HEART OF BORNEO: BRUNEI WILL OFFER TO HOST

C O N F I D E N T I A L SECTION 01 OF 02 BANDAR SERI BEGAWAN 000206

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E.O. 12958: DECL: 07/17/2017
TAGS: EAID BX EAID ID MY SENV
SUBJECT: HEART OF BORNEO: BRUNEI WILL OFFER TO HOST
SECRETARIAT


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REF: BANDAR SERI BEGAWAN 185 (NOTAL)

Classified By: AMBASSADOR EMIL SKODON FOR REASONS 1.5 (B AND D)


1. (C) SUMMARY: The Government of Brunei (GOB) intends to
push for a quick decision on establishment of a professional
secretariat to help implement the Heart of Borneo (HOB)

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tropical forest conservation initiative when it meets with
Malaysia and Indonesia at the forthcoming HOB trilateral in
Bandar Seri Begawan. The GOB will suggest to its HOB
partners that the secretariat be located in Brunei, and will
offer to pick up the majority of its operating costs if they
agree to that proposal. Ambassador urged maximum
transparency in the HOB implementation process for donor
countries and other stakeholders. END SUMMARY.


2. (SBU) GOB Deputy Minister of Industry and Primary
Resources, Dato Hamdillah, briefed Ambassador on GOB
preparations for the first trilateral working meeting on HOB
implementation, to be held July 19-20 in Bandar Seri Begawan.
The agenda will include discussion of an HOB strategic
action plan, establishment of an HOB secretariat, and
identification of general themes for trilateral cooperation.
Of these agenda items, the GOB's main focus will be on
gaining approval for the early establishment of a
professional secretariat to be located in Bandar Seri Begawan.


3. (C) Hamdillah outlined a multifaceted GOB strategy for
gaining the agreement of the Malaysian and Indonesian
governments to locate the HOB secretariat in Brunei. The
Ministry of Foreign Affairs and Trade has been enlisted to
make the diplomatic case by arguing that Bandar Seri Begawan
is the only one of the national capitals of the three HOB
partner nations to be located on the island of Borneo, and
also the only one that does not currently host a major
regional organization. That diplomatic argument will be
backed up by more practical measures. Hamdillah said the
Sultan of Brunei has authorized him to commit the GOB to
contributing DOLS 200,000 annually to the secretariat's
operating costs or 60 percent of its operating budget,
whichever is higher, provided it is located in Brunei. The
GOB would also offer to house the secretariat in temporary
quarters for up to three years until a purpose-built building
(presumably also funded primarily by the GOB) could be
constructed.


4. (C) The GOB also intends to put forward a recommendation
on how the HOB should be structured. It will suggest a
Governing Board made up of members nominated by the three HOB
partner countries, with ongoing oversight of the proposed
Brunei-based secretariat to be carried out by the GOB
Ministry of Industry and Primary Resources on behalf of the
board. The Bruneian proposal will call for appointment of a
Chief Executive Officer and two Deputy CEO's to manage the
secretariat, with one position to be filled by each of the

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HOB partners. Hamdillah said he was still debating with his
Minister as to whether the GOB should push to have a Bruneian
named as CEO. His Minister wanted that to be the case, but
Hamdillah did not. Not only did he think it would be too
hard a sell with the Malaysians and Indonesians, he was not
confident that he could find a Bruneian citizen with the
technical and managerial skills required to lead the
secretariat effectively and implement the HOB vision rapidly.

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5. (C) Hamdillah readily admitted that chairing the
forthcoming trilateral will be a challenge, since the HOB
partners had yet to agree on detailed procedures or protocols
for implementing the HOB since their leaders endorsed its
creation earlier this year. He hoped to reach informal
understandings on such issues by hosting Malaysian and
Indonesian attendees at an off-site session prior to the
commencement of the formal trilateral meeting, to be held,
appropriately enough, in Brunei's Ulu Temburong National
Park. One of the questions that would be addressed was the
extent to which the trilateral meeting and future HOB
deliberations would be conducted in closed session among the
HOB partners. Ambassador urged Hamdillah to push for maximum
transparency and openness in HOB decision making,
particularly for international donors such as the USG, Japan,
and European countries, but also for other stakeholders.
Hamdillah agreed to do so.


6. (C) COMMENT: It is encouraging to hear that the GOB will
push for rapid implementation of the HOB conservation vision,
but given the usual deliberate pace of decision-making in
southeast Asian regional organizations, we are less than

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confident that agreements on the secretariat and other
implementing measures will be reached at this first
trilateral working meeting. Nevertheless, the GOB plan to
put forward detailed proposals and offer its largesse for
implementing them are welcome, and reflect the surprising
extent to which the leadership and populace of the Sultanate
have rapidly embraced the HOB initiative. END COMMENT.
SKODON