Wednesday, January 8, 2014

EXPORT-IMPORT BANK SAYS U.S. EXPORTS TOTALED $2.3 TRILLION OVER LAST 12 MONTHS

FROM:  EXPORT-IMPORT BANK 
U.S. Exports Reach a Record $195 Billion in November

Ex-Im Bank Continues to Support U.S. Jobs by Financing U.S. Exports

Washington, D.C. – The United States exported a record $194.9 billion in goods and services in November 2013, according to data released today by the Bureau of Economic Analysis (BEA) of the U.S. Commerce Department.

“Once again, American entrepreneurs are proving why exports are so critical to our economic growth.” said Export-Import Bank Chairman and President Fred P. Hochberg. “Today’s numbers showcase the importance of exports to the U.S. economy and how Ex-Im Bank plays a critical role in supporting American businesses overseas. We provide critical financing to increase sales and create jobs.”

November’s figure is considerably larger than the previous high recorded in October, which was revised upward this month to $193.1 billion.

Exports of goods and services over the last 12 months totaled $2.3 trillion, which is 43.7 percent above the level of exports in 2009. Over the last twelve months, exports have been growing at an annualized rate of 9.7 percent when compared to 2009.

During the same time period among the major export markets (i.e., markets with at least $6 billion in annual imports of U.S. goods), the countries with the largest annualized increase in U.S. goods purchases, when compared to 2009, were Panama (27.3 percent), Russia (21.3 percent), Hong Kong (20.1 percent), United Arab Emirates (20.0 percent), Peru (19.9 percent), Chile (18.7 percent), Colombia (18.6 percent), Argentina (16.7 percent), Ecuador (16.6 percent), and Indonesia (15.4 percent).

Tuesday, January 7, 2014

EXPERIMENTAL STREAM FACILITIES-DESIGN AND RESEARCH

COMPANY TO PAY $30 MILLION PENALTY TO RESOLVE CHARGES OF FRAUD AGAINST EXECUTIVES

FROM: JUSTICE DEPARTMENT 
Tuesday, January 7, 2014
Medical Device Manufacturer Charged With Major Securities Fraud Scheme

ArthroCare Corporation, a medical device manufacturer based in Austin, Texas, and that trades on the NASDAQ stock exchange, has agreed to pay a $30 million monetary penalty to resolve charges that senior executives at the company engaged in a securities fraud scheme that resulted in more than $400 million in shareholder losses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman of the Western District of Texas.

John Raffle and David Applegate, both former senior vice presidents of ArthroCare, previously pleaded guilty to conspiracy to commit securities and wire fraud in connection with the fraud scheme.   ArthroCare’s former chief executive officer, Michael Baker, and chief financial officer, Michael Gluk, are scheduled to stand trial on related charges on May 5, 2014.   Defendants are presumed innocent unless and until proven guilty at trial.

As part of the agreed-upon resolution, the department today filed a criminal information in the Western District of Texas charging ArthroCare with one count of conspiracy to commit securities fraud and wire fraud.   In addition to the monetary penalty, ArthroCare also agreed to cooperate with the department in its continuing investigation and prosecution of individuals responsible for the scheme and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect violations of the federal securities laws and federal laws relating to the company’s relationships and transactions with health care providers.   ArthroCare had previously entered into a multi-million dollar settlement agreement with shareholder victims.

In the deferred prosecution agreement, ArthroCare admitted that senior executives of the company inflated ArthroCare’s revenue by tens of millions of dollars; concealed the nature and financial significance of ArthroCare’s relationship with its largest distributor, DiscoCare Inc., and other distributors; and used a series of sham transactions to manipulate ArthroCare’s revenue and earnings as reported to investors.   ArthroCare admitted that its executives determined the type and amount of product to be shipped to distributors, notably DiscoCare, based on ArthroCare’s need to meet sales forecasts, rather than the distributors’ actual orders.

ArthroCare further admitted that these executives and others then caused ArthroCare to “park” millions of dollars worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter so the company could report these shipments as sales in its quarterly and annual filings and so the company would appear to have met or exceeded internal and external earnings forecasts.

According to the Information, between December 2005 and December 2008, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock.   On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share.  The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.

This case was investigated by the FBI’s Austin Field Office.  The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William Chang of the Criminal Division’s Fraud Section.   Significant assistance was provided by the SEC’s Fort Worth, Texas, Office.

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

FROM:  DEFENSE DEPARTMENT 
NAVY

Vigor Shipyards Inc., Seattle, Wash., is being awarded a not-to-exceed $33,077,000 undefinitized contract action to previously awarded contract (N00024-11-C-4401) for repair and alteration of the USS Momsen (DDG 82).  The USS Momsen will be undergoing a docking selected restricted availability which is the opportunity in the ship’s life cycle to primarily conduct repair and alteration to systems and hull not available when the ship is waterborne.  Work will be performed in Seattle, Wash., and is expected to be completed by October 2014.  Fiscal 2014 operations and maintenance, Navy funding in the amount of $22,298,229 will be obligated at time of award and will not expire at the end of the current fiscal year.  The Puget Sound Naval Shipyard and Intermediate Maintenance Facility, Bremerton, Wash., is the contracting activity.

Correction:  The contract announced Dec. 27, 2013 to  Lockheed Martin Corp., Mission Systems and Training, Manassas, Va., for $84,650,745 -- contract number should have read N00024-11-C-6294 not N00024-13-C-6272.

AIR FORCE

Aerospace Testing Alliance, Tullahoma, Tenn., has been awarded a $22,950,459 cost-plus-award-fee modification (P00321) on an existing contract (F40600-03-C-0001) to continue operations, maintenance, information management and support of Arnold Engineering Development Complex.  Work will be performed at Arnold Air Force Base, Tenn., and is expected to be completed by Sept. 30, 2014.  This modification does not obligate funds at time of award.  Air Force Test Center/PZZ, Arnold Air Force Base, Tenn., is the contracting activity.

ARMY

Law Company Inc., Wichita, Kan., was awarded a $20,078,900 firm-fixed-price contract to construct an unmanned aerial vehicle hanger.  Fiscal 2014 military construction funds in the amount of $20,078,900 were obligated at the time of the award.  Estimated completion date is July 7, 2015.  Bids were solicited via the Internet with seven received.  Work will be performed at Fort Riley, Kan.  Army Corps of Engineers, Kansas City, Mo., is the contracting activity (W912DQ-14-C-4003).

Bell Helicopter Textron, Inc, Hurst, Texas, was awarded an $18,556,810 modification (P00010) to contract W58RGZ-12-C-0030 to procure six additional months of contractor logistics support for Bell 407, Huey, Jet Ranger, and OH-58A&C helicopters.  Fiscal 2014 funds in the amount of $18,556,810 were obligated at the time of the award.  Estimated completion date is Aug. 8, 2014.  Work will be performed in Al Taji, Iraq and Piney Flats, Tenn.  Army Contracting Command, Redstone Arsenal, Ala., is the contracting activity.

Tetra Tech/Pond Joint Venture, Louisville, Ky., was awarded a $9,500,000 firm-fixed-price contract for architectural and engineering services for Army, Air Force, and other military and civil works primarily within the Great Lakes and Ohio River Division boundaries.  Funding and work performance location will be determined with each order.  Estimated completion date is Jan. 8, 2018.  One bid was solicited with one received.  Army Corps of Engineers, Louisville, Ky., is the contracting activity (W912QR-14-D-0004).

President Obama Speaks on Extending Emergency Unemployment Insurance

President Obama Speaks on Extending Emergency Unemployment Insurance

EDUCATION DEPARTMENT ANNOUNCES $1.9 MILLION GRANT TO NEWTOWN, PA

FROM:  DEPARTMENT OF EDUCATION 

U.S. Department of Education Awards Additional $1.9 Million Grant to Newtown, Connecticut, to Further Support Recovery Efforts

JANUARY 6, 2014

The U.S. Department of Education today announced it is awarding an additional $1.9 million to Newtown Public School District to help with ongoing recovery efforts following the tragic shootings at Sandy Hook Elementary School in December 2012. The grant is being made through the Department's Project School Emergency Response to Violence (SERV) program, which awards Immediate Services and Extended Services grants to school districts, colleges and universities that have experienced a significant traumatic event and need resources to respond, recover, and re-establish safe environments for students. Newtown received its first Project SERV award—a $1.3 million grant—in May 2013. The $1.9 million grant will continue to support the school district as it strives to restore a safe and healthy environment for teaching and learning in its schools.

"We will do whatever we can to continue assisting and supporting the healing and recovery of Newtown," U.S. Secretary of Education Arne Duncan said. "This additional grant will help students, teachers, families, school district and community move forward after such an unimaginable tragedy."

Newtown's first $1.3 million Project SERV grant financially supported both the actions taken by the district immediately following the shootings, as well as the district's comprehensive school-based behavioral and academic recovery program. Those services aimed to meet the needs of students, school staff, parents and family members affected by the tragedy and included support groups for parents, siblings, students and teachers; creative expression and wellness activities; counseling; training for educators and school personnel; and additional support staff.

The $1.9 million grant will go toward additional grief support services for siblings and those who lost their peers; classroom-based psycho-education and skill-building strategies; skill-based interventions for affected students identified as needing assistance for posttraumatic stress reactions, traumatic grief, separation anxiety and other behavioral and functional problems; tutoring for students demonstrating academic decline since the incident; additional security; additional nursing services; and more.

The Department's Office of Safe and Healthy Students administers the Project SERV grant program. It has awarded more than $34 million through 113 grants, including Newtown's additional grant, since the program began in 2001.

SECRETARY HAGEL HOSTS MEETING WITH KOREAN FOREIGN MINISTER BYUNG-SE

FROM:  DEFENSE DEPARTMENT 
Hagel Hosts South Korean Foreign Minister for Pentagon Meeting
American Forces Press Service

WASHINGTON, Jan. 7, 2014 – In a meeting with South Korea’s top diplomat at the Pentagon yesterday, Defense Secretary Chuck Hagel reaffirmed what Pentagon Press Secretary Navy Rear Adm. John Kirby called “the crucial role of the U.S.-South Korean alliance, which serves as a linchpin for peace and stability in the Asia-Pacific region.”

In a statement summarizing Hagel’s meeting with Foreign Minister Yun Byung-se, Kirby said Hagel and Yun reaffirmed that both sides must continue to make progress to develop and acquire critical military capabilities necessary to maintain and strengthen the combined U.S.-South Korean defense posture.
“The two discussed the importance of maintaining a robust combined defense of the Korean Peninsula as a strong deterrent against provocations from North Korea,” he added. Hagel emphasized the importance of the U.S.-South Korean alliance and confirmed the solid U.S. commitment to the defense of the South Korea, Kirby said.

Today, Defense Department officials announced the rotational deployment of the 1st Cavalry Division’s 1st Battalion, 12th Cavalry Regiment, from Fort Hood, Texas, to Camps Hovey and Stanley in South Korea.

This combined arms battalion, with about 800 soldiers and its own wheeled and tracked vehicles, will deploy Feb. 1 to conduct operations in support of U.S. Forces Korea and the U.S. 8th Army, officials said. “This action supports the United States' defense commitment to the Republic of Korea as specified by the mutual defense treaty and presidential agreements,” they added in a statement announcing the deployment.

The battalion will provide a trained and combat-ready force that will deploy with its equipment to South Korea, and the equipment will remain there for use by follow-on rotations, they added. The soldiers will return to Fort Hood upon completion of their nine-month rotation.

SPECIAL FORCES HELP CLEAR ENEMY POSITION IN AFGHANISTAN

FROM:  DEFENSE DEPARTMENT 


U.S. Special Forces soldiers fire a mortar round toward an identified enemy fighting position while helping Afghan counterparts clear Bahlozi village in the Maiwand district of Afghanistan's Kandahar province, Jan. 1, 2014. Forces conducted the clearance mission to disrupt insurgents who hide in the village. The U.S. Special Forces soldiers are assigned to Combined Joint Special Operations Task Force-Afghanistan. U.S. Army photo by Staff Sgt. Bertha A. Flores


An Afghan commando fires a rocket-propelled grenade from the roof of a compound toward an identified enemy fighting position while clearing Bahlozi village with the assistance of U.S. Special Forces soldiers in the Maiwand district of Afghanistan's Kandahar province, Jan. 1, 2014. U.S. Army photo by Staff Sgt. Bertha A. Flores

DEFENSE SECRETARY HAGEL PRAISES ESTONIA'S SUPPORT IN AFGHANISTAN

FROM:  U.S. DEFENSE DEPARTMENT 
Hagel Praises Estonia’s Commitment in Afghanistan
American Forces Press Service

WASHINGTON, Jan. 6, 2014 – Defense Secretary Chuck Hagel praised Estonia’s commitment in Afghanistan in a Pentagon meeting today with Estonian Defense Minister Urmas Reinsalu.

"Secretary Hagel praised Minister Reinsalu for Estonia's steadfast commitment to Afghanistan, to include its contributions to security in Helmand Province and its commitment to supporting stability in Afghanistan post-2014,” Assistant Pentagon Press Secretary Carl Woog said in a statement summarizing the meeting.
The two leaders discussed their shared interest in working together with other Baltic states to support regional cooperation, interoperability with allies, cyber defense and long-term defense modernization,” Woog said. “The secretary also commended Estonia for its demonstrated commitment to maintaining significant levels of efficient defense spending,” he added.

Hagel also reaffirmed the U.S. commitment to the alliance, and pledged to continue to participate in NATO exercises, Woog said, “noting the importance of leveraging the interoperability we've achieved over the last 20 years."

CHARGES SETTLED AGAINST THREE COMPANIES REGARDING PLASTIC BIODEGRADABILITY CLAIMS

FROM:  FEDERAL TRADE COMMISSION 

FTC Approves Final Orders Settling Charges that Three Companies Made Misleading and Unsubstantiated Biodegradability Claims for Their Plastic Products

Following a public comment period, the Federal Trade Commission has approved three final orders settling charges that Clear Choice Housewares, Inc.; Carnie Cap, Inc.; and MacNeill Engineering Company, doing business as CHAMP, violated the FTC Act by misrepresenting that plastic products they sell that are treated with additives are: 1) biodegradable, 2) biodegradable in a landfill, 3) biodegradable in a certain timeframe, or 4) scientifically shown to be biodegradable in a landfill, or that various scientific tests prove their biodegradability claims. The FTC also alleged that the companies lacked a reliable scientific basis to back up any of these claims.

Under the FTC’s orders, first announced in October, the companies are prohibited from making biodegradability claims unless the representations are true and supported by competent and reliable scientific evidence. The companies must have evidence that the entire plastic product will completely decompose into elements found in nature within one year after customary disposal (defined as disposal in a landfill, incinerator, or recycling facility) before making any unqualified biodegradable claim.

In order to make qualified claims, the companies must state the time required for complete biodegradation in a landfill or the time to degrade in a disposal environment near where consumers who buy the product live. Alternatively, the companies may state the rate and extent of degradation in a landfill or other disposal facility accompanied by an additional disclosure that the stated rate and extent do not mean that the product will continue to decompose or decompose completely.

TEXAS-BASED COMPANIES AGREE TO SETTLE CAA VIOLATIONS RELATED TO ILLEGAL IMPORT OF VEHICLES

FROM:   JUSTICE DEPARTMENT 
Monday, January 6, 2014
Dallas-Based Companies Agree to Pay Civil Penalty to Settle Clean Air Act Violations Stemming from Illegal Import of Vehicles

A Dallas-based group of companies and their owner must either stop importing vehicles or follow a comprehensive compliance plan to settle Clean Air Act (CAA) violations stemming from the alleged illegal import of over 24,167 highway motorcycles and recreational vehicles into the United States without proper documentation, the Department of Justice and the U.S. Environmental Protection Agency (EPA) announced.  The four parties are also required to pay a $120,000 civil penalty.

“Importers of foreign made vehicles and engines must comply with the same Clean Air Act requirements that apply to those selling domestic products,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “We will continue to vigorously enforce the law to ensure that imported vehicles and engines comply with U.S. laws so that American consumers get environmentally sound products and violators do not gain an unfair economic advantage.”

“Vehicles are one of the largest sources of pollution that significantly affect public health,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Holding importers accountable for meeting U.S. emissions standards is critical to protecting the air we breathe, and to protecting companies that play by the rules.”

Savoia, BMX Imports and BMX Trading, and their owner, Terry Zimmer, allegedly imported the vehicles from several foreign manufacturers into the United States through the Port of Long Beach, Calif.   The vehicles were then sold through the Internet and from a retail location in Dallas, Texas.

Today’s settlement requires that the companies either certify that they are no longer engaging in CAA-regulated activities or follow a comprehensive plan over the next five years that would include regular vehicle inspections, emissions testing, and other measures to ensure compliance at various stages of purchasing, importing, and selling vehicles.  In addition, the companies are required to export or destroy 115 of their current vehicles that have catalytic converters or carburetors that do not adhere to the certificate of conformity that they submitted to EPA.  The purpose of the certificate of conformity, required by the CAA, is to demonstrate that vehicles or engines meet applicable federal emission standards.

EPA discovered the alleged violations through inspections at Long Beach and other U.S. ports of entry, and through information provided by the company.   EPA’s investigation showed that approximately 11,000 of the imported vehicles were not covered by an EPA certificate of conformity, which means that EPA is unable to confirm that the emissions from these vehicles meet federal standards.  Other violations included approximately 23,000 vehicles sold without the required emissions warranty and approximately 500 vehicles that did not have proper emission control labels.

The CAA requires that all vehicles have certification, warranty and labeling prior to being imported or sold in the United States to demonstrate that they meet federal emission standards.  Engines operating without proper emissions controls can emit excess carbon monoxide, hydrocarbons and nitrogen oxides which can cause respiratory illnesses, aggravate asthma and contribute to the formation of ground level ozone or smog.

The consent decree, lodged today in the United States District Court for the Northern District of Texas, is subject to a 30-day public comment period and court approval.

RBS SECURITIES JAPAN LTD SENTENCED FOR MANIPULATION OF YEN LIBOR

FROM:  JUSTICE DEPARTMENT 

WASHINGTON — RBS Securities Japan Limited, a wholly owned subsidiary of The Royal Bank of Scotland plc (RBS) that engages in investment banking operations with its principal place of business in Tokyo, Japan, was sentenced today for its role in manipulating the Japanese Yen London Interbank Offered Rate (LIBOR), a leading benchmark used in financial products and transactions around the world.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

RBS Securities Japan was sentenced by U.S. District Judge Michael P. Shea in the District of Connecticut.  RBS Securities Japan pleaded guilty on April 12, 2013, to one count of wire fraud for its role in manipulating Yen LIBOR benchmark interest rates.  RBS Securities Japan signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $50 million fine, which the court accepted in imposing sentence.  In addition, RBS plc, the Edinburgh, Scotland-based parent company of RBS Securities Japan, entered into a deferred prosecution agreement (DPA) with the government requiring RBS plc to pay an additional $100 million penalty, to admit and accept responsibility for its misconduct as set forth in an extensive statement of facts and to continue cooperating with the Justice Department in its ongoing investigation.  The DPA reflects RBS plc’s cooperation in disclosing LIBOR misconduct within the financial institution and recognizes the significant remedial measures undertaken by new management to enhance internal controls.

Together with approximately $462 million in regulatory penalties and disgorgement – $325 million as a result of a Commodity Futures Trading Commission (CFTC) action and approximately $137 million as a result of a U.K. Financial Conduct Authority (FCA) action – the Justice Department’s criminal penalties bring the total amount of the resolution with RBS and RBS Securities Japan to approximately $612 million.

“Today’s sentencing of RBS is an important reminder of the significant consequences facing banks that deliberately manipulate financial benchmark rates, and it represents one of the numerous enforcement actions taken by the Justice Department in our ongoing LIBOR investigation” said Acting Assistant Attorney General Raman. “As a result of the department’s investigation, we have charged five individuals and secured admissions of criminal wrongdoing by four major financial institutions.  Our enforcement actions have had a lasting impact on the global banking system, and we intend to continue to vigorously investigate and prosecute the manipulation of this cornerstone benchmark rate.”

“By colluding to manipulate the Yen LIBOR benchmark interest rate, RBS Securities Japan reaped higher profits for itself at the expense of unknowing counterparties, and in the process undermined the integrity of a major benchmark rate used in financial transactions throughout the world,” said Deputy Assistant Attorney General Snyder.  “Today’s sentence, in conjunction with the department’s agreement with parent company RBS, demonstrates the Antitrust Division’s commitment to prosecuting these types of far-reaching and sophisticated conspiracies.”

“The manipulation of LIBOR impacts financial products the world over, and erodes the integrity of the financial markets,” said Assistant Director in Charge Parlave.  “Without a level playing field in our financial marketplace, banks and investors do not have a threshold to which they can measure their hard work.  I commend the Special Agents, forensic accountants and analysts, as well as the prosecutors, for the significant time and resources they committed to investigating this case.”

According to court documents, LIBOR is an average interest rate, calculated based upon submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks.  LIBOR serves as the primary benchmark for short-term interest rates globally, and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products.  The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.

LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London.  At the time relevant to the conduct in the criminal information, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year.  The LIBOR for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the Contributor Panel) selected by the BBA.

According to the plea agreement, at various times from at least 2006 through 2010, certain RBS Securities Japan Yen derivatives traders engaged in efforts to move LIBOR in a direction favorable to their trading positions, defrauding RBS counterparties who were unaware of the manipulation affecting financial products referencing Yen LIBOR.  The scheme included efforts to manipulate more than one hundred Yen LIBOR submissions in a manner favorable to RBS Securities Japan’s trading positions.  Certain RBS Securities Japan Yen derivatives traders, including a manager, engaged in this conduct in order to benefit their trading positions and thereby increase their profits and decrease their losses.

The prosecution of RBS Securities Japan is being handled by Deputy Chief Patrick Stokes and Trial Attorney Gary Winters of the Criminal Division’s Fraud Section, and New York Office Assistant Chief Elizabeth Prewitt and Trial Attorneys Eric Schleef and Richard Powers of the Antitrust Division.  Deputy Chiefs Daniel Braun and William Stellmach and Trial Attorney Alex Berlin of the Criminal Division’s Fraud Section, Trial Attorneys Daniel Tracer and Kristina Srica of the Antitrust Division, Jeremy Verlinda of the Antitrust Division’s Economic Analysis Group, Assistant U.S. Attorneys Eric Glover and Liam Brennan of the U.S. Attorney’s Office for the District of Connecticut, and the Criminal Division’s Office of International Affairs have also provided valuable assistance in this matter.  The investigation is being conducted by special agents, forensic accountants and intelligence analysts of the FBI’s Washington Field Office.

The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad.  The Justice Department acknowledges and expresses its deep appreciation for this assistance.  In particular, the CFTC’s Division of Enforcement referred this matter to the department and, along with the FCA, has played a major role in the investigation.  Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.  In particular, the Securities and Exchange Commission has played a significant role in the LIBOR investigation, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.

PRESIDENT OBAMA'S NOMINATIONS SENT TO THE SENATE

FROM:  THE WHITE HOUSE 

January 6, 2014
Presidential Nominations Sent to the Senate

NOMINATIONS SENT TO THE SENATE:

Henry J. Aaron, of the District of Columbia, to be a Member of the Social Security Advisory Board for a term expiring September 30, 2020.  (Reappointment)

Henry J. Aaron, of the District of Columbia, to be a Member of the Social Security Advisory Board for a term expiring September 30, 2014, vice Jeffrey Robert Brown, term expired.

Debo P. Adegbile, of New York, to be an Assistant Attorney General, vice Thomas E. Perez, resigned.

Cynthia H. Akuetteh, of the District of Columbia, a Career Member of the Senior Foreign Service, Class of Minister-Counselor, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Gabonese Republic, and to serve concurrently and without additional compensation as Ambassador Extraordinary and Plenipotentiary of the United States of America to the Democratic Republic of Sao Tome and Principe.

Larry Edward André, Jr., of Virginia, a Career Member of the Senior Foreign Service, Class of Counselor, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Islamic Republic of Mauritania.

Steven Joel Anthony, of Virginia, to be a Member of the Railroad Retirement Board for a term expiring August 28, 2018, vice Jerome F. Kever, term expired.

David J. Arroyo, of New York, to be a Member of the Board of Directors of the Corporation for Public Broadcasting for a term expiring January 31, 2016, vice Elizabeth Courtney, term expired.

Tamara Wenda Ashford, of Virginia, to be a Judge of the United States Tax Court for a term of fifteen years, vice Mary Ann Cohen, retired.

Leslie E. Bains, of New York, to be a Director of the Securities Investor Protection Corporation for a term expiring December 31, 2015, vice William S. Jasien, term expired.

Alfredo J. Balsera, of Florida, to be a Member of the United States Advisory Commission on Public Diplomacy for a term expiring July 1, 2014, vice Elizabeth F. Bagley, term expired.

Alfredo J. Balsera, of Florida, to be a Member of the United States Advisory Commission on Public Diplomacy for a term expiring July 1, 2017. (Reappointment)

Robert C. Barber, of Massachusetts, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Iceland.

Tommy Port Beaudreau, of Alaska, to be an Assistant Secretary of the Interior, vice Rhea S. Suh.

Colleen Bradley Bell, of California, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to Hungary.

David Michael Bennett, of North Carolina, to be a Governor of the United States Postal Service for a term expiring December 8, 2018, vice Thurgood Marshall, Jr., term expired.

Timothy M. Broas, of Maryland, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Kingdom of the Netherlands.

Thomas A. Burke, of Maryland, to be an Assistant Administrator of the Environmental Protection Agency, vice Paul T. Anastas, resigned.

Dwight L. Bush, Sr., of the District of Columbia, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Kingdom of Morocco.

Leslie Ragon Caldwell, of New York, to be an Assistant Attorney General, vice Lanny A. Breuer, resigned.

John P. Carlin, of New York, to be an Assistant Attorney General, vice Lisa O. Monaco, resigned.

Michael G. Carroll, of New York, to be Inspector General, United States Agency for International Development, vice Donald A. Gambatesa, resigned.

Brad R. Carson, of Oklahoma, to be Under Secretary of the Army, vice Joseph W. Westphal.

Arnold A. Chacon, of Virginia, a Career Member of the Senior Foreign Service, Class of Minister-Counselor, to be Director General of the Foreign Service, vice Linda Thomas-Greenfield, resigned.

IS DECISION-MAKING AS RATIONAL AS ECONOMIST THINK

FROM:  NATIONAL SCIENCE FOUNDATION 
Behavioral economist studies science of decision-making
Using brain scans, MacArthur Fellow examines people's expressed values and the choices they later make
January 6, 2014

When it comes to decision-making, traditional economics holds that people are rational and know what they want. Moreover, they will make their choices influenced by whatever constraints are upon them, for example, the amount of money they have or don't have.

Behavioral economist Colin Camerer has been challenging those assumptions for years, producing new theories, and with growing widespread acceptance. He and his colleagues believe that the old models don't always work when they involve the behavior of real people, and that other dynamics often are in play. He is using the brain to find them.

The National Science Foundation (NSF)-funded scientist is looking directly at brain activity to see whether, and how, certain portions of the brain correlate with the values people express, and the choices they later make.

The goal, eventually, is to identify activity in certain areas of the brain, by seeing where blood flow occurs, and then compare these brain data with the decisions they make.

"For example, if you ask people to rate blueberries and elderberries, and you see their brain voxels [portions of the brain] associated with subjective value are more active for blueberries, you can assume that they will later choose the blueberries," even if they verbally gave elderberries a higher rating, Camerer says. "It's almost like a brain polygraph, where you may be saying one thing, but your brain is saying another and is more predictive of what you ultimately will do."

Camerer, a professor of behavioral finance and economics at the California Institute of Technology, is a recent recipient of one of this year's prestigious MacArthur fellowships, a $625,000 no-strings-attached award, popularly known as a "genius" grant. These go to talented individuals who have shown extraordinary originality and dedication in their fields.

NSF has supported his work since 1985 with a total of $5.07 million on a number of research projects that involve behavioral economics and neuroeconomics, that is, using brain scans to understand economic decision-making, all within NSF's Directorate for Social, Behavioral & Economic Sciences.

"We are trying to get the correct psychology about human nature into the theory of economics," he says. "We need a theory that can explain both when people are acting rationally, and when they are not. We are trying to add in the missing elements."

This research is now possible because of magnetic resonance imaging (MRI) technology that allows scientists to measure brain activity. Camerer and others believe it can be especially valuable when asking people to perform economic tasks or strategic games, or rate products, such as foods.

The potential of such experiments could mean that economists, ultimately, will no longer have to rely purely on historical data, that is, how people have behaved in the past, or outdated statistical models that try to predict how individuals should respond. Rather, the new research will allow behavioral economists to look directly into the brain and make more accurate predictions about what people are going to do.

The science of decision-making aims to get a more accurate fix on how people feel about buying habits, taxes, consumer products, travel and leisure, with broad implications for productivity and competitiveness, labor relations and consumer spending.

"Most new products fail, despite marketing, advertising and testing and focus groups," he says. "Consumers are finicky. Companies put out a new flavor of cereal that does well in focus groups, but then it sits on a shelf and people don't buy it. So any method that helps predict actual sales could be useful."

In one of his NSF-supported projects, Camerer did, in fact, look at food choices. His team provided subjects with a 2.75-second glance of photos of each of 100 different foods while their scanning their brain activity in an MRI machine. Participants then rated each food on a numerical scale; later, they looked at different pairs of foods and had to choose between them.

"We use a system called neural decoding," Camerer explains. "If you took the brain and diced it into cubes, you'd get about 50,000 three-millimeter cubed pieces, called voxels. We look at blood flow into each voxel. In general, when neurons are receiving input, blood is flowing in there. The question we ask is: can we find the voxels in the brain that correlate most strongly with subjective value--the rating of the food--and what they later choose? Then, when we find these 100 voxels that represent 'value,' we average them and see how well they predict the choices."

So far, "we can predict at a rate of about 68 percent," he says, adding: "Obviously, we would like to get close to 100 percent."

To be sure, this is more a proof of principle for future applications, since "you can't drag the machine around," for marketing studies; also, it is expensive to use.

"In a way, fMRI is really the last resort," Camerer says. "But we are interested in the whole brain. We don't know where these 100 voxels are; they could be in sensory, memory or motor-control areas--there could be all kinds of valuation sprinkled in all parts of the brain. fMRI is the only method that can look at the entire brain. However, there are much simpler and more portable methods that would probably work almost as well, such as measuring skin conductance, facial muscles, or pupil dilation.

"If you are trying to predict particular things, you don't necessarily need to go to brain imaging," he adds. "What brain imaging and similar methods have in common is that people see images or activities on a computer screen and we measure how they react biologically."

-- Marlene Cimons, National Science Foundation
Investigators
Colin Camerer
Antonio Rangel
Related Institutions/Organizations
California Institute of Technology

Monday, January 6, 2014

1/6/13: White House Press Briefing

U.S. DEFENSE DEPARTMENT CONTRACTS FOR JANUARY 6, 2013

FROM:  DEFENSE DEPARTMENT 
CONTRACTS

DEFENSE LOGISTICS AGENCY

R.D. Buie Enterprises Inc.*, Boerne, Texas, has been awarded a maximum $51,294,723 modification (P00101) exercising the third option year on a two-year base contract (SPM8E6-10-D-0003) with three one-year option periods for a tailored logistics support contract to provide items under the general category of wood products for the East region.  This is a firm-fixed-price contract.  Location of performance is Texas with a Feb. 4, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Middle Atlantic Wholesale Lumber Inc.*, Baltimore, Md., has been awarded a maximum $51,294,723 modification (P00101) exercising the third option year on a two-year contract (SPM8E6-10-D-0004) with three one-year option periods for a tailored logistics support contract to provide items under the general category of wood products for the East region.  This is a firm-fixed-price contract.  Location of performance is Maryland with a Feb. 4, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

Sylvan Forest Products Inc.*, Portland, Ore., has been awarded a maximum $51,294,723 modification (P00101) exercising the third option year on a two-year contract (SPM8E6-10-D-0005) with three one-year option periods for a tailored logistics support contract to provide items under the general category of wood products for the East region.  This is a firm-fixed-price contract.  Location of performance is Oregon with a Feb. 4, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

S & S Forest Products LLC**, Boerne, Texas, has been awarded a maximum $51,294,723 modification (P00101) exercising the third option year on a two-year contract (SPM8E6-10-D-0006) with three one-year option periods for a tailored logistics support contract to provide items under the general category of wood products for the East region.  This is a firm-fixed-price contract.  Location of performance is Texas with a Feb. 4, 2015 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2015 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa.

NAVY

TTT-Cubed Inc.*, Fremont, Calif., is being awarded a $26,983,588 ceiling-priced, indefinite-delivery/indefinite-quantity contract for the procurement of hardware, repair, and modification services for the development, integration, and operational support of countermeasure and emitter threat simulator systems for the Airborne Threat Simulation Organization.  In addition, this contract provides for hardware, including one first article receiver-transmitter radar mini instantaneous frequency measurement (IFM) assembly; one first article integrated stabilized radio frequency source (ISRFS) assembly; 250 mini IFM assembly production units; and 125 ISRFS assembly production units.  Work will be performed in Fremont, Calif., and is expected to be completed in January 2019.  Fiscal 2014 weapons procurement, Navy funds in the amount of $900,000 is being obligated at time of this 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; two offers were received.  The Naval Air Warfare Center Weapons Division, China Lake, Calif., is the contracting activity (N68936-14-D-0009).

The Entwistle Co., Hudson, Mass., is being awarded a $10,981,190 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the long term repair of 318 trough covers that support the Aircraft Launch and Recovery Equipment Program.  This contract contains two option years, which if exercised, will bring the contract value to $18,758,583.  Work will be performed in Hudson, Mass., and is expected to be completed by January 2017.  If all options are exercised, the work will continue through January 2019.  Contract funds will not expire at the end of the current fiscal year.  No funds will be obligated at time of award.  This contract was not a full and open competition in accordance with FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirement.  Only one offer received in response to this solicitation.  The Navy Supply Weapons System Support, Philadelphia Pa., is the contracting activity (N00383-14-D-003P).

Raytheon Co., McKinney, Texas, is being awarded a $10,510,029 firm-fixed-price contract for nine multi-spectral targeting systems for Royal Danish Navy MH-60R/S helicopters.  This contract supports foreign military sales to Denmark.  Work will be performed in McKinney, Texas, and is expected to be completed by December 2015.  Fiscal 2014 foreign military sales funding in the amount of $10,510,029 will be obligated at time of award and will not expire at the end of the current fiscal year.  This contract was not a full and open competition in accordance with FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirement.  The Naval Surface Warfare Center, Crane, Ind., is the contracting activity (N00164-12-G-JQ66-0037).

ARMY

IBM Corp. was awarded a $19,905,753 modification (P00004) to contract W912DY-13-F-0037 for services supporting Army General Fund Audit Readiness.  Fiscal 2014 operations and maintenance, Army funds in the amount of $19,905,753 were obligated at the time of the award.  Estimated completion date is July, 9, 2014. Work will be performed in Arlington, Va. Army Corps of Engineers, Huntsville, Ala., is the contracting activity.

L-3 Communications Corp., Tempe, Ariz., was awarded a $10,000,000 firm-fixed-price indefinite-delivery/indefinite-quantity contract for commercial lighting tubes for special operations which increase range and field of vision in darkness.  Funding and work performance location will be determined with each order.  Estimated completion date is Jan. 2, 2018.  One bid was solicited with one received.  Army Contracting Command, Natick, Mass., is the contracting activity (W911QY-14-D-0006).

AIR FORCE

Jacobs Technology Inc., Lincoln, Mass., has been awarded a $15,215,028 modification (P00011) on an existing contract (FA8721-13-C-0009) to continue providing engineering technical assistance support services which consists of disciplined systems/specialty engineering and technical/information assurance services, support, and products using established government, contractor, and industry processes.  Work will be performed at Lincoln, Mass., and is expected to be completed by May 19, 2014.  Contract has a foreign military sales component as it requires company to travel overseas for host nation support.  FMS funding in the amount of $8,000 will be obligated at time of award.  Air Force Life Cycle Management Center/PZM, Hanscom Air Force Base, Mass., is the contracting activity.

*Small Business

**Service-Disabled Veteran-Owned Small Business

SAILORS FROM USS GEORGE WASHINGTON WATCH NEW YEARS FIREWORKS IN YOKOSUKA, JAPAN

FROM:  U.S. NAVY 
YOKOSUKA, Japan (Jan. 1, 2014)

Sailors watch a New Year's Eve fireworks display from the flight deck of the aircraft carrier USS George Washington (CVN 73). George Washington and its embarked air wing, Carrier Air Wing (CVW) 5, provide a combat-ready force that protects and defends the collective maritime interest of the U.S. and its allies and partners in the Indo-Asia-Pacific region. U.S. Navy photo by Mass Communication Specialist 2nd Class Jacob I. Allison (Released) 140101-N-BT947-343

NASA VIDEO: SPACE STATION LIVE: SCIENCE FOR 2014

NASA IMAGE OF MARS EXPLORATION ROVER SPIRIT



FROM:   NASA 

This mosaic image taken on Jan. 4, 2004, by the navigation camera on the Mars Exploration Rover Spirit, shows a 360 degree panoramic view of the rover on the surface of Mars. Spirit operated for more than six years after landing in January 2004 for what was planned as a three-month mission. Spirit drove 4.8 miles (7.73 kilometers), more than 12 times the goal set for the mission. The drives crossed a plain to reach a distant range of hills that appeared as mere bumps on the horizon from the landing site; climbed slopes up to 30 degrees as Spirit became the first robot to summit a hill on another planet; and covered more than half a mile (nearly a kilometer) after Spirit's right-front wheel became immobile in 2006. The rover returned more than 124,000 images. It ground the surfaces off 15 rock targets and scoured 92 targets with a brush to prepare the targets for inspection with spectrometers and a microscopic imager. Image Credit: NASA/JPL

AFGHAN LAW ENFORCEMENT TRAINING CENTER CELEBRATED FIRST ANNIVERSARY

FROM:  U.S. STATE DEPARTMENT 
INL Kabul celebrates first anniversary of Gibson Training Center (GTC)

Over the past year, INL planned and hosted 71 trainings, workshops, and graduation ceremonies at the Gibson Training Center (GTC) in Kabul in support of our counternarcotics, corrections, and justice programs. These events trained1517 Afghan professionals, including 280 women. The GTC hosts a variety of INL-funded trainings in partnership with the Corrections System Support Program (CSSP), the Ministry of Counternarcotics (MCN), and the Justice Sector Support Program (JSSP). Each GTC program offers opportunities for practitioners working to combat the narcotics trade and build capacity in the justice system to deepen their knowledge on a range of issues through training and networking opportunities.

In addition, the GTC platform enables senior Afghan officials to meet with their provincial ministry staff and discuss national issues. In most instances, these workshops and trainings were the first opportunity for the provincial staff to meet their senior leadership. The GTC has hosted eight nationwide conferences and eight Minister-level officials. In late May, the General Directorate for Prisons and Detention Centers (GDPDC), in coordination with CSSP, brought together the prison commanders from all 33 Afghan provincial prisons, as well as senior officials from GDPDC, the Ministry of Interior, the Supreme Court, the Attorney General’s Office, and the Ministry of Justice, for a four-day National Prison Commanders Conference. This conference enabled the prison commanders to engage with each other on solutions to the many challenges facing Afghanistan’s corrections system.

A key component of INL’s transition strategy is support for Afghan government-led trainings. In December, the Ministry of Counternarcotics hosted a capacity building training seminar for 160 civil servants from 34 provinces at the GTC. The training focused on the National Drug Control Strategy, the Drug Demand Reduction policy, the constitution of the Islamic Republic of Afghanistan, the civil servants’ law, regulation of personal affairs for civil servants, monitoring and evaluation, procurement and finance issues, and intoxicants and drugs control law. GTC’s support enables the MCN to implement a capacity building seminar aimed at improving the knowledge and skills of their civil servants in the provinces, and increasing coordination between the provinces and the headquarters in Kabul.

In just one year, the GTC has grown into a fully functioning facility capable of providing a safe and comfortable learning environment for our Afghan partners. As the GTC looks towards Afghanistan’s transition, INL will continue to support training sponsored by our implementing partners and Embassy sections (including Public Affairs and the national Lincoln Learning Centers’ Conference) at our facilities. The opportunities provided at the GTC have served to build capacity and foster communication with our Afghan partners, empowering them to lead their country to a safe and stable future.

Sunday, January 5, 2014

READOUT: NSA ADVISOR'S CALL WITH IRAQI NATIONAL SECURITY ADVISOR AL-FAYYAD

FROM:  THE WHITE HOUSE 
January 05, 2014
Readout of Deputy National Security Advisor Blinken's Call with Iraqi National Security Advisor Faleh al-Fayyad

Deputy National Security Advisor Blinken spoke with Iraqi National Security Advisor Faleh al-Fayyad today.  Blinken expressed the United States' support for ongoing operations by the Iraqi Security Forces in coordination with local and tribal movements in Anbar province to combat the Islamic State of Iraq and the Levant (ISIL). Fayyad affirmed the Iraqi government's commitment to work cooperatively with local leaders and communities in Anbar province, as well as national leaders from all political blocs, to isolate ISIL from the population and respond to the urgent needs of the Iraqi people in areas affected by terrorism. Both confirmed the strong U.S.-Iraq security partnership under the Strategic Framework Agreement, and the need for greater cooperation among Iraq’s neighboring countries to combat the regional terrorist threat. Senior officials from the White House, the State Department, and the United States Embassy in Baghdad remain in regular communication with a wide range of Iraqi officials to support ongoing efforts against ISIL, and to encourage coordination between Iraqi Security Forces and the people they serve.

SECRETARY OF STATE KERRY'S REMARKS WITH PRINCE SAUD aL-FAISAL

FROM:  STATE DEPARTMENT  
Remarks With Saudi Foreign Minister Prince Saud al-Faisal After Meeting With Saudi King Abdullah bin Abdulaziz Al-Saud
Remarks
John Kerry
Secretary of State
King Khalid International Airport
Riyadh, Saudi Arabia
January 5, 2014

FOREIGN MINISTER SAUD: I’d like first of all to welcome John and his colleagues for this visit. As you can see (inaudible) in Saudi Arabia (inaudible) that we have. And therefore, the meeting was an excellent meeting. It’s a meeting that lasted for three hours, a meeting that realized any bad (inaudible) about the relation that were expressed in many of the media lately. And we covered all of the subjects that we wanted to – or the Secretary wanted to cover from Syria to Lebanon to Yemen, all of the areas the bilateral relations are helping. And there is really no meeting that could have been smoother and more productive than this meeting.

So welcome again, John. I hope you have the same feeling about the meeting that we had. And we wish you God speed.

SECRETARY KERRY: Well, thank you very much, Your Royal Highness. I’m very appreciative to his Majesty King Abdullah for his generous welcome here today, for a meeting that he put on on very short notice. And I’m always grateful to the incredible hospitality of my friend Saud al-Faisal, whose friendship and counsel I value enormously.

I want to thank His Majesty for not just the length of the meeting, but for the quality of the meeting, for the fullness of the exchange of ideas, and particularly for his enthusiastic support for the efforts that are being made with respect to the peace process and the effort to try to end the Palestinian-Israeli conflict.

As everybody knows, His Majesty King Abdullah took the initiative to put on the table, in 2002, a very courageous effort for peace, and it is known as the Arab Peace Initiative. That initiative has been part of the framework that we have been piecing together, both in inspiration and substance. And I’m grateful that the Arab League as a whole and Saudi Arabia individually have been significantly involved in helping to build support for this effort and in following through on their own initiative.

Today, His Majesty was not just encouraging, but supported our efforts and hopes that we can be successful in the days ahead and believes that this is important for the region and that there are great benefits that will come to everybody if we’re able to be successful. So I will let him and His Royal Highness speak for themselves, but we’re grateful.

And also we discussed Syria, the Geneva II meeting. We discussed Iran and our common interests in seeing Lebanon be able to be stable and unimpeded by the interference of Hezbollah in the conduct of the affairs of state and the ways in which the people of Lebanon would like to be able to live in peace.

So I’m very grateful for a very, very productive meeting and look forward to continuing our discussion when we meet with the Geneva – with the London 11 in Paris and also (inaudible) to the Follow-On Committee to the Arab Peace Initiative. And I thank you very, very much, my friend, for your generous welcome. Thank you.

FOREIGN MINISTER SAUD: As you can see, we had a good meeting, and we have future meetings also to continue the exchange of views and various (inaudible) on the peace process. And His Majesty again reiterated the principles of the Arab Peace Plan and agreement (inaudible) come to respond to Palestinian national wishes to receive (inaudible) ultimately.

SECRETARY KERRY: Thank you.

DEFENSE SECRETARY HAGEL THANKS JAPAN'S DEFENSE MINISTER ONODERA FOR FUTENMA EFFORTS

FROM:  U.S. DEFENSE DEPARTMENT 
Secretary Thanks Japan's Defense Minister for Futenma Efforts
American Forces Press Service

WASHINGTON, Jan. 4, 2014 – Defense Secretary Chuck Hagel today thanked Japanese Defense Minister Itsunori Onodera for the Japanese government’s efforts in securing approval of the landfill permit request to build a replacement facility at Camp Schwab-Henoko Bay for Marine Corps Air Station Futenma on the Japanese island of Okinawa.

In a statement summarizing the telephone conversation between the two defense leaders, Navy Rear Adm. John Kirby, Pentagon press secretary, called the new facility “a critical part of the realignment of U.S. forces on Okinawa.”
Hagel also noted the importance of the recent agreement by the United States and Japan to negotiate a framework to supplement the status of forces agreement on environmental matters, Kirby said.

In addition, the press secretary said, Hagel and Onodera discussed the implementation of several initiatives announced in October, including the deployment of a second TPY-2 missile defense radar to Japan and the launch of a forward-looking revision of the U.S.-Japan Defense Guidelines, in which the two nations agreed on the importance of a transparent process.

"Secretary Hagel underscored the importance of Japan taking steps to improve relations with its neighbors, and to promote cooperation in advancing the shared goals of regional peace and stability,” Kirby said. “Secretary Hagel said he looked forward to continued bilateral discussions on strengthening the alliance to meet the security challenges of the 21st century."

SECRETARY OF STATE KERRY'S REMARKS FROM JERUSALEM

FROM:  U.S. STATE DEPARTMENT 
Remarks at Solo Press Availability
Remarks
John Kerry
Secretary of State
David Citadel Hotel
Jerusalem
January 5, 2014

SECRETARY KERRY: Good morning to everybody. This has been a productive couple of days with very, very intensive talks. And though we’re not done yet obviously, I want to catch you up on the most recent negotiations to give you a sense of where we are.

But before we do, I really want to say a brief word about the situation in South Sudan. For the last several weeks, all of us at the upper levels of the Obama Administration have been working together and constantly talking to the leaders in South Sudan, working with our special envoy Ambassador Don Booth, working with our Ambassador Susan Page, and working with all of our colleague countries who are engaged in trying to prevent the violence of South Sudan.

And the United States remains deeply committed to supporting the efforts that will bring this violence to an end. We’ve been involved in this for a long time. We were involved in the birth of this nation, and I personally know the leaders. I’ve been there many – a number of times. And so I think all of us feel a very personal stake in trying to avert tribal warfare and ethnic confrontation on the ground, as well as any kind of resolution of political differences by force.

The beginning of direct talks between the parties, as announced by the Intergovernmental Authority on Development, is a very important step. But make no mistake: it is only a first step and there is a lot more to do.

Both parties need to put the interests of South Sudan above their own, and that has been a message we have consistently delivered to those engaged in this conflict. Negotiations have to be serious. They cannot be a delay gimmick in order to continue the fighting and try to find advantage on the ground at the expense of the people of South Sudan. They have to be credible talks, and both parties need to approach the talks with courage and with resolve, with the clear intent of trying to find a political solution.

So we call on the parties to listen to the region and to the international community in finding a peaceful way forward to resolve this conflict.

As we’ve said before, the United States will support those who seek peace, but we will deny support and we will work to apply international pressure to any elements that attempt to use force to seize power. That is not acceptable. The talks in Addis Ababa, we believe, are absolutely the best way forward, and the world is going to be watching very closely to see that a halt to the fighting on the ground takes place and to test the good faith of leaders of any group, and particularly the two most critical players here, President Kiir and former Vice President Machar. Both of them need to push their people to come to the table here. The fighting must end, and we seek tangible progress towards peace on the ground.

Obviously, it is this effort to try to make peace that has brought back here again to Israel, to Jerusalem. And I want to thank Prime Minister Netanyahu and I want to thank President Abbas for the significant amount of time and for the effort and energy that they have expended in order to engage in very serious conversations about the way forward.

Over the past few days, I’ve had two lengthy rounds with each leader and with their teams, and we have had very positive, but I have to say very serious, very intensive conversations. These issues are not easy. As I’ve said before, if this was easy, this would have been resolved a long time ago. It is not easy. These are complicated issues that involve the survival and the future of peoples. And this is a conflict that has gone on for too long, so positions are hardened. Mistrust obviously exists at a very high level. And so you have to work through that and around that and over that, and every step is a step that is to try to point to the path forward and the ways in which each side can build a relationship and trust over a period of time.

Today, I am leaving Jerusalem in order to go to Jordan and consult with His Majesty King Abdullah and his team, and from there I will leave to go to Saudi Arabia to consult with His Majesty King Abdullah of the Kingdom of Saudi Arabia, who is, of course, the author of the Arab Peace Initiative and has a very significant interest and stake in this process. I will then return here to Jerusalem tonight.

We will continue discussions at staff level for a period of time, and at some point I do need to go back to Washington, obviously, this week for the work that we have there. But as our teams flesh out some of the concepts that are on the table, as necessary, I will return.

I want to be very clear about something that I have said before, but it bears repeating at this juncture: both Prime Minister Netanyahu and President Abbas have already made important decisions and courageous decisions, difficult decisions. You can see in the press and you see in the public debate that the choices they’re making elicit strong responses from their people. And I understand that very, very well.

We’re at the table today because of the determination to try to resolve this issue, and both of them have made the tough choices to stay at that table. We are now at a point where the choices narrow down and the choices are obviously real and difficult. And so we – the United States, President Obama, myself – will do everything in our power to help the parties be able to see the road ahead in ways that will meet the interests of both of their peoples.

The security of Israel is always paramount – in my mind, in our mind. For 29 years I had the privilege of serving in the United States Senate, and I am proud to say I had a 100 percent voting record with respect to those issues of concern to Israel, and I don’t intend to change that now. Israel’s security is critical, and the United States relationship is ironclad.

But so is our concern for the people of Palestine and for the Palestinians and their future. And I can guarantee all parties that President Obama and I are committed to putting forward ideas that are fair, that are balanced, and that improve the security of all of the people of this region.

Now, obviously, I can’t go into the details. I’m not going to start breaking now the agreements that I made with the parties and that I set forth as the rules here. We are not going to negotiate this in public. We are not going to lay out the substance of these core issues. But I can tell everybody all of the core issues are on the table. The difficult issues of security, of territory, borders, the future of the refugee issue, the status ultimately of the city of Jerusalem, and the end of conflict and of claims. How you arrive at a fair resolution of all of these complicated issues is obviously at the core of what we are talking about.

I want to share something that I shared with both of the leaders in my meetings, and that is now is not the time to get trapped in the sort of up and down of the day-to-day challenges. This does not lend itself to a daily tick-tock. We don’t have the luxury of dwelling on the obstacles that we all know could distract us from our goal. What we need to do is lift our sights and look ahead and keep in mind the vision of what can come if we can move forward.

I want to reiterate – we are not working on an interim agreement. We are working on a framework for negotiations that will guide and create the clear, detailed, accepted roadmap for the guidelines for the permanent status negotiations, and can help those negotiations move faster and more effectively.


The agreed framework will address all of the core issues that we’ve been discussing, and I think that’s the most that I would like to say about that at this point in time.

I do want to be clear: I know there are those out there who on both sides question whether or not peace is possible. I know there is a high level of cynicism, reservation about the possibilities. But it is clear to me that we can work to bride the remaining gaps that do exist and we can achieve a final status agreement that results in two states for two peoples if we stay focused and if we keep in mind the benefits of our doing so.

The benefits for both sides are really enormous, and people don’t talk about it enough or think about it enough. One of the reasons I’m going to Saudi Arabia is that Saudi Arabia’s initiative holds out the prospect that if the parties could arrive at a peaceful resolution, you could instantaneously have peace between the 22 Arab nations and 35 Muslim nations, all of whom have said they will recognize Israel if peace is achieved.

Imagine how that changes the dynamics of travel, of business, of education, of opportunity in this region, of stability. Imagine what peace could mean for trade and tourism, what it could mean for developing technology and talent, for job opportunities for the younger generation, for generations in all of these countries.

Imagine what peace could mean for an Israel where schoolchildren, some of whom I’ve seen in the course of my many visits here, so that they could actually run around a playground without the threat that a rocket might come from Gaza or from Lebanon and have to seek shelter during the course of the day.

Imagine what peace could mean for Palestinian children, who could grow up living in the dignity of their own sovereign country with an understanding that they can do what anybody in the world might be able to aspire to do, free from hatred and free from the fear that accompanies their daily existence, and obviously free to embrace all of the opportunities of young people anywhere else in the world.

The ancient and historic city of Jerusalem where long ago the words were written that have great meaning today: the scripture tells us that “the Lord will give strength to His people; and the Lord will bless His people with peace.” And as men and women of peace I think in this region, we continue to believe in that possibility.


So we stand behind these negotiations that can lead not just to two states for two peoples, but a shared prosperity that benefits the peoples of all of this region. The stakes here are much bigger than just Israel and Palestine. This is a conflict that is felt around the world. It is a conflict that has implications with every leader I have met anywhere in the world as Secretary of State or a senator. They all ask about the conflict of the Middle East and whether or not it can be resolved.

So these are high stakes, high stakes for the leaders and high stakes for everybody else. And President Obama is determined that the United States of America and his Administration will do everything in our power to exhaust the possibilities of finding that peace.

On that note, I’d be happy to open it up to any questions.

MODERATOR: Deb.

QUESTION: There have been 20 rounds of negotiations for the --

SECRETARY KERRY: Who’s counting?

QUESTION: Who’s counting, yes. The negotiations seem to be hung up on some pretty serious roadblocks. I mean, Israel, for example, is balking at the ‘67 lines, and that’s a pretty big hurdle.

SECRETARY KERRY: Israel is doing what?

QUESTION: Balking at the ’67 lines.

SECRETARY KERRY: You’re telling me things that I don’t know that I’m not commenting on. So I mean, I don’t know where you – honestly, I don’t know where you know that from. I’m not going to talk about who’s balking, not balking. But don’t believe what you hear.

QUESTION: Okay.

SECRETARY KERRY: What we’re doing right now is working through those issues.

QUESTION: Okay. I know you don’t want to talk about specifics, but can you give the American public, the Israelis, the Palestinians even one example of something even generally in terms of progress that you’ve been able to make in your 10 trips here?

And when the framework is agreed upon, if it’s agreed upon, how detailed will it be? Will it include some sort of a deadline or framework – frame – timeframe for finishing a final status agreement?

SECRETARY KERRY: Well, let me share with you as best I can sort of how this is working and why I am not going to go into the details. I have shared with you that we are talking about all of the core issues, and you know that. You all have traveled out here many times. And you know that the core issues involve territory and the core issues involve security, and they involve refugees and they involve the question of recognition for both peoples and involves, obviously, ultimately, questions about Jerusalem and how you resolve all claims and the conflict itself.

Now, this is deeply steeped in history, and each side has a narrative about their rights and their journey and the conflict itself. And in the end, all of these different core issues actually fit together like a mosaic. It’s a puzzle, and you can’t separate out one piece or another. Because what a leader might be willing to do with respect to a compromise on one particular piece is dependent on what the other leader might be willing to do with respect to a different particular piece. And there’s always a tension as to when you put your card on the table as to which piece you’re willing to do, when, and how. So it has to move with its particular pace and its particular privacy, frankly. And that’s why it’s so important not to be laying out any one particular component of it at any given moment of time, because it actually makes it more difficult for those decisions to be made or for those compromises to be arrived at, or for one of the leaders to have the freedom to be able to do what they need to do in order to figure out the political path ahead, which is obviously real for both.

So the answer is I’m not going to lay out one particular example or another, except to say to you that the path is becoming clearer, the puzzle is becoming more defined, and it is becoming much more apparent to everybody what the remaining tough choices are and what the options are with respect to those choices.

But it takes time to work through these things, and that’s why I have refused to ever set a particular timetable. But I feel comfortable that those major choices are now on the table and that the leaders are grappling with these options, otherwise I wouldn’t be going to talk to other stakeholders in this process the way I am today. But I cannot tell you when particularly the last pieces may decide to fall into place or may fall on the floor and leave the puzzle unfinished. That’s exactly what makes this such a challenge, and also so interesting at the same time.

With respect to – I think you had --

QUESTION: What about the – how detailed will the framework be if it’s --

SECRETARY KERRY: I’m not going to go into – again, we’ll let the framework speak for itself when and if it is achieved and --

QUESTION: But are you seeking some sort of deadline? In other words, it does become kind of --

SECRETARY KERRY: Am I thinking of some sort of deadline?

QUESTION: Is --

SECRETARY KERRY: Sure I am.

QUESTION: Is there a discussion about a deadline so that it doesn’t just (inaudible) a long and --

SECRETARY KERRY: Yes. The answer is yes.

QUESTION: Okay.

SECRETARY KERRY: I have a deadline in mind.

QUESTION: Okay.

MODERATOR: Michael Gordon.

QUESTION: On another Middle East subject, Mr. Secretary. A significant number of American military personnel died to take Fallujah from al-Qaida in Iraq, and now two years after the American forces were withdrawn from Iraq, much of that city has been taken back by an al-Qaida affiliate.

The 75 Hellfire missiles that the Administration is selling to Iraq and the ScanEagle drones it plans to deliver by March don’t appear to be sufficient to prevent this al-Qaida affiliate from controlling much of Anbar and other parts of Iraq. And yesterday, your State Department issued a statement saying that American officials had been in touch with Iraqi tribal leaders and that the U.S. was working with the Iraqi Government to “support those tribes in every possible way.”

My question is: What specific steps is the Administration prepared to take to help the Iraqi tribes or the Iraqi Government roll back the al-Qaida advance in western and northern Iraq? Nobody is suggesting the U.S. send ground troops, but would the United States be willing to carry out drone strikes from bases outside Iraq? Would you provide arms to the tribes? The leader of this al-Qaida affiliate has been designed a global terrorist by the State Department. What specific steps are you prepared to take?

SECRETARY KERRY: Well, Michael, I’m not going to go into all of the specifics. Let me just say in general terms a couple of things. First of all, we are following the events in Anbar province very, very closely, obviously. We’re very, very concerned by the efforts of al-Qaida and the Islamic State of Iraq in the Levant, which is affiliated with al-Qaida, who are trying to assert their authority not just in Iraq but in Syria.

These are the most dangerous players in that region. Their barbarism against the civilians of Ramadi and Fallujah and against Iraqi security forces is on display for everybody in the world to see. Their brutality is something we have seen before. And we will stand with the Government of Iraq and with others who will push back against their efforts to destabilize and to bring back, to wreak havoc on the region and on the democratic process that is taking hold in Iraq.

Now, we’re going to do everything that is possible to help them, and I will not go into the details except to say that we’re in contact with tribal leaders from Anbar province whom we know who are showing great courage in standing up against this as they reject terrorist groups from their cities. And this is a fight that belongs to the Iraqis. That is exactly what the President and the world decided some time ago when we left Iraq. So we are not, obviously, contemplating returning. We’re not contemplating putting boots on the ground. This is their fight, but we’re going to help them in their fight.

And yes, we have an interest. We have an interest in helping the legitimate and elected government be able to push back against the terrorists. This is a fight that is bigger than just Iraq. This is part of the reason why the Geneva conference is so critical, because the rise of these terrorists in the region and particularly in Syria and through the fighting in Syria is part of what is unleashing this instability in the rest of the region. That’s why everybody has a stake. All of the Gulf states, all of the regional actors, Russia, the United States, and a lot of players elsewhere in the world have a stake in pushing back against violent extremist terrorists who respect no law, who have no goal other than to take over power and disrupt lives by force.

And the United States intends to continue to remain in close contact with all of the Iraq political leaders to see how we can continue to support their efforts in the days ahead. But it is their fight; that is what we determined some time ago, that we can’t want peace and we can’t want democracy and we can’t want an orderly government and stability more than the people in a particular area, in a particular country or a particular region. And so we will help them in their fight; but this fight, in the end they will have to win, and I am confident they can.

MODERATOR: Anne Gearan.

QUESTION: Mr. Secretary, you mentioned the Geneva II conference a moment ago. You’re less than two weeks out from that event now, and the question as to whether Iran will be invited is still open. What is your current position? Do you want to see Iran included? And even if they don’t sign up to all of the principles of Geneva I, isn’t it better to have them working alongside you than potentially (inaudible)?

SECRETARY KERRY: Well, Iran could participate very easily if they would simply accept publicly the Geneva I premise on which Geneva II is based. We are not going to Geneva to just have a discussion. We are going with the purpose of implementing Geneva I. That was the premise originally that Foreign Minister Lavrov and I announced in Moscow. That has been the premise of organizing this. That will be the premise of the invitation that is sent out by the secretary general of the United Nations. We are going to implement Geneva I, which calls for a transition government by mutual consent with full executive authority; and if Iran doesn’t support that, it’s very difficult to see how they’re going to be “a ministerial partner” in the process.

Now, could they contribute from the sidelines? Are there ways for them conceivably to weigh in? Can their mission that is already in Geneva be there in order to help the process? It may be that there are ways that that could happen. But that has to be determined by the secretary general and it has to be determined by Iranian intentions themselves. But in terms of a formal invitation or participation, that is for those who support the Geneva I implementation, and that’s the purpose of the Geneva conference.

QUESTION: Would you like to see Foreign Minister Zarif attend on the sidelines then at the invitation of the secretary general --

SECRETARY KERRY: Well, I think I just spoke to it. I think that we’re happy to have Iran be helpful. Everybody is happy to have Iran be helpful. But we have a huge piece of business on the table with Iran right now to complete the task of the implementation language and get moving with respect to the negotiations on their own nuclear program and the challenge of that particular relationship.

So Iran knows exactly what it has to do with respect to the nuclear program as well as with respect to Geneva II. And it’s very simple: come join the community of nations and do what all of us are committed to doing, which is try to bring about a peaceful resolution in Syria by virtue of the implementation of Geneva I.

MODERATOR: Thanks, everyone.

SECRETARY KERRY: Thank you all. Appreciate it.

CDC: INJURY AND VIOLENCE PREVENTION

FROM:  CENTERS FOR DISEASE CONTROL AND PREVENTION 
CDC Grand Rounds: Evidence-Based Injury and Violence Prevention
CDC Media Relations
404-639-3286

Most events resulting in injury, death, or disability are predictable, and therefore preventable. In the United States, injuries result in 180,000 deaths, 2.8 million hospitalizations and 29 million emergency department visits each year. Motor vehicle crashes, falls, homicides, suicides, domestic violence, child maltreatment, and other forms of intentional and unintentional injury produce substantial economic and societal burdens. The estimated annual U.S. cost in medical expenses and lost productivity resulting from injuries is $355 billion. Injury and violence prevention strategies and interventions are identified and tested in real-world settings. Communities can attain maximum impact by recognizing that injury prevention is a core component of public health.  Injury prevention efforts should be visible, with their value documented to ensure accountability and increase impact in communities. Innovative solutions to injury problems should be pursued, and opportunities to link clinical medicine and public health should be fostered. Translating injury prevention evidence into action depends on coordination among federal, state, and local agencies, and partnerships in the research and practice communities.

SECRETARY OF STATE KERRY, PALESTINIAN NEGOTIATOR MAKE REMARKS ON TWO-STATE SOLUTION

FROM:  STATE DEPARTMENT 
Remarks With Lead Negotiator for the Palestinian Authority Saeb Erekat After Meeting With Palestinian Authority President Abbas
Remarks
John Kerry
Secretary of State
Muqata'a Presidential Compound
Ramallah
January 4, 2014

Mr. EREKAT: I think this is the 21st meeting between President Abbas and Secretary Kerry. It was a sleepless night last night and today also. Secretary Kerry has exerted every possible effort in order to achieve a two-state solution, a state of Palestine to live side by side with the state of Israel in peace and security in the 1967 lines.

What Secretary Kerry is doing – and let me repeat it in front of him – is not an interim agreement. It’s not a transitional period that’s beyond us. We’re working hard to achieve an agreement on all core issues. No one benefits more from the success of Secretary Kerry’s efforts than Palestinians, and no one stands to lose more of failure than Palestinians. Failure to us is not an option. We really are doing everything humanly possible to ensure the success of Secretary Kerry. We really hope that the Israeli side would refrain from any acts that may prejudice or preempt the outcome of permanent status negotiations, i.e., settlement activity and home demolitions.

Secretary Kerry – I have read in the papers that he presented papers, documents. Up till this moment, Secretary Kerry has shared ideas. We’re discussing these ideas. The job is not done yet. We have meetings scheduled for next week, and I think the Secretary will be coming back in the days ahead.

Mr. Secretary, President Abbas appreciates your efforts, we appreciate your effort, and thank you very much.

SECRETARY KERRY: Thank you very much, Saeb. Thank you. Well, thank you very much, Saeb Erekat, the chief negotiator for the Palestinians. I want to thank President Abbas for his renewed hospitality, and I am very grateful to his whole team for the generous way in which they receive us here, for the time they give to this, and the effort they put into it.

Let me be very clear about what we are doing now and where we are. As Saeb said, this is perhaps the 21st meeting. I can’t even measure from when. But I will say that we are working with great intensity, with serious purpose, with the commitment to trying to resolve this conflict that has gone on for many years too long, and which I think presents us now with the possibility of trying to find a framework agreement which would really lay out the end game and lay out the framework for the major issues to guide the negotiations from this point forward. As Saeb said, we’re not there yet, but we are making progress and we are beginning to flesh out the toughest hurdles yet to be overcome.

I want to thank President Abbas for the progress we made today, the issues we discussed. I will be going from here back to Jerusalem, where tonight I will meet with Prime Minister Netanyahu. Tomorrow, I will go to Jordan to meet with King Abdullah and Foreign Minister Nasser Judeh, and from there I will fly to Saudi Arabia where I will meet with King Abdullah in order to talk about where we are, what we’re trying to do in the days ahead.

Next weekend, I will meet with the Arab League Follow-on Committee with respect to the Arab Peace Initiative. And during this week, our teams will continue to work to try to lay the foundation and the groundwork for the progress needed in order for me to come back and take the next steps.

So this is hard work. There are narrative issues; difficult, complicated years of mistrust that have been built up, all of which as to be worked through and undone, and a pathway has to be laid down in which the parties can have confidence that they know what is happening and that the road ahead is real, not illusory.

So I remain hopeful as I have been, and I am confident that the talks we’ve had in the last two days have already fleshed out and even resolved certain kinds of issues and presented new opportunities for others. That’s the name of this game. It’s a tough process, step by step, day by day. But if people continue to act in good faith, as the leaders have – both President Abbas and Prime Minister Netanyahu have been criticized, both have been demonstrated against, both have been editorialized against, and both have been subjected to difficult questions from members of their own parties and bases as well as from other people.

But both have remained absolutely steadfast to this effort and committed to the notion that two peoples living side by side in peace and security is a goal worth fighting for and that the progress being made is sufficient to encourage people to keep going. So that’s exactly what we’re going to do, and I think over the next week we have some very serious homework – all of us – to do.

Thank you very much.

DOJ HELPS SUPPORT TRAINING OF WOMEN PROSECUTORS, INVESTIGATORS IN PAKISTAN

FROM:  U.S. STATE DEPARTMENT

Joint Training for Pakistani Women Prosecutors and Investigators

Officials from INL and the Department of Justice, in conjunction with the Women’s Police Support Program, conducted the first ever joint training for female prosecutors and police investigators in the history of Pakistan. The Women Police-Prosecutor Conference, held in Karachi on November 19-21, brought together police investigators and female prosecutors from Karachi and interior Sindh Province to receive specialized training from Pakistani and American experts in forensics, interview techniques, trial preparation, and crime scene analysis.

Speaking at the conclusion of the seminar, U.S. Consul General in Karachi Michael Dodman praised the participants with the following statement: “Female police officers and prosecutors face unique challenges, and I admire the courage and professionalism that you display every day in facing those challenges to pursue justice in your communities. I hope that the skills you learned in this first-ever joint prosecutor and investigator training for women in Pakistan will give you additional tools for success as you pursue your important work.”
The training seminar format presented the participants with a simulated crime and then asked them as a group to evaluate the crime scene, select the best investigative techniques, and develop a case for effective presentation in court. In addition, the women received instruction from Pakistani and American experts on case evaluation, police-prosecutor cooperation, and sexual harassment issues in the workplace. Following the seminar’s conclusion, the participants agreed that increased coordination between police and prosecutors from day one of an investigation is vital to building quality cases and increasing conviction rates at trial.

IRS STATISTICS FOR 2011

FROM:  INTERNAL REVENUE SERVICE 
Fall 2013 Statistics of Income Bulletin Now Available

WASHINGTON — The Internal Revenue Service today announced the availability of the Fall 2013 issue of the Statistics of Income Bulletin, which features information on individual income tax returns filed for tax year 2011.

Taxpayers filed 145.4 million individual income tax returns for 2011, an increase of 1.7 percent from tax year 2010. The adjusted gross income (AGI) reported on these returns totaled $8.4 trillion, a 3.5-percent increase from 2010. Taxable income rose 4.4 percent to $5.7 trillion for 2011.

The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis. Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S. taxpayers. This issue of the SOI Bulletin also includes articles on the following topics:

Partnership Returns:  Since 2002, the number of partnerships has increased at an average annual rate of 4.4 percent. For tax year 2011, a total of 3,285,177 partnerships filed federal tax returns, reporting $20.6 trillion in total assets and $580.9 billion in total net income or profit.

Accumulation and Distribution of Individual Retirement Arrangements:  About three- quarters of all taxpayers (145.6 million) were eligible to contribute to an individual retirement account (IRA) for 2010. Of the 3.5 million taxpayers who made IRA contributions, 62 percent were age 50 or older. For 2010, the end-of-year fair market value of IRAs reported by approximately 54.4 million taxpayers was roughly $5 trillion.

U.S. WORKS TO TRAIN COSTA RICAN AUTHORITIES TO STOP COCAINE TRAFFICK

FROM:  U.S. STATE DEPARTMENT

Strengthening Costa Rica’s Borders

In 2012, more than half of the primary flow of the cocaine trafficked to the United States first transited through the Central American corridor. Costa Rica’s use as a drug transshipment point is credited to its strategic geographic location, linking narcotics-producing countries in South America with the United States and the challenges of patrolling its extensive Caribbean and Pacific coastlines.

INL is taking steps across Central America to assist countries like Costa Rica improve their capabilities through the Central America Regional Security Initiative (CARSI). CARSI programs seek to disrupt crime that operates cross-regionally without regard to national borders, while also helping national governments take greater responsibility for their own security with professional, effective law enforcement.

A key pillar of the CARSI program is its capacity building for law enforcement. Since 2010, INL has partnered with the U.S. Customs and Border Protection (CBP) in Central America, and CBP first offered land interdiction training to the Costa Rican Fuerza Publica, or National Police, in 2012. That training highlighted Costa Rica’s need for a dedicated Border Police force that could recruit cadets to work far from home in the tropical rainforest of Costa Rica’s border zones, and provide a career path that rewarded these specialized officers.
This necessary border police force was created by the Costa Rican government in 2013. On September 13th, 2013, Fuerza Publica officers began a basic border course taught and designed by Costa Ricans with input from CBP. At the end of the course, 170 officers went north to begin putting these lessons into practice, while 30 officers remained for an advanced course taught directly by CBP. The advanced course will give these officers specialized skills in mobile patrols, border post management, inspection of fraudulent documents, as well as day and night tactical operations.

In the weeks following their deployment, graduates of the basic course have made national headlines across Costa Rica with their discovery of ten helipads built on ranches owned by suspected drug traffickers and corrupt local officials, depots of military-style weapons, bulk currency, and stolen aviation fuel hidden in the remote hills along the border with Nicaragua. Costa Rica’s Judicial Investigative Police are now using evidence collected by the Border Police to build a case against the criminal network linked to the discoveries, while the 27 graduates of the advanced course head to the border to add an even greater level of advanced techniques to the efforts already underway.

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