DEPUTY SECRETARY'S MEETING WITH NORWEGIAN FM

C O N F I D E N T I A L COPENHAGEN 000337

SIPDIS

E.O. 12958: DECL: 06/01/2018
TAGS: PGOV PREL SENV PBTS MARR KGHG ETRD NO
SUBJECT: DEPUTY SECRETARY'S MEETING WITH NORWEGIAN FM
STOERE IN GREENLAND

Classified By: Regional Environmental Officer Erik Hall.
For reasons 1.4 (b&d).


1. (C) Summary: In a May 28 meeting before the start of the
Arctic Ocean Conference in Ilulissat, Greenland, Norwegian FM
Jonas Gahr Stoere and Deputy Secretary Negroponte discussed
Arctic issues, Afghanistan, Pakistan, cluster munitions, and,
briefly, the Doha Round of trade negotiations. Stoere raised
a lawsuit of great concern to Norway, pending in a Tampa
district court, which Legal Advisor Bellinger pledged to look
into. End Summary.


2. (U) Background: D was accompanied to this meeting by OES
A/S McMurray, Department Legal Advisor Bellinger, D Special
Assistant Wittenstein, and REO Hall. FM Stoere was
accompanied by Joerg Willy Bronebakk, Norwegian Ambassador to
Denmark; Rolf Einar Fife, MFA Legal Affairs DirGen; Torgeir
Larsen, MFA Deputy Director General of the Minister's
Secretariat; and Robert Kvile, MFA Deputy Director General
for the High North, Resources and Russia.

Russia/High North/Arctic Issues
--------------


3. (C) FM Stoere expressed appreciation for U.S.-Norwegian
intelligence cooperation and declared a "forward-leaning"
Russia to be the focus of its "High North" policy. Stoere
characterized Norway's bilateral relationship with Russia as
"quite correct and constructive," citing energy potential in
the Barents Sea and jointly managed fisheries as examples.
He would be meeting with FM Lavrov in two weeks for talks on
both sides of the border near Murmansk. Stoere noted that PM
Putin had recently given a 10-year tax break to Russian oil
and gas companies, reflecting the first dip in production.
Analysis of international energy supplies might be another
area in which the U.S. and Norway could cooperate, Stoere
said. He also noted that Norway now supplies natural gas to
the U.S. via its LNG facility in Hammarfest, which ships to
Baltimore port. Asked by the Deputy Secretary about
environmental cooperation with Russia, Stoere said there had
been cooperation on environmental standards under the Law of
the Sea (UNCLOS),but there is a need for new policies to
match increased activity in the Arctic region. Russia had a
strongly skeptical scientific tradition when it came to
climate change, Stoere said.


4. (C) Turning to the Arctic Council, Stoere said Norway
believed the Council should be made "more political, in the
right sense of the word." He would try to convene a
sub-ministerial meeting in the fall to do so, before Norway
hands the AC chair to Denmark in March, 2009. The Council's
technical groups work fine, but perhaps it would be useful to
debate the implications of various studies, and briefly
discuss the results of this conference. A/S McMurray said
this was the first we had heard of such a meeting and asked
for further details. She added that we have at times
considered the AC as unwieldy for political discussions. A
smaller group such as the five states at this conference
might be more conducive to political discussions. FM Stoere
agreed, citing the U.S.-Norway North Atlantic dialogue as a
model for discussion among friendly states. Asked by the
Deputy Secretary about Canada, FM Stoere said Norway had a
similar relationship with Canada, which was traditionally
focused on indigenous issues, but strategic issues were now
"on the rise." Norway and Canada have exchanged information
on the Arctic continental shelf, he said.


5. (C) Asked whether the UNCLOS territorial claim commission
would settle boundaries, FM Stoere said it is for states, not
the commission, to settle overlapping claims by negotiation.
Norway will have competing claims with Russia. Legal Advisor
Fife said the southern part of their respective Arctic claims
had the greatest potential to conflict. Asked about the
Russians, FM Stoere said it appeared there were internal
divisions within the Russian government over claims. The
Duma is conveniently blamed by the Russian executive for
being difficult. Asked by the Deputy Secretary if he was
E suggesting creation of an alternate body to adjudicate
claims, Stoere said no, Norway viewed the UNCLOS structure as
adequate.


6. (C) The Deputy Secretary told Stoere the Administration
continued to urge the U.S. Senate to ratify UNCLOS, and had
nearly completed an internal review of U.S. policy in the
Arctic. A/S McMurray added that existing policy, dating to
1994, needed updating to take into account changes due to
climate change and other emerging priorities.

Afghanistan
--------------


7. (C) Turning to Afghanistan, FM Stoere said the June 12
meeting in Paris will be very important. Norway has
increased its civilian, anti-corruption aid by 50 percent,
and sees a need to coordinate international efforts in this
area. The Deputy Secretary voiced strong support for new UN
envoy Kai Eide. Stoere said the UN envoy needs a "political
mandate to pick up the phones." Without progress, there is
danger of "donor fatigue," Stoere warned, as Afghanistan
becomes increasingly occupied with domestic infighting. He
wondered how much that infighting reflected President
Karzai's long term versus election-driven perspective. The
Deputy Secretary said the long term perspective must include
not just punishing corruption, but also the need to build
capacity to implement the rule of law and effective policing.
FM Stoere agreed, saying the U.S. emphasis on rule of law
was "really important."

Pakistan
--------------


8. (C) Asked by the FM about his views on Pakistan, the
Deputy Secretary said unresolved political tensions between
Asif Ali Zardari and Nawaz Sharif had distracted them from
countering militant activity. The Deputy Secretary said the
U.S. would like to put our relations with Pakistan on a
firmer footing, and to that end has invested $150 million
each year in a five-year program to support civilian
institutions in the tribal areas. We are hopeful the
Japanese and Saudi governments might offer additional
support, he said.

Cluster Munitions
--------------


9. (C) The Deputy Secretary raised the issue of cluster
munitions talks, mentioning the recent visit to Oslo of
Acting U/S for Arms Control and International Security, John
Rood. FM Stoere expressed hope that talks in Dublin would
achieve consensus, saying discussions there had narrowed to
the issue of definitions and the issue of interoperability
"It was never our intention to seek a total ban," he said,
"which would be impractical and unrealistic." Instead,
Norway sought consensus including exceptions and adequate
transition time of 8-10 years, he said. Interoperability is
as important to Norway as to others, he said, and Norway had
tried hard to find alternatives. The Deputy Secretary
emphasized U.S. concerns over interoperability.

Court Case Against Statoil in Tampa
--------------


10. (C) FM Stoere raised an anti-trust class action suit
lodged April 23 in a Tampa district court against Norway's
Statoil, Mexico's Pemex, and Saudi oil companies. Statoil is
facing a July response date. FM Stoere said the suit
violated key principles of exclusive sovereign rights, and
warned that it could negatively impact perceptions of
investment security in the United States. Legal Advisor
Bellinger told Stoere that the USG shared his concerns. The
Department does not usually involve itself in these cases
until they reach the appellate level, but would look into the
case. Norwegian Legal Advisor Fife said Norway had shared
its concerns in the IEA, and that a "nervous feeling is
percolating through our systems and could begin to affect
investments."

Doha Round
--------------


12. (C) FM Stoere said he would soon meet with USTR Schwab
to discuss WTO negotiations. The Deputy Secretary said it
does not look promising, and that Brazil was a concern, but
that the U.S. had not given up hope.


13. (U) The Deputy Secretary's party reviewed this cable.
CAIN