VZCZCXRO9572
RR RUEHGR
DE RUEHBH #0349/01 1541509
ZNR UUUUU ZZH
R 031509Z JUN 09
FM AMEMBASSY NASSAU
TO RUEHC/SECSTATE WASHDC 6416
INFO RUCNCOM/EC CARICOM COLLECTIVE
RUEHLO/AMEMBASSY LONDON 0206
RUEKJCS/SECDEF WASHDC
RUWDQAC/COMDT COGARD WASHDC

UNCLAS SECTION 01 OF 02 NASSAU 000349 
 
NOFORN 
 
SENSITIVE 
 
SIPDIS 
 
STATE FOR WHA/CAR JROSHOLT, UK DESK ZSYED, LONDON FOR CPALMER 
 
E.O. 12958: N/A 
TAGS: PGOV PREL SMIG PHUM ECON ETRD EFIN BF TK UK
SUBJECT:  UK DIRECT RULE COMING SOON TO TURKS AND CAICOS 
 
¶1.  (SBU/NF) SUMMARY:  The UK is set to introduce direct rule in the 
British Overseas Territory of the Turks and Caicos Islands (TCI) to 
address evidence of official corruption and financial mismanagement 
as the protests of the embattled ex-Premier and his successor fall 
on deaf ears.  Domestic opposition to the move is weak, but may 
increase as the government's financial woes become clear and the 
economy worsens.  The insular nature of the small islands' 
population will also impact UK efforts to reform governance and 
accountability.  END SUMMARY. 
 
------------------------- 
GOVERNOR: CONSTITUTIONAL 
SUSPENSION GUARANTEED 
------------------------- 
¶2.  (SBU/NF) Gordon Wetherell, Britain's new governor of the tiny 
Turks and Caicos Islands (TCI) British Overseas Territory just to 
the south of The Bahamas, told Embassy Nassau Charge that he is 
certain that the final report from a Commission of Inquiry into 
gross mismanagement by ex-Premier Michael Misick - due to be made 
public in the next few weeks - will cause London to suspend TCI's 
constitution and its elected House of Assembly.  Wetherell admitted 
that the suspension of local elected government is a harsh but 
necessary step toward rectifying years of financial mismanagement 
the by the Misick administration.  In a separate conversation May 29 
with Embassy London Poloff, an FCO officer who covers TCI issues 
observed that "the situation has not improved" in TCI since the 
issuance of the interim report.  The FCO officer affirmed that the 
final report should be complete soon, that HMG would spend a few 
weeks "digesting" the report, and would "almost certainly" suspend 
the constitution and take steps to introduce direct British rule. 
 
------------------------------------ 
EX-, CURRENT LEADERS PROTEST IN VAIN 
------------------------------------ 
¶3.  (SBU/NF) Misick launched a bitter tirade on a radio show May 5 
that blasted Wetherell personally as an arrogant dictator and called 
for TCI independence as the only way to stop the suspension of local 
government and save TCI from losing its "sovereignty."  Misick 
charged that the proposed suspension of the constitution contravened 
the EU Convention on Human Rights, but according to Wetherell and 
local press the UK has withdrawn its commitment to the section of 
the Convention which guaranteed the territory's right to 
self-determination, making the point moot.  Misick is also engaged 
in a series of legal motions in British courts to forestall the 
suspension but Wetherell said he expected the motions would not 
delay the final report, noting the UK High Court had rejected 
Misick's case and he was confident that an appeal to the Court of 
Appeals would similarly fail. 
 
¶4.  (SBU/NF) Galmo Williams, who became Premier on March 25, 
traveled to the UK May 17 for a last ditch direct appeal to London, 
met with members of the House of Lords as well as FCO 
Under-Secretary Gillian Merron, who has responsibility for Overseas 
Territories.  Williams presented actions already being taken by his 
fledgling government to address recommendations of the Commission of 
Inquiry's interim report, such as a Code of Conduct for government 
officials and beefing up laws on apportioning Crown lands.  He also 
explored whether Britain would consider becoming financially 
responsible for the TCI.  Failing to secure an audience with Prime 
Minister Gordon Brown or Opposition leader David Cameron, Williams 
returned with little to show for his effort. 
 
-------------------------- 
PREMIER BLAMES BRITS, SAYS 
SUPPORT FOR UK WILL FIZZLE 
-------------------------- 
¶5.  (SBU/NF) Speaking with the Charge just before his trip to 
London, Premier Williams warned that Governor Wetherell's plan to 
appoint consultative bodies to act as counsels instead of the House 
of Assembly would be a fiasco.  Wetherell separately confirmed to 
the Charge that he was compiling a "representative list" of TCI 
locals, known as Belongers, which would include "every element" of 
TCI society.  These would include Belongers of Haitian descent, a 
highly sensitive issue in a territory of 30,000 of whom half are 
estimated to be illegal Haitian migrants (non-Belongers).  Williams 
acknowledged that the suspension of local governance currently had 
strong support among some Belongers but cautioned that the 17,000 
Belongers were all interrelated and resentment against UK rule would 
build rapidly, particularly as the cost of returning TCI to 
financial soundness began to bite amidst the economic pain of the 
global recession already affecting the islands. 
 
¶6.  (SBU/NF) Premier Williams passionately argued that the British 
bear some responsibility for TCI's mess.  He pointed out that 
 
NASSAU 00000349  002 OF 002 
 
 
Governor Tauwhare, who left under a cloud last July, sat in on 
cabinet meetings and "signed off" on budgets, investment decisions 
and disposition of Crown lands.  Wetherell acknowledged to the 
Charge that the relationship between Tauwhare and Misick was 
uncomfortably close, but ruefully added that the governor's role, 
until now, had been largely ceremonial and pro-forma. 
 
--------------------------------------- 
THEY AGREE: NO KID GLOVES THIS TIME ... 
--------------------------------------- 
¶7.  (SBU/NF) Governor Wetherell insisted to the Charge that the UK 
would not repeat the mistake of being too soft on TCI, a reference 
to what he characterized as London's lenient approach when it was 
forced to intervene against former Chief Minister Norman Saunders' 
government after Saunders was arrested in Miami on drug charges in 
¶1985.  After serving time in the U.S., Saunders returned to a hero's 
welcome and is currently a sitting member of the Assembly. 
Wetherell noted that trial by jury would be suspended when UK rule 
took effect because the pool of jurors was too small for the 
expected criminal prosecutions against senior TCI officials. 
Premier Williams seemed to unintentionally support Wetherell's 
comments when he told the Charge that any prosecutions would 
inevitably hit leaders of powerful local families, which "in a short 
time" would alienate many Belongers. 
 
¶8.  (SBU/NF) Williams predicted that Wetherell would likely seek to 
change the deep- seated patronage system in TCI under the "guise" of 
good governance measures.  Williams pointed out that the opposition 
People's Democratic Party (PDM) was already divided over the 
constitutional suspension, an indicator of the fragility of the UK's 
position.  The point on the fractured nature of TCI's political 
leadership was reinforced by former Bahamian Foreign Minister Fred 
Mitchell.  Mitchell, shadow foreign affairs leader for the Bahamian 
opposition party, recently led a delegation to TCI that wanted to 
explore ways to rally CARICOM against London resuming direct rule. 
Mitchell told the Charge that they found surprising ambivalence 
among TCI government officials and that the opposition PDM refused 
even to meet with the Bahamian delegation.  Mitchell said that this 
explained the lack of serious Caribbean-wide efforts, at least for 
now, against the resumption of direct UK rule. 
 
------------------------------ 
... AS FINANCIAL WOES RUN DEEP 
------------------------------ 
¶9.  (SBU/NF) Wetherell and a team of UK experts are preparing for 
the daunting task of taking direct government responsibilities for 
running TCI, insisting that the UK must suspend local government to 
give the colony "breathing space" to sort out its problems.  He 
"hoped" the constitutional suspension would remain in effect for two 
years, when the next Assembly elections were scheduled to take 
place, a requisite amount of time needed particularly to resolve 
TCI's dire financial situation.  Wetherell said that the final 
Commission report would reveal a larger fiscal hole than widely 
believed.  Misick had overdrawn TCI official lending limits, USD 5 
million, "by well over four-fold" and other debts were also in the 
millions.  Misick himself was apparently settling in the Dominican 
Republic to avoid extradition, but the UK was already working to 
identify his bank accounts. 
 
ZUNIGA-BROWN