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DE RUEHWL #0704/01 2690451
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FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC IMMEDIATE 4733
INFO RUEHBY/AMEMBASSY CANBERRA PRIORITY 4967
RUEHFR/AMEMBASSY PARIS PRIORITY 0301
RUEHPB/AMEMBASSY PORT MORESBY PRIORITY 0688
RUEHSV/AMEMBASSY SUVA PRIORITY 0651
RUEHKO/AMEMBASSY TOKYO PRIORITY 0658
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY
RUEKJCS/OSD WASHINGTON DC PRIORITY
RUEHC/DEPT OF INTERIOR WASHDC PRIORITY
RUEHUB/USINT HAVANA PRIORITY 0002
RHEHAAA/NATIONAL SECURITY COUNCIL WASHDC PRIORITY

C O N F I D E N T I A L SECTION 01 OF 05 WELLINGTON 000704 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/ANP; NSC FOR KATRIN FRASER; OSD FOR JESSICA 
POWERS; PACOM FOR FPA, J-5 
 
E.O. 12958: DECL: 09/26/2017 
TAGS: PREL PGOV MARR NZ US
SUBJECT: EAP/ANP DIRECTOR MCGANN'S SEPTEMBER 12-13 MEETINGS 
IN NEW ZEALAND 
 
 
Classified By: DCM David J. Keegan; Reason 1.4 (b) and (d) 
 
¶1.  (C)  Summary.  Following the successful US-NZ Partnership 
Forum (reftel), ANP Director McGann visited Wellington on 
September 12-13 for discussions with MFAT and MOD officials 
covering a range of bilateral issues with an emphasis on the 
Pacific Islands.  On Guam, McGann urged MFAT officials to be 
realistic in how New Zealand can best help Pacific Island 
economies benefit from the Guam project and to work closely 
with Australia.  McGann previewed the USG strategy on Fiji 
for the UNGA and relayed USG thinking on the upcoming Pacific 
Island Forum.  MFAT Deputy Secretary James McArthur and 
McGann discussed prospective high-level visits and McArthur 
updated McGann on Cuban activities in the region.  On 
security issues, McGann offered that the bilateral 
cooperation is moving from being circumstantial to one of 
more routine coordination.  The MOD's International Defense 
Relations head Paul Sinclair agreed the threats to stability 
in the southern Pacific are internally driven and will 
continue to pose a long-term demand on GNZ security assets. 
MOD officials lauded the recent visits by BGen Toolan and 
DASD Clad, noting that they represented the most substantive 
defense/security discussions in over two decades.  End 
Summary. 
 
MFAT:  Guam, PIF, Maritime Cooperation 
-------------------------------------- 
 
¶2.  (C)  While in Wellington, EAP/ANP Director McGann met 
with MFAT Deputy Secretaries Alan Williams and John McArthur, 
Americas Division Director Carl Worker and Deputy Director 
Elizabeth Halliday, and other staff members of the Pacific 
Islands and Americas Divisions.  In his September 12 
meetings, EAP/ANP Director Steve McGann encouraged NZ to 
approach the Guam relocation project in realistic terms.  The 
contracting for the base relocation would likely go to large 
firms; subcontracting is probably a better fit for NZ 
companies.  McGann predicted there will be an entire service 
industry needed to support the construction project, an 
influx of 20,000 new workers of varying skill levels -- many 
of whom will need training.  Guam lacks a public 
transportation system and one will be needed.  All of these 
areas are targets of opportunity for New Zealand as well as 
the Pacific Islands.  The USG is committed to seeing the Guam 
relocation project provide a Pacific-wide boost to island 
residents in terms of skills training and income through 
remittances.  The key will be to make those populations 
"labor ready," and McGann encouraged New Zealand and 
Australia to help in this area.  He noted that by October, 
the USG will better understand the labor sectors needed. 
Alan Williams and McGann discussed the risks associated with 
labor mobility for many of the Pacific Islands, which may 
lose to Guam some of the skilled workers that they can least 
afford to lose.  Finally, McGann welcomed the news that the 
GNZ plans to send a NZ business delegation to Guam in early 
October. 
 
¶3.  (C)  On the Pacific Island Forum (PIF), MFAT DepSec Alan 
Williams outlined GNZ thinking regarding the proposed 
Regional Institutional Framework (RIF).  He prefaced his 
remarks by noting that PM Clark will stay for the post-Forum 
dialogue, to show high-level GNZ interest in advancing more 
substantive discussion on PIF issues.  MFAT officials 
deplored the "silo mentality" of government agencies around 
the islands, noting that respective governing councils need 
to work together.  The benefits of regionalisation cannot be 
realized in the absence of a more integrated framework. 
McGann said the USG philosophically supports the RIF 
initiative; the "Pacific way" of slow moving consultations 
does not provide for timely results.  Both the Forum and 
other institutions require active support from key countries 
to help strengthen their initiatives.  Within the USG, there 
remain concerns within various agencies that some sectors 
(e.g., environment) may be weakened.  How the RIF is rolled 
out in Tonga will be important to Washington perceptions. 
Williams responded that the RIF will take time to implement, 
requiring legal and technical work.  PM Clark is willing to 
invest the political capital to move it to the "next stage;" 
the GNZ would like the USG to be comfortable with the 
 
WELLINGTON 00000704  002 OF 005 
 
 
proposal and supportive. 
 
¶4.  (C)  McGann raised the issue of maritime law enforcement 
in the southern Pacific, highlighting USG satisfaction with 
GNZ cooperation.  He explained that the original USG efforts 
to translate a Caribbean-style model to the Pacific had been 
too ambitious.  The US Coast Guard was instrumental in 
helping to develop a different model that was based on 
information sharing.  The structure and relevant officials 
would be the same for law enforcement purposes, search and 
rescue, and protection of fisheries.  McGann credited the GNZ 
for helping to push the process and recognized that the 
French have also been supportive.  DepSec Williams noted that 
he had heard very encouraging reports from the August Quad 
plus one meeting in Washington.  McGann said that law 
enforcement cooperation in the Pacific on a multilateral 
basis will facilitate greater bilateral interoperability 
between the USG and GNZ.  Williams responded that the model 
is supportive of the GNZ's Project Protector and 
sustainability of migratory tuna stocks, which are essential 
for economic stability and development for the Pacific 
islands. 
 
¶5.  (C)  On a different aspect of regional law enforcement, 
MFAT's Mike Shaw added that the Pacific islands were slow to 
respond to the international requirements outlined in various 
UN Security Council resolutions.  Relevant UN agencies have 
since visited the region and recognized the challenges these 
requirements posed for small island nations with limited 
personnel.  For that reason, the Pacific Island region was at 
the bottom of the compliance list, and Shaw pointed out that 
USG and GNZ recognition of the problem has helped advance PI 
understanding of their obligations.  Shaw said that the level 
of sophistication, report writing, and legislative drafting 
has improved as a result. 
 
Fiji 
---- 
 
¶6.  (C)  On Fiji, Alan Williams said that the GNZ was not 
totally surprised at the reimposition of martial law.  There 
had been increased paranoia on the part of Bainimarama, 
economic deterioration, lessening of popular support, and the 
continued legal action by the former PM.  Most senior judges 
resigned en masse and tribal chieftains have called for 
reconciliation.  Williams added that the GNZ has seen no 
signs of genuine commitment to the March 2009 election date, 
although he added that there is a census underway with 
Australian support.  Williams remarked that the GNZ would 
like to incentivize the election process but will not throw 
away money on a process which goes nowhere.  The reimposition 
of martial law was seen by the GNZ as Bainimarama trying to 
shore up support in the military.  MFAT officials warned that 
there exists an alliance between the leaders of the Solomon 
Islands and Fiji within the PIF that could be problematic. 
Fundamentally, however, the international community needs to 
address the coup culture in Fiji.  There will be 
opportunities to press Fiji in the near term, said Williams. 
The EU is considering a process linking financial 
disbursements to benchmarks; NZ is worried that the EU may go 
soft.  With the PIF coming up, there needs to be affirmation 
of the need to return Fiji to democracy, and the UNGA is 
another venue for pressuring Bainimarama.  Finally, Williams 
mentioned the upcoming Kampala Heads of Government from 
Commonwealth countries as a third opportunity, although 
Pakistan may be problematic. 
 
¶7.  (C)  McGann said that the USG view matches that of New 
Zealand; Fiji is moving in the wrong direction and 
Bainimarama has shown no indication he will hold elections as 
promised.  McGann outlined USG thoughts for handling Fiji at 
UNGA, where Bainimarama will try to buy more time and skirt 
the PIF process.  McGann said that A/S Hill will not/not meet 
with Bainimarama in Tonga; PDAS Davies will meet with 
Bainimarama in New York, and US Burns will meet with PI 
leaders  (but not Bainimarama) in New York.  The USG also 
plans to chair an Arias-style meeting of the UNSC on Fiji in 
mid-November.  This forum would include the 15 Security 
Council members, non-UNSC members, interested delegates, 
 
WELLINGTON 00000704  003 OF 005 
 
 
international organizations as well as NGOs, and will be 
geared to increase pressure on Bainimarama.  For the November 
meeting, McGann indicated that the USG would welcome GNZ 
representation from Wellington.  MFAT Deputy Secretary John 
McArthur said that the USG strategy for handling Fiji will be 
welcomed by FM Peters. 
 
¶8.  (C)  Williams mentioned Bainarama's proposal to form a PI 
peacekeeping force for UN operations with Fiji to do the 
training.  McGann noted that the USG has supported continued 
Fiji participation in UNAMI and Lebanon; however, the USG has 
said no to future deployments and rejected a Fiji offer to 
send troops to Iraq.  The regional PKO proposal has merit and 
the USG could entertain a PI force minus Fiji. 
 
Cuba 
---- 
 
¶9.  (C)  McGann and DepSec McArthur discussed Cuba's request 
to open a diplomatic mission in New Zealand, and Cuban 
assistance efforts in the Pacific region.  McArthur explained 
that the Cuban FM has been on a charm offensive, and the 
Cuban government has a request for agrement in with MFAT. 
The GNZ delayed a response until after the US-NZ Forum, he 
said, adding that the GNZ will respond by September 21. 
Cuba, he continued, looked to establish a mission either in 
Australia or New Zealand.  In choosing New Zealand, the Cuban 
FM reportedly told the GNZ that Australia was "unfriendly" 
and working on behalf of the USG at UNGA.  Cuba has an odd 
history of people-to-people programs in New Zealand, such as 
an agreement with Maori University where there have been 
2,000 graduates of a Cuban-taught course.  New Zealand will 
watch the Cubans closely, indicated McArthur, and work 
closely with relevant USG agencies.  In Timor Leste, the 
medical corps outside Dili is Cuban, and the Cubans have 
shown interest in other parts of the Pacific.  McGann 
responded that the USG has no concerns about Cuba providing 
humanitarian medical assistance; it's what comes with it that 
raises Washington concerns. 
 
Defense/Security Meetings 
------------------------- 
 
¶10.  (C)  McGann discussed a range of security issues with 
MFAT Deputy Secretary John McArthur, Paul Sinclair, head of 
the International Defense Relations Branch at the MOD, and 
Wayne Higgins, Director of the Defense Policy and Planning 
Unit within Paul Sinclair's office.  Sinclair reviewed the 
substance of the BGen Toolan and DASD Clad meetings, and 
Sinclair reiterated GNZ desire for a better relationship with 
PACOM, while noting GNZ capacity constraints.  McGann 
observed that USG-GNZ security cooperation within the Pacific 
is central to the bilateral relationship, and the key will be 
to sustain current momentum.  Sinclair stated that the recent 
visits to New Zealand have been the most substantive 
discussions with DOD since the mid-1980s.  McGann said that 
the USG appreciates the resource and personnel limitations of 
the NZ armed forces, but urged the GNZ to find more 
opportunities to say "yes," particularly on high-profile 
issues of importance to the USG. MFAT Deputy Secretary 
McArthur agreed that the GNZ needs to go the extra mile, 
particularly on the defense side.  Paul Sinclair assured 
McGann that the GNZ commitment in Afghanistan will be 
maintained, and that the GNZ is considering strengthening 
their non-military contribution towards the police.  New 
Zealand may also lift its diplomatic contribution and is 
examining NZAID's role.  McGann reinforced A/S Hill's 
suggestion that the GNZ provide training assistance to the 
Afghan National Army. 
 
¶11.  (C)  MFAT Deputy Director for International 
Security/Disarmament Paul Ash reviewed New Zealand's recent 
Proliferation Security Initiative (PSI) efforts, emphasizing 
that the GNZ values PSI on its own merits but also for 
exchanges on counterproliferation issues in general.  He 
noted that the GNZ is trying to persuade some Pacific islands 
to adopt the PSI Statement of Principles.  New Zealand has 
found the PSI exercises useful and believes they will be 
helpful to other countries in the region.  Mike Shaw added 
 
WELLINGTON 00000704  004 OF 005 
 
 
that New Zealand was pleased to be participating in the PSI 
exercise hosted by Japan, and was glad that the USG supported 
GNZ inclusion. 
 
¶12.  (C)  On peace support operations, Ash echoed MOD 
officials regarding the increased tempo of operations, the 
long-term constraints represented by the Solomon Islands, 
Timor Leste, Afghanistan, and the implications for governance 
as well as security.  Ash said that New Zealand would welcome 
more dialogue on lessons learned from similar types of 
interventions and operations.  Regarding the Solomon Islands 
in particular, Ash shared his pessimism as the SI 
government's agenda runs counter to that of the international 
community and RAMSI.  McGann reported on his conversations 
with Taiwanese officials with respect to the SI.  Paul 
Sinclair said that interventions for peace support are long 
term; any expectation that they can be done quickly is 
unrealistic, citing Tonga as an example.  McGann observed 
that there are no external threats to the Pacific islands, 
only internal threats to stability -- Sinclair agreed. 
 
¶13. (C)  Americas Desk Director Carl Worker said New Zealand 
remains keen to promote an alliance of 
civilizations/interfaith dialogue initiative to counter 
radicalism within the region.  Although the Pacific region's 
Muslims are generally moderate, there is potential for 
change.  The GNZ sees its initiative as a means to engage 
large blocs of moderate leaders in a softer manner, which is 
a better fit for a small country like New Zealand.  Paul Ash 
noted that New Zealand has engaged in this type of work 
domestically, now it is time to extend it further into the 
region.  McGann welcomed the GNZ work in this area, 
particularly in how it may apply to Southeast Asia. 
 
Visits 
------ 
 
¶14.  (C)  McGann, Carl Worker, and MFAT Deputy Secretary John 
McArthur discussed timing for a possible FM Winston Peters 
visit to Washington.  Although the dates keep slipping for a 
Peters visit to North Korea, McGann offered that a swing 
through Washington after such a visit could be useful and 
that there are other offices in Washington besides the State 
Department where Peters could have productive meetings.  The 
FM could also present a speech before the Asia Society; such 
a visit would continue the positive bilateral momentum but 
not cloud the electoral processes underway in both countries, 
offered McGann.  Worker noted that the FM has not made plans 
to be in New York for the UNGA; if Peters had not met with 
the Secretary in Sydney, he would have gone to New York. 
Both Worker and McArthur encouraged greater law enforcement 
cooperation, adding that DHS visits have been very useful and 
the GNZ is willing to increase engagement.  Worker said that 
the GNZ would also be receptive to greater engagement and 
discussion with USG counterparts on internal disaster 
management and relief work. 
 
Trilateral PIF Lunch 
-------------------- 
 
¶15.  (C)  Over lunch, McGann and DCM joined DepSec Williams 
and Patrick Coles from Australia,s Department of Foreign 
Affairs and Trade to review Pacific Island issues before the 
PIF meeting in October.  McGann invited Australia and New 
Zealand to send representatives to New York for a meeting of 
the Core Partners.  He stressed that there was a need for the 
Post Forum Dialogue to focus on real issues facing the 
Pacific Islands, including regional architecture and Fiji. 
Both Coles and Williams responded that their countries would 
be eager to participate in the proposed Core Partners 
meeting.  Coles urged that the partners take a maximalist 
approach in their ambitions for the RIF, while recognizing 
that there were significant financial and legal questions 
remaining to be resolved.  McGann responded that the U.S. 
philosophically favors RIF, but we need to see the details. 
We must keep the focus on achieving greater efficiency within 
existing resources. 
 
¶16.  (U)  EAP/ANP Director McGann has cleared this message. 
 
WELLINGTON 00000704  005 OF 005 
 
 
MCCORMICK