ASIA PACIFIC COMMUNITY CONFERENCE: MEETING IS THE

C O N F I D E N T I A L SECTION 01 OF 02 CANBERRA 001090

NOFORN
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E.O. 12958: DECL: 12/09/2019
TAGS: PGOV PREL AS
SUBJECT: ASIA PACIFIC COMMUNITY CONFERENCE: MEETING IS THE
MESSAGE

Classified By: Political/Economic Counselor Edgard Kagan, for reasons 1
.4 (b),(d)


1. (C/NF) Summary: The December 3-5 track 1.5 conference on
Prime Minister Kevin Rudd's proposed Asia Pacific community
(APc) concept achieved the limited goal of further discussion
on regional institutions. Though ostensibly co-sponsored by
the Lowy Institute (an Australian think tank) and the
Australian Department of Foreign Affairs and Trade, PM Rudd's
influence permeated the event. He gave the opening speech
and hosted a reception for the delegates at his official
Sydney residence. A Rudd advisor told us the PM was
disappointed at the continuing strong opposition by ASEAN
countries as well as frustrated that countries such as India
and Russia are not more eager to support his initiative.
While no consensus emerged on what an APc would look like,
participants agreed that a completely new institution was
unrealistic. The most commonly voiced ideas included
expanding the East Asia Summit (EAS) to include the United
States and Russia, or adding security issues to an APEC plus
India forum. Some delegates from ASEAN, ever fearful of
losing their place in the driver's seat of regional
architecture, voiced strong opposition to the APc concept and
U.S. and Russian participation in the EAS. EAP Principal
Deputy Assistant Secretary Joe Donovan led the U.S.
delegation. End Summary.

No New Regional Institution
--------------


2. (SBU) The 1.5 track Australia sponsored APc conference
held in Sydney December 3-5 achieved Canberra's limited goal
of attracting government officials and academics for a
further discussion on regional institutions. The Australians
set low expectations. When Richard Woolcott, Prime Minister
Rudd's Special Envoy for the APc announced the conference in
early November he stressed that the goal was not to be
prescriptive but to provide an opportunity to have a dialogue
and explore as many ideas as possible. From his extensive
consultations around the region before the conference,
Woolcott had already publically stated that "little appetite
for creating new institutions" existed.


3. (SBU) While no consensus emerged on what an APc would look
like, participants reaffirmed Woolcott's conclusion that a
new institution was unrealistic. Expanding the EAS to
include the United States and Russia, or adding security
issues to an APEC plus India forum were the most commonly
voiced ideas.


4. (C/NF) PM Rudd was satisfied that the conference took
place and attracted "decent" representation from the region,
according to Rudd's international policy advisor Scott Dewar.
Rudd remains frustrated at the continuing suspicion from
ASEAN countries, though the he understands that they resent
the implication that ASEAN is part of the problem in Asian
architecture. Dewar said the PM is also surprised that
countries such as India and Russia have not embraced the
proposal.

ASEAN Opposition
--------------


5. (SBU) The perennial question of ASEAN's centrality in any
regional organization flared up repeatedly during the
discussions. Many Southeast Asia participants argued against
any diminishment of ASEAN's lead position, despite former
ASEAN Secretary General Ong's statement that ASEAN and
Southeast Asian states would not stand in the way of a new or
QSoutheast Asian states would not stand in the way of a new or
reconfigured grouping. When Michael Wesley, head of the
conference co-sponsor Lowy Institute, tried to sum up the
discussions with a few principles going forward, many
Southeast Asian participants vociferously disagreed with his
points.


6. (C/NF) Australia is confused by the mixed messages it is
hearing from Singapore, according to Scott Dewar,
international policy advisor to PM Rudd. Singapore made
clear to Australia and others its great discomfort with
Japanese PM Hatoyama's proposal of an East Asian Community
that might exclude the United States, according to Dewar.
However, Singaporean Ambassador at Large Tommy Koh was openly
skeptical at the conference of whether the United States

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should be included in a new Asian institution, according to
Dewar. He said that more generally, Singapore and Malaysia
remain the most skeptical of Rudd's initiative, though
insisting that many of their concerns have been assuaged.

U.S. Participation Welcomed
--------------


7. (SBU) Most delegates generally welcomed U.S.
participation. The government representatives tended to be
in listening mode, while a few of the private delegates did
express some anti-U.S. sentiment. Conference co-convener Ton
Ni Thi Ninh, a former Vietnamese diplomat, (speaking
personally) suggested that neither the United States nor
Russia should be part of the EAS because neither country is
"Asian." A European delegate (invited to discuss lessons
from the European Union, again speaking personally)
complained that the United States is the unilateral "guard
dog" of the region, and that its role should be limited to
the security fora.


8. (SBU) PDAS Donovan strongly told the delegates that the
United States has comprehensive interests in the Asia Pacific
beyond security to include trade, finance, combating climate
change and other transnational issues such as narcotics and
human trafficking. He stated the United States wished to
work with Asia Pacific nations to shape emerging regional
Architecture.

Going Forward?
--------------


9. (SBU) In the final session, Lowy Institute's Wesley tried
to sum up the conference. He suggested the following points
as a rough framework for principles going forward to be sent
to Prime Minister Rudd but faced explicit and vocal
disagreement from some of the ASEAN delegates.

-- Annual leaders meeting to discuss security, economic and
political issues
-- APc should complement existing institutions, including the
G20
-- APc should draw on ASEAN, which remains an important part
of any regional architecture
-- Regional economic decisions should be market driven
-- APc dialogue should include traditional and
non-traditional security threats
-- APc countries should have both a significant interest and
a capacity in an issue to participate


10. (U) PDAS Donovan cleared this message.

BLEICH