U.S. NAVAL MEDICAL RESEARCH UNIT -- INDONESIA

C O N F I D E N T I A L SECTION 01 OF 04 JAKARTA 003262

SIPDIS

SIPDIS

DEPT FOR EAP, EAP/MTS, G/AIAG
SECDEF FOR USDP/ISA/AP P.IPSEN

E.O. 12958: DECL: 11/23/2017
TAGS: PREL MARR TBIO AMED ID
SUBJECT: U.S. NAVAL MEDICAL RESEARCH UNIT -- INDONESIA
PRESENTS NEW MOU TEXT

REF: A. JAKARTA 0122

B. 06 JAKARTA 13218

Classified By: Pol/C Joseph Legend Novak, reasons 1.4(b-d).


1. (U) This is an Action Request -- please see para 14-15.


2. (C) SUMMARY: Indonesia has provided for U.S. comment a
new proposed text of the draft Memorandum of Understanding
(MOU) for the U.S. Naval Medical Research Unit in Jakarta
(NAMRU-2). On balance, the text provides a constructive
basis for further negotiations. The new text preserves
unacceptable GOI positions on status of personnel but adopts
U.S. recommendations regarding supervisory authorities and
intellectual property rights (IPR). A cluster of
controversial sample-sharing issues need scrutiny. Mission
recommends another round of negotiations focused on all
issues except the two hardest ones; i.e., status and sample
sharing. Mission is providing the GOI's draft, annotated
text to selected USG offices. END SUMMARY.

INDONESIA READY FOR FURTHER NEGOTIATIONS


3. (C) Indonesia has completed its interagency review of the
draft joint text agreed in January, 2007 after the first
round of technical negotiations. That text contained
ad-referendum agreed language and bracketed language that was
still contested. Not surprisingly, Indonesia has tended to
reaffirm Indonesia-proposed language and rejected
U.S.-proposed language. At the same time, however, Indonesia
has accepted three significant U.S. proposals. On balance,
the new text represents a step forward and a sign of
Indonesia's desire to reach a workable agreement, and
provides--we believe--a constructive basis for a further
round of negotiations.


4. (SBU) Background on NAMRU-2: NAMRU-2 is one of three
U.S. Navy overseas laboratories worldwide. NAMRU conducts
medical research on tropical diseases of interest to the U.S.
government in collaboration with host-country scientists.
NAMRU-2 has been operating in Indonesia since 1970 and
currently employs 18 U.S. citizens and 145 Indonesian staff.
In 2000, the Indonesian government allowed the 1970 MOU to
lapse but has permitted the unit to remain in operation on
the basis of the MOU pending negotiation of a new one.
Initial senior-level negotiations were held in November 2006
and a first round of technical negotiations followed in
January 2007 (reftels).

SOME PROGRESS


5. (SBU) Indonesia has adopted U.S. language in several areas
by:

-- Dropping the Ministry of Defense (MOD) as a joint
Executing Authority for the Indonesian side, leaving only the
National Institute of Health Research and Development in the
Ministry of Health (MOH);

-- Adopting in its entirety U.S.-proposed language on
intellectual property rights (IPR),drawn verbatim from a
U.S.-Indonesia tsunami early-warning agreement signed in 2006
and currently in force, now as an Annex to the agreement; and,

-- Noting in the preamble the past thirty years of
cooperation between NAMRU-2 and Indonesia.


6. (C) Mission Comment: The IPR language was not really in
dispute, as Indonesia did not present an alternative text,
and the agreed text reiterates provisions from a recent
U.S.-Indonesia agreement. The elimination of the MOD,
however, is an important concession. In the last round of
negotiations, the Indonesian side insisted on including the
MOD along with the MOH as responsible authorities. In our
view, MOD lacks the necessary medical expertise and has up to
now had no role in the management of NAMRU-2. Any MOD
involvement in the management of NAMRU-2 would have presented
problems. This concession is a modest sign that Indonesia

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recognizes the importance of preserving NAMRU-2's operational
effectiveness.

NO PROGRESS ON STATUS


7. (C) Indonesian and U.S. views remain fundamentally apart
on the legal status of personnel and related issues.
Indonesia has:

-- Retained, with numerous revisions, language on the legal
status of personnel which would grant Administrative and
Technical (A&T) status only to the Commanding Officer and the
Executive Officer and their dependents, leaving all other
U.S. personnel with no special status; and,

-- Sharpened Indonesia-proposed language stating that tax,
duty and other exemptions will be granted in accordance with
the prevailing laws and regulations of Indonesia (thus
linking these privileges directly to status).


8. (C) Mission Recommendation: We must press for A&T status
for all U.S. NAMRU-2 personnel and their dependents. This
issue, however, is perhaps the most difficult of all.
Recognizing that, Indonesian Presidential Adviser Dino
Djalal, a strong supporter of NAMRU-2, stated in the initial
senior-level round of negotiations that this issue might need
to be resolved by President Yudhoyono at the conclusion of
formal negotiations between the two sides (ref b).

PROBLEMATIC ISSUES


9. (C) On several issues, Indonesia has retained
Indonesia-only language which we would prefer to exclude from
the agreement but which does not appear to be a deal breaker
and therefore should be negotiable. Such language includes:

-- Retaining unnecessary reference in the preamble to a) the
Biological Weapons Convention (BWC) and b) the U.S.-Indonesia
Agreement on Cooperation in Scientific Research and
Technological Development, signed in 1972 and renewed on 1997
but allowed to expire in 2002;

-- Expanding the functions of the Joint Research Coordinating
Committee to include "inspection" and "auditing" of research
progress;

-- Retaining an Indonesia-only provision granting GOI
authorities "complete jurisdictions" with regard to NAMRU-2
premises and properties; and,

-- Limiting the duration of the agreement and subsequent
renewal to five years each, in lieu of the U.S. proposal for
an initial duration of ten years and automatic continuation
in force thereafter until terminated by either party.


10. (C) Mission Recommendation: The USG needs to determine
whether the provision for inspection and auditing, taken in
context, would grant Indonesia the legal right to audit
personnel and financial records, which are currently
off-limits. If these terms, as used in the MOU, do not pose
serious practical problems for NAMRU-2, we recommend
accepting them as part of the political ballast necessary to
gain Indonesian public support.

SAMPLE SHARING


11. (SBU) On several issues, Indonesia has reaffirmed
controversial language relating to the handling of biological
specimens. These issues are central to other ongoing
negotiations, notably with the World Health Organization,
(WHO) concerning the handling of samples of avian influenza
and other pathogens. This language includes:

-- Reference to the Preamble, the Convention on Biological
Diversity (1992) as reaffirming States' "sovereign rights
over their own biological resources," a convention which the
United States has signed but is not a state party to;


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-- Indonesia's right to take necessary measures and exercise
its jurisdiction over "misuse" of specimens and related
materials; and,

-- A reference to a Material Transfer Agreement (MTA)
contract in the handling of specimens.


12. (SBU) Indonesia also has retained the term "genetic
resources," in lieu of the U.S.-proposed term "genetic
material," in regard to the handling of specimens. The
Indonesian term appears to be tied to the Convention on
Biological Diversity, but it appears to be less problematic
than the other provisions in this area and may ultimately be
a term we could accept.


13. (C) Mission Comment: Ultimately the terms of NAMRU-2's
collaboration in this area will depend on the outcome of
these other negotiations. A final USG position on these MOU
issues should be deferred until those other negotiations are
completed, or these provisions should be replaced by a
general reference to external documents. Rather than hold
the NAMRU-2 MOU hostage to these negotiations, and perhaps in
any case because of the evolving nature of this area, we
should consider replacing most or all of the language
relating to sample sharing with a provision stating
essentially that "NAMRU-2 agrees to follow all Indonesian
laws and regulations regarding the export and import of
biological specimens." Such a statement would be factually
accurate, irrespective of the outcome of any sample-sharing
negotiations under way now.

NEUTRAL CHANGES


14. (SBU) Some changes would appear to be acceptable, pending
Washington's confirmation. These include:

-- Adding tuberculosis to the specified researched diseases;

-- Reaffirming references to "re-emerging" diseases as a
subject of research;

-- Retaining a reference to the training of Indonesians
(preamble only, no specifics provided);

-- Reaffirming "transfer of technology" and "exchange of
technology" (preamble and under forms of cooperation and
contributions); and,

-- Adding "symposia, workshops and conferences" to forms of
cooperation.


15. (C) Mission Comment: Training and transfer of technology
are marginal to NAMRU-2's contribution. That said, some
training and transfer of technology does occur. Inclusion of
such terminology, in the proper context, should therefore be
possible.

ACTION REQUEST


16. (C) Mission requests Washington agencies' review and
comments as soon as possible, with a view to scheduling the
next round of technical negotiations in January 2008.
Mission is forwarding by unclassified email an annotated
version of the draft Indonesian text for interagency review
and comment. In the foregoing discussion, we have divided
the issues into categories, as we see them, with an eye to
developing a forward-oriented strategy for the next round of
technical negotiations. We request Washington's comments
with an eye to which issues remain hard lines and which ones
allow some flexibility, in the interest of achieving some
compromises in the round ahead.


17. (C) This agreement will be a public document which most
likely will need to be ratified by the Indonesian legislature
(DPR) and will in any case receive critical DPR scrutiny.
The DPR has recently challenged the Yudhoyono Administration
regarding perceived failures to preserve Indonesian national
interest in international agreements. The debate over

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Indonesia's support of UNSCR 1747 on Iran and the DPR's
continued rejection of a Defense Cooperation Agreement with
Singapore are two recent examples. Some of the Indonesian
language in the draft NAMRU-2 agreement may be aimed
primarily at pre-empting such criticisms rather than
fundamentally altering the professional collaboration at
NAMRU-2 or creating a pretext for suspending cooperation.
Indonesia continues to work with NAMRU-2 now, despite its
ability to close NAMRU-2 at any time. Mission therefore
requests Washington's careful consideration whether some
provisions, even if not entirely to our liking, could be
accepted to help secure public support for the agreement.
HUME