US embassy cable - 87BANDARSERIBEGAWAN1188

C O N F I D E N T I A L SECTION 01 OF 03 BANDAR SERI BEGAWAN 1188 
 
E.O. 12356: NA 
TAGS: PREL, PGOV, BX 
SUBJ: THE SULTAN'S FIRST YEAR ON HIS OWN - A SOLID PERFORMANCE 
 
1. CONFIDENTIAL - ENTIRE TEXT 
 
2. SUMMART: THE SULTAN OF BRUNEI HAS NOW GOVERNED BRUNEI ON 
HIS OWN FOR A LITTLEMSORE THAN ONE YEAR.  IMPORTANT 
ACCOMPLISHMENTS INCLUDE VISITS TO ALMOST EVERY AREA OF THE 
NATION AND AN EMPHASIS ON A RESPONSIVE GOVERNMENT.  HE HAS 
WARNED AGAINST THE SPREAD OF EXTREMIST ISLAMIC BELIEFS AND 
MOVED TO REINFORCE A MODERATE ISLAMIC WAY OF LIFE IN BRUNEI. 
IN THE FOREIGN POLICY AREA, BRUNEI SEEKS A ROLE THT IS BEYOND 
MERE RECOGNITION OF ITS RIGHT AS AN INDEPENDENT NATION.  THE 
MILITARY'S CONTACTS WITH OTHER NATIONS ARE EXPANDING AND IT IS 
MOVING TOWARDS UPGRADING ITS EQUIPMENT CAPABILITIES.  THE 
SULTAN'S ADMINISTRATION HAS SHOWN A WILLINGNESS TO TACKLE 
DIFFICULT SOCIAL AND CULTURAL PROBLEMS IN THIS MALAY SOCIETY 
THROUGH THE ESTABLISHMENT OF A DRUG REHABILITATION CNETER AND 
AN INFORMATION PROGRAM AIMED AT PREVENTING THE SPREAD OF 
AIDS.  BRUNEI'S PROBLEMS, ESPECIALLY WHEN COMPARED TO THOSE OF 
ITS NEIGHBORS, ARE MODEST.  THE NATION NEEDS TO IMPROVE BASIC 
SERVICES, SUCH AS TELEPHONE AND WATER SERVICE.  MORE 
TROUBLESOME IS THE CONTINUAL BLURRING OF LINES BETWEEN PUBLIC 
AND PRIVATE BUSINESS.  END SUMMARY. 
 
3. WITH THE DEATH OF THE SERI BEGAWAN (SUTLAN'S FATHER) IN 
SEPTEMBER 1986, THE SULTAN COULD FINALLY SET HIS OWN 
COURSE FOR THE GOVERNMENT, CHOOSE HIS OWN CABINET, AND 
GOVERN THE NATION OF BRUNEI, WITHOUT THE INTERVENTION OF HIS FATHER. 
IMMEDIATELY AFTER THE FORTY DAY MOURNING PERIOD HE 
INSTALLED A NEW CABINET THAT GAVE SOME VERY ABLE MEN, 
SUCH AS PEHIN ISA, IMPORTANT POSTS.  AT THE SAME TIME 
THE SULTAN SHUNTED ASIDE SEVERAL INDIVIDUALS, SUCH AS PEHIN AZIZ, 
WHOSE IDEAS FOR BRUNEI DID NOT MATCH HIS OWN.  ONE OF THE FIRST AREAS 
THE SULTAN AND PEHIN ISA TACKKED WAS THE CRITICISM THAT THE 
SULTAN WAS TOO DISTANT FROM THE PEOPLE.  FOR THE LAST YEAR 
THE SULTAN HAS JORNEYED AT LEAST ONCE A MONTH TO A 
KAMPONG, MET THE KAMPONG LEADERS, VISITED THE KAMPONG 
SCHOOL AND MOSQUE, AND THEN SEEN A PRIVATE 
SECTOR ENTERPRISE RUN BY A BUDDING BUMIPUTRA BUSINESSMAN.  ALL 
OF THIS HAS BEEN RECORDED BY RADIO TELEVISION BRUNEI AND SHOWN 
ON THE VENING NEWS.  ANOTHER REGULAR FEATURE OF THESE VISITS 
HAVE BEEN THE SULTAN ACCEPTING PETITIONS FROM THE KAMPONG ELDERS 
FOR SERVICES AND NEEDS OF THE KAMPONG.  DURING THIS YEAR THE 
SULTAN HAS VISITED ALL OF BRUNEI, INCLUDING KAMPONGS ONLY 
ACCESSIBLE BY AIR OR RIVER BOAT.  A CONSITENT THEME EMPHASIZED 
BY THE SULTAN AND ISA DURING THE YEAR IS THE GOVERNMENT IS TO 
BE RESPONSIVE TO THE NEEDS OF THE PEOPLE. 
 
4. THROUGH THESE KAMPONG VISITS PEHIN ISA, WHO HEADS THE 
ESTABLISHMENTS OFFICE, AND HIS STAFF HAVE BEGUN TO TACKLE THE 
KAMPONG PROBLEMS, INCLUDING THE INCREASING NUMBER OF ILLEGAL ALLIENS 
AND THE LACK OF SERVICES.  IN A SIMILIAR MOVE, THE MINISTER OF 
EDUCATION HAS UNDERTAKEN A PROGRAM TO VISIT EVERY SHCOOL IN THE 
NATION (THERE ARE 176 SCHOOLS) AND MEET THE SCHOOL PRINICPALS AND 
TEACHERS.  ONE OF THE VIIBLE CHANGES IS THAT SCHOOLS ARE NOW REPARIED 
WHEREAS BEFORE THEY WERE IN DEPLORABLE SHAPE, ESPECIALLY FOR A 
NATION OF BRUNEI'S WEALTH. 
 
5. ANOTHER CIRICISM OF THE BRUFEI GOVERNMENT IS THT IT 
DOESN'T FACE TOUGH ISSUES WITH CULTURAL AND SOCIAL 
IMPLICATIONS.  ONE EXAMPLE IS THAT THE OFFICIAL LINE ON 
DRUGS USED TO BE THAT THERE WAS NO PROBLEM.  DURING THE 
LAST YEAR THE SULTAN HAS WARNED AGAINST THE EVILS OF DRUG 
ABUSE AND THE GOVERNMENT ESTABLISHED A DRUG REHABILITATION 
CENTER.  WHILE BRUNEI'S DRUG PROGLEM IS MINOR COMPARED TO 
THAT OF MALAYSIA, THE GOVERNMMENT NOW ACKNOWLEDGES 
THE ISSUE AND IS WORKING TO PREVENT DRUG ABUSE. 
 
6. ANOTHER DIFFICULT ISSUE THAT THE HEALTH MINISTER AND HIS 
DEPARTMENT HAVE FACED FORTHRIGHTLY IS AIDS.  THE NATION HAS 
LAUNCHED A PUBLIC INFORMATION COMPAIGN WITH POSTERS AND 
PAMPHLETS.  WHAT WAS TACITLY ACKNOWLEDGED WITH THE INTRODUCTION 
OF THIS CAMPAIGN IS THAT BRUNEI HAS A COMMUNITY OF HIGH RISK 
MEN, SOMETHING MOST BRUNEIANS PREFER TO OVERLOOK. 
 
7. ANOTHER EXAMPLE IS THE GOVERNMENT'S 
REALIZATION THAT SOMETHING MUST BE DONE ABOUT THE HIGH NUMBER 
OF TRAFFIC DEATHS AND ACCIDENTS THAT TAKE PLACE IN BRUNEI.  THE 
HEALTH MINISTRY AND COMMUNICATIONS MINISTRY WORKED TOGETHER TO 
PASS A SELT BELT LAW, A GOOD START.  THEN THE MINISTER OF 
COMMUNICATIONS LAUNCHED A CAMPAIGN FOR DRIVER'S EDUCATION. 
 
8. THE IMMIGRATION DEPARTMENT WORKS TO STOP ANY 
KNOWN ISLAMIC EXTREMIST FROM ENTERING THE NATION.  TOP 
GOVERNMENT OFFICIALS ARE WORRIED BY THE PROBLEMS IN MALAYSIA 
WITH ISLAMIC EXTREMISTS AND WORK TO PREVENT TE GROWTH IN 
BRUNEI.  THE SULTAN IS ALSO PROMOTING 
MAINSTREAM ISLAMIC BELIEFS.  THIS YEAR THE SULTAN PERFORMED 
THE HAJ ALONG WITH MANY OF ADVISORS.  THE PEOPLE OF BRUNEI, 
INCLUDING BUSLOADS OF SCHOOL CHILDREN, LINED THE STREETS WHEN 
HE DEPARTED AND AGAIN WHEN HE RETURNED.  THE DAY WHEN THE 
SULTAN RETURNED THERE WAS A MASSIVE PUBLIC GATHERING NEAR 
THE PALACE WHERRE THE SULTAN SPENT HOURS WITH HIS 
SUBJECT, TAKING WITH EVERYONE, ALL TO THE CONSTERNATION 
OF HIS SECURITY PEOPLE. 
 
9. THE SULTAN HAS WORKER TO SIDESTEP THOSE WHOSE VIEWS 
ARE NOT IN LINE WITH HIS, FOR INSTANCE, THE GRAND MUFTI 
WHO IS CONSIDERED PART OF THE OLD GUARD.  HIGH GOVERNMENT 
OFFICIALS ARE PROMOTING THE CAREER OF THE RELATIVELY YOUNG 
PERMANENT SECRETARY OF RELIGIOUS AFFAIRS, WHOSE SPEECHES 
RELFLECT THE SULTAN'S MODERATE ISLAMIC VIEWS. 
 
10 IN THE FOREIGH POLICY ARDA, BRUNEI IS MOVING BEYOND ITS 
GOAL SINCE INDEPENDENCE, WHICH WAS RECOGNITION OF THE COUNTRY 
AND ITS RIGHT TO EXIST AS AN INDEPENDENT STATE.  THE FOREIGN 
MINISTRY IS PLAYING MORE OF A ROLE IN ASEAN MEETINGS AND 
PREPARING FOR BRUNEI'S LEADERSHIP OF VARIOUS COMMITTEES.  THE 
ASEAN LABOR CONFERENCE, HELD IN LATE 1986, WAS THE FIRST 
MEETING AT THE MINISTERIAL LEVEL HELD IN BRUNEI.  ONE OF THE 
DIRECT BENEFICIARIES OF THE SERI BEGAWAN'S PASSING FROM THE 
SCENE HAS BEEN INDONESIA.  SEVERAL MONTHS AGO THE SULTAN 
OFFERED A SOFT LOAN OF $100 MILLION TO INDONESIA, SOMETHING 
THAT WOULD HAVE NEVER HAPPENED DURING THE SULTAN'S FATHER 
TIME BECAUSE HE NEVER FORGAVE THE INDONESIANS FOR THEIR 
ROLE IN THE 1962 UPRISING. 
 
11. WHILE BRUNEI FOREIGN POLICY EMPHASIZES CONSENSUS, AS DOES 
ITS WAY OF LIFE, AND AVOIDING CONFLICTS, THE RECENT ASEAN DEBATE 
ON WHETHER OR NOT TO GO TO MANILA DEMONSTRATE THE NATION IS 
WILLING TO TAKE A POSITION AND DEFEND IT.  EARLY ON BRUNEI 
DECIDED THE MINISTERIAL MUST GO ON IN MANILA AND HAS NOT 
WAVERED FROM THAT POSITION. 
 
12. THE MILITARY HAS CONTINUED TO EXPAND THEIR CONTACTS WITH 
OTHER NATIONS THIS PAST YEAR.  THEY HAVE MOVED TO SHARE 
INTELLIGENCE INFORMATION WITH THE MALAYSIANS AND THE MALAYSIANS 
WORKED WITH THE BRUNEIANS TO CLEAR SEA AND AIR TRAFFIC DURING 
THE BRUNEIAN'S FIRING OF TWO EXOCET MISSLES.  THE BRUNEIANS ARE 
CONSIDERING A JOINT VENTURE IN A MUNITIONS PLANT IN MALAYSIA. 
SINGAPORE EXISTING PROGRAMS IN BRUNEI CONTINUE TO GROW.  RBAF 
TROOPS ARE OBTAINING BASIC SPECIAL FORCES TRANING IN 
AUSTRALIA. 
 
13. THE MILITARY IS MOVEING TOWARDS NEW EQUIPMENT ACQUISTIONS 
INCLUDING FIXED WING AIRCRAFT, NEW PATROL BOATS (CORVETTE 
CLASS) AND AN INTEGRATED RADAR SYSTEM.  THE MAJOR CONSTRAINT IS 
THE LACK OF PERSONNEL.  OVER 4,000 MEN ARE ALREADY IN THE 
MILITARY, A LARGE AMOUNT FOR A NATION OF JUST 225,000 WITH ONLY 
ABOUT 135,000 MALAYS. 
 
14. BRUNEI'S PROBLEMS ARE MODEST, ESPECIALLY WHEN COMPARED TO 
NEIGHBORING NATIONS.  IN SPITE OF THE BEST EFFORTS OF THE NEW 
MINISTER OF DEVELOPMENT, HIS MINISTRY, WHICH IS REALLY A GIANT 
PUBLIC WORKS DEPARTMENT, JUST ISN'T ABLE TO MAINTAIN ROADS WELL 
OR BUILD GOOD BRIDGES IN A TIMELY FASHION.  WHY A NATION WITH 
6 FEET OF RAINFALL A YEAR HAS PERIODIC WATER SHORAGES IS A 
QUESTION NO MINISTRY OFFICALS WANTS TO ANSWER.  LOCAL TELEPHONE 
SERVICE CONTINUES TO BE A SORE SPOT WITH EVERYONE. 
 
15. ONE PROBLEM THAT IS GETTING BIGGER IS THE BLURRING OF 
LINES BETWEEN PULBIC AND PRIVATE BUSINESS.  AN OBVIOUS EXAMPLE 
IS THE INTERNATION BANK OF BRUNEI, FORMERLY THE ISLAND 
DEVELOPMENT BANK.  THIS BANK IS CONTROLLED BY THE ROYAL FAMILY 
AND THE DIRECTORS ARE MEMBERS OF THE MINISTRY OF FINANCE.  THE 
QUESTION IS WHO SHOULD REGULATE THE BANK IF THE MINISTRY 
OFFICIALS ARE THE DIRECTORS.  ANOTHER EXAMPLE IS THE GROWING 
NUMBER OF FIRMS WITH CLOSE TIES TO THE ROYAL FAMILY OR 
RELATIVES OF MINISTERS.  THE QUESTION IS: "JUST HOW COZY CAN 
THE RELATIONSHIPS BE BEFORE THEY CAUSE DIFFICULTIES. 
 
16. ANOTHER PROBLEM AREA IS ON PUBLICITY ATTACHED TO 
THE SULTAN'S VENTURES OUTSIDE OF BRUNEI, WHETHER IT BE THE 
RECENT PURCHASE OF THE BEVERLY HILLS HOTEL OR THE SOFT 
LOAN FOR INDONESIA.  MONEY SPENT INSIDE BRUNEI IS NOT 
VIEWED IN A HARSH LIGHT, FOR INSTANCE, BRUNEIANS DO NOT 
VIEW THE PALACE AS AN EXTRAVAGENCE BECAUSE IT DOUBLES AS A 
GOVERNMENT BUILDING AND THEY GET TO VISIT IT AT LEAST ONCE 
A YEAR, AT HARI RAJA, WHEN THE SULTAN SHAKES EVERYONE'S 
HAOND AND GIVES FOOD TO ALL VISITORS.  HOWEVER, BRUNEIANS 
QUESTION PURCHASES OR VENTURES OUTSIDE THE NATION WITH THE 
ARGUMENT THAT THE MONEY SHOULD BE SPENT ON DEVELOPING 
BRUNEI. 
 
FERGUSON