Viewing cable 07JAKARTA1580
Title: A/S HILL DISCUSSES NORTH KOREA AND KOSOVO WITH

IdentifierCreatedReleasedClassificationOrigin
07JAKARTA15802007-06-07 10:39:00 2011-08-30 01:44:00 CONFIDENTIAL Embassy Jakarta
VZCZCXRO8305
PP RUEHCHI RUEHDT RUEHHM
DE RUEHJA #1580/01 1581039
ZNY CCCCC ZZH
P 071039Z JUN 07
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC PRIORITY 4991
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHJA/ISLAMIC CONFERENCE COLLECTIVE
RUEHGG/UN SECURITY COUNCIL COLLECTIVE
RUEHBY/AMEMBASSY CANBERRA 0798
RUEHDT/AMEMBASSY DILI 0847
RUEHWL/AMEMBASSY WELLINGTON 1527
RUEHJA/AMCONSUL SURABAYA 1804
RUEKJCS/SECDEF WASHDC
C O N F I D E N T I A L SECTION 01 OF 02 JAKARTA 001580 
 
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E.O. 12958: DECL: 06/17/2017 
TAGS: BM ID KN LE PGOV PREL
SUBJECT: A/S HILL DISCUSSES NORTH KOREA AND KOSOVO WITH 
PRESIDENTIAL FOREIGN POLICY ADVISOR DINO DJALAL 
 
REF: JAKARTA 10189 BANK MANDIRI CLOSES DPRK ACCOUNTS 
 
JAKARTA 00001580  001.2 OF 002 
 
 
Classified By: Charges d'Affaires John A. Heffern, Reasons 1.4 (b) and 
(d) 
 
¶1. (C) Summary:  On May 29, A/S Hill and Presidential Foreign 
Policy Advisor Dino Djalal discussed North Korea, Kosovo, 
Lebanon, Iran, Thailand, the Indonesian mud flow problem, the 
Newmont case, military cooperation, the Yudhoyono 
administration, and economic growth.  Djalal said if the U.S. 
is interested, Indonesia might be able to help transfer North 
Korean frozen assets in Macau through a bank in Indonesia, 
where the North Koreans have a closed account.  He said the 
GOI could go either way on the Ahtisaari Kosovo proposal in 
the UNSC.  End Summary. 
 
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North Korea 
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¶2. (C) A/S Hill briefed Djalal on North Korean talks, 
including steps to address the transfer of frozen North 
Korean funds in Macau.  Djalal responded that during a 
discussion between Foreign Minister Hassan Wirajuda and 
Secretary Rice, Wirajuda had told Secretary Rice that North 
 
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Korea had accounts in Indonesia's Bank Mandiri which could be 
used to transfer the frozen assets, if the U.S. approved. 
(Note:  Per reftel, the North Korean accounts in Bank Mandiri 
are now closed but not frozen, and could be reopened.)  GOI 
would also consider contributing heavy fuel oil to North 
Korea, Djalal said.  Djalal also offered his view of the 
North Korean regime, saying, "It's a society which depends on 
a myth.  Once it opens up the whole society will crumble.  I 
am beginning to think the only reason they hold onto the 
nuclear program is it's the only thing that makes them 
relevant."  Djalal praised Hill's work on the Six-Party Talks 
and said the whole region is hoping for them to succeed. 
 
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Kosovo, Lebanon and Iran, Thailand 
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¶3. (C) Addressing the Ahtisaari Kosovo resolution, Djalal 
said the GOI "could go either way," and that "there are 
arguments on both sides."   He added, "Kosovo is the only 
issue on which we are not sure which way we will go." 
Addressing the Hariri tribunal, Djalal said the GOI's only 
concern is to avoid a civil war, adding that the GOI condemns 
the killing.  Djalal asked A/S Hill about talks with the 
Iranians in Baghdad, telling him, "We do encourage you to 
talk with the Iranians."  Djalal informed A/S Hill that 
President Yudhoyono has been called before Parliament on June 
5 to explain Indonesia's support of the UNSC 1747 on Iran, 
but said Yudhoyono will not attend but will send a senior 
minister instead.  Talking about Thailand, A/S Hill condemned 
the coup, saying he had emphasized to Thai military leaders 
that it is important that the elections not be delayed past 
December 2007. 
 
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Mud Flow, Newmont case 
---------------------- 
 
¶4.  (C) Talking about his visit to the mud flow in Surabaya, 
A/S Hill stressed what a catastrophe it is and that no one 
seems to know how to deal with it.  Djalal explained a 
Japanese solution which he said looks promising, to separate 
the water from soil and make bricks out of the soil.  He 
asked if the U.S. has any scientific advice on how to solve 
the flow, and A/S Hill responded that Indonesia needs some 
solid technical advice.  Noting that the mud flow is a real 
political issue for Yudhoyono because of the large number of 
votes in eastern Java, Djalal said it has to be solved by 
2008, before the 2009 presidential elections.  Djalal raised 
the Newmont case, noting the acquittal.  A/S Hill responded 
that this was a good verdict but that the prosecutor's 
decision to appeal is not.  Djalal said the government did 
not ask the prosecution to appeal. 
 
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Military restrictions, Economy 
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¶5. (C) Djalal said proposed U.S. Congressional restrictions 
 
JAKARTA 00001580  002.2 OF 002 
 
 
on military assistance to the Indonesian military (TNI) would 
"be a huge step backwards."  A/S Hill responded that we just 
need to work through this, and that as long as TNI keeps 
moving in the right direct this will work out alright. 
President Bush and Secretary Rice are both very positive 
about Indonesia, he noted.  A/S Hill said the key issue is to 
keep the Indonesian economy on track for the sake of the 
people's well being. 
 
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Yudhoyono, Amien Rais, Ambassador Hume 
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¶6. (C) Djalal said Yudhoyono is more confident politically 
now, explaining that he had learned his lessons from Gus Dur, 
who took Parliament head on immediately after taking office, 
leading to disintegration of support and his downfall.  While 
the media questioned Yudhoyono's decisiveness early in his 
term, Djalal said his softer approach is now paying off. 
Economic growth is strong and Yudhoyono has more friends now 
than in 2004, Djalal said.  Djalal volunteered an apology for 
National Mandate Party's Amien Rais' accusations that the 
U.S. made campaign contributions to Indonesian political 
campaigns in the last presidential elections, including to 
Yudhoyono's.  Djalal pointed out that Rais has been raising 
these types of questions for years, "always playing this 
game."  A/S Hill said he told the press that this story is 
not true.  He said Trade Minister Sri Mulyani's recent visit 
to Washington went very well.  He also told Djalal that last 
Friday the Senate approved Cameron Hume as ambassador. 
Djalal said 
he heard that Ambassador Hume speaks Arabic. 
HEFFERN