Friday, March 7, 2014

PRESS GAGGLE WITH DEPUTY PRESS SECRETARY JOSH EARNEST

FROM:  THE WHITE HOUSE 

Press Gaggle with Principal Deputy Press Secretary Josh Earnest en route Florida

Aboard Air Force One
En Route Florida
12:17 P.M. EST  
MR. EARNEST:  This afternoon, the President and First Lady are headed to Coral Reef High School to talk about ensuring that as many students as possible fill out the financial aid forms that open the door to a college education.  Never before has a college education been as important as it is now in expanding opportunity and ensuring economic stability in this global economy. 
The First Lady has previously talked about efforts the administration has taken to simplify the financial aid form.  Today, the President will talk about an executive action that he'll take to better track which students have completed the form, which will assist efforts to encourage the families of students to do so.
And I'll also point out that any time you're going to a school whose mascot is the barracuda you know it's going to be an interesting afternoon.  So it should be kind of fun. 
With that, why don't we take some questions?
Q    Quick question -- the readout this morning on the President’s call to the Japanese Prime Minister, he talked about they agreed to work with other G7 countries to put pressure on Russia.  Does that reference signal the U.S. no longer views the group as the G8?  And if that's the case, what’s the latest on the President going to the previously scheduled so-called G8 summit in Sochi?
MR. EARNEST:  Jeff, as you know, what we have done is we've suspended our participation in meetings to prepare for the G8 meeting in Sochi.  The reference to the G7 is simply an indication of how united those seven countries are in our resolve to stand up for principles relating to territorial integrity and individual state sovereignty.  You’ve heard these seven countries speak with one voice on this issue and you’ve seen these seven countries demonstrate their resolve in considering a range of options to demonstrate that there will be costs associated with violating principles like this. 
So you saw the readout from the call that the President had with Prime Minister Abe, and Prime Minister Abe was of one mind with the President and the other members of the international community and the other members of the G7 on this issue.
Q    So Sochi, on or off?  If it continues, will the President go?
MR. EARNEST:  Well, I don't have any announcements to make about the President’s travel in June.  But I can tell you that there had been meetings, as there always is, in advance of the big meeting in June among the countries to prepare for meetings like that.  Our participation in those meetings has been suspended, and I think it would be logical for anybody to conclude that it raises significant questions about whether or not we’d participate in the meeting in June.
Q    I wanted to ask you about Senator Gillibrand’s sexual assault bill -- military sexual assault bill.  I don't remember the President ever coming out and saying where he stood on that bill.  Did he have a position on it?  And was it getting blocked in the Senate, was that something that the White House thought was okay or --
MR. EARNEST:  I'm going to have to pull some additional information for you, which I could get this afternoon, related to this.  It has been the administration’s position and you’ve heard the President speak very forcefully as the Commander-in-Chief about taking the kinds of steps necessary to address what is a persistent problem in our armed forces.  But in terms of our position on specific proposals to reform that system, let me get back to you on that.
Q    A quick one on Ukraine again.  Republicans have been pushing this plan to increase exports of natural gas.  Does the administration see that as some type of realistic option when it comes to helping overseas?
MR. EARNEST:  Let me start by saying this:  There are six licenses that have been approved by the Department of Energy related to the export of about 8.5 billion cubic feet per day of natural gas to a range of countries around the world.  What’s important for you to understand about those licenses that have already been issued is that the projects for delivering the product would not be completed until the end of next year.  So proposals to try to respond to the situation in Ukraine that are related to our policy on exporting natural gas would not have an immediate effect.
The other factor that’s important to understand about the situation is the current inventories of liquefied natural gas in Europe and in Ukraine are actually above traditional levels or above normal levels.  The reason for that is, unlike North America, they’ve had a relatively mild winter in Europe and the region.  So there is no indication currently that there’s much risk of a natural gas shortage in the region.
The other dynamic that factors into all this is that Russia prides itself on being a reliable supplier of natural gas to countries around the world -- I would say natural gas and other sources of energy to countries around the world.  Shutting off the natural gas would threaten that reputation -- it certainly would undermine it, not just in the eyes of Ukraine and Europe but in countries around the world.
Finally, it’s also important to recognize that Russia relies on revenue from exporting natural gas and other sources of energy.  Russia currently yields about $50 billion a year in revenue from exporting natural gas, so ending that kind of relationship with Europe would have significant financial consequences for Russia as well. 
So this is a complicated situation.  For a more detailed explanation of this complicated dynamic, I’d refer you to the Department of Energy.  But in terms of the top lines, the United States has a long relationship with Ukraine and has actually been talking about these energy issues for some time.  Vice President Biden traveled to Ukraine in 2009, and one of the items at the top of the agenda was efforts by the United States to work with Ukraine to help them reduce their dependence on Russian sources of energy, to help them reform their energy sector, to improve efficiency, to improve energy security in Ukraine.  So this is a complicated issue, one that we’ve been coordinating with the Ukrainians on for quite some time.
So I think that mostly answers your question, but for a more detailed answer, I’d refer you to the Department of Energy.
Q    Just related to that, did this come up in the call last night with the Prime Minister?  Because I know that it’s been really important for Japan to build a strong relationship with Russia for natural gas.  Was the President able to give any assurances to the Prime Minister about this?
MR. EARNEST:  I don’t want to get into a more detailed readout beyond what we issued last night and early this morning. But I will say that the executive order that the President issued yesterday put in place a structure where sanctions could be implemented.  As Jay discussed during the briefing, no specific organizations have been targeted at this point, but that process is underway.  So there’s no immediate impact from the sanctions that the President has considered in terms of interrupting anybody’s access to Russian sources of energy. 
What sanctions we’ll be focused on are individuals and entities that have interfered with or played a prominent role in interfering with the sovereignty of Ukraine.  And those are the individuals and entities that will be targeted.  And when we have additional announcements on that, we will.  Let me just end this answer by saying that, as I mentioned in my previous answer, that Prime Minister Abe is committed, or voiced to the President his commitment to closely coordinating with the international community and with the other countries in the G7 in standing up for the principle of respecting state sovereignty and the territorial integrity of independent nations.
Q    Josh, I’m wondering why the White House made the decision or the President made the decision to stick to the plan of spending the weekend in Key Largo, given obviously the pace of events overseas and the fact that the Vice President is also going to be out of the country?
MR. EARNEST:  Well, Mark, as you’ve been covering the President this week, you know that he has had a very robust schedule of consulting with President Putin a couple of times this week, that he has had a number of conversations with Prime Minister Cameron, Chancellor Merkel, and other foreign leaders -- Prime Minister Abe just last night.  He has been able to do all of that without interrupting what has otherwise been a pretty busy schedule for him this week -- during a snow day in Washington, D.C., during the rollout of the President’s Fiscal Year 2015 budget.  Our ongoing efforts to monitor ongoing events in Ukraine and to stay in close contact with world leaders has not affected the other aspects of the President’s schedule. 
That’s true of the President’s schedule today.  The President and First Lady, as I mentioned at the top, are traveling to a high school to talk about this core component of the President’s domestic agenda.  Meanwhile, the President has been able to get updates from his national security team and I would anticipate that later today, the President will have at least one phone call to make with a world leader around the globe.  I do anticipate we’ll be able to get you a readout of that call, so we’ll keep you posted.
I think the point is that the President over the course of a very busy week has maintained his schedule and his ability to monitor ongoing events in Ukraine.  I would anticipate that he’ll do the same thing this weekend.  And the fact of the matter is what the President is doing this weekend in Florida is essentially what the President will be doing if he stayed back at the White House.  It’s just that the weather will be a little warmer.
Q    Well, what else will he be doing besides monitoring world events?  What else will he be planning to do on his vacation, if you can give us a little flavor?
MR. EARNEST:  The President is looking forward to spending some time with his wife and daughters, who are traveling down to Florida as well.  There are some recreational amenities on the property, including workout facilities, tennis courts, a couple of golf courses, as you’ve seen. 
So there is a -- many of the people that the people that the President has been talking to in terms of our allies in Europe and other world leaders -- there’s a six-hour time difference between here and there.  So if there is an opportunity for the President to enjoy some of those amenities, then he’ll do that.  But we’ll have to see.  What he will do and what he is looking forward to doing is getting a little bit of downtime in the warm weather with his wife and daughters.  
Q    Can I ask you was any of the President’s or the First Lady’s personal acquaintances or friends traveling on Air Force One who are not administration officials, do you know?  We saw someone boarding who happened to be well dressed with like a cowboy hat -- wasn’t sure who that was -- earlier before the President got there.  And I didn’t know if any other friends or acquaintances --
MR. EARNEST:  There are a couple members of the Florida congressional delegation onboard.  I saw Congresswoman Frederica Wilson and Congressman Joe Garcia is on board as well.  It may have been one of the two of them that you saw. 
Q    You don’t know if any other, like, friends?
MR. EARNEST:  I don’t know of any other friends of the President or the First Lady that’s on board.
Q    Is there still a chance that he could go back to the White House tonight?  Or is the weekend here set pretty much?
MR. EARNEST:  There’s always a chance that the schedule could change, but I don’t anticipate any changes at this point.
Q    Josh, one more question on this.  You’ve obviously got the Vice President out of town, the Secretary of State is still out of town, the National Security Advisor is in the Persian Gulf, and the President is heading to Florida.  I’m just wondering that’s four senior national security officials not in Washington, including the President.  Is that an unusual set of circumstances?  And does that pose any issues in terms of how the government would respond should something sudden happen in Ukraine or Crimea?
MR. EARNEST:  It’s hard for me to speak to the travel habits of all of those officials.  Most of the people you described have as a part of their job description traveling overseas to represent the interest of the United States overseas.  So I wouldn’t be surprised if this is a fairly regular occurrence.  I mean, it’s not uncommon when the President is traveling overseas for the National Security Advisor or for the Secretary of State to be with him.  So it’s not uncommon.
I will say this:  The President is traveling this weekend with his Deputy National Security Advisor, Tony Blinken, who has played a very important role in handling this situation in Ukraine.  The President is traveling with the regular assortment of communications tools that will allow him to convene in a secure fashion meetings with his national security team, if necessary.  He, of course, has a telephone, so if he needs to make calls to world leaders, whether it’s President Putin or our allies, or other international leaders that are involved in this effort, he can stay in regular touch with them.  So we have complete confidence that the President can handle all the responsibilities that he has, based on the resources that we have with us on the flight.
Q    That said, you were quoted earlier this week I think by Politico saying that it was still up in the air, there was some debate or some internal deliberations about whether he would maintain a weekend schedule of staying down there.  The decision seems that he’s going to.  What was the debate about then if he can do that, and you know that?  Are you saying that the situation in the Ukraine is sort of calm enough that you can go reliably?  In other words, what was the debate or why did it come down on this side?
MR. EARNEST:  I wouldn’t characterize it as a debate.  I was quoted in Politico talking about the fact that the President’s schedule would be a little more fluid than usual because international events were a little more fluid than usual. 
I do think that what we have seen over the course of the last several days is the President has marshalled our allies to put in place a structure for responding to the situation that we’re seeing on the ground in Ukraine.  The President has had, again, multiple conversations with President Putin where he highlighted that there is an off-ramp here, that there is an opportunity for the Russians to sit down with the Ukrainians, facilitated by the international community, if necessary, to try to broker an agreement, to allow international inspectors into every corner of the nation of Ukraine to ensure that the rights of everybody, including the rights of ethnic Russians, are being protected.
We’ve described before that that is a legitimate interest of Russia and, frankly, it’s a legitimate interest of the international community to ensure that the rights of all the citizens of Ukraine are being respected.
There’s an opportunity for the Russians to live up to their basing agreement in Crimea, to return their soldiers and their troops to their bases, and for the international community to come together in support of the elections that are planned for May.  So there is a path to deescalate the situation.  And that is a path that has been set up by -- under the President’s leadership.  We have marshalled the international community behind -- or in support of this potential off-ramp.  And I think over the course of the next few days, we’ll get a better indication about whether or not the Russians are open to that off-ramp.
And one of the conclusions of the call that the President had with President Putin yesterday was that Secretary of State John Kerry and his counterpart, Foreign Minister Lavrov, should be in touch to talk about steps forward on that. 
So I think -- the President is hopeful that we’ll get a little greater clarity on the situation over the course of the next few days.  And if additional steps need to be taken next week, then we can take those steps.
Q    Can you characterize the tone of these lengthy conversations that the two leaders have had?  I mean, you said that next few days will tell the story, but it doesn't seem that so far that something has come out of it, that --
MR. EARNEST:  I don't want to set up a deadline over the next few days.  I think we’re hopeful that in the next few days, we’ll get greater clarity about whether or not the Russians are willing to take some concrete steps toward this off-ramp here.
But in terms of characterizing the calls, we have issued readouts and I wouldn’t want to get in front of those.  But I do think that it’s fair for you to -- fair for people to take away from these readouts that at least as it relates to the view of the situation -- the U.S. view of the situation versus the Russian view of the situation in Ukraine, and in Crimea in particular, there’s a pretty strong difference of opinion; that there is a disagreement about the facts related to what’s actually happening on the ground there.
The best example of this is you saw in the news conference that President Putin convened earlier this week that he basically denied that there were Russian troops on the ground in Crimea outside their bases.  All of the available evidence indicates that's not true. 
So we’re having robust, direct, candid conversations between President Obama and President Putin.  That means acknowledging that there are basic differences over what’s actually happening on the ground in Crimea. 
So the real test is whether or not the Russians are going to take advantage of this off-ramp that is available here.  And we’re hopeful that the Russians will take the steps necessary to deescalate the situation -- by observing the basing agreements, by supporting elections, by entering into talks, facilitated by the international community, if necessary, with the Ukrainians to try to resolve all this.  And again, that could also include putting international monitors all throughout Ukraine to ensure that the rights of everybody, including ethnic Russians, are being respected. 
President Putin has indicated that that's part of Russia’s interest in the region, and it’s part of the U.S. and the international community’s interest in the region.  So there is some common ground here.  But I don't want to paper over the differences that exist on some very basic facts on the ground.
Q    It sounds like you’re saying the White House is in kind of a wait-and-see mode for a few days on this?
MR. EARNEST:  I wouldn’t use those words, only because the President and senior members of our team remain very actively engaged in the situation.  The President will continue to consult very closely with our allies around the globe, particularly the G7 nations that Jeff mentioned.  Secretary Kerry will be in touch with his counterpart, having specific discussions about the way forward here.  So there’s still a lot of activity going on here even as we watch carefully to see what the Russian reaction might be.
Other questions?
Q    Will the President have a message today for voters in next week’s special congressional election? 
MR. EARNEST:  The White House is obviously aware that there is a special congressional election on the other side of the state of Florida.  I know that that race has gotten a lot of national attention, but I don’t anticipate that in his event today that the President will be talking about it.  He’ll be pretty focused today on this one core component of his domestic agenda, which is expanding the door -- expanding college education. 
Q    Is it a coincidence that he’s there a few days ahead of the election?
MR. EARNEST:  Well, it’s in a different part of the state, so, yes, it is a coincidence.
Q    Do you have a week ahead?
MR. EARNEST:  I do have a very bare-bones week ahead.  At this point, we anticipate that the President and the First Family will return to Washington on Sunday.
On Monday, the President is really looking forward to welcoming the 2012 and 2013 Division I Men’s and Women’s NCAA National Champions at the White House.  As you know, the President traditionally welcomes the NCAA champion football and basketball teams.  This will be an opportunity for the President to welcome the NCAA champions in some sports that don’t get quite as much attention as those other more high-profile events.  So we’re looking forward to that.
On Tuesday, the President is planning to travel to New York City to participate in events to benefit the DNC and the DSCC.  At this point, on Wednesday, Thursday and Friday, I don’t have any additional events to announce.  I anticipate the President will be at the White House and participating in meetings on those days.
Q    Thank you.
Q    I have one more -- sorry -- closer question to ask about this beer bet.  My editors asked me to ask specifically -- Prime Minister Harper said he hasn’t gotten his beer yet from the Olympic hockey bet.  What’s with the delay?
MR. EARNEST:  I don’t know.  I’m not privy to the details of the international beer delivery, but I can tell you that the President is somebody who makes good on his bets.  So I’m confident that Prime Minister Harper and members of his team will soon be enjoying some delicious White House beer. 
All right.  Thanks.
END

U.S.-ISRAEL DISCUSS SEIZED IRANIAN SHIPMENT OF WEAPONS TO TERRORIST IN GAZA

FROM:  U.S. DEFENSE DEPARTMENT 
Hagel, Israeli Defense Minister Discuss Red Sea Operation
American Forces Press Service

WASHINGTON, Mar. 7, 2014 – Defense Secretary Chuck Hagel spoke with Israeli Defense Minister Moshe "Boogie" Yaalon yesterday afternoon and received a briefing on Israel's interdiction operation in the Red Sea that seized a suspected Iranian shipment of advanced weapons bound for terrorist organizations operating in Gaza.

In a statement summarizing the phone call, Pentagon Press Secretary Navy Rear Adm. John Kirby said the secretary congratulated Yaalon on the operation’s success and reiterated the U.S. commitment to holding Iran accountable for its destabilizing activities in the region, “even as we continue efforts to resolve our concerns over Iran's nuclear program through diplomacy.”

“Secretary Hagel made clear that illicit actions by Iran are unacceptable to the international community and in gross violation of Iran's U.N. Security Council obligations,” the press secretary added.

The Defense Department and the Israeli Defense Ministry have been in consistent touch on Israel's interdiction operation, Kirby said, coordinating extensively through military and intelligence channels.

“The secretary and the minister pledged to continue this close consultation as Israel completes its final inspection of the vessel,” he said, “and reaffirmed the strength of the U.S.-Israel defense relationship.”

West Wing Week 3/7/14 or, "Look Who's In Our Room"

SECRETARY OF STATE KERRY'S REMARKS ON INTERNATIONAL WOMEN'S DAY

FROM:  U.S. STATE DEPARTMENT

International Women's Day

Press Statement
John Kerry
Secretary of State
Washington, DC
March 7, 2014


International Women’s Day is a moment to pause and reflect on the contributions of women to the world and to reaffirm our commitment to continued progress on gender equality. It’s also a powerful reminder that women are advancing peace and prosperity around the world in really remarkable ways.

I see it every day as Secretary of State.

I see it in Ukraine, where women are working on the frontlines as volunteers for the Maidan Medical Service. They are raising their voices for freedom and dignity, and we must all step up and answer their call.

I see it in Afghanistan, where women are starting companies, serving as members of parliament, teaching in schools, and working as doctors and nurses. They are the foundation on which Afghanistan’s future is being built.

I see it in Syria, where women are getting restrictions on humanitarian access lifted by offering food to regime soldiers at the checkpoints.

I see it in Mali, where women are risking their lives as advocates for women’s and children’s rights.

Everywhere I travel, in every meeting, I can see firsthand the promise of a world where women are empowered as equal partners in peace and prosperity. But here’s what’s most important: all of the fights and all of the progress we’ve seen in recent years haven’t come easily or without struggle. And we still have work to do.

Our work is not done when one out of every three women is subjected to some form of violence in her lifetime.

We cannot rest knowing that girls younger than 15 are forced to marry and that they are five times more likely to die in childbirth than women in their twenties.

We cannot hope to break the cycle of poverty if we fail to harness the talent and productivity of half the world’s population. And we cannot hope to break the cycle of war if women are not enlisted as equal partners in the work of peace.

So here’s what I’m saying and what we all need to demand: Women must be involved in the decisions that affect us all. They must have a place at the peacekeeping tables and in the tough negotiations following deadly conflict. They must have a seat on the boards of corporations that impact our economies, and they must have a voice in the halls of justice that uphold the rule of law.

When we invest in our mothers, wives, daughters, and sisters, we invest in a brighter future for the world. The United States stands ready to protect and advance the health, education, and human rights of women and girls everywhere, because women’s progress is human progress.

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MARCH 7, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS
 DEFENSE LOGISTICS AGENCY

Tactical & Survival Specialties Inc.**, Harrisonburg, Va., (SPM8EJ-14-D-0003); W.S. Darley & Co.*, Itasca, Ill., (SPM8EJ-14-D-0004); ADS Inc.*, Virginia Beach, Va., (SPM8EJ-14-D-0005); Federal Resources Supply Co.*, Stevensville, Md., (SPM8EJ-14-D-0006); Source One Distributors Inc.***, Wellington, Fla., (SPM8EJ-14-D-0007); H Squared Inc., doing business as Quantico Tactical**, Aberdeen, N.C., (SPM8EJ-14-D-0008), have been awarded a maximum $10,000,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for support of special operational equipment tailored logistics support program.  This is a two-year base contract with three one-year option periods.  This contract is a competitive acquisition and 20 offers were received.  Locations of performance are Virginia, Illinois, Maryland, Florida, and North Carolina with a March 6, 2016 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2016 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Tactical & Survival Specialties, Inc.**, Harrisonburg, Va., (SPM8EJ-09-D-0001); W.S. Darley & Co.*, Itasca, Ill., (SPM8EJ-09-D-0002); Atlantic Diving Supply, Inc.*, Virginia Beach, Va., (SPM8EJ-09-D-0002); Source One Distributors Inc.***, Wellington, Fla., (SPM8EJ-09-D-0004), have been awarded a maximum $84,000,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for various types of tactical, survival, and rescue equipment.  This is a two-month base contract with no option periods.  This contract is a competitive acquisition, and 14 offers were received.  Locations of performance are Virginia, Illinois, and Florida with a May 8, 2014 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Sysco Central Florida, Ocoee, Fla., has been awarded a maximum $39,375,000 fixed-price with economic-price-adjustment contract for prime vendor food and beverage support.  This contract is a competitive acquisition and one offer was received.  This is a two-year base contract with one one-year option and one two-year option periods.  Location of performance is Florida with an April 16, 2019 performance completion date.  Using military services are Army, Navy, Air Force, and Job Corps.  Subsistence outside of the continental United States (OCONUS) prime vendors will order from this contract in support of OCONUS military customers.  Type of appropriation is fiscal 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa., (SPM300-14-D-3000).

Shore Terminals LLC, doing business as NuStar, San Antonio, Texas, has been awarded a maximum $32,333,197 modification (P00075) exercising the third option period on a five-year base contract (SP0600-99-C-5926) with three five-year option periods for petroleum storage services.  This is a firm-fixed-price contract.  Locations of performance are Texas and California with a March 6, 2019 performance completion date.  Using military services are Army, Air Force, and Marine Corps.  Type of appropriation is fiscal 2014 through fiscal 2019 defense working capital funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va.

Pentaq Manufacturing Corp.****, Sabana Grande, Puerto Rico, has been awarded a maximum $27,244,510 modification (P00102) exercising the first option period on a one-year base contract (SPM1C1-13-D-1036) with four one-year option periods for various coats.  This is a firm-fixed-price contract.  Locations of performance are Puerto Rico and Mississippi with a March 17, 2015 performance completion date.  Using military service is Army.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Raytheon Co., Space and Airborne Systems, El Segundo, Calif., has been awarded a maximum $8,970,000 firm-fixed-price contract for aircraft circuit card assemblies.  This contract is a sole-source acquisition.  This is a five-year base contract with no option periods.  Location of performance is California with a Nov. 30, 2016 performance completion date.  Using military service is Navy, Canada, and Australia.  Type of appropriation is fiscal 2013 through fiscal year 2016 Navy and foreign military sales funds.  The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pa., (SPRPA1-11-G-003X-5006).

Imperial Sales Co.*, Watsonville, Calif., has been awarded a maximum $8,152,137 modification (P00202) exercising the third option period on a one-year base contract (SPM3S1-11-D-Z188) with four one-year option periods for various commercial components for unitized group rations.  This is a fixed-price with economic-price-adjustment contract.  Location of performance is California with a March 10, 2015 performance completion date.  Using military services are Army and Marine Corps.  Type of appropriation is fiscal 2013 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

NAVY

Bell-Boeing Joint Project Office, Amarillo, Texas, is being awarded a $76,100,722 modification to the previously awarded V-22 fixed-price-incentive-fee lot 17-21 multiyear contract (N00019-12-C-2001).  This modification exercises an option for the manufacture and delivery of one CV-22 tiltrotor aircraft for the U.S. Air Force.  Work will be performed in Fort Worth, Texas (24.6 percent); Ridley Park, Pa. (19.2 percent), Amarillo, Texas (10.4 percent), Dallas, Texas (4.3 percent); East Aurora, N.Y. (2.5 percent); Park City, Utah (1.7 percent); El Segundo, Calif. (1.3 percent); Endicott, N.Y. (1 percent); Ontario, Canada (.9 percent); Tempe, Ariz. (.8 percent); Rome, N.Y. (.7 percent); Torrance, Calif. (.7 percent); Luton, United Kingdom (.6 percent); Clifton, N.J. (.6 percent); Salisbury, Md. (.6 percent); Los Angeles, Calif. (.6 percent); Cobham, United Kingdom (.6 percent); Irvine, Calif. (.6 percent); San Diego, Calif. (.5 percent); Yakima, Wash. (.5 percent); Brea, Calif. (.5 percent); Rockmart, Ga. (.5 percent); McKinney, Texas (.4 percent); Albuquerque, N.M. (.4 percent); Whitehall, Mich. (.4 percent); Wolverhampton, United Kingdom (.4 percent); Tucson, Ariz. (.4 percent); Erie, Pa. (.3 percent); Vergennes, Vt. (.3 percent); Kilgore, Texas (.3 percent); Shelby, N.C. (.3 percent); Avon, Ohio (.2 percent); Santa Clarita, Calif. (.2 percent); Garden City, N.Y. (.2 percent); El Cajon, Calif. (.2 percent); Corinth, Texas (.2 percent); Sylmar, Calif. (.2 percent); Westbury, N.Y. (.1 percent); and various other locations inside and outside the United States (21.8 percent), and is expected to be completed in December 2016.  Fiscal 2014 aircraft procurement, Air Force and Special Operations Command funds in the amount of $76,100,722 will be obligated at time of award, none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Vigor Shipyards Inc., Seattle, Wash., is being awarded a $30,703,417 cost-plus-incentive-fee, cost-plus-award-fee contract to definitize a previously awarded undefinitized contract action (N00024-11-C-4401) for repair and alteration of naval assets.  This body of work is being awarded under an existing five-year contract for planning and execution of repair and alteration to surface ships while in drydock. The USS Momsen (DDG 92) will be undergoing a docking selected restricted availability which is the opportunity in the ship’s life cycle to primarily conduct repair and alteration to systems and hull not available when the ship is waterborne.  Work will be performed in Seattle, Wash., and is expected to be completed by October 2014.  Fiscal 2014 operations and maintenance, Navy funding in the amount of $8,405,188 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Puget Sound Naval Shipyard and Intermediate Maintenance Facility, Bremerton, Wash., is the contracting activity.

Lockheed Martin Corp., Lockheed Martin Aeronautics Co., Fort Worth, Texas, is being awarded a not-to-exceed $7,696,166 undefinitized modification to the previously awarded low rate initial production lot 6 advanced acquisition contract (N00019-11-C-0083) for the F-35 Lightning II Joint Strike Fighter aircraft.  This modification provides for the procurement of non-recurring sustainment activities for the government of the United Kingdom, to include procurement of site activation planning efforts for Royal Air Force Marham.  Work will be performed in Warton, United Kingdom (65 percent); and Fort Worth, Texas (35 percent), and is expected to be completed in June 2014.  International partner funds in the amount of $3,848,083 will be obligated at time of award, none of which expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

ARMY

D&S Consultants Inc., doing business as DSCI, Eatontown, N.J., has been awarded an $8,734,140 firm-fixed-price, sole-source contract for Information Technology operations and maintenance support services for United States Southern Command Joint Task Force-Guantanamo Bay, Cuba.  Work will be performed in Cuba with Sept. 6, 2014 estimated completion date.  Fiscal 2014 operations and maintenance Army funds in the amount of $6,833,026 were obligated at time of award.  U.S. Army Contracting Command – Fort Sam Houston, Texas is the contracting activity (W912CL-14-C-0008).


Ronal Industries Inc.*, Troy, Mich. was awarded a $7,422,150 firm-fixed-price, multi-year indefinite-delivery/indefinite-quantity contract for 2,075 fan vaneaxials for the M109 howitzer.  Funding and work performance location will be determined with each order.  Estimated completion date is July, 31, 2019.  Bids were solicited via the Internet with two received.  Army Contracting Command, Warren, Mich., is the contracting activity (W56HZV-14-D-0042).

*Small Business
**Service-Disabled Veteran Owned Small Business
***Veteran Owned Small Business
****Small Disadvantaged Business

COURT BANS SLOVAKIA-BASED ONLINE DIRECTORY SCAMMERS FROM ONLINE DIRECTORY BUSINESS

FROM:  FEDERAL TRADE COMMISSION 
FTC Action Leads to Ban Against Internet Directory Scammers
Overseas Defendants Targeted Small Businesses, Non-Profits in U.S.

In an action brought by the Federal Trade Commission, a federal court has banned a Slovakia-based operation from the online directory business and entered a $9 million judgment against them.

“The last thing small business owners need is someone trying to trick them out of their hard-earned money,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The FTC is committed to taking action against this kind of deceptive scheme.”

In March 2013, the FTC charged Wolfgang Valvoda, Susanne Anhorn, and Construct Data Publishers a.s., also doing business as Fair Guide, with tricking small businesses and non-profits into paying millions of dollars to be listed in an online directory they did not want to be listed in, and for which they did not realize they would be charged.

As the FTC alleged in its complaint, the defendants sent mailings to small retailers, home-based businesses, local associations, and others who host exhibits at trade shows. The mailings were falsely linked to a trade show the recipients had attended or planned to attend, to trick them into thinking they had a preexisting business relationship with the defendants. The enclosed cover letter and form falsely suggested that the recipients needed to confirm or update their contact information for the trade show. Many did not notice a statement, buried in fine print at the bottom of the form, that by signing and returning the form they were agreeing to pay $1,717 annually to Construct Data Publishers, a company with no connection to trade shows, for a listing on its website, fairguide.com.

The defendants disguised their true location in Slovakia by hiring a company in Naperville, Illinois, to print and mail the cover letters and forms. The mailings included a pre-paid return envelope addressed to a Chicago-area P.O. Box. After delivery to the P.O. Box, the mail was forwarded to the defendants in Slovakia. The defendants then sent out invoices demanding payment of $1,717 or more from each business or non-profit that had returned a signed form. The invoices instructed recipients to wire payment to a Slovakian bank account. Those who refused to pay were threatened with extra charges, damage to their credit, and lawsuits. Many paid just to end the harassment.

The FTC filed its complaint in the U.S. District Court for the Northern District of Illinois, Eastern Division, charging that the defendants’ deceptive conduct violated the FTC Act. The court issued a temporary restraining order followed by a preliminary injunction prohibiting the fraud and freezing the defendants’ assets pending litigation. On February 11, 2014, the court entered a default judgment and permanent injunction against the defendants.

In addition to banning the defendants from selling online directories and directory listings, the court order announced today prohibits them from misrepresenting material facts about any products and services, selling or otherwise benefitting from customers’ personal information, failing to properly dispose of customer information, and collecting money from customers. The court also entered a $9.1 million judgment against defendants based on the consumer losses caused by the scheme.

The court’s order is the latest in a series of actions taken against Construct Data/Fair Guide. Courts in Germany and Italy also have entered orders against the company for its deceptive practices. In 2007, to settle a lawsuit filed by an Austrian trade association, Construct Data agreed to cease its deceptive solicitations in Europe. The following year, however, Construct Data moved from Austria to Slovakia and continued its scheme, targeting businesses and non-profits in the United States and other countries.

The FTC appreciates the assistance of the Ministry of Justice of the Republic of Slovakia, the Slovak Police Attache, and the Ministry of Justice of Austria in bringing this case.

ATTORNEY GENERAL HOLDER'S REMARKS AT AFRICAN AMERICAN HISTORY MONTH CELEBRATION

FROM:  U.S. JUSTICE DEPARTMENT 
Attorney General Eric Holder Delivers Remarks at the African American History Month Celebration Marking the 50th Anniversary of 1964 Civil Rights Act
~ Wednesday, March 5, 2014

Thank you, Chief Judge [Richard] Roberts, for those kind words; for your leadership from the bench; and for your many years of service to our nation – both as a District Court Judge and as a former prosecutor.  It is a pleasure to be with you today.  And it’s an honor to join so many distinguished jurists, devoted public servants, and committed public safety officials in celebrating the 50th anniversary of the Civil Rights Act of 1964 – and rededicating ourselves to the struggle for equal rights and equal justice that has defined this country since its earliest days.

It’s a special privilege to share the stage with Deputy Marshal [Kirk] Bowden, who, as we’ve just heard, stood on the literal front lines of this fight during a critical moment in the Civil Rights Movement – at a time when young students, law enforcement officials, National Guardsmen, and brave citizens risked their lives to integrate historic institutions across the Deep South.  The courage, and the sacrifices, of people like James Meredith, Deputy Bowden – and others who stood with them on that fateful day in 1962 – helped to transform our nation for the better.  The victories they achieved made countless others possible.  And just a year after Deputy Bowden and his colleagues helped secure the integration of the University of Mississippi – at great cost – other brave law enforcement officials, Justice Department leaders, and federalized National Guard personnel helped a remarkable young woman named Vivian Malone – who would much later become my sister-in-law – to peacefully step past Governor George Wallace, along with another brave young person, James Hood – to become the first African American students to enroll at the University of Alabama.

Like all who are old enough to remember those days, I will never forget the turmoil, and the violence, that characterized the Civil Rights era – as millions of people braved dogs and fire hoses, billy clubs and baseball bats, bullets and bombs, in order to secure the rights which were theirs as Americans.  Thanks to their sacrifices, their leadership, and the relentless optimism of pioneers like Dr. Martin Luther King Jr., Medgar Evers, Rosa Parks, Thurgood Marshall, and so many others – the 1960s was a time of great challenge, but also great promise, for our nation.  And among the signature achievements of that tumultuous decade – a decade defined by tragedy as well as hope; by bitter loss as well as remarkable progress – few were as important, or as impactful, as the passage of the Civil Rights Act of 1964.

When President Lyndon Johnson signed this landmark law – 50 years ago this coming July – he recognized it as a watershed moment.  Although its adoption did not put the issue of equal justice to rest – or settle the cause of civil rights, once and for all – it marked an inflection point in our history.  It gave those who sought fair treatment a renewed sense of hope.  And it reaffirmed their determination to keep fighting for the brighter future that all of our citizens deserved.

In the years that followed, this struggle – to secure what President Johnson once called the “dignity of man and the destiny of democracy” – would lead to the passage of the Voting Rights Act of 1965 and a range of other reforms, both large and small.  Together, these changes altered the course of the 20th century.  And they led our nation’s Department of Justice to take an active role in defending the civil rights to which everyone in this country is entitled – work that remains among our top priorities today.

In many ways, the Civil Rights Act of 1964 continues to stand at the heart of our ongoing efforts – providing critical protections against discrimination and disenfranchisement for members of every sector of society.  But it’s far from the only tool we have for advancing the cause of justice under law; for ensuring both fairness and rigor in all of our enforcement activities; and for securing the basic promise of equality that was codified in our founding documents – and must drive our ongoing efforts to make this fundamental truth not only “self-evident,” but protected by the law.

We can be proud of all that the Justice Department’s Civil Rights Division, of which Chief Judge Roberts was once a member, has done to advance this struggle in recent years.  Since 2009, the Division has filed more criminal civil rights cases than at any other time in our history, including record numbers of police misconduct and human trafficking cases.  Under the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, which President Obama signed into law in 2009, we are improving our ability to hold accountable those who commit bias-motivated acts of violence.  We’re working, under the Defending Childhood Initiative and the National Forum on Youth Violence Prevention, to combat bullying and harassment, to protect America’s young people from violence and abuse, and to partner with allies like the Department of Education to disrupt the “school-to-prison pipeline.”  And in a variety of ways – from our neighborhoods and workplaces, to our housing and lending markets; from our boardrooms to our border areas; from our military bases to our voting booths – my colleagues and I are using every resource at our disposal and every tool within our reach to stand against all forms of discrimination.

This means taking appropriately aggressive action to enforce key civil rights protections and, where necessary, to call for additional legislative remedies.  But it also means standing vigilant against those who would roll back the progress of the last half-century.  Particularly since last June, when a narrowly split but deeply divided Supreme Court invalidated a critical part of the Voting Rights Act, the Civil Rights Division has been focused on reallocating resources to enforce all federal voting protections that remain on the books.  The Justice Department has filed suit to challenge voting restrictions in Texas and North Carolina.  And I am personally committed to working with Congressional leaders from both parties to refine, and to strengthen, new voting rights legislation that’s being debated on Capitol Hill.

Fortunately, all of this is only the beginning.  And if today’s leaders – and especially today’s lawyers – hope to build on the legacy of those who made the Civil Rights Act and other extraordinary advancements possible, I believe we must do much more than simply prevent the unraveling of the progress with which prior generations have entrusted us.  Moving forward, we must continue to expand the fight for civil rights and equal justice – by seeking new ways to address unwarranted disparities, to combat disenfranchisement, and to address the evolving threats of our time.  And we must begin by ensuring that America has a criminal justice system that’s worthy of its highest ideals; that those who pay their debts to society have fair opportunities to become productive, law-abiding citizens; and that 21st century criminal justice challenges can be met with 21st century solutions.

Last August – in a speech before the American Bar Association in San Francisco – I announced a new “Smart on Crime” initiative that’s dedicated to these goals, and is already allowing us to take meaningful steps forward.  Under this initiative, I mandated an important change to the Justice Department’s charging policies to ensure that stringent mandatory minimum sentences for certain federal, drug-related crimes will now be reserved for the most serious criminals.  My colleagues and I are increasing our emphasis on proven diversion programs – such as drug rehabilitation and community service initiatives – that can serve as effective alternatives to incarceration.  And we are investing in data-driven reentry strategies – and evaluating the unnecessary collateral consequences imposed by certain convictions – to enable formerly incarcerated individuals to stay on the right path and out of the criminal justice system.

Three weeks ago, at Georgetown University Law Center, I called upon state leaders and other elected officials across the country to take another important step in this regard – by restoring voting rights to those who have served their terms in prison or jail, completed their parole or probation, and paid their fines.  We’ve seen over the years that the permanent disenfranchisement of these individuals is unwise and unjust.  We know that it is also counterproductive, undermining the reentry process and perpetuating the stigma and isolation imposed on formerly incarcerated people.  The reality is that felony disenfranchisement policies are not only extremely outdated – they echo troubling policies that were enacted more than a century ago, during a time of post-Civil War repression.  And they continue to have a disproportionate impact on America’s communities of color.

Clearly, it’s well past time for us to declare – together – that the free exercise of our fundamental rights must never be subject to the lingering effects of flawed or unjust policies.  Even more broadly, it’s time to affirm – once and for all – that the basic promise of our justice system must never hinge on the quality of, or access to, legal representation for those who need it.

That’s why I believe that, as every jurist and legal professional in this room knows all too well, it is not just unacceptable – it is shameful – that half a century after the Supreme Court declared, in Gideon v. Wainwright, that every person charged with a serious crime has the right to an attorney – far too many Americans still struggle to gain access to the legal assistance they need.

It is shameful that, in far too many places, extraordinarily dedicated public defenders face crushing caseloads without the support they need to do their jobs.

And it’s shameful that – while the federal public defender system has consistently served as a model for success – a recent study shows that only 21 percent of reporting state systems and just over a quarter of county-based offices have enough attorneys to meet caseload guidelines.

Today’s Justice Department is committed to doing everything in our power to help address this indigent defense crisis – including through the Access to Justice initiative I launched in 2010 to increase access to counsel and legal assistance, and to improve the justice delivery systems that serve people who are unable to afford lawyers.  In recent years, our ability to offer support to state and local providers has been constrained by sequestration and other budget shortfalls that have necessitated deep cuts at every level of government.  But the bipartisan funding agreement that President Obama signed into law – just last month – will finally restore the Department’s overall funding to pre-sequestration levels.  And I am pleased to report today that the President’s budget request for Fiscal Year 2015 will address the need for additional resources for indigent defense programs throughout America – which must remain a top priority even, and especially, when budgets are tight.

I call upon state and local leaders to step forward and do their part in ensuring that we can live up to the full promise of Gideon.  And I urge legal professionals across the country to do everything they can do help guarantee that adequate legal representation is seen not as a luxury for those who can afford it – but as a basic American right.

After all, neither the Department I lead, nor the Administration in which I am privileged to serve, will be able to bring about this and the other changes we seek on our own.  Just as we have done throughout our history, this nation will continue to rely on passionate citizens to drive us forward.  And we will depend upon leaders like all of you to use your unique skills, training, and experience – at the highest levels of our legal system – to bring our country closer to the values of our forebears and the promise of our founding.

Five decades after the passage of the Civil Rights Act, we can reflect with pride on the progress that this critical measure, and so many others, have made possible over many years of struggle and sacrifice.  But even the most sweeping legislation cannot, by itself, wash away the deeply ingrained disparities that millions of Americans continue to face.  Despite all that’s been achieved, a great deal of work remains before us.  We cannot yet be satisfied.  We cannot afford to become complacent.  And we must seize this opportunity to expand on the legacy of inclusion, equality, and justice we’ve inherited.

Although much remains to be done, I am confident that, with your continued leadership, with your steadfast support – and with the courage and determination that has always defined the very best of America’s legal community – we will forge the stronger, more just, and more accepting society that we, and our fellow citizens, deserve.  I am proud to count you as colleagues, and as partners, in this important effort.  And I thank you, once again, for the chance to discuss this work with you today; for your dedication to the cause of justice that remains our common pursuit; and for your commitment to honoring our past by building the brighter future we seek.

DEPUTY SECRETARY BURNS GIVES TESTIMONY ON SYRIA, UKRAINE, MIDDLE EAST

FROM:  U.S. STATE DEPARTMENT 
Syria Spillover: The Growing Threat of Terrorism and Sectarianism in the Middle East and Ukraine Update
Testimony
William J. Burns
Deputy Secretary of State
Testimony Before the Senate Committee on Foreign Relations
Washington, DC
March 6, 2014

Chairman Menendez, Ranking Member Corker, Members of the Committee, thank you for this opportunity. I’m pleased to be joined by Matt Olsen and Derek Chollet. I ask that my written testimony be entered into the record.
Before addressing the issue of extremism in the Levant, let me first offer a quick assessment of developments in Ukraine, as you requested.

Ukraine

A great deal is at stake in Ukraine today. Less than 48 hours ago in Kyiv, not far from the Shrine of the Fallen, Secretary Kerry made clear America’s deep and abiding commitment to Ukraine’s sovereignty and territorial integrity, in the face of Russian aggression, and our determination to ensure that the people of Ukraine get to make their own choices about their future. That’s a bedrock conviction for the United States. On my own visit last week, I was profoundly moved by the bravery and selflessness of Ukrainians, and profoundly impressed by the commitment of the new interim government to reach across ethnic and regional lines and build a stable, democratic and inclusive Ukraine, with good relations with all of its neighbors, including Russia.

While we and our partners worked to support Ukraine’s transition, Russia worked actively to undermine it. Russia’s military intervention in Crimea is a brazen violation of its international obligations, and no amount of Russian posturing can obscure that fact.

Ukraine’s interim government, approved by 82 percent of the Rada, including most members of Yanukovich’s party, has shown admirable restraint in the face of massive provocation. They need and deserve our strong support. President Obama, Secretary Kerry and the entire Administration have been working hard, steadily and methodically, to build urgent international backing for Ukraine, counter-pressure against Russia, reassurance to other neighbors, and a path to de-escalation. Our strategy has four main elements, and we look forward to working with Congress on each of them.

First, immediate support for Ukraine as it deals with enormous economic challenges and prepares for critical national elections at the end of May. On Tuesday, Secretary Kerry announced our intent to seek a $1 billion loan guarantee. That will be part of a major international effort to build a strong economic support package for Ukraine as it undertakes reform. That effort includes the IMF and the EU, which laid out its own substantial assistance package yesterday. Prime Minister Yatsenyuk and his colleagues are committed partners, and understand that the Ukrainian government has difficult reform choices to make, after inheriting an economic mess from Yanukovich. Ukraine’s considerable economic potential has never been matched by its business environment or economic leadership, and now is the time to begin to get its financial house in order and realize its promise.

Second, deterring further encroachment on Ukrainian territory and pressing for an end to Russia’s occupation of Crimea. President Obama has led broad international condemnation of Russia’s intervention, with strong, unified statements from the G-7 and NATO, as well as the EU, whose leaders are meeting today in an emergency summit. We are sending international observers from the OSCE to Crimea and eastern Ukraine to bear witness to what is happening and make clear that minorities are not at risk. This was never a credible claim by Russia, nor a credible pretext for military intervention.

We are making clear that there are costs for what Russia has already done, and working with our partners to make clear that the costs will increase significantly if intervention expands. Today, the President signed an executive order authorizing sanctions – including asset freezes and travel bans on individuals and entities responsible for activities undermining democratic processes or institutions in Ukraine; threatening the peace, security, stability, sovereignty or territorial integrity of Ukraine; contributing to the misappropriation of state assets of Ukraine; or that purport to exercise authority over any part of Ukraine without authorization from the Ukrainian government in Kyiv. This E.O. will be used in a flexible way to designate those most directly involved in destabilizing Ukraine.

The State Department today also put in place visa restrictions on a number of officials and individuals. We continue to look at every aspect of our relationship with Russia, from suspension of preparations for the Sochi G-8 Summit to pausing key elements in our bilateral dialogue.

Third, bolstering Ukraine’s neighbors. We are moving immediately to reinforce our Washington Treaty commitments to our allies. As Secretary Hagel stressed yesterday, we are taking concrete steps to support NATO partners, through intensified joint training with our aviation detachment in Poland and enhanced participation in NATO’s air policing mission in the Baltics.

And fourth, Secretary Kerry is working intensively to de-escalate the crisis, in order to restore Ukraine’s sovereignty while creating a diplomatic off-ramp. We support direct dialogue between Kyiv and Moscow, facilitated by an international contact group. As the President and Secretary Kerry have emphasized, we do not seek confrontation with Russia. It is clearly in the interests of both Ukraine and Russia to have a healthy relationship, born of centuries of cultural, economic and social ties. The will for that exists among Ukraine’s new leaders. But it cannot happen if Russia continues down its current dangerous and irresponsible path. That will only bring greater isolation and mounting costs for Russia.

Our strategy, it seems to me, needs to be steady and determined, mindful of what’s at stake for Ukrainians as well as for international norms. We also need to be mindful of the enduring strengths of the United States and its partners, and the very real weaknesses sometimes obscured by Russian bluster. Most of all, President Putin underestimates the commitment of Ukrainians, across their country, to sovereignty and independence, and to writing their own future. No one should underestimate the power of patient and resolute counter-pressure, using all of the non-military means at our disposal, working with our allies, and leaving the door open to de-escalation and diplomacy if Russia is prepared to play by international rules.

Extremism in the Levant

Now let me turn very briefly to the Levant. The turbulence of the past three years has had many roots: rising aspirations for dignity, political participation and economic opportunity in a region in which too many people for too many years have been denied them; the ruthless reaction of some regimes; and the efforts of violent extremists to exploit the resulting chaos.

Nowhere have these trends converged more dangerously than in Syria. The conflict, and the Asad regime, have become a magnet for foreign fighters , many affiliated with terrorist groups from across the region and around the world. As Matt will describe, these fighters, mostly Sunni extremists, represent a long-term threat to U.S. national security interests. From the other side, Asad has recruited thousands of foreign fighters, mostly Shia, to defend the regime, with active Iranian support and facilitation. The hard reality is that the grinding Syrian civil war is now an incubator of extremism – on both sides of the sectarian divide.

We face a number of serious risks to our interests as a result: the risk to the homeland from global jihadist groups who seek to gain long-term safe havens; the risk to the stability of our regional partners, including Jordan, Lebanon and Iraq; the risk to Israel and other partners from the rise of Iranian-backed extremist groups, especially Lebanese Hizballah fighting in Syria; and the risk to the Syrian people, whose suffering constitutes the greatest humanitarian crisis of this new century.

These are enormous challenges. They require a steady, comprehensive American strategy, aimed at isolating extremists and bolstering moderates, both inside Syria and amongst our regional partners. I’d highlight four elements of our strategy:

First, we are working to isolate and degrade terrorist networks in Syria. That means stepping up efforts with other governments to stem the flow of foreign fighters into Syria, and cutting off financing and weapons to terrorist groups. It also means stepping up efforts to strengthen the moderate opposition, without which progress toward a negotiated transition of leadership through the Geneva process or any other diplomatic effort is impossible. Strengthened moderate forces are critical both to accelerate the demise of the Asad regime, and to help Syrians build a counterweight to the extremists who threaten both the present and the post-Asad future of Syria and the region. None of this is easy, but the stakes are very high.

Second, we are pushing hard against Iranian financing and material support to its proxy groups in Syria and elsewhere. We are also working intensively with partners in the Gulf and elsewhere to curb financing flows to extremists.

Third, we are increasing cooperation with Turkey, and intensifying our efforts to strengthen the capacity of Syria’s other endangered neighbors:

-- In Jordan, which I visited again last month, we are further enhancing the capacity of the Jordanian Armed Forces to police its borders and deepening intelligence cooperation on extremist threats. The staggering burden of supporting 600,000 Syrian refugees has put serious strain on Jordan’s resources. We deeply appreciate Congress’ continued support for significant U.S. assistance for Jordan, which has totalled about a billion dollars in each of the last couple years, complemented by substantial loan guarantees. I can think of no better investment in regional stability than our efforts in Jordan.

-- In Lebanon, we are supporting the Lebanese Armed Forces and the Internal Security Forces to deter spillover, better monitor the border with Syria, and help bolster the government’s policy of “dissociation” from the Syrian conflict. The formation of a new Cabinet last month provides a renewed opportunity for the United States to engage, and Secretary Kerry reaffirmed our strong commitment to Lebanon’s security and economic stability directly to President Sleiman and at the International Support Group for Lebanon ministerial meeting in Paris yesterday.

-- In Iraq, we are surging security assistance and information sharing to combat the rising threat from ISIL, while pressing Iraqi leaders to execute a comprehensive strategy – security, political and economic – to isolate extremists, especially in Anbar. That was one of the main purposes of my last visit to Baghdad at the end of January. I appreciate the close consultation we’ve had with you, Mr. Chairman, and with other members of the Committee on these crucial issues, and we look forward to continuing to address your concerns, which we share.

And finally, we are supporting global efforts to ease the humanitarian crisis in Syria, through the $1.7 billion we have already contributed. We are working hard to facilitate the delivery of cross-border aid, using the recently adopted UN Security Council resolution to expand humanitarian access. We are also providing substantial aid to refugee populations in neighboring countries.

Beyond the Levant, we continue to work with our Gulf partners to enhance security cooperation, blunt the extremist threat, and support sound economic development in transitioning countries. This will be an important focus of the President’s visit to Saudi Arabia later this month.

Mr. Chairman, the rise of extremism in the Levant poses an acute risk for the United States, and for our regional partners. It is essential that we intensify our efforts to isolate extremists in Syria, limit the flow of foreign fighters, bolster moderate opposition forces, ease the humanitarian crisis, and help key partners like Jordan defend against spillover. Thank you again for your focus on these vitally important challenges, and I look forward to continuing to work with you.


FORMER OWNER AIRLINE FUEL SUPPLY CO. PLEADS GUILTY IN KICKBACK-FRAUD SCHEME


FORMER OWNER OF FLORIDA AIRLINE FUEL SUPPLY COMPANY PLEADS
GUILTY IN SCHEME TO DEFRAUD ILLINOIS-BASED RYAN INTERNATIONAL
AIRLINES
WASHINGTON — A former owner and operator of a Florida-based airline fuel supply service company pleaded guilty today to participating in a kickback scheme to defraud Illinois-based Ryan International Airlines, a charter airline company located in Rockford, Ill., the Department of Justice announced.

Sean E. Wagner, the former owner and operator of Aviation Fuel International Inc. (AFI), pleaded guilty in the U.S. District Court for the Southern District of Florida in West Palm Beach to one count of conspiracy to commit honest services wire fraud.  On Aug. 13, 2013, a grand jury returned an indictment against Wagner and AFI, charging them for their roles in a conspiracy to defraud Ryan International Airlines.  According to the indictment, Wagner and AFI made kickback payments to Wayne Kepple, a former vice president of ground operations for Ryan, in exchange for awarding business to AFI.  According to court documents, from at least as early as December 2005 through at least August 2009, Wagner and others at AFI made kickback payments to Kepple totaling more than $200,000 in the form of checks, wire transfers, cash and gift cards. The charges against AFI were dismissed on Feb. 21, 2014.
Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.

“These types of kickback schemes subvert the competitive process and increase costs to American consumers,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “The Antitrust Division will vigorously prosecute individuals who defraud American taxpayers and businesses.”

Wagner pleaded guilty to one count of conspiracy to commit honest services wire fraud.  The count carries a maximum sentence of 20 years in prison and a $250,000 criminal fine for individuals.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.

As a result of the ongoing investigation, four other individuals have pleaded guilty and have been ordered to serve sentences ranging from 16 to 87 months in prison and to pay more than $580,000 in restitution.
The charges are the result of an investigation being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General’s Defense Criminal Investigative Service, Southeast Field Office, headed by Special Agent in Charge John F. Khin, with assistance from the U.S. Attorney’s Office for the Southern District of Florida. 

DOD WORKING ON COORDINATED RESPONSE TO CRISIS IN UKRAINE

Right:  Defense Secretary Chuck Hagel, center, Army Gen. Martin E. Dempsey, chairman of the Joint Chiefs of Staff, and Robert F. Hale, the Defense Department's comptroller, testify on the Defense Department's 2015 fiscal year budget request before the House Armed Services Committee in Washington, D.C., March 6, 2014. DOD photo by Erin A. Kirk-Cuomo.  

FROM:  U.S. DEFENSE DEPARTMENT 
DOD Supports U.S., Allied Response to Russia-Ukraine Crisis
By Cheryl Pellerin
American Forces Press Service

WASHINGTON, Mar. 6, 2014 – The Defense Department is working to support the coordinated U.S. response to Russia’s recent aggression toward Ukraine, and to help Ukraine and U.S. allies and partners in the region, DOD and administration officials said here today.

The United States is focusing diplomatic and economic pressure on Russia to de-escalate the crisis in Ukraine, and senior administration and defense officials continue to engage with their Russian counterparts.

Secretary of State John F. Kerry is meeting with Russian Foreign Minister Sergei Lavrov today, for example, and this week the United States announced a $1 billion package of economic assistance to Ukraine, and the European Union announced a $15 billion assistance package.

This morning, President Barack Obama issued an executive order that allows the administration to initiate financial sanctions against Russian and Ukrainian individuals and entities that steal assets, engage in destabilizing activities, or take flight unlawfully. The administration also is imposing visa restrictions on those responsible for violating Ukraine's sovereignty and territorial integrity.
The Defense Department is making substantial contributions to U.S. and international efforts in support of Ukraine. Defense Secretary Chuck Hagel and Chairman of the Joint Chiefs of Staff Army Gen. Martin E. Dempsey summarized the department’s activities this morning in advance of their testimony before the House Armed Services Committee on the president’s fiscal year 2015 defense budget request.

Hagel said he strongly supports the administration’s efforts, including the steps Obama has taken to apply diplomatic and economic pressure on Russia, and the continued collaboration with European partners.

“Earlier this week, I directed the Department of Defense to suspend all military-to-military engagements and exercises with Russia. And yesterday, I announced a series of steps [the department] will take to reinforce allies in Central and Eastern Europe during this crisis,” Hagel told the panel.

The steps include increasing joint training through the DOD aviation detachment in Poland, made up of airmen from the 31st Fighter Wing who train and work with their Polish partners at Lask Air Base in central Poland.

“I was advised this morning that [the partnership at Lask] continues to move forward,” the secretary said, adding that the department also will augment its participation in NATO's Baltic air policing mission. He told the House members that six F-15s have arrived in Lithuania within the past 24 hours.
In his remarks, Dempsey said he is deeply engaged in DOD support of the diplomatic approach to resolving Ukraine's crisis.

“I'm engaged with our NATO allies. I've spoken both yesterday and today with my Russian counterpart, Gen. Valery Gerasimov, and will continue to maintain that line of communication,” Dempsey told the panel.

Also this morning, on a White House background teleconference with reporters, senior administration officials discussed details of the new visa restrictions and the executive order released today in support of Ukraine.

“Since the Russian intervention in Ukraine, you have seen us work on several lines of effort to mobilize international unity, to condemn the Russian intervention, to impose cost on Russia for debt interventions so they are isolated politically and economically [and] to provide additional support for the government in Kiev,” a senior administration official said.

The best way to make sure the rights of Ukrainians and ethnic Russians are being protected is to use international monitoring, he said.

“A monitoring team from the [Organization for Security and Co-operation in Europe] has arrived in Ukraine [and] moved out to different parts of the country. The team has an important set of experiences and capabilities to ensure that basic rights are being protected. We believe that that monitoring mission should expand into Crimea and can be the basis for a way of deescalating the crisis,” the official added.

Representing broad international unity, the North Atlantic Council, European allies and G-7 countries all have condemned Russia’s aggression, he added, and the United States has suspended preparatory meetings for the G-8 in Sochi, Russia.
The United States also has cancelled discussions associated with deepening trade and commercial ties with Russia, the official noted, “and with today's actions we take an additional step to impose costs on Russia and those who are responsible for violating Ukraine's sovereignty and territorial integrity.”

The executive order gives the United States flexibility to target individuals and entities responsible for violating international law and Ukrainian sovereignty, the official said.

“We are also imposing certain visa restrictions that further impose a cost on individuals responsible for the violation of Ukraine's sovereignty and territorial integrity,” the official said.

The senior administration official added, “There are individuals who have had their visas pulled or will be banned from visas, and those individuals -- who I won't give names or numbers -- do include Russians and Ukrainians.”
Such actions should send a strong message that the United States and its allies intend to impose costs on Russia for the Ukrainian intervention, the official added, and they give the United States flexibility to respond based on Russia's actions, whether positive or negative.

SEC COMMISSIONER PIWOWAR'S REMARKS ON INTERNATIONAL FINANCIAL REGULATIONS

FROM:  SECURITIES AND EXCHANGE COMMISSION 
Remarks at AIMA Global Policy & Regulatory Forum
 Commissioner Michael S. Piwowar
New York, NY

March 6, 2014

Thank you, Kathy [Casey], for that kind introduction. Thank you, Kathy and Jiri [Krol], for inviting me to lead off the excellent program that AIMA has put together. I have enjoyed working with both of you over the past few years on numerous global policy and regulatory issues, which is the focus of today’s forum.

In addition to serving as SEC Commissioners, Kathy and I have a lot in common, including the fact that we both studied international politics as undergraduates at Penn State. Many of the concepts that we learned from that curriculum have served us well over the course of our careers, particularly as international financial regulatory issues have become more important in the aftermath of the global financial crisis.

Jiri and I also have something important in common. I remember the first time I met with Jiri, he commented about my last name “Piwowar” which means “Brewer” or “Beer Maker” in Polish. The Polish and Czech languages are very similar, so Jiri knew exactly what it meant. What I did not realize, however, was that Jiri’s last name “Krol” is Czech for “Beer Drinker.” Of course, I’m kidding.

Seriously, I am excited to be here with you this morning to share my thoughts on how I approach the international financial regulatory issues that come before the Commission. But, before I continue, I need to provide the standard disclosure that my remarks are my own and they do not necessarily reflect the views of the Commission or my fellow Commissioners.

International engagement has long been a fundamental aspect of effective capital markets regulation. As Kathy [Casey] noted in a speech she gave while Commissioner in 2007: “If we, as regulators, are to remain effective and relevant in meeting our mission of protecting investors, fostering capital formation and maintaining competitive, fair and orderly markets, we will need to be more nimble and responsive to market developments and rely more on cooperation and collaboration with our international counterparts.”[1]

It has become clear to me over these past few months that at no time in the Commission’s history have we been more engaged with the international community or more involved in collaborative workstreams with our fellow regulators from around the globe.

Much of this international work stems from the 2009 G-20 initiatives regarding over-the-counter (OTC) derivatives reforms.[2] It thus came as little surprise to me that, from the very beginning of my tenure as Commissioner, I have seen a steady stream of visitors eager to discuss the Commission’s approach to the regulation of cross-border OTC derivatives. In addition to sharing their own views and observations on these issues, visitors frequently ask me my personal views on the topic.

I believe I can condense them into a single, concise theory that should provide you with clarity on where I stand on every cross-border issue facing the Commission: “I am a proponent of the rationalization of the global regulatory framework by seeking convergence and harmonization of rules through bilateral and multilateral dialogue and the mutual recognition of comparable regimes based on principles of international comity.”

I am sure that clears things up.

I have been struck by two observations regarding international financial regulatory issues, particularly with respect to OTC derivatives. First, this is an incredibly complex area where actual details matter more than abstract concepts. Second, much of the conversation involves buzzwords and terms of art that may mean different things to different people.

I recognize that labeling regulatory approaches is sometimes constructive and frequently necessary in order to foster dialogue between regulators. However, the two observations I just mentioned often collide with each other as regulators and market participants alike seek to understand how jurisdictions around the world intend to regulate cross-border activities. Broad concepts and terms of art not only fail to provide the specificity required by the financial markets, but also lend themselves to being misconstrued as individuals read into the terms what they seek to get out of them.

We saw a recent example with regard to the so-called “Path Forward” agreement on derivatives regulation negotiated between the Commodity Futures Trading Commission (CFTC) and the European Commission.[3] Not long after the agreement was published, it became clear that the regulators had differing interpretations of the understandings in that document. Surely, neither side intended to mislead the other by agreeing to a set of broad concepts that left significant room for interpretation rather than specific requirements that would have bound both parties. However, the fact remains that the document failed to resolve any of the crippling uncertainty in the market.

At this point you may be questioning how I can critique the reliance on international buzzwords and broad concepts, and yet give a speech in which I share with you some of the broad principles that guide my decision-making in this area?

I raise these issues only to express my view that the use of such terms, while at times helpful, must be met with a healthy dose of skepticism, and cannot serve as a substitute for detailed guidelines. The principles I share with you should be treated the same way. However, my hope is that they will provide you with insight into my thinking as the Commission tackles these complex issues in the near future.

Respect for International Regulators
The first principle guiding my thoughts in this area is respect for my international counterparts.

My education gave me a broad perspective of, and healthy respect for, the international community. My respect for the international financial regulatory community has only grown as I have worked with regulators from around the globe during my professional career at both the Senate Banking Committee and the SEC.

Approaches to regulating the same activity often differ across jurisdictions. This is not surprising given the role that legal traditions and cultural norms play in shaping financial development and regulation. However, we must not let these differences get in the way of cooperation, and lead to unnecessary burdens for market participants or duplicative or conflicting regulations.

Therefore, I reject any notion that we must pull the whole world into the U.S. regulatory sphere, or that other jurisdictions should simply adopt U.S. regulations. This would be neither appropriate given our mission, nor necessary given applicable regulations in other jurisdictions.

I believe that market participants that comply with the regulatory requirements in the jurisdiction in which they are based should, under certain circumstances, be deemed to comply with our requirements in the Dodd-Frank Act Title VII space.

This is probably the area where the most ink is spilled on creating terms of art for use by the international financial regulatory community. It is no wonder that this occurs, however, because allowing for compliance with home country requirements in this manner is vital to creating an effective global regulatory environment.

As a result, I believe we should apply this principle broadly, and expect that regulators in other jurisdictions will do the same. Determinations about which jurisdictions qualify for this type of treatment should be based on a minimum level of acceptable regulation, and focused on regulatory outcomes rather than a rule-by-rule comparison.

In addition, where differences in the timing of compliance dates among jurisdictions arise, we should provide reasonable relief to market participants in the interim period. The implementation of enhanced regulation for OTC derivatives represents the creation of a long-term system of oversight, and must not be used as a short-term power grab between regulators or jurisdictions. Market participants should not pay the price — either directly through increased compliance and restructuring costs or indirectly through market uncertainty — for differences in their regulators’ compliance dates.

Territorial Approach to Regulation
The second principle that guides my thoughts on cross-border applications of Commission regulations is that the Commission should take a territorial approach.

The territorial approach to regulation has a long history at the Commission,[4] and there is no reason to abandon it as we develop the new framework for OTC derivatives regulation.

Of course, a territorial approach to regulation may itself be viewed as a term of art. In using this term in the context of OTC derivatives, I mean that the Commission’s regulation of cross-border OTC derivatives activity should generally apply to transactions involving activity within the United States. An activity may be deemed to occur within the United States either because a transaction is entered into with a U.S. person, or because it is conducted within the United States.

These concepts are only given meaning through the definitions applied to them. I could spend this entire speech talking about the definition of the term “U.S. person,” but for now I will simply convey the two essential aspects of this definition.

First, the definition of U.S. person must be clearly defined and easily applied. Market participants will inevitably be required to build out their compliance systems to account for how this term is defined. It is our job as regulators to give them clear guidelines to follow.

Second, the definition of U.S. person must be limited in scope. We should not attempt to expand the reach of our rules by creating an unreasonably broad definition.

The definition of what constitutes a “transaction conducted within the United States” is also an important aspect of the territorial approach to regulation. It ensures that all market participants operating within the United States are subject to the same rules and that everyone entering into transactions in the U.S. market receives the same protections.

However, it is important to note that not all activities that touch the United States should be drawn into its regulatory sphere. For example, a phone call from abroad made to someone in the United States seeking OTC derivatives market color is not the type of activity that should trigger application of our regulations.

Predictable Changes in Behavior in Response to Regulation
Another key principle in this area is that we should consider the predictable changes in behavior by market participants in response to regulation.

Markets are dynamic and constantly changing. As a result, market participants must be creative and able to adapt. It would be naïve and foolish for regulators to think that we can completely control markets and prevent market participants from pursuing their economic interests.

If we adopt unnecessarily harsh regulations in the United States, we must expect that market participants will adapt. This could involve structuring business activities away from our jurisdictional reach, which some call regulatory arbitrage. We should not be surprised by this activity, nor should we condemn it. It would not be nefarious. Rather, it would simply be a rational response to overly burdensome regulation.

It would also be naïve and foolish for regulators to downplay the impact of our decisions on markets and the burdens they place on market participants. We know that increased regulation is not costless. Market regulators must always strive to implement effective regulation that adequately protects investors. However, we must do so in full recognition of the tradeoffs and costs associated with our rules. These costs can burden our economy and ultimately hurt investors.

It is not just the potential increased costs associated with our regulations that we must consider. We must also recognize that, with truly global capital markets, our actions have the power to shift the markets themselves. If our rules are unnecessarily harsh and we reject international cooperation, market participants may rationally seek other jurisdictions in which to operate.

If this happens, we must own up to the fact that our own actions — even ones undertaken with the best of intentions — can result in less regulatory transparency, less effective regulation, fewer protections for investors, higher prices, fewer productive jobs, and slower economic growth.

Regulatory Process Matters
This leads me to my final point — regulatory process matters.

Just as we cannot ignore the impacts associated with our rules, we must not ignore the appropriate process for developing them. That process includes a rigorous economic analysis, which includes identifying and evaluating reasonable alternatives to the proposed regulatory approach.[5]

The regulation of cross-border OTC derivatives activity involves many decision points, each with a number of viable alternatives. In developing our final rules in this area, we must engage in a thoughtful economic analysis to guide our decision-making process. The importance of the rulemaking process is highlighted by the current state of OTC derivatives regulation in the United States.

As I am sure all of you are aware, both the SEC and CFTC have been tasked with implementing portions of Title VII, including application of the statute to cross-border activities. The SEC has undertaken a methodical, deliberative process that includes the publication of a comprehensive document in May 2013 containing proposed rules developed with the insight of a thoughtful economic analysis.[6] SEC staff is currently reviewing the public comments on that proposal, and I expect that in the near future we will adopt final rules in this area that reflect the comments received and that are based on sound analysis of the economic consequences of the rules.

The CFTC, on the other hand, chose not to engage in a disciplined rulemaking process, and instead attempted to address these same issues by publishing “interpretive guidance” in July 2012.[7] This interpretive guidance did not contain clear rules, and was not based on any economic analysis. It is therefore not surprising that the guidance received widespread condemnation by foreign regulators. In December 2012, the CFTC responded with “further” interpretive guidance[8] that received so much criticism from foreign governments and regulators that the House Committee on Agriculture held a hearing a few weeks later.[9] In July 2013, the CFTC issued “final” interpretive guidance on the cross-border application of the swap provisions added by the Dodd-Frank Act.[10] Lacking the clarity and finality achievable through the rulemaking process, the CFTC’s final guidance has now been called into question through litigation, injecting further uncertainty into the markets.[11]

While the CFTC’s guidance is currently tied up in the courts for an indeterminate period of time, I can envision the SEC’s methodical approach to these issues bearing fruit in the form of a robust final rule in the coming months. Aesop, the ancient Greek story teller, would be quite happy looking at the state of Title VII regulation right now. His fabled story of the tortoise and the hare seems quite appropriate, with its overarching message that “Slow and steady wins the race.”

Conclusion
In closing, it bears repeating that the application of Dodd-Frank Act Title VII provisions to cross-border OTC derivatives activities is an incredibly complex area that does not lend itself to mere generalities. That is precisely why many of the common terms of art used in international dialogue are not always helpful.

Market participants do not need to know whether their regulators support abstract notions of mutual recognition, comparability assessments, or international comity. They do need to know whether their transactions must be reported, cleared, or traded on an exchange, and where they can undertake those activities.

I trust that my remarks give you a better sense of how I intend to approach international financial regulatory issues, including the final cross-border OTC derivatives rulemaking. I further hope that the Commission, as a whole, will follow the old adage “the little things you do matter more than the big things you say” and rely more on cooperation and collaboration with our international counterparts as we work together to develop an effective global financial regulatory framework that is consistent with our mission of protecting investors, maintaining fair, orderly and efficient markets, and promoting capital formation.

Thank you. Enjoy the rest of the day.


[1] Remarks at the Institute of International Bankers Fall Membership Luncheon by Commissioner Kathleen L. Casey (Oct. 9, 2007), available at http://www.sec.gov/news/speech/2007/spch100907klc.htm.

[2] See Leaders’ Statement at the Pittsburgh Summit, G-20 Meeting (Sept. 25, 2009), available at http://www.treasury.gov/resource-center/international/g7-g20/Documents/pittsburgh_summit_leaders_statement_250909.pdf.

[3] Cross-Border Regulation of Swaps/Derivatives Discussions between the Commodity Futures Trading Commission and the European Union — A Path Forward (July 11, 2013), available at http://www.cftc.gov/PressRoom/PressReleases/pr6640-13.

[4] See, e.g., Registration Requirements for Foreign Broker-Dealers, Securities Exchange Act Release No. 27017, 54 F.R. 30013, 30016 (July 18, 1989).

[5] See, e.g., Current Guidance on Economic Analysis in SEC Rulemakings (Mar. 6, 2012), available at http://www.sec.gov/divisions/riskfin/rsfi_guidance_econ_analy_secrulemaking.pdf.

[6] Cross-Border Security-Based Swap Activities; Re-Proposal of Regulation SBSR and Certain Rules and Forms Relating to the Registration of Security-Based Swap Dealers and Major Security-Based Swap Participants; Proposed Rule, Securities Exchange Act Release No. 69490, 78 F.R. 30967 (May 23, 2013), available at http://www.gpo.gov/fdsys/pkg/FR-2013-05-23/pdf/2013-10835.pdf.

[7] See Cross-Border Application of Swaps Provisions, U.S. Commodity Futures Trading Commission website, available at http://www.cftc.gov/LawRegulation/DoddFrankAct/Rulemakings/Cross-BorderApplicationofSwapsProvisions/index.htm.

[8] Id.

[9] See Dodd-Frank Derivatives Reform: Challenges Facing U.S. and International Markets Before the Subcommittee On General Farm Commodities and Risk Management of the House Committee on Agriculture (Dec. 13, 2012). Hearing transcript, testimonies, and other documents are available at http://agriculture.house.gov/hearing/dodd-frank-derivatives-reform-challenges-facing-us-and-international-markets.

[10] See Cross-Border Application of Swaps Provisions, U.S. Commodity Futures Trading Commission website, available at http://www.cftc.gov/LawRegulation/DoddFrankAct/Rulemakings/Cross-BorderApplicationofSwapsProvisions/index.htm. See also Statement of Dissent by Commissioner Scott D. O’Malia, Interpretive Guidance and Policy Statement Regarding Compliance With Certain Swap Regulations and Related Exemptive Order (July 12, 2013), available at http://www.cftc.gov/PressRoom/SpeechesTestimony/omaliastatement071213b.

[11] Securities Industry and Financial Markets Association, International Swaps and Derivatives Association, and Institute of International Bankers v. United States Commodity Futures Trading Commission, No. 13-CV-1916 (D.D.C. filed Dec. 4, 2013).

Oversight of Contractor Performance Information

http://www.gsa.gov/portal/content/187351

SECRETARY KERRY'S PRESS AVAILABILITY IN ROME, ITALY

FROM:  U.S. STATE DEPARTMENT 

Press Availability in Rome, Italy

Press Availability
John Kerry
Secretary of State
Rome, Italy
March 6, 2014


SECRETARY KERRY: (In Italian.) Good evening, everybody. It’s a great pleasure for me to be back in Rome. I’m especially pleased to be here in Rome at a time when Italy is making a transition in a – with a new government and making progress, important progress, on growing its economy and tackling unemployment. Tonight, I will have the pleasure of meeting with Italy’s new foreign minister, Foreign Minister Mogherini, and I’m hopeful – we were supposed to also be joined by the prime minister, but he’s on his way back from Brussels, may be a little bit delayed, but we hope he can make it.

I want to assure our Italian friends that the United States intends to continue to deepen our economic and security partnership with this government, including our shared commitment to negotiating an ambitious transatlantic trade and partnership – investment partnership agreement. We believe that such an agreement would be enormously helpful to all of our economies – good for Europe, good for the United States. It will create jobs. It can help create wealth. And at this time, the global economy needs that kind of trade partnership. President Obama, as you know, will be here shortly at the end of March, and I look forward to joining him here at that time in order to talk about these valuable partnerships and many other issues.
The reason that my counterparts and I came to Rome today was to demonstrate our commitment all together – the huge number of countries that came together to demonstrate our commitment to Libya’s democratic transition. And we recognize that this is really a pivotal moment for Libya as it drafts a post-revolution constitution and moves towards national reconciliation and elections. I can tell you that we in America, who are still perfecting our democracy and working and struggling to make it work as effectively as possible, and it goes up and down as we all know – we very well know from our own history the difficulties we had centuries ago in developing our constitution and giving it full bloom that this is hard work. It doesn’t happen overnight. And it is something that takes devotion and commitment and courage. And I think today, we heard from the prime minister and the president of Libya their dedication to helping to make this transition work.

We also know that Libyans did not risk their lives in the 2011 revolution just to slip backward into thuggery and violence. And as I told President Abu Sahmain today as well as Prime Minister Zeidan, we have no illusions about the challenges ahead, but we are committed to work very, very closely with the Government of Libya, but also with our partners, and Italy is one of the central partners in the effort to help Libya in this transition together with France, Great Britain, Germany, and others. And we will continue to work closely to fight terrorism, to prevent the spread of conventional weapons and to secure those weapons where they should be secured, and to build democratic institutions.

Now, let me say a word about a subject that I know is on everybody’s mind, and that’s the question of Ukraine. Just a few moments ago, President Obama spoke in Washington and laid out the steps that he has ordered with respect to this situation at this time, which are in keeping with precisely what we said last week we would do as a consequence of the steps that Russia decided to take with respect to Crimea. As you have heard me say all week, the choices that Russia has made escalated this situation, and we believe that Russia has the opportunity now – together with the rest of us – but Russia particularly has the opportunity now to make the right choices in order to de-escalate.

The United States also has choices to make, and President Obama has been clear that we cannot allow Russia or any country to defy international law with impunity. There’s no place in the community of nations for the kind of aggression and steps that we have seen taken in Crimea in Ukraine in these last days.

So today, as we announced we would last week, we have taken specific steps, and the State Department also has taken specific steps in response to what has occurred. Starting today, at President Obama’s direction, the State Department is putting in place tough visa restrictions on a number of officials and other individuals. And the United States will not grant visas to those who threaten the sovereignty or territorial integrity of Ukraine, and if they already have one, it will be revoked in those individual cases.

Now, let me remind you that this decision comes on top of our existing policy to deny visas to those who are involved in human rights abuses or political oppression in Ukraine. And it is also on top of other steps that the United States has already taken which we have announced. Now, at the same time, President Obama has issued an executive order that gives the Treasury Department the legal framework to sanction those who threaten Ukraine’s sovereignty, security, and democracy, those who contribute to the misappropriation of Ukraine’s state assets, and just as importantly, those who try to assert government authority over any part of Ukraine without authorization from the legitimate government in Kyiv.

I want to emphasize – and there’s a reason why only the legal framework was put in place and not the specific designations – and that reason is that even as we will keep faith with what we have said we would do, we want to be able to have the dialogue that leads to the de-escalation. We want to be able to continue the intense discussions with both sides in order to try to normalize and end this crisis. And we will absolutely consider, if we have to, additional steps beyond what we’ve done. But our preference – and the President has said this and I have said this – is to emphasize the possibilities for the dialogue that can lead to the normalization and defusing of this crisis.

Now, yesterday in Paris, we had lengthy discussions and we met also, obviously, with our Ukrainian counterpart, the foreign minister of Ukraine, and discussed with him Ukrainian thoughts about what should form the centerpiece of our approach to this effort to negotiate. And with the Ukrainian view in mind and with the input of all of our allies in the European community, we have made suggestions to Foreign Minister Lavrov which he is currently taking personally to President Putin in Sochi, I believe, and we have agreed to stay in close touch in order to see if there is a way forward, and try to get to the negotiating table with the parties necessary to be able to stabilize this.

We’ve been in very close touch all day with our European counterparts – both those who were here in Rome as well as by telephone for those who were in Brussels. And we agreed that over the course of the next hours, next days, there is an imperative to try to move quickly in order to prevent a mistake or misinterpretation or any other measures that might preclude our opportunity to be able to find the political solution that we believe is the best way to proceed.
The Ukrainian people, we are convinced beyond any doubt whatsoever, want nothing more than the right to determine their own future, and they want to be able to live freely in a safe and prosperous country where they can make the choices that people make in other countries around the world. And they have the international community’s full support, and while we reserve the right to take steps beyond those things that were announced today, we want President Putin and Russia and everyone to understand our preference is to get back to a normality and get back to a place where the rights of the people of Ukraine will be respected and the territorial integrity and sovereignty of the nation will be respected.

The United States will continue to stand with the Ukrainian people, as will our allies and friends in the European community and elsewhere, in order to stand up for the values that we all believe in our fellow – that define our fellow democracies. So thank you very, very much, and I look forward to the opportunity to take a couple questions.

MS. HARF: Great, thank you. The first question is from Elise Labott of CNN.

QUESTION: Thank you, Mr. Secretary. You said that the Ukrainian people have the right to determine their own future. Does that include the people of Crimea? Don’t they have the right to determine their own future? Are there any conditions under which the U.S. might accept a referendum as part of the solution?

And then on your meeting with Foreign Minister Lavrov, Minister Fabius said that he’s forming this contact group and that the Russians might agree. Did you talk about this with the minister, and do you see this as a useful mechanism that might happen in the coming days?
And lastly, I’m wondering if you talked to him about the fact that he told you last week that the exercises that the Russians were doing had nothing to do with Ukraine. We now know that that was a pretext to mask the Russian intervention.

SECRETARY KERRY: What was the first part of that question? I’m sorry.

QUESTION: Well, we understand that --

SECRETARY KERRY: We now know what?

QUESTION: Well, we know that the – this exercise did have a lot to do with the Ukraine and perhaps it was a pretext for Russia to go into the Crimea. I’m just wondering – you’ve invested a lot in your relationship with Minister Lavrov, and I’m wondering if you feel misled by him at all and whether you spoke with him about that. Thank you.

SECRETARY KERRY: Well, let me take the first part of that question. Crimea is part of Ukraine. Crimea is Ukraine. And we support the territorial integrity of Ukraine, and the Government of Ukraine needs to be involved in any kind of decision with respect to any part of Ukraine. Any referendum on Ukraine is going to have to be absolutely consistent with Ukrainian law. And it’s my understanding that the constitution of Ukraine requires all – requires an all-Ukraine referendum; in other words, every part of Ukraine, all Ukrainians, would have to be part of a referendum with respect to the territory of Ukraine. So therefore, the proposed referendum would violate the constitution of Ukraine and international law and the sovereignty of Ukraine itself.

QUESTION: But if it was a Ukraine-wide referendum --

SECRETARY KERRY: If it were – if it adheres to the constitution of Ukraine, it’s up to Ukrainians to define that. It’s not up to the United States or Russia to make that decision. Ukrainians need to live by Ukrainian law and according to the constitution, and their constitution would require precisely what I just said. So that is, I think, critical to anything that would flow.
Secondly, with respect to a contact group and where we’re proceeding, frankly, I think everybody has been working to put a contact group together. I think it’s been a general assumption of all of us in unity that we would like to see if a contact group can be put together. And I think that the key here is whether or not that is going to be something that will work in the context of Russia’s willingness to do this, and obviously Ukrainian views about this.
Thus far, the Ukrainian Government has expressed their desire to have the support of a contact group, providing, of course, that the government – that Russia is dealing with them in that context. This can’t be in lieu of the respect for the existing Government of Ukraine, and we don’t intend for it to be, and none of us who have been part of the discussions about a contact group view this as anything except supportive of the process. But I believe there is a way to structure this, and that is obviously part of what we are now engaged in discussions with Russia through Foreign Minister Lavrov and to Mr. Putin.

With respect to the relationship with Foreign Minister Lavrov, it’s professional, as all of my relationships are with any foreign minister. There are moments in the course of a meeting over a year where you may be able to laugh at something, and there are moments where you disagree and disagree very strongly. And we work professionally, both of us, to represent our countries, represent our point of views, and try to get the work of diplomacy done.
This is obviously a moment where we have disagreement, as we do on some other issues. But where we can, we try to find a way forward, whether it’s been on chemical weapons in Syria or with respect to Iran and P5+1, or the enforcement of the START treaty and other kinds of issues, Afghanistan and other things.

So we will continue to work in a professional manner in order to try to resolve those issues that come to us and to try to do so in a way that advances the global interests of peace and stability and security. And that’s what I’m trying to do.

So another question.

MS. HARF: Great. Our final question comes from Oliviero Bergamini from TG1. Thank you.

QUESTION: Buonasera, Mr. Secretary. Are you satisfied with the way the European Union is dealing with this crisis? Because there seems to be quite a distance between countries like Poland that are really close to the position of the United States, and countries like Germany, and Italy to some extent, they get a lot of their energy supplies from Russia, they seem to be much softer on the theme of economic sanctions and so on. That’s actually the reason why Prime Minister Renzi might be late for dinner because they are not finding an agreement right now in Brussels.

SECRETARY KERRY: Well, actually, they did announce an agreement in Brussels, and --

QUESTION: Okay. Yeah, there was something. So do you – how do you see the attitude of the European Union?

SECRETARY KERRY: I think the European Union has been extremely cooperative and has been a partner in this thoroughly. There’s been a complete and total communication and sharing of information and sharing of ideas. I do not believe there is a gap. There may be some differences of opinion about timing or about one particular choice versus another. That’s not unusual when you have as many countries working together as we do.

But fundamentally with respect to the question of what has happened and the need to protect the territorial integrity and sovereignty of Ukraine, there is no difference whatsoever. With respect to the need to have some sanctions as a result of what has happened in Crimea, there is no difference whatsoever. And Europe on its own tonight has made its announcement through its own process and own debate that they have taken some steps.

Now, Europe joins us in absolutely believing that we are all better served by getting back to a normality and a stability that will come through good diplomacy and good efforts to try to find a path forward that can protect the territorial integrity of Ukraine, protect legitimate interests where they exist of ethnic Russians and/or of other agreements like the base agreement and other things that Russia has that are in law. Those are things that we can deal with. And our hope is that together – Europe, the United States, and others, Canada, Japan – there are a lot of countries interested in what is happening. And I think they all want to be supportive for a process that de-escalates, that reduces tension.

We have a lot of things to do together. We do not need to be distracted or split apart by virtue of what has happened in Ukraine. I think it is fair to say, and I have said that Russia does have some interests in the region. But they need to be dealt with according to law and in a proper way, and dealt with in a way that can respect the integrity of the country, and that’s what we’re trying to do.

At the same time, the Ukrainian people have an overriding interest, a paramount interest here in having their rights protected, their sovereignty protected, their hopes and aspirations which they died to achieve, that needs to be respected. And that’s the tension here, and that’s the – that’s what we’re trying to balance as we approach a diplomatic and peaceful resolution of this, rather than an escalation that could harm the efforts of a lot of other initiatives that we all are focused on.

Thank you all very much. Appreciate it.

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