VZCZCXRO2513
PP RUEHPB
DE RUEHSV #0085/01 0620920
ZNY CCCCC ZZH
P 020920Z MAR 08
FM AMEMBASSY SUVA
TO RUEHC/SECSTATE WASHDC PRIORITY 0407
INFO RUEHBS/AMEMBASSY BRUSSELS 0007
RUEHBY/AMEMBASSY CANBERRA 1958
RUEHLO/AMEMBASSY LONDON 0110
RUEHFR/AMEMBASSY PARIS 0103
RUEHPB/AMEMBASSY PORT MORESBY 1485
RUEHWL/AMEMBASSY WELLINGTON 0060
RUEHNZ/AMCONSUL AUCKLAND 0603
RUEHDN/AMCONSUL SYDNEY 1021
RHHMUNA/HQ USPACOM HONOLULU HI
RHHJJAA/JICPAC HONOLULU HI

C O N F I D E N T I A L SECTION 01 OF 06 SUVA 000085 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 02/28/2018 
TAGS: PREL PGOV CJAN PHUM FJ
SUBJECT: EAP PDAS DAVIES FEB 27 VISIT TO SUVA 
 
REF: A. SUVA 075 
 
     ¶B. SUVA 072 
     ¶C. SUVA 9 (FW) 
     ¶D. SUVA 60 (BUADROMO) 
 
Classified By: Amb. Dinger.  Sec. 1.4 (B,D). 
 
Summary 
------- 
¶1. (C) EAP PDAS Davies met with the key players in Fiji on 
Feb. 27, including interim PM Bainimarama.  Davies stressed 
to all the U.S. continuing interest in a return to 
legitimate, democratically-elected governance as soon as 
possible.  The shocking expulsion of the Fiji Sun publisher 
had taken place the day before, and Davies used that example 
to emphasize the need for the interim government (IG) to 
protect human rights, including media freedom.  The IG argued 
it respects media freedom, but not "incitement." 
Bainimarama, in particular, expressed concern that ethnic 
Fijians might roll into Suva and cause violence.  Deposed 
Opposition Leader Beddoes described a plan to accent public 
unhappiness with the IG via a "yellow ribbon" campaign. 
Bainimarama said plans for an election around March 2009 are 
on track, though he emphasized the military's view that 
"fundamental principles" which motivated the December 2006 
coup must be addressed before Fiji can return to democratic 
governance.  In the IG's view, the National Council for 
Building a Better Fiji (the People's Charter process) is the 
vehicle for addressing those fundamental issues.  Others 
actors, including the Commonwealth Secretariat, are 
attempting to set up political dialogues, though how much 
flexibility Bainimarama will be prepared to show is a real 
question. 
 
¶2. (C) Davies reiterated to Bainimarama and others that U.S. 
ties to Fiji and the Pacific are only growing stronger, and 
it is in that context that we practice "tough love" toward 
the IG and its policies.  Bainimarama complained at length 
about the international community's unwillingness to embrace 
his vision.  Bainimarama inquired about the U.S. elections, 
noting he met Senator McCain (in 2005).  On the Fiji economy, 
Bainimarama and Finance Minister Chaudhry both gave upbeat 
assessments.  Others were considerably less confident. 
Davies urged Chaudhry to ensure the American company Fiji 
Water receives fair treatment by tax and customs authorities. 
 In a meeting with Davies, Virisila Buadromo, who will 
receive an International Women of Courage award in March, 
said she is honored, and she hopes the IG will allow her to 
travel to Washington.  After a full day, Davies was left with 
a strong impression that Fiji's troubles continue to fester, 
and pressures may even be increasing.  Davies' media 
conference resulted in excellent front-page coverage in all 
three newspapers, accenting U.S. engagement.  End summary. 
 
A full and varied schedule: Bainimarama the key 
--------------------------------------------- -- 
¶3. (U) In a visit to Suva on Feb. 27, EAP PDAS Glyn Davies 
met with interim PM Frank Bainimarama, interim Foreign 
Minister Ratu Epeli Nailatikau, interim Finance Minister 
Mahendra Chaudhry, deposed PM Laisenia Qarase (accompanied by 
political advisor Tupeni Baba), deposed Opposition Leader 
Mick Beddoes, Fiji human-rights activist Virisila Buadromo, 
PNG High Commissioner, and Chair of the Pacific Islands Forum 
(PIF)-Fiji Working Group, Peter Eafeare, and EU heads of 
mission.  Davies also held a media conference and taped Fiji 
TV's "Close Up" program for airing on Sunday.  The meeting 
with Bainimarama followed from invitation on the margins of 
the UNGA last September.  The meeting lasted for an hour, 
well over the allotted time.  The tone was cordial, though 
tough issues were discussed.  Most of the following 
paragraphs key on themes from the Bainimarama meeting, 
weaving in views from other meetings as appropriate. 
 
Media freedom and the Hunter expulsion 
-------------------------------------- 
¶4. (C) The meeting with Bainimarama began and ended with 
discussion of the IG's expulsion on Feb. 26 of Fiji Sun 
publisher Russell Hunter, an Australian citizen.  Davies 
expressed concern that the sudden and harshly executed act 
was an attack on media freedom, noting that suppressing 
opponents is a slippery slope which can actually increase 
dissent.  Davies pressed Bainimarama and others to allow 
Hunter to return to Fiji.  Bainimarama claimed he has 
 
SUVA 00000085  002 OF 006 
 
 
protected media freedom ever since the December 2006 coup; 
however, "incitement cannot be allowed."  Bainimarama said 
the IG has evidence, including e-mails, that shows Hunter was 
intending to incite violence by the indigenous community. 
Bainimarama suggested that, contrary to speculation, the 
expulsion "did not have much to do" with recent Fiji Sun 
articles exposing alleged tax evasion by Chaudhry (reftels). 
The IG "has to draw the line somewhere.  There must be 
limits."  Davies queried how the media are expected to know 
that line.  He urged the IG to allow a free flow of 
information on both sides, permitting a war of ideas. 
 
¶5. (C) When Davies raised the Hunter case at the Foreign 
Ministry, Nailatikau responded that Fiji "needs to keep up 
with international norms of behavior.  Many here are blind to 
that."  Nailatikau said he is sure there was a "hint of 
politicizing" in the Hunter case, noting Chaudhry deported 
Hunter previously, before the coup in 2000.  Chaudhry, in his 
meeting with Davies, said the expulsion of Hunter was "a 
national security issue" and had no connection to Chaudhry's 
own tax case.  Chaudhry described "absolute media freedom" in 
Fiji, even though "the media are constantly attacking, and 
80% of their stories on the IG are negative."  He revealed 
that the Fiji Human Rights Commission's report on media 
freedom in Fiji would be released later in the week.  (See 
septel.) 
 
The public mood is worrying 
--------------------------- 
¶6. (C) Bainimarama repeatedly expressed concern about 
"incitement" of the indigenous community.  He said the 
peoples of Naitasiri and Rewa (nearby provinces) might flow 
into Suva if sufficiently stirred up.  The military would 
have to "put a stop to marching down the street."  If the 
military has to focus on such activities, "the races we want 
to protect" could be endangered (i.e., the ethnic-Indians 
that many ethnic-Fijians perceive to be supporting the IG 
could become targets of violence).  Bainimarama said his 
strategy since Dec. 2006 has been for troops to undertake 
public-relations efforts in villages to steer the indigenous 
population away from mass action.  "That has worked, but we 
are running short of financing and people to send out." 
Bainimarama proudly said the military "stood up to the test 
in 2000 and 2006.  When Davies suggested the worst outcome 
would be a violent confrontation between the military and 
others, Bainimarama said he warned his Military Council just 
before Dec. 2006 of two dangers: that the people might think 
the event is "another coup" (rather than a clean-up 
campaign), or that a perception might arise that the event 
works against Fiji's best interests.  Bainimarama emphasized, 
"We are sticking with principles."  (Comment: many would say 
both of Bainimarama's "dangers" have come to pass.) 
 
¶7. (C) On the public mood, Opposition Leader Beddoes struck 
his own note of concern about ethnic-Fijian disquiet.  More 
broadly, Beddoes said he plans to propose that opponents of 
the IG wear yellow ribbons as a visible signal of discontent. 
 Doing more, such as street marches, could result in direct 
confrontation with the military, not a happy thought.  Qarase 
and Baba said they are very worried.  Baba said, "When 
Fijians are quiet, worry.  They are getting ready for 
battle."  The IG undertakings to touch the land issue and to 
reform the Great Council of Chiefs (GCC) have touched raw 
nerves. 
 
IG plans for elections - on track? 
---------------------------------- 
¶8. (C) When asked the current IG vision of the way forward 
for Fiji, Bainimarama said the plan is still to hold 
elections in 2009.  Asked "March?", Bainimarama said, 
"Hopefully March, it could be February or April."  He 
sketched the state of play for preparations and complained, 
"It is insulting to have to answer continually" about 
possible delays.  He noted international comments in 
particular.  Bainimarama continued, "Elections alone won't 
solve Fiji's problems."  Long-standing issues need to be 
resolved first.  Unfortunately, "opponents are sabotaging 
things."  He said if opponents like Qarase's SDL keep making 
trouble, "there is no way to move ahead."  Bainimarama said 
he wants to "get out" of power; but the 2000 coup scenario 
taught him a lesson.  Back then, he "gave back executive 
authority before Fiji's fundamental problems had been sorted 
out.  That was a mistake.  Qarase then took off in a 
 
SUVA 00000085  003 OF 006 
 
 
different direction."  Bainimarama insisted repeatedly in the 
conversation, "We have to get the fundamentals right."  Note: 
PNG High Commissioner Eafeare, who chairs the Forum-Fiji 
Working Group, told Davies he is concerned about election 
preparations, and about the state of play in general within 
the IG.  The PIF is keeping pressure on, but the IG has not 
been as energetic as it should be to ensure all steps are in 
place to ensure the election timetable is met. 
 
NCBBF, the People's Charter 
--------------------------- 
¶9. (C) Bainimarama said the National Council for Building a 
Better Fiji (NCBBF, People's Charter process) has had great 
difficulty raising funds.  When Davies observed that major 
players like Qarase's SDL Party and the Methodist Church are 
not engaged in the NCBBF, Bainimarama proposed that many 
Methodists and chiefs are on board, just not the leaders. 
When Davies noted that deposed Opposition Leader Beddoes 
publicly resigned from the NCBBF on Feb. 26, Bainimarama, 
clearly miffed, responded "I have nothing to say about Mick 
Beddoes."  When Davies asked how the People's Charter fits 
within the Constitution, Bainimarama said a referendum or 
some other device will confirm the people's support at some 
stage. 
 
¶10. (C) Beddoes announced he resigned because of the Hunter 
expulsion, the IG's mishandling of Chaudhry's tax issues, and 
a blunt warning by Police Commissioner Teleni that security 
forces will come down hard on those who make "inciteful" 
remarks against the IG.  In conversation with Davies, Beddoes 
said he is not optimistic about the NCBBF at this point. 
Foreign Minister Nailatikau said he hopes "something can come 
from the process.  We have tried everything before.  Let's 
try this."  Nailatikau expressed concern that Beddoes had 
pulled out.  Chaudhry dismissed Beddoes as unimportant, but 
he stressed that the People's Charter "is essential for 
Fiji's future."  It must deal with the "fundamental problems 
of democracy," including the land issue, "which must be 
fixed." 
 
Elections, People's Charter, sequencing? 
---------------------------------------- 
¶11. (C) When Davies asked the IG's plans for sequencing 
elections and the People's Charter, Bainimarama said the 
election timetable is proceeding on the presumption the 
People's Charter will be in place.  He added that the IG is 
"ready for elections next week if that is what the people 
want."   Later, Chaudhry, who clearly has taken an 
organizational role in the NCBBF, told Davies that the 
People's Charter process "is time-lined."  As of now, 
progress is on time, with a product to the people in October. 
 Chaudhry said the initial idea of a referendum is now being 
reviewed, since Fiji law doesn't provide for referenda.  He 
said one option may be to recall the old parliament to 
endorse the Charter.  (Comment: It is hard to imagine the SDL 
majority in the old parliament giving their endorsement, 
unless attitudes change dramatically or the IG plays some 
sort of game.) 
 
Sir Paul Reeves - a Commonwealth dialogue 
----------------------------------------- 
¶12. (C) Commonwealth Secretariat staffer Albert Mariner met 
with Bainimarama just before Davies did to discuss the effort 
New Zealand's Sir Paul Reeves is undertaking at Commonwealth 
behest to facilitate a political dialogue in Fiji, apart from 
the NCBBF process.  Bainimarama told Davies he will take on 
board any ideas that are offered as friendly; "but we can't 
compromise on the principles of December 5."  Bainimarama 
indicated he likes Reeves, and in fact had identified him 
nearly a year ago as a possible international observer for 
the NCBBF process.  Bainimarama said he hopes any dialogue 
engineered by Reeves "will go OK."  He is worried, though, by 
the intention to separate dialogue from the NCBBF process. 
Politicians might create problems.  Chaudhry, in his meeting 
with Davies, noted he was not included in the conversations 
when Reeves visited Suva last December.  Chaudhry hopes he 
will be included when Reeves returns March 1-8.  Qarase told 
Davies he is ready to engage in political dialogue via any 
useful process, including with Reeves; but he and the SDL 
will stay out of the NCBBF. 
 
A Commonwealth Secretariat view 
------------------------------- 
 
SUVA 00000085  004 OF 006 
 
 
¶13. (C) Note: In a conversation with the Ambassador on Feb. 
28, Mariner said the IG (PM PermSec Chand) made all decisions 
about Reeves' meetings last December.  Mariner envisions 
Reeves meeting with leaders of all significant political 
entities this time around: Bainimarama, Qarase, Beddoes, 
Chaudhry, and heads of the smaller NFP and NAP.  If all goes 
well, a group meeting could occur March 7.  It appears 
Bainimarama gave consistent signals to Mariner and Davies. 
He sees the "principles of December 5" as firm; he would 
strongly prefer the Reeves process to come within the NCBBF 
process at some point, preferably initially.  Mariner left 
open with Bainimarama the possible eventual merger of paths, 
while making clear Reeves sees his political facilitation as 
independent of the NCBBF.  Mariner sees that independent 
course as essential if the Reeves process is to have a chance 
of succeeding.  In Davies' meeting with Chaudhry, Davies 
suggested that the NCBBF is "utopian."  Mariner fully agrees, 
as does Reeves.  They believe what must happen is a political 
process building up, not a utopian vision being imposed. 
Mariner reported that Bainimarama said he wants a clear 
agenda for any Reeves process, not another "talanoa" 
talk-fest without direction, as took place (under East West 
Center facilitation) after the 2000 coup.  (Note: EWC's 
Charles Morrison and Sitiveni Halapua have offered their 
services again; but it does not appear the IG is 
enthusiastic.) 
 
Yet another dialogue facilitation: Beddoes 
------------------------------------------ 
¶14. (C) In the Beddoes-Davies meeting, Beddoes described a 
separate effort he has been facilitating with PM PermSec 
Chand for Bainimarama, Qarase, and himself to start an 
informal, no-agenda conversation, beginning with prayer and 
rugby but eventually reaching the thorny political subjects 
at the heart of Fiji's problems.  Beddoes said the first 
session was to have been this week, until the Chaudhry and 
Hunter stories broke.  Beddoes figures that, if his informal 
dialogue effort proceeds, it could at some point meld into 
the Reeves process.  Beddoes and Qarase both described to 
Davies an outcome scenario that would have the old Parliament 
reconvene, address and regularize any controversial IG 
decisions and decrees, and then close down, with a totally 
civilian, non-political caretaker government to oversee Fiji 
through elections, and with nobody in that caretaker 
government allowed to run for office.  One difficult issue 
that would have to be worked through is what to do about the 
military's strong interest in amnesty for coup- and post-coup 
actions. 
 
International intransigence; U.S. tough love 
-------------------------------------------- 
¶15. (C) When Davies, thinking back to his visit in April 
2007, noted a seeming lack of IG progress in reaching its 
goals, Bainimarama said "These are not normal times in Fiji. 
If the international community would come on my side, there 
will be no worries."  He raised the theme of international 
intransigence repeatedly, prompting Davies to ask for 
examples.  Bainimarama cited Australia, New Zealand, and U.S. 
visa bans.  He said, "It is OK to put them on the military;" 
but they should not be placed on families, on board members, 
or on civilian member of the IG.  Davies defended U.S. 
sanction policies, noting our aid cut-off was required by 
law, and our other sanctions are based on principle. 
Bainimarama said "nothing has changed" in the IG relationship 
with Australia and New Zealand, though an NCBBF mission would 
be in Australia shortly.  (Note: Co-Chair Archbishop Mataca 
was in Canberra 2/27 for meetings arranged under an academic 
umbrella.  Another NCBBF participant who intended to go was 
stopped under the Australia visa ban because he serves on an 
IG board.)  Davies described the U.S. long-term and 
continuing interest in Fiji, and stressed that the USG will 
continue to urge the IG to move rapidly to elections, 
following constitutional processes.  Bainimarama responded, 
"Come more often.  I like talking to you."  Davies added, "We 
want Fiji to succeed," and in that spirit we offer "tough 
love." 
 
U.S. elections: a McCain connection 
----------------------------------- 
¶16. (C) Bainimarama asked about the U.S. elections, as did 
every interlocutor in Suva.  He claimed to be watching the 
process avidly, but he seemed to think the election is down 
to Clinton and Obama.  When we mentioned McCain, Bainimarama 
 
SUVA 00000085  005 OF 006 
 
 
seemed surprised, but said with pleasure, "I met him." 
(Note: Per previous reporting, the owners of Turtle Island 
Resort in Fiji's Yasawa Islands arranged for Bainimarama to 
visit over Christmas 2005, wanting to lobby him about a 
controversial water-use, "qoli qoli" bill.  Senator McCain, 
who has vacationed at Turtle Island repeatedly over the 
years, was there at the same time.  The two reportedly had 
conversations in which Senator McCain urged the Fiji military 
to accept its proper role in a democracy.) 
 
Reforming the Great Council of Chiefs 
------------------------------------- 
¶17. (C) Asked about the IG's recent, controversial reforms of 
the Great Council of Chiefs (GCC) (see reftels), Bainimarama 
said reform is needed, and the intention is actually to 
"elevate" the chiefs and make them non-political.  He claimed 
the new regulations' edict that the Minister for Indigenous 
Affairs should chair the GCC, and Bainimarama's currently 
happening to be in that role, should not lead one to conclude 
he wants to control the process. 
 
Judicial independence? 
---------------------- 
¶18. (C) Davies raised the Fiji judiciary, expressing concern 
at reports it has been compromised.  Bainimarama responded, 
"There has been no interference in the day-to-day running of 
the judiciary.  All are working within the Constitution."  He 
asked why the U.S. would have any other impression?  We noted 
the IG's refusal two weeks ago to allow an International Bar 
Association visit, with the interim Attorney General 
expressing concern that Fiji judges might be "influenced" by 
the IBA. 
 
The economy: things are rosy? 
----------------------------- 
¶19. (C) Bainimarama reported that banks are doing well, 
Fiji's Tax and Customs Authority (FIRCA) took in $36 million 
more in 2007 than in 2006, investors are coming in, so, 
"Things are starting to look rosy and will be fine by 
election time."  He acknowledged a slow-down after the coup, 
but "things are now moving up."  Chaudhry was equally upbeat. 
 He said the IG has stabilized finances and reserves. 
Revenues are up, via better compliance.  Chaudhry said issues 
remain.  In particular, resolving the "land issue" is 
critically important for the sugar industry, which must 
dramatically increase production to produce electricity from 
bagasse and ethanol from molasses.  Chaudhry noted that the 
EU's insistence on "backloading" its sugar-reform assistance 
has created problems, but the IG is compensating by funding 
sugar support.  Qarase's view of the economy is considerably 
more jaded.  He sees serious trouble with no solutions in 
sight.  People are hurting, which adds to their discontent. 
Qarase is convinced plenty of land is already available for 
sugar, if properly husbanded, without meddling in the "land" 
issue. 
 
Fiji Water 
---------- 
¶20. (C) Davies raised the Fiji Water case with Chaudhry (see 
ref C), stressing the need for rule of law and a level 
playing field when foreign governments deal with American 
companies.  Chaudhry made clear he cares personally about the 
case.  He argued that Fiji Water has "way under-valued" its 
exports, and he said other Fiji companies are valuing their 
exports at double what FW declares.  He alleged that FW has 
failed to provide requested documentation.  He complained 
bitterly about FW efforts to stifle competition in Australia 
and the U.S. using frivolous IPR lawsuits.  When we asked if 
Chaudhry is tying the IPR and customs issues together, he 
denied it.  He proposed that former FW owner David Gilmore (a 
Canadian billionaire) still controls FW from behind the 
screen of Roll International (a U.S. company).  When we asked 
about binding arbitration instead of the current court 
process to resolve the transfer-pricing issue, Chaudhry 
dismissed the thought.  He said the case will go to trial in 
March.  He suggested the U.S. should commence its own 
investigation of FW.  We noted that U.S. Customs recently 
provided information on FW imports to Fiji's Tax and Customs 
authority, as requested.  (Comment: many of Chaudhry's 
assertions about FW do not bear up under even cursory 
examination, though the IPR-lawsuit tactic appears real.) 
 
Virisila Buadromo 
 
SUVA 00000085  006 OF 006 
 
 
----------------- 
¶21. (C) The State Department will award Fiji human rights 
activist Virisila Buadromo the International Woman of Courage 
award in early March.  Buadromo told Davies she is honored, 
and is greatly looking forward to her first visit to 
Washington...if the IG allows her to leave Fiji.  (Note: the 
IG has placed travel bans on Buadromo and other activists 
from time to time.)  Buadromo described how three judges 
called her into court in February for a "dressing down" for 
having dared to express concern about the Fiji judiciary's 
independence since the coup (ref D). 
 
Comment 
------- 
¶22. (C) The series of conversations left PDAS Davies with a 
strong impression that Fiji's troubles continue, and 
pressures may even be increasing.  In meetings and media 
events, Davies stressed that the USG, as a friend, urges Fiji 
to return to legitimately elected governance ASAP and to 
ensure rule of law, including media freedom and an 
independent judiciary.  The various efforts under way to 
solve Fiji's problems and to find a political solution create 
a degree of hope; however, Bainimarama's insistence, at this 
point, on sticking to "the fundamental principles of December 
5" would seem to leave little room to maneuver, unless 
Qarase, Beddoes, and others are prepared to capitulate.  The 
IG's opponents do not appear to be in a capitulation mood, at 
least not yet. 
 
¶23. (U) EAP PDAS Davies cleared this message. 
DINGER