Wednesday, May 18, 2016

Wikis s BAG Archives: Australia Related (Part-7)


199114
3/26/2009 21:18
09CANBERRA312
Embassy Canberra
CONFIDENTIAL//NOFORN
09CANBERRA213|09SYDNEY60
P 262118Z MAR 09FM AMEMBASSY CANBERRATO SECSTATE WASHDC PRIORITY 1277INFO AMCONSUL MELBOURNE PRIORITY AMCONSUL PERTH PRIORITY AMCONSUL SYDNEY PRIORITY SEEF WASHINGTON DC PRIORITYR USPACOM HONOLULU HI PRIORITY


C O N F I D E N T I A L CANBERRA 000312 SIPDIS NOFORN E.O. 12958: DECL: 03/25/2019 TAGS: PGOV, MARR, AS

SUBJECT: DEFENSE MINISTER ANGERED BY REPORTS OF PROBE

REF: A) CANBERRA 213 B) SYDNEY 60 Classified By: Political Counselor James F. Cole for rsons 1.4 (b) an d (d).

1. (C/NF) SUMMARY: Defense Minister Joel Fitzgibbon reportedly has rcted angrily to press reports that Australian Defense Department (ADOD) officials have conducted a secret investigation into Fitzgibbon's relationship with a Chinese-born, Sydney-based businesswoman, Helen Liu. According to March 26 Australian press articles, DOD officials apparently the details of the investigation, which revled that Fitzgibbon stays in a Canberra residence he sublets from Liu, who has been a erous supporter of the New South Wales (NSW) Australian Labor Party (ALP) over the past decade. Allegedly, ADOD security personnel advised senior defense officials of their concern about Fitzgibbon's relationship with Liu. Fitzgibbon's egorically denied that any security concerns had been raised with him, and it asserted that his 16-yr friendship with the Liu family is well-known. The media has interpreted the of this investigation to be the result of Fitzgibbon's harsh criticism of ADOD in the wake of an SAS payroll snafu (reftel A). The growing acrimony between ADOD and its Minister lends further weight to suggestions that Mr. Fitzgibbon could be relieved of this portfolio in the next cabinet reshuffle. END SUMMARY
DEFENSE S PROBE OF DEFENSE MINISTER

2. (U) The Sydney Morning Herald reported March 26 that officials in ADOD had details of a secret investigation into their own minister's 16-yr friendship with wlthy Chinese-born businesswoman, Helen Liu. Liu first met Fitzgibbon's father, Labor MP Eric Fitzgibbon, when the MP visited China on behalf of then Prime Minister Paul Kting. The ADOD investigation, which accessed Fitzgibbon's personal computer records, discovered that Fitzgibbon rents his Canberra residence from Liu and her family and there were allegations that Fitzgibbon had received expensive gifts from Liu. Liu's companies have been erous supporters of the NSW ALP over the past decade, contributing about $90,000 AUD.

FITZGIBBON DENIES RELATIONSHIP QUESTIONED BY ADOD

3. (U) Fitzgibbon has fired back, intimating that the s reflected resistance from entrenched interests in the Defense Department to accept broad reforms contained in Fitzgibbon's forthcoming Defense White Paper. He egorically denied that ADOD had raised any security concerns over his relationship with Liu. A spokesman for Fitzgibbon said he and his family had known Liu and her family since 1992 or 1993 and regarded them as personal friends. The Minister stated he had exchanged only "small" gifts with the Liu family and had received no gifts that required public declaration under parliamentary disclosure laws. A source close to Fitzgibbon said it appred he was "at war" with his department after the bruising battle over responsibility for bungled payments to SAS soldiers.

PRIME MINISTER "UNIMPRESSED" BY REPORTS

4. (U) Responding to reporters' questions during his visit to Washington, Prime Minister Rudd said that he was "unimpressed" with the covert inquiries into Fitzgibbon's relationship, and would await the findings of a Defense investigation into claims departmental officials conducted covert inquiries into their minister. He said neither the Department of Defense secretary nor the Chief of Defense QDepartment of Defense secretary nor the Chief of Defense Force staff had received any reports of covert investigations by the department. "I'm further advised," he stated, "that the secretary of the Defense Department is conducting a further investigation into this matter. Therefore, I'll await the outcome of that investigation."

5. (C/NF) COMMENT: The source and veracity of the reports aside, what is apparent is continued tension between Mr. Fitzgibbon and elements within the ADOD. As we have noted in rlier reporting (ref B), some observers here have expressed misgivings with Fitzgibbon's performance as defense minister and speculate that the outspoken Fitzgibbon's days in this post may be ed. Fitzgibbon, an rly supporter of Kevin Rudd while in opposition, has enjoyed the Prime Minister's support in his defense role. While Rudd is withholding judgment until the inquiry into the of the probe is concluded, Fitzgibbon's as a competent manager of his large and complex portfolio has not been helped by this latest indiion of a bad relationship between the Defense Minister and the military. RICHE


200482
4/3/2009 0:41
09CANBERRA335
Embassy Canberra
CONFIDENTIAL//NOFORN
09CANBERRA312

P 030041Z APR 09FM AMEMBASSY CANBERRATO SECSTATE WASHDC PRIORITY 1308INFO AMEMBASSY WELLINGTON PRIORITY AMCONSUL MELBOURNE PRIORITY AMCONSUL PERTH PRIORITY AMCONSUL SYDNEY PRIORITY R USPACOM HONOLULU HI PRIORITYSEEF WASHINGTON DC PRIORITY

C O N F I D E N T I A L CANBERRA 000335 NOFORN SIPDIS E.O. 12958: DECL: 04/01/2019 TAGS: PGOV, MARR, AS

SUBJECT: DEFENSE MINISTER LIKELY TO SURVIVE - FOR NOW REF: CANBERRA 312 Classified By: Political Counselor James F. Cole, for rsons 1.4 (b) and (d).

1. (C/NF) SUMMARY: Defense Minister Joel Fitzgibbon apprs safe in his portfolio in the short-term, as the media hype surrounding his link with Chinese-born businesswoman, Helen Liu, subsides (reftel). Prime Minister Rudd has publicly backed him, an independent audit of a payroll bungle affecting the Special Air Services Regiment (SAS) has apparently absolved him of responsibility, and the media is not calling for his removal. Those still out for Fitzgibbon's scalp are the Opposition Liberal Party desperate for a political victory, and, according to Fitzgibbon, some disgruntled members of the military and defense burucracy who are unhappy with Fitzgibbon's reform ada. An internal inquiry by the Australian Department of Defence (ADOD) has found no evidence so far of any officially sanctioned investigation targeting Fitzgibbon or his relationship with Liu, and Australia's counter-espionage acy declared that it has no security concerns regarding the Chinese businesswoman. With the relse of the Defense White Paper still pending, Fitzgibbon's short-term future is likely secure, assuming no other shoe drops. However, it is difficult to see how a minister with a poisoned relationship with his department, and who has not distinguished himself in Parliament, will survive a cabinet reshuffle, which is likely before the end of the yr. END SUMMARY

NO EVIDENCE ADOD SPIED ON FITZGIBBON 2. (U) ADOD's Defence Security Authority's initial assessment, provided March 27, was that contrary to information in the original media story, no element of Defence had investigated Fitzgibbon's relationship with Liu, no Defence investigative authority had been aware of the Chinese-Australian businesswoman, and no part of Defence accessed personal information in Fitzgibbon's . The same day, the Attorney-eral announced that the Australian Security lice Organization (ASIO) had no information relating to Liu which would have given rise to any security concern.

3. (C/NF) Australian Deputy Secretary of Defense for lice and Security, Steve Merchant, told us on March 31 that the Australian Department of Defense (ADoD) has "turned the place upside down" since the press reported unauthorized defense signals directorate (DSD) spying against Fitzgibbon. Mr. Merchant said it was important for the United States to know unequivocally that there was nothing to the allegations, and that DSD had not used any of its capabilities to spy on the Minister (see septel.)

FITZGIBBON BACKED BY POPULAR SYDNEY PAPER - AND RUDD

4. (SBU) The Murdoch-owned tabloid, "The Daily Telegraph", Sydney's largest selling newspaper (and often an accurate gauge of what Labor's core working-class voters are thinking), strongly backed Fitzgibbon in an editorial, asserting that Fitzgibbon had been betrayed by ADOD as a result of his "tough minded" approach to clning up a "massive funding black hole." The Telegraph urged Prime Minister Rudd to "back his minister and put the erals and burucrats back in their box." On April 2, the respected foreign editor of The Australian, Greg Sheridan, also came out in Fitzgibbon's defense. After Fitzgibbon disclosed the China trips, Rudd said he "expected better" of his Defence QChina trips, Rudd said he "expected better" of his Defence Minister but added that he "is doing a good job." There has been no media push for Fitzgibbon's ouster, and the story, while still appring in the press, is no longer dominating the political debate, notwithstanding the Opposition's continued calls for Fitzgibbon's hd.

FITZGIBBON COULD GO IN NEXT RE-SHUFFLE

5. (C/NF)) COMMENT: Fitzgibbon's determination to cln up Defence, his unwillingness to defer to sacred cows in the Defence establishment, and his public admonishment of his department, have crted enemies in ADOD and the military. Fitzgibbon's indiscretions do not seem to warrant dismissal, and Rudd and Deputy Prime Minister Julia Gillard (who is close to Fitzgibbon) continue to show confidence in his performance. Provided there are no further controversies, Rudd is unlikely to fire Fitzgibbon in the short term. Doing so could damage the credibility of the defense white paper, which we are hring could be delayed until the end of May, and could be interpreted as a win for his detractors. It is more likely that Fitzgibbon will be permitted a more dignified exit in the next ministerial re-shuffle, which could occur at the end of the yr as the Government prepares for the 2010 election. A minister cannot be effective if he is constantly at war with his department, and there are several talented alternatives waiting in the wings. We cannot rule out the possibility that PM Rudd will retain Fitzgibbon remaining in the post beyond the next re-shuffle, given the loyalty between the two. After Rudd won the election, he kept Fitzgibbon on in the Defence portfolio, despite the predictions of most experts that the portfolio would go to a more substantial political figure. RICHE




201052
4/7/2009 6:19
09CANBERRA352
Embassy Canberra
UNCLASSIFIED//FOR OFFICIAL USE ONLY
09CANBERRA335|09CANBERRA349
VZCZCXRO1157PP RUETDE RUEHBY #0352 0970619ZNR UUUUU ZZ 070619Z APR 09FM AMEMBASSY CANBERRATO RUEHC/SECSTATE WASHDC PRIORITY 1335INFO RUEHBN/AMCONSUL MELBOURNE PRIORITY 6231RUET/AMCONSUL PERTH PRIORITY 4494RUEHDN/AMCONSUL SYDNEY PRIORITY 4450RHHMUNA/R USPACOM HONOLULU HI PRIORITYRUEKJCS/SEEF WASHINGTON DC PRIORITY


UNCLAS CANBERRA 000352 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV, AS

SUBJECT: POLL BOOST FOR RUDD DESPITE FITZGIBBON CONTROVERSY

REF: A) CANBERRA 335 B) CANBERRA 349 1. (SBU)

SUMMARY: The Rudd Government's ld in the latest Newspoll has incrsed, despite controversy over his Defense Minister's relationship with a Chinese-born business woman, Opposition accusations that Rudd is a "roving ambassador for China," and press reports that Rudd verbally abused a flight attendant. For the first time, Opposition Lder Malcolm Turnbull's satisfaction rating has moved into negative territory, putting further pressure on him as speculation builds about the intentions of former Trsurer Peter Costello. The poll suggests that the economy is the main issue in voters' minds, and that they back Rudd's handling of it, including his participation at the G20 Summit. END SUMMARY.

RECENT CONTROVERSIES

2. (U) Since the previous Newspoll two weeks ago, Defense Minister Joel Fitzgibbon has been under pressure due to the "Helen Liu affair" (ref A). This erated wider debate about the Rudd Government's relationship with China, with the Opposition claiming the "Sinophile" Rudd was a "roving Ambassador for China." (ref B). On April 3, the Murdoch-owned tabloids in Sydney and Melbourne, the largest-selling newspapers in Australia, carried front page stories that Rudd had reduced a flight attendant on his RAAF VIP flight to trs because he didn't get his "special" ml. Rudd's had initially denied the story, but once it became public Rudd apologized, conceding that "I'm not perfect."

BUT RUDD'S POPULARITY INCRSES

3. (U) The Newspoll, conducted April 3-5, has the Australian Labor Party (ALP) incrsing its ld over the Liberal-National Party Coalition to 58-42, from 56-44 two weeks ago. Rudd's satisfaction rating rose five points to 68 percent, and his ld as preferred Prime Minister jumped four points to 67-18. For the first time, Turnbull's satisfaction-dissatisfaction rating has moved into negative territory (39-42). The Coalition is now in a worse position in the polls than it was in September, when Turnbull took over. Interpreting the s, the chief executive of Newspoll said "it is very difficult for an Opposition lder to brk through, given Mr. Rudd is enjoying people rallying behind him in a crisis, the impact of the stimulus package payments and the profile he has had in recent days on the world stage."

COSTELLO LOOKING BETTER

4. (SBU) COMMENT: The Coalition is putting a brave face on the Newspoll, largely attributing it to Rudd's stimulus package. It has fired many bullets during the past fortnight - and hit nothing. Liberal Party MPs in marginal sts will be worried and this will only incrse the attractiveness of former trsurer Peter Costello as a ldership option. The middle class families in Australia who decide elections, frful of being thrown out of work, are focused almost exclusively on the economy and they believe Rudd is doing the best he can. An ALP official told us today that their tactic has been to remind the public that the financial crisis started in the United States, and the Government is rcting the best it can. RICHE


210090
6/4/2009 7:27
09CANBERRA524
Embassy Canberra
CONFIDENTIAL//NOFORN
VZCZCXRO5793OO RUEHBC RUEHDBU RUEHDE RUEHDH RUEHDT RUEHIHL RUEHKUK RUEB RUEWDE RUEHBY #0524/01 1550727ZNY CCCCC ZZHO 040727Z JUN 09FM AMEMBASSY CANBERRATO RUEHC/SECSTATE WASHDC IMMEDIATE 1573INFO RUCNAFG/AFGHANISTAN COLLECTIVE IMMEDIATERUCNARF/ASN REGIONAL FORUM COLLECTIVE IMMEDIATERUCNRAQ/IRAQ COLLECTIVE IMMEDIATERUEHBN/AMCONSUL MELBOURNE IMMEDIATE 6392RUET/AMCONSUL PERTH IMMEDIATE 4656RUEHDN/AMCONSUL SYDNEY IMMEDIATE 4617RUEHIN/AIT TAIPEI IMMEDIATE 1211RHHMUNA/R USPACOM HONOLULU HI IMMEDIATERUIIA/CIA WASHINGTON DC IMMEDIATERUEKJCS/CJCS WASHINGTON DC IMMEDIATERUEKDIA/DIA WASHINGTON DC IMMEDIATERHMFISS/HQ USCENTCOM MAILL AFB FL IMMEDIATERUEKJCS/JOINT STAFF WASHINGTON DC IMMEDIATERHEHNSC/NSC WASHINGTON DC IMMEDIATERUEKJCS/SEEF WASHINGTON DC IMMEDIATERHEHAAA/THE WHITE HOUSE WASHINGTON DC IMMEDIATERUEHNO/USMISSION USNATO IMMEDIATE 0868RUCNDT/USMISSION USUN NEW YORK IMMEDIATE 0811

C O N F I D E N T I A L SECTION 01 OF 02 CANBERRA 000524 NOFORN SIPDIS E.O. 12958: DECL: 06/04/2019 TAGS: PREL, PINS, PINR, AS

SUBJECT: AUSTRALIAN DEFENCE MINISTER FITZGIBBON RESIGNS

CANBERRA 00000524 001.4 OF 002 Classified By: Charge d'Affaires Daniel A. Clune. Rsons: 1.4 (b)(c).

SUMMARY ------- 1. (C/NF) Defence Minister Joel Fitzgibbon resigned June 4 over an apparent conflict of interest involving his brother's private hlth insurance company. The embattled minister had been under pressure following rlier revelations of undeclared gifts from a Chinese businesswoman and free accommodation provided by his brother's company. PM Rudd accepted the resignation, noting the importance of maintaining the highest standards of government accountability, and pledged to have a new defense minister in place quickly. Depending on who might be tapped to take up the complex portfolio, a larger cabinet reshuffle may be in the offing. End summary.

2. (SBU) Prime Minister Rudd called a news conference just before Parliamentary question time June 4 to announce he had accepted the resignation of Defence Minister Joel Fitzgibbon. In a written letter to the PM, Fitzgibbon acknowledged he may have violated the Rudd government's of Conduct for ministers following the disclosure by the Shadow Defence Minister David Johnston in Parliament the previous evening that Fitzgibbon had permitted his brother, Mark Fitzgibbon, who hds private hlth insurance company NIB, along with a representative of the U.S. hlth company Humana, to meet Minister for Veterans' Affairs Alan Griffin and Minister for Defence Science and Personnel Warren Snowden in Fitzgibbon's ministerial with Fitzgibbon's staff members to pursue an Australian Department of Defence contract. Fitzgibbon had initially denied the claim.

3. (SBU) In his press remarks, Rudd praised Fitzgibbon as a "first-class defense minister," citing his accomplishments in withdrawing combat forces from Iraq, addressing the new strategic challenges in the Afghanistan-Pakistan thter, and overseeing the Defence White Paper. At the same time, however, Rudd stressed that his government expected the highest standards of conduct and accountability. He promised to name a new defense minister before the next Afghanistan Regional Command - South (RC-South) meeting, but gave no hint when an announcement could be expected.

4. (SBU) Fitzgibbon had been under pressure, not only from the Opposition bench but also from the Prime Minister himself, over rlier conduct involving undeclared gifts. On June 2, just two days rlier, for example, Fitzgibbon had been forced to issue a public apology over having failed to declare free accommodation provided by his brother's company. In March, he was forced to acknowledge having received free air tickets to China and other gifts from Sydney-based businesswoman Helen Liu. The latter incident, involving media claims -- emphatically denied by the GOA -- that Qmedia claims -- emphatically denied by the GOA -- that Fitzgibbon's relationship with Liu was the subject of a secret internal ADOD probe, had continued to fuel controversy over Fitzgibbon's ethics and judgement.

COMMENT -------

5. (C/NF) While PM Rudd insisted that the decision to resign was Fitzgibbon's alone, it is telling that he dis his chief aide, Alistair Jordan, and Senator Faulker, Special Minister of State and Cabinet Secretary, to meet with Fitzgibbon rly on the morning of June 4, prior to production of the resignation letter. 6. (C/NF) Given the complexity and size of the Defence portfolio, and the critical importance of managing its transformation along the lines set out in the recent Defence White Paper, PM Rudd may well call on an experienced front bencher to fill the Defence Minister role. This would inevitably ld to a reshuffle, giving Rudd a chance to replace some of the wker performers and reward promising up-and-comers, possibly including perhaps Assistant Trsurer Chris Bowen or back-bencher Mark Arbib. Possible candidates to succeed Fitzgibbon include Greg Combet, who was Parliamentary Secretary for Defence Procurement until recently when he was moved to the Water portfolio; Mike Kelly, currently Parliamentary Secretary for Defence Support; Robert McClelland, currently Attorney-eral but previously Shadow Defence Minister; and Senator John Faulkner. We do not expect to see any diminution of the close mil-mil relationship or impact on the alliance as a result of the Defence Minister's resignation. CLUNE


210359
6/5/2009 8:26
09CANBERRA535
Embassy Canberra
CONFIDENTIAL//NOFORN
09CANBERRA524
VZCZCXRO1283OO RUEHBC RUEHDBU RUEHDE RUEHDH RUEHDT RUEHIHL RUEHKUK RUEB RUEWDE RUEHBY #0535/01 1560826ZNY CCCCC ZZHO 050826Z JUN 09FM AMEMBASSY CANBERRATO RUEHC/SECSTATE WASHDC IMMEDIATE 1587INFO RUCNAFG/AFGHANISTAN COLLECTIVE IMMEDIATERUCNARF/ASN REGIONAL FORUM COLLECTIVE IMMEDIATERUCNRAQ/IRAQ COLLECTIVE IMMEDIATERUEHBN/AMCONSUL MELBOURNE IMMEDIATE 6404RUET/AMCONSUL PERTH IMMEDIATE 4668RUEHDN/AMCONSUL SYDNEY IMMEDIATE 4630RUEHIN/AIT TAIPEI IMMEDIATE 1213RHHMUNA/R USPACOM HONOLULU HI IMMEDIATERUIIA/CIA WASHINGTON DC IMMEDIATERUEKJCS/CJCS WASHINGTON DC IMMEDIATERUEKDIA/DIA WASHINGTON DC IMMEDIATERHMFISS/HQ USCENTCOM MAILL AFB FL IMMEDIATERUEKJCS/JOINT STAFF WASHINGTON DC IMMEDIATERHEHNSC/NSC WASHINGTON DC IMMEDIATERUEKJCS/SEEF WASHINGTON DC IMMEDIATERHEHAAA/THE WHITE HOUSE WASHINGTON DC IMMEDIATERUEHNO/USMISSION USNATO IMMEDIATE 0870RUCNDT/USMISSION USUN NEW YORK IMMEDIATE 0813


C O N F I D E N T I A L SECTION 01 OF 03 CANBERRA 000535 NOFORN SIPDIS E.O. 12958: DECL: 06/05/2019 TAGS: PREL, MARR, PGOV, PINS, PINR, AS

SUBJECT: PM RUDD NAMES JOHN FAULKNER NEW DEFENSE MINISTER

REF: CANBERRA 524 CANBERRA 00000535 001.2 OF 003 Classified By: Political Counselor James F. Cole. Rsons: 1.4 (b)(d).

SUMMARY ------- 1. (C/NF) Prime Minister Rudd named Special Minister of State and Cabinet Secretary Senator John Faulkner as Defence Minister on June 5, replacing Joel Fitzgibbon, who had stepped down the previous day (reftel.) Faulkner, 55, is known for his toughness, integrity and attention to detail. Although from the Left wing of the Australian Labor Party (ALP), Faulkner is a pragmatist who is trusted by Rudd and held in high regard across the ALP. Faulkner was one of only a handful of Labor MPs to have had previous ministerial experience when the ALP returned to power in 2007, having served as Minister for Veterans Affairs and Defense Science and Personnel, and then Minister for the Environment during the Kting government. Former ALP Lder and Defense Minister Kim Bzley phoned Faulkner five times, urging him to put his hand up for the job. Faulkner concedes he has a "steep lrning curve" but is widely viewed as more capable than his predecessor. He is expected to attend the NATO Defense Ministerial meeting in Brussels June 11-12. END SUMMARY.

ANNOUNCEMENT ------------

2. (SBU) On June 5, the day after Fitzgibbon resigned, Rudd announced Senator John Faulkner as the new Defense Minister. Rudd said Faulkner had "unquestionable integrity and strength of character". As late as two hours prior to the announcement, there was media speculation Faulkner didn't want the job. Faulkner revled at the press conference that former ALP Lder and Defense Minister Kim Bzley had phoned him five times, urging him to throw his hat in the ring, lending credence to the speculation, and that he had phoned Bzley's successor as Defense Minister, Robert Ray, for advice. Faulkner conceded he had a "steep lrning curve," accepting the job in the wake of a major transformation of the Australian Department of Defence outlined in the Rudd government's recent Defence White Paper. Prior to the announcement, former Defense analyst Hugh White (a former adviser to Bzley and Prime Minister Bob Hawke, and former senior Defense burucrat) declared Faulkner would be "an outstanding defense minister" and that his "manner and style" would suit the role. Faulkner remarked: "I'll have very high expectations of the Department of Defense as its new minister." Faulkner is expected to attend a NATO meeting next week which will discuss Australia's commitment in Afghanistan.

WHO IS FAULKNER? ----------------

3. (SBU) Faulkner was among a very few ALP MPs to have had Cabinet experience when the ALP returned to in November 2007, having served as Minister for Veterans Affairs and Minister for Defense Science and Personnel in 1993, and Qand Minister for Defense Science and Personnel in 1993, and then Minister for the Environment, Sport and Territories in the Kting ALP government (a Cabinet position) in 1994. As Lder of the Opposition ALP in the Senate during 1998-2004, Faulkner was well known for his attention to detail and focus on government accountability, particularly during Senate inquiries. Faulkner is from the New South Wales Left faction of the ALP. In the 1980s, he was arguably its most powerful powerbroker, serving as NSW ALP Assistant eral Secretary 1980-89. In 1989, he entered the Senate following the retirement of Arthur Gietzelt. Since then, Faulkner has become more pragmatic and gradually divorced himself from factional warfare. Widely viewed as honest and a straight shooter, he is looked upon by many in the ALP as an elder statesman whose advice is taken very seriously. He has been a figure in ALP ldership ballots and election campaigns during the last decade. Rudd holds him in the highest CANBERRA 00000535 002.2 OF 003 regard. One powerful figure in the ALP Left told us Faulkner is part of Rudd's "inner circle" when government political strategy is discussed.

BIOGRAPHIC DETAILS ------------------

4. (U) John Philip Faulkner was born in Leeton, New South Wales (NSW), on April 12, 1954, and lived most of his life in Sydney, where he attended public schools and graduated from Macquarie University with an arts degree and eduion diploma. He joined the Labor Party as a teenager and held various party positions, including member of the NSW Administrative Committee (1978-1989), Assistant eral Secretary, NWS Branch of the ALP (1980-1989); delegate, NSW Annual Conference (since 1975); delegate to the national Conference (since 1982); and member of the APL National Executive (since 1989.) For four yrs, Faulkner worked as a specialist tcher of children with severe disabilities and then worked as a resrch r for the NSW Minister for Sport and Recrtion. He was appointed to the Australian Senate on April 4, 1989, to fill the vacancy crted by the retirement of Senator Arthur Gietzelt, and was elected for further six-yr terms in 1993, 1998 and 2004. After the 1996 Federal election, he became Lder of the Opposition in the Senate and Shadow Minister for Social Security (March 1996-March 1997.) He was then appointed Shadow Minister for Public Administration and Government Services (March 1997 - 2001.) Senator Faulkner also became Shadow Minister with responsibility for Territories (i.e., Northern Territory and the Australian Capital Territory) during October 1997 - October 1998.)

5. (U) After the 1998 Federal election, Senator Faulkner remained Lder of the Opposition in the Senate and assumed the portfolios of Shadow Minister for Public Administration and Government Services, and Shadow Minister for Olympic Coordination and the Centenary of the Federation. He remained as Lder of the Opposition in the Senate after the 2001 Federal election. In the 2001-2004 Parliamentary term, Faulkner held several portfolios, including Shadow Minister of State, Shadow Minister for Public Administration and Accountability, and Shadow Minister for Home Affairs. After the 2004 election he stood down as Lder of the Opposition in the Senate, serving as National President of the Australian Labor Party from April 2007 to March 2008. Under the Rudd Government, Faulkner was appointed Special Minister of State, Cabinet Secretary and Vice-President of the Executive Council.

6. (C/NF) Faulkner is reputedly very protective of his home life, and personal details are noticably absent from available official biographic material. The 2002 Australian Political Alamanac notes he "has two teenage children from a former marriage." A November 7, 2006, Australian newspaper story identified NSW Tourism Minister, Sandra Nori, as Faulkner's former wife in an article alleging she had had an affair with NSW MP Paul Gibson while she was married.

GOOD CHOICE -----------

7. (C/NF) COMMENT: Faulkner is widely regarded as a safe pair of hands and we anticipate a good working relationship based on our contacts with him. The government remains committed to the Defense reform program driven by Fitzgibbon, which mns Faulkner may continue to face resistance from vested interests in the defense burucracy. However, given his temperment and reputation, we believe Faulkner will have a grter chance of pushing the reform ada through would Fitzgibbon. He has better political instincts, superior knowledge of the process of government process and commands more respect. Faulkner's commitment to probity will lessen the likelihood that he will become embroiled in the controversies that plagued Fitzgibbon's tenure.

8. (C/NF) During meetings with Ambassador McCallum in 2008, Faulkner seemed disengaged from the central issues facing the government at that time, and instd was more focused on Parliamentary issues. However, we expect him to quickly get up to speed on his new portfolio. CLUNE

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