Identifier
Created
Classification
Origin
06KUALALUMPUR1910
2006-10-12 09:44:00
CONFIDENTIAL
Embassy Kuala Lumpur
Cable title:  

MITI CONFIRMS MALAYSIA IS READY FOR FTA ROUND 3

Tags:  ETRD EFIN EAGR EINV MY 
pdf how-to read a cable
VZCZCXRO6822
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #1910 2850944
ZNY CCCCC ZZH
R 120944Z OCT 06
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC 7742
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASH DC
RUEHC/USDA FAS WASHDC
C O N F I D E N T I A L KUALA LUMPUR 001910 

SIPDIS

SIPDIS

STATE PASS USTR FOR B. WEISEL AND J. JENSEN
COMMERCE FOR 4430/MAC/EAP/J. BAKER
TREASURY FOR OASIA L. MOGHTADER


E.O. 12958: DECL: 10/12/2015
TAGS: ETRD EFIN EAGR EINV MY
SUBJECT: MITI CONFIRMS MALAYSIA IS READY FOR FTA ROUND 3

Classified By: Economic Counselor Colin Helmer for reasons 1.4 (B &D).

C O N F I D E N T I A L KUALA LUMPUR 001910

SIPDIS

SIPDIS

STATE PASS USTR FOR B. WEISEL AND J. JENSEN
COMMERCE FOR 4430/MAC/EAP/J. BAKER
TREASURY FOR OASIA L. MOGHTADER


E.O. 12958: DECL: 10/12/2015
TAGS: ETRD EFIN EAGR EINV MY
SUBJECT: MITI CONFIRMS MALAYSIA IS READY FOR FTA ROUND 3

Classified By: Economic Counselor Colin Helmer for reasons 1.4 (B &D).


1. (SBU) Economic officers met October 12 with Jayasiri,
Senior Director for Asia-Pacific Economic Affairs at the
Ministry of International Trade and Industry (MITI),who
confirmed the Malaysian government's readiness to host Round
3 of our FTA negotiations the week of October 30. He
indicated that Malaysian negotiators from various ministries
were developing responses to the positions the U.S. advanced
in the first two rounds. They also have been meeting
regularly in inter-ministerial meetings that cover the entire
range of issues. The next inter-ministerial meeting will be
held October 19. Jayasiri said that Malaysian negotiators
would send written responses to their U.S. counterparts
following that meeting. Some of these might take the form of
bracketed text. He said the Malaysian team is "fully mindful
that if we cannot give you counterproposals, then there is no
reason for you to come" to Kuala Lumpur for negotiations.


2. (C) Econoffs asked about the status of the Cabinet paper,
which Malaysian officials previously had indicated was
necessary before they could engage in further negotiations.
Jayasiri responded that MITI Minister Rafidah had decided
there was no need to go back to Cabinet. The mandate the
Cabinet gave in December 2005 for the launch of the
negotiations remains valid. Jayasiri said Rafidah had
briefed Prime Minister Abdullah on the "issues and state of
play" and that was deemed sufficient. He also observed that
Malaysian negotiators are clearing their positions either
with their Ministers or their designees, and that this
process obviated the need to consult Ministers as a group.


3. (C) Econoffs probed on how deeply MITI's new Secretary
General Abdul Rahman Mamat was involved in the
inter-ministerial process. Jayasiri responded vaguely, but
indicated that Attorney General Abdul Gani Patail is deeply
involved. He indicated that the Attorney General's Chambers
are reviewing every paper that will be provided to the U.S.
team. He also said MITI Deputy Secretary General Ooi Suay
Chuan remains actively engaged in the process, even though
his portfolio has shifted from trade to industry.


4. (C) Comment: We see the turnabout on the Cabinet paper as
a move by Rafidah to maintain sole control of the FTA
process. In fact, during her meeting with USTR Schwab in
August, she said there was no need for another Cabinet
review. We discounted this remark at the time in light of
detailed explanations from senior MITI officials about the
necessity of a fresh political mandate, but we should not
have underestimated Malaysia's longest-serving Minister. We
accept MITI's judgment that the inter-ministerial process
will enable the Malaysian team to engage substantively in the
coming round.
SHEAR