FIJI UPDATE 3/22/07: CORRUPTION COMPARISONS; A

C O N F I D E N T I A L SECTION 01 OF 03 SUVA 000177

SIPDIS

SIPDIS

E.O. 12958: DECL: 03/22/2017
TAGS: PREL PHUM MARR ASEC FJ
SUBJECT: FIJI UPDATE 3/22/07: CORRUPTION COMPARISONS; A
PEOPLES' CHARTER; UPDATE ON "LOOK NORTH" RESULTS

REF: SUVA 170

Classified By: Amb. Dinger. Sec. 1.4 (B,D)

Summary
--------------

1. (C) A Transparency International poll taken in Fiji before
the coup indicates people were not shocked by corruption in
the Qarase era. Overall, Fiji stacked up quite favorably
compared to global and regional results, which suggests, no
surprise, that the need for a "clean up" was not really what
drove the coup. More evidence indicates the interim
government does not do well at coordinating policy, witness
confusion over a judicial salary cut. The interim government
proposes what would appear to be a lengthy process to develop
a "Peoples' Charter" for the future, a vision that will need
donor assistance. We sketch the state of play in the interim
government's effort to "look north" to China, India,
Indonesia, Malaysia, Japan, Korea, and Singapore. In short,
it appears not much has happened yet, in part because some of
the interlocutors have been reluctant to engage in business
as usual We would value feedback from capitals. Interim
government discussions with the EU are now to take place
April 18 in Brussels. End summary.

Fiji corruption: maybe not so bad
--------------

2. (U) Commodore Bainimarama has alleged that wholesale,
horrible corruption in the Qarase Government necessitated a
"clean up" campaign (i.e., a coup). This week, an
anti-corruption workshop sponsored by Transparency
International unveiled the results of a scientific poll taken
in Fiji last August, one of a global set of polls amalgamated
into the Global Corruption Barometer 2006 Report. The Fiji
format was face-to-face interviews with 1024 adults in major
urban areas in the pre-coup environment. Interestingly, the
comparative results show Fiji consistently scoring better
than the regional and global averages. People figured that
certainly corruption was present, but when asked if they had
ever paid a bribe, only 3% said they had. In general, Fiji
was in excellent company. Media were present at the TI
event, but so far nothing has hit the presses.

Confusion at the top
--------------

3. (SBU) Bainimarama held a media conference on March 19,
reading from a script. Included in a plea for civil servants
not to strike over a 5% salary cut was mention that the cut
applies to most everyone, even judges. March 20, Acting
Chief Justice Gates brought to the attention of interim
Attorney General Sayed-Khaiyum a constitutional provision
that clearly forbids any lowering of judicial salaries during
a judge's term. March 21, Sayed-Khaiyum, in effect, said:
"oops." Judges' salaries will not be automatically cut,
though Sayed-Khaiyum noted those judges who wish to join in
the nation's sacrifice may voluntarily do so. (Comment: The
clearance process for Bainimarama speeches needs work, and/or
the interim AG needs to become much more familiar with the
Constitution.)

A Peoples' Charter
--------------

4. (U) The Fiji presentation at the Forum Ministerial in
Vanuatu last week included in the fine print a plan for a
series of national consultations leading to a Peoples'
Charter to set out what needs to be done during the "clean
up" campaign, including realistic timelines for
implementation. This is to be a more comprehensive vision
than the three-plus year road map to elections Bainimarama
announced in February, and the aim is "to lay the foundations
for democracy, good governance, accountability, growth,
unity, and prosperity in Fiji. Apparently wrapped into the
process will be a "Way Forward Reform Agenda" (WFRA) for
which the interim government will seek international donor
contributions. (Comment: this sounds like a process that
could take a while.)

Fiji's "look north" -- some feedback
--------------

SUVA 00000177 002 OF 003



5. (C) With sanctions from Australia, New Zealand, the U.S.,
and other Western nations cramping the interim government's
style, Bainimarama announced several weeks ago a "look north"
policy. The interim government would seek friendship and
assistance from China, India, Indonesia, Malaysia, and
presumably Japan and Korea. Interim Foreign Minister
Nailatikau would lead "trade delegations" to the first-named
four. We have since learned Singapore is also on his list.
We are following up with Suva embassies to gauge results so
far.

-- China: We saw in the media that Nailatikau was to visit
Beijing this week. He reportedly is actually in Vanuatu for
the Melanesian Spearhead Group signing ceremony this Friday.
The PRC DCM in Suva said there have been no recent
discussions of a Nailatikau visit. When the Chinese Embassy
tried to clarify the media reports with Fiji MFA, they
"couldn't find anyone to talk to." Everyone seemed totally
wrapped up in last week's Vanuatu Ministerial and/or
preparations for EU negotiations re sugar reform aid. The
Chinese did have a meeting with interim Finance Minister
Chaudhry, but his only request was for an update on the
various projects proposed when Premier Wen visited last
April. China had no news to provide Chaudhry, in part
because, again, the interim MFA has not been available to
interact.

-- India: Per previous reporting from Suva and New Delhi,
Nailatikau had a friendly visit to India earlier this month
that reportedly is to result in some additional interactions.
The F$80 million sugar-industry assistance loan negotiated
under Qarase is going forward.

-- Indonesia: Jakarta stalled a Nailatikau request to visit
in mid-March by suggesting the timing was "not convenient."
The actual reason was reluctance to interact with the interim
government. The Indonesian Ambassador in Suva has read the
Vanuatu PIF Ministerial outcome as indicating interactions
are now OK. We noted that actually the interim government
has yet to commit to anything concrete, so possible offers of
assistance from the Forum await further developments.
Indonesia has had very modest assistance projects in Fiji and
no mil/mil assistance since 2000. To date, the interim
government has not asked for anything specific. Trade is
tiny and in Indonesia's favor.

-- Malaysia: Fiji's previous post-coup governments in 1987
and 2000 sought and received some assistance from Malaysia.
Nailatikau is seeking meetings in KL, and the Malaysian
Foreign Minister is willing to engage but no dates have been
agreed. The Malaysian High Commissioner noted that most all
their past development-assistance efforts to Fiji failed, so
she is skeptical of offering more. Some Malaysian logging
interests, already deeply into the Solomons and PNG, have
made "very limited" offers to harvest in Fiji, but they seem
not at all concerned whether a deal is struck. More
generally, Malaysian businesses are not perceiving post-coup
Fiji as an attractive prospect. Malaysia has long provided
military training slots to the RFMF, around 20-24 per year.
Post-coup, KL offered only 13 slots for 2007. When the RFMF
expressed surprise, KL offered no explanation, but none was
really needed.

-- Japan: At least two interim government ministers have
sought to travel to Tokyo and were surprised to learn of
Japan's visa sanctions. One was Tourism Minister
Rounds-Ganilau. Nailatikau may well have been the other.
The Japanese Ambassador in Suva is engaging with the interim
government, including with Bainimarama's PermSec, and has
lobbied in particular for removal of the emergency
regulations. Japan is also interested in finding ways to
assist the return of Fiji's judicial system to legitimacy.
We were told the interim government has not yet asked Japan
for any specific assistance of any sort.

-- Korea: While Seoul has not imposed sanctions, Korea does
have several post-coup policies in place: 1) no recognition
of the interim government; 2) continue modest amounts of
humanitarian assistance (volunteers, medical aid); 3) no

SUVA 00000177 003 OF 003


response as yet to "look north" inquiries. The Korean
Ambassador in Suva is not meeting with ministers, though
interactions continue at lower levels. Korea is prepared to
consider sanctions "if the situation worsens." PM Qarase had
been invited to visit Seoul in January (brrr); the invitation
has not been extended to Bainimarama. The Korean Ambassador
suggested to us that nobody has asked Seoul to impose visa
sanctions on RFMF and interim government leaders. Korean
Airlines Nadi-Seoul three-times-a-week service offers the
only relatively convenient way for Fiji leaders under visa
sanctions to reach the world beyond the Pacific, and the
Ambassador acknowledged interim government officials have
increased the load factors.

-- Singapore: As there is no Singapore Embassy in Suva, we
would value insights from elsewhere about any interim
government contacts with Singapore.

-- Note re the EU: It now appears the EU-interim government
discussion under Cotonou Agreement auspices to determine the
fate of some US$200 million in assistance, mostly for sugar
reforms, will take place April 18 in Brussels.
DINGER