Remarks by the President on Unemployment Insurance

Rose Garden

10:55 A.M. EDT

THE PRESIDENT:  Good morning, everybody.  Right now, across this country, many Americans are sitting at the kitchen table, they’re scanning the classifieds, they’re updating their resumes or sending out another job application, hoping that this time they’ll hear back from a potential employer.  And they’re filled with a sense of uncertainty about where their next paycheck will come from.  And I know the only thing that will entirely free them of those worries –- the only thing that will fully lift that sense of uncertainty –- is the security of a new job.

To that end, we all have to continue our efforts to do everything in our power to spur growth and hiring.  And I hope the Senate acts this week on a package of tax cuts and expanded lending for small businesses, where most of America’s jobs are created.

So we've got a lot of work to do to make sure that we are digging ourselves out of this tough economic hole that we've been in.  But even as we work to jumpstart job growth in the private sector, even as we work to get businesses hiring again, we also have another responsibility:  to offer emergency assistance to people who desperately need it -- to Americans who’ve been laid off in this recession.  We've got a responsibility to help them make ends meet and support their families even as they’re looking for another job.

That’s why it’s so essential to pass the unemployment insurance extension that comes up for a vote tomorrow.  We need to pass it for men like Jim Chukalas, who’s with me here today. Jim worked as a parts manager at a Honda dealership until about two years ago.  He’s posted resumes everywhere.  He’s gone door-to-door looking for jobs.  But he hasn’t gotten a single interview.  He’s trying to be strong for his two young kids, but now that he’s exhausted his unemployment benefits, that’s getting harder to do.

We need to pass it for women like Leslie Macko, who lost her job at a fitness center last year and has been looking for work ever since.  Because she’s eligible for only a few more weeks of unemployment, she’s doing what she never thought she’d have to do -- not at this point, anyway.  She’s turning to her father for financial support.

And we need to pass it for Americans like Denise Gibson, who was laid off from a real estate agency earlier this year.  Denise has been interviewing for jobs -– but so far nothing has turned up.  Meanwhile, she’s fallen further and further behind on her rent.  And with her unemployment benefits set to expire, she’s worried about what the future holds.

We need to pass it for all the Americans who haven’t been able to find work in an economy where there are five applicants for every opening; who need emergency relief to help them pay the rent and cover their utilities and put food on the table while they’re looking for another job. 

And for a long time, there’s been a tradition –- under both Democratic and Republican Presidents –- to offer relief to the unemployed.  That was certainly the case under my predecessor, when Republican senators voted several times to extend emergency unemployment benefits.  But right now, these benefits –- benefits that are often the person’s sole source of income while they’re looking for work -– are in jeopardy. 

And I have to say, after years of championing policies that turned a record surplus into a massive deficit, the same people who didn’t have any problem spending hundreds of billions of dollars on tax breaks for the wealthiest Americans are now saying we shouldn’t offer relief to middle-class Americans like Jim or Leslie or Denise, who really need help.

Over the past few weeks, a majority of senators have tried  -– not once, not twice, but three times –- to extend emergency relief on a temporary basis.  Each time, a partisan minority in the Senate has used parliamentary maneuvers to block a vote, denying millions of people who are out of work much-needed relief.  These leaders in the Senate who are advancing a misguided notion that emergency relief somehow discourages people from looking for a job should talk to these folks.

That attitude I think reflects a lack of faith in the American people, because the Americans I hear from in letters and meet in town hall meetings –- Americans like Leslie and Jim and Denise -- they’re not looking for a handout.  They desperately want to work.  Just right now they can’t find a job.  These are honest, decent, hardworking folks who’ve fallen on hard times through no fault of their own, and who have nowhere else to turn except unemployment benefits and who need emergency relief to help them weather this economic storm.

Now, tomorrow we will have another chance to offer them that relief, to do right by not just Jim and Leslie and Denise, but all the Americans who need a helping hand right now -- and I hope we seize it.  It’s time to stop holding workers laid off in this recession hostage to Washington politics.  It’s time to do what’s right -- not for the next election but for the middle class.  We’ve got to stop blocking emergency relief for Americans who are out of work.  We’ve got to extend unemployment insurance.  We need to pass those tax cuts for small businesses and the lending for small businesses. 

Times are hard right now.  We are moving in the right direction.  I know it’s getting close to an election, but there are times where you put elections aside.  This is one of those times.  And that’s what I hope members of Congress on both sides of the aisle will do tomorrow. 

Thanks very much. 

END
11:00 A.M. EDT

Remarks by the President to the Press

Rose Garden

10:11 A.M. EDT

THE PRESIDENT:  Good morning, everybody.  I wanted to give everyone a quick update on the situation in the Gulf.  As we all know, a new cap was fitted over the BP oil well earlier this week.  This larger more sophisticated cap was designed to give us greater control over the oil flow as we complete the relief wells that are necessary to stop the leak.

Now, our scientists and outside experts have met through the night and continue this morning to analyze the data from the well integrity test.  What they're working to determine is whether we can safely shut in the well using the new cap without creating new problems, including possibly countless new oil leaks in the sea floor.

Now, even if a shut-in is not possible, this new cap and the additional equipment being placed in the Gulf will be able to contain up 80,000 barrels a day, which should allow us to capture nearly all the oil until the well is killed.  It’s important to remember that prior to installation of this new cap, we were collecting on average about 25,000 barrels a day. 

For almost 90 days of this environmental disaster, all of us have taken hope in the image of clean water instead of oil spewing in the Gulf.  But it is our responsibility to make sure that we’re taking a prudent course of action and not simply looking for a short-term solution that could lead to even greater problems down the road.

So to summarize, the new cap is good news.  Either we will be able to stop the flow, or we will be able to use it to capture almost all of the oil until the relief well is done.  But we’re not going to know for certain which approach makes sense until additional data is in.  And all the American people should rest assured that all of these decisions will be based on the science and what’s best for the people of the Gulf.

All right.  I’ll take just one or two questions.  Go ahead.

Q    Did you feel the earthquake, Mr. President?

THE PRESIDENT:  I didn’t.

Q    Sir, do you think this means that basically we’re turning the corner at least in the Gulf?  Tell the American people what you anticipate in the next few weeks ahead, because they’re still very anxious about this.

THE PRESIDENT:  Well, I think it’s important that we don’t get ahead of ourselves here.  One of the problems with having this camera down there is, is that when the oil stops gushing, everybody feels like we’re done -- and we’re not. 

The new cap is containing the oil right now, but scientists are doing a number of tests.  What they want to make sure of is, is that by putting this cap on the oil isn’t seeping out elsewhere in ways that could be even more catastrophic.  And that involves measuring pressures while this cap is on.  The data is not all still in and it has to be interpreted by the scientists. 

But here’s the good news that I think everybody needs to understand.  Even if it turns out that we can’t maintain this cap and completely shut off the flow of oil, what the new cap allows us to do is to essentially attach many more containment mechanisms so that we’re able to take more oil up to the surface, put it on ships -- it won’t be spilling into the Gulf.

The final solution to this whole problem is going to be the relief wells and getting that completed, but there’s no doubt that we have made progress as a consequence of this new cap fitting on, and that even if it turns out that we can’t keep the containment cap on to completely stop the oil, it’s going to allow us to capture much more oil and we’ll see less oil flowing into the Gulf.

Now, in the meantime, obviously we’ve still got a big job to do.  There’s still a lot of oil out there, and that’s why we’ve got more skimmers out there, there’s better coordination on the ground along the shorelines, there’s still going to be an enormous cleanup job to do, and there’s still going to be the whole set of issues of surrounding making sure people are compensated properly, that the $20 billion fund is set up and is acting expeditiously.

So we’ve got an enormous amount of work to do and people down in the Gulf, particularly businesses, are still suffering as a consequence of this disaster.  But we are making steady progress and I think the American people should take some heart in the fact that we’re making progress on this front.

Q    Are the relief wells still on target, sir?

THE PRESIDENT:  So far, it’s actually slightly ahead of target, but the problem on the relief well is not simply drilling all the way down, it’s also connecting it up and that’s a delicate operation that could take some time.

Q    Ahead of target -- what does ahead of target mean, sir?

Q    Mr. President, when does BP begin paying fines according to the amount of oil spilled?

THE PRESIDENT:  Well, we are obviously going to be taking measures about how much oil has spilled and those are calculations that are going to be continually refined.  BP is going to be paying for the damage that it has caused, and that’s going to involve not only paying for the environmental disaster and cleanup but also compensating people who’ve been affected.

Q    On a per-barrel basis?

THE PRESIDENT:  That’s going to be a component of the calculations that are made.

Go ahead.

Q    What do you want to say to the people there?  When do you expect to go down next?

THE PRESIDENT:  Well, I would expect that sometime in the next several weeks I’ll be back down.  What we’re trying to do right now is to make sure that the technical folks on the ground are making the best possible decisions to shut this well down as quickly as possible, that we’re standing up the fund so that people are compensated quickly.  I’m staying in touch each and every day, monitoring the progress and getting briefed by the scientists. 

The key here right now is for us to make decisions based on science, based on what’s best for the people of the Gulf -- not based on PR, not based on politics.  And that’s part of the reason why I wanted to speak this morning, because I know that there were a lot of reports coming out in the media that seemed to indicate, well, maybe this thing is done.  We won’t be done until we actually know that we’ve killed the well and that we have a permanent solution in place.  We’re moving in that direction, but I don’t want us to get too far ahead of ourselves.

All right.  Thank you very much, everybody.

END
10:17 A.M. EDT

Remarks by the President in Holland, Michigan on Investing in Clean Energy

Compact Power, Inc.
Holland, Michigan

1:36 P.M. EDT

THE PRESIDENT:  Hello, everybody.  Thank you so much.  Thank you.  Everybody, please have a seat, have a seat.

Before I get started, first of all, let me thank your fine young mayor.  Mr. Mayor, it is wonderful to see you, and I am partial to daughters, as I know you are, and I hope at some point I get a chance to meet yours.  But thank you for the great work that you’ve done.

Somebody who I think is one of the best governors in the country, Jennifer Granholm -- please give her another round of applause.  (Applause.)  Jennifer has been relentless about bringing manufacturing -- 21st century manufacturing here to Michigan.  And this is just an example of the kinds of projects she’s been working on for so long.  I’m very grateful for the presence of the chairman of LG Chem, Bon-Moo Koo.  Thank you very much for your presence here today, as well as the CEO and vice chairman, Peter Bahn-Suk Kim.  Thank you very much.  Please give them a big round of applause.  (Applause.)

And I want to acknowledge your congressman -- Pete Hoekstra is here in the audience.  Please give him a round of applause.  (Applause.)

Now, it is wonderful to be here in Holland, and I am especially to be here as Compact Power breaks ground on this site.  This is about more than just building a new factory.  It’s about building a better future for this city, for this state, and for this country.

Now, I want to say what everyone here in Holland and everybody here in Michigan knows too well, which is that these have been some pretty tough times.  A brutal recession came on top of what was already a lost decade for the middle class, especially for manufacturing towns here in the Midwest.  Even before this recession cost so many jobs, incomes had been flat, jobs were moving overseas, while the price of everything from health care to college tuitions were skyrocketing.

It was a decade in which it seemed like the values that built this country were turned upside-down.  Folks who were working hard and honestly every day to meet their responsibilities were running in place or falling behind while high-flying financial speculators who were cutting corners were rewarded with lavish bonuses and benefits.

It got even worse when the financial crisis sent our economy into a freefall and cost 8 million Americans their jobs.  Michigan was hit harder than anywhere else.  An on top of this recession, you were also rocked by the near collapse of the domestic auto industry.

It was in the middle of this crisis that my administration walked through the door.  And we had a number of difficult decisions that we had to make and make quickly.  Some, including shoring up U.S. automakers, weren’t real popular, as you will recall.  But with millions of jobs at stake, with the future of so many families and businesses on the line, we acted to prevent the country from slipping into an even deeper crisis.

And that’s why, when my administration began, we cut taxes for small business owners and for 95 percent of working families here in Michigan and across the country.  We extended unemployment insurance to help folks get through these storms.  And through small business loans, a focus on research and development and investments in high-tech, fast-growing sectors like clean energy, we’ve aimed to grow our economy by harnessing the innovative spirit of the American people.

Because we did, shovels will soon be moving earth and trucks will soon be pouring concrete where we are standing.  Because of a grant to this company, a grant that’s leveraging more than 150 million private dollars, as many as 300 people will be put to work doing construction and another 300 will eventually be hired to operate this plant when it’s fully up and running.  And this is going to lead to growth at local businesses like parts suppliers and restaurants.  It will be a boost to the economy of the entire region. 

Now, this is the ninth advanced battery plant to begin construction because of our economic plan.  These plants will put thousands of people to work.  This includes folks who were working at a couple of facilities being built in Michigan by another battery technology company called A123.  And in every case, we’ve been guided by a simple idea -- government can’t generate the jobs or growth we need by itself, but what government can do is lay the foundation for small businesses to expand and to hire, for entrepreneurs to open up shop and test new products, for workers to get the training they need for the jobs of the 21st century, and for families to achieve some semblance of economic security. 

So our goal has never been to create a government program, but rather to unleash private sector growth.  And we are seeing results.  There are 4.5 million unemployed workers already hired whose employers are eligible for a payroll tax exemption, a tax break that I signed into law earlier this year. 

Just yesterday, the Council of Economic Advisers put out a detailed report and it showed that for things like tax credits that go to advanced energy manufacturing or loan guarantees for small businesses or financing for infrastructure projects, we’re leveraging nearly three private dollars for every public dollar that’s spent.  That’s an incredible bang for our buck.  By making critical seed money available, we’ve attracted more than $280 billion in investment from private companies and others, which will mean new jobs and brighter futures for families in Holland and in communities across the country.

And by the way, these aren’t just any jobs.  These are jobs in the industries of the future.  Just a few years ago, American businesses manufactured only 2 percent of the world’s advanced batteries for electric and hybrid vehicles -- 2 percent.  But because of what’s happening in places like this, in just five years we’ll have up to 40 percent of the world’s capacity -- 40 percent.  (Applause.)  So for years you’ve been hearing about manufacturing jobs disappearing overseas.  You are leading the way in showing how manufacturing jobs are coming right back here to the United States of America.  (Applause.)   

For example, the workers at this plant, already slated to produce batteries for the new Chevy Volt, learned the other day that they’re also going to be supplying batteries for the new electric Ford Focus as soon as this operation gears up.  That means that by 2012, the batteries will be manufactured here in Holland, Michigan.  So when you buy one of these vehicles, the battery could be stamped “Made in America” -– just like the car.  (Applause.)   

And here’s another benefit.  Because of advances in the manufacture of these batteries, their costs are expected to come down by nearly 70 percent in the next few years.  That’s going to make electric and hybrid cars and trucks more affordable for more Americans.  And that not only means more jobs but it also means we’re going to be less dependent on foreign oil.

So taken together, these are the efforts that are going to create jobs and help build a stronger economy in the long run.  And I want to express my appreciation to the Michigan leaders, not only here but in Congress, who supported the economic plan that made this possible.

As a result of the steps that we took, an economy that was shrinking is now growing.  We were bleeding jobs at a rate of 750,000 per month the January that I was sworn in.  Now the economy is adding private sector jobs and has been for six straight months. 

Now, this doesn’t mean that we’re out of the woods -– not by a long shot.  But it does mean that there are small business owners who’ve been able to get the loans they need to hire a few more people.  It means there are salespeople with a few more dollars in their pockets because customers are buying again.  It means there are innovators and entrepreneurs finally able to take a chance on a new idea.  And it means there are construction workers heading to the jobsite each day –- just like some of the folks who are here today -– because our country is slowly coming back from this vicious recession. 

The progress we’ve made so far is not nearly enough to undo the enormous damage that this recession caused.  And I’ve said since the first day I took office, it’s going to take time to reverse the toll of the deepest downturn in a generation.  I won’t be satisfied as long as even one person who needs a job and wants to work can’t find one.

But what I’m absolutely clear about and what this plant will prove is that we are headed in the right direction, and that the surest way out of the storms we’ve been in is to keep moving forward and not go backwards. 

There are some folks who want to go back –- who think that we should return to the policies that helped to lead to this recession.  Some of them made the political calculation that it’s better to obstruct than to lend a hand.  They said no to tax cuts, they said no to small business loans, they said no to clean energy projects.  Now, it doesn’t stop them from being at ribbon-cuttings -- (laughter) -- but that’s okay.  I just want to make sure that everybody understands that this country would not be better off if this plant hadn’t gotten built and if the clean energy package that made it possible wasn’t in place.  (Applause.) 

And when you head out to any of the two dozen battery technology plants coming online that are going to be able to be stamped “Made in America” on their products, I want folks who have been pushing against these economic policies to explain to these workers why it would be better for these things to be manufactured in other countries, or why the solar plants and wind turbines and biodiesel refineries that are being built shouldn’t have happened. 

Most workers and most entrepreneurs understand we’re not in the clear yet.  But they understand we’re headed in the right direction.  There’s something about America that no matter what the trials are, what the tribulations are, we stay optimistic and we keep going forward.  And we know if we work hard enough and we’re determined enough, if we try as hard as we can and if we’re willing to experiment, and if things don’t work we put them aside, but we keep on going -- that sooner or later we’re going to see a brighter day.  And we’re going to pass on a better America to our children and our grandchildren.

That’s been our history.  That’s the legacy that we inherit.  So to everybody in Holland, I want you to understand these have been a tough few years, but we have been through tough times before, and at our best we’ve risen to the challenges we face by tapping the drive and the talent and the ingenuity that has always been at the heart of America’s success.

And that’s what’s happening all across America as we speak.  That’s not only how we’re going to emerge from this period of turmoil; that’s how we’re going to actually come out stronger than we were before.

So to all of you who have been part of this project, thank you.  This is a symbol of where Michigan is going, this is a symbol of where Holland is going, this is a symbol of where America is going.

God bless you.  And God bless the United States of America.  (Applause.) 

END
1:50 P.M. EDT

Background Briefing by Senior Administration Officials on Al Shabaab Terrorist Organization

Via Conference Call

5:24 P.M. EDT

MR. HAMMER: As we mentioned, we're doing a call on background with senior administration officials on the Al Shabaab terrorist group. I'm going to turn it over to our senior administration official number one to make some introductory remarks. And then we'll open it up for your questions.

SENIOR ADMINISTRATION OFFICIAL: Good afternoon, everyone. Thanks for being with us. First of all, I think as you're all aware, Al Shabaab has claimed responsibility for what can only be termed as a heinous and cowardly terrorist act that claimed the lives of I think about 76 individuals, most of them Ugandans, innocents, at these two sites, but also claimed the life of one American and injured five others.

This is certainly in keeping with Al Shabaab’s threats that it has made, as well as its history of attacking innocents. And at this point, there are indications that Al Shabaab was indeed responsible for it and that its claim of responsibility is real.

The President has reached out to President Museveni offering support and all assistance. The FBI has sent a team there to help with the crime scene. We are making whatever assistance available to the Ugandan government as they deal with the aftermath of this attack. We've also made sure that other countries in the region understand that the United States stands with them against these types of attacks that are carried out by groups such as Al Shabaab.

Now, just a little bit of background on Al Shabaab and what we're doing. This is something that we have been focused on for quite some time. Al Shabaab is an organization that was formed in 2006, and since that time, it has threatened the United States as well as carried out a number of violent acts inside of Somalia. This would be, though, the first terrorist operation that Al Shabaab carried out outside of Somalia.

But its history is a bloody one. And it is dedicated to the perpetration of violence in order to achieve its ends. As you know, Somalia is a war-torn country and Al Shabaab is one of the groups engaging in activities in Somalia in order to advance its interests and its presence. It engages in regular activities against other Somalis. It has this domestic agenda that is designed to increase its presence, its reach, its influence throughout the country. And it is dedicated to the overthrow of the recognized government of Somalia, the Transitional Federal Government.

Al Shabaab has what I'd refer to as a dual persona. In one respect, they are engaged in a domestic fight in order to advance their political agenda, but they do use terrorist tactics and exceptionally violent means to advance their agenda inside of Somalia.

At the same time, there are a number of individuals within the Al Shabaab organization that have close links with al Qaeda. And I would say that Al Shabaab is a group that is associated with al Qaeda and that these links between the organizations have existed for quite some time. Its agenda is very similar to al Qaeda’s agenda. It advances a distorted and perverted version of Islamic goals and agenda. It has engaged in terrorist tactics inside of Somalia extensively. It is responsible for the assassination of a number of Somali peace activists, international aid workers, numerous civil society figures, as well as journalists.

They are engaged right now in attacks against the African Union peacekeeping troops which are in Mogadishu, the AMISOM mission, which has lost approximately 35 soldiers as part of this peacekeeping mission -- it’s been there since 2007.

There are a number of U.S. persons who have traveled to Somalia to join up with Al Shabaab as well as with al Qaeda, and this is something that we've watched very closely.

Al Shabaab also has denied the passage of humanitarian assistance to a number of displaced individuals inside of Somalia by preventing access to certain areas and hijacking humanitarian aid and assistance.

Al Shabaab was designated a foreign terrorist organization in 2008, and it was sanctioned, in fact, by the United Nations Security Council earlier this year.

We have taken a number of steps against Al Shabaab, including the President in April of this year issued an executive order, which is 13536 -- an executive order that targets those who threaten peace and stability in Somalia and those who interfere with humanitarian assistance there. We have designated an Al Shabaab military commander, frozen the assets of a major Al Shabaab financier, and increased the tools available to support international efforts to weaken this group.

We actively support the AMISOM mission in Somalia with training and supplies, Burundi and Uganda being the major contributing nations, and continue to work with them in support of their efforts to bring security to Somalia and to support the TFG. We’re also providing assistance to refugees and displaced people throughout the country.

So Al Shabaab has a domestic agenda inside of Somalia that is a bloody one. It also has a terrorist agenda that now has manifested itself outside of Somalia, in other countries, and this is something that we are going to work very closely with regional governments to counter.

MR. HAMMER: All right, with that, can we open it up for questions, please?

Q Hi, I actually had two questions. First, I know that the administration’s position in terms of assistance, military assistance to Somalia has been sort of -- I believe what the State Department has called a limited involvement militarily. I was wondering if the expansion geographically of the attacks by Al Shabaab just might change that and the U.S. might get more involved or offer more assistance militarily to Somalia, to the Transitional Government?

And also I was wondering if you think that local police departments across the country should be learning more about Al Shabaab? I’m sure they're well versed in al Qaeda. I'm wondering if they know enough about Al Shabaab.

SENIOR ADMINISTRATION OFFICIAL: Okay, on the first question, we are working with regional governments, as I mentioned, working in support of the AMISOM mission there, working also with the TFG. One of the things that we want to make sure that we do now is take stock of the recent developments and the attacks in Kampala, and to take a look and see what it is that we need to do as a result of those attacks.

In the first instance, what we’re trying to do is to lend support to the Ugandan government. But also what we need to do now is to look at the situation in Somalia and to determine if this is now a trend that Al Shabaab is going to be on, and to take all appropriate measures. So there are different mechanisms of support that we can utilize here. But again, this is something that our government is going to be looking very closely at and working with governments in the region on.

Q And what about the locals?

SENIOR ADMINISTRATION OFFICIAL: Well, I think there have been a number of instances over the past year where individuals have left the United States and traveled to Somalia. I think there have been a number of press accounts and reports about individuals who have traveled there. So I don't think Al Shabaab is an unknown entity to a number of law enforcement organizations in this country. Certainly the FBI has worked on Al Shabaab and has cooperated closely with a number of the local law enforcement entities through the joint terrorism task forces. We’re very vigilant for any indication of individuals from Somalia coming here to the United States to engage in these kinds of extremist and terrorist activities.

So if there is a need for new information to be provided to local law enforcement, the FBI, the Department of Homeland Security, and others will make sure that that gets out into those jurisdictions.

Q But you don’t think locals should take it upon themselves?

SENIOR ADMINISTRATION OFFICIAL: Certainly all police departments should be as vigilant and as mindful of the recent developments in terrorism as possible. And so, again, this is something that the FBI will be working with their local partners, again, through the JTTFs, to ensure that they are aware of tactics, trends, terrorist activities and practices that are engaged in by al Qaeda and Shabaab as well as other organizations.

Q Hi. Thank you very much. Can you help us on whether you had any warnings -- going back now -- have you seen any indications that this was going to happen? Is this something that -- you had anticipated Al Shabaab operating outside of its own borders. Do you think that there is any kind of a, dare I say, intelligence failure here in not having anticipated it?

SENIOR ADMINISTRATION OFFICIAL: Well, as I’ve mentioned, Al Shabaab leaders have made public threats against outside interests, including Western interests. There has been over time reporting that indicates that Al Shabaab, because of its association with al Qaeda, may be planning attacks at different locations. To my knowledge, there was no forewarning or reporting that indicated that these attacks were going to be taking place in Kampala. But Al Shabaab, since it was designated a foreign terrorist organization, it was on our radar screen and we were trying to monitor any reports or indications that it was planning to carry out terrorist attacks. But this is something that was, again, perpetrated in a neighboring country, but we didn’t have any advance warning about that attack.

Q And do you think -- are there any indications now that others who are in the (inaudible) should be similarly warned? Are there any additional steps that should be taken by some of the other ally partners?

SENIOR ADMINISTRATION OFFICIAL: Rest assured that we are working very closely with the countries in the region, our partners, on the intelligence, law enforcement, and security fronts, ensuring that they have the latest information available to us; that we provide them guidance and support as far as what we know about any other types of threats that they need to be vigilant for.

But clearly if this indeed was Al Shabaab making good on its threats to carry out attacks and did this in such a manner against a vulnerable target of innocence, I think clearly other governments in the region will need to make sure that they are able to take the necessary security precautions at this time in light of what happened in Kampala.

Q Earlier today, Ambassador Benjamin implied that the al Qaeda contact that Al Shabaab had, the most direct contact, was al Qaeda in the Arabian Peninsula. I was wondering if you could talk about that relationship. And two, if this tells you even more that al Qaeda in the Arabian Peninsula is becoming more and more of a -- when you refer to al Qaeda, is that what you’re referring to rather than necessarily al Qaeda that we know in the Pakistan and Afghanistan region?

SENIOR ADMINISTRATION OFFICIAL: I think al Qaeda in the region, there are, I would say, maybe two identifiable subcomponents of al Qaeda. One is al Qaeda in East Africa that is responsible for the attacks against our embassies in Addis Ababa and Nairobi in 1998, and then Al Qaeda in the Arabian Peninsula. And there is a fair amount of interaction, intersection between AQAP and AQEA. And the Al Shabaab organization and individuals within Al Shabaab have contacts and associations with both al Qaeda in East Africa as well as al Qaeda in the Arabian Peninsula.

There are also, I would point out, though, a large number of Somali refugees inside of Yemen, and it is an area that is frequently traversed between Somalia and Yemen, quite a bit of traffic going back and forth there.

So, yes, we are concerned of what we have seen of Al Shabaab contacts and interactions with al Qaeda in the Arabian Peninsula, as well as its more traditional contacts and associations with elements of al Qaeda in East Africa. And there is somewhat of a blending together of these different individuals who are at the top of these organizations. And, unfortunately, I think they are bringing along with them some of the young Somalis and others who are engaged in these local conflicts but are brought into the al Qaeda orbit.

Q Al Qaeda in the Arabian Peninsula -- I mean, it seems as if more terrorist attacks are getting connected in some form or another to them than any other al Qaeda affiliate. I mean, in your mind, is this becoming the focus of when we hear the words al Qaeda, that this is who we’re dealing with these days?

SENIOR ADMINISTRATION OFFICIAL: Al Qaeda in the Arabian Peninsula is probably the most operationally active of the al Qaeda franchises in the region, in Yemen, and the peninsula -- Arabian Peninsula, as well as in the Horn of Africa, as well as setting its sights beyond that area. So, yes, al Qaeda in the Arabian Peninsula is one of the al Qaeda elements that I am most concerned about. And its involvement in the Horn and its interaction with Al Shabaab elements is of strong concern.

Q Thanks for doing this. A recent assessment by a policy analyst over at Council on Foreign Relations, Bronwyn Bruton, said that the U.S. was in effectively a self-imposed stalemate with regard to options for how to deal with the situation in Somalia and Al Shabaab. Can you talk a little bit more about what you think the way forward is here? There have been any number of reports of those arms that the U.S. does send in ending up in Al Shabaab’s possession thanks to corruption and black market trafficking. How much margin for maneuver does the U.S. really have to counteract or limit Al Shabaab’s activities?

SENIOR ADMINISTRATION OFFICIAL: Well, I think if you look at that portion of Somalia, there are two elements or forces that are trying to stabilize the situation there. There’s AMISOM and the Transitional Federal Government. Al Shabaab is a destabilizing force. And what we need to do is to ensure that we’re able build up the capabilities of AMISOM as well as the TFG. At the same time, we’re very concerned about Al Shabaab’s capabilities and what it is doing in the area, what it is doing vis-à-vis preventing, again, this humanitarian assistance in there.

Somalia is a complicated and challenging environment and one that the United States is looking at the different actors and proceeding appropriately as far as the policies that we’re going to pursue. But this is something that is going to take years to address because the problems that affect the country are systemic, structural. And what we’re trying to do is, working with the TFG and AMISOM, is to bring and to broaden the area of Mogadishu and of that portion of Somalia so that there can be a stabilization situation, so that additional assistance can get into the country, and that further progress can be made against those forces of instability including Al Shabaab, as well as the pirates along the coast.

Q Thanks. Let me just follow quickly, there are also reports of associations in the past between Al Shabaab and some other groups in the region, directly with Hezbollah -- some 700 fighters going from Somalia to Lebanon -- and then indirectly through Hezbollah to Iran and Syria. Is that a significant part of what you worry about with Al Shabaab? Or was that sort of a one-off thing?

SENIOR ADMINISTRATION OFFICIAL: I think they're concerned about Al Shabaab making associations with a variety of organizations -- not just al Qaeda, but others -- as they look for assistance and support, whether it be weapons, arms, money. These are things that I think we’re taking into account right now in trying to design policies to counter that, again, working with those elements like AMISOM and the TFG.

Q Thanks, very much.

SENIOR ADMINISTRATION OFFICIAL: Just to return to this point about the Council on Foreign Relations analysis, I think it’s also important to recognize that it’s not as if Al Shabaab is some kind of well-loved force in Somalia. It’s an organization notorious for its treatment of civilians and of the Somalia people. So I just want to make sure one doesn’t inadvertently paint a picture of a -- this incredibly strong organization that's got control and popular support.

As we all know, in Somalia one of the big challenges is the absence of functioning and effective entities that can provide security. So it’s sometimes easy I think to view Shabaab as perhaps stronger in the Somalia context than it necessarily is. It’s just operating in a place where normal structures are so very broken.

But some of that same analysis, as the Council sort of suggests that the right answer is some kind of I think they call it constructive disengagement and sort of a pulling back from the problem. And I think that what we’ve seen in Kampala is a good example of why that's not a viable way forward.

Q Okay, thanks.

Q A couple of questions about this. I’m wondering, in light of the belief now that the attack -- if it wasn’t a dry run, it emboldened AQAP to try to the Christmas bombing. Do you see the Uganda bombing as -- since it’s the first external operation by Al Shabaab outside of Somalia, do you see that as a worrisome sign that maybe these guys are capable of launching some kind of attack inside the U.S.? And I have a follow-up.

SENIOR ADMINISTRATION OFFICIAL: Well, certainly, I think it demonstrates their willingness to make good on their threats to carry out attacks. It’s clearly -- clear that they were directed into Uganda because of Uganda’s sort of role in AMISOM. But there is a concern that Al Shabaab might be trying to carry out attacks or similar types of attacks in other venues, so -- and this is something that we have to maintain our vigilance.

Q But would you extend that -- do you think they're capable of doing it here, possibly? Are you worried about that?

SENIOR ADMINISTRATION OFFICIAL: I’m worried about any organization, particularly any one that is associated with al Qaeda and has al Qaeda elements sprinkled within it, and their determination as well potential capability to carry out an attack outside of the region, as was demonstrated by what happened on Christmas Day, as you point out.

There are ways that they can carry out relatively unsophisticated attacks, but still with very lethal results. So again, Al Shabaab has been on our radar screen for a while. They’re a group of murderous thugs that direct that organization. A lot of that is directed to the Somali people -- against the African people in a manner that is just totally reprehensible and something that I think the African people find deplorable.

At the same time, what we need to do is make sure that we’re vigilant here in the States, as well as in other places.

Q If I could just ask about there is a defendant who walked out of court in Alexandria federal court a couple of weeks ago named Anthony Joseph Tracy -- he had been an ICE agent -- or an asset of some sort for ICE and also DOD and an intelligence agency, according to the court transcript. There was some concern that he had flunked a polygraph test about smuggling in Somalis into the U.S. or helping to smuggle some through Cuba, and that apparently he flunked on the issue of whether or not he had assisted Shabaab in getting some of their people in. Do you have any lingering concern that Mr. Tracy might have helped facilitate some Shabaab operatives or fighters to getting into the U.S.?

SENIOR ADMINISTRATION OFFICIAL: I’m not going to talk about any specific case, but I will say that I am concerned about the different types of attempts and smuggling routes that have been used by Somalis to flee that area, including to the West and here to this hemisphere, and whether or not Al Shabaab has tried to exploit those for its own purposes.

Q Thank you very much. I came to sort of delve deeper into the relationship between the different elements and aspects of al Qaeda and this group in terms of fundraising, in terms of exchange of money and exchange of arms or flow of arms. Have you seen an uptick between the different aspects of al Qaeda and this group in terms of these aspects?

SENIOR ADMINISTRATION OFFICIAL: There’s a lot of activity that goes on in that part of the world that is outside of normal channels and a lot of things that are done through personal connections and contacts. And given that there is a relative lack of government structures in place in that part of the world, a lot of illicit activity can go on. And I believe al Qaeda and other groups such as Al Shabaab take advantage of that.

Again, I point out the concern about the increasing activity of al Qaeda in the Arabian Peninsula that goes beyond Yemen; it reaches out into the Horn. And so the activities of Al Shabaab, al Qaeda, I think sort of run the gamut of different types of activities, including the movement of contraband as well as different types of fundraising activities that allow them to carry on with their agendas.

MR. HAMMER: All right, thank you very much, everybody, for joining us this afternoon. Just a reminder, this was on background as senior administration officials. And enjoy the rest of your day.

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