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### Viewing cable 09HAMILTON120, BERMUDA: PREMIER GIVES UNITY SPEECH, TOUCHES ON RELATIONS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09HAMILTON120 | 2009-10-16 20:00 | 2011-04-28 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Consulate Hamilton

`

    VZCZCXRO2363
    RR RUEHHT
    DE RUEHHT #0120/01 2892000
    ZNR UUUUU ZZH
    R 162000Z OCT 09
    FM AMCONSUL HAMILTON
    TO RUEHC/SECSTATE WASHDC 3901
    INFO RUEHLO/AMEMBASSY LONDON 0891
    RHMFIUU/DEPT OF JUSTICE WASHINGTON DC
    RHEHAAA/NSC WASHINGTON DC
    RUEKJCS/SECDEF WASHDC
    RUEHHT/AMCONSUL HAMILTON 2078

` `

    UNCLAS SECTION 01 OF 02 HAMILTON 000120

    SIPDIS

    SENSITIVE

    EUR/WE (JOHN MARBURG AND NIMA ABBASZADEH);
    EUR/PPD (LEE MCMANIS AND ALISANDE PIPKIN);
    CA (BRENDA GREWE)

    E.O. 12958: N/A
    TAGS: PGOV ECON PREL CVIS BD
    SUBJECT: BERMUDA: PREMIER GIVES UNITY SPEECH, TOUCHES ON RELATIONS
    WITH THE U.S.

    Summary

    ------------

    ¶1.      (U) In a wide-ranging televised speech to the people of
    Bermuda on October 15 - three weeks prior to the November 6
    Throne Speech - Premier Ewart Brown used Bermuda's 400th
    birthday to call for unity.  Brown defended his government's
    performance during the global economic recession.  He also
    discussed the progress made on addressing Bermudian's
    social/economic needs.  Brown addressed several issues relating
    to the United States.  He promised to continue lobbying against
    possible harmful tax changes that would affect international
    businesses in Bermuda; proposed two initiatives with the U.S. -
    a partnership with the US Coast Guard and renegotiation of
    environmental remediation of a former US Navy base; and
    undertook to work with the State Department to get relief on
    visa ineligibilities, the so-called "stop list."  He also made a
    case for Bermuda taking control from the UK over Bermuda's
    Police Service in order to tackle the growing crime rate.  The
    opposition welcomed the premier's call for unity while
    criticizing him for his divisive politics.  End summary.

    Bermuda Holding Its Own During Economic Recession ~

    --------------------------------------------- --------------
    -------------

    ¶2.      (U) Premier Brown addressed how the global recession had
    impacted Bermuda's two pillars - tourism and international
    business.  In the midst of public criticism that the government
    had not followed through on its plans to bring new hotels to the
    island, Brown attempted to reassure the public that developers
    were still committed and that Bermuda would rebound in the
    tourism sector.  (Note: the premier is also the Minister for
    Tourism.)  He hailed Bermuda's position on the OECD's "white
    list" jurisdiction in compliance with internationally agreed
    upon tax standards."

    ~ But Concerned about U.S. Tax Laws

    --------------------------------------------- ----

    ¶3.      (U) Brown complained about international businesses
    moving away from Bermuda because "they can potentially be
    negatively impacted by the whims of a U.S. Congress."  He
    continued to discuss the "perceived threat of unfavourable U.S.
    taxation."   The Premier outlined his government's lobbying
    efforts in Washington and promised to "~continue our unrelenting
    efforts against enactment of legislation that would be harmful
    to our economy~.we will step up our efforts even more to
    convince the United States of our value and of the negative
    consequences the U.S. itself will incur with unfavourable tax
    treatment of insurance and other companies located in places
    like Bermuda."

    Partnering with the U.S. Coast Guard

    --------------------------------------------- -

    ¶4.      (U) Premier Brown stated that the Government was working
    on an initiative to partner with a US Coast Guard program,
    "~where as a partner country we would be provided with
    high-speed interceptor boats, special communication equipment
    and, importantly, training of Bermudian public safety officers
    in drug interdiction and maritime law enforcement."   (Note:
    While the Government of Bermuda raised this after the Navy base
    closed, this is the first we have heard of it  in years.  The
    Coast Guard already assists in search and rescue operations in

    HAMILTON 00000120  002 OF 002

    the waters between the U.S. and Bermuda.)

    Cleaning Up Former US Naval Air Station

    --------------------------------------------- -------

    ¶5.      (U) The Premier told the public that the government is
    "redoubling our efforts to persuade the U.S. government to
    reopen and renegotiate the clean-up of Morgan's Point."  He
    added that he would keep the public appraised of the
    government's progress.  (Note:  This issue hit the press on
    September 26 when the Premier said he had raised this with
    Attorney General Holder.)

    Relaxing the "Stop List"

    -----------------------------

    ¶6.      (U) Premier Brown indicated that the Government of
    Bermuda is "~committed to working with the US State Department
    to get relief from what Bermudians call the `stop list.'  We
    believe that it is unfair and unjust for someone who committed a
    minor criminal offence 20 years ago to be prevented from
    travelling to the US, or to have to undergo the humiliating
    experience of being stopped and detained.  We understand clearly
    that these laws affect people all over the world - they were not
    just written for Bermuda.  But your government will be
    aggressive in seeking innovative solutions to prevent young
    people from ever getting on the so-called `stop-list.' We shall
    also work on behalf of older people who have long-since paid
    their debt to society, and deserve to be able to freely travel."

    Comment

    ------------

    ¶7.      (SBU) Bermudians had speculated that the Premier might
    call for snap elections during the speech, so his call for unity
    and no mention of snap elections was an unstated promise and
    assurance of political stability.  Commentators also interpret
    his speech to mean that he will depart office as planned in
    October 2010.  Post will follow up with government to determine
    what type of partnership with the Coast Guard Bermuda would like
    to pursue.
    SHELTON

`