MALAYSIA'S NEW APEC SENIOR OFFICIAL STRESSES CONTINUITY

UNCLAS KUALA LUMPUR 000683

SIPDIS

SENSITIVE

SIPDIS

DEPT FOR EAP - AMBASSADOR MICHALAK AND EAP/MTS - MTAYLOR
DEPT PASS USTR FOR B. WEISEL AND J. JENSEN
GENEVA FOR USTR

E.O. 12958: N/A
TAGS: ECON ETRD ECIN MY
SUBJECT: MALAYSIA'S NEW APEC SENIOR OFFICIAL STRESSES CONTINUITY



1. (U) Econoff paid a courtesy call on Malaysia's new Senior
Official to APEC, Abdul Ghafar Musa, on April 11. Ghafar, who holds
the rank of Senior Director in the Ministry of International Trade
and Industry (MITI),was joined by Principal Assistant Director
Masaida Buang and Assistant Director Firdaos Rosli. Ghafar noted
from the outset that Malaysia's current goals for APEC largely
mirror those of the U.S. Malaysia strongly supports efforts to
refocus APEC on trade and investment issues, to strengthen APEC's
institutions, and to include on APEC's agenda those security issues
that are most relevant to trade and investment. Ghafar also told
econoff that Malaysia supports extension of the moratorium on new
members until at least 2010. Malaysia believes existing members must
make more progress towards achieving the Bogor goals on trade
liberalization before incorporating new members.


2. (U) Ghafar noted that Malaysia is interested in the long-term
prospect of negotiating a Free Trade Area of the Asia Pacific
(FTAAP). However, he argued that pursuit of further trade
liberalization through the WTO's Doha Round needed to remain the
first priority for APEC members. Malaysia supports APEC's
continuing efforts to create model measures for FTAs and Regional
Trade Agreements, which could help pave the way not only to an
eventual FTAAP but also assist countries like Malaysia as they
pursue bilateral FTAs. APEC's involvement in various forms of
capacity building, whether in an FTA/RTA context or not, was an area
of particular interest for Malaysia and would continue to receive
strong support, Ghafar added.


3. (U) One issue of particular concern to Malaysia was the
possibility that some APEC decisions could be made binding on its
members. Ghafar told econoff that Malaysia would push back strongly
against any such efforts. Voluntary adherence to APEC guidelines
has been a cornerstone since the group's founding, and Malaysia
would be unwilling to sacrifice the policy flexibility that would
disappear with binding decisions.


4. (SBU) Comment and biographical note: Ghafar rotated into the
position as Malaysia's Senior Official after his predecessor's
unexpected departure just a couple of months into the job. At this
point it is unclear how secure Ghafar's hold is on the position.
Ghafar has worked for several years in the industry side of MITI,
and previously served overseas for nine years in Japan, both in
Tokyo and in Osaka. He fondly recalled his participation in the
International Visitors Program in 1984. He has not visited the
United States in ten years. Ghafar told us he looks forward to his
first meeting with the U.S. Senior Official to APEC, Ambassador
Michael Michalak, next week at SOM II in Adelaide.

LAFLEUR