SENIOR MINISTER GOH ON REGIONAL TRENDS AND OUR

C O N F I D E N T I A L SECTION 01 OF 02 SINGAPORE 000085

SIPDIS

E.O. 12958: DECL: 01/07/2016
TAGS: PREL ECON ETTC EFIN SN
SUBJECT: SENIOR MINISTER GOH ON REGIONAL TRENDS AND OUR
BILATERAL RELATIONS


Classified By: Ambassador Patricia L. Herbold for reasons 1.4 (b)


1. (U) Summary. During the Ambassador's introductory call on
Senior Minister (SM) Goh Chok Tong, she and the SM reviewed
the status of the bilateral relationship, explored possible
areas for future collaboration such as a Mutual Legal
Assistance Treaty, and discussed a range of issues including
the war in Iraq, the cross-strait situation, and combating
radical Islam without alienating broader Muslim communities.
End summary.

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


2. (U) The Ambassador, asked for her first impressions of
Singapore, noted the strength of our bilateral relationship
and pointed specifically to our close cooperation on trade
and security affairs. She thanked the SM in particular for
Singapore's continued support for the war in Iraq, as well as
its early and enthusiastic participation in the Proliferation
Security Initiative (PSI). The SM concurred with her
assessment, and highlighted our excellent counter-terrorism
cooperation. He noted that he would like to identify new
areas for us to work on, and asked the Ambassador for
suggestions on how our relationship could be improved. The
Ambassador pointed to a possible Mutual Legal Assistance
Treaty (MLAT) as an issue she hoped to move forward. She
also noted the upcoming second review of the Free Trade
Agreement (FTA) was an opportunity to move ahead on trade and
investment, and the SM agreed.


3. (U) The Ambassador also asked about the government's
plans for addressing money-laundering once casinos open here.
The SM agreed that the casinos would be a potential
money-laundering conduit, and assured the Ambassador that
Singapore has considered this carefully and "intends to be
very strict on money-laundering." He acknowledged that it is
inevitable that the casinos will increase social problems
such as compulsive gambling, but said that, with vigilance
and proper regulation, they could be minimized.

Iraq
--------------


4. (SBU) Ambassador Herbold thanked the Senior Minister for
Singapore's strong support in Iraq, and expressed the hope
that it would continue its support as the United States draws
down its troops and looks to Iraqi forces to take a greater
role in securing the country. SM Goh responded by urging the
United States to stay until Iraq is able to fend for itself
and to be certain to leave at a time of our own choosing, not
under populist pressure from home or abroad. A move to pull
out prematurely and under pressure would only embolden
al-Qaeda or the radical Islamists in the region, he said, and
would be "a disaster for the whole world."

China-Taiwan Dynamics
--------------


5. (C) The Ambassador raised Taiwan President Chen Shui
Bian's New Year's speech. SM Goh noted that Chinese
President Hu and his administration were learning how to
react to these provocations. The Chinese now understand that
strong reactions only stir up Taiwanese nationalism and rally
people around Chen, the SM said. The SM compared the
situation to that of Japanese Prime Minister Koizumi's visits
to the Yasukuni Shrine -- strong objections from Beijing have
only made it politically impossible for Koizumi to back down.
Beijing now understands these dynamics, and has adopted a
more nuanced approach to both Koizumi and Chen, he said. The
SM noted that this "softer" approach is possible in part
because President Bush's clear stance against independence is
comforting to China, and Beijing now has confidence that
Chen's recklessness will be checked.

Islam in Southeast Asia
--------------


6. (C) Turning to Singapore's relations with Malaysia, SM
Goh noted that some outstanding issues remain "minor."
Singapore's main worry, the SM said, was the trend toward
more religiously conservative societies in the region. This
was most advanced in Malaysia, where Malays who a few decades
ago were quite secular were now increasingly influenced by
Middle Eastern Islamic thought and becoming increasingly
devout. The SM noted that in the past few years the
political debate in Malaysia has moved from "secularism and
modernization versus Islam" under Mahathir to the
opposition's form of Islam versus the Prime Minister's form
of Islam under Abdullah Badawi. The Malaysians are now
working out what role Islam will play in the country's
political life, he said. SM noted the same trend toward
religious conservatism in Indonesia.


7. (C) The SM stressed that the changes were not necessarily
bad, but they did raise the question of what kind of Malaysia
Singapore would be dealing with 20 years from now. Even if
it never strays into radicalism, SM Goh said, an increasingly
Islamic Malaysia could be a problem. A conservative Malaysia
more interested in religion than the kind of economic
progress it made under Mahathir could have severe
implications for the Singaporean economy -- "if they don't
grow, we don't grow."

8. (C) The SM explained that the Singapore government has
made a significant effort to ensure that the Malay-Muslim
minority is not marginalized or alienated. Malay-Muslims are
well integrated into Singapore society. The SM noted,
however, that many have followed the trend of becoming
increasingly conservative religiously, and that some tend to
restrict themselves to their mosque and their Muslim
community, where they feel most comfortable. It requires
conscious effort, in Singapore's case through grassroots
organizations that get them involved in the community, to
ensure that Muslims continue to be a part of the broader
society, he said.
HERBOLD