National Security

  • Election 2020
    What Would a Smart Immigration Policy Look Like?
    Podcast
    In this episode of our special Election 2020 series of The President’s Inbox, Edward Alden and James Carafano join host James M. Lindsay to discuss U.S. immigration policy.
  • United States
    Distinguished Voices Series with Susan E. Rice
    Play
    Susan Rice discusses her new book Tough Love: My Story of the Things Worth Fighting For, which is a look back on her dynamic career in public service.   (Applause.) HAASS: Well, you brought your crowd. RICE: I guess so. (Laughter.) HAASS: Well, good evening—oh, afternoon. I apologize. It’s dark, it throws me off. RICE: It’s still good evening? HAASS: It is good evening, OK? RICE: Good evening. I’ll say it with confidence. (Laughter.) HAASS: Do you want to do the introduction? RICE: Sure. (Laughter.) HAASS: OK. Welcome to the Council and to the twenty-fourth Term Member Conference. For those of you who don’t know me, besides being fortunate, I’m Richard Haass. I’m president of the Council. And we’re thrilled that so many of you are here tonight for this session, for the subsequent session, and for tomorrow’s panels and breakouts. And before I introduce Ambassador Rice I just want to say a few things about your program. This is the Stephen M. Kellen Term Member Program. And it provides people such as yourselves, young professionals form all sorts of fields, the opportunity to develop your interest in foreign policy and international relations. Do it lots of way. For us, it’s an important part of our mission. People think of us as a think tank, or a publisher, or an educational institution. But I like to think we’re in the talent development business. We have close to, what, seven hundred fifty or eight hundred term members. Every years we have five military fellows. Something like 60 or 70 percent of our military fellows have gone on to make admiral or general. We have all sorts of international affairs fellows. I don’t think you were one, were you? But Condi Rice—for example. Condi’s first experience in government was at the Joint Chiefs of Staff as a Council international affairs fellow. Samantha Power worked for this young senator named Barack Obama. And the rest, as they say, is history. So the IAF has been a great program for introducing people to government, and vice versa. We just got a big grant and we’re going to be able to start for the first time a paid internship program. So we’ll have over a hundred interns a year. And we’re really excited because regardless of means or background we’ll be able to get people to apply. And over the course of a decade, that’s a thousand more young people. RICE: Will they all be based at the Council or will you farm them out. HAASS: They’ll be in the Council in New York or Washington. So we’re really—so, again, this is an important part of what it is we do. It’s all made possible, this program, the term program, by the Anna-Maria and Stephen Kellen Foundation. And Andrew Gundlach, who’s a member of the family and a member of the Council, has been great. I want to thank also—where’s Nancy Bodurtha, is she here? And Meaghan Fulco. Is Meagan here? Yeah. (Cheers, applause.) They organized this. And Nancy in particular I have to thank, because she basically oversee the membership process. So you owe it all to her. (Laughter.) And we’re hoping that more than three hundred term members will be here between today and tomorrow. And tonight your immediate reward—not after this event but after the next event on the Middle East, is a reception. And we will accept drivers licenses or anything else as proof of age. (Laughter.) So Susan Rice—Ambassador Susan Rice—full disclosure, we’ve known each other a long time, friends. But more important for our purposes tonight, she served, as you know, first as the U.S. perm rep, permanent representative to the United Nations in the Obama administration, and then she went on to be the national security advisor. She’s a member of the Council on Foreign Relations, a former term member. So you too—you too! (Laughter, applause.) Could be sitting in that chair. And she was appointed assistant secretary of state and confirmed as assistant secretary of state for African affairs, at the age of thirty-two. Youngest assistant secretary in American history. So those of you who are thirty-three and have not yet made assistant secretary—(laughter)—I don’t know what you’ve been doing. RICE: Richard, I think I’m the youngest regional assistant secretary. I think Dina Powell was younger when she got hers. HAASS: OK. Thank you for that clarification. Who knew? Dina, actually. Dina’s on my cellphone calling me now. RICE: Dina knows, right? (Laughter.) HAASS: Complaining there. Susan has done many things, but most recently produced this. (Applause.) RICE: Thank you! HAASS: Title is Tough Love: My Story of the Things Worth Fighting For. Just came out last month, early October of this year. RICE: Yeah. HAASS: And she’s traveling around talking about the book and all sorts of related issues. This meeting is part of what we call our Distinguished Voices Series here at the Council. It’s the one part of the Term Member Conference we will do on the record. Just this week we had another Distinguished Voice meeting in Washington with Ted Koppel. So it’s been a great week for us. RICE: Selling a book too? HAASS: No. RICE: OK. (Laughter.) HAASS: No. He was just here out of the goodness of his heart. (Laughter.) RICE: Hey, that is why I’m here. Because I wanted to spend time with you guys, quite honestly. Because you’re not paying me anything. You’re not buying my books. By the way my books are for sale here. (Laughter.) But, yeah, they didn’t buy them, which is what I usually look for. But anyway. (Laughter.) HAASS: That’s why we—we’re a nonprofit institution. (Laughter.) So we’re going to have a conversation. You can see it’s going to be difficult. I’ve already lost control. And then we’re going to turn it over to you all. But let’s talk about your career, because it has been a career of public service. You didn’t go to Goldman Sachs, and you didn’t go to a law firm. And my favorite two-word question, how come? Why did you go in the direction you did? RICE: Well, I did go to McKinsey and Company for a couple of years after I finished my Ph.D. in international relations. But the backstory really is who I am and where I came from. I was born and raised in Washington, D.C. (Cheers.) Yeah. HAASS: Home of the Nationals, yeah. RICE: That too. That too. (Applause.) In a family where really public service was the family business. My father had been an economist and served at the Treasury Department, and the World Bank, and ultimately was a governor of the Federal Reserve. My mom never was in government, but she spent her whole career—the bulk of her career working on public policy, particularly access to higher education for low-income people. And her greatest achievement in my judgement was being deemed the mother of the Pell Grant program. She was instrumental in getting that program established and sustained, which has enabled eighty million Americans to go to college. HAASS: My first job in Washington was working for Senator Claiborne Pell. RICE: There you go. So Lois Rice and Claiborne Pell were in lockstep, working hand-in-hand. But I was raised in an environment where the business was government, and policy, and how to make a difference. And I came from parents who really had service in their souls and instilled that in me and my brother. And the service didn’t have to be in government. It didn’t have to be in uniform. It didn’t have to be formal. But it had to be about doing something broader than myself and contributing in some way. And so I just had a passion for it. And at one point I thought I might want to run for office. But being from Washington, D.C., the prospects of that were— HAASS: Lots of electoral votes. RICE: Yeah. Well, a lot of votes in Congress, more relevant. But I also discovered at an early age that I could serve by working in the executive branch. And I had early opportunities to do that. And one thing led to another. And you know, I’m here. HAASS: Now the book—I want to talk about the book for one second before I go to policy issues. The book is surprisingly personal. We learn about—a lot about your kids. We learn about your marriage. We learn about your folks. And I should say that I knew your mom from my time at Brookings. There’s a lot about that. We learn about your blood pressure. We learn a lot about you. Why did—what are you hoping people take away from the book? RICE: Well, I’m hoping that people will see a career and a life in service, but also a background and an upbringing that’s somewhat unusual for a person in the roles that I’ve been in. I’m the descendent of slaves from South Carolina on the one hand, and of immigrants from Jamaica who moved to Portland, Maine on the other hand. And both sides of my family prioritized education, and prioritized service, and worked to bring each subsequent generation a little bit higher. And I learned a fair bit from my experiences being part of that family and my upbringing in Washington, D.C., but also from my service that I think is relevant to anyone who wants to compete and thrive in unforgiving environments. And if they’ve been knocked down, as I have on a couple of occasions, then to know how to get back up. So I wanted to share that experience. And I also, frankly, wanted to tell my own story in my own words because for a long period of time in the second term of the Obama administration, after I’d become a nationally known figure because of my role going on the talk shows following the Benghazi terrorist attack, I’d sort of been characterized and mischaracterized on various sides of the political spectrum, at a point in my life when my job was to represent the United States and to speak for our country, and our president, and not for myself. So I in essence had to sit there with my mouth shut while people defined me for me, which is the exact opposite of how my parents raised me. And so this was my chance, in part, also to tell my own story in my own words. And that’s also why I—it’s as personal as it is, because I felt to do that faithfully and credibly it had to be. HAASS: Since you raised it, you’ve changed the order of my questions. RICE: Sorry. HAASS: No. I’m just a—you know. RICE: You’ve already admitted to losing control. HAASS: That’s true. (Laughter.) Since you raised Benghazi, let’s raise it, but not dwell on it, in the sense of other than the lesson of being careful before you agree to do all five Sunday shows— RICE: Which is a lesson. HAASS: Which is a lesson. (Laughter.) RICE: And since you know my mother you would not get surprised by the revelation that my mother told me not to do it. HAASS: Always listen to your mother. RICE: And that’s the lesson. That’s the overarching lesson of the book, is always listen to your mother. (Laughter.) HAASS: What else, though? I mean, Benghazi was brutal for you. I mean, it was a—you know, you were—it was your moment, shall we say, in the arena, and then some. So how do you come away from it? How did it change you? It obviously had impact on your career and the rest. Obviously, it had impact on your family. And you now have three—what, three, four, five years of hindsight looking back on it? So what’s your take on it now? RICE: Well, how did it change me? I think it frankly made me tougher and wiser. And it made me also— HAASS: Can I just say—does everybody—when I say Benghazi, does everybody know the story, or do we need a thirty-second recap? Want to give a thirty-second recap, because you were in the middle of it? (Laughter.) RICE: It’s actually refreshing that I have to give a thirty-second recap. OK. September 11, 2012. Our diplomatic facilities in Benghazi sustained a brutal terrorist attack. We lost four Americans including our ambassador, Chris Stevens. On the Sunday following that Tuesday, I was asked by the White House to go on all five Sunday shows to talk not only about what had happened there, but also what had happened around the Arab and Muslim world, where a number of our facilities had come under either siege or protest. And also, because this was about ten days before the opening of the U.N. General Assembly, and I was the U.N. ambassador, to deal with some of the issues that were coming up in relation to that. I went on the Sunday shows and I provided to the American people the best information that we had at that time. Talking points that I used were developed and approved by the intelligence community. And they were our best unclassified rendition of what we understood to be the case. I knew them to be accurate, because I was a consumer of all of our intelligence and had just had the latest the day before. And I went out and I shared that message. And within about ten days the intelligence community revised its assessment and indicated that despite what—the information they’d given me and members of Congress that had been shared with the public, there was some new information that changed the substance. But this was in the middle of President Obama’s reelection campaign running against Mitt Romney. It was a political hothouse. And I was robustly attacked for lying. I was accused of being, you know, literally a liar, incompetent, untrustworthy, a whole bunch of other epithets. One member of Congress who just announced his resignation this week called for my resignation, Peter King. And it was just a—you know, it was a hothouse. And the crazy thing was, it persisted beyond the election. And so my integrity was impugned and, you know, my intelligence as well. And it was painful. So how am I different? I think I’m tougher and wiser. Tougher because you either endure that or you don’t. (Laughs.) And I wasn’t prepared to be taken down by something that, frankly, wasn’t my fault. We’ve now had eight congressional committees review all aspects of Benghazi. And every one of them, including the great Trey Gowdy’s one, concluded that neither I nor anybody in the administration had deliberately misled the American people. And yet that stigma is still attached to me by some—except those of you good people who don’t know what Benghazi is. So bless you. (Laughter.) HAASS: It’s the ignorance is bliss rule of— RICE: So that—so the last point is, you know, as this continued in a sustained way, and as I was—after President Obama was reelected—being one of at least two people who were being seriously considered for the job of secretary of state, I decided in December to withdraw my name for consideration for secretary of state. Not because—actually, because the Democrats controlled the Senate—not because I thought I couldn’t get confirmed, but because I thought it would be a long and bloody battle, and that it would be costly to the president’s second-term agenda and also to my family. HAASS: And you ended up— RICE: So I ended up being national security advisor, which was a great outcome. HAASS: Which was pretty cool. RICE: Yeah. (Laughter.) HAASS: Talk about that job. You in your book and most people who have looked at it always hold Brent Scowcroft to be the gold standard, the model. Why is that? What was it about the way he ran it? And I should—full disclosure—I worked for— RICE: You worked for Brent. (Laughs.) HAASS: For four years. He was—he was the only person to be national security advisor twice. He did it for President Ford in the latter part of his presidency, and then he did it for President Bush 41 for all four years, so. RICE: So I think that, first of all, Brent—most people look at the—when they talk about the Scowcroft model, they’re talking about his second shot at it. So maybe if we all had a second shot we’d get it right. (Laughter.) Not me. HAASS: (Laughs.) So who are you supporting? RICE: Not me. That’s—(laughs)—anyway. (Laughter.) What made—what made, I think, Brent—and I’ll let you elaborate on this. I think first of all, he’s a man of enormous experience, and intellect, and integrity. And he ran a very tight, very small by today’s standards, national security council staff that played the very traditional role of coordinating, rather than implementing or even necessarily to a great extent, formulating policy. Now, the problem with that model in today’s context is that it’s completely, I think—I don’t think it can be reconstituted. So many things have changed. For one thing, we now have, you know, cable news of all different flavors twenty-four/seven. Social media, which has changed entirely—excuse me—the pace and the substance of what a policy team has to deal with you. We now have something called homeland security, and we’ve folded in the Homeland Security Council. And we have the National Economic Council, which until last week or whenever was shared with the National Security Council. And so there’s been a ballooning of the apparatus of the NSC, which actually in my tenure we tried to pare back carefully, not for any political purpose but for the purposes of efficacy. And yet, you know, what Brent had that was correct was a notion that when the NSC is optimizing it is playing primarily a coordinating function and eliciting the most out of the agencies as possible. HAASS: The only caveat I’d probably say is there was a lot of formulation, it’s just the formulation never got in the way of the coordinating. So Brent was—pushed his own views. Those of us on the staff did. But we never let the advocacy role interfere with the coordinating role. So we would go to the president and say: This is where the interagency is, this is where we come out, and why, and let the president decide. RICE: And I think, at least in the NSCs I worked in—I worked in the Clinton NSC as a staffer and then obviously in the Obama NSC as the national security advisor. I think that piece of it I feel like we did a decent job of. I think the part where we were criticized, at least in the Obama administration, was for being very hands-on in our dealings with the agencies. And frankly, as I say in the book, we were serving a hands-on president and that’s what he expected and demanded. And quite frankly, given the alternative model that’s been demonstrated of late—(laughter)—I would take that as preferable. HAASS: One of the advantages historians have over journalists is time. And they get a little bit of a—hopefully with distance comes perspective. Not always, but it can. So now it’s been three years, essentially, since you stepped out of government. What is your now reading? If you had to describe the Obama foreign policy legacy what do you think of—what do you think it is? RICE: Well, it’s—I don’t have a soundbite for it. But what I’d say is I think we effectively leveraged our alliances and partnerships to address key global concerns, and concerns that affected the United States. Whether it was working to negotiate and agree the Paris Climate Agreement, or the Iran nuclear agreement, or the Trans-Pacific Partnership, or the coalition to fight ISIS, or to sustain ours and NATO’s involvement in Afghanistan, or to fight the Ebola epidemic. We effectively brought allies and partners together to address those complex challenges and did so even as we had to confront many of them simultaneously. And I think if there’s a hallmark, it’s that we did not at any stage lose that ability to rally people to join with us on things of various kinds of consequence. HAASS: Do you think it’s fair when people look at the non-use—the non-physical response to Syrian use of chemical weapons, the non-follow-up of the intervention in Libya after Gadhafi was removed, as some would argue—and I would argue; I’m one of those some sometimes—that Obama introduced elements of retrenchment which this administration had magnified dramatically, but that he is to some extent going to be understood historically as a president who began a process of American pullback, after George W. Bush was very much going in the other direction. Some would say that George W. Bush was guilty of overreach, but Obama introduced a degree of underreach. RICE: I would put it—no, I wouldn’t subscribe to that, in your terms. But here’s what I would say: I treat in the book, Tough Love, both Libya and Syria in some depth. And I think, you know, President Obama made the decision to intervene in Libya. It was a tough call, but that’s what he decided to do. In my judgement, that was the right choice. It was a relatively economical and, in terms of human lives, low-cost way to protect civilians and address an immediate humanitarian imperative. Where I think we made—where we fell short in Libya, and I say this quite frankly, is that the United States working with NATO, working with Arab countries, working with the U.N., where I was at the time, did not have sufficient focus and sustained involvement in the follow up in trying to see if we could enable the—or support the Libyans in building a unitary country. It had never been anything but a one-man show. It didn’t have the institutions of state. And because—and this is my own opinion, as I write—because I think there was a lot of division and ambivalence within the administration about the wisdom in the first place of becoming involved in Libya, and then a year later because of Benghazi, which sort of exacerbated things, the appetite in Washington for being as engaged as I think we should have been, in retrospect in the aftermath, was lacking. And then in the second term, we came back to it with more sustained focus and attention, but I think arguably that was too late. And so my critique of what we did on Libya is that we failed to be as engaged as we could have been in the aftermath. I don’t know that that would have enabled Libya to become, you know, a functioning country, but we really won’t know because I don’t think we fully tried. Syria, I think, is different. And I fully recognize that many people think that, you know, by not using force without congressional authorization to respond to the chemical weapons attack that we somehow signaled that we were abandoning the Middle East. I think it’s much more complicated than that. And I don’t know if—can I spend a few seconds just? So there are three aspects in my judgement of the challenge we faced in Syria. One was the chemical weapons. Two was the question of to what extent should the United States get involved directly militarily in the Syrian civil conflict on the side of the opposition with the aim of toppling Assad? And three was the fight against ISIS. So President Obama decided clearly and quickly that once ISIS emerged that we had to take that fight to them, but did it by, with, and through partners, in the terminology of the Defense Department. So that was the Kurds, and the Arabs in Syria, and the Iraqi Army as it was reconstituted in Iraq. On the chemical weapons thing, though, which is the one that I think gets the most attention, as you know, he had—President Obama had decided to strike, and then decided to pull back and seek congressional authorization prior to that. And he did that because he anticipated that this military involvement could well extend beyond a handful of strikes, that it could become a more extended thing. And he felt that after Iraq, and Libya, and Afghanistan, that he would be wise to have the backing of Congress, and through Congress the American people. As I write in the book, I was the only one of President Obama’s senior foreign policies advisors or members of the principals committee that argued at the time that we should go ahead and strike without congressional authorization. And I did that not because I disagreed with his logic, but because I really believed we weren’t going to get congressional authorization. And I ironically, maybe my cynicism was born of my experience less than a year earlier following Benghazi. But I figured that the Republicans weren’t going to give him anything he wanted, even if they agreed that it was right. And the Democrats on this would not be supportive because they didn’t want to have to take a vote in favor of another conflict in the Middle East. I also write in the book that I think I was right on the politics but wrong on the policy, in the sense that, you know, we didn’t get the authorization but in failing to get the authorization we ended up negotiating with the Russians, with the U.N., with others to achieve the removal and destruction of 1,300 metric tons of chemical weapons. Now, we thought at the time that that was the entirety, or almost the entirety. And then we saw in the—clearly in the early stages of the Trump administration that it wasn’t. And so President Trump took President Obama’s strike list off the shelf and employed it in a night of strikes, which I supported in 2017. And then he did it again in 2018. And nothing happened—i.e., there was no diplomatic follow up, nothing on the ground changed. I and others probably felt good for a few hours. But whatever chemical weapons were there are still there and probably more. So the reason I think I was wrong on the policy is I’d rather than 1,300 metric tons out and destroyed than zero. But neither is a satisfactory outcome. HAASS: We will not debate on just soliciting and eliciting— RICE: But if that leads to—if the conclusion from that is retrenchment, then I think you got to look at the entirety of it. We had more—we left the region with more forces in places than when we went there. We engaged in the Iran deal, which I don’t think I would call retrenchment. We—you know, we remained in Afghanistan. I mean, you can—we put more forces back in Iraq when we had to because of ISIS. But what President Obama’s view was, was the Middle East, is you know, a place where you can put infinite quantities of resources and not necessarily get altogether clear-cut outcomes. And he did effect the rebalance to Asia, which I think was a net positive. And I think in some quarters that was viewed as also a retreat from the Middle East. So debate me. Come on, man. (Laughter.) HAASS: OK. Happy to. I think it’s seen as retrenchment because one was Libya, you talked about. I think Syria, we should have used military force. And indeed, I wouldn’t have been satisfied with a couple of cruise missile strikes. I would have said: Take out the Syrian Air Force. That was our moment. The Russians weren’t in yet. And I thought it would have underscored the importance that people can’t use chemical weapons with impunity. I think you all ran into trouble when you said Assad must go, and the gap between your rhetoric— RICE: I agree with that. HAASS: —and then your lack of follow up created a gap. Afghanistan you built up, but the whole idea was to get out after eighteen months. So it signaled that we weren’t going to stay, even though that was changed. Iraq we talked about— RICE: But although that was changed. So we stayed in Afghanistan because conditions necessitated it. HAASS: But the original decision that was announced was the eighteen month. RICE: Yeah. HAASS: I’m just saying—I didn’t say a withdrawal. I said a retrenchment. I think it was retrenchment. (Laughter.) And I think it did signal—look, I think what this administration did with the Kurds, I think what the previous administration did with the chemicals, I think both signaled a certain lack of American dependability. RICE: But didn’t President Bush negotiate an arrangement where we would withdraw from Iraq by the end of 2011? HAASS: He did. He did. And— RICE: And was that retrenchment? HAASS: If you ask me, yes. RICE: OK. I—you know, if not committing to stay indefinitely in these Middle East conflicts is retrenchment, then I’ll grant you that. (Laughter.) HAASS: Yeah, well, then there’s ways—but there’s ways of staying at a cost that I would argue, you know, is warranted. And that’s part of the dialing of foreign policy. And it’s part of the problem with the language of forever conflicts. You know, we stay forever in Europe. We’ve stayed forever in Korea, at least up to now. And the question is, how do we design presences and activities—you know this—at a cost level that’s commensurate with the interests? And like everything else in life, it’s compared to what? That’s all. (Laughter.) RICE: We should have set this up like this. HAASS: No, but this is your book. I get enough time to hawk my books here. I have the home-team advantage when it comes to books. Was that your biggest disagreement with the Obama administration? The reason I’m—in terms of Syria? I’m curious. I think it will be useful for people here. You’re in an administration. You’re in an organization. If you disagree, how do you handle it? How do you decide when you disagree with the boss, when you disagree with the consensus? I thought it would be useful for people to hear from you about how you play that hand. RICE: Well, in my view, you shouldn’t be serving if you’re not willing to give your honest and best advice. And you probably shouldn’t be serving whomever you’re serving if he or she doesn’t want your honest and best advice. And fortunately, I’ve been privileged to serve secretaries of state in the younger part of my career and presidents who I think genuinely wanted and expected the best unvarnished advice from their advisors. At the end of the day they’d take their own counsel, make their own decision, and in my experience own their decisions. But I think—you know, when one finds themselves in a situation where the overt or subliminal message is you should dare not disagree, one, you’re not contributing and, two, you’re in a bad situation. And the outcomes are going to be of a lower quality, I fear. HAASS: Do you have in your mind a sense—there’s disagreements and there’s disagreements about what the criteria would be that a disagreement reached a scale that you would have to resign? RICE: Well, I think you know it when you see it. In my case, the Syria chemical weapons thing was not such a point for me, where I felt that I had to dissent. And dissent to the extent that I departed. And the reason for that is because I was essentially making a political judgment rather than a policy judgment. In that case I didn’t view myself as the political expert in the White House. There was one case that I do write about in the book which is, you know, nobody would imagine, where I actually was prepared to resign. Did you get to this part about—(laughter)— HAASS: Now, that is a—(laughs)—that’s a truly trick question. The answer is yes. RICE: (Laughs.) HAASS: (Laughs.) But I don’t want to— RICE: So— HAASS: This is a spoiler alert. I don’t want to—(laughter)—I don’t want to ruin it for the rest of you. RICE: I’ll let you and everybody else off the hook. So this was in 2014, when we were wrestling with the Ebola epidemic. And as you may recall, it was—you know, it was a terrifying time when the disease was raging through West Africa. It had begun to spread through travel to the United States, to the United Kingdom, to a few other places. Lawmakers here were freaking out and demanding the closure of the border. You know, governors were preventing people with dark skin who came from the African continent from coming through, you know, Newark Airport or what have you. And the pressure on President Obama to limit the prospect of Ebola getting to our shores was enormous. And one of the proposals on the table was to—I’m going to oversimplify, but basically to restrict the ability of anybody who had traveled to the three affected countries to come to the United States. And not only would that have made it impossible for American health workers or American military personnel who we’d sent to support the logistics of the response effort to come back to the United States, but what it would have meant was that all legitimate travel from that region would have been cut off, which would have been the economic death knell for the countries of West Africa, plus it would have grossly stigmatized West Africans here in the United States, who are an important and vital community, not least in our health-care sector. So when this issue came up, I argued very strenuously that we could not do this, that we had to find a better way to screen people coming in so that we didn’t prevent them—everybody from coming. And there was a point where I wasn’t sure how the president was going to decide. And I knew, and I said to myself at that moment, if he were to make the wrong decision, this would be a point where I would have to part company. He did not make the wrong decision. As usual, he applied reason and science and resisted the political pressure. But it was for me a brief white-knuckle moment. HAASS: One last question, then I’ll open it up, which has also to do with Africa, but it’s a different question. You were the assistant secretary years before. When you look at the demographic projections, an enormous share, percentage, of the demographic increases in the world over the next couple of decades are going to happen in Africa. And the question is, what is—given that, plus climate change, plus poor governance in some places, what’s the optimistic case? Because when you look at Africa, what is it—how is it you avoid getting extremely worried? Or is it more conditional? Here’s what we have to do so the bad case doesn’t happen. What’s your take on it? RICE: Well, I don’t think, just because it’s growing fast in terms of population, that, you know, it is necessarily likely to be a bad-case scenario. First of all, the optimistic case is it is a continent with enormous human capital and talent and a continent with enormous resources and capacity for growth. It's also—many of these countries are among the fastest-growing in the world. HAASS: Yeah, sure. RICE: And, you know, what Africa, in my judgment, needs most at the moment is younger and more effective and committed leadership. That’s the biggest change or challenge that we face. And, you know, Africa is, as you know— HAASS: It’s hard to generalize. RICE: —fifty-four countries, right? So you can’t paint it with a single brush. And I think there’s a lot of, in the long term, in my opinion, reason for optimism. But, you know, we do have forces working the other direction. We still have conflict. We have environmental pressures, including climate change. But I also think there’s a great capacity for sustained growth and for growth that’s—you know, from which the benefits are broadly shared. So I’m not a pessimist in the long term at all. But I do think we’ve seen periods where the leadership deficit has been greater than others, and this is one of them. HAASS: Let’s open it up then. Again, you know the rules. Raise your hand. Let us know who you are and where you’re hopefully employed. And if you say you’re a consultant, we’ll know the truth. (Laughter.) Keep it short. And Ambassador Rice, as you can tell, is succinct and to the point. Yes, sir. Q: Hello. My name is— HAASS: Oh. (Laughs.) We’ll get you next. Q: OK. My name is Paul. I’m an officer in the United States Army. It’s a pleasure to be here tonight. And thank you very much for your thoughts. I’d like to pick up this thread on retrenchment or overreach. And really what seems to be at stake right now is when we would use military force and for what purpose. On the one hand, you talk in your book about norms, the responsibility to protect. On the other hand, maybe we’ve seen this administration, the use of force for strictly state interest. So in your experiences, when should we or ought we use military force, and for what purpose? RICE: Yeah, that’s like the textbook question to which I’ve discovered, over the course of my career, there is not a cookie-cutter answer. Obviously, when our direct interests and security are implicated and we need to, you know, act to defend ourselves or our people or our allies, that’s an obvious one. You know, and that can take, you know, the form of a state threat or a nonstate threat. But the harder question, as I’ve seen in different forms throughout my career, comes in the form of what do you do in a humanitarian crisis? In what context should the United States, and/or the United States in partnership with others, intervene for a primarily humanitarian purpose? And now we know that humanitarian purposes can range from combating disease to, you know, intervening to try to topple a dictator or, you know, proximate threats to civilians. And I think the answer in that case is each circumstance is different. And there isn’t, in my view, an easy doctrinal answer to that. And I actually don’t write about the responsibility to protect in those terms because, as much as it—(inaudible)—bit more complex. And even though I’d like to be able to think that we have the capacity to act in a manner consistent with our values and principles and save human lives where we can, my conclusion is sometimes we can, at an acceptable risk and cost, and sometimes we can’t. And we have to look at each in its context on the merits and in the broader scheme of what else we are engaged in, because our capacity is not infinite. And not every situation, in my judgment, lends itself to what, in moral and humanitarian terms, we might feel compelled to do. HAASS: You didn’t write about it in this book. Have you written about either Rwanda or Somalia, talking about— RICE: I did write about it in this book. HAASS: You did? (Laughter.) RICE: Sorry. You busted yourself that time. (Laughter.) I write at length about Rwanda and Somalia as a—(laughter)—as kind of fundamentally informing my— HAASS: OK. (Laughter.) RICE: —development as a policymaker. HAASS: OK. RICE: (Laughs.) HAASS: Yes. I did bust myself. Q: Hi. I’m Omeed Malik. I’m not a consultant. I run a small firm called Farvahar Partners. Ambassador, thank you for your time. I’m just curious. Do you have any sympathy at all for the current administration’s policies towards China? RICE: You had to use the word “sympathy.” (Laughter.) HAASS: Agreement. RICE: There was a—let me—I think that we face a significant and urgent challenge from China, particularly in the economic realm and with respect to technology, and that, while past efforts in the Obama and Bush and prior administrations to deal with them have yielded some results, they have not tackled the fundamental problem, which is, you know, that China is poised, through its capacity and its policies, to be a major economic threat. The question is, how do you deal with it? And so I agree that we have a challenge. I think we’re dealing with it almost altogether wrong. To me, for the United States to be maximally effective in pressing our economic agenda with China, we ought to be doing it in lockstep with our allies and partners—the Europeans, others in Asia, Canada. HAASS: Would that mean being in TPP? RICE: Absolutely. And instead we have isolated ourselves, not only by withdrawing from TPP, but by starting trade conflicts with our close allies, like Canada on steel and aluminum, and Europe in much the same vein, so that, rather than bringing these countries to join us in a concerted effort to compel China to change the rules in a direction that we think is fair and levels the playing field, we’re fighting this basically with one hand tied behind our backs. And we’ve, I think, way overemphasized tariffs as a tool to our own detriment, as well the detriment of the global economy. And I’m very much concerned that political pressure is going to mount on the president, now that we’ve gone down this road in a fashion that I wouldn’t have recommended, but we’re way down it, to cut a deal that, you know, may boost exports of agricultural products and maybe some manufactured goods, but doesn’t get to the fundamental concerns that we have about China’s, you know, structural threats. And then, on the security side, I don’t think we have approached that appropriately either. You know, there used to be a time when we had a security track and an economic track, and we worked pretty hard to keep those parallel rather than intersecting. And now, you know, for example, we offered to trade off concerns about Huawei, which are essentially security concerns, for some benefit on the economic side. You know, we talked about, you know, an approach to North Korea that might be dictated by our economic interests. To me that’s completely backwards and has left us, you know, without, you know, coordination in an effective way with China on these critical security issues like North Korea. We’ve jettisoned the cooperation agenda altogether, where we were actually getting important things done on climate, on nonproliferation, on nuclear security, you name it—development—and we have, you know, seemingly underemphasized other aspects of our security concerns in the cyber realm, in South China Sea, et cetera, et cetera. HAASS: Let me give you a backwards-looking question about China. The argument is that we were right to bring China into the WTO when we did near, what, seventeen, eighteen years ago, plus or minus—but that along the way, both forty-three’s administration as well as the Obama administration didn’t monitor it closely enough and we didn’t adjust the terms. So now the whole idea of integration of China is somewhat discredited, but the problem was not with integrating China but with how we went about it, that we weren’t tough enough as China began to grow and evolve. RICE: I think there’s an argument for that. I don’t think we were wrong to try to integrate them. And I also don’t think, by the way, that, you know, there’s going to be—that we can effect a clean, great decoupling either. I think that, you know, that’s smoking dope. (Laughter.) HAASS: Which is—I don’t even know if it’s legal or not in this state. (Laughter.) But yes, ma’am. Microphone’s coming toward you. Q: Hi. Casey Deering. I’m with the Department of Energy. Thanks for the conversation tonight. I wondered if you had any thoughts in particular with the current rhetoric that’s been going on about how we can improve public trust or enhance public trust in civil servants, especially those of us who work in national security and in the foreign-policy arenas, with a lot of the rhetoric around deep states and conspiracy theories. RICE: I’m really appreciative of that question. The first thing we can do is to stop denigrating them. And, I mean, I—this—there’s no issue of the moment about which I’m more angry than the demonization of our civil servants, Foreign Service officers, career military. I mean, it’s literally everybody in law enforcement, in the intelligence community, the national-security community, State Department, that have been painted with a single brush because they are patriots, because they are professionals, because they actually take seriously their oath to the Constitution. HAASS: But they have acquitted—I mean, the Bill Taylors of the world, they’ve acquitted themselves sensationally well. RICE: Extremely well. And the answer—the other side of the answer to your question is, on the one hand, we need our leadership to stop degrading and denigrating people, and frankly, aided and abetted by half the Congress. And we need these patriots who have come forward to get the visibility that they didn’t ask for but now deserve to show the American people just the quality and the integrity of the people who are working for very little money every day out of commitment to country to serve. So I think, in a(n) ironic and backhanded way, we’re going to have a moment where these extraordinary civil servants, and Foreign Service officers, and military officers are going to have an opportunity to show the country and the world the extraordinary quality of the people who do the jobs like yours every day. HAASS: Someone from this side of the room— yes, sir. Q: My name is Olivier Kamanda and I work at Facebook. About a year or so ago on a different social media channel, a former Obama communications director submitted a tweet, said—excuse me—who wants to run for Senate in Maine? There will be an army of supporters with you. Eleven minutes later you wrote: Me. So the question is, when? (Laughter.) RICE: And the short answer is, not now. (Laughter.) So do you we have—can I just tell this funny story behind this? (Laughter.) It will take a couple minutes. So this whole thing was—I’m walking in the Phoenix Airport, I’m getting on a plane. And as I’m walking through the terminal to get to my gate, there’s Susan Collins on the television screen giving her speech about how—you know, after an hour—she’s going to support Kavanaugh. And I get to my gate, and I’m actually on the phone with my husband asking—because I wasn’t able to stop and listen to what was going on—what did she say? And he said, she’s going to vote for him. And I said, damn it; I’m going to run against her in Maine. And my husband says, no, you’re not; hell, no. (Laughter.) And I just laughed and said—because I wasn’t being really serious. So then I’m standing in line—this is one of those Southwest flights where you line up, and I’m number one in the whole aircraft—never before or since—(laughter). And I’m on my phone, and I’m reading Twitter trying to, you know, see what’s going on and reaction to Collins, and I see this tweet from my friend and colleague, Jen Psaki. And something happened as I’m reading it, and I just—(laughter)—hit the M button and then the E button—(laughter)—and SEND. And then I—you know, I wasn’t really—I was not very serious. I get on the plane and my phone starts blowing up—(laughter). First it’s my husband saying—(laughter)— HAASS: The record will show you said nothing to us. (Laughter.) RICE: (Laughs.) And then—and then it’s my press aide calling me saying my phone—her phone is blowing up, what the hell is going on? And I realize I’m about to get on a cross-country flight. If I don’t say something between now and when I get off this plane, it’s going to be crazy. So then I write a follow-up tweet saying, you know, well, I was really disappointed in Collins, and I’m going to think very seriously about it, and—you know, Brett Kavanaugh is a bummer, and you know, boom. (Laughter.) And then I get on the plane. And so when I land there’s still some hullaballoo that I’ve created, but it was at a level reduced from had I not sent the second tweet. And then I actually really thought about it because I figured I’d, you know, opened my big mouth; I’d better give that some real consideration. And we haven’t talked about my background, but Maine is a place where I have deep ties going back over a hundred years. We have a home there that, you know, we have had for a long time. It’s where my mother’s family is from. And it’s not a thought that I hadn’t considered previously. It just came out spontaneously. But the bottom line is we have a daughter who is a junior in high school who devoted eight years of her life to a mother who was working pretty hard: in New York when I was at the U.N. when my family stayed in Washington, and then when I came back to Washington to be under the same roof, working pretty crazy hours. And this was not the time for me to again uproot her or absent myself to move to Maine to run for office. So the answer is not now. I don’t know if it will—if it will ever be yes. I don’t know if it will be Maine. I don’t know if it will be the Senate or if it will just be that I get to continue to maintain my freedom and tweet at will. (Laughter.) HAASS: Thank you for that definitive answer. (Laughter.) Yes, Ma’am—all the way in the back, over here. Q: Hello, Ambassador Rice. I’m Latoya Peterson, co-founder of Glow Up Games. One of the questions I had for you is building on the earlier question about China, which is about the perception of soft power and how America is being perceived in the world. In the world that I come from, in gaming, there was recently a point where an e-sports player was penalized for speaking out in favor of the democratic protests in Hong Kong. And one of the things that was so chilling and that a lot of the media picked on was that this was a comment made in America, but they were being punished so severely because of the economic investment that China has in the gaming industry. So it’s interesting to me to see how an ideal like democracy wouldn’t be defended on our own soil, and so what have you seen in the changes, I think globally, around the perception of American ideals like democracy? HAASS: First of all, before you answer, you’ll also get a chance to ask a version of that question because Adam Silver is going to be here in the not-too-distant future and will be talking about how the NBA handled the Houston Rockets. And again, the issue—and we’ll actually—also we’re planning an event at some point about American films and the question of how—their freedom for content; if you want to market in China, what sort of compromise—so I think this is a—this is a big and growing issue. I didn’t mean to— RICE: No, no, it’s good to plug Adam Silver. You know, I think this is going to be a bigger and bigger challenge, particularly for American companies, but also for American policy. And my own view is that, you know, companies need to be aware of the world in which they are playing; that, you know, China is becoming more and more aggressive and assertive in this whole realm in trying to shut down anything that they don’t like with respect to speech and democratization, human rights. They are being extremely extraterritorial about it. And they are going to punish people. And my view is that, you know, the companies that are going to succeed—if they are American-based companies or originally American companies—are the ones that aren’t going to take that crap, that aren’t going to be intimidated. Now there are going to be some that feel that they have to compromise, and I think that was interestingly the challenge that the NBA wrestled with, and went back and forth, and finally landed on, you know, the right place. But— HAASS: At some potential financial cost to the NBA. RICE: Yeah, and they’ve eaten it. Now if they were to go, you know, try to tack back in the other direction, they’d risk, frankly, alienating their American customers. HAASS: And their players. RICE: So I think they figured it out. But, you know, I think before you end up in the kind of challenge that the NBA had, you know, you need to be mindful—big companies and small companies—about how this is going to play out. And, you know, for some of our tech companies that are, you know, prepared to make arrangements or cut deals with China that enable them to have some access on terms that, you know, they would never get away with back here, and then, you know, have hesitations about partnering with the U.S. government on certain things, I think there is a certain irony there that I think needs some careful consideration. You know, there are—we are increasingly facing a world where China is compelling companies to embrace a national identity at a time when, you know, we’d been moving away from that. And as far as I’m concerned, you know, the American companies need to know who they are, so— HAASS: Since you mentioned China, a real—imagine you were still in your old job. You had the events of the last few days, weeks, and months in Hong Kong. What would you be doing now to try to influence the trajectory of events? You know, I was at the White House during Tiananmen—during that time and how we tried to balance it then, tried to preserve a relationship, at the same time stand for human rights. How do you—how would you handle this? RICE: I mean, that’s what I’d be trying to do right now, but with the emphasis on standing for human rights. And we’re not. We’re silent or we’re worse. We’ve basically said—if the reporting is to be believed—to Xi Jinping that we’re going to keep quiet on Hong Kong and largely, from the White House, at least, we have. I think that’s a grave mistake and, you know, in many ways we’re paying the price because of—a perception that the Chinese are stoking is that we’re behind all this, which of course we’re not. But we’re not actually speaking out and standing up in a way that, under almost any prior administration, I think we would have in defense of free, fundamental values and principles that are really not ambiguous at this point. HAASS: I think I know the answer to this question, but if you were still in your old job, would Mr. Erdogan have had the experience he had yesterday? RICE: No. How about you? HAASS: No. (Laughter.) See? We can agree. Yes, Ma’am, on the front row. RICE: More often than not, I would think. HAASS: Yeah, probably more often—we’re going to over, I’m going to warn—we have our—I think the schedule is we’ve got this meeting, and then we’ve got a half-hour break, and then we’ve got the Middle East meeting. Do you have a few minutes? Can we— RICE: I got about five or ten minutes. HAASS: OK, we’re going to go to 6:05. We’re going to take five minutes of your social time because having Susan Rice here is too good of an opportunity to miss. Q: Thank you, and what a great opportunity. Thank you, Ambassador. You’ve talked—you oversaw— HAASS: Please introduce yourself. Q: My name is Vanessa Fajans-Turner. I work with the Earth Institute at Columbia. You oversaw a great period of action on climate change as a national security threat, oversaw a report that identified it as such, and increasingly we’re seeing opportunities and moments when international intervention in the right to protect could feasibly apply to things like fires in the Amazon, et cetera. Was there ever a moment during your time when there was some sort of conversation about potential intervention, or engagement, or going against national interests because of climate or environmental issues? RICE: Not that I can think of in those narrow terms, but I think, you know, as we wrote in that report—and it was sort of a theme during the Obama administration—we saw climate change as a national security threat, in part because it was a force multiplier for all these other threats: for droughts, for floods, for famine, for conflict, and displacement. And so, you know, we did find ourselves looking at questions of intervention for those effects—second-order effects of climate change, you know. When you—you know, when you intervene following a massive cyclone in the Philippines, for example—which we did—or in the Clinton administration in Mozambique to deal with the consequences of flooding—but no, not something as narrowly defined as you put it, but I could see it becoming a real question in the future. HAASS: Actually, I ended up writing a piece arguing that Brazil had an obligation because the Amazon was of significance not just to Brazil— RICE: Of course. HAASS: —but to the entire world, so— RICE: But try telling Bolsonaro that. HAASS: I did. I got a protest in this job from the Brazilian government. RICE: Did you really? HAASS: Yeah. (Laughter.) It’s one of the few protests I’ve gotten in my private capacity. Yes, sir. RICE: Well, that’s interesting, though, that they—they come—Brazil is coming to you—not China—Brazil is coming to you to protest a public statement you make as a(n) independent commentator. HAASS: Yes, Ma’am. (Laughter.) RICE: I don’t think that would have happened years ago. Go ahead. Q: Hi. Jay Hallen from Capitol One. Thank you for being here. I wanted to ask you about, in 2016, if you could walk us through when and how you learned about Russian interference in the election, and the discussions and options that you and President Obama discussed. RICE: Yeah. I walk you through that in depth in the book—(laughter)— HAASS: Yeah, it was really one of the best parts, so—(laughter)— RICE: Well done. So I really—I do spend time on that, and I’d commend it to you because it’s not something I can give you a two-second answer on. We learned about it in the starkest terms, as I write, in early August of 2016 when what we learned was that what we were seeing had been directed from the highest levels of the Russian government. And then I talk through all of the considerations we had in trying to prepare to retaliate, harden our systems, provide adequate information to the American public, et cetera, et cetera. And I also talk about, you know, where I think we got it right and where I think we missed a few things. So I’d encourage you to read it. HAASS: Based on the latter where we think—you think we missed a few things, what would you now be signaling the Russians or anybody else? Here we are, we’re literally fifty, fifty-one weeks away from our next election. What would you be signaling now? Is there—obviously we take all sorts of steps to protect ourselves, make ourselves less vulnerable. We can never be invulnerable. What do we do—what tools do we have for deterrence? RICE: Well, I think we—and I write about this—we obviously still do have economic— HAASS: Sanctions. RICE: —tools for deterrence which we employed, at the end of the Obama administration—and I argue that in retrospect I wish we had employed even tougher economic penalties. We weighed the question of whether to impose sweeping sectoral sanctions on Russia, going after the energy sector, other sectors. And we held back from that for a couple of reasons, even as we did impose some significant sanctions. One was because they would have had a(n) immediate adverse effect on our European partners, almost commensurate with the negative impact it would have had on the Russians. And at the time we were trying to maintain European unity around the Ukrainian-based sanctions, which were not by any means a guaranteed outcome. The Europeans were—some in Europe were getting nervous about maintaining sanctions on Ukraine. And the other concern we had, as I wrote, is that we had an incoming administration that was arguably already signaling to the Russians that they were going to take care of the sanctions, so to speak—undo them or roll them back. And that also played into our thinking. But I think that is a tool that we have underutilized still to this day with Congress and the administration not employing the economic tools that are at our disposal, so I think we could make them feel more pain, but the other thing we can do is more on our side. As I write in the last chapter of the book, I truly believe that our domestic political divisions are at the moment our greatest national security vulnerability, and for many reasons, but the most obvious being that our adversaries, including Russia, are doing their utmost to increase and exacerbate those divisions, and can discredit democracy, weaken us as a global rival and player without ever firing a bullet if indeed they take their efforts to the ultimate extreme, which is what they are trying to do every day on social media by playing in the most raw of our political fault lines, whether it’s on race, or immigration, or guns, or what have you. And so I think there’s more to this than I can say in the time we have, but there is a great deal we need to do, all of which can’t be accomplished before next election cycle, but to be far more witting of what is being done to us, and how we make it feasible for adversaries to do that and to take the kinds of steps that are in our capacity to take to begin to address and to heal those divisions. HAASS: I want to thank Susan for three things: one is for being with us tonight and getting us off to such a start—the Term Member Conference—a former term member, who better? Secondly, for her many years of public service. It is a—it’s the best thing you can ever do, but it’s also the most demanding thing in many ways that you can ever do. RICE: It is the best thing. I would highly, highly recommend it. HAASS: Highly recommend it. Find a way to do it. You will benefit from it as will your country. And then thirdly, I recommend that all of us read the book. (Laughs.) (Applause.) RICE: One point of seriousness on that. I do hope you will read it, and not least because many of you are at stages in your careers where I was during a large portion of this book. You know, I made the transition—I was young as an assistant secretary, I was young as an NSC staffer—I started at twenty-eight on the NSC—and then at thirty-two I was an assistant secretary. And then at thirty-six I had exhausted my runway in the area of expertise that I had worked in which was Africa, so then what do you do? And, you know, the insights I try to share as to how I managed that challenge may be relevant to a number of you. HAASS: The book I should say is on sale. The premium is not excessive—(laughs)—but again, thank you for doing this. RICE: Thank you, guys. HAASS: Good luck with it, and— RICE: Thank you. HAASS: —you’ve got a short break, and then you come back at 6:30 for a truly depressing session on the Middle East. (Laughter, applause.) (END)
  • Iran
    1970s Oil Crisis Redux or Oil Price Rout?
    It has been four weeks since a major military attack on critical oil facilities in Saudi Arabia shocked the world and very little has happened to suggest such an event couldn’t happen again. That begs the question: Why are oil prices falling? If you are a politician sitting in Washington D.C., it could be tempting to explain the calm as stemming from the changed crude oil supply situation of the United States where rising crude oil production – now exceeding 12 million barrels a day – has allowed the United States to become a major crude oil exporter. Citigroup is projecting that the startup of a new Texas oil pipeline will allow U.S. crude oil exports to expand into 2020, up from the 3 million b/d recorded over the summer. That’s created the impression that rising U.S. oil production can replace any disruption from the Middle East. Unfortunately, the numbers don’t actually suggest that. Before the United States takes an energy independence victory lap, it could be wise to consider that America’s crude oil import balance isn’t all that different than it was ahead of the 1973 oil crisis. Yes, that’s right. You did not misunderstand me. I am saying we relied on the same percentage of crude oil imports in 1972 as we do today. In 1973, the United States was a crude oil importer. In 2019, the United States is a crude oil importer. The United States still has to worry about a major disruption in global oil supply. Here are the numbers: In 1972, the United States consumed an average of 16.4 million barrels a day (b/d) of oil. That same year, U.S. crude oil production was 11.2 million b/d and imports of foreign crude oil, to the tune of 5.2 million b/d represented 32 percent of U.S. consumption. By the fall of 1973, U.S. crude oil imports were about 6.2 million b/d. In July 2019 (the latest month for official U.S. government statistics), U.S. crude oil production was 11.9 million b/d, an impressive rise since 2008 when U.S. crude oil production bottomed out at 5 million b/d. Oil consumption in July 2019 was 21.1 million b/d. The deficit of 9.2 million b/d of crude oil or 43 percent of U.S. consumption is complex. That’s because U.S. shale production includes an additional 4.8 million barrels a day of natural gas liquids, some of which can be used in U.S. oil refineries. Ultimately, the United States imported about 7 million b/d of crude oil from other countries in July 2019. We exported 2.9 million b/d of U.S. light sweet crude oil from tight oil plays in Texas, Oklahoma, and other states for net crude imports of 4.2 million b/d. The net import number is about 20 percent of U.S. oil consumption, better than the 32 percent in 1973, but not enough to matter. The 7 million barrels a day of physical crude oil imports from abroad, which includes oil from Mexico and Canada, is 33 percent, roughly the same level as in 1973. The United States is, however, also a large exporter of refined products. Presumably, in an extreme war situation, the United States could limit those exports to prevent physical shortages in the United States. Saudi Arabian oil production represents about 10 percent of global oil supply. If it were substantially knocked out by a second or third military attack, it would be hard for U.S. oil producers to replace that amount of oil in a short period of time. Saudi Arabia was exporting 7.4 million b/d of crude oil prior to September 14 when a combination of cruise missiles and attack drones damaged major crude oil processing plants at Abqaiq and important facilities at the large 1.5 million b/d Khurais oil field. Expedited repairs and redundant equipment and facilities have allowed Saudi Arabia to restore export levels quickly, but a second attack would be harder to bounce back from. Spare oil production capacity is constrained and inventories are being drawn down. Moreover, other regional oil facilities in Southern Iraq, in the United Arab Emirates and in Kuwait could be vulnerable to similar attacks. By comparison, U.S. oil production grew close to 2 million b/d in 2018 and that was an amazing technical accomplishment, but it is less likely that U.S. producers could increase output by three, four, or five million b/d in short order to replace lost Saudi or Iraqi barrels. It would likely take the United States several years to achieve this larger level of increase. While U.S. tight oil production from shale could be expected to increase in three to six months following a major rise in oil prices, bottlenecks could hinder a fast response. Hiring additional work crews, purchasing drilling equipment, and other logistical obstacles could slow down the U.S. industry response initially. The time lag could leave markets more vulnerable to any major disruption of oil from the Middle East that lasts longer than a month or two. U.S. shale production grew less than 1 percent in early 2019 as operational issues plagued firms such as Concho Resources, which suffered a production setback when the company found it was placing its wells too close together. Stock values of some smaller U.S. independent oil producers have taken a beating this year, and some speculators are positioning themselves in credit swaps markets to benefit from any fall in oil prices that could worsen U.S. shale producers’ performance. Institutional investors and their hedge fund managers have seen volatile returns since 2014 when holdings in shale companies turned suddenly negative from the collapse in oil prices. As a result, easy capital to expand drilling programs in the event of an oil price rise could be harder to come by this time around. Giant U.S. independent oil producer ConocoPhillips just announced it was raising its dividend by 38 percent and buying back 5 percent of its shares in an effort to please investors. All of this should mean that oil prices should be carrying a war premium. Instead, prices are falling. Cornerstone Macro suggests in a recent note that it is possible that oil markets have “deduced from all this that the odds of a negotiated way out of strife and sanctions, and an imminent return of Iran’s supply to market” is built into oil price expectations. The macro analysts say they are “less sanguine” about that outcome. It does seem optimistic under the circumstances of escalating attacks on regional oil facilities since January 2018. Europe, Japan, and most recently Pakistan, have actively tried to defuse the conflict between Iran and Saudi Arabia. But even if a ceasefire does seem to take hold in Yemen, for example, the military leverage Iran has over major installations of its neighbors would not be alleviated unless the region saw some substantial movement towards demilitarization of weapons systems. That seems unlikely given the number of active conflicts and internal protests across the Middle East. Another explanation for falling oil prices are fears that oil demand will sink significantly in 2020 as recession grips major economies. Oil demand in the industrialized economies fell by 400,000 b/d in the first half of 2019, compared to a year earlier, including a 200,000 b/d drop compared to last year for Europe’s big five economies – Germany, France, UK, Italy and Spain. Sentiment is that continuation of the U.S.-China trade war will start to take its toll on Asian oil demand as well, though Asian oil demand is expected to average 28 million b/d this year, up from 27.1 million b/d in 2018. Global oil demand is running about 1 million b/d higher this year than 2018 levels. There could also be a simpler, structural explanation for languishing oil prices. There are fewer speculators willing to bet the price of oil up. Many of the heady oil traders known for making big bets have retired in recent years.  Also hedging by oil companies in which shale firms sell their production forward to lock in oil prices as they were rising this fall has effectively kept a lid on the market. The combination of these two market features has lessened the momentum to speculative bubbles in oil. Long-term investors also worry that oil demand will peak eventually as new oil saving technologies take hold and governments act to limit greenhouse gas emissions, and this has reduced interest in long-short commodity funds. Still, on September 14 when Saudi Arabia’s oil facilities were attacked, U.S. oil prices went up 15 percent in one day. Traders who were betting the price of oil would continue to go down had to adjust their bets and that created a large price increase. The problem with Iran has not, in fact, been resolved and markets could see a similar black swan event. Any global event will affect U.S. markets, regardless of how much oil we have at home. Oil is a global commodity and its pricing is determined by global supply and demand. Since the United States is part of the global market and imports crude oil from abroad, U.S. crude oil prices are influenced by global pricing trends. The easiest way to explain this phenomenon is to consider water in a swimming pool. If someone comes with a giant bucket and takes water out of the shallow end of the pool, the water level goes down not just in the shallow end of the pool but for the entire pool equally. By the same token, if more water is put in the pool by a water hose, the water level goes up throughout the pool and not just on the side where the hose pours in. The oil market is the same. If the oil market loses Saudi or Iranian or Iraqi oil, all oil commodity prices are affected for all users of oil, not just users of the disrupted oil. Washington pundits could be advised to keep that in mind as they consider how the United States will prepare for the volatile situation across the Middle East. 1973 could seem like a long time ago and U.S. production could be rebounding, but it is not the case that the U.S. no longer has to “care.” There are 276 million vehicles on the road in the United States of which 99 percent run on oil. We should change that, but so far, we are not moving quickly in that direction. Just saying…
  • China
    The President’s Inbox: Admiral William McRaven on Technology, Innovation, and Special Operations
    The latest episode of The President’s Inbox is now up. My guest was Admiral William McRaven (Rtd.), a member of CFR’s Board of Directors and the co-chair of the recent CFR Independent Task Force on Innovation and National Security. We began by discussing the task force’s recent report, Innovation and National Security: Keeping Our Edge. We also spent some time discussing his terrific new book, Sea Stories: My Life in Special Operations. First, the task force report. It warns that the United States risks losing its global technological leadership to China. The reason is straightforward: Beijing is ramping up investment in research and development while Washington is ramping it down, as this video details. At the same time, Chinese students are flooding into STEM (science, technology, engineering, and math) fields and American students aren’t. The difference is staggering:   The consequences of losing America’s technological lead are easy to spell out—a less competitive economy, slower economic growth, weaker job growth, and the erosion, and perhaps even disappearance, of the strategic advantages the U.S. military has held since the end of World War II. Admiral McRaven would like to see the United States repeat its “Sputnik moment,” recalling how the Soviet Union’s launch in October 1957 of the world’s first satellite spurred the federal government to invest massively in science and technology. He favors launching what the task force report calls “moonshot” efforts to support “innovation in foundational and general-purpose technologies, including AI and data science, advanced battery storage, advanced semiconductors, genomics and synthetic biology, 5G, quantum information systems, and robotics.” Admiral McRaven acknowledges that the United States also needs to do more to prevent Chinese theft of U.S. intellectual property and to curb its predatory economic practices. But he warns that fundamentally: This isn’t about China, it’s about the United States and about what we can do to, again, improve the [talent] pipeline, take a look at investing in basic research and investing in universities … It’s just that China provides us the impetus to look at the things we need to do across the spectrum in the United States to continue to stay ahead of China. On that score, Admiral McRaven, a former chancellor of the University of Texas system, is optimistic that the United States can do more to encourage U.S. students, and especially minority students, to pursue STEM careers. “The technology will invariably change over the next ten years,” he told me. “If we can develop the talent, the technology will come.” We closed our conversation by discussing a few of the experiences Admiral McRaven recounts in Sea Stories. What struck me most about the book and our chat was how quickly he acknowledged the contributions and accomplishments of others. So I asked him about it. His response was to the point: I hope what people take away from the book is that it’s not about me, it’s about the people that I worked with. It is about, again, these incredible soldiers, sailors, airmen, and Marines that were part of this story throughout my thirty-seven-year career, and their heroism and their sacrifice. If you want to read more about that heroism and sacrifice, you should check out Admiral McRaven’s other best-selling book, Make Your Bed: Little Things That Can Change Your Life…And Maybe the World. If you are interested in learning more about the future of innovation, consider reading Kenneth Gibbs’s piece in Scientific American on the importance of diversity in STEM education—one of the challenges the task force report stressed. Another informative piece is Lara Seligman’s discussion of the sometimes frosty relationship between Silicon Valley and the Department of Defense. And Elizabeth Howell has a primer on DARPA—the Defense Department agency that gave us the Internet among other technological innovations. Margaret Gach assisted in the preparation of this post.
  • Technology and Innovation
    Innovation and National Security, With Admiral William H. McRaven
    Podcast
    Admiral William H. McRaven, professor at the Lyndon B. Johnson School of Public Affairs, discusses the CFR-sponsored Independent Task Force report, Innovation and National Security: Keeping Our Edge, with James M. Lindsay. The report outlines a strategy to ensure the United States remains the predominant power in a range of emerging technologies, and the national security implications if it fails to do so.
  • Saudi Arabia
    Progressive Foreign Policy: A Conversation With Senator Chris Murphy
    Play
    Senator Murphy discusses his progressive foreign policy vision and national security interests in Yemen and Saudi Arabia.  TALEV: Thank you. I’m going to be really concise, conciser than normal, this morning because the Senator actually has somewhere to be a little bit early, so we’re going to do half an hour of the you Q&A in twenty-five minutes. So we’re going to make this happen. Good morning. Welcome to today’s Council on Foreign Relations meeting with Senator Chris Murphy. I’m Margaret Talev, the politics and White House editor for Axios, and I will be presiding over today’s discussion. Senator Murphy, as you all know, is the junior senator from Connecticut. He is a member of the Foreign Relations Committee, and the top Democrat on the Subcommittee for the Near East, South Asia, Central Asia, and Counterterrorism, which will explain all of his planned adventures this summer, most of which got cancelled and redirected. He is also a leading advocate, as all of you know, in the bipartisan push right now for a gun control package that the president or Republicans can get behind. And his congressional district before joining the Senate included Newtown, Connecticut, home to Sandy Hook Elementary. So with that introduction, Senator Murphy, please come on up, make a few comments, and then we will move to this portion of the conversation. Thanks, again, all of you for being with us. (Applause.) MURPHY: Well, thank you very much, Margaret. I’m excited to spend some time with you here on stage. Thank you to all of my friends at the Council for having me back once again, and for all the great work that you do to keep the foreign policy community connected to Congress here in Washington. I want to talk to you a little bit this morning, for about ten minutes or so, about the future of what I will call progressive foreign policy, with an eye towards the next administration. In the two Democratic debates that we’ve had so far, if you count generously, candidates about spent about thirty minutes talking about foreign policy out of nine hours of debate. That’s less than 6 percent of the time on stage. And only two of the candidates have released anything that could be fairly characterized as a foreign policy plan. And we’ve seen a lot of plans from candidates. I get that primary elections generally aren’t decided on international issues, and this one probably isn’t going to be different. But if tonight’s debate plays out like the first two, I’m going to actually stat getting worried for my party for two reasons. First, I just think Democrats who are running for president have a civic responsibility to flesh out their vision for the world before they sit in the Oval Office. If Congress remains divided, then it’s going to be foreign policy where the next president has the most discretion. And I want a president who has given some real, deep thoughts to these big, hairy questions of how America intersects with the world before they get there. But second, I think in the last few months, and indeed just in the last few weeks, we have seen a major opening for Democrats to seize on the issue of national security. Trump won the election in part by selling himself as a deal maker who could get big things done with Iran and North Korea on nukes, with China and Europe on trade, with Mexico on the wall. But Americans are now coming to grips with this realization that none of those deals are getting done. It’s the most potent indictment of those dealmaker claims. And Trump’s casual flirtation with war with Iran, and his waffling on troop levels in the Middle East have made Americans really worried that Trump can keep us safe. Now, Democrats maybe can’t completely close the national security gap with Republicans that traditionally exists. But Trump gives us reason to try, because if we did we could make more progress on this gap, this election, than in the past. And that might make the difference in 2020. So here are a few thoughts to chew on, a little unsolicited advice for the small cadre of foreign policy thinkers who are advising our 2020 candidates. First, let make a simple argument, and it’s this: There is almost no important domestic progressive value that can be advanced without a foreign policy complement. You care about repairing America’s broken democracy? Well, the better China gets at exporting the tools of tyrants, the less check Russia feels on its efforts to manipulate foreign elections, then the less healthy our own democracy becomes. You want to focus on immigration? Well, the less involved America is in fixing broken counties in Central America the more refugees show up at our borders. And guess what? The xenophobic national movement is, indeed, global. When antiimmigrant parties score victories in Europe it strengthens the hand of similar movements here. Now, your priority is the climate? Well, you can’t save the Earth without global engagement. And rejoining Paris is just the easy part. After that, we need a massive global diplomatic effort to convince countries to comply. My point is this: Even for the Democratic candidates who say it’s time to focus on American problems, our issues don’t exist in a vacuum. If you care about democracy, or human rights, or the environment here, then you have to care about these fights everywhere. And you need to be engaged on them everywhere. But of course, there’s another reason for America to reenter these values fights. The world is a safer place the more people have access to self-determination, and freedom of speech, and protection from persecution or discrimination. The ideas that undergirded the post-World War II order have not suddenly come undone. Democracies still tend not to attack each other. Countries where women have equal rights to men, they breed fewer terrorists. Participatory democracies and open economies are still the best protection against instability. And of course, progressives should never cede ground about which party or political movement cares more about protecting America. We put our nation’s security first. And that’s why we think that we should put democracy promotion, and human rights, and climate change, back at the center of American foreign policy. Now, really, in some ways, that’s the easy stuff, elevating our game on these critical topics. Here’s the tougher sled, and it’s what I want to spend just a little bit more time talking to you about this morning. The foundational crisis that the next president will face is that his or her foreign policy toolkit, the levers that the president can press to try to protect and advance our interests abroad, is basically a 1988 Ford Taurus on a road that is crowded with shiny new Teslas and Land Rovers. Our obsession with defense buildups in a world where the most significant threats to the United States are not conventional military threats, and our refusal to create capacities to meet our enemies where they exist—this destines to slide us into global irrelevance, unless we figure out a new way to meet modern threats with modern capabilities. Now, before I go through a few of these new tools that the next president is going to need in order to be successful, let me give you just two examples of how our current toolbox is totally failing American national security interests. First, let’s look to Ukraine, where a new reformist president, who I met in Kyiv for the first time last week, is trying to deescalate tensions with Moscow. The American response to Russian aggression in Ukraine has been mostly a military one, because that’s what we do. Four billion dollars a year in new troop and equipment deployments to Eastern Europe, radar systems, javelin missiles, troop training packages for Ukraine. But Putin doesn’t change his behavior. Why? Well, because Putin actually doesn’t want to march his army on Kyiv. He wants to politically and economically destroy the country so that they eventually tire out and decide to cut a deal and return to Russia’s orbit. Brigades and missile systems aren’t a bad idea, it just can’t be our only idea. Putin delights when we spend $4 billion on military hardware and virtually nothing to try to break his energy grip on Europe, or attempts—or his attempts to hack into and disrupt the Ukrainian economy, or to use bribery to undermine an already corrupt military system. We’re not meeting Putin where he sits in Ukraine and the region. Second, let’s look at how the American government today is dealing with the global information war. China, Russia, North Korea, terrorist groups, they’re all putting billions of dollars into manipulating information flows around the world, especially in sensitive political environments. Now, it’s taken us way too long to catch up, but finally a few years ago Senator Rob Portman and I passed legislation establishing a new center at the Department of State, the Global Engagement Center, to combat global propaganda. Now, that’s the good news. The bad news, the money’s not in the State Department. The money is in the Department of Defense. And so the Department of Defense is quietly ramping up its antipropaganda messaging operation because, well, they’re the only ones who have the money to do it. Now, it would be more effective to empower voices in countries on the front lines of Russia or China’s information wars rather than American military bureaucrats. With small budgets, you can only afford to entertain small ideas, so we’re not thinking about funding high-quality content to help independent media outlets or funding a Russian language version of Al Jazeera that could be a real alternative to Russian satellite channels. There are hundreds of other examples of how badly we bungled our smart power tools, but the bottom line is this: the obsolescence of American foreign policy—of the American foreign policy toolkit is the real crisis. And building a new toolkit serves progressive values in two ways. First, it allows us to more effectively fight for democracy and human rights in climate, which are both domestic and global priorities for progressives. But creating more effective national security capabilities and relying less on the bluntness of raw military power and arms exports, it will get us into less dumb wars and military conflict. That’s a progressive value as well. Now, listen, we shouldn’t let our guard down. We’re never immune to a conventional military attack, and neither are our treaty allies. And I do believe that peace comes through military strength. I’m not arguing for a massive downsizing of our military budget. But there is such a thing as too much of a good thing, especially when military spending comes at the expense of creating capabilities that actually meets the threats that we face. So what do we need in this new foreign policy—this progressive foreign policy toolkit? I’ll end with just a few ideas. Number one, we desperately need more economic leverage around the world. In the Cold War, there were two superpowers. We, frankly, didn’t need to be that nimble to win economic friends because your only other choice was the communist Soviets. Not so today. The Chinese, the Indians, the newly semi-capitalist Russians, the Gulf states. Everyone is looking to win friends over to their value system based on economic relationships, and we’re losing out. Consolidating our international development agencies, it was a nice start, but we need to supercharge the investments that America—still the world’s biggest economy—can offer other nations. For instance, the Chinese are developing a model where they midwife a technology in their closed government-subsidized and controlled economy, and then they release it onto the world at a dirt-cheap price. Now, we need to have an answer to what China has done with 5G, and what they’re going to do with advanced batteries and AI in the next decade. And it can’t just be a robust campaign of shaming other nations who partner with Chinese companies. We need to put real public dollars, ideally in coordination with the Europeans, behind partnerships with Western companies who want to develop true competitor products to Chinese tech exports. Number two, progressives shouldn’t be afraid of new multilateral trade deals. Free trade can be a progressive idea. Now, we should rework the Trans-Pacific Partnership so that it’s less friendly to corporations and more friendly to workers and the environment, but it’s a mistake for progressives to not see trade policy and critical statecraft. We can use trade agreements as a way to export our values and our interests. We shouldn’t forsake this tool just because we signed some bad trade deals in the past. Number three, let’s get really serious about supporting existing democracies and fighting corruption in all countries, whether or not they’re democratic. If you total up all the money that the U.S. Department of State spends annually on protecting democracy and fighting corruption abroad, it’s about $2 ½ billion. Now, that sounds like a lot of money, but that’s as much money as the Department of Defense spends in two days. And it, frankly, pales in comparison to the amount of money that China, and Russia, and others are leveraging to undermine fragile democracies. So how do we do this? Well, here’s just one idea: Let’s create a new category of foreign service officers dedicated to fighting corruption abroad so that every single embassy in the world has one or more dedicated American staffers that put on—that are working on putting and protecting the rule of law first and from attack. Number four, and lastly, we need to harden the State Department and USAID. I always think back to this trip I took in 2011 when I was visiting Western Afghanistan. We met with a capable group of Army commandos who were protecting Afghan farmers from attacks by the Taliban. And that was great. What was not so great, the farmers that were protecting were growing poppy and selling it to the Taliban who now, with this American protection, at least paid for the crop, instead of having the Taliban steal it. What those farmers really needed were agricultural advisors to help them grow another crop and Afghan-speaking political advisors to help them negotiate a détente with the Taliban once the poppy supplied disappeared. But because all we can do in dangerous conflict zones is deploy twenty-year-old commandos, we are stuck guarding the poppy fields for the enemy. Or in Syria, where during most of the conflict over the last decade you know how many State Department advisors we’ve had side-by-side with our thousands of soldiers there? One. General after general tells us Syria is a political, not military, problem. So why don’t we have diplomats there? Well, because we haven’t developed any real hybrid class of diplomat warrior, despite the general failure of soldiers to do effective diplomacy. That can change. And progressives should lead that effort. And these are just four ideas. They’re the tip of the iceberg when it comes to new capabilities to meet Russia and China extremist groups where they lie. But the lack of creativity in American foreign policy today is maddening to me. But as I said, so is the lack of attention to serious national security thinking amongst leading Democrats. And if we don’t start thinking outside of the box about how to bring progressive values to the world stage, then no matter how the next president reorients American priorities, he or she won’t actually be able to effectuate new goals with the same military-heavy toolkit that exists today. Recognizing the new realities of the threats that we face and shifting our capabilities to meet these threats, that should be the goal of progressive foreign policy. This shift will benefit progressive values at home and keep us from falling into more ill thought out wars of choice abroad. Thank you very much for your time this morning, and I really look forward to a good discussion. Appreciate it. Thank you. (Applause.) TALEV: (Off mic.) MURPHY: (Laughs.) I am going to watch the debate. I didn’t watch all of the first two, because it was just hard to follow that many candidates. This one will be a little bit easier. TALEV: The seven-hour climate change debate? MURPHY: What’s that? TALEV: The seven-hour climate change—it wasn’t a debate; it was a town hall. MURPHY: And I guess—listen, I made the point that my friends who are running for president should be thinking more about foreign policy and that those that are questioning them should ask them more about it because it’s important. But I would also argue, it probably would expose some interesting differences between the candidates. If all you’re interested is fireworks on the debate stage, I imagine if you asked some pretty complicated questions about the negotiations with the Taliban or the future of U.S. relations with Israel, you might get some distinctions in the way that the candidates on that stage present their arguments and their beliefs. And so, yeah, I think there’s a lot of good reason for it to be a bigger part of the debate tonight and going forward than it has been. TALEV: I’m going to ask you about John Bolton, because we’re all thinking about it. But I want to ask you, just in terms of the Democratic field right now, as far as you can tell who do you think actually has the most substantive sort of built out foreign policy plan? I know you haven’t decided to, you know, publicly support anybody yet, but does everyone have a robust foreign policy team? Are you familiar with who everyone’s advisors are? MURPHY: No, I think it’s remarkable that there has been so little serious discussion of foreign policy proposals and priorities thus far in this campaign, especially because, as I mentioned, there’s been no shortage of serious thinking about policy. So there’s dozens of domestic policy plans that have been released by these candidates. But as far as I can tell, none of them have put down on the table an idea—their idea for what American presence in the Middle East will look like during their four or eight years in office, or what they would do alternatively in Syria or in Afghanistan. I get it. There’s maybe not a lot of demand for that amongst voters in Iowa or New Hampshire. But if you haven’t thought about those questions before you show up at the Oval Office, it’s hard to make it up on the fly. Bernie and Elizabeth have given speeches or written pieces outlining some of their basic priorities. Pete Buttigieg has given some interviews on this topic. Obviously those who come from the Senate, you know, have a just built-in set of experiences and expertise. Cory is on the foreign relations committee. But I think it’s really fascinating how little this discussion has been present. And I think that needs to change. TALEV: Do you think the phrase, “progressive foreign policy,” is there an agreement on what that means? Because I see different people use it in different ways. There’s a piece in The Atlantic this morning that, I’m paraphrasing, but the headline is something like: The problem with progressive foreign policy, or why it can’t work. And I’m just—I think I understand the rhetorical appeal of the phrase, but does it mean the same thing to everybody? MURPHY: No, it probably—it probably doesn’t. And, you know, the case that I’m making here today is that we should perhaps sort of simplify the discussion that we’re having about progressive foreign policy. I think we should connect our domestic progressive priorities to the fights that we have abroad. We need to understand that if you’re fighting for democracy here, if you’re fighting for human rights here, you have to be engaged globally on these issues. And, second, I do think that what does unite progressives is the idea that we should learn from our mistakes in Iraq and Afghanistan, while not withdrawing from the world. A progressive foreign policy is one in which we give the presidents the tools to succeed globally, other than the deployment of American troops or the export of American arms. I think that’s at the center of progressive foreign policy, right? We want We want a role in the world, but we want that role to look different than what has been available to prior presidents who really, when they saw a crisis, could only respond to it militarily. And that’s why I’m talking about capabilities. That’s why I’m talking about the nuts and bolts of what a president has at his disposal in order to respond in Ukraine, or in Syria, or in Central or South America. I think a progressive foreign policy is about capabilities. It’s a much more concrete discussion. And I think it ultimately gets us to the place where we want to be, which is forward-deployed with less chance that we get into dumb military conflicts, or we export weapons that end up facilitating or fueling dumb military conflicts. TALEV: Is it an anti-war platform? MURPHY: It’s not an anti-war platform in the sense that we always reserve the right to use military force in order to protect our interests abroad. But it is a recognition that, you know, over the last thirty years the threats that we faced are, by and large, not conventional military threats. But we don’t have the capabilities to meet Russia or China where they exist. And often, we try to—we try to create an adversary that is focused on fundamentally unconventional military attack. That’s why I make this point about Putin’s aims in Ukraine. Yes, he has figured out a way to sort of create hybrid military conflict, in which he’s invading without really invading. But ultimately he doesn’t want to march that army all the way to Kyiv. And we don’t have the capabilities to meet all of his asymmetric tools. TALEV: John Bolton’s departure this week as the national security advisor, it sort of had all the drama we’ve all come to expect out of daily operations at the Trump White House. But I’m wondering, like, what do you think it actually means for foreign policy? I’ve heard a lot of people this week say it doesn’t matter who the next national security advisor is because Trump’s going to do what Trump wants to do. Do you think that’s true? And, like, what are you looking for in the next month, kind of as he—you know, the president has said he’s going to name a new national security advisor probably next week. UNGA is coming up. You know, the spectrum of a potential Rouhani meeting—although the White House keeps downplaying that. Like, what are kind of the litmus test that you’re looking for in the next month, and do you think it matters that John Bolton’s gone? What impact do you think it will have? MURPHY: Well, the choice of national security advisor can’t not matter. Proximity to the chief executive always matters. And I think it matters in particular with this president. And the fact of the matter is, no matter how empowered Mike Pompeo is by the departure of John Bolton, he still isn’t in the White House every day. The national security advisor is. And so this choice does matter. Now, Trump, you know, is obviously very personality driven. And so if it’s somebody that he trusts and grows to trust, that person will naturally matter more. And so we’ll all watch this choice very carefully. But I don’t think you can say that it doesn’t matter. One of the points that I’ve tried to make in the last few days, which has been lost a little bit by my progressive friends, is that as bad as John Bolton is, we do have to also remember that there’s, you know, about 20 or 30 percent of foreign policy that is truly controversial, right, where there’s big differences between Republicans and Democrats. Seventy percent of it, you know, is basic blocking and tackling of American interests abroad, in which we don’t have disagreements. I was in the Balkans last week. And, you know, there’s not big disagreement between Republicans and Democrats about the role we should play to bring Serbia and Kosovo together in mutual recognition. And John Bolton was working on that, just like he was working on other things. And so I have always worried about John Bolton’s fascination with war, but I also worry about how fast we’re cycling through personnel in this administration because on the stuff that we don’t disagree on, this instability of personnel at the top of the White House is making the advancement of our interests impossible. When, you know, the president of Serbia and the prime minister of Kosovo don’t know who to talk to on a regular basis, even on the stuff that Republicans and Democrats can agree on, we can’t get anything done. TALEV: You must have agreed with John Bolton on some things, like perhaps his stance on Russia. I mean, do you—like, do you think that every instinct John Bolton had took the president in the wrong direction or do you think there are some firewalls that he put up that did help to slow down or hold back policy that you might not have been comfortable with? MURPHY: Well, I mean, listen, there’s not going to be anybody, you know, that occupies that position that I will disagree with on everything. And, you know, John Bolton, you know, did seem to have brought us to the brink of war with Iran. And so we were dangerously close, perhaps minutes away, from entering a conflagration with Iran that would have essentially dragged down the entire region. So you know, as dangerous as we thought John Bolton was, he might have been just that dangerous. But, yes, there were issues upon which he was giving good counsel to the president. But it doesn’t seem as if he had much impact. If he was trying to tell the president to put conditions on our reintegration of Russia with the G-7, the president wasn’t listening to that advice. The president seems to have made up his mind on some pretty big topics around the world. And no matter who you put in these big jobs, it doesn’t seem like there’s a lot of success in convincing him not to talk to dictators without preconditions, not to try to find ways to bring Russia back into the global hierarchical infrastructure. TALEV: Do you expect the president to meet with Rouhani? MURPHY: I don’t know. I mean, I guess I stopped trying to predict or expect anything from this White House. You know, I was—listen, obviously, you know, I’m torn, admittedly, on, you know, how this White House should conduct diplomacy. I generally am not a believer in refusing to talk to adversaries, or even enemies. But it is just absolutely startling how little diplomatic blocking and tackling this administration is willing to do ahead of a meeting between the president and a leader of a nation that is adversarial to us. And while I supported Trump’s initial talks with Kim Jong-un, in the end, you know, those series of talks didn’t move the needle significantly on any of the issues that are of concern to American and our allies. And it did legitimize his regime. And so if you’re going to just meet with Rouhani for a photo op, and you’re going to actually do nothing to bring them back into the JCPOA or try to address concerns about their ballistic missile program, then I do think we have to ask questions about whether we’re better off with or without that meeting. TALEV: And sanctions—if dialing back sanctions are a precondition for a meeting, do you support that at this time? Do you think the sanctions on Iran are appropriate right now? MURPHY: Well, no, I don’t believe that the sanctions are appropriate, in that they were applied to—as part of the president’s withdrawal from the JCPOA. And of course, this report from last night is just sort of too hard to believe, the idea that the president is going to release $15 billion in coordination with the Europeans to get Iran back into the compliance with the agreement, so that he can get his photo op, right? The idea that we are now paying additional money—or thinking about paying additional money to the Iranians—to get them to comply with a deal that they were already complying with, so that Trump can get a photo op, is kind of the personification of this administration’s foreign policy in many ways. And a sign of, you know, in fact, how hard it was always going to be to get any kind of deal with Iran that was better than the JCPOA. TALEV: I hate this clock. This clock is killing me. Let’s do a couple real quick, and then I know you guys have amazing questions so I will—I’ll forgo some of my other amazing questions. MURPHY: I’ll give short, amazing answers. TALEV: (Laughs.) Next month marks the anniversary of Jamal Khashoggi’s murder. Do you think that the Saudis are being held accountable by the rest of the world, and by the U.S.? And can you bring us up to speed on the latest with your plans, along with Senator Young, on forcing the vote on U.S. security assistance? MURPHY: The Saudis are not being held accountable. Mohammad Bin Salman has gotten away with murder. And it frightens me. The message that’s being sent to dictators and would-be dictators around the world about what they can get away with, especially when it comes to people under American protection. And I’m just absolutely heartbroken that the United States has somehow overnight become the inferior partner to the Saudis in our bilateral relationship. They call the shots, not the United States of America. And especially today, when we are less reliant on their oil than any before it confuses me as to why that would be the case. Senator Young and I have discovered a unique means by which we may be able to change our bilateral relationship for the better. Inside the Foreign Assistance Act is an ability to take a vote to compel a human rights report on a security partner. And then after that report is filed, Congress can pass legislation with fifty votes rather than sixty to change the nature of the security relationship in any way, put conditions upon it, for instance. I think that that’s an important new vehicle to try to perhaps put some conditions related to the investigation of the Khashoggi murder on our security assistance. But I think the president’s made it pretty clear by now that he’s going to veto anything we do to change our relationship with Saudi Arabia, as he did with our resolutions to pull United States troops out of the military coalition vis-à-vis Yemen. And so I think we need to keep the pressure up. I think we need to keep forcing these debates in the Senate to make the world understand that this silence on the Khashoggi murder from the administration is not shared by Republicans and Democrats in Congress. But I don’t know that that eventually results in legislation being signed into law. TALEV: We haven’t talked about Russia yet, and getting denied entry. Perhaps someone will ask. I want to close the part of our conversation actually with a domestic policy question, but I think it has broad interest to the rest of the world given the U.S.’s sort of unique status when it comes to guns and the general public. You, and Joe Manchin, and Pat Toomey, and Lindsey Graham, a bit, have all been trying to figure out what kind of a bipartisan gun control effort is ultimately amenable to President Trump and passable in Congress. And I’m just hoping you can briefly bring us up to speed. We know that you were in discussions with the president as recently as yesterday. Will you talk to him today? And how imminent is a decision or announcement on what could happen? MURPHY: So we had a—you know, about a forty-minute conversation with the president yesterday. We got into some of the details about expanded background checks. Others talked to the president at length later in the day. I don’t know whether I’ll talk to the president today, but I expect that our teams will be meeting throughout the day. I think the president needs to make a decision about whether he wants to get behind the 90 percent of Americans who support expanded background checks. And I think what we don’t know yet is whether he’s willing to do that, because it would involve taking on the NRA. The gun lobby is never going to support any expansion of background checks in this country. And the president has, I think, the right instincts, which is why he’s still personally involved in these talks, that the gun lobby is weaker than ever before, and this has become a voting issue for swing voters, and a turnout issue for young people in this country. But I don’t think he’s made the decision to break with the gun lobby and really sit down and do detailed negotiations with those of us who work on this issue. I will agree with you this is an international issue. I always remember a story that Matthew Barzun, our Obama-era ambassador to Britain told me. He said when he would go around to schools, he’d hand out two cards. And on one card he’d ask kids to ask a word that reflected something they liked about the United States, and on the other card a word that reflected something they didn’t like or confused them about the United States. And he called me to tell me about this exercise because he said, Chris, if you believe it, that on 70 percent of the cards in the second category the same one word is on the card? And this is sort of 2013-14. And so I was wracking my brain. I said— TALEV: Right after—right after Sandy Hook. MURPHY: Well, it was right after Sandy Hook. But it was also right after the disclosures about tapping Merkel’s phones, it was still in the—you know, in the aftermath of the Iraq War. So I said, well, is it spying? Is it Iraq? He said, no, it’s guns. It’s guns. Seventy percent of kids in England say the one thing they don’t understand or don’t like about the United States is guns. And so our inability to deal with this issue is one of the things that pushes us away from our allies. And from the very start, our foreign policy has been predicated on creating a model—an economic and a governance model here in the United States—that is so attractive to the rest of the world that they want to sign up with us. It’s not just about how strong our military is overseas. It’s about what the American experience represents to people. And this failure to deal with the epidemic of gun violence in this country, it is part of the story as to what drives allies and potential allies away from the United States. TALEV: Thank you. OK. At this time—oh, good, I see a couple hands—I would like to invite members to join in our conversation. And I want to remind everyone, this meeting is on the record. There are cameras in the back, as you can see. When I call on you, please wait for the microphone, and then if you would share your name and affiliation with us also that would be awesome. Keep them tight. We’ll get as many as we can. OK, let’s start right here. Q: I’m Paula Stern. And I’m going to ask a question based on my service for 10 years at the U.S. International Trade Commission, which I chaired. The use of economic nonmilitary instruments, you talked about trade and you talked about the idea of a progressive policy that would have a new multilateral trade negotiations. I’m wondering if you would address the existing theories of bilaterals we have put in place, the Trump administration has, and specifically the steel Section 232 restrictions on many of our allies, and many of the countries, for example you mentioned Ukraine three or four times. Whereas, there have been deals made separately with some other countries to not have the restrictions, as spelled out in the original proposals, country by country, that the president placed. So I’m wondering how you use our trade relations with these individual countries, recognizing that you said that military is something that we real on way too much, and that your new progressive policy should look at non-military means. MURPHY: Sure. Well, listen, there are all sorts of other elements, I would argue, to a progressive foreign policy vision of the world that I did not mention. One of them is the reinvestment in international associations and bilateral—multilateral arrangements. So I think progressives do believe that the world is safer if we all have forms through which we are interconnected. And that is something that this administration fundamentally does not believe. They are interested in the delegitimization of bilateral associations, organizations, and efforts. Which is why, on trade, they have chosen to conduct themselves on a bilateral basis. That is connected to their overall agenda of trying to delegitimize bilateralism. I share in the concerns of some of my Republican colleagues, Pat Toomey chief amongst them, who we just mentioned, the way in which the president has gone around Congress to try to use tariff policy as a national security tool, when it is actually Congress that is vested with the authority to institute tariffs for economic reasons. And so I think Congress has to capture back tariff authority. And the president has, you know, tried to convince us that it’s all about national security when really he is using it for classic economic justifications. And in general, I just think you got to be really careful about using trade policy and sanction policy as a tool to try to push American interests around the world. At some point the dollar may not be the world’s default currency. At some point, people may tire of the United States using our economy as a means to try to bully nations into complying with our national security priorities. Now, I’ve supported sanctions efforts. I’m not saying that I haven’t voted for those efforts. And I do actually think sometimes it makes sense to call countries to task with tariffs. But we have become generally over-reliant on using tariffs and sanctions as a way to bully countries into working with us on host of issues. And that has some real danger for the nation moving forward. Q: I’m William Hauser, Inter-University Seminar on Armed Forces and Society. And my question is, do you support or oppose the expansion of petroleum supply across Central and Northern Europe by Russia? MURPHY: So part of my trip last week that we’ve referenced a few times was to Germany, to make—are you talking about Nord Stream 2? I assume you’re talking— Q: About petroleum pipelines going through Europe. MURPHY: Right. So part of my trip last week was to—was to Germany to make the case to them that the completion of the Nord Stream 2 pipeline, which is about bringing gas into Russia—into Germany and Europe from Russia is a terrible idea, and that we are essentially countermanding the effectiveness of our sanctions policy against Russia, which we have jointly agreed to, by then allowing Russia to build pipeline capacity into Europe that obviates their need to continue gas flows through the Ukraine. Senator Johnson and I, he’s a conservative Republican from the Midwest. He and I have a piece of legislation that would stand up a billion-dollar American development capacity to support efforts inside Europe and other places to make them truly energy independent. Right now, again, we give advice of how you can wean yourself off of oil and gas produced in other places. We, again, try to sometimes use sanction policy to stop our friends in Europe from becoming more dependent on outside-produced fossil fuels. But we don’t really offer any help to them to do that. And so my view is that we should use the largess of the American government and of our finance institutions to actually help finance some of these wind projects, these solar projects, these geothermal projects in and around Europe. So I have grave misgivings about the construction of new pipeline capacity. But I think we can’t just complain about it, as the United States. We actually have to help the Europeans, especially some of the—some of the less-developed of the Europeans, come up with new plans. TALEV: So we found something you and President Trump have in common, on Nord Stream 2. MURPHY: Right. TALEV: OK. In the back. Yes, in the white dress. Q: Hi, Senator. Thank you so much. Can you also speak a bit more about a progressive foreign policy vis-à-vis some other transnational challenges? And specifically I’m thinking about climate change, about nuclear nonproliferation, and about refugees. TALEV: Don’t forget to identify yourself. Q: Yes. Who am I? Alex Toma with the Peace and Security Funders Group, and a very proud term member here at CFR. MURPHY: You know, so I did—I did reference these issues, as I was talking about, you know, progressives domestically care about the issue of immigration, and the treatment of minority groups, and of course if you care about those issues domestically you have to care about them internationally. You have to invest in economic development and security assistance in the Northern Triangle in order to allow people to stay home, which is what they want to do. They don’t want to have to flee to the United States. And of course, if you care about protecting our interests in the Middle East, then you have to understand the danger that refugee flows out of places like Syria presents to our national security and the national security of partners there. You know, we could care about refugees in dangerous places around the world because we are compassionate progressives, but we can also care about refugees in dangerous places because of cold-blooded national security interests. And so you know, from a progressive foreign policy viewpoint we can—we can pick, right, either genesis of our—of our concern. And I mention on climate change, one of the reasons why, you know, you need a massive investment in diplomacy generally around the world, and why you need to sort of fix our relationships with our allies and with our—and with our competitors, is that, you know, joining Paris is going to be the easy part, right? I mean, we have come to sort of mistake Paris for the end of the negotiation rather than the beginning of the negotiation. And so you are going to—you are going to have to have a surge of diplomacy as part of a progressive foreign policy agenda, because in order to negotiate to the climate—the climate goals in Paris, you’re going to have to have American leadership in a way that it doesn’t exist, obviously, today. Q: I’m Ari Baki (ph) with the Council on Foreign Relations and Lehigh University. Senator, you put democracy promotion at the heart of a progressive foreign policy. And what I would like to so is ask you to be a little bit more specific in terms of how you would apply this when the Democrats come to power, and say you were influential in this. And I’ll give you essentially three sets of countries to see how you would deal with them. Let’s start with alliances like Hungary and Turkey, where you have authoritarian leaders that have usurped the democratic processes. You have adversaries like China and Russia. And then you have important countries like India, where a populist leader is increasingly doing things that are quite undemocratic. So how would you approach these three types of problems, if you want, in terms of democracy promotion and give some meat to your arguments? MURPHY: Sure. So, you know, we often—we often create this dichotomy in American foreign policy in which we have interests here and values over here. And then we sort of ask how you would choose between values and interests. I think that’s a mistake, because, as I’ve argued, promoting democracy abroad is an interest. It’s not just a fuzzy value that Americans have. It’s an interest. We believe that the more people that have access to democracy, the more safe the world and the less threats that we face, and that ultimately the more stable our own democracy is. And so I think you have to sort of sit democracy promotion in a list of interests that you have in every one of the bilateral conversations that you referenced. And my argument is that you should be elevating democracy promotion in the conversations that you have with a sort of sometimes ally, like Turkey or the countries in Europe, that you mentioned. And that you need to be raising these issues and concerns earlier in your bilateral meetings and negotiations in a way that we aren’t today. Second, I think we need to be working together with the European Union in raising and presenting these concerns. I think if you’re not doing it jointly, then you aren’t making real efforts. Third, I think you’ve got to recognize the threats that are presented to democracy in these places. Part of the reason why I think we have to have these new beefy anti-propaganda efforts is because Russia is sort of taking advantage of the fact that we’ve downgraded democracy promotion in our conversations in a country like Turkey, right? They use information warfare to spin up anti-democratic narratives in those countries and provide excuses for Orbán to consolidate power. Well, I would argue that we have to be playing defense and offense when it comes to the information warfare against democracies. Defense in the sense that we need to identifying and rooting out these Russian trolls, and bots, and working with our allies in places like Hungary, for instance, to do it. Offense, in that we need to be funding counternarratives. We need to be actually putting money into truly objective journalism that’s going to identify the trolls, but also tell less objective narratives in these countries. That’s actually what the Global Engagement Center was setup to do. And then I do think occasionally you have to draw some hard lines and send some messages about allies that have just gone too far in attacking freedom of speech. And that’s why, to me, Saudi Arabia is a really important case study here. I think that when we don’t convey real consequences for murdering a journalist, a dissenter, someone that sought protection in the United States, then we are sending a message to all of those countries that you mentioned about what they can get away with. And so I wouldn’t argue that you break off relationships with every country just because they are backsliding on democracy. I think you attack some of the insidious forces that help those attacks. I think you elevate the conversation in the bilateral relationship. But then you do find ways to send hard messages that there is a moment that you’ve gone too far, right? There is a moment at which you can’t be part of Europe any longer if you’re not going to be a democracy. There is a point at which American security assistance does shut down, if you start going after—physically going after journalists or political dissenters. And we’re not doing any of those things. We’re not elevating the conversations. We’re not attacking propaganda. And we’re not showing where our bottom line is. TALEV: The pink jacket. Q: (Off mic)—from Al Jazeera. I just wanted to pick up on the issue of Saudi Arabia. You sent a letter this week, along with Senator Young, to the Saudi crown prince, regarding aid to Yemen. Do you think—is this a new approach to, you know, address him directly? And do you think that you will get any response from the Saudis? And what would happen if that aid is not released? And just one quick question, regarding the resolution that you have introduced along with Senator Young, is there a timeline for forcing that vote in the Senate? MURPHY: So I am—I’m infuriated that this withdrawal of funding for the U.N. has not gotten more attention here in the United States and globally. The beginning of this year, the UAE and the Saudis committed $750 million each to the U.N., which was commensurate to their commitment last year, in order to stave off what is going to be the inevitable starvation and disease this fall and this winter in Yemen. Cholera numbers are already spiking in and around the country. The Emiratis and the Saudis welched on their commitment. They literally pulled it back and decided that they weren’t going to make it, too late in the funding cycle, really, for other nations to make up the difference. And so as we speak feeding programs, health care programs, immunization programs that the U.N. runs in Yemen are shutting down. And tens of thousands, if not hundreds of thousands of Yemenis, many of them children, are going to die this month, and next month, and the month after because the Saudis and the Emiratis have decided that they are not funding the promises that they made. That is a moral abomination. And we should be raising this every single day with the Saudis and the Emiratis. And I’m going to be honest with you, this administration is not doing it. They are raising it, but they have all sorts of other issues that are on the table with them that often come first—many of them related to Iran. Iran dominates our negotiations and discussions with our Gulf partners. And as long as they are doing what we ask on Iran, then we let them go on Yemen and on their commitments to the U.N. And that is not acceptable. Senator Young and I sent a letter to the Saudis, who have frankly been more intransient than the Emiratis on this question. I don’t know if it will work, because so long as they don’t feel like they’re getting real pressure from the highest levels of the administration—and I’m not saying that assistant secretaries and deputy assistant secretaries aren’t asking the Saudis and the Emiratis to put up the money. I’m saying they’re not hearing that from the president, and they’re not hearing that enough from the secretary of state. And this is now a matter of life and death in Yemen. And it’s a stain on our country’s conscience to be still involved in a military coalition with the Saudis and the Emiratis when they are refusing to put up money to stop the humanitarian disaster. TALEV: And your timing on forcing the vote, this next couple weeks or what? MURPHY: You know, I think it’ll be—it’ll be this—my hope is it’ll be this fall. So the next couple weeks, September/October. TALEV: Gentleman in the back. Q: Nadeem Yaqub, a journalist with Voice of America. Quick question. By trying to host Taliban and Afghan government at Camp David, do you think President Trump killed the opportunity to have a deal on Afghanistan? And related to that, second question, if the negotiations or the dialogue, you know, continues after the presidential elections in Afghanistan, do you think the Afghan government will have a more important and robust role in the negotiations? MURPHY: So, I mean, I have not opposed the idea of having negotiations and talks with the Taliban. Obviously I would prefer the Afghan government to be a part of those talks. I would prefer for them not to have to occur sequentially, in which a deal with the Taliban—between us and them was a prerequisite to the Taliban’s talks with the Afghan government. But I think we have to admit that the emperor has no clothes. I mean, the policy of the last eighteen years has simply not worked. And the idea that we should just do more of the same of the next eighteen years—be engaged in a military conflict with the Taliban, the perhaps permanent occupation of Afghanistan—I don’t think is acceptable to the people that I represent in Connecticut. But the way in which Trump decided to orchestrate the denouement of these talks was cataclysmic. I mean, why on Earth did this agreement have to signed at Camp David? What was the benefit of bringing the Taliban and the Afghan government to the United States? How would the agreement be more legitimate being signed on American soil than on Afghan soil? I mean, this made no sense, these Camp David talks, except for the fact that Trump’s foreign policy is essentially first, second, and third about photo ops. And this at least would have been a photo opportunity for the president. Now, I don’t think he thought it through very well, because he might have gotten the initial photo op and then two, or three, or four days later the talks would have embarrassingly fallen apart, perhaps leading to even more violence then we’re going to get now. But the instinct to have this conversation was not wrong. And I guess in my mind, I’m upset that the photo op and the bad idea to bring the parties to Camp David, has caused the talks, which may have actually happened in something positive for U.S. national security interests, to collapse. TALEV: I’m being told I have time for one more question, unless you change your mind and you want to run late for Senate for us. Right here in the front. Q: John Duke Anthony, a long-time consultant for DOJ and State. If you can just elaborate a bit more on this pushing allies away. And it’s obviously that you’re conflicted, many of us are conflicted about how far, how fast you push and press an ally, who snaps back and says: Look, if you think you can get a better friend than us, then you must be smoking something. If we held elections here, it’s practically guaranteed that we will be displaced or deluded. The Islamists will come to power. You’ll have a far more entrenched, vociferous adversary than you can imagine. So over the years it seems as though pushing, presenting democratic values, processes, dynamism is very much for us psychologically intelligible. But at the end of the day, politically expendable, because other interests seem to trump it at the final hour. This leaves us in a very sticky, illogical, embarrassing situation. I’d like to see you elaborate a bit more, if you would. MURPHY: Sure. Listen, I don’t—I don’t think it needs to be embarrassing to the United States that we continue to deal with countries that have not made a transformation into a democracy. Again, that’s why, you know, I approach democracy promotion as a value—or, excuse me—as an interest that stands aside with other interests. There may be nations in which there are other interests that we have that may cause us to put democracy promotion in the middle of the pack. Others where we may make it a higher priority. And so my argument here is not that we should not be dealing with nations that haven’t made a commitment to democracy. My argument is that it should be higher on our list. And second, that we should take a whole bunch of steps to try to make it easier for democracies to expand or flourish in these places, which is why I make the argument that pushing back against propaganda or pushing back against the development and export of tools out of China that make autocracy and dictatorship easier, is really important to the broader fight for democratic values. And then lastly, I think we have for a long time been addicted to our form of democracy, right? So you don’t have a democracy unless you have an American-style democracy, or whether you have a British-style democracy, right? If you don’t have a parliament, and you don’t have a prime minister, then you’re not engaged in self-determination. I think we need to be flexible about the mechanisms by which people have greater ability to have a say in the way that their lives are run. You know, take a look at some of the transitions that have been happening in Jordan, for instance, in which they do not have a democracy, by Western standards, but they have a parliamentary system that, you know, over time has had a little bit more to say about the way in which things are run. Local democracy is still democracy. There may be ways in which, you know, autocrats still have control at the federal level but that there are decisions being made with democratic inputs at the local level. And so I think we got to be flexible about sort of the demands we make to empower individuals to have greater say over their lives. We’ve got to have mechanisms to push back on the influences against democracy, not just beat our friends over the head to be better about it. And then we have to look at it as an interest that stands side-by-side with other interests. And sometimes exists here, and sometimes exists there. And then do it all in coordination with the Europeans. You know, if we’re not doing democracy promotion with the Europeans, we’re not doing it—we’re not doing it well. And, again, you know, Europe and the EU stands as a great attraction to countries that are trying to correct their—correct for democratic deficiencies. And as the European Union disintegrates, with help from the United States, it makes it a whole lot harder to, you know, go to the Turks and say, hey, listen, you know, you don’t have a future with Europe if you’re not going to fix the flaws in your democracy. Well, today they look at Europe and they say, well, it doesn’t look like the members that are inside the EU have much of a future with the EU, the way things are going. So why should we get our act straight to be part of that club? And so if we don’t invest in these multilateral institutions that are part of our leverage on developing democracies, then we’re also—we’re also not doing all that we can. So that’s a big answer, but there are all sorts of approaches that you can take to try to—to try to elevate these conversations. And of course, we’re going backwards on all of those counts in the Trump administration. If we just start to make some progress forward in the next administration, and we start to have some candidates that are thinking a little bit more about this before they get there, we’ll be better off. TALEV: You don’t have time for one more do you? MURPHY: We’ll do one more. All right. All right. You didn’t need to pressure me that much, but one more. TALEV: Oh, good! Else is going to be so happy. (Claps.) All right. Q: Thank you, Senator. Nice to see you again. Elise Labott from Georgetown University. I was wondering, in the context of some of the things you were saying on Iran and Saudi Arabia, you’ve been, you know, very tough about Saudi Arabia’s role. But at the same time, you see these kind of constellations happening in the—in the Gulf, and with Israel, Saudi Arabia working closer with Israel against Iran. President Obama, one of the reasons he reached out Iran and wanted, you know, to have more of a rapprochement is because he said that the thought that the Saudis and the Iranians needed to share the region. And I was wondering in the context of the last year or so, with Mohammad Bin Salman and the concerns about Saudi Arabia, how you view a kind of—you know, this landscape going forward. What is Iran’s role now? Qatar has been playing an increasing role. What is, in your mind, the ideal kind of situation of great powers in the region, including how to incorporate Israel? Thank you. MURPHY: You know, I think that Obama’s instinct here was twofold. One, he thought that by taking this question of Iran’s nuclear weapons program off the table we could more effectively organize the international community to address Iran’s other malevolent behavior in the region. We never got a chance to really test that proposition. Second, he believed that we were better off having a dialogue with Iran than not, and that you can’t solve the various quandaries of the region without America being able to talk to both the Gulf states and the Iranians. And Yemen is a perfect example, right? We could have absolutely—John Kerry came very close to a peace deal in Yemen right before he left office. And he did that only because he could talk to both the Iranians, and the Saudis, and the Emiratis. And had we kept up our ability to talk to the Iranians, we might have been able to get a settlement of accounts in Yemen long ago. And so our decision to not talk to the Iranians makes everything harder in the region—Syria, Lebanon, Yemen, et cetera, et cetera. So, you know, I—listen, I think the Iranians are horrible actors in the region. But I also think we’ve closed our eyes to all of the dangerous things that the Saudis and the Emiratis have done over the years to undermine our national security interests. I mean, the idea that we just sort of, you know, put blinders on when the Saudis for twenty years have been funding the export of Wahabism, which serves as the building block to the international extremist movement, is nuts to me. And Hezbollah’s terrible, but so are the Sunni extremist groups that might not exist but for the decision of the Saudis to move an intolerant version of Islam all around the world. We talk to the Saudis. Let’s talk to the Iranians. And if we went back to the Obama-era premise, isolate their non-nuclear bad behaviors, and still have the ability to talk to them, side by side with the Gulf states, we’d be much better off. TALEV: I want to thank all of you, and Senator Murphy, for spending extra time with us. Thank you. Appreciate it. MURPHY: Thank you, guys. Thank you, everybody. Thank you, Margaret. (Applause.) (END)
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  • Energy and Climate Policy
    Electricity as Coercion: Is There a Risk of Strategic Denial of Service?
    This guest post is co-authored by Joshua Busby, associate professor of public affairs at the Robert S. Strauss Center for International Security and Law at the LBJ School at the University of Texas at Austin, Sarang Shidore, a visiting scholar at the LBJ School at the University of Texas at Austin, and Morgan Bazilian, director of the Payne Institute and a professor of public policy at the Colorado School of Mines. Increasing interconnection of electricity systems both within and between countries has much promise to help support clean energy power systems of the future. If the sun isn’t shining or wind isn’t blowing in one place, an electricity grid with high voltage transmission lines can move electricity to where it is needed. This shared infrastructure and increased trade can possibly serve as a basis for peace between neighbors in conflict, but it may also serve as a tool of coercion if the electricity can be cut off by one party. Cross-border trade in electricity is currently dominated by Europe – 90% of the $5.6bn electricity trade market happens there, but in the future increased trade in electricity, particularly in Asia, is set to grow dramatically. The boldest proposal comes from the Chinese organization GEIDCO which has, with the backing of the State Grid Corporation of China (which reportedly has over 1 million employees), promoted regional and even global grid integration. On the one hand, such grid integration could foster greater interdependence in conflict zones and facilitate more shared interests. But there is another concern, what we call a strategic denial of service. This would be a form of what Farrell and Newman refer to as “weaponized interdependence,” a situation where one country uses a shared relationship asymmetrically to extract political concessions from another party. Emerging economies China is providing ample financial support for electricity and energy initiatives through the Belt and Road Initiative (BRI) and the Asian Infrastructure Investment Bank (AIIB). As much as two thirds of BRI projects, worth some $50 billion, has been invested in the energy sector. Some observers have already raised concerns about what China’s overtures in this space might mean for its neighbors. Phillip Cornell, writing for the Atlantic Council, warned that despite the benefits of grid integration: "Even if local grids are independently operated, deep interconnection means that supply and demand will increasingly be      matched across the super-grid, making them more interdependent. It may be managed by 'international rules and operation code' as Liu [Zhenya, GEIDCO's chairman] insists, but those will be defined by a regional authority where China is bound to have major influence." The scope for cross-border trade in electricity isn’t only Chinese-led. Even as India has been trying to integrate its domestic grid through what it calls green energy corridors, the country is also supplying electricity to some of its neighbors. India already exports some 660MW to Bangladesh, and Indian firms are building power plants which could meet as much as 25% of Bangladesh’s electricity needs. While India is currently supplying power to Nepal, Nepal has the potential capacity to supply hydroelectric power to India. Nepal and Bangladesh are also considering electricity trade through the intermediate Indian network. Hydro plants in the Mekong Delta from Laos already supply electricity to neighboring Thailand, making it its top source of foreign exchange. Other projects include CASA 1000, a proposed power line to link the Kyrgyz Republic and Tajikistan as well as an interconnection linking a hydro power station in Malaysia’s Sarawak to West Kalimantan that should diminish Indonesia’s dependence on imported oil. Can electricity be used coercively? Can a state use electricity as a coercive tool like the way Russia has used natural gas? Is this technically possible? What are the limits? In the case of gas, you have a product that can be physically stored for periods of time, whereas electricity is a much more ephemeral product that, absent viable storage at scale, is lost as waste heat if not transmitted to end users. Though a breakthrough in storage might take away some of the urgency of the threat of service denial, it wouldn’t remove it in the event of a prolonged outage. Technically, the process of denial of electricity service is not all that difficult. Shutting down power service across a transmission system is just a matter of operations control (in the absence of good governance, power markets, contracts, etc. that are all in place to avoid disconnection of service). It can be done virtually instantaneously to disconnect power from any node on the system. Think of “rolling blackouts or brownouts” when different parts of a service area are shut down for various technical or economic reasons. Curtailing electricity to another country is potentially costly for the coercer. Curtailing electricity transmission to a neighbor does mean foregoing payments for the electricity (provided the neighbor was paying their bills). But, it could be one that states will use to generate benefits such as higher rates of payment for electricity or, more broadly, to extract concessions on other matters of political importance. For some energy sources like hydro power, the water has other potential uses. This could enhance the attractiveness of using service denial as a coercive tool since the owner of the hydro could presumably monetize its water in another way. A state might try to insulate its vulnerability to service denial through widespread conservation or building in extra reserve capacity, but in some settings and seasons, demand reduction might not be so easy to achieve. A country might be able to find alternative sources of electricity either from other neighbors or by powering up more expensive domestic sources of generation, though those arrangements could take time or prove much more costly than the existing cross-border arrangement. The flipside of denial of service would be demand curtailment, which a state might pursue if it was attempting to punish a neighboring electricity supplier by reducing its revenues.  Has this been done? During the Cold War, the Soviet Union was able to maintain dominance over Eastern and Central Europe by tying their energy supplies to the Soviet energy grid, reducing their scope for independent action. Though privatization in the early years of the break-up of the Soviet Union provided these countries with more independence, Gazprom made a conscious effort to acquire assets back under Russian control, sometimes under commercial conditions that could be construed as coercive, particularly in the natural gas space. Baltic states and Poland remained tethered to the Russian electricity grid. It was not until 2018 that Estonia, Latvia, Lithuania, and Poland completed an agreement to decouple from Russia and transition to the EU grid by 2025 at the cost of $1.2 billion. Fears of potential Russian service denials helped them overcome remaining obstacles. There have also been some examples in the post-Cold War era of denial of service and other forms of coercion related to integrated grids and interdependence. In July 2018, Iran cut off a portion of power to Iraq over unpaid fees in the midst of a summer a heat wave. While this may have merely been to ensure Iraq paid its balance, other states have employed similar tactics for more expansive purposes. In February 2019, the Trump Administration threatened secondary sanctions on Iraq to discourage its purchase of imported Iranian electricity and natural gas. Here, the service denial is not by the generator but by an influential third-party who has its own political axe to grind with the Iranians. In June 2019, the United States provided Iraq with a temporary four-month sanctions waiver to allow Iraq to get through the summer by importing products from Iran, lest the country experience a wave of unrest as it did in 2018 when Iran cut the power.  In May 2019, the United States and the Maduro government in Venezuela clashed over the rightful ruler of the country. Before and after the departure of Venezuela’s diplomats, left-wing U.S. protesters occupied the Venezuela embassy in Washington, D.C. to prevent supporters of the opposition Juan Guaidó from seizing the embassy. In the midst of the dispute, the power to the embassy was cut off by the electricity provider PEPCO, raising questions about political involvement by the Trump administration. If we think of the embassy as sovereign territory of Venezuela, this would qualify as a case of cross-border service denial and speaks to the potential vulnerability of other such enclaves such as military bases that may depend upon electricity grids of host countries. In July 2016, Turkey temporarily cut power to the major US airbase in Incirlik in the wake of the coup attempt against President Erdoğan, underscoring these concerns about base vulnerability. Cyber-security experts have also raised the prospect of denial of service by hackers who might be able to penetrate an electricity grid and take it off line. Given that communications, transport, and health care infrastructure all rely on electricity, the cascading effects of such an outage could have far-reaching consequences. If carried out by shadowy non-state actors, it might also be harder to attribute responsibility to a state actor. In December 2015, in the first known instance, Russian hackers were able to briefly take off line three Ukrainian distribution companies. Which states might deploy this strategy? We are more likely to see strategic denial of service where markets and contracts give private actors limited legal recourse in the event of supply disruptions. Moreover, strategic denial of service may be more common where there are large power asymmetries between neighbors, particularly but not limited to non-democracies. The more powerful state can use the size of its military apparatus or economy as additional leverage to extract concessions. In our view, we are less likely to see a poorer, smaller country like Nepal or Lesotho try to deny electricity to a more powerful neighbor, given the risks of reprisals. Similarly, in the event of demand curtailment, we might see powerful states use this tactic against neighbors that are highly reliant on electricity export revenue. As Farrell and Newman argue, those that control central nodes are likely to possess asymmetric power at key chokepoints: “Specifically, states with political authority over the central nodes in the international networked structures through which money, goods, and information travel are uniquely positioned to impose costs on others.” In a bilateral sense, a small chokepoint would be the ability for one country to deny service to one downstream power importer, but if a single actor exercises control upstream over the entire transmission network, that would provide them with asymmetric power over a wider group of actors. If no state controls a single node but several states together control electricity exports, that would require the kind of collective action that is less likely to occur in most regions of the world. In the event that the ambitious Desertec project moves forward, a study of the scope for North African countries to use renewable energy denial to Europe concluded that it was unlikely to succeed unless all five exporter countries curtailed service. Authoritarian countries may use this tactic more than democracies. In authoritarian governments, private actors may have less arms-length relationships with the government and thus be susceptible to pressure to cut off service to foreign countries. However, powerful democratic countries may also use this tactic against adversaries and non-democracies. Outside the electricity space, we have even seen the United States try to use its control of SWIFT banking system to coerce other democracies to avoid trade with Iran. In the electricity arena, it is less clear when democracies might use denial of electricity as a tactic. That said, if the U.S. government did in fact have a role behind the scenes in cutting off power to the Venezuelan embassy, this would be an example. As countries seek to balance their electricity needs to have the cheapest, greenest source of power when they need it, they may become both importers and exporters of energy. This may reduce the temptation for a state to unilaterally cut off electricity to its neighbor, lest the whole cooperative relationship fall apart. However, in a world of increasing concerns about sovereignty, we may see fewer of these interconnections to start with, absent confidence building measures and institutions. Can this tactic be prevented? To reduce the risks of coercive actions in cross border electricity trade, regional governance treaties and related multinational institutions should be created to oversee the implementation of agreements for the grid's operation. This could be akin to a neutral regional grid operator that has representation from all countries. ASEAN, for example, is helping develop the regulatory framework as the ASEAN Power Grid is built and knits countries together. OLADE -- the Organización de Energia Latinoamerica – is seeking to play a similar role in Latin America. Ideally, markets, contracts, and legal forms of dispute resolution would also help ensure that politically motivated service denials do not happen, but market mechanisms on their own are unlikely to establish confidence in grid integration across borders. Regional institutions remain an important means of regulating the trade, along the lines of transborder water governance that Lucia De Stefano and collaborators write about in terms of institutions to apportion water, deal with shocks, and carry out dispute resolution. Chinese acquisition of electricity assets in Portugal, Greece, and Italy have led Europeans to raise questions about whether existing forums for transmission operators such as ENTSO-E ought to be elevated to a regulatory body. Other regions are likely to be even less coordinated in terms of regulatory oversight. As Cornell points out, the vision for GEIDCO from the founder is one of decentralized, technical administration like the internet, without central control, but that actually betrays how the internet is subject to national level suppression as we have seen in countries like China with the Great Firewall. Other new Chinese-led institutions like the AIIB are subject to multilateral oversight, suggesting a governance model that might attenuate some of these concerns. In the absence of institutions to guard against politically motivated service denials, countries will remain disconnected or even seek to decouple their systems from neighbors deemed too risky. In much of the electricity space where the potential is largely untapped, it would mean foregoing many of the benefits associated with integrated grids. Poorer, weaker countries needing power might have few options and accept the Faustian bargain that puts them at the mercies of more powerful neighbors. At a moment when our collective emissions of greenhouse gases already have tied us together in mutual vulnerability to climate change, it would be a shame if joint efforts to address the problem got caught up in the return of great power politics.  
  • Cybersecurity
    Cyber Week in Review: August 16, 2019
    Audio snippets subject to human review; Huawei employees help African governments’ spying; major vulnerabilities revealed in U.S. fighter jets; China’s central bank close to releasing digital currency; and a new ransomware used to attack companies.
  • Cybersecurity
    Cyber Week in Review: August 2, 2019
    Capital One data breach affects over 100 million customers; Coast Guard reveals details on February cyberattack; demand for cyber insurance grows; confusion on blacklisted Chinese technology; and Facebook warns investors cryptocurrency may never launch.
  • Cybersecurity
    Cyber Week in Review: July 25, 2019
    NSA sets up Cybersecurity Directorate; Microsoft announces customers targeted in state-sponsored cyberattacks; Justice Department opens antitrust review of Big Tech; Taiwan conducts cybersecurity drills; and the U.S. Attorney General re-ignites debate on law enforcement access to encrypted devices.
  • United States
    A Conversation With Ash Carter
    Play
    Secretary Carter discusses national security strategies in a rapidly changing world and his legacy as the twenty-fifth Secretary of Defense.   
  • Energy and Environment
    Future Climate Shifts Could Pose Risks to the U.S. Energy System
    As the need for U.S. federal government engagement on climate change becomes more pressing, various leaders and agencies are stepping into the void. This week, the U.S. Government Accountability Office, a legislative branch government agency that provides evaluation and investigation services for the U.S. Congress, issued a report critical of the U.S. Department of Defense’s practice of basing responses to extreme weather events and climate change effects based on past experience and called on the Secretary of Defense to issue guidance on “incorporating climate projections into installation master planning” as well as facility project designs. The guidance should cover how to integrate multiple future scenarios, what scientific projections to use, and what future time frames to consider, the GAO suggested. Recently, the Council on Foreign Relations program on Energy Security and Climate Change convened a workshop on related issues. The program entitled “Climate Risks to the Energy System: Examining the Financial, Security, and Technological Dimensions” concluded that U.S. energy infrastructure is increasingly at risk to climactic changes and that the United States is ill prepared to address those risks, which are a serious matter of national security. In the report from the CFR workshop it was recommended that Congress require the Department of Homeland Security and the Federal Emergency Management Agency (FEMA) to update risk assessments to include detailed analysis by geography, infrastructure type, and detail of potential specific climate hazards to better identify future climate-related vulnerabilities. This is important for the U.S. energy system generally and to energy supplies to U.S. military bases and operations specifically. Such regional and local assessments should be shared with the U.S. Army Corps of Engineers and FEMA as a basis for planning capital expenditures for adaptation and evacuation. The release of the GAO report release came around the same time as hearings at the U.S. Commodity Futures Trading Commission (CFTC) on June 12 where Rostin Behnam, a CFTC regulator, told the New York Times that “It’s abundantly clear that climate change poses financial risk to the stability of the financial system.” Behnam’s comments echo similar concerns raised recently by the Bank of Canada and the European Central Bank. Democratic Presidential candidates are also joining the mix. Washington Governor Jay Inslee has made climate change his signature issue. Former Vice President Joe Biden has also publicly put forward a climate change plan and responded positively to calls for a Democratic televised debate on the topic. Climate change affects virtually every aspect of the U.S. energy system. U.S. infrastructure for electricity, fuel, and information are highly interdependent, meaning that a failure in one part of the system can have cascading effects on other critical parts of the U.S. economy. Climatic disruptions to domestic energy supply could be large, entailing huge economic losses and potentially requiring sizable military mobilizations. California faces particularly difficult questions about how to resolve the bankruptcy of its major electric utility PG&E whose faulty equipment caused several costly wildfires last year and has raised the possibility of market failure in local private insurance markets. Texas is debating a multibillion dollar publicly funded program to build a seawall to protect its storm-vulnerable coastal refineries responsible for about 27 percent of U.S. military grade jet fuel and 13 percent of the nation’s gasoline production. CFR workshop participants expressed concern that the U.S. Security and Exchange Commission (SEC) is not doing an adequate job ensuring that disclosure of material risks related to climate change are accurate and sufficiently detailed. This year, the SEC received an active slate of shareholder proposals related to climate change but so far has dragged its feet on initiating any new disclosure guidelines on the subject. The SEC needs to establish permanent disclosure standards for climate change related risks to publicly-traded energy companies and utilities, the CFR workshop concluded. To explore best practices towards possible improved disclosure rules, workshop participants recommended that the SEC participate actively in fact finding forums to gather feedback from institutional investors, energy firms, financial analysts, and other relevant market participants.