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[background noises] the Senate Caucus on narcotics control welcome to order. Good afternoon, everyone. I want to think secretary pompeo for being here today as well as members of the caucus. This is the first time weve had cabinet member address the drug caucus and theyve given the circumstances, we find ourselves in. This makes it especially appropriate from the nations top diplomat. The rising aquatics epidemic is inflicting the highest rate of casualties in our nations history. America alone in 2017 ordered 17000 people died of drug overdoses. 2006 mexico seen 1,150,000 people murdered in the course of the Cartel Violence associated with the market share and real estate and comes to the International Drug trade. Reflecting on those numbers, it bring me think about other efforts we undertake. Only the threat of terrorism emanating from afghanistan, the war in iraq and the idea that we would somehow lose 70000 americans in one year alone to drug overdoses is not consider this a matter of national emergency. Its really staggering. We hope to turn that around. In order to break this devastating cycle, we need to take a holistic government approach to address supply and demand as well as expand treatment for those suffering from substance abuse. Will focus on supply today International Sources of products in our nations strategy to prevent them from reaching our borders and infiltrating opportunities, the current affects of the products epidemic cannot say weve reached a crisis. 2018, National Reports for drug poison deaths remained the leading cause of injury and death in the u. S. Currently, as i said earlier, the highest level ever recorded 2013 members and outnumbered deaths from fire alarms, water vehicles, suicide and homicide. 2016, 174 americans died every day from drug overdoses. My home state of texas, we remain severely impacted in terms of the volume of trafficking and all related mayhem that accompanies that activity. Nearly 3000 texans died of drug overdoses. Half of those were related to opioids for the dramatic increase in synthetic opioid related deaths. The emergence of functional as a significant country better have skyrocketed over the last few years and has been subject to hearings of this caucus. I know efforts International Diplomats with china by the Trump Administration and by you, mr. Secretary. Drugs as well as the transnational and domestic criminal organizations track them, continue to threat to public health, Law Enforcement and National Security. The most of it focus on International Aquatics control is to expand cooperation against abuse and narcotics trafficking. I believe we need to have a conference of National Strategy that focuses on supply, which we were examining today and demand. Strategy must also take action against transnational organizations running rampant, engaging a broad range of criminal activities. The cartel, Generation Cartel and many others maintain a presence not only in Central America and mexico but also in my state of texas. They specialize moving fast amount of cocaine and heroin, fentanyl and other Illegal Drugs throughout the agent. Its not just drugs they are carrying. Commodity agnostic, traffic in drugs and migrants and human beings for sex slavery and counterfeit goods, you name it. Whatever will make make them a buck. In the face of all this, they are becoming richer and growing their infants in the u. S. And without intervention, their power will only grow. Because we cannot win this fight alone, our strategy needs to improve our Security Cooperation with International Partners. Particularly mexico. It must invest in Economic Security and promote a stronger, more stable Central America. Secretary pompeo and experts on our panel will shed light on the epidemic in our hemisphere across the globe. Look forward to hearing their testimony in learning how we can Work Together to form a comprehensive strategy that reduces illicit drugs into the u. S. And helps keep our citizens safe. I turn the microphone over to feinstein. Think it. This is the first hearing of our congress, i think its good news that youre here. I look forward to working with you as chairman. I also want to thank senator grassley for his tenure as chairman and welcome senator rosen and purdue. I think we all know the illicit drug trade in this country is really big business. Its valued at anywhere from 42. Reach is global. Its distribution is growing. Its leadership is criminal. Like any business, it adapts to market changes. In this case, u. S. Demand and International Enforcement are the two things and its motivation is power and process at any cost. In my state, california, our largest state, the cost was nearly 5000 lives. In the u. S. , our states, more than 70000 lives. Globally, the cost only increases. In 2015, the latest year for which data is available, excuse me, i cant get rid of this th estimates dont consider the lives lost due to private associated with this illicit trade. Both in the u. S. And source and transit countries. In 2019, this year, 22 countries have been identified as a major transit or source countries for illicit drugs. Profits came from narcotic production, fund dangerous cartels, Transnational Criminal Organization and mexico, china and countries in central and south america. The profit margin is only increasing. Last year, or than 133,000 pounds of heroin, cocaine, meth and now fentanyl where two grains is enough to kill an individual were seized in the u. S. This year, nearly 101,000 pounds of these substances have already been seized and we are just halfway to the here. Narcotics productions funds the insurgency in afghanistan, the Worlds Largest supplier of opioids. The u. S. Does not have a dedicated counter aquatics plan in this country. I think youre right, youve got to get cracking and build one that works. The drug trades have staggering level of violence and corruption. In mexico, its estimated that one third to one half of the 32000 murders committed in 2018 were related to drug track of picking and organized criminal activity. 21 of these cases went to trial. The former head of venezuelans the tight intelligence which recently arrested in spain, on Drug Trafficking charges. The global narcotics trade requires us to address both our own demand issue as well as foreign supply. The state department place a Critical Role in all of this. As it ordinate u. S. Foreign assistance for counter narcotics. Theres much to be done. I put my forward marks in the record but thank you so much for being willing to come today. Thank you. We are grateful for you being here today. You may proceed with any Opening Statement you would like to make. Thank you. Im happy, this is an important issue. This is untrue priority for us. Is happy to be invited here today. Ill be very reef, he shall know that like many of you, this is personal for me. I know many people have been impacted by this set of issues last month there were seven who died in a ten hour period. From a single overdose of cocaine laced with fentanyl. Its a serious matter. We all know human lives who have been touched and families ripped apart by this. The state department, u. S. Government agencies do, most manufactured in traffic, thats where our talents and skills and 15 comes to bear. A clear role here. Want to talk about what were doing, will dig in a little further. First, we focus on china because of the increase in fentanyl since the last two and half years in this administration. Purchased online often and delivered directors to the dealers. Not only the state department, ive been working closely with china, ive had numerous conversations with them on may 1. China fulfilled their pledge to control all attentional like substances, potentially the number in the thousands of different substances and develop a plan for each of them. We need to work closely with them. Im convinced they will do that. Im convinced they will shut down and save lives here in the u. S. Mexico remains our production, heroin in the country for cocaine and fennel and other drugs. Part of our conversation about what we touched deeply on, how we can look work more closely together. A good deal of the conversation was about the traffickers desire to move whatever product will bring a market price that causes them to continue to do things that disrupt so many lives. Well try to take down these enterprises between all elements in the u. S. Government. We donated equipment to the mexican Law Enforcement. We drink officers to eradicate poverty and drugs. We provide them specific docs and as you can see from the data today, many challenges remain. Just a couple of words about the rest of the semester. I met with president multiple times, both occasions, he continued his strong support to stop Drug Trafficking. Theres a lot of work left to do. We are working to get the direction, the magnitude of the problem to turn the corner, to begin to decrease production. Weve quadrupled the number of eradicate is. While the payoff has not yet demonstrated, over percent, 60 . As a host of other countries, im happy to take your questions. Thank you. It will be made part of the record without objection. Well start with six minutes rounds and the secretary has been very gracious with his time but we will make sure we get inandout of here. We have a second of witnesses and votes. We will be kind of busy. Let me start with this question that we talked about in the other room. As i think about u. S. Governments strategies and plans to deal with everything from traffickers to instability in south america, think of columbia, that was the one success story, even though as you point out your conversation to deal with the eradication issue, its very important. We need to see a reversal of the continued proliferation in columbia. Other things you think we can learn from columbia, that we can apply to a broader regional strategy works a Strong Partner like we had during the toughest parts and also having a bipartisan congressional support so it did not lapse with each president ial election. Share with us some of your general thoughts about that. For two very important things. We make sure we find the right areas. Then working through their agencies, not only are the u. S. On this, its often fragmented, trafficking. The local federal Law Enforcement officials. While there is no Silver Bullet, all evidence on the u. S. Side and other countries side working alongside of each other. I think those are the Building Blocks to deliver. But we were were successful with columbia as well, developing an offense that had duration to it. Meaning bipartisan support. We have a license here every couple of years. These problems would far past any particular congress. It does take a level of commitment for consistent resources and priorities inside of the u. S. Bureaucracy. So the opposite is put in place, ripped out, 180 degrees each time theres a change in leadership or congress. That is very helpful. In terms of our relationship with mexico, i also think about the mayor initiative, which i know we will hear about from the other witnesses. Some people will say we need to send more money to Central America. To me, that with the car in front of the horse. We need to have a plan and be able to tell the American People that yes, we are sending assistance to these countries that is targeted. We have a good way to follow the money and make sure is not being stolen and being used for the intended purposes. We have a plan in place and we can measure the success. One of the things that is discussed, the possibility special envoy for this region. Can tell us within the state department and the experience with the executive branch of government, to think Something Like a special envoy for this region would be something we should consider and continue discussions about . Teaming with respect to this issue, the path to handle this more probably . Yes. I have to think it through. Using the state department where we have had problems, identify someone to pin it on. Someone who had authority and responsibility connected to bring all elements of power together so that might make sense that each of the elements of the u. S. Government has a delivery, associate with the magic to describe. Would need to be on board with that. When be a state department, special envoy. Someone with the scope and capacity to demand all resources connected. If we could achieve that, it will make sense. I hope we can continue the conversation with you and other members of the administration about how to have a accomplished that, the best way to deal with that. I wonder, even though your negotiations, with the mexican work minister, conversations that youve had with the president , mainly focused on migration issue. Ive been struck as somebody, texas has a border with mexico, ive followed mexico for my entire career. Ive never seen mexican officials appear to step up and engage, it looks like they are doing now on the Central American migration issue. I wonder if you, on that. I think its real and if its enduring, it could be transformational in terms of our relationship, and only with mexico but dealing with all these issues in mexico and Central America. Can you give us your general thoughts about what changed and how do we get here . Ive been at this for two and half years. My previous role, connection to working on primary on the tcs. This is been involved in migration issue at least have a demonic level, working between the two countries to set up policies. The president the spectrum of the tariff. We had been able to make over the course of the preceding for almost a year and now. I think it focused the attention of all of us and made us more willing to set up deliverable, i am hopeful will deliver on the outcomes that i am convinced he wants in President Trumps wants. The legal migration which will have a secondary benefit of reducing capacity for these traffickers to move drugs, the topic of our gathering today. I think its something he may very clear to me and his team. And we will move through the northern triangle with the flow of illegal migration it is all about the execution but the wealth and capacity creation needed to take place were demonstrated last week. Migration and Drug Trafficking are the issues here talking about our relationships. But as Border Patrol has told us coming across the ports of entry customs and Border Protection and they have to be assigned different duties to take care of children and families and those used to exploit that chaos and uncertainty moving poison into the United States thank you for your response to that. Senator feinstein mister secretary, fy 1922 countries were majored drug producing countries located in south america as well as asia. Give it did the limited counter narcotics budget how can states help determine where to concentrate its efforts . Its an excellent question. We tried not only during each budget cycle we try to set priorities and try to find the place where we can find the most impact mindful that it is not measurable that there was bill the. To create capacity. You can look to that only to the budget request within those various tools not just the state department but cbt and monies requested for all other agencies involved how we think about approaching that. Honduras and el salvador and guatemala are few of the countries identified for illicit narcotics in the United States. In light of the president s recent decision how will the state department reduce the flow . I have been thinking we went to columbia several years ago it was a success the numbers are up at 10 billion now but we have problems in Central America and im wondering so in a planned Central America to provide the incentives to restore the coffee industry and with those cartels that is happening with those feeling they have no alternative. Has your department taken a look at this where Central America might be viable clicks. There is lots of work done so on the fy 70 funding we carved out two significant programs doj and dhs related to those what we are talking about. Because we thought they were important we have been at these programs for a long time and the charts that we show today demonstrate we have not gotten where we want to be perhaps thats the case we havent deliver the outcomes and with those northern triangle countries . Maybe they will conclude there is a different way and a different enforcement mechanism they can have that capacity for. Could you share that material with this caucus . But to think about this every day. That would be very helpful. And where to concentrate your efforts. So to talk about that assistance. And while it isnt new and those other sources of china and then when columbia was created you would have a different priority. And the bad guys move more quickly and not to have the right tools and that flexibility but if you just look at the loss of life or the impact that fentanyl is at the top of the list. And then to have a serious conversation and then to stop it at its source . And that even at those most senior levels that is most necessary in that task to execute that in the last several weeks with a commitment to work towards this so too asked the question quite simply what can reduce the cost and all of the other dimensions and then to identify them. The estate Homeland Security fbi and department of defense in regard to the interview that you gave and the sale the sales and venezuela and everything going on there it gets our attention very quickly. Has below proximity or venezuela proximity increases the scope of influence allowing others like adversaries of china and russia and iran to strengthen the existing power when looking it is impossible to look at the pro trafficking organizations by terrorist groups and by many accounts with powerful criminal organizations are a direct result of Drug Trafficking. So my first question is what role the has below play clicks where the related criminal or those trafficking drugs xp the answer to the first question is i would not put at the top of the list for drugs. Thats not the case. But they are active in venezuela with the money making enterprise and it is designed for those activities that is conducted in the middle throughout the middle east. And they flow through those regions to hang around the trafficking and those that surround Business Enterprise and the narcotics flow is a result of the role in south america. So how can the state department ensure that those terrorist organizations dont grow stronger . Is very difficult. I just say it doesnt mean we are giving up. We are working on it the brazilian border, all the places but it is the case we no longer have an embassy there so its difficult for us so we monitor and collect intelligence and those that surround venezuela. With Money Laundering those criminal elements that cannot benefit financially to the crime likewise Drug Trafficking organizations are reliant upon the International Banking syste system. How effective are the current moneylaundering laws in the destabilizing criminal organizations of Drug Trafficking . To give a qualitative answer we spent a lot of resources in terms of the Banking System and the state department has a role there as well. Your point is well taken but there are still spaces the Money Laundering laws are good and effective before solos that are not through the International Banking system. Is there any change that you need from congress in that regard . Have you suggested anything . Now is the opportunity to repeat that. I would love to have treasury give you the answer to that in writing. This is a treasury matter more but with those designations that flow but the most important work of the Banking System. Columbia is world leading producer of cocaine. We have put a lot of money into it. The Financial Assistance supports the eradication and interdiction efforts so what steps has the state department taken the effectiveness of eradication. We have published it we will continue to publish there is still a lot of work to do. To permit or to deny which is important to all they need for that spring interdiction. But we have really good data africa we have her hands around it working around the colombian counterparts with the eradication business and when the president took over i will say he has built back the teams if you can to do that manual physical work i think to make a sincere effort with that real reduction year after year. It is an honor to be on this caucus Ranking Member for the bipartisan way mister secretary have a million other priorities thank you for the time youre giving us. Focusing on mexico and having worked down there most of the last 30 years inside mexico and Central America the cartel cartels, right now 40 people were lost this week. 500billion makes the Cartel Business just in mexico alone bigger than walmart. This is larger than the largest company. We will give the cartels over 1 billion just from the human traffic coming through on the southern border of the stipend just with the fee that they charge. I was down at the southern border a few weeks ago and i can tell you they are the best that we have doing a fantastic job they are just overwhelmed. Sofa cartels sends a Cruise Missile into dallas texas the response of a little less measure than it is today not just a state department issue but a defense issue treasury issue you mention several this morning. So what else can we do to put the cartels out of business . We have been doing this since narco politics came to Central America. They are really the ones that are benefiting from this tragic disaster. I wish there was a Silver Bullet to this. And the sustained effort from our partner countries. It is the case there are spaces in mexico where they have enormous capacity at the risk of corruption is very real and the ability to control that real state to deny that capacity you mentioned the counterterror fight to take down the caliphat caliphate. That makes it harder in ways that our harmful to the United States. And to do that we need those countries with capabilities that require us to provide the resources and the tools they need but we have an enormous benefit as well. I looking back 25 years we have not applied these tools consistently because not only our policy but the changes of governments and they resist or to try a different approach to have that effort the same way with other National Security arenas. That is to the way of life in the United States of america. Is not just a defense issue is it the responsibility so general kelly made the comment to congress they could see 85 percent of the drugs coming out of latin america that can only interdict about 15 percent so in your mind do you agree with that assessment what did they do together and i know it goes back in terms of partners but. It is the case we can see what happens to interdict the flow its also the case we have successful interdiction cutting off those mechanisms so even if you stop one to find another path forward. As you discover these general kelly would have been referring to some of those with the aircraft short runways and dark places it is a multifaceted task. There is the capacity of those and then resource application brickle if you say what can we do better with interdiction . And then to be more resources applied to attack multiple vectors simultaneously. My time is expired. Thank you for being here. So just to ask you some cleanup questions. United states has been focused on the like a laser on the threats from the middle east emanating from afghanistan and iraq and it seems to me we just have not had the same focus whats happening on the southern border im not criticizing but just as a fact. Historically there is this idea certainly in mexico this is in their problem but our problem. And there is a lot of truth to that. We struggle to deal with the demands senator feinstein and i have done work in that area to scratch the surface but in terms of your earlier testimony developing the relationship with the Trump Administration with the migrant crisis it strikes me as a change of approach and attitude rather than doing something to these countries we are doing something with them that represents a common challenge for both countries to be sure. When i hear mexico talk about issuing work permits or issuing asylum, i wonder if the money if there isnt more we can do to help mexico with the facilities or training or infrastructure they need. If they are willing to do s so, they are beginning to have that attitude if theres more we can do without assistance with that assistance. You are right. My sense is they are getting their feet underneath them and that presents a risk but these cartels no we are no good for them and present a risk for us so i do think there is an opportunity so that the markets form when there is demand so all the interdiction that we do as long as there is demand is suppose you could raise the cost dramatically and demand words drink because of resource constraint but we have to work both sides of the problem for the ultimate solution. Thank you chairman i appreciate the hearing. Rhode island is not among the very worst states with respect to our opioid problem that we are experiencing a small group of states that qualified for those supplemental funds thank you to senator shaheen to make that happen. So what we have seen because of the good work in her home stat state, the opioid overdose death is tapering off and starting to decline. Not a lot of states can say that but we have had real success. It isnt robust enough to confirm it relates to the policy changes we put in place. But its a lot better than going the other way. However fentanyl deaths are still going up. So the deaths overall are coming down the fentanyl is going up. As you have experienced a need for Law Enforcement professionals to undertake those various protective measures to keep themselves safe coming in contact because of those extraordinary concentration. You may have mentioned this already but i remember the last administration being one of the voices for the department of justice fight over some of the stuff. There is a lot that can be done. What is your current state of play what are the top two or three goals for the us distribution so president made a personal commitment to President Trump to direct his team we have seen literally in the last two months interaction on this issue now putting in place that will list all the variance and put them on the list of the controlled substance list. That is all good those interactions we have had with the Chinese Government has been very positive so can we physically observe the movement of these products and can we see them come down through here or mexico clicks here is still a lot of work to be done but im very hopeful they will take this seriously inside of the country to reduce working on the various means of distribution in those to raise the cost in the United States and decrease the volume of flow. We have a sense of what came in we need to see that number declined as much as we do with apprehensions the perfect marker to bes sure that flow that we can see and touch. That will improve. Its always a mixed signal but the better that you get you better hope that raises cost and deterrence so we ought to be able to see inside of china with those production mechanisms and reduction on the ground as well. Thank you. I will mention two other quick things we have work on Marine Plastic waste and the president signed our bill spoke strongly with the five asian nations that dont handle waste disposable in a responsible way but yet where we are negotiating on these internationally the us drags when it seems the signal from congresses we are Going Forward in a bipartisan fashion but the president seems good as well. So any signal you could send to encourage your troops to be leaders in this area would be helpful. This is important it is a priority the executive and legislative branch together help my team is not dragging their feet programmable go validate the reports are incorrect. I will do more than discourage that if that is the case. My time has been exceeded. Mister secretary thank you for being with us today prickly of many demands on your time we are grateful for you have spend we look forward to continuing the conversation working with you and the rest of the administration. Of those multifarious challenges with that proximity to Central America. Thank you very much. [inaudible conversations]. I will invite the next panel to come up and have a seat. [inaudible conversations]. Let me introduce our next panel former assistant secretary Bureau International narcotics but it Us Department of state. Undersecretary National Protection Directorate Department of Homeland Security currently serving on the board of the middle east institute. Visiting fellow of the American Enterprise institute former Us Ambassador assistant secretary of state and all witnesses are honorable. At the Woodrow Wilson center for scholars deputy ambassador enough gaffe discipline afghanistan for economic and Business Affairs and assistant secretary for the state for europe. So i would like to do in q a and discussion to make a few opening comments but if you keep that two or three minutes that would be helpful to make sure we have time for q a. Thank you we appreciate you being here. I want to talk about two particular areas in the western hemisphere. Columbia and the northern triangle you have seen the statistics about the increase there are factors of the Peace Agreement of eradication and that in order to gain siphons from the government what i want to say specifically that we had success in columbia with the combined effort with the United States government and at this particular point in time not to diminish what the administration has done recently, we need to look at a level of commitment that is equivalent to what we had before because columbia is not just a unique problem but creating a broader problem in the region with cocaine or the consumption of cocaine with the entire hemisphere that problem will not go away unless we can Work Together. We expect Central America. Lets be clear, senator feinstein, you talked about in the earlier hearing the resources in those three countries are not there el salvador and honduras are number one and two murder capitals in the world the level of crime and corruption have bread poverty reducing Economic Activity so if we dont look at this as a drug problem as well as a migration problem or if we dont work to build those institutions to deal with the drug trade as well as migration then we are losing out on an opportunity and i believe senator feinstein was right looking at a much Larger Program is imperative. Lets also be clear that columbia has and can help us in terms of Law Enforcement training in those countries. But also Law Enforcement alone and we have to do more to go to those root causes what causes the farmers to reduce growing and what is the crime and violence in Central America to be reduced to create less of a driver for migration to the United States . Thank you very much. Mister noriega. Thank you for the opportunity illegal Drug Trafficking has never been more dangerous part of a organized crime threat over two. 2 trillion dollars. That threat grows more powerful every day with the supply chain and with respect to the key targets one of the most important phenomenons is statesponsored crime. With the United States and our allies venezuela is only the most populous threat cuba, russia, iran and china that it turns out corruption and violence and regarding columbia the impressive achievements of a 10 billiondollar program has been squandered. Resulting in an explosion of coca throughout the region just over 800 square miles and double that in 202012. And with those metric tons it is three times the estimates 2012 at a time without Political Leadership in those enforcement resources are overwhelmed by migrants and then to declare that unilateral end to the war on drugs and not give amnesty to drug traffickers. And this is a dramatic decline of cocaine and heroine and illicit drugs seized by mexican authorities. And then on those recommendations more experts to yield those asymmetrical weapons against transnational crime and to deny access and to disrupt the networks. Yes columbia has to tell me on coca eradication but we have to keep in mind to be a style ward ally of ours that the president inherited the problems he is confronting and you treat them as allies i dont think we can continue we see a narco as a cancer. Mister white. Were all facing a powerful onslaught of crossborder crime bilateral cooperation needs to effectively with the flow of the dangerous drugs with the flow of the United States and the drug sale profits which fueled the violence in mexico and then to work against the violence and corruption. 2017 mexico in the United States agreed on the strategy throughout the entire chain of drug production and then to recognize demand however in mexico the government is now embarking on a wider multi prong strategy responding to those who voted for those to come in. And to spread widely into mexico the key to revitalizing our cooperation is a thorough bilateral review of challenges and existing cooperation to hammer out an agreed action plan. The initiative producing those programs and also to include the Mexican Government that cooperation going on over the last ten years. I believe there needs to be a mechanism to recognize those Public Security priorities to have it agreed action agenda and to report to the two president s. And with that bilateral strategy and then to set up the concrete working arrangements to allow us capacity building. If we can do that and generate good confidence and good results between mexico and the United States. Thank you. Thank you program will start with a round of questions. Let me just ask you so about the cabinet level are you talking about an envoy that is in this region or did i misunderstand . To make it is similar to the idea you put forward in the us mexico context the seniorlevel group to get the attention of all various agencies of both governments , to have a direct tie to the president and then to start the action agenda that is part of a broader regional effort why you so clearly lay out in the steering or discussion in the connection connections, they are there and active but the key is a multi agency ability to coordinate to act together. I note with some dismay we have not had an ambassador to mexico for a couple of years now which is shocking to me. It is one of the largest in the world with those issues that we talk about and with our ambassador. I am hoping the Foreign Relations committee come im not sure who the next nominee is it is forced out so we can rectify the omission. The 10 million you spent on plane columbia and the amounts of money we dedicated to Central America and measure , it really seems by comparison. We obviously need a plan, accountability to measure the efficacy that we have not responded in the emphatic to those challenges we face. Is that fair. Yes mister chairman. I believe there is a need for a comprehensive strategies. We tend to deal with these countries like the northern triangle is the source of immigration but we need to deal with them as an economic area like we did ten years ago to pass the free trade agreement. But we need to engage the individual governments as well that we dont have that is the difference with the president s of columbia so we have a strategy for the. That is a fundamental approach we need to have that assistance of problematical relationships with honduras it doesnt come into play. You provide a substantial amount of money into mexico but part of that is what are they willing to accept for assistance . A lot of what we put in and the mexicans up to now so to deal with these countries as a unit with Central America and the partner in that is a wise approach in terms of illegal immigration. We have weak states that are outdone by the narcotraffickers. And unless we approach those Security Issues are not within venezuela for example, but not the traction that we need. Thank you. I was depressed by this because i have been to columbi columbia, i saw the 10 billiondollar injection, i have seen some good government. I see venezuela crumbling. I dont know whether it is drugs are corrupt leadership but is one of the two because i thought if any country would make it it would be columbia. Now venezuela is the next thing to a narco state. Nextdoor. More and more as i watch these things i blame them on leaders. Am i wrong quick. It all think youre wrong. Its very troubling we have a partner in columbia to make that effort to make peace with the narco gorillas cannot reach that with a criminal organization. All along the way during the course of negotiations they made unilateral concessions to the guerrillas. Started with the crops. I have a friend in the state department who said santos government went along with un to criticize the use because he wanted to hand the guerrillas essentially what they were insisting upon. No more fumigation and also pulling back in those areas and in the territory where they moved or produced the crops. We also to give up on the extradition of the kingpin so i believe he made a serious mistake that we were a partner every step of the way. We should have been more as an arbiter less of a cheerleader in the process. We will not get any traction if we do not deal with the venezuela problem. Much of the farc part of the Peace Process have re located into venezuela those that have 40 camps to traffic cocaine and as a threat to columbia security with that partnership with the Venezuelan Regime this administration is dug in hard on venezuela running out of energy and ideas. We cannot give this up. We spend 10 billion. How does it end this way i was there when it was loading up and now the leaders are corrupted and i guess corrupted by money and then it goes to the narco state which i guess is what venezuela is doing now ive been calling you by your first name before you had gray here i figured that is okay. [laughter]. It is that one or the other. Corruption or leadership it is a combination of both. And with the Peace Agreement and also to be committed to the notion which is his interpretation with respect to the farc he would gain traction of the narcotics problem. That didnt work out the way he thought and not even have a chance to implement his ideas. As he said time and time again is not a shortterm problem it is a longterm problem but it still stands merit today and in the long term is that the agreement to do alternative forms of economic activit activity, agriculture or were never implemented in a serious enough way to be distant from the capital and from the elites so also in my view, leadership it is that implementation effort to deal with the problems altogether. For Law Enforcement is not enough to deal with the problem. It is a broader overall effort. And if it is a whole of government effort. Almost never is it a whole of government effort. And with dea. So the money that flows through it is still not the central issue of the state department. Im not saying that it should be but lets be candid. Unless the people who are implementing understand this is a critical issue to leadership going to your point senator feinstein about leaders, is not going to be a priority issue as people do not move out of the way to get things done in that area. And a combination of political will and capacity and with the partners from the United States so to build that Solid Foundation to allow you go through ups and downs in the elections. You see that in columbia with the new president drawing on those institutions that were there to strengthen with our assistance. But it does need to be in both countries that whole of government approach and if you look at Central America you can see the ups and downs into that region especially in enough place with weak institutions like the northern tier. We dont turn into pumpkins at 4 00. In mexico the cartel situation in mexico and then to get their feet on the ground with that merit at initiative and how is that impacted by the change of this administration and the second part is how should we approach the cartel influence in Central America . And as the populist but since you became president to have productive relationships with the United States. Said to be prepared to engage in a serious way with that bureaucratic challenges and corruption, they have dropped the ball on those anti drug efforts in terms of seizures or that kind of thing it is absolutely unsustainable if mexico loses ground then they will continue to have their way anywhere of mexican territory. And then moving into columbia and moving into the cocaine production. And then to generate even greater profits. And talk about legalizing crops as a means to reduce violence that is clearly a priority but it is a mistaken approach me to engage in a serious way and hold them accountable because thats even more important than the immigration challenge we are facing. Does that have any impact so far but the National Guard up to fairly recently imagination a sixmonth transition he talked about and much of this exist. But that remains to be seen. Thank you very much. Think the section on the Merida Initiative and areas of cooperation. Which i would be happy to talk about more detail. But they have taken the federal police, from the army and navy to get up to 140,000. They dont have that much experience working together so there is a lot of work to do. And for those 250 districts so this has to be something in progress and something the United States can be supportive with this combined Political Group and to work with local officials to offer Technical Training and assistance to do that. It is also true the new government and to with those initial reforms and it makes more serious commitments and now it is time to engage them and then to start getting serious about a concrete action agenda we can overtake. There is a part of the International Criminal economy that we can do something about. One of the things people have observed over and over if narco criminal or crypto criminal or whatever your activity is you seek rule of law protections with that criminal parts of the world but when you got your pile you want to bring it to a rule of law can treat to protect her illgotten gains. So those that our hot against this concern and through the american Law Enforcement community because the United States as a matter of policy aids and abets those criminals hiding in laundering those illgotten gains to allow Shell Corporations to exist without disclosing who the real owner is. And each of the organizations you are affiliated with has pushed back a little bit trying to be helpful i appreciate it very much our Banking Community and the treasury are on the subject so if we could take away sanctuaries and if the narcos themselves does that not make a difference . With that piece of the puzzle isnt this something we do a better job of we have that to some extent you are right in that regard the Shell Corporation is not something we have tried to do but the Previous Administration did allow the Treasury Department to the extent where their money was so the transparency with respect to that more corporations and dont know to the extent of which we can create that program to have that territorial aspect to it is becoming the repository of those states that are subject to current law. That would help but i was thinking of containment. For example, the Venezuelan Regime has alluded it has about 350 billion. That many is all over the world and accounts. Is the hard work of investigations using intelligent and Law Enforcement organizations a lot of work in the Southern District of new york and florida. But one piece of that what makes it easier that the Shell Corporation discloses the true Beneficial Owner that is what treasury is pushing for then its a very simple ask as opposed to an arduous and impossible task. Yes but i will say that the dea needs more personnel. They have resources in the Legal Authority but they need more bodies. So my time is running out. Before we close. I agree with you completely. We need to move forward with more transparency that would be a big addition to fighting corruption and all sorts of illicit money flaws. We can join those in the world to help set International Best practices but we can make a big difference moving forward i know there are several proposals to have the opportunity to consider but it can make a big difference not talking about making this available to everybody but access for all officials to track this money that would hel help. Thank you chairman. Let me ask my staff to hold up a chart that we have. The other one. We have talked about the secretary pompeo about what Congress Might do working with the administration to come up with a comprehensive strategy. Obviously to get a plan that we can explain to the American People that deserves the investment of their hard earned dollars. So let me ask you about the elements obviously this chart suggests a comprehensive strategy supply and demand to improve Security Cooperation of International Partners and invest in Economic Security. Can i ask each of you if that encompasses the elements of the appropriate plan or things you might suggest or do you disagree quick. Addon disagree at all the lie thing that comes to mind it may not be within the orbit of those four items you have to look at corruption as well. And create that basis for dealing with corruption on an international basis. I thank you took us to school today about interagency coordination and that is something we need to have that government approach with agencies working together. Ambassador under the improving Security Cooperation in that capacity at the same time or else that will not mean as much but if we can Work Together to strengthen their capacity that would be very helpful. Thank you for that those answers in question i remain a skeptic to build other nations we have seen our challenges around the world. Certainly we can work with those countries and the leadership of those countries dealing with a corruption issue with reliable partners to work with to help them help themselves. But as somebody pointed out we cannot want it for them worse than they want it for them because obviously we cannot impose this on any of these countries anywhere in the world. Im grateful for each of you for your participation today i invite you to continue the conversation as we work through this with the secretary of state and other members of the administration to come up with some all government approaches we has touched on because we have not dedicated enough of our time and attention or the resources we need to make a difference. Part of what we are seeing on the southern border with the drugs and overdose front here in america cries out for the best efforts we look forward to continuing that conversation thank you for your participation today. We are adjourned. [inaudible conversations] [inaudible conversations] [inaudible conversations]. This is the basis to me to pass the test. Is the fact on the hospital bed you dont asked the denomination of the person. Spirit the difference between the modern media today the Patriot Media to help found this country the Patriot Media the men of the Printing Presses in the pamphlets. That is it they tried to fundamentally transform government they wanted a representative government. Today the press tries to fundamentally transform us. As folks know we are roughly 90 plus days since our last official White House Briefing and we just dont have access to white house officials the way that we use to even during the Trump Administration if they are on the record everybody has a mic a variety of reporters not just the networks trying to get in their questions but also reporters from the Wire Services or newspapers or Foreign News Outlets that has been lost. Watch all weekend on cspan2. Holding a hearing for risks on fake videos the audio imagers have been altered former officials testified at the hearing. The committee will come to order. Before we begin i went to remind all members we will discuss unclassified matters only. Please have a seat. Are

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