Identifier
Created
Classification
Origin
08CANBERRA140
2008-02-15 05:55:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Canberra
Cable title:  

RUDD HAS A VERY GOOD WEEK

Tags:  PGOV AS 
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UNCLAS SECTION 01 OF 02 CANBERRA 000140 

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E.O. 12958: N/A
TAGS: PGOV AS
SUBJECT: RUDD HAS A VERY GOOD WEEK

REF: A) CANBERRA 126 B) CANBERRA 125

UNCLAS SECTION 01 OF 02 CANBERRA 000140

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SENSITIVE
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E.O. 12958: N/A
TAGS: PGOV AS
SUBJECT: RUDD HAS A VERY GOOD WEEK

REF: A) CANBERRA 126 B) CANBERRA 125


1. (SBU) SUMMARY: Kevin Rudd burnished his leadership image
this week by issuing an emotional apology to indigenous
Australians, particularly the "Stolen Generations" and by
coolly managing his first foreign crisis, the attack on East
Timorese President Ramos-Horta. By closing the apology issue
Rudd won points as a national conciliator. In his swift
measured dispatch of security personnel to Dili following
Ramos-Horta's shooting, Rudd showed decisiveness in reacting
to a foreign emergency - an attribute earlier claimed as the
province of former Prime Minister John Howard. Rudd easily
fended off concerns about increasing inflation by blaming the
Howard government, but will be under greater pressure to show
results once his first budget is submitted in May. END
SUMMARY

APOLOGY TO INDIGENOUS AUSTRALIANS CLAIMS MAJORITY SUPPORT


2. (SBU) The first big initiative taken by Rudd as Prime
Minister was an act of symbolism that appealed to the Left:
an apology to the Stolen Generations - which refers to the
Aboriginal children who were taken from their families by
white Australia between 1910 and 1970. Former Prime Minister
Howard's refusal to use the term "apology" had been popular
in his earlier terms. Issuing a formal apology had been a
long-standing Australian Labor Party (ALP) policy but one
which Rudd - determined not to be "wedged" by then Prime
Minister Howard on issues such as this - had barely mentioned
in Opposition. This week however, with the weight of office
behind him and still highly popular, Rudd judged the time was
right to issue the apology -- particularly when he ruled out
government compensation.

RUDD SCORES MAINSTREAM POINTS WITH A "LEFT" ISSUE


3. (SBU) While a Galaxy poll found 55 percent of respondents
favored an apology and 36 percent opposed, the overwhelming
majority of those interested in this issue are from the Left.
Importantly, the media was also behind Rudd on this issue.
Nevertheless, the image of Rudd was one of a compassionate,
unifying Prime Minister. His joint presentation with
Opposition Leader Brendan Nelson of a gift from the Stolen
Generations to the Speaker, and his invitation to Nelson to
co-lead a "joint policy commission" to address Aboriginal
living conditions, is likely to be welcomed by a public tired
of partisan bickering between the parties.


IN HIS COMFORT ZONE ON EAST TIMOR


4. (SBU) Rudd also stepped out in his handling of the crisis
in nearby East Timor. Rudd called a press conference at
Parliament House following the shooting of the East Timorese
President Jose Ramos-Horta on February 11, calmly briefing
journalists on developments and announcing the decision by
the Cabinet to send several hundred additional troops and
police to East Timor. The next day, the head of the East
Timor army suggested international forces could have done
more to prevent the shootings - a provocative statement.
Rather than hitting back with counter-accusations, Rudd took
the wind out of his sails by calmly pointing out that the
Australian Defense Force was not responsible for the
President's close personal protection. Rudd then announced
that on February 15 he would fly to Dili for meetings with
Prime Minister Xanada Gusmao. On the key issue of national
security and foreign affairs - an issue where the Coalition
has consistently led the ALP in opinion polls - ex-diplomat
and Foreign Affairs spokesman Rudd demonstrated his ability
Qand Foreign Affairs spokesman Rudd demonstrated his ability
to make a swift, appropriate response and keep a cool head.

IN PARLIAMENT MASTER OF QUESTION TIME


5. (SBU) In the first Question Time of the year, eagerly
awaited by the Press Gallery, the Opposition targeted the
Government on the economy, particularly inflation. Unlike
some of his Ministerial colleagues, who appeared less than
comfortable under the opposition grilling, Rudd maintained a
cool and calm demeanor, making little reference to his notes
as he demonstrated a sound grasp of the economic facts and
figures. In the face of very spirited attacks by the
Opposition MPs, Rudd remained unflustered.

RUDD SETS INFLATION AS HIS LONG-TERM PRIORITY ISSUE


6. (SBU) Developments in East Timor and the apology
overshadowed what Rudd has declared is his Government's top
priority - fighting inflation. On Monday, the Reserve Bank
issued its quarterly statement on monetary policy which

CANBERRA 00000140 002 OF 002


warned of continuing inflationary pressures and, as a result,
further interest rate rises are likely. To minimize the
political damage, the Government is for the time being able
to argue to the public that inflationary pressures are the
Howard Government's legacy. How long this argument will be
viable is open to question. In May, Treasurer Wayne Swan
will hand down his first budget, with the goal of putting
downward pressure on inflation by reigning in spending. This
could put the first dent in the Government's popularity. At
this point in time however, Rudd is riding a wave of
popularity and has come through his first parliamentary
sitting week of the new government appearing up to the job
and fully in charge.


MCCALLUM