C-NE6-00584 SINGAPORE HOSTS SAUDI CROWN PRINCE

C O N F I D E N T I A L SECTION 01 OF 02 SINGAPORE 001467

SIPDIS

SIPDIS

E.O. 12958: DECL: 05/04/2021
TAGS: ETRD KISL PREL SA SN
SUBJECT: C-NE6-00584 SINGAPORE HOSTS SAUDI CROWN PRINCE

REF: STATE 58668

Classified By: E/P Counselor Laurent D. Charbonnet. Reasons 1.4(b)(d)


1. (U) Summary: As part of its effort to promote business
ties with the Middle East, Singapore hosted Saudi Crown
Prince Sultan Bin Abdul Aziz Al-Saud and a high-level Saudi
delegation April 10-15, 2006. During the six-day visit, the
two nations signed an investment guarantee agreement and a
memorandum of understanding (MOU) to promote trade and
investment, and Saudi Arabia agreed to support Singapore's
Free Trade Agreement (FTA) with the Gulf Cooperation Council
(GCC). The prince met with Singapore's senior leadership and
delivered a public lecture in which he condemned terrorism as
un-Islamic. He also donated more than USD 1.5 million to
local religious organizations. End summary.

Deeper Singapore-Saudi Ties
--------------


2. (U) His Royal Highness Crown Prince Sultan Bin Abdul Aziz
Al-Saud, accompanied by a high-level delegation, visited
Singapore April 10 - 15, 2006. During his six-day visit, the
Crown Prince met with Singapore's senior leadership: Prime
Minister Lee Hsien Loong, President S. R. Nathan, Minister
Mentor Lee Kuan Yew, Senior Minister Goh Chok Tong, Deputy
Prime Minister S. Jayakumar, and Minister for Defence Teo
Chee Hean. Singapore and Saudi Arabia signed two economic
accords: an investment guarantee agreement and a memorandum
of understanding (MOU) to promote trade and investment. The
two agreements signal Singapore's desire to expand business
links with Saudi Arabia, Singapore's largest trading partner
in the Middle East and its largest foreign investor from the
Middle East. The investment guarantee agreement sets out
investment norms and protection, including guarantees for
nondiscriminatory treatment and free flow of capital. The
trade MOU merely provides for greater consultation and
cooperation between the governments. Saudi Arabia also
agreed to support Singapore's effort to conclude a Free Trade
Agreement (FTA) with the Gulf Cooperation Council (GCC).

Economic Opportunities
--------------


3. (U) The prince's visit follows a flurry of high-level
visits on both sides, including a trip to Saudi Arabia by
Minister Mentor Lee and five cabinet ministers in March 2006.
Singapore also organized and hosted the first Asia Middle
East Dialogue (AMED) last year. Singapore wants good
political relations with the Middle East to take advantage of
economic opportunities there, Foreign Minister George Yeo
explained to Parliament in March 2006.


4. (U) In the strained relations between the West and Muslim
nations, the Government of Singapore (GOS) sees opportunities
in the Middle East for Singapore companies, especially in the
areas of medical tourism, Islamic finance, info-comms
technology, financial services, construction and real estate
services, and oil and gas supporting infrastructure. Saudi
Embassy DCM Fouad Gassas told us his government wanted to
attract Singaporean investment for industrial park
development and several infrastructure projects. The Saudi
Arabia General Investment Authority recently opened an office
in Singapore.

Saudi Public Diplomacy
--------------


5. (U) The Crown Prince delivered (in Arabic) a lecture in
which he denounced terrorism as a "disease" and "a grave
violation of the teachings and values of Islam." The prince
also donated USD 100,000 of his own money to the
non-governmental Inter-Religious Organization (IRO),which
brings together representatives of 10 religions practiced in
Singapore to promote religous harmony. According to the
Saudi Ambassador to Singapore, the prince made the donation
because he believes that such an inter-faith organization
that strives to eliminate tension between people of different
religions is a "worthy cause."


6. (C) The prince also donated USD 1.5 million to three local
Muslim organizations: the Muslim Missionary Society of
Singapore (Jamiyah),the Muhammadiyah Association of
Singapore, and Madrasah Al-Irsyad (one of Singapore's six
full-time Islamic religious schools). The donation to
Muhammadiyah, a conservative organization with links to Saudi
Arabia, makes sense ideologically, according to an officer of
Singapore's Syariah Court. Madrasah Al-Irsyad, the school
intended to train Singapore's future Muslim religous leaders,

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is raising funds for a new building with modern facilities.
Although Singapore's senior leaders have repeatedly expressed
concern about conservative Arab influence on Southeast Asia's
Muslims, an MFA official who co-directs the GOS interagency
"Political Islam Study Group" (protect) defended Singapore's
allowing the donations, saying "I don't see why not,
especially if the transfer is done overtly."

Protecting Harmony
--------------


7. (SBU) Comment: Singapore seeks to profit from economic
opportunities in Saudi Arabia, but senior leaders remain wary
of the kingdom's influence on its Muslim minority. Singapore
allowed the prince's donations, and permits the Saudi
government to offer scholarships directly to its Muslim
students. It draws the line, however, at external threats to
racial and religious harmony -- banning "extremist" foreign
preachers but also imposing "media blackouts" on foreign
critics of Wahabiism. As Minister in Charge of Muslim
Affairs Dr. Yaacob Ibrahim told us, "we don't allow
foreigners to come in and create trouble." Singapore has no
problem accepting Saudi money for a new madrasah building,
knowing it will retain strict control of the content taught
inside the building. End comment.
HERBOLD