TIMOR-LESTE FM DA COSTA'S SEPT. 12-13 WASHINGTON

C O N F I D E N T I A L SECTION 01 OF 02 STATE 132248

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/19/2017
TAGS: PREL PGOV TT
SUBJECT: TIMOR-LESTE FM DA COSTA'S SEPT. 12-13 WASHINGTON
VISIT

Classified By: EAP A/S Christopher R. Hill, Reasons 1.4(b) and (d)


1. (C) SUMMARY: New Timor-Leste Foreign Minister Zacarias
Albano da Costa met separately with Under Secretary Burns,
Under Secretary Dobriansky, and EAP Assistant Secretary Hill
September 12-13 to discuss the new Timorese government's
policy priorities and challenges. The Timorese government
will tackle immediate problems first, including the budget
and internally displaced persons (IDPs). In the longer-term,
it seeks to strengthen state institutions and pursue economic
development. U/S Burns, U/S Dobriansky, and A/S Hill
reaffirmed U.S. support for Timor-Leste's continued
development and for maintaining a UN peacekeeping mission in
the country. End summary.


2. (C) GOVERNMENT PRIORITIES: FM Da Costa briefed U/S Burns
on the coalition government's commitment to stabilizing
Timor-Leste through resolving urgent problems and
strengthening state institutions. Initial priorities are
passage of a transitional budget (through December 2007),
finding homes for the IDPs, expanding youth employment, and
reform of public sector institutions such as the police. The
Government of Timor-Leste (GOTL) plans to name an ambassador
to the United States soon and add two new positions to its
embassy in Washington. U/S Burns reaffirmed the U.S.
commitment to our close friendship with Timor-Leste and
pledged U.S. government support for Timor-Leste as the
government addresses the challenges ahead.


3. (C) INTERNATIONAL PRESENCE: Da Costa praised the
Australian-led International Stabilization Force (ISF) for
playing a critical role in maintaining public security.
(Note: the GOTL asked that the ISF remain for two more years
during Australian Foreign Minister Alexander Downer's visit
on August 30. End note.) Amending his September 10 remarks
at the UN Security Council requesting a five-year extension
of the UN Integrated Mission in Timor-Leste (UNMIT),FM Da
Costa said the country needed the UN peacekeeping mission to
continue for at least another two years. He acknowledged a
Japanese proposal to include Timor-Leste in the work of the
new UN Peacebuilding Commission (PBC),but emphasized that
the GOTL desired any PBC operations supplement rather than
replace UNMIT. U/S Burns underscored U.S. government support
for maintaining a UN peacekeeping mission in Timor-Leste.


4. (U) ECONOMIC POLICY: One of the new government's biggest
concerns is how to improve conditions for the poor, Da Costa
said. He praised U.S. assistance to date, particularly
programs to strengthen the private sector, to strengthen
property rights, and to promote production of cash crops such
as coffee. The new government seeks to enact a land title
law and to simplify procedures to start a business. It also
seeks to re-engage with the Millennium Challenge Corporation
(MCC) to negotiate a Compact Agreement. U/S Burns indicated
the U.S. desire to assist the GOTL in implementing economic
reforms.


5. (C) RELATIONS WITH INDONESIA: The FM described relations
with Indonesia as good and expanding. He said that he hoped
to meet FM Hassan Wirajuda in October to discuss oustanding
issues to conclude an agreement by December, when PM Gusmao
visits Jakarta. The issues concern the border, visas,
Timorese students in Indonesia, access to Timor-Leste for
business travelers from West Timor, and pensions for former
civil servants. Indonesia planned to open a cultural center
in Dili. Da Costa also noted that President Jose Ramos-Horta
hoped to meet with President Susilo Bambang Yudhoyono at the
UN General Assembly (UNGA) in New York.


6. (C) POLITICAL SITUATION: In a separate meetings with U/S
Dobriansky and A/S Hill on September 13, FM Da Costa noted
the fragile domestic political situation, emphasizing that
the FRETILIN Party had found it hard to accept the loss of
its parliamentary majority. He explained that the coalition
government is also working to find a way to include the
opposition in the decision-making process such as through
membership in specialized parliamentary committees and
participation in other organs of government. U/S Dobriansky
and A/S Hill welcomed FRETILIN's participation in the
Parliament as a positive development and urged that the
government act promptly on urgent problems such as the IDPs.
A/S Hill also agreed to meet with President Ramos-Horta at

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UNGA.


7. (C) 1999 ACCOUNTABILITY: In his meeting with U/S
Dobrianskly, FM Da Costa also discussed justice and human
rights issues. He defended the ongoing inquiry by the
bilateral Commission on Truth and Friendship (CTF) into
accountability for the crimes against humanity committed in

1999. Noting that the body's Terms of Reference
hypothetically allow for it to recommend amnesty, the FM
dismissed amnesty as politically impossible. On the question
of prosecuting suspects, he emphasized that Timor-Leste and
Indonesia should be allowed to find their own way to deal
with the issue on a bilateral basis. "A new generation whom
we know well is taking over in Indonesia and we wish to put
the past behind us," Da Costa concluded.
RICE