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C O N F I D E N T I A L SECTION 01 OF 03 STATE 123722 
 
SENSITIVE 
SIPDIS 
DEPARTMENT PLEASE PASS TO DEPARTMENT OF INTERIOR (OIA NIK PULA) 
WELLINGTON PLEASE PASS TO AUCKLAND 
 
E.O. 12958: DECL: 12/01/2019 
TAGS: EAID PREL ADB XU XV
SUBJECT: EUROPEAN UNION DISCUSSES FIJI AND DONOR 
COORDINATION OPPORTUNITIES IN THE PACIFIC 
 
¶1. Classified by EAP/ANP Director Alcy Frelick.  Reasons: 1.4 
(b and d) 
 
¶2.  (U) November 19, 2009; 8:30am - 3:30pm; Washington, D.C., 
U.S.A. 
 
¶3.  (U) Participants 
United States: 
Frankie Reed, EAP/ANP Deputy Assistant Secretary 
Alcy Frelick, Director EAP/ANP 
Stephen Schwartz, Deputy Director EAP/ANP 
Doug Carey, Pacific Islands Desk Officer 
Paul Neville, Freely Associated States Desk Officer 
Andrew Moore, Australia and Pacific Regional Affairs Desk 
Officer 
Bill Bellis, Pacfic Desk Officer 
Dennis Sharma, USAID EAA Deputy Director 
 
EU: 
Ranieri Sabatucci, Head of Pacific Unit 
Despina Manos, Political and Development Section 
 
¶4.  (SBU) SUMMARY:  EAP/ANP Office Director Alcy Frelick 
hosted her EU counterpart, Ranieri Sabatucci, for a set of 
U.S.-EU Pacific consultations.  The informal consultations 
served as an opportunity to share perspectives on the Pacific 
and identify areas for potential collaboration.  Sabatucci 
and Frelick agreed to future consultations and to develop 
projects and proposals that address shared interests and are 
reflective of an enhanced relationship.  They also discussed 
the current political situation in Fiji and prospects for 
productive engagement.  END SUMMARY 
 
-------------------------------- 
EU priorities and U.S. parallels 
-------------------------------- 
 
¶5.  (SBU) Sabatucci explained that the EU was upgrading its 
Pacific engagement as part of a strategy to enhance dialogue 
on matters of common interest such as trade, governance, and 
aid effectiveness.  He also noted that while the EU,s 
Pacific strategy is deeply committed to cooperation with 
Australia and New Zealand, the EU brings a global perspective 
and speaks with one voice for European nations in the Pacific 
as there is little bilateral member-state representation. 
The EU wants to work with the United States and others to 
make aid delivery more efficient, in part by shifting 
portions of its aid to direct budgetary support and by 
focusing on regional cooperation.  Sabatucci outlined EU 
interests in renewable energy, climate change, governance, 
and capacity building. 
 
¶6.  (U) Frelick provided an overview of U.S. engagement in 
the Pacific, discussing our ties with U.S. territories, our 
agreements with the Freely Associated States, and our efforts 
to increase engagement with Pacific Island countries. 
Sabatucci noted that the EU's preferred mechanism for aid 
(direct budget support) made the Department of the Interior a 
natural partner.  Sabatucci expressed interest in 
coordinating with the United States to address gaps in 
development sectors not addressed by Compact funding. 
Frelick highlighted the energy sector as one in which EU 
partnership would be especially productive. Frelick also 
noted U.S. direct contributions to regional organizations 
such as the Secretariat of the Pacific Community and the 
Forum Fisheries Agency as examples of U.S. regional 
engagement. 
 
------------------------ 
Development Coordination 
------------------------ 
 
¶7.  (SBU) Sabatucci explained the EU,s five-year-plan has 
budgeted  475 million for the Pacific Island countries 
through its European Development Fund (EDF) and noted an EU 
goal that 50% of its aid be in the form of direct budget 
 
STATE 00123722  002 OF 003 
 
 
support by 2013.  Sabatucci said coordination and 
transparency will be particularly important as a flurry of 
money intended to combat climate change, from a variety of 
nations, will become available in the coming years. 
 
¶8.  (SBU) USAID Deputy Director for East Asia Dennis Sharma 
provided an overview of USAID in the Pacific and its 
possibilities as it considers a reentry into the Pacific. 
Frelick noted three specific areas for potential cooperation: 
 climate change adaptation, and energy/renewable energy. 
Sabatucci offered possible collaboration on forestry 
management and disaster preparedness.  He explained the EU 
will have  40 million to spend on disaster preparedness in 
the Pacific and hopes to work with the United States to fund 
effective disaster alert and mitigation mechanisms and may 
look to the Pacific Island Forum to develop a regional 
disaster strategy.  In forestry, Sabatucci noted that 
concerns over economic governance might force the EU to 
reduce its aid to Papua New Guinea (PNG).  But he emphasized 
the importance of protecting the forestry sector as a means 
of addressing both governance, perhaps via the Extractive 
Industries Transparency Initiative, and environmental 
conservation concerns.  Frelick also said that partners had 
to consider ways to help move PNG away from violence. 
 
---- 
Fiji 
---- 
 
¶9.  (C) The situation in Fiji dominated the discussion of 
governance issues in the Pacific.  Sabatucci provided a 
readout of EU Director General Stefano Manservisi's November 
18 meeting in Brussels with de facto Prime Minister Frank 
Bainimarama.  In response to EU insistence in advance of the 
meeting that Bainimarama come to the table with something 
new, Bainimarama announced a National Dialogue process 
immediately prior to the meetings.  Manservisi questioned the 
utility of a National Dialogue that excluded political 
parties and other interests, held under conditions 
restricting free speech.  Bainimarama admitted that he needed 
money to implement his reform program, but Manservisi 
countered that Fiji needed to demonstrate credibility, and 
suggested that the regime restore parts of the 1997 
constitution.  Sabatucci said Bainimarama agreed this would 
be possible. 
 
¶10.  (C) Sabatucci explained that Australia and New Zealand 
regarded EU engagement with Fiji with "lingering mistrust." 
Conversely, Sabatucci described Australia and New Zealand 
policy towards Fiji as "clumsy" and "reactive."  He thought 
the travel bans were counterproductive and excessive Aussie 
control of the Pacific Island Forum (PIF) was weakening the 
PIF's credibility and generating resistance to democratic 
values; playing right into the hands of Bainimarama. 
Sabatucci suggested that Bainimarama's plan for an expanded 
Melanesian Spearhead Group under Fijian leadership in 2010 
may not be a bad idea insofar as it would restore Pacific 
Island ownership and self-responsibility.  He noted that 
Bainimarama's announcement of a new public dialogue coincided 
with his meetings with the EU this week as proof that the EU 
and United States may be a more effective mediator for the 
restoration of rule of law, rights and elections, and 
specific carrots that would follow. 
 
¶11.  (C) Frelick suggested that the international community 
was making progress with Fiji since the last PIF meeting in 
August, but Fiji's recent expulsions of senior diplomats from 
Australia and New Zealand had thoroughly undermined progress. 
 She said that many Pacific Island leaders were starting to 
see the problem as rooted not in Australia or New Zealand but 
in Frank Bainimarama.  Frelick lamented that Bainimarama was 
uninterested in the opportunity to engage with Australia and 
New Zealand as they lessened their tone over the last few 
months.  She explained that the United States has worked hard 
to maintain dialogue with the de facto government and sought 
to demonstrate that engagement with the international 
community produces benefits.  Without a free press and an 
independent judiciary, Frelick said, an inclusive dialogue 
with Fiji would be impossible. 
 
¶12.  (C) With little time remaining, Frelick and Sabatucci 
 
STATE 00123722  003 OF 003 
 
 
concurred that the continual focus on Fiji, particularly 
given the lack of results, was a distraction to other 
important issues and needs in the Pacific.  They noted 
positive democratic reforms in Tonga and upcoming elections 
in Solomon Islands, and discussed the critical governance 
issues that challenge PNG. 
 
---------- 
Next Steps 
---------- 
 
¶13.  (U) Sabatucci described the event as his &most 
important meeting this year.8  Both sides agreed to follow 
up with another meeting, perhaps a Digital Video Conference, 
within a few months and to start encouraging counterparts at 
posts in the Pacific to provide input on specific ideas for 
collaboration.  While initial suggestions gravitated towards 
integrating direct budget support to the Freely Associated 
States, energy, and climate change, it was clear that the 
scope for a collaborative strategy remains broad. 
CLINTON