anyone really surprised that this happened at a donald trump rally? i don't think anyone who has been paying attention to republican politics isn't also surprised. the reason for that is that the people who hold these offensive views are part of mr. trump's base, and mr. trump will be the first to tell you that he has the biggest base of any republican politician these days. now, it is too bad that he was not able to summon the same kind of patriotism that we saw from senator mccain, who responded much more effectively and directly when one of his supporters at one of his campaign events about seven years ago raised the same kind of false claims. now, what is also unfortunate is that mr. trump is not the first republican politician to countenance these kinds of views in order to win votes.

in fact, that is precisely what every republican presidential candidate is doing when they decline to denounce mr. trump's cynical strategy, because they are looking for the same votes. other republicans have successfully used this strategy. one republican congressman told a reporter that he was david duke without the baggage. that congressman was elected by a majority to the third-highest ranking position in the house. those same members of congress block immigration reform, oppose reauthorization of the voting rights act, could not support a simple funding bill because they are eager to defend the confederate flag. so, those are the priorities of today's republican party, and they will continue to be and tell someone in the republican party decides to summon the courage to stand up and change it.

>> should donald trump apologize to the president? mr. earnest: i haven't seen any evidence to indicate that he is interested in my advice about what he should do. aisha? aisha: secretary kerry said in london today that military talks with russia regarding syria are an important next step. i wanted to ask, what are the plans for additional talks with russia, and at what level do you expect them to occur, and what specific issues does the administration believe need to be ironed out? mr. earnest: we have hinted for a couple of days now that we believe there would be some value in some tactical, practical discussions with the russians. about how to advance the goals of our counter-isil operations,

and how to ensure the safe conduct of those operations. secretary kerry did have the chance to speak to his russian counterpart today, and they discussed further mechanisms for deacon flexion in syria, -- de-confliction in syria. basically making sure the sil don'tf our anti-i come into contact with russian plans they may have had for syria. i thinkepeat one point is something i have said before but there's repeating -- one point i think is something i have said before but bears repeating, which is that russia has long had a military presence inside syria because they have essentially used syria as a client state in the middle east. they were an important part of propping up the assad regime.

we have seen the assad regime become isolated and lose its legitimacy to leave that to lead that country, and -- legitimacy to lead that country, and according to many analysts, lose its grip on power. we are going to continue to encourage russia to find a constructive way to support ongoing counter-isil operations inside syria. aisha: on a separate issue, today a chinese foreign ministry spokesperson said china is extremely concerned about comments from admiral harris that the u.s. should challenge china's claims to territory in the south china sea, both -- by patrolling on the artificial islands and china urged the u.s. not to take risky or provocative

actions. what is the administration's response? mr. earnest: i did not see the admiral's comments, so i cannot respond to those directly. i can say as a general matter we , have long encourage china to find a constructive, diplomatic way to work with other countries that have claims in the south china sea to try to resolve differences of opinion there. the stakes of resolving those tensions are not insignificant. the fact is, the south china sea is a significant area when it comes to international trade. there is a lot of international trade that goes through those waters, and it is in the interest in all the countries in that region of the world and in countries like the united states that have an impact on the global economy to ensure that those tensions don't interfere with the free flow of commerce.

so, what we has steadfastly urged the chinese to do is to engage with other countries in the region to find a diplomatic resolution to some of these differences. we are strongly supportive of the efforts of other countries to find a diplomatic resolution for the chinese. jim? jim: i know with respect to donald trump and what happened at the rally, i know you said those comments are a reflection of what it's going on inside the republican party, and certainly a donald trump rallies. i am curious if you think there is a more deeply rooted issue here. this has been going on inside this country ever since barack obama was running for president. what does it say about this culture in this country that this is still going on months before he leaves office? mr. earnest: think of first thing the president would say is

that there is a long history throughout american politics of a robust and in some cases quite tough rhetorical debate on a range of political issues. so, it's not the toughness of the debate that the president is concerned about. i think more broadly the concern is that we've seen a variety of leaders in the republican party countenance offensive views just to try to win some votes. that has had a significant impact on the presidential race, but it has also had a significant impact on the ability of congress to function effectively and to pass

legislation like immigration reform that has wrought bipartisan support across the country, would do good things for our economy, would help reduce the deficit, but it is blocked by republicans who countenance some of those views. i think that's the point here. this is a cynical strategy that too many republican politicians have dabbled in because for some of them it has proven to be successful. but there are consequences for it. there are consequences for their ability to govern the country. and there are consequences at the ballot box. because i am confident the voters are paying attention. >> apparently donald trump's campaign said he didn't hear the comment. what do you make of that? mr. earnest: that's not what he said. jim: hillary clinton said at one of her events that the obama administration -- keystone. she is going to let her feelings be known soon. what did you make of that?

mr. earnest: these keystone questions are some of the easiest ones i have to answer. fortunately, you all know the answer. there is an ongoing process at the state department that is consistent with the way these projects have been considered by previous administrations, and it is why that is the way this administration is considering this project. i would technology the consideration of this project has taken longer than previous projects. there are a variety of reasons for that, including some litigation by some people who would be affected by the construction of the pipeline that has delayed the consideration of this study being conducted by the state department, but in terms of timing of when this will be completed, i refer you to the state department. jim: shouldn't she know that about the process?

she was secretary of state. mr. earnest: i think she does, but i think she is also articulating a view that i have heard from many of you that you are eager to any answer. as soon as we have one, we will let you know. mark? on the want to follow up question of the china sea. i believe it was 2012 the last time more ships passed through waters there. there was a suggestion yesterday that the administration might send some more warships through those waters. what is the response to that? is it under consideration? mr. earnest: for those kind of operational decisions, mark, i would send you to the department of defense. that that is not something would happen without the president's say so. mr. earnest: i am not suggesting that the commander in chief wouldn't have the beat on that, but at least for questions about the last time this occurred, i don't have that him for made in front of me. the department of defense would

have that. what we have indicated is that it is important for these kinds of disputes to be resolved diplomatically among the parties who are directly involved, and the united states has a clear stake in the peaceful resolution of those disputes because there are significant economic consequences for some of those differences of opinion having an impact on global trade. there is a significant flow of u.s. products from the united states to markets in asia and other places around the world that traverse those waters, and we want to make sure that flow of commerce is not interrupted. it would have significant consequences for the u.s. economy, and that's the stake have an resolving it. i don't have a policy position to share with you in terms of any upcoming operational decisions about the deployment of u.s. warships in that region of the world. mark: is it a policy matter and warships through the waters to assert the right of navigation? mr. earnest: again, at this point, i don't have any additional details.

victoria. victoria: you talked about trump , muslim, oh, -- obama from a policy and political point of view. i want to address it more from president obama and how he feels about this personally at this point. does this annoy him? does it irritate him? does it amuse him? does it flummoxed him? is he upset about it? what is his response -- it has gone on for years now. mr. earnest: i think that for that reason because these are the kinds of questions that many of us have had to answer in a variety of different settings, including on places like buses beinga, that we are past particularly concerned about them. i think that the bigger concern

and i think the most relevant issue is the frequency with which significant influential players in republican politics continue to countenance these views as they build political support. that has consequences. consequences for the ability of the republican majority in congress to run the country to pass commonsense legislation that passed strong bipartisan support across the country but also in the way that voters thess the country view candidates under the republican party banner. victoria: why do you think the view that president obama is a be, if not seems to growing, staying the same? mr. earnest: i have no idea. ask about the

other part of the term controversy. -- of the trunk controversy. he said he did not hear the question that they mentioned muslim terrorist training camps proceeding has question, so they are saying mr. trump was referring to getting rid of these muslim terrorist training camps. does the white house have any views on these camps? are there muslim terrorist training camps in this country? mr. earnest: i have not seen anybody to produce evidence to substantiate the claim that there are, so i guess you could think the vast majority of of americans would take a rather dim view. hillary clinton, she campaigns of and she talked about the economy and she .elieves it is stalled

she used that word the couple of times. is the administration's view of the economy is stalled? it is not.: you heard the president talk about this earlier this week that our economy has made important progress since recovering from the worst economic crisis since the great depression. we are in the midst of the longest sustained stretch of private-sector job growth in the history of the country. progressou look at with job creation, the unemployment rate that has been cut nearly in half since its ago, ife or six years you take a look at gdp growth despite the volatility in the financial markets, even the market has rebounded significantly from the debts of the economic recession. what is true is that the president believes there is a

whole lot more that can and should be done to advance our recovery and make sure more middle-class families are benefiting from it. there is no denying that. of our principal arguments on my republicans should not follow through with the threat to shut down the government. there is also not deny that significant progress and momentum that our nation's economy has built up. that is why our economy -- >> are they pushing a view that this controversy to what you said? mr. earnest: not particularly. pipeline, thetone process of wanting to put the white house on notice so that suggests that it is the white house do they show deference to the president before she announces her view. is there any suggestion for her to wait to say what she thinks about this? mr. earnest: i have been given

the opportunity to offer campaign advice to the clinton campaign and i have a lot of colleagues who are slaving away on the campaign and they don't need advice from you. >> so the white house does not have a preference to when she makes a declaration? saying ist: what i'm she is entitled to make her own decision on what she says. jeff? jeff: you counterpart said russia would be considering sending combat troops to syria if they were affected by the assad regime. was that an issue discussed directly? broadly, on the outreach effort, in light of what happened in the ukraine, why do you find the dialogue with russia hopeful and why you think there is some reason for optimism?

mr. earnest: i do not have more details about secretary carter's telephone call to share with you. i think it is notable that the kind of military-military cooperation that we are seeking to restart here is cooperation at a practical and tactical level. different thanly the kind of military to military cooperation between the two countries that was in place prior to rush's inappropriate and unjust interference and eastern ukraine. our goal is to pursue this try andl cooperation to advance the interest of our anti-isil coalition and safeguard as much as possible the operations underway as a

part of that mission inside of syria. jeff: [indiscernible] u.n. officials are trying to organize a conference between the president on the day before they talked about climate change. formally know't the president's schedule, but do you know if you will be attending that? i don't have details about the president's schedule yet, but we should have more on that soon. that then say is united states and certainly the theident does believe that united nations will continue to play an important coordinating function in bringing the world together to make a significant commitments to fight climate change. there are talks that are scheduled for the end of this

year in paris where leaders and representatives of nations will come, hopefully ready to make serious commitments. united states and coronation with china has made some significant commitments. the chinese have made significant commitments to reducing carbon pollution. there are other countries like south korea and mexico that have so it isunced steps, the policy of this administration that those talks in paris could serve as an important capitalist for listening commitments from countries around the world, thus making an important contribution to reducing carbon emission, so there is an important role for the united nations to play and the united states has been playing a leading role in encouraging countries around the world to make significant commitments in the context of those talks.

we are strongly supportive of the process being run by the united nation's. we are taking an active role to ensure its success, but there is a lot of important work that needs to be done. we will have more details on the present itinerary in new york next week. meeting, you had said that -- [indiscernible] i am wondering if a requirement would be conquered? point, ist: at this don't have any contingencies to add-on. when we are seeking to do is to find a way to get republicans in congress to accept the invitation that has been on the table for months now to engage in bipartisan talks to track and resolve the budget standoff. we have taken what is a realistic approach to

acknowledge and the facts which is that republicans have put out these talks for so long that it is not difficult to imagine that they would be able to reach a bipartisan budget agreement before the deadline. the president's opposition to isking in the sequester steadfast and that is why i would not envision the loan extension oflong funding at current levels but rather enough time for congress to convene the talks, reach an agreement and implemented a boarding a government shutdown and ensuring that -- avoiding the government shutdown and ensuring that are priorities are correct. briefing,erday in the

is going ont what with the training of syrian wasls was an indication wrong [indiscernible] is secretary clinton one of those people after admitting she was wrong? the point i am making is there are some and i would not put secretary clinton in this category, but there are some that would think this is the only necessary strategy for success in syria. i will let secretary clinton describe her position, but i think that -- i feel confident was inng that while she office and serving under the president, was supportive of the kind of multilayered approach that we have been pursuing inside of syria and that is

everything from airstrikes in support of operations on the support for opposition groups inside of syria that have made important isil, trying tot prioritize the counteraction and shut out the strategies that are theirs the fund activities. we have been working with allies and partners to try and stop fighters in syria. this is a strategy we are trying to implement. one aspect has been a training and equipment operation. as i mentioned earlier, that is something that has proved to be even more difficult than we expected. despite cooperation from other countries in the region.

i think the reason i excited this is we have frequently found that are most ardent critics, when it comes to the situation in syria, have very little to say when asked about alternative policies that they think would work better and the most frequently mentioned one is typically a backward looking suggestion that we should have at an earlier date been more aggressive about providing arms to fighters and to train and equip more of them. the president's view is it would have been unwise to provide the kind of assistance without overly vetting and getting to know the individuals who would be receiving it. and that there are good historical lessons to be learned about the value of being responsible when provided that kind of assistance.

byron?b byron: there is an independent report that says [indiscernible] and they said the report had it is aant flaws and potentially unsustainable capital budget. can i get the white house response? read thest: i have not report but i heard it is some 1400 pages long. i don't have a conference of response but i will say that the president has made it a priority to ensure that american veterans are getting the kind of health care and benefits that they have earned. and theident ministrations has implemented a variety of reforms, including the nomination of the v.a. secretary, someone who has experience in the private sector when it comes to customer service and understanding processes and operations to try

and streamlined and reform the rocesses at the v.a. the early metrics of the reforms he has put in place are encouraging and we have made important progress. and secretary mcdonald and other senior officials at the v.a. are not going to rest until we have accomplished our goals, making sure all the veterans are getting the kind of care and benefits that they deserve on time. byron: i know you asked this you refer to the transgendered capital activist will be here at the white house for the pope's visit. are you trying to make a statement by inviting these folks? is the white house planning on raising lgbt issues with the pope? mr. earnest: byron, i think the goal here is to invite up to 15,000 people to the south lawn

of the white house to welcome the pope to the white house. there has been overwhelming interest in attending that ceremony and we have forked with religious organizations including catholic organizations to distribute tickets to that event. we would expect a wide friday of americans who are enthused about the opportunity -- wide variety of americans who are enthused about the opportunity to see the pope and i think that reflects the pope's stature and significance of his visit, and the way that he has inspired so many americans, including a bunch of us that are not catholic. i would expect that there would be a diverse crowd on the south on of the white house to attend the ceremony. i think the diversity of that

crowd perplex the diversity -- of that crowd represents the diverse of people who are moved by the teachings and actions of this pope. byron: you said that the power will longne electric to congress. did the president proposed limiting the commerce department and if he supports that plan, what agency does he think that power belongs to or should belong to? mr. earnest: i believe what the president proposed several years ago is merging the commerce department with a number of other government agencies that have what you could call overlapping jurisdictions. this is a process that got started over at o and b to take a look at this, but we have come

into some pretty stiff congressional opposition to putting in place what could be described as commonsense reforms. the goal of making those changes is not to shirk governmental responsibility like determining policies about oil experts, but rather to make sure that those policies are made and .oordinated more efficiently that was the goal. it has not made much progress and faces stiff opposition from republicans. go?n: reverend exports -- where would exports go? mr. earnest: i have not looked at those specific proposals in quite sometime. i don't know if there was a proposal to move it to an existing agency or the authority would reside in the newly reformed agency.

mark??? mark: you mentioned the business roundtable speech, in the speech, president obama stressed the deficits have come down on his watch. the extent totion which the national debt has risen. you rarely mentions the debt. is that an oversight or does he not fear there is a heavy burden on the economy? mr. earnest: i think what most economists and the president are focused on his the sustainability of the debt. that is why we have been focused on driving down the deficit to try to get to a level that is sustainable compared to the overall size of the economy. that is the case that we have regularly made. is the best way for us

to pursue irresponsible budget approach is to make smart spending decisions that reduces the deficit down to a sustainable level without shortchanging the kind of investments that are critical to economic growth. that economic growth is significant to preserving some fiscal stability and we have made remarkable progress over the president's tenure in office in reducing the deficit by nearly 2/3 at this point. mark: does president obama believed that is sustainable -- that debt is sustainable? mr. earnest: what economists have told us is that getting this debt level below 3% does sort of put us on a sustainable tojectory and will allow us

continue to make smart investments we know are critical to economic growth while at the same time ensuring that we are making responsible decisions. mark: in an interview this week with "60 minutes," the president was asked about the chant of iranians used to america and he said it is not aimed at american people but american policies. do you believe that or give you any source of comfort? mr. earnest: i have not seen the entire interview at this point so i will withhold judgment until i get a chance to see the interview but i think it airs on sunday nights. there is the free plug. [laughter] kevin? quick one on the unga. you talked a little bit earlier about making agreements with china on climate change. have you made any headway in conversations with other emerging large economies like brazil and india ahead of paris?

mr. earnest: i don't have an update on status of deliberations in those countries. we have been quite clear that when the president has met with the leaders of those countries that this is an issue highly on their agenda. the president traveled to india at the beginning of this year and climate change was among the topics that was discussed between the two leaders. you saw at the news conference that president obama convened with the president with a talked about the importance of continued u.s.-brazilian cooperation when it comes to steps that would address, change and reducing carbon pollution. these issues are certainly on the agenda at the presidential level and i know that there are other conversations between officials and our country and those countries that you mentioned about topics that are ongoing. about we have also talked so-called manipulation of intelligence information.

we heard from the health of the intelligence committee that he believes as far back as 2012, intelligence may have been manipulated. any response to that? mr. earnest: what we are focused on his facts and evidence and that is what the inspector general has taken a look at. i will withhold judgment on that until the inspector general's work has been completed. i will restate the principal that i have stated before -- this president and senior members of his team are not interested in cooked up numbers or doctored facts. they are interested in ground what willuse that is best serve the policymaking and decision-making process that he takes quite seriously. noin: without qualification, one in this administration exerted pressure on anyone at the intelligence level to shape or create an environment that was in any way inaccurate? mr. earnest: i'm not aware of

anything like that and certainly the president would not approve of anything like that but i don't think that is the acquisition -- the acquisition that he is investigating. the defense inspector general is considering actions that may or may not have been taken by a range of officials in the department of offense. -- of defense. i don't think there have been against whiteade house officials. kevin: they said they would impose new legal requirements related to the provision of abortion services in certain circumstances which would likely have a chilling effect, reducing access to care. that was a statement you all made about the born alive abortion survivors protection act. i just wanted to ask about your statement about it would likely have a chilling effect on access . do you have any empirical evidence to prove that or is there something you are pointing to specifically that you can say that is what happened?

mr. earnest: i do think that is the assessment of money public health professions who have taken a look at this, essentially this kind of legislation could serve to put some help to providers out of business. those are health care providers that many families rely on on a regular basis. we can refer you to a health care expert that may have a more specific explanation. kevin: because it is friday, a sports question. how about that lost to the broncos last night? any words for the downtrodden folks in kansas city suffering what had to be a brutal loss? mr. earnest: i think brutal is the way to describe it. it was quite disappointing. i thinkould say is that it is after tough bosses back characters are revealed and i think we're going to learn a lot about this team in the next

couple of weeks and have the respond to it will give us a good indication of how optimistic we can be about the rest of the year. we will be tuning in on monday to see have a pair against the packers. . chris? chris: [indiscernible] let me ask about the meeting yesterday when they came out and nancy pelosi suggested she was optimistic about a budget deal and harry reid kind of joke he is always on the other end of the spectrum. i wonder where the president is. is he closer to nancy pelosi? right now, the president is in the mode of trying to find some cause for optimism. chris: successfully? mr. earnest: i think it is still a work in progress. we know, and when i say we, i

don't just mean the president and me, anybody who has been observing the budget battles over the years, we know how to solve this problem and we know what it takes to avoid a government shutdown and to make the kind of bipartisan compromises that are so clearly in the best interest of the country and our economy. the best way to reach those compromises is for democrats and republicans to sit down in good faith and broker a compromise and it will yield a compromise that i feel confident in predicting will have the same me sayinge -- had things like it is not perfect but the president knows it is good for the economy. my counterparts on the other side of the aisle can say the same thing. that is what we are looking for. we're not looking for the perfect piece of legislation that the kind of bipartisan compromise that prevents the government shutdown, adequately funds and national security priorities, and makes sure we're

not shortchanging investments medical to the success of middle-class families. that is the recipe, the package and it should not be too hard to find bipartisan common ground. i would a knowledge the devil is in the details and we will have difference in opinions on how to implement priorities, but if you are guided by priorities and the best interest of american people, then a budget agreement should be achievable. i think that puts me in the optimism category. house is scheduled not to be in session a lot of the time, do you have any doubts it will go down to the wire? mr. earnest: i think it is typical congress that they will wait to the last minute to make a decision, so i would not be surprised that we are one day before the deadline and we are still waiting on passage legislation to avoid shutdown.

what we are interested in as leader to losey and leader reid indicated, we are willing to go a short term cr to give members of congress time to negotiate a budget agreement, but it should not require that much time. the willingness on the part of republicans to sit down at the negotiating table at democrats and that is something they have refused. president tweeted about the 14-year-old muslim boy inventing a clock and he sit at the podium and talked about people examining their conscience and prejudice. i wondering in refusing to make any comment when the audience member said what he said yesterday, did donald trump show prejudice? mr. earnest: i don't think i

will opine on that. i think what he did show is a willingness to countenance the offensive the is of at least one member of his audience in order to try to and political support for his campaign. we have seen far too many leaders in the republican party successfully use that strategy in a cynical way. this -- pursuing the kind of strategy has consequences and it has consequences when it comes to trying to govern the country and it has consequences when your name is on the ballot and you are being considered by the voters. >> [indiscernible] the have invited all of the leaders for the head of the summit that will take place at the beginning [indiscernible] with the president attend the summit which he is scheduled for? mr. earnest: i don't have travel

plans for the resident to announce yet. you heard me earlier when i talked about how important the president and the administration believed as climate talks are, but i don't have any updates on the president travel schedule. >> do have information? mr. earnest: no. i think the president is hopeful about the prospects or the summit but it will require hard work, the series commitment on the part of countries around the world to this effort and their is a lot of important work to be done. as it relates to the president travel, i don't have updates. steve? steve: secretary of state john kerry is talking about not having a long-term president of assad, i'm wondering if our president would consider that to assad is still

president of syria when the president leaves office in 1.5 years, would that be long-term? is there any area where he could countenance? ultimately, the view of our policy position is simply that president assad has lost legitimacy to leave the country. because he has shown a willingness, even a propensity, for using the military might of that country to carry out terrible acts of violence against syrian people. the kinds of atrocities that we have seen our stomach turning and it has led to a whole domino affect the consequences that have greatly destabilized that region of the world. we have seen extremist groups, including isil but not just operate more freely, we

have seen millions of syrians flee their homes trying to escape violence. many of the syrians are inside syria but internally displaced. williams of others have had to leave the country entirely -- millions of others have had to leave the country in search of refuge. areof those terrible things consequence of president assad's failed leadership and that is why four years with administration's opinion has been that he should leave and that is why the administration has acknowledged have our activities inside of syria, which are critical to our strategy for degrading and andmately destroyed isil critical to protecting the american people, we know that the solution is a diplomatic one that brings about the type of political transition inside of syria that is long overdue. a more putting in place

stable, effective, and legitimate leadership inside of syria are we going to address the root cause of the problems that are plaguing the middle east. steve: given that i have heard similar statements for three years or four years now, [indiscernible] complete failure of the mission that hasere anything given the white house confidence that come january 2017, he will not still be in power, propped up by russia [indiscernible] ? doing inanything he is revamping the strategy that would get assad out of power before then? mr. earnest: the president has

acknowledged that our involvement in the anti-isil coalition is a long-term proposition. he is mindful of the fact that we will make progress and we have. including on the ground in syria, but we have sustained setbacks. what we have been focused on his to try and take the steps that we believe are necessary to protect the american people. l to projectduce isi power into iraq and destabilize the country. but we have been very supportive tothe u.n.-led effort facilitate the political transition inside of syria. there have been a number of starts and stops associated with that diplomatic effort and we have not seen it get the kind of traction that we would like to see. the united states remains engaged in that process charlie supportive. steve: is there any tangible

, whether its new force thatmoderate could change affects on the ground or boots on the ground that you have a knowledge in anythingve we seen that would give us knowledge that vladimir putin who was sending planes to syria today, that would change their comments? is there anything tangible? [indiscernible] mr. earnest: i think it has been profound changes inside of syria in the last year. lastthe -- all within the year, the president built an anti-isil coalition of more than 60 nations, that includes four or five muslim majority nations carrying out airstrikes alongside american military pilots inside of syria.

we have seen effective coordination with syrian arabs, syrian turks -- i'm side, syrian kurds, and other local fighters on the ground that was supported by the coalition, including military airstrikes, has succeeded in moving isil off of some area that was populated that they previously controlled that they can no longer freely operate. there have been strides that have been carried out by the u.s. military, including one operation inside of syria that resulted in the death of a senior isil official an expectation -- exportation of large reams of information that have given us more insight into operations inside of syria. importantde a lot of process in building relationships inside of syria by working closely with those that are operating on the ground and that has resulted in isil

sustained significant losses on the ground and among the ranks of leadership. steve: i'm asking about assad and i imagine assad sees those reports and is cheering them on and allowing [indiscernible] isn't he happy we are bombing isil? they hate assad, too. you said that you are ok with russia taking on isil but not propping up aside. -- up assad. i both bins of reality that the carry on the bombing? [indiscernible] mr. earnest: we had long knowledge -- acknowledged that there is an impact or connection between these two policy goals that we have articulated. the first policy goal is that assad has lost legitimacy to leave the country and the second is to degrade and the story

isil. those things are not related. that the mostis significant urgent destabilizing aspect of this crisis situation inside the syria is the growth and continued violence that is being carried out by isil and that is why you have seen the focus on our military actions, including military airstrikes against isil, coronation with ground forces, taking the fight to isil, shutting down their financing and extend the flow of foreign fighters -- that is why that particular priority has attracted a lot of interest. it has not diminished in any way our interest in trying to bring about the long overdue political transition needed inside of syria because we know our ultimate success in degrading and ultimately destroyed isil will require legitimate and effective leadership inside of

syria that reflects the will and ambition of the syrian people. steve: are there any responsibilities that the strategy has not worked? does he have some regret and that he should have found a better solution that would have created a situation reflected -- mr. earnest: i think you are highlighting that there is a lot of desire, particularly the president's critics, to suggest the must of syria is the fault of the president of the united states, but they do that without offering a recommendation about what the president can or should do instead. the one thing that we frequently hear from people is he should really have invested significantly more in the criminal operations -- in equipment operations. frankly, that was not going to

be the smart strategy and the president said it be effectively integrated with other elements of our strategy. what the department defense continues to do is to evaluate the program and determine what sort of changes could be made to the program so we can get some better results. richard? richard: i want to go back to the teenager invited to the white house. there is another teenager in georgia which was more popular on youtube who criticizes the president and he has a pro-muslim feiss saying that [indiscernible] this woman in california was ultimately killed by an illegal immigrant and her family was not invited but he is a muslim and he is invited to the white

house. how does the white house react? mr. earnest: i have not seen the video so i hesitate to comment in any direct way. the families of police officers who have been killed in the line of duty, the president did speak at the peace officers memorial at the capital earlier this year and had the opportunity to greet many families that were honoring the members of their loved ones who had been killed in the line of duty. the president was proud to participate in that ceremony as he has in years past. you repeated several times in your briefing that the republicans have successfully used that strategy. so they are successful in using works does that say it and there was something right? mr. earnest: it certainly has for mr. trump. richard: the american people

feel there is something there. their message has not been able to break this impression that muslims are gaining in the u.s. that the president is muslim and all this. is there success, that you acknowledge, is because [indiscernible] mr. earnest: i think what it is is that we have seen a variety of leaders in the republican party, including the third-highest ranking republican in the house of representatives, engaged in a cynical strategy to win votes and in many cases by countenancing the offensive use of -- views of the minority in this country has succeeded in building large and durable basis of political support. that is a fact. the problem is that there are

consequences for it. those consequences take a variety of forms. one of them is in the approval rating of republicans in congress. another is that peace is a commonsense legislation that the vast majorities of americans would be good for the country, that republicans are not able to pass and actively block, like when it comes to immigration reform, and i know that the truth is the kind of people that can speak to this probably more persuasively then i can are the leaders in the republican party in washington, d.c. at least one of them commissioned a report after the last election to try and figure out how to solve these problems. questions on the impact the report has had, but the fact is there is an

awareness among some of the republican party of this significant problem that they have. that this cynical strategy has yielded short-term benefits for some individual leaders in the republican party, but there are consequences. laura? that theu are saying cynical approach to win votes, is it the strategy? think it is a strategy to countenance offensive views in an effort to crack -- to try to curry favor with some segment of the voting population. it is clear that is what mr. trump was doing, but it is also clear that is when his competitors in the republican primary are doing when they refused to denounce his cynical strategy. there is a significant challenge that is resting with the leaders of the republican party right now and it is clear what their priorities are.

if the leaders of the party or members of the party are interested in changing it, it would require someone to summon courage and stand up and speak out. laura: [indiscernible] president i the think has spoken to this on a number of occasions, including a speech he delivered in cairo in his presidency. even presidentat bush, over the course of his presidency, went to great lengths to make it clear that the american people in the west was not at war with islam. evidence that we have gathered from some of the documentation that was recovered in osama bin laden's compound that the successful -- that successful messaging was undermining the strategy of al

qaeda. at the strategy of al qaeda was predicated on, starting a holy war between muslims around the world and the west. president bush deserves credit from a strategic perspective but also from the perspective of values that the vast majority of american people share. presidential -- national presidential elections that some ofarent the leaders in the public and party now are pursuing a different strategy. fred? you talk about the cynical strategies among republican leaders and you mentioned donald trump's speech. who are some of the others that are engaging? mr. earnest: i want to ascribe

some blame to mr. trump's competitors. fred: in the gop presidential field? mr. earnest: those who have refused or declined to announce his cynical strategy. they are doing it for the same reason he is which is winning votes. and said to him the same thing that donald trump heard last night. and senator mccain had a microphone to from the person to that is a testament senator mccain's character and to the questions that are facing republican party at this point.

>> among the united states refugee population that is now making headway through new york, oft there could be members eyes, or those organizations whose main objective is to get a foothold in europe. mr. earnest: i think our intelligence officials could give you a better sense of how significant that risk would be. i made quite clear that in terms of the refugee resettlement process that the administration at this country has long been includes the thorough vetting of the backgrounds of that individuals to ensure the safety and security of the american people is not posted to at risk.art two

>> there is some thought in the , there isnion union concern that the basic premise will no longer hold and that the eu in fact will be in jeopardy which could cause our numerous ramifications for the u.s.. mr. earnest: i have merely observed that the scale of this challenge in terms of the hundreds of thousands of people that we're talking about is not something that can be solved by one country in europe. in order to successfully confront and challenge they will have to do with have done in the past. effect that we cooperate in

terms of new planning policies to deal with this difficult challenge for hopefully they will do that. it seems like a lot of the regulations that you announced that the economic reforms are overdue. engagement -- be going to use that leverage here? mr. earnest: it sounds like that is what the secretary of commerce did, she should do that. the cuban people now have an incentive they did not have before to clean the performance so they can take advantage of the opportunity that the is anended to the this is

opportunity that comes at the expense of the american people, it is when the verdict people can benefit from as well as the united to government, including the area of congress, will continue to press the cuban for the kinds of reforms would believe are long overdue. >> would you go further than these rules? think west: i do not have seen those processes significantly improved. to believe that congress should lift the embargo, but there are policy changes that the administration that would normalize relations between our two countries, enhancing engagement between our governments and the people.

the middle of the week ahead and i will let you get started on your weekend. the president with the first lady, as dr. biden will greet his holiness, pope francis upon his arrival here in united states. on wednesday they will come pope francis to the white house. the president of the football continued dialogue they begin on march 20 14th. caring for the marginalized and sterling as good stewards of the environment, promoting religious freedom around the world and emigrating refugees into our communities. hisontinues this during first visit as hope.

on friday the president first lady will welcome president she thinking -- the chinese president. opportunityent an to expand u.s. china corporation on a range of global, regional, and bilateral issues of mutual interest. they've also address areas of disagreement constructively. on sunday the president will begin participating in the united nations general assembly. there is a plan for a news conference here in the white house and will have more details about timing and format on friday. have a good weekend everybody.

>> the pope's upcoming visit to the u.s.. coverage frome washington, the first stop on the twour. president will have a welcoming ceremony of the south lawn following a meeting with president obama. from the pope makes history on capitol hill, becoming the first pontiff to address the house of representatives and senate in a joint committee to follow all of the coverage of the store conflict wash could -- of the

pumps historic visit to washington. at his senate confirmation hearing, he discussed nuclear agreement with iran and how to cut off funds for terrorist is just over an hour. >> the meeting will come to order.

mr. zukin will be the third undersecretary. the undersecretary reports directly to the secretary. this position is responsible for executing dual mission of combating terrorist financing and letter laundering oil overseeing horsemen of the nation if all the sections program. the undersecretary also receives a number of separate enforcement , the office of foreign axis, control, the office of intelligence and analysis, the treasury executive office of asset forfeiture, and the financial crimes are spent network. comes to the undersecretary's office with more than 14 years of government experience. he has participated in several international negotiations, including recent iranian deal

that is being considered here in the senate. ironically, the nominee who has helped us some added force the most comprehensive sanctions architecture against the world's leading started sponsor of terrorism may now be test by the president with dismantling a lot .f it hear i believe today's hearing is both important and timely. you mr. chairman. he has served in both democratic and republican administrations. he is eminently qualified for this position. wifecome his children, his , his parents, and in-laws.

before i described eatbin's grary qualifications to talk about nominations. by contrast, in 2007, the seventh your review administration, when senate and white house control will also divided, the banking committee held three nomination areas before the august recess and the senate confirmed more than a dozen nominees coming out of this committee to giving officer concerns around terrorist financing, you would think that this nomination would be a priority.

his nomination was confirmed just three weeks after nomination was sent to the committee. tookmmediate predecessor us 2.5 months to consider. some of the pending nominees have been waiting since january or hearing. children will probably move them to the committee process until to the senate floor for consideration. that said i am delighted that undersecretary szubin is here to talk about the critical role of the treasury department and the u.s. governments broader approach to terrorist financing. dual lanes of safeguarding financial system against illicit use and combating rogue nations, destructionof mass proliferators. 15 years he has

distinguished himself as a top portion -- and four serve our nation sanctions and laws. after earning undergraduate law degrees with high honors, he was a fulbright scholar in israel before joining the department of justice. he served as counsel to the deputy general. special commendation award for his work counterterrorism. from 2006 2 2015 he turned the office of foreign assets control. the anti-defamation league endorsed him as an intellectual have one weight -- heavyweight who is worked with global created that has

progress. in the original right hand -- will you stand and raise your right hand. do you promise to tell the truth, nothing but the truth, so help you got? d? mr. szubin: mr. szubin: i do. >> your written testimony will be made part of this record admits entirety before you begin your oral remarks. to introduce your family members in attendance today. mr. szubin: thank you. i would like to introduce my amazing wife. mother, my

mother-in-law. i want to thank my wife for her unwavering support over the past two years. this job can be a difficult one. and i cannot have done any part of it without her. >> you may proceed as you wish. an art to be ais before this committee today. i am honored to have served as undersecretary of treasury for terrorism and financial crimes. i want to thank president obama for the confidence he has placed in me, and the secretary for his recommendation and support. i do not take this opportunity for granted. it is not take for granted the fact i have been allowed to serve my government at all. 16 years. my father was born in poland in 1933. at parents fled the nazis the outbreak of world war ii and

were captured and sent to serbia where they live out the war years. eatwas a place of gr hardship, but it saved their lives. there are today, just a few remnant of a family that should have numbered in the thousands. to beents raised us vigilant against people in the world. not as an abstract concept that is an all too real threats they had seen in their lifetime. we were not raised in an environment of fear, anger, or sadness. raised to save her life, seek of joy, and enjoy the many just given to us. high have on these gifts were the ability to grow in america. my father has never stopped marveling at this country, and our late constitution, our legal system, our openness to immigrants, our work ethics, and are distributed -- that we can

improve the world and leave it better for our children. while it is not a surprise that i thought i a career in government service, i have it in may that this -- been amazed childhis permit a loaded the burden berger to ship or vessel security policy. this is a country like no other. 11 years ago i followed stuart levy, my mentor from the justice department when he was named the undersecretary. recently, the acting secretary for the last six months, overseeing the more than 700 exceptional individuals that make our nation what it is. created tf five to bring together under one roof array of capability and technology to confront our

adversaries on the battlefield. nonetheless, i believe the office has accomplished amazing things in a short history. the conventional was done in schools was that sanctions, denied not work as did not and could not work. was seen as water, always moving downhill. i do not hear that as much anymore. that smart seen resistance can strangle organizations, shake regimes and change their behavior. been key players in broader efforts against terrorist groups. we continue to have so much critical work ahead of us, but every bank account frozen, every charitable fund exposed, every

procurement company neutralized, and every fundraiser deterred strikes a blow to these groups. the world's financial system is in every arena and on every continent more transparent and resilient than it was. in the field of human rights we abuse.to combat in the arenas of narcotics trafficking and money laundering, we have dealt with powerful cartels by exposing and bankrupting their financial holding companies and money hitting themnd h where they heard most, their wallets.

when we saw a rush of violate ukraine's territorial sovereignty we worked with our allies in europe to revise a powerful set of sanctions that no worldly when after the key cronies and businessmen surrounding president clinton, but cut off some of russia's largest space and energy companies from the things that they depend on, western technology and western financing. contexts, our goal had not been reached. tsi created a strategy to intensify the pressure against the government of iran, due to a range of concerns that have a nuclear program chief among them. in 2010 congress, with his

committee at the center, advanced the effort to pass a asartisan measures that screwed its foreign reserves, and ensure that the leaders name that it would not recover after it cut off pathways to a nuclear weapon. culminated in the diplomatic process that reduce companies a plan of action. the women and men of my office have worked incredibly hard over the past decade to build a to enforce these measures and to combat every effort to circumvent them. even as we extend our nuclear sanctions, we are simultaneously running a battery of sanctions on activity outside of the child. fule. ile.

iswill be building pressuring" version with our partners in europe, israel, and the goal. none of these successes would have been possible without strong bipartisan support from the house, senate, and members of staff of this committee. intend to build upon the close relationship we have endured of this committee and take upon the pressing challenges ahead and i can also submit to you that if confirmed i will not rest. i sent in a skiff every morning to read the latest intelligence on the latest threats that we face. we need to be diligent and as the bestnd landscape of all's i am confident that we will remained forefront of our government's efforts to protect our national security. thank you for your time and consideration. i will be glad to answer any questions you may have. been acting as the

undersecretary since february of this year. agreedr testimony you with the former national security advisor that we can expect some portion of the current frozen assets to fund more terror and other illicit activity. you have concluded that the financial intelligence needs to ramp up its efforts to go after illicit funding. how would you lead the ramping up of such efforts? mr. szubin: thank you. campaignbviously a key is removed forward. when i was spent a lot of arsenal time on. there are a lot of aspects to this effort. lot overone quite a the recent years.

over 200 companies and officers are sanctioned. those sanctions, fixed of congress have extraterritorial effects, by which i mean for who dos who do anyone -- business with anyone on that risk do so at their own hurled. continuing to go after the officers and networks of these terrorist proxies, we have a lot to do in terms of outreach to will medically a when i talked to officials in the gulf, i expect it will be to those countries, i hear a different attitude. i think there's a real opportunity there to harness that attention and use it to disrupt money flows which have been going through places like to buy and banks in the region.

we continue to work very closely with our counterparts in israel and when the to do more with europe and beyond. of 2011, thember entire rainy and financial financialiranian system has been quoted as a primary money-laundering concern for reasons other than nuclear proliferation. the task force has also issued numerous global warming on the money laundering and terrorist financing rings. it is my understanding that most banks will receive sanctions under the iran deal. there topect that center financial practices will continue, and what are your greatest concerns? thatzubin: i want to note the finding that has been issued remains in place, and is not

affected by the jcp away. section -- sanctions remain untouched. access the financial system. the remains off-limits of all iranian banks, whether on the list or off the list. seewith respect with how i their banks perform a behavior than coming months, it remains to be seen. de is very clear to the leaders that if we see any ,anks removed from the list they will find themselves back on the list. the iranians, i believe, understand that. we want to see how they behave. the choice is theirs. >> sanctions are crucial to u.s.

policy. i worry that the u.s. government is not taking the maximum advantage of these tools. when the eu about maximizing sanctions in the future, i think that we need to approach sanctions policy from both a time to call it a strategic basis for long-term planning and contingency scenarios. in your opinion, how can the government organize itself better in a strategic and contingency planning for sanctions? it is a question we have to ask ourselves continuously raid having been a part of tf five from the day one. i have seen a default. i think some of our greatest strides have come in our intelligence. it truly is unique in the world. i do not know finance ministry in any other country that is focused on using our financial

expertise and our financial information to be able to track illicit flows. it is an area where our analysis has gone so much more sophisticated and is drawn upon by policymakers on a regular basis. but in terms of what we can do to improve, the larger term strategic thinking is critical. the world has taken notice of how powerful these tools are, and we see new and more adaptive to eggs we see efforts to try to turn them against us. we are be very careful of how we use these tools. we also have to be prepared to combat them, should be seeing others tried to draw on the same tools to weaken our national security. >> senator brown? thank you for joining us. you of one of the most fickle jobs in the city, serving text. read what i think about the none

-- and the number of hours, time away from your family, spatial fixed your children who i know you miss and you traveled the world especially during the iran and negotiation but so much effort into this. thank you again for that right thank you also in meetings i , for yourith you response including proactive efforts to enhance and expand prescriptive like, proactively to address the issues of orion financing terrorism. the couple of questions. ofnow they have a lot security responsibilities within their portfolios. i would like to get your

description of the priorities of how weak the broader government efforts on illicit finance. mr. szubin: in terms of my --orities for the offers office going forward, around is at the forefront is not just making sure they are dealing agreements, but nonnuclear low that i mentioned in my opening statement. it has to be right at the forefront as well, particularly, are efforts against isil which have posed a very serious challenge in terms of cutting off its financing. when you look at a group like basil compared to a group like al qaeda, the financing challenges are night and day. given the territory that they control, their ability to extort from people's territory,

and the ability to full on the dental resources it is a huge challenge. it is something we're not just focused on the other members of the u.s. government, but you -- but it international coalition. constrain ando defeat i saw. i those we would cyber which is a threat which has grown more and more prominent and more or worrisome. hereto, sanctions or are one part of the strategy. law enforcement of missy and intelligence, we have enough polaroid tools would now have sanctions to rules will. lists -- see the malicious actors, we do have to use the prevent and deter bad activity.

>> i want to ask a question a bit more broke real. theet several times to respective remittances of somalia and the second largest inmunity of somalia columbus, ohio. provide been working to such reckless somalia government to build capacity in this area by remaining about this issue. can you committee an update on the treasury's efforts in this area and don't progress toward restoring a free will from some us ins in colomb minneapolis to those in africa? mr. szubin: i was just in

minneapolis last month to meet with the community, to meet leaders, and they are very worried. one thing i will say is that the fund flows have not stopped -- stopped. they see a pattern, but at this point i told the journal that the funds continue to flow in the remittances are already in the maleic, but the situations are far from ideal the worries are not above the recruiters in the united states. they are concerned with terrorist financing that goes to the money was to get to somalia. that is intense and counting -- because there's no regulatory system when it comes to oversight over matters or banks and somalia. the ability to restore

will love those remittances to flow more easily is going to depend upon the efforts of the prime minister. i have the opportunity to speak with them too. he is undertaking a very serious that. stay department of the treasury hartman are going to do everything we can to assist 10, to build strength and inspire confidence. >> senator corker? >> thank you. thank you for your service to the country. i very much appreciate you telling us a little bit about your family history and your family support, and i have had tremendous respect for what tf i does the 700 people you work with there.

in spite of the great work that you have done, and others for you, i think you understand there is a bipartisan majority here that feels that not to you my but the administration squanders those efforts. instead of ending the in nuclear we are along for the industrialization of the program. many of us here, we are very does way. press then he said he wanted to do, which was to end .he program that expireprograms

at the end of 2015. since the snapback provisions that were negotiated as a part of the deal the fact that there have to be to, that is that back she would be very supportive of us extending isi immediately so that the locations are there to snap back to. mr. szubin: thank you for your kind words. i cannot agree more about the talented many women in the office. you're right, i'm not a diplomat. have the opportunity to participate in a number of rounds, and i believe a deal to be a strong one and two achieved the president's objective of closing all the pathways for ron to obtain a nuclear weapon for 15 years and beyond. and would be good if you did not really talk about that. the fact is, the president said

they would end nuclear program, and we did not do that. we are agreeing to industrialization and they involved in miracles over time but always is it is capitulated an. what i would like to hear some wiccan reauthorized with your some more, sanctions that were in use -- in place and do so immediately. mr. szubin: using the full andrage of snap backs, entirely in line with your own, we need to have the leverage in order to punish breaches that occur. with respect to the iran sanctions act from it does not fire until the close of next her, and the administration position has then that it is a mature to bring out the sunset of the renewal until we get to the timeframe.

leads us to believe that there are concerns that you have made commitments to iran that is going to not be the case. the gives always good to have it for certain. will rush is to create uncertainty. back to this, think it would be very good for the world to know that the site going to that provide certainty. that supportive if we were to pass those are the next 60 days, the sanctions taking place. mr. szubin: the certainty is there. will remain of it

full effect, notwithstanding any attempts to renew it early. i know you're reciting company line life, and i'm grateful that you against you. i wish you would quit reciting the company line. really, should really bipartisan way, i think we could pass it strongly. that in thetempt to next 60 days, i think the administration would propose that an expert some point. think we will have a seat that is the case. sanctions you about for parent i have no objection whatsoever to us from sanctions ourselves as you are doing same, relative to .errorist acts

if we were to impose those on iran, there would no objection. mr. szubin: as you would expect, and would all depend upon the content of the sanctions. extent that congress is adding to the pressure of terrorist proxies, and edit your tools to combine them, that is something the restriction what to look at. if the intent of the sanctions effort is to try to take a way .he wise deal they are involved in terrorism. began to inhat has

the present. thefeel about designating irgc as a foreign terrorist organization them at home would impact the deal if congress decided to do so? mr. szubin: the irgc is a parent organization right and has a .umber of subsidiaries , toave designated the force support military activity terrorist, because it was the most apt elements to label as a .errorist threat read the think you understand

huge gaping hole that exist. , but all theng substances area's going to benefit hugely from what is ready to happen. those subsidiaries float cash of that holding company. it would be crippling to their terrorist activity right my question to you, if we were to do so, it certainly would cripple them far more than what they could generate more benefit.

mr. szubin: under our human rights designation as they would be under the terrorist designation. they are currently prohibited. any foreign company that does business, i will be very some of, those are remain on our list that are not coming off. because of congress, they are extraterritorial consequences that would be to say with the terrorist designation, but those effects are in place right now. >> you would not object? mr. szubin: i cannot comment on congress doing a dissing nation. in my experience that is the form the list the disease is that entities as terrorist organizations. a legalenting for

perspective than it did at the goodwood affect the outcome either way. >> i look forward to meeting with you. thanks for your public service. >> senator heitkamp? >> thank you for holding this -- and and poured on the moving forward on the nomination. appeared in front reading at least one time, and i've always enormously impressed and enormously grateful that you have decided to use your obvious talents and services to this country and service of security of this country. by sheer senator corker's concern about making sure this country is sure about terrorism

is our little yet human rights sanctions and making sure the american public knows that we would continue to .anction i want to address crude oil exports. you and i talked about this. i am deeply concerned about the policy of this country which restricts americans exports of crude oil, of the oil that we .roduce here

it gives us an opportunity to be competitive with raining oil that will be in the marketplace. we are terry is about how you see this from the standpoint of sanctions. be viewing the lifting of the export ban in the frame of continuing to curtail and put economic pressure on not only around but also russia and other bad actors in the world who are funding the fed actions with oil revenue and their domestic production. unfortunately, the question does go on my area of expertise in terms of what the potential effect with the of

relaxing those restrictions and how we would play out. >> can do just opine for me? mr. szubin: i'm going to support such discipline she severely. there are others in the administration for much more conversant with visit would be happy to continue the discussion. critical this is a issue and it has to be viewed in the frame of what we're doing right now with overall sanctions. it has to be addressed in this context. i think it is a wonderful opportunity for our country to use this new growth in our energy resources for smart and and providemacy european energy security, which i think the lack of energy our allies, has created a lot of economic disruption. we will continue to push for

this, we will continue to push sanctions on anyone who engages in terrorism and human rights violations i look forward to continuing our discussion with you. enter your family, who are very proud behind you, i want to thank you for raising a very --sing young man who's using amazing a man who's using his talents for the public good. thank you for taking the time. congratulations on your nomination until your wonderful family. i want to talk about snapback sanctions on their effectiveness. the president has said that sanctions are not stopping around from advancing the nuclear program. he says that the only airplane the tip is war because sanctions would not stop around from advancing their nuclear program.

he is also said this would be the punishment if they violate this deal and it will be effective. it seems to me contradictory to say that the economy was that is currently struggling it is not going to be deterred by sanctions. at some indeterminate time in the future, if they are stronger in their conventional military, that snapback sanctions would effective at that weight. could you help me explain that see me inconsistency? resumebin: i would not to speak for the president or what he was intending with his remarks. i think the point he and many others have made this throughout to 2011,rame from 2005 while we were ratcheting up sanctions, it has enrichment program. it continues to stockpile as it centrifuges.

section of losing very heavy thumb on the scale. it was having a determined of impact on how the he hated with their approach at the negotiating table. the sanctions alone did not stop the enrichment. it was the concessions they made toallow with the inspectors export their stockpile by 90%, to bring down there centrifuges and infrastructure route all of those are going to move us from it isrrent breakout time those changes that we so desperately needed for all of us who were worried about their nuclear program. in terms of snapback, it is a very potent force in for all the reasons that you have spoken about it iran has seen firsthand that there's a law luster that they will become self-sufficient. they are not looking for an

economy of resistance. they are not looking or being wholly dependent upon the solid goods. they are desperate for technology, good, and services from the west and the rest of the world. the throat that they could, from under the sanctions but fall back under them if they did not abide by the deal is a very real one and a political one for ron's leadership. and they started because of the pain that the sanctions have caught, and they are cheating, their economy will be stronger and he will be demonstrating the political desire to cheat on this deal. do you understand the inconsistency i am worried about? >mr. szubin: everyone

acknowledges that the sanctions were the key pressure points that run them to the table. i hesitate here because there is a law professor in attendance, but i think we would all agree -- >> she was my professor. she was a professor that i was a student. my role time is running down. you were talking about advancing the reauthorization of it. that is mostly a political and policy question. standpoint, if the act is not reauthorized until the last few months of 2016, would that create any type of break in the way that you administer the provisions? mr. szubin: no. >> and i want to discuss the

attention in the nuclear deal threat reduction act. on the one hand it says that the u.s. owned subsidiaries cannot do business with iran. on the other hand, it suggests that the president will license those subsidiaries. will you explain the legal underpinnings that we have appeared to have made? mr. szubin: excuse me for the interruption. should the wrong complete all of its steps, something that is still six months away, part of the relief they will earn is that foreign subsidiaries of u.s. parents will once again be allowed to do business with the wrong so long as they meet some very difficult conditions. they cannot be exporting and products from the u.s. heard

they cannot be obtaining a services. it truly has to be a standalone operation. in terms of the iran threat reduction act, the provision contains the licensing authority to allow for certain categories of activities for those foreign subsidiaries. >> to live. congratulations on your nomination would it be fair to was aat the sanctions act significant tool in getting around to the negotiating table? mr. szubin: it was not one of the primary pressure points. they were far more impactful. but part of the consolation that rock around the table and give

us a much leverage. 2010en he referred to the in your speech before the advancingdramatically efforts on crude oil sales, you're referring to? .r. szubin: the ncaa provisions they reference them as a penalty structure. when i talked about crude oil of sucking but measures you know so well that says you cannot do any transactions with the central bank of the iran unless you are bringing down, your purchases from around. that is what led to exports to fall from 2.4 million barrels to 1.1 million barrels a day. it has a very dramatic impact. >> there no question that the secretary nature of concern iran sections act was a very significant hammer at the end of the day. would that be a fair statement?

mr. szubin: the penalties that are sent out are referenced in a long these other stretches we're talking about. the penalty structure is in meaningful one. what future you have as it comes to the iran sanctions act which is up for reauthorization at the end of this coming year? >> the administration's fear is that there is no need for early renewal. it remains in full effect until because of next year. >> and when i left's and collapses, then what? that is an eventuality we're not even close to this point. itand his assertive because makes it very clear. will expire on that day. if we want to talk about significance back as a deterrent toward violation it seems me that without the law, iran knows that the administration does not seem to be disposed to support

reauthorization of the law even as it is a with all of the waiver authorities the president has. if i know i'm going to wait a year, it will be meaningful to my further deterrent concerns will be significantly reduced. i am not aware of any discussions within the administration that will lead to a setback leverage the dissipated trade the whole structure of the deal is to keep that leverage in place to ensure that iran adheres to its commitment. the jcpems to me that away has language that suggests is note administration supporting reauthorization. convinced that if was a

real authorization for war it would have a robust support because it passed 99 to zero when it was authored. if you want deterrence, it still needs to be in existence to be deterred two. i just do not get were the administration is that unless. i get a sense that for ron smalles, particularly in intermediate ways, that we are going to largely be on our own and enforcing and sending a clear message that violations are not acceptable. is that a fair statement? mr. szubin: we would retouch or foreign partners. europeanslar, the have a lot invested right now. before this deal, and lot of the sanctions were u.s. only right

that this point with the commitments they would be breaking the commitments they may not just to the is but to the entire community. >> they cannot invest because of other nonnuclear related inctions the only companies the world that are going to get into the uranium market are european as other companies therefore, they are going to have both investments of major national companies like siemens, airbus and others. the countries themselves may use their funds to invest in iran. it is going to be a lot harder to have them come along with us in any sanctionable item after all that takes place. thatnk about acknowledging is to be somewhat unreal about the consequences we're going to face moving forward.

as part of your overall portfolio and what you are doing, the question of on thement of the law castro regime, i have a serious concern as to how the interpretedon have a general license. i want you to give me what is your interpretation of a general license. mr. szubin: a general license is a standing authorization that is ofued that allows for a set activities that would otherwise be prohibited to go on so long as it meets all of the specified conditions it does not do anything but a specific license would do other than it is a efficiency. rather than the company's applications by one by one, it is