US embassy cable - 05BRUSSELS2202

C O N F I D E N T I A L SECTION 01 OF 03 BRUSSELS 002202 
 
SIPDIS 
 
E.O. 12958: DECL: 05/21/2015 
TAGS: PREL, PHUM, ETRD, XB, EUN, USEU BRUSSELS 
SUBJECT: MAY 22 COASI WORKING DINNER ON SOUTHEAST ASIA 
 
Classified By: USEU Pol M/C Kyle Scott for reasons 1.4 (b) & (d) 
 
1. (C) Summary:  On May 22, EAP A/S Chris Hill participated 
in a COASI working dinner on Southeast Asia with EU 
representatives from the Luxembourg European Presidency, the 
European Commission, the European Council, and the incoming 
UK EU Presidency. The participants discussed North Korea, in 
addition to agenda items on Indonesia, the Philippines, Burma 
and the EAS.  On North Korea, Ambassador Lorenz and others 
asked what the EU could do to help, and A/S Hill said that 
they could continue to bring up human rights concerns with 
the North Koreans.  On Indonesia, the EU is becoming 
increasingly engaged on Aceh and is considering contributing 
a monitoring mission, but no decision has been made yet.  On 
Burma, the EU is changing its emphasis somewhat toward a 
policy of engagement, stating that sanctions have become 
irrelevant, given China and India's support for the regime. 
Regarding the EAS, the EU recently asked for observership in 
the organization, which ASEAN foreign ministers will discuss 
when they meet at the end of July.  End Summary. 
2. (C) On May 22, EAP A/S Chris Hill participated in a COASI 
working dinner on Southeast Asia with EU representatives from 
the Luxembourg European Presidency, the European Commission, 
the European Council, and the incoming UK EU Presidency.  The 
EU delegation was led by Ambassador Pierre-Louis Lorenz, 
Luxembourg's Ambassador for Asia and Oceania.  Accompanying 
A/S Hill to the dinner were EAP RSP Director Patricia 
Scroggs, USEU Political Minister Counselor Kyle Scott, EAP 
Special Assistant Marc Koehler, USEU Political Officer Van 
Reidhead, and Embassy Luxembourg Political Officer Julie 
Breitfeld.  The participants discussed North Korea, 
Indonesia, the Philippines, Burma and the EAS. 
NORTH KOREA: EU WANTS TO BE SUPPORTIVE 
3. (C) A/S Hill began with an overview of the current status 
of the six-party talks, noting that June 23 will mark the 
one-year anniversary of no talks.  In the meantime, the North 
Koreans have harvested further plutonium.  The US is 
considering its next steps, but there are no good options. 
We believe in dialogue, but we can't talk to an empty chair. 
Key to this attempt will be more effort from the Chinese to 
use their leverage with North Korea; however the Chinese also 
are clearly exasperated with the North Koreans. 
4. (C) Lorenz reiterated the EU's support for the talks.  He 
wondered whether North Korea was unwilling or incapable of 
moving itself out of the corner and mentioned that China and 
Korea often ask the EU to tell the US to be more flexible. 
A/S Hill responded that he had been conciliatory at the ARF 
and wanted to know if the Chinese and Koreans were still 
thinking this since the recent meetings with the North 
Koreans in New York.  Antonio Tanca from the EU Council 
inquired how long the current situation could go on.  A/S 
Hill responded that it could continue for a few more weeks, 
but then the US will either have to pursue five-party talks 
or report the issue to the UN 
5. (C) Richard Wright, EC Director for the US, Japan and 
Korea expressed the EU's desire to be supportive and asked 
what the EU could do to help. A/S Hill suggested the EU 
continue talking about human rights in North Korea so that 
they realize this is not just an "American" issue.  Lorenz 
noted that the EU had pushed for a resolution in Geneva and 
did not abandon the Geneva process as the North Koreans had 
asked.  Denis Keefe, Head of the Far Eastern Group, FCO, 
London, noted that their options were limited on other ways 
to raise the issue and asked whether it was worth getting a 
discussion in UNGA on HR.  A/S Hill responded that the more 
human rights values are internalized, the better. 
INDONESIA: EU BECOMING MORE ACTIVE ON ACEH 
6. (C) A/S Hill presented his "glass half-full" view of 
Indonesia: the US is encouraged by President Yudhoyono, who 
has a keen understanding of governance, capacity building, 
and the war on terrorism.  He stressed that if we get it 
right in Indonesia, the world's third largest democracy and a 
moderate Islamic nation, then it will yield enormous 
dividends throughout the region.  He discussed U.S. 
priorities and initiatives in Indonesia.  A/S Hill praised 
the EU's support for the Center for Law Enforcement 
Cooperation in Jakarta and encouraged the EU to keep it up. 
He also emphasized that it was important for EU leaders to go 
to Jakarta to show their support. 
7. (C) Lorenz agreed with A/S Hill on the key significance of 
Indonesia and highlighted that it had held a recent EU-ASEAN 
meeting in March, and will institute a bilateral Troika with 
Indonesia in the near future.  The EU fully supports the 
Ahtisaari negotiations and has given 200,000 Euro in 
financing.  Lorenz reported that the EU also is making 
progress in crisis management and that it is discussing 
sending a monitoring mission to Aceh, but no decision has 
been made yet.  The EU was very far from having monitors 
organized but would be happy to assist on the civilian side 
of a 200-person team.  EC Director for Asia Fokion Fotiadis 
underscored that a monitoring mission would be a unique 
opportunity for the EU to develop its cooperation with ASEAN; 
however, he acknowledged that it is competing for resources 
with other EU missions. The EU emphasized that it is 
important not to give the impression that it would be a 
peacekeeping mission, but rather strictly for monitoring 
purposes.  Fotiadis also mentioned that Jakarta's message was 
less optimistic and acknowledged that bringing in foreign 
monitors would be difficult because of public opinion. 
8. (C) Fotiadis recognized the US's strong commitment to 
Indonesia through assistance funds, and highlighted the 
importance the EU places on channeling assistance through the 
World Bank Multi-Donor Trust Fund (MDTF).  Fotiadis mentioned 
that he raised this issue with A/S Tony Wayne and wanted to 
encourage the US get on board with the MDTF, even if the US 
only puts a small amount in. 
PHILIPPINES: EU SHARES US ASSESSMENT 
9. (C) A/S Hill presented his glass "half-empty" view of the 
Philippines, highlighting the government's serious governance 
and capacity building problems.  Corruption has weakened 
courts and prison systems and Mindanao has become a real time 
nesting ground for terrorists throughout the region.  He 
acknowledged the EU's programs to step up the rule of law, 
reform the police-judicial system, and prevent money 
laundering. 
10. (C) Lorenz stated that the EU shares our assessment of 
the Philippines and the JI.  EC Head of Unit for Southeast 
Asia Pierre Amilhat said the EU was considering supporting 
another regional CT center, but was waiting for ASEAN to 
decide where they want to set it up. 
BURMA: EU EMPHASIZING ENGAGEMENT WITH REGIME 
11. (C) Lorenz highlighted the EU's strategy of increasing 
its engagement towards Burma.  Lorenz underscored that the EU 
wanted to have a dialogue with Burma after Geneva and that an 
EU delegation met with Foreign Minister Nyan Win on the 
sidelines of the ASEM in Kyoto. The EU handed over a list of 
19 political prisoners that it wanted released, including 
opposition leader Aung San Suu Kyi, and raised the democratic 
process, but had not received feedback.  Amilhat felt that it 
was politically wise to confront the regime directly rather 
than not talking to them.  Also, by passing on a list of 
prisoners that the EU wants released, the EU is establishing 
a yardstick by which to measure the regime. 
12. (C) Amilhat remarked that the EU always had a policy of 
"targeted sanctions" in Burma, and this targeting had been 
reinforced in October 2004.  Amilhat expressed frustration, 
however, that sanctions were nearly irrelevant given China 
and India's support for the regime.  Also, Amilhat 
highlighted that the problem with sanctions is that it 
conveys the message that "we want you out", and the EU 
believes that there is value in engaging the regime to 
deliver the message that "it is part of the problem, but also 
part of the solution". 
13. (C) In response to a question about whether the US might 
pursue greater engagement, A/S Hill stated that Burma had 
shown no willingness to engage.  He cited a recent 
conversation with a Burmese who had graduated from SAIS and 
had seemed relatively educated, who had remarked to him that 
Aung San Suu Kyi was a "very stubborn woman and if A/S Hill 
knew her he would realize why they can't just let her out on 
the street".  A/S Hill asked how can you engage with that? 
14. (C) EC Director for Asia Fokion Fotiadis asked what would 
happen if Burma ratifies the constitution by a 99% referendum 
(like his home country of Greece)?  What is really the 
difference between this constitution and those of Vietnam or 
Laos?  Fotiadis stressed that the real issue is human rights 
abuse.  We should focus on that rather than the exact form of 
the constitution, and not get too involved in the 
constitution process.  Lorenz further emphasized that we have 
to be tolerant of an imperfect democratic process. 
EAST ASIA SUMMIT: EU REQUEST OBSERVERSHIP 
15. (C) Lorenz noted that the EAS was addressed at the ASEM 
in Kyoto and the Malaysia Summit in December and that the EU 
delivered its key message that the membership architecture 
needs to be inclusive and that Asia should not give the 
impression that it is ganging up on the US and the EU.  Along 
these lines, the EU requested that it should be invited as an 
observer.  The point was taken and will be discussed at the 
meeting of ASEAN foreign ministers at the end of July. 
16. (C) A/S Hill responded that he thought the Chinese had 
overplayed their hand on EAS and as a result Indonesia, 
Singapore and Vietnam have all come out in support of keeping 
the US presence in SE Asia.  A/S Hill mentioned that he liked 
ARF; he realized it wasn't perfect, but it had a pretty good 
membership and we wanted to see it work over ASEAN 3.  We 
just have to be patient since we are dealing with huge 
disparities in countries that are much larger than they are 
in the OSCE. 
CHINA: EU WORRIED ABOUT CHINA'S MERCANTILIST TRADE POLICIES 
17. (C) In a separate meeting on May 22 with the European 
Commission, Deputy DG for Asia Herve Jouanjean expressed 
concern regarding China's economic policies in Latin America, 
citing China buying mines in Cuba, steel factories and land 
in Brazil, and Columbian President Uribe's April visit to 
China.  Jouanjean questioned whether these activities were 
being conducted within the proper functioning of the market 
economy.  He noted that the Chinese protect this information 
very carefully and proposed that the EU and US work together 
to pull and exchange information on China's investments 
around the world.  NSC Director for Asia Dennis Wilder 
responded that the US was also looking into China's 
activities in Latin America and would welcome a dialogue with 
the EU on this issue. 
 
(U) Cable drafted by Embassy Luxembourg Poloff Julie 
Breitfeld; cleared by EAP Front Office. 
 
Schnabel 
.