Wednesday, May 7, 2014

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

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS

NAVY

Sikorsky Aircraft Corp., Stratford, Connecticut, is being awarded a $1,244,677,064 fixed-price-incentive-firm target contract for the engineering and manufacturing development phase of the Presidential Helicopter Replacement program. This contract provides for the procurement of six test aircraft and the associated support equipment, integration of mature government-defined mission systems, a training system including a flight training device and a maintenance training device, logistics, engineering, and test and evaluation support. Work will be performed in Stratford, Connecticut, (62.22 percent); Owego, New York, (19.38 percent); Coatesville, Pennsylvania, (14.25 percent); Orlando, Florida, (1.44 percent); Phoenix, Arizona, (.86 percent); Cedar Rapids, Iowa (.85 percent); Vergennes, Vermont, (.53 percent); and Torrance, California, (.47 percent), and is expected to be completed in October 2020. Fiscal 2014 research, development, test and evaluation, Navy funds in the amount of $42,000,000 are being obligated at time of award, none of which will expire at the end of the current fiscal year. This contract was competitively procured via an electronic request for proposals and one offer was received. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-14-C-0050).

dck-ecc pacific guam, LLC, Pittsburgh, Pennsylvania, is being awarded $53,728,000 for firm-fixed-price task order 0002 under a previously awarded multiple award construction contract (N62742-10-D-1308) for the design and construction of an aircraft maintenance hangar to provide operational and maintenance facilities for the 1st Marine Aircraft Wing at Andersen Air Force Base North Ramp, Guam. The hangars support current marine air/ground task force training requirements and the permanent relocation of United States Marine Corps forces from Okinawa to Guam. The aircraft maintenance hangar will be comprised of three areas – the hangar bay, the shop and maintenance area, and the administration and operations area. Work will be performed in Yigo, Guam, and is expected to be completed by December 2016. Fiscal 2014 military construction, Navy contract funds in the amount of $53,728,000 are being obligated at the time of award and will not expire at the end of the current fiscal year. Five proposals were received for this task order. The Naval Facilities Engineering Command, Pacific, Joint Base Pearl Harbor-Hickam, Hawaii, is the contracting activity.
L-3 Communications Corp., Arlington, Texas, is being awarded a $19,018,574 modification to a previously awarded firm-fixed-price contract (N61340-11-C-0017) for the upgrade of six CF-18C/D Advanced Distributed Combat Training Systems for the government of Canada under the Foreign Military Sales program. Work will be performed in Arlington, Texas (40 percent), Bagotville, Canada (30 percent), and Cold Lake, Canada (30 percent), and is expected to be completed in November 2016. Foreign military sales funds in the amount of $19,018,574 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Training Systems Division, Orlando, Fla., is the contracting activity.

DEFENSE LOGISTICS AGENCY

US Foods, Inc., Livermore, California, has been awarded a maximum $67,635,644 fixed-price with economic-price-adjustment, indefinite-quantity contract for full line food distribution. This is a two-year base contract with one two-year option period. This is a competitive acquisition, and three offers were received. Location of performance is California with a June 1, 2016 performance completion date. Using services are Army, Navy, and Air Force, Marine Corps, Coast Guard, and Air National Guard. Type of appropriation is fiscal year 2014 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania, (SPE300-14-D-3007).

Phillystran Inc., Montgomeryville, Pennsylvania, has been awarded a maximum $21,258,655 modification (P00007) exercising the first option period on a one-year base contract (SPE8EE-13-D-0001) with four one-year option periods for aramid rope. This is a fixed-price with economic-price-adjustment contract. Location of performance is Pennsylvania with a May 16, 2015 performance completion date. Using military service is Navy. Type of appropriation is fiscal year 2013 through fiscal year 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

Whitehill Manufacturing Corp.,* Chester, Pennsylvania, has been awarded a maximum $6,741,345 modification (P00004) exercising the first option period on a one-year base contract (SPE8EE-13-D-0002) with four one-year option periods for aramid rope. This is a fixed-price with economic-price-adjustment contract. Location of performance is Pennsylvania with a May 16, 2015 performance completion date. Using military service is Navy. Type of appropriation is fiscal year 2013 through fiscal year 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania.

ARMY

General Atomics Aeronautical Systems, Poway, California, was awarded a $296,941,937 modification (P00073) to contract W58RGZ-12-C-0075 for Gray Eagle overall logistics support and fleet sustainment operations, including spares and repairs. Work will be performed in Poway, California, and Afghanistan with an estimated completion date of May 7, 2015. Fiscal 2014 operations and maintenance Army funds in the amount of $215,261,580 and other procurement funds Army in the amount of $9,996,693 were obligated at the time of the award. Army Contracting Command, Redstone, Arsenal, Alabama, is the contracting activity.

Oshkosh Corp, Oshkosh, Wisconsin, was awarded a $21,832,417 modification (000736) to partial foreign military sales contract W56HZV-09-D-0159 to add 100 Family of Medium Tactical Vehicles (FMTV), 88 for the Army Reserve and 12 for the Kingdom of Jordan. Work will be performed in Oshkosh, Wisconsin with an estimated completion of Oct. 31, 2015. Other procurement Army funds in the amount of $18,898,225 for fiscal 2013 and in the amount of $2,934,192 for fiscal 2010 were obligated at the time of the award. Army Contracting Command, Warren, Michigan, is the contracting activity.

Value Recovery Holding LLC, Columbus, Ohio was awarded a $10,418,747 cost-plus-fixed-fee contract with options for support services to the Army Energy Initiative Task Force. Fiscal 2014 operations and maintenance Army funds in the amount of $5,303,357 were obligated at the time of the award. Work will be performed in Arlington, Virginia, with an estimated completion date of May, 7, 2018. Bids were solicited via the Internet with six received. Army Corps of Engineers, Huntsville, Alabama, is the contracting activity (W912DY-14-C-0008).
Imperatis Corp., Arlington, Virginia, was awarded a $9,399,893 modification (P00005) to contract W56SGK-14-C-0003 to provide the capability for embedded counterinsurgency advisory and assistance teams to analyze, advise, assist, and develop solutions across the Afghan area of operations. Work will be performed in Afghanistan with an estimated completion dated of Sept. 15, 2014. Fiscal 2014 funds in the amount of $9,399,893 were obligated at the time of the award. Central Command Joint Theater Support Contracting Command, Phoenix, Arizona, is the contracting activity.

Jensen Construction Co., Des Moines, Iowa was awarded a $9,294,000 firm-fixed-price contract for control structure replacement for the Des Moines River Basin, Saylorville Lake Big Creek Diversion Dam, Polk County, Iowa. Work will be performed in Des Moines, Iowa with an estimated completion date of May, 3, 2016. Fiscal 2014 operations and maintenance Army funds in the amount of $9,294,000 were obligated at the time of the award. Bids were solicited via the Internet with four received. Army Corps of Engineers, Rock Island Illinois, is the contracting activity (W912EK-14-C-0057).

SPECIAL OPERATIONS COMMAND

K-CRUZ*, Yorktown, Virginia, is being awarded a $48,000,000, indefinite-delivery/indefinite quantity contract to provide non-personal services for technical and logistic support for the Technology Applications Program Office, Mission Enhanced Little Bird, and Special Operational Mission Planning Environment program offices. The majority of the work will be performed in Fort Eustis, Virginia. The contract has a five year base period and a three year incentive award period so the estimated completion date is May 6, 2022. Fiscal 2014 operations and maintenance funds in the amount of $94,698 are being obligated on the first task order at time of award. This contract was awarded through competitive 100% 8(a) small business set aside, and three offers were received. U.S. Special Operations Command, Tampa, Florida, is the contracting activity (H92241-14-D-0005).

*Small Business

SECRETARY KERRY'S REMARKS AT COUNCIL OF THE AMERICA'S CONFERENCE

FROM:  U.S. STATE DEPARTMENT 

Remarks at the Council of the Americas' 44th Conference on the Americas

Remarks
John Kerry
Secretary of State
Loy Henderson Hall
Washington, DC
May 7, 2014



I’m very, very happy to be here with all of you, and I thank you for coming here for this meeting. Delighted to be introduced by John. My sister Peggy works up at the UN and she had a chance to work for John, who has served the President and Hillary Clinton and myself so well on the Foreign Affairs Policy Board, and it’s a pleasure for me to be able to welcome him back to the State Department. He’s one of our eminence grises who shares great experience, a road well-traveled, and a lot of good input to some of the very complicated challenges that we’re facing today. He’s also witnessed firsthand the remarkable transformation of the Western Hemisphere, and I think the truth is, we both know, it’s really just the precursor to things to come. And I think the size of the gathering here today, the quality of people assembled here, is testimony to that.

I want to thank Roberta Jacobson for her leadership. As our Assistant Secretary, she is constantly on the road and engaged actively in a lot of the transformations that are taking place here. I also want to thank Senator Tim Kaine, who’s hiding behind the house photographer here. (Laughter.) Tim, I had the pleasure of serving with also on the committee – the Foreign Relations Committee – and he’s just a superb senator and good friend and represents a state which is as forward leaning on trade and technology and the future as any state in the country – a state, I might add, that’s been growing and changing markedly over these last years. So I’m delighted that Tim is here, and you’re going to hear from him, and he does understand the stakes here.

I’m also proud that my governor, Governor Deval Patrick, is here. He’s also going to share some thoughts with you. Deval is in his last year of a two-term stewardship of the state, could have chosen to run again, but I think wants to return to the private sector for a period of time, despite a number of entreaties to do otherwise. And we are deeply appreciative. It was the first state to pass a sensible healthcare plan in the United States, and I just read yesterday that the life expectancy in Massachusetts has risen markedly, definitively, since that has been put in place. So quality of life is up, and businesses in our state are not complaining, but rather, think it’s been a very effective means of providing coverage and lowering costs.

So this is a great opportunity to share thoughts. I mean, this – yeah, I’m just back from Africa yesterday – midnight last night, or the night before last – and I was in the Democratic Republic of the Congo, Angola, South Sudan, Ethiopia. And I’ll tell you this is a world of extraordinary opportunity right now, but also of remarkable change. The transformations taking place are really hard to describe. It’s a very different world from the world I grew up in. I’m a Cold War child who learned how to duck under the desk and take cover for the event of a nuclear war, and some of you here may have shared that experience. Since then, we’ve seen the end of the Cold War, the fall of the Berlin Wall, the remarkable bursting out of an incredible number of pent-up demand in various places, not the least of which is manifested in this increased sectarianism, increased religious distortion, exploitation, which results in extremism, as well as ideological extremism.

And we see, with what is happening in Nigeria with Boko Haram, the extents to which this can disrupt the world. It’s a challenge to all of us. And what I saw in Africa convinced me, as I talked to leader after leader and asked them how they balance this tension of these challenges that they face – they all talked about poverty and the need to alleviate poverty, and that much of this challenge comes out of this poverty where young people are grabbed at an early stage, proffered a little bit of money. Their minds are bended, and then the money doesn’t matter anymore; they’ve got the minds, and they begin to direct them into these very extreme endeavors.

And for all of us, the truth is it’s not something far away. Every American needs to understand that this is related to security at home, related to the capacity for job growth in the future, related to stability that the absence of may demand, at some point in time, the deployment of some of their sons and daughters to some far-off place in the world. We are all connected today. And everybody increasingly in these countries is dealing with some kind of mobile device, and they’re all tuned in, 24/7, 365 – everybody is connected. And no politician in any part of the world can operate with complete impunity as a result of that.

So this is the world we live in. I might add, in this new era of new partnerships, we think that the partnership means you’ve got to share resources and assets, like in football or soccer. So we’re here to humbly request the services of Lionel Messi for the month of June. We think that would work just fine for our interests. (Laughter.) I had a chance to see the World Cup right here in the other auditorium over there. Vice President Biden and I held an event to celebrate the coming of the World Cup. And we had the actual World Cup there. And I relished it because in all honesty, I wasn’t sure that I would see it here again very soon. (Laughter.) We’re in the tier of death. I don’t know if you know that. We’re poised to take on some of the toughest teams. But I have confidence in our team. They’re coming on strong and we have high hopes.

The bottom line is this: When you travel the world, as I get to as Secretary of State representing our great nation and all of the opportunities that all of you represent in our businesses, I really get to see both the challenge and the opportunity. And the opportunity is staggering, absolutely extraordinary. There are so many schools that need to be built, so many roads that need to be built, so much transportation infrastructure that needs to be built, so many people in the world still living on less than $2 a day or less than a dollar a day in many places – all of whom are thirsting to be part of that growing middle class that you see in countless numbers of countries.
So if you’re in business, as you all are, you’re staring at untold opportunity. And I’ll speak in a moment about some of that. You see regions of the world, obviously, that are in crisis and full of promise at the same time, all of them struggling to break out of an old cycle of this violence and poverty, despair, and corruption. Everywhere I go, when I meet with the foreign ministers or prime ministers or presidents, leaders of these countries, in some case monarchs still, you will find those leaders are struggling to open doors and make tough decisions. And I share with them the stories of what we are doing in this hemisphere. It’s a great example. I tell them the story of the American journey, and I can say America North and South. We are proof positive, really the real evidence, if you will, of what can await a lot of countries in the world if they finally make tough decisions and make the right decisions.

And I share this for one simple reason: It’s true. I came to the senate in 1985. John referred to that a moment ago in his introduction, how we were there together working together during a very difficult time. I know he remembers it very, very well. It was a period when the region only seemed to land in the headlines for the wrong reasons – violence, upheaval, repression, whether it was Guatemala or Nicaragua or El Salvador or Colombia. I remember when we were struggling over the Plan Colombia. We were dealing with the questions of narcotics and corruption. It was a very difficult era – a government literally under siege. I think thirteen supreme court justices were assassinated in one moment, and presidential candidates were assassinated. There was a question as to the viability of the system. But today, this story of this hemisphere is exhibit A that incredible progress is possible when there’s the right kind of leadership.

Today it’s crystal clear that if we work together and play our cards right, the Western Hemisphere can become literally the most stable and prosperous region in the world. That’s the possibility that we think we’re looking at.

Just think about it. Over the last decade, the economies of Latin America and the Caribbean grew at a rate of 4 percent a year, and this growth has lifted the lives of citizens. In the past decade alone, as trade between the United States and the Americas nearly tripled, more than 73 million people in Latin America were lifted out of the poverty that I referred to a few minutes ago. Seventy-three million people – you could take all the people in New York, Mexico City, Rio de Janeiro, Toronto, and Bogota, and you still wouldn’t be halfway to that number of people who have been lifted out of poverty.

It’s a great story. It didn’t happen by accident. It happened by integrating markets, by incentivizing innovation, by creating new opportunities for citizens of all backgrounds. In short, it happened because leaders and institutions were willing to make the tough decisions to break away from the past, to try to make peace where there were insurgencies, and to open up new markets with trade agreements. They were prepared to commit to the future.

But even as we celebrate the growth that has spread through our hemisphere, it doesn’t mean we can sort of sit back and say, “Okay, job done, take a break.” It means that we have to develop a strategy to invest in the lasting, shared prosperity needed to lift up our section of the world for decades to come, and I believe that’s possible. That’s our goal. I believe there are four areas in particular where we will get the most return on our investments, and none of them, I think, will surprise you.

First and foremost is education. I’m preaching to the choir, I know, but we’ve got to make sure, still, despite your acceptance of this, it doesn’t automatically translate into the kind of political process necessary to guarantee we’re doing what we need to do. And the numbers of young people coming online in countries is staggering and way ahead of the numbers of desks and chairs and teachers and buildings for them to get that education. The fact is that the people in our hemisphere, youngAmericanos, are global learners, and we have to make sure that they can be those global learners so that they can thrive in the economies that we are developing.
And that is exactly the thinking behind President Obama’s 100,000 Strong in the Americas, an effort to increase student exchanges throughout our hemisphere in both directions. And we’re very successfully moving to grow to those numbers. All you have to do is ask a young woman from Paraguay by the name of Cecilia Martinez Gomez. She was a terrific student in high school, and when she was finished, she decided that she wanted to come to the United States for college and study English. The only problem was every program that she came across was far too expensive for her to be able to consider it. Through the connections that we have built with 100,000 Strong, Cecilia was able to participate in a program at Wichita State University in Kansas where she then eventually earned her bachelor’s degree. A couple of years later, she went on to get a master’s degree in public administration. And now she’s thriving and giving back.

So education’s only the first step, and I think everybody here understands that. Then you have to answer the question: So what comes next? You come out of school. Can you find a job? Is your economy growing? Will you have the skills necessary to be able to do what you want to do? And what happens to all these young people after graduation? And that’s why trade and economic integration are the next areas that we need to put our effort into and our investment.
Now, already, the United States has free trade agreements with 12 countries in the hemisphere. That is more than any other region in the world. And under the President’s leadership, we have also helped expand the hemisphere’s participation in the Trans-Pacific Partnership, Chile and Peru, and beyond, and also to include Canada and Mexico. A number of nations in our hemisphere are already particularly important Pacific Rim players, and many of those without a Pacific coast are actually taking steps to now strengthen their ties with Asia as a result. So we’re looking to our partners in the Americas as a natural complement to our strategy in the 21st century Pacific. And you all saw the success of the President’s trip in moving Prime Minister Abe to a point of acceptance of and advancing the TPP, and also advancing it in Philippines and South Asia.

We’ve also redoubled our commitment to NAFTA, which actually turned 20 this year. I remember that debate, a very tough, very bitter debate which lingered in our politics for some period of time. But it remains the greatest single step toward shared prosperity in this hemisphere. And in recent years, we’ve seen greater collaboration between the United States, Canada, and Mexico than ever before in our history, growing all the time. I will be in Mexico in a few weeks to continue that dialogue, and the President was there just a few weeks ago. Tim Kaine, I think, is going to talk to you a little bit about the critical relationship we share with Mexico. But today, I’m pleased to be able to share with you this – my plan to be there in Mexico City later in the month, because Mexico has become a very valued partner on so many issues, especially on the economic challenges both within North America and beyond. So I’m very much looking forward to my visit.

But for all the success and growth that we’ve seen, I don’t think there’s anybody sitting here who doesn’t think we can do more. Of course we can, and we have to do more. And if we do, then the Western Hemisphere – think about this – the Western Hemisphere can wind up being literally the leader of the global market for decades to come. And I say that with some sense of assurance when I look at some of the developmental issues, challenges of infrastructure, challenges of politics, challenges of capital flow and other – market access, other kinds of things that exist in other parts of the world. But if we get the TPP and the TTIP, both of which equal 40 percent of the market each, globally, you are talking about changing trade relationships and business capacity all across the planet.

Real economic integration will require us to do two things: reduce the cost of doing business across borders by opening up trade throughout Central and South America, and increase access to international markets for big business and small business alike. As we’ve seen here in the United States, this will require some more creative thinking. Over the past decade, U.S. small businesses have generated the majority of net growth in new jobs, but still less than 1 percent of America’s 30 million small companies export their goods and services out of the country.

That’s one of the reasons why President Obama has launched the Small Business Network of the Americas. The Network connects more than 1,000 small businesses – small business development centers in the United States with thousands of centers in Latin America in order to help build the kind of relationships that make exporting more easy and effective at the same time, and accessible to people.

Now, that’s just one of many programs that we have in place to make it easier for entrepreneurs in the hemisphere to access markets, to access capital, training, and leadership opportunities. We’re also very proud of the Pathways to Prosperity Innovation Challenge and the Women’s Entrepreneurship in the Americas initiative, better known as WE Americas.

So far, WE Americas has benefited some 20,000 women. An example: an entrepreneur, Vanessa Mazorra, who comes from El Salvador, and she owns a clothing and accessories company. Not so long ago, she produced about 500 pieces a month. But thanks to WE Americas support from the State Department and USAID, she has been able to significantly expand her operations and begin exporting internationally, including to the United States. Today, she produces nearly 3,000 pieces a month and growing. And last year, the Salvadoran Corporation of Exporters named her the Small and Medium Enterprise Exporter of the year. That’s what can happen. And it’s a program that we are excited about and will grow and want to work with you to try to get out there and get other people to understand exists.

Day after day, we are seeing how relatively small investments – these are not big deals, complicated – but relatively small investments can have enormous business benefits. And this spreads way beyond just the individual – spreads into the community, and ultimately even an entire country as you begin to attack that fundamental issue of creating a middle class and lifting people out of poverty.

Continued economic growth will also require us to invest in the third area I want to discuss today very quickly: energy security. You all saw the report, I hope, today – the front page of The Washington Postand New York Times – are very clear about a very important report released by the Administration yesterday with respect to climate change. I, again, see this all over the world, and I think you probably do too, the consequences. Yet you will still read within the article the doubts some Americans still have about this being a frontline issue. But today it is clear that the world’s new energy map – and this is a huge transformational moment in this regard – the world’s new energy map is no longer centered on the Middle East but on the Western Hemisphere. The region will account for two-thirds of the growth in the world’s oil supply over the next two decades. But oil and gas are only part of the big picture. And we also know that while many of the hemisphere’s largest countries are increasingly global energy producers, many of the hemisphere’s smallest countries are bearing the brunt of the burden when it comes to high-energy prices and the disastrous impacts of climate change, as the scientific report from the White House yesterday just confirms.

Unfortunately, these impacts are only going to get worse. And without serious reductions in global greenhouse gas emissions, we are looking at some very expensive choices for people. So this hemisphere needs to commit and needs to lead the world in terms of moving rapidly to energy resources that are used more responsibly and more sustainably. And there are leaders here among you who are doing exactly that. For example, last year Mexico passed
comprehensive climate change legislation that included ambitious greenhouse gas targets. I can’t emphasize enough: If you really want to address the problem of climate change, you enhance energy security and you reduce energy costs. And we know exactly what we have to do. The solution to climate change is energy policy. And we have to do a better job, all of us, in investing in new clean energy technologies and connecting energy markets from Chile to Canada.

And here in the United States, this is an extraordinary opportunity. We don’t even have a grid. We have an east coast grid, a west coast grid, a Texas grid, and a little line that goes from Chicago out towards the Dakotas. That’s it. Huge centerpiece opening in the belly of America. You can’t sell energy from those wind farms of Minnesota or Iowa to somewhere in the South. You can’t sell solar thermal energy from the South to the North where they need it. It’s ridiculous. It’s almost insulting for a great country like ours with our capital and our capacity not to have yet developed a modern, smart energy grid for this nation.

So we believe in this future of energy policy for this hemisphere, of linking Canada, U.S., Mexico, to all the way down through Latin America. And that’s exactly the idea behind a program that we have created called Connecting the Americas 2022. This initiative is about encouraging private sector investment in renewable energy and ultimately providing cheaper, cleaner, more reliable power for citizens all across the region. And already we are seeing encouraging progress. The final 25 miles of SIEPAC power transmission, the line in Costa Rica, ought to be completed later this year. And once that happens, all six Central American countries will be linked into one power grid for the first time in history. Think what could happen if we could all be linked ultimately.

Finally – and by the way, this is the biggest market in the world. The market that made America wealthy in the 1990s, where every single quintile of American income earner saw their income go up, was a $1 trillion market with 1 billion users. The market I just described for energy is a $6 trillion market today, 4-5 billion users, and going up to 9 billion users over the course of the next 20, 30, 40 years. It’s the biggest market in the history of human kind, and we need to be on the frontline of tapping into it and leading the world to it. And by the way, what I saw in Africa was this extraordinary demand for energy. It’s a huge restraint on growth, and one of the key components of what they need to do. So this is global, and if we don’t do it in the right way – read today’s newspapers – it’s going to be disastrous.

So if we want to bring about the prosperous, stable future that we dream of, the fourth area that all governments in the Americas must invest in is good governance. If we manage revenue effectively and transparently and maintain a sufficient tax base, then our nations can invest in the services and infrastructure needed to support social mobility and competitive economies. But I got to tell you: Corruption and fragile institutions drive down investor confidence and deny citizens economic opportunities, exacerbating crime and insecurity, chasing away capital, and leaving doubts about the possibilities. And they produce an environment, as a result, where innovation and economic growth simply can’t thrive.

That’s one of the many reasons why the United States is deeply concerned by the deteriorating situation in Venezuela, for instance. We believe the future of Venezuela is for the people of Venezuela to decide. And the people in the streets have legitimate grievances that deserve to be addressed. And the serious and worsening economic and social challenges in Venezuela can only be resolved with the input of those people. So we support the UNASUR-sponsored dialogue in the hope that it will allow Venezuelans to come together and take on the challenges that they face. But make no mistake: We will never stop defending the basic human rights that are essential to any functioning democracy, including the freedoms of expression and peaceful assembly.
Now for these same reasons, of course, we remain concerned about the Cuban people. None of us want to see the Cuban people continue to be left behind as the rest of the hemisphere advances. Since 2009, President Obama’s Cuba policy has been geared towards loosening the dependence of Cubans on the state and strengthening independent civil society. There’s an important overlap between U.S. policy and the emerging micro-entrepreneurial sector in Cuba.
President Obama’s goal has always been to empower Cubans to freely determine their own futures. And the most effective tool we have to promote this goal is helping to build deeper connections between the Cuban and American peoples. The hundreds of thousands of Cuban Americans who now send remittances and who travel each year under the President’s policies, they are critical to ensuring that the Cuban people have more of the opportunities that they deserve.

Now I know the Council of Americas has proposed steps that could be taken to further support Cuban entrepreneurs, and we want to thank you for those recommendations, and we very much appreciate those suggestions as we continue to evaluate the policies that we have in place today, and I can promise you we will do so.

We are immensely proud of this hemisphere’s positive trajectory, and we look forward to helping it move forward in the days ahead, including next month when our Deputy Secretary of State Heather Higginbottom leads the U.S. delegation to the OAS General Assembly in Paraguay. But it’s clear to all of you, I think, for our trajectory to continue in the direction we want it to, for these investments in education and the other investments that I’ve described – in trade and economic integration, in energy security and in good governance – for all of these to bring home the unity and the integration and the future that we want, we all are going to have to stay together, we’re going to have to continue to engage; we’re going to have to continue to push leaders, in some cases, to lead to the full potential. And in the end, I’m convinced this hemisphere has the ability to define a hemispheric future that is very different from anything that we lived in the 20th century.

The 21st century can be a time of new definition of possibilities for people. And as you see the incredible input of people who have come to America as immigrants from throughout this hemisphere, who love the fact that that they are today American, but always will remember where they came from and take pride in their language and their culture and make America richer because of it – that’s the definition that we get to make. We are – the beauty of America is we’re not defined by ethnicity and we’re not defined by – or we shouldn’t be. Maybe in some places people still fall into bad habits. But basically that’s not what defines America. America is defined as an idea. An idea. Read the Declaration of Independence. Look at the Constitution. That defines the idea. And more and more people are excited by and buying into that idea. And I’m convinced that if we focus on the things I laid out today, we’re going to give that idea definition that will have resonance all across this planet.

The one thing I have said since the day I was nominated for this job is economic policy is foreign policy, and foreign policy is economic policy. And we see that more today in this globalized world than at any other time. So all of you are instruments of our ability to market our values and protect our interests at the same time. And I thank you for being part of the Council and your willingness to do that. Thank you. (Applause.)

IRS VIRTUAL CURRENCY GUIDANCE

FROM:  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
IR-2014-36, March. 25, 2014

WASHINGTON — The Internal Revenue Service 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.

READOUT: NSA RICE'S BILATERAL MEETING WITH ISRAEL'S PRIME MINISTER NETANYAHU

FROM:  THE WHITE HOUSE 

May 7, 2014

Readout of National Security Adviser Susan E. Rice's Bilateral Meeting with Prime Minister Netanyahu

National Security Adviser Susan E. Rice met with Israeli Prime Minister Netanyahu today in advance of the U.S.-Israel Consultative Group consultations, to be held tomorrow (May 8).  They discussed a wide range of regional and bilateral issues, including the United States and Israel’s close security cooperation, which has been unprecedented under President Obama’s leadership.   On Iran, Ambassador Rice emphasized the critical importance of pursuing a comprehensive solution that assures the international community that Iran’s nuclear program is exclusively peaceful.  She reiterated that the United States will not allow Iran to acquire a nuclear weapon, and that diplomacy is the best way to resolve the international community’s concerns peacefully.  Ambassador Rice told Prime Minister Netanyahu that the United States will continue intensive consultations with Israel as P5+1 and the EU negotiations continue. 
On Israeli-Palestinians negotiations, Ambassador Rice noted that, while we have come to a pause in the parties’ talks, the United States remains convinced that lasting peace can only be secured through direct negotiations that lead to two viable, independent states living side-by-side in peace and security.
Finally, Ambassador Rice and Prime Minister Netanyahu discussed global and regional issues including Syria and Ukraine.

CHAIRMAN JOINT CHIEFS TELLS SENATE THERE'S A NEED FOR MILITARY BALANCE

FROM:  U.S. DEFENSE DEPARTMENT 

Right:  Army Gen. Martin E. Dempsey, right, chairman of the Joint Chiefs of Staff, testifies before the Senate Armed Services Committee in Washington, May 6, 2014. DOD photo by Army Staff Sgt. Sean K. Harp. 
Dempsey Stresses Need for Military Balance in Senate Hearing
By Jim Garamone
American Forces Press Service

WASHINGTON, May 6, 2014 – Pay and compensation are only one part of a broader challenge to the Defense Department to maintain the balance the military needs to fight the nation’s wars, the chairman of the Joint Chiefs of Staff told the Senate Armed Services Committee today.

Army Gen. Martin E. Dempsey and the rest of the Joint Chiefs of Staff testified before the committee to ask the senators to support recommendations to slow the growth of military compensation. The senior enlisted leaders of the services sat behind the chiefs to express their solidarity to the proposals.

“We’re working to make sure that the joint force is in the right balance to preserve military options for the nation in the face of a changing security environment and a declining budget,” the chairman told the senators. “We’ve been tasked to reduce the defense budget by up to $1 trillion over 10 years while upholding our sacred obligation to properly train, equip and prepare the force.”

Doing this means the department must carefully allocate resources to ensure that if service members are sent into harm’s way, they are the best-led, best-trained and best-equipped force on the battlefield. This requires balance among competing fiscal accounts.

Making fiscal choices requires certainty, time and flexibility, Dempsey said. “While we have a degree of certainty in our budget for the next two years, really for this year, we still don’t have a predictable funding stream or the flexibility and time we need to reset the force for the challenges ahead,” he said.

The military needs Congress to step forward and help, Dempsey said. “Our recommendations have lacked congressional support -- notably, our request to reduce base infrastructure and retire weapons systems that we no longer need and cannot afford,” the chairman told the senators. “In the meantime, we are continuing to hemorrhage readiness and cutting further into modernization. [This means] risk to the performance of our mission and risk to those who serve continues to grow.”
Dempsey told the senators that all members of the Joint Chiefs of Staff and all of the services’ senior enlisted leaders support the three departmentwide principles to rebalance military compensation.

“First, we’re not advocating direct cuts to troops’ pay,” Dempsey said. “Rather, this package slows the growth of basic pay and housing allowances while reducing commissary subsidies and modernizing our health care system.”
Second, military leaders will ensure that the compensation package allows the services to continue to attract and retain the quality people needed, Dempsey said. “We’ll watch the way the force reacts, and if it reacts, we’ll be back to you with recommendations on how to adjust,” he added. “But we have to take that step.”
Finally, Dempsey told the Senate panel, savings from this will be invested in force readiness and modernization.

The chairman emphasized that none of these recommendations would impinge on care for wounded warriors or on the mental health challenges facing the force.
“We’re seeking $31 billion in savings in pay compensation and health care over the future-year defense program,” the general said. “If we don’t get it, we’ll have to take $31 billion out of readiness, modernization and force structure over that same period.”

Delaying the decision until next year will mean a two-year delay in implementation, Dempsey said, which would force the department to restore about $18 billion in lost savings.

“In short, we have submitted a balanced package that meets budgetary limits, enables us to fulfill the current defense strategy and allows us to recruit and retain the exceptional talent that we need,” Dempsey said. “Our people are our greatest strength and they do deserve the best support we can provide.”

U.S. COUNTERS RUSSIAN INTERVENTION IN UKRAINE DOD OFFICIAL TELLS SENATE COMMITTEE

FROM:  U.S. DEFENSE DEPARTMENT 
DOD Works to Counter Russian Intervention in Ukraine
By Jim Garamone
American Forces Press Service

WASHINGTON, May 6, 2014 – The Defense Department is working with the State Department and NATO allies to provide reassurance, deterrence and support to Ukraine, the deputy assistant secretary of defense for Russia, Ukraine and Eurasia told the Senate Foreign Relations Committee today.
The U.S. government’s response to Russia’s actions in the region is being done carefully and without taking actions that would escalate the crisis, Evelyn N. Farkas said.

“Russia’s illegal annexation of Crimea, followed by blatant and unconcealed efforts to eastern and southern Ukraine, signifies a paradigm shift in our relations with Russia,” she said. “Despite Russia’s efforts to portray the situation otherwise, this crisis is entirely one of its choosing. These actions represent a wholesale rejection of the idea of a Europe whole, free and at peace.”
Farkas listed the DOD contributions to Ukraine. Soon after Russia moved into Crimea, the department delivered 329,000 packaged meals to support forces in the field. DOD also has sent uniforms, medical supplies and other nonlethal equipment to Ukrainian armed forces and border guards.

All told, this adds up to about $18 million of aid to date, she said. “Looking ahead,” she added, “we will use all available tools to provide meaningful cost-effective support to Ukraine’s security institutions.”

DOD officials also continue to engage with their Ukrainian counterparts, Farkas said, noting that a high-level meeting is scheduled next month.

The United States has also taken prompt and high-profile steps to reassure NATO allies in light of Russian activity in Ukraine, Farkas said. These include a stepped up maritime presence in the Black Sea and the deployment of additional combat aircraft to the Baltic republics and to Poland.

“Last week, 600 paratroopers arrived in Estonia, Latvia, Lithuania and Poland to begin exercises requested by those nations,” she said. “These exercises are the first in a series of activities that will take place over the next few months and beyond.”

The United States is also taking steps to support non-NATO partners – such as Moldova and Georgia – that feel threatened by Russia’s actions, she said.
And the United States is not alone, Farkas told the panel.

“Since the start of this crisis, our NATO allies have acted with resolve. As we approach the NATO summit in Wales this fall, we will continue to urge all NATO allies to increase support to these reassurance measures, including by bolstering their individual commitments to allied security by robust defense investment.”
These measures represent a clear eastward shift of allied forces, she said, specifically intended to counter Russia’s aggressive actions.

DOD SAYS UKRAINIAN BORDER GUARDS RECEIVE EQUIPMENT

FROM:  U.S. DEFENSE DEPARTMENT 
Ukrainian Border Guards Get Equipment, DOD Spokesman Says
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, May 6, 2014 – Ukraine’s border guard has received a large percentage of the U.S.-funded equipment it requested, a Defense Department spokesman said here today.

Army Col. Steven Warren told Pentagon reporters that DOD recently provided funding to Ukraine for locally purchased equipment.

“To date,” he said, “using Cooperative Threat Reduction funds, Embassy Kiev has purchased and delivered fuel pumps, concertina wire, vehicle batteries, spare parts, binoculars [and] communications gear [for] the Ukrainian border guards for use in monitoring and securing their borders.”

Warren explained that the Ukrainian assistance falls into two categories: one for the border guard and another for regular army support. Approved support to Ukraine’s regular army continues through necessary channels, he added.
Asked about whether Pentagon officials see a correlation between Russian air activities in the Pacific and activities in Ukraine, Warren said officials see no specific linkage, noting that the Russian military has long operated in the Pacific.
Warren as also was asked about an increase in Russian naval presence in the Black Sea, and he emphasized the need for de-escalation.

“The Black Sea is international waters,” he said. “The Russians, of course, as all nations, can train and travel through international waters. We’ve long called on the Russians to take [steps] to de-escalate the tensions in that region. Certainly, increased naval presence in the Black Sea does not contribute to de-escalation.”
Pentagon officials believe the Russians have an opportunity to take actions that will help to bring a swift and peaceful resolution to the situation in Ukraine, Warren added.

FORMER DEPUTY PLEADS GUILTY TO UNLAWFULLY DETAINING HISPANIC MOTORISTS FOR MONEY

FROM:  U.S. JUSTICE DEPARTMENT 
Tuesday, May 6, 2014
Former Lowndes County, Georgia, Sheriff’s Deputy Pleads Guilty to Civil Rights Conspiracy Charge

Today, the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Georgia announced that Jason Stacks, a former Lowndes County Sheriff’s Office (LCSO) Deputy, pleaded guilty to conspiring to use his law enforcement authority to unlawfully detain and take money from motorists.  
     
In connection with his plea, Stacks admitted that he conspired with two civilians to subject Hispanic motorists to unlawful traffic stops so that the conspirators could demand the motorists pay money in order to avoid arrest and/or deportation.  On Aug. 16, 2013, Stacks, while acting as a LCSO Deputy, unlawfully detained at least four motorists.  One of the motorists, identified in the plea documents by the initials T.C., was unlawfully detained by Stacks and then approached by Stacks’s two Spanish-speaking co-conspirators, who explained to T.C. that he would be sent to jail or deported if he did not pay $500.  When T.C. responded that he did not have $500 in his car, the co-conspirators drove T.C. to his residence and took $300 in cash from him.  Stacks and the two co-conspirators divided the $300 among them.

“Mr. Stacks admitted that he conspired to use his badge to unlawfully detain and take money from motorists,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Justice Department will continue to vigorously prosecute officers who seek to profit from the violation of civil rights.”

“Today’s guilty plea is another example of the zero tolerance the Department of Justice has for law enforcement officers who violate individuals’ civil rights,” said U.S. Attorney Michael J. Moore for the Middle District of Georgia.

This case has been investigated by the FBI, with assistance from the Lowndes County Sheriff’s Office.  The matter is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Risa Berkower of the Civil Rights Division, with the assistance of the U.S. Attorney’s Office for the Middle District of Georgia.

REMARKS BY SECRETARY KERRY AND EU HIGH REPRESENTATIVE LADY ASHTON

FROM:  U.S. STATE DEPARTMENT 

Remarks With EU High Representative Lady Catherine Ashton After Their Meeting

Remarks

John Kerry
Secretary of State
Treaty Room
Washington, DC
May 6, 2014




SECRETARY KERRY: Well, good afternoon, everybody. I am very pleased, as always, to welcome my very good friend and colleague in these endeavors, the EU High Representative Cathy Ashton back here to Washington. I’m also personally happy to be back in Washington – (laughter) – after a trip through Africa that has left us with a very long to-do list, which we’re already working on.

Lady Ashton and I just covered a lot of ground, but since we’re in agreement on so much of it, we were able to cover it quite quickly. We discussed, most importantly, our shared strategy of using the tools of diplomacy in order to reduce the conflicts that are threatening Europe, Africa, the Middle East, and other parts of the world, but particularly there.

Let me begin with Ukraine. In the weeks since Lady Ashton and I met in Geneva, along with the Ukrainian foreign minister and the Russian foreign minister, we have been, it is fair to say, nothing less than disappointed to see Russia to fail to live up to the very plain and simple, easy-to-interpret commitments that were made in Geneva. And I’ll reiterate: The agreement that we made in Geneva, it really isn’t vague and it’s not open to some loose interpretation. It was simple, it was specific, and it outlined concrete steps that all of the parties had to take. Ukraine’s government, literally before the ink was dry, started to implement on that agreement. And they have held up their end of the bargain.

Ukraine has shown remarkable restraint. Almost immediately coming out of that meeting in Geneva, they ordered a cessation of any kind of counterterrorism activity, any effort to remove people from buildings based on the notion that both sides were going to work to bring people out of those buildings. And the fact is that they have been committed in Kyiv to trying to move their country forward through nonviolence, through constitutional reform, through dialogue, and by reaching out to the disaffected parts of Ukraine.

We also are very concerned about efforts of pro-Russian separatists in Donetsk, in Luhansk to organize, frankly, a contrived, bogus independence referendum on May 11th. We flatly reject this illegal effort to further divide Ukraine, and its pursuit will create even more problems in the effort to try to de-escalate the situation. This is really the Crimea playbook all over again, and no civilized nation is going to recognize the results of such a bogus effort.

As President Obama has made clear, if Russian elements continue to sabotage the democratic process and prevent Ukraine from holding a free and fair election 19 days from now on the 25th, then we stand ready to implement additional sanctions. And the “we” is Europe and the United States together. I know the European Union is strong in its commitment to do this, and I think the high representative will address meetings that are shortly going to be held next week in furtherance of our common goals here.

We are not going to sit idly by while Russian elements fan the flames of instability, instead of fulfilling the commitments that we made. Look, we came together, and we came together in a real spirit of trying to de-escalate. And we weren’t playing a game. We laid down some very specific steps that could be taken, and immediately, the Government of Ukraine, in good faith, undertook to implement those steps, including removing barricades from the Maidan in Kyiv, removing people from buildings, as well as reaching out to make clear to the people of Ukraine how decentralization could take place to give more power to those people in places that were disaffected. Regrettably, that was not met with reciprocity, and reciprocity is one of the things that we discussed very clearly in Geneva.

I must add also that it’s very hard to reconcile that Russia is now making the argument that Ukraine ought to reduce – not have an election or postpone an election because of the violence that’s taking place, but Russia is full, whole-hog behind having an election in Syria where there is far worse violence. Reconcile that one for us, please.

So the choice is really Russia’s. The United States, the EU, and our allies have made our choice very, very clear: We are going to stand together united not just in support of Ukraine, but united in support of de-escalating; united in support of a peaceful, diplomatic solution; united in recognition that, yes, there are historic and cultural and other ties between Russia and Ukraine, but the way to assert them is at the diplomatic negotiating table, not at the end of a gun. And we believe that we will also stand together in the effort to try to de-escalate this situation.
Next week, I will meet in London with our European counterparts in order to discuss what the appropriate next steps will be.

I also want to underscore that Lady Ashton and I applaud the commitment and the courage of the monitors of the OSCE. We’re deeply appreciative of the Organization for Security and Cooperation in Europe, who have put themselves in harm’s way, not on one side or the other, but on the side of a peaceful resolution, on the side of de-escalation. And they have tried to enforce compliance of the Russian-backed forces to ensure that there is a fair and reasonable approach to defining the future for all of the people of Ukraine.

We believe that the OSCE can now play an enhanced role, and right now there are efforts taking place. I talked yesterday with the OSCE chairman, President Burkhalter of Switzerland, and he is tomorrow going to be traveling to meet with President Putin. Today there were meetings. I talked yesterday also with the foreign minister of Germany, Frank Steinmeier. He today met with Foreign Minister Lavrov in Vienna, and there are further discussions taking place. I will talk with him in an hour or two from now. So there’s a lot of energy being expended to try to see if we can find a reasonable way forward here. And we support the efforts very much of this kind of diplomacy to help the Ukrainians restore law and order and improve the environment for free and fair elections on May 25th.

And before I invite our honored guest to offer her thoughts here, I just want to briefly mention a couple of other topics that we discussed very quickly this afternoon: South Sudan, Nigeria, and Iran.

First on South Sudan, the cessation of hostilities agreement that was signed in January by the South Sudanese Government and the opposition has obviously not been upheld. And the recent attacks by the South Sudanese Government and the anti-government forces, both of them, are absolutely unacceptable, and the United States condemns them in the strongest terms.

I talked this morning with Prime Minister Hailemariam of Ethiopia, and he has been directly in touch with Riek Machar, who tells him that he will come to a meeting though they’re working on the precise date and hope to have something to announce shortly. He has also talked to President Kiir, and President Kiir has, in fact, committed absolutely to be there and to come. And we’re very hopeful that that can be the beginning of a dialogue, and we will have participants there to assist in that process.

As President Obama has made clear, however, we will hold accountable those who have stood in the way of a peace plan. And I’ve said as much directly to President Kiir and to former Vice President Riek Machar when I was there this past weekend. So today, the United States will announce sanctions on two individuals responsible for violating the cessation of hostilities agreement, individuals responsible for perpetrating unthinkable violence against civilians. The first is the commander of the South Sudanese Government’s Presidential Guard Forces Marial Chanuong, and he has led violent attacks against civilians in Juba. And that will – further details will be announced later regarding that. The second, Peter Gadet, who led anti-government forces in the April 17th attack on Bentiu that left more than 200 civilians dead.

And we will do our utmost to prevent South Sudan from plunging back into the violence and despair that tore that country apart for so long. We will continue to stand with the people of South Sudan who call for peace and who recognize that the only way to resolve this conflict is through a political dialogue.

Secondly, on Nigeria: Today I spoke with President Goodluck Jonathan on behalf of President Obama and offered – on behalf of President Obama offered America’s support for Nigeria in their response to this crisis. Our embassy in Abuja is prepared to form a coordination cell that could provide expertise on intelligence, investigations, and hostage negotiations, and to help facilitate information-sharing and victim assistance. And President – the President was – President Goodluck Jonathan was very happy to receive this offer and ready to move on it immediately, and we are immediately engaging in order to implement this. We remain deeply concerned about the welfare of these young girls, and we want to provide whatever assistance is possible in order to help for their safe return to their families.

And finally, Lady Ashton and I discussed – I think you see the breadth of the things that we’re talking about. You get a sense of the tremendous cooperation between the EU and the United States, and particularly between Cathy Ashton and myself, for which we are very, very grateful. And we are extremely grateful for her stewardship of the important negotiations that are taking place with Iran on the nuclear program, on a comprehensive – on the search for a comprehensive solution to the challenge of that program.

We – Lady Ashton and our political directors will meet again in Vienna next week. And as we try to seize this diplomatic moment and make our allies and ourselves safer, Iran obviously has to make some very tough decisions. We remain firm in our goals. They don’t vary. Iran must not obtain a nuclear weapon, and it must ensure it has a peaceful nuclear program. And as I’ve said many times, we continue to believe that no deal is better than a bad deal.

Let me close by extending to Lady Ashton early greetings for Europe Day, which falls this Friday. It’s a holiday that recalls and renews the EU’s vision for a united, peaceful, stable, and democratic Europe, and the United States will stand side by side with Europe as it strives to live up to that vision and to those high ideals. Lady Ashton, thanks for being with us.

HIGH REPRESENTATIVE ASHTON: Thank you. Thank you very much, Secretary Kerry, or John, as I would prefer. Thank you for your good wishes for Europe Day. I held a reception in New York last night, and it was my great pleasure to be able to see the Empire State Building lit up in the colors of the European Union of blue and yellow. It is a recognition of this incredibly important transatlantic partnership that every nation of the European Union values so highly, and for which I thank you, your predecessors, and all of your colleagues for the work that has gone on to develop it to the point where I think we are very much joined up in our thinking.
As you’ve said, we’ve talked about a range of issues. We talk a lot in between these meetings, so we cover a huge number of current concerns. And I will just pick up on the back of some of this news. You’ve said two or three of them, of which Ukraine is inevitably the highest on our agenda, and the latest news of the great concern that we have from the illegal actions by armed separatist groups is, of course, at the foremost of our attention. We want to see Russia join in in the call to see an immediate end to these actions, and that is very much, as you’ve said, in line with the discussions we had in Geneva, where we talked practically for seven hours. We talked about what this meant. There was no vagueness. There was absolute clarity in what we were trying to do – to try and find ways to begin the de-escalation. And we will continue, as the European Union, to engage fully in seeking a political solution and to stay fully behind what we said in Geneva and to find ways that we can see the implementation done by everyone.
We know, too, that Ukraine has the right to defend its territorial integrity. We understand the international obligations that it has, and we work closely with them. And as you have indicated, they have done a lot from the beginning of leaving Geneva at the end of that day to try and implement what was agreed.

I pay tribute, like you, to the OSCE, and I join the chief monitor of the special mission, who’s called upon all sides to exercise maximum restraint, to avoid bloodshed, and to solve differences peacefully. You all know that on the 28th of April we took the decision to extend the number of people subject to targeted sanctions for actions that undermine Ukraine’s territorial integrity, sovereignty, and independence. Any further steps that destabilize the situation in Ukraine would lead to additional and far-reaching consequences for our relations in a broad range of areas.

Like you, too, we are focused on the elections and the importance of free and fair presidential elections. This is a really important step in the stabilization of Ukraine. It’s about democracy. It’s an opportunity, too, for there to be a legitimate and broad debate on the future of Ukraine and to engage with people who do want to talk about how that future should be – peacefully working together, and to take this opportunity to be able to do that. We, of course, will continue as well with our assistance package, which, as you know, will bring in overall support of about 11 billion euros over time.

I want, as well, to mention the terrible escalation of violence in South Sudan and to pay tribute to your visit. I already know from our special representatives in the region and from people from the countries concerned that your visit was extremely timely and your efforts were very well recognized. So may I pay tribute to you for that, as well as many, many other things.
I’m worried that this country is on the brink of what could be a civil war, ethnically motivated. And the prospects of famine and the humanitarian disaster – they’re really looming large now, so we need to work together. We need to work to ensure that the leaders in South Sudan really do take the action that you’ve identified they need to. And when the meeting takes place on Friday, they really have got to now try and put aside personal differences and try and change the atmosphere and to try and prevent any further offenses and to respect the cessation of hostilities.

We’re actively considering the targeted sanctions that you’ve described. As you know, the Foreign Affairs Council, we’re meeting on Monday, and that’s the forum where I am president to try and look at all of these issues and see how we go forward. So we need to work very closely in good cooperation with you and with others and to make sure that we put as much energy as possible into trying to prevent what, as I said, could be a disaster.

Like you, our thoughts are with the parents of the Nigerian girls and with the girls themselves. These are the future of the country. They are teachers, dancers, politicians. They are scientists; they are mothers. They are women in the making, who have a right to play their full part in their society. And what has happened to them is devastating for all of us, and we must do, like you, everything possible to try and reunite them with their families and to prevent this ever, ever happening again.

But I want to end, if I might, by also reiterating my full support for everything that you have done in the Middle East. Your efforts are not, by any means, over yet. I know that. And I know that this has been a difficult time. But I do think that you have made tremendous progress and the European Union stands absolutely beside you as you continue your efforts and remains committed to supporting you in every way possible.

My final thought is on Iran. We will, of course, next week try and take this process forward. And we’re all interested in making sure that if we can get an agreement it’s the best agreement.

SECRETARY KERRY: Thank you, Cathy.

HIGH REPRESENTATIVE ASHTON: We always hug. There’s always a hug. (Laughter.)

MS. PSAKI: The first question will be from Andrea Mitchell of NBC News.

QUESTION: Thank you very much, Mr. Secretary, Lady Ashton. On Nigeria first, why has it taken so long to mobilize an American effort? We understand that President Jonathan today said he is welcoming the help, that there was no invitation before this, and if you understand that to mean that you can now act. But it will take a while to organize this cell in the Embassy. Why, given our extraordinary abilities with surveillance, with detection, did not the United States act sooner with other allies? It’s understood that some of these girls may have been taken across borders. There is an international issue. They are listed as a terror organization, Boko Haram, on the State Department list. It seems inconceivable to people around the world that we could not act sooner where lives are at stake. And how long now will it take to act?

And if I could ask you about Benghazi, because this is our first opportunity, sir. First of all, your response to Chairman Issa’s committee’s subpoena for you to appear, we understand that on May 21st, the date that you were ordered to appear, that you are supposed to be traveling, previously scheduled, in Mexico. Will you now organize another day to appear? How do you feel about being subpoenaed rather than being invited, as would have been the normal protocol? And what is your response to the committee’s charge that the State Department, under your watch as well, has dragged its feet on being forthcoming with all of the demands for documents?

And if I could ask Lady Ashton, finally, given the conversations between President Obama and Chancellor Merkel last week, can the international community really wait to see whether the sectoral sanctions should be imposed? It does seem as though Vladimir Putin and his supporters, these separatists, are not changing their policy and are not responding even to the damage that has been done, whatever it has been, to their economies.
Thank you all so very much.

SECRETARY KERRY: The last question --

QUESTION: Well, you can --

HIGH REPRESENTATIVE ASHTON: He’ll answer it as well.

SECRETARY KERRY: No, no, no. I want her to answer it. I thought it was for her.

QUESTION: Yes, for both, but --

SECRETARY KERRY: So – well, give me the last question again of the four questions I got on here.

QUESTION: Sorry. The last question is: Why wait to impose tougher sanctions given that Vladimir Putin has shown no sign of desisting despite the sanctions that have already been imposed? But I think first --

SECRETARY KERRY: Well --

QUESTION: -- Nigeria and Benghazi.

SECRETARY KERRY: All right, sure. Well, let me speak to Nigeria. First of all, we have been in touch from day one, and our Embassy has been engaged and we have been engaged. But the government had its own set of strategies, if you will, in the beginning. And you can offer and talk, but you can’t do if a government has its own sense of how it’s proceeding. I think now the complications that have arisen have convinced everybody that there needs to be a greater effort, and it will begin immediately. I mean literally immediately. We are in touch, our Embassy is in touch. We’ve been talking with AFRICOM, we’ve been talking with the various entities, and I think you’re going to see a very, very rapid response.

QUESTION: We have satellites, though, surveillance?

SECRETARY KERRY: I understand. Yeah, we do, but it depends where they are and what they’re looking at on any given day. And so there are options, and I can assure you – I think the White House will have more to say about what we are going to be doing, and I’ll let them speak for that. But the simple answer is we’re going to do everything in our power to able to be helpful. And I’m going to see the President in a little while this afternoon. I think the President may or may not have something to say about this in the near term.

And let’s just – the important thing is that we have put everything on the table. We’re going to send a team, and it’ll be a combined team ready to work. But you have to have a host country that’s ready to receive and work with you in any situation, and we’re prepared to work.
On the issue of Benghazi, I served 29 years in the United States Senate, 28-plus. And I was chairman of a major committee, and I don’t think I ever issued a subpoena to somebody that I hadn’t first invited to come and speak. I think this sort of speaks for itself, frankly.

We have had more than, I think, 50 briefings. There have been in the double digits of hearings. We’ve delivered over 25,000 documents. And the fact is that documents require a legal process to go through for examination of executive privilege or other kinds of – classified or other kinds of things that may or may not be in them. That’s just not – it doesn’t happen automatically. But I’ve guaranteed that we would cooperate in every single way. We have, and I will, and the Department will. That’s our obligation. And of course, we will. But I think everybody needs to take a hard look at – and sort of measure what’s been already put out there versus where this effort is going. And you see a very partisan response on the Hill with respect to it.
I also think there’s an issue of the requisite body figuring out who has jurisdiction over this, from what I understand. There are still some questions as to who is going to do what. So we’ll respond, because we have absolutely nothing to hide whatsoever, and I look forward to complying, whatever responsibilities we have.

QUESTION: Do you intend to --

SECRETARY KERRY: With respect to – I’ll comply with whatever responsibilities we have. And with respect to the question of tougher sanctions and sanctions, what we are doing is having a major impact. Nobody should doubt that. The bonds in Russia are already just above junk bonds in categorization, and they’ve had to postpone a number of sales of bonds. The economy is already on the downward decline. The IMF has already declared that it’s in recession. Their growth was going to be about 1.3 percent; it’s now prospected to be perhaps .1 or 2 percent, minimal, and we have only yet begun, if we have to. And I think there’s no question. But it is important for the United States and Europe to try to move together in this. We believe that. And so that requires a certain element of preparation, coordination. You have to do the right paperwork, the right examination. You have to pull your teams together. And we are proceeding, I think, in a very effective and authoritative way.

We’ve made it very clear – President Obama and Chancellor Merkel had a meeting the other day. And they said clearly that if there are interference or continued interference, if there is continued interference with respect to the election and election process, there will be more sanctions that this time will start to bite into the sectors of the economy. And those become even more compelling than what has been put on the table to this point.

But obviously, when you’re trying to keep a door open to be able to find some kind of a diplomatic solution, when the other party says they’re willing to come to the table and actually engage in that discussion, it seems to me reasonable to try to do that. And I think most people in most places want a responsible government, not to escalate to the point of creating an inevitable confrontation, but rather to find out if there’s a way to be able to find that diplomatic solution. That’s what diplomacy is about. There’s no question about our ability, when we want to, to be able to put sanctions in place that are even more biting than what we have today. But you have to ask yourself if the price has been (inaudible) ahead of time, whether or not that invites something further that you don’t want to have happen.

So there’s a delicate mix here, and I think President Obama has calibrated this extremely effectively. It’s having a biting effect, and we will continue to proceed in unity with our European allies to do what we think has the greatest impact and the most effect.

HIGH REPRESENTATIVE ASHTON: I mean, I have nothing much more to add, except to say that from the perspective of what the European Union is doing, it is this desire to see a way to find a method of de-escalation. And that was what Geneva was about. It’s why we put on hold measures that we were considering, because that’s, as you said, is what you do. When we saw that we were not getting the results from Geneva, we pressed the start button again and we’ve continued with those measures. And we’re looking at all of the possibilities. It’s a mix of things that you want to do to try and create the circumstances that will lead to the most important thing, which is stopping the violence, for people to stop occupying the buildings, and to get the kind of discussion, debate, and democratic approach that will lead Ukraine into its future. And so you have to consider all of the ways in which that can be done.

I will be bringing together the 28 foreign ministers on Monday. They will be discussing all of the elements of that approach, working very closely with our colleagues in the United States, in order to see how we can best do that. And it’s why countries like Germany, like others, obviously, engaging and talking as well as looking at what we might do as a coordinated effort, and I really hope that we’re successful in that.

MS. PSAKI: The next question will be from Gero Schliess from Deutsche Welle, and I’m sure I butchered that, but go ahead.

QUESTION: Gero Schliess, Gero Schliess, thank you. First part also on Ukraine: Some people have the impression that for the U.S. sanctions – or, let’s say, punishment or isolation of Mr. Putin is the most important goal. And I have a perception that Europe seems to be reluctant to pursue this policy. And my question to both of you is: We have (inaudible) that Putin is a problem, but in what respect could he be also part of a solution? And today, did you discuss the option of a neutral Ukraine that would possibly satisfy Putin and might be acceptable for the Western countries?

And the second part of my question goes – is about Syria. As Syrian delegation of – Syrian opposition is in D.C. to talk to the Secretary of State, Mr. Kerry, your Administration has granted the U.S. offices of Syrian National Coalition diplomatic status. Does this signal that the U.S. are getting more actively involved in the civil war, including providing the rebels with heavy weaponry?

And to you, Lady Ashton, would the European Union also grant diplomatic status to the Syrian National Coalition?

HIGH REPRESENTATIVE ASHTON: Should I start?

SECRETARY KERRY: Go ahead, please.

HIGH REPRESENTATIVE ASHTON: On Ukraine, it’s for the people of Ukraine to decide what Ukraine is and will be, and they will consider very carefully where they sit in the world. I’ve said whenever I visited Ukraine, when I met with the then-President Yanukovych and in more recent times, that it’s not about a competition between Europe and Russia for a nation, that Ukraine will want strong and good economic links with Russia. And we recognize that that’s important. This is never and never should be about this idea of a competition.

For us, it’s always about trying to find now the way forward, as I’ve already indicated, to find the formula that’s going to help to de-escalate the situation, to talk with everybody and to keep all the doors open while being very clear that the situation cannot continue as it is.
On Syria, I’ll answer very briefly, the European Union of itself does not do diplomatic relations with anyone. It’s individual member states who do that.

QUESTION: And may I ask, how far could Putin be part of a solution concerning the Ukraine crisis?

HIGH REPRESENTATIVE ASHTON: Well, President Putin is president of Russia, and Russia is playing a role at the moment. So the question for Russia is: If you take what I’ve just said about the fact that Ukraine as a nation needs to have a good relationship with all of its neighbors, then you need to start looking at how, from Russia’s perspective, they’re going to define that. And defining that for me is about strong economic links. Yes, there are strong historical links, and yes, there needs to be a way in which they can be peacefully co-existing side by side. And I hope that President Putin might consider that that is the way forward.

SECRETARY KERRY: With respect to your question on President Putin, there’s no observer of Russia, there is no one engaged in diplomacy today who doesn’t understand that President Putin is calling the shots in Russia, that a very narrow group of people around him are advising him in one way or the other. But President Putin is almost exclusively, if not exclusively calling the shots.

There is no specific effort by the United States of America to somehow single him out other than to respond to the fact that in his name, Russia has deployed its forces, engaged in direct activities involved first in Crimea, now in east and south of Ukraine, in ways that are destabilizing that country, and still has 40,000-plus or so troops lined up on the border in a place that it didn’t have them before they began to move into Crimea.

Now, what we are trying to do is not targeted on him because we have some personal thing or something about him. It’s because he’s making decisions that are adversely affecting the region and the rights of the people of Ukraine to choose their future and to have their sovereignty respected. We have only one interest in this. That is the stability and respect for Ukraine, its integrity and its sovereignty, and the opportunity of the people of Ukraine to choose their future. That’s our interest. And we are not seeking alignment; we’re not seeking anything except this universal value that is respected around the world for the right of people to not be bludgeoned at the butt of a gun, or with military invasion, to be told what to do.

Now, we believe that it’s appropriate for us to respond in response to the legitimate demands of a government that was voted on even by the former supporters of President Yanukovych, who deserted the country of his own free will, and made a decision not to live up to the agreement that he signed back in February. And the parliament, with his own party’s support, voted him out and provided for an interim government and called for elections. Now, what could be more sensible than to allow this country under siege to be able to have an election where they give legitimacy to a new government by having all of the people be able to vote? That’s all people are looking for here. It seems to me that it shouldn’t be so complicated for Russia to be able to engage in that process.

And we respect that Russia has a long historical connection to Ukraine, and that Kyiv is the home – the birthplace of Russian religion, and that wars of liberation have been fought on that territory. And we understand the connection and the strong feelings about protection of people who – Russian-speaking and so forth. We’re not – nobody’s arguing against that, though. The fact is that the interim government of Ukraine is prepared to respect the Russian language, prepared to respect the greater autonomy for people in that region, to give them – frankly, the people – the Government of Ukraine has offered to give the people in south and east Ukraine more power over their own lives on an everyday basis than Russia gives any individual state or province in Russia. That’s a fact.

And so the answer is that what we think is important here is that the rights of the people be respected. And Lady Ashton’s correct: They have to choose their future. But they have said they are not seeking alignment. They’ve said they’re not looking for NATO membership. And NATO and those of us who are members have said we’re prepared to respect the choice of the interim government and whatever future government of Ukraine there is.

Final comment: We have said again and again to the Russians – and I hope they hear it again today – we are not seeking for a Ukraine that belongs to some other part of the world, but only – we want one that just belongs to Ukraine. And we’re not seeking one that is a pawn between East and West. We’d like Ukraine to be a bridge between East and West. And we certainly agree with President Putin’s vision that we could have an economic arrangement that goes from Vladivostok to Lisbon that involves everybody in a major market where everybody benefits.

So there’s more to talk about than unfortunately some of the heated rhetoric has given people a sense of. And our hope is that – that’s why we pursue these discussions, is to see if we can’t find a way to make those interests meet the moment and find a way forward that de-escalates this confrontation.

MS. PSAKI: Thanks, everyone.

SECRETARY KERRY: Oh, and Syria. I didn’t answer Syria. On Syria, we have not recognized the SOC. We’ve given them diplomatic status to be able to come here, but because we have previously said that they are the legitimate representative. But we have not moved to create a diplomatic – to recognize them or create a diplomatic situation. But we’re hopeful that, again, there also, we can find a way forward that deals with this extraordinary violence that is literally destroying the country of Syria. And our hope is that we could have a reasonable way forward to do that. Thank you. Thank you all.


U.S. STATE DEPARTMENT REMARKS NUCLEAR DISARMAMENT AND SECURITY NPT CLUSTER 1

FROM:  U.S. STATE DEPARTMENT

NPT Cluster 1: Nuclear Disarmament and Security: U.S. Statement

Remarks
Christopher Buck, Deputy Chief of Mission, Delegation to the Conference on Disarmament Permanent Mission, Geneva
Third Meeting of the Preparatory Committee for the 2015 Nuclear Non-Proliferation Treaty Review Conference
United Nations, New York City
May 2, 2014


(As Delivered)

Mr. Chairman,

I am pleased to provide an update on ongoing U.S. activities in fulfillment of our obligations and commitments under Article VI of the Nuclear Non-Proliferation Treaty (NPT) and the 2010 NPT Action Plan. In this context, I highlight the extensive report that the United States has submitted to this Preparatory Committee meeting, consistent with Actions 5, 20, and 21 of the 2010 NPT Action Plan.

U.S. policy is to achieve the peace and security of a world without nuclear weapons. This remains a central element of President Obama’s nuclear agenda, and we are working to create conditions that can enable its eventual achievement by pursuing a multifaceted, step-by-step approach incorporating national, bilateral, and multilateral actions.

It is because we understand the consequences of the use of nuclear weapons that the United States continues to devote considerable resources in a decades-long effort to reduce and ultimately eliminate nuclear weapons. There is no “quick fix” to achieving nuclear disarmament. There is no path other than the hard, daily work of verifiable step-by-step disarmament to which we remain resolutely committed.

In line with our support for the NPT, in 2010 the United States changed our nuclear posture to further reduce the number and role of nuclear weapons in our national security strategy and emphasize the interest of all nations in extending the 69-year record of non-use of nuclear weapons. The President also made it clear that the United States will not develop new nuclear warheads nor will we pursue new military missions for nuclear weapons.

This important shift in U.S. nuclear posture has taken place against the backdrop of dramatic and ongoing reductions in our nuclear arsenal. In fact, when the NPT entered into force in 1970, the United States had a nuclear stockpile of over 26,000 nuclear weapons. As Under Secretary Gottemoeller announced on Tuesday, the U.S. nuclear stockpile now has been reduced to 4,804 warheads, which reflects an 85% decrease from its Cold War peak. During this period, the United States reduced its non-strategic nuclear warheads by 90 percent. To lend a better sense of the scale of this ongoing activity in the post-Cold War period, between 1994 and 2013, the United States dismantled 9,952 nuclear warheads.

Moreover, this effort continues as we fulfill our obligations under the New Strategic Arms Reduction Treaty (New START) between the United States and Russia, now in its fourth year of implementation. When the Treaty limits are reached in 2018, the strategic forces of the United States and Russia will be capped at 1,550 deployed strategic warheads, their lowest level since the 1950s.

Contrary to the view expressed by some in this hall, we do not regard the achievement of nuclear disarmament as simply a rhetorical goal. It is one the United States is working on and pursuing every day.

And this work is not done. As outlined by President Obama in Berlin in June 2013, the United States remains open to negotiate further reductions with Russia in all categories of nuclear weapons – including strategic and non-strategic nuclear weapons.

We are also developing effective verification methodologies and processes that will be essential as we move toward increasingly smaller nuclear arsenals. Our experience with verified bilateral nuclear disarmament provides valuable experience and useful tools for multilateral nuclear disarmament approaches in the future. To that end, we are working closely with all NPT nuclear weapon states (or “P5”) to lay the foundation for future arms control agreements with participants beyond Russia and the United States.

Within the P5 process we have institutionalized regular dialogue on nuclear weapons-related issues. China hosted a fifth P5 Conference in Beijing on April 14 and 15, and the United Kingdom has agreed to host a sixth conference next year. Through these high-level conferences and frequent expert-level meetings, the P5 were able to reach consensus on a framework for reporting to this PrepCom in accordance with their commitments in the Action Plan. P5 CTBT experts have held productive discussions on ways they can collaborate in strengthening the CTBT monitoring regime. And the P5 Working Group on Nuclear Terms and Definitions, chaired by China, has made progress on the development of a P5 nuclear terms glossary.

The significance of this work should not be underestimated. P5 engagement is a long-term investment to strengthen and advance the NPT, build trust and create a stronger foundation to achieve the Treaty’s disarmament and nonproliferation goals. In addition, the United States and the United Kingdom are conducting a joint project to further develop verification procedures and technologies, which we will brief today at 1:15 p.m. in the North Lawn Building, Conference Room 5.

Turning to the broader multilateral context, the United States supports the immediate commencement of negotiations on a Fissile Material Cutoff Treaty (FMCT), which is the next logical and necessary step toward achieving our shared disarmament goals. A verifiable ban on the production of fissile material for use in nuclear weapons is necessary if we are to create conditions for a world without nuclear weapons. All states can contribute to achieving this goal. We are disappointed that the Conference on Disarmament (CD) has been unable to initiate negotiations on an FMCT. Even as we continue our efforts in the CD, the United States is actively engaged in the meeting of the FMCT Group of Governmental Experts (GGE), which can usefully complement efforts to promote negotiations of an FMCT in the CD.

In another important multilateral effort, the ratification and entry into force of the Comprehensive Nuclear-Test-Ban Treaty (CTBT) remains a top priority for the U.S. Administration. Our active involvement in all activities of the CTBT Organization’s Preparatory Commission clearly demonstrates our ongoing commitment to the Treaty and the vital importance the United States attaches to completing the verification regime. The United States recognizes that the voluntary adherence to unilateral nuclear testing moratoria is no substitute for a legally binding prohibition against the conduct of such explosions. Entry into force of the CTBT is in the security interests of every nation. All States have an important role to play in providing the necessary resources to complete the Treaty’s verification regime and maximize the capabilities of the Provisional Technical Secretariat.

Mr. Chairman,

The United States recognizes the importance of security assurances in the context of the NPT. Accordingly, the United States updated and strengthened its long-standing negative security assurance policy in the context of the U.S. Nuclear Posture Review published in April 2010. The United States declared that it will not use or threaten to use nuclear weapons against non-nuclear weapon States that are party to the NPT and in compliance with their nuclear nonproliferation obligations. It was also made clear that the United States would only consider the use of nuclear weapons in extreme circumstances to defend the vital interests of the United States or our allies and partners.

The United States also supports well-crafted nuclear-weapon-free zones (NWFZs) that are vigorously enforced and developed in accordance with the guidelines adopted by the United Nations Disarmament Commission. We are a Party to both Protocols of the Treaty of Tlatelolco and in recent years the United States has worked toward extending legally binding negative security assurances by submitting for ratification the protocols to the African and South Pacific nuclear-weapon-free zones. We are pleased to note that the United States and other NPT nuclear weapon states will soon sign the Protocol to the Central Asian Nuclear Weapon Free Zone Treaty. The nuclear weapon states are also engaging ASEAN to resolve any remaining differences so that we can sign the revised Protocol to the Southeast Asia nuclear-weapon-free zone. These actions are a priority for us.

Mr. Chairman,

The United States is committed to achieving a world without nuclear weapons, and we are dedicated to working with all NPT States Parties to make that goal a reality. The pursuit of our shared goal will require patience and persistence from all of us. But we are confident in our purpose, and strengthened in both our methods and morale by the tremendous progress we have made thus far.

Thank you, Mr. Chairman.

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