FIJI INTERIM FINANCE MINISTER USES WASHINGTON WB/IMF VISIT

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TAGS: EFIN ECON PREL PGOV FJ
SUBJECT: FIJI INTERIM FINANCE MINISTER USES WASHINGTON WB/IMF VISIT
TO PUSH HIS AND THE REGIME'S AGENDAS


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Summary
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1. (SBU) In Washington for meetings of the IMF and World Bank, Fiji
Interim Finance Minister Mahendra Chaudhry made full use of the
opportunity to reach out to potential new partners and to USG
contacts as well. Chaudhry's calls on IMF, Brazilian, Indian,
Malaysian, Chinese, and other contacts played on the interim
regime's theme of finding alternative -- and less critical --
partners in the face of sanctions from its traditional allies. In
talks with IMF officials, Chaudhry sought assessments of the ailing
Fiji economy and its lackluster private sector. Talks with Brazil
and India focused on garnering help for Fiji's troubled sugar
sector. After a meeting at the State Department in which Chaudhry
proposed bilateral political talks, he suggested to the media the
USG had agreed. Washington corrected the record. End Summary.

MDB conversations and requests
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2. (U) Chaudhry's office issued a series of press statements during
the week on his Washington meetings portraying him as dynamically
pressing for economic and technical assistance for Fiji. The media
reported that in a meeting with World Bank East Asia and Pacific
President Francis Adams, Chaudhry secured an agreement to send a
team of World Bank officials to Fiji later this year to begin work
on an economic assessment. Chaudhry said the assessment report
would be submitted to the interim regime's "People's Charter"
process, which is looking at setting political and economic
parameters for future governments. Chaudhry is also reported to
have asked International Finance Corporation (IFC) Director Richard
Ranken for an IFC assessment of Fiji's private sector. The Fiji Sun
newspaper ran several articles touching upon Chaudhry's request that
the World Bank include small island states in "its strategic focus
for development solutions." Yet another press release highlighted
Chaudhry's thanks in his address to the joint IMF/WB meeting for
recent visits to Fiji by IMF staff and officials, and for the
upcoming regular Article IV visit scheduled for late November. He
said Fiji would also welcome help from the IMF in improving its
national statistics and in providing policy guidance for exchange
rate assessments.

"Look North" Bilaterals
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3. (U) Chaudhry also highlighted meetings with the Malaysian and
Indian finance ministers, Brazil's ambassador to the United States,
and the Exim Bank of China's assistant president. Headlines
included: "Malaysia promises assistance to Fiji" and "India offers
financial help," but details were less than forthcoming. Malaysia's
government was reported to be "prepared to assist Fiji with its
economic recovery." India's government reportedly "pledged to
assist Fiji with its financing requirements for capital projects"
and officials are scheduled to meet in January 2008 for further
discussions. Chaudhry reportedly used his meeting with Brazil's
ambassador to the United States to press for assistance reforming
Fiji's sugar industry. The meeting with Exim Bank of China
Assistant President Zhu Xinqian concerned the concessional loan
offer made by PRC Premier Wen Jiabao during his April 2006 visit to
Fiji.

Seeking political dialogue with the USG
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4. (SBU) In a meeting at Fiji's request with EAP PDAS Davies,
Chaudhry claimed Fiji was taking steps to meet an early 2009
election deadline and tried his best to justify the interim
government's "People's Charter" initiative. Davies challenged the
notion that the Charter was a legitimate, representative undertaking
and stressed the need for Fiji to commit to and then implement a
clear timetable for elections consistent with Fiji's existing
constitution. He also called for an immediate restoration of
judicial independence and civil liberties. Chaudhry proposed that
the interim government and the U.S. should engage in regular
political discussions. Davies only took that suggestion under
advisement, but Chaudhry's media release went further. A Fiji Daily
Post headline of Oct. 25 read "US keen on direct talks with regime."
Other Fiji media carried similar reports. State Department media
guidance corrected the record, and subsequent Fiji media reporting
has more accurately reflected the USG position. Articles from both
Fiji Times Online and Radio Fiji on October 25 reported that the USG
will not conduct "business as usual" with the interim government and
will limit engagement until a democratically elected government is
restored.
Comment
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5. (SBU) Chaudhry, whose single entry visa restricted him to
Washington and environs, made full use of the World Bank and IMF
gatherings to generate the sort of self-serving, often over-stated
publicity he has become known for, flying off to the wider world to
lobby for economic advantage, especially for Indo-Fijian sugar cane
farmers, his Fiji Labor Party's base. Like Prime Minister
Bainimarama's efforts the previous week at the Forum in Tonga,
Chaudhry's meetings in Washington were carefully orchestrated to
visibly seek out alternative partners in the face of censure and
sanctions from the likes of the United States, Australia and New
Zealand. Struggling with a superannuated sugar industry and an
economy ailing under the stresses of the coup and its aftermath,
Chaudhry painted the picture of the knowledgeable man of finance,
out to tap new sources of help and funding. His effort to appear to
be building a new bridge to Washington has, after USG correction,
probably played less well. End comment.

Dinger