IRAN SANCTIONS: URGING MALAYSIA TO PRIORITIZE

S E C R E T KUALA LUMPUR 001198 SIPDIS SIPDIS STATE FOR ISN/RA AND EAP E.O. 12958: DECL: 07/25/2027 TAGS: PARM PREL KNNP IR MY SUBJECT: IRAN SANCTIONS: URGING MALAYSIA TO PRIORITIZE UNSCR IMPLEMENTATION REF: STATE 101574 Classified By: Political Section Chief Mark D. Clark reasons 1.4 (b and d). Concerns Raised with NSC -------------- ¶1. (S) DCM and polchief met on July 23 with Malaysia's National Security Council Secretary Muhammad Hatta and focused the discussion on the importance of countries maintaining pressure on Iran to comply with its nonproliferation obligations, including through implementation of UNSCR sanctions (reftel). DCM highlighted that the Iran nuclear issue is a serious matter of national security for the U.S., as well as a significant concern for the international community. As such, countries should not engage in business as usual with Iran. We also looked to Malaysia to submit reports on its UNSCR 1737/1747 implementation. DCM pointed out incidents, raised with the GOM over the past year, in which Malaysian companies have been involved in transshipment of military-related equipment to Iran or purchased defensive gear from Iran. Polchief explained that we had not received any substantive response from the Foreign Ministry on the various Iran-related cases. ¶2. (S) Muhammad Hatta, who as NSC secretary reports directly to Prime Minister Abdullah, said he understood U.S. concerns, and would take seriously any U.S. information on Malaysian companies violating UN sanctions and U.S. laws. Hatta asked that the Embassy share any future reports with his office in addition to the Foreign Ministry. He was unaware of the status of Malaysia's reports to the UN. Hatta noted Malaysia's apprehensions over Iran's influence in Muslim Southeast Asia and the GOM's monitoring of Iranians in Malaysia. Hasnan Zahedi bin Ahmad Zakaria, Under Secretary for the National Intelligence Division within the Prime Minister's Department, joined Hatta in our meeting. MFA Pressed on Outstanding UN Reports -------------- ¶3. (S) Polchief spoke July 25 with the Foreign Ministry's Under Secretary for Multilateral Political Affairs, Shahrul Ikram, and urged the Malaysian government to give priority to implementing UNSC sanctions against Iran (Shahrul is responsible for UN political affairs within the MFA). Polchief said past Iran-related procurement and transshipment cases involving Malaysian companies resulted in greater U.S. and international attention to Malaysia's current actions to uphold the UNSC sanctions. Shahrul confirmed that Malaysia had yet to submit its 1737/1747 reports to the UNSC. He said this did not reflect a lack of prioritization, but "speaking frankly" the delay resulted from a cumbersome multi-agency coordination process within the GOM bureaucracy. In addition, Foreign Ministry offices were overtaxed by various international engagements. Nevertheless, Malaysia intends to report to the UNSC, Shahrul said. LAFLEUR