1. December 21, 2012
DOMESTIC POLICY MATTERS
The Fiscal Cliff Debate. On Monday evening, the White House proposed a compromise of raising taxes only
on income earners above $400,000 and increasing the amount of spending cuts to $1.2 trillion. However,
Speaker Boehner announced Tuesday a Republican “Plan B” tax bill, which would make the Bush tax cut rates
permanent for income earners below $1 million. The White House threatened to veto the measure, and
Senate Majority Leader Harry Reid (D-Nevada) also expressed his opposition, stating it would not pass the
Senate. However, just before a scheduled vote Thursday evening, Speaker Boehner pulled the measure from
consideration due to an apparent lack of support within the Republican Caucus and called on the President
and Senate Majority Leader to produce a new plan to avert the fiscal cliff, noting that the “House has already
passed legislation to stop…tax rate increases and replace the sequester with responsible spending cuts.”
Before pulling its Plan B vote Thursday evening, the House narrowly passed (215-209) legislation to delay
sequestration’s defense cuts for one year and reduce non-defense spending in a manner opposed by
President Obama and Congressional Democrats. Meanwhile, Senator Reid has stated the Senate will not
move forward with further fiscal cliff legislation until the House considers the Senate-passed measure to extend
the Bush tax cuts for family incomes below $250,000. He officially announced Thursday morning that the
holiday recess is cancelled and that Senators are expected back on December 27th. In remarks on
Friday, President Obama supported Senator Reid’s emphasis on renewing only middle-class tax cuts.
Response to Connecticut Tragedy. President Obama held a press conference Wednesday in the wake of
the Newtown, Connecticut, school shooting, and the ensuing funerals of students and teachers, to urge
Congress to consider measures early next year to ban the sale of assault weapons and high-capacity
ammunition magazines, as well as requiring background checks prior to all gun sales. Additionally, the
President announced that Vice President Biden will lead a Cabinet-level working group to develop specific
recommendations by the end of January. Numerous Congressional Democrats have urged the immediate
passage of a bill that would ban ammunition magazines of more than 10 rounds, and Democratic gun-rights
supporters such as Senator Joe Manchin (D-West Virginia) and Senator Mark Warner (D-Virginia) have
expressed a willingness to consider new gun safety measures. Meanwhile, House Minority Leader Nancy
Pelosi (D-California) appointed Congressman Mike Thompson (D-California) to lead a House Democratic
legislative task force on gun violence. Friday morning, the country honored the victims of the shooting with a
national moment of silence. Later in the day, the National Rifle Association Executive Vice President Wayne
LaPierre called for the placement of armed guards in U.S. schools but no new gun control measures.
Late Wednesday night, the Senate passed a package of bills related to veterans services and benefits,
including burial assistance for certain deceased veterans and improved access to federal surplus personal
property for veterans service organizations. The Commerce Department reported Thursday the U.S.
economy grew at a better-than-expected annual rate of 3.1 percent over the third quarter, more than two
times the previous quarter’s rate. Friday afternoon, after Senate leaders came to an agreement on
amendment votes, the chamber voted (91-1) to proceed with consideration of a supplemental spending bill
to respond to damage caused by Superstorm Sandy in October. Republicans oppose provisions in the bill
aimed at mitigating and preparing for future disasters, and several of the amendments address their concerns.
Political News. Senator Daniel Inouye (D-Hawaii), Chairman of the Appropriations Committee and the
second-longest serving senator ever, passed away Monday. Senator Inouye lies in state this week for his
colleagues and the public to pay their respects – in the U.S. Capitol Rotunda on Thursday, the National
Cathedral on Friday (which President Obama attended), and in Hawaii’s state capitol building on Saturday.
Several Senate colleagues, including Majority Leader Reid and Minority Leader Mitch McConnell (R-Kentucky),
are expected to attend the final memorial service in Hawaii on Sunday. Before he died, Senator Inouye wrote
a letter asking Hawaii Governor Neil Abercrombie (D) to appoint Congresswoman Colleen Hanabusa (D-
Hawaii) to his Senate seat until a special election in 2014. After Senator Inouye’s passing, Senator Pat Leahy
(D-Vermont) and Senator Tom Harkin (D-Iowa) turned down the chairmanship for the Appropriations
Committee before Senator Barbara Mikulski (D-Maryland) accepted the gavel on Thursday as the Committee’s
first female chair. On Monday, to fill the U.S. Senate seat being vacated by Jim DeMint (R), South Carolina
Governor Nikki Haley (R) announced she will appoint freshman Republican Congressman Tim Scott, who will
become the only African-American in the chamber. Conservative judicial icon and failed U.S. Supreme Court
nominee Robert Bork passed away Wednesday. On Thursday, Democrat Cory Booker announced he will
explore a bid for the U.S. Senate in 2014 after completing his second term as Mayor of Newark, New Jersey.

2. FOREIGN POLICY MATTERS
State Department Developments. On Wednesday morning, the State Department released the unclassified
Accountability Review Board (ARB) report on the September 11 attack on the U.S. Consulate in Benghazi,
Libya. ARB Chair Ambassador Tom Pickering and Vice Chairman Admiral Mike Mullen said the report found
security measures were inadequate and “systemic failures and leadership and management deficiencies”
contributed to the deficiencies. Secretary Clinton assured Congress all of the ARB recommendations will be
implemented. On Wednesday, Eric Boswell, the Assistant Secretary of State for Diplomatic Security, Charlene
Lamb, Boswell's deputy, and Deputy Assistant Secretary of State for North Africa Raymond Maxwell reportedly
offered their resignations. Thursday, the Senate Foreign Relations Committee (SFRC) and House Foreign
Affairs Committee (HFAC) held separate hearings on the Benghazi attack, with Deputy Secretary of State Bill
Burns and Deputy Secretary for Management and Resources Tom Nides testifying instead of Secretary
Clinton, who is still recovering from a concussion this past weekend. Secretary Clinton has been rescheduled
to testify before the SFRC and HFAC next month. SFRC Chair John Kerry (D-Massachusetts) cautioned
Congress also has a role in ensuring funding for U.S. diplomatic security is adequate. HFAC Chair Ileana Ros-
Lehtinen (R-Florida) challenged the State Department’s claim that Congress had provided insufficient funding,
saying: “Perhaps it should take a closer look at the money that is being lavished [instead] on global climate
change, a culinary diplomacy program, and other favored projects.” Friday afternoon, President Obama
announced SFRC Chair Kerry as his nominee to be the next U.S. Secretary of State. The President
expressed confidence Kerry will be swiftly confirmed by the new Senate, which would trigger a temporary
Senate replacement and a summertime special election in Massachusetts to replace Senator Kerry.
Syria. NATO Secretary-General Anders Fogh Rasmussen said Friday the Syrian military continues to use
Scud-type missiles against the Syrian rebels. Thursday, Russian President Vladimir Putin said: "We are not
concerned about the fate of Assad's regime. We understand what is going on there.” On Thursday, the U.N.
Security Council (UNSC) sanctioned two Iranian companies – Yas Air and SAD Import Export Company –
for shipping weapons to the Syrian government and thereby violating the U.N. arms embargo.
Late Tuesday night, the Senate-House Conference Committee released its Conference Report on the Fiscal
Year 2013 National Defense Authorization Act (NDAA). The House approved the Conference Report
Thursday by a vote of 315 to 107. The Senate followed suit Friday afternoon with a vote of 81 to 14, sending
the $633 billion authorization bill to President Obama’s desk.
On Thursday, President Putin endorsed a bill approved by the State Duma to prevent adoptions by U.S.
citizens of Russian children. The measure also would bar any political activities by nongovernmental
organizations receiving funding from the United States and imposes sanctions against U.S. officials believed to
have violated human rights. The bill is largely viewed as Russia’s response to the U.S. Magnitsky law, which
authorizes human rights sanctions on select Russian officials.
This week, U.S. Trade Representative Ron Kirk and Acting Secretary of Commerce Rebecca Blank co-chaired
the 23rd session of the U.S.-China Joint Commission on Commerce and Trade (JCCT) with Chinese Vice
Premier Wang Qishan. Monday, President Obama congratulated Shinzo Abe on the Liberal Democratic
Party’s victory in last Sunday’s elections in Japan, which led to Abe’s return as Prime Minister on Tuesday,
replacing Yoshihiko Noda from the Democratic Party. President Obama and Prime Minister-elect Abe
reaffirmed the importance of the U.S.-Japan alliance as the cornerstone of peace and security in the region.
On Friday, President Obama spoke with Park Geun-hye, the President-elect of the Republic of Korea,
congratulating her on her victory in Wednesday’s election. President Obama and President-elect Park, who
will replace term-limited fellow conservative Lee Myung-bak in February as Korea’s first female President,
reaffirmed the importance of the U.S.-Korea alliance as a linchpin of peace and security on the Korean
Peninsula and in the Asia Pacific region.
On Friday, the United States welcomed the Thursday the UNSC resolution on the situation in Mali, which
authorizes deployment of an African-led International Support Mission (AFISMA) to assist Malian government
efforts to re-assert authority over Islamist- and rebel-controlled northern Mali. Thursday, President Obama
terminated Africa Growth & Opportunity Act eligibility for Mali and Guinea-Bissau, but added South Sudan to
the list of eligible countries. Also Thursday, the United States welcomed the Trial Chamber of the International
Criminal Tribunal for Rwanda’s conviction and sentencing of Augustin Ngirabatware, a former government
minister, for crimes against humanity in Rwanda’s 1994 genocide. On Tuesday, President Obama spoke with
Rwandan President Kagame to discuss the eastern Democratic Republic of the Congo, with President
Obama underscoring that any Rwandan support to the rebel group M23 is inconsistent with peace and stability.
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