SENIOR MOFA OFFICIAL SEEKS BACKGROUND ON IRAN

C O N F I D E N T I A L KUALA LUMPUR 000618 SIPDIS SIPDIS PASS USTR FOR B. WEISEL E.O. 12958: DECL: 04/03/2017 TAGS: ETTC EINV ETRD MY IR SUBJECT: SENIOR MOFA OFFICIAL SEEKS BACKGROUND ON IRAN SANCTIONS ACT (ISA) REF: A. A) STATE 22311 ¶B. B) KUALA LUMPUR 0061 Classified By: Charge' d'Affaires David B. Shear for reasons 1.4 (B & D ) ¶1. (C) Charge' and Economic Counselor met April 4 with Malaysian Ambassador-at-large Ghazzali S.A. Khalid at his request to brief him on the Iran Sanctions Act (ISA). Ghazzali, formerly Malaysia's Ambassador in Washington, maintains a watching brief on U.S. affairs at the Ministry of Foreign Affairs (MOFA) and often works behind the scenes to resolve problems in our bilateral relationship. ¶2. (C) Emboffs provided Ghazzali with a non-paper drawn from the points in Ref A, as well as the texts of the Iran Freedom Support Act (IFSA) and the Iran-Libya Sanctions Act (ILSA). Ghazzali posed a number of questions designed to gauge the scope of the legislation, including whether it might in some way target Iranian investment in third countries, such as Malaysia. Asked if he had specific plans for the information, Ghazzali said he was weighing whether to approach Malaysian firms with plans for investment in Iran's energy sector to ensure they were fully informed on the potential consequences. He had not yet decided whether it would be a good idea for him to do this. At a minimum, he wanted to be better informed about the subject in his "U.S. desk" capacity. Emboffs informed Ghazzali that they had been attempting so far without success to discuss the ISA with SKS Ventures, a Malaysian firm that reportedly concluded an MOU with Iranian authorities to develop gas fields there (Ref B). ¶3. (C) Ghazzali also raised "terrorism free investment" legislation, which he said is being promoted by the American Israel Public Affairs Committee (AIPAC) and supported by some members of Congress. He suggested that such legislation could create complications for the U.S.-Malaysian economic relationship, depending on how it was drafted. Emboffs said they did not know whether the Administration has taken a position on this initiative. SHEAR