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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 000433 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 09/04/2017 
TAGS: PREL PGOV MARR PHUM FJ
SUBJECT: FIJI: QARASE RETURNS; BAINIMARAMA SHUNS HIM, 
CLARIFIES ELECTION STANCE: NO SDL 
 
REF: A. SUVA 425 
     ¶B. 06 SUVA 519 
 
Classified By: Amb. Dinger.  Sec. 1.4 (B,D). 
 
Summary 
------- 
¶1. (C) Deposed Prime Minister Qarase returned to Suva last 
Saturday.  He announced willingness to assist the interim 
government (IG) to bring Fiji back to democracy rapidly. 
Interim PM Bainimarama dismissed the thought that Qarase and 
his SDL Ministers could play any role, now or after a future 
election.  (We comment that the military statements add fuel 
to skepticism about the IG's "in principle" acceptance of 
free and fair elections by March 2009.)  In other news, it 
appears IG lawyers are adjusting their defense for the coup: 
from "doctrine of necessity" to reliance on President 
Iloilo's purported "reserve powers."  An IG counter-suit 
against Qarase raises again a military allegation from last 
November that the UK, Australia, and U.S. COMs urged a 
mutiny.  The six remaining expat Court of Appeal judges have 
resigned, complaining about Acting Chief Justice Gates.  The 
Fiji economy remains depressed, despite suggestions by 
Finance Minister Chaudhry that the rebound is beginning. 
Chaudhry claims Merrill Lynch (Asia Pacific) is prepared to 
float "bilateral loan financing" of up to US$500 million to 
the IG.  End summary. 
 
Qarase in Suva, offers to help IG with elections 
--------------------------------------------- --- 
¶2. (U) Laisenia Qarase flew back to Suva on Saturday, Sept. 
1, after 9-months of exile on his remote home island.  In the 
end, he arrived via an Air Fiji charter.  The Fiji military 
(RFMF) let the flight happen.  Front-page photos showed 
friends and family welcoming Qarase at the airport, and more 
supporters greeted him at church and at the family home 
during the weekend.  Media highlighted the reunion of Qarase 
with his grandchildren for Fiji's Fathers Day, Sept. 2.  The 
SDL party held a welcome-back ceremony for Qarase on Sept. 4. 
 An SDL spokesman reported a threatening call from the 
military beforehand.  The military denied it ordered such a 
call. 
 
¶3. (U) Qarase told reporters he hopes to enter into dialogue 
with Bainimarama to find ways to help Fiji recover from its 
current economic and political woes, in particular to move 
rapidly to new elections.  Qarase said he would be prepared 
to run in such elections, if his SDL party wishes.  Qarase 
dismissed the military's claim that a "clean up of 
corruption" justified last December's coup.  Qarase noted 
every country faces corruption challenges, and he alleged the 
interim government (IG) has corruption problems of its own. 
 
Bainimarama says Qarase not part of Fiji's future 
--------------------------------------------- ---- 
¶4. (U) Bainimarama and RFMF spokesman LtCol Tikoitoga both 
made clear on Sept. 2 that the "military council" remains 
adamant the Qarase crowd must never return to power.  The 
military aim for Fiji is "a united country, free of divisive 
policies."  Bainimarama said that "for Fiji to move forward 
and stop the coup culture, people like Qarase and his 
Ministers should not be part of a democratically elected 
government."  Bainimarama said "racist policies" of the 
Qarase Government increased after the 2006 election and 
provoked the coup.  "We are fighting against everything he 
stands for."  Bainimarama said Qarase should stop calling for 
an early election which "would not happen until the 
military's plans for taking Fiji forward are completed."  As 
for dialogue, Bainimarama said Qarase didn't want dialogue 
with the military during six years as PM, so "Qarase has 
nothing to offer the interim regime." 
 
Qarase's driver detained 
------------------------ 
¶5. (U) According to media reports, the military took Qarase's 
long-time driver to the barracks for questioning on Monday, 
Sept. 3.  Associates of Qarase reported the driver was 
beaten, but not so severely as to require medical care. 
Military spokesman Tikoitoga said the driver is an army 
reservist who still is employed by the PM's office.  The 
spokesman said it is a security risk to have a Qarase 
loyalist working in the interim PM's office, so the driver 
has been asked to resign. 
 
FHRC's Shameem offers another creative coup defense 
 
SUVA 00000433  002 OF 003 
 
 
--------------------------------------------- ------ 
¶6. (C) Meanwhile, Fiji Human Rights Commission Director 
Shaista Shameem, who offered a poorly thought-out defense of 
the coup in a report prepared for the UN Human Rights 
Commission in late December, has prepared a follow-up 
analysis for the UNHRC that proposes the military's removal 
of Qarase was not a coup at all and did not violate the PM's 
human rights.  The new document's version of events ignores 
the December history and seems counter to the Fiji 
Constitution in arguing that Bainimarama was justifiably 
acting on behalf of President Iloilo.  We understand several 
Fiji lawyers are preparing a rebuttal that FHRC Commissioner 
Shamima Ali will provide the UNHRC. 
 
Hong Kong legal advice: a new presidential spin? 
--------------------------------------------- --- 
¶7. (C) On the weekend, we spoke with one of the IG's 
attorneys, who referred several times to Hong Kong lawyers 
recruited by interim Attorney General Sayed-Khaiyum to build 
defenses against lawsuits by Qarase, suspended Chief Justice 
Fatiaki, and others.  FHRC Director Shameem's new legal 
analysis -- away from invoking a "doctrine of necessity" and 
to a proposal that President Iloilo, under constitutional 
"reserved powers" could order Bainimarama to remove Qarase -- 
may reflect the Hong Kong advice.  The same theme appears in 
a new IG counter-suit against Qarase alleging he failed to 
keep Iloilo "generally informed" of events as required under 
the Constitution. 
 
A reference to Amb-RFMF discussions last November 
--------------------------------------------- ---- 
¶8. (C) Interestingly, one allegation in the counter-suit 
relates to a meeting the UK, Australia, and U.S. COMs had 
with senior RFMF leaders Teleni and Driti last November (Ref 
B).  After that meeting Driti claimed publicly that the 
envoys had urged a mutiny against Bainimarama, who was in New 
Zealand at the time.  The envoys responded publicly that 
their instructions were to make clear how disastrous a coup 
would be for Fiji and particularly for the RFMF, and to spell 
out the kinds of sanctions that would be invoked.  The 
counter-suit proposes Qarase failed to inform President 
Iloilo that the envoys "encouraged" Teleni "to withdraw his 
support for Commodore Bainimarama as head of the RFMF and of 
their threat to withdraw financial aid to Fiji should there 
be any military intervention into the government."  Comment: 
The envoys never encouraged Teleni to withdraw his support 
for Bainimarama, i.e., to mutiny.  They also did not 
coordinate the RFMF meeting with Qarase or his office. 
 
Expat Court of Appeal judges resign 
----------------------------------- 
¶9. (C) Constitutional cases remain slow-moving.  Eventually, 
though, trial courts will make judgments and appeals will 
follow.  The Fiji Court of Appeal suffered a blow last week 
when the six remaining expatriate judges resigned, citing a 
concern that acting Chief Justice Gates has taken 
administration of the Court of Appeal out of their hands. 
They said Gates did not consult them about a Court of Appeal 
sitting last week for which Gates assigned three Suva-based 
high-court judges, and Gates did not take up an offer by the 
senior Appeal judge to plan a sitting in November.  Gates 
responded, "The Court of Appeal will continue as it always 
has, though individual judges may change."  Comment: Rumors 
are floating that the IG's intention is to replace Australian 
and New Zealand Court of Appeal judges with newcomers from 
places like Hong Kong, Singapore, and India. 
 
Economy still down; Chaudhry optimistic, sees US loan 
--------------------------------------------- -------- 
¶10. (C) Interim Finance Minister Chaudhry suggested last week 
that Fiji's economy is starting to improve, though the GDP 
will contract by 3.1% this year.  Chaudhry estimated 
inflation will drop from 7% to 4% later this year.  He 
estimates growth of 1.9% for 2008, based largely on a 
recovery in the tourism sector.  Most everyone else we talk 
to is much more pessimistic.  Reserve Bank Governor Narube 
told us last weekend that economic signs are not good and he 
worries about political repercussions.  The President of the 
Hotel Association estimates tourism revenues are down 40% for 
the first six months of 2007, contrary to Bureau of 
Statistics data that suggest no significant change from 2006. 
 The tourism sector does not sense a rebound as yet.  The new 
owner of the Vatakuola gold mine saw re-opening halted last 
week when the Revenue and Customs Authority froze its bank 
account over former owners' back-taxes from 1988.  Chaudhry 
 
SUVA 00000433  003 OF 003 
 
 
reported on Sept. 4 that he has received an offer from 
Merrill Lynch (Asia Pacific) for "bilateral loan financing" 
of up to US$500 million, with details being negotiated. 
Comment: One presumes, given the IG's financial situation, 
that loan terms would be costly. 
 
Comment 
------- 
¶11. (C) Qarase's return to Suva has ratcheted up political 
debate.  Bainimarama's suggestion that the Qarase Government 
became more racist after the 2006 elections is odd.  A number 
of Qarase policies before those elections appeared 
race-based.  After the elections, it seemed Qarase turned a 
new leaf in setting up a multi-party cabinet.  The next four 
months were as non-racist a period as Fiji has seen in recent 
years.  The RFMF's reiterations that elections can't take 
place until Fiji's population is properly educated to be 
non-racist, etc., and that the military will not permit the 
return of Qarase and his Ministers to governance add to 
skepticism about the IG's "in principle" agreement to free 
and fair elections by no later than March 2009.  The latest 
legal theory to defend the coup, as articulated in the IG's 
counter-suit against Qarase, would seem to require President 
Iloilo to testify in court about Qarase's briefings.  That is 
difficult to envision.  By several recent accounts, Iloilo is 
sinking more and more into senility.  Even last December, he 
was not an independent actor. 
DINGER