ASEAN REGIONAL FORUM: EAP A/S KELLY BILATERAL WITH INDONESIAN SPECIAL ENVOY

C O N F I D E N T I A L HANOI 001882 SIPDIS S/S FOR THE SECRETARIAT STATE FOR EAP/KELLY, BOYCE STATE ALSO FOR EAP/RSP, INR NSC FOR TORKEL PATTERSON E.O. 12958: DECL: 7/27/2011 TAGS: PREL ID ASEAN SUBJECT: ASEAN REGIONAL FORUM: EAP A/S KELLY BILATERAL WITH INDONESIAN SPECIAL ENVOY CONFIDENTIAL PAGE 02 HANOI 01882 070254Z ¶1. CLASSIFIED BY DENNIS HARTER, CHARGE D'AFFAIRES, FOR REASONS 1.5 (B) AND (D). ¶2. CONFIDENTIAL ENTIRE TEXT. ¶3. ON JULY 26, ON THE MARGINS OF THE ASEAN REGIONAL FORUM, EAP ASSISTANT SECRETARY JAMES KELLY MET WITH DR. N. HASSAN WIRAJUDA, SPECIAL ENVOY OF THE INDONESIAN FOREIGN MINISTER. WIRAJUDA WAS FUNCTIONING AS THE HEAD OF THE INDONESIAN DELEGATION IN VIETNAM FOLLOWING THE DECISION BY THE INDONESIAN FOREIGN MINISTER NOT TO TRAVEL TO HANOI DUE TO THE SITUATION IN JAKARTA. ¶4. WIRAJUDA BEGAN BY EXPRESSING HIS HOPE FOR A PEACEFUL SOLUTION TO THE CURRENT POLITICAL CRISIS IN JAKARTA, NOTING THAT INSTABILITY IN JAKARTA HAS THE POTENTIAL TO LEAD TO CLASHES IN THE ISLANDS. HE SAID HE HOPED THAT THE NEW GOVERNMENT WOULD RESOLVE THE CRISIS PEACEFULLY. WIRAJUDA ALSO INDICATED HIS INTENTION TO TRAVEL TO WASHINGTON DC IN THE NEAR FUTURE. ¶5. KELLY BROUGHT UP THE SUBJECT OF ACEH, DECLARING USG INTEREST IN A PEACEFUL RESOLUTION AND INQUIRING ABOUT JAKARTA'S PLANS FOR AUTONOMY FOR THE PROVINCE. KELLY NOTED THAT, WHILE THE INSURGENCY MAY NECESSITATE SOME MILITARY RESPONSE, MAINTAINING INDONESIAN UNITY COULD BEST BE DONE BY CALMING DOWN THE SITUATION AND NOT "FEEDING REVOLUTIONARIES." KELLY REMINDED WIRAJUDA THAT INDONESIA-U.S. RELATIONS COULD NOT STAND "ANOTHER CONFIDENTIAL PAGE 03 HANOI 01882 070254Z TIMOR," AND ASSERTED USG READINESS TO HELP. ¶6. WIRAJUDA RESPONDED THAT HE MUST SEE HOW THE NEW GOVERNMENT MOVED FORWARD ON THIS ISSUE, BUT THAT THEN- VICE PRESIDENT MEGAWATI SUKARNOPUTRI HAD APPEARED "IMPATIENT" WITH THE SLOW PEACE PROCESS IN ACEH. WIRAJUDA SAID JAKARTA AGREED ON "SPECIAL AUTONOMY" FOR ACEH IN CONCEPT BUT THE IMPLEMENTATION HAD NOT YET BEEN RESOLVED. BOTH SIDES HAD TAKEN A "WAIT AND SEE" STANCE FOLLOWING THEIR LAST MEETING, IN JULY, BUT WIRAJUDA ANTICIPATED FORWARD MOVEMENT IN THEIR NEXT MEETING IN SEPTEMBER. ¶7. KELLY RESPONDED THAT AGREEMENT WOULD BE WONDERFUL NEWS, NOTING THE NEED FOR INDONESIA TO RETURN TO STRENGTH SO IT COULD RESUME PLAYING ITS LEADERSHIP ROLE IN ASEAN. WIRAJUDA REMARKED THAT THE CURRENT POLITICAL CRISIS MEANT THAT INDONESIA COULD CONTRIBUTE LESS TO ASEAN THAN IN THE PAST. KELLY COMMENTED ON THE ECONOMIC SIDE OF THE POLITICAL TURMOIL, NOTING THAT PEACEFUL RESOLUTION OF THE DIFFICULTIES FACING JAKARTA WOULD HAVE AN IMPORTANT PSYCHOLOGICAL IMPACT ON U.S. BUSINESSES AND THUS ON THE OVERALL INDONESIAN ECONOMY. ¶8. IN PARTING, A/S KELLY HANDED WIRAJUDA A NON-PAPER ON M. DEBORAH WYNES, THE USG CANDIDATE FOR THE UN'S JOINT INSPECTION UNIT. HARTER CONFIDENTIAL PAGE 04 HANOI 01882 070254Z CONFIDENTIAL