NSA Chief Testimony, Cyber Security Threats and Solutions

French presidential candidate Marcon was hacked on Friday before the Sunday voting. Per the NSA Chief, U.S. Tipped Off France on the Russia hacks. The U.S. tipped off France when it saw that Russians were carrying out cyberattacks targeting French President-elect Emmanuel Macron, NSA chief Adm. Mike Rogers told a Senate panel on Tuesday. Macron’s campaign revealed it was hacked just hours before a campaigning blackout in the country ahead of the presidential election on Sunday. Macron ended up handily defeating his rival, Putin-backed Marine Le Pen. “We had become aware of Russian activity. We had talked to our French counterparts and gave them a heads-up—‘Look, we’re watching the Russians. We’re seeing them penetrate some of your infrastructure. Here’s what we’ve seen. What can we do to try to assist?’” Rogers told the Senate Armed Services Committee.

*** Meanwhile….there is no strategy or policy position on U.S. cyber warfare. However…

Next Steps for U.S. Cybersecurity in the Trump Administration: Active Cyber Defense

The failure of the government to provide adequate protection has led many cybersecurity analysts, scholars, and policymakers to suggest that there is a need for private-sector self-help. If the government is unable or unwilling to take or threaten credible offensive actions to deter cyberattacks or to punish those who engage in them, it may be incumbent upon private-sector actors to take up an active defense. In other words, the private sector may wish to take actions that go beyond protective software, firewalls, and other passive screening methods—and instead actively deceive, identify, or retaliate against hackers to raise their costs for conducting cyberattacks. Taking into consideration U.S., foreign, and international law, the U.S. should expressly allow active defenses that annoy adversaries while allowing only certified actors to engage in attribution-level active defenses. More aggressive active defenses that could be considered counterattacks should be taken only by law enforcement or in close collaboration with them.

Key Takeaways

If the government is unable or unwilling to deter cyberattacks, it may be incumbent upon private-sector actors to take up an active defense.

Before the U.S. authorizes private hack back, it must consider not only U.S. laws, but also foreign and international laws governing cyberspace.

Congress should establish a new active cyber defense system that enables the private sector to identify and respond to hackers more effectively.

***

Heritage: Americans want their cyber data to be safe from prying eyes. They also want the government to be able to catch criminals. Can they have both?

It’s an especially pertinent question to ask at a time when concerns over Russian hacking are prevalent. Can we expose lawbreakers without also putting law-abiders at greater risk? After all, the same iPhone that makes life easier for ordinary Americans also makes life easier for criminals.

Manhattan District Attorney Cyrus Vance Jr. has described the operating system of the iPhone as “warrant-proof,” saying criminals are using the devices – encrypted by default – to their advantage. In one instance, he quoted an inmate who, ironically, called the iPhone a “gift from God.”

Divine involvement is a matter of debate, but there’s no question that when it comes to the choice of breaking the cybersecurity of criminals without also endangering the personal data of ordinary Americans, well, the devil is in the details.

This is especially true given the evolving nature of the threat. Even if we wanted to give the government access to all the metadata it wants (when, where, and who called), technology is moving away from phone calls to text messages and other non-telephony applications. Traditional metadata will be of limited use to law enforcement in pursuit of the savvy criminal of the future. Law enforcement needs to develop new strategies and investigative techniques without making us all prey.

It’s nearly impossible to assess the total monetary value for all successfully prosecuted cybercrimes in the U.S., let alone estimate the number of criminal cases that would have fallen apart without access to a smartphone’s data. The Department of Justice doesn’t publish such data. But, according to the 2014 Center for Strategic and International Studies report “Net Losses: Estimating the Global Cost of Cybercrime,” global cybercriminal activity is valued at $400 billion a year. Cybercrime damages trade, reduces competitiveness, and limits innovation and global growth.

The fundamental problem is that no one in the government is responsible for securing the internet for all of us. The Department of Homeland Security is responsible for safeguarding our nation’s critical infrastructure, yet the insecure internet presents cyberthreats to non-enterprise users affect individual security, safety and economic prosperity. Who is responsible for their security?

Some elements of the federal government are so focused on hunting down information against a few horrendous criminals that they don’t seem to realize they’re doing it at the expense of our right to privacy and online protection. We can appreciate their dedication in these noble causes, but the fact remains that the internet has become a host to more and more personal information ever since Steve Jobs introduced the first iPhone.

Since then, the smartphone has evolved to have much more control over our lives, homes and vehicles. There is no sign of less data being held in the cyberspace.

In attempting to square this cyber-circle, the government would be wise to take a cue from the medical profession, which uses the Hippocratic oath to dictate an underlying requirement to refrain from causing harm to patients.

There is no such oath for members of the Department of Justice. They simply affirm that they will faithfully execute their duties without affirming that they will do so without harming the citizenry as a whole.

DOJ lawyers focus on individual prosecutions. That is too narrow of a definition of success. It forces them to use all means they can muster to make their prosecutions successful with little or no consideration of the larger harm their efforts may cause to the population in general.

That is a problem today and will only be magnified in the coming years as technology advances and the gap between those advances and the DOJ’s understanding of them widens. Within this environment, where insecurity breed’s criminality and stopping individual high-value criminals can motivate the DOJ to undermine security, one can only wonder, who is responsible for our security?

The world has changed. A new paradigm is needed to ensure the safety and security of all American’s data predicated on applying airtight security to our data. There is no return to the past. Perhaps the Trump administration will make this need for security a priority in a manner the previous administration did not.

WH Visitor Logs Sequestered, but here is the list

This is a product of Politico but with shame, Politico wanted to add the race and gender as a twist to the article. Anyway, this Trump White House is busy for sure.

Image result for trump white house Zimbio

The process and methodology on how Politico compile this report and summary is noted at the base of the post.

The people who have met with Donald Trump since he became president tend to have a lot in common, according to a database POLITICO compiled from public documents, media accounts and its own reporting: They’re mostly male, largely Republican and often rich.

Of the more than 1,200 people who have had direct access to the president as of Monday night, the majority — about 80 percent — are white. And almost 63 percent are white men.

Trump has huddled with at least 270 business executives and nearly 350 politicians — mainly Republicans but also dozens of Democrats. And he’s met in person or spoken by phone with 47 world leaders, most often the leaders of Japan and Germany, plus a vast grab bag of other figures, from pro golfers to rocker Ted Nugent to Matt Drudge.

Aside from Democrats in Congress, Trump has met with relatively few ideological opponents, according to the data. But there have been a number of exceptions: Zeke Emanuel, a doctor who served in the Obama administration and helped design Obamacare, took part in an Oval Office discussion in March, and the president has spoken with several CEOs who had previously donated to Democratic politicians.

This database is inevitably incomplete, partly because the White House — unlike the Obama administration — refuses to release a public log of its visitors. (Barack Obama’s version was not a full record of all his meetings either, of course.) Official White House media advisories about Trump’s activities have also left out information at times, failing to mention his encounters with Drudge or former Alaska Gov. Sarah Palin.

But POLITICO has compiled its own log, drawn from sources including White House schedules, news stories and pool reports filed by reporters who follow the president’s travels. The dataset is the most comprehensive public list available of the people who have had access to the president since Jan. 20, either in the White House, on the phone or in locations such as Mar-a-Lago.

Information about who meets with the president would be valuable to understanding any administration, offering a window into the range of interest groups and personalities that have an opportunity to shape the White House’s deliberations. That may be doubly true for Trump, who has been known to make decisions on the fly based on even brief conversations — for example, the 10-minute exchange with Chinese President Xi Jinping that he says changed his thinking about China’s influence on North Korea.

People who have met with Trump say he has a surprisingly informal and improvisational style, sometimes scheduling last-minute meetings after seeing people on cable television. The president is said to make frequent calls at night to his friends and trusted outside advisers, and he often holds court with Mar-a-Lago members during his trips to the club in Palm Beach, Florida.

The White House did not respond to repeated requests for comment on this story.

POLITICO will continue to update its records based on feedback from readers and sources inside and outside the administration. For now, here’s a breakdown of what it has found:

Business executives

Trump has talked to or appeared at events with at least 270 business executives, from JPMorgan Chase chief Jamie Dimon to PepsiCo’s Indra Nooyi and United Airlines’ Oscar Munoz.

About 75 percent of the executives who have gotten time with Trump are white men, according to POLITICO’s analysis. That lack of diversity also reflects the reality at many large companies: According to Forbes, women made up just 4.2 percent of the CEOs last year at the 500 largest U.S. companies. And a recent study found that women and minorities make up just 31 percent of the 500 largest U.S. companies’ boards.

Executives representing the finance, manufacturing, auto and energy industries met with Trump most frequently, according to POLITICO’s analysis.

Although all presidents have met with business leaders, Trump, a career businessman, seems particularly comfortable with them. These meetings also foster the public view Trump cultivated while sitting in the biggest chair in the boardroom on his TV series Celebrity Apprentice.

Meg Jacobs, a research scholar at Princeton University who has studied business-government relations, said the meetings with executives project the image “that he can get deals done, he’s a negotiator, a wheeler-dealer and he’s loved and effective.”

And this comfort with CEOs comes across in their meetings. Corporate heads who have met with Trump describe him as curious about which regulations hurt their bottom lines.

“He’s not, from the normal characterization of him, or even from his own tweets sometimes, what you would expect,” said Robert Murray, an outspoken Trump supporter who heads the coal company Murray Energy.

During the campaign, Trump spoke out against Wall Street and Big Business, running as a populist who would “drain the swamp” of Washington influence. For any executive who may have found that rhetoric unnerving, publicly meeting with CEOs sends a reassuring message that Trump will follow the classic Republican playbook of tax cuts and deregulation.

“Not a single member of the Obama administration made anyone from the coal industry welcome, nor would they give us any meetings,” said Murray, who has appeared with Trump twice since he took office. “We have a government now that’s wanting to hear on behalf of the electric power grid and the coal miners.”

Business executives’ priorities often align closely with Trump’s policy agenda. Murray, for example, said the administration has already tackled the first four agenda items on a list of policy recommendations he provided to Trump and Vice President Mike Pence.

Watchdog groups expressed concern over Trump’s heavy interaction with executives.

“There’s a risk of crony capitalism. Individual business leaders are very good at advocating for their individual company’s situation,” said Nick Schwellenbach, director of investigations at the Project on Government Oversight. “That does not necessarily translate to being better for the economy as a whole.”

Foreign leaders

Trump has spoken to or met with at least 47 world leaders since his inauguration. He has most frequently been in contact with German Chancellor Angela Merkel, Japanese Prime Minister Shinzo Abe, Canadian Prime Minister Justin Trudeau, British Prime Minister Theresa May and China’s Xi, based on POLITICO’s analysis.

Abe and Merkel are tied in the data for the most publicly announced interactions with the president, with the records showing that each leader has met with or talked to Trump seven times. Those include their visits to the United States, where Merkel huddled with Trump at the White House and Abe visited Mar-a-Lago.

Who is President Trump meeting with?

47
Foreign leaders

Trump’s meetings reflect his foreign policy objectives, including concerns about North Korea’s aggression — Trump has spoken with South Korea’s acting president, Hwang Kyo-ahn, at least three times — and his ongoing deliberation about how to interact with the European Union.

The president has also made frequent contact with Middle Eastern and North African leaders, including Egyptian President Abdel Fattah el-Sisi (two phone calls and one in-person meeting), Iraqi Prime Minister Haider al-Abadi (two phone calls and one in-person meeting) and Tunisian President Beji Caid Essebsi (three phone calls), as well as top officials from Saudi Arabia, Kuwait, Qatar and the United Arab Emirates.

Politicians

Trump has wooed nearly 350 politicians of both parties since taking office. And according to POLITICO’s data, congressional Republican leaders Mitch McConnell, Paul Ryan, Kevin McCarthy and Steve Scalise have been his most regular guests as he pursued priorities including his push for health care legislation.

But Trump has also met with Democrats, including critics like Maryland Rep. Elijah Cummings, who later said he had told the president his rhetoric has been “hurtful” to African-Americans. Democratic House leaders Nancy Pelosi and Steny Hoyer also got time with Trump.

Still, his meetings have had a decidedly partisan tilt: He’s met with at least 250 Republican politicians and 92 Democrats, according to POLITICO’s records.

Who is President Trump meeting with?

250
Republican politicians
92
Democratic politicians

One of Trump’s home-state senators and frequent sparring partners, Senate Minority Leader Chuck Schumer (D-N.Y.), has visited the White House at least five times. Trump has also seemingly taken a liking to Democratic Sen. Joe Manchin, the moderate West Virginian who faces a contentious reelection fight in 2018 in a state Trump won handily. Trump and Manchin have met at least four times, more than any other Democratic senator except Schumer.

He’s also mingled with his former rivals on the campaign trail more than other Republican senators, based on the data. Trump has met with Florida Sen. Marco Rubio at least five times, and with Ted Cruz of Texas and Rand Paul of Kentucky at least four times apiece, including a golf outing with Paul.

Alaska’s Republican senators, Dan Sullivan and Lisa Murkowski, have both had above-average face time with the president, with at least five interactions for Sullivan and four for Murkowski.

One early Trump supporter, Georgia Republican Sen. David Perdue, has been rewarded for his loyalty, with at least five interactions with the president. The first-term senator is said to be close to members of Trump’s inner circle.

Florida Gov. Rick Scott has been Trump’s most frequent gubernatorial guest, with at least four interactions. He’s also met at least three times with New Jersey’s Chris Christie, a former presidential rival who briefly headed his transition, and is said to speak with Christie more frequently.

Cabinet secretaries

Secretary of State Rex Tillerson spent Trump’s earliest weeks enduring a reputation as a social outcast in the administration. But his stock has risen as he’s taken a leading role on Syria, Russia, North Korea and China — and the records show he has had more publicly disclosed direct contact with Trump than anyone else in the Cabinet.

Tillerson has met with the president at least 22 times, according to the analysis.

Treasury Secretary Steven Mnuchin, Homeland Security Secretary John Kelly, national security adviser H.R. McMaster and Transportation Secretary Elaine Chao also have had frequent interactions with Trump.

Commerce Secretary Wilbur Ross has also emerged as one of Trump’s go-to Cabinet officials, having joined the president repeatedly at Mar-a-Lago.

Others appear to have spent little time with Trump. POLITICO could document only four instances in which Housing and Urban Development Secretary Ben Carson has met with the president since he’s taken office, and just three for Energy Secretary Rick Perry.

The rest

Trump has met with a wide range of other figures. Trump welcomed Palin, Nugent and musician Kid Rock in April to the White House, where they posed mockingly underneath a portrait of Hillary Clinton.

An avid golfer, Trump played rounds with Rory McIlroy and Ernie Els on one of his Florida golf courses in February, which led to online blowback from some of the golfers’ fans. Former Yankees closer Mariano Rivera also sat down with Trump as part of a meeting on the opioid epidemic.

Trump reunited with friends Robert Kraft and Bill Belichick when they visited the White House with their Super Bowl champion New England Patriots in April. Some Patriots skipped the event to protest Trump’s policies, though Trump friend Tom Brady was absent as well. Team owner Kraft, a frequent guest at Mar-a-Lago, has enjoyed unprecedented access to the president, even sitting in on his dinner at the Palm Beach resort with the Japanese prime minister.

Trump has held more traditional meetings and photo opportunities, ranging from the presidents of historically black colleges and universities to Medal of Honor recipients. He’s also met with female small-business leaders and America’s national and state teachers of the year.

The president has also engaged conservative leaders during his first 100 days, meeting with them to discuss health care, abortion and other topics of interest. Former campaign manager Corey Lewandowski has been spotted at the White House, as has conservative radio firebrand Laura Ingraham. Fox News mogul Rupert Murdoch reportedly speaks with Trump weekly, and Fox anchor and Trump defender Sean Hannity also advises the president.

Trump has also granted at least 33 interviews with at least 22 news outlets since taking office, not counting off-the-record meetings. While Fox has been Trump’s outlet of choice, The New York Times places second in access to the president, with Times political correspondent Maggie Haberman interviewing him at least three times.

Methodology

This analysis includes publicly available information, media reports and POLITICO reporting regarding meetings President Donald Trump has held since his inauguration. This includes executive order signings, White House meetings, public appearances, phone calls and interactions at Mar-a-Lago. Some events, such as the White House Easter egg roll, inauguration and others were not included because interactions with the president were superficial.

The analysis does not include Trump’s meetings with White House aides or meetings held by Vice President Mike Pence or other administration officials. Trump family members are also not included. It is limited by access to full guest lists as well as knowledge about whom Trump speaks with daily.

Individuals’ races were determined according to definitions used by the U.S. Census Bureau, except in the case of Hispanics, who were treated as a separate racial group for the purposes of this database.

China Gave Trump an Ultimatum to Deal with N. Korea?

 China urged the United States to sack the head of the U.S. Pacific Command in return for exerting more pressure on North Korea amid concerns over its growing nuclear and missile threats, a source close to U.S.-China ties said Saturday.

The Chinese leadership headed by President Xi Jinping made the request, through its ambassador in the United States, to dismiss Adm. Harry Harris, known as a hard-liner on China, including with respect to the South China Sea issue, the source said.

China urged U.S. to fire Pacific Command chief Harris in return for pressure on North KoreaAdm. Harry Harris, head of the U.S. Pacific Command, addresses the Lowy Institute think tank in Sydney last December. | AFP-JIJI

China’s envoy to the United States, Cui Tiankai, conveyed the request to the U.S. side, to coincide with the first face-to-face, two-day meeting between President Donald Trump and Xi in Florida from April 6, but the Trump administration likely rejected it, the source said.

China is a longtime economic and diplomatic benefactor of North Korea.

As the head of Pacific Command, Harris, who was born in Japan and raised in the United States, plays a vital role in the security of the region.

He was responsible in ordering last month the dispatch of the USS Carl Vinson aircraft carrier to waters near off the Korean Peninsula in a show of force amid signs the North was preparing to test-fire another ballistic missile or conduct a sixth nuclear test.

The Trump administration has called for exerting “maximum pressure” on North Korea to prod it to give up its nuclear and missile programs. The administration has said all options — including a military strikes — remain on the table.

Harris has pushed for the U.S. deployment of the advanced Terminal High Altitude Area Defense (THAAD) anti-missile system to South Korea. China has opposed the deployment, saying it could undermine its security interests and the strategic balance of the region.

He has also called for continuing U.S. “freedom of navigation” operations in the contested South China Sea. Overlapping territorial claims, as well as land construction and militarization of outposts in disputed areas in the sea, remain a source of tension in the region.

According to the source, Cui also asked the Trump administration not to label China as a currency manipulator. As per the request, the United States did not label China as such, in light of Beijing’s role in helping Washington deal with the North Korean issue.

*** Related reading: 2013 Study Finds North Korea Has Indigenous Capabilities to Produce Nuclear Weapons

An example of the open-source evidence used for Kemp's study: A 2011 image from a television broadcast in North Korea showing Kim-Jong Il inspecting a flow-forming machine located in an underground tunnel. This type of machine is able to produce centrifuge rotors for North Korea's uranium-enrichment program.

An example of the open-source evidence used for Kemp’s study: A 2011 image from a television broadcast in North Korea showing Kim-Jong Il inspecting a flow-forming machine located in an underground tunnel. This type of machine is able to produce centrifuge rotors for North Korea’s uranium-enrichment program.

***

Is the United States partners in the Asia Pacific region ready to deal with 5000 tunnels and an underground operation?

Image result for north korea underground tunnel  The entrance of an ‘intrusion tunnel’ under the DMZ between South and North Korea, Telegraph

North Korea’s Secret Strategy in a War with America: Go Underground

North Korea, one of the most secretive countries in the world, is no stranger to building underground military facilities. Whether a tunnel dug under the demilitarized zone designed to pass thousands of troops an hour, or bunkers to accommodate the regime’s leadership, North Korea has built extensive underground facilities designed to give it an edge in wartime.

One of the earliest examples of North Korean underground engineering was the discovery of several tunnels leading from North Korea under the demilitarized zone to South Korea. The first tunnel was located in 1974, extending one kilometer south of the DMZ. The tunnel was large enough to move up to two thousand troops per hour under the DMZ. A U.S. Navy officer and South Korean Marine corporal were killed by a booby trap while investigating the tunnel. Thanks to a tip from a North Korean defector, an even larger tunnel was discovered in 1978, a mile long and nearly seven feet wide.

Since then at least four tunnels have been discovered, with reinforced concrete slabs, electricity for lighting and fresh air generation, and narrow railway gauges to shuttle dirt and rock back to the tunnel entrance. Collectively, the four tunnels would have likely been able to move a brigade’s worth of troops an hour under South Korea’s defenses.

It’s difficult to determine how many tunnels exist. One report says that Kim Il-sung, the founder of the North Korean state and Kim Jong-un’s grandfather, ordered each of the ten frontline combat divisions to dig two tunnels. If completed, that would theoretically mean another dozen or so tunnels remain undiscovered. A former South Korean general, Han Sung-chu, claims there are at least eighty-four tunnels—some reaching as far as downtown Seoul. The South Korean government does not believe Han’s numbers—nor the claimed ability to reach Seoul—are credible. A forty-mile tunnel would reportedly generate a seven-hundred-thousand-ton debris pile, which has not been picked up by satellite. Despite the warnings, the last major tunnel was discovered in 1990 and South Korea seems to believe that the tunneling danger has passed.

If it has passed, it may be because North Korea has decided to tunnel in different ways. The North Korean People’s Liberation Army Air Force is believed to have three different underground air bases at Wonsan, Jangjin and Onchun. The underground base at Wonsan reportedly includes a runway 5,900 feet long and ninety feet wide that passes through a mountain. According to a defector, during wartime NK PLAAF aircraft, including MiG-29 fighters and Su-25 Frogfoot ground-attack aircraft, would take off from conventional air bases but return to underground air bases. This is plausible, as one would expect North Korean air bases to be quickly destroyed during wartime.

Another underground development is a series of troop bunkers near the DMZ. A North Korean defector disclosed that, starting in 2004, North Korea began building bunkers capable of concealing between 1,500 and two thousand fully armed combat troops near the border. At least eight hundred bunkers were built, not including decoys, meant to conceal units such as light-infantry brigades and keep them rested until the start of an invasion.

Other underground facilities are believed to have been constructed to shelter the North’s leadership. According to a South Korean military journal, the United States believes there are between six thousand and eight thousand such shelters scattered across the country. This information was reportedly gathered from defectors in order to hunt down regime members in the event of war or government collapse.

North Korea is believed to have hundreds of artillery-concealing caves just north of the DMZ. Known as Hardened Artillery Sites, or HARTS, these are usually tunneled into the sides of mountains. An artillery piece, such as a 170-millimeter Koksan gun or 240-millimeter multiple-launch rocket system, can fire from the mouth of the cave and then withdraw into the safety of the mountain to reload. These sites are used to provide artillery support for an invasion of South Korea or direct fire against Seoul itself. As of 1986, and estimated two hundred to five hundred HARTS were thought to exist.

According to a report by the Nautilus Institute, North Korea is also thought to have “radar sites in elevator shafts that can be raised up like a submarine periscope; submarine and missile patrol boat bases in tunnels hewn in rock; tunnels a kilometer or more in length for storing vehicles and supplies, or to hide the population of a nearby city.”

How would the United States and South Korea deal with these underground facilities in wartime? First, it would have to locate the facilities. These facilities are hard to spot via satellite, and gleaning information from defectors is perhaps the best way to learn about them in peacetime. Once war commences, signal intelligence will pick up radio transmissions from previously unknown underground locations, enemy troops will from concealed positions or tunnel entrances, and artillery counter-battery radars will fix the positions of HARTS. It is likely that, despite advance preparations, many of these positions will be a surprise to Washington and Seoul.

Once located, there are three ways of dealing with the sites. The first and safest way to deal with them is to bomb them from above. This presents the least risk to allied forces, but it will also prove difficult to determine whether air or artillery strikes have had good effect. The use of bombs or artillery shells may cause cave-ins that prevent allied forces from entering an underground complex and exploiting any intelligence found inside.

Another option is to simply station troops outside tunnels and shoot anyone who ventures outside. While also a safer option, an underground complex will always have multiple exits—the tunnels Kim Il-sung ordered his divisions to dig were to each have four or five exit points. The most thorough way to deal with the tunnels would be to enter them. This would be by far the most effective way to deal with regime holdouts, but also the most dangerous.

Pyongyang’s eventual defeat in any wartime scenario is a given, but its underground headquarters, fortifications and troop depots have the potential to not only enhance the Korean People’s Army’s ability to mount a surprise attack, but also to prolong the war, confounding the high-tech armed forces of its adversaries. Such underground shelters, wherever they are, will likely be the site of the endgame phase of the war, as the regime is driven underground by rapidly advancing allied forces. Only then will we discover the true extent of North Korea’s extensive underground empire.

Syria: Memorandum signed, De-escalation Zones are NOT Safe Zones

This is terrifying for the Syrian people that remain in country and just as bad as the millions of refugees, noted to be about 11 million that have fled the country. Their hopes of ever returning to their home country fades each day.

It is also notable that the United States and coalition countries do have boots on the ground in Syria and the matter of an offensive operation to liberate Raqqa Syria, the headquarters for Islamic State is not even mentioned in this newly signed document. There is no mention of the United States operations in Syria along with other allied countries. Are the skies to be conflicted again? Any mention of the use of U.S. operations out of Incirlik, Turkey? Nope.

Some will read this and reply that the United States has no interest in Syria. As long as refugees and migrants continue to arrive across the United States each month and as long as there are more than 1000 open terror cases being investigated by the FBI and DHS, we DO have a dog in this hunt.

“The functioning of the checkpoints and observation posts as well as the administration of the security zones shall be ensured by the forces of the Guarantors by consensus”

 

6 May 201712:41

Memorandum on the creation of de-escalation areas in the Syrian Arab Republic Official website of The Ministry of Foreign Affairs of the Russian Federation

http://www.mid.ru/en/foreign_policy/news/-/asset_publisher/cKNonkJE02Bw/content/id/2746041

 

The Islamic Republic of Iran, the Russian Federation and the Republic of Turkey as guarantors of the observance of the ceasefire regime in the Syrian Arab Republic (hereinafter referred to as “Guarantors”):

-guided by the provisions of UNSC resolution 2254 (2015); -reaffirming their strong commitment to the sovereignty, independence, unity and territorial integrity of the Syrian Arab Republic; -expressing their determination to decrease the level of military tensions and to provide for the security of civilians in the Syrian Arab Republic, have agreed on the following.

1.the following de-escalation areas shall be created with the aim to put a prompt end to violence, improve the humanitarian situation and create favorable conditions to advance political settlement of the conflict in the Syrian Arab Republic:

– Idlib province and certain parts of the neighbouring provinces (Latakia, Hama and Aleppo provinces); -certain parts in the north of Homs province; -in eastern Ghouta; -certain parts of southern Syria (Deraa and Al-Quneitra provinces).

The creation of the de-escalation areas and security zones is a temporary measure, the duration of which will initially be 6 months and will be automatically extended on the basis of consensus of the Guarantors.

2.Within the lines of the de-escalation areas:

-hostilities between the conflicting parties (the government of the Syrian Arab Republic and the armed opposition groups that have joined and will join the ceasefire regime) with the use of any kinds of weapons, including aerial assets, shall be ceased; -rapid, safe and unhindered humanitarian access shall be provided; -conditions to deliver medical aid to local population and to meet basic needs of civilians shall be created; -measures to restore basic infrastructure facilities, starting with water supply and electricity distribution networks, shall be taken; -conditions for the safe and voluntary return of refugees and internally displaced persons shall be created.

3.Along the lines of the de-escalation areas, security zones shall be established in order to prevent incidents and military confrontations between the conflicting parties.

4.The security zones shall include:

 

– Checkpoints to ensure unhindered movement of unarmed civilians and delivery of humanitarian assistance as well as to facilitate economic activities;

 

– Observation posts to ensure compliance with the provisions of the ceasefire regime.

The functioning of the checkpoints and observation posts as well as the administration of the security zones shall be ensured by the forces of the Guarantors by consensus. Third parties might be deployed, if necessary, by consensus of the Guarantors.

5.The Guarantors shall:

-take all necessary measures to ensure the fulfillment by the conflicting parties of the ceasefire regime; -take all necessary measures to continue the fight against DAESH/ISIL, Nusra Front and all other individuals, groups, undertakings and entities associated with Al-Qaeda or DAESH/ISIL as designated by the UN Security Council within and outside the de-escalation areas; -continue efforts to include in the ceasefire regime armed opposition groups that have not yet joined the ceasefire regime.

6.The Guarantors shall in 2 weeks after signing the Memorandum form a Joint working group on de-escalation (hereinafter referred to as the “Joint Working Group”) composed of their authorized representatives in order to delineate the lines of the de-escalation areas and security zones as well as to resolve other operational and technical issues related to the implementation of the Memorandum.

The Guarantors shall take steps to complete by 4 June 2017 the preparation of the maps of the de-escalation areas and security zones and to separate the armed opposition groups from the terrorist groups mentioned in para.5 of the Memorandum.

The Joint Working Group shall prepare by the above-mentioned date the maps of the de-escalation areas and security zones to be agreed by consensus of the Guarantors as well as the draft Regulation of the Joint Working Group.

The Joint Working Group shall report on its activities to the high-level international meetings on Syria held in Astana.

The present Memorandum enters into force the next day after its signing.

Done in Astana, 4 May 2017 in three copies in English, having equal legal force.

 

Signatures

Islamic Republic of Iran   Russian Federation   Republic of Turkey

***

Russia is telling the entire Western world they are in control and alleges full cooperation and approval not only from the United Nations but claims the Trump administration has also agreed. Read on as it also shows maps of the ‘de-escalation zones’.

Russian Defense Ministry Held A Briefing Titled “Principles Of Implementation Of The Memorandum On Syria De-Eescalation Zones Signed In Astana”

Russian Defence Ministry held a briefing titled “Principles of implementation of the Memorandum on Syria de-escalation zones signed in Astana”


Speech of the Deputy Defence Minister of Russia

Lieutenant General Alexander Fomin

Good day, ladies and gentlemen!

The Ministry of Defence of the Russian Federation is holding a briefing on the main points and principles of implementation of the Memorandum on Syria de-escalation zones signed in Astana.

The event is participated by the Chief of the Main Operational Directorate – the First Deputy Chief of the General Staff of the Russian Armed Forces Colonel General Sergei Rudskoy and Deputy Chief of the Main Operational Directorate Lieutenant General Stanislav Gadjimagomedov.

As you know, yesterday, after two-day negotiations held in Astana, plenipotentiaries from Russia, Iran and Turkey signed a Memorandum on Syria de-escalation zones.

For reference:

The Russian party was represented by the Special envoy of the President of the Russian Federation on the settlement of the Syrian conflict A. Lavrentiev.

The Turkish party was represented by the Deputy Minister of Foreign Affairs of Turkey S. Onal.

Iran is represented by the Deputy Minister of Foreign Affairs of Iran H. Ansari.

First, we should briefly inform you about the preparation of the agreement, its participants and ideas.

The document had been elaborated by the Russian Defence Ministry upon the direct order of the Supreme Commander-in-Chief of the Russian Armed Forces Vladimir Putin to maintain the ceasefire on the territory of Syria.

The adoption of the Memorandum had been preceded by a thorough work with all the participants of the negotiation process.

The political settlement in Syria had been numerously discussed by the President of the Russian Federation with the leadership of Turkey, the USA and other states.

In particular, de-escalation zones were negotiated in the course of the talks with the Heads of Russia and Turkey on May 3 in Sochi.

The Russian Defence Minister held bilateral talks with Ministers of Defence of Iran, Turkey, Syria and Israel.

Intelligence services and foreign affairs departments cooperated with each other permanently. A large work was done in order to convince the Syrian leadership and leaders of armed opposition formations to take measures aimed to deescalate the conflict.

Constructive attitude of Iran and Turkey, which had supported building up of the ceasefire regime, has played an important role in operative development of the Memorandum.

Position of the United States positively influenced on establishment of the de-escalation zones. The US supported measures aimed to reduce violence in Syria, improvement of humanitarian situation and creation of conditions promoting political settlement of the conflict.

António Guterres, the Secretary-General of the United Nations, supported the signing of the Memorandum. He welcomed decisions on stoppage of use of weapons and increasing of opportunities for providing humanitarian aid to the population.

Efforts of Staffan de Mistura, the United Nations Envoy to Syria, are highly appreciated. Staffan de Mistura jointly with a group of high-qualified experts had arrived in Astana to support the negotiations.

Memorandum is a landmark document, implementation of which will allow to separate the opposition from the ISIS and Jabhat al-Nusra.

Free access in the de-escalation zones for providing medical, product and other assistance to the Syrian population will be granted.

Recovery of infrastructural objects will be organized.

All these issues will create conditions for safe and voluntary return of refugees and internally displaced persons.

Implementation of the Memorandum will allow to stop warfare and civil war in Syria.

That is why the document is important for political settlement of conflict in the Syrian Arab Republic.

Not everybody appreciates it. At the same time, its signing supported by all main interested players: the UN, the US administration, the leadership of Saudi Arabia and other countries. That is a guarantee of its implementation.

The Memorandum comes into effect tomorrow, i.e. from 00.00 May 6, 2017.


Speech of the Chief of the Main Operational Directorate

Colonel General Sergei Rudskoy

Command staff of the Russian force grouping has taken a complex of measures, which had provided favourable conditions for signing the Memorandum.

Starting from May 1, the Russian Aerospace Forces have stopped operating in the de-escalation zones determined by the Memorandum.

On May 2 and 3, The Russian Centre for reconciliation of opposing sides jointly with leadership of the Syrian Arab Republic organized delivery of a humanitarian convoy of the United Nations, International Committee of the Red Cross, and the Syrian Arab Red Crescent in Duma and the Eastern Ghouta region.

Military police units of the Russian Armed Forces escorted the 51-automobile convoy. Four unmanned aerial vehicles covered the moving convoy.

Russian military servicemen detected and neutralized a suicide bomber armed with 10-kilogram explosives and grenades. They handed him over to representatives of the Syrian security service.

The Memorandum provides creation of four de-escalation zones in the Syrian Arab Republic.

First one is most extensive located in the north of Syria. It includes the Idlib province as well as north-eastern areas of the Latakia province, western areas of the Aleppo province, and northern areas of the Hama province. There are more than 1 million people in the zone. 14,500-men strong armed formations are controlling this zone.

The second one is in the north of the Homs province. It includes al-Rastan and Tell Bisa as well as nearest areas controlled by the opposition groups. The groups consist of up to 3,000 insurgents. There are about 180,000 civilians in the zone.

The third one is Eastern Ghouta. About 9,000 insurgents are controlling it.

About 690,000 civilians live in Eastern Ghouta. The Syrian authorities have deployed eight checkpoints for their transfer. In the morning, most civilians leave Eastern Ghouta for Damascus for earning money, and, in the evening, they come back.

This zone does not include the area of Kabun controlled by insurgents of Jabhat al-Nusra. The Damascus city, and the Russian Embassy in particular, are shelled from there. Operation aimed to eliminate terrorists in this area is continued.

The fourth zone is located in the south of Syria and includes areas of the Daraa and Quneitra provinces. This zone is mainly controlled by units of so-called Southern Front (15,000 men strong). Up to 800,000 civilians live there.

The Memorandum provides additional de-escalation zones if necessary.

In the de-escalation zones, warfare between the government troops and armed opposition units joined or are to join the ceasefire regime is being stopped.

This refers to use of all types of weapons, including aviation strikes.

Special attention is paid to control implementation of the ceasefire regime.

In order to prevent incidents and combat actions between the opposing sides along the de-escalation zone borders, security lanes are established. These lanes include posts for observation of reconciliation regime and checkpoints for controlling movement of civilians without weapons, delivery of humanitarian aid, and support of economical activity.

Operation of the checkpoints and observation posts as well as control over security zones will be provided by personnel from Russia, Iran, and Turkey. Forces from other countries can be involved under agreement of state-guarantors.

Command staff of the Russian grouping under the leadership of the General Staff of the Russian Armed Forces is determining the number of necessary checkpoints and observation posts as well as forces supporting their operation.

Within two weeks, representatives of state-guarantors will form a Joint working group. The group will present borders of the de-escalation zones and safety lanes as well as maps for separating formations of armed opposition from terrorist groupings by July 4, 2017.

It is to be stressed that signing of the Memorandum on creation of the de-escalation zones in the Syrian Arab Republic does not stop fighting against terrorists of the ISIS and Jabhat al-Nusra in Syria.

State-guarantors undertake to continue fighting against formations of these and other terrorist organizations in the de-escalation zones as well as provide assistance to the government troops and armed opposition in fighting insurgents in other areas of Syria.

After establishing of the de-escalation zones, the government troops will be sent to continue offensive on the ISIS formations in the central and eastern parts of Syria as well as to liberate areas located along the River Euphrates.

The Russian Aerospace Forces will support these actions.


Speech of the Deputy Chief of the Main Operational Directorate

of the General Staff of the Russian Armed Forces

Lieutenant General Stanislav Gadjimagomedov

Ladies and gentlemen!

Active preliminary work with our partners has contributed to the results of negotiations in Astana. To this purpose, the working group of the Russian Defence Ministry held a meeting with the leadership of Syria on April 25 in Damascus and on April 26 – in Ankara with representatives of Turkey and leaders of armed formations of the opposition.

In the course of the meetings, we have explained in detail to our partners the methods of creation of safety zones, the mechanism of control over the implementation of the agreements, organization of the humanitarian access and restoration of the peaceful life.

Delegations of the Russian Defence Minister conducted the same work simultaneously in Tehran and Amman.

Just in the course of the preliminary work, we managed to enlist support of guarantor states and the opposing sides for our initiatives.

These activities ensured constructive work of the representatives from Turkey, Iran, the UN and the Syrian government at the meeting in Astana.

The lack of trust between the representatives of the Syrian government and the oppositions gave rise to some difficulties in the course of negotiations.

Despite the intention of all the delegations to sign the document, the initial points of view of the parties differed. First, that concerned the issues of security of the civil population in the de-escalation zones and organization of control over the implementation of the ceasefire agreements by the parties.

The peculiarity of negotiations in Astana is the fact that the opposition was represented by field commanders who really control the situation “on the ground”, but not politicians or emigrants.

Despite the conflict with the government troops, these people realize their responsibility for the future of the united Syrian state.

In the course of frank talks, common methods of stabilization of the situation in Syria were elaborated. We managed to agree on Memorandum with the field commanders of 27 detachments active in the de-escalation zones.

The constructive position of representatives from Iran and Turkey played an important role in achieving agreements as both countries as guarantor states had incurred the responsibility for implementation of the ceasefire.

The Special Envoy of the UN Secretary General Staffan de Mistura made an important contribution to the most tough periods of negotiations. He held several meetings with opposition representatives and convinced them of the importance of the Memorandum for stabilization of the situation in Syria.

It is also important that the results of the talks in Astana are considered by Staffan de Mistura as an influential contribution to the political dialogue in Genève.

The UN experts have rendered considerable assistance, their peace-making experience, practical recommendations were took into account during the elaboration of the Memorandum.

The high level of organization of negotiations provided by the leadership of the Republic of Kazakhstan also contributed to the success of the talks. During each stage of the conversations all the delegations were provided with support by our Kazakh colleagues.

In the near future, the main efforts will be concentrated on the establishment of a Joint working group for de-escalation, preparation of maps with coordinates of safe margins and buffer zones and their negotiation with the partners.

The reports on the activities of the Group will be heard during the international meetings on the Syrian conflict settlement within the Astana process.

Moreover, the mechanism of effective control over the implementation of agreements mentioned by Colonel General Sergei Rudskoy will be elaborated jointly with the partners. This work has already been started.

We plan to continue the work with partners on elaboration of additional trust-building measures for the opposing sides. First of all, this concerns the liberation of persons retained forcibly by both sides of the conflict as well as the humanitarian mine clearance.

We expect further interaction with our partners within the Astana process, the observer countries as well as the support of international organizations, first of all the UN.

Thank you for your attention.


Media representatives’ questions

Yekaterina Babayeva, reporter, KSB TV-channel (Republic of Korea) – a question to Colonel General Sergei Rudskoy

– After the adoption of the Memorandum on Syria de-escalation zones, where will the main efforts of the Aerospace Forces be concentrated for elimination of terrorist groupings?

Sergei Rudskoy:

– De-escalation zones will allow the government troops to release many units. The Russian Aerospace Forces will continue supporting the Syrian Armed Forces while eliminating illegal armed groups of the ISIL international terrorist organization.

The main efforts will focused on the development of the offensive in the east from Palmyra and further lifting a siege of the Deir ez-Zor city, which is besieged for over three years as well as on the liberation of the north-eastern territories in the Aleppo province along the Euphrates River.

Yaroslav Kurashov, reporter of NHK TV-channel (Japan), a question to Lieutenant General Stanislav Gadjimagomedov

Which measures are prescribed for the violators of the Memorandum?

Stanislav Gadjimagomedov:

First, a thorough investigation will be held. According to the results, the measures applied to the violators will be defined. Among them – neutralization by fire.

Alexey Konopko, reporter of the Россия-24 TV-channel, a question to Colonel General Sergei Rudskoy

– Is Russia planning to recommence the Memorandum between Russia and the USA on prevention of incidents in the air space over Syria?

Sergei Rudskoy:

– This agreement is an effective means of prevention of incidents in the air. After the US cruise missile strike against the Shayrat Air Base, the Russian party has suspended its participation in this agreement.

The question of returning to the cooperation within the Memorandum on prevention of incidents in the air space over Syria will be discussed in the course of bilateral contacts with the American colleagues in the nearest future.

Antonio Rondon Garcia, reporter of the Prensa Latina (Cuba), a question to Lieutenant General Alexander Fomin

– Is it planned to extend the number of participants in the de-escalation process?

Alexander Fomin:

Yes, it is. Now we are working on this issue with Jordan and a number of other states.

In the conclusion, I would like to thank you for responding to our invitation.

Traditionally, the Russian Defence Ministry pays great attention to the covering of its activities by the media. We will continue informing you about the most important events including the Syrian topic.

Taking the opportunity, I would like to congratulate all of you with the upcoming Victory Day and to wish you peaceful sky.

Thank you for your attention.

China Hacked the FDIC, will Trump Sanction?

Beyond not trusting Russia, the same holds true for Iran. But then there is China. Trump should never allow China to take the lead in handling North Korea. Anyway, back to hacking and covert hegemony in Latin America.

Related reading:

Problems uncovered after employees walk off job with thousands of SSNs on flash drives.

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China hacked FDIC, US officials covered it up, report says

China’s spies hacked into computers at the Federal Deposit Insurance Corporation from 2010 until 2013 — and American government officials tried to cover it up, according to a Congressional report.

The House of Representative’s Science, Space and Technology Committee released its investigative report on Wednesday.

It presents the FDIC’s bank regulators as technologically inept — and deceitful.

According to congressional investigators, the Chinese government hacked into 12 computers and 10 backroom servers at the FDIC, including the incredibly sensitive personal computers of the agency’s top officials: the FDIC chairman, his chief of staff, and the general counsel.

When congressional investigators tried to review the FDIC’s cybersecurity policy, the agency hid the hack, according to the report.

Investigators cited several insiders who knew about how the agency responded. For example, one of the FDIC’s top lawyers told employees not to discuss the hacks via email — so the emails wouldn’t become official government records.

FDIC Chairman Martin Gruenberg is being summoned before the Congressional committee on Thursday to explain what happened.

The FDIC refused to comment. However, in a recent internal review, the agency admits that it “did not accurately portray the extent of risk” to Congress and recordkeeping “needs improvement.” The FDIC claims it’s now updating its policies.

Given the FDIC’s role as a national banking regulator, the revelation of this hack poses serious concern.

The FDIC’s role is to monitor any bank that isn’t reviewed by the Federal Reserve system. It has access to extremely sensitive, internal information at 4,500 banks and savings institutions.

The FDIC also insures deposits at banks nationwide, giving it access to huge loads of information on Americans.

“Obviously it’s indicative of the Chinese effort to database as much information as possible about Americans. FDIC information is right in line with the deep personal information they’ve gone for in the past,” said computer security researcher Ryan Duff. He’s a former member of U.S. Cyber Command, the American military’s hacking unit.

“Intentionally avoiding audits sounds unethical if not illegal,” he added.

Congressional investigators discovered the hacks after finding a 2013 memo from the FDIC’s own inspector general to the agency’s chairman, which detailed the hack and criticized the agency for “violating its own policies and for failing to alert appropriate authorities.”

The report also says this culture of secrecy led the FDIC’s chief information officer, Russ Pittman, to mislead auditors. One whistleblower, whose identity is not revealed in the report, claimed that Pittman “instructed employees not to discuss… this foreign government penetration of the FDIC’s network” to avoid ruining Gruenberg’s confirmation by the U.S. Senate in March 2012.

David Kennedy, a computer security expert and former analyst at the NSA spy agency, worries that federal agencies are repeatedly hiding hacks “under the blanket of national security.”

“With such a high profile breach and hitting the top levels of the FDIC, it’s crazy to me to think that this type of information wasn’t publicly released. We need to be deeply concerned around the disclosure process around our federal government,” said Kennedy, who now runs the cybersecurity firm TrustedSec.

This same committee, led by Republican Congressman Lamar Smith of Texas, has previously criticized the FDIC for minimizing data breaches.

Several cybersecurity experts — who have extensive experience guarding government computers — expressed dismay at the alleged cover-up.

“It’s incumbent upon our policymakers to know about these data breaches so we can properly evaluate our defenses. Trying to hide successful intrusions only makes it easier for the next hacker to get in,” said Dan Guido, who runs the cybersecurity firm Trail of Bits.

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***  China’s Great Leap Into Latin America

U.S. President Donald Trump’s opposition to the North American Free Trade Agreement and his withdrawal from the Trans-Pacific Partnership have led some critics to claim that the United States is turning its back to regional trading partners, and that Trump is thus freeing up China to make inroads into Latin America. But China’s presence in the Western Hemisphere is already well-established, having predated Trump’s election by almost 20 years. Beijing’s involvement in the region is subject to the ebb and flow of the region’s economic and political changes, but it stems from the needs both of China and corresponding Latin American capitals.

But if China’s position has long since become a fixture in the hemisphere, it is equally true that U.S. policymakers have been remarkably complacent over the years as the growing Chinese presence has necessarily impacted not only the region, but U.S. political, economic, and security interests. That needs to change.

China’s interest in Latin America is both economic and strategic.  It was the accelerating Chinese economy’s voracious appetite for raw materials that keyed its entry to the region, a land of plenty when it comes to natural resources. Iron, soybeans, copper, and oil make up the bulk of Chinese imports from the region. In turn, securing access to Latin American markets for the export of Chinese manufactured products became a priority as well.

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Economic Push

The numbers are staggering. China joined the World Trade Organization in 2001, and its bilateral trade with Latin America and the Caribbean has since skyrocketed, from $15 billion in 2001 to $288.9 billion in 2013 — an increase of almost 2000 percent. That number now represents 6 percent of China’s total foreign trade, an increase from 2.7 percent in 2000. (Some 13 percent of Latin America’s trade is now done with China, up from negligible levels in 2000.)

In the past decade, China’s two biggest development banks have provided $125 billion to Latin America — more than the combined total lending of the World Bank and the Inter-American Development Bank. China is now Latin America’s largest creditor. In addition, between 2000 and 2015, Chinese leaders visited the region more than 30 times.

Last November, Chinese President Xi Jinping made his third trip to the region since 2013, announcing a plan to double bilateral trade and to increase investment stock value by 150 percent over the next decade.

Not Just Economics

China also has significant geopolitical interests. It wants to project power and influence in an area long considered to be within the U.S. sphere of influence — no doubt a response to what Beijing considers U.S. efforts to contain and encircle China in Asia by cultivating allied and friendly governments.

Critical to China’s aspirations as a growing global power as well is what it calls global governance reform. In translation, that means Beijing uses its growing trade and financial might to challenge the architecture of the U.S.-dominated post-World War II order and alter it along lines more favorable to China. Beijing sees developing its own alliances through trade and loans as an important way to counterbalance U.S. influence and to secure support in multilateral forums on such important issues to Beijing as human rights, climate change, and economic governance.

It bears noting that China considers its principal regional economic and political interlocutor to be the Community of Latin America and Caribbean States, an organization established by the late Venezuelan firebrand Hugo Chavez that purposefully excludes the United States and Canada.

Finally, it is no coincidence that of the 22 countries that diplomatically recognize Taiwan, 12 are in Latin America and the Caribbean. China wants specifically to erode this support for Taipei. As a Chinese white paper on Latin America and the Caribbean in 2008 put it succinctly, “the One China principle is the political basis for the establishment and development of relations between China and Latin America.”

Changing Times

Chinese demand for commodities keyed its entry into the region and helped produce one of Latin America’s fastest periods of growth in decades, but the times are changing. Lackluster global economic growth and the cooling Chinese economy (which has contributed to the end of the global commodity boom) have resulted in a drop in Chinese imports from and exports to Latin America in recent years. Indeed, over the past year regional revenues from commodity exports to China dropped some 40 percent.

Latin America is also changing politically. China’s initial push into the Western Hemisphere was facilitated by the rise to power of a host of leftist populist governments — a phenomenon collectively referred to as the Pink Tide. Many leaders, foremost among them Venezuela’s Hugo Chavez, were determined to distance themselves from the United States and from institutions perceived to be allied with Washington. These leaders were happy to align themselves with China, which adheres to a supposed policy of non-interference in countries’ internal affairs. That equally suited a number of Latin American governments, which proceeded to undermine democratic institutions and the rights of their citizens.

However, with the bust in oil prices and other commodities exposing the economic dysfunction of the populist model, frustrated voters are shifting their support to more pragmatic, market-friendly governments. These governments can be expected to operate in a more sober and transparent manner, and to be more respectful of democratic institutions, eschewing the opaque, behind-the-scenes deals that China previously thrived on. With less opportunity to present itself as the buyer or lender of last resort, China will find itself needing to adapt to a more challenging and competitive environment.

Beijing seems to be adjusting well: China’s evolving economic strategy is now one of diversification, with an emphasis less on traditional industries such as mining and energy extraction and more on sectors such as infrastructure (including energy, airports, seaports, and roads), construction, telecommunications, manufacturing, finance, agriculture, tourism, and even the space sector.

Implications for the United States

China’s authoritarianism, global designs, and disregard for international norms and practices raise serious questions about the impact of its engagement in the Western Hemisphere on the promotion of democracy, human rights, and the rule of law. In recent congressional testimony, U.S. Southern Commander Adm. Kurt Tidd put it like this:

For Russia, China, and Iran, Latin America is not an afterthought. These global actors view the Latin American economic, political, and security arena as an opportunity to achieve their respective long-term objectives and advance interests that may be incompatible with ours and those of our partners. Their vision for an alternative international order poses a challenge to every nation that values non-aggression, rule of law, and respect for human rights — the very same principles that underlie the Inter-American system of peace and cooperation. Some of what they’re doing — while not a direct military threat — does warrant examination. Even seemingly benign activities can be used to build malign influence.

This was certainly evident in recent years, with China providing anti-American governments with an alternative source of trade, investment, and finance outside conventional institutions that ordinarily require some conditionalities on good governance, transparency, anti-corruption efforts, human rights, and the rule of law.  In some cases, it didn’t create major problems. In others, such as Venezuela ($65 billion in Chinese loans) and Ecuador ($11 billion), Beijing bankrolled authoritarianism and human rights abuses, undercutting U.S. efforts to promote its policy agenda in the Americas and setting the stage for the chaos now underway in Venezuela.

Yet it is not as though the United States can block or impede Chinese trade and investment in the hemisphere. It is also important to keep things in perspective: U.S. trade with Latin America is still three times larger than China’s. Nor can China match our proximity, cultural and familial ties, and long shared history. The best response therefore to the Chinese presence in the Western Hemisphere is to do what the United States does best: compete.

The situation is best approached as a strategic competition in which the United States employs its comparative advantages and the above described strengths to secure its role as the preferred partner of choice for our Latin American neighbors. China may have the cash advantage, but it cannot compete with the United States in terms of the aforementioned, nor in the agreements shared throughout the Western Hemisphere on rules-based behavior, transparency, and a belief in economic opportunity, strong institutions, and the rule of law. The United States also boasts a 50-year record of promoting sustainable long-term regional development and humanitarian projects, a commitment to corporate social responsibility,  and — not to put too fine a point on it — laws that prohibit bribery and other corrupt practices that often undermine the public’s faith in their systems.

This is in contrast to the Chinese presence, where cultural differences, radically divergent value systems, and different ways of doing business often impair mutual understanding and trust. China also has a poor record on human rights, anti-corruption practices, and environmental and labor conventions. (In many cases, Chinese construction companies import Chinese workers, spurring local resentments over lost employment opportunities.)

On the economic front, many economists worry that China’s demand for raw materials harkens back to Latin America’s bad old days of too much dependence on commodity exports. Neither do they see purchasing Chinese manufactured goods in return as being conducive to long-term development. Again, in contrast, the United States provides meaningful value-added, job-creating investment in the region while purchasing the sort of manufactured goods that generate more jobs.

Game On

Whatever professions of a win-win economic situation for all, or of China’s benign intent, China’s position in Latin America affects the U.S. agenda and regional stability — and Beijing has the resources and motivation needed to adapt to changing circumstances and to remain such a regional fixture for the foreseeable future. That is why U.S. complacency is not an option. Competition need not be hostile, just determined. In particular, the Trump administration has an excellent opportunity to press the U.S. advantage by drawing closer to regional heavyweights Brazil and Argentina, who are attempting to shake off the legacies of years of statist economics. These are countries where China has been particularly active. Each now has a market-friendly president desperate to produce economic growth and draw foreign investment.

A reinvigorated U.S. engagement with the hemisphere will reap significant benefits for the U.S. economy. It will create new investment opportunities, including in the energy sector, but it will also drive up the cost of doing business for Beijing. That China continues to expand its presence in other regions such as Asia and Africa is one thing, but encroaching in our own neighborhood more directly impacts the U.S. national interest. It’s time for America to pay closer attention.