Cablegate: Goi Proposes Bilateral Defense Cooperation

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DE RUEHJA #1354/01 1970652
ZNR UUUUU ZZH
O 150652Z JUL 08
FM AMEMBASSY JAKARTA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9525
INFO RUEKJCS/SECDEF WASHDC PRIORITY
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UNCLAS SECTION 01 OF 04 JAKARTA 001354

SIPDIS
SENSITIVE

DEPT FOR EAP, PM, EAP/MTS, EAP/MLS, EAP/RSP
SECDEF FOR USDP/ISA/AP P.IPSEN
NSC FOR E.PHU

E.O. 12958: N/A
TAGS: PREL MARR ID
SUBJECT: GOI PROPOSES BILATERAL DEFENSE COOPERATION
AGREEMENT

1. (U) This message is Sensitive but Unclassified -- Please
handle accordingly.

2. (SBU) SUMMARY: The Indonesian Department of Foreign
Affairs (DEPLU) has sent Embassy Jakarta the text of a
proposed Defense Cooperation Agreement (DCA). Indonesia is
in the process of concluding DCAs with its major partners in
the region. Indonesian defense officials have raised the
idea of reaching an agreement with the USG several times in
bilateral defense discussions over the past year, but the
Indonesian diplomatic note moves the process further along.
This message provides the text of the proposed agreement.
Mission will provide an analysis of the Indonesian proposal
via septel. END SUMMARY.

3. (SBU) The proposed DCA consists of ten articles, the
central one containing a description of areas of cooperation.
Essentially, the agreement would formalize existing forms of
cooperation. In contrast to a memorandum of understanding,
the agreement, if adopted, could require ratification by the
Indonesian legislature (DPR).

4. (SBU) The diplomatic note and draft agreement are
reproduced below.

5. (SBU) Text of GOI diplomatic note (no.
D.541/PO/VII/2008/59):

Begin text:

Department of Foreign Affairs of the Republic of Indonesia
presents its compliments to the Embassy of the United States
of America and has the honor to convey Indonesian proposed
draft on the (begin italics) Agreement between the Government
of the Republic of Indonesia and the Government of the United
States of America on Cooperative Activities in the Field of
Defense (end italics) (as attached).

Department of Foreign Affairs of the Republic of Indonesia
avails itself of this opportunity to renew to the Embassy of
the United States of America in Jakarta the assurances of its
highest consideration.

03 July 2008

Embassy of the United States of America
Jakarta

End text.

6. (SBU) The text of the GOI-proposed DCA follows:

Begin text:

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
AND THE GOVERNMENT OF THE UNITED STATES OF AMERICA ON
COOPERATIVE ACTIVITIES IN THE FIELD OF DEFENCE

The Government of the Republic of Indonesia and The
Government of the United States of America, hereinafter
referred to as the "Parties";

Desiring to enhance or strengthen mutual trust and
cooperation in defence and military field;

Acknowledging the existing friendly relations between the two
countries and their peoples;

Recognizing that the strengthening of defence cooperation
shall be beneficial to both national defences, particularly

JAKARTA 00001354 002 OF 004

to both Armed Forces;

Pursuant to the prevailing laws and regulations of the two
countries,

Have agreed as follows:

ARTICLE I: GENERAL PRINCIPLE

The Parties shall strengthen and develop friendly
relationship and cooperation in the defence field on the
basis of the principles of mutual respect for each other's
independence, sovereignty and territorial integrity,
non-interference in each other's internal affairs, equality,
mutual benefit and peaceful co-existence as enshrined in the
United Nations Charter and other universally recognized norms
of international law.

ARTICLE II: SCOPE OF COOPERATION

The scope of cooperation of this Agreement shall include:

1. Exchange of information on defence establishment and
matters, including the organization, doctrine and policy.

2. Exchange of officers for education and professional
training, mutual visits and joint research based on the
principle of reciprocity and mutual consent.

3. Exchange of scientific and technological data, experts,
technicians, trainers, as well as other forms of technical
cooperation based on the principle of reciprocity and mutual
consent.

4. Promotion of the cooperation between the defence
technology and industry institutions of the countries for the
mutual benefit and interest of the Parties, including the
exchange of technology, technical assistance, training,
provision of defence equipment and joint production.

5. Cooperation in the field of defence exercises, including
joint military training exercises between the armed forces of
the two countries.

6. Regular bilateral dialogue and consultation on security
issues of common concern.

ARTICLE III: IMPLEMENTING ARRANGEMENTS

The Department of Defence of both countries may conclude
particular implementing arrangements pertaining to specific
aspects of cooperation within the framework of this Agreement.

ARTICLE IV: JOINT COMMITTEE

1. In order to monitor, manage and implement the Agreement,
the parties agree to establish the Indonesia-USA Security
Dialogue as the Joint Committee for cooperation activities in
the field of defence and the USIBDD in the field of Mil to
Mil.

2. The Joint Committee shall compose of representatives from
each Party. The number of representatives from each Party
shall be mutually agreed by the Parties.

3. The Joint Committee shall be Co-Chaired by the appropriate
senior officials from the Department of Defence of the both
states.

4. The Tasks of the Joint Committee are as follows:

JAKARTA 00001354 003 OF 004

a. To recommend and initiate the cooperative activities;
b. To organize and implement the approved activities;
c. To coordinate, monitor and control the approved activities;
d. To resolve problems arising out of the implementation of
the cooperative activities;
e. To submit a joint report of the meeting to their
respective Defence Ministers.

5. The Joint Committee may establish sub-committees to
effectively address specific projects of mutual interest.

6. The Joint Committee shall also in principle hold a
USA-Indonesia Defence and Security Dialogue at least once a
year, alternately in each country.

7. The date, venue and agenda of such Dialogue shall be
agreed upon by the Co-Chairpersons.

ARTICLE V: INTELLECTUAL PROPERTY RIGHTS

In accordance with the legislation of their states, the
Parties shall provide efficient protection and distribution
of intellectual property rights, including its ownership and
legal use, which are being transferred or created in
accordance with this Memorandum of Understanding. The issues
of protection and distribution of intellectual property
rights including protection of a third party's legitimate
rights, taking into full consideration the equitable portion
of ownership based on the contribution of the respective
participants, shall be regulated by the Arrangements
concluded by organizations of the Parties on specific areas
of cooperation.

ARTICLE VI: CONFIDENTIALITY

1. The Parties shall protect the classified information to
which they may have access within the framework of this
Agreement in accordance with both national laws and
regulations.

2. The classified information and equipment shall only be
provided through official channels agreed upon by Co-Chairs
of the Joint Committee. These information and equipment are
to be labelled with the indication of their classification
level and Country of Origin as follows:

INDONESIAN ENGLISH
SANGAT RAHASIA TOP SE CRET
RAHASIA SEC RET
TERBATAS/KONFIDENSIAL CONFIDENTIAL
BIASA UNCLASSIFIED

3. All information and equipment received in the framework of
this Agreement shall not be transferred, disclosed or
released, either directly or indirectly, on temporary or
permanent basis, to third parties, whether persons and
entities, without the prior written consent of the
originating Party.

ARTICLE VII: FUNDING

1. This Agreement shall be implemented in accordance with the
budgetary allocation of each Party.

2. The budgetary allocation of each Party shall be defined in
the implementing arrangement.

ARTICLE VIII: SETTLEMENT OF DISPUTES

JAKARTA 00001354 004 OF 004

1. Any matter arising from this Agreement with respect to its
interpretation or implementation shall, in the first
instance, be submitted to the Joint Committee for amicable
settlement.

2. In the event that the matter is not settled under
paragraph 1, both Co-Chairs of the Joint Committee shall
bring the matter to their respective Ministers of Defence for
amicable settlement.

3. In the event that the matter is not settled under
paragraph 2, it shall be settled by the Parties through
diplomatic channel.

ARTICLE IX: AMENDMENTS

1. This agreement may be amended or revised at any time in
writing my mutual consent of the Parties.

2. Such amendment shall enter into force on the date as may
be mutually agreed upon by the Parties and shall form part of
this Agreement.

3. Any amendment shall not affect the right and obligations
arising or based on this Agreement or any arrangement entered
into under this Agreement before or up to the date such
amendment enters into force.

ARTICLE: X ENTRY INTO FORCE, VALIDITY AND TERMINATION

1. This Agreement shall enter into force on the date of last
notification on which the Parties have informed each other,
through diplomatic channels, of compliance with the legal
requirements necessary for the entry into force of this
Memorandum of Understanding.

2. This Agreement shall remain in force for a period of five
(5) years and upon the expiry thereof may be renewed for
another five (5) years unless it is renounced by either Party
by signing written notice to the other at least ninety (90)
days prior to its intention to terminate this Agreement.

3. The termination of this Agreement shall not affect the
validity and duration of any activities concluded within the
framework of this Agreement.

In Witness Whereof the undersigned, being duly authorized
thereto by their respective Governments, have signed this
Agreement.

Done in .......... on .......... in two originals, in
Indonesian and English languages, all text are being equally
authentic. In case of divergence of interpretation, the
English text shall prevail.

FOR THE GOVERNMENT OF
THE REPUBLIC OF INDONESIA
............................

FOR THE GOVERNMENT OF
THE UNITED STATES OF AMERICA
............................

End text.

HUME

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