The document summarizes various domestic and foreign policy matters from the previous week. On the domestic front, negotiations over the fiscal cliff continued without an agreement. The White House rejected a Republican proposal that did not raise tax rates on top incomes. Internationally, concerns grew over Syria's chemical weapons as the U.S. warned of consequences if they were used. In Egypt, protests accelerated against Morsi's plans for a referendum on a new constitution. On other foreign issues, the U.S. opposed further Israeli settlements and Senate passed a defense bill authorizing $631.4 billion in spending.

1. December 7, 2012
DOMESTIC POLICY MATTERS
The Fiscal Cliff Debate. On Monday, House Republican leaders presented a debt reduction counter-offer to
the White House. The plan would raise $800 billion in new tax revenue through an overhaul of the tax code,
cut $600 billion from federal health programs, and save $200 billion from reforms to Social Security. Although
it includes new tax revenue, the plan does not raise tax rates on the top two per cent of U.S. incomes, so the
White House rejected the proposal as not meeting “the test of balance.” On Wednesday, Treasury Secretary
Tim Geithner said the Obama Administration is “absolutely” willing to go off the so-called fiscal cliff, if House
Republicans refuse to increase tax rates on the wealthiest Americans. House Ways and Means Committee
Chairman Dave Camp (R-Michigan) called the Obama Administration’s position “purely political.” President
Obama and House Speaker John Boehner (R-Ohio) spoke about fiscal cliff issues by phone Wednesday, and
on Thursday, White House congressional liaison Rob Nabors met with House Republican leadership staff.
During a House Transportation and Infrastructure Committee hearing Tuesday, Federal Emergency
Management Agency (FEMA) head Craig Fugate said the agency has “sufficient resources” to operate until
the spring without supplemental disaster assistance funding. However, Housing and Urban Development
Secretary Shaun Donovan confirmed the Administration will make a $60.4 billion request to Congress for
emergency aid for Hurricane Sandy recovery efforts. On Wednesday, Senate Republicans sought to take
up the House-passed STEM Jobs Act (HR 6429), designed to increase the number of visas for high-skilled
immigrants, but Senate Democrats blocked consideration over the bill’s elimination of the diversity visa
program. Also on Wednesday, the House amended a $17.4 billion Coast Guard reauthorization bill and
sent it back to the Senate. On Wednesday evening, hours before limited recreational use of marijuana
became legal under Washington state law, the U.S. Department of Justice confirmed that “marijuana remains
illegal under federal law,” setting up a possible legal challenge. Leaders of the House and Senate Agriculture
Committees insisted Thursday they are still working on a compromise farm bill that could be part of a
broader deficit-reduction agreement. On Friday, the Department of Labor announced that the U.S. economy
added 146,000 jobs in November, exceeding some economists’ predictions and bringing the unemployment
rate down to 7.7 percent. The White House stated, “[W]hile more work remains to be done, today’s
employment report provides further evidence that the US economy is continuing to heal from the wounds
inflicted by the worst downturn since the Great Depression.” Reversing his previous position, President
Obama announced Friday that his Inaugural Committee will accept unlimited corporate donations for his
second Inauguration in January 2013. The Supreme Court announced Friday that it will hear two cases on
the constitutional issues surrounding same-sex marriage.
Political News. Congresswoman Jo Ann Emerson (R-Missouri) announced on Monday that she will become
president of the National Rural Electric Cooperative Association and will leave her seat in February, meaning
there will be a new House Appropriations Financial Services Subcommittee Chair. On Tuesday, Senator
Michael Bennet (D-Colorado) announced he will serve as Chairman of the Democratic Senatorial Campaign
Committee for the 2014 election cycle, when 20 Democratic-held and 14 Republican-held Senate seats will be
on the ballot. Also on Tuesday, the Democratic Governors Association (DGA) elected Vermont Governor
Peter Shumlin as Chair. Former House Judiciary Committee and House Government Operations Committee
Chairman Jack Brooks (D-Texas) passed away Tuesday. On Wednesday, House Minority Leader Nancy
Pelosi (D-California) announced committee ranking members for the new Congress. New York
Representatives Eliot Engel and Nita Lowey will be the next Ranking Members of the House Foreign Affairs
Committee and the House Appropriations Committee, respectively. On Thursday, Senator Jim DeMint (R-
South Carolina), who was expected to serve as the new Ranking Member on the Senate Commerce
Committee, announced he will resign in January to become President of the Heritage Foundation, a
conservative think tank. Senator DeMint’s resignation leaves an open seat that South Carolina Governor
Nikki Haley (R) must fill via appointment until a special election is held in November 2014.
FOREIGN POLICY MATTERS
Syria. On Monday, U.S. defense officials confirmed activity, including movements of weapons components,
had been reported at the Assad regime’s known chemical sites. The United States, NATO and Russia again
warned the Syrian government against unleashing its stockpile of chemical weapons. President Obama said:
“I want to make it absolutely clear to Assad and those under his command: The world is watching. The use
of chemical weapons is and would be totally unacceptable. And if you make the tragic mistake of using

2. these weapons, there where be consequences….” Tuesday, Secretary Clinton said an agreement had been
reached to augment Turkey’s air defenses with advanced NATO Patriot missile batteries to protect against
the ballistic missile threat from Syria. On the margins of the OSCE Ministerial in Dublin Thursday, Secretary
Clinton met with Russian Foreign Minister Sergei Lavrov and U.N.-Arab Special Envoy Lakhdar Brahimi to
discuss options for the deteriorating situation in Syria. Also Thursday, Senators John McCain (R-Arizona),
Lindsey Graham (R-South Carolina), Joe Lieberman (I-Connecticut) and Chris Coons (D-Delaware) called on
President Obama to launch pre-emptive military action if the Administration receives “hard intelligence” of a
Syrian decision to use chemical weapons. Next week, the Secretary will be in Morocco to participate in a
meeting of the Friends of the Syrian People before traveling onto Tunisia and the United Arab Emirates.
Egypt. While protests continued this week and accelerated on Friday, Egyptian President Mohammed Morsi
confirmed the referendum on a new Islamist-oriented constitution will go ahead as planned; saying if the
constitution were voted down, another constituent assembly would be formed to write a new draft. On
Thursday, President Obama called President Morsi to express his deep concern about the deaths and injuries
of protesters in Egypt. The President welcomed President Morsi’s call for a dialogue with the opposition.
After Israeli Prime Minister Benjamin Netanyahu announced the planned expansion of settlements in East
Jerusalem, the State Department said Monday: “The United States opposes all unilateral actions, including
West Bank settlement activity and housing construction in East Jerusalem, as they complicate efforts to
resume direct, bilateral negotiations, and risk prejudging the outcome of those negotiations. This includes
building in the E-1 area as this area is particularly sensitive and construction there would be especially
damaging to efforts to achieve a two-state solution.”
Tuesday evening, the Senate passed 98-0 its version of the Fiscal Year 2013 National Defense
Authorization Act (NDAA, S. 3254); the measure authorizes $631.4 billion in discretionary spending.
Included in the Senate NDAA is Senator McCain’s amendment to require a feasibility study on a no-fly zone
over Syria. The Senate also approved an amendment, co-sponsored by Senators Jon Kyl (R-Arizona) and
John Kerry (D-Massachusetts), to require the Administration to brief appropriate Congressional committees
on any dialogue with Russia on nuclear arms, strike systems, or defenses. The Senate and House now must
conference to reconcile differences in their respective NDAA bills. The House NDAA measure (H.R. 4310)
authorizes $635.3 billion, about $4 billion more than President Obama’s request and $8 billion more than
called for under the 2011 debt limit law (P.L. 112-25). Other areas of difference are Senate-passed Iran
sanctions (for which House leaders have voiced support), abortion services and insurance coverage for
servicewomen, detention policy for U.S. citizens and legal aliens, and treatment of gay service members.
On Thursday, the Senate approved (92-4) the House-passed legislation (H.R. 6156) to provide for
Permanent Normal Trade Relations with Russia and Moldova. The measure also repeals the Jackson-
Vanik law and replaces it with the Sergei Magnitsky Accountability Act that would punish Russian human
rights violators. In withdrawing his amendment to globalize the Magnitsky bill’s reach, Senator Ben Cardin (D-
Maryland) said, “This bill may only apply to Russia, but it sets a standard that should be applied globally.”
Russian Foreign Minister Lavrov told Secretary Clinton in Dublin that Russia will in turn blacklist Americans
guilty of human rights violations. H.R. 6156 now heads to President Obama for his expected signature.
With October 2013 as the target date for concluding negotiations on the Trans-Pacific Partnership (TPP),
member countries’ trade negotiators descend on New Zealand this week for the 15th round of discussions
over the 29 chapters of the TPP agreement. Negotiators are scheduled to spend six of the ten days
discussing the environment chapter, particularly its dispute settlement provisions.
Monday, Secretary Clinton discussed energy security and other issues with Czech officials. In Dublin
Thursday, Secretary Clinton spoke on four frontlines of human rights, including: (1) religious freedom,
which the United States is helping Burma and other transitioning countries to understand more fully; (2)
Internet freedom; (3) the role of civil society; and (4) women and girls’ human rights. The Secretary also said
the State Department will begin to track every country’s legal minimum age of marriage and rate of underage
marriage. On Friday, Secretary Clinton was in Northern Ireland, meeting with Northern Ireland Executive
First Minister Peter Robinson and Deputy First Minister Martin McGuinness and United Kingdom Secretary of
State for Northern Ireland Theresa Villiers. Monday, White House Press Secretary Jay Carney extended
“…congratulations to the Duke and Duchess of Cambridge on the welcome news…they are expecting their
first child.” The media reported Friday that Iranian scientists and military officers will attend North Korea's
test launch of a long-range ballistic missile expected this month. The United States is urging Pyongyang to
cancel the test but is reportedly shifting four warships into position to track the rocket.
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