UN Blacklists Israeli Companies

Posted on February 14, 2020February 14, 2020 by Denise Simon

Primer:Remember the United States crafted and offered a peace agreement between Israel, Hamas, the Palestinians just a few weeks ago. Reading below, note that ‘united nations’ is hardly what this blacklist encourages.

The UN High Commissioner for Human Rights published on Wednesday a “database” of companies doing business with Israeli settlements. The list includes 112 firms, 94 of them Israeli and the other 18 from six other countries, including the United States.

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The database was generated pursuant to Resolution 31/36, adopted by the UN Human Rights Council (UNHRC) on March 24, 2016, which calls upon the UN High Commissioner for Human Rights to produce a “database of all business enterprises” engaged in certain settlement-related activities in “the Occupied Palestinian Territory, including East Jerusalem.”

The database, also referred to as a blacklist, is inconsistent with U.S. law and policy. U.S. law, at 19 U.S.C. 4452(b)(4), states that Congress “opposes politically motivated actions that penalize or otherwise limit commercial relations specifically with Israel, such as boycotts of, divestment from, or sanctions against Israel.”

In addition, compliance with the blacklist could be inconsistent with the U.S. anti-boycott statute (50 U.S.C 4842), which has long been used to punish compliance with boycotts (and blacklists) fostered by the Arab League.

Boycotts spurred by the UNHRC and its blacklist would likely also run afoul of some or all of the two dozen U.S. state laws that require divestment from companies that boycott Israel (in some cases specifically defined to include Israeli settlements).

Compliance with a boycott fostered by the UNHRC and its blacklist may also cause U.S. companies to run afoul of the U.S. Treasury Department’s separate antiboycott regulations. The regulations implement the Ribicoff amendment to the Tax Reform Act of 1976. Internal Revenue Code section 999 requires U.S. taxpayers to report whether they (or corporations they control) have participated in or cooperated with boycotts not sanctioned by the U.S. government. According to the Treasury, U.S. persons who participate in such boycotts “may be subject to penalties that reduce their foreign tax credit, the benefits of foreign sales corporations, and the deferral available to U.S. shareholders of controlled foreign corporations.”

The blacklist also lacks a basis in international law. Indeed, international law does not prohibit business in disputed territories. Nor is doing such business inconsistent with the principles of corporate social responsibility (which are non-binding). That is the official view of the United Nations, expressed in its Global Compact document titled “Guidance on Responsible Business in Conflict-Affected and High-Risk Areas: A Resource for Companies and Investors.”

Finally, the legitimacy of the database is also thrown into doubt by the very makeup of the UNHRC, which includes as members many of the world’s worst human rights violators. Current UNHRC members sitting in judgment of Israel include the Democratic Republic of the Congo, Eritrea, Libya, Pakistan, Sudan, and Venezuela.

There are more than 100 territorial disputes in the world today, including in Crimea, Cyprus, Kashmir, Nagorno-Karabakh, Tibet, and Western Sahara. Yet only the West Bank and East Jerusalem were singled out for such a database. The decision to focus on Israel raises the question of whether the database is really about human rights, or rather about hypocritically bashing Israel.

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The list identified companies listed in the United States, France, the Netherlands, Luxembourg, Thailand and Britain.

Inclusion on the list had no immediate legal implications for the companies. But the issue is highly sensitive as companies named could be targeted for boycotts or divestment aimed at stepping up international pressure on Israel over its West Bank settlements.

Israeli President Reuven Rivlin expressed solidarity with the named businesses, saying, “Boycotting Israeli companies does not advance the cause of peace and does not build confidence between the sides.”

“We call on our friends around the world to speak out against this shameful initiative which reminds of dark periods in our history,” he added.

Israeli Prime Minister Benjamin Netnayahu said, “Whoever boycotts us will be boycotted. The UN Human Rights Council is a biased body that is devoid of influence. Not for nothing have I already ordered the severing of ties with it. It was also not for nothing that the American administration has taken this step together with us. In recent years, we have promoted laws in most US states, which determine that strong action is to be taken against whoever tries to boycott Israel. Therefore, this body is unimportant. Instead of the organization dealing with human rights, it only tries to disparage Israel. We strongly reject this contemptible effort.”

The head of Israel’s centrist Blue and White party — ex-IDF Chief of Staff Benny Gantz — tweeted, “A dark day for human rights. The UN high commissioner for human rights has lost touch with reality.”

Hillel Neuer — executive director of the Geneva-based UN Watch NGO — tweeted, “The list has no precedent & turns the UN into Ground Zero for the global anti-Israel boycott campaign.” More here.

US Navy Seizes Iran Ship with SAMs on Board

Posted on February 13, 2020February 13, 2020 by Denise Simon

Our turn eh? Hummm, the same say that the Senate votes to limit the President’s war power measures on declaring war with Iran, this event from last week hits the headlines. By the way, President Trump has never indicated he would go to war with Iran with or without Congressional approval so that whold bi-partisan measure in the Senate was just a formality…gesture.

The Senate passed a war powers resolution Thursday that constrains President Donald Trump’s ability to authorize military strikes against Iran.

The resolution from Democratic Sen. Tim Kaine received bipartisan support. It passed 55–45 with eight Republicans voting with Democrats in favor. However, Trump has signaled he will veto the resolution, and there are not enough votes in Congress to override the veto.

Kaine introduced the resolution in early January after escalating tensions with Iran culminated in an American strike killing Iranian general Qassem Soleimani and Iran responding by firing missiles at two American bases in Iraq. The administration gave Congress a briefing to justify the strike after the fact, which didn’t satisfy Democrats and infuriated two administration allies, Republican Reps. Mike Lee and Rand Paul.

“The nation should not be at war without a vote of Congress,” said Kaine Wednesday. “Even if he chooses to veto it and we can’t override, the will of both bodies and the public they represent, that could be a factor in his decision making.” h/t

Anyway, back to the SAMs…surface to air missiles…

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Ticonderoga-class guided-missile cruiser USS Normandy (CG-60) seized a cache of Iranian-made anti-tank missiles and other munitions aboard a dhow in the Arabian Sea over the weekend.

Normandy stopped the dhow while conducting maritime security operations over the weekend, in accordance with international law, according to a statement released Thursday by U.S. Central Command.

The seized weapons include:

150 Dehlavieh anti-tank missiles, which are Iranian-made version of the Russian Kornet anti-tank missiles
Three Iranian-made surface-to-air missiles
Thermal imaging weapon scopes
Components for manned and unmanned aerial and surface vessels

The CENTCOM statement noted that many of the munitions seized over the weekend by Normandy are similar to weapons and components seized in November by the crew of Arleigh Burke-class guided-missile destroyer USS Forrest Sherman (DDG-98).

The weapons included 358 surface-to-air missile components and ‘Dehlavieh’ anti-tank guided missiles (ATGM), intended for the Houthis in Yemen, aboard a stateless dhow during a maritime interdiction operation in the U.S. Fifth Fleet area of operations on Feb. 9, 2020. US Navy Photo

The weapons seized by Forrest Sherman were determined to be destined for Houthi rebels fighting in Yemen, according to CENTCOM. Houthi rebels have been fighting Saudi Arabian forces in Yemen for five years. The force has used unmanned aerial and surface vessels to attack Saudi Arabian forces in the past, using equipment that U.S. military experts say comes from Iran.

The shipment of weapons seized over the weekend would violate a United Nations Security Council resolution prohibiting the “direct or indirect supply, sale, or transfer of weapons to the Houthis,” the CENTCOM statement notes.

Hunter and The Truman National Security Project

Posted on February 13, 2020February 13, 2020 by Denise Simon

Turn the corner and we find yet another swampy organization where Hunter Biden had a parking space called the Truman National Security Project. Yeesh, this outfit is really a left-leaning organization founded by Rachel Kleinfeld. She is also a senior fellow at the Carnegie Endowment for International Peace.

The roster of young Truman fellows in high places includes Matthew Spence, who co-founded Truman with Kleinfeld and is now a senior aide to Obama’s National Security Adviser Tom Donilon, and Eric Lesser, who until he left for Harvard Law this summer worked in the White House, first as David Axelrod’s right-hand man and then as director of strategic planning for the Council of Economic Advisers. (He also organized the annual White House Seder.) Others have worked in the Department of Homeland Security, the House Permanent Select Committee on Intelligence and Committee on Foreign Affairs, and the Pentagon offices of the chairman of the Joint Chiefs of Staff. There are journalists, like Patrick Radden Keefe, and analyst-bloggers like Micah Zenko, of the Council on Foreign Relations. And there are people like Liz McNally, a West Point graduate and Rhodes Scholar who worked as a speechwriter for Gen. David Petraeus in Iraq—and who, in August, wound up on the cover of Time magazine under the headline “The New Greatest Generation.” More context and details here.

Okay, back to Hunter…

In 2011, two years into his father’s term as vice president, Hunter Biden was appointed by the Truman National Security Project, a left-leaning foreign policy network, to its board of directors. The younger Biden was, at the time, one of just six members of the governing board, where he served alongside the organization’s founder and CEO, Rachel Kleinfeld, and a handful of corporate leaders. He had no obvious qualifications for the position.

As the Truman Project expanded, Democratic national security heavyweights including Jake Sullivan, Hillary Clinton’s foreign policy guru who ran the Department of Policy Planning during her tenure at Foggy Bottom; Matthew Spence, a Defense Department veteran who served as a senior aide to Obama national security adviser Tom Donilon; and Steve Israel, the former Democratic congressman and head of the Democratic Congressional Campaign Committee, eventually joined Biden on the board.

A cached version of the organization’s website shows that Biden rose to the position of vice chairman of the board, serving there until at least March of 2019. It is not clear precisely when—or why—Biden stepped down from the board, and the Truman Project did not respond to requests for comment. But during his tenure on the board, according to the New Yorker, he was in and out of drug rehabilitation facilities several times and, in 2014, joined the board of the Ukrainian gas giant Burisma and was discharged from the U.S. Navy after he failed a drug test. He later claimed that cigarettes he had smoked outside a bar may have been, unbeknownst to him, laced with cocaine.

Founded in 2004 by Kleinfeld, a Yale University graduate and Rhodes Scholar, the Truman National Security Project was intended to mirror conservative think tanks like the Heritage Foundation and the American Enterprise Institute. Funded by the Ploughshares Fund, the organization awards dozens of fellowships every year and aims to mentor a new generation of Democratic foreign policy leaders.

(Sidebar: The Ploughshares Fund was a major funder promoting the Iran Nuclear deal and remember lil Ben Rhodes of the Obama White House later joined Ploughshares.)

Kleinfeld, who left the organization in 2013 and now serves as a senior fellow at the Carnegie Endowment for International Peace, did not respond to a request for comment. The Truman National Security Project did not return multiple requests for comment. A lawyer for Hunter Biden did not respond to a request for comment. A spokeswoman for John P. Driscoll, the chairman of the board of the Truman National Security Project, did not respond to a series of questions including why Biden was appointed to the board and when he stepped down from the position.

Kleinfeld has, however, written about her deep concern about corruption in Ukraine, writing in 2014, the year Biden joined Burisma’s board, that “Iraq’s fall on the heels of Ukraine’s collapse should be compelling. Curbing corruption before it tips into Kalashnikov-carrying rebels and public crucifixions is good security policy. And we need to get better at it.”

Biden was appointed to the Burisma board as the oil and gas giant faced a slew of corruption investigations involving its owner, Mikhail Zlochevsky, who was facing a money laundering investigation.

During Biden’s time on the board of the Truman Project, the organization joined a network of other left-leaning national-security oriented outlets with which it is closely linked, decried the Trump administration’s foreign policy initiatives and called for the resignation of Attorney General William Barr. Defend American Democracy, which identifies the Truman National Security Project as a “partner organization,” ran a national ad urging Americans to “hold the president accountable for abusing his office and risking national security for his own gain.”

Biden wasn’t the organization’s only connection to Burisma. Throughout his tenure on the board he sat alongside Sally Painter, the chief operating officer of the Washington, D.C., lobbying firm Blue Star Strategies, which was hired by Burisma to improve the company’s image in the United States. A November Wall Street Journal report detailed how Painter’s colleague, Karen Tramontano, used Biden’s name in an effort to secure meetings with senior State Department officials, though the paper said it was not clear “whether the younger Mr. Biden knew his name was being used by Blue Star in its contacts with State Department officials on Burisma’s behalf in early 2016.”

While it is unclear when, exactly, Burisma retained Blue Star Strategies, Biden and Painter were serving together on the Truman board while Blue Star was working for Burisma.

As a tax-exempt organization, the Truman National Security Project is required to file tax returns indicating whether any of its officers or key employees have a “business relationship” with any others. Though Burisma tapped Painter’s public relations outfit while Biden was a member of the board, the Truman Project answered “no.” It further indicated that its officers had been briefed on their duty to disclose any conflicts of interest and that it was “regularly and consistently” monitoring compliance with the policy.

Michael Breen, president and CEO of Human Rights First, who served as president and CEO of the Truman Project when the tax returns were filed, and who is identified on them as the individual who possesses the organization’s books and records, did not respond to phone calls or emails seeking comment.

Truman fellows can now be found throughout the D.C. foreign policy establishment. Former secretary of state Madeleine Albright; Senators Chris Coons (D., Del.), Tammy Duckworth (D., Ill.) and Kamala Harris (D., Calif.); and former undersecretary of defense for policy Michele Flournoy are board members of its sister organization, the Truman Center for National Policy.

The Truman National Security Project’s current president and CEO, Jenna Ben-Yehuda, whose contact information is not publicly listed on the organization’s website, did not respond to a request via Twitter for an appropriate point of contact for media inquiries. A page listing the group’s membership is “currently under construction,” according to the group’s website, and the email address listed for press inquiries was inoperative.

On Tuesday—even before his disappointing fifth place finish in New Hampshire—Joe Biden fled the state for South Carolina, where he is hoping African-American voters will revive his flagging campaign. If that hope proves futile, it will be in part because of the perception that, as vice president, Biden either used his name and influence to help friends and family or looked the other way while they did so at places like Burisma and the Truman National Security Project.

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As of June 2017, it is composed of 16 chapters from 47 different states across the nation and claims more than 1,600 members. It supports American leadership, using its defense and diplomacy in the world on issues involving shared security and democracy promotion abroad. Many of its members are former or current military personnel, diplomats, foreign policy lobbyists, and political activists. The Truman Project has been criticized for giving the impression that it is bipartisan and independent while being supportive of the Democratic Party.

Facebook Still Deleting Accounts Tied to Iran and Russia

Posted on February 13, 2020February 13, 2020 by Denise Simon

Social media giant Facebook on Wednesday removed two unconnected networks of accounts, pages, and groups “engaging in foreign or government interference,” one originating in Russia and the other one in Iran, both of which have alleged ties to intelligence services.

Calling the behavior “coordinated” and “inauthentic,” Facebook’s head of security policy, Nathaniel Gleicher, said both operations were acting on “behalf of a government or foreign actor.”

The Russian network primarily targeted Ukraine and its neighboring countries, while the Iranian operation focused mainly on the United States.

The people behind the groups and accounts “coordinated with one another and used fake accounts to misrepresent themselves, and that was the basis for our action,” the social-media company said.

In total, 78 accounts, 11 pages, 29 groups, and four Instagram accounts originating in Russia were removed.

Facebook’s investigation “found links to Russian and military intelligence services” within the Russian network.

The people behind the network would pose as citizen journalists and tried to contact policymakers, journalists, and other public figures in the region.

They would post content in Russian, English, and Ukrainian “about local and political news including public figures in Ukraine, Russian military engagement in Syria, alleged SBU (Ukrainian Security Service) leaks related to ethnic tensions in Crimea and the downing of the Malaysian airliner in Ukraine in 2014.”

Similarly, six Facebook and five Instagram accounts were removed originating in Iran that engaged in “coordinated inauthentic behavior.”

Some tried contacting public figures and they shared posts on such topics as the U.S. elections, Christianity, U.S.-Iran relations, U.S. immigration policy, and criticism of U.S. policies in the Middle East.

About 60 people had followed one or more of the Iran-based Instagram accounts, the media company said.

*** What there is more….

Add in Vietnam and Myanmar.

Per Facebook in part:

Each of them created networks of accounts to mislead others about who they were and what they were doing. We have shared information about our findings with industry partners.

We’re constantly working to detect and stop this type of activity because we don’t want our services to be used to manipulate people. We’re taking down these Pages, Groups and accounts based on their behavior, not the content they posted. In each of these cases, the people behind this activity coordinated with one another and used fake accounts to misrepresent themselves, and that was the basis for our action.

We are making progress rooting out this abuse, but as we’ve said before, it’s an ongoing challenge. We’re committed to continually improving to stay ahead. That means building better technology, hiring more people and working closer with law enforcement, security experts and other companies.The individuals behind this activity posed as locals and used fake accounts — some of which had already been detected and disabled by our automated systems — to manage Groups and Pages, post and comment on various content. Some of these accounts represented themselves as citizen journalists and tried to contact policymakers, journalists and other public figures in the region.

Read more here for more fake news sampling noted by Facebook.

Chinese Spy Leading California Public Pension Fund?

Posted on February 13, 2020February 13, 2020 by Denise Simon

This may add some very new and different questions when it comes to the Biden foreign operations….read on….

Rep. Jim Banks, R-Ind., joined “Mornings with Maria” to explain why he wrote a letter to California Gov. Gavin Newsom highlighting his concerns about the state public pension fund’s chief investment officer having ties to China.

The fund has invested $3.1 billion in Chinese companies, some of which have been blacklisted by the U.S. government, Banks told FOX Business’ Maria Bartiromo.

“If this were up to me, I would fire [Chief Investment Officer Yu Ben Meng] immediately because of these suspicious ties,” he said. “We learned that Mr. Meng, who is the chief investment officer of CalPERS, was actually recruited to this position by the [Chinese Communist Party] through something called the Thousand Talents Program. Now he’s denied it.”

CalPERS stands for the California Public Employees’ Retirement System, the largest public pension fund in the nation.

“What is unusual is that many of these companies are companies that we’ve blacklisted, that make Chinese military equipment or are responsible for technologies like Hikvision, which is the equipment that’s used by the Chinese for surveillance on the Uighur Muslim population that they’ve been abusing in their own country,” Banks said.

The Commerce Department blacklisted Hikvision in October “for engaging in or enabling activities contrary to the foreign policy interests of the United States.”

CalPERS defended Meng.

“This is a reprehensible attack on a U.S. citizen. We fully stand behind our Chief Investment Officer who came to CalPERS with a stellar international reputation,” a CalPERS spokeswoman told Reuters.

Hold on, it is actually worse… going back 4 months ago….

(Reuters) – Some of the biggest public pensions funds in the United States have invested in one of the world’s largest purveyors of video surveillance systems that the U.S. government claims are used in wide-scale repression of the Muslim population of western China.

The Trump administration’s decision to put the company, Hangzhou Hikvision Digital Technology Co (002415.SZ), on a blacklist last week has prompted at least two of the pension plans to say they are reviewing or monitoring that development.

The blacklist applies to Hikvision and seven other companies because they allegedly enabled the crackdown that has led to mass arbitrary detentions in the Xinjiang region.

“We are tracking the situation given this new development with the Department of Commerce’s announcement,” a spokeswoman for the California State Teachers’ Retirement System (CalSTRS) said in an email.

CalSTRS owned 4.35 million Hikvision shares at the end of June 30, 2018, the last data available. The holding, owned directly and through emerging market exchange-traded funds, would be worth $24 million at that share count.

The New York State Teachers Retirement System also owned Hikvision, reporting 81,802 shares at the end of June, up from 26,402 shares at the end of 2018, fund disclosures show.

“Our holdings are primarily held according to their weights in passive portfolios matching the MSCI ACWI ex-U.S. index, our policy benchmark. We are monitoring the situation,” said a spokesman for the teachers’ fund. The ex-U.S. All Country World Index includes stocks from 22 developed and emerging markets.

The blacklisting means Hikvision and the other companies will not be able to buy U.S. technology, such as software and microchips, without specific U.S. government approval. It does not prevent U.S. investors from buying the companies’ shares. In August, Hikvision had been banned from selling to U.S. federal agencies because the government said its products could allow access to sensitive systems.

Hikvision’s General Manager Hu Yangzhong told Reuters on Wednesday it has been talking to the U.S. government about Xinjiang and has hired human rights lawyers to defend itself against the blacklisting.

A spokeswoman for law firm Sidley Austin LLP, which has lobbied for Hikvision this year, declined to comment.

Another major fund investing in Hikvision shares is the Florida Retirement System (FRS), with 1.8 million shares at the end of June.

A spokesman for the fund said it was working closely with external money managers “related to the issue in order to meet all regulatory and fiduciary requirements.”

POSTER CHILD

Risk consultants say the ease with which money used for the retirements of tens of millions of Americans is being invested in such companies should concern U.S. authorities at every level, as well as Americans generally.

“Hikvision has emerged as the corporate poster child for enabling Chinese human rights abuses, with its surveillance cameras visible atop the walls of detention camps incarcerating some one million or more Uighurs in Xinjiang,” said Roger Robinson, president and CEO of Washington DC-based risk consultancy RWR Advisory Group.

Beijing denies any mistreatment of people at the camps, which it says provide vocational training to help stamp out religious extremism and teach new work skills.

Robinson said that many Americans are unwittingly owning shares in such companies because they are in index funds. “They are picked up by the index providers in sizable numbers and sluiced into U.S. investor portfolios with seemingly very little, if any, due diligence or disclosure in the categories of national security and human rights.”

MSCI Inc (MSCI.N), whose products are designed for global investors, added Hikvision to its benchmark emerging markets index last year. MSCI declined to comment.

One other company among the blacklisted eight that is owned by some of the big pension funds is iFlytek Co Ltd (002230.SZ), a speech-recognition firm. Its shares were owned by funds in Florida, New York State as well as CalSTRS and the California Public Employees Retirement System (CalPERS) indirectly through the iShares MSCI Emerging Markets ETF at their last disclosure dates. IShares, a top ETF provider owned by BlackRock Inc (BLK.N), declined to comment.

CUTTING TIES

Not all the funds have stuck with Hikvision.

The New York State Common Fund, one of the country’s biggest pension funds, liquidated its position months ago. It had owned 2.7 million shares worth $14.2 million at the end of March through an external fund manager, but sold them in May, a spokesman said, declining to say why.

U.S. mutual funds have also cut or eliminated positions in Hikvision amid the negative publicity, which included it being named in a Human Rights Watch report on mass surveillance in Xinjiang in May.

Just 9% of global emerging markets funds now own Hikvision, down from 20% in 2018, according to Copley Fund Research. One fund to pull out is the $2.7 billion Artisan Developing World Fund (APDYX.O), which had a $66 million position in Hikvision at the end of March but reported holding no shares three months later, fund disclosures show. Artisan did not respond to a request for comment.

At least one U.S. pension fund had worried this summer about whether to invest in the Chinese surveillance company.

The $33 billion Alaska Permanent Fund had considered an investment in a China fund featuring Hikvision as a top holding, according to minutes of a June meeting of its trustees and staff. The minutes were published last month.

Schroders Global Asset Management, a finalist for the fund’s mainland China investment mandate, touted Hikvision as a top performer.

Some Alaska trustees, however, worried about “headline risks” of investing in companies that aid the Chinese government’s surveillance activities, according to the minutes.

Jack Lee, portfolio manager of the China fund, assured Alaska pension officials he had spoken with Hikvision executives. Hikvision will “try to avoid that kind of business,” the trustees were told, but “they don’t necessarily know how their equipment is used,” Lee told the trustees, according to the minutes.

Reuters could not determine whether Alaska made an investment in the Schroders fund that included Hikvision stock.

A spokeswoman for the Alaska Retirement Management Board, which oversees the pension, said it does not have any additional information to share regarding Schroders’ efforts. A Schroders spokesman declined to comment.