PEACE CORPS AND KIRIBATI: GOOD NEWS ON AIR SERVICE

UNCLAS SUVA 000428 SIPDIS SIPDIS FOR PEACE CORPS DIRECTOR TSCHETTER AND ALENE ZANGER E.O. 12958: N/A TAGS: PREL EAID PGOV KR SUBJECT: PEACE CORPS AND KIRIBATI: GOOD NEWS ON AIR SERVICE REF: SUVA 398 ¶1. (U) Following up on reftel, the Australian High Commissioner reports that both Air Kiribati aircraft have been flying domestic routes routinely in recent weeks. When the CASA plane arrived back from Australia in late July, there was an initial problem when a Kiribati agency withheld fuel, purportedly because a bill hadn't been paid. The Tong Government surmised "political interference" by opponents, sacked the agency board, and got fuel flowing. Australia still plans to place two engineers in Tarawa to build local aircraft-maintenance capacity. One will arrive shortly; AUSAID is attempting to recruit a second. AUSAID is prepared also to provide technical assistance for a business plan to incorporate an additional two aircraft, either Chinese Y-12s or Canadian Twin Otters, into the Air Kiribati fleet. The next step, a Kiribati Government proposal for the TA, hasn't happened yet. The Aussies get the impression President Tong is serious about solidifying Air Kiribati service, including by purchasing the additional aircraft and, if necessary, tapping the Kiribati Trust's reserve fund to do so. Comment -------------- ¶2. (U) Per reftel, given the improved domestic air service and the Australian High Commission's willingness to join with Peace Corps to address medical issues, we believe a full-scale Peace Corps program in Kiribati should resume. DINGER