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RHHMUNA/HQ USPACOM HONOLULU HI
RHHJJAA/JICPAC HONOLULU HI

C O N F I D E N T I A L SECTION 01 OF 03 SUVA 000409 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 08/14/2017 
TAGS: PREL PGOV MARR PHUM PINR EAID ECON KCRM TV
SUBJECT: TUVALU: NEEDY AND SEEKING USG ASSISTANCE 
 
REF: A. SUVA 398 
     ¶B. SUVA 402 
 
Classified By: Amb. Dinger. Sec. 1.4 (B,D). 
 
Summary 
------- 
¶1. (SBU) Tuvalu's Prime Minister Ielemia remains strongly 
interested in regaining the Peace Corps, accessing the 
Millennium Challenge Account, and providing skilled workers 
for Guam construction projects.  He believes Fiji's Commodore 
Bainimarama should not attend the Pacific Islands Forum in 
Tonga.  Parliament's passage of a bill to "de-corporatize" 
Tuvalu's one radio station and bring it back fully under 
government auspices accents media freedom issues.  It appears 
PM Ielemia is gaining control over a fiscal mess he inherited 
from his predecessor.  Tiny Tuvalu, with almost no resource 
base, always needs donor help and is not afraid to ask.  See 
para 9 for opportunities.  End summary. 
 
Ielemia on PCVs, MCA, Guam, PIF/RIF, and Fiji 
--------------------------------------------- 
¶2. (C) The Ambassador's July 16-19 visit to Tuvalu gave 
opportunity to review a range of bilateral and regional 
issues with Prime Minister Ielemia and his government. 
Ielemia reiterated Tuvalu's strong interest in reviving a 
Peace Corps program (ref A), tapping the Millennium Challenge 
Account, and contributing workers for Guam construction jobs. 
 A number of highly skilled Tuvaluans returned last year from 
Nauru where they worked in the phosphate industry.  Most are 
now unemployed.  We described the state of play in Washington 
on PCVs and the MCA, and suggested Tuvalu prepare a skills 
data base for the day when Guam employment kicks in.  Ielemia 
expressed ambivalence about the Pacific Island Forum (PIF) 
regional restructuring (RIF) proposal, and suggested Pacific 
leaders need to see a variety of options.  Ielemia opined 
that Commodore Bainimarama should not attend the PIF meeting 
in Tonga because "nobody elected him" to lead Fiji. 
 
Tinkering with the Constitution 
------------------------------- 
¶3. (SBU) A session of the 15-member Tuvalu Parliament was 
about to begin, with a constitutional amendment on the 
agenda: to increase the number of cabinet ministers from 6 to 
¶8.  Tuvalu governance has been plagued by one-vote 
parliamentary majorities.  Just one member crossing the floor 
has repeatedly caused a change of government, complicating 
efficient political management.  We hear that Parliament did 
approve, after considerable debate, the amendment to add two 
ministers, thereby sweetening the PM's ability to entice 
larger coalitions. 
 
De-corporatizing the radio station? 
----------------------------------- 
¶4. (SBU) Another controversial measure for Parliament was an 
Ielemia proposal to "de-corporatize" the Tuvalu Media 
Corporation (TMC), Tuvalu's radio station and only media 
outlet.  The TMC has always relied on government subsidies, 
which has led some governments to expect the broadcast of 
only good news.  Corporatization a few years ago was intended 
to encourage the TMC to find other revenue sources.  It also 
created an independent board of directors to insulate TMC 
editors and reporters from government influence.  Commercial 
ad revenues remain very scant, and the corporatized TMC had 
to rely on ever-shrinking government subsidies, currently 
A$80,000/year. 
 
A worry about media insulation from politics 
-------------------------------------------- 
¶5. (C) To an extent the political-insulation aspect of 
corporatization worked, though we heard reports that the PM's 
office on occasion was still attempting to manage news.  Last 
December when TMC broadcast a church leader's opinion that 
Taiwan is too influential in Tuvalu, the PM's office 
reportedly complained.  Then, when a TMC producer passed a 
heads-up about a follow-on story, the PM's office ordered 
that the story not run.  We hear that the TMC board fired the 
producer who had contacted the PM's office.  When the PM 
attempted to force the producer's reinstatement, the Board 
refused.  In July, the PM's office reportedly complained 
about a story on the effort to de-corporatize TMC.  We heard 
that the PM's office considered the TMC board to be 
politicized, apparently with some justification since the 
chairman of the board was the former PM's wife.  We are told 
 
SUVA 00000409  002 OF 003 
 
 
Parliament did pass the de-corporatization bill, after an 
intense debate.  That presumably means that the PM, who has 
the TMC portfolio, will now directly oversee the radio 
station.  The Ambassador made clear the U.S. view that media 
freedom is essential in every democracy. 
 
Legal gaps 
---------- 
¶6. (U) The general elections last August resulted in several 
lawsuits challenging results.  In the end, the Tuvalu courts 
rejected all protests.  No Tuvalu high court sittings have 
been possible since last April when the one People's Lawyer 
(public-defender) departed, leaving no lawyer available in 
Tuvalu, aside from the Attorney General's office.  That will 
change shortly when a new People's Lawyer arrives, an Aussie 
coming from the same role in Kiribati.  A case for the Tuvalu 
Court of Appeal concerning alleged discrimination against the 
Brethren church remains pending.  The Court of Appeal has 
never convened, this is the first-ever appeal, and the Tuvalu 
Government has yet to find funds to bring in three judges 
from abroad.  In the meantime, we were told that the Brethren 
sect has stopped attempting conversions. 
 
Responding to a fiscal mess 
--------------------------- 
¶7. (SBU) When Ielemia's new team took office after sweeping 
out nearly all members of former PM Toafa's government in 
last August's elections, they found a fiscal mess.  They say 
government debt totaled A$18 million, including a $5 million 
"suspense account" deficit at the Tuvalu bank, kind of an 
overdraft facility.  Ielemia reined in government expenses, 
including by stopping all ministerial travel overseas unless 
a foreign donor was paying.  That must have been a shock, 
since historically Tuvalu ministers have traveled constantly, 
pulling in per diem.  The Finance Minister said the debt 
total is now under A$10 million.  Rumor has it Taiwan 
contributed several million dollars to ease the burden.  (See 
ref B for more on Taiwan assistance to Tuvalu).  The Ielemia 
Government reports Tuvalu's well-managed trust fund also had 
suffered under PM Toafa, with nearly all annual proceeds 
being tapped for current expenses.  The Ielemia Government 
claims it has built the trust's B account, its rainy-day 
fund, from A$1.2 million to A$13 million. 
 
Communications knock out 
------------------------ 
¶8. (U) In early July, a lightning bolt made a direct hit on 
Tuvalu Telecom's tower, knocking out nearly all 
communications.  Three weeks later, commercial overseas phone 
service still was not available, and commercial internet 
service was so slow as to be unavailable in practical terms. 
However, a wireless network in the government building was 
up, running, and available to those with the right contacts. 
Late one afternoon, we observed the Taiwan Ambassador sitting 
on a folding chair beside the government-building front door, 
busily responding to e-mails on his laptop. 
 
And a slew of requests 
---------------------- 
¶9. (U) Not surprisingly, any visitor to needy Tuvalu will 
receive numerous aid requests.  The Ambassador fielded the 
following inquiries, making no promises but agreeing to pass 
requests along as appropriate: 
 
-- As Tuvalu approaches its 30th anniversary of independence 
in 2008, might the USG make a contribution to the corpus of 
the Tuvalu Trust Fund?  The trust was established by 
Australia, New Zealand, and the UK at independence, has 
benefited from professional management in Australia, and is 
seen as a regional model. 
 
-- The U.S. military left materiel, including ammunition and 
44 gallon drums of liquids, on land and in lagoons of three 
Tuvalu atolls used as WWII air fields.  Tuvalu's Minister of 
Home Affairs seeks a DOD evaluation of health hazards and 
proper handling of any problems discovered. 
 
-- The U.S. military dug extensive "borrow pits" on the 
capitol atoll, Funafuti, when building the WWII air field 
there.  Tuvalu has long aspired to fill in the pits, remove 
eye sores, and reclaim precious land.  The latest proposal is 
to buy aggregate at $12/ton from a site in Fiji and transport 
it to Funafuti.  The PM's office wondered if the USG will 
assist, given the problem's WWII origin.  (Note: An Army 
 
SUVA 00000409  003 OF 003 
 
 
Corps of Engineers study in 2003 estimated the total cost of 
such a reclamation project using Fiji soil would be US$28.5 
million.) 
 
-- The Minister of Home Affairs expressed interest in a U.S. 
ship visit, perhaps by a Coast Guard cutter or a Navy 
frigate, something small enough not to overwhelm Funafuti. 
(Note: The Suva DAO is currently working on a near-term visit 
by a frigate.) 
 
-- The Minister of Home Affairs asked if a ship visit could 
include a surveillance exercise with Tuvalu's patrol boat in 
the EEZ.  (Note: Suva DAO is aware of the request.) 
 
-- The Police Commissioner asked if the USG might provide 
training for Tuvalu police heading to peacekeeping 
operations.  Tuvalu currently is participating in RAMSI in 
the Solomon Islands.  (Note: It appears Tuvalu police will 
participate in an Australia-led exercise in Tonga at the end 
of August.  U.S. forces will be there, too, and will 
presumably have an opportunity to help train the Tuvaluans.) 
 
-- The Police Commissioner inquired about basic FBI training 
courses, particularly focused on money laundering and the 
possibility that some members of an expanding Chinese 
business community may have criminal intentions. 
 
-- Ministers noted frequent offers of deals by international 
businessmen that sound attractive, maybe too attractive. 
Tuvalu has very limited ability to screen such offers.  Could 
the USG assist the vetting process?  We asked for details of 
particular cases. 
 
-- Tuvalu has an HIV/AIDs problem, imported by Tuvaluan 
seamen who roam the world on German merchant ships.  The 
Minister of Health said he knows of 5 confirmed cases, which 
for a population of under 10,000 is worrying.  Might the USG 
help with treatment? 
 
-- The PM and Speaker both asked about educational 
scholarships to the U.S.  We noted that educational 
institutions in the U.S. value diversity and provide 
extensive scholarship opportunities.  We offered the 
Embassy's educational-advising services. 
 
-- The Minister of Agriculture noted a crying need for a 
person with veterinary training, particularly to treat pigs. 
 
Comment 
------- 
¶10. (C) No government is perfect.  The Ielemia team seems to 
have done a relatively effective job of addressing the 
previous government's fiscal sloppiness.  On the other hand, 
the reported efforts to steer radio news are worrying, and a 
rumor was circulating in Funafuti that Ielemia added 
undeserving relatives to a list of those eligible for a 
post-cyclone assistance package.  Since Tuvalu has almost no 
natural resources, officials are always in "ask" mode with 
donors.  It is in the USG's interest to be responsive when 
there are convenient ways to do so.  Tiny Tuvalu has a full 
vote in the UNGA and other international organizations, and 
even a little bit of aid has an impact. 
DINGER