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UNCLAS SECTION 01 OF 04 DILI 000230 
 
SENSITIVE 
SIPDIS 
 
PROTOCOL FOR ASEL ROBERTS 
 
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CH, TT 
SUBJECT: PRESIDENTIAL DELEGATION ATTENDS 10TH ANNIVERSARY OF 
TIMOR-LESTE'S POPULAR CONSULTATION 
 
DILI 00000230  001.2 OF 004 
 
 
¶1.       (U) Summary: A Presidential Delegation attended a 
series of official events from August 29-31 commemorating the 
10th anniversary of the Popular Consultation that led to 
Timor-Leste's independence.  Meeting separately with Prime 
Minister Gusmao and President Ramos-Horta, the Delegation also 
held substantive and straightforward discussions on some of the 
key challenges facing Timor-Leste in the coming years, including 
achieving justice and reconciliation for the political crimes 
committed since 1974, conducting essential reforms in the 
security sector, and implementing an economic growth strategy 
for the impoverished, underdeveloped country using its energy 
revenues.   End Summary. 
 
 
 
¶2.       (U) A U.S. Presidential Delegation consisting of 
Ambassador Hans Klemm, former Ambassador to the OAS and Deputy 
Director of USAID Harriet Babbitt, and former Ambassador to the 
U.N. Nancy Soderberg attended a series of official events from 
August 29-31 commemorating the 10th anniversary of the August 
30, 1999, Popular Consultation that led to Timor-Leste's 
independence.  In separate private meetings on August 31 both 
Prime Minister Xanana Gusmao and President Jose Ramos-Horta 
welcomed the delegation and expressed their gratitude for U.S. 
support.  Ramos-Horta, in particular, pointed out that U.S. 
political support was critical to Indonesia's ultimate agreement 
to normalize relations with Timor-Leste.  The Delegation members 
for their part told both leaders that their presence for this 
auspicious occasion was intended by the White House to 
underscore the abiding friendship and interest that the United 
States has in Timor-Leste.   Other foreign dignitaries in 
attendance at the official events included the Governor-General 
of Australia, the Indonesian and Portuguese Foreign Ministers, 
the Speaker of the Portuguese Parliament, the U.N. High 
Commissioner for Refugees (and former Portuguese Prime 
Minister), the Angolan Minister of Education, the Cuban 
Vice-Minister of Health, and two former Special Representatives 
of the U.N. Secretary-General. 
 
 
 
"Justice will take its course... slowly" 
 
---------------------------------------- 
 
¶3.       (SBU) In a televised address at the opening ceremony, 
President Jose Ramos-Horta eulogized the late Senator Edward 
Kennedy and honored his commitment to the common people.  The 
highlight of his remarks, however, was his forceful call for an 
amnesty for all political crimes committed in Timor-Leste 
between 1974 and 1999.  Rejecting calls from "primarily abroad 
in the West" for the establishment of an international tribunal, 
Ramos-Horta said that "ten years after the Popular Consultation, 
we must put the past behind us."  (Note: Amnesty International 
issued a report on August 27 in which it called for the 
establishment of an International Tribunal.)  Ramos-Horta also 
called for the disbanding of the U.N. Serious Crimes Unit tasked 
with investigating human rights violations committed in 1999. 
 
 
 
¶4.       (SBU) Later asked to comment on the President's speech, 
PM Gusmao explained to the Delegation that this is not merely an 
issue between Timor-Leste and Indonesia.   Before Indonesia 
invaded in 1975 and during the resistance to the Indonesian 
occupation, the Timorese were embroiled in a "civil war" in 
which "we killed our own comrades" and almost everyone got their 
hands bloody.  The current policy of forgiveness stems not from 
a "generosity" towards Indonesia, but from self-interest in 
avoiding reopening fissures that could tear the country apart. 
Gusmao claimed that a national process of examining history and 
uncovering truth already has taken place and that the public is 
ready to move forward, but conceded that political maneuvering 
in the parliament continues to make this a contentious issue. 
Separately, the opposition Fretilin party roundly criticized the 
President's speech and continues to call for debate on a 
1975-1999 human rights report, despite having avoided such a 
debate during its own time in government.  In a sign that this 
remains a contentious issue, moreover, protestors staged rallies 
at several sites over the weekend in response to the President's 
speech and the subsequent August 30 release of Martenus Bere, a 
Timorese from Indonesia accused of crimes against humanity, who 
had been detained during recent travel to Timor-Leste (SEPTEL). 
 
 
 
¶5.       (SBU) Ramos-Horta himself defended his call for an 
 
DILI 00000230  002.2 OF 004 
 
 
amnesty by noting to the Delegation that in his extensive 
travels around the country he hears "not a word about justice, " 
instead people raise only economic concerns.  Ramos-Horta 
conceded that Indonesia is unlikely to bring its own citizens to 
justice for crimes committed in Timor-Leste (they have not done 
so for crimes committed against other Indonesians), but 
maintained that they may eventually do so, perhaps sooner rather 
than later.  In the meantime, "why go after small militia, the 
foot soldiers of the Indonesian military, when we don't have the 
courage to go after the Indonesian military directly?"  Like 
Gusmao (who mentioned the fact that thousands of Timorese are 
students at Indonesian universities), Ramos-Horta cited 
practical concerns, including cross-border trade, as the 
immediate GOTL priority.  "Justice will take its course, " he 
said "slowly." 
 
 
 
Security sector reform remains a key challenge 
 
--------------------------------------------- - 
 
¶6.       (SBU) Asked about ongoing efforts to ensure stability 
and avoid another 2006 crisis by conducting critical security 
sector reforms, both Gusmao and Ramos-Horta claimed some measure 
of success.  Gusmao accused the previous government of being 
narrow-minded, maintaining an anachronistic mentality in its 
leadership, and politicizing the security forces.  "Now, " he 
said "the institutions [the police and the military] cooperate. 
"  Gusmao cautioned on the need to take care of the older 
generation of soldiers while still preparing and 
professionalizing the new generation.  Similarly, he argued for 
restraint in acceding to U.N. demands to dismiss police officers 
suspected of human rights violations, noting that such action 
could lead to grievances, a new set of "petitioners," and even 
"revolution."  Gusmao estimated that even with the help of the 
U.N. police (UNPOL) as monitors it would still take another two 
years to clean up and reshape the police. 
 
 
 
¶7.       (SBU) Ramos-Horta blamed both the previous government 
under Mari Alkatiri and then-President Gusmao for the lack of 
leadership that led to the 2006 crisis.  After assuming the 
Presidency, Ramos-Horta claimed to have established a regular 
mechanism to coordinate security issues with the Prime Minister 
and President of the Parliament and has consulted regularly with 
the opposition political parties.  As a result, he said, the 
issue has been somewhat depoliticized and the situation is 
improving.  Like Gusmao, however, Ramos-Horta argued that 
another two or three years are needed and that UNPOL is 
providing critical "breathing space."  When it comes to 
technical assistance with legislation, policy, and the future 
development of the security sector, however, Ramos-Horta noted 
that he prefers to work bilaterally with countries like 
Australia, Portugal, and the United States.  (Note: As a model, 
Ramos-Horta cited the assistance from the U.S. Navy Seabees who 
are doing "fantastic work" without weapons and with results that 
are "visible" to the Timorese people.) 
 
 
 
PM defends Chinese heavy oil power plant tender; 
 
President concedes it was sloppy 
 
--------------------------------------------- --- 
 
¶8.       (SBU) Former Ambassador Babbitt took advantage of the 
private meetings to ask Gusmao and Ramos-Horta about the process 
by which the GOTL had reached a decision on the $380 million 
contract for Chinese companies to install two used heavy oil 
electrical power plants.  Gusmao testily defended the decision, 
arguing that his government had followed the normal legal 
process and that Timor-Leste has appropriate checks and 
balances.  He claimed that the decision had been submitted to 
the President and that he had a week to review it before it was 
finalized.  He rejected foreign criticism on this issue and 
questioned how "outsiders" could assess Timor-Leste's needs. 
 
 
 
¶9.       (SBU) Ramos-Horta also maintained that the process had 
been technically correct, there had been 15 bidders, and it had 
received parliamentary approval.  The only legal shortcoming was 
the failure to conduct an environmental assessment.  He claimed, 
however, that he obtained an actual copy of the (signed) 
 
DILI 00000230  003.2 OF 004 
 
 
contract from the government only after he insisted, and that, 
upon review, his assessment was that it was "sloppy."  By way of 
example, Ramos-Horta pointed out that a Chinese Chamber of 
Commerce had been named as the final arbiter in disputes. 
Although Ramos-Horta has since warned the Chinese "not to cheat 
small countries," the contract is now essentially a done deal. 
In any case, he argued that the bulk of the contract (USD 260 
million) would be directed towards building transmission lines 
and that a smaller portion (USD 80 million) was to install the 
heavy oil power plants.  Ramos-Horta told the Delegation that an 
Italian company has recently won a USD two million annual 
contract to oversee the project and that any failure to comply 
with World Bank environmental standards would represent 
sufficient grounds to appeal and even cancel the contract. 
 
 
 
Economic development 
 
-------------------- 
 
¶10.   (SBU) Another recurring theme in each of the meetings was 
the critical need for Timor-Leste to invest in its own economic 
development and lift its population out of poverty.  Agreeing 
with Babbitt's comment that one of the key challenges for 
democracies is to "deliver," Gusmao noted that the economy of 
Timor-Leste needs to grow at a rate of 8 percent in order to 
reduce poverty.  Although the country has its own resources from 
energy revenues, it continues to have difficulty executing its 
budgets efficiently.  Ramos-Horta, as indicated above, places 
the country's economic needs ahead of all other issues, 
including justice and reconciliation.  All agree that investing 
in education, eliminating illiteracy, and building basic 
infrastructure are critical, immediate needs. 
 
 
 
Climate Change 
 
-------------- 
 
¶11.   (SBU) Asked about the upcoming climate change talks in 
Copenhagen, Ramos-Horta confirmed his intention to attend.  He 
added that he was not overly optimistic, however, lamenting the 
fact that people are not moved to take action because climate 
change does not have an immediate palpable effect.  Ramos-Horta 
noted that the world cannot simply blame the industrialized 
countries and that "we should all do what we can to mitigate the 
impact."  Babbitt noted that as a small country with a large 
coastline and real mitigation issues, Timor-Leste is in a 
position to represent the interests of many other countries. 
Invited to work with the U.S. delegation, Ramos-Horta said that 
we should feel free to call on him to help.  He added that he 
had discussed climate change with Indonesian President Susilo 
Bambang Yudhoyono (SBY) in Manado and recently by phone. 
According to Ramos-Horta, SBY is determined to use his second 
term to be more proactive on international issues, including 
climate change, and would take the lead among the participant 
countries of the Coral Triangle Initiative. 
 
 
 
Comment 
 
------- 
 
¶12.   (SBU) The warm reception of the Presidential Delegation 
indicates that the GOTL leadership appreciates continued U.S. 
engagement and assistance in Timor-Leste.  Although the GOTL was 
able to showcase its celebration of this important anniversary 
by successfully organizing and executing a series of official 
and public events amidst a  general mood of euphoria, the 
discussions in the Delegation's private meetings suggests that 
Timor-Leste continues to face some serious challenges in the 
years to come.  Truth, justice, and reconciliation is clearly a 
highly complex and emotional issue that will require many more 
years of public discussion and patient pursuit.  Security sector 
reform, however, is a more immediate concern on which progress 
must be made sooner rather than later and for which President 
Ramos-Horta said he looks to the U.S. to be a key bilateral 
partner.  Economic development is also an urgent, immediate 
need, but will be complicated by Timor-Leste's partisan politics 
and lack of institutional capacity, as indicated by the sloppy 
power plant tender. 
 
 
 
 
DILI 00000230  004.2 OF 004 
 
 
¶13.   (U) Ambassadors Babbitt and Soderberg did not have the 
opportunity to clear this cable. 
KLEMM