THE SECRETARY'S JANUARY 24 MEETING WITH EAST

C O N F I D E N T I A L STATE 016185


JAKARTA PASS TO DILI

E.O. 12958: DECL: 1/30/16
TAGS: ASEAN PHUM PREL ID KEM KDEM UNSC KAWC PGOV
TT
SUBJECT: THE SECRETARY'S JANUARY 24 MEETING WITH EAST
TIMOR PRESIDENT XANANA GUSMAO


1. (U) Classified by EAP A/S Christopher R. Hill, Reasons
1.4 (b) and (d).


2. (U) January 24, 2006, 4:30-5:00 PM, Secretary's Outer
Office.


3. (U) Participants:

United States:
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The Secretary
A/S Christopher R. Hill, EAP
Ambassador Grover Joseph Rees III
Executive Assistant Steve Beecroft
A/S Sean McCormack, PA
EAP/MTS Desk Officer Sameer Sheth (notetaker)

East Timor:
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President Xanana Gusmao
Foreign Minister Jose Ramos-Horta
Ambassador Jose Luis Guterres
DCM Constancio Pinto
President's Chief of Staff Hermenegildo Pereira


4. (C) SUMMARY: In a meeting with the Secretary on
January 24, President Xanana Gusmao described the
democratic challenges facing East Timor, especially the
importance of having a fair and open election process in
2007, when the first elections since independence in 2002
will take place. On accountability for crimes against
humanity, Gusmao assured the Secretary that East Timor is
committed to revealing the truth. The Secretary stressed
that free and fair elections are not only about the actual
vote and that the entire process should be free and fair
in order to give the election's outcome domestic and
international legitimacy. She expressed concern about an
anti-defamation law the GOET plans to enact. Gusmao said
he also has concerns and will discuss them with Prime
Minister Alkatiri's advisors. Foreign Minister Ramos-
Horta explained East Timor's recently signed treaty with
Australia that equally splits oil and natural gas revenues
in the disputed area of the Timor Sea and defers the
maritime boundary issue for another 50 years. END
SUMMARY.

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UNOTIL: EAST TIMOR GRADUATES FROM UN TUTELAGE
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5. (C) Warmly welcoming President Gusmao, the Secretary
asked him about his trip to New York. Gusmao said he
attended the UNSC meeting to discuss the UN Office in East
Timor (UNOTIL) and that he believes it should end as
planned in May. However, his nation continues to need
assistance to strengthen state institutions and for
democratization. The elections in 2007 will be East
Timor's first elections since its independence in 2002,
and the process needs to be as fair and open as possible.
The recent eight-month long local elections illustrated
both the capabilities and the weaknesses of Timorese
institutions. Gusmao said that while in New York, he
requested the UN to establish a small political office,
focused on election assistance and additional advisors for
the financial, justice, and police sectors. The Secretary
said she is pleased Gusmao believes UNOTIL should end as
planned because this is a sign of East Timor's success.
She expressed confidence that other UN agencies can assist
in helping East Timor face its remaining challenges.


6. (C) Gusmao stated that Timorese police especially need
international training assistance in respecting human
rights (for example, on when to resort to lethal force)
since there are many complaints of human rights
violations. The justice sector is also weak due to the
lack of proper training and professionalism. The
Secretary agreed that police sector reform remains a key
challenge in East Timor and noted that the United States
has similar programs that are effective in many nations
and is currently working on how to provide assistance to
East Timor.

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DEMOCRACY: NOT JUST ABOUT THE ACTUAL VOTE
--------------


7. (C) The Secretary said the United States looks forward
to the upcoming elections and that free and fair elections
do not begin on the day of the actual vote; instead, they
begin with the entire electoral process--i.e., ensuring an
open media and that the government in office is not
unfairly advantaged. She stressed that the "campaign
process gives people the confidence" that an election is
free and fair. The UN Electoral Assistance Division, the
International Republican Institute, and the National
Democ-atic Institute would be helpful in ensuring a
legitimate and open process. President Gusmao replied
that the first steps include drafting an electoral law and
educating civil society; the Secretary commended him for
East Timor's early focus on organization.


8. (C) The Secretary asked Gusmao about the new penal code
that the Timorese government plans to enact and expressed
Washington's hope that a criminal defamation provision in
the new code will not go into effect. She emphasized this
is important because it will set the context within which
the elections--and whether they are perceived as free and
fair--will play out. Gusmao said government officials
must be better able than ordinary citizens to accept
public scrutiny, and that he plans to discuss his concerns
about the defamation provision with Prime Minister
Alkatiri's advisors when he returns to East Timor. The
Secretary agreed public officials should not be
privileged, adding that early decisions correctly made are
very important in a young democracy like East Timor's.

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ACCOUNTABILITY AND FOREIGN RELATIONS
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9. (C) The Secretary encouraged Gusmao to ensure the Truth
and Friendship Commission (TFC) does its work credibly and
holds public hearings. Gusmao said he met with Indonesian
President Susilo Bambang Yudhoyono on December 24 and will
work with him to reveal the truth since their individual
credibility and that of their nations are at stake. East
Timor's CAVR (Commission for Reception, Truth, and
Reconciliation) Report--a copy of which Gusmao gave
Secretary-General Annan on January 20--is a first test
that will measure how prepared Indonesian society is to
accept the truth. Yudhoyono fully understands that the
responsibility to reveal the truth must be a shared
enterprise. Gusmao said East Timor is committed "not to
play games" in the TFC and continues to search for a
viable approach in cooperation with the Indonesia.


10. (C) Foreign Minister Ramos-Horta briefed the Secretary
on the recently signed Timor Sea treaty with Australia.
The treaty provides for an equal split of oil and gas
revenues as well as a 50-year deferral of the "seemingly
irreconcilable" issue of the maritime boundary between the
two nations. East Timor will negotiate the placement of
the pipeline and production facilities over the next few
months; it will not be dogmatic though and will propose
that the World Bank conduct an independent study on the
feasibility of a pipeline connection to East Timor.
Ramos-Horta added that a production facility in East Timor
will make the agreement better while one in Australia
would instead taint it with bitterness.


11. (C) Gusmao said East Timor's relations with Australia
are good, and those with Indonesia continue to strengthen.
East Timor and Indonesia have agreed to approximately 99%
of the common border. He cited the recent border
incident--in which the East Timor Border Police Unit shot
dead three alleged former militia members from Indonesia--
to reiterate the importance of proper training of and
better communication for the Border Police Unit in order
to avoid future incidents. The Secretary agreed, adding
that with a newly democratic Indonesia, both nations have
common work to pursue.


RICE