VZCZCXYZ0000
PP RUEHWEB

DE RUEHCP #0288/01 1370534
ZNR UUUUU ZZH
P 160534Z MAY 08
FM AMEMBASSY COPENHAGEN
TO RUEHC/SECSTATE WASHDC PRIORITY 4251
INFO RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHINGTON DC PRIORITY

UNCLAS COPENHAGEN 000288 
 
SENSITIVE 
SIPDIS 
 
FOR THE DEPUTY SECRETARY FROM AMBASSADOR CAIN 
STATE ALSO FOR G, OES, EUR, AND EUR/NB 
 
E.O. 12958: N/A 
TAGS: PGOV PREL SENV DA
SUBJECT: YOUR PARTICIPATION IN THE ARCTIC OCEAN CONFERENCE 
IN GREENLAND 
 
REF: COPENHAGEN 140 
 
¶1. (SBU) John, I'm looking forward to seeing you in Greenland 
at the end of the month.  As OES prepares your substantive 
participation in the conference, I wanted to continue our 
conversation from Crawford and offer a few additional 
thoughts on Greenland and its importance to U.S. interests. 
 
¶2. (SBU) For many, the U.S. presence in Greenland is still 
synonymous with Thule Air Base in northwest Greenland, our 
northernmost military installation in the world.  Thule has 
long played a key role in defending North America against 
ballistic missile attack.  In 2004, the U.S., Denmark, and 
Greenland signed the Igaliku agreements, clearing the way for 
an upgrade to our early warning radar in Thule for use as 
part of our national and allied missile defense architecture. 
 
¶3. (SBU) We have upgraded our non-defense cooperation with 
Greenland as well, to their benefit and ours.  The Igaliku 
agreements created a U.S.-Denmark-Greenland Joint Committee, 
which focuses on strengthening cultural, educational, 
scientific, technical, and commercial ties.  The National 
Science Foundation, NASA, and other USG agencies support 
research in Greenland that advances our understanding of 
global climate change.  Those scientific missions are 
supported by the New York Air National Guard's 109th Air 
Wing, which operates the USG's only fleet of ski-equipped 
C-130s and ferries scientists and equipment to research 
stations across Greenland's inland ice sheet.  The State 
Department offers a growing number of exchange opportunities 
to emerging Greenlandic leaders, and has dispatched an 
English language fellow to some of Greenland's smallest and 
most remote communities. 
 
¶4. (SBU) Greenland has tremendous commercial potential for 
U.S. companies.  The U.S. aluminum giant Alcoa last year 
signed an MOU with Greenland's Home Rule Government to 
construct an aluminum smelter and associated hydropower 
generation facility there.  When completed, this investment 
is expected to top USD 3 billion, making it the largest 
single U.S. investment ever in the Kingdom of Denmark. 
Chevron and ExxonMobil are part of an international 
consortium exploring off Greenland's western coast, and the 
U.S. Geological Survey is completing an assessment of 
Greenland's potential oil and gas reserves.  Its initial 
findings suggest Greenland might have reserves to rival 
Alaska's North Slope.  To help the Greenlanders secure the 
investments needed for such exploitation, I recently 
introduced Home Rule Premier Enoksen and Minister of Finance 
and Foreign Affairs Aleqa Hammond to some of our top U.S. 
financial institutions in New York.  U.S. tourists, 
meanwhile, are increasingly drawn to Greenland's rugged 
beauty, and cruise activity along Greenland's coasts is 
expected to increase dramatically in the years ahead. 
 
¶5. (SBU) So you can see why I am convinced that Greenland's 
importance to U.S. interests will grow.  Thanks to geography, 
historical ties and the Igaliku agreements, the United States 
has the inside track when competing for influence in 
Greenland (even as the Chinese have now started making 
regular visits).  Embassy Copenhagen has proposed a seasonal 
American Presence Post in Nuuk, Greenland's capital, that 
would draw on our existing staff complement to put an 
American officer on the ground in Greenland for about four 
months each year.  I also hope to increase high-level U.S. 
interest in Greenland by continuing to attract visits like 
yours and those of John McCain in 2006 and Nancy Pelosi last 
year (along with two other large congressional delegations). 
 
¶6. (SBU) The need for our engagement is underlined by 
Greenland's steady march towards eventual independence.  On 
May 6 Greenland and Denmark concluded the outlines of a new 
Self Rule Agreement for Greenland, widely viewed as the 
penultimate step to independence.  When the agreement enters 
into force next year, Greenland will take on even more 
autonomy, and will be granted additional foreign affairs 
authorities, particularly in relation to its commercial ties 
with other states.  Independence may be many years off, and 
will likely only happen if significant oil and gas deposits 
pan out.  However, we have a unique opportunity to position 
ourselves now to shape Greenland's (and Denmark's) approach. 
 
¶7. (SBU) As co-hosts for the conference, the Greenlanders 
will highlight their own particular priorities in Ilulissat. 
They are focused on the impact of climate change on 
indigenous populations and ways to promote sustainable 
economic growth in the Arctic.  Greenland's views do not 
 
always line up with Denmark's.  Whereas the Danes regard 
Greenland as a climate change bellwether (the metaphorical 
canary in the coal mine), the Greenlanders are more 
ambivalent, recognizing these changes also bring new 
commercial possibilities for tourism, fishing and cruise 
traffic. 
 
¶8. (SBU) The Danish and Greenlandic relationship is 
characterized and shaped by amity and anxiety, and you will 
likely see both on display in Ilulissat.  Fortunately, both 
countries still maintain great goodwill toward the U.S., 
allowing us to intensify our engagement with both as they 
further define their relationships with each other and the 
wider world.  John, have a safe trip, and I will see you soon 
in Ilulissat.  Best, Jim 
CAIN