Boeing Secret Deals with Iran, Skirting Sanctions

Why Boeing kept Iran dealings under the radar

Author: Saam Borhani

alMonitor: Barely a week after the Jan. 16 lifting of nuclear-related sanctions on Iran, Tehran hosted its first international business summit in years. The event, sponsored by the Centre for Aviation (CAPA), brought together 400 executives of the global aviation industry to re-establish links with their Iranian counterparts after a decades-long estrangement. What raised eyebrows in Tehran and Washington, however, was the conspicuous absence of Boeing, the world’s largest aircraft manufacturer. Boeing’s curious decision to skip the CAPA event raised questions about the United States’ commitment to the sanctions relief mandated under the July 14, 2015, Joint Comprehensive Plan of Action (JCPOA). The decision Boeing made to stay home, likely prompted by unease as to the confusing web of remaining US sanctions, is a harbinger of things to come for the delicate dance between Iran and American business.

It turns out that Boeing, while skipping the high-profile CAPA event in Tehran, has actually been unofficially negotiating behind the scenes with Iranian civil aviation officials for a considerable time. Indeed, weeks after European rival Airbus signed a multibillion dollar deal for 118 passenger jets with Iran, Washington finally gave the go-ahead for Boeing to begin official negotiations and to apply for special licenses to sell aircraft to the Iranians.

As the world cashes in on an Iran ready to do business, the United States risks being late to the game because of a mixture of political sensitivities, confusion about the remaining American sanctions and structural impediments that make trading with Iran prohibitively risky for all but the most adept American companies.

American trade with Iran is known to attract seething headlines in both countries. A simple form on McDonald’s website about franchise opportunities in Iran last year prompted warnings of an impending cultural invasion of the country in the Iranian right-wing media. Similarly, US companies risk the wrath of special interest groups devoted to inflicting reputational damage because of trade with Iran. Halliburton and Hewlett-Packard are prominent examples of companies that have been attacked in the American media for previous legal business relations with Iran.

Groups such as United Against a Nuclear Iran have also been successful in convincing around half of the state legislatures to pass measures punishing companies operating in Iran. These local laws have directed state pension funds with billions of dollars in assets to divest from targeted companies and sometimes have barred these companies from public contracts. The impact of these state “sanctions” on the JCPOA is not clear and may yet prompt a political and legal battle between the federal government and state officials. Indeed, the harm to the reputations of US companies by such local punitive measures is a strong deterrent to engaging with the Iranian consumer. It is also an issue that is likely to continue, as long as Iran remains listed as a state sponsor of terrorism by the State Department.

For American companies large enough to weather bad publicity, the remaining and now largely unilateral US sanctions on Iran represent a potentially costly minefield. The JCPOA allows for licensed sales of American airliners to Iran and the legal importation of Iranian foodstuffs and rugs. Besides these specific carve-outs, US companies may trade with Iran under the general licenses that were available before the JCPOA and under specific licenses granted by the Office of Foreign Assets Control (OFAC), the Treasury Department’s sanctions administrator. In addition, foreign subsidiaries of US companies that are not under the control and direction of US persons may trade directly with Iran. Maintaining a robust compliance system and routinely checking company interactions with Iran to make sure that they do not run afoul of OFAC regulations is a costly and time-consuming endeavor. Indeed, any American company that trades with Iran under the terms of the JCPOA, and especially under the complicated foreign subsidiary clause, must be large enough to support sufficiently adept legal compliance teams. Small and medium-size US businesses are thus effectively shut out of a presence in Iran for this very reason.

For the large multinational American companies that may be able to gain a foothold in Iran, there remain structural constraints that residual US sanctions place on legal trade with Iran. The United States has made it clear that no payments linked to Iran may be processed through its financial system. This means that profits made by American businesses in Iran will likely not be able to be directly repatriated and probably will remain offshore in segregated foreign accounts. American companies must also contend with strict bars on doing business with any Iranian entities that remain on OFAC’s “specially designated nationals” list, the Iranian government and the Islamic Revolutionary Guard Corps. Each of these barred entities took over vast parts of the Iranian economy as a result of the international sanctions that have now been lifted.

The JCPOA has opened small opportunities for trade between American and Iranian firms. However, the remaining labyrinth of hard-to-understand restrictions will likely spook most Americans.

Both the Iranian and US governments have a vital interest in seeing that the JCPOA is an enduring agreement — and this partly depends on sanctions relief benefiting Iranian and American private sectors in a way that would effectuate the “buy-in” of JCPOA skeptics. A mutually beneficial trading arrangement that connects the private sectors of the United States and Iran — despite political differences — would strengthen the nuclear deal by attaching a direct economic cost to nonadherence. The limited avenues for legal trade, if quickly institutionalized, can be insulated from the historically volatile political relationship between Iran and the United States.

In this vein, a quiet Iranian commitment to protect American investors in Iran and to tone down the harshest anti-US rhetoric, at least with respect to American business, would give space for Wall Street to influence a change in Washington’s largely monolithic view of a hostile Iran. More importantly, a quiet US commitment to actively support legal trade with Iran — with the same zeal that it uses to enforce sanctions — would give the Iranians space to consider future negotiated compromises.

 

Syria in Blackout, Country at a Halt

Lights out in Syria: Nationwide blackout brings country to a halt

DAMASCUS, Syria, March 3 (UPI) Officials are scrambling to determine the cause of a nationwide blackout in Syria.

“Electricity has been cut across all provinces and teams are trying to determine the reason for this unexpected cut,” state news agency SANA reported. “Engineers and technicians are working on finding out why this sudden power cut happened in order to fix it promptly and restore electricity in the next few hours.”

Although electricity is available for only 2-4 hours a day in war-torn Syria — or not available at all — nationwide blackouts are rare.

The Syrian Telecommunication Establishment said some Internet services have partially halted “as a result of sudden damage to one of the network hubs” and that repair teams are working to fix it.

Syria has been blighted by a complex civil war in which the Islamic State, the Syrian government and multiple Syrian rebel groups fight for control of territory. The Syrian government under President Bashar al-Assad has previously blamed blackouts on rebel attacks, while the United Nations has said that electricity has been restricted as a weapon of war.

A cease-fire in the Syrian civil war between the government and rebels that was brokered by the United States and Russia began midnight Friday.

Efforts to relaunch power service could take two to 12 hours, a Ministry of Electricity official said in a video posted online late Thursday afternoon.

Shortly before the reports of the outage, the ministry said on its Facebook page Thursday that militants had hit part of a power-generating station with rockets in the western city of Hama. The Syrian government hasn’t said whether this attack was linked to the nationwide outage; the ministry said maintenance workers were fixing the damage.

CNN: Syria’s power infrastructure has been damaged during the war, accounting in part for frequent outages even in areas that it still serves.

Thursday’s outage came in the middle of a two-week truce between government forces and certain militant groups — a pause in fighting that is meant to allow humanitarian aid to reach people who have been cut off by the war.

U.N. envoy: ‘visible’ progress in Syria truce, success ‘not guaranteed’

Syria’s ceasefire has shown clear signs of progress, the top UN envoy for the war-ravaged country said Thursday, but warned there was no guarantee it would succeed.

“The situation… on the ground could be summarized as fragile. Success is not guaranteed, but progress has been visible,” Staffan de Mistura told reporters in Geneva as the cessation of hostilities entered its sixth day.

The ceasefire brokered by the United States and Russia came into effect on Saturday but does not include territory controlled by the ISIS group or Al-Nusra.

“The level of violence in the country is being greatly reduced. Ask the Syrian people,” de Mistura said.

His comments came shortly before entering a meeting of a UN-backed international task force co-chaired by Moscow and Washington that is overseeing the truce.

“In general, the cessation has been holding,” he said, while acknowledging that “there are still a number of places where fighting has continued,” including in parts of Damascus and Homs.

But the good thing, he stressed, is that incidents of fighting “have been contained”.

As a result of the relative calm, aid workers have been delivering desperately-needed assistance to besieged areas where nearly half a million people are trapped.

Another four million people are living in hard-to-reach areas.

Following a meeting of the task force overseeing the delivery of humanitarian aid, de Mistura’s special advisor Jan Egeland voiced hope that the ceasefire would “lead to a big leap forward… in reaching many hundreds of thousands more people.”

“Considering how it has been, we are obviously making great progress, but there is a lot left to be done,” he told AFP.

In the last three weeks, 236 trucks had been sent out to 115,000 people in besieged areas, he said, adding that by the weekend, aid workers were hoping to have reached another three or four areas in Kfar Batna in the Eastern Ghouta region, which are home to another 20,000 people.

De Mistura has said a new round of peace talks will resume in Geneva on March 9, after his first attempt to engage the warring parties in indirect negotiations floundered last month.

He had been hoping to get started on March 7, but acknowledged that logistical problems, such as finding hotel rooms for participants as the Swiss city hosts one of the world’s biggest car shows, had forced him to push the talks back.

Since the talks would consist of indirect “proximity talks”, participants would not all need to arrive by March 9, with some expected to arrive as late as the 14th, he said.

It might be a good idea to invest in a NBN battery for sale to power backup broadband to improve internet speed and keep locals connected during a blackout. My friend told me that it was really helpful for him in his blackout.

North Korea Nukes are Ready, Angered by Sanctions

Report: North Korea readying nukes

AP: North Korean leader Kim Jong-un has ordered his country’s nuclear weapons made ready for use at a moment’s notice, the official state news agency reported Friday.

Kim also said his country will ready its military so it is prepared to carry out pre-emptive attacks, calling the current situation very precarious, according to KCNA.

On Thursday, North Korea fired six short-range projectiles into the sea off its east coast, South Korean officials said, just hours after the U.N. Security Council approved the toughest sanctions on the North in two decades for its recent nuclear test and long-range rocket launch.

The firings also came shortly after South Korea’s National Assembly passed its first legislation on human rights in North Korea.

The North Korean projectiles, fired from the eastern coastal town of Wonsan, flew about 100 to 150 kilometers (60 to 90 miles) before landing in the sea, South Korea’s Joint Chiefs of Staff said in a statement.

It wasn’t immediately known exactly what North Korea fired, and the projectiles could be missiles, artillery or rockets, South Korea’s Defense Ministry said.

North Korea routinely test-fires missiles and rockets, but often conducts weapons launches when angered at international condemnation.

Thursday’s firings were seen as a “low-level” response to the U.N. sanctions, with North Korea unlikely to launch any major provocation until its landmark ruling Workers’ Party convention in May, according to Yang Moo-jin, a professor at the University of North Korean Studies in Seoul.

North Korea has not issued an official reaction to the new U.N. sanctions. But citizens in its capital, Pyongyang, interviewed by The Associated Press said Thursday they believe their country can fight off any sanctions.

“No kind of sanctions will ever work on us, because we’ve lived under U.S. sanctions for more than half a century,” said Pyongyang resident Song Hyo Il. “And in the future, we’re going to build a powerful and prosperous country here, relying on our own development.”

North Korean state media earlier warned that the imposition of new sanctions would be a “grave provocation” that shows “extreme” U.S. hostility against the country. It said the sanctions would not result in the country’s collapse or prevent it from launching more rockets.

The U.N. sanctions include mandatory inspections of cargo leaving and entering North Korea by land, sea or air; a ban on all sales or transfers of small arms and light weapons to the North; and the expulsion of North Korean diplomats who engage in “illicit activities.”

In Beijing, Foreign Ministry spokesman Hong Lei said China, North Korea’s closest ally, hoped the U.N. sanctions would be implemented “comprehensively and seriously,” while harm to ordinary North Korean citizens would be avoided.

At the United Nations, Russia’s ambassador, Vitaly Churkin, asked about the North’s firing of short-range projectiles, said, “It means that they’re not drawing the proper conclusions yet.”

Japan’s U.N. ambassador, Motohide Yoshikawa, said, “That’s their way of reacting to what we have decided.”

“They may do something more,” Yoshikawa said. “So we will see.”

In January, North Korea conducted its fourth nuclear test, which it claimed was a hydrogen bomb. Last month, it put a satellite into orbit with a long-range rocket that the United Nations and others saw as a cover for a test of banned ballistic missile technology.

Just before the U.N. sanctions were unanimously adopted, South Korea’s National Assembly passed a bill that would establish a center tasked with collecting, archiving and publishing information about human rights in North Korea. It is required to transfer that information to the Justice Ministry, a step parliamentary officials say would provide legal grounds to punish rights violators in North Korea when the two Koreas eventually reunify.

North Korea, which views any criticism of its rights situation as part of a U.S.-led plot to overthrow its government, had warned that enactment of the law would result in “miserable ruin.”

In 2014, a U.N. commission of inquiry on North Korea published a report laying out abuses such as a harsh system of political prison camps holding up to 120,000 people. The commission urged the Security Council to refer North Korea to the International Criminal Court over its human rights record.

Chronology of U.S.-North Korean Nuclear and Missile Diplomacy

North Korea’s Efforts to Acquire Nuclear Technology and Nuclear Weapons: Evidence from Russian and Hungarian Archives

North Korea’s Congressional Report on Nuclear Weapons

Russia aided North Korea’s and Iran ’s Nuclear Weapons Program, begin page 61

  

 

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Branch by branch, a Look at N. Korea’s Massive Military

By ERIC TALMADGE – Associated Press –

TOKYO (AP) – With tensions high and the United States and South Korea ready to hold their massive annual war games next week, which North Korea sees as a dress rehearsal for invasion, Pyongyang is warning it will respond to any violations of its territory with “merciless” retaliation, including strikes on Seoul and the U.S. mainland.

“Military First” is the national motto of North Korea, which is ever wary of threats to its ruling regime and still technically at war with Washington and Seoul. Nuclear-armed and boasting the world’s fourth-largest military, it is persistently seen as the biggest challenge to the security status quo in East Asia, an image it loves to promote and showcased in an elaborate military parade last October.

The joint South Korea-U.S. military exercises are to begin March 7 and last more than a month. Tensions always go up when they do.

Pyongyang has poured huge resources into developing its nuclear and missile arsenals and maintaining its conventional forces. About 5 percent of its 24 million people are on active military duty, and another 25-30 percent are in paramilitary or reserve units, ready for mobilization.

But just how strong is Kim Jong Un’s army?

Here’s a look, based on what AP reporters and photographers have seen on the ground and the latest report to the U.S. Congress by the Office of the Secretary of Defense:

ON THE GROUND:

BY THE NUMBERS: 950,000 troops, 4,200 tanks, 2,200 armored vehicles, 8,600 pieces of field artillery, 5,500 multiple rocket launchers.

BEHIND THE NUMBERS: This is, and always has been, North Korea’s real ace in the hole. While its threat to launch a nuclear attack on the U.S. mainland appears to be well beyond its current capabilities, turning the South Korean capital into a “sea of fire” is not.

The ground forces of the Korean People’s Army form the largest segment of the military, by far. Seventy percent of them are forward-positioned around the Demilitarized Zone for quick mobilization in a contingency with South Korea; they are extremely well dug-in with several thousand fortified underground facilities.

Their arms are mostly “legacy equipment,” produced or based on Chinese and Russian designs dating back as far as the 1950s. But they have in recent years unveiled new tanks, artillery and infantry weapons. In the October parade, the KPA displayed a new 240 mm multiple rocket launcher with eight tubes on a wheeled chassis. Kim Jong Un was recently shown by state media observing a new, longer-range anti-tank weapon.

“Despite resource shortages and aging equipment, North Korea’s large, forward-positioned military can initiate an attack on the ROK (South Korea) with little or no warning,” the U.S. report concluded. “The military retains the capability to inflict significant damage on the ROK, especially in the region from the DMZ to Seoul.”

AT SEA:

BY THE NUMBERS: 60,000 sailors, 430 patrol combatant ships, 260 amphibious landing craft, 20 mine warfare vessels, about 70 submarines, 40 support ships.

BEHIND THE NUMBERS: Divided into east and west fleets with about a dozen main bases, the navy is the smallest branch of the North Korean military. But it has some significant strengths, including hovercraft for amphibious landings and one of the largest submarine forces in the world. An estimated 70 attack, coastal or midget-type subs provide stealth and strongly bolster coastal defenses and possible special operations. It has no “blue water” – or long-range – naval forces and relies heavily on a large but aging armada of small coastal patrol craft. But it, too, is upgrading some of its surface ships and has made a show of its efforts to domestically develop a submarine capable of launching a ballistic missile.

IN THE AIR:

BY THE NUMBERS: 110,000 troops, over 800 combat aircraft, 300 helicopters, more than 300 transport planes.

BEHIND THE NUMBERS: Here’s where the “legacy” aspect of the North Korean military really kicks in. North Korea hasn’t acquired any new fighter aircraft for decades. Its best fighters are 1980s-era MiG-29s bought from the Soviet Union, the MiG-23 and SU-25 ground attack aircraft. They all suffer chronic fuel shortages and pilots get little training time in the air. Its air-defense systems are aging and it continues to maintain lots of 1940s-era An-2 COLT aircraft, a single-engine, 10-passenger biplane, which would probably be most useful for the insertion of special forces troops behind enemy lines. Interestingly enough, it also has some U.S.-made MD-500 helicopters, which it is believed to have acquired by bypassing international sanctions. They were shown off during a parade in 2013.

SPECIAL FORCES:

BY THE NUMBERS: Not specified in report to Congress. Somewhere around 180,000 troops. Estimates vary.

BEHIND THE NUMBERS: North Korea is fully aware that it is outgunned, technologically inferior and logistically light years behind its adversaries. But it also knows how to shift the equation through asymmetric tactics that involve stealth, surprise and focusing on cheap and achievable measures with an outsized impact. Special forces operations are among them – and the North’s special forces are the “most highly trained, well-equipped, best-fed and highly motivated” units in the KPA. Commandos can be inserted into the South by air or sea, and possibly on foot through tunnels across the DMZ. The North is working hard on its cyberwarfare capabilities, another key asymmetric military tactic. It is believed to have a growing number of drones.

NUKES AND MISSILES:

BY THE NUMBERS: Number of nuclear weapons not specified in report to Congress. Possibly more than a dozen, outside sources estimate. 50 ballistic missiles with 800-mile range, 6 KN08 missiles with a range of 3,400-plus miles, unknown number of Taepodong-2 missiles with roughly same or longer range. Possibly one submarine-launched ballistic missile. Various shorter-range ballistic missiles.

BEHIND THE NUMBERS: North Korea claims to have tested its first hydrogen bomb on Jan. 6, the day after the Department of Defense report came out. That claim has been disputed, but there is no doubt it has nuclear weapons and its technicians are hard at work boosting their quantity and quality. Major caveat here: The operational readiness of its nuclear weapons and many of its ballistic missiles is debatable.

Pyongyang’s main hurdles are making nuclear warheads small enough to fit on its missiles, testing re-entry vehicles required to deliver them to their targets on an intercontinental ballistic missile and improving and testing the arsenal for reliability and accuracy. Its Taepodong-2 ballistic missile is the militarized version of the rocket it launched on Feb. 8 with a satellite payload. North Korea has yet to demonstrate that it has a functioning ICBM, generally defined as having a range of over 3,418 miles.

CHEMICAL, BIOLOGICAL:

This one is a question mark. The U.S. Defense Department claims Pyongyang is continuing research and development into both, and could use them, but offered no details on biologicals in its recent assessment. It said Pyongyang “likely” has a stockpile of “nerve, blister, blood and choking agents” that could be delivered by artillery shells or ballistic missiles. The North is not a signatory of the Chemical Weapons Convention and its troops train to fight in a contaminated environment.

 

 

Hey SEALS, Turnover your Weapons

Twisted priorities at the Pentagon, mandated by the White House and congressional budgets, then couple that with waste, fraud and abuse, ladies and gentlemen, our problems are much worse than can be defined.

Just WHOA…

SOCOM investigating Navy SEAL weapons shortages

STRIPES: WASHINGTON — The general in charge of U.S. Special Operations Command said Tuesday that he is looking into claims that Navy SEALs and other elite forces have shortages of key equipment.

Gen. Joseph Votel assured House lawmakers that the command will resolve any problems that it discovers in equipping special operators, such as a lack of service weapons, in preparation for increasingly common missions around the world.

Rep. Duncan Hunter, R-Calif., and other House lawmakers raised the alarm earlier this month on supply shortages in the special operations community, causing soldiers to dip increasingly into their own pockets to purchase basic military gear such as helmets, global positioning devices and medical supplies.

Most concerning, according to Hunter, is SEALs are now asked to hand over their personalized weapons after returning from deployment so they can be handed off to other SEALs who are deploying.

“I look forward to talking to Navy Special Warfare Command about this specific issue and make sure we understand it,” said Votel, who was testifying to members of the House Armed Services Committee. “If there is something that we are contributing to that is impacting the readiness of our operators, we’ll certainly take immediate actions to kind of correct that.”

Votel said the issue might be related to maintenance and the high usage of SEAL weapons.

“These guys do put a lot of rounds through the weapons,” he said. “What we do try to do is ensure with that many rounds going through our weapons that they do have the right level of depot maintenance when they do come back from deployments or long training periods.”

Hunter, who wrote a letter in February to the Navy Special Warfare Command about the concerns, brushed aside the general’s suggestion.

“This is not a factor of too many rounds going through the weapon barrel, and then you just change out the barrel anyway,” Hunter said.

He said the weapons are the most important pieces of equipment for the SEALs. They put time into calibrating their weapons and applying optics and lasers, then are forced to turn them over for reconfiguration.

“I’ve had multiple SEALs at multiple times over the last six months come to me in San Diego … and tell me how things have changed dramatically from five or six years ago, meaning they don’t get weapons now to work up with for two years,” Hunter said. “They get their weapon when a guy comes back and hands over the weapon.”

The military has increased its reliance greatly on special operations forces since 9/11. As such operations hit a high mark, other reports of supply shortages have come up as well.

Last month, the nonprofit group Troops Direct reported the Marine Corps Fleet Anti-Terrorism Security Team deployed to Benghazi, Libya after the embassy attack there and lacked crucial equipment including sniper supplies and batteries.

Meanwhile, troops often have to buy their own medical equipment such as tourniquets, and shell out about $1,000 each for their own helmets or $500 for GPS devices, according to the group.

The shortfalls in SEAL weapons have surfaced, as the Navy Special Warfare Command budget increased by $11 million during the past couple of years, according to Hunter.

Rep. Richard Nugent, R-Fla., a member of the House Armed Services Committee, said he could not understand why the Navy would rotate SEALs’ service weapons and that he wanted answers.

“That’s the [weapon] you sleep with, the one you work with, so I will be interested to hear from Rep. Hunter the answer you come back with,” Nugent told Votel.

****

Lacking basic gear, special operators stuck buying their own equipment

STRIPES: WASHINGTON – Sean Matson, who recently left active-duty as a Navy SEAL, said the military measured his head four times – each time before deployment – with plans to provide him a more advanced ballistic helmet.

But the new helmet never materialized. During a deployment in Africa, Matson and six of his fellow SEALs each shelled out about $900 for updated helmets that held the lights, communications devices and batteries needed for their missions.

“There was never a clear solution to it, so guys were going out spending $800-$900 on their own ballistic helmet,” said Matson, who is now CEO of the military supply company Matbock.

Elite troops such as the SEALs are more and more forced to dip into their own pockets to purchase basic military gear such as helmets, global positioning devices and medical supplies, according to Matson and others involved in the military’s unofficial civilian-side supply network who came to Capitol Hill on Thursday.

House lawmakers have taken notice and said they will request an explanation from Defense Secretary Ash Carter.

“These are the guys we assume have the best gear all the time,” said Rep. Duncan Hunter, R-Calif., a Marine Corps combat veteran.

Hunter said special operations troops have been approaching him in his California district complaining about the inability to get needed materials and he has been investigating the issue.

Numerous individual instances point to a systemic problem in the military’s supply chain but a blind spot exists between Defense Department vendors and the troops who need the gear and supplies, Hunter said.

“It’s been impossible for me to find out how the money is getting stopped and why it is not going down to where it’s supposed to be,” he said.

Aaron Negherbon is the executive director of the nonprofit group Troops Direct, which ships needed and requested supplies – from boot laces to tablet devices — to servicemembers who cannot get it through their commands.

Less than two days after the attack on the U.S. embassy in Benghazi, Libya, Negherbon said he was contacted by the commander of a Marine Corps Fleet Anti-Terrorism Security Team that was being deployed there.

The commander told him the team lacked a variety of crucial equipment, including sniper supplies, he said.

“They came to us for…batteries because they didn’t have any of those … It is kind of like, ‘What the heck is going on?’” Negherbon said.

He said troops often have to buy their own medical equipment such as tourniquets, and shell out about $1,000 each for their own helmets or $500 for a GPS device that they need for duty during a deployment.

“The question is, why can’t you get this?” Negherbon said.

Often the answer seems to be a higher command does not have the money budgeted or the equipment was approved but not available from vendors.

“That is a good thing, we know where the problem is but [those issues] are very profound,” he said.

A small group of House Republican lawmakers gathered Thursday to hear the concerns.

Rep. Adam Kinzinger, R-Ill., an Air Force combat veteran, said the military has to weigh the concerns of supplying needed equipment with the desire of troops to always have the newest gear on the market.

Still, Kinzinger said the shortfalls in the supply chain could become a major issue if deployments ramp up again to the levels seen during the height of the Iraq and Afghanistan wars.

Rep. Chris Gibson, R-N.Y., an Army veteran, said the group should write a letter to Carter, saying they have serious concerns about supply breakdowns, including the inability of Matson and his fellow SEALs to get helmets capable of mounting lights, though the equipment was approved.

“If you’ve got a situation where unit is approved for an Ops-Core [brand ballistic] helmet and it’s not getting it, we need to understand what the problem is … that is unacceptable,” he said.

Hey Pentagon, Hiring Hackers, a Good Idea?

Personally I do see some positives, but I see more downsides….what say you?

The Department of Defense announced today that it will invite vetted hackers to test the department’s cybersecurity under a unique pilot program.  The “Hack the Pentagon” initiative is the first cyber bug bounty program in the history of the federal government.

 

Under the pilot program, the department will use commercial sector crowdsourcing to allow qualified participants to conduct vulnerability identification and analysis on the department’s public webpages.  The bug bounty program is modeled after similar competitions conducted by some of the nation’s biggest companies to improve the security and delivery of networks, products, and digital services. The pilot marks the first in a series of programs designed to test and find vulnerabilities in the department’s applications, websites, and networks.

 

Participants in the bug bounty will be required to register and submit to a background check prior to any involvement with the pilot program.  Once vetted, these hackers will participate in a controlled, limited duration program that will allow them to identify vulnerabilities on a predetermined department system.  Other networks, including the department’s critical, mission-facing systems will not be part of the bug bounty pilot program.  Participants in the competition could be eligible for monetary awards and other recognition.

This innovative project is a demonstration of Secretary Carter’s continued commitment to drive the Pentagon to identify new ways to improve the department’s security measures as our interests in cyberspace evolve.

Pentagon to Establish Defense Innovation Advisory Board

WASHINGTON, March 2, 2016 — In an effort to enhance the Defense Department’s culture, organization and processes by tapping innovators from the private sector in Silicon Valley and beyond, Defense Secretary Ash Carter announced plans today to establish a Defense Innovation Advisory Board, Pentagon Press Secretary Peter Cook said.

 Google, CEO

The initiative represents the secretary’s enduring commitment to building lasting partnerships between the public and private sectors, Cook said in a statement.

“Just as the Defense Business Board provides advice to the department on best business practices from the private sector, the Defense Innovation Advisory Board will provide advice on the best and latest practices in innovation that the department can emulate,” Cook added.

The board’s mandate is to provide department leaders independent advice on innovative and adaptive means to address future organizational and cultural challenges, the press secretary said, including the use of technology alternatives, streamlined project management processes and approaches — all with the goal of identifying quick solutions to DoD problems.

Areas Deeply Familiar in Silicon Valley

The board will seek to advise the department on areas that are deeply familiar to Silicon Valley companies, such as rapid prototyping, iterative product development, complex data analysis in business decision making, the use of mobile and cloud applications, and organizational information sharing, Cook said, and will not engage in discussion of military operations or strategy.

Alphabet Executive Chairman Eric Schmidt will chair the board, which will be composed of up to 12 people who have successfully led large private and public organizations and excelled at identifying and adopting new technology concepts, Cook said.

Carter and Schmidt will jointly select the board, Cook said. “Members will represent a cross-section of America’s most innovative industries, drawing on technical and management expertise from Silicon Valley and beyond,” he added.

As chairman of Alphabet and as the author of “How Google Works,” Schmidt has a unique perspective on the latest practices in harnessing and encouraging innovation and in the importance of technology in driving organizational behavior and business operations, Cook said.

**** Background

US spy chief James Clapper highlights cyber threats

BBC: US intelligence agencies have placed cyber attacks from foreign governments and criminals at the top of their list of threats to the country.

Online assaults would increasingly undermine US economic competitiveness and national security, said Director of National Intelligence James Clapper.

A report issued by his office said Russia’s military was setting up a cyber command to carry out attacks.

The report also describes China, Iran and North Korea as leading threats.

In testimony to a congressional committee on Thursday, Mr Clapper said he no longer believed the US faced “cyber Armageddon”.

The idea that major infrastructure such as financial networks or power grids could be disabled by hackers now looked less probable, he said.

However he warned: “We foresee an ongoing series of low-to-moderate level cyber attacks from a variety of sources over time, which will impose cumulative costs on US economic competitiveness and national security.”

Mr Clapper highlighted the case of Russia, which he said posed the greatest a cyber risk to US interests. He said that threat from the Russian government was “more severe” than previously realised.

He also said profit-minded criminals and ideologically driven hackers were also increasingly active.

Over the past year there have been a series of high-profile cyber attacks against US targets.

North Korea was accused of being behind the theft of a huge data cache from Sony Pictures in November.

Mr Clapper also mentioned the example of an alleged Iranian attack on the Las Vegas Sands Casino Corporation last year.

Meanwhile in January the Twitter and YouTube accounts of the US military command were hacked by a group claiming to back Islamic State (IS).

During the hearing, Mr Clapper acknowledged that the US had its own “offensive capabilities”.

In 2010 Iran experienced a cyber attack on its nuclear program. Tehran accused Israel and the US of planting malware.