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Wisconsin Governor Threatens To Fight Union Protest With National Guard

by The Huffington Post on February 15, 2011

State workers in Wisconsin are protesting a move by Republican Governor Scott Walker to use the threat of the National Guard to break the public union. Citing a $137 million budget deficit, Walker announced a plan last week which would essentially take away the public union’s collective bargaining rights and slash benefits for state employees. Meanwhile, the share of corporate tax revenue funding the state government has fallen by half since 1981 and, according to Wisconsin Department of Revenue , two-thirds of corporations based in state pay no taxes. In the case of a walkout, Walker has put the National Guard on alert. On Monday he told reporters that the guard is “prepared” for “whatever the governor, their commander-in-chief, might call for.” Wisconsin is one of a growing number of states facing severe budget cuts and difficult choices regarding public unions. But as Bloomberg News points out , the biggest savings Walker is proposing have nothing to do with state workers or collective bargaining. Walker claims the state can save $165 million by the end of next June simply by restructuring its existing debt. “I’m just trying to balance my budget,” Mr. Walker told the New York Times last week. “To those who say why didn’t I negotiate on this? I don’t have anything to negotiate with. We don’t have anything to give. Like practically every other state in the country, we’re broke. And it’s time to pay up.” The Republican Party of Wisconsin has said that Walker’s plan will save Wisconsin $30 million over the next three months and $300 million over the next two years. Union leaders and labor scholars don’t think Walker’s move to crush the union is about the deficit. “If it had simply to do with the budget there doesn’t seem to be a need to eliminate collective bargaining,” said Joseph McCartin, a labor historian at Georgetown University. “In other states where state’s municipalities have faced difficult times, unions have helped negotiate the way forward.” “Denying people’s rights has nothing to do with the budget,” said Michael Uehlein, field director for the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO). Uehlein views Walker’s proposal as “an excuse to go after his political enemies” and “the first step that will lead to drastically reduced wages across the state.” Rick Badger, the executive director of AFSCME’s Wisconsin 40 council, one of the most active unions in the state, characterised Walker’s proposal as a “man-made disaster” that is “really about taking away people’s rights and creating a second-class citizen.” Badger is adamant that a compromise could be reached and outraged that Walker has made no attempt to sit down with the unions. “It’s been painted as being all about the money but what this is really about is workers who won’t be able to negotiate health insurance, pension, vacation, hours of work, the arbitration process, just cause or discipline,” Badger said. “[Walker] claims there’s nothing to bargain with. The message we need to get out there is that this could not be further from the truth.” Badger continued, “none of the unions involved in this have said that they would not be willing to make sacrifices. They have said that they are, and they will.” Public and private sector labor leaders in Wisconsin and around the country are joined in opposition of the bill. On a conference call on Monday, conservative and Republican employees across the state spoke out against Walker’s plan. “The right to join a union and collectively bargain is a freedom that people have died to protect. To have anyone threaten to wipe it away with minimal public debate, deliberation or discussion is unconscionable,” said Janice Bobholz, an employee with the Dodge County Sheriff’s Department and a resident of Beaver Dam. The governor’s proposal is especially painful given Wisconsin’s long history of collective bargaining. “[Walker's proposal] really represents a break in a 50-year tradition,” McCartin said. “I think it’s really significant and its implications are frightening for public sector unions not just in Wisconsin but over much of the country.” In Ohio, collective bargaining rights for state workers are no more secure . Republican Senator Shannon Jones has proposed a similar bill to Walker’s, and last month, Ohio governor John Kasich said that if employees strike, “they should be fired.” However, he has not yet threatened to call in the National Guard. “It’s hard to imagine why that had to be raised except to purposely stoke a fire,” McCartin said. “It’s a painful history that Wisconsin has had in that respect and to raise the specter of calling in the National Guard seems totally warranted in this case.” The last time Wisconsin called in the National Guard was in 1886. The Guard, then called the State Militia, were brought in to break a rally of Milwaukee workers advocating an 8-hour work day. The militia fired into a crowd of unarmed picketers; it’s estimated that 5 to 7 workers were killed. Badger is a veteran of the armed forces. He is astounded that the governor has suggested the Guard might be called in. “I volunteered to defend the rights of citizens in this country,” Badger said. It’s really offensive — not the National Guard soldiers — just that the governor could find the time and resources to put the National Guard on alert but not to sit down with any of the unions.” In a press release put out by VoteVets.org, an outreach group devoted to veterans issues, a veteran and former National Guard member shared his unhappiness with the Governor’s proposed solution to a union strike. “Maybe the new governor doesn’t understand yet – but the National Guard is not his own personal intimidation force to be mobilized to quash political dissent,” said Robin Eckstein, a former Wisconsin National Guard member, Iraq War Veteran from Appleton, WI, and member of VoteVets.org. “The Guard is to be used in case of true emergencies and disasters, to help the people of Wisconsin, not to bully political opponents.” The governor’s office did not immediately respond to request for comment.

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Wisconsin Governor Threatens To Fight Union Protest With National Guard

Video: Thad Allen Says Spill Response Needs to Be Revisited: Video

by on September 28, 2010

Sept. 28 (Bloomberg) — National Incident Commander Thad Allen talks with Bloomberg’s Lizzie O’Leary about the U.S. government’s response to the BP Plc oil spill in the Gulf of Mexico. (Source: Bloomberg)

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Video: Thad Allen Says Spill Response Needs to Be Revisited: Video

Video: BP Plugs Well That Caused Biggest U.S. Oil Spill: Video

September 19, 2010

Sept. 20 (Bloomberg) — U.S. officials said BP Plc killed its Macondo well in the Gulf of Mexico after creating another cement seal, plugging the source of the largest offshore oil spill in U.S. history. “The Macondo 252 well is effectively dead,” said National Incident Commander Thad Allen in a statement yesterday. BP completed its last pressure test on the plugs at 5:54 a.m. local time before declaring the well sealed, according to the statement. Susan Li reports on Bloomberg Television’s “First Up.” (Source: Bloomberg)

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David Isenberg: The GAO Transcripts, Part 17: Use of PSC is Cost Prohibitive

July 21, 2010

This is the seventeenth installment of the Government Accountability Office interview transcripts that were prepared pursuant to the July 2005 GAO report ” Rebuilding Iraq: Actions Needed To Improve Use of Private Security Providers .” It is not clear from the transcript what government office is being interviewed here. But given that it supported all overseas operations it obviously played an important role. Among the interesting revelations are that background checks are outsourced to a corporate security office. Even more interesting, someone in government disagreed with the near constant assertion by PSC supporters that using them is more cost effective than using government personnel as illustrated by this: Under _____________ the Army is contractually required to provide force protection f _____________ To date, _____________ not had to supplement the security that the Army or Rangers provide with private security guards. Several months prior to the interview _____________ templated getting more protecti _____________ concerned that the force was getting smaller and would not have sufficient resources to provid _____________ adequate protection. Ultimately _____________ decided against it because it was cost prohibitive. In addition, , the government would have to indemnify it, further complicating matters. Standard disclaimer: I have put in ( _____ ) to reflect those words of phrases which have been blacked out in the transcript. I have also put in the underlining as it appeared in the original transcript. As in the transcript, I have left out letters from various words, even when it seems obvious what the word is. Prepared by: Kate Walker Index: Date Prepared: October 27, 2084 DOC Number: 1201624 Reviewed by: Carole Coffey DOC Library: Goal 2 Job Code: 350544 Record of Interview Title Interview with _____________ Purpose To learn about _____________ Contact Method Face-to-face Contact Place _____________ Contact Date August 12, 2004 Participants _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ _____________ Steve Sternlieb, Assistant Director, GAO Carole Coffey, Analyst-in-charge, GAO Dave Grover, Senior Analyst, GAO William McPhail, Senior Analyst, GAO Kate Walker, Analyst, GAO Comments/Remarks: _____________ the _____________ in charge of the upport office for the _____________ contract. _____________ SUPPORT OFFICE SERVICES The _____________ upport Office supports all overseas operations. Currently, _____________ work in six countries: Uzbekistan, Djibouti, Georgia, Afghanistan, Kuwait, and Iraq _____________ human resource (HR) employees recruit and process employee applications. Processing new employees takes 8-10 days and HR processes about 500-600 employees every week _____________ required by contract to perform background check on all of its employees. These background checks are outsourced to a corporate security office. _____________ quires that employees pass provide updated medical physicals, passports, and training requirements. PROJECT CONTROLS _____________ ploys a number of resources to ensure that its projects are properly managed. In _____________ as a robust procurement office, a twenty-four hour operations center, a contract administration, and accounting and finance staff all dedicated to project management. CONVOY MOVEMENT Both _____________ mployees and supplies are transported in convoys. As of 19 July 2004, all _____________convoys are required to have: 1. One military platform (humvee, etc) for every five _____________ hicles 2. No more than 15 _____________ ehicles per convoy in order to keep the convoy short (The convoy standard used to be 25 _____________ ehicles.) 3. A military shooter on every third vehicle Page 1 Record of Interview _____________ has provided us with a copy of these convoy requirements. When crossing sector lines, force protection changes for supply and employee convoys; mail convoys have dedicated escorts and do not change between sectors. Army escorts can be the military police (MP). troops, combat arms, combat support (CS), or combat service support (CSS) units. _____________ reports that _____________ occasionally complain that they do not have combat arms escorting their convoys. But, he believes that this is just a grip and that CS and CSS units have provided sufficient force protection to date. _____________ had to occasionally leave a vehicle behind if it is not usable. These vehicles are typically burned so that insurgents cannot use them. If a vehicle is burned while in protected convoy transport, _____________ can submit claims for reimbursement to the PCO. _____________ ust also submit a loss, damaged, or destroyed (LDD) report to the PCO, but it must be approved by to be government property. _____________ transportation operations center at every location they have in theatre. _____________ vehicles are required to inform these transportation operations centers of their movement. Most _____________ vehicles have QualCom satellite systems that allow them to communicate with theatre transportation operation centers. _____________ vehicles also carry satellite phones. _____________ onvoys follow Army command. _____________ _____________ _____________ _____________ theatre. _____________ coordinates convoy movements with the commander in Kuwait and Anaconda in Iraq. He also works with _____________ _____________ Baghdad to coordinate movement. _____________would like to see _____________ move away from ground transportation to air transportation. CHAIN OF COMMAND _____________ finds that there is no “security chain of command” in Iraq; program managers are the chain of command. _____________ is the _____________ Middle East and Asia. _____________ is the _____________ is located at the _____________ n Baghdad. _____________ has provided us with a matrix of the chain of command fo_____________ _____________ an addition to the lack of a security chain of Command _____________also believes that technical stove piping is also a problem. FORCE PROTECTION AND SECURITY Under _____________ the Army is contractually required to provide force protection f _____________ To date, _____________ not had to supplement the security that the Army or Rangers provide with private security guards. Several months prior to the interview _____________ templated getting more protecti _____________ concerned that the force was getting smaller and would not have sufficient resources to provid _____________ adequate protection. Ultimately _____________ decided against it because it was cost prohibitive. In addition, , the government would have to indemnify it, further complicating matters. INTERNAL REPORTING The government requires that _____________ provide them with after-incident reports, daily SITREP reports (including personnel status), the death of an employee, etc, _____________ provided us with copies of some of the after-incident reports. Nearly five to ten after-incident reports are written daily. These reports go to the ACO and the PCO. Convoy incident reports initiated from theatre transportation are immediately sent to_____________ Baghdad where they are Page 2 Record of interview dispersed. The convoy commander writes a more detailed report after the conclusion of the convoy. Reports about mortar incidents are reported to an element on the camp. SUGGESTIONS Overall , _____________ elieves that s a good relationship with the military. He believes that the reserves and national units do a good job and does not think that the soldiers leave anything to want _____________ did suggest that the military acquire better technology to detect improvised explosive devices (IEDs). He did say, however, that _____________ vesting in its own hard vehicles, ballistic blankets, helmets, and vests. Page 3 Record of Interview

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Video: Simmons Discusses BP’s Oil Spill Cleanup Efforts: Video

July 21, 2010

July 21 (Bloomberg) — Matthew Simmons, founder of the Ocean Energy Institute, talks with Bloomberg’s Mark Crumpton, Julie Hyman and Lizzie O’Leary about the BP Plc Gulf of Mexico oil spill. BP’s effort to pump mud into the top of its well, known as “static kill,” may begin as early as this weekend, National Incident Commander Thad Allen said today. (This is an excerpt of the full interview. Source: Bloomberg)

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Video: Florida State’s MacDonald Discusses Seepage at BP Well: Video

July 19, 2010

July 19 (Bloomberg) — Ian MacDonald, an oceanography professor at Florida State University, talks with Bloomberg’s Lori Rothman about seepage detected at BP Plc’s capped oil well in the Gulf of Mexico. BP can keep its oil well in the Gulf of Mexico shut for another 24 hours after agreeing to monitor a leak through the seafloor and take other precautions, National Incident Commander Thad Allen says. (Source: Bloomberg)

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David Isenberg: The GAO Transcripts, Part 13: Houston, We’ve Had A Problem

July 15, 2010

No, this is not about the Apollo 13 mission. But this is the thirteenth installment of the Government Accountability Office interview transcripts that were prepared pursuant to the July 2005 GAO report ” Rebuilding Iraq: Actions Needed To Improve Use of Private Security Providers .” It is pretty obvious that the company in this transcript is Kellogg Brown and Root Services, Inc., (KBR), as evidenced by language like this, “The only reports seen in Houston office are serious reports that have to be given to the client. Serious reports involve the destruction of government property, USG embarrassment, or death/injury of contractor personnel.” I can’t help but wonder what KBR thinks constitutes “USG embarrassment;” KBR contractors in possession of child porn ? Personally, treating US troops like trash by running burn pits that may have given them cancer seems pretty embarrassing to me. Reading some of the below language one understands that getting adequate security for the logistics contractors was frequently a big problem. For example, “___________ that they are not receiving the amount of force protection ___________ contractually entitled to in coalition sectors… On Army camps, 1st tier subcontractors working with entitled to the same level of protection granted to below first tier subcontractors as unsure about the level protection provided to contractors by the military. He assumes that if the subcontractor were on the base, then they would get the same level of service as first tier subcontractors. But, most second and third tier subcontractors typically do not live on ___________ mps/sites.” Sometimes the lack of adequate security could negatively impact supply missions as this passage illustrates: ___________ is heard about situations in which the ratio for convoy security was not sufficient. ___________ acquiesced to this statement, saying that he was not sure if the Army’s status quo requirements provide enough protection to securely cross convoys. He said that J ___________ would better be able to answer that question. ___________tated that in the early days there could be as many as 1,000 trucks backed up awaiting security details. Because convoy transportation is so insecure, ___________ as an air shuttle run that goes to five locations in Iraq. ___________ noted that there is a problem with “free wheelers” in Iraq. “Free wheelers” are contractors that don’t want to wait for US Army protection for their convoys. ___________ ___________ ___________ ___________ ___________ ___________ At least in the early days, according to this interview, private security contractors were left on their own. “The general expectation among the multinational coalition forces is that ___________ fend for themselves; PSCs are the lowest priority for coalition services.” Standard disclaimer: I have put in ( _____ ) to reflect those words of phrases which have been blacked out in the transcript. I have also put in the underlining as it appeared in the original transcript. As in the transcript, I have left out letters from various words, even when it seems obvious what the word is. Prepared by: Kate Walker Index: Type bundle index, here Date Prepared: August 24, 2004 DOC Number: Type document number here Reviewed by: Type reviewer name here DOC Library: Type library name here Job Code: 350544 Record of Interview Title ___________ coordination with Military Purpose To understand how ___________ and its subcontractors coordinated with the military Contract Method Face-to-face Contact Place ___________ Contact Date August 11, 2004 Participants ___________ ___________ ___________ ___________ ___________ ___________ Carole Coffee, GAO Dave Grover, GAO William McPhail, GAO Steve Sternlieb, GAO Kate Walker, GAO Comments/Remarks: ___________ a military contractor that provides ___________ the US Army under the___________ contracts. Under this contract, the Army is supposed to provide ___________ with security protection. In addition to this protection, ___________ subcontracts for security with the ___________ a private security firm based out of ___________ . In this meeting, a number of ___________ fficials spoke with us about the current situation in Iraq, their experiences with the US military and the subcontractor relationships. ___________ did most of the talking. ______________________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ major contributors ___________ utilized a PowerPoint presentation to review the questions that we had sent to them in advance. (Analyst Note: Presentation included in Interview Notes.) ___________ resence in Theatre ___________ urrently has ___________ rsonnel in theatre ___________ rotates its employees in and out of field on yearlong rotations. Some people choose to stay the whole rotation. Page 1 Record of Interview Regional security managers handle sectors of Iraq. The security manager manages main camps and sites in Kuwait, Iraq, ___________ is th ___________ in Iraq. ___________ ___________ to the military officials almost hourly. Security coordinators are typically US expatriates with security clearances that work at Army camps. While their roles and responsibilities vary with their location, their primary job is to serve as the senior liaison with the US military and make sure that force protection measures are in place. Security technicians write reports and conduct analysis of security situations. ___________ has a regional office in ___________ at the ___________ which is protected by US military parameter defense troops ___________ rks out of the ___________ office. ___________ subcontracts with the ___________ for security protection. Military Force Protection: Who is responsible? The military provides protection for ___________ tractors. This protection is delegated to coalition forces in the sector closest the contractors. Currently, coalition forces provide limited perimeter protection. ___________ otes that coalition forces lack of quick response teams and that some coalition sectors could be stronger. ___________ that they are not receiving the amount of force protection ___________ contractually entitled to in coalition sectors. The military also provides protection for first tier subcontractors located on Army bases, and sometimes will also provide protection for second and third tier contractors if they are located on an Army base. ______________ What level of protection is provided? Under the provisions of the ___________ contract, the US military is required to provide its contractors with the same level of protection as that provided to the military troops. The level of protection is decided cooperatively based on ___________ rforms vulnerability assessments. If KBR had concerns, their first response would be to talk to ___________ they wouldn’t go direct y to the military. If that attempt elicited no response, ____________then go to the PCO in writing. On Army camps, 1st tier subcontractors working with entitled to the same level of protection granted to elow first tier subcontractors as unsure about the level protection provided to contractors by the military. He assumes that if the subcontractor were on the base, then they would get the same level of service as first tier subcontractors. But, most second and third tier subcontractors typically do not live on ___________ mps/sites. In general, ___________ eceived good cooperation and support from the U.S. military. While there have been some minor incidents ___________ unaware of any major situations in which ___________ sn’t received good support from the military. ___________ no ___________ have a very “symbiotic relationship” with the military as most of its employees were former military officials. ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ Page 2 Record of Interview ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ______________________ ___________ ___________ ___________ Military Force Protection: Convoys The US military is responsible for establishing security requirements and coordinating details for contractor convoys ___________ rks “hand and glove” with their military counterparts to help assess whether convoy standards meet adequate protection levels. If ___________ sn’t satisfied with the level of security offered by the military ___________ to contact their prime security manger. The manager can then talk to the commander. The military is also responsible for coordinating dedicated detail for convoy travels from point A to point B. MOW has a dedicated team for convoy/personnel movements that coordinates with the military, ___________ ployees and subcontractors. ___________ _________________________________ ___________ ______________________ believe that convoy details are dedicated to specific regions, resulting in convoy handoffs at checkpoints between sectors. Military requirements for convoys are written into Fragmentary Orders (FRAG Orders). Specific force protection requirements are based on the size of the convoy. (Analyst note: See page 7 of the ___________ Force Discussions PowerPoint presentation.) ___________ is heard about situations in which the ratio for convoy security was not sufficient. ___________ acquiesced to this statement, saying that he was not sure if the Army’s status quo requirements provide enough protection to securely cross convoys. He said that J ___________ would better be able to answer that question. ___________tated that in the early days there could be as many as 1,000 trucks backed up awaiting security details. Because convoy transportation is so insecure, ___________ as an air shuttle run that goes to five locations in Iraq. ___________ noted that there is a problem with “free wheelers” in Iraq. “Free wheelers” are contractors that don’t want to wait for US Army protection for their convoys. ___________ ___________ ___________ ___________ ___________ ___________ One of the most dangerous roads to travel in Iraq right now is the 13km road from Biop to the Green Zone. This is a military supply route/army supply route (MSR/ASR) that needs to be protected. The MSR/ASR is not secure right now. ___________ that even in secure places there is still rock throwing, etc., that is thwarting progress. ___________ provided the following anecdote to illustrate his point. He spoke with a victim of the 9 April 2004 convoy attack that it was the 5th convoy that he had been in that had been attacked. ___________ eported that the convoy experience is different in different parts of Iraq. The South is unlike the West, East, or North. The PMO keeps a tally of convoy attacks. ___________ operational center ir ___________ keeps tabs on attacks on contracts for ___________ Multinational Coalition Force Protection: Convoys The general expectation among the multinational coalition forces is that ___________ fend for themselves; PSCs are the lowest priority for coalition services . Convoy movements have to be Page 3 Record of Interview scheduled, Unscheduled/non-regular convoy protection is nearly non-existent. The company will not move unless they are secure. ___________ that if their inability to move impedes their ability to fulfill the contract they would bring it up with their contracting officer. ___________ thinks that the convoy protection is under charter of ___________ While ___________ elieves that there are areas in convoy protection that could be stronger, they have not yet reached the threshold where they can say they are not getting adequate protection and need to subcontract for security. Weapons: It is against ___________ and ______________________ovisions for ___________ mployees to hold guns; ___________ employees are not shooters. If anyone is found with a gun, he/she is fired immediately. Subcontractors protecting ___________ch as the ___________ ___________ wever, can have weapons if they are required in the scope of work (SOW) for the subcontractor. Subcotractors have run into a number of problems acquiring weapons. ___________ ___________ ontract reported that, “it is very difficult to get weapons; availability is everything.” The requirements are based on cost importation and custom issues include: o 7.62 mm for rifles o Minimum 9 mm for side arms o Some AK47/45 and MP5 can be allowed depending on subcontractor location ___________ reported th ___________ subcontracted had originally planned to import and lease their weapons on day rate, but UN embargo prohibits importation of weapons. Ultimately, the ___________ ___________ contractor, ended up buying in country, forensically clean weapons and register them on government property books. ___________ formed us that a FRAGO had been issued defining which small arms/personal weapons could be used in Iraq. This FRAGO also required those operating or owning guns in Iraq to have weapons cards. (Analyst note: We have a copy of this FRAGO issued in September 2003 in our files.) Camp Protection ___________ unaware of any contractors living outside military camps in Iraq. There is a concern that high-rise hotels are too dangerous, when but 500-600 people are cycling in at a time, ___________ few choices other than housing them at a hotel. At complexes with a large number of people can hire PSC, but they have to be unarmed. There is no security at such hotels other than unarmed military. Recently, ___________s been warned about the security situation in Kuwait. There is some intelligence that the local insurgents were specifically striking contractors. Records of Activity: Military Reporting FRAG orders are distributed by and to all military. Records of Activity: Daily Reports ______________________ daily report about all personnel at each o___________ its subcontractors’ work locations by pay rate. He also has a roster of all personnel present for Page 4 Record of interview duty and their registered weapons. Activities are well recorded. The most common incidents vary depending on your location. o North: rockets, improvised explosive devices (IEDs), mortars. o Baghdad: Everything, vehicle borne IEDs, IEDs, kidnappings, small arms fi (SAF), rockets, mortars, attacks on camps, convoys, aircraft South: Occasional mortar attacks, hijackings, theft, vandalism Records of Activity: Operations Reports Operations reports have evolved over time and give security managers insight into what types of issues different bases are facing . They are provided and maintained in the security managers’ offices in Iraq. The ___________ ubmits operations reports as well. The ___________s also absolutely required to provide an after-accident and incident reports. ___________ gested that the new Project Manager would be the best person to talk regarding operations reports. The only reports seen in Houston office are serious reports that have to be given to the client. Serious reports involve the destruction of government property, USG embarrassment, or death/injury of contractor personnel. Serious incident and operations reports also go to the PC0. ___________ not contractually required to report security concerns to the PCO. ___________ as lost 42 ___________ people (including subcontractors) to date in theatre. Anytime a service person in injured or killed, ___________reports to the PCO. ___________ does not know, however, what the PCO does with that information. ___________ ports both ___________ nd subcontractor information to the PCO. ___________ general sentiment is that nobody has a grip on the contractors’ facilities, etc. because PSCs are not required by contract to report anything. (Analyst note ___________ suggested tha ___________would be the best person to ask ___________ ports to the client if anyone dies.) Intelligence Sharing: Among PSCs Currently, there are no contractual requirements that PSC communicate with each other, but intelligence sharing between all major companies is occurring. Note, however, that those companies perceived as “fly-by-night types” by major companies are not included in this communication. Emergency Action Plans: Al ___________ ocations have an emergency action plan. ___________ reports, however, that many military units have not created a coordinated emergency action plan with their contractors. ___________ CONTRACT Force Protection The origina ___________ nd PCO Oil Contract required that the Services Theater Command provide ___________ with force protection “commensurate with that given to Service/Agency civilians.” As this force has been found insufficient, the ___________ contract now has a hybrid of military security augmented by private security subcontractors. ___________ private security supplements the guard force in camps, provides escort security to move to work sites, and temporary perimeters at worksites supplemental security protects itself, its subcontractors, and DOD civilians. Coalition Forces still, however, provide a secure perimeter for the areas where ___________ ts subcontractors, and DOD personnel sleep. The ___________ came aboard the ___________ ontract ___________ ___________ rovides security for pipelines ___________s unaware of any subcontractors f___________ roviding private security for oil. Page 5 Record of interview

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David Isenberg: The GAO Transcripts, Part 12: Can’t We All Just Coordinate?

July 11, 2010

This is the twelfth installment of the Government Accountability Office interview transcripts that were prepared pursuant to the July 2005 GAO report ” Rebuilding Iraq: Actions Needed To Improve Use of Private Security Providers .” This interview with a U.S. military officer who served in Iraq indicates that in his experience interactions with private security contractors was both good and bad. Generally, it was mostly good but the bad could be royal pains in the butt. The officer notes that most private security contractors act professionally. Some, however, were not, and by some, I mean more than a “few bad apples” as trade associations like to say. An example of the latter is this: This being said, there are still an enormous amount of contract act security that roam the Green Zone with seemingly limited adult supervision. This group creates an image of a pseudo mercenary army in the green zone. Soldiers have little regard for them bordering on contempt for their lack of standards and discipline. Another example is this: Standards of conduct that apply to all contractors that clearly define lines of communication and authority. Specifically, we continually had problems with contractors carrying loaded weapons on secure military compounds and in our dining facilities. If the contractor is actively engaged as a body guard for a VIP, this is no problem. Other than that they should not carry loaded weapons on US compounds. We strictly enforced this standard and escorted many contractors off our installation that refused to comply. Of course, this was years ago, when U.S. forces had been in Iraq just over two years. Still, that is a long time by military standards. And yet there were still significant issues that were bedeviling the military contractor relationship, such as non-interoperable communications or unresolved command and control relationships. As there were no procedures in place as to when military commanders should help contractors if they got into trouble decisions were made on an ad hoc basis. Things are doubtlessly improved now but it does not reflect well on either the military or contractors that it took so long for things to get worked out. Standard disclaimer: I have put in ( _____ ) to reflect those words of phrases which have been blacked out in the transcript. I have also put in the underlining as it appeared in the original transcript. As in the transcript, I have left out letters from various words, even when it seems obvious what the word is. Prepared by Carole Coffey Index: Date Prepared: April 27, 2005 DOC Number: 130798 Reviewed bye Steve Sternlieb DOC Library: Goal 1 Job Code: 350544 Record of Interview Title Interview with representatives Purpose Obtain info on pre-deployment training Contact Method phone Contact Place N/A Contact Date April 26, 2005 Participants Carole Coffey, GAO 202-512-5876 ______________________________ _______________ _______________ _______________ Comments/Remarks: I contacted _______________ determine if the Iraq pre-deployment training included a segment on private security contractors in Iraq. I contacted the _______________ because we had been told that they were going to be rotating back to Iraq. _______________ made the following comments I. The division has not been notified as to whether or not it will be returning to Iraq. While the division still has some folks in Iraq, those that deployed for the Jan 30 election return in the late March time frame and are on block leave. The Division headquarters deployed to Iraq in mid-2003 and return to _______________ in the fall of 2004. Prior to leaving in 2003 they received no guidance or training regarding PSCs. 2. The division always has a brigade ready to deploy with hours. According to the Major, there this brigade has not received any training on working with PSCs or the PCO or ROC. 3. According to _______________, who served as a battle captain for one of the division’s brigades, his unit did not know that there were PSCs in the battle space until the PSCs began to contact them for assistance He described the coordination between the PSCs and his unit as non-existent. 4. The Captain thought that coordination should work through MNF-I as it did for the Iraqi Survey Group. The Command would issue a frago and the unit would provide assistance for the survey group as directed by in the frago. 5. _______________ that it would be helpful to have more information about who was in the batttlespace and the Captain said that the PSCs needed to let the military know when they would be in their area and give the units as much notice as possible. 6. The division has talked about the complex battlefield in terms of NGOs and coalition forces but they have not discussed PSCs, specifically. Page 1 Record of Interview Questions Regarding Private Security Contractors Command and Control f Private Security Contractors Our current understanding is that the military services directly contract for security of military facilities, that some DOD contractors may contract for security for their personnel, and that civilian government agencies and their prime contractors contract for security in Iraq and possibly elsewhere. While it is our understanding that _______________ not contract for security of military facilities in Iraq, we also understand that the MOM may have come in contact with private security contractors frequently while in Iraq. That is the context for the following questions. Background: I served as the Operation Officer for the _______________ _______________ _______________ , the Squadron’s mission was to provide security escort to the Coalition Provisional Authority in Baghdad Iraq. The Squadron conducted over 5500 escort missions for CPA. Numerous missions involved interaction with _______________ security personnel o _______________ security personnel. From APR 04 to JUL 04 the Squadron conducted operations in Ad Diwaniya, Iraq. While in Ad Diwaniya the Squadron occupied Camp Wolfpack (formerly camp Foxtrot). This camp was occupied by the Squadron as well as a small contingent of CPA employees with their assigned security contractors from _______________ security. I currently serve as Regimental X0. I. What guidance did CENCTOM or CJTF-7 issue for dealing with the private security contractors? Did the guidance differentiate between contractors providing security for U.S. government agencies and those providing security for contractors? Did the _______________ velop any policies or guidance? If any policies or guidance were provided or developed please provide us with a copy. I do not recall any guidance from CETCOM or CITE-7 for dealing with security contractors. The Regiment did not publish any specific guidance in dealing with contractors. At the Squadron level we coordinated our activities with the security contractors to ensure the safety and security requirements of our operations were met. 2. What is the command and control relationship between military commanders and subcontractors that provide security to DOD contractors? What authority do the military chains of command have over private security contractor personnel and how is that authority exercised? I am not aware of any formal C2 relationship between security contractors. The Squadron Commander executed his command authority over his area of responsibility. Policies and standards for operations and conduct were published for our soldiers and were expected to be adhered to by contractors operating in our battle space. The X0 or I met with contractors daily to discuss operations. We all had a common understanding of our mission and worked together to achieve success. If there was a problem, it was addressed to the appropriate level of supervision at the CPA headquarters or in Diwaniya with the CPA Chief. Ultimately, the military commander retained authority for all operations. If security contractors wanted to conduct missions that would compromise security or endanger lives, the Commander would strongly advise against it or flat out cancel it. Military Commanders had no disciplinary oversight over contractors. 3. What is the command and control relationship between military commanders and firms that are contracted by the U.S. Government to provide security for State Department, USAID, or other government personnel and facilities in Iraq? What authority do the military chains of command have over private security contractor personnel and how is that authority exercised? Again, I am not sure of the official C2 relationship that existed between contractors and the military. Commanders do not have authority over contractors, but do establish credible relationships based on experience and a common mission. The vast majority of the contractors I dealt with were extremely professional and had a great deal of military experience. 95% of the time we worked together there were no issues. In most instances of this relationship, we provided additional security (outer and inner cordon) for high profile officials. When refining plans and operations to protect these people, the Squadron was ultimately responsible for the security of the VIP. Contractors provided the inner cordon of security and coordinated routes and activities of the VIP. 4. What is the command and control relationship between military commanders and the private security contractors who are providing security to contractors who have been awarded contracts by US government civilian agencies to rebuild Iraq? What authority do the military chains of command have over private security contractors and their personnel and how is that authority exercised? We did not deal with these security firms. Interaction Between Private Security Contractors and US and Coalition Military Forces I. Can private security contractor personnel call on U.S. military commanders for support in case of trouble? What procedures are currently in place for private security contractors to call upon military commanders for help? I do not know the legal answer to this question. I know that anyone in the battle space we controlled that was in trouble got the help they needed. On numerous occasions we provided support to CPA contractors who were in trouble. We had established relationships with these organizations that knew how to contact us at our operations center by cell phone or by coming to the TOC. Ultimately, the Commander made the decision to provide any assistance. 2. What responsibility, if any, do military commanders have to defend, rescue, or search for missing private security contractor personnel, if they are (a) United States citizens or (b) foreign nationals? I believe Commanders have the responsibility to safeguard personnel who are engaged in the business of building a safe and secure environment in Iraq. On several occasions we went to the assistance of contractors, both military and others, who were in imminent danger from a hostile threat in our battle space. 3. What efforts have been made to promote interoperability between private security contractors and U.S. and coalition military forces? I do not know of any besides fostering a professional relationship based on the common goal of providing security for contractors and then CPA personnel in Iraq. 4. What interoperability exists between the communications equipment of military units and private security contractors? If there is no interoperability or the extent of interoperability is unknown, what plans, if any, are there to establish or improve interoperability? There was no commonality in communications between military and private contract services. Even among different contractors there were different communication systems. The only common link was by cell phone. Our Squadron never had the assets to loan such systems to contract security personnel. Doing so may also compromise the security of US forces. When we had to work together or needed a shared communication network, the contractor would loan us some of their radios. 5. What mechanisms are there for intelligence sharing between private security contractors and United States or coalition troops? We would share limited intelligence with private contract services. Most of the information we provided pertained to route security, recent attacks, emerging tactics, techniques and procedures the enemy was using and the current enemy situation in our battle spaces. Information concerning targeting of insurgents and information concerning operations we were conducting was not shared. The contractors provided us another source of information with their internal contacts on numerous occasions that helped in developing our targeting. 6. To what extent do, private security contractors share their intelligence information with United States and coalition troops? Again, established a very professional relationship based on mutual trust and a common mission. They knew we gave them as much information as possible to conduct their operations to fulfill the mission to protect their primaries. They also understood that we could not divulge all information based on operations security. In turn they were very fourth coming in providing information to us on their experiences and what they had seen. This was especially true in Ad Diwaniya, and with _______________ curity personnel in Baghdad. 7. What procedures are in place between military commanders and private security contractors for coordination of movement of contractor personnel through U.S. and coalition military sectors in Iraq? Contractors that worked in our battle space coordinated all of their moves through our operation center. Other contractors traveling in or through our space did not coordinate. While in Baghdad, the Squadron coordinated all of its movement through other units battle at least 24 hours prior to moving through that area. I do not believe contractors have that capability based on their communication equipment compatibility to coordinate their movement with the military unless they coordinate through JTF-7. 8. What procedures are in place for movement of private security contractor personnel through military checkpoints? Contract security had to adhere to the same procedures as any other civilian agency coming onto our compound in Ad Diwaniya unless special arrangements were made. Special arrangements were made when the contractors were escorting high level VIPs. Coordination measures included visual signals, cell phone calls and convoy descriptions and composition. These convoys moved through our checkpoints unhindered to prevent them from stopping in a possible vulnerable area susceptible to attack. Contractor access was an issue in the green Zone in Baghdad. 2d BDE, 1 AD had numerous issues with contractors escorting CPA and Iraqi Government personnel entering the Green Zone. It was a constant challenge for the 2d BDE force protection officer to enforce entry standards with contractor personnel. 9. What impact (if any) did having private security contractors in Iraq have on the ability of the ______________ I can only speak in terms of the Squadron I worked with and the battle space and missions we conducted. The contractors did have an impact, but most of it was from outside requirements generated at higher levels. The impact they had was the request for additional security support in moving VIPs or conducting missions during periods of heightened tension. On one occasion, when the Squadron was conducting operations in Najaf, the contractors escorted the CPA chief to the town of Afak without our knowledge. While in Afak, the party was surrounded by hostile forces while attending a meeting at the city government building. An aggressive fire fight ensured. The Squadron had to react rapidly to send a relief column to rescue the party. This event did have a significant impact on our operations. 10. What actions should be taken to improve the interaction between private security contractors and the military in Iraq? Standards of conduct that apply to all contractors that clearly define lines of communication and authority. Specifically, we continually had problems with contractors carrying loaded weapons on secure military compounds and in our dining facilities. If the contractor is actively engaged as a body guard for a VIP, this is no problem. Other than that they should not carry loaded weapons on US compounds. We strictly enforced this standard and escorted many contractors off our installation that refused to comply. Standards also need to be enforced to notify unit commanders of contractors operating in their battle space. Standardized communications would also be a great help. 11. Did the ______________ complete after action reports or incident reports on any of its interaction with private security companies? If so, please provide us with copies? We did not do an AAR concerning private security contractors. 12. Is SJA aware of any incidents of contractors violating U.S. or Iraq law (besides the prison incidents)? If yes, how were these dealt with? I am not aware of any violations. The contractors we dealt with had very limited if any contact with the Iraqi people. Final Comment. The contractors we dealt with were mainly from ______________and ______________ The vast majority that I dealt with were professional and worked with us very well. Any issues concerning standards and operations were addressed immediately to the leadership of these organizations and resulted in immediate rectification. There is an air of friction and contention in dealing with contractors. This is especially true in the Green Zone. The contractors that worked with ______________ Baghdad and the team in Diwaniya were very professional and assisted us greatly. The security team ______________ (all senior prior service special operation forces soldiers) even provided the troopers of my Squadron training in urban movement techniques, VIP escort techniques, small arms engagement techniques and defensive driving. This being said, there are still an enormous amount of contract act security that roam the Green Zone with seemingly limited adult supervision. This group creates an image of a pseudo mercenary army in the green zone. Soldiers have little regard for them bordering on contempt for their lack of standards and discipline. The fact that these private security contractors earn 7 to 8 times the pay of the soldiers adds to this. Several soldiers were hired into lucrative contracts as private security contractors and left the Army for that occupation. Questions Regarding Private Security Contractors Command and Control of Private Security Contractors Our current understanding is that the military services directly contract for security of military facilities, that some DOD contractors may contract for security for their personnel, and that civilian government agencies and their prime contractors contract for security in Iraq and possibly elsewhere. While it is our understanding that the ______________ did not contract for security of military facilities in Iraq, we also understand that the ______________ may have come in contact with private security contractors frequently while in Iraq. That is the context for the following questions. Background: I served as the __________________________________________________________________________________________________________________________________________________________ responses will be from the perspective of my duty positions held and the time served while deployed in support of Operation Iraqi Freedom. 1. What guidance did CENCTOM or CJTTF-7 issue for dealing with the private security contractors? Did the guidance differentiate between contractors providing security for U.S. government agencies and those providing security for contractors? Did the ______________ velop any policies or guidance? If any policies or guidance were provided or developed please provide us with a copy. I am unaware of any formal, specific guidance provided by CENTCOM or CJT-7. We developed internal, informal procedures as the situations arose . These policies continued to be refined over time as the situation continued to develop. 2. What is the command and control relationship between military commanders and subcontractors that provide security to DOD contractors? What authority do the military chains of command have over private security contractor personnel and how is that authority exercised? I am unaware of any formal command and control relationship that existed between contractors and military commanders. It was the general understanding that the military commander maintained complete and final authority of his battle space to include any persons operating within that area. 3. What is the command and control relationship between military commanders and firms that are contracted by the U.S. Government to provide security for State Department, USAID, or other government personnel and facilities in Iraq? What authority do the military chains of command have over private security contractor personnel and how is that authority exercised? I am unaware of any formal command and control relationship that was established between the military commanders and these organizations . Our specific cases were based on based on a professional relationship that took into account our responsibility towards the safety and security for all individuals within our battle space and the contractors recognized need for support due to their limited resources . We never encountered a situation that could not be resolved through discussion and prior coordination so the need to involve a higher headquarters to arbitrate a disagreement never arose. 4. What is the command and control relationship between military commanders and the private security contractors who are providing security to contractors who have been awarded contracts by US government civilian agencies to rebuild Iraq? What authority do the military chains of command have over private security contractors and their personnel and how is that authority exercised? I am unaware of a specific command and control relationship between military commanders and the private security contractors. Again, professional courtesy and open communications were the key to facilitate both military operations and the mission of these contractors. It was our “general understanding” that we held authority over these individuals since they operated within our battle space although we never had to exercise this authority. Interaction Between Private Security Contractors and US and Coalition Military Forces 1. Can private security contractor personnel call on U.S. military commanders for support in case of trouble? What procedures are currently in place for private security contractors to call upon military commanders for help? It was our common understanding that we would provide assistance to any individual or groupthat required it in order to maintain security and stability within our area of operations. Numerous times, security personnel would conduct coordination with our unit in order to synchronize their movements and activities . The majority of this coordination was conducted in person due to the lack of communication interoperability. 2. What responsibility, if any, do military commanders have to defend, rescue, or search for missing private security contractor personnel, if they are (a) United States citizens or (b) foreign nationals? As the military authority within our area of operations, our commander considered it his responsibility to provide assistance to any individual or group (whether U.S. citizen or foreign national) within his battle space that required it. 3. What efforts have been made to promote interoperability between private security contractors and U.S. and coalition military forces? Cellular phones were the only common communications means that were available to communicate with private security contractors. These systems were unreliable and were extremely limited in availability . Often, liaisons were posted in close proximity to our operations center in order to facilitate coordination. What interoperability exists between the communications equipment of military units and private security contractors? If there is no interoperability or the extent of interoperability is unknown, what plans, if any, are there to establish or improve interoperability? Cellular phones were the only communication assets that were available to communicate and significant distance with private security contractors. If operating in close proximity on occasions we provided “Talk-About” style radios to contractors to be able to communicate. 5. What mechanisms are there for intelligence sharing between private security contractors and United States or coalition troops? Limited intelligence was shared with private security contractors and the type and amount of intelligence was strictly controlled by the commander. The majority of information pertained to recent enemy contact, route status, and local points of contact. 6. To what extent do private security contractors share their intelligence information with United States and coalition troops? On multiple occasions, security contractors would share information with our operations center. This information was mainly anecdotal in nature and would be cross-checked with current on-hand intelligence. 7. What procedures are in place between military commanders and private security contractors for coordination of movement of contractor personnel through U.S. and coalition military sectors in Iraq? I am unaware of any specific procedures that were in effect to coordinate the movement of contractors within our battle space. Over time; contractors realized that it was in their best interest to contact the local military authority and conduct coordination before beginning movement 8. What procedures are in place for movement of private security contractor personnel through military checkpoints? Contractors were required to adhere to all standard operating procedures while passing through our checkpoints unless prior coordination was conducted. 9. What impact (if any) did having private security contractors in Iraq have on the ability of ______________ to perform its mission? On numerous occasions, short notice plans would be developed in order to support a security contractor’s mission within our battle space. This resulted in less than complete instructions being relayed to the troops potentially supporting these contractors and reduce the time available to them to prepare for any contingency missions. 10. What actions should be taken to improve the interaction between private security contractors and the military in Iraq? In my opinion, a central coordination cell should be formed that provides a means of coordinating between various private contractors. These cells should be established at the headquarters of each brigade sized element in order to facilitate the timely sharing of information. 11. Did the ______________ complete after action reports or incident reports on any of its interaction with private security companies? If so please provide us with copies? No AARs or reports were developed concerning these matters by our unit 12. Is SJA aware of any incidents of contractors violating U.S. or Iraq law (besides the prison incidents)? If yes, how were these dealt with? I am unaware of any such incidents occurring within our area of operations.

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David Isenberg: The GAO Transcripts: Part 4, A British PSC Viewpoint

June 28, 2010

Here is another installment of the Government Accountability Office interview transcripts that were prepared pursuant to the July 2005 GAO report ” Rebuilding Iraq: Actions Needed To Improve Use of Private Security Providers .” This April 28, 2005 interview as conducted with an official of what is clearly a British private security contractor. It is not absolutely clear who the contractor is, although there are portions of the transcript where the magic redacting marker was not as thorough as it should have been and the last word “Group” of the company name appeared. That would suggest companies like Control Risk Group, Hart Group or even ArmorGroup. The GAO report lists the names of the contractors it interviewed in its Appendix (p. 56). and ArmorGroup, Control Risk Group, and Hart Group are listed. As Hart Group previously had a contract to guard the Baghdad airport and was known to have hired many South Africans it seems a likely candidate. But, of course, I can’t be sure. Control Risks Group also did airport security work and doubtlessly has also had South Africans working for it. Standard disclaimer: I have put in ( _____ ) to reflect those words of phrases which have been blacked out in the transcript. I have also put in the underlining as it appeared in the original transcript. As in the transcript, I have left out letters from various words, even when it seems obvious what the word is. Anyway, here is how one British PSC viewed life in the sandbox. Prepared by: Carole Coffey Index Date Prepared: April 28, 2005 DOC Number: Type document number he Reviewed by: Steve Sternlieb DOC Library: Goal Job Code: 35051 Record of Interview Title Interview With ____________ Purpose To obtain information r e ____________work in Iraq Contact Method Face to Face Contact Place ____________ ____________ Contact Date April 8, 2005 Participants Steve Sternlieb Assistant Director, DCM Carole Coffey, AIC DCM Comments/Remarks: Company Description and Security Overview 1. What contracts does ____________ have in Iraq? • For confidentiality reasons, ____________ did not provide us with a complete list of the companies/organizations that employ them. However, they are employed by ________________________________________________ ____________ such as ____________ They also provide security to the U.S. Treasury in Iraq as subcontractor. 2. What types of security (convoy, personal security, facilities) does ____________ provide for contractors and government agencies in Iraq? • The representatives of ____________ explained that they are risk management and consulting firm however; in Iraq provide the full range of security services to their clients to include personal security details, escort service etc . They generally do not provide convoy security but if a client needs such services they will subcontract the services and manage the subcontractor. For reconstruction contractors they will escort the clients to the work site, protect the work site and escort the clients back to their camp. While they generally do not provide static security the will provide guards if the security situation and the client require them. Chain of Command and Military Interaction 1. Do any contracts require ____________ mployees to coordinate with the U.S. military? If contracts do require coordination, how does ____________ its employees coordinate with the U.S. military? Has ____________ established any procedures for working with the military? Has the military established any procedures for working with PSCs that ____________ aware of? 1 • ____________ has found that coordinating with the military can be a. mixed bag. Some U.S. units are very willing to establish a coordination relationship. Generally, when ____________ area manager arrives in a part of Iraq, he will make an effort .to meet with the commanders of the U.S. military in that part of the country. He will explain the company’s mission, discuss operating procedures and try to obtain contact information for the unit. According to the ____________ sk representative, some times the U.S. military commanders are very cooperative and very willing to coordinate. Other times, the commanders have no interest in meeting with the ____________ epresentatives and have no interest in coordinating or working with PSCs. According to the representative, the type of relationship depends on the personality of both the commander and the PSC representative . He noted that there was a great deal of coordination with the U.S. military wher ____________ ovided security for the ICE program. Every time they moved currency they coordinated their routes with the military. The representative said that they also got a lot of security assistance from the military. For example, the military would provide “top cover” (air escorts) and military patrols would go out before the money rnoved and clear the roads they would have military escorts. Has ____________ its employees ever requested military aid or backup? If so, please explain the incident and its consequences. What was your opinion of the assistance provided to you by the military? The military provided QRF assistance on several occasions, particularly during the ICE program. In addition, we have received medical assistance from the U.S. which been excellent. In response to my question, the ___________ representative said that it did not matter the nationality of the employee or on what contact he or she may be working on when medical assistance was needed it was always provided. The PCO’s ROC, Movement Coordination, and Communication How does ____________ view the success of the PCO and the ROC? How could the PCO and ROC be improved? The ROC has not had much on an impact on large security operations like ____________ have proved very helpful to smaller companies. ____________ the ROC to obtain information on the BIAP road. Has ____________ utilized the CO website? If so, how helpful is the website? • epresentatives expressed some concerns about the currency of the data on the web site as well as the accuracy. Interaction with other Private Security Companies Page 2 1. Does ____________ have interaction with other private security contractors? If so, please describe this interaction. • __________ little interaction with other PSCs in Iraq. Interaction with the Iraqi Government Is ___________ registered with the Ministry of Interior and the Ministry of Trade in Iraq? What has your company’s experience been with the Iraqi Government? 4. ___________as registered with the MOT and MOT. Also ___________ a contract with the Iraqi government to provide security for BIAP and has had some problems getting paid by the Iraqi government. Employees 1. How many U.S. citizens work for ___________ in Iraq? ___________ Group employs U.S. citizens in Iraq are any of them former U.S. military? If the company employs former U.S. military were these employees hired when they separated from military or did they work for other PSCs prior to joining ___________Group? • 19 U.S. citizen employees presently ; their western ex pats generally come from former commonwealth countries (South Africa, Australia) and from Britain. Their 3rd country nationals (TCNS) come from Nepal, Fiji, and Sri Lanka. Also, we hire Iraqis as well 2, What are the employment arrangements for individuals working in Iraq for ___________ Are they company employees or are they independent sub-contractors? _________________________________ Page 3 Legal Issues Related to Working in Iraq 1. What is the legal status of ___________ mployees working in Iraq? Do you have any concerns regarding issues of immunity from Iraqi law? • ___________did that ___________as some concerns regarding immunity from prosecution should something happen while their employees were acting within the scope of the contract. For example, if someone died in a traffic accident. They are very uncomfortable regarding the immunity issue and believe it needs to be resolved now. Are you aware of the Military Extraterritorial jurisdiction Act (MEJA) and its possible ramifications for your employees (U.S. citizens and otherwise)? Did anyone provide you with information on MEJA? Do you have any concerns regarding MEJA or the application of other U.S. or international laws to your employees? • ___________as unaware of MEJA and had not received a briefing on it from there DOD contracting officer. 3. Have any of your employees been accused of committing any crimes while in Iraq? If so, were the incidents investigated by either Iraqi or U.S. authorities? How ___________deal with the accusations? What, if any legal steps were taken relating to these accusations, and by whom? No one employed by ___________ been accused of committing any serious crime while in Iraq. However, said that the company is not sure who would have jurisdiction if a crime was committed. Page 4

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Stocks, Pound, U.S. Futures Drop on U.K. Debt Concern Gold Reaches Record

June 8, 2010

By Claudia Carpenter June 8 (Bloomberg) — European stocks fell for the third day and the pound weakened after Fitch Ratings said Britain’s deficit challenge is “formidable,” adding to concerns that the region’s fiscal crisis is spreading. U.S. futures, copper and oil erased gains, while gold climbed to a record. The Stoxx Europe 600 Index slipped 1.3 percent, dragged down by E.ON AG and Tesco Plc shares, at 10:39 a.m. in London. Futures on the Standard & Poor’s 500 Index dropped less than 0.1 percent. Sterling declined 0.4 percent to $1.4414. Copper fell 0.3 percent, and oil retreated 0.4 percent. Gold futures for August delivery rose to $1,254.50 an ounce in New York. Fitch said the U.K. needs to accelerate plans to reduce its budget deficit. The warning came one day after Prime Minister David Cameron told Britons to expect years of spending cuts, while the European Union pledged tougher sanctions on governments that break deficit rules. “This is not a pretty environment for equity investors,” Dennis Gartman , economist and editor of “The Gartman Letter” said in a Bloomberg radio interview. “Prices are going to continue to more lower. We are revising down ‘guestimates’ for earnings. It’s the start of a bear market.” Benchmark indexes in the U.K., Spain, Germany, France and Italy declined more than 1 percent. E.ON and RWE, Germany’s biggest utilities, dropped more than 2 percent in Frankfurt after Germany signaled plans for levies on the nuclear power industry. BP Plc retreated 3.3 percent in London as the commander of the U.S. response team to the leaking Gulf of Mexico well said it’s still unknown how much crude continues to spill. Tesco, the U.K.’s biggest retailer, fell 2.8 percent after saying Chief Executive Officer Terry Leahy will retire next year. Asian stocks rose for the first time in three days after Federal Reserve Chairman Ben S. Bernanke said the U.S. recovery remains intact. The MSCI Asia Pacific Index gained 0.3 percent. To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net

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BP Oil Capture Rate Increases as Pace of Leak From Well Remains a Mystery

June 8, 2010

By Jim Polson and Jessica Resnick-Ault June 8 (Bloomberg) — BP Plc said more oil is being recovered from its leaking Gulf of Mexico well with a cap device, as the commander of the U.S.’s spill-response team said it’s unknown how much crude continues to leak. A drillship above the leak recovered 7,541 barrels of oil in the 12 hours to midday yesterday, BP said on its website last night. Sustained over 24 hours, that would be 36 percent more than the 11,100 barrels the London-based company gathered June 6. BP said it will give its next update on the recovery rate at 9 a.m. U.S. central daylight time. A governmental scientific team will reassess its estimates of the spill amount, which ranged from 12,000 barrels to 25,000 barrels a day, after BP stabilizes the recovery rate, U.S. Coast Guard Admiral Thad Allen , the national incident commander, said yesterday at a press conference at the White House. “We’re groping in the dark trying to figure out what our recovery capacity should be,” said Ian MacDonald, an oceanographer at Florida State University in Tallahassee. “They keep painting themselves into a corner and having to abandon the positions that they held before because they were not truthful about this, and didn’t try to get real numbers.” BP recovered 10,500 barrels on June 5 and 6,077 in the previous 24-hour period ending at midnight June 4. The oil is piped to a vessel at the surface with capacity to handle 15,000 barrels a day. BP said it burned off 15 million cubic feet of gas in the 12 hours to noon yesterday. Spill Estimates MacDonald estimates the well is leaking 26,500 barrels to 30,000 barrels a day, six times more than the figure used by BP and the government from April 28 to May 27. The spill, which is the largest in U.S. history based on the government estimates, has polluted 140 miles (225 kilometers) of shoreline, reduced offshore drilling in the nation by half, menaced tourist beaches in four states, and cost BP more than $1.2 billion. The resulted from the explosion of the Deepwater Horizon rig on April 20 and won’t be stopped until the well is plugged by so-called relief wells no earlier than August. BP is preparing to process another 5,000 barrels a day at the site by hooking up a drilling rig this month, Allen said. BP intends to reverse the flow through lines used for the failed top kill attempt so that oil and gas can flow to the Q4000, the floating rig it also used to try and plug the well, Allen said. BP has said that system will be in place by mid- June. Scientific Panel The government scientific panel can’t reassess its estimates until BP stabilizes the flow to the drillship through a cap installed June 3, Allen said. The panel also can’t check its estimate that cutting away a section of kinked pipe, necessary to fit the cap, raised the spill rate by as much as 20 percent, he said. “We’d love to know” how much oil is skirting the cap, Kent Wells, a BP senior vice president, said yesterday in a briefing with reporters. The test of the system is whether it reduces the amount of oil on the surface, he said. Winds that had held the bulk of the oil east of Louisiana shifted, breaking up the slick into sections that are soiling Louisiana and threatening beaches in Florida, hundreds of miles away, Allen said yesterday. The Coast Guard is canvassing national inventories of oil-skimming equipment to see what can be spared for the Gulf, he said. ‘Changing Enemy’ “We’re adapting to an enemy that changes,” Allen said. Allen has said that the spill response hasn’t been hampered by the lack of an accurate estimate of the leak, and that the estimate is mainly needed to assess damages against BP . BP had said it was prepared for a spill of 250,000 barrels a day in a Gulf deep-water response plan filed in 2008. The company has brought to bear all of the resources called for by that plan, Allen said yesterday. The government scientific panel, led by Marcia McNutt, director of the U.S. Geological Survey , said May 27 its best estimate of the spill rate was 12,000 to 19,000 barrels a day, based on separate analyses of the plume of oil from the well as shown on video and the extent of the slick on the surface of the Gulf. Scientists examining the plume estimated the leak might be 25,000 barrels a day, the panel said. Failure to plug the well with mud and cement on May 29 means BP can only capture oil to send to surface ships until relief wells stanch the flow, Allen said. By the end of June, BP intends to re-plumb the drillship containment system with a quick-release hose for tankers so that ships may detach and reconnect swiftly if a hurricane raises seas to unsafe heights, Wells said yesterday. To contact the reporter on this story: Jim Polson in New York at jpolson@bloomberg.net ; Jessica Resnick-Ault in New York at jresnickault@bloomberg.net .

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Coast Guard Forms Panel to Probe Ideas to Clean Up Oil Spill

June 4, 2010

By Pat Wechsler June 4 (Bloomberg) — Federal officials are creating a new panel to look into proposed technologies and products to clean up the Gulf of Mexico oil spill, concerned that BP Plc ’s multi- stage suggestion box system isn’t working. The new group will evaluate ideas from companies and scientists in five categories: oil detection, wellhead control, both traditional and alternative clean-up technologies, and damage restoration, said Commander Howard Wright, a Coast Guard spokesman. The group will be independent of BP’s online efforts to assess new ideas. The decision follows a report by Bloomberg News that BP has so far tested only four of almost 35,000 ideas submitted and implemented none. Under the new federally run system, proposals thought to be of benefit will be brought immediately to the attention of the National Incident Command, headed by Admiral Thad Allen , Wright said. “There has been a lot of concern that there are significant ideas not getting full voice,” Wright said in a telephone interview today. “The government wanted to make sure that all the best technology is being applied and there was good oversight of that process.” The new group will include representatives from the Coast Guard, National Oceanic and Atmospheric Administration, Department of Interior, Environmental Protection Agency and Department of Agriculture, Wright said. To contact the reporter on this story: Pat Wechsler in New York at pwechsler@bloomberg.net

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Berlusconi Rift With Party Co-Founder Hurts Popularity as Budget Cuts Loom

May 19, 2010

By Steve Scherer May 19 (Bloomberg) — Prime Minister Silvio Berlusconi ’s rift with his party’s co-founder Gianfranco Fini is hurting his popularity as the government prepares budget cuts to prevent the Greek crisis from spreading to Italy. Confidence in Berlusconi declined to 41 percent in May, the lowest since he won his third election in 2008, from 43 percent the previous month, an IPR Marketing poll of 1,000 Italians published yesterday showed. Fini and Berlusconi clashed at a nationally televised party meeting last month. “Italians perceive that Berlusconi isn’t the commander-in- chief he once was,” Antonio Noto , managing director of IPR, said in an interview. Berlusconi’s allies have raised the possibility of early elections as a way of getting rid of Fini, who founded the People of Liberty party with the premier in 2008. The dip in Berlusconi’s popularity comes as the government prepares for at least 25 billion euros ($31 billion) of deficit cuts by 2012 aimed at convincing investors it can trim the region’s largest debt and prevent further declines of its bonds caused by the fallout from the Greek bailout. The 73-year-old premier, whose family’s net worth is estimated by Fortune Magazine at $9 billion, has three years left in his term. Berlusconi, Italy’s biggest media owner, has named no heir, and Fini, 58, is a possible successor. The split between the two leaders intensified last month when Fini created a splinter group to challenge Berlusconi’s dominance of party policy. ‘Undermine and Sabotage’ Fini can “undermine and sabotage” the government, said Roberto D’Alimonte , a professor of politics at the University of Florence. It would be unwise to seek a vote now because “Italy’s Treasury has to sell tons of bonds every week,” D’Alimonte said. Italy’s debt, the world’s fourth biggest, remains under investor scrutiny even though the yield spread against the German bund is narrower than Spain and Portugal because Finance Minister Giulio Tremonti kept a lid on spending during the recession, leaving the country with a deficit smaller than France’s. Italy’s 1.76 trillion-euro debt trails only that of the U.S., Japan and Germany. Moody’s Investors Service said on May 7 that Italy isn’t among nations most at risk from Europe’s debt crisis, though the rating company said the country requires “decisive” debt reduction. ‘Political Crisis’ The extra interest that investors demand to hold Italian 10-year bonds over their German equivalents, the European Union’s benchmark government securities, rose to 106 basis points yesterday, up from 103.6 basis points May 17. The threat of contagion from Greece’s sovereign-debt crisis may mean that a vote can’t be held before next year, said Maurizio Pessato , chief executive officer of SWG Srl polling company in Trieste, Italy. “If there’s a political crisis now, and no one knows who will win or whether they will produce a solid majority, then the markets will lose confidence in Italy,” Pessato said. The root of the current political tension is about who will succeed Berlusconi, said Francesco Perfetti , a politics professor at Rome’s Luiss University . “A rational person might say the current economic situation rules out early elections. But Berlusconi doesn’t want Fini undermining him for three more years, so an early vote is a rather likely outcome.” ‘Monarchy’ The legislature is scheduled to end in 2013. Berlusconi’s dispute with Fini has simmered since last year. The prime minister “confuses leadership with absolute monarchy,” Fini said in November in comments captured by an open microphone as he spoke privately at a conference. The conflict came to a head during a nationally broadcast party meeting on April 22. After Fini criticized the premier for passing laws to resolve his own legal woes and for conceding too much on policy to the anti-immigration Northern League, a coalition partner, Berlusconi shouted from the podium that the house speaker should resign. “What are you going to do, fire me?” Fini replied. The next day, League leader Umberto Bossi said that the government was facing “collapse” and Italy would likely go to early polls. Bossi later backpedaled, rejecting an early vote. “It’s irresponsible to talk about early elections,” Fini said on April 25. “We’d run the risk of ending up in the same situation as Greece.” President Berlusconi might be tempted to seek an early election to take advantage of a fragmented opposition and to improve his chances of succeeding Giorgio Napolitano as president, D’Alimonte said. The president of the Republic is the country’s highest office. While the president’s powers are limited, he calls elections and chooses prime ministers. The position would allow Berlusconi to pick his successor. “Berlusconi thinks he can catch the opposition in a weak position and win, and then he’ll have another five years to position himself to become president of the Republic,” D’Alimonte said. The prime minister has a strong electoral track record. Even when he loses, it’s not by much. Berlusconi has won three elections since entering politics in 1994, and lost twice. In 2006, he was defeated by Romano Prodi’s coalition by less than 25,000 ballots. In 1996, he lost only after the Northern League withdrew its support. “Berlusconi loves elections, and he usually wins them,” said James Walston , a professor of international relations at Rome’s American University. “Everyone knows that.” To contact the reporter on this story: Steve Scherer in Rome at scherer@bloomberg.net

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Petraeus Says U.S. Is Stepping Up Commando Raids on Afghan Taliban Leaders

April 15, 2010

By Tony Capaccio and Lizzie O’Leary April 15 (Bloomberg) — The U.S. military has “substantially increased” its specialized counter-terrorism teams in Afghanistan designed to kill Taliban leaders, General David Petraeus , the head of U.S. Central Command, said today. The “operational tempo” in Afghanistan of so-called special mission units “is going to increase in the months ahead,” Petraeus said in an interview in Washington. Alongside that military effort, the U.S. is working with President Hamid Karzai on his plan for a loya jirga, or tribal assembly, next month to discuss possible reconciliation with some Taliban loyalists, the commander said. The U.S. has “increased our special mission unit effort there, which substantially increased the numbers of our ‘special’ special operations forces, our counter-terrorist forces,” he said. The increased missions are part of a strategy intended to deny Taliban leaders unlikely to give up the fight any sanctuary in Afghanistan. The U.S., NATO and Afghan allies are seeking to secure population centers and train the country’s police and soldiers to take control starting in July 2011. U.S. special forces “have been going after the Taliban leaders and the leaders of the other extremist elements that cause problems for our troopers and Afghanistan partners at a higher operational tempo in recent months,” Petraeus said. “I don’t think you should ever assume that there is a location in Afghanistan that is beyond the reach of our forces,” Petraeus said. ‘Fusion Cells’ The U.S. has set up “intelligence fusion cells” in Afghanistan similar to those established during the 2007 surge of forces in Iraq. The cells integrated commando and conventional forces with intelligence agencies to carry out quick attacks on suspected terrorists, Petraeus said. These cells “help everyone — not just to help special mission units, that was to help all forces,” he said. The U.S. and NATO commander in Afghanistan, General Stanley McChrystal , directed the Iraq efforts and has consolidated all special operations — including special mission units — under his authority. U.S. intelligence agencies and elite special-forces units in Iraq worked in “fusion cells” that consolidated and analyzed real-time information from informants, satellites and eavesdropping on top al-Qaeda operatives. The strategy enabled quick, focused strikes. ‘Decapitation’ Strikes McChrystal, in a Dec. 10 interview, said the most effective approach to attacking al-Qaeda is not to strike solely at the leaders – “decapitation” strikes such as the U.S. endorsed after the Sept. 11 terrorist attacks. “What I have come to believe is you take the middle of the network — experienced professionals,” he said on PBS Television’s Charlie Rose show. The U.S. also is working more with Karzai on his plan to move toward a peace agreement with the Taliban. Petraeus said Afghan leaders persuaded him and other U.S. officials including special envoy Richard Holbrooke during a meeting in Kabul earlier this week that they had a plan for reaching a “national consensus” on terms for reconciliation. The process would include interests such as those of women in Afghanistan, the commander said. National Consensus “A light came on for a number of us about the importance of the peace jirga and the importance of national consensus,” Petraeus said. “There’s a very sophisticated analysis on the Afghan side.” Actual reconciliation, or bringing members of the Taliban into the government, isn’t likely until after they see the prospect of defeat, Petraeus said, referring to a position often expressed by Defense Secretary Robert Gates . “That’s not to say there shouldn’t be an effort to achieve national consensus on reconciliation, should the opportunity present itself,” Petraeus said. In the meantime, the country’s leaders need to agree on “what are the red lines for the different communities within Afghanistan,” he said. To contact the reporters on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net ; Lizzie O’Leary in Washington at loleary2@bloomberg.net

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Obama Makes Unannounced Visit to Afghanistan as U.S. Steps Up Taliban War

March 28, 2010

By Hans Nichols March 28 (Bloomberg) — President Barack Obama landed in Afghanistan today on an unannounced visit to meet with Afghan government officials and get a briefing from U.S. military leaders on progress in the eight-year-old war. “I’m encouraged by the progress that’s been made” in Afghanistan, Obama said after meeting with President Hamid Karzai in Kabul. He called for more work by Afghanistan’s leaders to root out corruption and improve governance. Obama’s in the country as the U.S. role there is growing with an escalation of forces that he ordered and allied troops are engaged in an offense against the Taliban in southern Afghanistan. Landing at Bagram airfield under the cover of darkness, Obama travelled the 50 miles to Kabul by helicopter to meet with Karzai at the presidential palace. Obama also is holding a separate session with Karzai’s cabinet. Obama’s visit, his first to Afghanistan since becoming president, is intended to emphasize U.S. calls for the Afghan government to crack down on corruption, fight drug trafficking that helps fund the insurgency and institute merit-based systems for government appointments, according to James Jones , Obama’s national security adviser. “We plan to engage President Karzai as we’re going to make him understand that in this second term that there are going to be certain things he has to do as the president of his country that have not been paid attention to almost since day one,” Jones told reporters aboard Air Force One. Jones downplayed suggestions of tension between Obama and Karzai, saying, “I don’t think there’s any daylight between the two.” Karzai Invitation Obama invited Karzai for talks in Washington in May. “I want to send a strong message that partnership between the United States and Pakistan is going to continue,” Obama said. “We have seen already progress with respect to the military campaign against extremism, but we also want to continue to make progress on the civilian side.” While in Afghanistan, the president also plans to speak before U.S. troops and receive briefings from the commander he installed last June, General Stanley McChrystal , and Ambassador Karl Eikenberry , said press secretary Robert Gibbs . “One of the main reasons I am here is to just say thank you for the extraordinary efforts of our U.S. Troops,” Obama said. “All of us want to see a day when Afghanistan is going to be able to provide for its own security.” The trip, shrouded in secrecy because of security concerns, capped a week in which the president won a major domestic victory with passage of a sweeping overhaul of the U.S. health- care system and announced completion of a nuclear arms reduction treaty with Russia. Shift to Afghanistan Obama campaigned for office on a pledge to shift U.S. military resources from Iraq to Afghanistan. A year ago he ordered 17,000 combat troops and 4,000 trainers to the country ahead of Afghanistan’s elections. In December, Obama ordered another 30,000 forces be sent to the country, which ultimately will expand the number of military personnel to 100,000. At the same time he asked North Atlantic Treaty Organization countries to contribute more resources to the war. The escalation is intended to reverse Taliban gains and train afghans to take control of their country so American forces can begin withdrawing in July 2011. The U.S. is leading a drive against the Taliban in southern Afghanistan. A 30-day offensive by 15,000 Afghan and North Atlantic Treaty Organization troops, including U.S. Marines and British forces culminated earlier this month with allies taking control of the town of Marjah. Next Target It was the biggest operation against the Taliban since the 2001 U.S.-led invasion of Afghanistan following the Sept. 11 attacks by al-Qaeda. Officials have said they are making plans for an even bigger assault on the Taliban heartland city of Kandahar. As part of the Obama administration’s strategy, the U.S. also has strengthened its relationship with the government of neighboring Pakistan as well as with the Afghans. Jones and Deputy National Security Adviser Douglas Lute emphasized the importance of a regional approach to Afghanistan’s stability and said they are encouraged by the role Pakistan is playing. In 30 days, Karzai will convene a peace council with Afghan tribal and regional leaders, Lute said. Then in early May he hopes to host a foreign ministers conference in Kabul. Some Progress The effort has resulted in the capture of some top Taliban leaders in both countries and increased pressure of remnants of al-Qaeda hiding in tribal areas of the border. The U.S. is still deploying the 30,000 additional troops that Obama authorized. The U.S. will have 98,000 troops there by Sept. 30 for a total of almost 150,000 from all 34 countries in the NATO-led coalition that aims to reverse Taliban gains and train Afghan security forces to begin taking over by July 2011. Defense Secretary Robert Gates , testifying to the Senate Appropriations Committee on March 25 said the Afghan army is making “real strides” and that changes are being made to improve training of Afghan police officers. To contact the reporter on this story: Hans Nichols in Afghanistan at Hnichols2@bloomberg.net ;

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Netanyahu Accepts Broad Middle East Talks While Standing Firm on Jerusalem

March 22, 2010

By Gwen Ackerman and Peter S. Green March 22 (Bloomberg) — Israeli Prime Minister Benjamin Netanyahu arrives in Washington to meet President Barack Obama after accepting some U.S. demands to calm a dispute over east Jerusalem construction plans and remove obstacles to peace talks. Netanyahu dropped previous objections to raising central issues of the Israeli-Palestinian conflict during proposed U.S.- mediated “proximity” talks with the Palestinians intended to pave the way for direct negotiations. “Was Netanyahu’s arm twisted into making this last concession, and may the Americans twist more?” said Dan Schueftan , a political scientist at Haifa University. “The answer is yes.” It remains uncertain whether Netanyahu’s move will fully satisfy the U.S., or the Palestinians who want Israel to freeze all settlement construction including in east Jerusalem, a condition the prime minister continues to resist. At stake are whether the proximity talks will begin, and whether the U.S. and Israeli governments can repair the damage to their relationship created by the housing dispute. Netanyahu told his Cabinet yesterday that in the proximity talks “each side will be able to raise its positions on all the issues in dispute.” That opens the way for discussion on the future status of Jerusalem and Palestinian refugees, issues that have proven the most intractable in resolving the conflict. Meeting With Envoy Netanyahu met in Jerusalem afterwards with the U.S. Middle East envoy George Mitchell . He received a formal invitation to meet Obama tomorrow just hours before boarding his plane for the trip to Washington. While in the U.S. capital, the prime minister is also scheduled to meet Secretary of State Hillary Clinton and address the U.S.’s largest pro-Israel lobbying group, the American Israel Public Affairs Committee . He will dine with Vice President Joe Biden tonight. Netanyahu’s agreement “to negotiate final status issues” is “one step in the right direction,” said Palestinian Authority spokesman Ghassan Khatib . “We are waiting to hear the Israeli response to the rest of the requirements, especially the issue of illegal building of settlements in occupied territories, including Jerusalem.” Jerusalem Policy Netanyahu yesterday reiterated the long-held Israeli position that all of Jerusalem is Israeli territory. “Our policy toward Jerusalem is the same policy of all Israeli governments in the past 42 years and it has not changed,” Netanyahu said before the Cabinet meeting. “From our point of view, construction in Jerusalem is like construction in Tel Aviv.” Israel’s TA-25 Index closed 0.5 percent lower at 1,209.09 yesterday. The benchmark Mimshal Shiklit note due February 2019 dropped 0.19 shekel to 109.36 at the close. The yield on the 6 percent security rose four basis points to 4.75 percent. The announcement during Biden’s visit to Israel earlier this month that Israel had approved plans to build 1,600 new housing units in east Jerusalem derailed the planned start of the proximity talks and earned the Netanyahu government rebukes from Biden, Obama and Clinton. Israel captured east Jerusalem from Jordan in the 1967 war and its annexation of the area later was never internationally recognized. Palestinians seek the territory as the capital of a future state. ‘Mutual Confidence-Building’ In a telephone call with Clinton on March 18, Netanyahu proposed “mutual confidence-building steps” for Israel and the Palestinian Authority to defuse the tensions over the east Jerusalem project. According to a U.S. official who spoke on condition of anonymity, Washington seeks a freeze of the planned housing units along with gestures to bolster the Palestinian Authority. “It’s not about any one particular action,” Clinton said in a March 19 interview with Bloomberg TV. “It’s about the overall atmosphere that is necessary to demonstrate clearly and unequivocally the commitment to the negotiations and the outcome of a two-state resolution.” ‘Time to Resolve’ Biden said March 11 that because construction of the housing units will take several years, “it gives negotiations the time to resolve this, as well as other outstanding issues.” Netanyahu is considering more gestures to the Palestinians, said an Israeli official, speaking on condition of anonymity because he wasn’t authorized to discuss the issue with the press. They include easing restrictions on the Gaza Strip, the official said. Gaza is controlled by the Islamic group Hamas, which the U.S. and Israel regard as a terrorist organization. Both Netanyahu and Obama have much at stake in resolving the disagreement over the housing plan. For the U.S., making progress on the Israeli-Palestinian conflict is important to win Arab support for stopping Iran’s nuclear program, withdrawing U.S. troops from a stable Iraq and battling extremists in the Middle East, Afghanistan and Pakistan, according to U.S. officials. “Arab anger over the Palestinian question limits the strength and depth of U.S. partnerships with governments and peoples” in the Middle East and South Asia and “weakens the legitimacy of moderate regimes in the Arab world,” General David Petraeus , the commander of U.S. forces in the Middle East, told a U.S. Senate committee March 16. Netanyahu is faced with the potentially competing priorities of preserving his governing coalition, which includes elements such as the religiously oriented Shas party that support the east Jerusalem housing project intended for Orthodox Jews, and maintaining Israel’s relationship with its chief strategic ally. Obama said March 17 that he doesn’t see a crisis in relations with Israel. “Israel’s one of our closest allies and we and the Israeli people have a special bond that’s not going to go away,” Obama said in an interview with the Fox News Channel. “But friends are going to disagree sometimes.” To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net . Peter S. Green in New York at psgreen@bloomberg.net

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`Don’t Ask, Don’t Tell’ Ban on Openly Gay Service Members Gets U.S. Review

February 2, 2010

By Peter S. Green and Anthony Capaccio Feb. 2 (Bloomberg) — Defense Secretary Robert Gates said openly gay persons should be allowed to serve in the U.S. military and that the Pentagon will conduct a yearlong study of steps it must take to lift its “don’t ask, don’t tell” policy. “It’s the right thing to do,” said Admiral Michael Mullen , the military’s top uniformed officer, who testified alongside Gates before the Senate Armed Services Committee. Gates said Pentagon General Counsel Jeh Johnson and General Carter Ham , the Army’s top commander in Europe, will lead the review. He said he wants the study to “minimize disruption and polarization within the ranks,” without disturbing troops deployed on the front lines. President Barack Obama reiterated in his State of the Union address Jan. 27 his campaign pledge to seek repeal of the current rule. “The question before us is not whether the military makes this decision but how we best prepare for it,” Gates said. “We received our orders from the commander-in-chief, and we are moving out accordingly.” “The ultimate decision rests with you, the Congress,” Gates said. He urged lawmakers to help ensure that politics have “minimal influence” on the process. The Senate committee’s ranking Democrat and Republican immediately split in reacting to Gates’s announcement. ‘Discriminatory Policy’ “We should repeal this discriminatory policy,” said panel chairman Carl Levin of Michigan. “We should not be seeking to overturn” the policy “at this moment,” said Republican John McCain of Arizona. That “would present yet another challenge to our military at a time of stress and strain.” He held aloft what he said was a letter opposing the change signed by “over 1,000 former general and flag officers.” Gates said he “fully” supports the decision of “the commander-in-chief.” He said that reviewing how to implement “a fundamental change in personnel policy” would take a year because it demands “a thorough examination of all the issues.” The “don’t ask” policy, implemented after President Bill Clinton tried to repeal the ban on gays in the military in 1993, allows homosexuals to serve as long as they don’t tell or aren’t called out by other soldiers. 13,000 Forced Out The policy forced as many as 13,000 service members to leave the military from 1994 to 2008 at a cost of more than $550 million, according to a study by the Williams Institute of the University of California at Los Angeles School of Law. “The fighters that I served with in Baghdad cared whether or not you could get the job done, could you fire your M-4 or could you knock down the door,” said Representative Pat Murphy , a Pennsylvania Democrat who is pushing legislation to repeal the policy. “They could care less if you had a boyfriend or girlfriend back home.” Murphy, who in an interview described himself as a “straight, practicing Catholic,” served in Iraq with the U.S. Army’s 82nd Airborne Division before winning his House seat in 2006. Murphy said he expects Gates to curtail the ability of one soldier to accuse another of being gay. Morrell has said previously that the Pentagon was looking into how to handle cases in which someone “outs” a gay service member. Members Discharged The U.S. military discharged 428 members last year under the law, down from 619 the year before and the lowest level since the Pentagon started tracking the figures in 1997. The dismissals included 259 men and 169 women. The peak occurred in 2001, when 1,227 members were discharged, according to Defense Department figures. As many as 66,000 gay men and women may be serving in the U.S. military, about 2.2 percent of all personnel, including 13,000 on active duty, according to the Williams Institute study released last month. The study said that lifting restrictions may attract as many as 36,700 men and women to active-duty service and 12,000 more to the guard and reserve. The military spends about $22,000 to $43,000 to replace someone discharged under the policy, it said. To contact the reporters on this story: Peter S. Green in New York at psgreen@bloomberg.net ; Anthony Capaccio in Washington at acapaccio@bloomberg.net

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Terry Magee Joins KUITY Corp. Board of Advisors

February 2, 2010

Addition of Former Kitty Hawk Commander Highlights Analytics Company’s Intensified Focus on Defense Sector

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Texas Waterway Serving Four U.S. Refineries Is Closed Following Oil Spill

January 24, 2010

By Robert Tuttle and David Wethe Jan. 24 (Bloomberg) — The Sabine Neches Waterway, the Texas ship channel serving four refineries that process about 6.5 percent of total U.S. capacity, remained closed indefinitely after a collision between a tanker and vessel spilled about 11,000 barrels of oil, the U.S. Coast Guard said. Cleanup crews are working 24-hours daily, Coast Guard Petty Officer Richard Brahm said in a telephone interview from Port Arthur, Texas. The waterway may open to vessel traffic within five days, Dow Jones reported earlier, citing Capt. J.J. Plunkett of the Coast Guard. The Coast Guard expanded the safety zone around the spill from mile marker 278 to Mesquite Point, about 100 miles east of downtown Houston, after crews on the Coast Guard Cutter Manowar could smell sulfur, Brahm said. “Just to be safe, we went ahead and extended the safety zone,” he said. There are about 500 responders from nine agencies and a contract cleaning company working on the spill, Brahm said. Crews have placed around the spill more than 26,500 feet of so- called boom, which is the “ropish, plastic material that stops oil from flowing,” he said. There are 11 skimmers in the water picking up the oil. The tanker was bound for Exxon Mobil Corp. ’s Beaumont refinery when the collision happened yesterday at about 9:15 a.m. local time, Coast Guard Commander John Lovejoy said in a telephone interview. The tanker is known as the Eagle Otome and is owned by AET Tankers of Malaysia, the Coast Guard said. Coast Guard Estimate Crews were able to transfer 69,000 barrels of oil off the damaged 80,000-barrel tanker, leaving another 11,000 barrels unaccounted for, which is the spill estimate, Brahm said. The two vessels that collided separated over night. The gash on the Eagle Otome is at the water line, meaning some oil underneath the hole may not have spilled out, he said. “We’re hoping that’s also got oil in it,” Brahm said. “Now that they’ve separated, we’re going in and looking to see if there is anything.” The Associated Press reported earlier that oil was spread over a 2-mile stretch of the waterway. The reopening of the waterway depends on “all kinds of factors,” Brahm said. “Basically it comes down to when it’s cleaned up,” he said. “That’s all we know.” Four Refineries Exxon’s Beaumont plant is one of four refineries located near the waterway. The other three are operated by Royal Dutch Shell Plc’s Motiva Enterprises, Valero Energy Corp. and Total SA . The four plants have a combined processing capacity of 1.15 million barrels of oil a day. The waterway closure is not having any impact on production at Valero’s Port Arthur refinery “yet,” said Bill Day , a spokesman for the San Antonio-based company. The refinery’s capacity is about 325,000 barrels per day, he said. Verna Rutherford , a spokeswoman for Motiva, said in an e- mail that “it is customary for the Motiva Port Arthur refinery to be prepared for emergency situations around us with supplies and back-up plans in place.” Kathleen Jackson , a spokeswoman for Exxon’s Beaumont, Texas, plant, and Pat Avery , a spokeswoman for Total’s Port Arthur plant, did not immediately respond to messages seeking comment. To contact the reporters on this story: Robert Tuttle in Doha at rtuttle@bloomberg.net ; David Wethe in Houston at dwethe@bloomberg.net .

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Brite-Strike Tactical Illumination Announces the Appointment of Brigadier General Ronald J. Johnson, USMC (Ret.) to the Board of Directors

January 14, 2010

KINGSTON, MA–(Marketwire – January 14, 2010) – Brite-Strike® Tactical Illumination Products, Inc. ( PINKSHEETS : BSTK ) announced today that their Board of Directors has voted to appoint Brigadier General Ronald J. Johnson, USMC (Ret.) to the Board. Brigadier General Johnson retired from the USMC effective January 1, 2010. His recent posting was at the Pentagon HQMC, as Director of Operations in charge of overseeing day to day operations of the USMC. His previous posting was as Commander of the 24th MEU (Marine Expeditionary Unit) for four years leading the famed unit into Afghanistan and Iraq. The 24th MEU was also responsible for the evacuation of over 14,000 American citizens out of Beirut, Lebanon.

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Obamas Send Holiday Wishes to Troops at War, Ask Americans to Offer Thanks

December 25, 2009

By Roger Runningen Dec. 25 (Bloomberg) — President Barack Obama and First Lady Michelle Obama issued a joint “Merry Christmas” greeting yesterday and called upon Americans to remember U.S. soldiers and their families during the holiday season. “To all our soldiers, sailors, airmen, Marines and Coast Guardsmen — I have no greater honor than serving as your commander in chief,” Obama said in his weekly radio and Internet address, joined by his wife. “I’ve been humbled, profoundly, by patriots who have made the ultimate sacrifice for our freedom.” The first family arrived in Hawaii yesterday for a ten-day vacation. The Obamas are staying in a rented house on Oahu’s north shore, about 30 minutes from Honolulu. The president planned no public events during his stay. As part of his strategy to thwart a resurgence of the Taliban in Afghanistan, Obama has ordered 30,000 more troops to deploy there in the coming months. That will bring the total of U.S. troops in Afghanistan to about 100,000. The number of soldiers in Iraq has fallen to about 110,000 as of Dec. 21, said Major John Redfield, a Defense Department spokesman. The First Lady urged Americans to offer a helping hand to military families. “If you live near a military base, you can reach out through your workplaces, your schools, your churches,” she said. “There are so many ways to help — with child care, with errands, or by just bringing over a home-cooked meal.” Kids can make a greeting card for a soldier, adults can send a care package or a pre-paid phone card “that makes the tour a little easier,” the president said. “Every American can do something to support our troops, even if it’s as simple as just saying ‘thank you,’” Obama said. Republican Message In the Republican address, U.S. Representative Duncan Hunter of California joined the Obamas in offering a tribute to the U.S. armed forces. “Thoughts of home remind us of why we serve,” Hunter said. “Our hope is that as a result of this determination and sacrifice, we will never again see our cities and citizens under attack.” Hunter, 33, served in Iraq as a Marine and in 2008 was elected to succeed his father in a San Diego-area House district. On the domestic front, Hunter described a “difficult Christmas” because of an unemployment rate that stood at 10 percent in November. “After all the promises and all the spending we’ve seen out of Washington this year, out-of-work families are right to be asking, ‘Where are the jobs?’” Hunter said. He said the administration in the new year should avoid damaging the economy with “misguided efforts to create new laws that will cost even more jobs.” Such efforts include “the ‘cap and trade’ national energy tax” and “the government takeover of health care,” he said. To contact the reporter on this story: Roger Runningen in Washington at rrunningen@bloomberg.net

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Damien Hoffman: A More Honest Look at Time Person of the Year Ben Bernanke

December 18, 2009

In Time ‘s cute video “Why Time chose Ben Bernanke” we are told that Person of the Year is “not an award.” Rather, it’s the person who has “most influenced the news during the past year — for good or for ill.” Fair enough. 2009 was a year of financial crisis (again) and Bernanke’s position as Wizard of Oz necessarily means he most influenced the news. But beyond that single point, Time spills some serious ink and camera time negligently declaring Bernanke our financial lord and savior. On this note, Time is as embarrassingly wrong as the Nobel Prize Committee was when awarding the Commander-in-Chief of a warring nation the previously coveted Peace Prize. Time should do a survey and ask the ~17% under-employed how well Bernanke has done at his legally mandated job to pursue “maximum employment, stable prices, and moderate long-term interest rates.” They should then move to the second bullet point in the Federal Reserve’s mission statement and ask whether Bernanke properly supervised and regulated “banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers.” Since bank failures have broke into the triple digits and consumer credit got wildly out of control, I think we can pencil in another capital F. But I would reserve the title of “Worse than F” for Bernanke’s job “maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.” I must be a complete fool — or Jon Stewart has punk’d us — if Bernanke can be said to have done a great job while he denied the existence of a bubble in the housing market, stood idle as banks and mortgage brokers gave loans to people on false pretenses, ignored mortgage chop shops engineering global scams, and allowed the systemic risk of uncollateralized Credit Default Swaps. Once again, the mainstream media has brilliantly displayed why good independent journalists and blogs are gaining the attention-share of the world. As a courtesy to the overworked and underpaid research interns at Time who seemed to miss the obvious failures I noted above, here are a few samples of journalism with hard facts to prove Time ‘s article is total bollocks: The Confidence Game in Quotes — “[A]ll the relevant quotes over the past 2 years that demonstrate how profoundly Bernanke and Paulson have been misrepresenting (or simply misunderstanding) just how extensive the crisis we are in.” Seven Years at the Fed: Bernanke in his own words — “Some rather interesting quotes from our esteemed Fed Chief from the past few years regarding why the Fed’s approach to dealing with banks is the right one (back in 2006!), about when he’ll take away the ‘punchbowl’ (answered like a true politician), why the Fed is just as clueless about prices as you and me and in the same breath in the same clip about how the Fed’s gonna crack down on those evil subprime lenders (back in 2007), why financial supermarkets are great (also 2007), and finally how the Fed solved the inflation problem forever (back in 2003).” Bernanke Failed Miserably — “[H]e’s made such a pig’s breakfast of this whole situation.” For those who are a tad lazier, here is a nice Cliff’s Notes showing our allegedly prescient leader in his infinite forward-looking wisdom: In conjunction with Time ‘s “The Committee to Save the World” cover, Time has now started a trend which makes one wonder whether they have decided to compete with The Onion . Or, Time simply likes bestowing accolades onto medicine men who coincidentally proclaim themselves the cure for a disease they created.

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Obama Says He’s Humbled by Nobel Peace Prize, Understands the Cost of War

December 10, 2009

By Julianna Goldman Dec. 10 (Bloomberg) — President Barack Obama said he was humbled to be awarded the Nobel Peace Prize and used his acceptance speech to defend the concept of a “just war” that is necessary to further the cause of freedom and human rights. “Compared to some of the giants of history who have received this prize — Schweitzer and King; Marshall and Mandela — my accomplishments are slight,” he said during the Nobel ceremony in Oslo. “But perhaps the most profound issue surrounding my receipt of this prize is the fact that I am the commander-in-chief of a nation in the midst of two wars.” Obama said he has an “acute sense” of the price of military conflict at a time when he is deploying thousands of troops into battle. “Some will kill. Some will be killed,” he said. The Nobel ceremony in Oslo comes a little more than a week after the president announced deployment of 30,000 more U.S. troops to Afghanistan. He also is winding down the U.S. military commitment in Iraq even as terrorist violence continues. “I do not bring with me today a definitive solution to the problems of war,” Obama said. “We must begin by acknowledging the hard truth that we will not eradicate violent conflict in our lifetimes.” While expressing appreciation for the non-violent creed preached by Martin Luther King Jr . and Mahatma Gandhi, Obama said that as U.S. leader he can’t “be guided by their examples alone.” Necessary Force “I face the world as it is, and cannot stand idle in the face of threats to the American people,” Obama said. Negotiations didn’t stop Adolf Hitler and won’t stop al-Qaeda, he said. “To say that force is sometimes necessary is not a call to cynicism — it is a recognition of history; the imperfections of man and the limits of reason.” There are times and events where the use of military force is “not only necessary but morally justified,” he said. Among recent conflicts, Obama cited the military intervention in the Balkans, the first Gulf War to drive Iraqi armed forces under Saddam Hussein out of Kuwait and the U.S.-led overthrow of the Taliban in Afghanistan after the Sept. 11 attacks. He didn’t mention the 2003 invasion of Iraq to topple Hussein that was undertaken by his predecessor, former President George W. Bush . When war is waged, it must be done under universal standards of conduct, even when the enemy doesn’t follow the same code, Obama said. Standards for Conflict “I, like any head of state, reserve the right to act unilaterally if necessary to defend my nation,” he said. “Nevertheless, I am convinced that adhering to standards strengthens those who do, and isolates — and weakens — those who don’t.” Obama told his audience there are three ways to “build a just and lasting peace.” They include sanctions that “exact a real price;” the promotion of human rights; diplomacy and engagement; and economic security and opportunity. Security doesn’t exist, he said, “where human beings do not have access to enough food, or clean water, or the medicine they need to survive. “The absence of hope can rot a society from within.” Obama also said the world must come together to confront climate change. “There is little scientific dispute that if we do nothing, we will face more drought, famine and mass displacement that will fuel more conflict for decades,” Obama said. ‘Cooperative Climate’ While Obama is the third sitting U.S. president to win the prize, he’s the first to win it so early in his term. Former presidents Theodore Roosevelt won in 1906 and Woodrow Wilson won in 1919. Former President Jimmy Carter won in 2002 and former Vice President Al Gore received it in 2007, both after leaving office. Thorbjoern Jagland , chairman of the five-member Nobel committee , said the awarding of the Peace Prize this year “must be viewed in the light of the prevailing situation in the world, with great tension, numerous wars, unresolved conflicts and confrontations on many fronts.” Obama “has been trying to create a more cooperative climate which can help reverse the present trend,” Jagland said in the text of his remarks at the ceremony. “It is now, today, that we have the opportunity to support President Obama’s ideas. This year’s prize is indeed a call for action to all of us.” The president arrived in Oslo early today and went directly to the Nobel Institute where he signed a guest book in a room with walls covered with photographs of former laureates including slain civil rights leader Martin Luther King Jr . The president said he and first lady Michelle Obama were touched by the wall of pictures. “When Dr. King won his prize, it had a galvanizing effect around the world, but also lifted his stature in the United States in a way that allowed him to be more effective,” Obama said. To contact the reporter on this story: Julianna Goldman in Washington at jgoldman6@bloomberg.net .

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Arroyo Puts Philippine Province Under Martial Rule as Governor Is Arrested

December 5, 2009

By Francisco Alcuaz Jr. and Joel Guinto Dec. 5 (Bloomberg) — Philippine President Gloria Arroyo declared military rule in Maguindanao province, taking its governor and three relatives into custody for questioning almost two weeks after the clan was linked to the ambush of a rival’s supporters, killing 57. The takeover was announced by Executive Secretary Eduardo Ermita in a briefing in Manila today. Maguindanao Governor Andal Ampatuan Sr. and Muslim Mindanao regional Governor Zaldy Ampatuan are “under custody” after being “invited” for questioning, Philippine National Police Chief Jesus Verzosa told reporters. Two other relatives were arrested, Colonel Leo Ferrer, an Army commander in Maguindanao said in a phone interview. The regional governor is the son of the provincial governor, who heads the clan and has ruled Maguindanao since 2001, helping President Gloria Arroyo in the 2004 and 2007 elections. Another son, a Maguindanao town mayor, was arrested earlier and charged with 25 counts of murder, on testimony that he was present at and directed the killings. Military rule was required because of reports that supporters planned “hostile actions” in the event more family members were arrested, Verzosa said. “I favor the declaration, but only for a short period, until the Ampatuans have been disarmed,” Aquilino Pimentel , an opposition senator, said in a phone interview, adding three or four days may be sufficient. “The government has been slow to respond to the murders because “the whole clan has been a close ally of the president in the elections. Because of the public uproar over the killing, they were forced to take action.” President’s Duty “The president felt she simply had to do what is right in line with her solemn duty,” Press Secretary Cerge Remonde said in a mobile phone text message when asked how Arroyo authorized today’s actions, given her relationship with the family. Police this week recommended the Department of Justice file murder charges against 12 people, including the clan leader and five relatives. Justice Secretary Agnes Devanadera yesterday summoned all 12 for questioning. Governor Andal Ampatuan Sr., the clan leader, was taken from his home in Shariff Aguak, the provincial capital about 3 a.m., and is now in General Santos City, Colonel Ferrer said. Ferrer himself talked to Regional Governor Zaldy Ampatuan at 6 a.m. “over a cup of coffee.” He is now in Davao City. The two other relatives, including Maguindanao’s vice governor, were taken by the military, Ferrer said. None resisted, he said. Weapons Seized Muslim Mindanao Attorney-General Frances Cynthia Guiani- Sayadi couldn’t take a call because of high blood pressure, a person who answered her cell phone said. Today’s actions come after authorities seized weapons and ammunition in properties owned by Ampatuans, or nearby, over two days. At least one of the stockpiles was enough to arm 500 men, authorities said. They’ll investigate whether some of the arms were used in the killings and how some of them came to be in private stockpiles while having Department of National Defense markings. The Nov. 23 attack was the worst in the country’s history of political violence. About 100 armed men stopped a convoy of a political rival’s supporters on a highway, took them several hundred meters away and killed and buried them. Fifty-seven bodies were found. The dead included at least 30 journalists covering the convoy and 15 unrelated motorists, according to local media reports. United Nations The United Nations, which in 2007 linked the military to hundreds of political killings and said the government wasn’t doing enough to stop it, this week called on the government to prosecute the guilty and control political “manipulation” by clans. The National Union of Journalists of the Philippines this week started a nightly candlelit vigil for the reporters who were killed. An international day of protest is scheduled on Dec. 9, National Union Vice Chairman Jose Jaime Espina said yesterday. Parts of Maguindanao, controlled by the separatist Moro Islamic Liberation Front, aren’t subject to the declaration of martial law, Secretary Ermita said. The exemption is meant to ensure the MILF “doesn’t get involved,” Senator Pimentel said. The Ampatuans control Maguindanao, in part through militia groups authorized to help fight the MILF, the al Qaeda-linked Abu Sayyaf terrorist group, and units of the communist New People’s Army. The government said it has detained militia members while they’re under investigation for the killings, replaced and reassigned police and military officers and will swap the province’s entire police force with units from other provinces. It said it has increased troops in the province to 3,500, about 1,000 of whom are surrounding the capitol building and Ampatuan homes. To contact the reporters on this story: Francisco Alcuaz Jr . in Manila at falcuaz@bloomberg.net ; Joel Guinto at jguinto1@bloomberg.net

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Gilani Says Osama Bin Laden Escaped Pakistan, Disputes U.K. Terror Claims

December 3, 2009

By Thomas Penny and Brian Lysaght Dec. 3 (Bloomberg) — Pakistani Prime Minister Yusuf Raza Gilani disputed U.K. claims that three-quarters of terror plots against Britain start in his country and said he does not believe al-Qaeda leader Osama bin Laden is in Pakistan. Gilani was speaking in London after a meeting with Prime Minister Gordon Brown , who said on Nov. 29 that Pakistan should do more to “break” the al-Qaeda terrorist network. The Pakistani prime minister repeated his country’s call on the U.K. and U.S. to hand over any “credible or actionable” evidence they have about terrorists in Pakistan. “I don’t think that Osama Bin Laden is in Pakistan,” Gilani said at a news conference with Brown today. “Most of them are not in Pakistan, they might be in Afghanistan.” The comments indicate divisions between Britain and Pakistan about the conduct of the war on terrorism. Brown has been saying for a year that Pakistan was the source of the majority of terror plots in the U.K. and repeats the claim regularly as justification for the British involvement in the conflict over the border in Afghanistan. Thousands of Taliban and al-Qaeda fighters sought shelter in Pakistan’s tribal region after the U.S.-led invasion of Afghanistan in late 2001, and Pakistani forces have recently stepped up operations against them. Osama’s Escape There have been no confirmed sightings of Bin Laden since he escaped U.S.-led forces in the Tora Bora region of Afghanistan in December 2001. Gilani said he did not agree with Brown’s claim that three quarters of plots start in Pakistan. “I do not agree with this information because we are fighting this war on terrorism,” Gilani said. He said, “Uzbeks, Chechens, Arabs and Taliban from Afghanistan” had been fighting with al-Qaeda in Pakistan. Brown, who announced 50 million pounds ($83 million) in aid to Pakistan to assist with stabilization of the areas around the border with Afghanistan, praised the success of Pakistani operations in the Swat valley. He said Britain will continue to work together to combat the terrorist threat. “In this strategic dialogue between Pakistan and Britain we can all step up our efforts to fight this terrorist threat,” Brown said. “We’re seeing on both sides of the border the determination on the part of everyone concerned to take on terrorism on both sides of the border.” “That’s a welcome sign that all of us are working together for the common goal of dealing with terrorism,” Brown said. Gilani said the Pakistani government is seeking “more clarity” on the measures President Barack Obama set out earlier this week to guide the U.S. war effort in Afghanistan. American Visitor U.S. Army General Stanley McChrystal , the commander in Afghanistan, will be visiting Pakistan to discuss greater military co-operation with the U.S. He urged increased emphasis on political and humanitarian solutions in Afghanistan to win “hearts and minds.” “I don’t think military action is the solution to problems so we must have an exit policy,” Gilani said, citing the Pakistani experience in tribal areas. “Military action is only 10 percent; 90 percent is that you have to complement it with political decisions, with economics, with social and cultural input in those areas.” To contact the reporter on this story: Thomas Penny in London tpenny@bloomberg.net

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Dubai Surrenders Autonomy as Crisis Bolsters Oil-Rich Emirate of Abu Dhabi

November 24, 2009

By Henry Meyer and Zainab Fattah Nov. 24 (Bloomberg) — Until last month, a billboard at one of Dubai’s busiest roundabouts featured one photo, of Dubai ruler Sheikh Mohammed Bin Rashid Al Maktoum . The new billboard says “Long live our Emirates union” and also shows United Arab Emirates President Sheikh Khalifa Bin Zayed Al Nahyan . Dubai’s financial woes have tamed the once-independent emirate and forced it closer to Abu Dhabi, which holds 90 percent of the U.A.E.’s oil. Sheikh Mohammed last week demoted three business aides and fired one. All had been pivotal in the debt-fueled expansion of past years, requiring Dubai’s rescue with a $10-billion loan from the U.A.E. central bank. The global financial crisis that swept into Dubai last year not only put an end to a construction boom that saddled it with $80 billion of debt. It may also mark a turning point in the U.A.E.’s history toward a stronger central state, which investors say will make Dubai a more attractive destination by bolstering its creditworthiness. “Abu Dhabi is pumping 2.5 million barrels a day of oil, of course you want it and Dubai to be working together,” said Emad Mostaque , a London-based Middle East equity-fund manager for Pictet Asset Management Ltd., which oversees more than $100 billion globally. “They don’t need to compete against each other,” he said in a phone interview. Mostaque said he is positive on Arabtec Holding PJSC , Drake & Scull International PJSC and Depa Ltd. , all Dubai-based construction companies expanding into Abu Dhabi. Central Bank Sheikh Mohammed in February turned to Abu Dhabi, holder of the world’s sixth-largest crude reserves, for a $10 billion bailout. The central bank, which has its headquarters in the country’s capital of Abu Dhabi, bought the entire bond issue. Dubai is seeking an extra injection of $10 billion by the end of the year, Sheikh Ahmed bin Saeed Al-Maktoum, chairman of the emirate’s Supreme Fiscal Committee, said Nov. 16. The bond would get “majority government” participation, Mohammed Ali Alabbar , chairman of Emaar Properties PJSC and a member of the Dubai Executive Council, said Oct. 9. The renewed financial lifeline comes as Dubai and its state-owned companies have to repay $15.8 billion of bonds and loans maturing this year, $9.2 billion in 2010, $19.8 billion in 2011 and $17.3 billion the following year, according to a Deutsche Bank AG report in August. Islamic Bonds The sheikhdom raised $1.93 billion last month from the biggest sale of Islamic bonds in the Gulf Arab region this year. It was made possible by investors’ confidence that Abu Dhabi stands behind Dubai, said Tristan Cooper , a Dubai-based Middle East sovereign analyst at Moody’s Investors Service. “Assumed backing from Abu Dhabi and closer ties between the emirates bolsters investor confidence generally in Dubai and helps to attract foreign investment,” Cooper said by e-mail. Dubai’s $80 billion debts are equivalent to 100 percent of the city-state’s 2008 gross domestic product and nine times its 2008 revenue, according to Moody’s. The cost of protecting Dubai bonds from default traded at 313 basis points yesterday from a peak of 977 in February, five- year credit-default swap prices show. The contracts get cheaper as perceptions of credit quality improve. Since the start of the year, when Sheikh Mohammed launched a new Web site dedicated to his activities as prime minister of the U.A.E., he has been seen increasingly in public in that role. A front-page story on the Dubai-based Gulf News on Nov. 8 showed the Dubai ruler touring a new desert resort in Abu Dhabi’s Western Region with Sheikh Khalifa, who in addition to being president also leads Abu Dhabi. Separate Army The air show in Dubai this year was inaugurated by the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the U.A.E. Armed Forces Sheikh Mohammed Bin Zayed Al Nahyan, brother of the president, alongside Sheikh Mohammed. Dubai split from Abu Dhabi in 1833. It kept its independence thanks to the U.K., which pursued a policy of divide-and-rule in the Gulf emirates, according to the 2008 book “Dubai: The Vulnerability of Success,” by historian Christopher Davidson . Though Dubai grudgingly integrated with Abu Dhabi in 1971 in a federation of seven emirates , it maintained a separate army until 1996, the book said. Sheikh Mohammed, 60, who became ruler of Dubai in 2006, accelerated his brother’s policy of diversifying the economy from dwindling oil supplies by transforming Dubai into a tourism and finance hub. Tower and Islands The emirate is building the world’s tallest tower and largest man-made islands in the shape of palm trees. This year it had to shelve plans to construct a new waterfront development the size of Hong Kong Island and “Dubailand,” a leisure park that would have been three times the size of Manhattan. Home prices are down more than 50 percent from their peak in the third quarter of 2008, Deutsche Bank AG said on Nov. 5. Prices may drop as much as 30 percent more, UBS AG said Nov. 18. “The whole strategy of diversification was a consequence of oil running out and wanting to keep their independence,” said Eckart Woertz , an economist at the Gulf Research Center in Dubai. “Now this diversification model is in dire straits and Abu Dhabi is the one that can help Dubai out.” Dubai oil production began in the 1960s, reached a peak of about 350,000 barrels a day in the late 1980s and has now declined to about 80,000 barrels a day, said Dalton Garis , a professor at the Petroleum Institute, Abu Dhabi. The U.A.E. government says Dubai oil reserves will run out within 20 years. ‘Shut Up’ On Nov. 9, Sheikh Mohammed said people who speculated about relations between Dubai and Abu Dhabi should “shut up,” at an investors’ conference in Dubai organized by Bank of America Merrill Lynch. The ruling lines of both emirates are “the same family, not only that but the same tribe, the Bani Yas tribe,” he said. They “ruled many many tribes in the Arabian Peninsula for hundreds and hundreds of years.” Eleven days later, the sheikh removed the governor of the Dubai International Financial Centre, Omar Bin Sulaiman, who had led efforts to transform Dubai into a Middle East finance hub. This came 24 hours after he dropped Mohammad al-Gergawi , Sultan Ahmed Bin Sulayem and Alabbar from the board of the Investment Corporation of Dubai, the emirate’s main holding company. The centralization of the U.A.E. “could be the price Dubai has to pay for the Abu Dhabi bailout,” said Woertz. “This might cause some bruised egos here and there.” To contact the reporters on this story: Henry Meyer in Dubai at hmeyer4@bloomberg.net ; Zainab Fattah in Dubai at zfattah@bloomberg.net

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Obama’s Job Approval Rating Is Below 50% for First Time in Quinnipiac Poll

November 18, 2009

By Nicholas Johnston Nov. 18 (Bloomberg) — President Barack Obama’s approval rating has fallen below 50 percent for the first time in polling by Quinnipiac University as U.S. voter discontent grows over the war in Afghanistan. Obama’s job approval rating fell to 48 percent in the Nov. 9-16 survey of registered voters nationwide by the Hamden, Connecticut-based university, with 42 percent polled saying they disapproved of the job he is doing. “In politics, symbols matter, and this is not a good symbol for the White House,” Peter Brown , assistant director of the Quinnipiac University Polling Institute, said in a statement. Obama’s approval rating was 59 percent in a Quinnipiac survey conducted Feb. 25 to March 2. The percentage of people who approve of Obama’s handling of the economy fell to 43 percent, down from 47 percent in an October Quinnipiac poll. The percentage who say they disapprove of the way Obama is handling the war in Afghanistan rose to 49 percent in the latest survey, up from 42 percent last month. Thirty-eight percent approved of his handling of the war, compared with 40 percent last month. The November survey of 2,518 registered voters also found that the percentage of those saying that fighting the war in Afghanistan was the right thing to do has fallen below 50 percent, to 48 percent. That is down from 52 percent in October. “Overall, the new numbers on Afghanistan show an almost across-the-board erosion of support for the war,” Brown said. Obama is weighing a request by his commander in Afghanistan, General Stanley McChrystal , to increase the U.S. force of 68,000 by as many as 40,000 personnel next year. A plurality of voters surveyed, 47 percent, backed sending more troops to Afghanistan, compared with 42 percent who opposed the plan. The survey has a margin of sampling error of plus or minus 2 percentage points. To contact the reporter on this story: Nicholas Johnston in Washington at njohnston3@bloomberg.net

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Obama Says He Is `Very Close’ to Afghan Decision, Urges Public Patience

November 18, 2009

By Edwin Chen and Julianna Goldman Nov. 18 (Bloomberg) — President Barack Obama said he is “very close” to deciding on a new course for the war in Afghanistan that will set clear benchmarks for the Afghan government and a strategy to end U.S. involvement there. “The American people will have a lot of clarity about what we’re doing, how we’re going to succeed, how much this thing is going to cost, you know, what kind of burden does this place on our young men and women in uniform and, most importantly, what’s the end-game on this thing,” Obama said in an interview with CNN taped before he left Beijing for Seoul, the final stop of his eight-city trip to Asia. He also sat for interviews with CBS, ABC, NBC and Fox News. The war is in its eighth year, and Obama said failing to come up with an exit strategy for the U.S. “could end up leading to a multiyear occupation.” Americans are losing patience, with 52 percent saying in the most recent Washington Post-ABC News poll that the conflict hasn’t been worth the cost. Forty-eight percent of the public disapproves of Obama’s handling of the war and 45 percent approve, according to the survey taken Nov. 12-15. Still, 55 percent expressed confidence he will deliver a workable strategy. Obama said he will announce a decision “in the next several weeks,” according to a transcript provided by the network. He is weighing a request by his commander in Afghanistan, General Stanley McChrystal , to increase the U.S. force of 68,000 by as many as 40,000 personnel next year. View of Karzai The decision has been complicated by allegations of corruption in Afghan President Hamid Karzai’s government and concerns the country’s leadership may not be able to extend its authority nationwide. In the CNN interview, broadcast this morning in the U.S., Obama gave a mild endorsement of Karzai. “I think that President Karzai has served his country in important ways,” Obama said. “He has some strengths, but he’s got some weaknesses.” Obama said he was less concerned about any individual leader of Afghanistan than he about the government there being able to provide “basic services to its people in a way that confers legitimacy.” In the NBC interview, Obama said the U.S. can’t allow Afghanistan to fall apart because that risks destabilizing Pakistan, a nation with nuclear weapons. “We’ve got some significant interests in the region,” Obama said. Still, he added, the U.S. must focus its efforts “so that we don’t start getting over-extended.” On a range of domestic and foreign priorities, Obama said the U.S. public will have to be patient. “A lot of our initiatives have not yet borne fruit, but we knew that something like Iran’s nuclear program wasn’t going to be solved in a year,” the president said on CNN. ‘Right Direction’ “The question is, are we moving in the right direction?” he said. “And I think there’s no doubt that we are.” Obama also defended his administration’s decision to try in a federal court in Manhattan five alleged Sept. 11 terrorists, including Khalid Sheikh Mohammed , the self-proclaimed mastermind of the 2001 attacks. “I have complete confidence in the American people and our legal traditions and the prosecutors,” he told NBC. “We’ve done this before.” On health-care legislation slowly moving through Congress, the president said on CNN he remained “absolutely confident” that “we are going to get this done.” He sidestepped a question about whether he could envision circumstances in which he doesn’t seek re-election in 2012. “I don’t want to be making decisions based on getting re- elected,” he told the cable network. “There are a whole series of choices that I’m making that I know are going to create some political turbulence.” Obama said he wasn’t likely to read the book, “Going Rogue,” by former Alaska Governor Sarah Palin , the Republican vice presidential candidate in 2008 and wasn’t thinking about whether she may be a presidential candidate in 2012. “She obviously has a big constituency in the Republican Party,” Obama said. While in Beijing, Obama said he met privately for about five minutes with a half-brother, Mark Obama Ndesandjo , 43, a businessman and musician who has lived in China for about seven years. To contact the reporters on this story: Julianna Goldman in Beijing at jgoldman6@bloomberg.net ; Edwin Chen in Beijing at echen32@bloomberg.net

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Obama Seeks Afghan War Exit Strategy Before Deciding on Troops, Gibbs Says

November 12, 2009

By Edwin Chen Nov. 12 (Bloomberg) — President Barack Obama wants to ensure the U.S. has an “exit strategy” from Afghanistan and a strong Afghan government before making final decisions on strategy, press secretary Robert Gibbs said. “An exit strategy is as important as ramping up troops,” Gibbs told reporters on Air Force One as the president headed for a trip through Asia. “Our success in Afghanistan is most dependent on the Afghan government being a true partner,” Gibbs said. “It’s time to start a new chapter in Afghanistan when it comes to governance and that’s obviously going to play a big part in the decision he makes.” The president has been meeting for weeks with military and foreign-policy advisers to discuss options for Afghanistan and a set of recommendations made by General Stanley McChrystal , the commander of U.S. and NATO forces there. Obama’s decision has been complicated by allegations of corruption in the government of President Hamid Karzai and evidence of fraud in his August re-election. Karzai was declared the winner when the Afghan election commission canceled a Nov. 7 runoff after the other candidate, former Foreign Minister Abdullah Abdullah , dropped out. Ambassador’s Recommendation Karl Eikenberry , the U.S. ambassador to Afghanistan and a former top military commander there, has recommended that Obama not send more troops to the country for the time being, a U.S. official said today. The president wants the U.S. to make clear to the Afghan government that its commitment to the country isn’t open-ended, the official said in a statement, issued on the condition of anonymity. The official also said governance in Afghanistan must improve within a reasonable period of time. Obama met for more than two hours yesterday with advisers including Defense Secretary Robert Gates , Joint Chiefs Chairman Admiral Mike Mullen , General David Petraeus , who commands U.S. forces in the Middle East and Asia, and Richard Holbrooke , special envoy to Afghanistan and Pakistan. The U.S. has committed 68,000 troops to the Afghanistan conflict and Obama is weighing whether to send as many as 40,000 more. The administration also is pressing other members of the North Atlantic Treaty Organization to put more resources into the fight. To contact the reporter on this story: Edwin Chen in Washington at Echen32@bloomberg.net .

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Saudi Warplanes Rocket Yemeni Shia Militants; Three Saudi Soldiers Killed

November 8, 2009

By Henry Meyer and Khaled Abdullah Nov. 8 (Bloomberg) — Saudi warplanes bombed Yemeni rebels, as a five-day offensive by the oil-rich kingdom on its border with Yemen left three soldiers dead and another four missing. Saudi Arabia’s air force fired missiles “intensively” at Yemeni border villages today, the Shiite Muslim Houthi rebels said in an e-mailed statement. Saudi officials say they are ejecting the rebels from their country’s mountainous borders with Yemen and have not entered Yemeni territory. “We have been clearing the slopes of the mountains within the borders of the kingdom,” Deputy Minister of Defense Prince Khalid bin Sultan bin Abdul Aziz said in comments cited by the state-owned Saudi Press Agency late yesterday. Three soldiers have died so far in the offensive, with 15 wounded and four missing, he said. Saudi Arabia began its military campaign in the border region in the southern Jazan province on Nov. 4, a day after the Yemeni insurgents seized territory and killed a Saudi border guard. The fighting risks dragging the world’s largest oil exporter into a prolonged conflict, according to Eurasia Group , a New York-based political risk consulting firm. “Saudi Arabia has been covertly aiding Sana’a in its fight against the Houthis for much of the year, but now that Saudi Arabia is escalating the fighting, the danger of greater instability in Yemen is rising,” Eurasia Group said in e-mailed commentary. “Riyadh will find that it cannot easily withdraw from Yemen once it becomes too deeply involved.” ‘To The End’ Yemeni President Ali Abdullah Saleh vowed yesterday there will be no dialogue with rebels and fighting will be pursued “to the end,” the official Saba news agency reported from Sana’a, the capital. The rebels said they downed a fighter plane today in Yemen’s Sadaa border district, according to a later e-mailed statement. Yemeni army commander Askar Zuail said by phone from Sadaa that a Yemeni Sukhoi jet crashed because of a technical malfunction, and that the pilot is safe and sound after he ejected and landed by parachute. It’s the third fighter jet that the Houthis claim to have shot down since last month. Saudi Arabia has a 1,500-kilometer (930-mile) border with Yemen, the poorest Arab nation, where al-Qaeda has established bases that it has used as a launch-pad for cross-border attacks on Saudi targets. Yemen accuses Shiite-led Iran, the main regional rival to Sunni-ruled Saudi Arabia, of arming the insurgents. The Houthis claim discrimination by the majority Sunnis in Yemen and want to restore a Shiite imamate overthrown in 1962. Saudi forces have been targeting rebels in Jabal al-Dokhan, a mountain on the border, and the area is now “completely under control although there is some infiltration in some locations,” the deputy defense minister said after touring the zone yesterday. The Saudi military killed 50 rebels and captured 40 since starting the military operation, Arab News reported yesterday, citing an unidentified government official. To contact the reporters on this story: Henry Meyer in Dubai at hmeyer4@bloomberg.net ; Khaled Abdullah in Sana’a via the Dubai newsroom at mideastnews@bloomberg.net .

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U.S. Army Psychiatrist in Custody After 13 Killed, 30 Hurt on Texas Base

November 6, 2009

By Viola Gienger and Anthony Capaccio Nov. 6 (Bloomberg) — An Army psychiatrist is under guard in a Texas hospital after being accused of killing 13 people and wounding 30 others in one of the worst mass shootings at a U.S. military base. Major Nidal Malik Hasan opened fire on fellow soldiers with two handguns at the Fort Hood Army Base yesterday afternoon before he was shot several times, Lieutenant General Robert Cone, the commander of III Corps at the base, told reporters. “He is currently in custody and in a stable condition,” said Cone, adding authorities initially believed the assailant had been killed. “As horrible as this was, I think it could have been much worse.” Military officials and the Federal Bureau of Investigation are probing what triggered the attack by the licensed physician at a crowded medical processing center on the base. Senator Kay Bailey Hutchison , a Texas Republican, said she was told by Fort Hood authorities the suspect was about to be deployed to Iraq or Afghanistan and had been “very upset and angry” in the past few days. President Barack Obama called it a “horrific outburst of violence” directed at soldiers who have dedicated their lives to protecting the nation. While the deaths of soldiers in battles overseas is tragic, “it is horrifying that they should come under fire at an Army base on American soil,” Obama said in Washington. Injured Woman Dies The death toll rose to 13 from 12 early today when a woman who was shot died of her injuries, a base spokeswoman said by telephone. The shootings began at about 1:30 p.m. local time as soldiers were awaiting dental and medical treatment at the processing center, said Cone. At an auditorium about 50 meters (164 feet) away, 138 soldiers were graduating from college extension courses and officials were able to close the doors to protect participants, he said. Military police locked down the base after the shooting, lifting the restrictions hours later after determining there was no likelihood of a further threat. The Virginia Board of Medicine lists Hasan as a licensed physician who has a primary practice at the Darnall Army Medical Center at Fort Hood. It says he received his medical degree from the Uniformed Services University of the Health Sciences in Bethesda, Maryland, in 2003 and completed a residency in psychiatry at the Walter Reed Army Medical Center in Washington in 2007 and a fellowship in disaster and preventive psychiatry in 2009. Hasan, 39, transferred to Fort Hood in July, the Associated Press reported, citing unidentified military officials. Devout Muslim He was a devout Muslim and had sought for several years to be discharged from the military, the Washington Post reported, citing his aunt. Noel Hasan told the newspaper her nephew had endured name-calling and harassment about his faith for years after the Sept. 11, 2001, attacks on New York and the Pentagon. The Council on American-Islamic Relations condemned the shootings and urged calm as investigators piece together what happened. “No political or religious ideology could ever justify or excuse such wanton and indiscriminate violence,” Nihad Awad , the group’s executive director, said in a statement. Admiral Michael Mullen , chairman of the Joint Chiefs of Staff, said in a statement the Army should be allowed to complete its investigation before “we speculate about the circumstances leading to this senseless violence.” The suspect came to the attention of authorities six months ago because of Internet postings discussing suicide bombings and other threats, AP reported, citing unidentified law enforcement officials. Suicide Bombers One of the Web postings equated suicide bombers with a soldier throwing himself on a grenade to save the lives of his comrades, according to the report. Officials are trying to confirm whether Hasan was the author of the postings, the news service said. FBI agents and police raided Hasan’s apartment early today and were searching for evidence, CNN reported. Fort Hood, about 60 miles (97 kilometers) north of Austin, the Texas capital, houses about 45,000 U.S. troops and is home to the Army’s 1st Calvary and 4th Infantry divisions. It is one of the three largest Army bases in the U.S. by population and acreage. Base Suicides The base has felt the strain of multiple combat deployments, with 10 suicides reported there this year and more than 75 since the U.S.-led invasion of Iraq in 2003, the Washington Post reported. Hasan’s apartment is in the nearby town of Killeen, the site of one of the worst mass killings in U.S. history. A gunman drove his pickup truck through a cafeteria window in 1991 and shot 22 people dead with a handgun before killing himself, AP said. No other shooting at a military base in the U.S. has been anywhere near as deadly as yesterday’s attack, the news service reported. In 1993, a gunman at Fort Knox shot five civilian co- workers, killing three, and then fatally shot himself, AP said. To contact the reporters on this story: Viola Gienger in Washington at vgienger@bloomberg.net ; Anthony Capaccio in Washington at acapaccio@bloomberg.net .

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Afghan Taliban Kill Six United Nations Staff in Raid on Kabul Guesthouse

October 28, 2009

By Ed Johnson and James Rupert Oct. 28 (Bloomberg) — Six United Nations international workers were killed and nine wounded when insurgents attacked a guesthouse today in the Afghan capital, Kabul, where officials are preparing for next month’s presidential runoff election. Gunmen opened fire outside the main gate to the Bakhtar Guesthouse at about 6:30 a.m. local time and forced their way inside, killing UN workers as they “were running to escape,” UN spokesman Aleem Siddique said by telephone from Kabul. The Taliban claimed responsibility for the attack that left 10 people dead, saying it was intended to disrupt preparations for the vote, the Associated Press reported. Militants also fired a rocket, which failed to explode, into the grounds of the luxury Serena Hotel, forcing guests and employees to flee to the basement, the news agency said. Kabul has been on alert for a militant assault as Afghans prepare to vote on Nov. 7 to choose between incumbent President Hamid Karzai and former Foreign Minister Abdullah Abdullah . The capital has been hit several times in recent weeks, including a suicide bombing outside the Indian Embassy earlier this month that killed 17 people. The guesthouse is on a tree-lined street in Shahr-i-Nau, a central Kabul neighborhood where many government and international organizations have offices and residences. UN workers were injured, many with cuts and bruises suffered as they fled, Siddique said. “We’re trying to assure the safety of our staff, and we don’t know yet the identities of everyone who was killed,” he added. Machine Guns Taliban spokesman Zabiullah Mujahid said in a telephone call that three militants with suicide vests, grenades and machine guns carried out the assault, AP reported. Three militants wearing explosive-packed vests were killed, Agence France-Presse reported, citing the Interior Ministry. Kabul is under a “very significant threat” from the Taliban, who are escalating attacks against the capital, said Rohan Gunaratna , head of the Singapore-based International Centre for Political Violence and Terrorism Research. “One successful attack like this in Kabul sends a powerful message to the Afghan people and the international community that the Taliban will continue to fight and will not give up,” Gunaratna said by telephone. The assault came a day after eight U.S. soldiers were killed by roadside bombs in southern Afghanistan, making October the deadliest month for American forces in the eight-year conflict. President Barack Obama is reviewing his war strategy for Afghanistan and accusations of electoral fraud have complicated his decision on whether to grant the request of General Stanley McChrystal , the commander of U.S. and NATO-led forces in Afghanistan, to increase U.S. troop levels in the country. The runoff was triggered by a partial recount of the Aug. 20 vote that found more than 1 million ballots, most of them for Karzai, were suspect, putting his tally below the more than 50 percent needed to win in the first round. To contact the reporters on this story: Ed Johnson in Sydney at ejohnson28@bloomberg.net ; James Rupert in New Delhi at jrupert3@bloomberg.net .

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Iranian Revolutionary Guard Commanders Among 29 Killed in Suicide Bombing

October 18, 2009

By Ladane Nasseri Oct. 18 (Bloomberg) — Several senior officers in Iran’s elite Revolutionary Guards Corps died in a suicide bombing that killed at least 29 people in Sistan-Baluchistan, the latest deadly attack in the troubled southeastern province “The martyrs of this terrorist attack were a group of innocent Sunni and Shiite people from the area, several Baluchi tribal heads and Guards officers,” the Interior Ministry said in a statement on its Web site. In addition to the dead, the 8 a.m. local time blast wounded 28 others, the ministry said. A local official put the death toll at up to 35. Sistan-Baluchistan, which borders on Pakistan and Afghanistan to its east, is an entry point for opium and heroin coming from Afghanistan and has experienced political unrest and several attacks on military officials in recent years. The Guards blamed the bombing on agents of the U.S. A Sunni-Muslim rebel leader accepted responsibility for the blast, the state- run Iranian Students News Agency reported. The attack’s victims included General Nur-Ali Shushtari, deputy commander of the Revolutionary Guards ground forces, General Mohammad-Zadeh, the Guards commander in Sistan- Baluchistan, the commander in the town of Iranshahr and the head of the Amir al-Momenin unit, the state-run Fars News agency said. A suicide bomber carried out the attack, Fars said. ‘Political Dimension’ The province’s instability stems from conflicts between rival political movements and the influence of organized crime, said Mustafa Alani , director of the security and terrorism program at the Dubai-based Gulf Research Center . Today’s attack is “a major security breach” and has a “definite political dimension,” Alani said in a telephone interview. The aim is to “put pressure on the government for better treatment of Iran’s Sunni minority in terms of religious and national rights,” he said. Sunni Muslim-dominated Sistan-Baluchistan is headed by a Shiite-led provincial government. Iran’s population is 89 percent Shiite Muslim. Abdolmalek Rigi, the head of the Jundallah armed Sunni Muslim group, claimed responsibility for the attack, ISNA reported, citing Mohammad Marziah, the prosecutor in the provincial capital, Zahedan. The prosecutor put the death toll at up to 35. Mosque Bombing In May, at least 21 people were killed and almost 200 were injured when militants bombed a mosque in Zahedan. Jundallah, based across the border in Pakistan, said it carried out that attack. The group, “the Army of God,” also took responsibility for the February 2007 bombing of a bus in Zahedan that killed 11 civilian employees of the Revolutionary Guards. “The goal of the terrorists is to disturb the security of the Sistan-Baluchistan province,” Parliamentary Speaker Ali Larijani told lawmakers, according to the Islamic Republic News Agency. “They do not want to have economic progress in this region. But certainly the Guards will react with additional forces to establish security.” The Guards have a chain of command separate from the country’s regular armed forces and responsibilities that include safeguarding the ideals of the 1979 revolution. The Guards are in charge of security in Sistan-Baluchistan, Alani said. ‘Take Advantage’ The government of President Mahmoud Ahmadinejad will “take advantage of the incident, saying that threats are coming from different sources and unity is important,” Alani said. Iranian authorities will “inject more security forces” to keep Arab, Kurds and Baluchi minorities in border areas under control and “will further crack down on the opposition,” Alani said. The Iranian government has repeatedly alleged the U.S. and the U.K. are promoting an insurgency by Iran’s ethnic minorities, including Sunni Baluchis in Sistan-Baluchistan. “The world arrogance, by provoking its agents in the region, carried out a terrorist attack on a popular meeting between the Guards and the heads of tribes,” the Guards said in a statement, state television reported. Iranian authorities routinely refer to the U.S. as the global or world “arrogance.” Ahmadinejad was sworn in for a second term in Aug. 5 after a disputed June 12 election, the results of which opposition leaders Mir Hossein Mousavi and Mehdi Karrubi say were rigged. His victory, backed by Supreme Leader Ayatollah Ali Khamanei, led to weeks of mass protests and an ensuing crackdown by the authorities, during which some 4,000 people were arrested. Iranian officials said 36 people were killed in the violence, while the opposition put the toll at 72. Ahmadinejad rejects the allegation that the outcome was rigged and has accused opposition leaders of playing into the hands of foreign powers to destabilize the Islamic regime. To contact the reporter on this story: Ladane Nasseri in Beirut at lnasseri@bloomberg.net .

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Obama Becoming Target on Afghan Troop Review as Pressure, Criticism Mount

October 15, 2009

By Viola Gienger and Edwin Chen Oct. 15 (Bloomberg) — President Barack Obama’s methodical review of Afghanistan war strategy has made him the target of criticism from Republicans and intensified lobbying from advocates and opponents of more U.S. troops. Obama held the fifth in a series of White House Situation Room meetings with advisers on Afghanistan yesterday, and plans another next week. The president, a former law instructor, poses rigorous questions and encourages robust arguments at the sessions, senior adviser David Axelrod said. “This is a ferociously difficult issue, and it bears a lot of thought and reflection and review,” Axelrod said in an interview. “Every assumption needs to be tested.” The measured approach holds advantages and risks. Obama’s advisers say it will help convince a war-weary public to support his ultimate decision. At the same time, it has subjected him to mounting pressure from different sides of the debate over force levels — and complaints from Republicans who had supported Obama when he added troops in March. “It is unfair to our forces in theater to fight a war while the strategy remains in limbo,” Representative Howard “Buck” McKeon of California, the House Armed Services Committee’s top Republican, said at a hearing yesterday. “I’m concerned about the continued drift of our Afghanistan strategy.” McCain’s Push Republicans, such as Arizona Senator John McCain , are pushing for a decision to send the troops that General Stanley McChrystal , the commander of U.S. and NATO-led forces in Afghanistan, has said he needs. McCain has been joined by Democrats such as Senator Dianne Feinstein of California, who heads the Select Committee on Intelligence , and House Armed Services Committee Chairman Ike Skelton of Missouri. Other Democrats, including Senate Armed Services Committee Chairman Carl Levin of Michigan, say sending more U.S. combat troops would be a mistake. They favor building up Afghan security forces as an alternative. Anita Dunn , the White House communications director, said an American public that has grown “exhausted from this war” will appreciate Obama’s approach to the “significant decisions that need to be made.” “They will have a high degree of confidence that the process that led to those decisions was one that was deliberative, that wasn’t in response to any political pressure, but was made on the merits,” Dunn said in an interview. Delay ‘Harmful’ Frederick Kagan , a military historian at the American Enterprise Institute in Washington, disputed that view. He said uncertainty about U.S. policy may undermine backing for Obama’s ultimate decision. “From the standpoint of rallying public support, the delay in making a decision has been harmful,” said Kagan, who helped McChrystal prepare his Aug. 30 assessment of the Afghan security situation. Obama met for three hours yesterday with advisers who included Vice President Joe Biden , Defense Secretary Robert Gates and, by remote link, McChrystal and Secretary of State Hillary Clinton , who was flying back from a trip to Russia. The “comprehensive meeting” included discussions about U.S. civilian cooperation with the Afghan government and training of Afghan security forces, White House press secretary Robert Gibbs said. The spokesman dismissed as “not true” a British Broadcasting Corp. report that the U.S. plans to announce the addition of as many as 45,000 troops. Alternative Strategies Obama is weighing several options. One is to keep pursuing the approach he adopted in March, which is focused on combating the Taliban and al-Qaeda in Afghanistan through a troop- intensive strategy of protecting the population from insurgent attacks. McChrystal says that would require about 40,000 more troops. An alternative would be to narrow the U.S. military involvement by focusing on attacking al-Qaeda fighters in the region along the Afghan-Pakistani border, while building up Afghan soldiers and police and relying on them to contain the Taliban. A middle course is a third possibility; a pullout isn’t under consideration, according to Axelrod. “Nobody’s advocating that,” he said. Fundamental Issues The review is evaluating fundamental issues: whether President Hamid Karzai , who may prevail in an election recount, can deliver popular support after voting-fraud allegations; whether the Taliban would still shelter al-Qaeda in the future; whether the U.S. presence would help or harm neighboring Pakistan, which has its own security problems from Islamist radicals. Obama told reporters this week that he’s leading a “deliberate process,” assessing civilian, agricultural and educational issues in addition to military needs. He said decisions may be weeks away. McChrystal commands 103,000 troops from the 28 North Atlantic Treaty Organization members and 14 other allies. The U.S. is by far the biggest contributor, with a contingent that will reach 68,000 by the end of this year. That includes the increase of 21,000 that Obama authorized earlier this year. U.S. public opinion is divided, with 50 percent of respondents opposed to sending more troops and 46 percent in favor, according to an Associated Press-GfK Roper poll of 1,003 adults conducted Oct. 1-5. The survey has an error margin of plus-or-minus 3.1 percentage points. If Obama decides additional troops are needed, now may be the only opportunity to win the necessary backing, with the U.S. approaching mid-term elections for Congress next year, former Defense Secretary William Cohen said. “If the president is going to increase the numbers, then he probably won’t be able to do it incrementally,” Cohen said. “Whatever decision they make, they sort of get one shot at it.” To contact the reporters on this story: Viola Gienger in Washington at vgienger@bloomberg.net ; Edwin Chen in Washington at echen32@bloomberg.net .

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Obama Gains Support From Lawmakers for Afghanistan Strategy Deliberations

October 6, 2009

By Nicholas Johnston and Roger Runningen Oct. 7 (Bloomberg) — President Barack Obama won backing for his deliberative approach to a new strategy in Afghanistan from congressional leaders yesterday, even as lawmakers indicated little change in their own views on the war. Leaders of the House and Senate from both parties emerged from the 90-minute White House meeting saying they are willing to give the president a bit more time. Obama is deciding whether to send more troops to the country to fight the Taliban or pursue a more limited strategy focused at rooting out al-Qaeda. “It’s very clear that the president’s headed in the right direction, strategy before resources,” Senate Majority Leader Harry Reid , a Nevada Democrat, said after the session. Senator John McCain , a leading Republican voice on military matters, said Obama should carefully weigh the recommendations of his frontline commanders, Generals David Petraeus and Stanley McChrystal . The U.S. can’t afford to make less than a full commitment to Afghanistan, he said. “Half measures is what I worry about,” McCain said. “Time is not on our side.” The administration has signaled a new war policy will come within weeks at the conclusion of at least five conferences involving Obama, his top national security and foreign policy advisers and military commanders. The third such meeting is scheduled for this afternoon and includes Secretary of State Hillary Clinton , Defense Secretary Robert Gates , as well as Petraeus, head of the U.S. Central Command, and McChrystal, the top U.S. and NATO commander in Afghanistan. Force Request Petraeus, the commander of U.S. forces in the Middle East and Central Asia, said yesterday a request by McChrystal for more troops in Afghanistan is “about to be introduced into the discussion.” At least 68,000 U.S. troops will be in Afghanistan by December and McChrystal may request as many as 40,000 more. Petraeus said “there is pretty general assessment” that McChrystal’s view that as many as 400,000 Afghan army and police will be needed “is in the ballpark, because by whatever math you use, he’s facing an industrial-sized insurgency.” Members of Congress and the administration are divided over the U.S. approach. Vice President Joe Biden is advocating a counterterrorism approach that focuses on combating al-Qaeda through the use of drones and special forces and would avoid adding troops. In Congress, some Democrats are urging Obama to take a cautious approach and many Republicans backing a more robust military campaign. Answering Questions “There are serious questions about Pakistan’s relationship to what we do in Afghanistan; there are questions about the Taliban,” Senate Foreign Relations Committee Chairman John Kerry said as he left the meeting. “Until those questions are satisfactorily answered, I think it would be irresponsible to make a choice about committing people to harm’s way.” Senate Armed Services Committee Chairman Carl Levin , a Michigan Democrat, said that during the group meeting and in an additional private meeting with Obama he told the president the U.S. shouldn’t send in more combat troops. “The downside outweighs the additional value,” Levin said. McCain said a version of the so-called surge strategy employed in Iraq can work in Afghanistan. “I’m very convinced that General McChrystal’s analysis is not only correct but should be employed as quickly as possible,” McCain said. “It’s the president’s final decision, but I certainly think that their recommendations should be given great weight.” No Pullout Administration officials have said that pulling all U.S. troops from Afghanistan isn’t under consideration. White House press secretary Robert Gibbs said yesterday that “leaving Afghanistan isn’t an option.” Yesterday’s meeting included more than two dozen congressional leaders and heads of committees that oversee military and foreign policy. Obama gave them an outline of progress that has been made in Afghanistan and in targeting al- Qaeda, according to an administration official who gave reporters an overview of the meeting on condition of anonymity. Obama told the lawmakers his decision will be based on pursuing the strategy that best will prevent terrorist attacks on the U.S. and its allies, the official said. Obama made clear, the official said, that he didn’t expect to reach a decision that would make everyone happy, a point confirmed by lawmakers, including Virginia Representative Eric Cantor , the second-ranking House Republican. If Obama doesn’t support the recommendations of the commanders in the field, Republicans “will be listening for a compelling case of how we expect success to occur,” Cantor said. Stepping Up Attacks The Taliban has been stepping up attacks on U.S. and NATO forces and the government of Afghan President Hamid Karzai . Last weekend eight American soldiers were killed in a battle with insurgents who attacked a remote outpost in northern Afghanistan near the border with Pakistan. Public support for the war is eroding. An ABC/Washington Post poll conducted Sept. 10-12 found that 46 percent of Americans said the war in Afghanistan was worth fighting, compared with 51 percent who said it wasn’t worth the cost. In March, 56 percent said the war was worthwhile. “The president’s going to make a decision, popular or unpopular, based on what he thinks is in the best interest of the country,” Gibbs said. To contact the reporters on this story: Nicholas Johnston in Washington at njohnston3@bloomberg.net Roger Runningen in Washington at rrunningen@bloomberg.net

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Gates Says Military Advice to Obama on Afghanistan Should Be Kept Private

October 5, 2009

By Tony Capaccio Oct. 5 (Bloomberg) — Defense Secretary Robert Gates said today the U.S. military’s advice to President Barack Obama on Afghanistan should be given privately, an implicit rebuke to the commander who has discussed openly his own views on war strategy. Referring to the debate within the administration over troop levels in Afghanistan, Gates said “it is imperative that all of us taking part in these deliberations, civilians and military alike, provide our best advice to the president, candidly but privately.” Army General Stanley McChrystal , the commander of U.S. and NATO forces in Afghanistan, said in media interviews and a speech last week in London that the Taliban insurgency is gathering strength and the U.S. risks failure without doing more to protect the local population. Obama is examining options for the Afghan war after McChrystal, in a private Aug. 30 assessment, said more international troops would be needed to provide security and train Afghan forces. Gates’s comments today, in a speech opening the annual convention of the Association of the U.S. Army in Washington, echoed criticism from retired Marine Corps General Jim Jones , Obama’s national security adviser. “It is better for military advice to come up through the chain of command,” Jones said in an interview yesterday on CNN. Obama is to have a closed-door meeting later today with Gates and is scheduled to conduct the third of at least five strategy sessions on Afghanistan Oct. 7 with his top foreign policy, national security and military advisers. McChrystal Meeting The president met with McChrystal Oct. 2 aboard Air Force One while Obama was in Copenhagen as part of the unsuccessful U.S. bid to bring the 2016 Olympic Games to Chicago. Gates said today in his speech that decisions Obama will make on the next stage of the Afghanistan campaign “will be among the most important of his presidency, so it is important that we take our time to do all we can to get this right.” “And speaking for the Department of Defense,” Gates said, “once the commander-in-chief makes his decisions, we will salute and execute those decisions faithfully and to the best of our ability.” Gates said violence levels in Iraq are “up some 60 percent from last year, a “worrisome trajectory.” Eight U.S. soldiers were killed over the weekend when militants attacked two outposts in eastern Nuristan province. Senator John McCain of Arizona, the top Republican on the Armed Services Committee, has said McChrystal is seeking 30,000 to 40,000 additional troops, and Republican Senator Lindsey Graham of South Carolina said the situation in the country will worsen without an increase. The president will brief Republican and Democratic congressional leaders tomorrow about his review of U.S. strategy in Afghanistan, White House press secretary Robert Gibbs said. The meeting at the White House is intended to “walk them through where we are in the process,” Gibbs said today. To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net .

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Afghanistan Strategy Decision May Be Weeks Away as Obama Convenes Advisers

October 1, 2009

By Hans Nichols and James Rowley Oct. 1 (Bloomberg) — Barack Obama’s decision on troop strength and the way forward in Afghanistan is likely weeks away after the president convened his top national-security and military advisers for another round of strategy sessions. Yesterday’s meeting was the second of five planned as Obama assesses the war strategy and considers whether to add as many as 40,000 more U.S. forces into the battle in Afghanistan. White House officials said no decision about whether to send more U.S. combat forces to Afghanistan is imminent. “Let’s get a firm strategy, let’s discuss that, let’s poke and prod it and ensure that we’ve done it the right way,” White House press secretary Robert Gibbs said yesterday. “Then implement tactics to achieve that strategy.” Political pressure is building on Obama as Republicans, including Arizona Senator John McCain , the party’s 2008 presidential nominee and a leading voice on defense matters, urge the president to act quickly and send in more forces. Democrats including Senator John Kerry of Massachusetts are expressing skepticism about rushing more troops to the war. Public support for the war is slipping. Fifty-one percent of adults said the war in Afghanistan isn’t worth fighting and 46 percent said it is in a Sept. 10-12 ABC News/Washington Post poll . That is the reverse of the result of a March poll in which 56 percent said the war is worth fighting and 41 percent said it isn’t. Just 26 percent favored increasing U.S. forces. Advisers Secretary of State Hillary Clinton , CIA Director Leon Panetta , Defense Secretary Robert Gates and General Stanley McChrystal , the top U.S. and NATO commander in Afghanistan, were among those taking part in the discussion at the White House. Another such session is scheduled for Oct. 7. The briefing began with an intelligence review by the office of the director of national intelligence, Dennis Blair , a White House official said last night. McChrystal, appearing by video conference, reiterated many of the points from his official assessment, touching on the tenuous security as well as success in killing or capturing terrorists. The subject of additional troops wasn’t discussed in the three-hour session, said the official, who requested anonymity. Lawmakers Briefed Obama’s national security adviser, General Jim Jones , briefed senators on the administration’s progress last night. McCain said Jones offered “nothing that you didn’t read” in the news media. That sentiment was echoed several other senators from both parties, who said Jones also indicated Obama isn’t ready to make a decision. Jones told lawmakers the decision “would be a matter of weeks, not months,” Connecticut independent Joseph Lieberman told reporters after the briefing. Senator Richard Lugar of Indiana said Obama needs to move faster. “What we want to know right now is what the commander-in- chief says,” Lugar said. The ranking Republican on the Foreign Relations Committee, Lugar said he hoped “we are going to move on a little bit more decisively.” Senator Bob Corker , a Tennessee Republican, said that while many in his party are pressing for a quick decision on strategy and troops, “it’s perfectly legitimate to spend a couple of weeks looking at the request.” Jones didn’t discuss specific troop levels, senators said. Full Debate Democratic Senator Bob Casey of Pennsylvania said Congress must be more involved the debate over strategy. Prior to the U.S. invasion of Iraq, there wasn’t enough discussion about American interests and strategy. “On the grave question of war, you’ve got to have a full debate and listen to points of view from both sides,” he said. Obama ordered McChrystal, who he installed as commander in Afghanistan earlier this year, to write an assessment of the conflict. The Washington Post, citing unnamed officials, reported Sept. 27 that McChrystal will seek 10,000 to 40,000 more troops to carry out a counterinsurgency mission. He warned that the U.S. risks failure in the country. Afghan Minister Afghan Foreign Minister Rangin Dadfar Spanta arrived in Washington yesterday for talks with General David Petraeus , the head of U.S. Central Command, and members of the Senate Foreign Relations Committee. Petraeus “indicated his support for General McChrystal’s assessment” and told Spanta that “extensive meetings and debates within the administration” are under way about strategy and troop levels needed for Afghanistan, according to Afghan Ambassador to the U.S. Said Jawad , who participated in the meetings. During last year’s presidential campaign, Obama criticized the war in Iraq, arguing that success in Afghanistan was more central to America’s security. Obama earlier this ordered an additional 21,000 forces into the country. That will bring the total U.S. deployment to 68,000 before the end of the year. He has also requested more resources from NATO allies. The consequences of leaving Afghanistan or somehow winding down the involvement there now would be “frightening,” George Robertson , a former secretary-general of NATO from 1999 to 2003, said yesterday. “It’s not just the standing of the alliance,” he said. “It’s the safety of the people of the alliance countries that stands at risk there.” To contact the reporters on this story: Hans Nichols in Washington at hnichols2@bloomberg.net ; James Rowley in Washington at jarowley@bloomberg.net

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Gates Says Afghan War Effort Not Faltering, U.S. Is Poised to Make Headway

September 3, 2009

By Tony Capaccio Sept. 3 (Bloomberg) — Defense Secretary Robert Gates said an assessment of the military situation in Afghanistan has been forwarded to President Barack Obama and that any request for additional U.S. forces or money will be to “effectively implement” current strategy, not to “launch a new one.” The war isn’t “slipping through the administration’s fingers,” and the U.S. now has “the right approach to begin making some headway,” Gates said today at a Pentagon press conference. Both Gates and Admiral Michael Mullen , chairman of the Joint Chiefs, said the U.S. has a limited amount of time to show progress after eight years of war against the Taliban in Afghanistan. “We have to start to turn this thing around from a security standpoint over the next 12-18 months,” Mullen said. “It’s complex, it’s tough, we’re losing people.” Gates disagreed with those who say the U.S. should withdraw forces and conduct the war from a distance, relying heavily on air strikes by unmanned planes. “The notion that you can conduct a counter-terrorist campaign and do it from a distance simply does not accord with reality,” Gates said. Americans opposed the war in Afghanistan by 57 percent in an Aug. 28-31 CNN/Opinion Research poll, up from 46 percent in early April, the Chicago Tribune reported. ‘Not Surprising’ Gates said Americans’ growing disaffection is “not surprising.” “This nation has been at war for eight years,” he said. “Americans are tired of having their sons and daughters at risk.” General Stanley McChrystal , the commander of U.S. and NATO forces in Afghanistan, on Aug. 31 sent his assessment of the mission to General David Petraeus , the commander of U.S. forces in the Middle East and Central Asia, and to the head of the North Atlantic Treaty Organization. McChrystal’s report didn’t’ include a request for more forces. That would come separately, if at all, Gates said. There are 62,000 U.S. troops in Afghanistan today. That is scheduled to increase to at least 68,000 by December, and more might be needed to support any increase in Afghan security forces greater than now planned. “The situation in Afghanistan is serious but success is achievable,” McChrystal said in a statement accompanying the release of his report Aug. 31. He called for a stronger focus on beefing up Afghan forces and protecting civilians. To contact the reporter on this story: Tony Capaccio in Washington at acapaccio@bloomberg.net .

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