US embassy cable - 99BANDARSERIBEGAWAN381

C O N F I D E N T I A L SECTION 01 OF 02 BANDAR SERI BEGAWAN 000381 
 
DEPT FOR EAP/DAS SKIP BOYCE, INR/B, AND EAP/PIMBS 
 
E.O. 12958; DECL: 7/08/03 
TAGS: PINR, APEC, BX 
SUBJECT: BRUNEI RESPONSE TO REQUEST FOR BIOGRAPHIC 
INFORMATION 
 
REF: A) STATE 117173;  B) BANDAR O030O 
 
1.  (U) CLASSIFIED BY CHARGE D'AFFAIRES GEORGIA T. 
WRIGHT. REASONS 1.5 (C). 
 
2.  (C) THE FOLLOWING INFORMATION RESPONDS TO A 
DEPARTMENT REQUEST FOR BRIEFING MATERIAL IN 
PREPARATION FOR UPCOMING APEC MEETINGS (REFTEL A). 
 
3. (U) OBJECTIVES OF BRUNEI'S LEADERS AND KEY 
FOCUS.  AS REPORTED IN REFTEL B, BRUNEI WILL FOCUS 
ON SMALL AND MEDIUM ECONOMIES AND HUMAN RESOURCE 
DEVELOPMENT (HRD).  SPECIAL INTEREST WILL BE GIVEN 
TO INFORMATION AND COMMUNICATION TECHNOLOGY SINCE 
BRUNEI IS DEVELOPING ITS CAPABLITY IN THE HOPE OF 
BECOMING A FINANCIAL SERVICE HUB. WITHIN THE 
ELECTRONIC COMMERCE STEERING COMMITTEE, BRUNEI 
WILL WISH TO BALANCE INFORMATION AND COMMUNICATION 
TECHNOLOGY WITH CAPACITY BUILDING. 
 
4.  (U) BRUNEI APEC PLANNERS BELIEVE HRD TO BE 
"CRUCIAL" TO SMALL AND MEDIUM ECONOMIES. AT THE 
JULY 7 BUDGET MANAGEMENT COMMITTEE MEETING IN 
SINGAPORE, BRUNEI PUSHED FORWARD THREE PROJECT- 
RELATED PROPOSALS: AN HRD TRAINER EDUCATION 
PROJECT TO BE CONDUCTED BY ELECTRONIC TECHNOLOGIES 
"LIKE THE U.S. AND AUSTRALIA"; AN APEC-FUNDED 
WORKSHOP ON ELECTRONIC COMMERCE; AND A PROJECT ON 
STANDARDS. THE DIRECTOR OF THE BRUNEI APEC 
SECRETARIAT HAS TOLD US THAT APEC 20OO WILL 
REVOLVE AROUND NEW INFORMATION AND COMMUNICATION 
TECHNOLOGIES. HE SAID OTHER POTENTIAL TOPICS FOR 
NEXT YEAR ARE NATURAL GAS INITIATIVES, DEVELOPING 
AIR SERVICE NETWORKS, AND TOURISM. 
 
5. (C) APEC OECISION-MAKING.  THE SULTAN IS NOT 
PERSONALLY INVOLVED IN THE APEC DECISION-MAKING 
PROCESS, BUT HE IS BRIEFED AND ADVISED OF ECONOMIC 
IMPLICATIONS.  THE MINISTER OF INDUSTRY AND 
PRIMARY RESOURCES, PEHIN HAJI ABDUL RAHMAN, IS THE 
LEAD MINISTER FOR APEC ECONOMIC MATTERS.  HE IS 
ASSISTED BY HIS PERMANENT SECRETARY, DATO HAJI 
DANIAL, AND BY THE DIRECTOR-GENERAL OF 
INTERNATIONAL RELATIONS AND TRADE DEVELOPMENT, LIM 
JOCK HOI.  JOCK HOI IS THE YOUNGER BROTHER OF 
PEHIN LIM JOCK SENG, PERMANENT SECRETARY AT THE 
MFA, WHO IS ALSO DEEPLY INVOLVED IN APEC DECISION- 
MAKING. 
 
6.  (C) STATUS OF RELATIONS BETWEEN THE SULTAN AND 
PRINCE JEFRI.  PRINCE JEFRI IS STILL OUT OF THE 
FOLD.  HE IS PRESENTLY IN EUROPE LIVING WITH A 
CONSIDERABLY SCALED DOWN ENTOURAGE. 
INVESTIGATIONS INTO BRUNEI'S MISSING BILLIONS 
CONTINUE, AND IT IS UNLIKELY THAT JEFFRI WILL BE 
RESTORED TO THE SULTAN'S FAVOR WHILE THE COUNTRY 
IS EXPERIENCING AN UNPRECEDENTED ECONOMIC 
DOWNTURN.  WE UNDERSTAND, HOWEVER, THAT THE TWO 
ARE IN OCCASIONAL PHONE CONTACT AND THAT THEY 
PLAYED POLO TOGETHER IN THE UK LAST MONTH DURING 
ROYAL WEDDING FESTIVITIES. 
 
7.  (C) PRINCE JEFRI AND PEHIN AZIZ.  AS 
PREVIOUSLY REPORTED, PEHIN HAJI ABDUL AZIZ IS A 
CONSERVATIVE, LIGHLY INFLUENTIAL MEMBER OF THE 
SULTAN'S CABINET.  HE IS PRESENTLY THE MINISTER OF 
EDUCATION AND ACTING MINISTER OF HEALTH.  AFTER 
THE AMEDEO COLLAPSE HE WAS APPOINTED BY THE SULTAN 
TO HEAD THE BRUNEI INVESTMENT AGENCY (BIA), 
FORMERLY CONTROLLED BY PRINCE JEFRI.  THE MANUKIAN 
BROTHERS AND MISS AMERICA COURT CASES, WHICH 
REVEALED LURID DETAILS ABOUT PRINCE JEFRI'S 
PRIVATE LIFE, PROMPTED PEHIN AZIZ TO CONVINCE THE 
SULTAN OF THE DAMAGE JEFRI'S NOTORIETY WAS DOING 
TO BRUNEI'S INTERNATIONAL IMAGE AND TO THE 
SULTAN'S OWN CREDIBILITY AS A PIOUS RULER.  AZIZ 
IS ALSO BELIEVED TO HAVE ALERTED THE SULTAN TO THE 
IMMENSITY OF PRINCE JEFRI'S MISAPPROPRIATIONS FROM 
THE BRUNEI TREASURY.  WITHOUT QUESTION, THERE IS 
ANIMOSITY BETWEEN PRINCE JEFRI AND PEHIN AZIZ, BUT 
THE RELATIONSHIP BETWEEN AZIZ AND PRINCE MOHAMED 
IS RELATED TO AZIZ' INFLUENCE ON THE ROYAL FAMILY. 
THE TWO MEN ARE COMPATIBLE BUT NOT COHORTS. 
(ALTHOUGH RELIGIOUS, PRINCE MOHAMED IS NOT AS 
CONSERVATIVE AS AZIZ, NOR IS HIS POLITICAL OUTLOOK 
AS RESTRICTIVE.) 
 
8. (C) STRENGTH OF RADICAL ISLAMISTS.   IN BRUNEI, 
THE OFFICIAL FAITH IS THE SHAFEITE SCHOOL OF 
ISLAM.  NO FORM OF RADICAL ISLAM IS PERMITTED. 
HOWEVER, THE MORE CONSERVATIVE ISLAMIC MEMBERS OF 
THE CABINET, PARTICULARLY PEHIN AZIZ AND THE 
PERMANENT SECRETARY OF THE PRIME MINISTER'S 
OFFICE, HAJI HAZAIR, APPEAR TO BE ESPECIALLY 
INFLUENTIAL.  HAJI HAZAIR IS A PROT'EG'E OF PEHIN 
ISA, THE SULTAN'S CONFIDENTIAL ADVISER CUM 
MINISTER OF HOME AFFAIRS.  WHILE THE CONSERVATIVES 
ARE CURENTLY ENJOYING A REVIVAL, THE PROGRESSIVES 
ARE WAITING FOR THE DUST TO SETTLE AFTER THE 
INVESTIGATIONS INTO AMEDEO ARE COMPLETE.  THEY 
BELIEVE THAT WHEN THE TRUE EXTENT OF BRUNEI'S 
LOSSES IS KNOWN, EVERYONE WILL NEED TO BE INVOLVED 
TO REALISTICALLY HANDLE THE COUNTRY'S ECONOMIC 
PROBLEMS. 
 
9.  (U) THE BRUNEI CONSTITUTION.  DURING THE VISIT 
OF QUEEN ELIZABETH II IN MARCH 1998, FOREIGN 
MINISTER PRINCE MOHAMED PUBLICALLY STATED THAT A 
REVISED CONSTITUTION SOON WOULD BE UNVEILED. IT 
WAS NOT.  THE MEDIA ANNOUNCED IN FEBRUARY 1999 THE 
APPOINTMENT OF A SUBCOMMITTEE TO REMOVE SOME OF 
THE ANTIQUATED BRITISH LAWS FROM THE CONSTITUTION 
AND REALIGN SOME (UNSPECIFIED) LAWS WITH ISLAMIC 
LAW.  NOTHING ELSE HAS BEEN HEARD ABOUT THE 
CONSTITUTIONAL REVIEW PROCESS. 
 
10. (C) CROWN PRINCE BILLAH'S RELATONSHIPS WITH 
BROTHERS/UNCLES, ETC.   CROWN PRINCE BILLAH 
APPEARS TO HAVE GOOD RELATIONS WITH HIS UNCLES, 
ESPECIALLY PRINCE MOHAMED, THE FOREIGN MINISTER. 
HE ALSO APPEARS REGULARLY IN PUBLIC WITH HIS HALF- 
BROTHER, PRINCE AZIM, THE ELDEST SON OF THE 
SULTAN'S SECOND WIFE, AND WITH PRINCE QAWI, AND 
PRINCE MOHAMED'S ELDEST SON.  HE DOES NOT, 
HOWEVER, APPEAR TO HAVE VERY CLOSE RELATIONS WITH 
PRINCE HAKIM, THE SON OF PRINCE JEFFRI.  THE 
SULTAN'S FAMILIES, BY HIS FIRST AND SECOND WIVES, 
SEEM TO BE WELL INTEGRATED.  FAMILY PHOTOGRAPHS 
DISPLAYED IN THE PALACES OF THE WIVES INCLUDE 
MEMBERS OF BOTH FAMILIES ENJOYING SOCIAL EVENTS 
TOGETHER. 
 
WRIGHT