SOLOMON ISLANDS: CLOSING PEACE CORPS SAVES LITTLE, MAY COST

C O N F I D E N T I A L SECTION 01 OF 02 PORT MORESBY 000237

SIPDIS

SIPDIS

FOR EAP A/S HILL FROM BOB FITTS, STATE PLEASE PASS U.S. PEACE CORPS

E.O. 12958: DECL: 6/9/2016
TAGS: PREL BP
SUBJECT: SOLOMON ISLANDS: CLOSING PEACE CORPS SAVES LITTLE, MAY COST
MUCH

REF: A) PORT MORESBY 203 B) JUNE 7 CROWLEY-FITTS E-MAIL

CLASSIFIED BY: Robert Fitts, Ambassador, U.S. Embassy Port
Moresby, Department of State.
REASON: 1.4 (b),(d)



1.(C) SUMMARY: Since 2003 when it led a large-scale mission to
restore order to a failing Solomon Islands, Australia has asked
for US gestures of support for the mission. Given the enormous
respect for the U.S. left over from WWII, even rhetoric has an
impact.

2.(C) In 2000, Peace Corps suspended its program in Solomon
Islands because of the deteriorating situation. However, it
maintained its Honiara office which is essentially rent free
courtesy of the SIG. After the restoration of order in 2003,
other volunteer organizations gradually resumed operation. Peace
Corps did not. During every visit to Solomon Islands in the past
three years, Australian officials requested that Peace Corps
resume at least a token program as a sign of support.

3.(C) In April of 2006, rioting followed selection of an
unpopular prime minister. The rioting did much damage in the
capital, Honiara, but did not touch any other part of the
country. Nor did it endanger non-ethnic Chinese. The government
subsequently installed appears, at least in rhetoric, set to
seriously complicate Australia's mission (ref A).

4.(C) We understand that Peace Corps now proposes to formally
close its program in Solomon Islands. This is an understandable
reaction to the recent violence, which shows underlying tension
still remains in the capital despite three years of Australian
effort. However, it also sends a very negative signal to the
Solomon Islands public about U.S. support for Australia's
mission. When Embassy Canberra mentioned the plan to close the
S.I. Peace Corps office, DFAT reacted strongly, worrying that
the closure at this sensitive juncture might convey "U.S.
disinterest and disengagement in S.I.". DFAT instead requested
that the U.S. consider resuming the Peace Corps program.

5.(C) Especially given the small cost involved, I earnestly urge
that Peace Corps find a way to at least keep the Honiara office
in stasis, as it has for five years. END SUMMARY

Background:
6.(SBU) Solomon Islands is the weakest of the Pacific nations
immediately surrounding Australia. Increasing ethnic conflict
culminated with a forced change of government in June, 2000.
Then things got worse. Continued ethnic troubles undermined all
government institutions and rendered the police dysfunctional.
The economy fell roughly by a third and in 2003 even the
politicians gave up. By unanimous vote, parliament invited
intervention. In July 2003, Australia led a police-centered
intervention force (RAMSI) with substantial help from New
Zealand and token contributions from other neighboring states.
Order was quickly restored. Australia then set out on the
long-term task of rebuilding failed government institutions.

7.(SBU) In April, 2006, riots sprang out in the capital Honiara,
following the selection of a Prime Minister who was widely
unpopular with ethnic Malaitans, migrants from another island
who form the bulk of the capital's population and who had
touched off the ethnic problems that had torn the government
apart six years previously. Though the incident showed that
real tension remained under the surface in the capital, it is
notable that no incidents were reported elsewhere in the country.

8.(C) The Australian-led Solomon Islands police force was caught
off guard by the violence and a number of Australian officers
were injured. The rioting centered in China town in reaction to
allegations that Taiwan had been paying off the now-rejected new
Prime Minister. Other than policemen and ethnic Chinese, no
foreign nationals were targeted or injured.

Volunteers in the Happy Isles
9.(SBU) During the 2000 ethnic troubles, most countries drew
down their volunteers working in what had been styled since 1978
independence as the "Hapi Isles". Some volunteers remained in
the outer islands as much of the violence was confined to the
capital. Since the advent of RAMSI in 2003, Australia, New
Zealand, Japan, and the UN had gradually reflated their
volunteer programs. Peace Corps had suspended its program right
after the June 2000 coup and the program has remained suspended
since. The old office, furnished rent-free by the government
(well, one dollar a year),remained closed, looked after by two

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part time caretakers. A quick check indicates that other
volunteer programs have not been cut back after the latest
outbreak, though most still remain at well below 2000 levels.

Tough Times for Australia
10.(C) Australia has long sought gestures of US support for the
hard work it is doing in RAMSI, knowing the substantial good
will the Solomons population still harbors for the U.S. During
each of my visits in the past three years, RAMSI and Australian
officials have asked for at least a token resumption of Peace
Corps as a tangible gesture.

11.(C) The new government installed following the recent
outbreak seems - at least in rhetoric - intent on restricting
Australia's role (reftel and previous). How this will play out
as realities set in remains to be seen. However, in private,
Australia does feel a bit beleaguered. Both RAMSI officials and
the Australian High Commissioner have since explained to me how
useful U.S. gestures of support might be.

Australian DFAT on Peace Corps
12.(C) When we learned that Peace Corps was now contemplating
formal closure of its Solomon Island program, Embassy Canberra
approached the department of foreign affairs to determine views
in the capitol. After three days of formulation/clearance, DFAT
response is reported below:
Ms. Nerida King, Executive Officer, Solomon Islands Section,
Department of Foreign Affairs and Trade, mentioned to one of our
Political Officers today that the GOA believes strongly that the
Peace Corps office in Honiara should not close, especially at
this sensitive juncture, to avoid conveying U.S. disinterest and
disengagement in SI. In fact, the GOA would welcome a decision
by Peace Corps to restart its program. If Peace Corp's decision
is irreversible, the GOA would greatly prefer to see closure
delayed as long as possible.

Recommendation
13.(C) Given the small costs and the potentially large
consequences for an ally helping us around the world, I strongly
urge that we find a way to at least maintain the status quo of a
suspended Peace Corps program.
FITTS