Russians who are seeking answers to these tough questions about their nation’s future. We are already taking concrete steps, using existing restrictions on human rights abusers, to ensure that no one implicated in the death of Sergey Magnitsky can travel to the U.S. We will also continue to support programs that bolster Russia’s civil society and strengthen the hand of those seeking a freer and more open and democratic future for Russia.

By now it should be clear, this is not a simple or easy relationship. Given the complexities and hard work involved, it may be tempting to downplay Russia’s importance. We do not have that luxury. Russia is a permanent member of the UN Security Council and one of the world’s largest nuclear powers, and it will remain profoundly in America’s interest to work with Russia where our interests overlap. Already over the last three years we have shown that we can achieve significant results, including on reductions of strategic nuclear weapons and on Afghanistan, where Russia has proven itself a valued partner in ensuring the safe transit of our personnel and equipment to the region. With PNTR, we hope to add expanded trade to this list.

We are encouraged that committees in the Senate and the House have passed PNTR legislation with broad bipartisan support. We also understand that it is likely that a PNTR bill will be considered by both chambers of Congress along with legislation addressing the tragic case of Sergey Magnitskiy. We continue to believe that the case for extending PNTR to Russia stands on its own merits. And, in close consultation with Congress, we will continue to seek out the most effective avenues to address the Magnitskiy case and human rights more broadly.

The economic and strategic stakes are clear. And so is the choice before Congress. Either give Americans the chance to compete on a level playing field in an important market—or we can ensure that the opportunities we worked so hard to create are seized not by Americans, but by workers and businesses beyond our shores. We urge Congress to take action as soon as possible.

Thank you again for the opportunity to meet with you today. Thank you for all your efforts on this important issue. And thank you for everything that the U.S. Chamber does to help ensure that Americans understand the growing connection between economic renewal at home and opening up new markets and new possibilities overseas. I look forward very much to continuing to work with you in that enormously important mission. Thank you.

CEO OF PUBLIC RELATIONS FIRM CHARGED BY SEC WITH INSIDER TRADING

FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., Sept. 5, 2012 – The Securities and Exchange Commission today charged the CEO of a Los Angeles-based public relations firm with insider trading on nonpublic information she learned from a client that was about to acquire a bank in a deal assisted by the Federal Deposit Insurance Corporation (FDIC).

The SEC alleges that Renee White Fraser and her firm Fraser Communications were contacted by Pasadena-based East West Bancorp (EWBC) for marketing and public relations support during its acquisition of San Francisco-based United Commercial Bank. The very next day after agreeing to take on EWBC as a client, Fraser bought 10,000 shares of EWBC stock. She sold all of her shares after EWBC’s stock price jumped 55 percent after the public announcement of the acquisition.

Fraser agreed to settle the SEC’s charges by paying $91,530.36, which is more than double what she gained in illegal profits from her alleged insider trading.

"Fraser’s client entrusted her with highly sensitive nonpublic information, and she tried to turn that into a quick side profit," said Michele W. Layne, Director of the SEC’s Los Angeles Regional Office. "Consultants in public relations or any career field cannot exploit their client relationships for an illegal payday in the stock market."

According to the SEC’s complaint filed in U.S. District Court for the Central District of California, EWBC contacted Fraser Communications on Oct. 14, 2009, and shared material, nonpublic information about its upcoming FDIC-assisted transaction for the confidential corporate purpose of allowing Fraser and her employees to prepare marketing and public relations materials ahead of that acquisition. EWBC formally engaged Fraser’s firm on October 15 to assist EWBC with public relations work.

The SEC alleges that Fraser, who lives in Santa Monica, purchased 10,000 EWBC shares on October 16 after learning the previous day about the impending EWBC-United Commercial Bank transaction. EWBC announced the acquisition of United Commercial Bank’s banking operations on November 6. Fraser proceeded to sell 7,500 of her EWBC shares on November 10, the second trading day after the announcement. She sold the remaining 2,500 shares on June 24, 2011, for total combined profits of $43,868.

In settling the SEC’s charges without admitting or denying the allegations, Fraser agreed to pay $43,868 in disgorgement, $3,794.36 in prejudgment interest, and a $43,868 penalty. She consented to a permanent injunction from further violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. Fraser also agreed to a permanent bar prohibiting her from serving as an officer or director of a public company.

The SEC’s investigation was conducted by Wendy E. Pearson and Finola H. Manvelian in the Los Angeles Regional Office. The SEC acknowledges the assistance of Financial Industry Regulatory Authority (FINRA).

CDC WORKS TO HELP AMERICANS CONTROL THEIR BLOOD PRESSURE

FROM: U.S. CENTERS FOR DISEASE CONTROL
Million Hearts Launches New Educational Program to Improve Americans' Blood Pressure Control

Team Up. Pressure Down. encourages pharmacist-patient engagement
Customers at drugstores around the nation can get help to improve blood pressure control, through a collaboration among pharmacists, the U.S. Department of Health and Human Services, and other partners. The program, "Team Up. Pressure Down.," includes educational videos, a blood pressure control journal, and wallet card to track medication use.

The blood pressure initiative, part of the Million Hearts health education program and supported by the Affordable Care Act, was developed by the Centers for Disease Control and Prevention with practicing pharmacists and national pharmacist groups. The initiative’s tools will help pharmacists talk about current medications and ways in which patients can use the medications most effectively. The goal of Million Hearts is to prevent 1 million heart attacks and strokes by 2017.

"This valuable Million Hearts initiative will prevent heart attacks and strokes by bringing pharmacists into the care team to help patients control their blood pressure. Pharmacists are able to talk to patients and families about using medication to manage, high blood pressure, and they can also help patients address barriers to taking their medication," said Surgeon General, Regina M. Benjamin, MD.

In May, the Community Preventive Services Task Force, an independent, nonfederal, uncompensated body of public health and prevention experts, whose members are appointed by the Director of CDC, recommended team-based care—uniting the efforts of physicians, pharmacists, nurses, and other health care professionals—to improve blood pressure control. Its recommendation followed a review of evidence from more than 70 scientific publications.

"More than 36 million Americans, or more than half of those with hypertension, don’t have their blood pressure under control and every single day, more than one thousand Americans have a heart attack or stroke," said Janet Wright, M.D., a board-certified cardiologist and executive director of Million Hearts. "Through the ``Team Up. Pressure Down.’’ educational program for pharmacists, we are taking the first step in helping many more Americans achieve blood pressure control."

"Our organization trains the next wave of young pharmacists who are committed to making a difference in patients’ lives," said William Lang, M.P.H., vice president for policy and advocacy, American Association of Colleges of Pharmacy. "`Team Up. Pressure Down.’ recognizes and supports the critical role of pharmacists in improving blood pressure control through team-based care."

"`The Team Up. Pressure Down’. program will help pharmacists in any setting talk to their patients about the importance of staying on blood pressure medications and coach them on how to control hypertension," said Carolyn C. Ha, Pharm.D., director, professional affairs, National Community Pharmacists Association.

The materials can be tailored for any pharmacy setting. Continuing pharmacy education credit is available for pharmacists who participate.

Practicing pharmacists, pharmacist groups, and consumer groups actively participated in the development of the program over the past year. Contributing organizations included Academy of Managed Care Pharmacy, American Association of Colleges of Pharmacy, American College of Clinical Pharmacy, American Heart Association, American Pharmacist Association Foundation, Blue Ridge Mountain Group, Cardinal Health, Center for Medicare & Medicaid Services Innovation Center, Community Pharmacy Foundation, Compliant Pharmacy Alliance, Creative Pharmacist Healthy Heart Club, Indian Health Service, National Alliance of State Pharmacy Associations, National Association of Drug Store Chains, National Community Pharmacists Association, National Consumer League, Pharmacy Quality Alliance, PharmaSmart, University of Iowa School of Pharmacy, University of Maryland School of Pharmacy, USPHS/Pharmacist Professional Advisory Committee, WomenHeart.

For more information on public and private support for Million Hearts visit: http://millionhearts.hhs.gov/partners.shtmlHYPERLINK "http://www.cdc.gov/Other/disclaimer.html".

U.S. AIR FORCE PHOTOS

FROM: U.S. AIR FORCE
Guardians at the gate

Airman 1st Class Willie Fox, inspects a vehicle at the contractor gate of Kirtland Air Force Base, N.M., Aug. 28, 2012. Fox is with the 377th Security Forces Squadron. (Air Force photo by Ken Moore)

Moving into position

Two F-16 Fighting Hornets from 148th Fighter Wing out of Duluth, Minn., prepare to fly in formation behind the boom of a KC-135R Stratotanker from the 128th Air Refueling Wing after being mid-air refueled on August 15, 2012. Air National Guardsmen nominate their civilian employer(s) to witness an air refueling mission as a measure of thanks for the support their employers give to the Air National Guard and the guardsmen. (Air Force photo by Staff Sgt. Jeremy Wilson)

Aiming for fuel

An F-22 Raptor from Tyndall Air Force Base, Fla., moves into position behind a KC-135 Stratotanker from Altus AFB, Okla., during an air refueling, Aug. 21, 2012.The F-22 was refueled outside of New York in support of the Brooklyn Cyclone flyover during Air Force Week. (Air Force photo by Airman 1st Class Kenneth W. Norman)

INSIDER THREAT RESPONSE IN AFGHANISTAN

Photo:  Army Lt. Gen. James L. Terry.  Credit:  DOD
FROM: U.S. DEPARTMENT OF DEFENSE

ISAF Senior Leader Outlines 'Insider Threat' Response
By Karen Parrish
American Forces Press Service

WASHINGTON, Sept. 5, 2012 - Coalition forces and Afghan government leaders are attacking the issue of insider threats in Afghanistan on several levels, a top commander in the NATO-led International Security Assistance Force said today.

Army Lt. Gen. James L. Terry, commander of ISAF Joint Command, spoke with Pentagon reporters via satellite from the Afghan capital of Kabul.

Insider attacks, which have cost 45 ISAF lives so far this year, occur when an Afghan soldier or policeman, or an enemy impersonating one, deliberately kills or injures a coalition member. Terry told reporters the degree of insurgent involvement in such attacks varies.

"I sense these actions are driven by fear of an increasingly stronger and more capable Afghan national security force ... [as the] insurgency is continuously degraded and discredited," the general said.

Afghanistan's army and police forces and the nation's leaders, from President Hamid Karzai through the Interior and Defense ministries and down to provincial and district governor levels, are "seized by" the issue and committed to stopping it, Terry said.

Terry offered his condolences to the families of those who have been killed in the attacks. "We will never let them be forgotten," said.

The general said the rise in attacks over the summer may reflect the adaptive nature of an enemy whose bombing, assassination and intimidation campaigns are turning Afghanistan's people against the insurgency. "The reality is we're going to face this," he said.

An Afghan Defense Ministry spokesman announced today that hundreds of Afghan soldiers have been detained or removed from service. Terry said while he has not yet heard the particulars about those actions, the Afghan Interior and Defense ministries seek to limit insider attacks by examining their recruiting procedures and looking for ways to vet possible recruits more closely.

He noted the coalition is helping in the effort, analyzing data on past insider attacks to determine trends and identify threat factors. With that information, plus the ministries' findings, "we can better focus our vetting and screening efforts," the general said. "In other words, go back in and look at specific populations that we think are at risk."

The eight-step vetting process for recruits includes background and criminal checks, medical and drug screening, interviews and references, Terry said. The Afghan ministries are examining those processes to ensure they're as secure and verifiable as possible, he added.

"In addition to that, they're looking at increased efforts to improve the living conditions for their soldiers," the general noted, "and also how they prepare their soldiers for leave periods, and then specifically how they address those soldiers once they return from leave."

Terry said his own Army experience tells him soldiers are most vulnerable to outside influence when they're away from their units, and he suggested Afghan military leaders consider leave periods as critical for their attention.

Another initiative, he said, is a counterintelligence program that places people trained in countering insider attacks "inside of the formations, so that we can identify some of this threat before it actually materializes out there."

Terry said some 25 percent of insider attacks since 2007 have involved either direct enemy planning or insurgent support to an attacker. Some of the remaining attacks are personally motivated by things such as perceived insults, he added, noting the overall issue features some cultural factors coalition leaders also are examining.

"I would just say that what we all recognize is that this is society that's really been traumatized by 30-plus years of war," Terry said. "It also has a gun culture."

In Afghan culture, resolving grievances and disputes often involves "the barrel of a gun," he said.

"As we look toward cultural sensitivity ... and greater understanding of the culture and of the religion, I think we also have to understand what this country and what this population [have] gone through over time," Terry said.

Because of cultural attitudes toward social factors such as friendship and hospitality, Terry said, "I fundamentally believe, ... and this is based on my experience of three tours over here, ... that [the] closer you are in terms of relationship and friendship with the Afghan partners, probably the safer you are."

Within their own ranks, ISAF forces are emphasizing cultural sensitivity training and building relationships with Afghan partner forces, Terry said.

Meanwhile, Afghan units are gaining strength and capability, he said, noting Afghanistan's army and police forces are getting close to 350,000 people fielded.

"I don't, frankly, see that slowing down," he said.

SMALL DRINKING AND WASTEWATER SYSTEMS TO RECEIVE $15 MILLION IN ASSISTANCE

Photo Credit:  U.S. EPA.
FROM: U.S. ENVIRONMENTAL PROTECTION AGENCY
EPA Awards $15 Million to Assist U.S. Small Drinking Water and Wastewater Systems

WASHINGTON – The U.S. Environmental Protection Agency has awarded nearly $15 million in funding to provide training and technical assistance to small drinking and wastewater systems – those serving fewer than 10,000 people – and to private well owners. The funding will help provide training and tools to improve small system operations and management practices, promoting sustainability and supporting EPA’s mission to protect public health and the environment.

"Small systems form the backbone of our nation’s public water system and it is a priority for EPA to help them to meet water quality standards and provide clean water to communities," said Nancy Stoner, EPA Acting Assistant Administrator for Water. "This funding and technical assistance is part of EPA’s continuing efforts to promote sustainability and public health protection for communities served by small systems."


EPA awards include:
Nearly $7 million to the National Rural Water Association and nearly $3 million to the Texas Engineering Extension Service, which together will provide training and technical assistance for small public water systems across the country to achieve and maintain compliance with the Safe Drinking Water Act;
$2.5 million to New Mexico Environmental Finance Center to help small systems improve their financial and managerial capabilities that will enable these systems to effectively provide safe drinking water over the long-term;
$2 million to the Rural Community Assistance Partnership to work with small publicly-owned wastewater systems on treatment and operations issues and to help private well owners;
$500,000 to the Rural Community Assistance Partnership to provide training and technical assistance to tribally-owned and operated public water systems.
More than 97 percent of the nation’s 157,000 public water systems serve fewer than 10,000 people, and more than 80 percent of these systems serve fewer than 500 people. Many small systems face unique challenges in providing reliable drinking water and wastewater services that meet federal and state regulations. These challenges can include a lack of financial resources, aging infrastructure, management limitations and high staff turnover.

MASTER OF MALWARE SENTENCED TO PRISON

FROM: THE U.S. DEPARTMENT OF JUSTICE
Thursday, September 6, 2012

Arizona Man Sentenced to 30 Months in Prison for Selling Access to Botnets

WASHINGTON – Joshua Schichtel, 30, of Phoenix, was sentenced today to 30 months in prison for selling command-and-control access to and use of thousands of malware-infected computers, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the District of Columbia Ronald C. Machen Jr.

Schichtel was sentenced by Chief U.S. District Judge Royce C. Lamberth in the District of Columbia. In addition to his prison term, Schichtel was ordered to serve three years of supervised release.

Schichtel entered a guilty plea on Aug. 17, 2011, to one count of attempting to cause damage to multiple computers without authorization by the transmission of programs, codes or commands, a violation of the Computer Fraud and Abuse Act.

According to court documents, Schichtel sold access to "botnets," which are networks of computers that have been infected with a malicious computer program that allows unauthorized users to control infected computers. Individuals who wanted to infect computers with various different types of malicious software (malware) would contact Schichtel and pay him to install, or have installed, malware on the computers that comprised those botnets. Specifically, Schichtel pleaded guilty to causing software to be installed on approximately 72,000 computers on behalf of a customer who paid him $1,500 for use of the botnet.

This case was investigated by the Washington Field Office of the FBI. The case is being prosecuted by Corbin Weiss, Senior Counsel in the Criminal Division’s Computer Crime and Intellectual Property Section and Special Assistant U.S. Attorney for the District of Columbia.

U.S. STATE DEPARTMENT REVOKED TERRORIST DESIGNATION FOR NEPAL'S COMMUNIST PARTY

Map Credit:  U.S. State Department.
FROM: U.S. DEPARTMENT OF STATE
Delisting of the Communist Party of Nepal (Maoist)
Media Note
Office of the Spokesperson
Washington, DC
September 6, 2012

The Department of State has revoked the designation of the Communist Party of Nepal (Maoist) (CPN(M)) and its aliases as a Specially Designated Global Terrorist entity under Executive Order 13224, and as a "terrorist organization" from the Terrorist Exclusion List (TEL) under the Immigration and Nationality Act (INA). With these actions, the CPN(M)’s property and interests in property in the United States or within the possession or control of U.S. persons will no longer be blocked, and U.S. entities may engage in transactions with CPN(M) without having to obtain a license.

After a thorough review, the Department has determined that the CPN(M) is no longer engaged in terrorist activity that threatens the security of U.S. nationals or U.S. foreign policy. Additionally, in recent years, the Maoist party has been elected as the head of Nepal’s coalition government, has taken steps to dismantle its apparatus for the conduct of terrorist operations, and has demonstrated a credible commitment to pursuing the peace and reconciliation process in Nepal. Today’s delisting does not seek to overlook or forget the party’s violent past, but rather looks ahead towards the party’s continued engagement in a peaceful, democratic political dialogue in Nepal.

This delisting reflects the United States’ resolve to keep our terrorism sanctions current and demonstrates that a group need not stay on a terrorist list forever should it demonstrate a credible commitment to pursuing peace and reconciliation.

　

ADDITIONAL BACKGROUND: FROM U.S. STATE DEPARTMENT

NEPAL GOVERNMENT AND POLITICAL CONDITIONS
A 10-year Maoist insurgency--punctuated by cease-fires in 2001, 2003, 2005, and 2006--began in 1996. After King Gyanendra announced the reinstatement of Parliament on April 24, 2006, the Maoists declared a 3-month unilateral cease-fire on April 26, 2006 which the new Koirala government reciprocated on May 3, 2006. The Seven-Party Alliance (SPA) and the Maoists signed five agreements, culminating in the comprehensive peace agreement of November 21, 2006, effectively ending the insurgency. However, Maoist violence and intimidation continued in spite of the agreement.

The main agenda of the SPA and the Maoists was to hold a Constituent Assembly election, with the primary responsibility of drafting and promulgating a new constitution defining the future political system in Nepal. The interim constitution, adopted on January 15, 2007, expressed full commitment to democratic ideals and norms, including competitive multi-party democracy, civil liberties, fundamental human rights, adult enfranchisement, periodic elections, press freedom, an independent judiciary, and the rule of law. The interim constitution also guaranteed the basic rights of Nepali citizens to formulate a constitution for themselves and to participate in the Constituent Assembly in an environment free from fear. The interim constitution transferred all powers of the King as head of state to the prime minister and stripped the King of any ceremonial constitutional role. Under the interim constitution, the fate of the monarchy was to be decided by the first meeting of the Constituent Assembly. The interim Parliament was a unicameral house.

After promulgation of the interim constitution, many socially marginalized ethnic communities, including the Madhesis of the lowland Tarai, began widespread protests against the proposed proportional representation system incorporated in the new constitution. Bandhs (general strikes) and protests sometimes turned violent, with clashes between police and demonstrators leading to dozens killed and injured. The government eventually agreed to increase the number of directly elected representatives from the Tarai and implement quotas ensuring representation of women, Madhesis, janajatis, and other groups facing discrimination. Constitutional amendments regarding representation were adopted in March and June 2007. The government signed further agreements with Madhesi and janajati groups agreeing to inclusion in government bodies and institutions as well as commitments to address other issues in August 2007, but those remained to be fully implemented.

Five Maoist ministers were appointed to the Nepali Congress-led cabinet on April 2007. The ministers submitted their resignations on September 18, 2007 over the issue of declaring Nepal a republic and adoption of fully proportional representation system for the Constituent Assembly election. After compromise agreements on these issues were reached--having the interim Parliament declare Nepal a republic but letting the CA implement the measure, and adoption of a mixed electoral system--the constitution was amended again and the Maoist ministers were reinducted on December 31, 2007.

Twice deferred, Nepal's Constituent Assembly election was finally held on April 10, 2008. None of the parties succeeded in getting a simple majority in the CA. The Communist Party of Nepal-Maoist won 218 out of 575 elected seats, followed by the Nepali Congress with 109 seats, the Communist Party of Nepal-United Marxist Leninist with 103 seats, and the Tarai-based Madhesi People's Rights Forum with 50 seats. Six constituencies needed to hold by-elections, five due to one candidate having won two directly elected seats and one due to the newly elected President resigning his seat. The appointed seats were distributed across the parties in the following manner: Maoist 9, NC 5, UML 5, MPRF 2, SP 1, CPN-Marxist Leninist 1, People’s Front Nepal 1, Nepal Workers and Peasants Party 1, and TMDP 1.

The final list of members elected under the proportional representation system was released on May 8, 2008. The members of the Constituent Assembly were sworn in on May 27, 2008, and the first session of the CA was convened on May 28, 2008. In this session, the CA voted to declare Nepal a federal democratic republic by abolishing the monarchy. Out of 564 members of the CA who voted, 560 voted in favor and 4 against the motion.

While the CA has the prime responsibility of drafting a new constitution for Nepal, it also functions as a regular Parliament. Through the fourth amendment to the interim constitution of Nepal on May 28, 2008, the CA also established, for the first time, a largely ceremonial President as the constitutional head of state, as well as a Vice President. The Prime Minister continues to be the head of the government.

Nepal's judiciary is legally separated from the executive and legislative branches and, in practice, has increasingly shown the will to be independent of political influence. However, by asserting executive control over the judiciary, the interim constitution called into question this independence. Under the interim constitution, the Prime Minister appoints the Chief Justice on the recommendation of the Constitutional Council, and the Chief Justice appoints other judges on the recommendation of the Judicial Council. All lower court decisions, including acquittals, are subject to appeal. The Supreme Court is the court of last appeal.

In August 2008, Prime Minister Pushpa Kamal Dahal (Maoist) was sworn in as Prime Minister. Less than a year into his term, Prime Minister Dahal resigned from the government on May 4, 2009 following a dispute over his bid to dismiss the Chief of the Army Staff. On May 23, members from 22 of the 24 political parties represented in the Constituent Assembly elected veteran Communist Party of Nepal-United Marxist Leninist (UML) leader Madhav Kumar Nepal as Prime Minister. Madhav Kumar Nepal was sworn in on May 25, 2009. On June 30, 2010, Prime Minister Nepal announced his resignation "for the sake of consensus" and to end the country's political deadlock following months of Maoist protests. On February 3, 2011, after 16 rounds of voting, Jhala Nath Khanal (UML) was elected Prime Minister; however, 6 months later on August 14, 2011 Khanal resigned from the government, citing the failure to make significant progress on the peace process. On August 29, 2011, Baburam Bhattarai (Maoist) was sworn in as Nepal's 35th Prime Minister, and the fourth Prime Minister since the 2008 CA election.

Human Rights
Since political reform began in 1990, some progress has been achieved in the transition to a more open society with greater respect for human rights; however, substantial problems remain. Poorly trained police sometimes use excessive force in quelling demonstrations. In addition, there have been reports of torture during detention and widespread reports of custodial abuse. In 2000, the government established the National Human Rights Commission (NHRC), a government-appointed commission with a mandate to investigate human rights violations. However, the government continues to stall in implementing the commission's recommendations and has not been able to enforce accountability for recent and past abuses. The King's February 2005 dismissal of the government, subsequent imposition of emergency rule and suspension of many civil rights--including freedom of expression, assembly, and privacy--was a setback for human rights in Nepal. During this 3-month period, censors were deployed to major newspapers, and many political leaders were kept under house arrest. The King's government restricted the media from publishing interviews, articles, or news items against the spirit of the royal proclamation of February 1, 2005 or in support of terrorist or destructive activities. The reinstated government, led by Prime Minister Koirala, reversed these decisions in May 2006. The interim constitution promulgated on January 15, 2007 ensured unrestricted freedom of expression and made the NHRC a constitutional body.

Both the Maoists and security personnel have committed numerous human rights violations. The Maoists used tactics such as kidnapping, torture, bombings, intimidation, killings, and conscription of children. Within the Nepalese security forces, violations ranged from disappearances to executions. After the royal takeover on February 1, 2005 and subsequent imposition of the state of emergency, the security forces arrested many political leaders, student leaders, journalists, and human rights activists under the Public Security Act of 1989, although all were released by June 2005 when the King ended the state of emergency.

After the April 2006 cease-fire announced by the government and the Maoists, incidents of human rights violations by the government declined substantially while incidents of human rights violations by the Maoists continued relatively unabated. Even after signing a comprehensive peace agreement with the government in November 2006, Maoists' extortion, abduction, and intimidation remained largely unchecked. Although activities by other political parties have increased significantly in the rural parts of Nepal, political party representatives, police, non-governmental organization (NGO) workers, and journalists reported continuous threats and intimidation by Maoist-affiliated Young Communist League (YCL), Maoist-affiliated All Nepal National Free Students Union (ANNFSU), UML-affiliated Youth Force (YF), UML-affiliated Youth Action Nepal (YAN), or Nepali Congress-affiliated Tarun Dal cadres. During the January-February 2007 uprising in the Tarai, reports of government security forces using excessive force to quell demonstrations were common.

Major daily English-language newspapers include "The Kathmandu Post," "The Himalayan Times," "Republica," and "The Rising Nepal." The last and its vernacular sister publication are owned by a government corporation. There are hundreds of smaller daily and weekly periodicals that are privately owned and of varying journalistic quality. Views expressed since the 1990 move to democracy are varied and vigorous. There are 394 (334 in use) FM radio and 32 (19 in use) television licenses for privately owned and operated stations, following liberalization of licensing regulations. Radio Nepal and Nepal Television are government-owned and operated. There are over 700 cable television operators nationwide, and satellite dishes to receive television broadcasts abound. Internet penetration in Nepal is approximately 4% of the population. Despite its prominence, the Nepali press is still frequently subject to violence and intimidation by political groups.

Trafficking in women and child labor remain serious problems, but some improvement has been seen; in addition, the founder of a U.S.-backed anti-trafficking organization, Maiti Nepal, won the 2010 CNN Hero award. According to the State Department's 2011 Trafficking in Persons Report, Nepal is mainly a source country for men, women, and children who are subjected to forced labor and sex trafficking. While Nepal is primarily a source country for destinations like India and the Middle East, internal trafficking is also a prominent issue. Lack of prosecution and police complicity in trafficking cases remain major problems. Discrimination against women and lower castes is prevalent.

RECENT U.S. NAVY PHOTOS

FROM: U.S. NAVY

120823-N-DA827-041 EGLIN AIR FORCE BASE, Fla. (Aug. 23, 2012) Congressman Jeff Miller discusses a remote controlled Talon EOD robot with Senior Chief Explosive Ordnance Disposal Joseph Severino, the Improvised Explosive Device Division non-commissioned officer in charge, while on a tour at Naval School Explosive Ordnance Disposal. The school, located at Eglin Air Force Base, Fla. provides high-risk, specialized, basic and advanced EOD training to over 2,200 U.S. and partner nation military and selected U.S. government personnel each year. (U.S. Navy photo by Ensign Elizabeth Allen/Released)

120904-N-CH661-012 ARABIAN SEA (Sept. 4, 2012) An EA-6B Prowler assigned to the Rooks of Electronic Attack Squadron (VAQ) 137 is the 100,000th launch from catapult three aboard the aircraft carrier USS Enterprise (CVN 65). Enterprise is deployed to the U.S. 5th Fleet area of responsibility conducting maritime security operations, theater security cooperation efforts and support missions as part of Operation Enduring Freedom. (U.S. Navy photo by Mass Communication Specialist 3rd Class Jared King/Released)

TAKING THE 'POLAR BEAR PLUNGE'

FROM:  U.S. AIR FORCE
09/4/2012 - THULE AIR BASE, Greenland – Icebergs float on the horizon as 821st Air Base Group Airmen hold a polar bear swim Aug. 4 and 26 at the Thule AB Tug Boat Beach. The air temperature was 51 degrees, while the water was a scant 41 degrees. "It was a really unique experience," said a chilled Staff Sgt. Neal Thompson, 821st Air Base Group Knowledge Operations Management. "It was definitely something that a lot of people are unable to do," he said referring to his newly-earned title of Polar Bear. Thule AB is one of the six installations operated by the 21st Space Wing, and is located 750 miles north of the Arctic Circle. (U.S. Air Force photo/ Staff Sgt. Laura Vargas)

WATCH OUT FOR TURTLES

FROM: U.S. CENTERS FOR DISEASE CONTROL

Digital Press Kit

Multistate Outbreaks of Human Salmonella Infections Linked to Small Turtles

Contact with reptiles (such as turtles, snakes, and lizards) and amphibians (such as frogs and toads) can be a source of human Salmonella infections. Salmonella germs are shed in the droppings of reptiles and amphibians and can easily contaminate their bodies and the water in tanks or aquariums where these animals live, which can spread to people.

The Food and Drug Administration (FDA) has banned the sale and distribution of turtles with a shell length of less than 4 inches since 1975. However, small turtles continue to cause human Salmonella infections, especially among young children.

CDC is collaborating with public health officials in multiple states and the FDA to investigate 6 overlapping, multistate outbreaks of human Salmonella infections linked to exposure to turtles or their environments (e.g., water from a turtle habitat). More than 160 illnesses have been reported from 30 states; 64 percent of ill persons are children age 10 or younger, and 27 percent of ill persons are children age one year or younger. Fifty-six percent of ill persons are Hispanic.

Key Messages
Don’t buy small turtles from street vendors, websites, pet stores, or other sources.
Keep reptiles out of homes with young children or people with weakened immune systems.
Reptiles should not be kept in child care centers, nursery schools, or other facilities with young children.
ALWAYS wash your hands thoroughly with soap and warm water immediately after touching a reptile or anything in the area where they live and roam. Use hand sanitizer if soap and water are not readily available. Adults should always supervise hand washing for young children.

INSIDER TRADING: HOW MOST PEOPLE BEOCOME EXTREMELY RICH

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION

SEC Charges Georgia Resident with Insider Trading
In August 28, 2012, the Securities and Exchange Commission filed a civil injunctive action in the Northern District of Georgia against C. Roan Berry ("Berry"). The Commission alleges that Thomas D. Melvin ("Melvin"), a Griffin, Georgia based CPA and friend of Berry’s, disclosed material non-public information about the pending tender offer for Chattem, Inc. ("Chattem") securities to Berry. The Commission also alleges that Berry tipped his next door neighbor, Ashley J. Coots. The Commission further alleges that Berry and Coots traded in the securities of Chattem based on that material non-public information.

According to the Commission’s complaint, on December 21, 2009, Sanofi-Aventis ("Sanofi"), a French pharmaceutical company, announced its intent to make a tender offer for Chattem, a Tennessee-based distributor of over-the-counter pharmaceutical products, at the price of $93.50 per share ("Announcement"). Shares of Chattem closed 32.60% higher on the day of the Announcement than the prior trading day’s close of $69.98 and volume increased more than 3,000% to 10.3 million shares.

The Commission alleges that in early December 2009, several weeks before the Announcement, an independent board member of Chattem who owned Chattem options that would automatically exercise in the event of an ownership change at Chattem, initiated a series of confidential conversations and meetings with his longtime accountant, Melvin, to discuss potential methods of ameliorating the effect of an acquisition of Chattem on his tax liability. The Chattem board member told Melvin sufficient facts such that, given Melvin’s knowledge of the board member’s affairs, Melvin would have clearly known that the board member was discussing Chattem. Melvin and the Chattem board member also discussed the price impact of the tender offer on the board member’s options.

The Commission further alleges that Melvin misappropriated material non-public information regarding the impending tender offer for Chattem securities. Within days of his first meeting with the board member, Melvin disclosed material non-public information about the impending tender offer to Berry. Berry traded in Chattem securities based on the material non-public information disclosed by Melvin, and Berry tipped Coots, who also traded.

Berry has agreed to settle the Commission claims against him by consenting to the entry of a final judgment providing permanent injunctive relief under Sections 10(b) and 14(e) of the Exchange Act of 1934 and Rules 10b-5 and 14e-3 thereunder, and by paying disgorgement of $55,091.51, prejudgment interest of $4,860.37, and a civil penalty of $55,091.51. Berry neither admits nor denies the Commission’s allegations, and his settlement is subject to court approval.

USDA ARTICLE ON HAND WASHING AND GETTING SICK

Photo Credit:  CDC
FROM: U.S. DEPARTMENT OF AGRICULTURE
WASHINGTON, September 5, 2012—Heading back to school means getting into a new routine. As moms and dads pack lunches for their kids before a busy day of class and extra-curricular activities, the U.S. Department of Agriculture's (USDA) Food Safety and Inspection Service (FSIS) encourages families to update their food safety routine and take precautions that will help prevent food poisoning in America's young students.

"Preventing foodborne illness is part of USDA's public health mission, but one in six Americans is still expected to get sick from the food they eat this year," Under Secretary for Food Safety Dr. Elisabeth Hagen said. "Back to school time provides an excellent opportunity for the whole family to brush up on food safety steps."

When it comes to food safety, are you an A+ student? This true or false quiz is based on real calls to USDA's Meat and Poultry Hotline, 1-888-MPHotline (1-888-674-6854). The hotline is open weekdays from 10 a.m. to 4 p.m. and is staffed by specialists who can answer consumers' questions about safely handling, cooking and storing food.

True or False: To effectively destroy germs on my hands, I need to wash them for 20 seconds.

True. Wash hands before and after handling food with soap and running water by rubbing hands together vigorously for at least 20 seconds. The mechanical action of rubbing your hands creates friction that helps dislodge bacteria and viruses. Warm or hot water is preferable to cold water because it helps dissolve fats and foods, aiding in microbe removal and the deactivation of pathogens. If soapy water is not available, use an alcohol-based hand sanitizer that contains at least 60 percent alcohol. Alcohol-based hand sanitizers can reduce the number of germs on hands in some situations, but sanitizers do not eliminate all types of germs, including viruses.

True or False: The "let stand" step of microwave meal instructions is only there so I don't burn myself.

False. If the food label says, "Let stand for x minutes after cooking," do not skimp on the standing time. Food continues to generate heat after the microwave is turned off, so letting your microwaved food sit for a few minutes actually helps your food cook more. That extra minute or two could mean the difference between a delicious meal and food poisoning. After waiting a few minutes, check the food with a food thermometer to make sure it is 165 °F or above.

True or False: I need to put some sort of cold source in my lunchbox.

True. Harmful bacteria multiply rapidly between 40 and
140 °F, so perishable food transported without an ice source will not stay safe long. Insulated, soft-sided lunch boxes or bags are best for keeping food cold, but pack at least two ice sources with perishable food in any type of lunch bag or box you use. You can use two frozen gel packs that are 5-by-3 inches or larger, or combine a frozen gel pack with a frozen juice box. When packing your bag lunch, place the ice sources above and below the perishable food items to keep them cold. If there is a refrigerator available at work or school, store perishable items there upon arrival. If you place your insulated bag in the refrigerator, leave the lid or bag open so that cold air can keep the food cold.

Some food is safe without a cold source. Items that do not require refrigeration include whole fruits and vegetables, hard cheese, canned meat and fish, chips, breads, crackers, peanut butter, jelly, mustard and pickles.

True or False: As long as it isn't topped with chicken or sausage, leftover pizza is safe to eat if unrefrigerated overnight.

False. Bacteria grow readily in carbohydrate-rich, cooked foods. While uncooked vegetables are safe to store at room temperature in their raw state, cooked foods such as casseroles, rice, pasta and pizza—whether or not the dish contains meat or poultry—must be refrigerated within two hours after cooking. The possibility of bacterial growth increases after cooking, because the drop in temperature allows bacteria to thrive. If a food has been left between 40 and 140 °F for more than two hours, discard it, even though it may look and smell okay. The kinds of bacteria that cause food poisoning do not affect the look, smell, or taste of food. Put leftover pizza in the refrigerator right away, and it will be safe to eat for three to four days.

Have Questions? Ask Karen!

The best cheat sheet—ahem, study partner—is USDA's virtual food safety representative, Ask Karen. Ask Karen is available 24 hours a day at www.AskKaren.gov or m.AskKaren.gov on your smartphone, with more than 1,300 food safety questions and answers searchable by topic and by product. The site is available in Spanish at www.PregunteleaKaren.gov and m.PregunteleaKaren.gov. The Mobile Ask Karen app, which has English and Spanish capabilities, can also be downloaded from the Apple and Android app stores.