REQUEST FOR FOREIGN SOVEREIGN IMMUNITY ACT

C O N F I D E N T I A L BANDAR SERI BEGAWAN 000422 FOR L/EAP AND EAP/MTS E.O. 12958: DECL: 08/18/2016 TAGS: PREL BX SUBJECT: REQUEST FOR FOREIGN SOVEREIGN IMMUNITY ACT COVERAGE IN LAWSUIT AGAINST BRUNEI'S SULTAN AND CROWN PRINCE Classified By: Ambassador Emil Skodon, reasons 1.4 (b, d) ¶1. (C) SUMMARY: THIS IS AN ACTION CABLE. SULTAN AND CROWN PRINCE OF BRUNEI ARE BEING SUED IN A NEW YORK COURT FOR ALLEGED BREACH OF CONTRACT, BY AN INDIVIDUAL BELIEVED TO BE A SLOVENIAN NATIONAL AND WHO CLAIMS HE HELPED COVER UP THE CROWN PRINCE'S AFFAIR WITH A SLOVENIAN WOMAN. GOVERNMENT OF BRUNEI (GOB) STRONGLY DENIES CHARGES AND BELIEVES PLAINTIFF IS ONLY TRYING TO EXTRACT AN OUT-OF-COURT MONETARY SETTLEMENT. GOB NOTES THAT FOREIGN SOVEREIGN IMMUNITIES ACT (FSIA) WAS APPLIED IN PREVIOUS U.S. LAWSUITS AGAINST SULTAN AND MEMBERS OF HIS FAMILY FOLLOWING ISSUANCE OF A "SUGGESTION OF IMMUNITY" TO THE COURT BY THE DEPARTMENT, AND REQUESTS DEPARTMENT'S ADVICE ON HOW BEST TO SEEK APPLICATION OF FSIA TO THIS CASE. GOB WISHES TO AVOID NEGATIVE PUBLICITY UNTIL THE MATTER IS SETTLED, AND SO HAS ADVISED THE CROWN PRINCE TO CANCEL PLANS TO HEAD THE GOB DELEGATION TO THIS YEAR'S UNGA, AND ASKS THAT ITS EXCHANGE WITH USG ON THIS ISSUE BE KEPT CONFIDENTIAL FOR NOW. ACTION REQUEST IN FINAL PARA. END SUMMARY. ¶2. (C) BRUNEI FOREIGN MINISTER II, PEHIN LIM JOCK SENG, CALLED ME IN TO HIS OFFICE FOR A "CONFIDENTIAL" DISCUSSION OF A LAWSUIT FILED AGAINST SULTAN HAJI HASSANAL BOLKIAH AND HIS SON, CROWN PRINCE AL-MUHTADEE BILLAH, IN NEW YORK DISTRICT COURT ON JUNE 26, 2006. LIM SAID THE PLAINTIFFS ARE A SLOVENIAN NATIONAL NAMED GOCE GLIGOROV AND HIS COMPANY, BEN CONSULTING. ¶3. (C) READING FROM A "CONFIDENTIAL NON-PAPER," LIM EXPLAINED THAT GLIGOROV IS SUING FOR USDOLS 500 MILLION ON THE GROUNDS THAT HE WAS NOT PAID FOR A MATTER "THAT AROSE OUT OF AN ALLEGED RELATIONSHIP BETWEEN THE CROWN PRINCE AND A LADY." THE SUIT REPORTEDLY ALSO ALLEGED THAT THE SULTAN AND CROWN PRINCE ARE ENCOURAGING HUQN TRAFFICKING AND PROSTITUTION. (COMMENT: A LATER GOOGLE SEARCH TURNED UP A JUNE 18 ARTICLE IN THE OBSERVER NEWSPAPER STATING THAT GLIGOROV CLAIMS TO HAVE FACILITATED A PAYMENT OF "HUSH MONEY" TO A SLOVENIAN WOMAN WHO CLAIMED TO HAVE HAD SEXUAL RELATIONS WITH THE CROWN PRINCE, BUT THAT HE WAS NEVER COMPENSATED FOR THIS SERVICE AS PROMISED BY BRUNEI'S ROYAL FAMILY. ACCORDING TO THE ARTICLE, HE IS SUING FOR COMPENSATION AND EXEMPLARY DAMAGES FOR ALLEGED BREACH OF CONTRACT AND FRAUD. END COMMENT.) ¶4. (C) LIM WENT ON TO SAY THE ALLEGATIONS IN THE LAWSUIT WERE BASELESS. HE SUSPECTED THAT GLIGOROV WAS SIMPLY TRYING TO THREATEN THE SULTAN AND HIS FAMILY WITH EXTENSIVE EMBARRASSING PUBLICITY IN AN ATTEMPT TO EXTRACT AN OUT-OF-COURT SETTLEMENT. ¶5. (C) LIM SAID THE GOB BELIEVED THAT BOTH THE SULTAN AND THE CROWN PRINCE ENJOYED SOVEREIGN IMMUNITY IN U.S. COURTS UNDER THE FSIA. HE NOTED THAT A 1998 LAWSUIT FILED AGAINST THE SULTAN IN A CALIFORNIA COURT WAS DISMISSED WHEN THE STATE DEPARTMENT ISSUED A "SUGGESTION OF IMMUNITY" TO THE COURT. AGAIN READING FROM THE NON-PAPER, HE SAID IT WAS THE GOB'S UNDERSTANDING THAT SOVEREIGN IMMUNITY COULD EXTEND TO A HEAD OF STATE'S IMMEDIATE FAMILY MEMBERS, AND CITED PREVIOUS CASES INVOLVING IMELDA MARCOS AND PRINCE CHARLES. (COMMENT: THE 1998 LAWSUIT LIM REFERRED TO WAS PROBABLY SHANNON LA RHEA MARKETIC V.S. KALIBER TALENT CONSULTANTS ET AL. WE BELIEVE THAT THE FEDERAL JUDGE IN THAT SUIT RULED THAT THE FSIA APPLIED TO BOTH THE SULTAN AND HIS BROTHER PRINCE JEFRI, WHO AT THAT TIME WAS GOB FINANCE MINISTER, AND REMOVED THEM AS DEFENDANTS IN THE CASE. END COMMENT.) ¶6. (C) BEFORE PROCEEDING FURTHER, LIM WANTED ADVICE FROM THE USG AS TO THE PROPER METHOD FOR SEEKING A "SUGGESTION OF IMMUNITY" FOR THE CURRENT SUIT FILED BY MR. GLIGOROV. HE SAID THE SULTAN AND CROWN PRINCE DID NOT WISH TO GIVE ANY MORE PUBLICITY THAN NECESSARY TO THE CASE AND DID NOT WANT TO LOOK LIKE THEY WERE HIDING BEHIND THE FSIA, BUT WOULD LIKE TO PUT THESE BASELESS CHARGES BEHIND THEM. WHAT ROUTE DID THE DEPARTMENT SUGGEST IT FOLLOW? SHOULD THERE BE A GOVERNMENT-TO-GOVERNMENT REQUEST FOR A "SUGGESTION OF IMMUNITY," A REQUEST FROM BRUNEI'S U.S. LAWYERS TO THE PRESIDING JUDGE ASKING HIM TO SEEK SUCH A "SUGGESTION" FROM THE DEPARTMENT, OR A REQUEST DIRECTLY FROM BRUNEI'S LAWYERS TO THE DEPARTMENT? ¶7. (C) LIM SAID THE DESIRE TO AVOID PUBLIC EMBARRASSMENT TO BOTH THE GOB AND USG HAD ALREADY CAUSED HIM TO RECOMMEND THAT THE CROWN PRINCE ABANDON PLANS TO HEAD THE GOB DELEGATION TO THIS YEAR'S OPENING OF THE UNGA, IN HIS CAPACITY AS SENIOR MINISTER IN BRUNEI'S CURRENT GOVERNMENT. THE GOB, HE EXPLAINED, DID NOT WANT TO HAVE THE NEW YORK COURT TRY TO SERVE THE CROWN PRINCE WITH A SUMMONS, AND SO WOULD RECOMMEND THAT HE AVOID TRAVEL TO U.S. SOIL UNTIL THE FSIA WAS DEFINITIVELY APPLIED TO THE PENDING COURT CASE. ¶8. (C) FINALLY, LIM TOLD ME THAT HE WOULD LIKE TO KEEP THE GOB-USG EXCHANGE ON THIS MATTER AS CONFIDENTIAL AS POSSIBLE UNTIL HE RECEIVED ADVICE FROM THE DEPARTMENT AS TO NEXT STEPS. HE DID NOT INTEND TO INFORM THE GOB AMBASSADOR IN WASHINGTON OF HIS APPROACH TO ME, AND SAID THE ONLY OTHER PERSON IN THE MINISTRY WHO WOULD BE AWARE OF IT WOULD BE PENGIRAN ALI HASHIM, THE DIRECTOR FOR THE AMERICAS, EUROPE, AND AFRICA AND THE ONLY OTHER PERSON IN THE ROOM DURING OUR MEETING. ¶9. (C) I TOLD LIM THAT I COULD NOT COMMENT ON THE APPLICATION OF THE FSIA BUT THAT I WOULD SEEK AN ANSWER TO HIS QUESTIONS FROM THE DEPARTMENT. I ALSO ASKED HIM FOR COPY OF CONFIDENTIAL NON-PAPER FROM WHICH HE HAD BEEN READING; HE PROVIDED IT TO ME, AND EMBASSY CAN RETYPE IT AS CABLE AND FORWARD IT TO DEPARTMENT IF REQUIRED. (COMMENT: ALTHOUGH EMBASSY DOES NOT HAVE LEGAL EXPERTISE REQUIRED TO DETERMINE APPLICATION OF FSIA, WE NOTE THAT THE CROWN PRINCE, IN ADDITION TO BEING THE DESIGNATED HEIR TO THE THRONE, DOES INDEED PLAY AN ACTIVE ROLE IN THE GOB AS SENIOR MINISTER IN THE CABINET, THE NUMBER TWO CABINET POSITION AFTER THE PRIME MINISTER POSITION FILLED BY HIS FATHER THE SULTAN. END COMMENT.) ¶10. (C) ACTION REQUESTED: REQUEST DEPARTMENT ADVISE AS TO PROPER METHOD FOR GOB TO REQUEST APPLICATION OF FSIA TO SULTAN AND CROWN PRINCE AS REGARDS THIS LAWSUIT. SKODON