VZCZCXRO3301
OO RUEHCHI RUEHNH RUEHPB
DE RUEHDT #0281/01 1511515
ZNY SSSSS ZZH
O P 311515Z MAY 06
FM AMEMBASSY DILI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2608
INFO RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUCNDT/USMISSION USUN NEW YORK PRIORITY 0473
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
RUEHXX/GENEVA IO MISSIONS COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA PRIORITY 0541
RUEHLI/AMEMBASSY LISBON PRIORITY 0463
RUEHLO/AMEMBASSY LONDON PRIORITY 0311
RUEHKO/AMEMBASSY TOKYO PRIORITY 0325
RUEHWL/AMEMBASSY WELLINGTON PRIORITY 0402
RUEHBR/AMEMBASSY BRASILIA PRIORITY 0197
RHHMUNA/HQ USPACOM HONOLULU HI
RUEKJCS/JOINT STAFF WASHDC
RHEFDIA/DIA WASHINGTON DC
RUEHDT/AMEMBASSY DILI 1933

S E C R E T SECTION 01 OF 03 DILI 000281 
 
SIPDIS 
 
NOFORN 
SIPDIS 
 
DEPT FOR EAP/MTS 
NSC FOR HOLLY MORROW 
USPACOM FOR JOC AND POLAD 
 
E.O. 12958: DECL:  5/31/2016 
TAGS: ASEC PGOV MARR PHUM CASC TT
SUBJECT: EAST TIMOR SITUATION REPORT FOR MAY 31 
 
REF: (A) Dili 271; (B) Dili 275 
 
DILI 00000281  001.2 OF 003 
 
 
CLASSIFIED BY: Grover Joseph Rees, Ambassador, U.S. Embassy 
Dili, Department of State. 
REASON: 1.4 (b), (d) 
 
 
 
NOTE: This is a corrected version of Dili __ (probably 279), 
sent a few minutes ago, which inadvertently included the wrong 
date in the subject line.  The text of this cable is identical 
to the earlier cable.  END NOTE 
 
1) Summary: 
Alkatiri backtracks on Presidential control of security; 
Meeting of the Superior Council on Defense and Security 
postponed again; 
Pessoa, not Ramos-Horta, may take Defense portfolio; 
Violence in Dili Declining? 
Status of ADF activities; 
Joint ADF operations with armed FDTL members; 
Baucau; 
Food Security; 
American Citizens. 
End summary. 
 
Alkatiri backtracks on Presidential control of security 
 
2) (SBU) The Government appears to be backing out of agreements 
made at yesterday's meeting of the Council of State.  Sources 
familiar with that meeting have unanimously reported that the 
Prime Minister agreed to the President's assumption of "sole 
responsibility" for the national security forces including the 
police (PNTL) and military (FDTL).  See Ref B.  These sources 
also reported that the Prime Minister agreed that the Ministers 
of Defense and Interior would either resign or be dismissed. 
See Ref B.  Earlier today, however, the Prime Minister made 
several public and private statements to the effect that he 
retains control over the security forces and that any dismissals 
of Cabinet members are "within my exclusive competency" and will 
be done "in my own way and in my own time."  In a meeting with 
USDOD officers assigned to Embassy Dili, FDTL commander General 
Taur Matan Ruak said that "under the Constitution" his 
obligation is to "support the Office of the Prime Minister." 
Shortly thereafter, Matan Ruak reportedly attended a meeting 
with Alkatiri and several key Alkatiri loyalists in preparation 
for a scheduled meeting of the Superior Council on Defense and 
Security. In addition, Interior Minister Rogerio Lobato has 
reportedly refused to resign unless the Prime Minister does as 
well. Alkatiri reportedly told President Gusmao and Foreign 
Minister Jose Ramos Horta this afternoon that he would dismiss 
Lobato only if they agreed to accept an Alkatiri loyalist, 
Antoninho Bianco, as Lobato's replacement.  The President 
reminded the Prime Minister of yesterday's agreement that a 
different person (Gusmao loyalist Alcino Barris) would replace 
Lobato, and at that point the discussion reportedly broke down. 
 
Meeting of the Superior Council on Defense and Security 
postponed again 
 
3)(SBU) The Superior Council on Defense and Security was 
scheduled to meet this afternoon in order to work with the 
President on how to implement new security arrangements under 
yesterday's "declaration of crisis."  See Ref B.  Knowledgeable 
sources have reported that it had been agreed at the Council of 
State meeting yesterday that the Prime Minister would appoint a 
new Minister of Defense (Ramos Horta) and a new Minister of the 
Interior (Barris) in time for them to participate in today's 
meeting. See Ref B.  When Alkatiri subsequently refused to do 
this (see paragraph 2), and the President insisted, the 
scheduled meeting did not take place.  After several more hours 
of discussion among the principals, Alkatiri reportedly agreed 
to hold a Council of Ministers (cabinet) meeting tomorrow 
morning at which the two ministers would resign or be dismissed 
and their replacements would be announced.  The two new 
 
DILI 00000281  002.2 OF 003 
 
 
Ministers will then participate in a rescheduled Superior 
Council for Defense and Security meeting at 3 p.m. tomorrow. 
 
Pessoa, not Ramos-Horta, may take Defense portfolio 
 
4) (C) A source close to the negotiations has indicated that the 
original agreement between Gusmao and Alkatiri, in which Foreign 
Minister Jose Ramos-Horta would assume the Defense portfolio 
while retaining Foreign Affairs, has been changed. Instead, this 
source reports that Senior Minister and Minister of State 
Administration Ana Pessoa will also become Minister of Defense. 
According to this source, the original arrangement broke down 
when Ramos-Horta said he would take the Defense ministry only if 
he were also appointed Deputy Prime Minister in what would 
become in effect a government of national unity.  Alkatiri 
refused to agree to this condition.  It was then agreed that 
Pessoa, a key member of the "Mozambique group" who has been 
Alkatiri's most important advisor and ally, would become 
Minister of Defense.  According to Embassy's source, Pessoa has 
agreed to take direction from the President rather than from the 
Prime Minister in accordance with yesterday's declaration of 
crisis, and the President trusts her to honor this agreement in 
part because of his perception that she has become disillusioned 
with Alkatiri.  (Comment:  Another element that may have 
contributed to this surprising change is that Ana Pessoa is the 
former wife of Jose Ramos-Horta.  Despite their many political 
and philosophical differences, the two Senior Ministers continue 
to regard each other with affection and respect. Ramos-Horta has 
become President Gusmao's most important ally during the recent 
crisis, and he may have been instrumental in persuading the 
President to accept Pessoa.  Nevertheless, it is far from clear 
that she would side with Gusmao and Ramos-Horta in future 
disputes with Alkatiri.  End Comment.) 
 
Violence in Dili Declining? 
 
5)(SBU) Although yesterday began as a relatively peaceful day, 
there was substantial violence and destruction by the end of the 
day. Emboffs traveling through the Becora area saw rows of homes 
aflame and smoke plumes rising from many sections of the city. 
Among the victims were several Embassy FSNs who had their homes 
destroyed and whose only remaining possessions are the clothes 
on their backs. There was somewhat less violence last night, 
possibly because of the calming effects of the President's 
televised address to the nation (see Ref B), but houses were 
burned in several neighborhoods. Early in the evening, before 
the President's address, a grenade explosion was heard by a 
number of people in the Bidau area including Embassy local 
guards at the COM residence. 
 
6) (SBU) There appeared to be substantially lower levels of 
violence today than yesterday.  Emboffs reported more people on 
the street this morning than on previous days in the troubled 
Becora neighborhood, although fires were still smoldering from 
houses that had been burned during the night or in the early 
morning hours.  In the afternoon, however, clashes broke out 
between Loromono (westerners) and Lorosa'e (easterners) armed 
with pipes and slingshots near the Comoro market.  Several 
buildings and many market stalls were burned before the 
Australian Defense Forces (ADF) could calm the situation.  A 
recent agreement between the ADF and the Dili Fire Department 
made it possible for firefighters to respond to the latest round 
of burnings. 
 
Status of ADF activities 
 
7)(C) The Australian Defense Forces (ADF) continue to face 
difficulties with crowd dispersal and control. Emboffs witnessed 
the ADF break up a fight between two small youth gangs. The 
fighting recommenced as soon as the ADF had moved out of the 
immediate area. Situational awareness is also a problem. 
Yesterday evening emboffs witnessed a large mob actively burn 
houses and shops less than a kilometer from two large ADF 
checkpoints. The ADF units were unaware of the activity and 
 
DILI 00000281  003.2 OF 003 
 
 
appeared unable to respond when the problems were reported. 
 
8)(SBU) ADF has begun using select members of the police force 
to assist in conducting patrols. On two separate occassions, 
emboffs witnessed ADF units operating side-by-side with armed 
members of the East Timor national police (PNTL). 
 
Joint ADF operations with armed FDTL members 
 
9(C) Not far from the Metinaro FDTL base, Emboffs observed 
yesterday armed FDTL soldiers working side by side with ADF 
manning a check point. This would appear to contradict several 
public announcements by ADF representatives that there are no 
joint ADF/FDTL operations, and it is also contrary to the 
understanding of Australian diplomats in Dili, but ADF and FDTL 
sources have separately confirmed this operation. (These sources 
stated that the Metinaro checkpoint is the only joing ADF/FDTL 
operation, but see paragraph ___). Approximately one kilometer 
to the east, armed FDTL units are operating their own 
checkpoint, in apparent contravention of the agreement that the 
military would remain in their barracks. Soldiers manning that 
checkpoint report that their objective is to prevent gangs of 
eastern youth from going to Dili, but the FDTL members were seen 
stopping vehicles traveling both directions. 
 
10)(S/Noforn) US Defense representatives assigned to Embassy 
Dili observed two armed and uniformed FDTL members today at a 
checkpoint between Dili and Hera --- the first town east of Dili 
--- today working alongside ADF members.  According to the US 
Defense Representatives' report, ADF sources also reported that 
FDTL will likely be employed more actively to the east of Dili. 
(Comment:  As previously stated in Ref A, Embassy Dili believes 
that the presence of armed FDTL members working jointly with ADF 
members --- particularly at a checkpoint immediately adjacent to 
Dili guarding the approaches to the city --- is deeply 
problematic.  FDTL is widely regarded in Dili as the principal 
perpertrators of killings and other violence during the last few 
weeks.  Joint ADF-FDTL operations could lead to continued 
tension and instability and significantly reduce popular support 
for ADF.  Moreover, the authorized presence of armed FDTL at a 
highway checkpoint immediately adjacent to Dili could provide a 
springboard for further FDTL actions against actual or perceived 
adversaries. End Comment.) 
 
Baucau 
 
11)(SBU) Emboffs visiting Baucau today report that the city is 
quiet and that inhabitants are actively following events in 
Dili. Some Baucau residents fear that that the violence in Dili 
could spread there as well. Police, public transportation, 
government offices, and schools appear to be functioning 
normally in Baucau, and internally displaced persons (IDPs) 
there appear to be gathered in smaller numbers and in better 
conditions than IDPs in Dili. 
 
Food Security 
 
12)(SBU) The government has commenced food distribution in all 
neighborhoods in Dili to help mitigate the effects of the 
prolonged closure of markets. Despite the large crowds gathering 
at the distribution points, there were no reports of violence at 
these sites. 
 
American Citizens 
 
13)(SBU) Approximately 62 non-official American citizens remain 
in East Timor and the Embassy continues to encourage them to 
depart. Today was the last day that Australian military flights 
to Darwin would be available for evacuation. More than 40 seats 
were available on today's Dili-Bali flight. 
REES