[House Hearing, 114 Congress] [From the U.S. Government Publishing Office] THE IRAN NORTH KOREA STRATEGIC ALLIANCE ======================================================================= JOINT HEARING BEFORE THE SUBCOMMITTEE ON TERRORISM, NONPROLIFERATION, AND TRADE SUBCOMMITTEE ON ASIA AND THE PACIFIC AND THE SUBCOMMITTEE ON THE MIDDLE EAST AND NORTH AFRICA OF THE COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION __________ JULY 28, 2015 __________ Serial No. 114-76 __________ Printed for the use of the Committee on Foreign Affairs [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Available via the World Wide Web: http://www.foreignaffairs.house.gov/ or http://www.gpo.gov/fdsys/ ______ U.S. GOVERNMENT PUBLISHING OFFICE 95-694 PDF WASHINGTON : 2015 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON FOREIGN AFFAIRS EDWARD R. ROYCE, California, Chairman CHRISTOPHER H. SMITH, New Jersey ELIOT L. ENGEL, New York ILEANA ROS-LEHTINEN, Florida BRAD SHERMAN, California DANA ROHRABACHER, California GREGORY W. MEEKS, New York STEVE CHABOT, Ohio ALBIO SIRES, New Jersey JOE WILSON, South Carolina GERALD E. CONNOLLY, Virginia MICHAEL T. McCAUL, Texas THEODORE E. DEUTCH, Florida TED POE, Texas BRIAN HIGGINS, New York MATT SALMON, Arizona KAREN BASS, California DARRELL E. ISSA, California WILLIAM KEATING, Massachusetts TOM MARINO, Pennsylvania DAVID CICILLINE, Rhode Island JEFF DUNCAN, South Carolina ALAN GRAYSON, Florida MO BROOKS, Alabama AMI BERA, California PAUL COOK, California ALAN S. LOWENTHAL, California RANDY K. WEBER SR., Texas GRACE MENG, New York SCOTT PERRY, Pennsylvania LOIS FRANKEL, Florida RON DeSANTIS, Florida TULSI GABBARD, Hawaii MARK MEADOWS, North Carolina JOAQUIN CASTRO, Texas TED S. YOHO, Florida ROBIN L. KELLY, Illinois CURT CLAWSON, Florida BRENDAN F. BOYLE, Pennsylvania SCOTT DesJARLAIS, Tennessee REID J. RIBBLE, Wisconsin DAVID A. TROTT, Michigan LEE M. ZELDIN, New York DANIEL DONOVAN, New York Amy Porter, Chief of Staff Thomas Sheehy, Staff Director Jason Steinbaum, Democratic Staff Director Subcommittee on Terrorism, Nonproliferation, and Trade TED POE, Texas, Chairman JOE WILSON, South Carolina WILLIAM KEATING, Massachusetts DARRELL E. ISSA, California BRAD SHERMAN, California PAUL COOK, California BRIAN HIGGINS, New York SCOTT PERRY, Pennsylvania JOAQUIN CASTRO, Texas REID J. RIBBLE, Wisconsin ROBIN L. KELLY, Illinois LEE M. ZELDIN, New York ------ Subcommittee on Asia and the Pacific MATT SALMON, Arizona Chairman DANA ROHRABACHER, California BRAD SHERMAN, California STEVE CHABOT, Ohio AMI BERA, California TOM MARINO, Pennsylvania TULSI GABBARD, Hawaii JEFF DUNCAN, South Carolina ALAN S. LOWENTHAL, California MO BROOKS, Alabama GERALD E. CONNOLLY, Virginia SCOTT PERRY, Pennsylvania GRACE MENG, New York SCOTT DesJARLAIS, Tennessee ------ Subcommittee on the Middle East and North Africa ILEANA ROS-LEHTINEN, Florida, Chairman STEVE CHABOT, Ohio THEODORE E. DEUTCH, Florida JOE WILSON, South Carolina GERALD E. CONNOLLY, Virginia DARRELL E. ISSA, California BRIAN HIGGINS, New York RANDY K. WEBER SR., Texas DAVID CICILLINE, Rhode Island RON DeSANTIS, Florida ALAN GRAYSON, Florida MARK MEADOWS, North Carolina GRACE MENG, New York TED S. YOHO, Florida LOIS FRANKEL, Florida CURT CLAWSON, Florida BRENDAN F. BOYLE, Pennsylvania DAVID A. TROTT, Michigan LEE M. ZELDIN, New York C O N T E N T S ---------- Page WITNESSES Mr. Ilan Berman, vice president, American Foreign Policy Council. 9 Ms. Claudia Rosett, journalist-in-residence, Foundation for Defense of Democracies......................................... 21 Larry Niksch, Ph.D., senior associate, Center for Strategic and International Studies.......................................... 34 Jim Walsh, Ph.D., research associate, Security Studies Program, Massachusetts Institute of Technology.......................... 56 LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING Mr. Ilan Berman: Prepared statement.............................. 12 Ms. Claudia Rosett: Prepared statement........................... 23 Larry Niksch, Ph.D.: Prepared statement.......................... 36 Jim Walsh, Ph.D.: Prepared statement............................. 58 APPENDIX Hearing notice................................................... 84 Hearing minutes.................................................. 85 THE IRAN-NORTH KOREA STRATEGIC ALLIANCE ---------- TUESDAY, JULY 28, 2015 House of Representatives, Subcommittee on Terrorism, Nonproliferation, and Trade, Subcommittee on Asia and the Pacific and Subcommittee on the Middle East and North Africa, Committee on Foreign Affairs, Washington, DC. The subcommittees met, pursuant to notice, at 3:03 p.m., in room 2172, Rayburn House Office Building, Hon. Ted Poe [chairman of the Subcommittee on Terrorism, Nonproliferation, and Trade] presiding. Mr. Poe. The subcommittees will come to order. Without objection, all members may have 5 days to submit statements, questions, extraneous materials for the record, subject to the length limitation in the rules. I do want to thank especially our witnesses for being here and the members as well. This apparently is Iran day at Capitol Hill, and so we will continue the discussion of Iran. The long history of secret cooperation between Iran and North Korea in violation of international law stretches back for decades. North Korea first sold Iran ballistic missiles during the 1980s during Iran's war with Iraq. By the end of the 1980s, North Korea and China were supplying Iran with about 70 percent of its arms. Move to the 1990s, and Iran and North Korea had moved onto working together to develop long-range ballistic missiles. North Korean long-range ballistic missiles became the basis for the Iranian Shahab missile series, which currently threatens Israel, our other Middle East allies, and even Central Europe. In fact, the intelligence community has said that missile cooperation between Iran and North Korea has provided Iran with an increase in its military capabilities. By the beginning of the 2000s, the Iranians were giving North Korea sensitive data from their own missile tests to improve the North Korean missile systems. In fact, Iranian officials have been present at nearly every major North Korean missile test. This history of very close cooperation on ballistic missiles only has the potential to grow and deepen as a result of the Iranian nuclear deal. In 8 years, Iran will be able to freely work on its ballistic missile system. Iran was able to achieve so much in secret, thanks to its North Korean allies. We can only imagine what it will be able to do after the ban on the ballistic missile program is lifted. There is a growing evidence that Iran and North Korea have not only been cooperating on missile programs but also in the nuclear field. The media reports, as far as back as 1993, that there are indications that the Iranians financed North Korea's nuclear program with $500 million in return for nuclear technology. South Korean news outlets rang the alarm in 2011 alleging that hundreds of North Korean nuclear and missile experts were working in Iran. One of those places that had North Korean experts working in it was Natanz, a nuclear facility where centrifuges will continue to enrich uranium under the nuclear deal. Iranian defectors have also revealed a long history of North Korean experts working on the Iranian nuclear program. Just like with the missile program, Iranian officials have attended nearly every North Korean nuclear test, gleaning important information to improve their nuclear program. Last month, an Iranian opposition group claimed that nuclear expert delegations from North Korea had traveled to Iran three times this year alone. The delegations allegedly met with Iranian officials responsible for nuclear warhead design. These recent visits occurred as Iran was buckling under a serious sanctions regime. Now that sanctions probably will be lifted and Iran will receive anywhere from $50 billion to $150 billion in what I term a signing bonus and hundreds of billions of dollars more in oil revenue, that means a lot more money to pay cash-hungry North Korea for game-changing nuclear technology and expertise. The strong relationship between Iran and North Korea was forged in secrecy. We do not even know the full extent of their working together. What we do know is that now that the world has given the Iranian nuclear program an apparent stamp of approval, North Korea has a lot to gain from the Iranians as well. Continued work on the Iranian nuclear program will mean more transfer of sensitive nuclear information back and forth between the two most dangerous rogue regimes in the world. A better understanding of the strategic alliance between Iran and North Korea highlights the inherent dangers of an Iranian nuclear program. Unfortunately, it appears that these dangers will only multiply as soon as the nuclear deal goes in effect. I will now turn to the ranking member of the subcommittee, Mr. Keating from Massachusetts, for his opening statement. Mr. Keating. Thank you, Chairman Poe, Chairman Salmon, and Chairman Ros-Lehtinen, for conducting this joint hearing today. I would also like to thank our witnesses for being here today to discuss the relationship between Iran and North Korea. As this morning's full committee hearing with Secretaries Kerry, Moniz, and Lew demonstrated, there are many questions that remain among members of this committee regarding the scope of the threat of Iran and North Korea. I believe that you will be able to provide valuable insight on this issue and I look forward to your testimony. Both Iran and North Korea present national security threats to the United States and our allies. They each have a history nuclear proliferation, engage in serious human rights abuses, and are a source of instability in their respective regions. Iran is a sponsor of terrorism through illicit activities led by the Islamic Revolutionary Guard Corps and Quds Force. Most threatening is its network of partners beyond its borders and the influence that its funding and support holds over the region. Likewise, North Korea is known to be heavily involved in transnational organized crime. Make no mistake, Iran and North Korea are dangerous actors on the world stage. Generally, the extent to which an adversary is considered a threat can be measured by considering its capability times its intent. As we review and analyze the Joint Comprehensive Plan of Action transmitted to Congress, we must consider how a nuclear agreement with Iran would impact its capabilities and intentions beyond its borders. With this in mind, it is worth exploring whether, as some have suggested, a nuclear deal with Iran might enable and promote it to obtain nuclear or missile technology from cash-strapped North Korea. But in doing so, we have to rely on credible evidence. For example, we know that North Korea sold Scud missiles to Iran beginning in the 1980s, and according to the U.S. intelligence community, the two countries have cooperated significantly on ballistic missile technology, but according to the Congressional Research Service, according to unclassified and declassified U.S. intelligence community assessments, and in reports of that nature, they indicate to date that there is no evidence that Iran and North Korea have engaged in nuclear- related trade or cooperation with each other. I look forward to hearing more from our witnesses about any cooperation between Iran and North Korea with respect to nuclear or missile technology and how the Joint Comprehensive Plan of Action might affect the relationship between these two countries. With that, I yield back. Mr. Poe. Thank the gentleman from Massachusetts. This is a joint subcommittee hearing with three subcommittees, and all three chairs are here. I will now recognize the chairman of the Asia and the Pacific Subcommittee, Mr. Matt Salmon from Arizona, for his opening statement. Mr. Salmon. I think there was a line in a movie like, Mr. Chairman, Madam Chairman. Ms. Ros-Lehtinen. Doctor, Doctor. Mr. Salmon. Yes, Doctor, Doctor. Anyway, it is great to be here with both of you today and to have this hearing. I would like to also thank our distinguished witnesses for coming to speak on this Iran-North Korea relationship. As we consider the administration's Joint Comprehensive Action Plan with Iran, we have to ask, will Iran follow through with its international obligations? After hearing the administration explain the terms of the deal this morning, I can't be so sure. The deal could put Iran on a path toward developing a nuclear bomb within 10 short years. As chairman of the Asia and the Pacific Subcommittee, I am concerned with the decades-long nuclear and military cooperation between Iran and North Korea and exactly what implications the deal has on their prospects for developing nuclear weapons. North Korea's nuclear weapons program has been the primary focus of the U.S.-North Korea policy for decades. It has tested three nuclear devices within the last 10 years and, in May 2012, declared itself a nuclear arms state. North Korea appears to be expanding its capacity to produce both plutonium and highly enriched uranium for nuclear weapons. North Korea has repeatedly emphasized the role of its nuclear weapons as a deterrent and as a means to obtain concessions and cash in exchange for technology and components. North Korea has a track record similar to Iran of failing to meet international obligations. The February 29 of 2012 agreement committed North Korea to a moratorium on nuclear tests, long-range missile launches, and uranium enrichment at the Yongbyon facility, as well as readmission of IAEA inspectors. In return, the administration pledged 240,000 tons of food aid. The deal quickly fell apart when North Korea announced its intention to launch a long-range rocket in March, successfully doing so in December 2012. North Korea's sales of missile technology and sharing of expertise to Iran is a major concern. Iran has cultivated a close relationship with North Korea on ballistic missile programs, beginning with the acquisition of Scud missiles in North Korea back in the 1980s. Iran continues to pursue capabilities that could ultimately be used to build missile- deliverable nuclear weapons, and missile sales and missile test information have been a key source of hard currency for the Kim regime. In the past decade, Iran and North Korea have also cooperated on nuclear research and technology. In 2015 alone, North Korea nuclear experts allegedly visited Iran at least three times to exchange information and intelligence. Secretary of Defense Ash Carter stated in April that North Korea and Iran could be cooperating to develop a nuclear weapon, including sharing technology related to nuclear weapons, material production, or data from nuclear or explosives testing. Desperately insecure and cash-starved, North Korea remains hell bent on developing and improving its nuclear capabilities. With Iran's impending access to $100 billion of frozen assets under the Joint Comprehensive Plan of Action, Iran could use some of those assets to procure material, technologies, and expertise from North Korea. I hope our witnesses can inform us about whether this should be a major concern for Congress. Given the history of cooperation between North Korea and Iran, I am very concerned about what the Iran deal may mean for our national security interests in both the Middle East and Asia. We need to know their motives and the implications of their cooperation so we can prevent bad deals from the start and not allow bad actors to unite in nuclear proliferation efforts against international agreements. Thank you, Mr. Chairman. I yield back. Mr. Poe. I thank the gentleman from Arizona. The Chair recognizes the ranking member for the Asia and Pacific Subcommittee, Mr. Sherman from California. Mr. Sherman. I will use my 5 minutes to focus on our hearing this morning. Secretary Kerry, I think, gave us some very interesting information, as he said that whether this deal holds or doesn't hold, we are free to impose new sanctions on Iran to try to change its behavior with regard to terrorism, with regard to holding four American hostages, and with regard to its complicity in the crimes of Assad in Syria. Deal or no deal, we need to adopt additional sanctions. And the work, every time we have adopted sanctions on Iran, has started in this room. And I look forward to working, deal or no deal, with everyone here to have the sanctions that will change Iranian behavior. I point out that the proponents of the deal say sanctions changed Iran's behavior and caused it to give up its nuclear weapon design, what the proponents say is an excellent deal. The opponents of the deal say sanctions can change Iran's behavior if we only stick to our guns and get tougher. So the one thing everybody that has come to this room seems to agree on is that sanctions can change Iran's behavior, and that outside the nuclear area, Iran's behavior needs a lot of changing. The second comment that Senator Kerry made in response to one of my questions is that, as everyone knows, if we override the President's veto, certain U.S. statutory sanctions legally are the law of the land and the waiver provisions don't exist, so the President is obligated by law to enforce them. But I have been at this for a long time, and we know that Presidents, though, don't always enforce statutes against Iran. In fact, the Iran Sanctions Act was not enforced once by the prior administration, and a lot of sanctions were pretty much ignored the first couple of years at least of this administration. And I asked the Secretary whether he would obey the law under those circumstances, and he said that that was too hypothetical a question. I would like to go on record to say that under all hypothetical circumstances, I intend to obey the law, but moreover, the Secretary came to us to talk about a hypothetical situation: What happens if Congress overrides the veto? And he told us what India would do, what Europe would do, what Iran would do, what China would do, but when I asked him what the administration would do under those circumstances, it was too hypothetical. As to the issue before us, Iran's going to have a lot of money; North Korea has nuclear weapons and a thirst for money. What could go wrong? As we know, obviously, North Korea could sell a completed nuclear weapon. They could sell fissile material. They could sell a weaponization plan. They could sell a bomb without the fissile material and any combination of this. Iran and North Korea have a long relationship of working on military matters together from the 1980s, which increased in the 1990s. We used to get annual reports until 2013 of the concern that North Korea would export its nuclear technology. So we don't have any proof that it is about to happen. We don't have any proof that it has already happened. We just have a country that has almost seemingly a desperate desire for nuclear weapons and another one with a desperate desire for money. And we know that the one with the desperate desire for nuclear weapons is going to get its hands on a lot of money very soon. Now, the question is what we do about it. We have got to look at planes and ships that would connect the two. I think if there is an exchange of money for nuclear material, it is much more likely to take place on a plane. A ship gives us a chance to track it and a chance to make a decision as to whether to interdict and board. Of course, a ship is also possible. We should not be encouraging the civil aviation of Iran by selling them planes and parts. We know they are going to use those planes to take thugs to Damascus to kill people. And we hope they don't use the planes to go pick up a nuclear weapon in North Korea. So we have got to see what are the opportunities to interdict either the shipment of a bomb in one direction or cash in the other. We have got to keep track of what Iran does with the $56 billion to $150 billion they get from this deal. But, finally, I think we are dependent upon China, which exercises such significant control over the most critical aspects of what the North Korean Government does. If China is willing to turn a blind eye to a cash-for-bomb situation, I don't know if we can stop it, and we certainly--if they were willing to turn that blind eye at Beijing Airport, I know we couldn't stop it. I yield back. Mr. Poe. Thank the gentleman. The Chair recognizes the right honorable gentlewoman from the Middle East and North Africa Subcommittee, Ms. Ileana Ros- Lehtinen from Florida. Ms. Ros-Lehtinen. Well, thank you so much, Judge Poe. I want to thank Judge Poe and Chairman Salmon for bringing our three subcommittees together to focus on the nexus between these two rogue regimes, Iran and North Korea. As Congress continues to do our due diligence on the Joint Comprehensive Plan of Action between the P5+1 and Iran that the Obama administration submitted to us last week, it is important that we do not make the same mistakes again. In 2008, I was outspoken against the George W. Bush administration for removing North Korea from the State Sponsors of Terrorism list as a concession to Pyongyang during negotiations over its nuclear program. And I am also outspoken against this administration's concessions to Tehran during the negotiations and ultimately this deal. Yet as far back as the Clinton administration, each administration continues to make the same mistakes of offering these rogue nations concessions while allowing them to maintain their nuclear infrastructure and misguidedly falling back on hope that this time will be different, this time things will change. These negotiations mirror the same track that the nuclear negotiations with North Korea took. Iran has been following the North Korean playbook on exactly how to extract concessions from the U.S. and the international community while simultaneously continuing to improve its nuclear program, expand its infrastructure, and support continues for its illicit activities. But it isn't just that the Iranian regime is following the North Korean playbook, successfully, I might add, it is that the Obama administration is following the same failed playbook that the Clinton and Bush administrations pursued. It is alarming and striking just how similar the language is between President Clinton's 1994 announcement of a nuclear agreement with North Korea and President Obama's announcement of a nuclear agreement with Iran earlier this month. Last week, Alan Dershowitz wrote about the similarities and even posted a chart that represented the similarities in the language, the words used between the Clinton administration and the Obama statements. In 1994, President Clinton said that the North Korea agreement will make the U.S., the Korean Peninsula, and the world safer. He assured us that the deal didn't rely on trust, that compliance would be certified by the IAEA. President Clinton also made the dubious claim that because of our willingness to engage North Korea on its nuclear profile, that would be a crucial step toward drawing Pyongyang into the global community and predicted the end of the rogue regime's isolation. Does any of this sound familiar to us? It should, because these are the same arguments that President Obama used when announcing the deal and that were used today in our Foreign Affairs full committee hearing. When the North Korea deal was reached, one of the most significant flaws was that it failed to dismantle any of Pyongyang's nuclear infrastructure. The deal was designed merely to delay the North Korean bomb, not prevent it, and we even promised, as we are doing in the JCPoA, to modernize and improve North Korea's nuclear infrastructure. And now we are aiming to prevent the Iranian bomb. The totality of this deal hinges on the bet by the administration and the rest of the P5+1 that the Iranian regime will see the error of its ways and wants to be part of the global community and will forsake its support for terror and other illicit behavior. That is a heck of a gamble to make when all of, not even just a preponderance, but all of the evidence indicates that this is not the likely outcome, but rather that Iran will use this as a means to increase its belligerence. And now with this deal, we are likely to see an increase in Iran-North Korea activity on ballistic missiles and covert nuclear actions because not only will we be lifting the sanctions on Iranian scientists and on Iran's nuclear program, but we will be lifting the sanctions on its ballistic missile program and its military leaders. And that is where Iran and North Korea are likely to resume their cooperation, on the weaponization and the ballistic missiles. This is a dangerous gamble for us to make with U.S. national security, and it is not a gamble that I or any of us should be willing to take. That is why we must reject this deal, demand a better deal, or else reimpose the sanctions and use the only action that Iran understands, strength, to force it to abandon its nuclear ambitions. Thank you, Mr. Chairman. Mr. Poe. The gentlelady yields back. The Chair will recognize the gentleman from Virginia, Mr. Connolly, for 1 minute. Mr. Connolly. Thank you, Mr. Chairman. You know, I just heard my friend from Florida equate these two agreements and call for the vote to disapprove the pending agreement with Iran. I think there are some lessons from North Korea. One was we decided consciously to not engage, and we paid a very heavy price for that. And in the case of Iran, we have decided to engage, and we have an agreement that you couldn't possibly compare to that with North Korea. And I just think, you know, we should never be afraid to be engaged, especially when it comes to the nuclear question. I don't think it is so cut and dried. While I respect my friend from Florida, I also respectfully disagree. I don't think this is a clear-cut case at all that calls for absolute rejection and renunciation by the Congress of the United States. I think that is a very momentous step, not a political one, it shouldn't be a political one and one we ought to contemplate with great care. So I certainly look forward to the testimony today, and I would like to hear some of the differences between North Korea and Iran, because I happen to think they are pretty profound. I yield back. Mr. Poe. Thank the gentleman from Virginia. The Chair recognizes the gentleman from South Carolina, Mr. Duncan. Mr. Duncan. Thank you, Mr. Chairman. I have got a question for the ranking member. You know, what is keeping North Korea from selling ballistic missiles or nuclear weapons to Iran today? Regardless of whether we walk away from this agreement or not, North Korea can still sell them the weapons. Nothing is stopping them. In February and April 2007, North Korea agreed to ``abandoning all nuclear weapons and existing nuclear programs, and returning at an earlier date to the Treaty on the Nonproliferation of Nuclear Weapons and the IAEA safeguards.'' Supposedly this significant achievement commits all six parties to a denuclearized Korean Peninsula and will lead to a more stable and secure northeast Asia. For doing this, North Korea received, as it complies with its commitment, they received 950,000 tons of heavy fuel oil. Well, guess what? In September 2008, they cranked the nuclear program back up, and to this day, they have a nuclear weapon. Those are the facts. North Korea has got a nuclear weapon. If Iran wants a nuclear weapon, regardless of what this agreement that we talked about today at length, if we don't have the ability to inspect the appropriate sites, they are still going to get a nuclear weapon. This agreement has no teeth, and they are going to have $150 billion to give arms and money to Hezbollah and Hamas. They are still exporters of terrorism. Those are the facts. I yield back. Mr. Poe. The gentleman yields back. Does any other member wish to be recognized for an opening statement? If not, I will introduce our witnesses. Once again, I want to thank all four of you for being here today on this day of Iran at the Capitol Hill. Mr. Ilan Berman is vice president of the American Foreign Policy Council. Mr. Berman is widely published on issues of regional security and foreign policy and has also consulted for the CIA, the Department of Defense, and many other government agencies. Ms. Claudia Rosett is a journalist-in-residence at the Foundation for Defense of Democracies. Ms. Rosett is widely recognized as a groundbreaking reporter and won the 2005 Eric Breindel award and the Mightier Pen award for her work on the U.N. Oil-for-Food scandal. Dr. Larry Niksch is a senior associate at the Center for Strategic and International Studies. Dr. Niksch specializes in U.S. security policy in East Asia and the Western Pacific. And Dr. Jim Walsh is a research associate at the Massachusetts Institute of Technology's Security Studies Program. Dr. Walsh is one of a handful, and a very few handful, of Americans who have traveled both to Iran and North Korea for talks with officials regarding nuclear issues. Each of you will have 5 minutes. There should be three lights in front of you. The red one means it is time to stop. We will start with Mr. Berman. You have 5 minutes. And your statements all are in the record, so we have all your statements. You may summarize them or you may read your statement. STATEMENT OF MR. ILAN BERMAN, VICE PRESIDENT, AMERICAN FOREIGN POLICY COUNCIL Mr. Berman. Thank you, sir. Chairman Poe, Chairman Salmon, Chairwoman Ros-Lehtinen, Ranking Members Keating, Sherman, and Deutch, thank you so much for the opportunity to be present before you today to talk about this issue. The strategic partnership between Iran and North Korea is one of the most significant, yet one of the most often overlooked aspects of the strategic threat that is posed both by Iran and by North Korea. It is also one that today, as Congress begins to deliberate over the new nuclear agreement struck between the P5+1 and Iran, merits renewed attention by this committee and by Capitol Hill as a whole. Because my time is limited here, let me focus on just three aspects of this strategic relationship, which are important in their own right, certainly, but also important in particular because of the implications they hold for the JCPoA. The first is that Iran's relationship with North Korea is vibrant, certainly, but it is not unique. It makes up part of a larger global strategy that is being pursued by the Islamic Republic, and not just in Asia: It is being pursued in Latin America; it is being pursued in Europe; it is being pursued in Africa. And it is one that is designed simultaneously to lessen Iran's global isolation as a result of the sanctions imposed by us and our international partners, and also, more ambitiously, to expand its strategic reach. And in Asia, in particular, what Iran has done has mirrored very much the Obama administration's own Asia pivot, where in 2011, we have declared our interest in the region as an area of new opportunity and new strategic focus. The Iranians have done so as well, but not just in an economic sense and not just in a military sense. Iran has looked toward Asia in particular as a defense industrial hot spot. And in this regard, the partnership Iran has built with North Korea is of particular importance. The second takeaway is that North Korea has materially aided Iran's strategic capabilities, and as a result, it has expanded the threat that Iran poses to the West. The members all talked in their opening statements about ballistic missile and nuclear cooperation between Iran and North Korea. This is vibrant. It is ongoing. And there is credible evidence to suggest that cooperation on these fronts has helped to materially enhance not only the Iranian nuclear program, but also the sophistication and the know-how of the North Korean effort as well. I am happy to delve deeper into that in the question and answers. The third takeaway, and I think the most germane, given that today is Iran day on Capitol Hill, is that Iran has learned a tremendous amount about nuclear diplomacy and about the way the West negotiates through the North Korean experience. Since the early 1990s, North Korea has engaged in extensive diplomacy with the international community over its nuclear program, and it has obtained significant diplomatic and economic inducements as a result of purported good behavior. These inducements have played an instrumental role in strengthening and stabilizing the Kim regime in Pyongyang, but they have not led Pyongyang to give up its nuclear program. To the contrary, it is very credible to say that they have made it possible for the North Koreans to continue their nuclear program and strategic programs. The North Koreans have reneged over time on every single one of the commitments that they have given in the Agreed Framework as well as in the now defunct Six Party Talks that stretched from 2003 to 2009. They have done so, notably, without adverse consequences, because the international community continues to maintain that a conciliatory posture rather than a punitive posture is likely to change North Korean behavior. Here we come to Iran, because Iran today finds itself in very much the same position. In fact, I would make the case that Iran finds itself in a much better one because the scope of the financial relief that is inherent in the JCPoA dwarfs the kind of economic and political stimuli that North Korea received as a result of its previous negotiations with the West. I made this case in a hearing last week, and just to reiterate, because the historical evidence backs it up, the JCPoA is tantamount to a Marshall Plan for the Islamic Republic of Iran. This sounds like an exaggeration, but it isn't. By way of comparison, I will point out that, under the terms of the JCPoA, later this year or early in 2016, once we have requisite verification from the IAEA, the U.S. will begin unblocking $100 billion to $150 billion of frozen Iranian oil revenue. That sum equates to roughly a quarter of Iran's annual gross domestic product, which last year was $415 billion. It also matches or exceeds the entire post-World War II reconstruction plan for Europe that was marshaled by the Truman administration. That effort was launched in 1948 and facilitated the disbursement of $13 billion, equivalent to $120 billion in today's currency, to 17 separate countries in Southern and Eastern Europe over the course of 4 years. Now, we hope that Iran will use the financial windfall that it receives from the JCPoA for domestic purposes. But it is quite clear that they can use it just as easily, because money is fungible, on strategic capabilities, on the support of terrorism. If and when they do so, and I think there is every reason to believe that they will, they will find, in their partnership with North Korea, a cash-strapped partner that is more than willing to provide them with the resources that will materially expand both their ballistic missile program and their nuclear program. Thank you. [The prepared statement of Mr. Berman follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ---------- Mr. Poe. Thank you, Mr. Berman. I would like to remind witnesses and members to abide by the 5-minute rule. We have votes in an hour and 5 minutes. Hopefully we can finish this hearing before we have votes. If not, then we will all get to come back later tonight and finish the hearing. Ms. Rosett. STATEMENT OF MS. CLAUDIA ROSETT, JOURNALIST-IN-RESIDENCE, FOUNDATION FOR DEFENSE OF DEMOCRACIES Ms. Rosett. Thank you. Chairman Poe, Chairman Salmon, and Ros-Lehtinen, thank you for the chance to testify here today. The administration tells us that the JCPoA cuts off all Iran's pathways to the bomb. That is simply not true. It does not cut off the pathways to North Korea. And I would be glad to provide you details on the shipping routes. For more than three decades, as you have just heard, they have been partners in arms, and North Korea's chief role in that partnership has been as a munitions back shop for Iran's Islamic Republic. At this point, as you know, North Korea has conducted three nuclear tests, is making nuclear warheads, estimated even by China to be reaching into the double digits, helped Iran's client state Syria build a reactor that was under construction for years before it was discovered and destroyed in 2007 by an Israeli air strike. It beggars belief that Syria dared do that without Iran playing some part in it. And they are--oh. One more item. Our top military officials have been testifying and saying to the press that they assess that North Korea has the capacity to fit a nuclear warhead on an ICBM, meaning they can target us, and if the Iranians get that, guess what they can target too? The two countries are diplomatic allies as well. This is based not just on weapons but on a shared hostility to the United States. They are both regimes--this is vital to understand--based on the coercive perfection of mankind, and they have expressed this. The current Supreme Leader of Iran, Ali Khamenei, went to visit the founding tyrant of North Korea in 1989, and they both celebrated in Pyongyang together their shared hostility to the U.S. I can give you much more recent examples. One of the first meetings that Iranian's nuclear negotiator, Javad Zarif, had in Iran after the first round of nuclear talks in Vienna last year was with a North Korean envoy. This deal in particular gives North Korea--gives, I am sorry, Iran--a gift to North Korea as well--four things that will make it more attractive for these two countries to collaborate specifically on nuclear development. One is the snapback sanctions, which actually are a disincentive for the United States and its partners to call out Iran for cheating. The penalty is basically to blow up the deal, and this means Iran will have to go very far before anyone calls it out. Perversely, that makes it safer for North Korea to cheat, specifically on nuclear matters with Iran. Second, money, obviously lots of money. In fact, the rounding terms in the money that Iran will get dwarf North Korea's annual merchandise trade exports. The third is procurement access. Iran will have far freer access globally both to the financial system and to markets, much easier to buy illegitimate goods. North Korea and Iran partner in weapons development. As convenient, you will have a procurement channel through Iran's overseas illicit networks. While inspectors are watching Iran, you are going to have to watch the rest of the globe. Much harder to detect. Finally, nuclear research and development, which will be given to Iran, yes, for civilian purposes, but even things as basic as welding, advanced welding skills, can be of great use to North Korea in its weapon programs to be fed back to Iran. And this research and development is to include workshops and training from America and its partners in thwarting sabotage of nuclear facilities. The administration is entirely secretive about anything to do with Iranian-North Korean nuclear cooperation. Many accounts in the press. What is missing is confirmation from the administration. That Congressional Research Service report notes that Congress might wish to ask the administration for much more classified information to be declassified. The flow of that has greatly dwindled in recent years. Finally, the point I would really like to stress is that these deals for North Korea have been not regime transforming, but regime sustaining. That is the lesson that Iran has certainly read into the failed North Korea deals that we have done, from which North Korea emerged with a nuclear bomb. The answer would not be to conclude another nuclear deal with North Korea. It is time that Washington focused on a real strategy and plan for bringing down the regime in Pyongyang. There is no other answer to their nuclear weapons, and it would be the most salutary message that could possibly be sent to Iran because the message would be that nuclear weapons do not make it easier for tyrannies to survive. Thank you very much. [The prepared statement of Ms. Rosett follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ---------- Mr. Poe. Thank you, Ms. Rosett. Dr. Niksch, 5 minutes. STATEMENT OF LARRY NIKSCH, PH.D., SENIOR ASSOCIATE, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES Mr. Niksch. Thank you, Mr. Chairman. One thing about my resume I should mention is that the main element of my career-- -- Mr. Poe. Is your mike on, sir? Mr. Niksch [continuing]. I have been an alumnus of the Congressional Research Service for 43 years, where I worked on East Asian security issues---- Mr. Chabot. Sir, if you could pull the mike a little closer too, it would be helpful. Thank you. Mr. Niksch [continuing]. Including the Iran-North Korean issue in the late 2000s. I want to address this policy of nondisclosure and denials coming from the executive branch about the North Korean-Iranian nuclear collaboration. And I have seen this for a number of years, going back into the Bush administration and continuing today. This has resulted in a relative obscurity of this issue in Washington. And the contrast here between these denials and this nondisclosure policy of the executive branch is the large volume of reports about both missile and nuclear collaboration between Iran and North Korea by reputable news media organs based on a large body of information provided to them by non- U.S. officials, intelligence officials, and intelligence reports in the U.K., Germany, Japan, Israel, South Korea, and Australia. I think these sources and the volume of this material conclusively makes the case that there is not only high-level missile collaboration between North Korea and Iran, but there is also high-level nuclear collaboration between North Korea and Iran. Now, these non-U.S. sources basically lay out, I think over the years, several stages in how this Iran-North Korean strategic relationship has developed. I want to highlight stage three, which it seems to me began about 2011. Prior to that time, most of the flow of cooperation, benefits, and assistance flowed out from North Korea to Iran, but after 2011, I have seen a reverse flow from Iran into North Korea, expanding Iranian investment of personnel and money in North Korea's domestic nuclear and missile programs. Iranian missile scientists were stationed in North Korea for a large part of 2012, well into 2013, to assist North Korea in preparing for that successful 2012 long-range missile test. And Representative Mike Rogers, then chairman of the House Intelligence Committee, was quoted in November 2013 that Iran and North Korea were working together to test engines for inter-continental ballistic missile. Now, what is the danger of this high level of collaboration, again, in both missiles and nuclear weapons? There is, I would argue, an immediate danger, and that is in North Korea's success since at least early 2013 in developing, and I think by this time probably mounting nuclear warheads on its intermediate-range Nodong missiles. Reports from Richard Engel of NBC News, Chris Nelson in the Nelson Report, and other statements from South Korean officials, I think, make it clear that North Korea has made this singular achievement in its nuclear weapons program. The danger immediately from this--and reports are that production of these warheads is increasing. That is what the Chinese nuclear experts told our people in February in Beijing. The danger simply is this: Iran's Shahab-3 intermediate-range missile is a twin of the Nodong, developed with considerable North Korean assistance. Nodong nuclear warheads will be, and I believe are, compatible with the Shahab-3. A North Korean- Iranian agreement to share Nodong nuclear warheads, it seems to me, is a realistic possibility at this stage. North Korea and Iran have had successful sea and air clandestine transportation networks. There have been few interdictions of these networks. The transfer of Nodong warheads from North Korea to Iran would have a good chance of success. And given the forecast for production increases in North Korea, you could see a real danger of this developing, it seems to me, as early as 2016. Thus, if this happens, Iran would have a secret stockpile of nuclear warheads, in Iran, that it could unveil at any time of its own choosing and thus present the United States, Israel, and the rest of the world with a fait accompli, regardless of what happens with the Iran agreement or anything else that goes on with the Iranian nuclear program. [The prepared statement of Mr. Niksch follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ---------- Mr. Poe. I thank the gentleman. Members of Congress will ask you questions, so you can continue your statement. Dr. Walsh. STATEMENT OF JIM WALSH, PH.D., RESEARCH ASSOCIATE, SECURITY STUDIES PROGRAM, MASSACHUSETTS INSTITUTE OF TECHNOLOGY Mr. Walsh. Mr. and Madam Chairs and Ranking Members, it is an honor to be with you today. In my remarks, I will focus on the single most important question regarding any Iran-North Korea relationship: Will Iran look to North Korea to help cheat on the nuclear deal? First, we need to ask, how should policymakers assess the risk of Iran-North Korea cheating? As I told the Senate Foreign Relations Committee, assessment is more than simply listing things that could go wrong. In theory, lots of things can happen, but in practice, very few of those possibilities come true. Experience and data enable analysts to distinguish between what is likely and what is unlikely. I would like to review with you the evidence available on this critical question. One piece of evidence, Iran's past nuclear behavior. The DNI has repeatedly testified that Iran had a structured nuclear weapons program that begin in the late 1990s and was halted in 2003. These activities represent a clear violation of Iran's NPT obligations and provide a cause of concern that Iran might violate its commitments in the future. A second source of evidence, Iran's current capabilities and intentions. The DNI reported in 2012 that ``Iran has the capacity to eventually produce nuclear weapons, making the central issue its political will to do so''--not technical, political. ``. . .We assess Iran is keeping open the option to develop nuclear weapons should it choose to do so. We do not know, however, if Iran will eventually decide to build nuclear weapons.'' To state it plainly, Iran does not currently have an active nuclear weapons program. It has no active covert weapons facilities, nuclear weapons facilities, and has not made a decision to pursue nuclear weapons. Of course, Iran could change course in the future, and the U.S. should take steps to minimize that possibility and be prepared to respond. Nevertheless, as a matter of risk assessment, these are favorable conditions for a nuclear agreement. On its face, it would seem odd for Iran to, A, have no weapons program; B, not to have made a weapons decision; C, agree to the most intrusive verification regime ever negotiated in a multilateral nonproliferation agreement; and D, then decide to cheat. Three, Iran-North Korea nuclear relations. Missile cooperation between Iran and North Korea has been well documented. Nuclear cooperation between the two is a different matter, however. People who believe there has been nuclear cooperation rely almost exclusively on media accounts. I have reviewed some 76 media reports covering a span of 11 years. None of the 76 reports has been confirmed--none. On the other side of the ledger, the DNI, the IAEA, the U.N. Panel of Experts for Iran, and the U.N. Panel of Experts for North Korea, despite numerous opportunities to do so, have never claimed Iranian-North Korean nuclear coordination. The Congressional Research Service concluded, ``There is no evidence that Iran and North Korea have engaged in nuclear- related trade and cooperation.'' It is worth pointing out that Iran and North Korea chose completely different paths for their weapons efforts. North Korea pursued a plutonium route, while Iran focussed on enrichment. At one point, North Korea decided to develop enrichment, but the centrifuges it fielded appeared to be different and more advanced designs than Iran's. So if Iran is helping North Korea, why are Iran's centrifuges worse? Finally, let me address the effects of the nuclear agreement on these risks. I judge that the agreement reduces the incentives for nuclear cooperation. First, if we find evidence of that cooperation, no matter how small, it will constitute a prima facie violation of the agreement. Second, it would require cross-regional transfers of people and material, which increases the risk of detection. Already we have ample cases of countries interdicting shipments by North Korea. Third, Iran would have to worry about the prospect that a North Korean defector might spill the beans. Iran will be sensitive to this possibility insofar as it is an alleged Russian that outed Iran's nuclear program in the early 2000s. Fourth, the mercurial nature of North Korea's young Kim Jong-un, complete with leadership purges and questionable behavior, might rightly give Iran pause at choosing it as a partner. Fifth, as a result of the agreement, surveillance on North Korea will likely increase, if only because governments fear such cooperation. And it will not simply be the U.S. that is doing the watching. Saudi Arabia and others will be motivated actors. Increased surveillance makes any cooperation between the two daunting and risky. In conclusion, I assess it is unlikely that Iran would attempt to cheat by collaborating with North Korea. Moreover, if it did, the chance that they would be detected would be substantial. Thank you. [The prepared statement of Mr. Walsh follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ---------- Mr. Poe. I thank the witnesses. And I recognize myself for 5 minutes for questions. Does North Korea have nuclear weapons? That is a yes or no question. Mr. Walsh. To whom, Mr. Chair? Mr. Poe. To all four of you. Just go down the row. Ms. Rosett. Yes. Mr. Poe. Go down the row. Ms. Rosett. Absolutely. Mr. Niksch. Yes, including nuclear warheads for the Nodong missile. Mr. Poe. Okay. Mr. Walsh. I would--they have nuclear devices. They have tested nuclear devices. Mr. Poe. Do they have nuclear weapons? Mr. Walsh. A nuclear device is not a usable military nuclear weapon. Mr. Poe. So, no. Mr. Walsh. It is unclear. They have tested. That has been a---- Ms. Rosett. The head of U.S. Forces Command Korea testified to Congress this spring that they have the ability to fit a warhead on an intercontinental ballistic missile. I think that we are looking at warheads here. Mr. Niksch. Richard Engel, the very experienced longstanding correspondent for NBC News, reported on April 3-- -- Mr. Sherman. Microphone. Mr. Niksch [continuing]. In 2013 that his sources and contacts in the U.S. Government--and he has extensive sources-- -- Mr. Poe. So, that is yes? Mr. Niksch [continuing]. In the U.S. Government, were telling him that North Korea had succeeded in developing a nuclear warhead for a missile with a range of 1,000 miles. Now, that missile in the North Korean arsenal is the Nodong. Chris Nelson reported a month later in the Nelson Report---- Mr. Poe. Thank you, Doctor. I think I got your answer was a yes. I am reclaiming my time. I am going to ask the questions because I am going to limit myself as well as everybody else to the time. Thank you. I know that the President of North Korea made the comment, I guess it was last year, that he was trying to develop an intercontinental ballistic missile and send it to Austin, Texas. I am offended by that to some extent, being from Texas, that he picked Austin, but the--set aside the nuclear agreement with Iran, just set that aside. Can North Korea and Iran still cooperate in mischief, like promoting terrorism, weapon development, conventional weapons? Set that whole thing aside and assume Iran will follow it as it is written. Mr. Berman, I will ask you that question. Mr. Berman. The answer is yes, sir, with caveats, which is that some of these programs are expensive. They are extensive, and they are expensive. This is why, in my opening statement, I focused on the sanctions relief that is coming in the direction of Iran in the near term. Because this cooperation is ongoing now when Iran is under sanctions and the North Koreans are hurting for cold hard cash. You heard Dr. Niksch talk about the ``reverse flow.'' Part of that has to do with the fact that, as Iran becomes reintegrated into the global economic community, it will have greater money to spend on collaboration with other countries, including North Korea. Mr. Poe. Okay. Let me reclaim my time, Mr. Berman. In other words, they can still work together, and Iran can still follow the deal, but they can work together. That still would have a detrimental effect to the world. For example, in the work, I will ask you, Ms. Rosett, of terrorism. Iran being the world's number one state sponsor of terror--I think North Korea should be on the list, but they are not--can Iran continue to develop its terrorist activities in the world working with North Korea to achieve that goal and still follow the deal? Ms. Rosett. Yes. North Korea has been of substantial assistance to Hezbollah, which is something, again, the administration has been silent on, but a Federal case in which I testified as an expert witness last year found that they have---- Mr. Poe. And be specific. Where is Hezbollah doing its mischief? Ms. Rosett. Southern Lebanon, which is pointing right at Israel, that is. And may I also give you an illustration of how North Korea, in fact, helped with proliferation in Vienna, right where the nuclear talks were taking place, there is an enormous North Korean Embassy on the edge of town, along with a big Iranian Embassy in the middle of it. And with the Syrian reactor, it was a former North Korean Ambassador to the IAEA in Vienna who set up an enormous procurement network spanning Europe, China, Asia, which helped buy the components for the Syrian reactor that the Israelis finally destroyed in 2007. There is no reason that could not be duplicated today. He worked through China, which through these entire negotiations has still not rolled up the illicit procurement network of another Chinese proliferator to Iran, Li Fangwei, for whom there is a $5-million reward offered by the State Department, who remains active, although the U.S., since 2004, has been demarching the Chinese to please try to shut him down. So is it possible? Oh, yes, with bells. Mr. Poe. Thank you. I will yield 5 minutes to the gentleman from Massachusetts, Mr. Keating, the ranking member. Mr. Keating. Thank you, Mr. Chairman. A couple of questions for Dr. Walsh, one in terms of nuclear cooperation; the other in terms of missile cooperation. The first one, my understanding is that Iranian and North Korean nuclear programs differ significantly in the types of fissile material and the types of centrifuges that are being used. Given those differences, how much would Iran benefit from nuclear cooperation with North Korea should that occur? Mr. Walsh. Well, I think, Congressman, that the DNI has made it clear that Iran as a basic nuclear weapons capability, because they know how to build a centrifuge. You can't bomb that knowledge out of their head. That is why the DNI says this is not a technical issue but a political issue and why I think the agreement is a good idea, because it puts Iran on a different path. Iran hasn't decided to go for nuclear weapons, despite the media claims. The DNI says it has not made the bomb decision. This is why I think this is important. But they were very different programs. Again, the North Koreans focused on the plutonium route. The Iranians focused on the uranium route. They don't really need the North Koreans. I mean, they are already there. The question is how do we keep them from making the decision, not how do we keep them from being there. That horse is out of the barn. Mr. Keating. And just to follow up on the second part, with missile cooperation, there is a lot of expert knowledge that assesses Iran has likely exceeded North Korea's ability to develop, test, and build ballistic missiles. So, in your view, would Iran have to gain--what would they have to gain from missile cooperation with North Korea? You know, how would the conclusion of the nuclear agreement with Iran affect Iran's incentive to work with North Korea in this kind of technology if so many experts believe they have already exceeded that? Mr. Walsh. Yeah. Well, I think Iran's program has been sort of slow and steady wins the raise, and North Korea's has sort of tried to leap to the end. Iran has solid fuel rockets. North Korea doesn't have solid fuel rockets. When you have a liquid fuel rocket, that makes that rocket vulnerable to preemption and attack. So the Iranians don't want liquid fuel propulsion technology. That is not going to help them at all. Now, to be fair, both face a problem with accuracy of their missiles and their guidance systems, but neither is in a position to help the other with that because they both have the same problem. Mr. Keating. Another quick question. How would you compare the two agreements, North Korea and Iranian? What was lacking in--what were some of the problems with the North Korean agreement, and have they been addressed? Mr. Walsh. Well, you know, as a summary statement about the comprehensive agreement, any agreement that is hated by Iranian hardliners and supported by Israeli intel and military people can't be all bad, but to answer specifically your question, the Agreed Framework was 3-pages long 20 years ago. The comprehensive agreement is 159 pages in the golden era of verification. As I alluded to, it is--compared to all the other nonproliferation agreements--this is not our first rodeo. We have been doing this for 70 years. Compared to all the others, this is the strongest multinational nonproliferation agreement ever negotiated. It has unprecedented features. A dedicated procurement channel does not exist in any of the past agreements; snapback sanctions, does not exist in any of the previous agreements; the science and the mandates available to IAEA today, the additional protocol did not exist in 1994, which gives the agency the right to go to any site, military or otherwise, on Iranian soil. And in terms of technology, we are in the digital age of verification. There were no satellites and open-source material and digital seals and environmental sampling. All of this is available to us today. This is not your father's IAEA, and this is not your father's verification system. We enjoy, as the Snowden revelations would seem to imply, robust national technical means that we can apply in addition to IAEA inspection. Mr. Keating. And what do you think in terms of international sanctions on North Korea? What has been their effect? Mr. Walsh. Well, the bottom line there. It is not about Iran. Is it about China and Russia, right? We are blessed as a country in that we are surrounded by two big oceans and two big friendly neighbors. The second luckiest country in international relations, North Korea, because they are right smack next to the biggest growing economy on the planet. And as long as that is true, everything else sort of pales in comparison to that. I must add, though, that the Russians who also share a border, have been a heavy contributor in this regard. Mr. Keating. I yield back, Mr. Chairman. Mr. Poe. I thank the gentleman. The Chair recognizes the gentleman from Arizona Mr. Salmon. Mr. Salmon. Thank you, Mr. Chairman. Some say that North Korea may be less likely to selling nuclear weapons or weapon qualities of fissile material than nuclear technology or less sensitive equipment to other countries in part because it needs its limited fissile material for its own deterrent. Some believe that is possible. I am not sure that that is something I believe, but I want to throw that out there. However, that the North might find a nuclear weapons or fissile material transfer more feasible if its stockpile is large enough or it faces an extreme economic crisis with a potentially huge revenue from such a sale could help the country survive. So my question is, what is the current estimate of North Korea's stockpile and how satisfied are they with what they have? Anybody have any ideas on that? Ms. Rosett. Ms. Rosett. China gave that estimate that by next year they could have 40 nuclear warheads. They had enough for that. We also know from sources, such as David Albright's think tank here in Washington, ISIS, not the terrorist group, that the size that can be seen of the uranium enrichment plant at the Yongbyon Nuclear Complex has at least doubled since they unveiled it in 2010. Remember that they denied even having that for years. Finally, then, displayed it to an American nuclear physicist. Now it has been expanding. U.S. officials suspect there are additional hidden facilities. So it is quite substantial. And if I may also just address the different plutonium and uranium tracks. The reason that North Korea began with plutonium is the Soviets built them a reactor which they then disregarded the NPT on, and they had spent fuel which the Agreed Framework let them keep. Meanwhile, in the 1990s, they were also hosting A.Q. Khan of Pakistan's A.Q. Khan network, of which Iran was a member as well. So they actually pursued both tracks from the beginning. And this is just what you have seen Iran doing. You can argue that the Arak heavy-water reactor is now going to be filled up with cement, but you have seen the two countries, actually as quickly as they could each in their own way, pursuing these. And from China's estimates, from estimates we have had in past years, from the signs of activity, you have to consider that North Korea probably has a substantial quantity and you need to ask the following question: What for? How many nuclear warheads could North Korea use before it was hit? So anything extra you are seeing is for what? Bragging rights? For sale? One more thing, danger of bragging rights. This isn't about protecting your country. This is about sustaining your regime for both Iran and North Korea. That is what these weapons are for. And that is why they are going to go after them. It is not--Iran, if this is all about a commercial and nuclear program for Iran, this has been the most elaborate windup in human history to a civilian power project. Okay. And no, what they want are the weapons. North Korea has been going after them. I would look at China's estimates with some suspicion. It is China. But when China is saying to American nuclear scientists they can have 40 warheads by next year, you should be concerned. Mr. Salmon. Well, I don't even think the administration is advocating that this is for peaceful nuclear purposes. I mean, this is a country that is probably more awash in oil and gas than any other. I mean, I think anybody that is naive enough to believe that they were actually creating this nuclear program for peaceful purposes deserves the award of the month or the award of the year. Ms. Rosett. If I may, in the JCPoA Iran reaffirms that it never will--it said it never will seek a nuclear weapon. In other words, it lies in the JCPoA. So if you are concerned about cheating, it should concern you from the beginning that it includes clear lies by the Iranian regime from the get-go. That is--also just one other thing, on the procurement networks, North Korea has road mobile KN-08 intercontinental ballistic missiles. That is what our military has been warning about. They think that these things are actually usable. Where did North Korea get the vehicles? They were sold by China. The Hubei Sanjiang space vehicle company, and when they were caught, because North Korea paraded them in 2012, China said, ``Oops, we thought they were for use in logging. We sent them thinking they were being used as lumber trucks.'' I submit to you, beware of the similar things going on with Iran, and on the procurement channel, it operates under complete confidentiality. If you liked Oil-for-Food, you will love the U.N. procurement, the P5+1 procurement channel for Iran's nuclear program. I am not even sure Congress will be able to see what is being approved through that. Thank you. Mr. Salmon. Thank you. I see I have run out of time. Mr. Poe. I recognize the gentleman from California. Mr. Sherman. I just want to note a few things for the record. This new deal with Iran is more intrusive than prior deals. Those prior deals have prevented Holland from having nuclear weapon. Costa Rica doesn't have the bomb. But as far as stopping Iraq and Syria. That was bombing that stopped them from having the bomb. Qadhafi thought he was going to be destroyed; turned out he was right. South Africa, it was Mandela, and the newly independent states gave up their weapons back to Russia because the Russian Army wouldn't have it any other way. So it is hard to say that any of the deals we have had have prevented a determined state from getting a nuclear weapon. But Costa Rica remains nuclear free. And just because the deal is more intrusive than prior deals doesn't mean it is anywhere close to being good enough. The IRGC says they are against the deal. If Iran was trying to get Congress to go along with the deal, they would put out the word that the IRGC was against the deal. So we don't know if that is genuine or for our consumption. We do know that everyone in the Israeli Government is against this. The vast majority of former officials in the Israeli Government are against this. You know, even, we have dissenting opinions in this country from the 95 percent view, but only 1 percent of the United States Senate is socialist or at least availably so. You get a range of views in any democratic country. As I think the chairman pointed out, or wrote, it is insane to think that Iran has this nuclear program as an efficient way of generating electricity. They are spending billions of dollars on it. They have incurred hundreds of billions of dollars, at least tens of billions of dollars, of sanctions to their economy, all so they could generate electricity? This is a country that flares its natural gas. So it is free natural gas. They have no other use for it. Easiest thing in the world to do is produce a natural gas electric generation facility. Iran has the means and the motive. The means here is they are going to get their hands on $100 billion. That puts them in, some say $56 billion. I think it is considerably more than that. That puts them in a position to buy a weapon from either Pakistan or North Korea. And they certainly have the motive. Look what happens to leaders that get themselves on the American people fear-and-hate-you list, the axis of evil list. Qadhafi is dead. Saddam Hussein is dead. Kim Jong-un is alive and well and doing unusual things in North Korea because he has nuclear weapons. The Supreme Leader has not failed to notice this. So the question is, how do we--it is beyond these hearings to talk about how to prevent Pakistan from selling nuclear weapons. There are two ways to prevent Iran from buying a nuclear weapon from North Korea. First, don't let it have its hands on $56 billion to $100 billion. Nobody is going to sell a nuclear weapon for pocket change. The second would be controls on North Korea. And the question is, should we be prepared to keep North Korea off the terrorist list, although they deserve to be on it, and even recognize them as a nuclear weapon state providing they agree to controls--to observation, not that would prevent them from doing whatever they are going to do, just enough to prevent them from selling it to somebody else. Mr. Berman. Mr. Berman. Well, sir, let me, if I may, could I pick up on a point that you made earlier, when you were talking about the IRGC and sort of, you know, where they come down on---- Mr. Sherman. No, because I have got 1 minute. Go ahead. Mr. Berman. Oh, okay. Mr. Sherman. Stick to my question. Mr. Berman. Well, in that case, I think it bears noting that what you are looking at in both countries is sort of a target of opportunity. With regard to Iranian hardliners, they understand---- Mr. Sherman. I am asking about North Korea. As long as they have nuclear weapons, they might sell them. Could be Iran, could be somebody else that emerges later. Should we cut a deal with North Korea that will prevent them from surreptitious sales of a nuclear weapon and should we be prepared to give to North Korea recognition as a nuclear weapon state, agreement not to put them on the terrorist list or anything else you care to identify---- Mr. Berman. I don't think so, sir, for the simple reason that even if the most rosy predictions that you heard this morning at this table are true, they have not been proven out over time. And the idea that you move directly from a JCPoA with Iran to a JCPoA with North Korea stretches---- Mr. Sherman. Okay, anybody have a contrary view? Mr. Walsh. Yes. Mr. Sherman. Ms. Rosett. Ms. Rosett. Yes. May I just say, it would not work. That regime, the nuclear program in North Korea is so entrenched, so deep, so vital, they will not--you will not talk them out of it. Mr. Sherman. I am not asking to talk them out I am talking about just letting us watch to make sure they don't sell. Ms. Rosett. They won't let you. Mr. Sherman. They won't let you do that for anything we could deliver. Anybody else disagree? Ms. Rosett. There is a price at which they would make that deal. There is always a price. But the price would be such that they would emerge from it with yet more nuclear weapons. You would buy far worse trouble. They will not make a deal that will let you---- Mr. Sherman. That will prevent--okay. Mr. Niksch. We haven't tried it with North Korea. Mr. Sherman. And we haven't even offered them a non- aggression pact. Mr. Niksch. The Bush administration basically took what was then called the proliferation issue off the table in 2008. So when North Korea had to issue a disclosure statement about its nuclear programs, North Korea did not have to say a word and did not say a word about its nuclear activities even in Syria. Mr. Sherman. Let me just get in one more comment, and that is, unless it is clear that we hold China---- Mr. Niksch. So what you are talking about is not---- Mr. Sherman. Unless we hold China responsible for what North Korea does, given the fact that the existence of the North Korean regime is dependent entirely on China, or substantially on China, we are going to have to worry an awful lot about what North Korea might do in this situation or some other situation. It is China's fault that Kim Jong-un is still there. I yield back. Mr. Poe. Okay. The Chair recognizes the gentleman from Texas, Mr. Weber, for 5 minutes. Mr. Weber. Thank you. I forget which one it was that said there has been reporting on the North Korea success Richard Engel and Chris Nelson. Was that you, Dr.---- Mr. Niksch. Richard Engel of NBC News and Chris Nelson, who writes the Daily Nelson Report, that all of us Korean watchers read daily. Mr. Weber. So you mentioned a date for Richard Engel of April 3, 2013, but you didn't---- Mr. Niksch. A report on NBC News. Mr. Weber. Okay, but you didn't mention a date on Chris Nelson. You say he writes daily. Mr. Niksch. It was May 2, 2013. Mr. Weber. Okay, and you said that the--now, you also said, I think, and I don't want to put words in your mouth, that this administration--and it is probably not just this one--but has a policy of nondisclosure and denials. Mr. Niksch. This goes back into the Bush administration. Both the Bush and Obama administrations have had this policy, both with regard to Iranian--North Korean nuclear collaboration---- Mr. Weber. Got you. Mr. Niksch [continuing]. And also denials that North Korea has been assisting through Iran in supporting Hezbollah and Hamas. Mr. Weber. Okay. Were you the one that said the Chinese told us in February that productions of warheads were increasing, and they would have about 40? Or was that---- Ms. Rosett. That was me. And may I also just say, there is a reporter who won a Pulitzer Prize, wrote for the LA Times for many years, who wrote on August 4, 2003, that according to his sources inside Iran, and with ``foreign intelligence agencies,'' there was evidence--he put this quite clearly--I can give you--send of the article--that North Koreas were in Iran developing--working on warheads, nuclear warheads with the Iranians. The name of that journalist is Douglas Frantz. He was the deputy chief of staff for the Senate Foreign Relations Committee. Mr. Weber. Frantz? Ms. Rosett. Frantz, F-r-a-n-t-z. It is in my written statement. He was the deputy chief of staff to John Kerry when John Kerry was a Senator, and he now works in the State Department in the Bureau of Public Affairs. Mr. Weber. Okay, so---- Ms. Rosett. I have tried to interview him about that story and have been told he is not available. I would suggest that the Secretary speak with his own long-time trusted former reporter who wrote this as a documented fact in 2003. Mr. Weber. Okay, great. Great point. You also said, if I think, if I heard correctly, that there was a former North Korean Ambassador to the IAEA that set up the procurement channel? Ms. Rosett. Yes, Yun Ho-jin. He is on the U.S. designated list. He worked in Vienna. In fact, at one point he showed IAEA inspectors around the North Korea Yongbyon reactor. When the Al-Kibar reactor was discovered in Syria, he turned out to be a major procurement agent. He had been buying goods. In other words, North Korea was a very full service shop for that operation. They didn't just give them the designs. They helped them buy things worldwide. He had fronts in Europe, in Damascus, in China, and in Beijing. To this day, the administration is so secretive about this; they must know things about those transactions. They don't even give the addresses of his companies. Mr. Weber. What was the name of the site in Syria? Ms. Rosett. Sure. It was in Syria's Deir ez-Zor province. It was near a place called Al-Kibar and the CIA briefing on that, the Bush administration was also terribly secretive. Mr. Weber. Okay, who discovered that? Ms. Rosett. The Israelis discovered it. Mr. Weber. The Israelis discovered it. Ms. Rosett. They told the United States, and---- Mr. Weber. Should we fear they have moved to Iran now? Ms. Rosett. I hope they are there looking. The problem is, are we listening, and does the public learn? Mr. Weber. Okay. Ms. Rosett. I mean, let me just say one more thing on that Syrian reactor. It was discovered while the U.S. was concluding a nuclear agreement with North Korea, and we were being told-- -- Mr. Weber. You mean they were cheating while we were negotiating? Ms. Rosett. Exactly, very likely with Iranian knowledge of the whole scene. Okay, the administration should tell us more about what we want to know. Mr. Weber. Let me move on. I just wanted the history. Ms. Rosett. While we were being told the reactor was being shut down in North Korea, the North Koreans were actively building near completion the reactor. Mr. Weber. Got you. I appreciate that. People lie. There is a shock. So, Dr. Walsh, you mentioned solid fuel versus liquid fuel rockets and you mentioned that snapback sanctions did not exist back in--and this wasn't your--I don't know how you said it-- your father's agreement or something of that nature. Mr. Walsh. Yes. Mr. Weber. And so snapback sanctions you believe now do exist, and so, in your opinion, in 24 days, if somebody goes in there and gets these sanctions back in place--and I think Secretary Kerry said that they were within 2 months of possible breakout when they started negotiating 2 years ago. So is 24 days of the supposed having a discussion over a clandestine site--that is almost a month. So if they were close to 2 months, do you, in your opinion, do you think snapback sanctions happen fast enough to prevent a 2-month breakout? Really? Mr. Walsh. I appreciate the question because under the Joint Comprehensive Agreement, breakout times goes from a couple of months, which is today, or it was, you know---- Mr. Weber. And you don't think they are cheating while we are negotiating? Mr. Walsh [continuing]. Sir, to a year. Because we are removing 98 percent of their enriched material and cutting their centrifuges by two-thirds. That is what the agreement does. It extends breakout from a couple of months to a year. On those 24 days, people--there seems to be confusion about that. If IAEA wants to get into a site, Iran blocks them, and then we see trucks pulling up and ferreting stuff away, or they bulldoze the building, that is prima facie noncompliance with the agreement. Then the thing kicks in, but we have a year breakout period. Mr. Weber. You don't leave any room for underground tunneling of any sort where they are actually doing things underground? Mr. Walsh. Well, we have environmental sampling. We have tunnel monitors. We have---- Mr. Weber. After they break out in 2 months, it is a little late to be worried about---- Mr. Walsh. It is a year breakout, sir. It is a year breakout under the comprehensive agreement. Mr. Weber. Yeah, but they already said they were within 2 months the last time. Mr. Walsh. No, prior to the interim agreement, prior to the JPOA---- Mr. Weber. I get that. If you trust that everything they have they reveal to us and that we can---- Mr. Walsh. Well, the DNI says that. I am willing to go with the DNI. Mr. Weber. Mr. Chairman, I yield back. Mr. Poe. The Chair recognizes the gentleman from Pennsylvania, Mr. Perry. Mr. Perry. Thank you, Mr. Chairman. Ms. Rosett, did I say it correctly? Ms. Rosett. That is correct, yes. Mr. Perry. Thank you. We know that both Iran and North Korea do use technology from and through China. I am wondering how China's involvement affects the relationship between Iran and North Korea, and not only in a material way but if you can, or if anybody can, the subtleties through the U.N. in anything that happens. Ms. Rosett. The U.N. is not your friend in this. Remember, it was--let's start with the fact that at United Nations, Iran for the past 3 years has chaired the second largest voting block in the General Assembly, the Non-Aligned Movement. The U.N.--the reason I mention Oil-for-Food is that there is considerable disincentive for any one state to call out cheating, to do anything else. It is a collective problem. And that is exactly what happened with the incredible corruption through Iraq contracts overseen by the U.N. This deal sets up a similar mechanism in which things will go through the U.N., and it is very hard to get information. With respect to China, there is much debate about this. It is my view, and I have been covering these areas since the 1980s when I worked in Far East. I will just add, I made a trip to North Korea in 1991. I didn't need to go to Iran. There were Iranians on my plane in from Beijing to Pyongyang. They are very busy there. I have seen it. But China, I believe, benefits from the instability that is created by North Korea. And if you ask yourself the simple question, ``who do North Korea or Iran, for that matter, have an incentive to attack, and who do they have an incentive not to,'' I would argue that they don't chant, ``Death to Russia,'' ``Death to China.'' They chant, ``Death to America,'' ``Death to Israel.'' They are, by character of the regime, opposed to free societies. That is not frivolous. And they also don't dare attack Russia or China, who would obliterate them---- Mr. Perry. Would Iran use or could they use North Korean territory to test, to store, to--for instance, in the agreement, there is a discussion or at least a point of a multiport explosive device. Ms. Rosett. Multipoint detonation, yes. Mr. Perry. Right, for nuclear purposes. Now, I watched the Secretary of Energy today say that would not be allowed, yet in the agreement, it says that the Commission will facilitate their use of that. Is that something that would be--well, I guess they can do it in Iran based on the agreement. Ms. Rosett. They can do it if it is watched and surveyed, but it is an excellent question. There is already speculation that Iran may have received test data from North Korea's tests. In testimony to this committee last year, former--an Obama administration official Glyn Davies was asked, would the two cooperate, Iran and North Korea, on nuclear test data? He said they would have every incentive to do so. Mr. Perry. What is Russia's relationship with North Korea as it relates to Iran and this situation with their nuclear, the peaceful program? Ms. Rosett. Yeah, Russia has become much, much friendlier with North Korea. Russia built the reactor to begin with. Russia delights right now in frustrating the United States. Russia doesn't--North Korea is not going to launch a nuclear attack on Russia, okay. Russia is very happy with what is happening with North Korea right now. And may I add, there is considerable reason why Iran might use North Korea for a nuclear test site. There is no other country in the world in the 21st century that has conducted nuclear tests. It is conspicuous when you do that. North Korea has done three. They have threatened a fourth since last year. And it would be the best way you could possibly hide a test in plain sight. And it is very easy. You don't need Iranians sitting there on the bleachers. All you need is a thumb drive to---- Mr. Perry. Forgive me. Dr. Walsh, so I listened to your testimony, which seemed to countervail everybody else on the panel here. Mr. Walsh. I am the minority witness. Mr. Perry. But based on what we have heard here, you feel completely comfortable, it is absolutely zero. I think that is what your characterization was, zero evidence of collaboration between North Korea and Iran? Mr. Walsh. Well, on nuclear, that is what the Congressional Research Service says. And as I pointed out, at no point has the DNI, the U.N. Panel of Experts for Iran, the U.N. Panel of Experts for North Korea, or IAEA ever made that claim. I would encourage you all if you have doubts about it, simply call the DNI into a closed session and ask. Mr. Perry. Doctor---- Mr. Niksch. I wrote for the Congressional Research Service, and my report, which I believe you have, ``North Korea Nuclear Weapons Development and Diplomacy,'' which I wrote and updated from 2007 to 2012, contains a section on nuclear collaboration with Iran and Syria. And if you read that, it goes to the point I made that to find out about this, you are not going to hear it from State Department or even the U.S. intelligence community for the most part. Mr. Perry. Why? Mr. Niksch. There is a policy--again, going back to the Bush administration--of what I would call issue avoidance and nondisclosure about the Iranian-North Korean relationship. Mr. Perry. Thank you, Mr. Chair, I yield. Mr. Sherman. There is a policy on issue avoidance? Mr. Niksch. Issue avoidance and nondisclosure. Mr. Poe. That is a policy? Mr. Niksch. Yes. Mr. Sherman. Mr. Chairman, I think that is called the mushroom policy. Mr. Niksch. The State Department constantly issues statements that North Korea is not involved in any state support of terrorist groups and therefore should not go back on the official U.S. list of terrorism-supporting organizations. But in 2011, Secretary of Defense, then Secretary of Defense Gates, gave a speech in San Francisco---- Mr. Poe. Excuse me, Dr. Niksch. The Chair reclaims the time with just one question. But your report will be made part of this record, without objection. Mr. Niksch. His speech was a lot different than the denials from the State Department. Mr. Poe. All right, I am going to recognize Mr. Yoho from Florida for his 5 minutes. Mr. Yoho. Thank you, Mr. Chairman. And I will probably come back to you Dr. Niksch in a minute. But, first, I want to go to Dr. Walsh. You were saying there is no evidence that North Korea has helped Iran, and there is no conclusive evidence according to the DNI, but yet, Mr. Frantz's article and research says that they were over there, they were working in 2003, and that is the period of time when there is evidence of a nuclear trigger detonation maybe. And the IAEA has got a 14-page annex, pretty conclusive that there was a major explosion, possibly a nuclear trigger device that was backed up by 1,000 pages of documents from Iran. And for you to say that there is no evidence, I think there is plenty of evidence out there. And then you said we have anywhere, any time, anyplace, and I have heard John Kerry say that same thing. And yet we know that is not true because it is only time anywhere is if Iran says it is okay. And the secret deal that we found out from Tom Cotton and Mr. Pompeo, talked that--they brought this to light, and we know that through the IAEA, there is an agreement. And it is private between them and Iran, and it is with their permission. And you were talking about, we have access to environmental sampling. That is not true. The environmental sampling is done by Iran, and, you know, as Senator Menendez said today, that would be like having Lance Armstrong pull his own blood sample. I mean, let's get real here. This is a bad deal. And for you to say that this is a good deal for America and the rest of the world, I find that disingenuous because this administration has backed us into a corner going to the U.N. and saying that if we pull out, it is all on us. And I think that is bad for us, it is bad for the world. And with the North Korea deal that was done, Japan and South Korea wanted the deal because it affected them very strongly, and we went along with that deal. On this deal, none of our Middle Eastern partners were there. Israel wasn't there. None of them want it. And we went ahead with this. It just doesn't make any sense. What are your thoughts on--just on North Korea working with Iran? Mr. Walsh. Well, on several different things. On the Frantz report, as I say in my written statement, historically--and I am the person here who is, you know, that is what I do in my scholarship is look at the nuclear histories in states that start down the path, stop and reverse course--media reports have proven incredibly unreliable. I will take the DNI every day of the week. Any time or anywhere inspection is in the additional protocol, it has been in the additional protocol; it has been exercised. It is not a secret deal. Yes, it is confidential. That is normal regular operating procedure for the agency. This is not the first time they have dealt with this situation. When South Africa denuclearized, they went in. It was confidential. When the U.S. shows nuclear stuff to the IAEA we don't give the Russian Duma access to that report. For the agency to do its work, it has to--which is with sovereign states--it has to maintain confidentiality to be the effective. Bad for the---- Mr. Yoho. I am going to interrupt you though. We pay 25 percent of the budget for the IAEA, and if we are paying that much, I want to know the information because we are supposed to vote on a deal. And Secretary Kerry said we are going to get briefed on it. That doesn't cut it for me. I want the information, so we can make our own decision. I am going to go to Dr. Niksch now. Do you have any evidence that the missiles you were talking about from North Korea or any other military specifically for nuclear weapons, being conducted between Iran and North Korea, do you have any information on that for sure, that we know there is transfer there or has been in the past? Mr. Niksch. Certainly with regard to the Nodong intermediate-range missile that I have mentioned. The Shabab-3 missiles that Iran produced contain significant components of the North Korean Nodong. And North Korea and Iran from, again, numerous reports, citing European, German, Israeli defense and intelligence officials, that collaboration in trying to improve the Nodong and Shahab-3 missiles has continued. Mr. Yoho. Okay. Mr. Niksch. Every North Korean missile test since 2006 has seen, reportedly, Iranian delegations in North Korea to observe those tests and undoubtedly get the data from those tests. Mr. Yoho. All right, thank you. And I heard John Kerry say this multiple times, that you can't bomb knowledge out of the people. And you said that. But you sure dang sure can bomb the will out of them, and I am not advocating more, but if we would have negotiated from a power--or position of strength, we would be in a better situation, and I think we would all be safer 5 years from now. And this deal will go through, possibly, and when it does, you know, it is going to be hanging on somebody's reputation. You know, they will either be the next Chamberlain in history, or if they are lucky, they will be the next Reagan. See you. Mr. Poe. I want to thank all of our witnesses. Excellent testimony. I wish we could go on for a longer time, and I appreciate your willingness to continue talking about this. And, Ms. Rosett, I want to especially thank you for your work that you did in the U.N. Oil-for-Food program, the scandal, and revealing that. This concludes the hearing of the three subcommittees, and the three subcommittees are adjourned. Thank you. [Whereupon, at 4:35 p.m., the subcommittees were adjourned.] A P P E N D I X ---------- Material Submitted for the Record [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]