Transcripts For CSPAN3 House Homeland Security Subcmte. On N

CSPAN3 House Homeland Security Subcmte. On North Korea - Part 1 October 13, 2017

Good afternoon, everybody. The committee on Homeland Security subcommittee on oversight and Management Efficiency will come to order. The purpose of this hearing is to examine the risks posed by north korea to Homeland Security and recommendations for the department of Homeland Security to be better prepared to mitigate these risks. The chair recognizes himself for an Opening Statement. It is no secret that kim jongun and his maniacal resegime have ramped up tensions. With missile tests on a dozen occasions between february and september of 2017 including tests of Intercontinental Ballistic Missiles, Many Americans and allies around the globe remain on edge. However, americans may rightly wonder about north koreas ability to threaten the home land directly. Intelligence from the hermit kingdom is often times inconsistent and limited. Despite these intelligence challenges, information that has been gathered is reason enough for alarm. For example, according to media reports, two north korean shipments to a Syrian Government Agency Responsible for the countrys Chemical Weapons Program for intwere intercepted past six months. This is not the first time a north korean ship has been seized due to carrying suspected Missile System components. In 2013 a north korean ship was intercepted in the panama canal with false manifests and hidden under legitimate cargo parts for fighter jets and rockets. In addition, according to the council on foreign relations, recent estimates suggest that north Koreas Nuclear weapons stockpile contains 1620 weapons and has the potential to go rapidly. Furthermore, the center of nonproliferation studies estimated that north korea has between 2500 and 5000 metric tons of chemical weapons. And as we are all aware with the assassination of kim jonguns half brother with a deadly nerve agent, those weapons have already been put to use. Whether or not north korea intends to act on any of its threats to the u. S. Directly, we must also keep in mind that pyongyang is willing and able to supply weaponry, expertise or k technology to other hostile nation states intent on destroys the United States. Former department of Homeland Security secretary john kelly stated in april that the most imminent threat from north korea is a cyber threat. North koreas increasingly sophisticated Cyber Program has the ability to pose a major threat to the United States interests. For example, federal prosecutors are investigating north korea for a possible role in an International Banking system or the swift hack that resulted in the theft of 81 million from the central bank of bangladesh in 2016. In late 2014 the Computer Systems of Sony Pictures entertainment were infiltrated which is said to have been in retaliation over expressed outrage over the sony backed film centered on kim jongun. With the growing threats are we prepared to safeguard our infrastructure from a north korea led sicyber attack. Other possible threats such as an emp, while some believe as a low probability has the potential to be a catastrophic event that could result in paralyzing the United States electric grid and other key infrastructures. Disruption to our power grids would be disastrous. According to a 2016 gao report, a major emp event could result in cascading impacts on fuel distribution, transportation system, food and Water Supplies and communications and equipment for emergency services. As north korea continues its belligerent actions, the United States must be prepared to protect the homemade land from an array of threats. The department of home hand security has a vital role in protecting our cyberspace and Critical Infrastructure and preventing chemical, biological, raidological and terrorism. Welcome all our guests here today. Thank you, sir, for holding this hearing. I thank the witnesses for being here today. Also want to take a moment to send my thoughts and prayers to those effected by the california wildfires. In my district many folks near and dear to me have been evacuated. My staffers and friends have had to be evacuated from their homes. And a couple of camps receiving those evacuated are actually in my district. Our thoughts and prayers are with them as well as others in california. Also want to thank the First Responders for again doing the work theyre doing right now in and around my district. As the chairman, while i recognize the seriousness of north korea and threats it poses to us, i just want to take a moment to acknowledge that we also have to look at those affected by hurricanes harvey,a give them attention as well. Coming back to north korea, americas current diplomatic policy must be cautious in engaging this individual, this leadership that appears to be very unpredictable. Reports do confirm that north koreas accelerating the pace of its missile testing, devoting more resources to develop its Cyber Operations and threatening to create a multifunctional nuclear bomb. Recent actions such as the north korean connected hacking groups that successfully stole 81 million from banks in bangladesh and Southeast Asia show that north korea is getting more daring and much more functional with their Cyber Operations. From the witnesses today, i look forward to hearing from you and how this department of Homeland Security can better protect the vulnerable, Critical Infrastructure of cyber, Cyber Threats and how we can mitigate such threats here in our country. Further, while the probability of an electoral magnetic pulse appears to be at this time unlikely, north korea has made it clear that it is testing its ability to make a Hydrogen Bomb capable of such destruction. So my question to you is, is an emp something that is a threat at this time or very soon . Speaking on his frustration of president trump, he said trump insulted me and my question. My question is, is there anything new or is this whats been going ob fn for the last 2 years . Im interested to hearing from the witnesses in this panel what happens if the unthinkable happens what happened happen the first 10, 20, 30 minutes of an allout war . Hypothetical scenario, but i think its one we need to be apprised of. I thank you and i yield back the balance of my time. The chair would like to join you in echoing my concerns for those affected in and around your district and of course in california the wildfires and the First Responders as well as the victims of the recent hurricanes here in the continental United States and our citizens in puerto rico and the caribbean. With that, other members of the Sub Committee are reminded that Opening Statements may be submitted for the record. The witnesses entire written statements will appear in the record. The chair will introduce the witness first and then recognize each of you for your testimony. Mr. Frank salufo is an associate Vice President at the George Washington university and director of its center for cyber and Homeland Security. He previously served in numerous Homeland Security positions in the white house and Homeland Security advisory council. Welcome, sir. Mr. Anthony ruggerio is a senior fellow with the foundation of defensive democracies. He served in the Treasury Department and financial crimes and spent 13 years in various positions in the state department. Welcome, sir. Mr. Patrick turrel is a Senior Research fellow at the center for study of wmd at the National Defense university. He served in the u. S. Army chemical corps for 27 years and was the wmd military advisor and Deputy Director for chemical, biological, radiological and Nuclear Defense policy for countering wmd. Welcome. Mr. Jeff greene is a senior director of Global Government Affairs and policy at semantech. He served in staff positions on the senate Homeland Security and Governmental Affairs and as an attorney with a washington, d. C. Law firm. Welcome, sir. And dr. Peter vincent pry is a nationally recognized expert on electromagnetic pulse. Dr. Pry was most recently chief of staff of the Emp Commission and various commissions related to National Security as well as the House Armed Services committee and was an intelligence offer with the Central Intelligence agency. Welcome, sir. Thank you all for being here today. The chair recognizes now mr. Salufo for an Opening Statement. Thank you for the opportunity to testify before you today on such a critical set of issues. North korea poses an increasingly complex and multidimensional threat to the u. S. Homeland. The many facets include the Nuclear Threat, the missile threat and the proliferation threat. My remarks will focus on the cyber threat. It should be flagged up front that it is not one dimensional. It may manifest itself in at least three ways, as a stand alone cyber threat, as a component in conjunction with a Broader Campaign or as an indicator of an attack or campaign that is yet to come. The cyber equivalent of intelligence preparation of the battlefield or the mapping of our Critical Infrastructures. At a conference we cohosted with the Central Intelligence agency last week a senior cia official described north korea as between bookends, the fear of chinese abandonment on the one hand and the fear of u. S. Strike on the other. The official stated further that north korea exists to oppose the United States and that kim jongun defines winning as staying in the game. It is against this background, the overriding survival of the kim regime and the military first policy that the north korean cyber threat must be considered and evaluated. In terms to ha s of the bottom front, the cyber threat is already here. It is persistent, ongoing and comes in various forms. The battlefield includes the traditional air, land, sea space, but increasingly cyberspace which is its own domain and transcends all the other domains. Moving higher up the chain of conflict going beyond traditional Computer Network exploit and cyber crime to bigger and more destructive attacks. If so, what are the primary targets and how can we thwart the attacks . At the high end of the fret spectrum are nation states whose military and Intelligence Services are integrating Computer Network attack and exploit into their war fighting strategy and doctrine. North korea is one of a small handful of countries that top the list from a u. S. National security perspective. While many of the details of their actual cyber warfare capabilities are shrouded in secrecy we do know north korea has invested heavily in building out their cyber capabilities. A 2015 report estimates that the north Korean Cyber Army employs an elite squad of 6,000 hackers. This number has likely increased. And its worth noting that many of these hackers operate outside of pyongyang in northeast china and Southeast Asia. And while not yet up to par with the likes of russia or china, what north korea may lack in capability, it unfortunately more than makes up for with intent. North korea has engaged in both extensive espionage as well as destructive activities. They operate without compunct n compunction. Recent reports of pilfering from south Korean Military and the targeting of u. S. Energy companies and other Industrial Control Systems here is troubling and reflective of their persistent espionage. The attack on sony is just one example of a destructive activity. There are sadly many many more. What differentiates north korea from other cyber actors is they have turned to cyber crime to raise revenue, including funding their Nuclear Aspirations especially given recent sanctions leveed upon them. They have been pegged as the likely culprit behind a string of cyber Bank Robberies as far as poland. But also the swift tack on the central bank of bangladesh, hacks against bitcoin and the rans ransomware attack. If past is prologue, we ought to be prepared for a further spike in north korean cyber crime. While the cyber twist may be relatively new, north korea has long termed to criminal activity such as counterfeiting to fill its coffers. The country often uses diplomatic cover to pursue illegal activities. In essence theyre using National Collection means for criminal gain or more aptly to be compared to as a state sponsor of cyber crime. One word on what we do about this. Bottom line, we need to train more and better. We need to exercise. I think contingency plans are really important, make the big mistakes on the practice field not when its game day. And dhs has done some good work in terms of sharing information intelligence. This is so vital because thats going to be the warning, thats going to be the indicator that something bigger may be afoot. In terms of the broader threat picture other scenarios will require a much broader response and it will need to include partners like d. O. D. And dhs and the utilities would likely be overwhelmed in such a scenario. Thank you. The chair now recognizes mr. Ruggero for an Opening Statement. Chairman perry, Ranking Member correa, thank you for the opportunity to address you too. Missile programs are expanding after a decade of failed american policies and now pose a direct threat to the u. S. Homeland. Pyongyang has threatened our close allies south korea and japan as well as the u. S. Troops stationed for decades on allied territory. The progress of north koreas program should not be surprising since pyongyang conducted its First Nuclear test 11 years ago. And its long range Missile Program has lasted for more than 20 years. Pyongyang twice tested a Intercontinental Ballistic Missile in july that could target los angeles, denver and chicago and possibly boston and new york. The kim regime tested a massive Thermo Nuclear weapon designed to obliterate cities and could be delivered by pyongyangs long rage missi range missiles. Pyongyang has a proclivity for selling weapons to anyone who will pay for them. It has sold items related to independence, chemical weapons and Ballistic Missiles. Among north koreas most troubling relationships are those with iran and syria. The threat we face is acute and growing. After years of strategic patience, the time has come for a policy of maximum pressure that actually stands a chance of restraining the north korean threat without resorting to war. The Trump Administration is pursuing iran style sanctions to force north korea to denuclearize. And absent that result protect from pyongyangs activities. Both critics and supporters of the 2015 nuclear deal agree that sanctions were the main driver that brought iran to the negotiating table. Modeled on the successful Iran Sanctions Program the Trump Administrations efforts clarify the choice we are asking other countries to make. Do business with north korea or do business with the United States. It cannot be both. This approach includes diplomatic efforts to convince over count other countries to cut ties with north korea. The wall street journal reported that a yearlong effort by the state department resulted in over 20 counteries cutting of relationships with north korea. Flaws in the sanctions regime include failure to prioritize the north Korean Sanctions Program and the need to focus on pyongyangs overseas business network. North koreas shipping network plays a crucial role in supporting this

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