ASSISTANT SECRETARY HILL'S OCTOBER 25 MEETING WITH PACIFIC

UNCLAS SECTION 01 OF 05 SUVA 000459

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SENSITIVE

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E.O. 12958: N/A
TAGS: PREL ETRD EAID FJ NZ XV
SUBJECT: ASSISTANT SECRETARY HILL'S OCTOBER 25 MEETING WITH PACIFIC
ISLAND LEADERS


1. (SBU) Summary: Pacific heads of government welcomed EAP
Assistant Secretary Hill's participation in a Pacific Islands Forum
special session with the U.S. in Fiji on October 25, 2006, as a sign
of stepped-up U.S. engagement with the region. A/S Hill proposed to
revitalize the Joint Commercial Commission by hosting a meeting in
Washington in 2007 that would examine market access and other
issues. He also undertook to explore the possible timing of a
high-level meeting of island leaders with the U.S. and discussed in
detail the leaders' interest in greater people-to-people exchanges,
including an expanded Peace Corps presence in the region. Hill
expressed USG appreciation for island leaders' support for Guatemala
in the UNSC elections and highlighted the role Forum countries play
in peace-keeping and stabilization operations, particularly in Iraq,
Afghanistan, and East Timor. End Summary.


2. (U) EAP Assistant Secretary Christopher R. Hill met with Pacific
island heads of government on October 25, 2006, in Nadi, Fiji, at
the annual Pacific Islands Forum (PIF) Meeting. The encounter was a
unique "special session" for the United States with island leaders
and took the place of the United States' traditional Post Forum
Dialogue with ministers.


3. (SBU) Fiji Prime Minister Qarase chaired the special session. In
his opening statement, he called this discussion with the U.S.
"overdue" and said Forum members hope the special session would kick
start discussion on the future of the United States' relationship
with the Pacific. Recalling America's central place in the modern
history of the Pacific, in particular World War II, Qarase said
Pacific countries hold the U.S. in high esteem and share a
commitment to strengthen relations. Qarase noted that, because of
the U.S. Pacific territories, America's strong links to the Freely
Associated States, U.S. participation in South Pacific Regional
Environmental Programme (SPREP) and the Pacific Community (SPC),and
the large Pacific population living in the U.S., Pacific islanders
are inclined to see America as not just a friend but also as a
neighbor. Nevertheless, he said, it appears that the relationship
could and should be stronger. (In a subsequent intervention, Tongan
Prime Minister Sevele expressed this sentiment less diplomatically.
To the embarrassment of his colleagues, he cited briefing papers the
Forum Secretariat prepared for leaders that said the U.S. no longer
sees the Pacific as a region of strategic significance and has
scaled back its engagement accordingly.) Qarase noted that the
Pacific Plan, which Forum leaders adopted last year to guide the
region's development, calls for a reassessment of ties with external
parties. Relative to some other partners, such as Japan, France,
and China, he observed that the U.S. does not currently have a
high-level consultation mechanism with Forum participants apart from
the Post Forum Dialogue, which, he said, is not sufficient.

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Security (Maritime Security, Transnational Crime, and Peacekeeping):

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4. (U) A/S Hill thanked Forum leaders for arranging the special
session, which, he said, highlights the important friendship the
U.S. has with the nations of the Pacific. He emphasized that the
United States remains deeply committed to the Pacific islands and is
looking for opportunities to increase engagement with the region.
A/S Hill said that the U.S. is eager to expand cooperation on
maritime security and transnational crime and also values Pacific
contributions to regional and international peacekeeping operations
such as the Regional Assistance Mission to the Solomon Islands
(RAMSI) and Fiji's and Tonga's global deployments. Elaborating on
these themes, he told the leaders that the U.S. Coast Guard is
committed to providing training and other assistance to countries in
the region to improve marine law enforcement, search and rescue, and
fisheries enforcement and is interested in improving the
interoperability of all our maritime law enforcement agencies. A/S
Hill held up the at-sea gathering of Pacific patrol boats, planned
for December, as an example of the Coast Guard's engagement with
Pacific partners. He praised regional efforts to combat money
laundering and announced a new U.S. contribution of 1.2 million
dollars to the Pacific Anti-Money Laundering Program. A/S Hill said
the U.S. is also interested in how the U.S. and other regional
partners can help Pacific islands to further develop their strength
in peacekeeping operations, with a focus on both military forces and

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stability police.


5. (SBU) Papua New Guinea Prime Minister Somare asked if the U.S. is
prepared to assist with Pacific states' "surveillance needs,"
particularly the need to monitor criminal activities originating in
Southeast Asia. EAP/ANP Director McGann replied that U.S.
assistance is aimed at strengthening governance. New Zealand Prime
Minister Clark acknowledged the importance of past U.S. support on
implementation of money laundering and terrorist finance measures,
and commented on the difficulty small states, even New Zealand,
sometimes have in keeping up with the ever-rising standard. In
response to a question from Ambassador Dinger, Pacific Islands Forum
Secretary General Urwin said that it is too early to know how

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effective U.S. assistance has been in countering money laundering,
in part, because there is a lack of data on the extent of the
problem. On peacekeeping, Urwin noted the existence of a regional
policing initiative. He suggested that the U.S. consider linking
peacekeeping capacity-building efforts to that initiative as one
means of moving forward.

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Trade and Investment:
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6. (SBU) A/S Hill told Forum members the U.S recognizes that
increasing trade is an important priority for the region and that,
keeping in mind WTO restrictions, he wanted to hear island leaders'
thoughts on how we can enhance our commercial relations. A/S Hill
said that USTR is prepared to work with the PIF's developing
countries, either individually with representatives in Washington or
at a future regional meeting to see how they can make use of our
Generalized System of Preferences (GSP). He regretted that the
question of how best to utilize the Joint Commercial Commission
(JCC) was still on the table and encouraged Forum members to present
concrete proposals for bilateral and multilateral activities. PM
Clark suggested further capacity building for Pacific island states
that were looking at joining the WTO. A/S Hill replied that the
U.S. is absolutely prepared to assist in this area, either in
Washington or in the region.


7. (SBU) SG Urwin remarked that the JCC is a matter of frustration
for Forum members as well. Nevertheless, the fact that it already
exists argues for trying to breathe life into it rather than trying
to come up with something new. He said that Forum members are
looking for assurance from the U.S. that we think it is worth the
effort, suggesting that previous approaches in recent years had been
met in a fairly negative way with the U.S. not giving any indication
of how it wants to proceed. PM Qarase explained that economic
growth is one of the pillars of the Pacific Plan and is essential
for stability. He argued that the small domestic markets of Pacific
island states cannot produce adequate growth, even with regional
integration. Consequently, market access is key, yet the JCC has
produced nothing substantial in this regard.


8. (SBU) A/S Hill responded that "since the JCC is the horse we've
got, we need to see if we can put a saddle on it." He proposed
convening a JCC meeting in Washington next year. This meeting could
include WTO accession and GSP qualifications among other issues, and
could tap expertise at the World Bank and other international
institutions in Washington. He offered to work with the Chair to
develop additional ideas. Ambassador Dinger recalled that, in the
late 90s, the U.S. and the Forum organized a workshop under the JCC
on phytosanitary restrictions that participants found useful. He
suggested that, if there are other such practical issues of concern,
the JCC could be used to address them. McGann suggested labor
mobility as a possible additional topic, particularly mobility
between Pacific islands, but including access to the U.S. labor
market, since Los Angeles is now, along with Sydney and Auckland one
of the biggest "Pacific" cities. Tonga's PM Sevele cited the PRC's
practice of facilitating finance for joint ventures throughout the
Pacific, which, he suggested, is an effective means of strengthening
economic ties, but is also an example of China's growing influence.
He said China is coming on strong, and the U.S. should be
re-assessing its assistance to the Pacific in response. A/S Hill
replied that Sevele's observation on joint ventures highlights the
need to include a private sector component to our discussions but
said that we should not base decisions on the future of U.S.-Pacific

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cooperation on what China is doing in the region. PNG PM Somare
suggested adding transport issues, particularly shipping, to the
agenda.

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Millennium Challenge Account:
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9. (SBU) A/S Hill commented on a high degree of interest in the
region in the Millennium Challenge Account, noting that one country,
Vanuatu, has already benefited. He told leaders that he would
travel to Vanuatu right after the Forum to review the MCC program.
He also noted that the MCC is about to send a team to the region to
examine the issue of how best to engage Pacific islands states,
given their small size and the limited staffing of the MCC itself.


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People-to-People Contact:
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10. (U) A/S Hill recalled his own experience as a Peace Corps
volunteer, and expressed his belief in the importance of
people-to-people exchanges. He told participants of the planned
deployment of a new regional public diplomacy officer to Embassy
Suva. This officer, he said, would have as part of his or her
mission the job of expanding these sorts of exchanges throughout the
Pacific. A/S Hill also highlighted the recent creation of a new
Regional Environment Hub for the Pacific, which will expand the U.S.
ability to engage with island governments on environment, science
and technology issues. PM Qarase "gratefully acknowledged" that
many countries in the region receive Peace Corps volunteers but
lamented a lack of exchange opportunities at the political level.
He encouraged more high-level visitors, particularly members of
Congress, to visit the Pacific. He noted that Fiji is fortunate to
have a U.S. embassy that helps to keep lines of communication open
but said many other Pacific countries do not have this avenue open
to them. A/S Hill said he shares the PM's view on the importance of
high-level contacts in addition to more grass-roots exchanges, and
he acknowledged the disadvantages of the limited U.S. diplomatic
representation in the region. He reiterated though that the new
environmental and public diplomacy hub positions are intended to
help respond.


11. (SBU) PM Clark observed that only seven Forum members have Peace
Corps missions and inquired about prospects for expansion. A/S Hill
replied that Peace Corps has felt very much at home in the Pacific.
He highlighted the importance the agency attaches to the security of
volunteers in considering any new program, or continuing an
established one. Samoan Prime Minister Tuilaepa asked if there is
some way Peace Corps could send more retired professionals who could
assist in capacity building. A/S Hill said that, while there a
number of older volunteers, it is a fact that most of those who join
the Peace Corps are young. He told the PM that there are other
programs specifically geared to retired professionals and that he
would look into those for him. President Scotty of Nauru complained
that his country is one of the safest in the world but has still
been unable have a Peace Corps presence. Ambassador Dinger reviewed
his work with Nauru and Tuvalu on their applications for a Peace
Corps presence. Peace Corps, he said, acknowledges that both
countries would benefit from a Peace Corps presence, but resources
are limited. A/S Hill promised to provide President Scotty with a
letter providing a detailed answer to his request for a Peace Corps
presence in his country.

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Regional Developments and the Future of U.S.-Pacific Dialog:
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12. (U) Noting that this is the end of the first year of
implementation of the Pacific Plan, SG Urwin said the region has
made a 'respectable start" on a number of initiatives and has set up
processes to achieve the Plan's objectives. The task now, he said,
is to translate regional processes into national programs. Urwin
said he is encouraged by the extent to which the Pacific Plan is
being used by donors and other development partners as a guide for
their engagement in the region. He encouraged the U.S. to keep the

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Pacific Plan in mind as it considered its own activities, since the
Plan is a statement of the region's priorities. A/S Hill said
that the U.S. is pleased with the Plan as adopted. It "dovetails
with our own priorities in the region."


13. (SBU) Fiji's Foreign Minister Tavola described the Forum
Experts' Group proposal to revise regional architecture as an effort
to address the overlapping mandates of the Pacific regional
organizations, to remedy the disconnect that exists between these
organizations and national capitals, to realize cost savings and
efficiency gains, and to improve the delivery of services. He
reported that Forum leaders have agreed to establish a task force to
further examine the issue and that the timeline for any
restructuring of regional organizations has been left open. A/S
Hill responded that the U.S. greatly values its participation in the
two regional organizations to which it belongs (SPREP and the SPC).
He said he wholeheartedly agrees with the underlying thrust of the
reform proposals and supports the spirit of the effort. A/S Hill
cautioned, however, that the U.S. has questions about practical,
legal, and financial aspects of some of the changes that are being
considered.


14. (U) SG Urwin commented on the planned restructuring of the Post
Forum Dialogue, explaining that, for a sixteen-member organization,
having separate dialogs with thirteen partners has become unwieldy.
Consequently, leaders plan to implement a proposal to abolish the
current structure of the Dialogue and move instead to an all-plenary
format where Dialogue partners meet with Forum members in a single
one-day event. Urwin said that, in addition, Forum members already
have established regular leader-level meetings with Japan, France,
the EU, and China. (Note: in subsequent conversations, EU
representatives said they are still trying to figure out a way to
make periodic high-level dialog feasible.) The U.S. is the other
major partner, so the question is, what sort of a regime do we want
to establish?


15. (SBU) A/S Hill said he welcomed the Forum initiative to hold the
special session with the U.S. He noted that the meeting with
Pacific leaders in New York on the margins of UNGA is now
established as an annual event, but he lamented that there is always
so much going on during the UNGA that it is difficult to fully focus
on the islands' issues. (McGann took the opportunity to assure
Forum members that the U.S. is not opposed to the expansion of U.N.
offices in the Pacific, which was a concern that some of them had
expressed in New York in September.)


16. (SBU) Samoa's Tuilaepa commented that the proposed Washington
JCC meeting could be a significant event for leaders and emphasized
the need to know the timing. Tonga's Sevele was less subtle. He
asked that the proposed Washington event include a meeting with the
President and that the U.S. commit to regular leaders' meetings,
perhaps at the mid-term point every four years. Sevele said that
the U.S. has been a protector and friend to the countries in the
region for decades and is a welcome presence. Nevertheless, in
recent memory, there have been only two meetings between Pacific
leaders and a U.S. President. In addition to the leaders' meeting,
he advocated formation of a U.S.-Pacific standing committee that
would meet annually. Sevele emphasized that strengthened engagement
with the U.S. is important to the security and well-being of the
Pacific.


17. (SBU) A/S Hill welcomed the leaders' enthusiasm for
strengthening ties. He promised to report back to the Forum
Secretariat on U.S. steps to follow-up on the special session,

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including providing a timeframe for a possible USG high-level
meeting with island leaders.


18. (SBU) At the conclusion of the meeting, A/S Hill provided the
leaders with a briefing on the North Korean nuclear issue. Leaders
showed a keen interest in A/S Hill's presentation and seemed
receptive to his message that the U.S. stands by its allies in the
region in the face of the nuclear threat posed by the North and that
the issue needs to be resolved diplomatically and on a multilateral
basis.

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Comment:

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19. (SBU) Forum leaders, Secretary General Urwin, and other
officials described the PIF special session with A/S Hill as
extremely valuable. The leaders took particular note of A/S Hill's
willingness to revive the JCC concept through a Washington meeting
in 2007 and his promise to explore scheduling possibilities for a
Pacific leaders' high-level meeting with the U.S. in the coming
year. Island leaders strongly share the U.S. interest in our
expanding regional engagement, and this special session was a
significant step down that road. End Comment.


20. (U) EAP/ANP director McGann cleared this message.

DINGER