Identifier
Created
Classification
Origin
05SINGAPORE3618
2005-12-30 02:25:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Singapore
Cable title:  

AMBASSADOR'S CALL ON PM LEE HSIEN LOONG

Tags:  PGOV PREL ECON ETRD EFIN PTER SN 
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UNCLAS SECTION 01 OF 02 SINGAPORE 003618 

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PGOV PREL ECON ETRD EFIN PTER SN
SUBJECT: AMBASSADOR'S CALL ON PM LEE HSIEN LOONG


UNCLAS SECTION 01 OF 02 SINGAPORE 003618

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PGOV PREL ECON ETRD EFIN PTER SN
SUBJECT: AMBASSADOR'S CALL ON PM LEE HSIEN LOONG



1. (SBU) Summary. During the Ambassador's introductory
call, the Ambassador and Prime Minister Lee Hsien Loong
concurred that U.S.-Singapore relations were very strong and
agreed to work together to help the relationship blossom
further. The Prime Minister expressed his commitment to
resolving outstanding issues such as the beef ban and his
hope that the two countries would conclude a Double Taxation
Agreement and Mutual Legal Assistance Treaty. The Ambassador
emphasized the importance of working together on issues such
as non-proliferation and anti-money
laundering/counter-terrorist financing, particularly as
Singapore moved toward licensing casinos. The Ambassador
noted the importance to the United States of Singapore's
continuing support in the Middle East, particularly as we
enter a new phase of drawing down U.S. troops in Iraq. The
Prime Minister responded that terrorism was a global issue
and that Singapore had to do its part. He urged the United
States to remain engaged in Asia. End summary.


2. (U) On December 29, immediately after presenting her
credentials to President S. R. Nathan, Ambassador Herbold
paid her introductory call upon Prime Minister Lee Hsien
Loong. Mr. Herbold and the DCM accompanied the Ambassador;
the PM's Principal Private Secretary, Lawrence Wong, and
Ministry of Foreign Affairs officer Aaron Maniam accompanied
the PM.

Bilateral Relations
--------------


3. (SBU) After welcoming Ambassador Herbold and Mr. Herbold
to Singapore, the Prime Minister stated that the relations
between Singapore and the United States were excellent, as
the conclusion of the Strategic Framework Agreement (SFA) in
July and the conclusion of the Free Trade Agreement (FTA)
almost two years ago testified. The United States and
Singapore see eye-to-eye on many issues, such as the war on
terrorism and the WTO trade negotiations, and should continue
to cooperate closely in these areas. He expressed his desire
that the relationship blossom further.


4. (SBU) The Ambassador agreed that relations are very
strong. We were doing particularly well in the trade and

security areas, she continued. She hoped that remaining
issues such as Singapore's ban on the import of U.S. beef
could be resolved and that we could make progress in new
areas such as a Mutual Legal Assistance Treaty (MLAT). PM
Lee noted that Japan had opened its market recently and
remarked, "we cannot be more unreasonable than Japan. We
will look at the issues constructively." On an MLAT, the PM
expressed his understanding that we had made some progress in
this area. He expressed confidence that the United States
and Singapore would conclude a Double Taxation Agreement and
that reaching an MLAT would be part of the process of
improving our cooperation.


5. (SBU) In response to the Ambassador's inquiry about
financial sector reform, the PM stated that Singapore's
financial sector is among the most open in Asia. The
reforms, begun in 1997, had resulted in rationalization and
consolidation of the sector. PM Lee, who is also Minister
for Finance, commented that the FTA had brought U.S. banks
additional privileges.

International Cooperation
--------------


6. (SBU) The Ambassador expressed the United States' deep
appreciation for Singapore's contributions to the Coalition
in Iraq and support in Afghanistan. Looking forward, it
would be very important to continue to have Singapore at our
side. The Prime Minister enumerated Singapore's
contributions of KC-135s, LSTs, and police trainer support.
"We believe we ought to do our part. It is a global problem
- we cannot solve it just in Singapore." The Ambassador
noted that we have excellent cooperation here as well, and
pointed to the early-2006 inauguration of the Megaports pilot
project as an excellent example.

U.S. Engagement
--------------


7. (SBU) The PM took the opportunity to encourage the United
States to remain engaged in Asia. The United States needs to
be part of what is going on in the region. People and
investment flows bring influence. China is very dexterous at
deploying "soft power," he observed. ASEAN has dozens of
forums each year, and China shows up at 25-27 of them. Each
time, it presents a little "gift" such as a training offer or
an exchange program -- not extensive, but showing that it has
thought about what the recipient needs. While China is
winning friends, the United States needs to keep its links
strong. PM Lee commented that there is a reservoir of good
will right now towards the United States. Fifteen years ago,
when Singapore and the United States signed the MOU allowing
U.S. forces to lease facilities in Singapore, others in the
region kept quiet or complained. It is different now, argued
the PM. When we signed the SFA, they knew that the United
States was a friend who could be useful. PM Lee urged the
United States to take advantage of this.


8. (SBU) The PM expressed his pleasure that U.S. relations
with Indonesia were improving. It was excellent that the USG
had finally restored ties with the Indonesian Armed Forces.
The United States has a friend in President Yudhoyono.
Similarly, we have a friend in Malaysia's new leader, PM Lee
added.

Casinos
--------------


9. (SBU) Noting her prior service on the Washington State
Gambling Commission, the Ambassador engaged the PM in a
discussion of the issue of problem gamblers. The PM noted
that, had there been a referendum on the casinos issue, he
thought 60 to 70 percent of voters would have approved.
While the most conservative Christians would have opposed,
most Muslims (while officially opposed) did not feel that
strongly. In terms of the market for Singapore's future
casinos, the PM explained measures to be taken to minimize
problem gambling by Singaporeans. The main foreign market
would be China.


10. (SBU) The Ambassador encouraged further cooperation
between our two countries on the anti-money
laundering/countering the financing of terrorism (AML/CFT)
issue. Reporting on his own study tour to Las Vegas in July,
the PM said Singapore had studied how the United States had
cleaned up its gaming sector. Singapore was committed to a
strong AML/CFT regime, but he commented, "we will have to
learn as we go as we do not have the expertise."

Moving Relations to the Next Stage
--------------


11. (SBU) In closing, the Ambassador and PM Lee pledged to
work together to enhance our strong trade and security ties
and to continue moving forward on law enforcement and
non-proliferation cooperation.
HERBOLD