Identifier
Created
Classification
Origin
08CANBERRA1202
2008-12-01 09:26:00
CONFIDENTIAL
Embassy Canberra
Cable title:  

AUSTRALIAN VIEWS ON DECEMBER ASEAN MEETINGS IN

Tags:  PREL ECIN EFIN AS 
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ZNY CCCCC ZZH
P 010926Z DEC 08
FM AMEMBASSY CANBERRA
TO RUEHC/SECSTATE WASHDC PRIORITY 0596
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 9266
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 1129
RUEHUL/AMEMBASSY SEOUL PRIORITY 9625
RUEHKO/AMEMBASSY TOKYO PRIORITY 3308
RUEHWL/AMEMBASSY WELLINGTON PRIORITY 5539
RUEHBN/AMCONSUL MELBOURNE PRIORITY 5800
RUEHBAD/AMCONSUL PERTH PRIORITY 4070
RUEHDN/AMCONSUL SYDNEY PRIORITY 4010
C O N F I D E N T I A L SECTION 01 OF 02 CANBERRA 001202 

SIPDIS

STATE FOR EAP/RSP AND EAP/ANP

E.O. 12958: DECL: 12/01/2018
TAGS: PREL ECIN EFIN AS
SUBJECT: AUSTRALIAN VIEWS ON DECEMBER ASEAN MEETINGS IN
THAILAND

REF: STATE 101453

Classified By: Acting POL Chief John W. Crowley for reasons 1.4 (b)(d)

SUMMARY
-------
C O N F I D E N T I A L SECTION 01 OF 02 CANBERRA 001202

SIPDIS

STATE FOR EAP/RSP AND EAP/ANP

E.O. 12958: DECL: 12/01/2018
TAGS: PREL ECIN EFIN AS
SUBJECT: AUSTRALIAN VIEWS ON DECEMBER ASEAN MEETINGS IN
THAILAND

REF: STATE 101453

Classified By: Acting POL Chief John W. Crowley for reasons 1.4 (b)(d)

SUMMARY
--------------

1. (C) Australia expects only modest outcomes from the ASEAN
meetings in Thailand during mid December, to include adoption
of the ASEAN Charter and the development of the Human Rights
Body, but believes these achievements could be threatened by
Thailand's current political tensions. In the ASEAN Plus
Three, Australia expects China to seek a further evolution of
the Chiang Mai Initiative - moving from bilateral to
multilateral currency swap arrangements -- to help ease
current financial difficulties. In the East Asia Summit --
the only meeting in which Australia is a full member -- the
GOA anticipates approval of a Thai proposal on Disaster
Management and an Australian-proposed Statement on Finance
aimed at bolstering conclusions reached at the recent G-20
meeting in Washington. Australia also hopes the
ASEAN-Australia-New Zealand Free Trade Agreement can be
signed during the ASEAN sessions. Prime Minister Rudd will
attend the East Asia Summit, where he will promote his vision
for an Asia Pacific Community by 2020. End summary.


2. (C) Poloffs discussed the December 15-18 ASEAN round of
meetings in Thailand with Lynda Worthaisong, Director for
ASEAN Regional Issues, Department of Foreign Affairs and
Trade (DFAT),on November 25. Worthaisong noted Thailand, as
ASEAN Chair, has struggled to maintain focus in the midst of
its political difficulties, as evidenced by the almost daily
revisions of agenda items. One result of the unrest was to
force the Thai Government to move the ASEAN venue from
Bangkok to Chiang Mai. Moreover, Thailand's domestic
political stalemate also has meant the Thai Parliament must
approve any decision by the Royal Thai Government (RTG),
which could delay or block Thailand's ability to join
consensus on key ASEAN outcomes, such as the entry into force
of the ASEAN Charter, she explained. Accordingly, Australia
had only modest expectations for the ASEAN meetings.


3. (C) In addition to the ASEAN Charter, Worthaisong
identified the development of a Human Rights Body as another

possible outcome of the ASEAN Summit, but caveated that with
a caution that the terms of reference agreed might make the
entity ineffective. She added Australia hoped the
ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
ccould be signed during the ASEAN meetings. Negotiations for
the AANZFTA, originally proposed in 2004, were concluded at
the 13th ASEAN Economic Ministers - Closer Economic Relations
consultations in Singapore in August 2008.


4. (C) At the ASEAN Plus Three, Worthaisong said China was
expected to propose a statement that would expand and
mulitlateralize the system of bilateral currency swaps and
repurchase agreements that had been established under the
2000 Chiang Mai Initiative. The statement would call for
some International Monetary Fund conditionality, for example
in the case of Japan.


5. (C) Worthaisong said Australia anticipated two main
outcomes from the East Asia Summit. The first was a
RTG-initiated Disaster Management Proposal that would aim to
institutionalize cooperative arrangements required to respond
Qinstitutionalize cooperative arrangements required to respond
to regional disasters, building on the experience of the
December 26, 2004, Indian Ocean tsunami. The second,
expected to be finalized after consultations with Japan, was
an Australian proposed Statement on Finance that would seek
to build confidence in East Asia's financial handling and to
reinforce the conclusions of the G-20 meeting in Washington
on November 14-15, 2008. The Statement, prefaced by a
discussion of the regional impact of the global financial
crisis, would encourage fiscal stimulus in East Asia; endorse
the G-20 leaders' approach; reject protectionism; strongly
urge a conclusion to the DOHA round; and commend the ASEAN
Plus Three financial statement, if issued. The Statement
would refer to the G-20 conclusions on the adequacy of
resources of the International Monetary Fund and regional
development banks, and call for reform of interantional
financial architecture, including an insistence that
developing and emerging markets must be part of the global

CANBERRA 00001202 002 OF 002


solution. According to Worthaisong, Australia planned to
suggest a study of East Asia's financial sector
capacity-building needs, but acknowledged that there were
suspicions within ASEAN related to Australian, New Zealand
and Indian interests in the finance sector.


6. (C) Other issues on the agenda for the EAS, according to
Worthaisong, included Burma, DPRK, finance, energy security,
education, avian influenza, and the long-standing Japanese
proposal for an FTA among the 16 members of the East Asian
Summit. An initial feasibility study on the EAS FTA was
completed earlier in the year, she noted, and the EAS was
expected to endorse further Track II discussion. While there
were some advantages of an EAS Free Trade Agreement over the
ASEAN Plus Three FTA, Worthaisong said there were
sensitivities that the EAS FTA not be seen to be competing
with the ASEAN Plus Three FTA. Nonetheless, Australia wanted
to see both FTA proposals move in parallel with one another.
An EAS FTA would complement Australia's bilateral FTAs with
Malaysia and Singapore, as well as a proposed bilateral FTA
with Indonesia.


7. (SBU) Worthaisong noted Prime Minister Rudd, who would be
participating in the East Asia Summit for the first time,
would use the occasion to promote his vision of an Asia
Pacific Community (APC). She added that Richard Woolcott,
the former DFAT Secretary and veteran diplomat named by Rudd
to be his special envoy for the APC, hoped to visit
Washington as early as possible, preferably in February 2009,
in order to brief and seek support of the incoming
administration, including the new President, Secretary of
State and U.S. Trade Representative, about the Asia Pacific
Community concept.

MCCALLUM