021049Z
COMMENT:
CONFIDENTIAL
FM JAKARTA
TO PRIORITY FCO
TELNO 411
OF 25043OZ JUNE 91
Copy sext to AMO
км
HKCC181/22
2/7
INFO ROUTINE HONG KONG, DTI, INLAND REVENUE
YOUR TELNO 255: UK/INDONESIA BILATERAL AGREEMENTS: TERRITORIAL CLAUSES
SUMMARY
1. INCONCLUSIVE DISCUSSION WITH POLITICAL DIRECTOR, DFA. INSTRUCTIONS REQUESTED ON 2 FURTHER FORMULATIONS. WE MUST USE INDONESIAN KEENESS
FOR
NEW AIR SERVICE AGREEMENTS TO OBTAIN AGREEMENT ON ALL OUTSTANDING TERRITORIAL
DETAIL
CLAUSES.
2. I SPOKE BRIEFLY TO WIRYONO, POLITICAL DIRECTOR, DFA, ON 21 JUNE, AT THE END OF A LONG CALL ON OTHER ISSUES. WIRYONO WAS DEBRIEFED, AND AWARE OF THE CONCURRENT HONG KONG/INDONESIA ASA NEGOTIATIONS IN BALI (OUR IPT).
3. WIRYONO SAID INDONESIA HAD SIGNED 26 DOUBLE TAXATION AGREEMENTS (DTAS). OF THESE ONLY THAT WITH
·
THE US DID NOT CONTAIN 'AS DEFINED IN ITS LAWS' INDONESIA'S REGIONAL NEIGHBOURS INCLUDING SINGAPORE, BRUNEI, JAPAN, CHINA, NEW ZEALAND, INDIA, PAKISTAN HAD HAD NO PROBLEMS. WHY SHOULD THE UK? THE INDONESIANS HAD A DOMESTIC LAW DEFINING ITS TERRITORY. THIS HAD TO BE RECOGNISED. THERE HAD BEEN DOMESTIC CRITICISM OF THE DFA FOR HAVING ACCEPTED THE WORDING IN THE US AGREEMENT.
4. I COMMENTED THAT OUR CONCERNS WERE NOT ONLY, OR MOSTLY, E TIMOR. IT WAS A QUESTION OF INTERNATIONAL LAW. AUSTRALIA AND THE US, WHO DID NOT HAVE OUR PROBLEMS ON E TIMOR, SHRED THIS CONCERN. WE COULD NOT CREATE THE PRECEDENT OF ALLOWING A COUNTRY TO DEFINE ITS TERRITORY PURELY IN TERMS OF ITS OWN DOMESTIC LAW. THAT WAY LAY INTERNATIONAL ANARCHY. THE EASIEST WAY AHEAD WAS TO ACCEPT THE COMBINED US/FRG LANGUAGE WE HAD PROPOSED. THERE COULD BE NO OBJECTION IN PRINCIPLE. AND IT NEATLY SIDESTEPPED BOTH OUR POTENTIAL PROBLEMS.
5. WIRYONO ARGUED THAT A TEXT HE QUOTED FROM (WHICH APPEARED TO BE THE FRG TEXT) AND WHICH, IMPLICITLY, INDONESIA COULD ACCEPT, COVERED OUR CONCERNS BECAUSE OF 'IN ACCORDANCE WITH INTERNATIONAL LAW' AT THE END OF THE PARAGRAPH. I ARGUED THAT THIS APPEARED TO QUALIFY THE SECOND HALF OF THE PARAGRAPH (CONTINENTAL SHELF, SEAS ETC), NOT THE FIRST. WIRYONO SUGGESTED BOTH SIDES REFLECT FURTHER. I INDICATED THAT IF THE INDONESIANS PERSISTED, THEY WOULD PUT AT RISK THE REVISED ASAS AS WELL AS THE DTA AND COPYRIGHT AGREEMENT.
6. AT THIS STAGE, I SUGGEST WE HOLD OUR GROUND AND, IN CONCERT WITH OTHER PARTS OF THE INDONESIAN BUREAUCRACY, TRY TO USE THEIR DESIRE FOR THE SUBSTANCE OF NEW HK AND UK ASAS TO SHIFT THE DFA ON TERRITORIAL CLAUSES FOR ALL THE OUTSTANDING AGREEMENTS.
7. IT WOULD, HOWEVER, BE PRUDENT TO HAVE SOME FURTHER FALLBACK
T
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