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Leaked Memo Shows Trump Could Let U.S. Firms Buy 'Conflict Minerals'
By Lee Fang
The leaked draft of a presidential memorandum Donald Trump is expected to sign within days suspends a 2010 rule that discouraged American companies from funding conflict and human rights abuses in the Democratic Republic of Congo (DRC) through their purchase of "conflict minerals."
The memo, distributed inside the administration on Friday afternoon and obtained by The Intercept, directs the Securities and Exchange Commission to temporarily waive the requirements of the Conflict Mineral Rule, a provision of the Dodd Frank Act, for two years—which the rule explicitly allows the president to do for national security purposes. The memorandum also directs the State Department and Treasury Department to find an alternative plan to "address such problems in the DRC and adjoining countries."
The idea behind the rule, which had bipartisan support, was to drain militias of revenue by forcing firms to conduct reviews of their supply chain to determine if contractors used minerals sourced from the militias.
The impending decision comes as Trump held a meeting Wednesday with Brian Krzanich, the chief executive of Intel, one of the leading firms impacted by conflict mineral regulations. At the White House today, Krzanich appeared with the president to announce a new manufacturing plant in Arizona.
Human rights advocates—who had celebrated the conflicts rule as a major step forward—were appalled.
"Any executive action suspending the U.S. conflict minerals rule would be a gift to predatory armed groups seeking to profit from Congo's minerals as well as a gift to companies wanting to do business with the criminal and the corrupt," said Carly Oboth, the policy adviser at Global Witness, in a statement responding to a Reuters article that first reported the move.
"It is an abuse of power that the Trump administration is claiming that the law should be suspended through a national security exemption intended for emergency purposes. Suspending this provision could actually undermine U.S. national security."
Advanced computer chips, including technology used in cell phones and semiconductors, contain minerals often sourced from war-torn countries in central Africa. Firms such as Intel, Apple, HP and IBM use advanced chips that contain tantalum, gold, tin and tungsten—elements that can be mined at low prices in the the DRC, where mines are often controlled by militias fueling a decades long civil war.
American tech companies, such as Intel, lobbied directly on the rule when it was proposed. But since passage, tech firms have largely used third party business groups to stymie the rule. Trade groups representing major U.S. tech firms and other manufacturers, including the U.S. Chamber of Commerce and the Business Roundtable, attempted to block the rule through a federal lawsuit. In 2014, a federal court struck down a part of the rule that forced firms to reveal DRC conflict minerals on their corporate websites.
Intel is also one of the firms that has touted its effort to comply with the law, publishing a report that notes the company has conducted 40 on-site reviews of smelters in the eastern DRC.
Reuters also reported that acting SEC chief Michael Piwowar has taken steps to also weaken enforcement, asking staff to "reconsider how companies should comply."
Reposted with permission from our media associate The Intercept.
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"Faced with global warming, rising sea levels, and the climate-related extremes they intensify, the question is no longer whether some communities will retreat—moving people and assets out of harm's way—but why, where, when, and how they will retreat," the study begins.
The researchers suggest that it is time to rethink retreat, which is often seen as a last resort and a sign of weakness. Instead, it should be seen as the smart option and an opportunity to build new communities.
"We propose a reconceptualization of retreat as a suite of adaptation options that are both strategic and managed," the paper states. "Strategy integrates retreat into long-term development goals and identifies why retreat should occur and, in doing so, influences where and when."
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"There's a definite rhetoric of, 'We're going to build it back better. We're going to win. We're going to beat this. Something technological is going to come and it's going to save us,'" said A.R. Siders, an assistant professor with the disaster research center at the University of Delaware and lead author of the paper, to the New York Times. "It's like, let's step back and think for a minute. You're in a fight with the ocean. You're fighting to hold the ocean in place. Maybe that's not the battle we want to pick."
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Dr. Siders pointed out that it has happened before. She noted that in the 1970s, the small town of Soldiers Grove, Wisconsin moved itself out of the flood plain after one too many floods. The community found and reoriented the business district to take advantage of highway traffic and powered it entirely with solar energy, as the New York Times reported.
That's an important lesson now that rising sea levels pose a catastrophic risk around the world. Nearly 75 percent of the world's cities are along shorelines. In the U.S. alone coastline communities make up nearly 40 percent of the population— more than 123 million people, which is why Siders and her research team are so forthright about the urgency and the complexities of their findings, according to Harvard Magazine.
Some of those complexities include, coordinating moves across city, state or even international lines; cultural and social considerations like the importance of burial grounds or ancestral lands; reparations for losses or damage to historic practices; long-term social and psychological consequences; financial incentives that often contradict environmental imperatives; and the critical importance of managing retreat in a way that protects vulnerable and poor populations and that doesn't exacerbate past injustices, as Harvard Magazine reported.
If communities could practice strategic retreats, the study says, doing so would not only reduce the need for people to choose among bad options, but also improve their circumstances.
"It's a lot to think about," said Siders to Harvard Magazine. "And there are going to be hard choices. It will hurt—I mean, we have to get from here to some new future state, and that transition is going to be hard.…But the longer we put off making these decisions, the worse it will get, and the harder the decisions will become."
To help the transition, the paper recommends improved access to climate-hazard maps so communities can make informed choices about risk. And, the maps need to be improved and updated regularly, the paper said as the New York Times reported.
"It's not that everywhere should retreat," said Dr. Siders to the New York Times. "It's that retreat should be an option. It should be a real viable option on the table that some places will need to use."
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