(U) Secretary Clinton's February 18, 2009

C O N F I D E N T I A L SECTION 01 OF 05 PARTO 022610

SIPDIS

E.O. 12958: DECL: 02/19/2019
TAGS: PREL PGOV OVIP CLINTON HILLARY KGHG ID
SUBJECT: (U) Secretary Clinton's February 18, 2009
conversation with Indonesian Foreign Minister Wirajuda


1. (U) Classified by: Paul Wohlers, Deputy Executive
Secretary, S/ES, Department of State. Reason 1.4.(d).


2. (U) Thursday, February 18, 2009; 4:15 p.m.;
Jakarta, Indonesia.


3. (U) Participants:

U.S.
The Secretary
Ambassador Cameron R. Hume
A/S Christopher R. Hill, EAP
Lt. Gen. Paul J. Selva, Assistant to the Chairman of the
Joint Chiefs of Staff
Todd D. Stern, Special Envoy for Climate Change
Ambassador Jeffrey A. Bader, NSC
Huma Abedin, Deputy Chief of Staff
Jacob J. Sullivan, Deputy Chief of Staff
Robert Wood, Acting Spokesman
Daniel E. Turnbull, Embassy Jakarta (notetaker)

INDONESIA
Foreign Minister Wirajuda
Vice Minister Triyono Wibowo
Ambassador Retno Marsudi
Ambassador Sudjadnan
Djauhari Oratmangun, Director General
Andri Hadi, Director General
Dienne H. Moeharia, Inspector General
Dr. Dino Patti Djalal, Presidential Spokesman
Artauli Tobing, Director General
Bunyan Saptomo, Director
Teuku Faizasyah, Spokesman
Cicilia Rusdiharini, Deputy Director (notetaker)



4. (C) SUMMARY. During a February 18 meeting, the
Secretary and Indonesian FM Hassan Wirajuda agreed to
pursue a "comprehensive partnership" that encompassed
all aspects of the relationship. Recent steps in that
direction included agreement on the return of the Peace
Corps to Indonesia, renewal of the Fulbright agreement
on educational exchanges, cooperation on Indonesia's
Compact eligibility status under the Millennium
Challenge Corporation, and U.S. readiness to present a
draft Science and Technology agreement for negotiation.


5. (C) SUMMARY cont'd: The Secretary praised
Indonesia's progress on democracy and human rights and
Indonesia's leadership in promoting these values in the
region. She said the Obama Administration wanted to
engage more actively with ASEAN. Wirajuda said the
ASEAN Charter entailed a commitment to promote democracy
and human rights that was binding on Burma. On Iran, he
called for a broader dialogue including Arab and Muslim
countries and member states of the Nuclear
Nonproliferation Treaty (NPT). The two also discussed
cooperation on climate change and bilateral health
cooperation. END SUMMARY.


6. (C) In a brief private meeting before the main
discussion, Wirajuda welcomed the Secretary and asked if
there was any special message from Washington. The
Secretary said President Obama had fond memories of his
years in Indonesia whose diversity and culture had
greatly impressed him. The United States hoped for a
more comprehensive partnership built on the work already

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done in such fields as counter-terrorism. There should
be a broader engagement in education, the environment,
and health care. The Secretary wanted to hear how
Indonesia would structure work on such a relationship.
Wirajuda said Indonesia wanted to build a comprehensive
partnership. He said President Yudhoyono welcomed the
Secretary's visit and looked forward to meeting her.

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A DEMOCRATIC INDONESIA
--------------


7. (C) In the larger meeting, Wirajuda assured the
Secretary that Indonesia stood ready to work with the
United States on bilateral, regional, and global issues.
Bilateral cooperation had been growing steadily and
promised to become even stronger with the Obama
Administration. Noting the presence of three women in
his team at the meeting, Wirajuda said half of senior
Indonesian officials would be women in 50 years. This
was not the result of affirmative action but of open,
non-discriminatory recruitment policies. Wirajuda said
Indonesia had transformed in the past decade to a
vibrant democracy that respected human rights and the
rule of law. Some still had the mistaken impression
that Indonesia had not changed from the past. The
Indonesia-sponsored Bali Democracy Forum brought
together democracies and aspiring democracies to share
experiences. It was the first effort of its kind in
Asia.

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MODERATION AND DIVERSITY
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8. (C) Wirajuda said Indonesia had partnered
successfully with the United States to combat terrorism.
At the same time, Indonesia professed a moderate form of
Islam. Indonesia had proven that Islam, democracy, and
modernity could coexist. Indonesia stood at a
crossroads of civilizations and, like the United States,
was a "melting pot" of ethnic groups and cultures that
celebrated diversity. Indonesia was ready to play a
role in bridging relations between the West and Islam.

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THE ECONOMIC CRISIS
--------------


9. (C) Economically, Wirajuda continued, Indonesia had
recovered from the crisis of 1997-98, but now had been
hit by the global economic crisis. The Indonesian
economy had grown by six percent in recent years and was
still projected to attain 4.5 percent growth in 2009,
despite the global downturn. Still, Indonesian exports
were down 38 percent from a year ago. In need of
assistance in overcoming the global economic slowdown,
Indonesia sought U.S. support for contingency financing
through the World Bank-led effort in which the Asian
Development Bank (ADB),Japan, and Australia were
participating. (Note: The U.S. Treasury Department
previously turned down an Indonesian request for U.S.
participation in this effort as a bilateral donor.)
Indonesia also sought access to a Federal Reserve
currency swap line, even if in only half the amount that
Singapore, Mexico, and Brazil had received. That would
save Indonesia from having to borrow on the open market.

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10. (C) Wirajuda said Indonesia's widespread poverty
was one of the biggest challenges to making democracy
work. Prosperity had to go hand in hand with democracy
in order for democracy to survive in the long run.

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COMPREHENSIVE PARTNERSHIP
--------------


12. (C) Wirajuda welcomed the new administration's
commitment to enhance cooperation. Indonesia wanted to
deepen cooperation in all major aspects of the
relationship: environmental protection, climate change,
trade and investment, democracy, education, health,
regional security, counterterrorism, and people-to-
people contacts. This would be a "comprehensive
partnership" in which Indonesia and the United States
both would play equal roles. This partnership could be
announced in a joint statement of both countries'
leaders.

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SECRETARY PRAISES INDONESIAN LEADERSHIP
--------------


13. (C) The Secretary thanked Wirajuda for his
"comprehensive overview." She conveyed warm personal
greetings from President Obama who, she said, had fond
memories of his early years in Indonesia, where he had
learned the importance of harmonious relations among
religions and diverse ethnic groups. The Secretary
applauded Indonesia's example of highly qualified women
in government. The United States wanted to broaden and
deepen its cooperation with Indonesia through a
"comprehensive partnership" covering all aspects of the
relationship. She praised the Bali Democracy Forum and
Indonesia's role in bringing together countries from
around the region to promote this fundamental shared
value. This initiative had signaled to the rest of the
world Indonesia's leadership. She accepted Wirajuda's
point that democracy and prosperity needed to develop in
parallel.

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AGREEMENTS SHOW COOPERATION
--------------


14. (C) The Secretary noted that a number of important
agreements had been concluded in the run-up to her
visit. These were a concrete demonstration of growing
cooperation:

- The Peace Corps would return to Indonesia;
- The AMINEF Agreement for Fulbright educational
exchanges had been renewed;
- Indonesia had achieved Compact eligibility status
under the Millennium Challenge Corporation, and a team
would arrive this spring to begin work on a Compact; and
- The United States was ready to present a draft
proposal for a Science and Technology Agreement.

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INDONESIAN EFFORTS ON BURMA
--------------


15. (C) The Secretary said the United States wanted to

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consult with Indonesia in addressing other challenges,
such as Burma. It was important to improve the lives of
the Burmese people and to create room for reforms.
Burma sanctions had not worked, and the United States
wanted to try other approaches. Wirajuda noted that in
2002 Indonesia had begun to press for ASEAN dialogue on
political issues, such as Myanmar. But engagement had
not worked either. Regional economic integration had
limited value if not accompanied by progress on human
rights and democracy. This increasing engagement on
political issues had become enshrined in the ASEAN
Charter.


16. (C) Wirajuda said Myanmar was difficult. The
ruling regime had rejected the constructive efforts of
regional institutions. The Charter, however, now
entailed a legal commitment to promote democracy and
human rights. Myanmar would hold multiparty elections
next year. However, issues of national sovereignty and
political stability also had to be considered. ASEAN
had continued to discuss Myanmar in its meetings, and
Indonesia was actively trying to engage neighboring
countries, including China and India, in dialogue with
the regime.

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CLIMATE CHANGE
--------------


17. (C) The Secretary said global climate change was
another challenge that offered opportunities for
cooperation, particularly in reforestation. Wirajuda
noted that Indonesia had organized the Bali Conference
on climate change in late 2007, which had produced a
"roadmap" for a process to replace the Kyoto Protocol.
This process would continue in Copenhagen. Indonesia
hoped the United States would sponsor a high-level
meeting in this process, such as it had hosted on the
margins of the United Nations General Assembly in 2007.
Indonesia appreciated U.S. support on reforestation and
forest protection. Indonesia was cooperating with other
countries in the region and was planning to organize a
meeting of 34 rain-forest countries, Wirajuda added.

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EAST-ASIAN INTEGRATION
--------------


18. (C) Wirajuda noted the ASEAN Charter had identified
three main pillars for integration: political-security,
economic, and social-cultural. Only six years remained
to achieve the target of full integration by 2015. This
integration would put ASEAN in "the driver's seat" for
broader East Asian integration. A web of agreements had
led to creation of the East Asian Summit (EAS),and the
region would soon begin talking about an East Asian
Community. This could form the building blocks for a
free-trade area. In view of China's growing power,
Indonesia had insisted on drawing India, Australia, and
New Zealand into the EAS and continued to work closely
with other countries in the region. Wirajuda welcomed
U.S. thinking on these developments.


19. (C) The Secretary hoped the expanded ASEAN outreach
would include other Asia-Pacific countries in its free-
trade area and that political cooperation would advance

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democracy. She said the Obama Administration had a
positive view of these developments and wanted to
develop stronger cooperation with the region. She
intended to make proposals along these lines at her
upcoming meeting at the ASEAN Secretariat. The United
States wanted to be an effective partner with ASEAN in
realizing ASEAN's strategic vision and would work
closely with Indonesia.

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MIDDLE EAST AND IRAN
--------------


20. (C) The Secretary noted that one of the first steps
of the Obama Administration was to appoint a Special
Envoy for the Middle East. The United States was re-
engaging with the Middle East and wanted to advance the
peace process. Washington had supported humanitarian
aid for Gaza and was committed to the two-state
solution. The Secretary said Washington sought
Indonesia's help in convincing Iran to abandon its
pursuit of nuclear weapons. Other states in the region
were deeply concerned about Iran's program. Indonesia
had a position of leadership in this area and
considerable influence with Iran, the Secretary pointed
out.


21. (C) Wirajuda noted that Indonesia had participated
in the Annapolis Conference and the Paris Conference and
supported a two-state solution. Indonesia had provided
practical assistance through the Asia-Africa Conference
on Palestine. Although more sympathetic toward Fatah
politically, Indonesia promoted dialogue and
reconciliation between Fatah and Hamas in the interests
of the Palestinian people.


22. (C) On Iran, Wirajuda said it was odd that the
various international efforts included no representative
of the Arab League or the Islamic world. He suggested
the dialogue with Iran should include some state parties
of the Nuclear Nonproliferation Treaty (NPT). Indonesia
was "a critical friend" of Iran, Wirajuda said,
conveying at senior levels Indonesia's opposition to any
development of nuclear weapons and urging Iran to be
more forthcoming with international efforts. Indonesia
welcomed the Obama Administration's willingness to
engage in dialogue with Iran. Indonesia stood ready to
help.

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BILATERAL HEALTH ISSUES
--------------


23. (C) Wirajuda expressed hope that Indonesia and the
United States would reach agreement regarding avian-
influenza sample sharing. Multilateral negotiations
were ongoing in Geneva, and Indonesia was ready to
conclude a parallel bilateral arrangement with the
United States.


24. (C) On the U.S. Naval Medical Research Unit (NAMRU-
2) in Jakarta, Wirajuda stressed the need for a new
memorandum of understanding that was transparent and
fair, and that provided equivalent benefits to both
sides.
CLINTON