INDONESIAN DELEGATION LOOKING FOR EMBASSY SITE,

C O N F I D E N T I A L BAGHDAD 003927

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/02/2017
TAGS: PGOV PREL AA IZ
SUBJECT: INDONESIAN DELEGATION LOOKING FOR EMBASSY SITE,
DEBT REPAYMENT


Classified By: Charge d'Affaires Patricia A. Butenis for reasons 1.4 (b
) and (d).


1. (C) SUMMARY: On November 29/30, an Indonesian delegation
toured prospective International Zone embassy sites and told
USG officials they want to establish a mission in Baghdad "as
soon as possible." To the surprise of their Iraqi hosts, the
delegation sought to cap its trip by signing a Memorandum of
Understanding linking the re-establishment of an Embassy to
settlement of Oil for Food debt. The GOI balked at these
conditions and did not sign the MOU, which, according to
Deputy Foreign Minister Abbawi, will "require further study."
END SUMMARY.


2. (C) On November 29/30, an Indonesian delegation, led by
MFA Secretary General Imron Cotan, toured potential embassy
sites and met with Iraqi and USG representatives. In a
wrap-up meeting with CDA Butenis, Cotan described himself as
"very satisfied" with the sites and said the Indonesian
Government was prepared to establish an embassy in Baghdad
"as soon as possible."


3. (C) Cotan told Ambassador Butenis that before returning
to Jakarta, he also hoped to sign a Memorandum of
Understanding with the GOI. The MOU, which Cotan provided to
PolOff after the discussion, links the re-opening of an
embassy to GOI "facilitation" of the embassy's functioning
and repayment of Oil for Food debt within a year of the
opening. Cotan was clear that the Indonesians expected the
GOI to "facilitate" by waiving the first six months rent on
the property, and pressed the CDA to weigh in on the issue.
(NOTE: During a very brief conversation the following day,
Cotan appeared genuinely surprised that the CDA had not
immediately approached the GOI to secure the rent-waiver. END
NOTE)


4. (C) Cotan explained that the previous regime cancelled an
obligation for USD 120 million worth of tea and brushed aside
the CDA's suggestion the Indonesians consider waiving the
debt, stressing that because it involved private Indonesian
entities, there was little his government could do. He added
that elements of the Indonesian Parliament were against "good
relations with Washington" and opposed Jakarta's move to
re-open an embassy in Baghdad. Without the MOU "goodies", he
concluded, the Indonesian MFA would have a hard time selling
the plan to President Yudhoyono and the parliament.


5. (C) After the meetings, GOI MFA contacts, including
Deputy Foreign Minster Abbawi, told us that while they
expected the delegation would raise other issues, they were
blindsided by the heavy emphasis on debt repayment. One
contact suggested that the Indonesians had come to Baghdad
"to quote a price for re-opening their mission." Deputy
Foreign Minister Abbawi said the GOI would not sign an MOU
during this visit, but would consider the matter further.
After the delegation's departure, a Foreign Ministry source
confirmed that the parties did not sign the MOU.
BUTENIS