EAP PDAS DAVIES FEB 27 VISIT TO SUVA

C O N F I D E N T I A L SECTION 01 OF 06 SUVA 000085

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/28/2018
TAGS: PREL PGOV CJAN PHUM FJ
SUBJECT: EAP PDAS DAVIES FEB 27 VISIT TO SUVA

REF: A. SUVA 075


B. SUVA 072

C. SUVA 9 (FW)

D. SUVA 60 (BUADROMO)

Classified By: Amb. Dinger. Sec. 1.4 (B,D).

Summary
--------------

1. (C) EAP PDAS Davies met with the key players in Fiji on
Feb. 27, including interim PM Bainimarama. Davies stressed
to all the U.S. continuing interest in a return to
legitimate, democratically-elected governance as soon as
possible. The shocking expulsion of the Fiji Sun publisher
had taken place the day before, and Davies used that example
to emphasize the need for the interim government (IG) to
protect human rights, including media freedom. The IG argued
it respects media freedom, but not "incitement."
Bainimarama, in particular, expressed concern that ethnic
Fijians might roll into Suva and cause violence. Deposed
Opposition Leader Beddoes described a plan to accent public
unhappiness with the IG via a "yellow ribbon" campaign.
Bainimarama said plans for an election around March 2009 are
on track, though he emphasized the military's view that
"fundamental principles" which motivated the December 2006
coup must be addressed before Fiji can return to democratic
governance. In the IG's view, the National Council for
Building a Better Fiji (the People's Charter process) is the
vehicle for addressing those fundamental issues. Others
actors, including the Commonwealth Secretariat, are
attempting to set up political dialogues, though how much
flexibility Bainimarama will be prepared to show is a real
question.


2. (C) Davies reiterated to Bainimarama and others that U.S.
ties to Fiji and the Pacific are only growing stronger, and
it is in that context that we practice "tough love" toward
the IG and its policies. Bainimarama complained at length
about the international community's unwillingness to embrace
his vision. Bainimarama inquired about the U.S. elections,
noting he met Senator McCain (in 2005). On the Fiji economy,
Bainimarama and Finance Minister Chaudhry both gave upbeat
assessments. Others were considerably less confident.
Davies urged Chaudhry to ensure the American company Fiji
Water receives fair treatment by tax and customs authorities.
In a meeting with Davies, Virisila Buadromo, who will
receive an International Women of Courage award in March,
said she is honored, and she hopes the IG will allow her to
travel to Washington. After a full day, Davies was left with
a strong impression that Fiji's troubles continue to fester,
and pressures may even be increasing. Davies' media
conference resulted in excellent front-page coverage in all
three newspapers, accenting U.S. engagement. End summary.

A full and varied schedule: Bainimarama the key
-------------- --

3. (U) In a visit to Suva on Feb. 27, EAP PDAS Glyn Davies
met with interim PM Frank Bainimarama, interim Foreign
Minister Ratu Epeli Nailatikau, interim Finance Minister
Mahendra Chaudhry, deposed PM Laisenia Qarase (accompanied by
political advisor Tupeni Baba),deposed Opposition Leader
Mick Beddoes, Fiji human-rights activist Virisila Buadromo,
PNG High Commissioner, and Chair of the Pacific Islands Forum
(PIF)-Fiji Working Group, Peter Eafeare, and EU heads of
mission. Davies also held a media conference and taped Fiji
TV's "Close Up" program for airing on Sunday. The meeting
with Bainimarama followed from invitation on the margins of
the UNGA last September. The meeting lasted for an hour,
well over the allotted time. The tone was cordial, though
tough issues were discussed. Most of the following
paragraphs key on themes from the Bainimarama meeting,
weaving in views from other meetings as appropriate.

Media freedom and the Hunter expulsion
--------------

4. (C) The meeting with Bainimarama began and ended with
discussion of the IG's expulsion on Feb. 26 of Fiji Sun
publisher Russell Hunter, an Australian citizen. Davies
expressed concern that the sudden and harshly executed act
was an attack on media freedom, noting that suppressing
opponents is a slippery slope which can actually increase
dissent. Davies pressed Bainimarama and others to allow
Hunter to return to Fiji. Bainimarama claimed he has

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protected media freedom ever since the December 2006 coup;
however, "incitement cannot be allowed." Bainimarama said
the IG has evidence, including e-mails, that shows Hunter was
intending to incite violence by the indigenous community.
Bainimarama suggested that, contrary to speculation, the
expulsion "did not have much to do" with recent Fiji Sun
articles exposing alleged tax evasion by Chaudhry (reftels).
The IG "has to draw the line somewhere. There must be
limits." Davies queried how the media are expected to know
that line. He urged the IG to allow a free flow of
information on both sides, permitting a war of ideas.


5. (C) When Davies raised the Hunter case at the Foreign
Ministry, Nailatikau responded that Fiji "needs to keep up
with international norms of behavior. Many here are blind to
that." Nailatikau said he is sure there was a "hint of
politicizing" in the Hunter case, noting Chaudhry deported
Hunter previously, before the coup in 2000. Chaudhry, in his
meeting with Davies, said the expulsion of Hunter was "a
national security issue" and had no connection to Chaudhry's
own tax case. Chaudhry described "absolute media freedom" in
Fiji, even though "the media are constantly attacking, and
80% of their stories on the IG are negative." He revealed
that the Fiji Human Rights Commission's report on media
freedom in Fiji would be released later in the week. (See
septel.)

The public mood is worrying
--------------

6. (C) Bainimarama repeatedly expressed concern about
"incitement" of the indigenous community. He said the
peoples of Naitasiri and Rewa (nearby provinces) might flow
into Suva if sufficiently stirred up. The military would
have to "put a stop to marching down the street." If the
military has to focus on such activities, "the races we want
to protect" could be endangered (i.e., the ethnic-Indians
that many ethnic-Fijians perceive to be supporting the IG
could become targets of violence). Bainimarama said his
strategy since Dec. 2006 has been for troops to undertake
public-relations efforts in villages to steer the indigenous
population away from mass action. "That has worked, but we
are running short of financing and people to send out."
Bainimarama proudly said the military "stood up to the test
in 2000 and 2006. When Davies suggested the worst outcome
would be a violent confrontation between the military and
others, Bainimarama said he warned his Military Council just
before Dec. 2006 of two dangers: that the people might think
the event is "another coup" (rather than a clean-up
campaign),or that a perception might arise that the event
works against Fiji's best interests. Bainimarama emphasized,
"We are sticking with principles." (Comment: many would say
both of Bainimarama's "dangers" have come to pass.)


7. (C) On the public mood, Opposition Leader Beddoes struck
his own note of concern about ethnic-Fijian disquiet. More
broadly, Beddoes said he plans to propose that opponents of
the IG wear yellow ribbons as a visible signal of discontent.
Doing more, such as street marches, could result in direct
confrontation with the military, not a happy thought. Qarase
and Baba said they are very worried. Baba said, "When
Fijians are quiet, worry. They are getting ready for
battle." The IG undertakings to touch the land issue and to
reform the Great Council of Chiefs (GCC) have touched raw
nerves.

IG plans for elections - on track?
--------------

8. (C) When asked the current IG vision of the way forward
for Fiji, Bainimarama said the plan is still to hold
elections in 2009. Asked "March?", Bainimarama said,
"Hopefully March, it could be February or April." He
sketched the state of play for preparations and complained,
"It is insulting to have to answer continually" about
possible delays. He noted international comments in
particular. Bainimarama continued, "Elections alone won't
solve Fiji's problems." Long-standing issues need to be
resolved first. Unfortunately, "opponents are sabotaging
things." He said if opponents like Qarase's SDL keep making
trouble, "there is no way to move ahead." Bainimarama said
he wants to "get out" of power; but the 2000 coup scenario
taught him a lesson. Back then, he "gave back executive
authority before Fiji's fundamental problems had been sorted
out. That was a mistake. Qarase then took off in a

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different direction." Bainimarama insisted repeatedly in the
conversation, "We have to get the fundamentals right." Note:
PNG High Commissioner Eafeare, who chairs the Forum-Fiji
Working Group, told Davies he is concerned about election
preparations, and about the state of play in general within
the IG. The PIF is keeping pressure on, but the IG has not
been as energetic as it should be to ensure all steps are in
place to ensure the election timetable is met.

NCBBF, the People's Charter
--------------

9. (C) Bainimarama said the National Council for Building a
Better Fiji (NCBBF, People's Charter process) has had great
difficulty raising funds. When Davies observed that major
players like Qarase's SDL Party and the Methodist Church are
not engaged in the NCBBF, Bainimarama proposed that many
Methodists and chiefs are on board, just not the leaders.
When Davies noted that deposed Opposition Leader Beddoes
publicly resigned from the NCBBF on Feb. 26, Bainimarama,
clearly miffed, responded "I have nothing to say about Mick
Beddoes." When Davies asked how the People's Charter fits
within the Constitution, Bainimarama said a referendum or
some other device will confirm the people's support at some
stage.


10. (C) Beddoes announced he resigned because of the Hunter
expulsion, the IG's mishandling of Chaudhry's tax issues, and
a blunt warning by Police Commissioner Teleni that security
forces will come down hard on those who make "inciteful"
remarks against the IG. In conversation with Davies, Beddoes
said he is not optimistic about the NCBBF at this point.
Foreign Minister Nailatikau said he hopes "something can come
from the process. We have tried everything before. Let's
try this." Nailatikau expressed concern that Beddoes had
pulled out. Chaudhry dismissed Beddoes as unimportant, but
he stressed that the People's Charter "is essential for
Fiji's future." It must deal with the "fundamental problems
of democracy," including the land issue, "which must be
fixed."

Elections, People's Charter, sequencing?
--------------

11. (C) When Davies asked the IG's plans for sequencing
elections and the People's Charter, Bainimarama said the
election timetable is proceeding on the presumption the
People's Charter will be in place. He added that the IG is
"ready for elections next week if that is what the people
want." Later, Chaudhry, who clearly has taken an
organizational role in the NCBBF, told Davies that the
People's Charter process "is time-lined." As of now,
progress is on time, with a product to the people in October.
Chaudhry said the initial idea of a referendum is now being
reviewed, since Fiji law doesn't provide for referenda. He
said one option may be to recall the old parliament to
endorse the Charter. (Comment: It is hard to imagine the SDL
majority in the old parliament giving their endorsement,
unless attitudes change dramatically or the IG plays some
sort of game.)

Sir Paul Reeves - a Commonwealth dialogue
--------------

12. (C) Commonwealth Secretariat staffer Albert Mariner met
with Bainimarama just before Davies did to discuss the effort
New Zealand's Sir Paul Reeves is undertaking at Commonwealth
behest to facilitate a political dialogue in Fiji, apart from
the NCBBF process. Bainimarama told Davies he will take on
board any ideas that are offered as friendly; "but we can't
compromise on the principles of December 5." Bainimarama
indicated he likes Reeves, and in fact had identified him
nearly a year ago as a possible international observer for
the NCBBF process. Bainimarama said he hopes any dialogue
engineered by Reeves "will go OK." He is worried, though, by
the intention to separate dialogue from the NCBBF process.
Politicians might create problems. Chaudhry, in his meeting
with Davies, noted he was not included in the conversations
when Reeves visited Suva last December. Chaudhry hopes he
will be included when Reeves returns March 1-8. Qarase told
Davies he is ready to engage in political dialogue via any
useful process, including with Reeves; but he and the SDL
will stay out of the NCBBF.

A Commonwealth Secretariat view
--------------

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13. (C) Note: In a conversation with the Ambassador on Feb.
28, Mariner said the IG (PM PermSec Chand) made all decisions
about Reeves' meetings last December. Mariner envisions
Reeves meeting with leaders of all significant political
entities this time around: Bainimarama, Qarase, Beddoes,
Chaudhry, and heads of the smaller NFP and NAP. If all goes
well, a group meeting could occur March 7. It appears
Bainimarama gave consistent signals to Mariner and Davies.
He sees the "principles of December 5" as firm; he would
strongly prefer the Reeves process to come within the NCBBF
process at some point, preferably initially. Mariner left
open with Bainimarama the possible eventual merger of paths,
while making clear Reeves sees his political facilitation as
independent of the NCBBF. Mariner sees that independent
course as essential if the Reeves process is to have a chance
of succeeding. In Davies' meeting with Chaudhry, Davies
suggested that the NCBBF is "utopian." Mariner fully agrees,
as does Reeves. They believe what must happen is a political
process building up, not a utopian vision being imposed.
Mariner reported that Bainimarama said he wants a clear
agenda for any Reeves process, not another "talanoa"
talk-fest without direction, as took place (under East West
Center facilitation) after the 2000 coup. (Note: EWC's
Charles Morrison and Sitiveni Halapua have offered their
services again; but it does not appear the IG is
enthusiastic.)

Yet another dialogue facilitation: Beddoes
--------------

14. (C) In the Beddoes-Davies meeting, Beddoes described a
separate effort he has been facilitating with PM PermSec
Chand for Bainimarama, Qarase, and himself to start an
informal, no-agenda conversation, beginning with prayer and
rugby but eventually reaching the thorny political subjects
at the heart of Fiji's problems. Beddoes said the first
session was to have been this week, until the Chaudhry and
Hunter stories broke. Beddoes figures that, if his informal
dialogue effort proceeds, it could at some point meld into
the Reeves process. Beddoes and Qarase both described to
Davies an outcome scenario that would have the old Parliament
reconvene, address and regularize any controversial IG
decisions and decrees, and then close down, with a totally
civilian, non-political caretaker government to oversee Fiji
through elections, and with nobody in that caretaker
government allowed to run for office. One difficult issue
that would have to be worked through is what to do about the
military's strong interest in amnesty for coup- and post-coup
actions.

International intransigence; U.S. tough love
--------------

15. (C) When Davies, thinking back to his visit in April
2007, noted a seeming lack of IG progress in reaching its
goals, Bainimarama said "These are not normal times in Fiji.
If the international community would come on my side, there
will be no worries." He raised the theme of international
intransigence repeatedly, prompting Davies to ask for
examples. Bainimarama cited Australia, New Zealand, and U.S.
visa bans. He said, "It is OK to put them on the military;"
but they should not be placed on families, on board members,
or on civilian member of the IG. Davies defended U.S.
sanction policies, noting our aid cut-off was required by
law, and our other sanctions are based on principle.
Bainimarama said "nothing has changed" in the IG relationship
with Australia and New Zealand, though an NCBBF mission would
be in Australia shortly. (Note: Co-Chair Archbishop Mataca
was in Canberra 2/27 for meetings arranged under an academic
umbrella. Another NCBBF participant who intended to go was
stopped under the Australia visa ban because he serves on an
IG board.) Davies described the U.S. long-term and
continuing interest in Fiji, and stressed that the USG will
continue to urge the IG to move rapidly to elections,
following constitutional processes. Bainimarama responded,
"Come more often. I like talking to you." Davies added, "We
want Fiji to succeed," and in that spirit we offer "tough
love."

U.S. elections: a McCain connection
--------------

16. (C) Bainimarama asked about the U.S. elections, as did
every interlocutor in Suva. He claimed to be watching the
process avidly, but he seemed to think the election is down
to Clinton and Obama. When we mentioned McCain, Bainimarama

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seemed surprised, but said with pleasure, "I met him."
(Note: Per previous reporting, the owners of Turtle Island
Resort in Fiji's Yasawa Islands arranged for Bainimarama to
visit over Christmas 2005, wanting to lobby him about a
controversial water-use, "qoli qoli" bill. Senator McCain,
who has vacationed at Turtle Island repeatedly over the
years, was there at the same time. The two reportedly had
conversations in which Senator McCain urged the Fiji military
to accept its proper role in a democracy.)

Reforming the Great Council of Chiefs
--------------

17. (C) Asked about the IG's recent, controversial reforms of
the Great Council of Chiefs (GCC) (see reftels),Bainimarama
said reform is needed, and the intention is actually to
"elevate" the chiefs and make them non-political. He claimed
the new regulations' edict that the Minister for Indigenous
Affairs should chair the GCC, and Bainimarama's currently
happening to be in that role, should not lead one to conclude
he wants to control the process.

Judicial independence?
--------------

18. (C) Davies raised the Fiji judiciary, expressing concern
at reports it has been compromised. Bainimarama responded,
"There has been no interference in the day-to-day running of
the judiciary. All are working within the Constitution." He
asked why the U.S. would have any other impression? We noted
the IG's refusal two weeks ago to allow an International Bar
Association visit, with the interim Attorney General
expressing concern that Fiji judges might be "influenced" by
the IBA.

The economy: things are rosy?
--------------

19. (C) Bainimarama reported that banks are doing well,
Fiji's Tax and Customs Authority (FIRCA) took in $36 million
more in 2007 than in 2006, investors are coming in, so,
"Things are starting to look rosy and will be fine by
election time." He acknowledged a slow-down after the coup,
but "things are now moving up." Chaudhry was equally upbeat.
He said the IG has stabilized finances and reserves.
Revenues are up, via better compliance. Chaudhry said issues
remain. In particular, resolving the "land issue" is
critically important for the sugar industry, which must
dramatically increase production to produce electricity from
bagasse and ethanol from molasses. Chaudhry noted that the
EU's insistence on "backloading" its sugar-reform assistance
has created problems, but the IG is compensating by funding
sugar support. Qarase's view of the economy is considerably
more jaded. He sees serious trouble with no solutions in
sight. People are hurting, which adds to their discontent.
Qarase is convinced plenty of land is already available for
sugar, if properly husbanded, without meddling in the "land"
issue.

Fiji Water
--------------

20. (C) Davies raised the Fiji Water case with Chaudhry (see
ref C),stressing the need for rule of law and a level
playing field when foreign governments deal with American
companies. Chaudhry made clear he cares personally about the
case. He argued that Fiji Water has "way under-valued" its
exports, and he said other Fiji companies are valuing their
exports at double what FW declares. He alleged that FW has
failed to provide requested documentation. He complained
bitterly about FW efforts to stifle competition in Australia
and the U.S. using frivolous IPR lawsuits. When we asked if
Chaudhry is tying the IPR and customs issues together, he
denied it. He proposed that former FW owner David Gilmore (a
Canadian billionaire) still controls FW from behind the
screen of Roll International (a U.S. company). When we asked
about binding arbitration instead of the current court
process to resolve the transfer-pricing issue, Chaudhry
dismissed the thought. He said the case will go to trial in
March. He suggested the U.S. should commence its own
investigation of FW. We noted that U.S. Customs recently
provided information on FW imports to Fiji's Tax and Customs
authority, as requested. (Comment: many of Chaudhry's
assertions about FW do not bear up under even cursory
examination, though the IPR-lawsuit tactic appears real.)

Virisila Buadromo

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--------------

21. (C) The State Department will award Fiji human rights
activist Virisila Buadromo the International Woman of Courage
award in early March. Buadromo told Davies she is honored,
and is greatly looking forward to her first visit to
Washington...if the IG allows her to leave Fiji. (Note: the
IG has placed travel bans on Buadromo and other activists
from time to time.) Buadromo described how three judges
called her into court in February for a "dressing down" for
having dared to express concern about the Fiji judiciary's
independence since the coup (ref D).

Comment
--------------

22. (C) The series of conversations left PDAS Davies with a
strong impression that Fiji's troubles continue, and
pressures may even be increasing. In meetings and media
events, Davies stressed that the USG, as a friend, urges Fiji
to return to legitimately elected governance ASAP and to
ensure rule of law, including media freedom and an
independent judiciary. The various efforts under way to
solve Fiji's problems and to find a political solution create
a degree of hope; however, Bainimarama's insistence, at this
point, on sticking to "the fundamental principles of December
5" would seem to leave little room to maneuver, unless
Qarase, Beddoes, and others are prepared to capitulate. The
IG's opponents do not appear to be in a capitulation mood, at
least not yet.


23. (U) EAP PDAS Davies cleared this message.
DINGER