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S E C R E T SECTION 01 OF 05 CANBERRA 000178 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 02/22/2018 
TAGS: OVIP GATES ROBERT OVIP NEGROPONTE JOHN PGOV
PREL, AS 
SUBJECT: AUSMIN 2008: SESSION I (IRAQ, IRAN, MIDDLE EAST) 
 
CANBERRA 00000178  001.2 OF 005 
 
 
Classified By: Ambassador Robert D. McCallum, Jr.  Reasons 1.4. (b) and 
 (d) 
 
¶1. (U) February 23, 2008; Parliament House, Canberra, 
Australia. 
 
¶2. (C) SUMMARY.  The 2008 Australia-United States Ministerial 
Consultations (AUSMIN) -- the first AUSMIN hosted by the 
recently-elected Labor government -- opened with Foreign 
Minister Smith and Defence Minister Fitzgibbon strongly 
reaffirming the transcendence of the alliance and committing 
to strengthen the partnership globally and within the 
Asia-Pacific region.  In the first session, the parties 
reviewed Australia's active role in the region, which they 
agreed provided a strong platform for continued United States 
engagement.  In Iraq, both sides downplayed the impact on the 
bilateral relationship of Australia's planned withdrawal of 
combat troops in mid-2008, with Australia signaling 
willingness to consider additional non-combat inputs in both 
Iraq and Afghanistan.  Recent legislative success by the 
Iraqi Parliament and the improving security situation have 
provided opportunities for civil and capacity building 
engagement.  Iran is of great concern for the partners. 
AUSMIN confirmed a common set of goals for pressuring Iran to 
halt its nuclear program; including continued and stronger 
sanctions.  Australia noted opportunities for engagement, 
including through its embassy in Tehran.  Finally, the AUSMIN 
delegates addressed the Middle East and the work in progress 
on the peace process.  The reliance on regional partners and 
encouragement of the bilateral relationship emerged as the 
most important common goals.  The opening session of AUSMIN 
was marked by the commitment of participants to move forward 
on security, counterterrorism and capacity building in the 
joint efforts of the two nations.  This is the first of four 
reporting cables on AUSMIN 2008. End summary. 
 
¶3. (U) Participants: 
 
UNITED STATES 
Secretary of Defense Robert M. Gates 
 
SIPDIS 
Deputy Secretary of State John D. Negroponte 
Ambassador Robert D. McCallum, Jr. 
Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff 
Admiral Timothy J. Keating, Commander, United States Pacific 
Command 
Acting Assistant Secretary for Political-Military Affairs 
Stephen Mull 
Assistant Secretary of Defense for Asian & Pacific Security 
Affairs James Shinn 
Principal Deputy Assistant Secretary for East Asian & Pacific 
Affairs Glyn Davies 
Tim Davis, Carol Hanlon, Aleisha Woodward, John Crowley, 
QTim Davis, Carol Hanlon, Aleisha Woodward, John Crowley, 
Jessica Powers (Notetakers) 
 
AUSTRALIA 
Minister for Foreign Affairs Stephen Smith 
Minister for Defence Joel Fitzgibbon 
Michael L,Estrange, Secretary of the Department of Foreign 
Affairs and Trade 
Nick Warner, Secretary of the Department of Defence 
Air Chief Marshall Angus Houston, Chief of the Defence Force 
Duncan Lewis, Deputy Secretary of the Department of Prime 
Minister and Cabinet 
Peter Varghese, Director General of the Office of National 
Assessments 
 
CANBERRA 00000178  002.2 OF 005 
 
 
Dennis Richardson, Australian Ambassador to the United States 
Berenice Owen-Jones, Alistair McEachern, Alanna Mackay, 
Antony Horrocks, Marina Tsirbas, Amanda Pickrell, John 
Feakes, Peter West (notetakers). 
 
--------------------- 
THE ALLIANCE 
--------------------- 
 
¶4. (SBU) Foreign Minister Stephen Smith set the tone for the 
AUSMIN meeting by stating the newly elected Australian 
government considers the relationship between the two nations 
as "business as usual."  He described the alliance as 
long-term, enduring and indispensable.  Deputy Secretary 
Negroponte told the Australian delegation he believed that 
Australia's strategic perspective in the Pacific region 
closely mirrored that of the United States, with only nuanced 
differences.  He asserted that the United States is a Pacific 
country and would continue to seek to defend and advance 
common interests through alliances with Australia, Japan and 
South Korea. 
 
------------------------------- 
ASIA-PACIFIC STRATEGIC OVERVIEW 
------------------------------- 
 
¶5. (C/REL AUS) Foreign Minister Smith provided a strategic 
overview of the region and Australia's role.  Among 
highlights of the broad-ranging exchange, he suggested 
Australia wanted to redress the long-standing neglect of its 
relationship with India, an important country whose rising 
power was underestimated.  He stressed the GOA's commitment 
to closer engagement with the Pacific Islands.  Unlike the 
"first class" relationship with Indonesia that the previous 
Australian government had bequeathed the current government, 
relationships with other Pacific islands, notably Papua New 
Guinea and the Solomon Islands, were not as good, although 
they had the potential to develop positively.  Defence 
Minister Fitzgibbon suggested Australia's posture towards 
global and regional challenges would hinge in part on new 
strategic guidance being developed in a updated White Paper. 
He noted the high percentage of Australian forces currently 
deployed -- three of its six battalions -- limited 
Australia's capacity to respond militarily to new global 
challenges.  "For a small country, with a limited budget, we 
have many problems to tackle," Fitzgibbon said.  He expressed 
that the goal of the White Paper would be to adjust 
Australia's posture for global conflicts of the future. 
 
------------------- 
ENGAGEMENT IN IRAQ 
------------------- 
 
¶8. (C/REL AUS) Secretary Gates described a number of positive 
Q8. (C/REL AUS) Secretary Gates described a number of positive 
developments in Iraq.  The recent extension of the cease-fire 
of the Mahdi Army Militia forces by Muqtada Al Sadr was a 
positive sign.  He also cited passage by the Iraq National 
Assembly of a budget, and legislation on provincial powers 
and an amnesty agreement, which were useful steps forward 
politically for Iraq.  In speaking about the present state of 
the military surge in Diyala province he noted the strong 
effort by local civilians to aid in the fight against Al 
Qaeda in Iraq.  The surge had been greatly aided by Iraqi 
cooperation, according to Secretary Gates.  He cautioned that 
it would be important for the United States to help the 
 
CANBERRA 00000178  003.2 OF 005 
 
 
government of Iraq create jobs for those who had moved away 
from violence and who would be returning to look for jobs. 
 
¶9. (S/REL AUS) A major challenge facing coalition partners in 
Iraq is the negotiation of a long-term strategic framework 
and a Status of Forces Agreement (SOFA), Secretary Gates told 
the Australian delegation.  The U.S. sees the framework as a 
way to help legitimize other coalition member states, but the 
SOFA will be a challenge.  The Iraqis, Gates offered, will 
see it as a question of sovereignty and seek to assert this 
view during the SOFA negotiations.  Deputy Secretary 
Negroponte also noted the challenge of assisting the Iraqis 
in executing their budget in an effective manner.  He is 
encouraged that the Provincial Reconstruction Teams (PRT) are 
beginning to reap benefits in Iraq.  There are twenty-five 
PRTs operating in Iraq and the United States sees them as a 
long-term commitment that may outlive any major military 
commitment. 
 
¶10. (C/REL AUS) "We have always believed that the drawdown of 
our Overwatch Battle Group would not affect the alliance", 
offered Foreign Minister Smith.  He noted that the Australian 
military would leave air and maritime assets in the region 
and the government looked forward to being able to make an 
announcement soon regarding non-military capacity building 
and training efforts in Iraq.  Defense Minister Fitzgibbon 
added that Australia's issue with troops in Iraq is a matter 
of the job having been completed and capacity.  Should 
something in the Pacific region go "pear-shaped" we would 
begin to feel the effects of our forces being stretched, 
Smith said.  The Australian delegation also made the point 
that Al Muthana province has been under Provincial Iraqi 
Control (PIC) for over eighteen months.  By the time 
Australian combat troops redeploy, the province will have 
been under PIC for 2 full years. Chief of Defense Forces Air 
Marshal Angus Houston assured the U.S. delegation that 
Australian combat forces would continue their work until the 
last day of their deployment. 
 
¶11. (C/REL AUS) The participants discussed regional 
assistance for Iraq.  There was general agreement that the 
regional partners have been cooperative and forward leaning. 
Deputy Secretary Negroponte noted that both Saudi Arabia and 
Kuwait are exploring options for opening missions in Baghdad 
and that there has been a large commitment to projects in 
Qand that there has been a large commitment to projects in 
Iraq.  Secretary Gates offered that it is important that the 
regional neighbors move towards embracing Iraq lest they be 
left to look east to Iran.  He acknowledged that there is 
regional concern about a strong Shia bloc of Iraq and Iran. 
He noted the increasing reports of Iraq's Shia "pushing back" 
against Iran.  He noted that as security continues to improve 
he expects to see more and greater engagement by Iraq,s 
regional neighbors.  The two delegations discussed the need 
for Iraqis to seize the opportunities provided by the surge. 
In some ways, Secretary Gates observed, we've asked Iraqis to 
accomplish more than even the U.S. did as it became a nation. 
 
-------------------- 
JOINT ACTION ON IRAN 
-------------------- 
 
¶12. (S/REL AUS) There was general agreement on the issue of 
the Iranian nuclear program and destabilizing activity in the 
region.  Both delegations noted their support for United 
Nations Security Council Resolutions and the UN process. 
 
CANBERRA 00000178  004.2 OF 005 
 
 
There is shared concern over Iran's pattern of nuclear 
development and support for terrorism.  From Iraq to Lebanon, 
the partners noted that Iran has eschewed an international 
framework for peace and continues to be provocative.  Deputy 
Secretary Negroponte noted that the Iranian government is 
 
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responsible for supplying explosively formed projectiles 
(EFP) to the Taliban in Afghanistan. 
 
¶13. (S/REL AUS) Secretary Gates offered that Russian 
President Vladimir Putin had confided to him that a nuclear 
weapons capable Iran was Russia's greatest security concern. 
The Secretary added the U.S. hoped that Putin would join the 
international community in response to this concern.  Nick 
Warner, Secretary of the Department of Defence, offered that 
"sticks are fine, but carrots are also necessary".  He 
suggested the U.S. should consider a grand rapprochement. 
Reformers still exist in Iran, he insisted.  "It may take 
five or ten years for the political cycle to bring them back, 
but the U.S. should be ready to engage," Warner said.  On the 
question of diplomatic relations, Secretary Gates noted that 
every U.S. president since 1979 has tried in some way to 
engage Iran without success.  "They show no desire to work 
with the international community."  He also stated that there 
has been dialogue and opportunity via talks that have been 
held in Baghdad and with the EU-3; France, Germany and the 
United Kingdom.  These nations can be useful in bringing Iran 
into the international community.  Secretary Gates allowed 
that the multilateral channel could provide a path to a civil 
nuclear program for Iran, but only after Iran is in full 
compliance. 
 
¶14. (S/REL AUS) There may be no "grand bargain", but 
sanctions, even small sanctions, have an effect, asserted 
Secretary Gates.  The Iranians don't like pressure.  "They 
 
SIPDIS 
must be faced with hard choices," Secretary Gates said. 
Sanctions that target the leadership have been particularly 
effective.  The banking community is working effectively to 
stem the flow of capital into the country's economy.  The 
Australian delegation offered that their embassy in Tehran 
provides a great opportunity to understand what is occurring 
in the country.  Foreign Minister Smith offered Australia's 
help in providing context and assistance in the effort to 
bring Iran into the international community. 
 
------------------------------- 
THE MIDDLE EAST, POST ANNAPOLIS 
QTHE MIDDLE EAST, POST ANNAPOLIS 
------------------------------- 
 
¶15. (C/REL AUS) The President of the United States is 
committed to pressing forward in the Middle East and may 
return to the region this calendar year, Deputy Secretary 
Negroponte told the AUSMIN delegates.  Both delegations 
agreed that it was important to increase the security 
capacity of the Palestinian Authority.  Foreign Minister 
Smith noted that Australia has doubled its financial 
assistance post-Annapolis and supported strongly the U.S. 
effort in the peace process. 
 
¶16. (C/REL AUS) The Deputy Secretary offered that the U.S. 
effort was broad and intense.  He noted that the Israelis and 
Palestinians are working bilaterally on the shape of the 
settlement and that the U.S. has brought in General James 
Jones, former Commandant of the Marine Corps, to work on 
regional security architecture.  On the question of Syria, 
Deputy Secretary Negroponte said that it was important to 
 
CANBERRA 00000178  005.2 OF 005 
 
 
work on the issue in a logical manner.  Syrian assistance has 
been troublesome and there is great effect in the work of 
some regional states.  Saudi Arabia, in particular, has taken 
a lead in helping to stabilize Lebanon and blunting Syrian 
interference. 
 
¶17. (U) Secretary Gates, PM Acting Assistant Secretary Mull, 
and EAP Principal Deputy Assistant Secretary Davies cleared 
on this cable. 
 
MCCALLUM