The hearing will come to order. Let me welcome you to the Senate Foreign relations subcommittee on asia and Pacific International cybersecurity in the 115th congress on behalf of the committee i apologize for the delay of the beginning of the hearing to the witnesses have been here time away from work and those attending the hearing today. The return of senator mccain was a very poignant moment for the senate. Its the most Urgent National security challenge in the United States and allies in east asia. The secretary said north korea is the most urgent and dangerous threat to peace and security. The former commander of the u. S. Northern command stated Korean Peninsula is that its unstable point since 1953 when the armistice was signed. North korea conducted Nuclear Tests in a 24 ballistic launch. This year pyongyang has already launched seven Team Including a successful test of an Intercontinental Ballistic Missile is capable of reaching alaska and hawaii. The policy of decades of bipartisan failure must turn to one of bipartisan success with pressure and cooperation in the peaceful denuclearization of the reading. The United States will not allow that to happen and i am not encouraged by the president s resolve. As Vice President head of state during the visit to north korea since 1992 the United States and allies stood together for the north korea through peaceful means but the options are on the table. Time is not on our side. The policy should be straightforward. The United States will deploy every diplomatic and if necessary tool at our disposal to protect our allies. The only country that holds the leverage necessary to put the squeeze on the north korean regime. According to the state trade agency, china accounts for 90 of the trade including virtually all of north koreas exports. Trade volume between the two nations has climbed more than tenfold rising from 448 million in 2000, to 5. 4 billion in 2005. Beijing is the reason that it acts so boldly. The global power cannot simply throw up its hands and resolve themselves in responsibility. Its to ramp up the truck that has been utilized for its fullest extent. Passed by 96 to nothing. The legislation was the First Standalone legislation in Congress Regarding north korea to impose mandatory sanctions on the proliferation activities and malicious cyber behavior. Its doubled since the legislation came into effect on february 18, 2016. North korea ranked eighth, russia, iran, iraq, sudan and zimbabwe. Even the 30 sanctions increase after the decision passed the congress, north korea is only the fifth most sanctioned country by the United States so loyal they moved from an action to some action the Trump Administration had the opportunity to use to build the leverage on pyongyang and beijing. They designated the Financial Institution and this should all be the beginning. They have access to the u. S. Financial system. The report released last month by an independent organization identified over 5,000 Chinese Companies that are doing business with north korea. They are responsible for 7 billion of trade with north korea. Moreover the report found only ten of these companies controlled 30 of chinese exports in 2016. One of the companies alone was responsible for nearly 10 of total imports from north korea. Some of the companies were found in satellite offices in the United States. According to recent disclosures from 2009 to 2017 to use thanks to process at least 2. 2 billion in transactions through the u. S. Financial system. It should all stop now and it must stop now. The United States should not be afraid of a diplomatic confrontation for existing u. S. Law and fact it should be more afraid of congress if it does not. As for any prospect of engagement we should continue to let them know in no Uncertain Terms the United States will not negotiate at the expense of the u. S. National security and that of our allies instead of working with the United States and the community to disarm, they called on the United States and south korea to hold military exercis exercises. They must demand they first meet the denuclearization commitment that agreed to in the past and subsequently chose to violate. It is in both nations fundamental longterm interest. They want to work with the United States as a responsible Global Leader or bear the consequences of keeping him in power. I will turn over to senator markey as soon as he arrives but in the meantime the witnesses waited patiently for an hour to begin testimony. The first panel is susan fortin who serves as the secretary of state for east asia and Pacific Affairs and has assumed responsibilitresponsibility as l Deputy Assistant secretary in february 2016 after serving for a year and a half for the Deputy Assistant secretary for joined the state department in 1991 as a career member of the foreign service. Welcome and thank you for your patience and for being here. On this important issue for the United States and Regional Security i would say global security. The fourth Intercontinental Ballistic Missile test is only the latest evidence of the desire to threaten the United States with Nuclear Weapons. It constitutes a serious escalation of nuclear and Ballistic Missile programs. Our goal was to protect the country, citizens and allies died eliminating the development of Nuclear Weapons and the means to deliver them. The strategy to achieve the goal uses diplomatic, economic and other tools to build comforted global pressure on pyongyang to abandon the internationally proscribed Nuclear Programs. They understand the only path to the legitimacy Regime Security and Economic Prosperity is a denuclearized Korean Peninsula. There are three components to the strategy the first is un action in concert with our allies weve called on all un Member States to fully implement a strong sanction required in the Un Security Council resolution 2321, 2270 and 2256. We will continue to work to increase International Sanctions. The second component is the poetic action by un Member States. Weve urged countries around the world to take their own actions to express their condemnation such as suspending or downgrading diplomatic relations with north korea. Cordial ties with the country that threatens its neighbors and continues to violate the u. S. Resolution is completely inappropriate at this time. The Diplomatic Missions to generate and transmit the resources for its Weapons Programs. The third component is economic pressure. Weve asked all countries to cut ties as a way of increasing north koreas economic isolation and to prevent it from using the International System to support its illegal Weapons Program. The secretary has made clear in the meetings of its foreign counterparts but nations can no longer operate in a business as usual approach. Its the capitals around the globe. Mr. Chairman, we are not seeking the regime changed th change nok military conflict or to threaten north korea. The campaign is designed to meet the cost of the programs to exorbitant. As it has been said, we want to bring north korea to its senses and bath to its knees however we will respond accordingly to the threats against us for our allies and remain open to the talks at the dpr k. But it must first see his its Missile Programs and bring an end to its pattern of dangerous and aggressive behavior in the region. We are not going to negotiate our way back to the negotiating table. While our partners around the globe begin to take steps to increase pressure on north korea, unfortunately we do not see any signs that they are willing to engage incredible talks on the denuclearization at this time. We will continue to appeal to countries around the world to take action in opposition to the unlawful Ballistic Missile program to make clear that pursuing its unlawful programs will only increase its isolation. Its the most pressing concern we will not abandon the three citizens who have been unjustly detained by north korea nor will we be silent speaking out against the regimes egregious Human Rights Violations against its own people. They travel in, through war to north korea and we seek to avoid a tragedy like that family endured. In very specific limited circumstances, american citizens can apply for labor to travel restriction to allow them to perform humanitarian work. We do not wish to punish the north Korean People for the actions of the leadership and therefore plan to allow some exceptions to the restriction. We appreciate this and we look forward to continuing the cooperation in protecting the country from the grave threats O International stability. Thank you again. I just want to start with a couple of questions with the maximum Pressure Campaign do you think it needs additional tools the strategy we have right now the first is to make north korea the highest priority National Security issue that we are facing a calming and you have heard the secretary and the president and secretary and others speak to this. We are making this a Global Campaign and putting the onus on other countries in the International Community to examine the relationships both diplomatic, economic and financial trading and asking them to make sure that not only are they implementing the sweeping un sanctions regime thats already been put in place, but they are going beyond that regime to initiate their own actions to show the North Koreans they will not be able to seek solace or comfort in the community anywhere. This is part of maintaining a Global Network to show that we are unified in our efforts to thwart their ambitions. The third thing we are doing is working and putting the onus on china as you said 90 of the economies flipping through china in 14 or another and this is a departure from the approach is obvious you. Its responsible Global Player and really upped the pressure on the regime in north korea and make clear that they will only accept the north Korean Peninsula and are prepared to impinge on the north korean economy. The tools we have at hand for conducting the strategy had a bbravo for the already existi existing. Its sweeping the sanctions we can detect. They are violating the sanctions and have very Broad Authority to do so. Its keeping us from prosecuting a very active sanctions campaign both in the Security Council resolution and also in our own unilateral kind of designation secondary sanctions to be violated. Do you have what you need for both chambers in the commerce . Not specifically but we believe that is our position, yes. Have you had a chance to review the other pieces in the house or regarding the sanctions ive introduced with others in the Committee Legislation regarding north korea and the sanctions particularly relating to access and Financial Networks and systems. Could you comment on those pieces of legislation . Sure. Theres quite a number of pieces of legislation and we appreciate the interest of congress and this issue. What i would say is the authority that we have, again, i think they are quite sweeping authorities that were passed in the legislation from 2016, the enhancement act that you mentioned and the executive orders that followed gave very Broad Authority is to go after the entities that we find but are violating sanctions werent glasswalled or the un sanction. So the new piece of legislation in the various targets on the travel restriction or travel ban servers different aspects they touch on, and i think in general we appreciate the interest. The round of designations that you talked about sanctioning in the chinese Financial Institution and other measures of secondary measures, when can we expect the next round that included chinese entities and Financial Institutions. We have been working on coming up with a new list of entities that we think are violating and there is no specific timetable, but theres no specific hesitation to do that. We will be proceeding with those as soon as we can get the packages ready to go and get that sort of evidentiary area standards and legal standards met that we need to meet. Can we accept additional sanctions in the next 30 days . Said i would hesitate to predict the exact timetables but we will see something fairly soon, yes. Will please be presented to china or others prior to the enactment of the sanctions or will they be implemented immediately . We have been running conversations with china and other countries about information we have on entities and in some cases we try to coordinate own actions with them with local Law Enforcement to our Law Enforcement actions and in some cases we are not able to do that. I cant say specifically with regard to what we are considering, but we have done both in the past and we are not bound by any particular arrangement. When you see a report like this that shows the entities doing business with china, does that provide evidence that you can use and does that go into the conversation with the Chinese Government and what is the response . Weve had a number of conversations with my chinese counterparts and whenever we have a report like this, we bring it to them and they have done that. Usually they come back with some kind of a response to either follow up on or not. Usually, we definitely share that kind of information. And the testimony you talk and mentioned the Service Pillars of the strategy called on un members in the states to fully implement the commitment they made regarding north korea and the countries to suspend or downgrade diplomatic relations with north korea and hostile countries to cut i need code trade ties with pyongyang. Can you give an indication of the success of the request . How many member nations have suspended or downgrade diplomatic relations but you have requested to do so . How many have cut trade ties that we have requested to do so . We have urged everyone to squeeze the representation or downgrade if they can. There are a number of countries that have expelled the dpr kate representatives from their capitals who have diminished their presence of the Diplomatic Missions and to have expelled representatives of commercial offices or other entities that were transacting illicitly with the host government and that we provided information on. So, i cannot give you an exact number, but they are quite a number of the recalled to the diplomatic presence and we also have a number of countries responded to the call for diminishing commercial operations that are sponsored by diplomatic establishments, and i think that we have had for example germany has committed to take steps that was being run by the Diplomatic Mission provided revenue for the missions operation. We have a bunch of success on that as well. Within the coming week we will l publish the notice on the federal register. What we are proposing is a general travel restriction. That will be in the federal register for a 30 day comment to cope, and the proposal is fighting as you know to make u. S. Passports not valid for travel into north korea unless you get an application made for a one time trip and a license or permission to make that trip. So the humanitarian exemption is the purpose of allowing . He would have to make him in person application for the trip. Are we encouraging others to do the same and have others made the same decision . We have encouraged other people to make decisions about restricted travel and other because tourism is also a resource for the regime that we would like to see di