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RUCNDT/USMISSION USUN NEW YORK PRIORITY 0595
RUEHDT/AMEMBASSY DILI 2105

C O N F I D E N T I A L SECTION 01 OF 02 DILI 000356 
 
SIPDIS 
 
SIPDIS 
DEPT FOR EAP/MTS,INL 
PACOM FOR POLAD AND JOC 
 
E.O. 12958: DECL:  7/11/2016 
TAGS: PREL PGOV PREF KJUS EAID KDEM PINR TT
SUBJECT: AMBASSADOR'S MEETING WITH NEW DEPUTY PRIME MINISTER 
 
REF: DILI 355 
 
DILI 00000356  001.2 OF 002 
 
 
CLASSIFIED BY: Grover Joseph Rees, Ambassador, EXEC, State. 
REASON: 1.4 (b), (d) 
¶1. (SBU) Summary:  The Ambassador congratulated newly 
inaugurated Deputy Prime Minister Estanislau Da Silva and 
discussed the new Government's priorities.  According to Da 
Silva, who had been the Fretilin leadership's first choice for 
Prime Minister, the discussions between President Xanana Gusmao 
and Fretilin leaders to select new Government leaders were 
relatively quick and non-confrontational because Fretilin took 
an accommodating stance.  End summary. 
 
¶2. (C) During a courtesy call to congratulate newly inaugurated 
First Deputy Prime Minister Estanislau Da Silva, the Ambassador 
learned Da Silva's views on the future of policing, the draft 
election law, and other priorities of the new Government.  Da 
Silva said he had been surprised that Timorese police (PNTL) had 
been so heavily armed in recent years, blamed the problem on 
former Minister of the Interior Rogerio Lobato, and said the 
police should not be given automatic weapons in the future. 
Asked about allegations that arms remain in the hands of 
Fretilin party loyalists in several districts, Da Silva said he 
did not know whether these reports are true but did not discount 
them.  Da Silva said the election law would be a top priority of 
the new Government and predicted that the draft law would be the 
subject of consultations in the coming three months.  He 
believes the existing electoral institutions should be left in 
place but should work with close UN supervision in preparing the 
2007 elections.  (Comment:  There appears to be some tension 
between the position of Da Silva, a Fretilin leader who is close 
to former Prime Minister Mari Alkatiri, and the views of new 
Prime Minister Jose Ramos-Horta.  Ramos-Horta has indicated 
publicly and privately that he prefers a complete restructuring 
of East Timor's electoral institutions, with the independent 
electoral commission (CNE) having authority over election 
administration, whereas Da Silva appeared to endorse the current 
system under which the Fretilin-led Ministry of State 
Administration would run the elections.  Ramos-Horta has also 
suggested that the upcoming UN mission have ultimate authority 
over the 2007 election process, whereas Da Silva spoke only of 
UN "assistance.")  Other priorities for the new Government, 
according to the Deputy Prime Minister, include security and 
housing in order to persuade many thousands of internally 
displaced persons (IDPs) to return to their homes, rural 
development, school feeding programs, re-establishing community 
cohesion, and attracting investment. 
 
¶3. (C) Da Silva spoke briefly about the July 7-8 negotiations 
between Fretilin leaders and President Xanana Gusmao leading to 
the selection of Jose Ramos-Horta as Prime Minister and of Da 
Silva and Rui Araujo as Deputy Prime Ministers.  See Reftel.  He 
described the meetings, which lasted three and half hours on 
Friday and continued for about two hours on Saturday, as brief 
and non-confrontational.  Fretilin had originally proposed Da 
Silva himself as Prime Minister, but Da Silva said the Fretilin 
leaders put up little resistance when Gusmao stated his 
preference for Ramos-Horta. (Note:  President Gusmao's somewhat 
different and more detailed account of the negotiations will be 
reported in septel.) 
 
¶4. (U) Da Silva described his relations with opposition parties 
as good and suggested that there would be regular meetings 
between the new Government and opposition leaders.  He took the 
opportunity to suggest that Parliamentary leaders could benefit 
from donor-funded leadership training.  Asked to elaborate on 
this view, he suggested that some opposition leaders are not 
really interested in working together across party lines. 
 
¶5. (U) Da Silva confirmed that he would retain the position as 
Minister of Agriculture, which he held in the previous 
Government, and that Dr. Araujo would retain the health 
portfolio.  As for the distribution of responsibilities among 
the Prime Minister and Deputy Prime MInisters, Da Silva said he 
would be responsible for social and economic issues including 
labor and youth while Da Silva would be responsible for finance. 
 (Note: This is more or less consistent with the President 
Gusmao's account of the distribution of authority in the new 
Government.  The President suggested to Ambassador today that 
the reform-minded Araujo will be in charge of finance, 
procurement, customs, and other areas that have been or might 
become subject to corruption, whereas Da Silva will be in charge 
of implementing the national development plan and drafting 
needed regulations.  See septel.) 
 
DILI 00000356  002.2 OF 002 
 
 
 
¶6. (C) Comment:  Da Silva is intelligent, friendly, and 
accessible.  He speaks English well but not comfortably.  He has 
a history of cooperation with the U.S. on development issues, 
and he made clear in today's meeting that he welcomes our 
continued assistance and co-operation.  However, at least for 
now when Da Silva says "we" he usually means the Fretilin party 
inner circle consisting of Alkatiri and his closest associates, 
rather than the new Ramos-Horta government in which he is the 
second-ranking official.  End comment. 
REES