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STRATFOR.COM
Global Intelligence Update
August 14, 1999

U.S. Shifts Focus from Taiwan to Indonesia

Summary:

Despite the continued tension over Taiwan's declaration of
statehood and North Korea's threatened missile launch, the U.S. has
apparently shifted its attention south to Indonesia.  Reports out
of Australia and Indonesia suggest Washington is monitoring and
preparing contingency plans for trouble spots in Indonesia, while
two U.S. aircraft carrier battle groups are currently in the South
China Sea near Indonesia.  The trouble is, while the U.S. has a
long-term strategic interest in Indonesian stability, the issue has
immediate salience for Washington's main partner in addressing the
situation - Australia.  This salience asymmetry, especially on the
East Timor situation, is generating friction between Washington and
Canberra, exacerbating relations already strained by trade and
foreign policy disputes.


Analysis:

Indonesian Air Force Chief of Staff Air Marshall Hanafie Asnan
claimed August 9 that intensive foreign reconnaissance flights over
Indonesian trouble spots, including Aceh, Ambon, and East Timor,
have recently been increasing.  According to an article in the
August 10 issue of the Indonesian newspaper Suara Karya, Asnan told
a conference in Jakarta that Indonesian Hawk 100 and 200 training
jets had been unable to positively identify the illegal intruders
due to the foreign aircraft's superior speed and avionics.
According to Suara Karya, Asnan "did not deny" suggestions that the
aircraft may have been carrier-based jets.

Failing to deny a suggestion is far from validating that
suggestion, and Ambon, Aceh, and East Timor are a bit widely
distributed for aircraft from one single carrier to visit.  But
there is evidence to suggest that carrier-based aircraft are in a
position to monitor Indonesian events.  The USS Kitty Hawk battle
group just concluded scheduled naval exercises in the South China
Sea with Malaysia, Singapore, Indonesia, and Thailand (which has
recently acquired a jump jet carrier).  Aircraft from the Kitty
Hawk were available for reconnaissance should Washington have
deemed it necessary.  Additionally, the USS Constellation arrived
in Singapore on August 10,  reportedly to carry out training
exercises with the Singapore Navy.  As for the distribution of the
reconnoitered areas, Asnan said nothing about the aircraft being of
the same type, or of performing recon on the same day, nor did
Suara Karya suggest all were carrier based.

Speaking at the conclusion of the Kitty Hawk's exercises, battle
group commander Rear Admiral Timothy Keating noted that there was
no indication China planned to attack Taiwan, but vowed that China
would "have the U.S. Navy to deal with" if it attempted aggression
against Taiwan or any other target.  "We are there in numbers,
we're trained, we're ready, and we're very powerful," the
Associated Press quoted Keating as saying.  At the same time,
Keating downplayed the Constellation's presence in the area, saying
the carrier was bound for the Persian Gulf and had nothing to do
with the Taiwan crisis.

So what we have is this. First, the Indonesian military contends
that foreign aircraft, which may or may not have been carrier
based, have been increasing illicit reconnaissance overflights of
Indonesia.  Second, they made this claim at the same time two U.S.
carrier battle groups are in the South China Sea.  This may be a
coincidence, but it is interesting that, despite tensions in North
Korea and Taiwan not to mention Keating's rhetoric, the U.S. saw it
fit to place two carrier battle groups off the coast of Indonesia
however coincidentally or temporarily.  Obviously, Washington does
not seem to feel that Chinese military action is imminent.  At the
same time, it seems to indicate some degree of concern over another
link in the archipelagic chain containing China - Indonesia.

Indonesia is a key component of U.S. strategy.  First, if the
United States is now engaged in containing China, the chain of
countries stretching from South Korea to Japan, Taiwan, the
Philippines, through Indonesia, Malaysia, and Singapore, to
Thailand is critical.  Given Indonesia's position astride vital sea
lanes and between Australia and peninsular Southeast Asia,
Indonesia is more critical to that chain than most.  Indeed, since
the U.S. has a strategic commitment to controlling the world's
maritime choke points, the Straits of Malacca and Lombok can be
closed from Indonesia.  Therefore, what happens in Indonesia is of
critical interest to the United States both in relation to China
and in the broadest contexts of American strategy.

The U.S. has tried to maintain a low profile on domestic Indonesian
events in an attempt not to exacerbate the situation. At the same
time, the U.S. is eager to ensure that Indonesia does not
disintegrate. Besides knowing that it doesn't want Indonesia to
collapse, and generally supporting East Timor's independence
movement, Washington really does not have a coherent policy on
Indonesia at present.  Or, to be more precise, it has a desired
outcome without any obvious means of ensuring that outcome.  This
generalized concern would warrant monitoring explosive areas like
Aceh, Ambon, and East Timor.  Apart from gathering information, it
would signal the intensely maneuvering political factions inside
Indonesia of U.S. interest and concern.  At the same time, using
carrier based aircraft for the reconnaissance mission would appear
to be a particularly overt move, unless immediate, tactical
information were required.  So, if the Indonesian report is true
and our inference that the flights originated from U.S. carriers in
the region is also true, then it would appear that U.S. concern is
mounting.  Why would this be the case right now?

The current political situation inside of Indonesia seems to
indicate that Megawati, the populist daughter of former President
Sukarno, whose party won a plurality in recent elections, has been
outmaneuvered in the post-election coalition building.  It is
unlikely that she will win the Presidency, as Islamic parties have
created a broad coalition that may actually benefit current
President Habibie's drive to hold on to power.  As the realization
dawns on her followers, they may take to the streets, destabilizing
the country.  As Indonesia hovers on the knifes edge, the United
States has undoubtedly been drawn into the maneuvering if only in
an attempt to contain the situation.  The reconnaissance flights
might well have been some sort of signal of American interest to
the various parties.  If so, it was noted and broadcast by the
current government, clearly a beneficiary of the signal.

Then there is the question of East Timor and Australia, which has
become a particularly complex tangle of late.  The paradoxical U.S.
position is that Indonesia must survive as a united state, but East
Timor, seized by Indonesia from Portugal, must be given its
independence.  East Timor has been an ongoing nightmare, but one
that appears to be drawing to a close as free elections approach.
Now America's closest partner in monitoring and managing tensions
in Indonesia is Australia, for which events in Indonesia have even
greater immediacy than for the United States.. They must coordinate
policies.

This has proved difficult.  For the U.S., Indonesia is a long-term
issue of grand strategy, currently drawing mid-level attention and
contingency planning.  For Australia, Indonesia - and specifically
East Timor - has been a matter of immediate and high level concern
for several months.  Australia has taken a leading role in managing
the run-up to the East Timor ballot on independence, and will
likely provide the nucleus of any UN peacekeeping force in the
territory.  Australia will also bear the brunt of any chaos in East
Timor, and so is carefully and patiently working to manipulate a
peaceful transition to whatever status East Timor adopts.

The asymmetry of interest has apparently led to a misunderstanding
between the two countries over U.S. intentions.  The Melbourne Age
reported on August 1 that Canberra had ordered Australian officials
visiting U.S. Pacific military headquarters in Hawaii to reject a
U.S. offer of a U.S. Marine "peacemaking" force, to be deployed in
East Timor either before or after the independence referendum.  It
then reported on August 10 that the U.S. contingency plans
included up to 15,000 Marines.  First, Australian Foreign Minister
Alexander Downer rejected the story as nonsense.  When the Age
publicized a telegram from Australia's representatives at the
contingency planning session, detailing the U.S. offer, Downer was
forced to admit that the U.S. had discussed the plan with Australia
- "hypothetically."  The Pentagon issued a statement on August 11
denying it had made any such offer.  What seems to have happened is
that the U.S. military, as is its normal policy, did some
contingency planning on East Timor, ranging from a few unarmed
observers to 15,000 Marines.  For the U.S., it was a hypothetical
exercise.  The Australian representatives, took the contingency
plan as an offer.

The alternative explanation is that the United States does have a
contingency plan for Indonesia including about a division of
Marines.  It is doubtful that East Timor would justify such a
commitment of forces.  Indonesia as a whole might.  It is possible
that the Australian representative, focused on East Timor, confused
a willingness to commit 15,000 Marines to Indonesia as a desire to
commit them to East Timor.  All of this is murky.

However, this much seems to be emerging from the gloom.  While the
headlines are focused on China-Taiwan, the United States seems to
be increasingly focused on Indonesia.  There is clearly a
contingency plan for deploying U.S. troops and this has clearly
been discussed with Australia in sufficiently ambiguous terms as to
come across as a desire to deploy troops rather than as the ability
to do so.  It is also clear that, at least temporarily, two U.S.
carriers are in the region and that the Indonesians seem to think
that they are flying reconnaissance missions over their territory.
China may wind up seizing some small islands near its coast, like
Quemoy.  But the U.S. seems to be more worried, for the moment,
about Indonesia.

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