Identifier
Created
Classification
Origin
06KUALALUMPUR2287
2006-12-15 00:19:00
SECRET
Embassy Kuala Lumpur
Cable title:  

DAS JOHN EXPLORES STRONGER TIES WITH MALAYSIA,

Tags:  PREL PGOV PINS ECON KISL ASEAN MY 
pdf how-to read a cable
VZCZCXRO5819
PP RUEHCHI RUEHDT RUEHHM
DE RUEHKL #2287/01 3490019
ZNY SSSSS ZZH
P 150019Z DEC 06
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 8136
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2251
RUEHBY/AMEMBASSY CANBERRA PRIORITY 2246
RUEHKO/AMEMBASSY TOKYO PRIORITY 2307
RUEKJCS/SECDEF WASHDC PRIORITY
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY
S E C R E T SECTION 01 OF 04 KUALA LUMPUR 002287 

SIPDIS

SIPDIS

DEPT FOR EAP

E.O. 12958: DECL: 12/15/2026
TAGS: PREL PGOV PINS ECON KISL ASEAN MY
SUBJECT: DAS JOHN EXPLORES STRONGER TIES WITH MALAYSIA,
CAUTIONS ON RHETORIC

REF: A. KUALA LUMPUR 2235 - MALAYSIAN OPTIMISTIC ON MILF
TALKS

B. KUALA LUMPUR 2159 - MFA ON MINDANAO

Classified By: Ambassador Christopher J. LaFleur, reasons 1.4 (b and d)
.

Summary
-------

S E C R E T SECTION 01 OF 04 KUALA LUMPUR 002287

SIPDIS

SIPDIS

DEPT FOR EAP

E.O. 12958: DECL: 12/15/2026
TAGS: PREL PGOV PINS ECON KISL ASEAN MY
SUBJECT: DAS JOHN EXPLORES STRONGER TIES WITH MALAYSIA,
CAUTIONS ON RHETORIC

REF: A. KUALA LUMPUR 2235 - MALAYSIAN OPTIMISTIC ON MILF
TALKS

B. KUALA LUMPUR 2159 - MFA ON MINDANAO

Classified By: Ambassador Christopher J. LaFleur, reasons 1.4 (b and d)
.

Summary
--------------


1. (C) DAS John encouraged stronger ties with Malaysia
during his December 6 meetings with Foreign Ministry
officials Ambassador Ghazzali Khalid and the new Americas
division chief Ramlan Ibrahim, with both sides concluding
that good relations between President Bush and Prime Minister
Abdullah provided a solid basis for expanded cooperation.
DAS John noted that Malaysia's NAM/OIC driven rhetoric,
however, was at variance with the positive tone set by the
leaders and he urged the GOM to take into account the impact
on U.S. relations. Both sides agreed on the importance of
continuing the Senior Strategic Dialogue and other official
exchanges. DAS John urged a quickened pace to the FTA talks,
while Ghazzali focused on the need for Malaysian officials to
follow through on the specifics of technical cooperation
initiatives and raised the importance of educational links.
DAS John shared U.S. views on Burma, East Timor and Mindanao.
Separate meetings with senior Malaysian editors, political
analysts and ethnic Chinese and Malay politicians highlighted
the central importance of race and religion in domestic
politics, while pointing out the limits of democratic reform
in the post-Mahathir era. DAS John conducted interviews with
Malaysian television and print media, leading to positive
coverage of U.S. relations with Malaysia and ASEAN. End
Summary.

Strong Underpinning for Improved Relations
--------------


2. (C) DAS John, accompanied by DCM and polchief, encouraged
new efforts to strengthen U.S.-Malaysia bilateral ties during
separate meetings on December 6 in the Malaysian Foreign
Ministry with Ambassador-at-Large (and former Ambassador to

the U.S.) Ghazzali Khalid and newly installed Under Secretary
for the Americas Division Ambassador Ramlan Ibrahim.
Washington viewed the relationship as moving in a positive
direction, particularly since Prime Minister Abdullah took
office, John stated. The good relationship between President
Bush and the Prime Minister provided a strong underpinning
for progress on bilateral and international issues. Both
Ghazzali and Ramlan agreed bilateral relations were good,
while recognizing the two countries could achieve more
together. Ramlan stated the U.S. and Malaysia should "cash
in" on the "excellent atmospherics" between the respective
national leaders, and he vowed to pursue this aggressively
within the GOM. Ghazzali said there was a new "enthusiasm"
for improving relations on the Malaysian side, matching the
enthusiasm that was "always" evident on the U.S. side.
(Comment: This is possibly a reference to Ramlan taking up
the Americas Division, rather than a GOM policy change. End
Comment.) Ghazzali saw the main challenge as follow up on
issues within the GOM, noting the Foreign Ministry was
"spread too thin" with OIC, NAM and ASEAN responsibilities.
Ghazzali later added that, in the change in leadership from
Mahathir to Abdullah, Malaysia had not undertaken any
"drastic policy shift," but rather adopted a more diplomatic
approach to U.S. relations.

Malaysian Rhetoric Sends the Wrong Signal
--------------


3. (C) DAS John commented that Malaysia's seeming reliance
on rhetoric drawn from unbalanced Non-Aligned Movement (NAM)
and Organization of the Islamic Council (OIC) positions
seemed at variance with the positive tone set the leaders.
Statements, like Foreign Minister Syed's August reference to
arming Hizbollah and Abdullah's letter on Lebanon as OIC
chairman; gestures such as the warm welcome afforded
presidents from Iran and Venezuela; and votes against U.S.
positions in the UN all attracted negative attention in
Washington. While recognizing domestic political
constraints, John urged Malaysia to understand that its
statements impacted its relations with the U.S. as well.
Ghazzali provided an historical backdrop to Malaysia's active
NAM and OIC positions, which on the issue of Palestine rested

KUALA LUMP 00002287 002 OF 004


on "sincere and genuine" sentiments. The perceived U.S. role
in Palestine, Lebanon and Iraq "cast a shadow on relations"
with the U.S. and "drums up an anti-American refrain" within
the GOM's domestic constituency. Ghazzali noted that he
could not envision "hostile language" coming out of
Abdullah's planned visit to Venezuela. Ramlan vowed to use
his position to introduce "balance" and "rationality" into
the Ministry's decisions impacting the U.S. and "temper the
tone" of Malaysian rhetoric. He noted, however, that the GOM
could not shift its positions dramatically without losing
credibility. Ramlan remarked on the importance of both sides
working hard to influence Malaysian public opinion.

Official Dialogue
--------------


4. (C) DAS John encouraged increased official exchanges and
suggested the two countries examine a date for the next
Senior Strategic Dialogue, possibly in April or May 2007 in
Washington. In addition, the coming year, which marks both
the 30th anniversary of U.S.-ASEAN relations and Malaysia's
50th independence anniversary, might present opportunities
for other senior official exchanges. Noting that Ramlan had
yet to see Washington, John urged him to visit the U.S.
capital as soon as possible. Both Ghazzali and Ramlan
welcomed more contacts and officials visits, particularly
those that would fit into the 50th anniversary celebrations.
Ramlan endorsed the Strategic Dialogue, but implied that he
needed more time in the job before he committed to a time
frame.

FTA, Technical Cooperation, and Education
--------------


5. (C) DAS John discussed the Free Trade Agreement (FTA)
negotiations, commenting that the pace of the talks was more
of a concern than any substantive issue. Ghazzali described
his continuous ombudsman-like role in the FTA process, while
Ramlan pledged to be supportive if possible. In other
bilateral matters, Ghazzali raised the need to achieve
concrete results in technical cooperation, including the
proposed science and technology agreement, avian influenza,
and customs service dialogue. Ghazzali noted with concern a
drop in Malaysian students in the U.S. and a perceived
decline in bonds with American universities. The two
countries should explore ways to attract more Malaysian
students to America for post-graduate studies. Ghazzali
expressed his appreciation for the State Department's
international visitors program. DAS John noted the
U.S.-ASEAN Enhanced Partnership would begin to bring a modest
number of ASEAN visitors to the U.S. next year.

Regional Issues
--------------


6. (C) Turning to regional issues, DAS John expressed
appreciation for Malaysia's brokering role in the Mindanao
peace process (ref A). The U.S. and Malaysia were working in
concert to bring stability to East Timor, where the overall
direction and increasing factional nature of politics were of
mounting concern. The U.S. welcomed Malaysia's lead role
within ASEAN on the Burma issue. The U.S. was working toward
a UN Security Council resolution on Burma in December that
was not punitive, but included meaningful steps and
demonstrated international concern. John also raised
prospects for U.S.-Japan-ASEAN trilateral cooperation in
areas such as the Heart of Borneo project or in Mindanao.
Ghazzali recalled Malaysia's stated interest in offering help
on Iraq, possibly through its OIC chairmanship, and he
questioned whether the U.S. would take up observer status in
the OIC.

Internal Politics
--------------


7. (C) DAS John discussed the internal political scene with
senior Malaysian editors, political analysts and with ethnic
Chinese and Malay politicians during his visit. Three senior
Malaysian editors representing major English and Malay
language publications concurred that the Malaysian press has
lost its credibility with local readers due to government
control and de facto censorship over political issues. One
editor admitted that he steered his publication away for
political matters as much as possible. Interesting political

KUALA LUMP 00002287 003 OF 004


reporting and commentary had shifted to the internet media
sites and blogs, which sometimes present rumors rather than
factual journalism. Mahathir, and his opposition to
Abdullah's leadership, appeared down but not completely out,
according to most Malaysian interlocutors. The editors
raised questions regarding Malaysia's long-term
competitiveness in an evolving Asia.


8. (C) Senior party officials from the Malaysia Chinese
Association (MCA) (protect) explained to DAS John their
ongoing efforts to calm ethnic Chinese constituents following
chauvinistic Malay rhetoric at the UMNO general assembly in
mid-November. MCA leaders described their alliance with UMNO
as "the lesser of evils." MCA's damage control exercise
sought to explain to voters the importance of MCA's role in
the UMNO-led National Front coalition, a role that focused on
obtaining practical concessions rather than attracting public
credit for MCA influence. MCA explained that education
remained an overwhelming priority for ethnic Chinese voters
and accordingly the struggle for government funding of
Chinese schools attracted great attention.


9. (C) Ruling UMNO party parliamentarian Shahrir Samad
discussed Malaysia's efforts to remain economically
competitive, highlighting potential in biotechnology,
agriculture, maritime services, medical services and tourism.
He questioned the benefits from foreign direct investment in
labor intensive industries that employed mostly foreigners.
Shahrir noted some "hysteria" surrounding the U.S.-Malaysia
Free Trade Agreement talks, although UMNO youth activists
were more concerned by issues such as Singaporean and ethnic
Chinese ownership in Malaysia's economy. Shahrir stated that
"UMNO's platform is nationalism," and cautioned that
observers should differentiate UMNO racial rhetoric from
actions. If Malays do not feel threatened, either on the
basis of race or Islam, they can be quite flexible; UMNO's
constituents need to be reassured their interests are
protected.


10. (C) In a separate meeting, Zaid Ibrahim (protect),a
parliamentarian currently under suspension from UMNO,
criticized Prime Minister Abdullah's lack of progress in
pursuing democratic reforms. He claimed that Abdullah
provided each UMNO division with $3 million in GOM contracts
in order to maintain their loyalty in the just concluded
general assembly. Zaid expressed pessimism that Malaysian
politics would change for the better, or away from race-based
parties, absent changes in UMNO, which showed no prospects
for reform. Zaid concurred with comments from many others
that former Deputy Prime Minister Anwar Ibrahim had little
electoral prospect; however, the common wisdom that the Prime
Minister Abdullah would call the next general election before
Anwar becomes legally eligible to run (i.e., April 2008)
indicated Anwar remained a factor.

Media Coverage
--------------


11. (U) DAS John conducted a lengthy on-camera interview
with the RTM government-owned television network and a second
interview with the Business Times, a leading English language
daily. Both interviews highlighted to the Malaysian public
the positive aspects of U.S.-Malaysian relations, the
benefits of a future FTA, U.S. engagement with ASEAN, and our
efforts to resolve the North Korea nuclear issue. DAS John's
RTM interview appeared on the RTM nightly news which has an
average audience of some 2.4 million viewers.

Comment
--------------


12. (C) DAS John's discussions with the Foreign Ministry's
Ghazzali and Ramlan gave a strong boost to our bilateral
dialogue, and highlighted both the possibilities and
constraints in pursuing our priorities with Malaysia. The
frank talk of Malaysia's words and diplomatic activities on
the world stage, often in opposition to U.S. goals, helped us
remind the Foreign Ministry that Malaysia's decisions also
should take into account the U.S. reaction. The willingness
and openness of both officials to discuss new ways to
strengthen ties contrast, unfortunately, with attitudes that
predominate elsewhere in the Foreign Ministry and in some
other GOM quarters. Discussions on Malaysia's internal scene
reinforced the central importance of race and religion in

KUALA LUMP 00002287 004 OF 004


party politics, while pointing out the limits of democratic
reform in the post-Mahathir era.
LAFLEUR