REMARKS BY ASSISTANT SECRETARY COUNTRYMAN ON EFFORTS TO ELIMINATE SYRIAN CHEMICAL WEAPONS

FROM:  U.S. STATE DEPARTMENT 

Efforts of the United Nations and the Organisation for the Prohibition of Chemical Weapons to Accomplish the Elimination of Syrian Chemical Weapons

Remarks

Thomas M. Countryman
Assistant Secretary, Bureau of International Security and Nonproliferation

Senate Foreign Relations Committee

Washington, DC

March 26, 2014

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Chairman Menendez, Ranking Member Corker, and Members of the Committee; thank you for the opportunity to testify today about international efforts to support the United Nations (UN) and the Organisation for the Prohibition of Chemical Weapons (OPCW) in the complete and verifiable elimination of the Syrian chemical weapons program. While we have made important progress in the past months toward the elimination of Syria’s chemicals weapons program, considerable work remains to be done to ensure the Asad regime can never again use these terrible weapons against its own people, or threaten our regional and international partners with them.

Just last year, the regime did not even publicly acknowledge that it possessed chemical weapons, despite having used them on multiple occasions, including in attacks that killed over 1,400 people. Today, OPCW inspectors on the ground in Syria, with UN support, have conducted full inspections of Syria’s declared chemical weapons-related sites, and have verified the functional destruction of the chemical weapons production, mixing, and filling equipment at those sites. In addition, as of today, more than 49 percent of Syria’s declared chemical weapons materials slated for destruction outside of Syria have been removed, including all of Syria’s declared sulfur mustard agent, and the OPCW has verified the destruction in Syria of 93 percent of Syria’s declared isopropanol, a binary component of the nerve agent sarin. But that’s not good enough. Syria has yet to remove 65 percent of its most dangerous (Priority 1) declared chemicals. We must continue to work with the international community to maintain pressure on the Asad regime to remove all of these chemicals as urgently as possible.

The international community has established a firm legal framework, through UN Security Council Resolution (UNSCR) 2118 and decisions of the OPCW Executive Council, to ensure that this immense undertaking is completed in a transparent, expeditious, and verifiable manner, with a target for destroying all of Syria’s declared chemicals by June 30 of this year.
The progress made in the past months has been achieved by diplomacy backed by a willingness to use military force. It remains critically important, as this process continues, that members of the international community continue to monitor closely the Syrian regime’s compliance with its Chemical Weapons Convention (CWC)-related obligations. Syria’s obligations are clear, and we will continue to underscore the importance of the Asad regime’s continued cooperation. The Security Council decided in UNSCR 2118 to impose Chapter VII measures in the event of non-compliance with the resolution.

While we have made progress, the task before us remains considerable. After months of Syrian foot dragging, we have made clear to the Asad regime that the internationally agreed upon schedule for chemical weapons destruction is simply not up for negotiation; the regime has all the equipment that it needs and has run out of excuses. We remain focused on underscoring the need for Syria to move forward rapidly with transporting chemical weapons materials to the port of Latakia for removal, consistent with its responsibilities under the CWC and UNSCR 2118. The next few weeks are critical in the removal effort, and we and the rest of the world are watching. We have, of course, also been in contact with Syrian opposition leaders, updating them throughout this process, and confirming their commitment that they will not interfere with the activities of the international elimination effort.

With the continuing support of the international community, and the dedicated commitment of the OPCW-UN Joint Mission, we believe the Syrians are capable of completing the removal effort by late April. The international community continues to work toward the June 30 target date for the complete elimination of the program. While Syrian delays have placed that timeline in some danger, we continue to believe they remain achievable.

The path ahead is not an easy one. Syria has missed several intermediate target dates, including most recently the target date for the destruction of chemical weapons production facilities. The regime must meet all chemical weapons destruction obligations, including for the physical destruction of chemical weapons production facilities, consistent with the CWC. The OPCW is currently advising Syria on an appropriate facilities destruction plan. It is essential that Syria accept its recommendations, and submit a revised facilities destruction plan for consideration by the OPCW Executive Council at its next scheduled meeting.

The United States and the international community have provided extensive assistance to the international effort to eliminate the Syrian chemical weapons program. There are no more excuses on the part of the Asad regime for not meeting the agreed timeline. We continue to encourage all countries to make whatever contribution they can to this important undertaking – whether that contribution is financial, technical, or in-kind – to enable the OPCW and UN to complete their missions. The United States has led by example in providing tens of millions of dollars in assistance to the OPCW-UN Joint Mission, including the provision of containers, trucks, forklifts and other materials necessary for the safe transportation of chemical weapons materials in Syria. The State Department’s Nonproliferation and Disarmament Fund has provided eight million dollars in financial and in-kind assistance to the OPCW inspection team, including armored vehicles, training, protective equipment, and medical countermeasures. Most significantly, the United States is also contributing unique capabilities to the elimination effort through the Department of Defense’s provision of a U.S. vessel, the Motor Vessel (M/V) Cape Ray, equipped with deployable hydrolysis technology to neutralize at sea Syria’s highest priority chemical weapons materials (sulfur mustard agent and the sarin precursor chemical, DF).

While U.S. contributions to the elimination efforts are significant, this is ultimately a mission that reflects a remarkable international division of labor. Many of our international partners are participating and providing financial and in-kind assistance that is critical to the effort’s success: Danish and Norwegian ships (with Finnish and British support) are removing chemical weapons materials from the Syrian port of Latakia. Russia and China are assisting with security in Syrian territorial waters for the port loading operations. Italy has agreed to provide a port to allow transloading operations from the Danish cargo ship to the Cape Ray. The United Kingdom has agreed to destroy nerve agent precursor chemicals through commercial incineration. Germany has agreed to destroy the by-product resulting from neutralization of the sulfur mustard agent aboard the M/V Cape Ray as an in-kind contribution. Countries like Japan, Canada, the European Union and many other states have made generous financial contributions. Companies in the United States and Finland have been awarded contracts from the OPCW for the destruction of the remaining materials.

As the removal and elimination process continues, we will also continue to fully support the OPCW’s verification and inspection efforts, to ensure the accuracy and completeness of Syria’s declaration. We have never taken the Asad regime at its word, and will continue to press for a robust verification regime to ensure the absence of undeclared materials and facilities. We approach this process with our eyes wide open, and will insist on international verification.

The path ahead will not be smooth, given the unprecedented scope and timeline for the mission. But we remain resolute in addressing these challenges, given the high stakes for the Syrian people, the region, and the world. Thank you again for the opportunity to discuss this important issue with you. I look forward to your questions and to consulting with you closely as we continue our efforts to verifiably eliminate Syria’s chemical weapons program.

REMARKS ON ELIMINATION OF SYRIAN CHEMICAL WEAPONS BY ASSISTANT SECRETARY PATTERSON

Statement for the Record - Elimination of Syrian Chemical Weapons

Remarks

Anne W. Patterson
Assistant Secretary, Bureau of Near Eastern Affairs

Senate Foreign Relations Committee

Washington, DC

March 26, 2014

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Thank you, Mr. Chairman, Ranking Member Corker and Members of the Committee, for inviting me today to discuss the crisis in Syria. I am well aware that many members of this Committee are not satisfied with our progress to date. Neither are we. Let me say that the Administration appreciates your concern and the support this committee has shown for efforts to address this challenge.

The Committee heard from Deputy Secretary Burns three weeks ago on the challenge of sectarian and extremist violence related to the conflict. Today I will supplement Deputy Secretary Burns’ remarks by describing the coordinated strategy that we are developing. I am pleased to be accompanied today by my colleague, Assistant Secretary for International Security and Nonproliferation Tom Countryman, who will address the international community’s progress in the removal and destruction of Syria’s chemical weapons.

The Crisis

The popular demands for economic and political reform sweeping the Middle East began three years ago in Syria as peaceful protests. Syria’s large youthful population sought an end to oppression and new opportunities. The Asad regime’s response to these demands has torn the nation apart, fueling extremism and inflaming regional tensions.

More than 146,000 people have been killed since the unrest and violence began. The number of conflict-affected civilians seeking refuge in neighboring countries has increased to more than 2.5 million people while, inside Syria, an additional 6.5 million people are displaced and at least 9.3 million people are in need of humanitarian assistance. The U.N. Security Council has condemned the denial of humanitarian access to civilians in need and has urged immediate steps to facilitate relief operations throughout the country, yet the regime has continued to obstruct humanitarian access. Again last week, the U.N. Commission of Inquiry on Syria reported on the continuing human rights violations being committed by the regime, as well as human rights abuses by the al-Qaeda linked groups and their offshoots that have taken root in the ungoverned spaces that Asad’s actions and atrocities have created.

Opposition to the Asad regime in Syria is broad and deep. Most Syrians who side with the opposition are moderates. In large areas of the country they have thrown off regime control, yet the situation on the ground is constantly in flux. In some areas, regime forces – with Hizballah and Iranian Revolutionary Guard support – have regained control of territory they had lost earlier in the conflict. Syrian troops are well armed with Iranian and Russian weapons, and also resort to barrel bombs or starvation to terrorize civilians. But peace will not come to Syria from a military victory. The only sustainable solution to the Syria crisis is a negotiated political settlement.

The United States is a leader of the ‘London 11’ contact group that has worked to move forward the Syrian transition, end the violence, and achieve a political solution. Although the U.N.-sponsored Geneva II negotiations have stalled due to regime intransigence aided by the tacit support of Russia, the process served to unify components of the Syrian opposition and to enable it to articulate its vision for a transitional government.

The continuing civil war has proved a magnet for foreign violent extremists – some with substantial combat experience – who are drawn to the ungoverned regions left by the deterioration of the Asad regime. Our colleagues at the Office of the Director of National Intelligence have estimated that there are nearly 23,000 violent extremist fighters in Syria, including more than 7,000 foreign fighters. They represent a minority of the total rebel ranks inside Syria, which are estimated to be between 75,000 – 110,000 fighters. The violent extremist fighters belong to several groups but most notably al-Qaeda’s official affiliate in Syria, Nusra Front, and the Islamic State of Iraq and the Levant (ISIL), formerly known as al-Qaeda in Iraq, whose new name indicates its growing ambitions. ISIL is responsible for most of the violence that has been taking place in Iraq’s Anbar province aimed at destabilizing Iraq. These groups offer weapons and money to Syrian men who oppose the regime, yet who might not otherwise be drawn to violent extremist causes but for the money and avenue for action against the regime they provide.

Bashar al-Asad bears responsibility for this metastasizing problem. His regime has released terrorists from its jails, allowed violent extremist bases to emerge, and invited other foreign terrorist organizations including Lebanese Hizballah, as well as Iranian-trained militia fighters from Iraq and Pakistan, to join the fight on its side.

Mr. Chairman, we are reviewing our policy and identifying priorities for coordinated action.

Countering Violent Extremist Activity

In Pakistan, we clearly saw the dangers that arise when terrorists are able to set up safe havens – and how difficult and costly in lives and money it becomes to dislodge or destroy them. For that reason, a top priority in the Syria crisis is preventing the establishment of a permanent terrorist safe-haven. In coordination with allies and partners, we are now better organizing ourselves to address the growing challenge of violent extremist fighters in Syria and the flow of these fighters into and out of the country. With our partners, we will apply tools, tactics, and best practices to mitigate potential threats and build upon existing lines of cooperation.

We are working with members of the opposition, Syria’s neighbors and other regional states to cut off their sources of funding and recruits. Saudi Arabia has criminalized participation in foreign conflicts by its citizens and is prosecuting individuals who have done so. Our allies in the Gulf increasingly, and correctly, see the flood of violent extremists from their countries as a threat to themselves. We have new initiatives to work with our allies to identify violent extremists who have travelled to the region.

We are also working to strengthen the moderate Syrian opposition, both inside and outside of Syria, because they are now facing a two-front war against both the Asad regime and the violent extremists.

Preventing Collapse and Nonlethal Support

In parts of Syria where the regime has been ousted, we want to prevent the wholesale collapse of Syria’s institutions and public services and keep regime hardliners and violent extremists from asserting control. As the fighting has continued, the regime has increasingly targeted civilian populations by denying basic services and cutting them off from food, fuel and medical care. But some provincial and local councils and civil society organizations continue struggling, against great odds, to maintain local government and continue critical services. We need to help them.

Mr. Chairman, members of this committee have been rightly concerned about the pace and effectiveness of support for the civilian opposition. Without a direct U.S. government presence inside the country – as well as control of many border entry points by al-Qaeda-linked groups or their offshoots – it has been difficult to increase our assistance to the Syrian opposition. Our strategy had been to use $260 million in non-lethal assistance to link the Syrian Coalition (SOC) to councils and NGOs inside the country, helping to unify and strengthen the opposition.
However, based on our experience on the ground over the past year, we have been refocusing our activity. Over the past few months the State Department and USAID have stepped up efforts to channel resources directly to local and provincial governments and civil society groups, as well as the SOC.

Our focus is increasingly on ways to help communities maintain basic security, keep the lights on, provide water, food and basic medical care – staving off the advances of extremist groups who seek to exploit peoples’ desperation. It allows these localities to maintain the basic public institutions that will be so critical in rebuilding a post-Asad Syria.

In towns and cities under opposition control, we are beginning to provide cash grants to pay local law enforcement and teachers. We continue to train local councils and civil society organizations in administration and local governance. And we are providing equipment and supplies to help them, including heavy equipment such as generators, cranes, trucks, and ambulances. In one major city, for example, we have helped reopen 17 schools serving 9,300 students. In another major city, we funded the refurbishment of 60 police stations and are providing non-lethal equipment and basic stipends to 1,300 policemen, who are struggling to maintain order. Paying stipends not only helps keep these people on the job, but it also helps deprive the extremist groups of the chance to fill the vacuum themselves.

Make no mistake: this is extremely difficult work and nobody is saying that this assistance will turn the tide against what remains an extremely serious and deteriorating situation. As we learned in Iraq – even with 160,000 American troops, ten years of effort, tens of thousands of schools refurbished, and hundreds of millions of dollars spent – it takes generations to restore stability in societies wrecked by decades of dictatorship and civil wars. We are determined, however, to stand with those struggling to rebuild and stabilize their local communities even in the most horrific circumstances imaginable. These brave individuals will be the future leaders of Syria; they deserve our support, and they will continue to receive it through the types of assistance I just described.

As part of this $260 million in non-lethal overall assistance, moreover, we are providing $80 million in support to the Supreme Military Command (SMC). Providing this support to groups engaged in a highly fluid battle zone has been challenging. In December, an SMC warehouse in Syria containing U.S. supplies was overrun by a faction of extremist fighters. We suspended SMC assistance until they could reestablish secure supply routes and storage facilities. By February, when the SMC regained control of its facility and accounted for its contents, we began sending supplies again – this time directly to trusted commanders.
In providing non-lethal assistance to the SMC, needs are identified by commanders and have included food rations, medical kits, and vehicles – as well as communications and other personal gear. These supplies not only fill gaps identified by opposition troops fighting both the regime and violent extremists, but they are tangible evidence of our support for the moderate opposition.

Although a leadership debate has opened up within the SMC – as the Syrian opposition discusses how to fight the regime more effectively – the dispute has not affected our ability to deliver non-lethal assistance to the moderate armed opposition through trusted commanders.
None of the non-lethal assistance we are providing will be determinative in defeating regime forces, nor will it, on its own, force Asad to change his calculus about trying to hold on to power. However, our assistance does provide needed equipment while sending a signal both to those inside and outside Syria of our strong support for the moderate opposition; help maintain basic administrative institutions; help prevent the formation of vacuums in services and security that extremists aggressively exploit; and create relationships with moderates who can, when this conflict is over, form the basis of a transitional government.

Eliminating the Threat of Chemical Weapons

The Asad regime used chemical weapons against its citizens, and its continued possession of chemical weapons material represents a sustained danger to Syria’s population and all of its neighbors, including Israel. Last year, the international community, led by the United States and Russia, united to defend a long-standing international norm against the use of chemical weapons. Under a Joint Mission organized by the United Nations and the Organization for the Prohibition of Chemical Weapons (OPCW), the international community is supporting the safe elimination of Syria’s chemical weapons program. U.S. assistance includes outfitting a vessel to neutralize Syria’s highest priority chemical precursors and agents.
We are making progress, but there is tough work ahead. To date, the Joint Mission has verified the destruction of Syria’s chemical weapons-production equipment, the machines that mix the components, and the removal of nearly half of Syria’s declared stockpile. All of the sulfur mustard agent and some of the precursors for sarin, the highest priority declared chemicals, have now been removed. It is our goal to complete the removal of declared chemicals as soon as possible in April and the verified destruction of these chemical weapons and materials by June 30.

Protecting our Friends and Allies

We are committed to helping contain the conflict by bolstering the security and stability of Syria’s neighbors. Violence from the ongoing conflict has already spilled into Lebanon and Turkey, our NATO ally. Recently, Israel retaliated against Syrian army targets for an attack on an Israeli patrol on the Golan Heights. On Sunday, the Turkish Air Force shot down a Syrian plane that had encroached along the border. ISIL has used its position in Syria to pour extremist fighters and weapons into Iraq. Lebanon and Jordan are bearing an enormous burden as they work to secure their borders and meet the needs of more than 1.6 million refugees from Syria. We appreciate the support we have received from Congress as we work directly and with our international partners to support Syria’s neighbors:

• We back the Lebanese government’s efforts to contain the Syrian conflict and strongly condemn Hizballah’s intervention on behalf of the Asad regime. The U.S. has provided additional support to the Lebanese Armed Forces and Internal Security Forces to help them secure Lebanon’s borders and address internal security threats. We are helping the Lebanese government care for nearly one million refugees from Syria and strengthen the communities that are hosting them. We have provided more than $340 million in humanitarian assistance to support the needs of these refugees and to reduce the burden on Lebanese communities. In addition, our ongoing bilateral assistance is helping to address deteriorating economic conditions and gaps in the delivery of important services, particularly in communities impacted by the crisis.
• Many of you met with Jordan’s King Abdullah when he was here recently and can appreciate the contributions that Jordan is making to address this crisis. The United States is already working closely with the Jordanian Armed Forces (JAF) to address threats emanating from Syria, including providing enhanced border security and counterterrorism capabilities. DOD funds also help to assist the JAF with providing humanitarian assistance to newly arriving Syrian refugees. Longstanding development programs help relieve the strains on water infrastructure, schools, and health facilities in Jordanian communities that support large numbers of Syrian refugees. We have provided $300 million in additional budget support over the last two years and will support a $1 billion loan guarantee for Jordan as well as the renewal of our bilateral assistance Memorandum of Understanding for an additional five years, as announced by the President last month.
•  In regards to Turkey, we are most importantly working with Ankara on a variety of counter-terrorism issues to address the growing threat that Syria-based terrorists pose to Turkey and the challenge posed by foreign fighters. Additionally, Turkey hosts far more than the 641,000 officially registered refugees from Syria, in addition to significant parts of the Syrian opposition leadership. We are working to mitigate the Syrian conflict’s spillover on Turkey’s security and sovereignty, including through the deployment of two U.S. Patriot batteries in southern Turkey, which join four batteries from other NATO allies. U.S. contributions to the international humanitarian response help provide critical support to refugees hosted in Turkish camps and communities. In support of the U.N., Turkey is playing an important role in facilitating cross-border humanitarian assistance in northern Syria.
• Iraq hosts more than 225,000 refugees from Syria, mostly in the Iraqi Kurdistan region. Since 2012, the United States has provided more than $90 million in humanitarian aid to international organizations and NGOs for Syrian refugees in Iraq. We are also working with the U.N. and the Iraqi government to ensure that the estimated 350,000 Iraqis displaced by the Anbar conflict are getting needed assistance and will be able to vote in Iraq’s upcoming elections, which ISIL seeks to disrupt. At the same time, we are in close contact with Iraq’s political leaders and security commanders to develop and execute a holistic campaign to isolate ISIL from the population, including through intensified information sharing and security assistance.
• In Egypt, which hosts over 135,000 Syrian refugees, political instability and polarization has contributed to a difficult environment and increasing humanitarian needs for refugees. Recognizing the burden that refugee communities can pose on host countries, we are continuing to support humanitarian partners in Egypt and to engage the government to ensure that refugees receive needed support.
• Israel has not been spared the effects of the conflict. Our governments coordinate closely to monitor violent extremist threats in Syria, and we support Israel’s right to defend itself from spillover violence. We applaud Israeli efforts to provide medical care to wounded Syrians seeking help. We are also concerned that Syria’s instability will continue to threaten the Golan.

Urgent Humanitarian Action

We are coordinating closely with the international community to alleviate the suffering caused by this crisis. The Government of Kuwait co-hosted a donor conference with the U.N. Secretary-General in January, which resulted in $2.6 billion in new pledges. The United States is the largest single donor to the Syria humanitarian response, providing more than $1.7 billion in humanitarian assistance. Our assistance supports U.N. and other international organizations as well as numerous NGOs assisting conflict-affected civilians inside the country and throughout the region. We are specifically directing some of our funds to alleviate the growing strain on host communities, infrastructure and public services in neighboring countries. Inside Syria, our assistance provides food, basic healthcare, water and sanitation services and desperately needed relief supplies.

The Asad regime continues to deliberately block humanitarian access in Syria, citing the uncertain security situation. Last week, the first U.N. convoy reached the residents of Qamishli in northern Syria via the Turkish border crossing at Nusaybin. Although some supplies will finally reach these people in desperate need, one day of U.N. aid convoys crossing one border point is not enough. These convoys prove that the Syrian army can allow humanitarian access when it chooses to do so. The Asad regime must approve all U.N. requests for access to areas in need immediately as called for by the U.N. Security Council.

Negotiations Transitioning to a Representative Government

Transitioning to a representative government that is responsive to the needs of the Syrian people is the only way to reduce the violence and alleviate the suffering of the Syrian people. While the international community, including Russia, maintains that the conflict must end via a negotiated political agreement in line with the 2012 Geneva Communiqué, the regime has squandered every opportunity for a peaceful settlement. At the Geneva II talks, the regime’s negotiator insulted the opposition, U.N. Joint Special Representative Lakhdar Brahimi and the international community while contributing nothing of substance to the discussion.

The United States and Russia share a common interest in a successful negotiation that fully implements the Geneva Communiqué and prevents the spread of instability and violent extremism beyond Syria’s borders. To date, this common interest has motivated Russia to continue its support to the OPCW mission. However, Russia has done nothing to move its Syrian allies forward in the Geneva II negotiations. Moreover, we have seen an increase in both the quantity and the quality of weapons Russia has provided to the Syrian regime in recent months. The stability that Russia seeks in Syria will not be achieved by providing planes, tanks, bombs, and guns for use against the Syrian people. We continue to review all options for changing President Putin's calculus away from Russia's support for the Asad regime. Ambassador Brahimi told the Security Council on March 13, that he recommends against a third round of talks unless the regime commits to discuss substantively all elements of the Geneva Communiqué. In the meantime, the United States and its partners will continue to expand our support to the Syrian opposition and ratchet up pressure on the regime.

On another matter, I know that the safety of Syria’s minority communities is a key concern for members of this committee, as it is for us. We are troubled by the plight of all civilians in Syria, including Christians and other religious minorities. Protecting the security and religious rights of these communities, as well as the rights of women, is an important element of our policy and will be essential to any future political settlement. We have sought and received assurances from the Syrian opposition leadership and moderate rebel leaders that they will protect the rights of women and minorities, and engage them in plans for building Syria’s future.
Next Steps
Mr. Chairman, we are actively engaged in trying to bring the Syria crisis to an end.

• We are working with allies and partners to combat the growing threat of violent extremists;
• We are working to prevent a catastrophic collapse of Syrian cities in opposition controlled areas;
• We are providing nonlethal support to the armed opposition;
• We are working with the international community to end the threat of Syria’s chemical weapons;
• We are taking steps to protect and support our regional friends and allies;
• We are contributing generously to the humanitarian response both inside Syria and among its neighbors; and
• We are providing support to the Syrian opposition both directly and through the London 11.

Even as we pursue all the steps I have outlined today, we continue to examine what more we can do to defend U.S. interests in Syria and to achieve a political settlement. We appreciate the support of your Committee – most recently in your 10
March 14 letter – and will continue to work together with the Congress as we move forward.
The Syrian people reject violent extremism. They want to return home and rebuild their country – and we will help them. Thank you.

SECRETARY KERRY SAYS HE IS "DEEPLY TROUBLED" OVER THE MASS DEATH SENTENCES IN EGYPT

Mass Trials and Sentencing in Egypt

Press Statement

John Kerry
Secretary of State

Washington, DC

March 26, 2014

I am deeply, deeply troubled by the sudden and unprecedented decision by an Egyptian court to issue preliminary death sentences for 529 citizens after a quick mass trial. It simply defies logic. There are many avenues of legitimate review for this judgment and I urge the appropriate Egyptian authorities to remedy the situation. This news simply does not reflect the values and goals to which the interim government has aspired publicly and privately.

The need for due process assumed greater urgency with the start of a new trial for nearly 700 more people in the same courtroom where the earlier judgment was rendered after a two-day summary proceeding in which the defendants were tried as a group rather than on the merits of individual cases. Many of those defendants were not even in the courtroom. It is impossible to believe that such a proceeding satisfied even the most basic standards of justice.

The interim government must understand the negative message that this decision, if upheld, would send to the world about Egypt's commitment to international law and inclusivity.

For three years, Egyptians have demanded responsive leadership that protects human rights and promotes economic opportunity. Many lost their lives in that struggle. Adhering to the new constitution and maintaining a criminal justice system free of intimidation and political retribution are essential functions of a legitimate government. I urge the interim Egyptian government to reverse the court ruling and ensure due process for the accused. Anything less would dishonor the bravery of all who sacrificed their lives for democratic values.

SEC COMMISSIONER AGUILAR SPEAKS ON GROWING CYBER-THREAT

FROM:  SECURITIES AND EXCHANGE COMMISSION 
The Commission’s Role in Addressing the Growing Cyber-Threat

Commissioner Luis A. Aguilar

March 26, 2014

*I would like to start by welcoming each of the participants, audience members, and those joining us by webcast.

In recent months, cybersecurity has become a top concern to American companies, regulators, and law enforcement agencies.[1]  This is in part because of the mounting evidence that the constant threat of cyber-attack is real, lasting, and cannot be ignored.

One of the most prominent examples of the wide-ranging and potentially devastating effects that can result from cyber-attacks is the December 2013 data breach of Target Corporation.[2]  In addition, several large banks have repeatedly been the subject of denial-of-service attacks in which their public websites have been knocked offline for hours at a time,[3] and numerous government agencies have also experienced a series of cyber-attacks.[4]  Moreover, cyber-attacks on financial institutions have become both more frequent and more sophisticated.[5]  This is also true of cyber-attacks on the infrastructure underlying the capital markets.  For example, according to a 2012 global survey of securities exchanges, 89% identified cyber-crime as a potential systemic risk and 53% reported experiencing a cyber-attack in the previous year.[6]

As an SEC Commissioner, I have become particularly concerned about the risks that cyber-attacks pose to public companies, and to the capital markets and its critical participants, including the exchanges, clearing agencies, transfer agents, broker-dealers, and investment advisers.  Cyber-attacks aimed at these market participants can have devastating effects on our economy, on individual consumers, and on the markets and investors that the SEC was created to safeguard.

There is no doubt that the SEC must play a role in this area.  What is less clear is what that role should be.  As many of you know, in 2011 the staff issued guidance to public companies about their disclosure obligations with respect to cybersecurity risks and cyber incidents.[7]  I hope that these disclosures have helped investors and public companies to focus and assess cybersecurity issues.  However, the increased pervasiveness and seriousness of the cybersecurity threat raises questions about whether more should be done to ensure the proper functioning of the capital markets and the protection of investors.

As I explored this issue, it became readily apparent to me that the Commission has much to learn about the specific risks that our regulated entities and public companies are facing.  After conducting research into this area, I recommended that the Commission convene a roundtable so that we can begin to develop a better understanding of this growing problem.  I am pleased that Chair White agreed with my recommendation and asked the staff to make this roundtable a reality.

The issues that will be discussed by today’s four panels can roughly be broken down into two categories – issues potentially impacting public companies and issues impacting the capital market infrastructure and SEC-regulated entities.  With regard to the public company discussion, I am particularly interested in hearing whether the current disclosure regime under the 2011 guidance is working or how it could be improved.

The risks facing the capital market infrastructure and regulated entities are of particular concern to the SEC.  For instance, a cyber-attack on an exchange or other critical market participant can have broad consequences that impact a large number of public companies and their investors.  Indeed, given the extent to which the capital markets have become increasingly dependent upon sophisticated and interconnected technological systems, there is a substantial risk that a cyber-attack could cause significant and wide-ranging market disruptions and investor harm.

I am hopeful that today’s Roundtable will engender significant discussion about the ways in which regulators and industry can work together to address these risks.  One of the most important things that can develop from this Roundtable is for the Commission to hear what we can do to help you fight, and respond to, the growing cyber-threat that is confronting our markets and our public companies.  My expectation is for the Commission to analyze all of the information we will receive as a result of this Roundtable and, with appropriate haste, consider what additional steps the Commission should take to address cyber-threats.

It will be important to keep the dialogue and momentum from today’s event going.  One immediate step the Commission should take is to establish a Cybersecurity Task Force.  This Task Force should be composed of representatives from each division that will regularly meet and communicate with one another to discuss these issues, and, importantly, advise the Commission as appropriate.

In conclusion, I would like to thank all of our panelists for taking the time to be here today, and I want to thank the staff for organizing the Roundtable.  I look forward to a well-informed discussion about cyber-attacks, as well as the ways to prevent, respond to, and mitigate the risks of such attacks.  As a reminder, there will be a public comment file associated with today’s Roundtable, and I look forward to receiving additional comments and input on this issue.

Thank you.


[*] The views I express today are my own, and do not necessarily reflect the views of the U.S. Securities and Exchange Commission (the “SEC” or “Commission”), my fellow Commissioners, or members of the staff.


[1] For example, on February 26, 2014, the U.S. Commodity Futures Trading Commission (“CFTC”) published guidance outlining the data security practices it expects from firms it oversees and the third parties they contract with.  See CFTC Staff Advisory No. 14-21, Gramm-Leach-Bliley Act Security Safeguards (Feb. 26, 2014), available at http://www.cftc.gov/ucm/groups/public/@lrlettergeneral/documents/letter/14-21.pdf.  In addition, the Director of the Federal Bureau of Investigation (FBI), James Comey, said last November that “resources devoted to cyber-based threats will equal or even eclipse the resources devoted to non-cyber based terrorist threats.”  See Testimony of James B. Comey, Director, Federal Bureau of Investigation, before the Senate Committee on Homeland Security and Governmental Affairs (Nov. 14, 2013), available at http://www.fbi.gov/news/testimony/homeland-threats-and-the-fbis-response.  Also, on December 9, 2013, the Financial Stability Oversight Council held a meeting to discuss cybersecurity threats to the financial system; see also, U.S. Department of the Treasury Press Release, Financial Stability Oversight Council (FSOC) to Meet December 9 (Dec. 2, 2013), available at http://www.treasury.gov/press-center/press-releases/Pages/jl2228.aspx; Jaclyn Jaeger, “Boards Look to Boost IT, Data Security Oversight,” Compliance Week (Mar. 11, 2014) (noting that company boards have become much more sensitive to cybersecurity risks and the harm they could cause to a company’s reputation and business).  The importance of this issue is also reflected in the recent notices that the staffs from the SEC’s Office of Compliance Inspections and Examinations and from FINRA will have cybersecurity as a focus of their 2014 examinations.  See SEC’s National Examination Priorities for 2014 (Jan. 9, 2014), available at http://www.sec.gov/about/offices/ocie/national-examination-program-priorities-2014.pdf; FINRA’s 2014 Regulatory and Examination Priorities Letter (Jan. 2, 2014),  available at http://www.finra.org/web/groups/industry/@ip/@reg/@guide/documents/industry/p419710.pdf.   In addition, it was recently announced that SEC examiners will review whether asset managers have policies to prevent and detect cyber-attacks and are properly safeguarding against security risks that could arise from vendors having access to their systems.  See Sarah N. Lynch, “SEC examiners to review how asset managers fend off cyber attacks,” Reuters (Jan. 30, 2014), available at http://www.reuters.com/article/2014/01/30/us-sec-cyber-assetmanagers-idUSBREA0T1PJ20140130.

[2] On December 19, 2013, Target Corporation announced a data breach resulting from a cyber-attack on its systems.  The breach affected two types of data: payment card data, which affected approximately 40 million Target customers, and certain personal data, which affected up to 70 million Target customers.  See Testimony of John Mulligan, Executive Vice President and Chief Financial Officer of Target, before the U.S. Senate Committee on the Judiciary (Feb. 4, 2014), available at http://www.judiciary.senate.gov/pdf/02-04-14MulliganTestimony.pdf; Target Press Release, Target Confirms Unauthorized Access to Payment Card Data in U.S. Stores (Feb. 4, 2014), available at http://pressroom.target.com/news/target-confirms-unauthorized-access-to-payment-card-data-in-u-s-stores..

[3] See, e.g., Joseph Menn, “Cyber attacks against banks more severe than most realize,” Reuters (May 18, 2013), available at http://www.reuters.com/article/2013/05/18/us-cyber-summit-banks-idUSBRE94G0ZP20130518; Bob Sullivan, “Bank Website Attacks Reach New Highs,” CNBC (Apr. 3, 2013), available at http://www.cnbc.com/id/100613270.

[4] See, e.g., Jim Finkle and Joseph Menn, “FBI warns of U.S. government breaches by Anonymous hackers,” Reuters (Nov. 15, 2013), available at http://www.reuters.com/article/2013/11/15/us-usa-security-anonymous-fbi-idUSBRE9AE17C20131115 (activist hackers secretly accessed U.S. government computers in multiple agencies, resulting in stolen data on at least 104,000 employees, contractors, and others associated with the Department of Energy, along with information on almost 2,000 bank accounts); “HealthCare.gov targeted ‘about 16 times’ by cyberattacks, DHS official says,” NBCNews.com (Nov. 13, 2013), available at http://www.nbcnews.com/news/investigations/healthcare-gov-targeted-about-16-times-cyberattacks-dhs-official-says-v21440068.

[5] For example, on December 9, 2013, the Financial Stability Oversight Council held a meeting to discuss cybersecurity threats to the financial system.  See U.S. Department of the Treasury Press Release, Financial Stability Oversight Council (FSOC) to Meet December 9 (Dec. 2, 2013), available at http://www.treasury.gov/press-center/press-releases/Pages/jl2228.aspx.  During that meeting, Assistant Treasury Secretary Cyrus-Amir-Mokri said that “[o]ur experience over the last couple of years shows that cyber-threats to financial institutions and markets are growing in both frequency and sophistication.”  See U.S. Department of the Treasury Press Release, Remarks of Assistant Secretary Cyrus Amir-Mokri on Cybersecurity at a Meeting of the Financial Stability Oversight Council (Dec. 9, 2013), available at http://www.treasury.gov/press-center/press-releases/Pages/jl2234.aspx.  In addition, in testimony before the House Financial Services Committee in 2011, the Assistant Director of the FBI’s Cyber Division stated that the number and sophistication of malicious incidents involving financial institutions has increased dramatically over the past several years and offered numerous examples of such attacks, which included fraudulent monetary transfers, unauthorized financial transactions from compromised bank and brokerage accounts, denial of service attacks on U.S. stock exchanges, and hacking incidents in which confidential information was misappropriated.  See Testimony of Gordon M. Snow, Assistant Director, Cyber Division, Federal Bureau of Investigation, before the House Financial Services Committee, Subcommittee on Financial Institutions and Consumer Credit (Sept. 14, 2011), available at http://www.fbi.gov/news/testimony/cybersecurity-threats-to-the-financial-sector.

[6] See Rohini Tendulkar, “Cyber-crime, securities markets and systemic risk,” Joint Staff Working Paper of the IOSCO Research Department and World Federation of Exchanges (July 16, 2013), available at http://www.iosco.org/research/pdf/swp/Cyber-Crime-Securities-Markets-and-Systemic-Risk.pdf.  Forty-six securities exchanges responded to the survey.

[7] On October 13, 2011, staff in the Commission’s Division of Corporation Finance (Corp Fin) issued guidance on issuers’ disclosure obligations relating to cybersecurity risks and cyber incidents.  See SEC’s Division of Corporation Finance, CF Disclosure Guidance: Topic No. 2—Cybersecurity (“SEC Guidance”) (Oct. 31, 2011), available at http://www.sec.gov/divisions/corpfin/guidance/cfguidance-topic2.htm.  Among other things, this guidance notes that securities laws are designed to elicit disclosure of timely, comprehensive, and accurate information about risks and events that a reasonable investor would consider important to an investment decision, and cybersecurity risks and events are not exempt from these requirements.  The guidance identifies six areas where cybersecurity disclosures may be necessary under Regulation S-K: (1) Risk Factors; (2) Management’s Discussion and Analysis of Financial Condition and Results of Operation (MD&A); (3) Description of Business; (4) Legal Proceedings; (5) Financial Statement Disclosures; and (6) Disclosure Controls and Procedures.  The SEC Guidance further recommends that material cybersecurity risks should be disclosed and adequately described as Risk Factors.  Where cybersecurity risks and incidents that represent a material event, trend or uncertainty reasonably likely to have a material impact on the organization's operations, liquidity, or financial condition—it should be addressed in the MD&A.  If cybersecurity risks materially affect the organization’s products, services, relationships with customers or suppliers, or competitive conditions, the organization should disclose such risks in its description of business.  Data breaches or other incidents can result in regulatory investigations or private actions that are material and should be discussed in the Legal Proceedings section.  Cybersecurity risks and incidents that represent substantial costs in prevention or response should be included in Financial Statement Disclosures where the financial impact is material.  Finally, where a cybersecurity risk or incident impairs the organization's ability to record or report information that must be disclosed, Disclosure Controls and Procedures that fail to address cybersecurity concerns may be ineffective and subject to disclosure.  Some have suggested that such disclosures fail to fully inform investors about the true costs and benefits of companies’ cyber security practices, and argue that the Commission (and not the staff) should issue further guidance regarding issuers’ disclosure obligations.  See Letter from U.S. Senator John D. Rockefeller IV to Chair White (Apr. 9, 2013), available at http://www.commerce.senate.gov/public/?a=Files.Serve&File_id=49ac989b-bd16-4bbd-8d64-8c15ba0e4e51.

PRESS GAGGLE WITH BEN RHODES

FROM:  THE WHITE HOUSE 

Press Gaggle by Deputy National Security Advisor for Strategic Communications Ben Rhodes

Aboard Air Force One
En Route Brussels, Belgium 
March 25, 2014

9:19 P.M. CET

Q    And comments on the denial of a Saudi visa to the Jerusalem Post Washington’s bureau chief?

MR. RHODES:  I'll say basically what we said, which is that we were very disappointed by the Saudi decision.  We expressly reached out to the Saudi government through multiple channels when we became aware of this issue.  We made it clear how important it was to us that this journalist, like any other journalist, have access to cover the President’s trip.  And we'll continue to raise our concerns with the Saudis about why this journalist was denied a visa and about our very strong objections to their decision.

Q    What was the reason?

MR. RHODES:  They did not give a reason.  Again, any journalist should be able to cover the President’s trip if they have the appropriate credentials to do so, and it certainly should not be the case that the affiliation of a journalist should in any way count against their ability to do their job just because they work for the Jerusalem Post.

Q    That didn’t cause you guys to reconsider going to Saudi Arabia or anything like that?

MR. RHODES:  No.  Look, we have disagreements with Saudi Arabia on a number of issues.  We obviously have had disagreements in the past as it relates to some issues associated with Israel, some issues associated with human rights.  But we also share a significant set of interests with Saudi Arabia.  They’re a very important partner of ours in the Gulf, and we believe it's better to have the type of relationship where we can cooperate but also be clear and honest with one another where we have differences.

Q    Thanks, Ben.

END
9:21 P.M. CET

WHITE HOUSE ISSUES U.S.-EU COUNTERTERRORISM COOPERATION FACT SHEET

FROM:  THE WHITE HOUSE 

FACT SHEET: U.S.-EU Counterterrorism Cooperation

The United States and the European Union are committed to working together to protect our citizens against terrorist attacks.  We work in close cooperation, bilaterally and multilaterally, to safeguard the security of our citizens in keeping with our shared values and to offer assistance to other countries to build their own capacity.

Collaboration in the Global Counterterrorism Forum Framework

The United States and the EU are among the most active members of the Global Counterterrorism Forum (GCTF), a multilateral counterterrorism body with 30 worldwide members, designed to address counterterrorism threats and build international capacity.  The United States and the EU jointly support work in all areas of the two working groups focused on Africa:

• Horn of Africa Region Capacity-Building Working Group:  focuses on law enforcement, criminal justice and the rule of law, border management, countering violent extremism, and countering terrorist financing.  
• Sahel Region Capacity-Building Working Group:  focuses on police cooperation, building legal and judicial cooperation, border security, community engagement to counter extremism, and countering terrorism financing. 

The United States and the EU also continue to collaborate on three GCTF-inspired institutions, and will serve on the governing boards of and provide financial support to all three institutions:

• Hedayah:  Hedayah is the first and only international center of excellence on countering violent extremism (CVE).  We will jointly support Hedayah’s efforts, and the United States is funding curriculum development and CVE training.
• Global Community Engagement and Resilience Fund:  This fund, a public-private global venture, will support grassroots efforts to counter violent extremism.  The United States and EU have committed to supporting this fund’s development and operations. 
• International Institute for Justice and the Rule of Law:  Headquartered in Malta, this institute will train criminal justice officials in North, West, and East Africa, with a particular focus on countries in transition, to counter terrorism and handle transnational security challenges while respecting human rights.  The United States and the EU have agreed to provide resources and technical support.

Cooperation on Countering Violent Extremism and Foreign Fighters

We share a common understanding of how terrorists exploit underlying conditions to recruit others to their cause.  The United States and EU have increased transatlantic cooperation on both stemming the flow of foreign fighters and reintegrating them when they return.  We aim to counter violent extremism by providing positive alternatives to communities most at risk of recruitment and radicalization to violence; counter terrorist narratives; and build the capacity of government and civil society to counter violent extremism.

• Balkans:  The United States and the EU are committed to building the capacity of Balkan governments and civil society to counter violent extremism – from counter-messaging/counter-recruitment to the reintegration of returning fighters.
• Dutch-Moroccan-led Foreign Fighter Project:  We jointly support a year-long GCTF initiative, launched February 19, led jointly by Morocco and the Netherlands, to address the phenomenon of foreign fighters.
• U.S. Regional Strategic Initiative Foreign Fighter Project:  The United States, with EU support, will complement the Dutch-Moroccan initiative by focusing on implementation of the Rabat Good Practices to address the criminal justice aspects of prevention, disruption, and prosecution of foreign fighters, mainly focused on the Balkans, Maghreb, and Sahel countries.

Coordination on Combating Terrorist Organizations

We are committed to preventing and countering efforts by terrorists and their networks to travel freely in our territories and finance their illicit activities.  We are continuing this work with the European Union and will rely on a number of critical agreements to accomplish this.

SUNNY DAY AT THE SOYUZ LAUNCH PAD

FROM:  NASA 

The sun rises behind the Soyuz launch pad shortly before the Soyuz TMA-12M spacecraft is rolled out by train to the launch pad at the Baikonur Cosmodrome, Kazakhstan, Sunday, March, 23, 2014. Launch of the Soyuz rocket is scheduled for March 26 (5:17 p.m. U.S. EDT on March 25) and will send Expedition 39 Soyuz Commander Alexander Skvortsov of the Russian Federal Space Agency, Roscosmos, Flight Engineer Steven Swanson of NASA, and Flight Engineer Oleg Artemyev of Roscosmos on a six-month mission aboard the International Space Station.   Credit-NASA-Bill Ingalls

IRS GIVES OPINION OF VIRTUAL CURRENCY LIKE BITCOIN

FROM:  THE INTERNAL REVENUE SERVICE 
IRS Virtual Currency Guidance: Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply 

WASHINGTON – The Internal Revenue Service today issued a notice providing answers to frequently asked questions (FAQs) on virtual currency, such as Bitcoin. These FAQs provide basic information on the U.S. federal tax implications of transactions in, or transactions that use, virtual currency.

In some environments, virtual currency operates like “real” currency -- i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance -- but it does not have legal tender status in any jurisdiction.

The notice provides that virtual currency is treated as property for U.S. federal tax purposes.  General tax principles that apply to property transactions apply to transactions using virtual currency.  Among other things, this means that:

• Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.
• Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply.  Normally, payers must issue Form 1099.
• The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.
• A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.

EX-IM BANK GUARANTEES BOND FOR EXPORTED SERVICES BY DELTA AIR LINES DIVISION

FROM:  EXPORT-IMPORT BANK
GOL Issues $41 Million Ex-Im Bank-Guaranteed Bond for Services Exported by Delta TechOps, MRO Division of Delta Air Lines 

Ex-Im Bank-guaranteed financing supports an estimated 400 jobs at Delta TechOps

Washington, D.C. – The Export-Import Bank of the United States (Ex-Im Bank) today announced the successful issuance of an Ex-Im Bank-guaranteed bond funded by the capital markets that raised $40.7 million for the Brazilian airline, VRG Linhas Aéreas S.A. (GOL), for engine-maintenance services performed by Delta TechOps in Atlanta, Ga. Delta TechOps is the maintenance, repair and overhaul (MRO) division of Delta Air Lines Inc.

The Ex-Im Bank-guaranteed bond was issued in mid-February to raise the funds to reimburse GOL for costs related to engine-maintenance services performed by Delta TechOps in 2013. The two-year bond bears interest at a fixed rate of 0.622 percent.

GOL issued the bond under a $45.5 million guarantee authorized by Ex-Im Bank in May 2013 to support Delta TechOps exports to the Brazilian airline. The financing is supporting an estimated 400 jobs at Delta TechOps, according to Ex-Im Bank’s jobs-calculation methodology.

"With this transaction, Ex-Im Bank continues to support hundreds of highly-skilled jobs of Delta TechOps in Atlanta," said Ex-Im Bank Chairman and President Fred P. Hochberg. "Our guarantee made possible the capital-markets funding of these services under Delta TechOps’s multiyear contract with GOL, a longtime Ex-Im Bank customer in Latin America.”

"Delta TechOps, a division of Delta Air Lines, is performing essential aircraft-engine maintenance and overhaul services for our existing fleet," said Paulo Kakinoff, chief executive officer of GOL. "The availability of Ex-Im Bank’s financing was the key to our choosing this U.S. provider for these services and is strengthening the partnership between our two companies."

The February 2014 issuance was the third successful Ex-Im Bank-guaranteed bond issuance to finance engine-maintenance services. The previous two issuances, which also supported Delta TechOps’s services to GOL, were done in 2012 under an $84.8 million Ex-Im Bank commitment approved the same year. The transaction earned Ex-Im Bank an Airfinance Journal “Deal of the Year” award in April 2013. The financing covered the first two years of GOL’s five-year engine-maintenance contract with Delta TechOps that was signed in December 2010.

In accordance with the contract, Delta TechOps is performing heavy maintenance on GOL's CFM56-7B engines that are installed on the airline's Boeing 737 next generation aircraft fleet. Delta TechOps is providing GOL with up to 253 scheduled engine removals and additional unscheduled removals. The GOL engines are shipped from São Paulo, Brazil, to Atlanta for heavy maintenance performed by Delta TechOps.

BAMBOO: THE GREAT CONTEST BETWEEN PANDAS AND HORSES

FROM:  THE NATIONAL SCIENCE FOUNDATION 
Belly up to the bamboo buffet: Pandas vs. horses
Livestock, particularly horses, have been identified as a significant threat to panda survival

2014 is the Year of the Horse in China. But pandas, it turns out, aren't celebrating

Why not? Because livestock, particularly horses, have been identified as a significant threat to panda survival. The reason: Horses have been beating pandas to the bamboo buffet. The oft-hidden, yet significant, conservation conflict between pandas and horses was revealed in a recent article in the Journal for Nature Conservation by Michigan State University (MSU) panda habitat experts.

"Across the world, people are struggling to survive in the same areas as endangered animals, and often trouble surfaces in areas we aren't anticipating," said Jianguo "Jack" Liu of MSU. "Creating and maintaining successful conservation policy means constantly looking for breakdowns in the system. In this case, something as innocuous as a horse can be a big problem."

Pandas have specific habitat needs--they live in gently sloping areas far from human populations. And they only eat bamboo. (Watch a panda bellying up to the bamboo buffet.) China invests billions to protect its panda habitat and conserve the 1,600 remaining endangered supported by this habitat.

For years, timber harvesting has been the panda's biggest threat. But conservation programs limiting timber harvesting have chalked up wins in preserving panda habitat.

Vanessa Hull, a doctoral student at MSU's Center for Systems Integration and Sustainability (CSIS), has been living off and on for seven years in the Wolong Nature Reserve, most recently tracking pandas that she has outfitted with GPS collars.

Over the years, she started noticing that uninvited guests had apparently been serving themselves at the bamboo buffet--and they were eating like horses…literally.

"It didn't take particular panda expertise to know that something was amiss when we'd come upon horse-affected bamboo patches. They were in the middle of nowhere and it looked like someone had been in there with a lawn mower," Hull said.

Alarmed by the increasing devastation, Hull learned that keeping a horse in this region serves a similar function as maintaining a bank account. Because horses are prohibited from grazing in designated grazing areas, to prevent them from competing for food with cattle, some farmers have been letting horses graze unattended in forests. When these horse-keeping farmers need cash, they track down their horses in the forest and sell them.

Eventually, some Wolong farmers, though not traditionally horse-keepers, learned from horse-keeping friends who lived outside of the reserve that they too could cash in by keeping horses--and letting them loose to graze unattended in Wolong. Where, unfortunately, they would compete for food with pandas.

Over time, the popularity of this practice soared. In 1998, only 25 horses lived in Wolong. By 2008, 350 horses lived there in 20 to 30 herds.

To understand the scope of the problem, Hull and her colleagues put the same type of GPS collars they were using to track pandas on one horse in each of four herds they studied. Then, over a year they compared the activity of the horses with that of three collared adult pandas in some of the same areas, and combined resulting data with habitat data.

The researchers discovered that the galloping gourmets are indeed big on bamboo--and are drawn to the same sunny, gently sloped spots as pandas. Pandas and horses eat about the same amount of bamboo, but a herd of more than 20 horses created veritable feeding frenzies, destroying areas that the reserve was established to protect.

The researchers presented their findings to Wolong's managers, who have since banned horses from the reserve. But Hull and Liu note that this work has shed light on how competitive livestock can be in sensitive habitat--an issue that is duplicated across the globe.

"Livestock affect most of the world's biodiversity hotspots," Liu said. "They make up 20 percent of all of the earth's land mammals and therefore monopolize key resources needed to maintain the earth's fragile ecosystems."

This research project received funding from the National Science Foundation.

Editor's Note: This Behind the Scenes article was first provided to LiveScience in partnership with the National Science Foundation.

-- Sue Nichols, Michigan State University
Investigators
Li An
Jianguo Liu
Lisa Pearce
Scott Yabiku
William Axinn

U.S. DEFENSE DEPARTMENT CONTRACTS FOR MARCH 25, 2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

NAVY

Lockheed Martin Corp., Fort Worth, Texas, is being awarded a $698,032,385 fixed-price-incentive, firm target, advanced acquisition contract to procure long lead parts, materials and components in support of 57 Low Rate Initial Production Lot IX F-35 Lightning II Joint Strike Fighter (JSF) aircraft, including: 26 F-35A Conventional Takeoff and Landing (CTOL) aircraft for the Air Force; six F-35B Short Takeoff Vertical Landing (STOVL) aircraft for the Marine Corps; two F-35C Carrier Variant aircraft for the Navy; six F-35A CTOL aircraft for the government of Norway; one F-35A CTOL for the government of Italy; seven F-35A CTOL aircraft for the government of Israel; two CTOL aircraft for the government of Japan; six F-35B STOVL for the United Kingdom, and one F-35B STOVL aircraft for the government of Italy.  Work will be performed in Fort Worth, Texas, and is expected to be completed in May 2015.  Fiscal 2014 aircraft procurement, Air Force, Marine Corps, Navy funds and international partner funds in the amount of $698,032,384 are being obligated on this award, none of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to 10 U.S.C. 2304(c)(1).   The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-14-C-0002).
Lockheed Martin Mission Systems and Training, Moorestown, N.J., is being awarded a $93,049,896 modification to previously awarded contract (N00024-14-C-5114) to exercise options for production of Aegis Ashore Missile Defense System (AAMDS) in Poland and to provide multi-year procurement funding for Aegis Weapon System (AWS) MK 7 equipment sets.  Work will be performed in Moorestown, N.J. (85.5 percent), Clearwater, Fla. (13.1 percent), and Akron, Ohio (1.4 percent), and is expected to be completed by September 2021.  Fiscal 2014 defense wide procurement and fiscal 2013 shipbuilding and conversion, Navy contract funds in the amount of $93,049,896 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Sikorsky Aircraft Corp., Stratford, Conn., is being awarded a $21,624,392 modification to a previously awarded indefinite-delivery/indefinite-quantity contract (N00019-07-D-0004) to exercise an option for special progressive aircraft rework for one VH-3D and twoVH-60N presidential helicopters, including two months of field level support.  Work will be performed in Stratford, Conn. (99 percent) and Quantico, Va. (1 percent), and is expected to be completed in September 2014.  No funds will be obligated at time of award; funds will be obligated on individual delivery orders as they are issued.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Raytheon Integrated Defense Systems, Portsmouth, R.I., is being awarded a $17,683,352 modification to previously awarded contract (N00024-10-C-6307) to fabricate, assemble, test and deliver three Airborne Mine Neutralization System (AMNS) low-rate initial production systems and provide engineering services and support.  The AMNS will explosively neutralize bottom and moored mines using an expendable mine neutralize device.  The system will be deployed from the MH-60 helicopter as part of the littoral combat ship mine countermeasures mission module.  Work will be performed in Portsmouth, R.I., and is expected to be completed May 2016.  Fiscal 2012 and 2013 other procurement, Navy funds in the amount of $17,683,352 will be obligated at time of award.  Contract funds in the amount of $5,180,655 will expire at the end of the current fiscal year.  The Naval Sea Systems Command, Washington D.C., is the contracting activity.

AIR FORCE

Lockheed Martin Aeronautics Co., Marietta, Ga., has been awarded an $84,289,101 cost-plus-incentive-fee contract for the C-5 Core Mission Computer/Color Weather Radar Engineering, Manufacturing and Development Program. Work will be performed at Marietta, Ga., and is expected to be completed by March 31, 2017.  This award is the result of a sole-source acquisition.  Fiscal 2013 aircraft procurement funds in the amount of $11,120,000 are being obligated at time of award.  Air Force Life Cycle Management Center/WLSK, Wright-Patterson Air Force Base, Ohio, is the contracting activity (FA8625-14-C-6596).

DEFENSE LOGISTICS AGENCY

Philips Medical Systems, Andover, Mass., has been awarded a maximum $77,172,660 modification (P00102) exercising the fifth option period on a one-year base contract (SPM2D1-09-D-8349) with nine one-year option periods for patient monitoring systems, subsystems, accessories, consumables, spare and repair parts, and training.  This is a fixed-price with economic-price adjustment contract.  Location of performance is Massachusetts with a March 29, 2015 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 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.
Landmark Aviation Miami LLC, Miami, Fla., has been awarded a maximum $6,602,581 fixed-price with economic-price-adjustment contract for into-plane aircraft fuel services.  This is a competitive acquisition, and one offer was received.  Location of performance is Florida with a March 31, 2017 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 2017 defense working capital funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-D-0061).

ARMY

Cardno TEC-GMI Joint Venture, Charlottesville, Va. (W9126G-14-D-0012); HDR Environmental, Operations and Construction Inc., Englewood, Colo. (W9126G-14-D-0013); Leidons Inc., Reston, Va. (W9126-14-D-0014); and URS/Arcadis, Dallas, Texas (W9126-14-D-0015), were awarded a maximum $27,750,000 firm-fixed-price, indefinite-delivery/indefinite-quantity, multiple-award task order contract for environmental consulting support services for the U.S. Army Corps of Engineers.  Primary emphasis of the contract is assistance for the southwest Fort Worth district.  The contract consists of an unrestricted business pool of contractors to support military and civilian entities with their compliance with environmental laws and regulations.  Funding and performance locations will be determined with each order.  Each company will receive minimum guarantee of $2,500 at award.  Bids were solicited via the Web with four received.  The estimated completion date is March 24, 2017.  The U.S. Army Corps of Engineers-Fort Worth District, Fort Worth, Texas, is the contracting activity.

Professional Contract Services Inc., Austin, Texas, was awarded a $14,594,454 firm-fixed-price sole-source contract for full food and dining facility attendant support services.  Fiscal 2014 operations and maintenance, Army funding will be obligated on future task orders.  Work will be performed in Fort Hood, Texas, with an estimated completion date of March 31, 2015.  The U.S. Army Contracting Command-Fort Hood, Fort Hood, Texas, is the contracting activity (W91151-10-D-0001).

PRESIDENT OBAMA'S LETTER REGARDING WAR POWERS RESOLUTION

FROM:  THE WHITE HOUSE 

Letter from the President -- -- IDLs -- War Powers Resolution

Dear Mr. Speaker: (Dear Mr. President:)

As I initially reported on October 14, 2011, and most recently reported on December 13, 2013, the United States is pursuing a comprehensive strategy to help the governments and people of central Africa in their efforts to stop the atrocities committed by the Lord's Resistance Army. In furtherance of that strategy, U.S. military personnel with appropriate combat equipment have deployed to Uganda, South Sudan, the Democratic Republic of the Congo, and the Central African Republic to support regional forces from the African Union's Regional Task Force that are working to apprehend or remove Lord's Resistance Army leader Joseph Kony and other senior leaders from the battlefield and to protect local populations.

Regional forces have consistently identified air mobility support with increased range and speed as one of the most-needed capabilities to pursue the remaining Lord's Resistance Army leaders across a wide swath of one of the world's poorest, least governed, and most remote regions. To enhance U.S. support to these regional forces, U.S. aircraft, aircrews, and support personnel deployed to central Africa on March 23 and 24, 2014. The approximately 150 additional personnel will principally operate and maintain U.S. aircraft to provide air mobility support to foreign partner forces.

The total number of U.S. military personnel deployed to the central Africa region for this mission is now approximately 280. The aircraft and personnel providing the enhanced air mobility support will deploy to the Lord's Resistance Army-affected areas of central Africa episodically, as they are available, consistent with other Department of Defense requirements.

During these deployments, the number of U.S. Armed Forces deployed to the central Africa region will fluctuate, and may increase to as many as approximately 300.

As I previously reported, U.S. forces will not themselves engage Lord's Resistance Army forces unless necessary in self-defense.

This deployment is in furtherance of the national security and foreign policy interests of the United States, including the policy expressed in the Lord's Resistance Army Disarmament and

Northern Uganda Recovery Act of 2009, Public Law 111-172, enacted May 24, 2010. I have approved this deployment pursuant to my constitutional authority to conduct U.S. foreign relations and as Commander in Chief and Chief Executive.

I am making this supplemental report as part of my efforts to keep the Congress fully informed, consistent with the War Powers Resolution (Public Law 93-148). I appreciate the support of the Congress in this matter. A classified annex to this report provides additional detail.

Sincerely,

BARACK OBAMA

PRESIDENT OBAMA'S REMARKS AT CLOSING OF NUCLEAR SECURITY SUMMIT

FROM:  THE WHITE HOUSE 

Remarks by President Obama at Closing Session of the Nuclear Security Summit

The World Forum
The Hague, The Netherlands

3:15 P.M. CET

PRESIDENT OBAMA:  Well, thank you very much, Mark.  Let me begin just by saying that -- to Prime Minister Rutte and all the people here in the Netherlands who were involved in organizing this summit, you did an extraordinary job.  And I think we would all agree that this was as well-designed and well-executed as any international summit that we’ve attended.  And so we’re very grateful, and you’ve set a high bar for the work that needs to be done in Chicago.

Two things I want to do is, number one, just remind everybody what has been accomplished.  In previous summits, as a consequence to the work that’s been done collectively, 12 countries and two dozen nuclear facilities around the world have rid themselves entirely of highly-enriched uranium and plutonium.  Dozens of nations have boosted security at their nuclear storage sites; built their own counter-smuggling teams; or created new centers to improve nuclear security and training.  The IAEA is stronger.  More countries have ratified the treaties and international partnerships at the heart of our efforts.

And at this particular summit, we’ve seen such steps as Belgium and Italy completing the removal of their excess supplies of highly-enriched uranium and plutonium so that those supplied s can be eliminated.  In a major commitment, Japan announced that it will work with the United States to eliminate hundreds of kilograms of weapons-usable nuclear material from one of their experimental reactors, which would be enough for a dozen nuclear weapons.  Dozens of other nations have agreed to take specific steps towards improving nuclear security in their own countries and to support global efforts.

So what’s been valuable about this summit is that it has not just been talk, it’s been action.  And that is because of the leadership that has been shown by heads of state and government -- and heads of government that have participated in this effort, as well as the extraordinary work of foreign ministers and sherpas and others who have helped to move this process forward.

I’m looking forward to hosting all of you in the United States, in 2016.  We had a good discussion this afternoon about how we should conceive of this summit two years from now.  The consensus, based on what I heard, was that we should recognize this next summit will be a transition summit in which heads of state and government are still participating, but that we are shifting towards a more sustainable model that utilizes our ministers, our technical people, and we are building some sort of architecture that can effectively focus and implement on these issues and supplement the good work that is being done by the IAEA and others.

So I see two tasks before us over the next two years.  Number one is we have to set very clearly what are the actionable items that we’ve already identified that we know can get done if we have the political will to do them, and let’s go ahead and get them done so that in 2016 we can report out that we have made extraordinary progress and achieved many of the benchmarks and targets that we had set at the very first Nuclear Security Summit.  In other words, I think it is important for us not to relax, but rather accelerate our efforts over the next two years, sustain momentum so that we finish strong in 2016.  And my team will be contacting all of you to find out specific ways in which you think we can move the ball forward over the next two years.

The second thing we’ll be doing is soliciting ideas from each of you about the ultimate architecture that should be constructed to ensure that beyond 2016 we are able to keep this process alive and effective, and that we are able to sync up the efforts of the Nuclear Security Summit with existing institutions like the IAEA, Interpol, the United Nations, some of the treaties that are already in force.

All of you have important views on that, and we’re going to want to make sure that you provide them so that by the time we get to 2016 we have a well thought-out process that can be ratified at that meeting.

So I cannot thank you enough for the extraordinary efforts that all of you have already made.  I cannot guarantee that the videos will be as good at the Washington conference as they’ve been here.  We may not be as creative and imaginative as Mark and his team have been.  But I promise you that we will continue to stay focused on this very important issue, and we look forward to your contributions in 2016 in the United States.

Thank you very much, Mark.  (Applause.)

U.S. CONGRATULATES SALVADOR CEREN ON HIS ELECTION TO PRESIDENCY OF EL SALVADOR

FROM:  U.S. STATE DEPARTMENT 

El Salvador Presidential Elections

Press Statement

John Kerry
Secretary of State

Washington, DC

March 25, 2014

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We congratulate Salvador Sanchez Ceren on his election as president, and we particularly congratulate the Salvadoran people for their participation in a process that the OAS election observer mission called calm and orderly.

We recognize that there are pending legal matters, and we urge continued respect for the legal processes and institutions of El Salvador.

El Salvador is a country and a people that I first got to know well as a freshman Senator, and it is a relationship that remains just as important to me as Secretary of State. The United States looks forward to working with President Salvador Sanchez Ceren and to continuing joint efforts to promote security and economic development through the Partnership for Growth. Our longstanding partnership and commitment to El Salvador and the Salvadoran people continues.

AG HOLDER SPEAKS ON BOOSTING TREATMENT SERVICES TO INMATES PRIOR TO RELEASE

FROM:  U.S. JUSTICE DEPARTMENT 
RELEASE
Monday, March 24, 2014

In New Step to Fight Recidivism, Attorney General Holder Announces Justice Department to Require Federal Halfway Houses to Boost Treatment Services for Inmates Prior to Release
New Rules Also Instruct Federal Halfway Houses to Provide Transportation Assistance, Cell Phone Access in Order to Help Inmates Seek Employment Opportunities

WASHINGTON—In a new step to further the Justice Department’s efforts towards enhancing reentry among formerly incarcerated individuals, Attorney General Eric Holder announced Monday that the Bureau of Prisons (BOP) will impose new requirements on federal halfway houses that help inmates transition back into society. Under the proposed new requirements, these halfway houses will have to provide a specialized form of treatment to prisoners, including those with mental health and substance abuse issues. For the first time, halfway houses will also have to provide greater assistance to inmates who are pursuing job opportunities, such as permitting cell phones to be used by inmates and providing funds for transportation. The new requirements also expand access to electronic monitoring equipment, such as GPS-equipped ankle bracelets, to allow more inmates to utilize home confinement as a reentry method.

Holder announced the changes in a video message posted on the Department’s website.

The BOP’s new policies have the potential to be far-reaching. To ease their transition, those exiting prison typically spend the last few months of their sentence in either a federal halfway house—known as a residential reentry center (RRC)—or under home confinement, or a combination of the two.  These community-based programs provide much needed assistance to returning citizens in finding employment and housing, facilitating connections with service providers, reestablishing ties to family and friends, and more.

Last year alone, more than 30,000 federal inmates passed through a halfway house.

Among the most significant changes Holder announced is the requirement for standardized Cognitive Behavioral Programming (CBP) to be offered at all federal halfway houses. This treatment will address behavior that places formerly incarcerated individuals at higher risk of recidivism. As part of this treatment requirement, BOP is setting guidelines for instructor qualifications, class size and length, and training for all staff at the halfway houses.

Several other modifications are being made to the standard contracts that apply to federal halfway houses in order to provide greater support to returning citizens. Examples include requiring halfway houses to provide public transportation vouchers or transportation assistance to help residents secure employment, requiring all federal halfway houses to allow residents to have cell phones to facilitate communication with potential employers and family, and improving and expanding home confinement by increasing the use of GPS monitoring.

The proposed new requirements will be posted today on the Federal Business Opportunities website (www.fbo.gov).  Interested parties will have a 30-day period to comment on the proposal. The BOP anticipates implementing the new requirements beginning with contracts expiring in 2014.

The complete text of the Attorney General’s video message is below:

“Today, America’s federal prison population is experiencing a period of significant negative growth, with nearly 4,000 fewer inmates behind bars than at the end of the last fiscal year.  This is the first major reduction in the federal prison population in three decades.

“Thanks to a variety of effective, evidence-based reentry programs and services, we’re doing more than ever to ensure that the tens of thousands of federal inmates who return to their communities each year have access to the substance abuse treatment, job training, affordable housing, parenting education, and other resources that so many need to break the cycle of poverty, criminality, and incarceration.

“Through innovative strategies like the Justice Department’s ‘Smart on Crime’ initiative, we’re working hard to tear down unnecessary barriers to opportunity and independence – while building up programs that enable former prisoners to reintegrate into their communities.  And nowhere is this work stronger than at the Federal Bureau of Prisons – where groundbreaking efforts are underway to make our criminal justice expenditures both smarter and more productive.

“Today, I’m pleased to announce that the Justice Department – through the Bureau of Prisons – is taking a critical step forward that will enable us to build on this important work – and improve the way reentry programming is implemented from coast to coast.

“For the first time, we will require all 200-plus halfway houses in the federal system to offer standardized treatment to prisoners with mental health and substance abuse issues. This treatment will be intensive, and must follow rigorous standards set forth by the Bureau of Prisons.  Once fully implemented, these services will be available to every single one of the approximately 30,000 inmates who are released through halfway houses each year.  This will ensure consistency and continuity of care between federal prisons and community-based facilities.  And it will enhance the programs that help prisoners overcome their past struggles, get on the right path, and stay out of our criminal justice system.

“These important changes and others are codified in BOP’s published requirements for halfway houses – which will be posted online this week.  Over the next 30 days, those who operate halfway houses will have the opportunity to provide feedback on these newly proposed requirements.  And I encourage members of the public to visit this site, learn about these tools, and make your voices heard as well – so we can all take an active part in constructing the more effective, more efficient, and more just system that everyone in this country deserves.”