O R 312308Z JAN 06
FM SECSTATE WASHDC
TO AMEMBASSY JAKARTA IMMEDIATE 
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C O N F I D E N T I A L STATE 016185 
 
 
JAKARTA PASS TO DILI 
 
E.O. 12958: DECL: 1/30/16 
TAGS: ASEAN PHUM PREL ID KEM KDEM UNSC KAWC PGOV
TT 
SUBJECT: THE SECRETARY'S JANUARY 24 MEETING WITH EAST 
TIMOR PRESIDENT XANANA GUSMAO 
 
¶1. (U) Classified by EAP A/S Christopher R. Hill, Reasons 
1.4 (b) and (d). 
 
¶2. (U) January 24, 2006, 4:30-5:00 PM, Secretary's Outer 
Office. 
 
¶3. (U) Participants: 
 
United States: 
-------------- 
The Secretary 
A/S Christopher R. Hill, EAP 
Ambassador Grover Joseph Rees III 
Executive Assistant Steve Beecroft 
A/S Sean McCormack, PA 
EAP/MTS Desk Officer Sameer Sheth (notetaker) 
 
East Timor: 
----------- 
President Xanana Gusmao 
Foreign Minister Jose Ramos-Horta 
Ambassador Jose Luis Guterres 
DCM Constancio Pinto 
President's Chief of Staff Hermenegildo Pereira 
 
¶4. (C) SUMMARY: In a meeting with the Secretary on 
January 24, President Xanana Gusmao described the 
democratic challenges facing East Timor, especially the 
importance of having a fair and open election process in 
2007, when the first elections since independence in 2002 
will take place. On accountability for crimes against 
humanity, Gusmao assured the Secretary that East Timor is 
committed to revealing the truth. The Secretary stressed 
that free and fair elections are not only about the actual 
vote and that the entire process should be free and fair 
in order to give the election's outcome domestic and 
international legitimacy. She expressed concern about an 
anti-defamation law the GOET plans to enact. Gusmao said 
he also has concerns and will discuss them with Prime 
Minister Alkatiri's advisors. Foreign Minister Ramos- 
Horta explained East Timor's recently signed treaty with 
Australia that equally splits oil and natural gas revenues 
in the disputed area of the Timor Sea and defers the 
maritime boundary issue for another 50 years. END 
SUMMARY. 
 
--------------------------------------------- 
UNOTIL: EAST TIMOR GRADUATES FROM UN TUTELAGE 
--------------------------------------------- 
 
¶5. (C) Warmly welcoming President Gusmao, the Secretary 
asked him about his trip to New York.   Gusmao said he 
attended the UNSC meeting to discuss the UN Office in East 
Timor (UNOTIL) and that he believes it should end as 
planned in May. However, his nation continues to need 
assistance to strengthen state institutions and for 
democratization.  The elections in 2007 will be East 
Timor's first elections since its independence in 2002, 
and the process needs to be as fair and open as possible. 
The recent eight-month long local elections illustrated 
both the capabilities and the weaknesses of Timorese 
institutions. Gusmao said that while in New York, he 
requested the UN to establish a small political office, 
focused on election assistance and additional advisors for 
the financial, justice, and police sectors. The Secretary 
said she is pleased Gusmao believes UNOTIL should end as 
planned because this is a sign of East Timor's success. 
She expressed confidence that other UN agencies can assist 
in helping East Timor face its remaining challenges. 
 
¶6. (C) Gusmao stated that Timorese police especially need 
international training assistance in respecting human 
rights (for example, on when to resort to lethal force) 
since there are many complaints of human rights 
violations. The justice sector is also weak due to the 
lack of proper training and professionalism. The 
Secretary agreed that police sector reform remains a key 
challenge in East Timor and noted that the United States 
has similar programs that are effective in many nations 
and is currently working on how to provide assistance to 
East Timor. 
 
----------------------------------------- 
DEMOCRACY: NOT JUST ABOUT THE ACTUAL VOTE 
----------------------------------------- 
 
¶7. (C) The Secretary said the United States looks forward 
to the upcoming elections and that free and fair elections 
do not begin on the day of the actual vote; instead, they 
begin with the entire electoral process--i.e., ensuring an 
open media and that the government in office is not 
unfairly advantaged. She stressed that the "campaign 
process gives people the confidence" that an election is 
free and fair. The UN Electoral Assistance Division, the 
International Republican Institute, and the National 
Democ-atic Institute would be helpful in ensuring a 
legitimate and open process. President Gusmao replied 
that the first steps include drafting an electoral law and 
educating civil society; the Secretary commended him for 
East Timor's early focus on organization. 
 
 ¶8. (C) The Secretary asked Gusmao about the new penal code 
that the Timorese government plans to enact and expressed 
Washington's hope that a criminal defamation provision in 
the new code will not go into effect.   She emphasized this 
is important because it will set the context within which 
the elections--and whether they are perceived as free and 
fair--will play out.  Gusmao said government officials 
must be better able than ordinary citizens to accept 
public scrutiny, and that he plans to discuss his concerns 
about the defamation provision with Prime Minister 
Alkatiri's advisors when he returns to East Timor. The 
Secretary agreed public officials should not be 
privileged, adding that early decisions correctly made are 
very important in a young democracy like East Timor's. 
 
------------------------------------ 
ACCOUNTABILITY AND FOREIGN RELATIONS 
------------------------------------ 
 
¶9. (C) The Secretary encouraged Gusmao to ensure the Truth 
and Friendship Commission (TFC) does its work credibly and 
holds public hearings. Gusmao said he met with Indonesian 
President Susilo Bambang Yudhoyono on December 24 and will 
work with him to reveal the truth since their individual 
credibility and that of their nations are at stake. East 
Timor's CAVR (Commission for Reception, Truth, and 
Reconciliation) Report--a copy of which Gusmao gave 
Secretary-General Annan on January 20--is a first test 
that will measure how prepared Indonesian society is to 
accept the truth. Yudhoyono fully understands that the 
responsibility to reveal the truth must be a shared 
enterprise. Gusmao said East Timor is committed "not to 
play games" in the TFC and continues to search for a 
viable approach in cooperation with the Indonesia. 
 
¶10. (C) Foreign Minister Ramos-Horta briefed the Secretary 
on the recently signed Timor Sea treaty with Australia. 
The treaty provides for an equal split of oil and gas 
revenues as well as a 50-year deferral of the "seemingly 
irreconcilable" issue of the maritime boundary between the 
two nations. East Timor will negotiate the placement of 
the pipeline and production facilities over the next few 
months; it will not be dogmatic though and will propose 
that the World Bank conduct an independent study on the 
 feasibility of a pipeline connection to East Timor. 
Ramos-Horta added that a production facility in East Timor 
will make the agreement better while one in Australia 
would instead taint it with bitterness. 
 
¶11. (C) Gusmao said East Timor's relations with Australia 
are good, and those with Indonesia continue to strengthen. 
East Timor and Indonesia have agreed to approximately 99% 
of the common border. He cited the recent border 
incident--in which the East Timor Border Police Unit shot 
dead three alleged former militia members from Indonesia-- 
to reiterate the importance of proper training of and 
better communication for the Border Police Unit in order 
to avoid future incidents. The Secretary agreed, adding 
that with a newly democratic Indonesia, both nations have 
common work to pursue. 
 
 
RICE