>> mr. royce, on that 17% figure, i would like to just underscore and that projection had already been a work for the bureau -- >> and ambassador, you and i don't really have an argument about that. it's the overall decision by the state department to not live within the constraints put by the congress in terms of the total number of bureaus and the easy way to get around it was not to elevate you to bureau status within the existing -- i just want to explain that. we're good on that. but it's the agency, you know, it's the department that i think needs to play by the rules that are set out in terms of the constraint. but go ahead here. >> with regard to the issue and we do find it remarkable but we still to this point do not have any evidence that suggests that the pakistani government per se had any knowledge of bin laden's whereabouts and we have no conclusive evidence that the pakistani government knew where he was. >>. >> let me ask you in africa, let me thought here the relationship with al

and we will give three minutes to mr. royce, the chairman of the subcommittee on terrorism, nonproliferation and trade. >> thank you, madam chairman. mr. berman was just talking about the magnitude of the human rights abuses there. in terms of the sheer numbers, this is the worst human rights abuser on the planet today. for november us in these hearings who heard the testimony or met up with detectors in china or in south korea, it is truly appalling. now, when you think about the cost of this launch, at least a half a billion dollar cost to this launch, i've been in north korea, there's no way that regime could squeeze pennies out of the populous in north korea. to get this hard currency requires, for the most part, a funding source outside the country. frankly, if china were bothered by north korea's icbms, if it were bothered by north korea's dual track nuclear program, it would stop subsidizing them. it would stop funding these operations. a portfolios tackling north korea's elicit activities which brings money outside the

mr. royce spoke before about did i additional staff. we are trying to build up our staff so we can do more in this area. having said that, the law nonetheless and the practice that has been established by the department over the recent decades requires us to be extremely diligent, dlib bra tif, and complete, comprehensive in our efforts here and we have not found any shortcuts to compiling the kinds of baseline analysis and investor of information necessary both to list and de-list. i have a lot of people working very, very hard on this but we haven't yet found get us to whether a group belongs on or off the list. >> thank you. i know that your folks are working hard. you've done a lot. appreciate your service and at the same time. >> the overall question of elevating a bureau, as you and i have discussed, we supported elevation to the bureau. the point was, that the state department had the chasity and they had two slots so at the end of the day,

mr. royce is recognized. >> i'm going to pass for the moment, madam chair. >> mr. burton? >> i'm sorry i was a little late. that failed rocket launch cost $850 million they estimate. and i have it before me a report that says that would have bought 2.5 million tops of corn, 1.4 million tons of rice, or enough for the north korean government to feed millions of its people. why did they launch that when they knew that was a direct violation of the leap day agreement? it's like they said they were going to have a hiatus on, let's see, they want to halt nuclear tests, missile tests and allow the international atomic missile energy, iaea inspectors back into the country. they did that and turned right around and launched the missile. how do you deal with that? i mean, you know, you folks indicate that we ought to continue to try to negotiate with them. every time we negotiate with them, they turn around and stick us right in the ear. the second thing i would like to ask is we have both congressional and presidential elections in the u.s. and south korea is going to be this year

mr. royce is ready now. >> thank you, madam chair. since good aid is being discussed. isle mention that tom lantos, human rights committee hearing on this subject, where we heard testimony of sacks being delivered in a village, villagers being told don't touch those and the trucks coming back and picking up the sacks. and one of the questions here is what do they do with that? well, then a french ngo in another hearing explained how she had tracked this and the food was being sold on the nood exchange in the capital of the country in order to get hard currency for the regime. this is perhaps the greatest problem. as we look at these interviews, debriefings done with defectors. they say food does not go into the no-go areas anyway. food does not get out there. i had -- for the record, i had an amendment, the royce amendment here last year prohibited food aid from going to north korea under these circumstances. that was watered down in the senate, by the way. but i share the gentleman from indiana's concerns about control of that food. and it indirectly propping up the r

mr. royceackerman is recognized. >> i think the chair. dick has it covered. >> thank you. mr. manzullo is recognized. >> thank you for calling this hearing regarding north korea. north korea after kim jong-un will remain unstable under his leadership. no matter kim jong-il and his son, kim jong-un, -- given north koreans erratic behavior recently, and over the course of several years, the goal of a regularization seems further than ever before. i encourage the president of the secretary of state to stand firm against any destabilizing actions. furthermore, north korea proceeds with testing a nuclear weapon, as they made you with prior indicators. all members of the six party talks must forcibly condemn this behavior. the future is bleak. the people will bear the unimaginable hardship of ban kim jong-un's tyranny. it is the weapons themselves with the regime is using to meantime its iron grip. i hope our distinguished witnesses today will address the humans rights tragedy. typically as are great

now the gentleman from california, mr. roycecognized for a minute and a half. >> thank you, mr. chairman. the clear problem that arose here, the clear problem that made bankruptcy the only option for mf global was that no one could account for what happened to over a billion dollars in segregated funds. as we're going to learn today. but more than leaving the various customers of mf global high and dry, what's happened is that those missing funds have rocked the foundation of the cftc's customer protection regime. rules governing segregated accounts, those rules have been around for 75 years. and they're not difficult to understand, reportedly, they're not difficult to enforce. yet the cftc has failed in this most basic task. so we go to commissioner o'malley's observation at the cftc. he says that, basically, he's arguing that since 2010 the cftc has been consumed with drafting new rules to regulate not just our driven -- derivatives markets, but the world's with much of the manpower at that agency dedicated to enforcing dodd-f

mr. royce? >> thank you, mr. chairman. we've expressed our concern from time to time about this arrangement, but this legislation that set up the cfpb is going to add to the regulatory costs that are growing at a rapid clip. it has few checks and balances but broad, largely-undefined authority. and, here's the main point, it separates safety and soundness regulation from consumer protection regulation. prior to her departure, sheila bair had this to say about this problem. she said banking agencies' assessments of risks to consumers are closely linked with and informed by a broader understanding of other risks in financial institutions. placing consumer protection policy-setting activities in a separate organization apart from existing expertise and examines infrastructure could ultimately result in less effective protections for the consumer. so if we're not able to mandate coordination between the cfpb and the prudential regulators through changes in law, my hope is that this semiannual heari

mr. royce is recognized. >> i'm going to pass for a moment, madam chair. >> mr. burton. >> thank you, madam chairman. i'm sorry i was a little late. we had another committee hearing but this is most important. that failed rocket launch cost $850 million, they estimate. and i have it before me a report that says that would have blocked 2.5 million tons of corn, enough for the north korean government to feed millions of its people. and why did they launch that when they knew that was a direct violation of the leap day agreement? it's like, you know, they said that they were going to have a hiatus on -- let's see -- halt nuclear tests, missile tests and allow the national international energy agency, iaea, back in the country after a three-year hiatus. did that and turned around and launched a missile, how do you deal with that? you say we try to negotiate with them. every time we negotiate with them they turn around and stick us in the ear. that's the first question. the second question, in 2012 we had -- we -- we've had both congressional and presidential election

mr. rao royce believes it should be integrated. i know that your work with other regulators to integrate consumer protection into everything, i want to make sure that we keep affordable and available credit for small business consumers. >> thank you, congressman. to go back to a point that you made a moment ago, it does not help to protect consumers if we undermine the safety and soundness of the financial system. consumers depend on the availability of credit to be able to do things like buy homes and access education, manage and control their spending. if the system does not provide those opportunities to people, then their lives are stultified as a result. i very much agree i and a vibrant financial sector as good for consumers for all the same reasons. lots of availability of choice and the like. one of the things we will try to be mindful of, as you pointed out, we are told that access to credit is one of the chief objectives we are supposed to serve. we will try to be mindful of that as we go about different tasks. one of the

mr. royce's testimony is incorrect. you have those funds. you have taken them and what you are telling me is $1.6 billion is still not against the law. you did what was fair and square. is that right, mr. steenkamp? fair and square. i'm hearing the of the two witnesses say it is fine, it is okay. is it ok? >> not knowing what happened is impossible -- >> you took the money and are supposed to get it back. if they put money in the bank and if i can't get money back from the bank then the bank has taken it from me. i can get my money back then the bank has taken it. they put the money with you, put their money with you and can't get it back. so the is that right or wrong? morally right or morally wrong? your legal counsel obviously can't declared against the law or nothing like that. so tell me. .. the legality or illegality about it. i think that is the message now that's going out today. i think mr. capuano said it fine, shame on you. thank you. i yield back. >> i thank the gentleman and not like gentleman from california ms. waters is recog

mr. royce spoke before about additional staff. we are trying to build up our staff so we can do more in this area. we consider it an essential part of our national counter- terrorism efforts. the last year was the most productive year we ever had. having said that, the practice established by the department over the last decade requires us to be extremely diligent, the liberty of, and complete and comprehensive and our efforts. we have not yet found any shortcuts to compiling the kinds of baseline analyses and inventory of information necessary both to list and de- list. we have not yet found the work around that will get us do an instant recognition of whether a group belongs on or off the list. we still have to do the hard work. >> thank you. i know you folks are working hard. we appreciate your service. at the same time, a list that would list the mek and not the haqqani network is hard to justify. i yield back. >> just for the record, the overall question of elevating the bureau was discussed. we support the elevation of the b

mr. royce spoke before about additional staff.e are trying to build our staff so that we can do more in this area. we consider a vital part of her business, and an essential part of international counterterrorism efforts. and i would add that the last year was, in fact, the most productive year we have ever had. but having said that, the law, nonetheless, and the practice that has been established by the department over the last, over recent decades, requires us to be extremely diligent, deliberative, and complete, comprehensive in our efforts here. and we've not yet found any shortcuts to compiling the kinds of baseline and now sees and inventory of information necessary both to list and delisted that a lot of people are working very, very hard on this, but we haven't yet found the workaround that will get us to an instant recognition of with a group is on or off the list if we selected do the hard work. >> thank you. i know your folks are working hard. you have done a lot. appreciate your service. and at the same time, a list th

mr. edward royce is ready. >> thank you. since food aid is discussed, i was just mentioned a hearing on this subject, where we heard testimony of sacks being delivered in a village, and villagers being told do not touched those, and the trucks coming back and picking up the sacks, so one of the questions is what they do with that? a french ngo explained that the food was sold on the exchange to get hard currency for the regime. this is perhaps the greatest problem. as we look did the interviews with defectors, they say food does not go in the no-go areas. food does not get out there. i had, for the record, an amendment, the edward royce amendment that prohibited food aid from going to north korea under these circumstances. that was watered down in the senate, by the way. i share the gentleman from indiana's concerns about the control of the food and it indirectly propping up the regime. a couple of points that i want to make here, and ask you questions about, -- to go back to mr. howard berman's point, about elevating the di

mr. cameron's counterpart to seal a number of trade agreements, particularly defense agreements and trade agreements with companies such as b.a. systems and roles recognize. that is a -- rolles royce. we'll be keeping an eye on that for you. the leader of the recent coup, the captain, has held talks with the speaker of parliament who is supposed to take over as interim head of state. however, it's unclear what the captain, what role would play in the future and what transfer of power would take place. >> life in this part may appear relaxed. it's an unsettling time for many here. trying to sure up security, they are taking on new members. these are new recruits. they have been in charge since the coup three weeks ago. this man, a hotel owner, says he has confidence in this army. he is reassured because he says the army is setting up a base in the north, but the population has been worried about the rebels, he says. the military may be in charge in the south, but the north is increasingly lawless. one northern rebel group has declared independence, though few outside recognize it. these are some of the islamists vying for power there. god is great, this man chants. there are new fe