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,

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WASHINGTON – Today, Senate Select Committee on Intelligence Chairman Richard Burr (R-NC) and Vice Chairman Mark Warner (D-VA) released the Committee’s unclassified summary of its initial findings on the Intelligence Community Assessment (ICA) on Russian activities in the 2016 U.S. elections. The Committee finds that the overall judgments issued in the ICA were well-supported and the tradecraft was strong. The course of the Committee’s investigation has shown that the Russian cyber operations were more extensive than the hack of the Democratic National Committee and continued well through the 2016 election.  

“The Committee has spent the last 16 months reviewing the sources, tradecraft and analytic work underpinning the Intelligence Community Assessment and sees no reason to dispute the conclusions,” said Chairman Burr. “The Committee continues its investigation and I am hopeful that this installment of the Committee’s work will soon be followed by additional summaries providing the American people with clarity around Russia’s activities regarding U.S. elections.”  

“Our investigation thoroughly reviewed all aspects of the January 2017 ICA, which assessed that Russian President Vladimir Putin ordered an influence campaign to target our presidential election and to destabilize our democratic institutions,” said Vice Chairman Warner. “As numerous intelligence and national security officials in the Trump administration have since unanimously re-affirmed, the ICA findings were accurate and on point.  The Russian effort was extensive and sophisticated, and its goals were to undermine public faith in the democratic process, to hurt Secretary Clinton and to help Donald Trump.  While our investigation remains ongoing, we have to learn from 2016 and do more to protect ourselves from attacks in 2018 and beyond.”

The summary is the second unclassified installment in the Committee’s report on Russian election activities.  

The Committee held a closed door hearing in May to review the ICA on “Assessing Russian Activities and Intentions in Recent U.S. Elections.” Members heard testimony from former Director of National Intelligence James Clapper, former Director of the Central Intelligence Agency John Brennan and former Director of the National Security Agency Mike Rogers, which informed the Committee’s report. 

You can read a copy of the unclassified summary here.

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WASHINGTON – Today, Senate Select Committee on Intelligence Chairman Richard Burr (R-NC) and Vice Chairman Mark Warner (D-VA) announced the Committee approved the Matthew Young Pollard Intelligence Authorization Act (IAA) for Fiscal Years 2018 and 2019 by a unanimous bipartisan vote of 15-0. The bill authorizes funding, provides appropriate legal authorities and enhances Congressional oversight for the U.S. Intelligence Community. It is named after Matt Pollard, a dedicated Committee staffer who passed away in April.

“The 2019 Intelligence Authorization Act represents a bipartisan effort to enhance America’s national security and increase government efficiency,” saidChairman Burr. “With ever-increasing threats from China, Russia, Iran and North Korea, we recognize that the Intelligence Community (IC) must have the resources, authorities and personnel necessary to keep America safe, while still remaining accountable to Congress for their efforts and expenditures. New security clearance reforms included in this bill will help deter insider threats, protect classified information and ensure the IC has a capable, agile workforce. Lastly, in the wake of foreign efforts to interfere with the 2016 U.S. elections, which this Committee continues to investigate, I am pleased to see this bill contains comprehensive measures to enhance our election security. It is vital that we ensure our voting process remains fair and free from undue influence.” 

“It is important that the full Senate take up and pass this bipartisan legislation, so that the men and women of the Intelligence Community (IC) have the resources they need to do their jobs and keep us safe,” said Vice Chairman Warner. “This legislation includes a number of important provisions to modernize our antiquated security clearance process and reduce the 700,000-person security clearance backlog. It also includes my provision requiring the Director of National Intelligence to report on the IC’s outreach to U.S. businesses and other nongovernment entities on efforts by adversaries such as China to acquire technology, intellectual property and R&D. The bill continues initiatives this Committee has undertaken on a bipartisan basis to push the IC to foster innovation in its approach to overhead satellite systems. Finally, as we approach the 2018 elections, the bill includes important measures to protect U.S. federal and state election systems – including from Russian threats – and to improve information sharing with states to ensure the integrity of the election process.”

Background:

The 2019 IAA includes provisions that will help:

• Deter and counter aggression from foreign state actors, such as Russia and China, both at home and abroad;
• Protect the U.S. government’s supply chain from sabotage and counterintelligence threats;
• Improve our security clearance process to make the Intelligence Community more robust, skilled, and agile;
• Institute reforms for science, technology, engineering or mathematic (STEM) recruitment and retention in Intelligence Community positions, such as cybersecurity experts; and
• Enhance election security to protect our voting process from foreign intelligence threats and efforts to influence the election process.

In May 2018, the Committee released the first installment in its Russia report, which provided recommendations to improve U.S. election security in the face of interference from foreign actors. Among the Committee’s recommendations to address ongoing vulnerabilities were creating effective deterrence, improving information sharing on threats and securing election-related systems. A summary of the Committee’s findings can be found here.

Last week, the Committee held a hearing to examine the policy response to Russian interference in the 2016 U.S. elections. Michael Daniel, former Special Assistant to the President and Cyber Security Coordinator under President Obama, testified that it is “highly likely” Russian actors scanned election systems in all 50 states for vulnerabilities. He also told the Committee that the U.S. should expect and be prepared to combat continued attempts at election interference. You can watch the hearing 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, D.C. – Senator Richard Burr (R-NC), Chairman of the Senate Select Committee on Intelligence, and Senator Mark Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, today released the following statement:

“We are troubled to hear of the charges filed against a former member of the Committee staff. While the charges do not appear to include anything related to the mishandling of classified information, the Committee takes this matter extremely seriously. We were made aware of the investigation late last year, and have fully cooperated with the Federal Bureau of Investigation and the Department of Justice since then. Working through Senate Legal Counsel, and as noted in a Senate Resolution, the Committee has made certain official records available to the Justice Department.

“This news is disappointing, as the former staffer in question served on the Committee for more than three decades, and in the Armed Forces with distinction. However, we trust the justice system to act appropriately and ensure due process as this case unfolds. This will in no way interfere with our ongoing investigation, and the Committee remains committed to carrying out our important work on behalf of the American people.”

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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:

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, released the following statement:

“The Gang of Eight exists in custom and in law to ensure that Congress can oversee intelligence matters without putting sensitive sources and methods at risk. If there is a clear and compelling need to brief Congress on sensitive intelligence matters, it should be handled through the Gang of Eight. The White House’s plan to provide a separate briefing for their political allies demonstrates that their interest is not in informing Congress, but in undermining an ongoing criminal investigation. 

“If they insist upon carrying out this farce, the White House and its Republican allies in the House will do permanent, longstanding damage to the practice of bipartisan congressional oversight of intelligence. They will also be sending a terrible message to anyone who works in or with our nation’s intelligence community that the White House will always prioritize partisan politics over protecting the people who help keep this country safe.” 

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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 — Today, U.S. Sen. Mark R. Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, spoke on the floor of the U.S. Senate ahead of an expected vote to confirm Gina Haspel as Director of the Central Intelligence Agency (CIA). 

“Gina Haspel is among the most qualified people to be nominated for the position of the Director of the Central Intelligence Agency. She’s served with the Agency for thirty three years, including tours as a case officer, four times as a station chief, the deputy chief of the National Resources Division, the Deputy Director of the National Clandestine Service, and currently as the Deputy Director of the Agency,” Sen. Warner said. “In many ways, her story is representative of the thousands of people at the Agency and throughout the Intelligence Community who serve quietly, without recognition, and often at great personal risk, in order to keep our nation safe from those who wish to do us harm… I would also note that, as a Senator from Virginia, the home to thousands of CIA personnel, and the Vice Chairman of the Intelligence Committee, I have heard from many Agency officers, and for that matter, members of the rank and file of other Intelligence Community agencies. And almost to a person, this rank and file have supported her nomination.”

Sen. Warner also addressed concerns about Ms. Haspel’s participation in the Rendition, Detention, and Interrogation program.

“Let me be clear—this has not been an easy decision. Over the past several weeks I have held multiple meetings and calls with Ms. Haspel and many others about her record and her character. In our open committee hearing, I have raised questions about her involvement with the Rendition, Detention, and Interrogation program, and if she were to be confirmed, her willingness to push back if President Trump asked her to undertake any immoral, or legally questionable, activity… I strongly believe that we, as Americans, have a duty to look squarely at our mistakes, and to not sweep them under the rug, but to learn from them, and in the future do better,” said Sen. Warner. “Most importantly, I believe she is someone who can and will stand up to the President, who will speak truth to power if this President orders her to do something illegal or immoral – like a return to torture. I believe this not just because she’s told me so, or because she wrote it in a letter, or even because she said it under oath in front of the committee. I believe it because I’ve heard it from people who worked with her and who have known her for years.” 

Concluded Sen. Warner, “I respect my colleagues who have made a different decision. This was not an easy choice. I too spent weeks working through it. But at the end of the day, and as we vote later this afternoon, I believe Gina Haspel should be confirmed. I look forward to supporting her, I look forward to her being a good Director of the CIA, and I look forward to her performance convincing those who could not support her today that her long-term value to our country will make our country safer and that she will act in accordance to the principles and values of our country.”

Below is the full text of his remarks:

Gina Haspel is among the most qualified people to be nominated for the position of the Director of the Central Intelligence Agency. She’s served with the Agency for thirty three years, including tours as a case officer, four times as a station chief, the deputy chief of the National Resources Division, the Deputy Director of the National Clandestine Service, and currently as the Deputy Director of the Agency.

In many ways, her story is representative of the thousands of people at the Agency and throughout the Intelligence Community who serve quietly, without recognition, and often at great personal risk, in order to keep our nation safe from those who wish to do us harm.

In addition, while she’s not emphasized this, we should not overlook the historic nature of Ms. Haspel’s nomination as the first woman to be nominated as Director of the CIA. Seeing her portrait in the halls of the Agency next to the long line of former Directors will be a long overdue but important breakthrough for the Intelligence Community.

I would also note that, as a Senator from Virginia, the home to thousands of CIA personnel, and the Vice Chairman of the Intelligence Committee, I have heard from many Agency officers, and for that matter, members of the rank and file of other Intelligence Community agencies. And almost to a person, this rank and file have supported her nomination.

Let me be clear—this has not been an easy decision for me. Over the past several weeks I have held multiple meetings and calls with Ms. Haspel and many others about her record and her character. In our open committee hearing, I have raised questions about her involvement with the Rendition, Detention, and Interrogation program, and if she were to be confirmed her willingness to push back if President Trump asked her to undertake any immoral, or legally questionable, activity. 

I questioned her willingness to declassify to the extent possible more information about her background at the Agency.

I still wish more could be done to discuss her background in an open setting. The Agency just recently has declassified more information about her service with the Counter Terrorism Center. I thank them for that, but I still believe that it would have been preferable if we could have found a way to be even more transparent. If she’s confirmed as Director, I will encourage Ms. Haspel to keep this in mind.

To those here who have concluded that Ms. Haspel’s background with the RDI program should preclude her from leading the CIA. I respect their arguments, and I know the passion with which they put forward their position. I myself struggled with this point. 

Many people at the CIA participated in the program. They were told it was legal by the Justice Department and ordered by the President. But, some of the actions undertaken were repugnant and amounted to torture. 

Since those days, America’s had a long debate about the standards that we as a nation, can, and should, apply to the treatment of detainees, regardless of who they might be. That is why I was one of 17 cosponsors in the Senate of the McCain-Feinstein amendment to prohibit torture and to prohibit any interrogation technique not authorized by the U.S. Army Field Manual. That is why I voted to both approve and to declassify the Senate Intelligence Committee’s extensive study of the RDI program. 

I strongly believe that we, as Americans, have a duty to look squarely at our mistakes, and to not sweep them under the rug, but to learn from them, and in the future, to do better.

Nor do I believe that we can excuse torture or the way in which detainees – no matter who they were, or what crimes they were guilty of – were treated. We are better than that, and we need a CIA Director who will ensure – in an ironclad way – that we will never return to those dark days; that we will follow the law, as enacted by Congress.

This is why I have pushed Ms. Haspel, both in our hearing and in our private meetings on this very point—what is her view now of the RDI program? And how would she react if she were asked as Director to undertake something similar in the future?

In both our one-on-one meetings and in classified session before the Committee, I found Acting Director Haspel to be forthcoming regarding her views on the interrogation program. However, I thought it was important that she say this in public, not just privately, which is why I asked her to memorialize those comments in writing.

Gina Haspel wrote, “With the benefit of hindsight and my experience as a senior Agency leader, the enhanced interrogation program is not one the CIA should have undertaken.” I believe this is a clear statement of growth as a leader and learning from the mistakes of the past. And while I wish that she would be more forceful, I also understand her reluctance to condemn the many men and women at the Agency who thought they were doing the right thing at the time.

I first met Gina at one of her overseas postings. But I didn’t really get to work with her until this last year, when the former Director appointed her to be the Deputy Director of the Agency. Over this last year, I have found her to be professional and forthright with our Intelligence Committee.

I’ve had the ability to have candid, unfiltered discussions with her. Whether the challenge we confront is North Korea… ISIS terrorists… or the long-term challenge of countries like China and Russia, I will feel safer knowing that the CIA has Ms. Haspel at the helm.  

Most importantly, I believe she is someone who can and will stand up to the President, who will speak truth to power if this President orders her to do something illegal or immoral – like a return to torture. 

I believe it because I’ve heard it from people who worked with her and who have known her for years. People we all know and trust—John Brennan, James Clapper, Leon Panetta, Jim Mattis, and many others who served presidents of both parties. Every one of them said they trusted her to push back on immoral, illegal, or just plain stupid orders from the President.

I furthermore believe that she is someone who will push back – and push back strongly – against any attempts by this President to undercut, denigrate, or ignore the professional men and women of CIA, and their responsibility, again, to speak truth to power whatever the political ramifications may be.

It is for these reasons that I am supporting Gina Haspel’s nomination to be Director of the CIA.

I respect my colleagues who have made a different decision. This was not an easy choice. I too spent weeks working through it. But at the end of the day, and as we vote later this afternoon, I believe Gina Haspel should be confirmed. I look forward to supporting her, I look forward to her being a good Director of the CIA, and I look forward to her performance convincing those who could not support her today that her long-term value to our country will our make our country safer and that she will act in accordance to the principles and values of our country.

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WASHINGTON, D.C. – Senator Richard Burr (R-NC), Chairman of the Senate Select Committee on Intelligence, and Senator Mark Warner (D-VA), Vice Chairman of the Senate Select Committee on Intelligence, today announced Acting Director of the Central Intelligence Agency, Gina Haspel, was favorably reported out of the Committee by a vote of 10-5 to be Director of the Central Intelligence Agency. 

“Gina Haspel is the most qualified person the President could choose to lead the CIA and the most prepared nominee in the 70 year history of the Agency,” said Chairman Richard Burr.  “She has acted morally, ethically, and legally, over a distinguished 30-year career and is the right person to lead the Agency into an uncertain and challenging future.  I’m pleased to see the Committee favorably report her nomination to the full Senate, and I look forward to her swift confirmation.”

“As Director of the CIA, Gina Haspel will be the first operations officer in more than five decades to lead the Agency. I believe that she will be a strong advocate for the Agency’s workforce, and an independent voice who can and will stand up on behalf of our nation’s intelligence community,” said Vice Chairman Mark Warner.  “Most importantly, I believe she is someone who can and will stand up to the President if ordered to do something illegal or immoral – like a return to torture.”

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WASHINGTON – During a hearing of the Senate Select Committee on Intelligence today to consider the nomination of Bill Evanina to serve as the nation’s top counterintelligence official, U.S. Sen. Mark R. Warner (D-VA), the Committee’s Vice Chairman, voiced concern that rolling back trade restrictions on Chinese telecom company ZTE would pose significant national security risks to the United States.

In recent days, President Trump has publicity expressed his desire to reverse trade restrictions placed on the company for violating sanctions on Iran and North Korea. 

“On the question of counterintelligence with China, a number of members of this committee have raised concerns about certain Chinese telecom companies and their penetration into the American market. I was actually pleased that the President acted on one of those companies, ZTE. Now it appears that that is simply a bargaining chip in negotiations with China. I don’t think that is the appropriate way,” said Sen. Warner during the nomination hearing. 

“If this is a security threat, then it is a security threat and needs to be dealt with as such — not as a bargaining chip in greater trade negotiations,” added Sen. Warner.

On Sunday, May 13 Trump tweeted, “President Xi of China, and I, are working together to give massive Chinese phone company, ZTE, a way to get back into business, fast. Too many jobs in China lost. Commerce Department has been instructed to get it done!” The next day, Trump followed with another tweet: “ZTE, the large Chinese phone company, buys a big percentage of individual parts from U.S. companies. This is also reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi.”

Earlier today, Sen. Warner joined a group of 34 Senators urging President Trump not to reverse trade restrictions on ZTE.

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WASHINGTON – Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) joined a group of 33 Senators calling on the Trump Administration to put American jobs and national security ahead of China. The Senators wrote a letter to the Administration in response to President Trump’s announcement that he has directed the Department of Commerce to look at easing penalties imposed on China-based company ZTE for violations that include selling sensitive U.S. technologies to Iran and North Korea in violation of U.S. sanctions laws.

“Offering to trade American sanctions enforcement to promote jobs in China is plainly a bad deal for American workers and for the security of all Americans,” the Senators wrote. “American workers and companies confront rampant theft of U.S. intellectual property, agricultural policies that disadvantage American farmers, restrictions on market access for U.S. service providers and manufacturers, and mercantilist industrial policies that have cost U.S. workers their jobs.  America’s policies toward China should put American workers, farmers and businesses first, not China’s.”

“We urge you to focus on identifying effective strategies to reshape China’s policy approach in each of these areas, such as through enforceable commitments to eliminate forced technology transfer policies, market distorting subsidies, data localization policies, and foreign investment restrictions, and ensuring nondiscriminatory treatment of U.S. firms in regulatory and other proceedings. Above all, we urge you to remain steadfast in enforcing America’s laws,” the Senators concluded.  

In addition to Sens. Warner and Kaine, the letter was signed by Sens. Chuck Schumer (D-NY), Sherrod Brown (D-OH), Ron Wyden (D-OR), Tammy Baldwin (D-WI), Michael Bennet (D-CO), Richard Blumenthal (D-CT), Ben Cardin (D-MD), Tom Carper (D-DE), Bob Casey (D-PA) , Chris Coons (D-DE), Catherine Cortez Masto (D-NV), Joe Donnelly (D-IN), Dick Durbin (D-IL), Martin Heinrich (D-NM), Amy Klobuchar (D-MN), Patrick Leahy (D-VT), Ed Markey (D-MA), Robert Menendez (D-NJ), Jeff Merkley (D-OR), Bill Nelson (D-FL), Gary Peters (D-MI), Jack Reed (D-RI), Brian Schatz (D-HI), Jeanne Shaheen (D-NH), Tina Smith (D-MN), Debbie Stabenow (D-MI), Tom Udall (D-NM), Chris Van Hollen (D-MD), Elizabeth Warren (D-MA), and Sheldon Whitehouse (D-RI). 

The full text of the letter can be found below:

Dear Mr. President:

Your recent remarks directing Secretary Ross to help ZTE – a Chinese company that has repeatedly sold sensitive U.S. technologies to Iran and North Korea in clear violation of American sanctions laws – call into grave doubt whether this administration will put American jobs and national security first.

If acted upon, your instruction would reverse a law enforcement decision by Secretary Ross to impose a seven-year denial of export privileges on ZTE, setting aside that decision made in the interests of U.S. national security to cushion the employment impact on the Chinese company.  ZTE not only violated US sanctions law but then repeatedly lied about steps it would take to remedy the problems. As Secretary Ross noted when he imposed the order, “ZTE made false statements to the U.S. Government when they were originally caught and put on the Entity List, made false statements during the reprieve it was given, and made false statements again during its probation. ZTE misled the Department of Commerce.  Instead of reprimanding ZTE staff and senior management, ZTE rewarded them. This egregious behavior cannot be ignored.” 

In addition to paying a fine of $1.2 billion, and pleading guilty to knowingly violating U.S. sanctions laws, ZTE agreed to a multi-year denial of export privileges, to be activated if any aspect of the agreement was not met and/or if the company committed additional violations of US export control regulations. Prompted by new violations, Commerce imposed the denial.

America’s national security must not be used as a bargaining chip in trade negotiations.  Offering to trade American sanctions enforcement to promote jobs in China is plainly a bad deal for American workers and for the security of all Americans. Bargaining away law enforcement power over bad actors such as ZTE undermines the historically sharp distinction between sanctions and export control enforcement and routine trade decisions made by the US.

Your order comes as your administration is in the midst of discussions with China to address China’s market-distorting policies and other tactics to undermine key American industries. Beyond appearing to risk American national security, the statement suggests that the administration is not serious about addressing the many economic challenges China presents.  The devastating effects of China’s trade policies are clear.  As your top trade negotiator recognized in his trade report on China less than six months ago, to address the “very serious and harmful problems generated by China’s trade regime”, China must “truly embrace a market-oriented approach, rooted in the fundamental WTO principles of non-discrimination, market access, reciprocity, fairness and transparency.”  There is no evidence that China has agreed to such a shift in approach.

American workers and companies confront rampant theft of U.S. intellectual property, agricultural policies that disadvantage American farmers, restrictions on market access for U.S. service providers and manufacturers, and mercantilist industrial policies that have cost U.S. workers their jobs.  America’s policies toward China should put American workers, farmers and businesses first, not China’s.

We urge you to focus on identifying effective strategies to reshape China’s policy approach in each of these areas, such as through enforceable commitments to eliminate forced technology transfer policies, market distorting subsidies, data localization policies, and foreign investment restrictions, and ensuring nondiscriminatory treatment of U.S. firms in regulatory and other proceedings. Above all, we urge you to remain steadfast in enforcing America’s laws.  

Sincerely,

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