C O N F I D E N T I A L SECTION 01 OF 02 BANDAR SERI BEGAWAN 000381

DEPT FOR EAP/DAS SKIP BOYCE, INR/B, AND EAP/PIMBS

E.O. 12958; DECL: 7/08/03
TAGS: PINR APEC BX
SUBJECT: BRUNEI RESPONSE TO REQUEST FOR BIOGRAPHIC
INFORMATION

REF: A) STATE 117173; B) BANDAR O030O


1. (U) CLASSIFIED BY CHARGE D'AFFAIRES GEORGIA T.
WRIGHT. REASONS 1.5 (C).


2. (C) THE FOLLOWING INFORMATION RESPONDS TO A
DEPARTMENT REQUEST FOR BRIEFING MATERIAL IN
PREPARATION FOR UPCOMING APEC MEETINGS (REFTEL A).


3. (U) OBJECTIVES OF BRUNEI'S LEADERS AND KEY
FOCUS. AS REPORTED IN REFTEL B, BRUNEI WILL FOCUS
ON SMALL AND MEDIUM ECONOMIES AND HUMAN RESOURCE
DEVELOPMENT (HRD). SPECIAL INTEREST WILL BE GIVEN
TO INFORMATION AND COMMUNICATION TECHNOLOGY SINCE
BRUNEI IS DEVELOPING ITS CAPABLITY IN THE HOPE OF
BECOMING A FINANCIAL SERVICE HUB. WITHIN THE
ELECTRONIC COMMERCE STEERING COMMITTEE, BRUNEI
WILL WISH TO BALANCE INFORMATION AND COMMUNICATION
TECHNOLOGY WITH CAPACITY BUILDING.


4. (U) BRUNEI APEC PLANNERS BELIEVE HRD TO BE
"CRUCIAL" TO SMALL AND MEDIUM ECONOMIES. AT THE
JULY 7 BUDGET MANAGEMENT COMMITTEE MEETING IN
SINGAPORE, BRUNEI PUSHED FORWARD THREE PROJECT-
RELATED PROPOSALS: AN HRD TRAINER EDUCATION
PROJECT TO BE CONDUCTED BY ELECTRONIC TECHNOLOGIES
"LIKE THE U.S. AND AUSTRALIA"; AN APEC-FUNDED
WORKSHOP ON ELECTRONIC COMMERCE; AND A PROJECT ON
STANDARDS. THE DIRECTOR OF THE BRUNEI APEC
SECRETARIAT HAS TOLD US THAT APEC 20OO WILL
REVOLVE AROUND NEW INFORMATION AND COMMUNICATION
TECHNOLOGIES. HE SAID OTHER POTENTIAL TOPICS FOR
NEXT YEAR ARE NATURAL GAS INITIATIVES, DEVELOPING
AIR SERVICE NETWORKS, AND TOURISM.


5. (C) APEC OECISION-MAKING. THE SULTAN IS NOT
PERSONALLY INVOLVED IN THE APEC DECISION-MAKING
PROCESS, BUT HE IS BRIEFED AND ADVISED OF ECONOMIC
IMPLICATIONS. THE MINISTER OF INDUSTRY AND
PRIMARY RESOURCES, PEHIN HAJI ABDUL RAHMAN, IS THE
LEAD MINISTER FOR APEC ECONOMIC MATTERS. HE IS
ASSISTED BY HIS PERMANENT SECRETARY, DATO HAJI
DANIAL, AND BY THE DIRECTOR-GENERAL OF
INTERNATIONAL RELATIONS AND TRADE DEVELOPMENT, LIM
JOCK HOI. JOCK HOI IS THE YOUNGER BROTHER OF
PEHIN LIM JOCK SENG, PERMANENT SECRETARY AT THE
MFA, WHO IS ALSO DEEPLY INVOLVED IN APEC DECISION-
MAKING.


6. (C) STATUS OF RELATIONS BETWEEN THE SULTAN AND
PRINCE JEFRI. PRINCE JEFRI IS STILL OUT OF THE
FOLD. HE IS PRESENTLY IN EUROPE LIVING WITH A
CONSIDERABLY SCALED DOWN ENTOURAGE.
INVESTIGATIONS INTO BRUNEI'S MISSING BILLIONS
CONTINUE, AND IT IS UNLI

KELY THAT JEFFRI WILL BE
RESTORED TO THE SULTAN'S FAVOR WHILE THE COUNTRY
IS EXPERIENCING AN UNPRECEDENTED ECONOMIC
DOWNTURN. WE UNDERSTAND, HOWEVER, THAT THE TWO
ARE IN OCCASIONAL PHONE CONTACT AND THAT THEY
PLAYED POLO TOGETHER IN THE UK LAST MONTH DURING
ROYAL WEDDING FESTIVITIES.


7. (C) PRINCE JEFRI AND PEHIN AZIZ. AS
PREVIOUSLY REPORTED, PEHIN HAJI ABDUL AZIZ IS A
CONSERVATIVE, LIGHLY INFLUENTIAL MEMBER OF THE
SULTAN'S CABINET. HE IS PRESENTLY THE MINISTER OF
EDUCATION AND ACTING MINISTER OF HEALTH. AFTER
THE AMEDEO COLLAPSE HE WAS APPOINTED BY THE SULTAN
TO HEAD THE BRUNEI INVESTMENT AGENCY (BIA),
FORMERLY CONTROLLED BY PRINCE JEFRI. THE MANUKIAN
BROTHERS AND MISS AMERICA COURT CASES, WHICH
REVEALED LURID DETAILS ABOUT PRINCE JEFRI'S
PRIVATE LIFE, PROMPTED PEHIN AZIZ TO CONVINCE THE
SULTAN OF THE DAMAGE JEFRI'S NOTORIETY WAS DOING
TO BRUNEI'S INTERNATIONAL IMAGE AND TO THE
SULTAN'S OWN CREDIBILITY AS A PIOUS RULER. AZIZ
IS ALSO BELIEVED TO HAVE ALERTED THE SULTAN TO THE
IMMENSITY OF PRINCE JEFRI'S MISAPPROPRIATIONS FROM
THE BRUNEI TREASURY. WITHOUT QUESTION, THERE IS
ANIMOSITY BETWEEN PRINCE JEFRI AND PEHIN AZIZ, BUT
THE RELATIONSHIP BETWEEN AZIZ AND PRINCE MOHAMED
IS RELATED TO AZIZ' INFLUENCE ON THE ROYAL FAMILY.
THE TWO MEN ARE COMPATIBLE BUT NOT COHORTS.
(ALTHOUGH RELIGIOUS, PRINCE MOHAMED IS NOT AS
CONSERVATIVE AS AZIZ, NOR IS HIS POLITICAL OUTLOOK
AS RESTRICTIVE.)


8. (C) STRENGTH OF RADICAL ISLAMISTS. IN BRUNEI,
THE OFFICIAL FAITH IS THE SHAFEITE SCHOOL OF
ISLAM. NO FORM OF RADICAL ISLAM IS PERMITTED.
HOWEVER, THE MORE CONSERVATIVE ISLAMIC MEMBERS OF
THE CABINET, PARTICULARLY PEHIN AZIZ AND THE
PERMANENT SECRETARY OF THE PRIME MINISTER'S
OFFICE, HAJI HAZAIR, APPEAR TO BE ESPECIALLY
INFLUENTIAL. HAJI HAZAIR IS A PROT'EG'E OF PEHIN
ISA, THE SULTAN'S CONFIDENTIAL ADVISER CUM
MINISTER OF HOME AFFAIRS. WHILE THE CONSERVATIVES
ARE CURENTLY ENJOYING A REVIVAL, THE PROGRESSIVES
ARE WAITING FOR THE DUST TO SETTLE AFTER THE
INVESTIGATIONS INTO AMEDEO ARE COMPLETE. THEY
BELIEVE THAT WHEN THE TRUE EXTENT OF BRUNEI'S
LOSSES IS KNOWN, EVERYONE WILL NEED TO BE INVOLVED
TO REALISTICALLY HANDLE THE COUNTRY'S ECONOMIC
PROBLEMS.


9. (U) THE BRUNEI CONSTITUTION. DURING THE VISIT
OF QUEEN ELIZABETH II IN MARCH 1998, FOREIGN
MINISTER PRINCE MOHAMED PUBLICALLY STATED THAT A
REVISED CONSTITUTION SOON WOULD BE UNVEILED. IT
WAS NOT. THE MEDIA ANNOUNCED IN FEBRUARY 1999 THE
APPOINTMENT OF A SUBCOMMITTEE TO REMOVE SOME OF
THE ANTIQUATED BRITISH LAWS FROM THE CONSTITUTION
AND REALIGN SOME (UNSPECIFIED) LAWS WITH ISLAMIC
LAW. NOTHING ELSE HAS BEEN HEARD ABOUT THE
CONSTITUTIONAL REVIEW PROCESS.


10. (C) CROWN PRINCE BILLAH'S RELATONSHIPS WITH
BROTHERS/UNCLES, ETC. CROWN PRINCE BILLAH
APPEARS TO HAVE GOOD RELATIONS WITH HIS UNCLES,
ESPECIALLY PRINCE MOHAMED, THE FOREIGN MINISTER.
HE ALSO APPEARS REGULARLY IN PUBLIC WITH HIS HALF-
BROTHER, PRINCE AZIM, THE ELDEST SON OF THE
SULTAN'S SECOND WIFE, AND WITH PRINCE QAWI, AND
PRINCE MOHAMED'S ELDEST SON. HE DOES NOT,
HOWEVER, APPEAR TO HAVE VERY CLOSE RELATIONS WITH
PRINCE HAKIM, THE SON OF PRINCE JEFFRI. THE
SULTAN'S FAMILIES, BY HIS FIRST AND SECOND WIVES,
SEEM TO BE WELL INTEGRATED. FAMILY PHOTOGRAPHS
DISPLAYED IN THE PALACES OF THE WIVES INCLUDE
MEMBERS OF BOTH FAMILIES ENJOYING SOCIAL EVENTS
TOGETHER.

WRIGHT