SECRETARY CLINTON'S JUNE 9, 2009 CONVERSATION

C O N F I D E N T I A L STATE 060588 E.O. 12958: DECL: 06/09/2029 TAGS: OVIP CLINTON HILLARY PGOV PREL ECON ID SUBJECT: SECRETARY CLINTON'S JUNE 9, 2009 CONVERSATION WITH INDONESIAN FOREIGN MINISTER HASSAN WIRAJUDA Classified By: EAP ACTING A/S GLYN T. DAVIES - REASONS 1.4 (B) AND (D) ¶1. (SBU) June 8, 2009; 3:00 p.m.; Washington, D.C. ¶2. (SBU) Participants: U.S. The Secretary Scot Marciel, EAP Deputy Assistant Secretary Ian Kelly, PA Spokesman Jake Sullivan, Senior Advisor Debra Benavidez, EAP/MTS (Notetaker) INDONESIA Foreign Minister Hassan Wirajuda Bunyan Saptomo, Director, North and Central American Affairs, Indonesia Ministry of Foreign Affairs Sudjadnan Parnohadingrat, Indonesian Ambassador to the U.S. Salman Al-Farisi, Deputy Chief of Mission Gustanto, Minister-Counselor for Political Affairs ¶3. (C) SUMMARY. In a June 8, 2009 meeting, the Secretary and FM Wirajuda discussed building a Comprehensive Partnership, including conclusion of a number of bilateral agreements, establishing an interfaith dialogue, increasing cooperation in regional democracy promotion and higher education. The Secretary informed Wirajuda the United States would provide $10 million for higher education programs this year and would also provide assistance to the Bali Democracy Forum. She raised concerns about Indonesian trade restrictions and visas for NAMRU-2 employees, noting that their current visas expire June 30, and if they are not extended, NAMRU-2 will have to close. Insisting that a bilateral Materials Transfer Agreement (MTA) is necessary for continued cooperation, Wirajuda suggested that a U.S. team travel to Jakarta to begin MTA negotiations. The Secretary raised the ongoing trial of Aung San Suu Kyi (ASSK) and the Burmese army?s latest offensive against Karen separatists, calling for Indonesia and ASEAN to press the Burmese government to release ASSK. Wirajuda said that ASEAN was putting pressure on the regime. END SUMMARY. -------------- ADVANCING THE BILATERAL RELATIONSHIP -------------- ¶4. (C) The Secretary began the June 8 meeting by welcoming FM Wirajuda to Washington and said that this was an opportunity to build on their discussion in Jakarta this past February. FM Wirajuda expressed his appreciation for President Obama?s recent speech in Cairo, saying Indonesians responded positively to the message of U.S. dialogue with the Islamic world. The Secretary said that now is the time to deepen and �00A;broaden our bilateral relationship by building a Comprehensive Partnership in which both the United States and Indonesia will take substantive, positive actions. -------------- COMPREHENSIVE PARTNERSHIP ? CONCRETE STEPS -------------- ¶5. (C) The Secretary described building the Comprehensive Partnership as an opportunity to create an environment where we can see real progress. She informed FM Wirajuda that the United States intends to provide $10 million for higher education programs in Indonesia this year to improve English language skills and encourage U.S.-Indonesia educational linkages. She added that the United States would also support the Bali Democracy Forum. The Secretary described additional concrete steps that the two sides could take, including the return of the Peace Corps to Indonesia and the conclusion of the Defense Cooperation Agreement Memorandum of Understanding, a debt-for-conservation swap under the Tropical Forest Conservation Agreement (TFCA),an OPIC memorandum of understanding, and the Science and Technology cooperation agreement. Noting Indonesia?s key regional and international leadership role, the Secretary suggested that Indonesia?s engagement in the Proliferation Security Initiative (PSI) would be important for the Partnership. ¶6. (C) The Secretary agreed that she and FM Wirajuda should meet every two years to review the progress under the Partnership and that the EAP assistant secretary and his counterpart should meet at least annually. FM Wirajuda noted that Indonesia had provided the United States with a draft partnership document in April, which included many substantive items. He suggested the two sides should finalize the documents by the time President Obama visits Indonesia, adding that components of the Partnership should include education, including student exchanges, Peace Corps, military cooperation and training, and promotion of democracy. He expressed the importance of expanding bilateral cooperation on education, noting that both he and President Yudhoyono benefited from U.S. education. -------------- -------------- ROBUST ECONOMIC POLICY MARRED BY TRADE RESTRICTIONS -------------- -------------- ¶7. (C) While thanking Wirajuda for Indonesia?s robust response to the global financial crisis, the Secretary expressed concern about Indonesian trade restrictions, including import license requirements, pharmaceutical manufacturing restrictions, and the current ban on pork imports. FM Wirajuda said that other ministries, including the Ministry of Health, are concerned that, with increasing integration in the region and ASEAN becoming a single market, Indonesia will be disadvantaged. He added that President Yudhoyono does want Indonesia?s economy to be more open. -------------- NAMRU-2 -------------- ¶8. (C) The Secretary then turned to the issue of extending visas for U.S. Naval Medical Research Unit 2 (NAMRU-2) employees, noting that the current visas are set to expire on June 30. While acknowledging Indonesian concerns about sovereignty and the effect the issue could have on upcoming elections, the Secretary stated that, if the visas are not extended, NAMRU-2 employees would have to leave Indonesia and the lab would close. She said the United States and Indonesia could explore a joint research laboratory project, but this would not be possible if the current visas of NAMRU-2 employees are not extended. ¶9. (C) FM Wirajuda responded that the NAMRU-2 issue has been pending for some time and should not be a handicap in the bilateral relationship. He continued that a Materials Transfer Agreement (MTA) would be necessary for cooperation with NAMRU-2, adding that this would have to be a bilateral agreement and not the multilateral MTA that is being negotiated in Geneva. Without an MTA, NAMRU-2 staff would have no work to do, because they are unable to share samples, Wirajuda claimed. A bilateral MTA would provide the basis for sharing materials. The Indonesian interagency would have to approve an extension of NAMRU-2 visas beyond June 30, he said. FM Wirajuda suggested that the first step would be for the Secretary to send a team to Jakarta to settle the bilateral MTA issue. After the MTA is concluded, then a second step would be negotiating a memorandum of understanding. Wirajuda commented that while NAMRU-2 involves cooperation between the U.S. military and the Indonesian Ministry of Health, a future joint laboratory would best involve military-to-military or health ministry-to-health ministry cooperation. Secretary Clinton suggested that EAP DAS Scot Marciel and S Senior Adviser Jake Sullivan follow up on this issue. -------------- INTERFAITH DIALOGUE -------------- ¶10. (C) The Secretary said that the United States supported the Indonesia proposal to include a bilateral interfaith dialogue as part of the Partnership, particularly if people-to-people contacts and exchanges were included. FM Wirajuda replied that he supports such a dialogue, as Indonesia is an interfaith culture and already has interfaith dialogues with the United Kingdom, Norway, Sweden, and Russia. -------------- PAPUA -------------- ¶11. (C) Secretary Clinton expressed concern about language in pending House legislation that contains an inaccurate portrayal of Papua and omits key historical facts. DAS Marciel noted that Congressional staff have indicated that the language likely would be deleted. FM Wirajuda expressed his thanks for the deletion. -------------- BURMA -------------- ¶12. (C) The Secretary expressed her concern about the ongoing trial of Aung San Suu Kyi (ASSK) and underscored the importance of pressing for her release. She urged ASEAN to call an emergency Foreign Ministers? meeting if ASSK is convicted and sentenced. The Secretary also expressed concern about the Burmese army?s latest offensive against Karen separatists, noting this is a dangerous and potentially destabilizing situation. The offensive has created a huge exodus of people into Thailand, an example of how Burma?s actions are a threat to its neighbors. FM Wirajuda replied that Indonesia was initially impressed by the generals? plan to review ASSK?s original period of detention with a possible release in June, but agreed that ASSK?s new arrest sent the wrong message. FM Wirajuda did not commit to an emergency meeting, but said that ASEAN is putting pressure on the regime to release ASSK. The Secretary emphasized that the United States wants to work closely with Indonesia to communicate to Burma the consequences of its actions. DAS Marciel noted that it is important for ASEAN to speak out and that the recent trial delay suggests that the Burmese regime may be considering what to do next. CLINTON