WHITE HOUSE STATEMENT ON NEW IMF PROGRAM FOR UKRAINE

FROM:  THE WHITE HOUSE
March 11, 2015
Statement by the Press Secretary on Approval of a New IMF Program for Ukraine

We welcome today’s approval by the IMF board of a new four-year $17.5 billion Extended Fund Facility (EFF) for Ukraine.  The EFF, which is underpinned by an ambitious series of economic reforms, underscores both the commitment of the Ukrainian government and central bank to take the steps needed to lay a foundation for robust growth, and the commitment of the international community to provide financing to help stabilize Ukraine’s economy as it implements these reforms.  The United States is working alongside international partners to provide Ukraine with the financial support it needs as it continues to take steps that will transform the Ukrainian economy and strengthen its democracy.

NSA ADVISOR SUSAN RICE'S ADDRESS AT CENTER FOR A NEW AMERICAN SECURITY CONFERENCE

FROM:  THE WHITE HOUSE 

Remarks by National Security Advisor Susan E. Rice Keynote Address at the Center for a New American Security Annual Conference

Remarks by National Security Advisor Susan E. Rice
“The Strength of American Leadership, the Power of Collective Action”
Keynote Address at the Center for a New American Security Annual Conference
Washington, DC
As Prepared for Delivery

Thank you so much Richard for that kind welcome.  And, to my good friends and former colleagues— Michele Flournoy and Kurt Campbell— I can’t help but note how well-rested you both look.  I’m only a little bitter.  Still, I want to thank you for your stellar service to our country both from inside government and now, again, as leading thinkers on national security.

CNAS, which you founded, does a remarkable job of preparing our next generation of national security leaders.  That work is critical, because our nation needs bright, dedicated young women and men who care deeply about our world.  We need a diverse pipeline of talent ready and eager to carry forward the mantle of American leadership.  So, thank you all. 

As President Obama told West Point’s graduating class two weeks ago, the question is not whether America will lead the world in the 21st century, but how America will lead.  No other nation can match the enduring foundations of our strength.  Our military has no peer.  Our formidable economy is growing.  We are more energy independent each year.  Our vibrant and diverse population is demographically strong and productive.  We attract hopeful immigrants from all over the world.  Our unrivaled global network of alliances and partnerships makes us the one nation to which the world turns when challenges arise.  So, American leadership is and will remain central to shaping a world that is freer, more secure, more just and more prosperous.

At West Point, President Obama outlined how America will lead in a world that is more complex and more interdependent than ever before.  As we move out of a period dominated by the wars in Iraq and Afghanistan, we will lead by drawing on every element of our national power.  That power starts with our unparalleled military might, used wisely and when necessary to defend America’s core interests – the security of our citizens, our economy, and our allies.  We will lead by strengthening effective partnerships to counter an evolving terrorist threat.  We will lead by rallying coalitions and marshaling the resources of our partners to address regional and global challenges.  And, we will lead by standing firm in defense of human dignity and equality, while steering the course of history toward greater justice and opportunity for all. 

Today, I’d like to focus on one pillar of that strategy—mobilizing coalitions.  Indeed, galvanizing the international community to address problems that no one nation can solve alone is the bread and butter of our global engagement.  And, in many ways, it’s both the hardest and the most important element of how America leads on the world stage.          

This concept is not new.  Collective action has long been the hallmark of effective American leadership.  The United Nations, NATO and our Asian alliances were all built on the foundation of American strength and American values.  American leadership established the Bretton Woods system and supported open markets, spurring a rapid rise in global living standards.  Nor is this approach the province of one political party.  It was President Reagan who negotiated the Montreal Protocol, hailed today as our most successful international environmental treaty.  President George H.W. Bush insisted on UN backing and assembled a broad coalition before sending American troops into the Gulf.  And, President Clinton led the campaign to enlarge NATO, opening Europe’s door to the very nations who, as Secretary Albright put it, “knocked the teeth out of totalitarianism in Europe.”  Our history is rich with successes won not as a lone nation, but as the leader of many. 

Now, our approach must meet the new demands of a complex and rapidly changing world.  The architecture that we built in the 20^th century must be re-energized to deal with the challenges of the 21^st.  With emerging powers, we must be able to collaborate where our interests converge but define our differences and defend our interests where they diverge. Our coalitions may be more fluid than in the past, but the basics haven’t changed.  When we spur collective action, we deliver outcomes that are more legitimate, more sustainable, and less costly.   

As global challenges arise, we turn first, always, to our traditional allies.  When Russia trampled long-established principles of sovereignty, territorial integrity, and international law with its illegal annexation of Crimea, the United States rallied the international community to isolate Russia and impose costs. With American leadership, the world condemned the seizure of Crimea through an overwhelming vote in the UN General Assembly.  We expelled Russia from the G8.  Last week, the G7 met for the first time in 17 years, and we continued to concert our approach to Ukraine and other pressing global challenges.  We’ve reinforced the unity of our NATO Alliance and bolstered our commitment to Article 5.  President Obama has pledged to invest an additional $1 billion to bolster the security of our Eastern European allies against threats or intimidation.  More U.S. Army and Air Force units are now deployed to Central and Eastern Europe, more American ships patrol the Black Sea, more American planes police the Baltic skies.  And, meanwhile, with the support of the international community, Ukrainians have the chance to write a new chapter in their history. 

By working in lockstep with the EU and other partners, we imposed sanctions that are biting the Russian economy.  The IMF, the World Bank and private sector estimates all suggest that $100-200 billion in capital will flow out of Russia this year, as investors move their money to more reliable markets.  Russia’s economy contracted in the first quarter, and the IMF has declared that the country is likely in recession.  Its credit now rates just above junk status.  Russia has lost standing, influence, and economic clout by the day.  With our closest partners—Europe, the G7 and other key allies —we continue to send a common message:  Russia must cease aggression against Ukraine, halt support for violent separatists in the East, seal the border, and recognize the newly elected Ukrainian government.  If Russia does not, it faces the very real prospect of greater pressure and significant additional sanctions.

The speed and unity of our response demonstrates the unique value of America’s leadership.  Unilateral sanctions would not have had the same bite as coordinated efforts with the EU.  American condemnations alone do not carry the same weight as the UN General Assembly.  Bilateral U.S. assistance to Ukraine could not match the roughly $15 billion IMF program.  And, for our Eastern allies, American security guarantees are most powerful when augmented by NATO’s security umbrella.  

The United States’ commitment to the security of our allies is sacrosanct and always backed by the full weight of our military might.  At the same time, we expect our partners to shoulder their share of the burden of our collective security.  Collective action doesn’t mean the United States puts skin in the game while others stand on the sidelines cheering.  Alliances are a two-way street, especially in hard times when alliances matter most. 

As we approach the NATO summit in Wales this September, we expect every ally to pull its full weight through increased investment in defense and upgrading our Alliance for the future.  Europe needs to take defense spending seriously and meet NATO’s benchmark—at least two percent of GDP—to keep our alliance strong and dynamic.  And, just as we reassure allies in the face of Russia’s actions, we must upgrade NATO’s ability to meet challenges to its south—including by reinforcing the President’s commitment to build the capacity of our counterterrorism partners. 

Likewise, our historic alliances in Asia continue to underwrite regional stability, as we move toward a more geographically distributed and operationally resilient defense posture.  In the face of North Korea’s increasing provocations, we’ve developed a tailored deterrence strategy and counter provocation plan with South Korea, and we are updating our defense cooperation guidelines with Japan for the first time in almost two decades.  We aim also to deepen trilateral security cooperation and interoperability, which President Obama made a central focus of his summit with the leaders of Japan and Korea in March and his trip to the region in April. 

Improved coordination is a necessity in the Middle East as well.  The 35,000 American service members stationed in the Gulf are a daily reminder of our commitment to the region and clear evidence that the United States remains ready to defend our core interests, whether it’s disrupting al-Qa’ida or preventing Iran from developing a nuclear weapon.  At the same time, we look to our partners, both individually and through the Gulf Cooperation Council, to cooperate on missile defense and develop other critical deterrence capabilities, including in the spheres of counter-piracy, maritime security, counterterrorism and counter-proliferation. 

America will always maintain our iron-clad commitment to the security of Israel, ensuring that Israel maintains its qualitative military edge and can protect its territory and people.  Equally, we consistently defend Israel’s legitimacy and security in the UN and other international fora.  In turn, we expect Israel to stand and be counted with the US and other partners on core matters of international law and principle, such as Ukraine.

Drawing on the strength of our alliances and the reach of our partnerships, the United States’ brings together countries in every region of the world to advance our shared security, expand global prosperity, and uphold our fundamental values.    

Let me start with our shared security.  To responsibly end our war in Afghanistan, President Obama first rallied our NATO allies and ISAF partners to contribute more troops to the coalition, surging resources and helping Afghan forces take charge of their nation’s security.  As we bring America’s combat mission to an end, we’ve enlisted our allies and partners to make enduring commitments to Afghanistan’s future—so that Afghan Security Forces continue to have the resources they need, and the Afghan people have our lasting support.

Partnership is also the cornerstone of our counter-terrorism strategy designed to meet a threat that is now more diffuse and decentralized.  Core al-Qa’ida is diminished, but its affiliates and off-shoots increasingly threaten the U.S. and our partners, as we are witnessing this week in Mosul.  The United States has been fast to provide necessary support for the people and government of Iraq under our Strategic Framework Agreement, and we are working together to roll back aggression and counter the threat that the Islamic State of Iraq and Levant poses to the people of the region.  Yet, as President Obama said at West Point, we must do more to strengthen our partners’ capacity to defeat the terrorist threat on their home turf by providing them the necessary training, equipment and support.  That is why the President is asking Congress for a new Counterterrorism Partnership Fund of up to $5 billion to assist nations on the frontlines of terrorism to fight al-Qa’ida, its affiliates, and groups that embrace its violent extremist ideology.   

To shrink terrorist safe-havens and end civil conflicts, which can be breeding grounds for transnational threats, we continue to lead the international community to strengthen the foundations of peace and security.  The U.S. is the largest supporter of UN peace operations, which both reduce the need to deploy our own armed forces and mitigate the risks that fragile and failed states pose.  When violence in South Sudan broke out in December, and the world’s youngest country reached the brink of all-out war, the United States led the Security Council to augment the UN mission in South Sudan and re-focus it on protecting civilians, while we recruited, trained and equipped additional peacekeepers.  Since December, nearly 2,000 more troops have surged into South Sudan, with approximately another 1,700 expected this month. 

In Syria, by contrast, we have seen the failure of the UN Security Council to act effectively, as Russia and China have four times used their vetoes to protect Assad.  With fighting escalating, terrorist groups associated with al-Qa’ida are gaining a greater foothold in Syria, the horrific humanitarian costs are mounting, and the stability of neighboring countries is threatened.  So, while Russia and Iran continue to prop up the regime, the United States is working with our partners through non-traditional channels to provide critical humanitarian assistance and, through the London-11 group, to ramp up our coordinated support for the moderate, vetted Syrian opposition— both political and military.      

Yet, even as we strongly oppose Russia on Syria and Ukraine, we continue to work together to eliminate Assad’s chemical weapons and to prevent Iran from obtaining a nuclear weapon.  We built an unprecedented sanctions regime to pressure Iran while keeping the door open to diplomacy.  As a consequence, working with the P5+1, we’ve halted Iran’s progress toward a nuclear weapon and rolled it back in key respects.  Now, we are testing whether we can reach a comprehensive solution that resolves peacefully the international community’s concerns about Iran’s nuclear program and bolsters our shared security.

In today’s world, the reality is: many transnational security challenges can only be addressed through collective action.  Take the threat of nuclear material in terrorist hands.  One unlocked door at any of the facilities worldwide that house weapons-usable material is a threat to everyone.  That’s why President Obama created the Nuclear Security Summit.  So far, 12 countries and 24 nuclear facilities have rid themselves of highly-enriched uranium and plutonium.  Dozens of nations have increased security at their nuclear storage sites, built counter-smuggling teams, or enhanced their nuclear security training.  Our nuclear security regime is stronger today, because we created a coalition to address the problem, and we’ll keep the momentum going when we host the fourth Nuclear Security Summit in 2016.

Consider, as well, infectious diseases like MERS, bird flu or Ebola, which present yet another type of threat to our security.  In 2012, 80 percent of countries failed to meet the World Health Organization’s deadline for preparedness against outbreaks.  The international community needed a shot in the arm.  So, the United States brought together partners from more than 30 countries and multiple international institutions to develop the Global Health Security Agenda, which we launched in February.  Our strategy, backed by concrete commitments, will move us towards a system that reports outbreaks in real time and ensures nations have the resources to contain localized problems before they become global pandemics.

As we confront the grave and growing threat of climate change, the United States is leading the world by example.  As National Security Advisor, part of my job is to focus on any threat that could breed conflict, migration, and natural disasters.  Climate change is just such a creeping national security crisis, and it is one of our top global priorities. 

Our new rule, announced last week, to reduce carbon pollution from power plants by 30 percent compared to 2005 levels is the most ambitious climate action ever taken in the U.S.  It’s the centerpiece of our broader climate action plan.  And, as we work toward the meeting in Paris next year to define a new global framework for tackling climate change, we’re challenging other major economies to step up too.  We’re working intensively with China, the world’s biggest emitter, to bend down their emissions curve as fast as possible.  We’ve built international coalitions to address short-lived climate pollutants like black carbon, HFCs and methane.  And, we’ve led in encouraging private investment in green infrastructure projects overseas, while reducing incentives for high-carbon energy investment.    

Our security also relies on defining and upholding rules that govern our shared spaces—rules that reject aggression, impede the ability of large nations to bully smaller ones, and establish ways to resolve conflicts peacefully.  A key element of our Asia Rebalance is collaborating with our partners to strengthen regional institutions and international norms.  That’s why we are working with ASEAN to advance a code of conduct for the South China Sea that would enhance maritime security, reinforce international law, and strengthen the regional rules of the road. 

Similarly, we are building partnerships to set standards of behavior to protect the open, reliable, and interoperable Internet, and to hold accountable those who engage in malicious cyber activity.  That’s why we’re working with our partners to expand international law enforcement cooperation and ensure that emerging norms, including the protection of intellectual property and civilian infrastructure, are respected in cyberspace.   For example, last week, working with 10 countries and numerous private sector partners, we successfully disrupted a “botnet” that had been used to steal hundreds of millions of dollars and filed criminal charges against its Russia-based administrator.  Last month, the Department of Justice indicted five Chinese military officials for hacking our nation’s corporate computers, making it clear there’s no room for government-sponsored theft in cyberspace for commercial gain.  We are working with our allies through efforts like the Freedom On-Line Coalition and the Internet Governance Forum to preserve the open Internet as driver for human rights and economic prosperity.

This brings me to the second key reason we mobilize collective action—to expand our shared prosperity.  In 2009, facing the biggest financial crisis since the Great Depression, President Obama led to establish the G20 as the premier forum for international economic cooperation.  We needed more voices at the table, writing the rules for the global economy and committing to dramatic measures to restore growth.  Our efforts included mobilizing more resources for the IMF and World Bank to support the most vulnerable countries.  And, thanks to a broad and concerted international effort, the global economy has turned the corner.

Last year, we played a key role in enabling the 157 members of the WTO to reach a landmark agreement that will modernize the entire international trading system.  In every region of the world, we’ve brought nations together to increase trade and develop high-standard agreements to further boost growth and job creation.  This is a key pillar of our rebalance to Asia, where we’re working with 12 economies, representing almost 40 percent of global GDP, to finalize an ambitious Trans-Pacific Partnership.  With the Trans-Atlantic Trade and Investment Partnership, we’re taking what is already the largest trading partnership in the world to a new level.  To increase trade both within Africa and between Africa and the United States, we will join with Congress to extend and update the African Growth and Opportunity Act before it expires next year. 

In regions brimming with economic potential, including Africa, Latin America and Southeast Asia, we’re supporting entrepreneurship and fostering private sector investment.  Our Power Africa initiative will double access to electricity across the continent through more than $15 billion in private sector commitments.  We’re assisting young people throughout Africa and South East Asia to develop their business and entrepreneurship skills, as well as their leadership. 

As we approach 2015, we’re pressing our partners to deliver on the Millennium Development Goals and to devise bold new goals that will guide the next phase of the fight against poverty.  Building on the extraordinary progress in many developing countries, our approach isn’t simply about pledging more money, it’s about bringing together resources and expertise from every sector to do more with what we have and to support models of economic growth that fuel new markets.  We’re building public-private partnerships, investing in academic breakthroughs, supporting non-profits that translate ideas into action, and creating stronger connections among them all.   

Take, for example, the progress we’ve made in agricultural development.  Back in 2009, at the G8 meeting in L’Aquila, President Obama made food security a global priority backed by billions of dollars in international commitments.  In 2012, the President launched the New Alliance for Food Security and Nutrition, which has now grown to ten African countries, more than 160 companies, and delivered more than $7 billion in responsible planned investments in African agriculture.  And through our Feed the Future partnerships, millions of smallholder farmers are planting better seeds, using better fertilizers, and seeing their incomes rise. 

Which leads me to the third key reason we mobilize collective action.  For, however much we might like to, we rarely can force nations to respect the rights of their citizens.  So we must catalyze the international community to uphold universal values, build broad coalitions to advance human rights, and impose costs on those who violate them.  

Human rights must be protected for everyone, especially traditionally marginalized communities such as ethnic or religious minorities, LGBT persons, migrant workers, and people with disabilities.  That’s why President Obama decided to join the UN Human Rights Council, so we could lead in reforming that flawed institution from within.  In fact, we have made it more effective.  Because of our efforts, the Council has spent far more time spotlighting abuses in Qadhafi’s Libya, Syria, Sudan, North Korea and Iran than demonizing Israel. 

At the same time, the Open Government Partnership initiated by President Obama in 2011, has grown from eight countries to 64, all working together to strengthen accountable and transparent governance.  Our Equal Futures Partnership unites two dozen countries in a commitment to take concrete steps to empower women in their societies both economically and politically.  And, as civil society comes under attack in more and more places, we’re bringing countries and peoples together to counter restrictions and strengthen protections for civil society.

Moreover, we’ve focused the global community on elevating that most basic aspect of human dignity—the health and well-being of the most vulnerable people.  We’re partnering with nations that invest in their health systems.  We’re working with NGOs to improve child and maternal health, end preventable diseases, and make progress towards a goal that was inconceivable just a decade ago—the world’s first AIDS-free generation. 

Across all these vital and far-reaching challenges, we continue to bring the resources of the United States and the reach of our partnerships to bear to forge a safer and more prosperous world.  Our goals are bold and won’t be realized overnight, but the essence of U.S. leadership, as always, remains our ambition, our determination, and our dauntless vision of the possible – the pursuit of a world free of nuclear weapons; a world where extreme poverty is no more; where people are free to choose their own leaders; and where no child’s potential is cut short by a circumstance of her birth. 

We’ve earned our unparalleled position in the world through decades of responsible leadership.  We affirm our exceptionalism by working tirelessly to strengthen the international system we helped build.  We affirm it daily with our painstaking efforts to marshal international support and rally nations behind our leadership.  We affirm it by taking strong action when we see rules and norms broken by those who try to game the system for their own gain.  As President Obama told those graduating cadets at West Point, “What makes us exceptional is not our ability to flout international norms and the rule of law; it’s our willingness to affirm them through our actions.” 

As we leave an era of American foreign policy dominated by war, we are in a much stronger position to shape a more just and secure peace.  In doing so, we will be vigilant against threats to our security, but we also recognize that we are stronger still when we mobilize the world on behalf of our common security and common humanity.  That is the proud tradition of American foreign policy, and that is what’s required to shape a new chapter of American leadership.

Thank you very much. 

PRESIDENT OBAMA'S STATEMENT ON UKRAINE

FROM:  THE WHITE HOUSE 

Statement by the Press Secretary on Ukraine

The United States welcomes the preliminary agreement between the Government of Ukraine and International Monetary Fund (IMF) staff on a loan program of $14-18 billion.  This represents a powerful sign of support from the international community for the Ukrainian government, as we help them stabilize and grow their economy, and move their democracy forward.  The agreement is expected to unlock roughly $27 billion in total support from the international community for Ukraine's people over the next two years, as the country implements historic reforms to address long-standing problems that have undermined Ukraine’s economic strength and prosperity.  It is important now for both the Government of Ukraine and the IMF to move expeditiously and complete the steps necessary to gain approval from the IMF Executive Board. 

Together with our allies and partners, President Obama will continue to build international support for the Ukrainian people at this critical time.  The IMF program will be a central component of a package of assistance to support Ukraine as it implements reforms and conducts free and fair elections that will allow all the Ukrainian people to determine the future of their country.  We are working alongside international partners, including the World Bank and the European Bank for Reconstruction and Development (EBRD), to disburse rapid additional assistance to complement the IMF program and ease Ukraine’s economic transition, particularly for the most vulnerable.  As part of this international effort, we are working with Congress to quickly provide a $1 billion loan guarantee and are offering technical and financial assistance to help Ukraine meet its most pressing needs.  We also remain committed to providing the IMF with the resources it needs – in partnership with Congress – to provide strong support to countries like Ukraine as well as reinforcing the Fund’s governance to reflect the global economy.

WHITE HOUSE FACT SHEET ON INTERNATIONAL SUPPORT FOR UKRAINE

FROM:  THE WHITE HOUSE 

FACT SHEET: International Support for Ukraine

President Obama has made clear that the United States will continue to support the Government of Ukraine, including economically.  We have been working closely with international partners to develop an assistance package that will provide rapid financial and technical assistance to help Ukraine restore economic stability and conduct free, fair, and inclusive new elections that will allow the Ukrainian people to continue to make democratic choices about their future.

The new Ukrainian government has inherited an economy with enormous potential but that is currently financially fragile and uncompetitive.  The Government of Ukraine has said publicly that it will work to meet these urgent challenges.  As the government implements important reforms, the United States will work with its bilateral and multilateral partners to ensure that Ukraine has sufficient financing to restore financial stability and return to growth.

The International Monetary Fund (IMF) is already engaging to help stabilize the Ukrainian economy.  We understand that an IMF mission is currently in Kyiv working with the Ukrainian government at their request.  The IMF will be at the front lines of an international package for Ukraine and is positioned to support  robust and market-oriented reforms needed to restore Ukraine to economic health, including via providing large-scale financing and technical support.  At the same time, the United States is working alongside international partners and the Government of Ukraine to assemble a package of assistance to complement and support an IMF program.  

As part of this international effort, the United States has developed a package of bilateral assistance focused on meeting Ukraine’s most pressing needs and helping Ukraine to enact the reforms needed to make its IMF program a success.  We are working with Congress to approve the 2010 IMF quota legislation, which  would support the IMF’s capacity to lend additional resources to Ukraine, while also helping to preserve continued U.S. leadership within this important institution.  We are ready to work with Congress and the Government of Ukraine to provide U.S. loan guarantees and other financial and technical assistance to address Ukraine’s four most urgent needs:

• Critical assistance with economic reforms, including by cushioning their impact on vulnerable Ukrainians:  The U.S. Administration is working with Congress and the Government of Ukraine to provide $1 billion in loan guarantees aimed at helping insulate vulnerable Ukrainians from the effects of reduced energy subsidies.  At the same time, the United States is moving quickly to provide technical expertise to help the National Bank of Ukraine and the Ministry of Finance address their most pressing challenges.  The United States is dispatching highly experienced technical advisors to help the Ukrainian financial authorities manage immediate market pressures.  The United States will also provide expertise to help Ukraine implement critical energy sector reforms. 
• Conducting free, fair, and inclusive elections:  The United States will provide technical assistance to train election observers, help bring electoral processes in line with international standards, and promote robust participation by civil society organizations and a free and independent media. 
• Combatting corruption and recovering stolen assets:  The United States is preparing to help the government respond to the clear demands of the Ukrainian people for more robust safeguards against corruption and additional efforts to recover assets stolen from the people of Ukraine.  The United States will support the government as it takes tangible steps to reduce corruption and increase transparency, including in areas such as e-government and public procurement.  The United States is deploying an interagency team of experts to Kyiv this week to begin to work with their Ukrainian counterparts to identify assets that may have been stolen, identify their current location, and assist in returning those assets to Ukraine.
• Withstanding politically motivated trade actions by Russia, including in the area of energy:  The United States is preparing to provide technical advice to the Ukrainian government on Ukraine’s WTO rights with respect to trade with Russia.  At the same time the United States is ready to provide assistance and financing to help Ukrainian businesses find new export markets and adjust to trade pressures and to enhance energy efficiency, helping to reduce dependence on imported gas.

G-7 STATEMENT ON UKRAINE

FROM:  THE WHITE HOUSE 
G-7 Leaders Statement

We, the leaders of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States and the President of the European Council and President of the European Commission, join together today to condemn the Russian Federation’s clear violation of the sovereignty and territorial integrity of Ukraine, in contravention of Russia’s obligations under the UN Charter and its 1997 basing agreement with Ukraine.  We call on Russia to address any ongoing security or human rights concerns that it has with Ukraine through direct negotiations, and/or via international observation or mediation under the auspices of the UN or the Organization for Security and Cooperation in Europe.  We stand ready to assist with these efforts.

We also call on all parties concerned to behave with the greatest extent of self-restraint and responsibility, and to decrease the tensions.

We note that Russia’s actions in Ukraine also contravene the principles and values on which the G-7 and the G-8 operate.  As such, we have decided for the time being to suspend our participation in activities associated with the preparation of the scheduled G-8 Summit in Sochi in June, until the environment comes back where the G-8 is able to have meaningful discussion.

We are united in supporting Ukraine’s sovereignty and territorial integrity, and its right to choose its own future.  We commit ourselves to support Ukraine in its efforts to restore unity, stability, and political and economic health to the country.  To that end, we will support Ukraine’s work with the International Monetary Fund to negotiate a new program and to implement needed reforms.  IMF support will be critical in unlocking additional assistance from the World Bank, other international financial institutions, the EU, and bilateral sources.

IMF REPRESENTATIVE KILLED IN KABUL BOMB ATTACK

FROM:  STATE DEPARTMENT 
Attack on Restaurant in Kabul
Press Statement
Jen Psaki
Department Spokesperson
Washington, DC
January 18, 2014

The United States joins leaders from around the world in condemning the terrorist attack in Kabul on January 17 against Afghans and those who are there to help them. We extend our deepest condolences to the families and friends of the victims of this senseless violence. We wish those who were injured a full and speedy recovery.

Among those murdered in this shameful act were Wabel Abdallah, the International Monetary Fund's Resident Representative, personnel from the United Nations, and civilians from around the world, including U.S. citizens, who had come to help build a peaceful, prosperous future for Afghanistan and its people. Several Afghan citizens were also tragically killed.

With this despicable, targeted attack on innocent civilians, terrorists continue to demonstrate blatant disregard for life and for the peaceful, prosperous future Afghans want and are working so hard to achieve.

The United States and our international partners remain steadfast in our commitment to the people of Afghanistan and support their efforts toward peace, reconciliation, and a secure, stable, and prosperous nation.

STATE DEPARTMENT REMARKS ON BUSINESS OPPORTUNITIES IN EUROPE

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

U.S.-UNITED ARAB EMIRATES RELATIONS

Map Credit:  U.S. State Department.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With United Arab Emirates
Bureau of Near Eastern Affairs
Fact Sheet
June 29, 2012
U.S.-UNITED ARAB EMIRATES RELATIONS
The United States has had friendly relations with the United Arab Emirates (U.A.E.) since 1971, following its formation and independence from the United Kingdom. The two countries established formal diplomatic relations in 1972. The U.A.E. plays an influential role in the Middle East, and is a key partner for the United States. The United States and the U.A.E. enjoy strong bilateral cooperation on a full range of issues including defense, non-proliferation, trade, law enforcement, energy policy, and cultural exchange. The two countries work together to promote peace and security, support economic growth, and improve educational opportunities in the region and around the world. U.A.E. ports host more U.S. Navy ships than any port outside the United States.

U.S. Assistance to the United Arab Emirates
The United States provides no foreign assistance to the U.A.E.

Bilateral Economic Relations
The prosperity of the U.A.E. is based in large part on the country's vast oil and gas reserves, and it is one of the United States’ single largest export markets in the Middle East and North Africa region. More than 750 U.S. firms operate in the country. Many U.S. companies, drawn by strong logistics and transport industries, use the U.A.E. as a regional headquarters from which to conduct business throughout the Middle East, North Africa, and parts of Asia. The U.S. and U.A.E. have entered into a Trade and Investment Framework Agreement, establishing a formal dialogue to promote increased trade and investment between the two countries.

The United Arab Emirates' Membership in International Organizations
The U.A.E. and the United States belong to a number of the same international organizations, including the United Nations, International Monetary Fund, World Bank, and World Trade Organization.

U.S.-MEXICO RELATIONS

Map Credit:  Wikimedia.
FROM:  U.S. STATE DEPARTMENT
U.S. Relations With Mexico
Bureau of Western Hemisphere Affairs
Fact Sheet
June 25, 2012
U.S. relations with Mexico are important and complex. The two countries share a 2,000-mile border, and relations between the two have a direct impact on the lives and livelihoods of millions of Americans--whether the issue is trade and economic reform, homeland security, drug control, migration, or the environment. The U.S. and Mexico, along with Canada, are partners in the North American Free Trade Agreement (NAFTA) and enjoy a broad and expanding trade relationship. Through the North American Leaders’ Summits, the United States, Canada, and Mexico cooperate to improve North American competitiveness, ensure the safety of their citizens, and promote clean energy and a healthy environment. The three nations also cooperate on hemispheric and global challenges, such as managing transborder infectious diseases and seeking greater integration to respond to challenges of transnational organized crime.

U.S. relations with Mexico are important and complex. U.S. relations with Mexico have a direct impact on the lives and livelihoods of millions of Americans – whether the issue is trade and economic reform, homeland security drug control, migration, or the environment. The scope of U.S.-Mexican relations is broad and goes beyond diplomatic and official contacts. It entails extensive commercial, cultural, and educational ties, with over 1.25 billion dollars worth of two-way trade and roughly one million legal border crossings each day. In addition, a million American citizens live in Mexico and approximately 10 million Americans visit Mexico every year. More than 18,000 companies with U.S. investment have operations in Mexico, and U.S. companies have invested $145 billion in Mexico since 2000.

Cooperation between the United States and Mexico along the 2,000-mile common border includes state and local problem-solving mechanisms; transportation planning; and institutions to address resource, environment and health issues. Presidents Obama and Calderon created a high level Executive Steering Committee for 21st Century Border Management in 2010 to spur advancements in creating a modern, secure, and efficient border. The multi-agency U.S.-Mexico Binational Group on Bridges and Border Crossings meets twice yearly to improve the efficiency of existing crossings and coordinate planning for new ones. The ten U.S. and Mexican border states are active participants in these meetings. Chaired by U.S. and Mexican consuls, Border Liaison Mechanisms operate in "sister city" pairs and have proven to be an effective means of dealing with a variety of local issues including border infrastructure, accidental violation of sovereignty by law enforcement officials, charges of mistreatment of foreign nationals, and cooperation in public health matters.

The United States and Mexico have a long history of cooperation on environmental and natural resource issues, particularly in the border area, where there are serious environmental problems caused by rapid population growth, urbanization, and industrialization. Cooperative activities between the U.S. and Mexico take place under a number of arrangements such as the International Boundary and Water Commission; the La Paz Agreement, the U.S.-Mexico Border 2012/2020 Program; the North American Development Bank and the Border Environment Cooperation Commission; the North American Commission for Environmental Cooperation; the Border Health Commission; and a variety of other agreements that address border health, wildlife and migratory birds, national parks, forests, and marine and atmospheric resources. The International Boundary and Water Commission, United States and Mexico, is an international organization responsible for managing a wide variety of water resource and boundary preservation issues.

The two countries also have cooperated on telecommunications services in the border area for more than 50 years. There are 39 bilateral agreements that govern shared use of the radio spectrum. When the United States completed the transition to digital television in 2009, a high percentage of Mexican border cities did the same, well ahead of Mexico’s deadline to complete the transition by 2021. Recent border agreements also cover mobile broadband services, including smartphones, and similar devices. The High Level Consultative Commission on Telecommunications continues to serve as the primary bilateral arena for both governments to promote growth in the sector and to ensure compatible services in the border area. The United States and Mexico have also signed an agreement to improve cross-border public security communications in the border area.

U.S. Cooperation with Mexico
The Merida Initiative is an unprecedented partnership between the United States and Mexico to fight organized crime and associated violence while furthering respect for human rights and the rule of law. Since 2010, our Merida Initiative cooperation has been organized under four strategic pillars. The first pillar aims to disrupt the capacity of organized crime to operate by capturing criminal groups and their leaders and reducing their revenues through better investigations, successful prosecutions, and shipment interdictions. The initiative’s second pillar focuses on enhancing the capacity of Mexico’s government and institutions to sustain the rule of law. The Merida Initiative’s third pillar aims to improve border management to facilitate legitimate trade and movement of people while thwarting the flow of drugs, arms, and cash. Finally, the fourth pillar seeks to build strong and resilient communities.

U.S. cooperation with Mexico under the Merida Initiative directly supports programs to help Mexico train its police forces in modern investigative techniques, promote a culture of lawfulness, and implement key justice reforms. Merida Initiative assistance also supports Mexico's efforts to reform its judicial sector and professionalize its police forces reflect its commitment to promote the rule of law and build strong law enforcement institutions to counter the threat posed by organized crime. The U.S. Congress has appropriated $1.9 billion for the Merida Initiative since it began.

U.S. Agency for International Development (USAID) programs support Mexican efforts to address key challenges to improving citizen security and well-being, with program approaches specifically geared to the U.S.-Mexico relationship. Programs under the Merida Initiative develop and test models to mitigate the community-level impact of crime and violence, and support Mexico’s implementation of criminal justice constitutional reforms that protect citizens’ rights. Additional USAID programs support Mexico’s commitment to reducing greenhouse gas emissions and to enhancing economic competitiveness to improve citizens’ lives.

Bilateral Economic Relations
Mexico is the United States’ second-largest export market (after Canada) and third-largest trading partner (after Canada and China). Mexico's exports rely heavily on supplying the U.S. market, but the country has also sought to diversify its export destinations. Nearly 80 percent of Mexico’s exports in 2011 went to the United States. In 2011, Mexico was the second-largest supplier of oil to the United States. Top U.S. exports to Mexico include mechanical machinery, electronic equipment, motor vehicle parts, mineral fuels and oils, and plastics. Trade matters are generally settled through direct negotiations between the two countries or addressed via World Trade Organization or NAFTA formal dispute settlement procedures.

Mexican investment in the United States has grown by over 35 percent the past five years. It is the seventh fastest growing investor country in the United States.

Mexico is a major recipient of remittances, sent mostly from Mexicans in the United States. Remittances are a major source of foreign currency, totaling over $22.73 billion in 2011. Most remittances are used for immediate consumption -- food, housing, health care, education -- but some collective remittances, sent from Mexican migrants in the U.S. to their community of origin, are used for shared projects and infrastructure improvements under Mexico’s 3 for 1 program that matches contributions with federal, state and local funds.

Mexico is making progress in its intellectual property rights enforcement efforts, although piracy and counterfeiting rates remain high. Mexico appeared on the Watch List in the 2012 Special 301 report. The U.S. continues to work with the Mexican Government to implement its commitment to improving intellectual property protection.

Mexico's Membership in International Organizations
Mexico is a strong supporter of the United Nations (UN) and Organization of American States (OAS) systems, and hosted the G-20 Leaders’ Summit in June 2012. Mexico and the United States belong to a number of the same international organizations, including the UN, OAS, Asia-Pacific Economic Cooperation (APEC) forum, G-20, Organization for Economic Cooperation and Development (OECD), International Monetary Fund (IMF), World Bank (WB), and World Trade Organization (WTO). In January 2012, Mexico became a member of the Wassenaar Arrangement, a multilateral export control regime for conventional arms and dual-use goods.