EAST TIMOR SITREP FOR JUNE 13, 2006

C O N F I D E N T I A L SECTION 01 OF 03 DILI 000306

SIPDIS

SIPDIS

DEPT FOR EAP/MTS, DS, CA
PACOM FOR POLAD AND JOC
USUN FOR GORDON OLSON AND RICHARD MCCURRY

E.O. 12958: DECL: 6/13/2016
TAGS: PGOV MOPS ASEC PHUM KPKO CASC PO MY TT AS
SUBJECT: EAST TIMOR SITREP FOR JUNE 13, 2006

REF: A) DILI 300; B) DILI 303; C) DILI 304; D) STATE 95226

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CLASSIFIED BY: Grover Joseph Rees, Ambassador, U.S. Embassy
Dili, Department of State.
REASON: 1.4 (b),(d)




1. (C) Summary:
Pro-Alkatiri armed group reported in Los Palos;
Ramos-Horta casts doubt on whether UN investigation would
include "Fretilin Security Forces";
Fretilin National Planning Committee may meet to discuss current
crisis;
Opposition MPs walk out of Parliament in protest of a Fretilin
resolution;
GOET announces wage increases for civil service and increased
expenditures;
Security environment.
End Summary.

Pro-Alkatiri armed group reported in Los Palos
--------------


2. (C) Credible reports from Los Palos, the largest town in the
easternmost part of East Timor, indicate that a group of about
15 men armed with rifles has been patrolling the streets. These
reports say the group consists of Fretilin militants who support
Prime Minister Mari Alkatiri. Some reports suggest the group
may be trying to discourage participation in a Dili
demonstration reportedly being organized by anti-Alkatiri
activists from the West who are actively seeking support from
like-minded eastern residents. See Ref A. According to a
source in the office of President Xanana Gusmao, leaders of the
armed forces (FDTL) have confirmed the presence of this group in
Los Palos and have volunteered to go to Los Palos ostensibly to
control the group. The President has reportedly recommended to
Foreign/Defense Minister Jose Ramos-Horta, however, that an
appeal instead be made to the Australian-led international
forces.

Ramos-Horta casts doubt on whether UN investigation would
include "Fretilin Security Forces"
--------------


3. (C) In his speech yesterday to Parliament, and during various
other public statements and encounters with foreign diplomats,
Foreign/Defense Minister Ramos-Horta has stated that the UN
Special Commission of Inquiry requested by the Government of
East Timor (GOET) was intended to investigate, among other
things, accusations that Prime Minister Mari Alkatiri had given
orders to arm Fretilin militants to kill certain critics of the
Government. See Ref B. During an interview with ABC
Australia's "Lateline" program, however, Ramos-Horta stated that
"on these particular allegations, President Xanana himself is
the first authority that has to look at them and if he finds
grounds for further investigation, then he will order further
investigation." This statement, which appears to conflict with
Ramos-Horta's other statements on the question, may have been
intended merely to show deference to the President, or perhaps
to avoid the possibility that the UN investigation, which could
take months, might have the unintended consequence of delaying
actions that might otherwise be possible within East Timor's
constitutional framework. On the other hand, the remarks could
mean that Ramos-Horta has encountered resistance from within
GOET to his initial suggestion that the allegations against
Alkatiri would be within the scope of the proposed
investigation.


4. (C) Comment: It is tempting to suggest that the upcoming
UNSC resolution extending the United Nations Office in
Timor-Leste (UNOTIL) for another 30 days include language that
explicitly authorizes an investigation into the allegations that
Alkatiri and/or then-Minister of the Interior Rogerio Lobato
armed the "Fretilin Security Force" and ordered its members to
kill people. The more prudent course, however, might be to

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settle for language such as that set forth in Ref D, authorizing
an investigation into the violence committed on April 28-29 and
May 23-25 (or perhaps just "since April 28, 2006.") Because the
alleged "Fretilin Security Force" headed by the man who calls
himself Railos claims to have been involved in the gun battle at
Tasitolu and Tibar on May 23 --- indeed, it appears that four of
the group's members were killed in the battle --- an
investigation into these killings would clearly include inquiry
into what the group was doing in Tasitolu. Attempting to
include an explicit reference to this question in the UNSC
resolution might appear to be a gratuitous attempt to embarrass
the Prime Minister and might generate objections from one or
more Security Council members. Embassy respectfully suggests,
however, that the USG consider communicating to the appropriate
UN personnel our understanding that a mandate to investigate the
violence that occurred on the specified dates does include
inquiry into who, if anyone, armed the various participants
and/or ordered them to participate in the events in question.
End comment.

Fretilin National Planning Committee set to meet to discuss
current crisis
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--------------


5. (C) During a meeting today with EmbOffs, Filomeno Cruz, a
member of the Fretilin Central Committee (CCF) and of the
newly-established Fretilin National Planning Committee (CNP),
said he is concerned about recently revealed allegations that
the Prime Minister authorized the establishment of Fretilin
death squads and on the general future of the party and its
leadership. (Note: The 15-member CNP, referred to by Alkatiri
critics and apparently by some of his supporters as "the
Politburo," was established during the recent Fretilin Party
Congress to act as an executive authority for the party between
bi-annual CCF meetings.) Long a devout Alkatiri supporter, Cruz
was clearly shaken by the recent allegations and indicated that
frank discussions would need to take place in the near future to
discuss these armed groups, which the Prime Minister has
privately assured Cruz he did not authorize. In addition to the
issue of armed civilians, Cruz indicated that several top
Fretilin leaders felt it was necessary for the CCF and the CNP
to insist that control over the party's policies be broadened to
a wider group, rather than continuing to be the exclusive domain
of the Prime Minister. When asked how the issue of secret armed
groups should be approached, Cruz suggested that an internal
Fretilin investigation should be conducted. (Comment: Despite
his assurances that he and other Fretilin members would get to
the bottom of these allegations, Cruz also indicated during the
conversation that he and other individuals close to the Prime
Minister had heard of the Railos group and of another armed
group before the information was broadcast by Australian media.
So he appears to be disturbed not by the group's existence but
by the fact that it has been made public, and/or possibly by
details of the group's alleged mandate of which he was
previously unaware. End comment.)

Opposition MPs walk out of Parliament in protest of a Fretilin
resolution
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--------------


6. (U) Five Fretilin MPs introduced a resolution in Parliament
today that purported to call for an end to violence in East
Timor, but that upon closer analysis turned out to consist
almost exclusively of condemnations of specific acts of violence
allegedly committed against Fretilin and its members, and which
reportedly suggested that the recent violence has been directed
primarily against Fretilin. When opposition party members of
Parliament suggested that the resolution be broadened to include
some of the numerous well-known instances of violence against
non-Fretilin persons and institutions, the sponsors reportedly
ignored these suggestions. Almost all the opposition members
present then left the chamber, and the resolution was passed by
a vote of 43 in favor, one opposed, and two abstentions. The 46

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members present for the vote, out of a total of 88, were one
more than the quorum necessary to conduct Parliamentary business.

GOET announces wage increases for civil service and increased
expenditures
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--------------


7. (C) The GOET announced Monday that it plans to raise public
sector salaries by up to 20 percent after an increase to the
state budget which will also address the need to rebuild the
areas of Dili most affected by recent violence. Foreign
Minister Ramos-Horta stated that approximately 15,000 civil
servants would receive salary raises of between 15 and 20
percent, while a few Government employees in remote areas might
see their income increase by as much as 50 percent. This would
represent the first increase in public sector wages since
independence. Possibly in response to accusations that the
Alkatiri government has done little to improve the situation of
people in remote areas, a portion of the budget, which was
increased from USD 220 million to USD 300 million, would be
directed toward providing running water, electricity, and basic
sanitation in the districts.

Security environment
--------------


8. (SBU) The Australian Defense Force (ADF) reports that last
night at 2300 hours three houses burned near the Santana river.
At 0300 hours three shots were heard near Comoro market. As
during other periods, local residents reported somewhat higher
levels of arson, gunshots, and other violence than those
included in the ADF report. The ADF also reports recovering two
pistols, four pistol magazines, one homemade incendiary, three
slingshots, ten darts, and one machete in the past 24 hours.
None of these disturbances were targeted toward Americans or
other foreigners.
REES