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Washington, DC – Senators Sheldon Whitehouse (D-RI) and Dick Durbin (D-IL) led 14 Democratic members of the Senate Judiciary and Intelligence Committees in asking leaders at the Department of Justice to detail the ethical agreements binding the newly confirmed head of the Department’s Criminal Division, Brian Benczkowski.  The information would shed light on whether Benczkowski—a nominee noted as uniquely underqualified, who served as an aide to then-Senator Jeff Sessions and on the Trump transition team, and who represented a Russian bank some suspect may have served as a clandestine back channel between Russia and the Trump Organization—has done enough to insulate himself from potentially serious conflicts of interest, including those involving Special Counsel Robert Mueller’s investigation into Russian attacks on the 2016 election.

Joining Whitehouse and Durbin in sending the letter to Deputy Attorney General Rod Rosenstein and Assistant Attorney General for Administration Lee Lofthus are Judiciary Committee Ranking Member Dianne Feinstein (D-CA), Intelligence Committee Vice Chairman Mark Warner (D-VA), and Senators Patrick Leahy (D-VT), Amy Klobuchar (D-MN), Chris Coons (D-DE), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Cory Booker (D-NJ), Kamala Harris (D-CA), Ron Wyden (D-OR), Martin Heinrich (D-NM), and Jack Reed (D-RI).

Among the senators’ concerns is the potential for Benczkowski, now privy to details of a broad array of Justice Department investigations and prosecutions, to access information on the Special Counsel investigation.  They also raise Benczkowski’s commitment to recuse himself from matters related to the Russian bank linked to the Trump Organization, Alfa Bank—a recusal that does not encompass the bank’s parent company, Alfa Group Consortium.  Events of the past week illustrate several of the issues with Benczkowski’s past employment and current position, the senators point out, suggesting the only remedy is a blanket recusal.

Without recusal,” the senators write, “there is a risk that Mr. Benczkowski would have oversight of investigative steps such as the Special Counsel’s recent request for use immunity for five witnesses in the SCO’s prosecution of Paul Manafort.  Likewise, last Tuesday, the Department indicted a Russian national, Mariia Butina, for acting and conspiring to act as an agent of a foreign government.  . . . Mr. Benczkowski’s involvement in these actions could, at a minimum, create the appearance of a conflict or undue influence over these decisions.”

The senators continue, “Given Mr. Benczkowski’s prior relationship with the Attorney General and his representation of Alfa Bank—particularly in connection to the Steele Dossier—we believe Mr. Benczkowski should be recused from all aspects of the Special Counsel investigation, as well as from all matters related to the Alfa Group Consortium and its principals.  A categorical recusal is the only way for the Department to ensure public confidence in those and any associated investigations.” 

The Criminal Division is responsible for overseeing a stable of over 700 criminal attorneys charged with overseeing and prosecuting high-profile federal cases nationwide.  Benczkowski has no prosecutorial experience and has spent virtually no time in a courtroom. 

Full text of the senators’ letter is below.  A PDF version is available here.    

 

 

July 24, 2018

 

 

The Honorable Rod J. Rosenstein

Deputy Attorney General

U.S. Department of Justice

950 Pennsylvania Avenue, NW

Washington, D.C. 20530-0001

 

The Honorable Lee J. Lofthus

Assistant Attorney General for Administration

U.S. Department of Justice

950 Pennsylvania Avenue, NW

Washington, D.C. 20530-0001

 

Dear Deputy Attorney General Rosenstein and Assistant Attorney General Lofthus:

 

On Wednesday, July 11, 2018, the Senate confirmed Brian Benczkowski to be Assistant Attorney General (AAG) of the Criminal Division of the Department of Justice (“Department”).  Today, we write for further information concerning Mr. Benczkowski’s ethics agreement with the Department, the scope of his recusals, any waivers he has been granted, and any other information relevant to the Department’s review of Mr. Benczkowski’s prior work at it relates to his compliance with the Ethics in Government Act, associated regulations, Department policy, and the Trump Ethics Pledge, Executive Order 13770. 

 

The context of Mr. Benczkowski’s selection to lead the Criminal Division raises concerns that must be addressed in your review.  With no prosecutorial experience and barely any time in a courtroom of any sort, Mr. Benczkowski appears to have been nominated at least in part as a result of his prior, political relationship with Attorney General Sessions.  With the Attorney General recused from the Department’s Russia investigation, President Trump repeatedly violating rules and norms designed to protect the independence of that investigation, and House Republicans engaged in an active campaign to discredit the Department and FBI and make confidential investigative materials public, the Department and its ethics officials should take the utmost precautions to prevent any backchannel, unauthorized disclosures of the Special Counsel’s work.  

 

The issues with Mr. Benczkowski extend to his experience, as well as his lack of experience.  During the course of his confirmation proceedings, it came to light that as a lawyer in private practice, Mr. Benczkowski recently represented the Russian Alfa Bank in connection with allegations that its servers had maintained a clandestine back channel to the Trump Organization.  Mr. Benczkowski’s representation of Alfa Bank also included a review of the so-called “Steele dossier,” the private intelligence report by Christopher Steele that bears on issues central to the ongoing Special Counsel investigation into Russian election interference and related matters.  

 

Before his confirmation, Mr. Benczkowski committed to recuse himself, if confirmed as AAG, from all matters related to Alfa Bank.[1]  He did not, however, commit to recuse himself from all matters related to the Alfa Group Consortium, the parent company of Alfa Bank, or individuals related to that entity.  He also did not commit to recuse himself from the Special Counsel’s investigation into Russian election interference.  Three individuals with ownership interests in Alfa Group Consortium—Mikhail Fridman, Pyotr Aven, and German Khan—have been identified to Congress by the United States Department of Treasury as among “senior foreign officials and oligarchs in the Russian Federation, as determined by their closeness to the Russian regime and their net worth.”[2]  A son-in-law of Mr. Khan, Alex Van der Zwaan, pleaded guilty to lying to federal investigators.[3] 

 

With respect to those matters, Mr. Benczkowski told the Senate Judiciary Committee:

 

Because I do not know the scope of [the Department’s investigation into Russian interference with the 2016 election or Special Counsel Mueller’s investigation], I cannot commit to such a recusal at this time.  If I am confirmed and a matter comes before me in the Criminal Division where I believe recusal might be warranted, I will review the facts, consult with career ethics officials at the Department, and make a decision as warranted by the law and the facts.[4]

 

In prior correspondence with the Senate, the Department has confirmed that the Special Counsel’s Office (SCO) may need to “seek approvals from the Criminal Division as required by statute, regulation, or policy[.]”[5]  The Department has also committed that “if Mr. Benczkowski is confirmed as AAG, the Department will require his consultation with appropriate ethics experts within the Department prior to his participation in or supervision of the SCO’s interaction with the Criminal Division.”[6]

 

The significance of these determinations was underscored by two steps taken by the Department just last week.  For example, without recusal, there is a risk that Mr. Benczkowski would have oversight of investigative steps such as the Special Counsel’s recent request for use immunity for five witnesses in the SCO’s prosecution of Paul Manafort.  Likewise, last Tuesday, the Department indicted a Russian national, Mariia Butina, for acting and conspiring to act as an agent of a foreign government.  The indictment was handed down by a grand jury in the United States District Court for the District of Columbia and signed by the District’s United States Attorney, Jessie Liu.  Mr. Benczkowski’s involvement in these actions could, at a minimum, create the appearance of a conflict or undue influence over these decisions.

 

Given Mr. Benczkowski’s prior relationship with the Attorney General and his representation of Alfa Bank—particularly in connection to the Steele Dossier—we believe Mr. Benczkowski should be recused from all aspects of the Special Counsel investigation, as well as from all matters related to the Alfa Group Consortium and its principals.  A categorical recusal is the only way for the Department to ensure public confidence in those and any associated investigations.  To further understand the Department’s position and decisions related to Mr. Benczkowski’s conflicts of interest, we request that you provide the following documentation and, as applicable, address the following questions:

 

  • All ethics agreements, recusals, waivers, or other documentation pertaining to the scope of Mr. Benczkowski’s duties at the Department. 
  • All counseling notes, emails, and any other communication between Mr. Benczkowski, the Department’s Ethics Office, and the Office of Government Ethics.  
  • A copy of Mr. Benczkowski’s signed “Ethics Pledge.”
  • If Mr. Benczkowski has not been recused from all matters related to the Alfa Group Consortium, please explain why.
  • If Mr. Benczkowski has not been recused from all matters related to Mikhail Fridman, Pyotr Aven, and/or German Khan, please explain why.
  • What was Mr. Benczkowski’s involvement, if any, in the Department’s request for use immunity for five witnesses in the SCO’s prosecution of Paul Manafort, and in the Department’s decision to charge Mariia Butina?
  • If Mr. Benczkowski has not been recused from all matters related to the Special Counsel’s investigation into Russian interference in the 2016 election, or related investigations and prosecutions conducted by the Department or United States Attorneys’ offices, please explain why.

In Mr. Lofthus’s February 26, 2018, letter to Office of Government Ethics Acting Director David Apol, he stated that Mr. Benczkowski would meet with ethics officials during his first week of service and complete document compliance with his ethics agreement within 90 days of service.  The critical importance and pendency of matters before the Department demand assurances that Mr. Benczkowski will have no role, consultative or otherwise, in them until his ethics arrangements are complete.  Accordingly, we request a response to this letter no later than July 31, 2018.  

 

 

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[1] See Response from Brian Benczkowski to Question for the Record #2 from Senator Sheldon Whitehouse, August 1, 2017 (“I have decided to recuse myself from any matter involving Alfa Bank for the duration of my service as the Assistant Attorney General for the Criminal Division, if I am confirmed.”).

[2] Report to Congress Pursuant to Section 241 of the Countering America’s Adversaries Through Sanctions Act of 2017 Regarding Senior Foreign Political Figures and Oligarchs in the Russian Federation and Russian Parastatal Entities, January 29, 2018. 

[3] The Special Counsel referenced Mr. Khan in his sentencing memorandum for Mr. Van der Zwaan: “Van der Zwaan is a person of ample financial means—both personally and through his father-in-law, a prominent Russian oligarch, who has paid substantial sums to the defendant and his wife.  He can pay any fine imposed.”  Government’s Sentencing Memorandum, Crim. No. 18-31 (D.D.C) filed Mar. 27, 2018.  

[4] Response from Brian Benczkowski to Question for the Record #3 from Senator Sheldon Whitehouse, August 1, 2017. 

[5] Letter from Hon. Stephen Boyd to Senator Sheldon Whitehouse, Dec. 11, 2017.

[6] Id.

WASHINGTON – Today U.S. Senators Chris Van Hollen (D-Md.) and Marco Rubio (R-Fla.) announced new cosponsors of bipartisan Defending Elections from Threats by Establishing Redlines (DETER) Act: Senators Mark R. Warner (D-Va.), Cory Gardner (R-Colo.), Tammy Baldwin (D-Wis.), Lindsey Graham (R-S.C.), Chris Coons (D-Del.), Ben Sasse (R-Neb), Maria Cantwell (D-Wash.), and Charles Grassley (R-Iowa).

The legislation sends a powerful message to Russia and any other foreign actor seeking to disrupt our elections:  if you attack American candidates, campaigns, or voting infrastructure, you will face severe consequences. The DETER Act uses the threat of powerful sanctions to dissuade hostile foreign powers from meddling in our elections by ensuring that they know well in advance that the costs will outweigh the benefits.

“In the face of unequivocal evidence that Russia worked to undermine our elections in 2016 and continued aggression from the Kremlin just four months until our next federal elections, we must take action,” said Senator Van Hollen. “The DETER Act would send a clear signal that attacks on our democracy will not be tolerated. We’re proud to announce this new support from our colleagues, and we hope the Senate will take up this bipartisan legislation without delay.” 

“The most meaningful measure that we can take right now to protect our democracy is to pass the bipartisan DETER Act, which imposes specific and serious sanctions against foreign countries that meddle in our future elections. We must make sure Putin understands that we will not overlook his hostilities, and he will face punishing consequences if he tries to interfere in our elections again,” said Senator Rubio. 

“We have to do everything we can to protect our elections from foreign interference. The 2018 midterm elections are just around the corner, and Director National Intelligence Dan Coats just recently cautioned that the ‘warning lights are blinking red again.’ On the heels of the President’s weak performance in Helsinki, it’s critical that we make clear to Putin that interference in our democratic process will not be tolerated. I thank Senator Van Hollen and Senator Rubio for their leadership on this issue,” said Senate Intelligence Committee Vice Chairman Warner.

“As the U.S. intelligence services have reported, it is an incontrovertible fact that Russia sought to influence the 2016 elections in the United States – a fact that President Putin openly confirmed during the recent U.S.-Russia summit in Helsinki,” Senator Gardner said. “We know Russia will try again, so we must also be forward thinking to prevent this assault on our democracy from ever happening again. As we get closer to our next elections, we should be making it clear to the KGB thug Vladimir Putin, and anyone else who dares meddle in our elections, that this type of behavior will never be tolerated and will be met with severe and immediate consequences.”

“Russia’s interference in our elections cannot be dismissed or ignored. Congress has a responsibility to take action and impose costs on those who would attack American democracy,” said Senator Baldwin. “This bipartisan effort puts country over party, stands up for our democracy and will send a powerful message to bad actors like Putin’s Russia and other adversarial nations that future attacks on our elections will be met with severe consequences.” 

“Our Intelligence Community has made it clear that Russia interfered in our 2016 elections and will do so again -  unless we take actions to prevent it,” said Senator Coons. “The DETER Act will impose penalties on Russia – or any other adversary – that seeks to undermine our democratic processes and traditions.  I commend Senator Rubio and Senator Van Hollen for introducing this bill and I look forward to working with them to pass it into law.”

“Vladimir Putin wants to make the Soviet Union great again and he hates the very stuff that makes America great – our First Amendment freedoms and our free and fair elections,” said Senator Sasse. “Russia is coming back in 2018, 2020, and 2022 to sow chaos and distrust. We cannot fall asleep on the watch. These attacks deserve consequences -- and sanctions send a strong message. 

“The conclusion of American intelligence agencies is crystal clear: Russian interference in our elections is a fact. We must take immediate action to protect and secure our elections from future meddling by Russia or anyone else. Deterring foreign enemies from attacking our election systems and other critical infrastructure is just the first step we must take to protect our national security and democratic institutions,” said Senator Cantwell. 

Senator Grassley said, “While no vote tallies were changed in the 2016 presidential election, Russian cyberattacks and propaganda efforts undermined confidence in our democratic process. Vladimir Putin would like nothing more than to continue sowing discord and meddling in Western democracies without consequence. Passing this legislation would help improve Americans’ faith in their system of government and send an unmistakable signal to the Kremlin that it’s not worth trying it again.”

 

 

BACKGROUND

 

Reporting Requirements

·         The Director of National Intelligence (DNI) must issue to Congress a determination on whether any foreign government has interfered in that election within one month after every federal election.

 

Actions That Will Elicit Retaliation

·         A foreign government, or an agent acting on its behalf, cannot purchase advertisements to influence an election, including online ads.

·         A foreign government, or an agent acting on its behalf, cannot use social and traditional media to spread significant amounts of false information to Americans.

·         A foreign government, or an agent acting on its behalf, cannot hack and release or modify election and campaign infrastructure, including voter registration databases and campaign emails

·         A foreign government, or an agent acting on its behalf, cannot block or otherwise hinder access to elections infrastructure, such as websites providing information on polling locations.

 

Russia-Specific Sanctions

·         If the DNI determines that the Kremlin has once again interfered in an American federal election, the bill mandates a set of severe sanctions that must be implement within ten days of the DNI's determination.

·         This includes sanctions on major sectors of the Russian economy, including finance, energy, defense, and metals and mining.

·         Every senior Russian political figure or oligarch, identified in the report required by the Countering America's Adversaries Act of 2017, will be blacklisted from entering the United States and will have their assets blocked.

·         The Administration is also required to work with the European Union to enlist their support in adopting a sanctions regime to broaden the impact.

 

Preparing for Other Potential Attacks

·         The DNI has identified China, Iran, and North Korea as our other major foreign government cyber threats, and they may also seek to exploit American vulnerabilities in the next election cycle.

·         The Administration should present Congress with a plan for preventing interference in our elections for each of these countries, and any other foreign state of significant concern.

 

 

###

 

 

 

 

WASHINGTON— Following President Trump’s meeting and press conference with Vladimir Putin in Helsinki, where he accepted Putin’s election meddling denial, top Senate Democrats sent a letter to President Trump listing a series of questions to clarify what commitments he may have made to Putin during their secretive and lengthy meeting. 

U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, Senate Minority Leader Chuck Schumer (D-NY), Democratic Whip Dick Durbin (D-IL), Senate Foreign Relations Ranking Member Bob Menendez (D-NJ), Senate Armed Services Ranking Member Jack Reed (D-RI), and Senate Banking Ranking Member Sherrod Brown (D-OH) signed the letter to President Trump.

“American citizens and the whole world watched the leader of the free world align with an authoritarian leader who orchestrated an attack on our own democracy. President Putin and his government are wasting no time capitalizing on yesterday’s meeting and using it to advance their national interests. We cannot afford to be blindsided or outmaneuvered,” wrote the Senators before listing 13 questions to be answered by the President. “Your cursory description of what was discussed at a two-and-a-half-hour meeting does little to assuage these concerns. To adequately protect America’s interests, we need to know what commitments you may have made to President Putin.”

The Senators also called on the Trump Administration to allow the U.S. Ambassador to Russia and the Secretary of Defense to testify before Congress about the repercussions of the Helsinki summit. Secretary of State Mike Pompeo is already scheduled to appear before the Senate Foreign Relations Committee on Wednesday July 25th.

The text of the letter can be found here and below:

 

Mr. President:

 

Yesterday was a stunning day for American democracy. American citizens and the whole world watched the leader of the free world align with an authoritarian leader who orchestrated an attack on our own democracy. In doing so, you turned your back on our own intelligence community, which unanimously agrees that the Russian government carried out attacks intended to disrupt and interfere with our elections and influence public opinion.

 

We as a nation must now wonder exactly what you discussed and may have promised to President Putin. Congress and the American public have a right to know. President Putin and his government are wasting no time capitalizing on yesterday’s meeting and using it to advance their national interests. We cannot afford to be blindsided or outmaneuvered. Just today the Russian Ministry of Defense publicly stated that it is prepared to start implementing an agreement you apparently struck in Helsinki with President Putin, an agreement that neither Congress nor the American people have been informed about.

 

Your cursory description of what was discussed at a two-and-a-half-hour meeting does little to assuage these concerns. To adequately protect America’s interests, we need to know what commitments you may have made to President Putin. Specifically: 

 

1.       What is the full list of topics you discussed?

 

2.       What were the “suggestions” President Putin made to you?

 

3.       Did you discuss any changes to international security agreements?

 

4.       Did you advocate for the removal to the U.S. of the 12 Russian intelligence officers indicted last Friday?

 

5.       Did you make any commitments regarding the future of the U.S. military presence in Syria? 

 

6.       Did you call upon President Putin to uphold Russia’s commitments, agreed to at the Presidential level last year in Da Nang, Vietnam, with respect to the de-escalation zone in southwest Syria, especially the presence of Iran and Iranian-aligned forces?

 

7.       Did you press Russia to return to compliance with the INF treaty and halt its nuclear threats against Europe?

 

8.       Did you discuss relaxing U.S. sanctions on Russia, including CAATSA sanctions? If so, what was said, and what concessions, if any, were made by you and/or President Putin?

 

9.       Did you call upon President Putin to withdraw from Crimea and eastern Ukraine so that both areas are returned to Ukrainian Government control?

 

10.   Did you discuss NATO military exercises scheduled for this fall?  Did you agree to roll back or change the nature of those exercises?

 

11.   Did you discuss U.S. security assistance to Ukraine or make any concessions regarding its continuation?

 

12.   Did you raise the issue of political prisoners with President Putin, including that of Oleg Sentsov, the Ukrainian filmmaker who has been detained for 4 years and is on hunger strike?

 

13.   What, if anything, did you commit to?

 

Mr. President, the answers to these questions are of critical importance to U.S. national security. Answering them in full, without hesitation, will demonstrate that you do still hold America’s interests first. Some of us will press Secretary Pompeo on these issues next week. In addition, we urge you to immediately send the U.S. Ambassador to Russia, an appropriately high-ranking Intelligence Community official, and the Secretary of Defense to testify before Congress and explain how they will continue to advance America’s interests in light of yesterday’s summit.

 

We look forward to your response.

 

Sincerely,

###

Washington, D.C. — Late yesterday, House Democratic Leader Nancy Pelosi (D-CA), U.S. Senate Democratic Leader Chuck Schumer (D-NY), House Intelligence Committee Ranking Member Adam Schiff (D-CA), and Senate Intelligence Committee Vice Chairman Mark Warner (D-VA) sent a letter to Director of National Intelligence Daniel Coats expressing deep concern that classified and highly sensitive documents have been made broadly accessible to all members of the House and Senate Intelligence Committees, rather than a select group of designated Members.  As the Democratic Leaders write, Director Coats’s decision to widely release these classified documents could put sources and methods at risk.

In the letter, the Members write: “While we understand the need for congressional oversight, this action - which we understand was taken at your direction - contravenes your representation to us and our colleagues that this information would not be shared outside that group. … All of the meeting's attendees agreed that the information discussed was among the most sensitive type of information and should be protected accordingly.  We believe your decision could put sources and methods at risk.”

 

 

* * *

 

The full letter is below:

 

July 12, 2018

 

 

Honorable Daniel Coats

Director

Office of the Director of National Intelligence

Washington, DC 20511

 

Dear Director Coats:

 

In recent days, we learned that certain classified documents that were originally made available to a small group of designated members have been made more broadly available to all members of the House and Senate Intelligence Committees.  While we understand the need for congressional oversight, this action - which we understand was taken at your direction - contravenes your representation to us and our colleagues that this information would not be shared outside that group.  

 

As you know, during our meetings on this sensitive matter we discussed at great length the importance of protecting sources and methods and ongoing investigations.  All of the meeting's attendees agreed that the information discussed was among the most sensitive type of information and should be protected accordingly.  We believe your decision could put sources and methods at risk.

 

Further, we are concerned that your action was in direct contravention of our verbal and written requests (letters on June 5, 2018 and June 27, 2018) to Deputy Attorney General Rosenstein and Federal Bureau of Investigation Director Wray.  

 

This is a matter of serious importance and we believe a follow-on meeting of the Gang of Eight is needed as soon as possible.

 

Sincerely,

 

NANCY PELOSI

House Democratic Leader

CHUCK SCHUMER

Senate Democratic Leader

ADAM SCHIFF

Ranking Member, House Intelligence Committee 

MARK WARNER

Vice Chairman, Senate Intelligence Committee 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, joined Senate colleagues in urging the Chairmen of the Senate and House Armed Services Committees to include a Senate-passed amendment cosponsored by Sen. Warner that would reinstate penalties against ZTE in their upcoming NDAA FY2019 Conference Report. Earlier this year, intelligence leaders testified before the Senate Intelligence Committee warning that ZTE, Huawei, and other Chinese state-directed telecommunications companies have the capacity for espionage and intellectual property theft, posing clear threats to the national security, people, and economy of the United States. This week, President Trump’s Commerce Department announced an agreement to lift the ban preventing Chinese telecom giant ZTE from doing business with American suppliers.

Additionally, Senators urged the conferees to include the reforms to the Committee on Foreign Investment in the United States (CFIUS), which were a part of the recently passed Senate NDAA bill. These reforms, also known as the Foreign Investment Risk Review Modernization Act (FIRRMA), would ensure that foreign investments in the U.S. do not pose a national security risk.

Sen. Warner, a former technology executive, has long expressed concern that ZTE poses a significant threat to our national security. He recently wrote to the administration urging President Trump to re-consider a deal with the China-based company.

The text of the letter to NDAA conferees can be found here and below:

 

Dear Chairmen McCain and Thornberry, and Ranking Members Reed and Smith:

 

We write to express our strong support for measures in the Senate-passed Fiscal Year 2019 National Defense Authorization Act (FY 2019 NDAA) that would reinstate U.S. government penalties against ZTE, a Chinese state-directed telecommunications company, and modernize the Committee on Foreign Investment in the United States (CFIUS).  As you begin deliberations over the final version of the FY 2019 NDAA, we request that you include these two measures.

 

Section 6702:  Prohibition on Modification of Civil Penalties under Export Control and Sanctions Laws and Prohibition on Certain Telecommunications Equipment.

 

We strongly oppose the June 2018 deal with ZTE negotiated by the Commerce Department’s Bureau of Industry and Security (BIS) to lift the seven-year ban against the export of U.S. parts and components to ZTE.  BIS imposed this seven-year ban and other penalties against ZTE in April 2018 in response to its numerous violations of U.S. export controls and sanctions laws. 

 

We also note that our nation’s six top intelligence leaders testified before the Senate Intelligence Committee in February 2018 about their concern that ZTE, Huawei, and other Chinese state-directed telecommunications companies are beholden to the Chinese government and Communist Party, which provides the capacity for espionage and intellectual property theft, and therefore poses clear threats to the national security, people, and economy of the United States.  

 

As you prepare the Conference Report, we therefore urge you to retain—and further strengthen—Section 6702 of the Senate-passed FY 2019 NDAA, which would not only reinstate the April 2018 penalties against ZTE and prohibit the modification of any penalties against a Chinese telecommunications firm unless certain conditions are met, but also prohibit the U.S. government from using or procuring equipment from, or entering into a contract with ZTE or Huawei. 

 

Title XVII:  Foreign Investment Risk Review Modernization Act of 2018

 

We also thank you for your work protecting our national security and intellectual property by ensuring that foreign countries are not engaged in illicit behavior when investing in the United States.

 

As you are aware, the Senate version of the FY 2019 NDAA includes important reforms to the Committee on Foreign Investment in the United States that were part of the Foreign Investment Risk Review Modernization Act (FIRRMA).  Those reforms are vital to protecting our national security and preventing intellectual property theft by foreign countries—including the People’s Republic of China. 

 

As you negotiate a conference report for the 2019 NDAA, we urge you to include the Senate-passed CFIUS reforms and ensure that the final language fully addresses our national security and competitiveness concerns.  We believe that efforts to weaken the robust protections in the FIRRMA will embolden our adversaries and present threats to our national security.

 

We thank you for your leadership, and we appreciate your consideration.

 

Sincerely,

  

###

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance committees, issued the below statement regarding the U.S. Department of Commerce’s agreement to lift the ban on Chinese telecom giant ZTE doing business with American suppliers:

“I share the grave concerns of our military and the intelligence community, which are unanimous in their conclusion that ZTE — a state-controlled company with ties to Chinese intelligence — presents an ongoing threat to our national security. I also share many of the concerns the President has voiced in the past about China’s unfair trade practices, which have cheated American workers and permitted Chinese companies to steal the intellectual property of American firms with virtually no consequences. 

“This sweetheart deal not only ignores these serious issues, it lets ZTE off the hook for evading sanctions against Iran and North Korea with a slap on the wrist.”

 

###

WASHINGTON – Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, today sent a letter to Director of National Intelligence (DNI) Dan Coats asking whether assessments by our nation’s Intelligence Community (IC) align with the Trump Administration’s public pronouncements regarding North Korean denuclearization. 

On July 8, 2018, following talks with North Korean officials, Secretary of State Mike Pompeo said, “We had detailed, substantive conversations about the next steps toward a fully verified and complete denuclearization… There will be verification connected to the complete denuclearization. That’s what President Trump and Chairman Kim both agreed to.”

A joint statement issued by the President and the North Korean leader on June 12, 2018, similarly stated that “Kim Jong Un reaffirmed his firm and unwavering commitment to complete denuclearization of the Korean Peninsula.”  

Additionally, on June 13, 2018, the President declared via tweet that “everybody can now feel much safer than the day I took office. There is no longer a Nuclear Threat [sic] from North Korea.”

In light of those statements, Sen. Warner asked DNI Coats to produce and deliver to the congressional intelligence committees a definitive IC assessment regarding:

  • The willingness of Kim Jong Un to take concrete measures that would significantly reduce North Korea’s nuclear weapons stockpile or nuclear production capability in a way that would match his supposed commitment to “complete denuclearization”;
  • The willingness of Kim Jong Un to accept the kind of intrusive inspections that would verifiably demonstrate that North Korea has abandoned and dismantled its nuclear program;
  • What a complete, verifiable, and irreversible denuclearization process would look like from the IC’s perspective; and
  • A description of how North Korea’s nuclear and ballistic missile program presents a persistent threat to the United States, U.S. territories, and our allies.

A copy of Sen. Warner’s letter to DNI Coats is available here. 

 

###

 

WASHINGTON – Ahead of President Trump’s scheduled trip to Europe for a North Atlantic Treaty Organization (NATO) Summit and a meeting with Russian President Vladimir Putin, Sen. Mark R. Warner (D-VA)—Vice Chairman of the Senate Select Committee on Intelligence—and top Senate Democrats laid out expectations for President Trump to stay focused on reaffirming America’s commitment to our longstanding transatlantic NATO allies and against Russian aggression around the world.  

In a letter signed by Vice Chairman Warner and Sens. Bob Menendez (D-NJ), Ranking Member of the Senate Foreign Relations Committee; Dick Durbin (D-IL), Senate Democratic Whip; and Jack Reed (D-RI), Ranking Member of the Senate Armed Services Committee, the Senators warned the President not to make any concessions that could further compromise the post-World War II order. 

“Clear U.S. leadership is necessary to counter President Putin’s efforts to undermine the NATO alliance and its founding values,” wrote the Senators, citing Russia’s interference in democratic elections, aggressions in Ukraine, occupation of Crimea, and its steadfast support of the Assad regime in Syria. “While there is a place for dialogue between nations on disagreements and common challenges, such as reducing nuclear dangers, we are deeply concerned that your Administration continues to send mixed messages regarding the Russian security threat.” 

The Senators also listed critical topics for President Trump to discuss with NATO allies, adding, “it is imperative that you make a strong statement of support for the democratic nations that make up the Alliance and make clear that the United States stands with—not in opposition to—our oldest and closest allies.”  

“We stand ready to engage with your Administration, and with our NATO partners, to further the implementation of [CAATSA] and a coherent, coordinated U.S. policy toward Russia that reflects the realities of Russia’s aggression and our nation’s deepest democratic values,” concludes the letter. 

A copy of the letter to President Trump can be found here and below.

 

July 2, 2018

The Honorable Donald J. Trump

President of the United States

The White House

1600 Pennsylvania Avenue, NW

Washington, DC 20500

 

Dear Mr. President:

We strongly disagree with your past statements praising Russian President Vladimir Putin, in spite of overwhelming evidence from our intelligence community that the Russian government interfered in the 2016 U.S. election, its illegal occupation of Crimea, its support for a war criminal in Syria, as well as its other destabilizing actions against the United States and our allies.  If you continue with your plan to meet with President Putin, you must hold him accountable for these actions. During your trip to Europe, we urge you to remember at the North Atlantic Treaty Organization Summit in Brussels that NATO’s collective security principles have served to keep our nation secure and prosperous since the end of the Second World War.  

 

Clear U.S. leadership is necessary to counter President Putin’s efforts to undermine the NATO alliance and its founding values. In the last few years, the Kremlin has conducted a widespread campaign of interference in democratic processes around the globe, including in our own U.S. elections. From its violent aggression in eastern Ukraine, to its illegal occupation of the Ukrainian territory of Crimea, to its support for the brutal regime of Bashar Al-Assad in Syria – there is no evidence that the Government of the Russian Federation has changed or plans to change its behavior. If anything, the Kremlin appears to feel emboldened that it can launch attacks against the U.S. and our NATO allies – in the form of cyber attacks, disinformation, misinformation, and political interference, including the use of chemical agents on UK soil – with impunity.

 

While there is a place for dialogue between nations on disagreements and common challenges, such as reducing nuclear dangers, we are deeply concerned that your Administration continues to send mixed messages regarding the Russian security threat. 

 

During your meeting with President Putin, we ask that you convey that there will be clear consequences for Russia’s interference in democratic processes in the United States and elsewhere, its support for violence and bloodshed in Ukraine and Syria, and the illegal occupation of Crimea.  We strongly urge you to stand steadfast on the U.S. commitment to the mutual defense of our Allies and to the people of Ukraine. Congress will strongly oppose any step to degrade our strong bilateral relationship with Ukraine, including decreasing security assistance. In keeping with the United States’ longstanding support for human rights, we urge you to also raise the plight of prisoners in Russia and areas under Russian control who have been detained simply for peacefully expressing their political views and/or religious beliefs.

We agree with Secretary of State Mike Pompeo’s statement on April 27, 2018 that NATO has been “an essential pillar of American security interests for decades” and that, “In light of Russia’s unacceptable actions, NATO is more indispensable than ever.” In addition to urging NATO allies to meet their commitments to spend 2% of GDP on defense, working to boost NATO rapid mobility and readiness capacities, and addressing cyber threats and other evolving forms of hybrid warfare, it is imperative that you make a strong statement of support for the democratic nations that make up the Alliance and make clear that the United States stands with—not in opposition to—our oldest and closest allies.

The United States’ NATO allies rushed to collectively defend the security and freedom of the United States when—for the first and only time—Article 5 of the NATO treaty was invoked following the September 11, 2001 terror attacks. Brave citizens of our NATO allies have since put their lives on the line alongside U.S. military and civilians, in Afghanistan and elsewhere, to combat terrorism and to tackle a range of security threats, sometimes paying the ultimate sacrifice in the process. This is a legacy that merits renewed efforts by the United States to reinforce the alliance, rather than diminish it.

Secretary Pompeo also said in April that “NATO should not return to business as usual with Russia until Moscow shows a clear change in its actions and complies with international law.” As you know, Congress is virtually unanimous on its concerns over Russia, as demonstrated by the passage of last year’s Countering America’s Adversaries Through Sanctions Act which you signed into law in August 2017. We stand ready to engage with your Administration, and with our NATO partners, to further the implementation of this law and a coherent, coordinated U.S. policy toward Russia that reflects the realities of Russia’s aggression and our nation’s deepest democratic values.

Sincerely,

###

WASHINTON- U.S. Senators Amy Klobuchar (D-MN), Ranking Member of the Senate Rules Committee, and Mark Warner (D-VA), Vice Chairman of the Select Committee on Intelligence, urged the Federal Election Commission (FEC) to implement the strongest possible transparency and accountability requirements for online advertisements in response to the proposed rulemaking. The letter comes as the FEC begins public hearings today on online advertisements. 

“During the 2016 election cycle, Russians took advantage of weak online disclaimer and disclosure rules to purchase online political advertisements. As we rapidly approach the 2018 election, intelligence officials have warned that Russia is currently working to disrupt our elections again,” the senators wrote.

“People have a right to know who is behind the information they receive, and in particular who is trying to influence their vote. This necessitates new disclaimer and disclosure requirements for all online advertisements. Primary elections are already upon us and the general election is only 131 days away. Therefore, we encourage you to quickly adopt the strongest possible rule to increase transparency and accountability for online advertisements.” 

Klobuchar, Warner and Senator John McCain (R-AZ) are the authors of the bipartisan Honest Ads Act, legislation to help prevent foreign interference in future elections and improve the transparency of online political advertisements. The Honest Ads Act would prevent foreign actors from influencing our elections by ensuring that political ads sold online are covered by the same rules as ads sold on TV, radio, and satellite.

The full text of the letter can be found below:

 

Dear Commissioners:

 

As you conduct hearings this week on “Internet Disclaimers and Definition of Public Communication”, we encourage you to issue the strongest possible rule that will increase transparency and accountability for online advertisements.

 

During the 2016 election cycle, Russians took advantage of weak online disclaimer and disclosure rules to purchase online political advertisements. As part of a wide social media exploitation effort, Russia spent at least $100,000 dollars—in rubles—on Facebook ads to influence the 2016 election. According to Facebook responses to investigations by the Senate Select Committee on Intelligence and Senate Judiciary Committee, Russian disinformation reached more than 126 million Americans online.

 

As we rapidly approach the 2018 election, intelligence officials have warned that Russia is currently working to disrupt our elections again. As Director of National Intelligence Dan Coats stated earlier this year, “[t]he 2018 U.S. midterm elections are a potential target for Russian influence operations” and Russia will conduct “bolder and more disruptive cyber operations.”   Senate Intelligence Committee members determined that foreign actors illegally influenced the 2016 presidential election and that something has to be done to stop this from occurring in the future.

 

Online platforms dwarf broadcast, satellite, and cable providers. The largest internet platform has over 210 million American users. The largest cable provider only has 22 million subscribers – nearly an order of magnitude greater. That is why we introduced the Honest Ads Act earlier this year. Our legislation would apply the same rules to online political advertisements that already exist for traditional media and require digital advertisers to maintain a public record of political ads purchased. By requiring the same rules across all advertising platforms, we can limit foreign attempts to influence our elections, increase transparency in political advertising, and promote greater accountability.

 

People have a right to know who is behind the information they receive, and in particular who is trying to influence their vote. This necessitates new disclaimer and disclosure requirements for all online advertisements. Primary elections are already upon us and the general election is only 131 days away. Therefore, we encourage you to quickly adopt the strongest possible rule to increase transparency and accountability for online advertisements.

 

Sincerely,

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WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Marco Rubio (R-FL) sent a letter to President Trump, urging him to re-consider the deal lifting the ZTE ban, and to support the Senate-passed ban on government purchases of ZTE and Huawei equipment. Sen. Warner is the Vice Chairman of the Senate Select Committee on Intelligence and a member of the Finance and Banking committees. Sen. Rubio is a member of Senate Foreign Relations and Intelligence committees.  

In the letter to President Trump, the Senators wrote, “The Senate and the U.S. Intelligence Community are in agreement that ZTE poses a significant threat to our national security.  The Senate recently voted 85-10 to reimpose the April sanctions order and the ban on ZTE buying U.S. components, and to prohibit the U.S. federal government from purchasing ZTE or Huawei equipment and contracting with any entity that purchases such equipment.  We urge you to heed the leaders of the U.S. Intelligence Community, supported by a strong bipartisan consensus in the Senate, that we must pursue policies that prevent the widespread use of ZTE products in the U.S.”

The Senators noted that at a February 13, 2018 hearing in the Intelligence Committee, six of the nation’s top intelligence leaders – the Director of National Intelligence (DNI) and the heads of the Federal Bureau of Investigation (FBI), National Security Agency (NSA), Central Intelligence Agency (CIA), Defense Intelligence Agency (DIA), and the National Geospatial-Intelligence Agency (NGA) – testified about the risks posed to U.S. national security by ZTE and Huawei. Additionally, the nation’s top counterintelligence officer, Director of the National Counterintelligence Security Center Bill Evanina, testified at his May 15, 2018, confirmation hearing that Chinese telecom companies such as ZTE and Huawei pose a significant threat to American security.   

“As you know, this is not a new threat. Congressionally documented concerns date back to a 2012 House Permanent Select Committee on Intelligence report on the serious counterintelligence concerns associated with ZTE equipment, the ties between the company and government, and the risks to American national security,” the Senators added. “ZTE, though publicly traded, is a state-backed enterprise that is ultimately loyal not to its shareholders, but to the Chinese Communist Party and Chinese government.  This patronage relationship poses unacceptable risks to American sovereignty; risks that will only increase if the company is permitted to establish itself deeply in America’s telecommunications infrastructure.”

The full letter is available here and below. 

 

June 26, 2018

 

The President

The White House

1600 Pennsylvania Avenue, NW

Washington, DC  20500

 

Dear Mr. President:

 

We urge you to reconsider your decision to amend the April ZTE sanctions order and lift the ban the Commerce Department imposed this year that prohibited ZTE from buying U.S. components, and we ask for your support for the Senate-passed ban on the government buying ZTE and Huawei equipment.  We strongly believe that the April sanctions order—which would have threatened ZTE’s survival—should not be used as a bargaining chip in negotiations with China on unrelated matters.  

 

The Senate and the U.S. Intelligence Community are in agreement that ZTE poses a significant threat to our national security.  The Senate recently voted 85-10 to reimpose the April sanctions order and the ban on ZTE buying U.S. components,  and to prohibit the U.S. federal government from purchasing ZTE or Huawei equipment and contracting with any entity that purchases such equipment.  We urge you to heed the leaders of the U.S. Intelligence Community, supported by a strong bipartisan consensus in the Senate, that we must pursue policies that prevent the widespread use of ZTE products in the U.S.

 

At the Senate Intelligence Committee’s hearing on February 13, 2018, six top intelligence leaders testified about the risk of ZTE and Huawei to American national security: 

 

·         FBI Director Wray stated: “We’re deeply concerned about the risks of allowing any company or entity that is beholden to foreign governments that don’t share our values to gain positions of power inside our telecommunications networks that provides the capacity to exert pressure or control over our telecommunications infrastructure.  It provides the capacity to maliciously modify or steal information, and it provides the capacity to conduct undetected espionage.”  

·         Then-NSA Director Rogers warned:  “I would agree with Director Wray’s characterization here.  This is a challenge I think that's only going to increase, not lessen, over time for us.” To mayors, county judges, university presidents, and state legislatures, “I would say you need to look long and hard at companies like this.”

·         The Director of National Intelligence, and the heads of the CIA, FBI, NSA, DIA, and NGA all indicated they would not use products or services from ZTE or Huawei; nor would they recommend private American citizens do so. 

 

Additionally, the nation’s top counterintelligence officer, Director of the National Counterintelligence Security Center Bill Evanina, testified at his May 15, 2018, confirmation hearing that “the Intelligence Community and law enforcement is clearly on the record, both in the public and in classified settings, with the threat from Chinese telecommunications companies.”

 

As you know, this is not a new threat. Congressionally documented concerns date back to a 2012 House Permanent Select Committee on Intelligence report on the serious counterintelligence concerns associated with ZTE equipment, the ties between the company and government, and the risks to American national security. 

 

ZTE, though publicly traded, is a state-backed enterprise that is ultimately loyal not to its shareholders, but to the Chinese Communist Party and Chinese government.  This patronage relationship poses unacceptable risks to American sovereignty; risks that will only increase if the company is permitted to establish itself deeply in America’s telecommunications infrastructure.

 

Thank you for your attention to this important matter and for your assistance in ensuring we protect our nation’s future from authoritarian influence.

 

Sincerely,

 

Mark R. Warner

United States Senator

 

Marco Rubio

United States Senator

 

 

###

 

WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) applauded Senate passage of bipartisan legislation to fund federal programs and build new military construction and facilities under the Department of Veteran Affairs (V-A), the Department of Energy (DOE), and the Department of Defense (DoD). 

On a bipartisan 86-5 vote, the Senate approved the Fiscal Year 2019 appropriations package that covers funding for energy and water development, military construction and veterans affairs (MilCon-V-A), the legislative branch, and all of their related agencies. The bill will now go to conference where it will be reconciled with a version passed by the House of Representatives.

“Despite President Trump’s relentless attempts to drastically cut support for vital programs, this bipartisan bill fulfills the federal government’s commitment to supporting our nation’s military and veterans,” said the Senators. “It puts a stop to the Administration’s misguided efforts to cut or eliminate outright funding for the Appalachian Regional Commission and gut groundbreaking renewable energy R&D at the Department of Energy. It also funds new infrastructure projects that will help improve transportation networks and military facilities in the Commonwealth, and makes new investments to support the cutting-edge research at J-Lab.”

The following list includes many of the provisions Sens. Warner and Kaine advocated for on behalf of Virginia that were included in the appropriations package:

Appalachian Regional Commission: Following President Trump’s attempts to defund ARC, the bill fully funds this successful federal-state partnership by providing $155 million to continue its efforts to increase employment and economic opportunities for those living in Appalachia, strengthen and maintain the region’s infrastructure, and provide additional educational and workforce opportunities for citizens of Appalachia so that they can compete in a 21st century global economy.

Military Construction: Provides more than $131 million in new construction throughout the Commonwealth. 

  • Joint Base Langley-Eustis: Funds nearly $23 million on three projects at the base.
  • Forts A.P. and Belvoir: Receive nearly $18 million to build new training facilities.
  • Portsmouth Ship Maintenance: Provides $26 million for a ship maintenance shop in Portsmouth, Virginia. 

Both Senators advocated for these projects, and more, when the Fiscal Year 2019 National Defense Authorization Act passed the Senate.

Veterans Affairs: Provides $86.4 billion in funding for the V-A, an increase of $5 billion above fiscal year 2018. The bill would increase funding to several Veteran Health Administration priority areas, including $800 million for electronic health record modernization and $8.6 billion to increase mental health services for veterans. It includes $1.9 billion for homelessness programs like the Supportive Services for Veterans and Families program, which provides assistance to homeless veterans; $196 million to hire V-A mental health providers and increase suicide prevention outreach; $78 billion to help provide high-quality and timely health care services to veterans; $174 million to improve the veteran appeals process; and more than doubles FY18 funds to provide $1.8 billion for the construction of new V-A medical facilities.

Jefferson Lab Nuclear Physics Research: Provides $710 million for nuclear physics research within the Department of Energy’s Office of Science in order to fulfill DOE’s Long Range Plan for Nuclear Science. The funds will enable scientists at labs across the country, including at Jefferson National Accelerator Facility in Newport News, VA, to engage in critical research that will maintain U.S. leadership and preeminence in this field.

Hampton Roads Infrastructure: 

  • Army Corps of Engineers Civil Works Projects: Provides $2.3 billion for construction of water infrastructure projects and $3.8 billion for operations and maintenance of existing infrastructure related to harbor maintenance, flood and storm damage control, and aquatic ecosystem restoration. Total funding for the Corps of Engineers is $100 million above the FY2018 enacted level and $2.1 billion above the President’s budget request. 
  • Donor and Energy Transfer Ports: Provides $50 million to ensure that ports like the Port of Virginia receive equitable levels of funding to reinvest in and modernize their infrastructure.
  • North Landing Bridge: Provides $1.6 million for the Army Corps of Engineers to continue studying the feasibility of replacing the federally-owned North Landing Bridge, which connects Chesapeake, VA, and Virginia Beach, VA. Two years ago, Warner and Kaine were instrumental in securing federal funding to replace a similar Army Corps asset, the Deep Creek Bridge, which was a safety hazard and regional traffic bottleneck.
  • Norfolk Harbor: Includes $300,000 to conclude the study phase of – and advance to construction – the deepening and widening of navigation channels in Norfolk Harbor and tributaries, which will allow the largest deep-draft container ships to call on the Port of Virginia. This project, in concert with the expansion and new marine terminal at the Craney Island Dredged Material Management Area (CIDMMA), will be a generational investment in the infrastructure and economic competitiveness of the Port of Virginia.

 

Other Virginia Water Infrastructure:

  •  Hydroelectric Licenses: Extends authorization for hydroelectric projects at John W. Flannagan Dam in Dickenson County, VA, and Gathright Dam in Alleghany County, VA.

 

###

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), co-chair of the bipartisan Senate India Caucus and Vice Chairman of the Senate Intelligence Committee, led a meeting with U.S. Defense Secretary James Mattis attended by U.S. Senators and Representatives to discuss the future of U.S.-India defense cooperation.

The event, co-hosted by India Caucus co-chair Sen. John Cornyn (R-TX), was held in the U.S. Capitol to discuss the strategic importance of India in the Indo-Pacific region. The Senators stressed the need to enhance bilateral cooperation between the two nations given their shared national security interests, with the goal of increasing security and stability in Asia and globally. Secretary Mattis highlighted the growing nature of U.S.-India defense cooperation, specifically the Department of Defense (DoD) efforts to increase military-to-military cooperation, information-sharing, and defense trade with a major defense partner.

“A closer partnership with India, based on shared national interests and democratic values, should remain a strategic imperative for the United States. This is particularly important as we see the rise of authoritarian regimes around the world,” said Sen. Warner. “The United States should continue to pursue closer defense cooperation with India, increasing technology transfers, defense sales, joint military exercises and increased military cooperation on shared national security missions and priorities.” 

Sens. Warner and Cornyn included language in the 2018 National Defense Authorization Act (NDAA) that required DoD to codify the definition of Major Defense Partner and to develop a defense strategy with India. Most recently, both Senators introduced an amendment to the FY19 NDAA that failed which would have supported India’s membership in the Asia-Pacific Economic Cooperation Forum (APEC). 

The event preceded Secretary Mattis’ planned meeting in India with the Indian Ministers of Defense & Foreign Affairs on July 6th.

###

WASHINGTON – Today U.S. Sen. Mark R. Warner (D-VA) released a statement after Congress approved the Fiscal Year 2019 National Defense Authorization Act (NDAA):

 “I’m glad that the Senate was able to work in a bipartisan way to improve national security, support our service members, and strengthen defense readiness.  

“Since the Administration has failed to listen to warnings from their own top intelligence officials about the dangers posed by Chinese telecom company ZTE, this legislation includes a bipartisan amendment – which I co-sponsored – to automatically reinstate trade restrictions on ZTE once this bill is signed into law. Importantly, this legislation would also ensure that neither ZTE nor Huawei will be eligible for government contracts in the future. To further prioritize our national security, I also supported the inclusion of a bipartisan CFIUS bill similar to what we passed in the Banking Committee to ensure that foreign investments in the U.S. do not pose a national security risk. I strongly encourage the Administration to consider the strong bipartisan support for these measures in the Senate before taking any hasty actions. Additionally, this bill urges the Secretaries of State and Defense to dedicate all necessary resources to complete its strategy to counter and deter future cyber aggression by Russia.”  

“This bill also funds several critical priorities important to Virginia’s shipbuilding footprint, including the procurement of two Virginia-class submarines. In addition, this bill pushes further action to make long-overdue investments in our nation’s public shipyards, authorizes more than $260 million towards 14 military construction projects across the Commonwealth, and includes a 2.6 percent raise for members of the armed forces. The NDAA also includes important reforms to modernize our antiquated security clearance system and to reduce the 700,000 person background investigation backlog. Although this bill is far from perfect, I commend my colleagues for passing this critical defense package,” said Sen. Warner.  

Included in the NDAA are three provisions championed by Sen. Warner to address the security clearance backlog:

  • A provision requiring the Director of National Intelligence to improve information sharing regarding government and contract employees;
  • A provision requiring the Director of National Intelligence to provide a report on a clearance-in-person concept to accommodate a more modern mobile workforce;
  • And a provision creating a “rocket” clearance for mission-critical positions that can be processed in 15 days for SECRET and 45 days for TOP SECRET.

In addition, the bill includes a bipartisan amendment sponsored by Sen. Warner and Sen. Marco Rubio (R-FL) that would improve access to cybersecurity scholarships for students at minority-serving institutions. With mounting demand across every industry for trained cyber workers, it’s particularly important that we invest now in developing a diverse cyber workforce. 

Added Sen. Warner, “In order to address the nation’s increased cyber threats from foreign adversaries, this amendment will ensure the nation that the U.S. builds a strong and diverse pipeline of future talent to lead the nation’s strategy in the field of cybersecurity.” 

“Norfolk State University is pleased to support this bipartisan proposal to recruit a more diverse pool of students to pursue cyber education,” said Dr. Melvin T. Stith, Interim President of Norfolk State University. “Strong cyber training and knowledge is essential for preparing students to compete and thrive in a 21st century economy. This effort by Senator Warner is a welcome boost to Norfolk State University's ongoing efforts to produce a talented and representative cyber workforce.” 

The amendment is similar to provision offered by Rep. Pete Aguilar (D-CA) that was included in the House-passed version of the NDAA. The text of the amendment can be found here.

 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance committees, issued the below statement regarding the Trump Administration’s  announcement that it will impose tariffs on $50 billion worth of Chinese technology imports in response to China’s theft of intellectual property, the forced transfer of American technology, and cyber attacks:

“I share the President’s concerns about China. For years, Chinese companies pushed and enabled by the Chinese government have cheated American workers and stolen valuable intellectual property from U.S businesses with few repercussions. While we simply cannot let China’s unfair trade practices go unchecked, this President’s erratic approach to resolving this issue gives me pause. His Administration’s friendliness toward ZTE, in spite of warnings from his own top intelligence officials that the telecom company poses a national security threat, is particularly concerning. Instead of taking steps that antagonize our allies and threaten the well-being of Virginia’s agricultural community, the President should focus on building international support to apply greater pressure on Beijing and end these unfair trade practices once and for all.”

 

###

WASHINGTON - U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, has filed several amendments to the FY19 National Defense Authorization Act (NDAA) that will benefit the nation’s overall defense strategy by strengthening our cybersecurity practices and streamlining the security clearance process. 

One of Sen. Warner’s amendments would require the United States to amend the U.S. cyber-doctrine, establishing that the U.S. will respond accordingly should a foreign adversary launch a cyber-attack in order to undermine our elections. Sen. Warner also filed a similar amendment to the NDAA last year. Additional amendments would address the 700,000-person background investigation backlog and modernize an antiquated security clearance system. Suggested provisions include requiring the implementation of specific goals to reduce the backlog, and bringing transparency to the true costs associated with the clearance process. In addition, he has introduced an amendment to provide a fix for federal employees who have, following passage of the GOP’s tax bill last year, been subject to additional taxes after moving for work. 

“The sophisticated cyber effort by Russia during the 2016 presidential election made clear just how unprepared we are as a nation to address cyber threats posed by foreign adversaries. That is why I have offered an amendment that would require a direct response by the U.S. should a foreign adversary attempt to intervene and undermine the integrity of local, state, or federal elections,” said Sen. Warner. “In addition, I have also offered much-needed fixes to streamline and modernize our outdated security clearance process, and address a tax code that leaves many federal workers on the hook for costs associated with relocating for work. I look forward to working with my colleagues to ensure we provide the proper resources and support our military needs in this year’s defense budget.”

 

Text of Sen. Warner’s amendments is available here

 

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WASHINGTON –U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, today sent letters to Twitter and Google parent company Alphabet, requesting information about any data sharing agreements between the companies and Chinese vendors. The letter follows a disclosure earlier this week by Facebook that the company has partnerships with Chinese telecom companies including Huawei that allow them to access Facebook users’ non-public data. 

“Since at least October 2012, when the House Permanent Select Committee on Intelligence released its widely-publicized report, the relationship between the Chinese Communist Party and equipment makers like Huawei and ZTE has been an area of national security concern. Since then, numerous articles in the tech trade press have focused on concerns by American and allied intelligence agencies that products from Chinese device makers, such as Lenovo, have security vulnerabilities that could allow Chinese intelligence to access data stored on, or transmitted by, devices.  And the New York Times reported in 2016 that firmware found in low-end smartphone devices, such as those of Huawei and ZTE, continually transmitted local data to Chinese severs, potentially for foreign intelligence purposes,” Sen. Warner wrote to the two companies today. 

It is publicly known that Alphabet has entered into strategic partnerships with Chinese mobile device manufacturers, including Huawei and Xiaomi, as well as with Chinese technology platform Tencent. In light of Facebook’s recent revelations, Sen. Warner requested that the company provide information about those partnerships, as well as any other agreements that Alphabet may have entered into with third-party vendors based in China. A similar request was posed to Twitter. 

Sen. Warner’s letter to Alphabet CEO Larry Page is available here. His letter to Twitter CEO Jack Dorsey is available here.  

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, released the following statement regarding the Commerce Department’s agreement with ZTE:

“It is the unanimous conclusion of our nation’s intelligence community that ZTE poses a significant threat to our national security. These concerns aren’t new; back in 2012, the House Permanent Select Committee on Intelligence released a report on the serious counterintelligence concerns associated with ZTE equipment. 

“It’s not only that ZTE was busted for evading sanctions on Iran and North Korea, and then lied about it; It’s that ZTE is a state-controlled telecommunications company that poses significant espionage risks, which this agreement appears to do little to address.” 

 

###

 

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, released the following statement after Facebook confirmed the company has data-sharing partnerships with Chinese telecom companies, including Huawei:

“Concerns about Huawei aren’t new – they were widely publicized beginning in 2012, when the House Permanent Select Committee on Intelligence released a well-read report on the close relationships between the Chinese Communist Party and equipment makers like Huawei. The news that Facebook provided privileged access to Facebook’s API to Chinese device makers like Huawei and TCL raises legitimate concerns, and I look forward to learning more about how Facebook ensured that information about their users was not sent to Chinese servers.” 

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, along with Senate Foreign Relations Committee Chairman Bob Corker (R-TN) and Sens. Heidi Heitkamp (D-ND), Pat Toomey (R-PA), Lamar Alexander (R-TN), Brian Schatz (D-HI), Ron Johnson (R-WI), Chris Van Hollen (D-MD), Mike Lee (R-UT), and Jeff Flake (R-AZ), introduced bipartisan legislation that would require the White House to seek Congressional approval before issuing tariffs designated in the interest of national security. This authority was originally granted to the President by Congress under Section 232 of the Trade Expansion Act of 1962 and is a tool that has only rarely been used to restrict foreign imports. 

President Trump has used this provision to impose steel and aluminum tariffs that target imports from some of the United States’ closest allies like Mexico, Canada, and the European Union. As a result, businesses that make products containing these materials, such as Virginia craft beer producers, expect to see increased production costs that will likely mean higher prices for Virginia consumers. In addition, some of these countries have announced they plan to impose retaliatory tariffs on key Virginia agricultural exports. This week, Mexico announced it will be placing a 20 percent tariff on pork imports, a step that will directly hurt Virginia farmers who exported roughly $68 million in pork to that country last year.  

“While I believe that we should hold China accountable for unfair trade practices and I support strong trade enforcement rules that protect American workers, the President should not be relying on an obscure provision of a trade law intended to uphold national security in order to impose tariffs on our allies. Instead, he should focus on building international coalitions to hold bad actors accountable and protect American workers,” said Sen. Warner.

“While we all agree on the need to ensure the international trade system is fair for American workers, companies and consumers, unfortunately, the administration is abusing the Section 232 authority delegated to the president by Congress,” said Sen. Corker. “Making claims regarding national security to justify what is inherently an economic question not only harms the very people we all want to help and impairs relations with our allies but also could invite our competitors to retaliate. If the president truly believes invoking Section 232 is necessary to protect the United States from a genuine threat, he should make the case to Congress and to the American people and do the hard work necessary to secure congressional approval.”

The bill requires the president to submit to Congress any proposal to adjust imports in the interest of national security under Section 232. For a 60-day period following submission, legislation to approve the proposal will qualify for expedited consideration, guaranteeing the opportunity for debate and a vote. The requirement would apply to all Section 232 actions moving forward, as well as those taken within the past two years.

Sen. Warner, along with Sen. Kaine, has previously raised concerns about how President Trump’s trade war could hurt Virginia businesses and employees, listing the set of products grown and made in Virginia that have been targeted by the Chinese for duties. Both Senators also wrote to the Administration warning that withdrawing from the North America Free Trade Agreement (NAFTA)—another significant source of agricultural exports for Virginia—would negatively impact Virginia’s agricultural industry.

A copy of the legislation can be found here.

 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking Committee, released the following statement regarding the reported ZTE agreement lifting the Commerce Department ban:

 “If these reports are accurate, this is a huge mistake. ZTE poses a threat to our national security. That’s not just my opinion – it’s the unanimous conclusion of our intelligence community.”

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, joined top Senate Democrats in sending a letter to President Trump outlining conditions for lifting sanctions as part of any deal with North Korea. The new letter comes ahead of the expected summit between President Trump and North Korean leader Kim Jong-un to discuss North Korea’s nuclear weapons program, and specifically lists five principles through which the Senators plan to evaluate any deal the President makes with North Korea. The Senators also say that Congress must act as a check on any agreement that does not live up to these principles by imposing tougher sanctions and oversight and the Trump administration must engage Congress throughout any diplomatic process – both before and after the possible summit - given the magnitude of this effort.

In order to earn the support of these Senate leaders for any deal that provides sanctions relief to North Korea, Sen. Warner and others specifically outlined in the letter to President Trump that a deal with North Korea must:  

  1. Dismantle or remove every single one of North Korea’s nuclear, chemical, and biological weapons; 
  1. End the production and enrichment of uranium and plutonium for military purposes, and permanently dismantle North Korea’s nuclear weapons infrastructure. This includes the destruction of test sites, all nuclear weapons research and development facilities and enrichment facilities;
  1. Suspend all of North Korea’s ballistic missile tests and disable, dismantle and eliminate all of North Korea’s ballistic missiles and programs.  
  1. Commit to robust compliance inspections including a verification regime for North Korea’s nuclear and ballistic missile programs. Inspections must have complete access to all nuclear related sites and facilities with real time verification of North Korean compliance.  A separate compliance regime for its chemical and biological weapons that prevents, detects and punishes cheating on the part of North Korea is also necessary.  These compliance regimes must include “anywhere, anytime” inspections and snap-back sanctions if North Korea is not in full compliance;  
  1. Be permanent, without any sunsets.

In addition to Sen. Warner, the letter was signed by Senate Democratic Leader Chuck Schumer, Senate Foreign Relations Committee Ranking Member Bob Menendez, Assistant Senate Democratic Leader and Senate Committee on Appropriations Subcommittee on Defense Ranking Member Dick Durbin, Senate National Security Working Group Co-Chair Dianne Feinstein, Senate Appropriations Committee Vice-Chair and Senate Appropriations Subcommittee on State, Foreign Operations, and Related Programs Ranking Member Patrick Leahy, and Senate Committee on Banking Housing and Urban Affairs Ranking Member Sherrod Brown. 

The full text of the letter appears below.

 

The Honorable Donald J. Trump

President of the United States

The White House

1600 Pennsylvania Avenue, NW

Washington, DC  20500

 

Dear Mr. President: 

 

As you prepare for your June 12 meeting with Kim Jong Un, we write to express our desire for a diplomatic solution which provides for the complete dismantlement of North Korea’s nuclear and missile programs, as well as a broader process to address North Korea’s extensive military arsenal and to set the conditions for peace and stability on the Korean Peninsula.  A successful diplomatic agreement with North Korea, along with our allies South Korea and Japan and in cooperation with China, would represent an historic accomplishment for our nation.

 

It is widely recognized that North Korea has been seeking to develop the ability to launch a nuclear attack against the United States and Kim Jong Un has threatened to do so. In his May 24 testimony before the Senate Foreign Relations Committee, Secretary Pompeo stated that the goal of the administration’s policy is that “we are looking for the complete dismantlement of their weapon systems, the delivery capability associated with that, and all of the elements of their program that would lead them to have material that could be used at some time to build out a weapon system.” 

 

In order to achieve the goal of the complete, verifiable, and irreversible dismantlement of North Korea’s nuclear weapons and key missile programs, and as you develop your administration’s policy and strategy in advance of your on-again, off-again, and now seemingly on-again meeting with Kim Jong Un in Singapore, we therefore urge you to consider the following principles and goals for U.S. diplomacy and policy with regards to North Korea.

 

First, any agreement with North Korea must build on the current nuclear test suspension and ultimately include the dismantlement and removal of all nuclear, chemical, and biological weapons from North Korea.  Sanctions relief by the U.S. and our allies should be dependent on dismantlement and removal of North Korea’s nuclear weapons and ballistic missile programs.  Any deal that explicitly or implicitly gives North Korea sanctions relief for anything other than the verifiable performance of its obligations to dismantle its nuclear and missile arsenal is a bad deal.

 

China, we believe, will continue to play a critical role if North Korea moves to halt, dismantle, and remove its nuclear weapons, and we urge you to maintain a tough approach to China to assure that it, in turn, will do all it can to help secure an agreement and then insist on strict North Korean compliance with such an agreement.

 

Second, our goal must be the full, complete and verifiable denuclearization of North Korea. This must include the removal of all nuclear weapons and military-related fissile material from North Korea; ending the production and enrichment of uranium and plutonium for military programs; and permanently dismantling its nuclear weapons infrastructure, including test sites, all nuclear weapons research and development facilities, particularly with respect to advanced centrifuges, and nuclear weapons enrichment and reprocessing facilities.  North Korea must also put forward a full, complete and verifiable declaration of all its nuclear activities. Robust restrictions should also be in place to assure that nuclear material, technology, and expertise are not exported, and that North Korea will be unable to attempt to reverse course.

 

Third, North Korea must continue its current ballistic missile tests suspension, including any space launch. Ultimately, since North Korea’s nuclear weapons program is so advanced, any agreement must include the dismantlement of ballistic missiles and a prohibition on all ballistic missile development. In addition, sufficient safeguards must be in place to assure that no ballistic missiles and associated technology are proliferated or exported.   

 

Fourth, North Korea must commit to robust compliance inspections including a verification regime for its nuclear and ballistic missile programs.  Inspectors must have complete access to all nuclear-related sites and facilities with real time verification of North Korean compliance.  A separate compliance regime for its chemical and biological weapons programs that prevents, detects and punishes cheating on the part of North Korea is also necessary.  These compliance regimes must include “anywhere, anytime” inspections, including of all non-declared suspicious sites, and snap-back sanctions if North Korea is not in full compliance.

 

Finally, to be truly complete, verifiable and irreversible, any agreement with North Korea must be permanent in nature.

 

To be successful in such an ambitious undertaking, our regional allies – in particular the Republic of Korea and Japan – are indispensable to our success.  No concessions should be granted that could undermine our core alliance commitments or our posture in the region. 

 

We likewise believe, given the complexity of this effort, that the Administration should engage Congress throughout any diplomatic process. To ensure that Congress remains fully informed as negotiations proceed, we would therefore like to work with you and your administration to establish a process for regular and substantive briefings, including classified briefings, on U.S. policy and strategy both prior to your meeting with Kim Jong Un as well as regular briefings thereafter, including full engagement with the Senate Foreign Relations Committee and the National Security Working Group.  Should your administration develop any agreements requiring Senate consideration we of course look forward to working with you to assure appropriate review and disposition in Congress.

 

Meeting the challenge of North Korea’s nuclear and missile programs, building peace and stability on the Korean Peninsula, and addressing other critical matters, including North Korea’s human rights practices, are issues of longstanding concern to the American people as well as our allies and partners. We believe that Congress therefore has an important role to play in working with the administration to support your efforts and to shape U.S. policy toward North Korea.  However, we also believe that Congress must act as a check on any agreement that does not live up to these principles by imposing tougher sanctions and oversight. Democrats will look to the standards outlined in this letter as we examine whether North Korea should be granted sanctions relief.

 

We look forward to your thoughts both on the substance of policy and the principles we have outlined, as well as on how to best proceed with establishing a regular and substantive process for congressional engagement and consultation with your administration on these issues.  We look forward to working alongside you in the weeks and months ahead in pursuit of an agreement that effectively addresses the threat of a nuclear-armed North Korea in a manner that enhances the security of the United States, our allies, and the world.

 

Sincerely,

Robert Menendez

United States Senator

 

Charles E. Schumer

United States Senator

 

Richard J. Durbin

United States Senator

 

Mark R. Warner

United States Senator

 

Dianne Feinstein

United States Senator

 

Patrick Leahy

United States Senator

 

Sherrod Brown

United States Senator                        

 

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WASHINGTON — U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and a member of the Senate Banking and Finance Committees, released the following statement regarding the Trump administration’s deal on ZTE:

“This would be a big mistake. President Trump should listen to the advice of his intelligence leaders, who have unanimously said that ZTE poses a national security threat to the United States.” 

 

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) joined a group of bipartisan Senators in sending a letter to the Secretary of the Treasury Steve Mnuchin, the Secretary of Commerce Wilbur Ross, and the U.S. Trade Representative Robert Lighthizer, urging the Administration to protect national security interests when negotiating the U.S.-China trade relationship. This comes after President Trump has publicly pledged to lift a seven-year ban on American firms doing business with Chinese telecom company ZTE.

“There can be no question that China seeks to surpass the U.S. both economically and militarily and become the world’s foremost superpower, and neither the Federal Government nor private U.S. companies should aid and abet that effort,” the Senators wrote.  “As such, we implore you to reject any proposal to soften restrictions on the transfer to China of U.S.-made military technologies and advanced dual-use technologies, including semiconductors." 

“We urge you not to compromise lawful U.S. enforcement actions against serial and pre-meditated violators of U.S. law, such as ZTE.  This is particularly critical when the violators are state-owned and -influenced, part and parcel of China’s policies and practices designed to strengthen its own national security innovation base, and essential tools of efforts to spread China’s influence in other countries that pose national security threats to the United States. Export control and sanctions laws should not be negotiable, because fidelity to the rule of law is a key part of what distinguishes the U.S. from a country like China that is ruled by a Communist dictatorship,” the Senators concluded.

As the Vice Chairman of the Senate Select Committee on Intelligence, Sen. Warner has publicly voiced his concern that rolling back trade restrictions on Chinese telecom company ZTE would pose significant national security risks to the United States. Last week, Sen. Warner joined a group of 34 Senators urging President Trump not reverse trade restrictions on ZTE. 

In addition to Sen. Warner, the letter was signed by Sens. Chuck Schumer (D-NY), John Cornyn (R-TX), Dianne Feinstein (D-CA), Marco Rubio (R-FL), Martin Heinrich (D-NM), Steve Daines (R-MT), Susan Collins (R-ME), Mike Rounds (R-SD), John Thune (R-SD), Sherrod Brown (D-OH), Johnny Isakson (R-GA), Roy Blunt (R-MO), Bob Casey (D-PA), Bill Cassidy (R-LA), Ted Cruz (R-TX), Ben Sasse (R-NE), Joe Manchin (D-WV), Chuck Grassley (R-IA), Jack Reed (D-RI), Bill Nelson (D-FL), David Perdue (R-GA), Debbie Stabenow (D-MI), Ron Wyden (D-OR), Tom Cotton (R-AR), Kamala Harris (D-CA), and Angus King (I-ME)

 

Full text of the letter can be found below.

 

The Honorable Steven Mnuchin        

Secretary of the Treasury             

U.S. Department of the Treasury   

1500 Pennsylvania Ave., NW     

Washington, DC  20220              

 

The Honorable Wilbur Ross

Secretary of Commerce              

U.S. Department of Commerce

1401 Constitution Ave., NW     

Washington, DC  20230             

 

The Honorable Robert E. Lighthizer

U.S. Trade Representative

Office of the U.S. Trade Representative

600 17th St., NW        

Washington, DC 20508

 

Dear Secretary Mnuchin, Secretary Ross, and Ambassador Lighthizer:

 

As you work to secure a fair and equitable trading and investment relationship with China for the American people, we write to express serious concerns over reports that China, in the ongoing negotiations, is pushing for access to U.S.-made military technologies and advanced dual-use technologies.  We strongly support these critical negotiations to rebalance the U.S.-China economic relationship, but U.S. national security must remain the paramount consideration.  Therefore, we strongly urge you to reject any proposal by China to loosen existing restrictions on the export or other transfer of these sensitive U.S. technologies.  Any such move would bolster China’s aggressive military modernization and significantly undermine long-term U.S. national security interests.  

 

We agree with General Joe Dunford, Chairman of the Joint Chiefs of Staff, that within seven years, China will pose the greatest threat to U.S. national security of any nation.  Likewise, we concur with the Department of Defense’s most recent report on “Military and Security Developments Involving the People’s Republic of China,” which states that “China’s military modernization is targeting capabilities with the potential to degrade core U.S. military-technological advantages.  To support this modernization, China uses a variety of methods to acquire foreign military and dual-use technologies . . . .  Several cases emerged in 2016 of China using its intelligence services, and employing other illicit approaches that violate U.S. laws and export controls, to obtain national security and export-restricted technologies, controlled equipment, and other materials.” 

 

Clearly, the Chinese Communist Party regards these sensitive technologies as essential for China’s military modernization and is accelerating its efforts to acquire such technologies through both legal and illegal means, including cyber theft, civil-military integration policies, coercion through joint ventures with foreign companies, targeted investment, and exploitation of the access of private Chinese nationals to such technologies.  We must guard against such efforts and remain vigilant in protecting our national security innovation base. 

 

As you know, export controls are designed to protect national security.  The relaxing of these or other technology transfer restrictions would directly contradict and undermine key parts of President Trump’s 2017 National Security Strategy (NSS).  The NSS states that, “China and Russia . . . are fielding military capabilities designed to deny America access in times of crisis and to contest our ability to operate freely in critical commercial zones during peacetime.  In short, they are contesting our geopolitical advantages and trying to change the international order in their favor.”

 

There can be no question that China seeks to surpass the U.S. both economically and militarily and become the world’s foremost superpower, and neither the Federal Government nor private U.S. companies should aid and abet that effort.  As such, we implore you to reject any proposal to soften restrictions on the transfer to China of U.S.-made military technologies and advanced dual-use technologies, including semiconductors.  We do support a balanced and constructive relationship with China, but one that is clear-eyed about China’s predatory, comprehensive efforts to acquire sensitive technologies that would increase the risk China poses to the United States and our allies in the Indo-Pacific region and elsewhere.  

 

In addition, we urge you not to compromise lawful U.S. enforcement actions against serial and pre-meditated violators of U.S. law, such as ZTE.  This is particularly critical when the violators are state-owned and -influenced, part and parcel of China’s policies and practices designed to strengthen its own national security innovation base, and essential tools of efforts to spread China’s influence in other countries that pose national security threats to the United States.  Export control and sanctions laws should not be negotiable, because fidelity to the rule of law is a key part of what distinguishes the U.S. from a country like China that is ruled by a Communist dictatorship. 

 

Thank you for your attention to these concerns. 

 

Sincerely,

 

 

CC:  The Honorable James N. Mattis, Secretary of Defense

        The Honorable Mike Pompeo, Secretary of State

         The Honorable John Bolton, Assistant to the President for National Security Affairs

 

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WASHINGTON – U.S. Senators Bob Menendez (D-N.J.), Ranking Member of the Senate Foreign Relations Committee, Mark Warner (D-Va.), Vice Chairman of the Senate Select Committee on Intelligence, and Sherrod Brown (D-Ohio.), Ranking Member of the Senate Banking Committee, today requested three separate Inspector Generals open up probes into the Trump Administration’s failure to fully impose legally mandated sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA). 

In a letter addressed to the Inspector Generals of the U.S. Department of State and Broadcasting Board of Governors, U.S. Department of the Treasury, and the Intelligence Community, the senators listed a series of instances where the Trump administration’s mixed signals or inaction have resulted in flouting seven mandatory CAATSA provisions, despite clear evidence of sanctionable activity.

“In light of these apparent violations and the lack of corresponding sanctions, we are concerned about whether the sanctions implementation process within the administration is fulfilling CAATSA’s mandate and intent,” wrote the senators. “Likewise, it seems clear that several weeks ago the administration had identified specific Russian entities that had played a role in supplying or otherwise supporting the government of Syria’s chemical weapons program, had prepared a list of such entities for sanctions designation, and Ambassador Nikki Haley publicly announced their imminent designation -- but then did not designate them, reportedly at the direction of the President.” 

It has been ten months since Congress overwhelmingly passed CAATSA’s wide-ranging mandatory sanctions measures to hold Russia accountable for their destabilizing activities against our country and nations around the world. 

 

A copy of the letter can be found here and below.

 

May 19, 2018

 

Mr. Steve A. Linick

Inspector General, U.S. Department of State and Broadcasting Board of Governors

U.S. Department of State

Office of Inspector General

1700 North Moore Street

Arlington, VA  22209

 

Mr. Eric M. Thorson

Inspector General, U.S. Department of the Treasury

Office of Inspector General

1500 Pennsylvania Avenue, N.W.

Washington, D.C.  20220

 

Mr. Wayne A. Stone

Acting Inspector General of the Intelligence Community

Office of the Inspector General of the Intelligence Community

Investigations Division

Washington, D.C.  20511

 

 Dear Inspectors General Linick, Thorson, and Stone:

 

We are writing to request that you conduct a review of your respective department’s/community’s role in implementing the Countering America’s Adversaries Through Sanctions law (CAATSA), signed by President Trump on August 2, 2017.  

 

Several mandatory provisions of the law have not been implemented by the administration, despite strong evidence that actions taken by or on behalf of the Russian government are in violation of the CAATSA sanctions law and applicable executive orders codified by CAATSA.  For example, the U.S. government released a joint statement on April 16, 2018 with British authorities that accused Russian government-backed hackers of conducting cyber attacks in other countries, including the U.S., which should trigger sanctions under Section 224 of CAATSA. Yet the administration has not imposed any such sanctions in response, nor has it issued waivers under this provision.  

 

Likewise, it seems clear that several weeks ago the administration had identified specific Russian entities that had played a role in supplying or otherwise supporting the government of Syria’s chemical weapons program, had prepared a list of such entities for sanctions designation, and Ambassador Nikki Haley publicly announced their imminent designation -- but then the administration did not designate them, reportedly at the direction of the President.  This raises obvious questions about the provision of Russian technology or support to Syria in violation of Section 234 of the law.

 

Overall, CAATSA includes seven mandatory provisions (Sections 224, 225, 226, 228, 231, 233 and 234) which we believe merit further examination.    We also remain concerned that the administration has not formally determined whether individuals are conducting significant transactions with the Russian defense and intelligence sectors under Section 231.   Without such determinations, it is impossible to ascertain whether individuals are substantially reducing significant transactions with these entities as outlined in the law.

 

In light of these apparent violations and the lack of corresponding sanctions actions, we are concerned about whether the sanctions implementation process within the administration is fulfilling CAATSA’s mandate and intent.  In general, with respect to mandatory measures, the President is required to make determinations in the event that he has established that sanctionable behavior has taken place, and then either impose sanctions or exercise a waiver.  We understand that only one determination, with respect to Section 224, has been made under new congressionally-mandated CAATSA sanctions since the law went into effect last August. 

 

As part of your respective reviews, we request that you address the following issues and make any necessary recommendations for improvement:

 

1.      Why have mandatory provisions of the law not been implemented, despite clear evidence of sanctions violations?

2.      What are the internal processes by which your respective agencies have contributed to the creation of Russia sanctions designation packages when CAATSA or applicable executive orders are violated?

3.      How has interagency coordination taken place with respect to CAATSA implementation, or other provisions of law or executive orders related to Russia, and is the inter-agency review process working as it should? 

4.      Are there obstacles in the inter-agency review process of which Congress should be made aware, as administration officials consider imposing additional sanctions on Russian actors consistent with current law?

 

Thank you for your consideration of our request.

 

Sincerely,

 

 

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WASHINGTON — U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence and co-founder of the Senate Cybersecurity Caucus, released the following statement after the White House eliminated the role of Cybersecurity Coordinator on the National Security Council, a position created to harmonize the federal government’s approach to cybersecurity and digital warfare:  

“It’s frankly mindboggling that the Trump Administration has eliminated the top White House official responsible for a whole-of-government cyber strategy, at a time when the cyber threat to our nation is greater than ever. Our adversaries are investing heavily in 21st century cyber warfare capabilities, and if we only view national security through a conventional 20th century lens, we’re going to find ourselves unable to respond to increasingly asymmetric cyber threats down the road.”
 

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