Press Briefing on International Threat (12/15/00)
                              THE WHITE HOUSE

                       Office of the Press Secretary
For Immediate Release                December 15, 2000

                             PRESS BRIEFING BY
                      AND LAW ENFORCEMENT RAND BEERS,
                       FOR ENFORCEMENT JOSEPH MYERS,

         The James S. Brady Press Briefing Room

11:12 A.M. EST

          MR. CROWLEY:  Good morning.  Yesterday I think you heard a
compelling speech by the President in Coventry, England, about the
challenges and opportunities of a global age, the unprecedented
opportunities for peace and prosperity to spread to sections of the world
that have been developing in the late 20th, and now 21st century, and the
opportunities to address some of the critical issues that we face in terms
of global poverty, education, infectious disease, and so on.

          The President, throughout his administration, as he's been
pushing this global agenda, has also been focused on the flip side of
globalization -- that as the world, if you will, becomes more sophisticated
and smaller, also the same opportunities that Americans have, and others
around the world, for progress, we now confront a more sophisticated
criminal network, as well, that have access to the same kinds of technology
and the same kinds of open borders and the same kinds of opportunities for
their networks to flourish.

          And that represents a challenge for individual Americans; it also
represents a challenge for the United States in terms of our national
security interests, because if the stereotype of typical criminal as a
godfather figure who breaks bones, now you have a more sophisticated
criminal figure who can hack your computer, who can influence financial
markets around the world, and who can destablize countries or regions of
the world that are important to the United States.

          Two years ago, the President commissioned an international crime
assessment to focus more attention on this aspect of a globalized age.
Last year that assessment was produced at the classified level, and this
year it has been produced at an unclassified level and is being released

          We have representatives from the NSC, State, Justice, and
Treasury here to go through the major points of the report with you.  We'll
start off with Richard Clarke who is the National Coordinator for Security
Infrastructure Protection and Counterterrorism.  And then from there we'll
go to Q&A and Dick can play moderator here at the podium.

          After the briefing there will be copies of the report available,
as well as a statement by the President on the report, and factsheets
galore.  But I know that these gentlemen are attached to other issues that
have your attention, as well, but if we could, let's go through the major
elements of the international crime assessment first.  If you want to
branch out into other subjects, let's try to do that at the tail end of the

          So we'll start with Dick Clarke.  Thanks.

          MR. CLARKE:  Thank you, PJ.

          Foreign criminals operating abroad and in the United States cost
Americans their lives, and cost Americans billions of dollars.  They also
threaten our foreign policy and national security goals by undermining
emerging democracies and distorting free markets in countries around the
world.  Those are the conclusions of the first ever unclassified threat
assessment to the United States with regard to international crime.

          It was ordered by the President; it has now been completed.  It
is a comprehensive study that looks at all of the forms of international
organized crime.  Too often in the past we have looked upon these issues in
isolation or thought about them exclusively as law enforcement issues.  But
the people who are perpetrating these crimes are, in fact, international
cartels, transnational corporations of crime.  In effect, they deal in
multiple kinds of crime -- counterfeiting of money, counterfeiting of CDs
and software, smuggling of people, smuggling of arms, smuggling of precious
gems.  There's a wide range of activity that these cartels now engage in,
and they affect all of us.

          One example that hits every American in the pocketbook, every
American who has a car and has to buy auto insurance, is the fact that
200,000 cars were stolen in the United States last year and moved abroad
and sold abroad as part of the international criminal cartels.  Only one
percent of those cars were recovered.

          The magnitude of these crimes in terms of dollar impact is also
underlined by the violations of international intellectual property
agreements.  Copying of materials that are protected by copyright, illegal
copying, cost the United States $12 billion last year alone.  The magnitude
in terms of human suffering is demonstrated by the fact that in one year
700,000 women and children were forcibly moved by international criminal
cartels around the world engaged in prostitution and kidnapping; 40,000 to
50,000 of those women and children were brought illegally to the United
States in one year and put into various forms of sexual servitude.

          So these are crimes that have enormous personal impact, they have
enormous financial impact, and as the President has said, they have
enormous national security and international economic impact.

          So today we are highlighting three things.  We have been doing a
number of things for the last several years, but three things recently and
today which we want to underline.  First of all, we are releasing on an
unclassified basis the international threat assessment.  Secondly, we are
announcing the creation of another interagency center.  The State
Department and the Justice Department are announcing today the creation of
a center for combatting the trafficking in women and children, and alien

          This is one of a number of interagency centers that we have been
establishing over the course of the last several years to break down the
stovepipes that have existed in the interagency in the past, and the
treatment of these issues as single-agency issues or exclusively law
enforcement issues.

          Earlier this year, the FBI and the Customs Bureau jointly formed
the new center to fight intellectual property rights violations.  Two years
ago, the intelligence community enlarged what was then the illegal
narcotics center, and created a center in the intelligence community for
international crime and narcotics.

          The third thing we're highlighting today is that we have signed
-- we, the United States, have signed the new International U.N. Convention
on International Crime.  It was signed earlier this week in Palermo, Italy.
And it, when ratified, will allow us to engage in greater international
cooperation on all of these issues.  It is, for the first time, an
international document that recognizes, as President Clinton did four years
ago, that all of these issues are connected.  They are connected by the
people that do them and they are connected in the ways in which we have to
cooperate internationally to combat them.

          We have a number of experts with us here to answer your
questions.  Rand Beers is the Assistant Secretary of State for
International Crime and Law Enforcement and Narcotics.  Jody Myers is the
Deputy Assistant Secretary of the Treasury for Enforcement.  Bruce Schwartz
is the Deputy Associate Attorney General for International Programs.  And
Fred Rosa is the Director here at the National Security Council for
International Crime and Narcotics.

          We want to highlight that, while we are releasing this report
today, it is part of an ongoing program that the President initiated
several years ago when he issued Presidential Decision Directive 42,
declaring that international organized crime is an international security
and international economic issue.

          I will be glad to take your questions.

          Q    Mr. Clarke, the section on institutional shortcomings
addresses mostly institutional shortcomings around the world.  Could you
address the subject of institutional shortcomings in the United States?

          MR. CLARKE:  Yes.  As I said, when we started looking at this at
the President's direction four years ago, we discovered that these issues
were all being handled seriatim or in what bureaucrats like to call
stovepipes.  People were working on counterfeiting; other people were
working on alien smuggling; other people were working on narcotics.  And we
were not integrating across agencies the knowledge base that, in fact, all
of the perpetrators of these activities are frequently the same people.

          Terrorists are engaged in narcotics smuggling.  People engaged in
auto theft are also engaged in smuggling of arms.  People engaged in
insurgencies in Africa, for example, are often engaged in the elicit
transit of precious gems and endangered species.  So we had a problem and
we continue to some extent have a problem in our own government, both in
the Executive Branch and in Congress, in terms of having a holistic view of
these threats and combating them across agencies.

          The creation of the center today for combating the trafficking in
women and children and alien smuggling is an example of the ways in which
we are trying to break down those organizational, departmental, Cold War
ways of looking at the problem, and to create a new approach in the
Executive Branch to deal with transnational threats not just as national
security issues or law enforcement issues but as all of the above.

          Q    Where will that center be based?

          MR. CLARKE:  The center physically, I believe, will be in the
Department of State.

          ASSISTANT SECRETARY BEERS:  It will be in property rented by the
Department of State.

          MR. CLARKE:  Property rented by the Department of State.

          Q    You have mentioned the centers where the smuggling takes
place.  What kind of cooperation are we getting from the governments

          MR. CLARKE:  Well, I think it varies enormously.  There are many
governments that are cooperating significantly with us.  Obviously,
Colombia, here in this hemisphere, has put its own law enforcement
personnel and government officials at risk in order to cooperate with us.
But then there are governments like Afghanistan which are engaged in the
smuggling of heroin and the harboring of terrorists.  And governments such
as Afghanistan, I think, have to be considered criminal organizations,
because they are engaged in criminal activity as a government.  So there is
a wide variety of cooperation, from a great deal to active hostility.

          Q    Just to follow that up, some of the governments may want to
cooperate but they lack the means or the materials or the personnel or the
finances to cooperate.  Will the United States be helping them to improve
their law enforcement operations?

          MR. CLARKE:  Yes.  A key part of the President's strategy, which
was released two years ago -- the strategy, by the way, is on the White
House NSC website.  It was released two years ago, the International
Strategy on Combating International Crime.

          A key element of that strategy is giving other governments the
tools so they can do the job.  Maybe that's a good time to introduce
Assistant Secretary Beers who coordinates the international assistance
programs and the international training programs across our government.


          ASSISTANT SECRETARY BEERS:  In terms of the projects and training
activities that the United States government works on with countries around
the world, we probably spend on the order of $100 million or more on an
annual basis.  The training is done by the Justice Department and law
enforcement agencies of Justice and Treasury and by Treasury Department
officials, as well as other officials that are hired by the United States.
It involves training in peacekeeping situations like Bosnia or Kosovo, or
in countries like Colombia or Indonesia, states of the former Soviet Union.
It goes from straight law enforcement training of individual law
enforcement officers, to training of prosecutors and judges, or efforts to
change criminal legislation in countries around the world in order to
harmonize laws among countries.

          It's a wide variety of subjects, and we work to coordinate that
on a regular basis.  State, Justice and Treasury have a steering group
which look every year at all of the project proposals and make
determinations to ensure that it is both representative of the needs of all
of those agencies and sufficiently coordinated so that we're not
duplicating our efforts in the various agencies around town.

          We've worked at this for the last three years in order to improve
that, and as Dick said, this is one of those examples of an area where we
have sought to overcome institutional boundaries in order to deliver, on
behalf of the United States, in the interest of all citizens of the world,
an improved training program and a better global law enforcement effort.

          Q    As far as international crimes go, what's the one largest
threat to U.S. citizens right now?

          MR. CLARKE:  I think the largest threat is obviously posed by
international narcotics smuggling, which costs a number of lives and costs
an enormous amount of money.  But more and more, we see that the people who
are engaged in international narcotics smuggling are also engaged in other
businesses, other illegal activities.

          And whether it's counterfeiting or IPR violations or trafficking
in women or drug violations, it all comes back to money.  The reason that
international criminals do what they do is to make money.  And what the
President asked us to do four years ago was to follow the money.  And we
have done that significantly in the Treasury Department programs,
particularly over the course of the last year and a half.

          We have now received cooperation from the G-7 nations and,
together, the G-7 nations have, for the first time, issued a list of
countries where massive money-laundering is taking place.  And the G-7
nations have, together, said that they will take actions, financial
actions, against those money-laundering havens.

          So, at root, the common thread through all of these international
crimes is money, and if we can stop money-laundering, then we can
significantly put a crimp into these international organizations.

          Jody Myers from the Treasury Department has been leading this
effort on money-laundering, and, Jody, you might want to make a few remarks
about what we've done in the last year.

          DEPUTY ASSISTANT SECRETARY MYERS:  Yes.  I would, just to follow
on to what Dick said, he accurately described what we've been doing.  I
think we've seen a great deal of progress over the last couple of years,
first in getting agreement, not only in the G-7, but across the 29 nations
that participate in the financial action task force to work on this list.

          At Treasury, we're very cognizant of trying, when we issue
regulations or other restrictions on our bank's ability to freely move
money around, that we try to issue those rules and regulations in a way
that doesn't affect their business interests adversely, and so, getting
multilateral agreement on this was a significant step.

          Since the list came out in June, we've been very busy working
with, again, in a cooperative spirit, with the countries' officials from
countries on the list to improve their systems.  We've been very involved,
both on a bilateral basis and a multilateral basis, negotiating with them.

          We've seen legislation pass in Israel, we've seen legislation
pass in Cayman Islands, we've seen legislation pass in Liechtenstein, all
since the summer.  We are working very actively with the government of
Russia right now in a similar fashion, so we're very gratified to see this
kind of progress.

          Q    Mr. Clarke, can you or one of your colleagues tell us how
serious the alien smuggling problem is right now, and are we seeing some
sort of a transition from the illegal immigration problem going from
individuals coming through from Mexico to international cartels smuggling
people for money?

          MR. CLARKE:  There obviously continue to be individuals
transiting our borders, but for the last seven or eight years we have seen
an increasing trend of cartels.

          In China, in Southeast Asia and in parts of Latin America and the
Middle East, organized cartels, moving people great distances and at great
risk to the individuals involved and at great financial prices into the
United States.  We find only the tip of the iceberg, but we find them with
great regularity, people smuggled into the United States in containers,
shipping containers at risk to their lives on the terrible sanitary

          All too often, what we find is that the people who are smuggled
into the United States, then when they get here are put into work
environments that amount to servitude, involuntary servitude.  And
particularly troubling is when that occurs to women and children and they
are forced in the United States as well as overseas into prostitution.
That is an increasing trend around the world, but the United States is the
most attractive destination for these organized groups.

          Gentlemen, any one of you, Fred, do you want to enlarge on that?

          MR. ROSA:  I would just offer briefly to supplement what Mr.
Clarke has said, that in terms of order or magnitude, if you're looking at
the migrant-smuggling problem from a U.S. perspective, our estimates
indicate that approximately 500,000 people are smuggled by various
organizations, organized crime groups or smaller organizations that are
involved in that activity for profit.

          And an additional 500,000 come into the United States essentially
on their own.  And as everyone here is aware, a substantial percentage of
those come across the border from Mexico.

          If you look at the related, yet distinct problem of trafficking
in women and children, the estimates that we have there indicate that at
least 700,000 -- I've also seen an estimate that goes as high as 2 million
-- women and children in particular are trafficked on a global basis each

          And as I think Mr. Clarke mentioned earlier in his opening
remarks, we have a sense that approximately 45,000 to 50,000 of those women
and children are targeted and are actually brought here into the United
States.  And I think it's worthwhile to add that as I indicated a moment
ago, these are related but distinct problems.

          There's certainly, at one end of the spectrum, is a situation in
which an individual simply wanting to get into the United States because of
attractive opportunities here simply pays an organization to accomplish
that transit in illegal entry, and essentially, if they're successful, the
activity ends there.  But as you move along the spectrum, there are some
who are smuggled into this country that, although they think they're simply
buying illegal entry, they find themselves, when here, in an indentured
service situation.

          And then you move along the spectrum and you get to the
trafficking in persons problem, where you have actually recruitment of and,
in many cases, kidnapping of individuals for purposes of exploiting them as
persons -- typically for sexual purposes.

          This is an area that we are becoming more and more aware of, and
it is an increasing priority for us as evidenced by the announcement by the
Departments of State and Justice today to establish an inter-agency center.

          Q    Why do you think it's increasing so much?

          MR. ROSA:  I'm not sure that we have a great answer for that.  I
think that the very straightforward answer is that it's a source of
enormous profit.  The opportunities are there.  If you look at what the
world has seen in terms of the globalization trend in the post-Cold War
period, the more open borders, the advances in communications and
technology and all of those related developments, clearly you have the
opportunity to move these individuals.  You have individuals in depressed
economies where there are limited opportunities who have an incentive to
look for an alternative, even if it's a desperate alternative.

          So again, as I think Mr. Clarke said earlier, fundamentally, this
comes down to money.  And these organizations that are involved in
international crime are increasingly poly-crime organizations, and this is
a particularly attractive undertaking for them.

          And I would also add, just as a footnote, that one of the reasons
why the U.N. convention that was signed earlier this week by over 100
nations is so important, is that certainly, one of the motivations of an
organized crime group to go into trafficking in human beings, has been that
in many instances, it is a less risky -- or, it has been a less risky
proposition in terms of the criminal laws available to use against those

          Drug-trafficking is certainly a crime that, in most jurisdictions
in the world, carries with it some very significant penalties.  But there
are other areas -- smuggling of non-drug contraband in this particular area
where, unfortunately, the criminal penalties are often not as available or
they are not as significant.

          Q    Could you provide more details on the cartels, where they
are based, which are the biggest cartels?  And do they work like major sort
of companies with different departments?  How do they work?

          MR. CLARKE:  There are major cartels geographically based.  For
example, there is a major cartel that's based in Nigeria.  There is a major
cartel that's based in the former Soviet Union.  There is a Chinese ethnic
cartel that's based in Southeast Asia.

          And, increasingly, as Fred Rosa said, they are polycrime
organizations and they go for profit centers.  They may originally have
been pushing heroin.  If they find out that cocaine is more profitable,
they add that to their line.  If they find out that trafficking in people
is a new source of income, they add that to their line.

          They are based overseas.  They find their origins overseas, but
they are present in every major metropolitan area in the United States.
And that's the thing that we need to understand as a nation, that foreign
international criminal cartels are present in our cities.  They are risking
the lives of Americans and they are costing Americans billions of dollars.
That's why the United States Government has been doing so much and will be
doing more, we hope.  That's why we are seeking international cooperation,
because we can't do it alone.

          Q    Do you have any names of these cartels?  Do you have any
prominent leaders of the cartels?

          MR. CLARKE:  I think they are outlined in the threat assessment.
But essentially they are the Colombian, Nigerian, Russian and Chinese
cartels.  There are specific organizations mentioned in the threat
assessment, particularly those in the former Soviet Union.  There are some
names of individuals.  Many of these individuals have been indicted.  Some
of them have successfully been brought back to the United States.

          The President earlier this year designated 12 individuals as
international organized crime and narcotics kingpins.  Since then, we have
brought two of them back to the United States for prosecution, two from
Nigeria were brought back earlier this month.

          Q    As far as high-tech crimes go, are we talking copyrighting
or are we talking about stealing a credit card?  What are we talking about
as far as high-tech crime?

          MR. CLARKE:  High-tech crime is all of the above.  It is credit
card fraud, cell phone cloning.  It is cyber crime and extortion.  There is
an increasing problem in this country of extortion originating overseas
with hackers who hack their way into American companies and then say to the
American companies, you obviously have a cyber security problem and we will
solve it for you; we will become your computer consultants.  Just send a
million dollars to this offshore bank somewhere and your computer problem
will go away.

          It's a simple extortion racket, but it's happening in cyberspace.
The fact that there has been the growth in high technology has meant that
the borders that used to protect us against this sort of international
phenomenon are increasingly less significant and particularly in cyberspace
there are no borders.

          Q    You spoke earlier about the government of Afghanistan as a
criminal organization.  You said that it exports heroin, harbors terrorists
and so on.  Is there -- can we -- should we rule out in our minds any idea
that the Clinton Administration in its last few weeks would take any kind
of military action in Afghanistan either to extract the terrorists or to
send a message to the Taliban about these things?  I know you're taking
moves in the United Nations to try and consolidate internationally.

          And I would also like to, as a second half of this, ask you what
would your recommendations be to the incoming Bush Administration in terms
of how to handle a criminal state like Afghanistan?

          MR. CLARKE:  I expect that early next week the United Nations
Security Council will pass for the second time a series of sanctions
against the Taliban regime that rules most of Afghanistan.  That resolution
will be co-sponsored by Russia and the United States and we expect it to
gain widespread support in the Security Council.

          There is, I think, almost universal recognition around the world
that the Taliban regime that pretends to be the government of Afghanistan
is a criminal organization and is threatening many countries, not just the
United States, is threatening many countries in the Middle East and in the
Caucuses in central Europe through terrorism and through the export of

          Obviously, the United States takes this threat seriously.  And we
are doing and have been doing a number of things in cooperation with our
friends and allies.  Some of those things are not terribly visible or at
least are not yet terribly visible.  And I think that the President has
made clear that it's a high priority for this administration and I'm sure
it will be a high priority for the next administration.

          And what we have done over the course of the last several years
is to use all means available to us, diplomatic, economic, intelligence
activities.  And we have used military force in the past against the
government of Afghanistan.  I trust the next administration will have a
similar policy.

          Q    But on the question of whether you would rule out using
military force between now and January 20th -- time is running out.

          MR. CLARKE:  That's obviously something for the President to
decide and I don't think it's appropriate to get into that here.  But I
think the important thing to recognize is that we have been using all means
available to us to combat the threats emanating from Afghanistan and other
countries have as well.  And that's an ongoing program, for which the 20th
of January doesn't have a great deal of significance.

          Let me sum up by saying, this threat assessment is available now
in hard copy.  It will be on the White House web site, at the NSC location
on the White House web site, and all of these gentlemen, and Bruce
Schwartz, who hasn't had the opportunity to stand up here yet, will be
available during the course of the day, before you file, for telephone
interviews and follow up.

          Thank you very much.

                            END        11:46 A.M. EST

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