POTENTIAL MEETING FOR THE SECRETARY WITH FM

C O N F I D E N T I A L JAKARTA 000109 SIPDIS DEPT FOR S, P, EAP, EAP/MTS, EAP/RSP E.O. 12958: DECL: 01/26/2020 TAGS: PREL ECON ID AF SUBJECT: POTENTIAL MEETING FOR THE SECRETARY WITH FM NATALEGAWA - RECOMMENDED TOPICS REF: JAKARTA 82 Classified By: Ambassador Cameron R. Hume, reasons 1.4 (b and d) ¶1. (C) SUMMARY: Indonesian Foreign Minister Natalegawa wants to use his January 28 bilateral meeting with Secretary Clinton at the Afghanistan Ministerial Conference to discuss how to resolve key issues prior to the March Presidential visit to Indonesia. Mission recommends that the Secretary use a meeting with FM Natalegawa to: -- inform him that the U.S. will offer training to KOPASSUS Unit 81; -- state that the Indonesia-United States Center for Biomedical and Public Health Research (IUC) forms the basis for future bilateral health cooperation. The IUC should have civilian leadership, a binational board of governors and include both civilian and military researchers; -- urge that negotiators finalize an umbrella a Science and Technology Agreement, and defer contentious issues to subsequent implementing agreements; -- ask Indonesia to commit to provide training for the Afghan police, and to send a delegation to Afghanistan as soon as possible to design the training; and, -- request that Indonesia identify the remaining issues preventing it from agreeing to a new OPIC investment incentive agreement. END SUMMARY. ¶2. (C) The January 28 bilateral at the Ministerial Conference on Afghanistan in London is likely to be the last Secretary-to-Minister discussions prior to the President's March visit to Jakarta. FM Natalegawa wants to discuss pending items that need to be resolved for a successful Presidential visit in March. This message contains background and suggested talking points on the most urgent issues. KOPASSUS ¶3. (C) Background: DEPLU Director General Marsudi has made clear to us that President Yudhoyono believes President Obama's visit cannot be successful unless the United States announces that it is ready to engage with KOPASSUS. ¶4. (SBU) Suggested talking points: -- We understand the personal importance President Yudhoyono places on the issue of military normalization. -- We will begin a phased engagement with KOPASSUS by offering training to KOPASSUS Unit 81. -- The Indonesian military's commitment to human rights and reform must remain solid. THE HEALTH COOPERATION IMPASSE ¶5. (C) Background: The GOI has agreed in principle to launch a new interagency platform for health cooperation--the Indonesia-United States Center for Biomedical and Public Health Research (IUC). The GOI, however, opposes U.S. Navy participation in the center because of domestic political opposition. Without a Navy presence, the USG cannot fund the IUC. A USG negotiating team will be in Jakarta February 8-10. If we cannot agree on an IUC structure at that time, Naval personnel will have to vacate their laboratory and depart Indonesia by March 15. ¶6. (C) Suggested talking points: -- President Obama and President Yudhoyono called for deepening U.S.-Indonesia cooperation in health when they met in November on the margins of APEC in Singapore. -- The IUC cannot be launched unless U.S. Navy scientific resources and personnel that currently contribute to NAMRU-2 are also a part of the IUC. -- The IUC will be fully under civilian leadership and have a bi-national board of governors. -- We remain open to creative ways forward, such as a joint military medical research component of the IUC where U.S. and Indonesian military medical personnel work side-by-side. -- Withdrawal of Navy personnel just days before the President's arrival will send a counterproductive message about Indonesia's interest in cooperation with the United States and will create a negative atmosphere for the visit. SCIENCE AND TECHNOLOGY AGREEMENT ¶7. (SBU) Background: Negotiators are close to concluding a new Science and Technology Agreement and disagree only on whether the thorny issues of genetic resources and material transfer agreements. Both issues are currently being negotiated in multilateral fora and are not applicable to the vast majority of cooperation that would occur under an agreement. In scheduled February 22-23 negotiations in Washington, both sides should agree to deal with issues in implementing agreements rather than in this umbrella agreement. ¶8. (SBU) Suggested talking points: -- Concluding a new Science and Technology Agreement will pave the way for joint scientific and technological cooperation needed to meet domestic and global challenges we both face, including creating new jobs. -- The next round of negotiations planned for February 22-23 in Washington is our last chance to finish the agreement. -- While it may be necessary to include mention of a Material Transfer Agreement (MTA) and Genetic Resources, Traditional Knowledge and Folklore (GRTKF) in the umbrella agreement, these issues should be dealt with in specific implementing agreement as necessary. GREATER AFGHANISTAN ASSISTANCE ¶9. (C) Background: Indonesia has provided valuable assistance Afghanistan, particularly in the areas of agriculture, education and health care. Indonesia should offer to provide police training to Afghanistan. The U.S. is willing to send a joint U.S.-Indonesian assessment team to Afghanistan to assess Afghan needs and identify ways that Indonesia might help. The INP is awaiting President Yudhoyono's order to dispatch the team. ¶10. (C) Suggested talking points: -- Presidents Yudhoyono and Obama have exchanged letters on the way ahead in Afghanistan. -- We encourage the GOI to agree to provide training for the Afghan police. -- The U.S. would be pleased to send a joint police assessment team to Afghanistan to identify training needs for the Afghan police. The United States is prepared to facilitate and support that trip, but await word from Indonesia that it wants to move forward. INVESTMENT INCENTIVE AGREEMENT ¶11. (SBU) Background: A new OPIC investment incentive agreement would allow OPIC to increase its Indonesian portfolio by up to $900 million. The GOI wants to impose restrictions on OPIC programs that go far beyond what it imposes on the World Bank,s Multilateral Investment Guarantee Agency (MIGA). ¶12. (SBU) Suggested talking points: -- The next round of OPIC negotiations will be January 28-29 in Indonesia. -- OPIC and the World Bank,s MIGA offer similar products and services. The GOI should allow OPIC to operate on similar terms as MIGA. -- A new agreement would be accompanied by an OPIC-sponsored international investment conference in Indonesia in 2011. HUME