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INFO RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE
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RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
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RUEHBY/AMEMBASSY CANBERRA 0980
RUEHWL/AMEMBASSY WELLINGTON 0806
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RUEHBR/AMEMBASSY BRASILIA 0521
RUEHROV/AMEMBASSY VATICAN 0116
RUEHDT/AMEMBASSY DILI 2820

C O N F I D E N T I A L SECTION 01 OF 02 DILI 000158 
 
SIPDIS 
 
NOFORN 
 
DEPT FOR EAP/MTS 
PACOM FOR POLAD AND JOC 
TOKYO FOR HANS KLEMM 
SIPDIS 
 
E.O. 12958: DECL:  4/20/2017 
TAGS: PGOV MAAR KDEM AU TT
SUBJECT: GUSMAO DISCUSSES ELECTION RESULTS AND CNRT STRATEGY WITH 
CHARGE 
 
REF: A) 095 B) DILI 129 
 
DILI 00000158  001.2 OF 002 
 
 
CLASSIFIED BY: Elizabeth S. Wharton, Political / Economic 
Officer, U.S. Embassy, Dili, East Timor, Department of Defense. 
 
REASON: 1.4 (b), (d) 
¶1. (C) Summary: In an April 18 meeting with Charge d'Affaires, 
President Xanana Gusmao described the results of the April 9 
first round of the presidential elections as essentially a loss 
for the ruling Fretilin party with its candidates' performance 
reflecting a broad based desire for change.  He attributed Prime 
Minister Jose Ramos-Horta's lower support in the western 
districts to his role in ordering the International 
Stabilization Force (ISF) operations against dissident military 
leader Alfredo Reinado.  Overall, he concluded that this round, 
involving candidates from most of the parties that will contest 
the June 30 parliamentary elections, provided an accurate snap 
shot of what the parties can expect in that poll.  Gusmao 
assessed the conduct of this election as basically good, despite 
some concerns, noting that it was mostly peaceful, that 
participation was high, and that people felt free to choose. 
Gusmao also provided an overview of his current thinking about 
his new political party, the National Congress for Timorese 
Reconstruction (CNRT), which will hold its national congress on 
April 24-26.  Although Post understands that discussions are 
ongoing between some opposition parties and the CNRT regarding a 
possible pre-parliamentary election coalition, Gusmao threw 
doubt on that possibility, stating that CNRT would go it alone. 
However, it was also apparent that he was still thinking through 
the party's strategy on this front.  End summary. 
 
¶2. (C) In an April 18 meeting with Charge d'Affaires (CDA), 
President Xanana Gusmao conveyed his assessment of the April 9 
elections as basically positive, noting the overall peaceful 
conduct, high voter turnout, and a general impression that 
people felt free to choose.  Nonetheless, he remarked somewhat 
sarcastically on the "sudden rocketing" of votes for Fretilin 
candidate Francisco "Lu'olo" Guterres late on April 10, 
following initial results pointing to him possibly being in 
third place or lower.  CDA relayed our observers' impressions 
that election day processes went well, and despite some flaws, 
did not appear to have significant elements of fraud.  CDA also 
relayed that Post is preparing written recommendations for 
improvements in the second round to convey to both the 
Government and to the UN.  Gusmao was pleased to hear this and 
offered his own suggestions for inclusion, such as providing 
more assistance to the National Election Commission (CNE) and 
improving security presence in certain areas.  When asked what 
kind of message he would be conveying to the public once results 
are finalized, he said that he would be making a public address 
to acknowledge the results and appeal for responsible and 
peaceful conduct of the runoff poll. 
 
¶3. (C) Overall, Gusmao described the election results as "good" 
and reflective of a broad based desire for change, especially 
among Dili residents.  He said that even though they may not be 
admitting it, Fretilin knows that it lost.  (Note: Fretilin 
candidate Lu'olo received 27.89 percent, which gave him the 
first place slot, but is a significant reduction from Fretilin's 
57 percent win in the last national elections.  Moreover, the 
combined strength of opposition party candidates in this 
election was over 60 percent.)  He believes that this could 
result in a more aggressive Fretilin campaign for the runoff 
election, and stated that the relative peace of the first round 
could partly be attributed to Fretilin's misplaced confidence 
that they would win.  He described Fretilin as "not ready to 
lose, not ready to accept that they can make mistakes", and 
compared Fretilin's present attitude with that of Indonesia's 
confidence in 1999 that Timor would vote to remain part of 
Indonesia. 
 
¶4. (C/NF) Gusmao attributes Prime Minister Jose Ramos-Horta's 
relatively disappointing performance in the western districts to 
his role in ordering operations against the immensely popular 
dissident military leader Alfredo Reinado.  Gusmao emphasized 
that this was unavoidable, as Ramos-Horta had no other course of 
action available to him.  Gusmao then went on to discuss current 
efforts underway to resolve the Reinado situation, noting that 
 
DILI 00000158  002.2 OF 002 
 
 
Ramos-Horta has revived efforts to convince Bishop Ricardo of 
Dili to play in intermediary role and that they have discussed 
pulling back the ISF operation.  In addition, he reported that 
Ramos-Horta would travel to Same on April 19, the southern town 
where Reinado's stand off with the ISF occurred, to meet with 
close Reinado ally, Leandor Isaak.  He explained, however, that 
the intent was not to suspend the operation to arrest Reinado, 
only to lighten its touch to create the space for a peaceful 
resolution.  He still insists that Reinado must surrender all 
his weapons and surrender himself to justice. (Note: Post has 
separately concluded that the ISF operation against Reinado is 
essentially dormant.) 
 
¶5. (C) Gusmao described the April 9 poll as a good indicator of 
party support going into the parliamentary elections.  In 
particular, he cited the voting percentage for Lu'olo of 
Fretilin (27.89%), Lasama of PD (19.18%), and Lucia Lobato of 
Social Democratic Party - PSD (8.86%) as closely aligned with 
their likely party support.  He expressed hope that the vote for 
Xavier do Amaral of the Timorese Social Democrat Association - 
ASDT (14.39%) reflected support for that opposition party, but 
noted that do Amaral's personal popularity was the more likely 
cause of his surprising performance.  He did not remark on what 
was indicated by Ramos-Horta's support (21.81%), nor on whether 
the opposition parties would combine to support Ramos-Horta in 
the runoff against Lu'olo. 
 
¶6. (C) Gusmao also provided an overview of his current thinking 
about his new political party, the National Congress for 
Timorese Reconstruction (CNRT).  The CNRT will hold its national 
congress on April 24-26 where it will ratify the decisions on 
party structure reached at an earlier national gathering, but 
will mostly focus on planning the parliamentary election 
campaign.  (Note: Ramos-Horta's campaign manager has told us 
that CNRT plans to use the second round presidential elections 
as a test of their party organization.)  Gusmao described the 
CNRT as a "situational party" that he does not see as existing 
for the long run, but rather dissolving once its objectives of 
"saving the country" are met.  (Reftel A provides more detail on 
Gusmao's thinking regarding CNRT's goal to end the dominance of 
the current Fretilin leadership.)  He portrayed the CNRT as a 
buffer between Fretilin and other opposition parties, 
effectively allowing them the space to campaign in peace. 
 
¶7. (C) Post has been receiving reports from opposition party 
contacts that discussions are underway to form an opposition 
coalition with the CNRT in advance of the parliamentary 
elections.  However, when asked about this possibility, Gusmao 
raised a series of doubts and concerns and stated that CNRT 
would run alone.  He expressed reluctance to enter into the 
difficult negotiations with other parties that would be required 
to affect such a coalition, repeatedly stating that it would be 
"so difficult".  Moreover, he referenced the fact that formal 
coalitions must combine to submit a single list, something he 
seems unwilling to do.  Finally, he expressed his view of the 
CNRT as representing the potential for real reform and that he 
therefore did not want it to be diluted through compromise with 
other parties.  Whether this reflects a genuine refusal to 
consider coalition building remains to be seen.  Gusmao 
expressed some confusion regarding what was possible under the 
law regarding both pre- and post- election coalitions.  Most 
sources regard the law as allowing only the single party with 
the most seats, even if no majority is obtained, to form a 
government.  We understand that Gusmao and the rest of the CNRT 
leadership are still reviewing their strategy and our sources in 
other opposition indicate that discussions are ongoing. 
NAGY