Identifier
Created
Classification
Origin
07DILI241
2007-06-27 11:31:00
CONFIDENTIAL
Embassy Dili
Cable title:  

EAST TIMOR'S OPPOSITION PARTIES PREPARE TO GOVERN

Tags:  PGOV KDEM TT 
pdf how-to read a cable
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DE RUEHDT #0241/01 1781131
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FM AMEMBASSY DILI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3598
INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RHMFISS/CDR USPACOM HONOLULU HI
RUEKJCS/SECDEF WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEHDT/AMEMBASSY DILI 2972
C O N F I D E N T I A L SECTION 01 OF 03 DILI 000241 

SIPDIS

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STATE FOR EAP/MTS

E.O. 12958: DECL: 6/27/2017
TAGS: PGOV KDEM TT
SUBJECT: EAST TIMOR'S OPPOSITION PARTIES PREPARE TO GOVERN

REF: A) DILI 189, B) DILI 223

DILI 00000241 001.2 OF 003


CLASSIFIED BY: Henry M. Rector, Deputy Chief of Mission, U.S.
Embassy Dili, Department of State.
REASON: 1.4 (b),(d)



C O N F I D E N T I A L SECTION 01 OF 03 DILI 000241

SIPDIS

SIPDIS

STATE FOR EAP/MTS

E.O. 12958: DECL: 6/27/2017
TAGS: PGOV KDEM TT
SUBJECT: EAST TIMOR'S OPPOSITION PARTIES PREPARE TO GOVERN

REF: A) DILI 189, B) DILI 223

DILI 00000241 001.2 OF 003


CLASSIFIED BY: Henry M. Rector, Deputy Chief of Mission, U.S.
Embassy Dili, Department of State.
REASON: 1.4 (b),(d)




1. (SBU) Summary: With East Timor's ruling FRETILIN likely to
lose its parliamentary majority following the June 30 elections,
the four main opposition parties are looking at the very real
possibility of being in a position to form the next government.
These include: former president Xanana Gusmao's National Council
for Timorese Reconstruction (CNRT),the Democratic Party (PD),
and the coalition of the Timorese Social Democrat Association
and the Social Democratic Party (ASDT/PSD). Since none of these
is likely to win a majority on its own, discussions are
continuing between the four on forming a governing coalition.
Particulars of how this would work remain sketchy, especially on
the policy front. What they have all been able to agree to is
that none, under any circumstance, are to join a coalition with
FRETILIN. In addition, they have agreed to the principle that
the party among them that has the most support will choose the
next prime minister. Given the strength of his own party and
the inclination among many in PD to support him, Gusmao is the
clear top candidate for the job, although ASDT/PSD is standing
firmly behind PSD president Mario Carrascalao. A
CNRT-PD-ASDT/PSD government would likely face a protracted
formation process as each party jockeys for Cabinet positions.
This process that may be further complicated by the fact that no
discussions of agreed policies seems to have taken place to
date. In the long term, the challenge will be to maintain unity
among this potentially fractious group. End summary.


2. (U) The final outcome of the May 9 presidential elections, in
which opposition party backing delivered nearly 70 percent of
the vote to Jose Ramos-Horta, demonstrated the combined strength
of East Timor's opposition parties (Ref A). The first round
also provided the best information available, in the absence of
credible national polling, regarding the relative opposition
party strength. Although many more parties are on the

parliamentary list than presented candidates in the presidential
race, only three opposition choices are expected to gain
significant votes: the CNRT, PD and the ASDT/PSD coalition.
(Note: In the first round of presidential elections, the
candidate supported by CNRT, Jose Ramos-Horta, gained 22
percent; while PD's candidate, Fernando "Lasama" Araujo, won 19
percent. The combined vote for the ASDT and PSD candidates came
to approximately 23 percent.)

Coalition Certain, But Details Hazy

--------------


3. (C) In a recent conversation with Emboffs, former president
and CNRT head Xanana Gusmao stated that the three had reached a
gentlemen's agreement that none would enter into any arrangement
with FRETILIN and that they would work together to form the next
government (ref B). This basic agreement has been confirmed by
leadership in both PD and ASDT/PSD. However, assuming that they
win a combined majority, the parties will soon have to move
beyond their ability to agree on an anti-FRETILIN stance to
address the composition of the next government. So far specific
discussions on this have primarily focused on the question of
who will be the next prime minister. Party sources report that
they have agreed that the party with the most seats in
Parliament will make the choice. Despite occasional rumors to
the contrary, it has been clear in our conversations with CNRT
party leadership, including party president Gusmao and secretary
general Dionisio Babo Soares, that Gusmao is their only possible
prime minister candidate. It is also highly likely that PD
would support Gusmao. Despite some likely opposition to this
within the party, the grassroots leaders who pushed the party
into supporting Ramos-Horta in the presidential runoff appear to
be lining up now behind the idea of Gusmao as prime minister.
The only outlier then will be ASDT/PSD, which has from the
beginning strongly supported PSD president Mario Carrascalao, a
highly respected former governor of East Timor during Indonesian
times, as its prime minister candidate. However, ASDT/PSD
sources acknowledge that they are unlikely to be in the position
to choose, and emphasize that they will work with Gusmao as
prime minister.


4. (C) Beyond the question of the prime minister position, most
discussions of specific composition have been taking place
within the individual parties and are unlikely to be addressed
in detailed negotiations until election results are known. A
recently published shadow government report, citing CNRT
secretary general Soares as its source and listing Carrascalao

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DILI 00000241 002.2 OF 003


as prime minister, was unequivocally disavowed by CNRT, and its
ultimate source remains unclear. Rather, in a conversation with
Emboffs the same day, Soares cited Carrascalao as a potential
minister of a newly combined interior and administration
ministry or as inspector general. East Timor's Charge
d'Affaires in Washington, recently returned to campaign for PD,
recently shared his view that PD should not focus on leading the
next government but rather on building its experience and
governance track record with an eye to stepping into the top
position in 2012. In the meantime, he said that PD should seek
out positions that will keep it close to the people, such as the
Youth and Sports, Development, and Labor ministries.


5. (SBU) Even less progress has been made between the potential
government partners regarding policies, and in fact each has
pursued their policy and platform development entirely on its
own, with only the newly-minted ASDT/PSD coalition working out
its platform jointly. It is highly likely that such discussions
would not take place in earnest until after the new government
is established. In fact, Gusmao has repeatedly emphasized that
he plans to use the first six months in power to develop a
"master plan," so the potential for a clear joint platform to
emerge quickly seems remote. The parties do not have major
overarching differences that are currently apparent, but the
issues on which they agree generally, such as the need to
translate petroleum wealth to genuine poverty alleviation and
the need to resolve the outstanding issues of the 2006 crisis,
do not have simple solutions and disagreements are bound to
arise.

CNRT Ascendant, But Don't Forget PD

--------------


6. (SBU) As the campaign period draws to a close, it appears
that CNRT is in the best position of the opposition parties,
with the potential to compete with FRETILIN as the top vote
getter. As a new party, its support base is the least
quantifiable. Although many first-round Ramos-Horta voters were
assumed to be CNRT supporters, Ramos-Horta also drew support
from other parties' members unhappy with their own candidates
but ultimately loyal to their own parties. At the same time,
CNRT has become something of a campaign juggernaut, with Gusmao
putting his charisma, iconic stature, and populist touch to good
use in a non-stop schedule throughout the country. The campaign
has been aggressive and visible, and has been frequently accused
of using excessive negative rhetoric and intimidation tactics.
CNRT's would be governance partners decry some of its members'
behavior, often citing it as "no different than FRETILIN" but
they also acknowledge its effectiveness at chipping away at
FRETILIN's support. Additionally, party sources especially in
PD have said that with CNRT drawing most of FRETILIN's fire,
they have had greater breathing room for their own campaigns and
possible gained some converts fed up with both FRETILIN and CNRT.



7. (SBU) Despite earlier worries that the establishment of CNRT
might gravely undermine them, PD has run a strong campaign and
stands to gain a significant bloc of seats in parliament, most
likely as the next strongest opposition party behind CNRT. PD's
presidential candidate, Fernando "Lasama" de Araujo, did well in
the first round, almost pulling even with Ramos-Horta, and
taking first place in the populous western districts. In
addition, PD's grassroots leadership, in particular several
highly influential former resistance leaders in the districts,
has demonstrated remarkable loyalty to PD, despite the constant
gravitational pull of CNRT. PD will certainly lose some of its
support to CNRT, but its successful rallies and smaller-scale
community outreach efforts may win it new voters from other
quarters. ASDT/PSD, on the other hand, has not been able to
gain much momentum, and despite hopes that a coalition would at
the least add up to the sum of its parts in voter support,
appears to have lost ground. One of the key areas where this
loss may be felt is in Aileu, the district from which ASDT draws
its primary support. Many of ASDT's local leaders from Aileu
were not included on the ASDT/PSD list of parliamentary
candidates, and as a result may withdraw their support.


8. (SBU) Comment: Although speculation continues regarding one
or another opposition party being tempted into an alliance with
FRETILIN, we think this is highly unlikely. The antipathy felt
by the major opposition parties towards FRETILIN is palpable and
often very personal. Mario Carrascalao, for example, is a
frequent and acerbic critic of Gusmao, but the ill-will between
him and FRETILIN far outweighs this, especially since the
FRETILIN government seized his home in the upscale Farol
neighborhood several years ago. Given a combined majority, we
expect the CNRT, PD, and ASDT/PSD to work together successfully,

DILI 00000241 003.2 OF 003


if not perfectly, to form a coalition government, most likely
with Gusmao at the helm. However, allocating Cabinet positions
would likely be a drawn-out process, and setting an agreed
policy agenda probably even more protracted. Moreover, while
Gusmao's charisma and force of will may hold the pieces together
for a while, there is every reason to question whether this can
hold. Timorese political parties are notoriously bad at working
together and subsuming individual egos to a larger goal. A
CNRT-PD-ASDT/PSD government may be fundamentally unstable, which
in turn may suit FRETILIN very well. End comment.
KLEMM