Identifier
Created
Classification
Origin
07KUALALUMPUR1375
2007-09-10 05:25:00
CONFIDENTIAL
Embassy Kuala Lumpur
Cable title:  

AMBASSADOR'S FAREWELL DISCUSSIONS WITH FOREIGN

Tags:  PREL PHUM ETRD KNNP KISL ASEAN IR BU MY 
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INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUCNISL/ISLAMIC COLLECTIVE PRIORITY
RUEHBY/AMEMBASSY CANBERRA PRIORITY 2380
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C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 001375 

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/10/2027
TAGS: PREL PHUM ETRD KNNP KISL ASEAN IR BU MY
SUBJECT: AMBASSADOR'S FAREWELL DISCUSSIONS WITH FOREIGN
MINISTER SYED HAMID ALBAR

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

Summary
-------

C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 001375

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/10/2027
TAGS: PREL PHUM ETRD KNNP KISL ASEAN IR BU MY
SUBJECT: AMBASSADOR'S FAREWELL DISCUSSIONS WITH FOREIGN
MINISTER SYED HAMID ALBAR

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

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


1. (C) The Ambassador and Malaysian Foreign Minister Syed
Hamid Albar, in farewell discussions September 3-4, agreed
that U.S.-Malaysia bilateral relations had strengthened over
the past three years. The Ambassador raised Iran, export
controls, trafficking in persons (TIP)),Free Trade Agreement
(FTA) talks, Burma, and Malaysia's role in dialogue with the
Muslim world. FM Hamid agree that Iran should not develop
nuclear weapons, but recognized Iran's right to peaceful
nuclear technology. Malaysia believed negotiations, not
sanctions, should be pursued with Iran, including direct
U.S.-Iran talks. The Minister said there was no reason for
concern over export controls and that Malaysia intended to
have adequate legal instruments in place. The U.S. TIP
report had been "unfair" to Malaysia, which was taking steps
in line with international norms. The FTA talks had moved
"better than expected," but convincing the public and the
media remained a challenge. The Ambassador hoped the U.S.
and Malaysia could continue senior dialogue on Muslim world
issues and the Minister noted PM Abdullah remained keen to
engage U.S. leaders in this regard. Hamid described Burma's
National Convention process as fairly "broad-based." He
supported engagement with the Burmese regime through ASEAN
and UN Special Envoy Gambari. Hamid said ASEAN members would
meet on the margins of UNGA to iron out important remaining
issues in the draft ASEAN Charter. End Summary.

Improved Bilateral Relations
--------------


2. (C) The Ambassador paid a farewell call on FM Hamid on
September 3, while the Minister hosted the Ambassador for a
lunch together with senior Foreign Ministry officials on
September 4. In their farewell discussions, the Ambassador
said U.S.-Malaysia relations had grown more supportive and

mutually cooperative over the past three years. FM Hamid
agreed, stating that bilateral relations had "warmed up
considerably" and now exhibited "more maturity." At a
personal level, too, relations between the respective leaders
were "very good," including the personal rapport between
President Bush and PM Abdullah. The Foreign Minister
expressed his appreciation for President Bush's very positive
statement on the occasion of Malaysia's 50th independence
anniversary.

Iran
--------------


3. (C) The Ambassador raised our serious concerns over
Iran's continued nuclear enrichment activities and Iran's
failure to address UNSCR stipulations. Hamid said Malaysia
agreed Iran should not develop nuclear weapons, but Iran also
had a right to develop peaceful nuclear technology. He
supported dialogue and negotiations to reach an "amicable
solution that preserved the dignity of all parties."
"Punishing Iran will make the situation more difficult."
Hamid hoped the IAEA would be the vehicle to resolve the
issue. The Minister recommended direct U.S.-Iran contact.
He thought that U.S. progress on the North Korean nuclear
issue represented a good model.

Export Controls
--------------


4. (C) Related to Iran, the Ambassador urged the GOM to move
quickly to implement an export control regime, noting that
Malaysia had been used by others in the past for nuclear
proliferation. FM Hamid responded that there was "some
disagreement on the facts" in this area, and that Malaysia
was "very transparent." "We are moving toward (the goal of
improved export controls),there's no reason for concern."
The GOM was in the process of getting all necessary legal
instruments in place, and appreciated related U.S. technical
assistance.

Trafficking in Persons
--------------


5. (C) The Ambassador informed the Minister that President
Bush would provide a report to Congress in mid-September
regarding Tier 3 countries and sanctions related to
trafficking in persons. He noted Malaysia's passage of a
comprehensive anti-trafficking law as a positive development.

KUALA LUMP 00001375 002 OF 002


Malaysia's implementation of the law would be very
important, along with the anticipated opening of victims'
shelters later in September. FM Hamid said the latest U.S.
report had been "unfair" to Malaysia because it did not take
into account the drafting of the new law and steps to open
shelters. "We don't want to receive surprises (like the June
TIP report)," Hamid said. The report "affects our country's
reputation and dignity." The Ambassador urged the GOM to
accelerate its anti-trafficking efforts, while Hamid asked
rather that the U.S. take into account Malaysia's efforts to
date.

FTA
---


6. (C) The Ambassador said the U.S. side was prepared to
intensify work on an FTA and hoped to make progress following
Malaysia's pending national elections. The Ambassador
reinforced our desire for transparency in GOM large-scale
procurement and contracting. The public perception that the
U.S. sought to dismantle Malay preference policies was
erroneous. Hamid said the U.S. must convince Malaysian
consumer associations, other civil society groups and the
local press that an FTA would be beneficial. During earlier
negotiations, "the media was totally against us" and
concluding an agreement in such an environment "would have
caused us a lot of problems." Hamid said transparency would
be no stumbling block, as the Malaysian public also wanted
this. He called for more U.S. assurances in the areas of
bio-products, services and procurement. "The Cabinet has not
said 'no'" to an FTA, and Malaysia would continue with
discussions. Minister Rafidah Aziz would remain as the GOM
negotiator, even after the next elections.

Muslim World Dialogue
--------------


7. (C) President Bush and Secretary Rice's dialogue with PM
Abdullah on Muslim world issues has been beneficial, the
Ambassador said, and U.S. leaders wish to continue such
exchanges. The U.S. hopes that Malaysia will continue to
play a leadership role in Islamic forums, even after Malaysia
completes its tenure as OIC chair. FM Hamid said the Prime
Minister remained committed to his "developmental agenda"
within OIC. "The Prime Minister is keen to work with the
U.S." on Muslim world issues, and dialogue and "finding the
middle ground" constitute essential components.

Burma
--------------


8. (C) On Burma, the Ambassador stated that countries should
not publicly welcome the conclusion of the sham National
Convention. Hamid responded that he viewed the National
Convention as fairly "broad based," with the exception of
ASSK's lack of participation. He went on to remark that
Burma is a human rights concern, but not a security threat to
the region. ASEAN should be at the fore in the approach to
Burma. Earlier efforts to take the Burma issue to the UNSC
had inadvertently strengthened China and India's leverage at
the expense of ASEAN. UN Special Envoy Gambari currently
enjoyed the best access within Burma of anyone. Singapore
treated Burma with care at this juncture because it did not
want the Burma issue to complicate the November ASEAN summit,
which Singapore will host. FM Hamid argued that sanctions
against Burma would not bring about positive change, in part
because of Burma's natural resources and because China, India
and Russia acted to relieve pressure on Rangoon. Instead,
the international community should engage Burma, noting that
IO's like ILO were once again able to operate.

ASEAN Charter
--------------


9. (C) In response to the Ambassador's question, FM Hamid
said it was not certain that the draft ASEAN Charter would be
ready by the time of the November ASEAN summit. Several
issues remained to be resolved, including exact modalities of
majority versus consensus decision-making. Senior officials
from ASEAN countries would meet on the margins of UNGA to
attempt to reach agreement on important outstanding Charter
issues.

LAFLEUR