AUSTRALIA AND PACIFIC ISLANDS FORUM SECRETARIAT PLAN FOR

UNCLAS SECTION 01 OF 02 SUVA 000267

SENSITIVE

SIPDIS

PLEASE PASS TO EAP ACTING A/S MARCIEL

E.O. 12958: N/A
TAGS: PGOV PREL FJ KDEM
SUBJECT: AUSTRALIA AND PACIFIC ISLANDS FORUM SECRETARIAT PLAN FOR
LEADERS MEETING AND POST-FORUM DIALOGUE PARTNERS SESSION IN CAIRNS

REF: SUVA 171


AUSTRALIA AND THE PACIFIC ISLANDS FORUM WANT NEW ECONOMIC MECHANISM


1. (SBU) Australian high commission and Pacific Islands Forum (PIF)
secretariat officials reported that the Pacific Leader's Meeting and
Post Forum Dialogue (PFD) chaired by Australian Prime Minister Kevin
Rudd, August 4-7 in Cairns, would center on economic development in
the Pacific region. The role of International Financial
Institutions (IFI's) in the Pacific region will be a key issue
during the general discussion. Canberra and the PIF hope to move
forward on developing a mechanism facilitated by the IFI's to
address regional development and to mitigate the harmful effects on
Pacific island countries of the global economic downturn. They
expect donor countries to begin discussions on management of a
framework devised by Forum members and key regional partners.

PACER-PLUS NEGOTIATIONS TO COMMENCE IN CAIRNS


2. (SBU) On June 18, Forum trade ministers agreed in Apia to
recommend that negotiations for a Pacific Agreement on Closer
Economic Relationship (PACER-Plus) free trade agreement should
commence at the Forum Leaders Meeting in Cairns. In a joint
statement, the ministers said their vision is for PACER-Plus to be a
truly innovative trade and economic agreement that takes into
account the different stages of development of each nation.
Australia sees the implementation of PACER-Plus as part of the
larger "Pacific Plan" that will strengthen capacity-building and
meet development needs of Pacific island countries.

PIF SECRETARIAT WANTS CLOSER DONOR COORDINATION


3. (SBU) In addition to the economic issues, the PIF Secretariat
wants the agenda of the Post-Forum Dialogue to include topics such
as environment and climate change adaptation, fisheries protection,
health and labor mobility. PIF officials understand that it would
take some effort to reach agreement on an effective donor
coordination framework between PIF members and PFD partners. At
present, there is no way to harmonize the decision of leaders with
donor country assistance. Under Australia's chair, it is likely
that the Cairns meeting will launch a series of discussions
supported by the PIF Secretariat to enhance donor coordination.

FIJI WILL BE PRESENT WITHOUT A DELEGATION


4. (SBU) Canberra has signaled all along that it does not want the
situation in Fiji to dominate discussion in Cairns. However, the
political situation in Fiji will be a factor at the leader's meeting
and on the margins of the conference among delegations. Australian
high commission contacts and PIF officials say that because of
Fiji's position as the second largest economy in the Pacific region,
it is important that its economy not be allowed to collapse.


5. (SBU) Australia and the PIF understand that none of their
objectives for the coming year can be achieved without Fiji. They
are keen on developing an approach that takes into account Fiji's
economy without implying support for its regime, which is consistent
with the PIF decision not to exclude Fiji from existing programs and
technical level discussions. To this end, Australia supports
prudent IFI engagement with Fiji on a case by case basis, subject to
strict guidelines and requirements to ensure it helps only the
people of Fiji and not the regime. This approach would be
consistent with current U.S. engagement with Fiji.


6. (SBU) Fiji's interim Prime Minister Bainimamrama said today that
Fiji is a signatory of PACER-Plus and that no country or party can
exclude another state or party that has signed and ratified the
trade agreement. We also learned that the Melanesian Spearhead
Group might meet in Port Vila, Vanuatu, in early July and would
likely invite Bainimarama to discuss Fiji's concerns resulting from

SUVA 00000267 002 OF 002


its PIF suspension.

COMMENT

7. (SBU) The PIF Secretariat has not yet released the formal agenda
for the PFD. PIF officials expect delegates to discuss PIF/PFD
topics extemporaneously in a free and spontaneous exchange of ideas
rather than from fixed talking points. The concentration of
leaders, senior officials from the region, and participants from key
partner capitals will mean numerous bilateral meetings. Embassy
Suva anticipates bilateral meetings between USDEL and PIF Secretary
General Slade, Kiribati President Tong, Nauru President Stephen, and
Tonga Prime Minister Sevele. As with previous PIF's, we will
consult with other PFD missions in Suva. We expect that the UK, EU
and China would want meetings. Taiwan has been quietly present on
the margins at previous PFD's and held bilats as well. Embassy Suva
anticipates that the PIF Secretariat will hold a pre-brief for PFD
partners, high commissioners and ambassadors in Suva prior to
Cairns.


MCGANN