VZCZCXRO9484
PP RUEHAP RUEHKN RUEHKR RUEHMJ RUEHPB
DE RUEHSV #0267/01 1770503
ZNR UUUUU ZZH
P 260503Z JUN 09
FM AMEMBASSY SUVA
TO RUEHC/SECSTATE WASHDC PRIORITY 1337
INFO RUEHBY/AMEMBASSY CANBERRA 2280
RUEHWL/AMEMBASSY WELLINGTON 0342
RUEHPB/AMEMBASSY PORT MORESBY 1729
RUEHMJ/AMEMBASSY MAJURO 0791
RUEHKN/AMEMBASSY KOLONIA 0363
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RUEHKO/AMEMBASSY TOKYO 0194
RUEHAP/AMEMBASSY APIA 0294
RUEHBJ/AMEMBASSY BEIJING 0367
RUEHBS/USEU BRUSSELS
RUEHIN/AIT TAIPEI 0014
RUCNDT/USMISSION USUN NEW YORK 0456
RHHMUNA/HQ USPACOM HONOLULU HI
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 02 SUVA 000267 
 
SENSITIVE 
 
SIPDIS 
 
PLEASE PASS TO EAP ACTING A/S MARCIEL 
 
E.O. 12958: N/A 
TAGS: PGOV PREL FJ KDEM
SUBJECT: AUSTRALIA AND PACIFIC ISLANDS FORUM SECRETARIAT PLAN FOR 
LEADERS MEETING AND POST-FORUM DIALOGUE PARTNERS SESSION IN CAIRNS 
 
REF:  SUVA 171 
 
 
AUSTRALIA AND THE PACIFIC ISLANDS FORUM WANT NEW ECONOMIC MECHANISM 
 
¶1.  (SBU) Australian high commission and Pacific Islands Forum (PIF) 
secretariat officials reported that the Pacific Leader's Meeting and 
Post Forum Dialogue (PFD) chaired by Australian Prime Minister Kevin 
Rudd, August 4-7 in Cairns, would center on economic development in 
the Pacific region.  The role of International Financial 
Institutions (IFI's) in the Pacific region will be a key issue 
during the general discussion.  Canberra and the PIF hope to move 
forward on developing a mechanism facilitated by the IFI's to 
address regional development and to mitigate the harmful effects on 
Pacific island countries of the global economic downturn.  They 
expect donor countries to begin discussions on management of a 
framework devised by Forum members and key regional partners. 
 
PACER-PLUS NEGOTIATIONS TO COMMENCE IN CAIRNS 
 
¶2.  (SBU) On June 18, Forum trade ministers agreed in Apia to 
recommend that negotiations for a Pacific Agreement on Closer 
Economic Relationship (PACER-Plus) free trade agreement should 
commence at the Forum Leaders Meeting in Cairns.  In a joint 
statement, the ministers said their vision is for PACER-Plus to be a 
truly innovative trade and economic agreement that takes into 
account the different stages of development of each nation. 
Australia sees the implementation of PACER-Plus as part of the 
larger "Pacific Plan" that will strengthen capacity-building and 
meet development needs of Pacific island countries. 
 
PIF SECRETARIAT WANTS CLOSER DONOR COORDINATION 
 
¶3.  (SBU) In addition to the economic issues, the PIF Secretariat 
wants the agenda of the Post-Forum Dialogue to include topics such 
as environment and climate change adaptation, fisheries protection, 
health and labor mobility.  PIF officials understand that it would 
take some effort to reach agreement on an effective donor 
coordination framework between PIF members and PFD partners.  At 
present, there is no way to harmonize the decision of leaders with 
donor country assistance.  Under Australia's chair, it is likely 
that the Cairns meeting will launch a series of discussions 
supported by the PIF Secretariat to enhance donor coordination. 
 
FIJI WILL BE PRESENT WITHOUT A DELEGATION 
 
¶4.  (SBU) Canberra has signaled all along that it does not want the 
situation in Fiji to dominate discussion in Cairns.  However, the 
political situation in Fiji will be a factor at the leader's meeting 
and on the margins of the conference among delegations.  Australian 
high commission contacts and PIF officials say that because of 
Fiji's position as the second largest economy in the Pacific region, 
it is important that its economy not be allowed to collapse. 
 
¶5. (SBU) Australia and the PIF understand that none of their 
objectives for the coming year can be achieved without Fiji.  They 
are keen on developing an approach that takes into account Fiji's 
economy without implying support for its regime, which is consistent 
with the PIF decision not to exclude Fiji from existing programs and 
technical level discussions.  To this end, Australia supports 
prudent IFI engagement with Fiji on a case by case basis, subject to 
strict guidelines and requirements to ensure it helps only the 
people of Fiji and not the regime.  This approach would be 
consistent with current U.S. engagement with Fiji. 
 
¶6.  (SBU) Fiji's interim Prime Minister Bainimamrama said today that 
Fiji is a signatory of PACER-Plus and that no country or party can 
exclude another state or party that has signed and ratified the 
trade agreement.  We also learned that the Melanesian Spearhead 
Group might meet in Port Vila, Vanuatu, in early July and would 
likely invite Bainimarama to discuss Fiji's concerns resulting from 
 
SUVA 00000267  002 OF 002 
 
 
its PIF suspension. 
 
COMMENT 
¶7. (SBU) The PIF Secretariat has not yet released the formal agenda 
for the PFD.  PIF officials expect delegates to discuss PIF/PFD 
topics extemporaneously in a free and spontaneous exchange of ideas 
rather than from fixed talking points.  The concentration of 
leaders, senior officials from the region, and participants from key 
partner capitals will mean numerous bilateral meetings.  Embassy 
Suva anticipates bilateral meetings between USDEL and PIF Secretary 
General Slade, Kiribati President Tong, Nauru President Stephen, and 
Tonga Prime Minister Sevele.  As with previous PIF's, we will 
consult with other PFD missions in Suva.  We expect that the UK, EU 
and China would want meetings.  Taiwan has been quietly present on 
the margins at previous PFD's and held bilats as well.  Embassy Suva 
anticipates that the PIF Secretariat will hold a pre-brief for PFD 
partners, high commissioners and ambassadors in Suva prior to 
Cairns. 
 
 
MCGANN