INDONESIA READY TO FINALIZE CUSTOMS MUTUAL

UNCLAS JAKARTA 012875 SIPDIS SENSITIVE SIPDIS STATE FOR EAP/MTS U.S. CUSTOMS AND BORDER PROTECTION FOR OIA/EBRANSON AND OIA/BOHEARN SINGAPORE FOR DHS/ICE MKING AND DHS/CBP PDAY E.O. 12958: N/A TAGS: ECON ETRD ID SUBJECT: INDONESIA READY TO FINALIZE CUSTOMS MUTUAL ASSISTANCE MOU REF: OCTOBER 31 DHS CBP/OIA ELIZABETH BRANSON EMAIL TO DHS IE ATTACHE MATTHEW KING ¶1. (U) This is an action request for U.S. Customs Border Protection and State EAP/MTS. Please see para 4. ¶2. (SBU) Summary: The Indonesian Directorate General of Customs & Excise (DGCE) and U.S. Customs and Boarder Protection are close to finalizing a Memorandum of Understanding (MOU) on Customs Matters between the U.S. and Indonesia. Embassy believes the MOU would advance economic cooperation between our two countries, and recommends that it be prioritized for announcement at the upcoming POTUS visit to Indonesia next month. End Summary. ¶2. (SBU) DGCE Deputy Director of International Cooperation Agung Kuswandono on October 30 provided us with a signed official letter (full text in para 5) stating that the Government of Indonesia perceives every agreement it enters into with another government to be legally binding, including the proposed Memorandum of Understanding (MOU) on Customs Matters Between the U.S. and Indonesia. Attached to Agung's letter is an October 18 Indonesian language letter from the Department of Foreign Affairs (Deplu) that includes a legal interpretation making the same determination. Agung also informed us on October 31, that, while he still needs to consult with his colleagues, his initial impression is that Indonesia Customs could accept U.S. Customs and Border Protection's (CBP) October 30 clarifications on the draft MOU (ref). He added, however, that he would still like the CBP General Counsel to respond to Indonesia's requests for clarifications on three remaining points that CBP did not address in its October 30 response (ref). ¶3. (SBU) Agung's letter and subsequent response to the latest U.S. MOU draft and clarifications, in our view, eliminate significant obstacles that had been standing in the way of finalizing the document. Embassy believes the MOU would boast economic cooperation between our two countries, especially in the area of customs enforcement, and recommends that it be prioritized as a potential deliverable for the upcoming POTUS visit to Indonesia. ¶4. (SBU) Begin Action request: To maximize the possibility of finalizing the agreement in advance to the POTUS visit, we request the following assistance from State and Department of Homeland Security/CBP: -- We request CBP General Counsel respond as soon as possible to Indonesia Customs' three remaining requests for answers and clarifications; -- We ask State EAP/MTS to coordinate with CBP and L to ensure that C-175 authority for the MOU (if necessary) is approved in an expeditious manner; -- We request CBP/State send via front channel cable authorization for the Ambassador to sign the agreement once the text is finalized. ¶5. (SBU) Begin Text of Indonesia Customs Letter: October 30, 2006 Mr. Tobias Glucskman International Trade and Investment Officer Embassy of the United States of America Jakarta Dear Mr. Glucksman, Following our recent phone conversation in relation to the Memorandum of Understanding on Customs Matters between our two Governments, I would like to inform you that the Government of the Republic of Indonesia has a perception that every agreement made with other Government, including Memorandum of Understanding (MOU) is legally binding. Enclosed herewith the letter from the Ministry of Foreign Affairs of the Republic of Indonesia concerning that matters for your consideration. I hope this information could be useful in order to continue the discussion of the MOU between our two governments regarding mutual assistance on customs matters. Thank you for your kind attention and we look forward to hearing from you. Yours Sincerely, Agung Kuswandono Deputy Director of International Cooperation End Text of Indonesia Customs Letter. HEFFERN