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RUCNDT/USMISSION USUN NEW YORK 0266
RHHMUNA/HQ USPACOM HONOLULU HI

UNCLAS SECTION 01 OF 05 SUVA 000459 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ETRD EAID FJ NZ XV
SUBJECT: ASSISTANT SECRETARY HILL'S OCTOBER 25 MEETING WITH PACIFIC 
ISLAND LEADERS 
 
¶1.  (SBU) Summary: Pacific heads of government welcomed EAP 
Assistant Secretary Hill's participation in a Pacific Islands Forum 
special session with the U.S. in Fiji on October 25, 2006, as a sign 
of stepped-up U.S. engagement with the region.  A/S Hill proposed to 
revitalize the Joint Commercial Commission by hosting a meeting in 
Washington in 2007 that would examine market access and other 
issues.  He also undertook to explore the possible timing of a 
high-level meeting of island leaders with the U.S. and discussed in 
detail the leaders' interest in greater people-to-people exchanges, 
including an expanded Peace Corps presence in the region.  Hill 
expressed USG appreciation for island leaders' support for Guatemala 
in the UNSC elections and highlighted the role Forum countries play 
in peace-keeping and stabilization operations, particularly in Iraq, 
Afghanistan, and East Timor.   End Summary. 
 
¶2. (U) EAP Assistant Secretary Christopher R. Hill met with Pacific 
island heads of government on October 25, 2006, in Nadi, Fiji, at 
the annual Pacific Islands Forum (PIF) Meeting.  The encounter was a 
unique "special session" for the United States with island leaders 
and took the place of the United States' traditional Post Forum 
Dialogue with ministers. 
 
¶3. (SBU) Fiji Prime Minister Qarase chaired the special session.  In 
his opening statement, he called this discussion with the U.S. 
"overdue" and said Forum members hope the special session would kick 
start discussion on the future of the United States' relationship 
with the Pacific.   Recalling America's central place in the modern 
history of the Pacific, in particular World War II, Qarase said 
Pacific countries hold the U.S. in high esteem and share a 
commitment to strengthen relations.  Qarase noted that, because of 
the U.S. Pacific territories, America's strong links to the Freely 
Associated States, U.S. participation in South Pacific Regional 
Environmental Programme (SPREP) and the Pacific Community (SPC), and 
the large Pacific population living in the U.S., Pacific islanders 
are inclined to see America as not just a friend but also as a 
neighbor.  Nevertheless, he said, it appears that the relationship 
could and should be stronger.  (In a subsequent intervention, Tongan 
Prime Minister Sevele expressed this sentiment less diplomatically. 
To the embarrassment of his colleagues, he cited briefing papers the 
Forum Secretariat prepared for leaders that said the U.S. no longer 
sees the Pacific as a region of strategic significance and has 
scaled back its engagement accordingly.)  Qarase noted that the 
Pacific Plan, which Forum leaders adopted last year to guide the 
region's development, calls for a reassessment of ties with external 
parties.  Relative to some other partners, such as Japan, France, 
and China, he observed that the U.S. does not currently have a 
high-level consultation mechanism with Forum participants apart from 
the Post Forum Dialogue, which, he said, is not sufficient. 
 
--------------------------------------------- --------- 
Security (Maritime Security, Transnational Crime, and Peacekeeping): 
 
--------------------------------------------- --------- 
 
¶4. (U) A/S Hill thanked Forum leaders for arranging the special 
session, which, he said, highlights the important friendship the 
U.S. has with the nations of the Pacific.  He emphasized that the 
United States remains deeply committed to the Pacific islands and is 
looking for opportunities to increase engagement with the region. 
A/S Hill said that the U.S. is eager to expand cooperation on 
maritime security and transnational crime and also values Pacific 
contributions to regional and international peacekeeping operations 
such as the Regional Assistance Mission to the Solomon Islands 
(RAMSI) and Fiji's and Tonga's global deployments.  Elaborating on 
these themes, he told the leaders that the U.S. Coast Guard is 
committed to providing training and other assistance to countries in 
the region to improve marine law enforcement, search and rescue, and 
fisheries enforcement and is interested in improving the 
interoperability of all our maritime law enforcement agencies.  A/S 
Hill held up the at-sea gathering of Pacific patrol boats, planned 
for December, as an example of the Coast Guard's engagement with 
Pacific partners.  He praised regional efforts to combat money 
laundering and announced a new U.S. contribution of 1.2 million 
dollars to the Pacific Anti-Money Laundering Program. A/S Hill said 
the U.S. is also interested in how the U.S. and other regional 
partners can help Pacific islands to further develop their strength 
in peacekeeping operations, with a focus on both military forces and 
 
SUVA 00000459  002 OF 005 
 
 
stability police. 
 
¶5. (SBU) Papua New Guinea Prime Minister Somare asked if the U.S. is 
prepared to assist with Pacific states' "surveillance needs," 
particularly the need to monitor criminal activities originating in 
Southeast Asia.  EAP/ANP Director McGann replied that U.S. 
assistance is aimed at strengthening governance.  New Zealand Prime 
Minister Clark acknowledged the importance of past U.S. support on 
implementation of money laundering and terrorist finance measures, 
and commented on the difficulty small states, even New Zealand, 
sometimes have in keeping up with the ever-rising standard.  In 
response to a question from Ambassador Dinger, Pacific Islands Forum 
Secretary General Urwin said that it is too early to know how 
 
SIPDIS 
effective U.S. assistance has been in countering money laundering, 
in part, because there is a lack of data on the extent of the 
problem.  On peacekeeping, Urwin noted the existence of a regional 
policing initiative.  He suggested that the U.S. consider linking 
peacekeeping capacity-building efforts to that initiative as one 
means of moving forward. 
 
--------------------- 
Trade and Investment: 
--------------------- 
 
¶6. (SBU) A/S Hill told Forum members the U.S recognizes that 
increasing trade is an important priority for the region and that, 
keeping in mind WTO restrictions, he wanted to hear island leaders' 
thoughts on how we can enhance our commercial relations.  A/S Hill 
said that USTR is prepared to work with the PIF's developing 
countries, either individually with representatives in Washington or 
at a future regional meeting to see how they can make use of our 
Generalized System of Preferences (GSP).  He regretted that the 
question of how best to utilize the Joint Commercial Commission 
(JCC) was still on the table and encouraged Forum members to present 
concrete proposals for bilateral and multilateral activities.  PM 
Clark suggested further capacity building for Pacific island states 
that were looking at joining the WTO.  A/S Hill replied that the 
U.S. is absolutely prepared to assist in this area, either in 
Washington or in the region. 
 
¶7. (SBU) SG Urwin remarked that the JCC is a matter of frustration 
for Forum members as well.  Nevertheless, the fact that it already 
exists argues for trying to breathe life into it rather than trying 
to come up with something new.  He said that Forum members are 
looking for assurance from the U.S. that we think it is worth the 
effort, suggesting that previous approaches in recent years had been 
met in a fairly negative way with the U.S. not giving any indication 
of how it wants to proceed.  PM Qarase explained that economic 
growth is one of the pillars of the Pacific Plan and is essential 
for stability.  He argued that the small domestic markets of Pacific 
island states cannot produce adequate growth, even with regional 
integration.  Consequently, market access is key, yet the JCC has 
produced nothing substantial in this regard. 
 
¶8. (SBU) A/S Hill responded that "since the JCC is the horse we've 
got, we need to see if we can put a saddle on it."  He proposed 
convening a JCC meeting in Washington next year.  This meeting could 
include WTO accession and GSP qualifications among other issues, and 
could tap expertise at the World Bank and other international 
institutions in Washington.  He offered to work with the Chair to 
develop additional ideas.  Ambassador Dinger recalled that, in the 
late 90s, the U.S. and the Forum organized a workshop under the JCC 
on phytosanitary restrictions that participants found useful.  He 
suggested that, if there are other such practical issues of concern, 
the JCC could be used to address them.  McGann suggested labor 
mobility as a possible additional topic, particularly mobility 
between Pacific islands, but including access to the U.S. labor 
market, since Los Angeles is now, along with Sydney and Auckland one 
of the biggest "Pacific" cities.  Tonga's PM Sevele cited the PRC's 
practice of facilitating finance for joint ventures throughout the 
Pacific, which, he suggested, is an effective means of strengthening 
economic ties, but is also an example of China's growing influence. 
He said China is coming on strong, and the U.S. should be 
re-assessing its assistance to the Pacific in response.  A/S Hill 
replied that Sevele's observation on joint ventures highlights the 
need to include a private sector component to our discussions but 
said that we should not base decisions on the future of U.S.-Pacific 
 
SUVA 00000459  003 OF 005 
 
 
cooperation on what China is doing in the region.  PNG PM Somare 
suggested adding transport issues, particularly shipping, to the 
agenda. 
 
----------------------------- 
Millennium Challenge Account: 
----------------------------- 
 
¶9. (SBU) A/S Hill commented on a high degree of interest in the 
region in the Millennium Challenge Account, noting that one country, 
Vanuatu, has already benefited.  He told leaders that he would 
travel to Vanuatu right after the Forum to review the MCC program. 
He also noted that the MCC is about to send a team to the region to 
examine the issue of how best to engage Pacific islands states, 
given their small size and the limited staffing of the MCC itself. 
 
 
------------------------- 
People-to-People Contact: 
------------------------- 
 
¶10. (U) A/S Hill recalled his own experience as a Peace Corps 
volunteer, and expressed his belief in the importance of 
people-to-people exchanges.  He told participants of the planned 
deployment of a new regional public diplomacy officer to Embassy 
Suva.  This officer, he said, would have as part of his or her 
mission the job of expanding these sorts of exchanges throughout the 
Pacific.  A/S Hill also highlighted the recent creation of a new 
Regional Environment Hub for the Pacific, which will expand the U.S. 
ability to engage with island governments on environment, science 
and technology issues.  PM Qarase "gratefully acknowledged" that 
many countries in the region receive Peace Corps volunteers but 
lamented a lack of exchange opportunities at the political level. 
He encouraged more high-level visitors, particularly members of 
Congress, to visit the Pacific.  He noted that Fiji is fortunate to 
have a U.S. embassy that helps to keep lines of communication open 
but said many other Pacific countries do not have this avenue open 
to them.  A/S Hill said he shares the PM's view on the importance of 
high-level contacts in addition to more grass-roots exchanges, and 
he acknowledged the disadvantages of the limited U.S. diplomatic 
representation in the region.  He reiterated though that the new 
environmental and public diplomacy hub positions are intended to 
help respond. 
 
¶11. (SBU) PM Clark observed that only seven Forum members have Peace 
Corps missions and inquired about prospects for expansion.  A/S Hill 
replied that Peace Corps has felt very much at home in the Pacific. 
He highlighted the importance the agency attaches to the security of 
volunteers in considering any new program, or continuing an 
established one.  Samoan Prime Minister Tuilaepa asked if there is 
some way Peace Corps could send more retired professionals who could 
assist in capacity building.  A/S Hill said that, while there a 
number of older volunteers, it is a fact that most of those who join 
the Peace Corps are young.  He told the PM that there are other 
programs specifically geared to retired professionals and that he 
would look into those for him.  President Scotty of Nauru complained 
that his country is one of the safest in the world but has still 
been unable have a Peace Corps presence.  Ambassador Dinger reviewed 
his work with Nauru and Tuvalu on their applications for a Peace 
Corps presence.  Peace Corps, he said, acknowledges that both 
countries would benefit from a Peace Corps presence, but resources 
are limited.  A/S Hill promised to provide President Scotty with a 
letter providing a detailed answer to his request for a Peace Corps 
presence in his country. 
 
--------------------------------------------- --------- 
Regional Developments and the Future of U.S.-Pacific Dialog: 
--------------------------------------------- --------- 
 
¶12. (U) Noting that this is the end of the first year of 
implementation of the Pacific Plan, SG Urwin said the region has 
made a 'respectable start" on a number of initiatives and has set up 
processes to achieve the Plan's objectives.  The task now, he said, 
is to translate regional processes into national programs.  Urwin 
said he is encouraged by the extent to which the Pacific Plan is 
being used by donors and other development partners as a guide for 
their engagement in the region.  He encouraged the U.S. to keep the 
 
SUVA 00000459  004 OF 005 
 
 
Pacific Plan in mind as it considered its own activities, since the 
Plan is a statement of the region's priorities.    A/S Hill said 
that the U.S. is pleased with the Plan as adopted.  It "dovetails 
with our own priorities in the region." 
 
¶13. (SBU) Fiji's Foreign Minister Tavola described the Forum 
Experts' Group proposal to revise regional architecture as an effort 
to address the overlapping mandates of the Pacific regional 
organizations, to remedy the disconnect that exists between these 
organizations and national capitals, to realize cost savings and 
efficiency gains, and to improve the delivery of services.  He 
reported that Forum leaders have agreed to establish a task force to 
further examine the issue and that the timeline for any 
restructuring of regional organizations has been left open.  A/S 
Hill responded that the U.S. greatly values its participation in the 
two regional organizations to which it belongs (SPREP and the SPC). 
He said he wholeheartedly agrees with the underlying thrust of the 
reform proposals and supports the spirit of the effort.  A/S Hill 
cautioned, however, that the U.S. has questions about practical, 
legal, and financial aspects of some of the changes that are being 
considered. 
 
¶14. (U) SG Urwin commented on the planned restructuring of the Post 
Forum Dialogue, explaining that, for a sixteen-member organization, 
having separate dialogs with thirteen partners has become unwieldy. 
Consequently, leaders plan to implement a proposal to abolish the 
current structure of the Dialogue and move instead to an all-plenary 
format where Dialogue partners meet with Forum members in a single 
one-day event.  Urwin said that, in addition, Forum members already 
have established regular leader-level meetings with Japan, France, 
the EU, and China.  (Note: in subsequent conversations, EU 
representatives said they are still trying to figure out a way to 
make periodic high-level dialog feasible.)  The U.S. is the other 
major partner, so the question is, what sort of a regime do we want 
to establish? 
 
¶15. (SBU) A/S Hill said he welcomed the Forum initiative to hold the 
special session with the U.S.  He noted that the meeting with 
Pacific leaders in New York on the margins of UNGA is now 
established as an annual event, but he lamented that there is always 
so much going on during the UNGA that it is difficult to fully focus 
on the islands' issues.  (McGann took the opportunity to assure 
Forum members that the U.S. is not opposed to the expansion of U.N. 
offices in the Pacific, which was a concern that some of them had 
expressed in New York in September.) 
 
¶16. (SBU) Samoa's Tuilaepa commented that the proposed Washington 
JCC meeting could be a significant event for leaders and emphasized 
the need to know the timing.  Tonga's Sevele was less subtle.  He 
asked that the proposed Washington event include a meeting with the 
President and that the U.S. commit to regular leaders' meetings, 
perhaps at the mid-term point every four years.  Sevele said that 
the U.S. has been a protector and friend to the countries in the 
region for decades and is a welcome presence.  Nevertheless, in 
recent memory, there have been only two meetings between Pacific 
leaders and a U.S. President.  In addition to the leaders' meeting, 
he advocated formation of a U.S.-Pacific standing committee that 
would meet annually.  Sevele emphasized that strengthened engagement 
with the U.S. is important to the security and well-being of the 
Pacific. 
 
¶17. (SBU) A/S Hill welcomed the leaders' enthusiasm for 
strengthening ties.  He promised to report back to the Forum 
Secretariat on U.S. steps to follow-up on the special session, 
 
SIPDIS 
including providing a timeframe for a possible USG high-level 
meeting with island leaders. 
 
¶18. (SBU) At the conclusion of the meeting, A/S Hill provided the 
leaders with a briefing on the North Korean nuclear issue.  Leaders 
showed a keen interest in A/S Hill's presentation and seemed 
receptive to his message that the U.S. stands by its allies in the 
region in the face of the nuclear threat posed by the North and that 
the issue needs to be resolved diplomatically and on a multilateral 
basis. 
 
-------- 
Comment: 
 
SUVA 00000459  005 OF 005 
 
 
-------- 
¶19. (SBU) Forum leaders, Secretary General Urwin, and other 
officials described the PIF special session with A/S Hill as 
extremely valuable.   The leaders took particular note of A/S Hill's 
willingness to revive the JCC concept through a Washington meeting 
in 2007 and his promise to explore scheduling possibilities for a 
Pacific leaders' high-level meeting with the U.S. in the coming 
year.  Island leaders strongly share the U.S. interest in our 
expanding regional engagement, and this special session was a 
significant step down that road.  End Comment. 
 
¶20. (U) EAP/ANP director McGann cleared this message. 
 
DINGER