100-PERCENT SCANNING "UNWORKABLE," SAYS SINGAPORE

UNCLAS SECTION 01 OF 02 SINGAPORE 002150 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: ETRD EWWT ETTC PTER ECON USTR SN SUBJECT: 100-PERCENT SCANNING "UNWORKABLE," SAYS SINGAPORE REF: A. SINGAPORE 1612 ¶B. STATE 108528 ¶C. STATE 119837 SINGAPORE 00002150 001.2 OF 002 ¶1. (SBU) Summary: The Singapore government remains opposed to the "100-percent" scanning provision of the 9/11 Act, calling it "unworkable" in its current form. Senior GOS officials have urged in meetings, formal letters, and public fora that the USG reconsider the legislation. Singapore-based business representatives appear less concerned about the new requirements, but have told us they have their doubts about implementation. End summary. GOS Gives Thumbs Down to 100-Percent Scanning -------------- ¶2. (SBU) GOS reaction to the new 100-percent legislation has been unenthusiastic. In an August 2007 letter to Secretary Chertoff, Transportation Minister Raymond Lim noted "serious concerns about the significant negative impact" the law would have on trade efficiency (ref A). Lim highlighted three points, excerpted below: 1) A 100-percent scanning feasibility study (under the Secure Freight Initiative) has not yet commenced. Therefore, the United States and other countries do not have an appreciation for the types of problems that could arise. 2) The new requirements will result in higher costs for U.S. consumers. 3) Current technology will not allow for an effective assessment of the data generated by the project. Lim also outlined several technical concerns related to costs and duplication of data collection. ¶3. (SBU) Singapore's Ambassador to Washington Chan Heng Chee called the legislation "unworkable" in a July meeting with A/S Sullivan (ref B). She noted that a pilot program in Hong Kong had failed to produce "usable results." Singapore is a participant is several USG security initiatives, but does not seem to receive any tangible benefits for its compliance, she said. Modern Singapore's founding father and senior statesmen, Lee Kuan Yew, has also made disparaging remarks in public about the legislation. The View from the Private Sector -------------- ¶4. (SBU) Econoffs met recently with more than a dozen members of the American Chamber of Commerce's Manufacturing and Supply Chain Committee to discuss the new legislation. Approximately half of the attendees professed to have no prior knowledge of the new requirements. Among the companies represented were PricewaterhouseCoopers, Hewlett-Packard, Kodak, and Maersk Shipping lines. ¶5. (SBU) AmCham members seemed less negative than the GOS about the legislation's effect on their businesses, but raised several questions. Issues related to data processing and standards generated the most concern. Like the GOS, they doubted the USG's ability to extract meaningful information from the voluminous data that 100-percent scanning will produce. They also questioned how the USG would go about setting standards and definitions to ensure consistency in the implementation process. In particular, the participants wondered if DHS would impose the same technology requirements on every port in the world. If not, would it harmonize the data collected from different machines in different locations? AmCham representatives urged the USG to engage in extensive trials before implementation to ensure that systems and operating plans were in place that will maximize flexibility and minimize failure rates. Comment -------------- ¶6. (SBU) The GOS will continue to resist the 100-percent scanning legislation requirements in the hopes they will "go away." If the requirements are maintained, we expect the GOS will seek compliance exceptions that would enable it to delay implementation beyond 2012 (per the provisions of the 9/11 Act.) Singapore has been a willing partner in programs such as the Container Security Initiative (CSI) and Megaports, and we are currently negotiating the launch of a Secure Freight SINGAPORE 00002150 002.2 OF 002 Initiative (SFI) pilot here. However, Singapore complains that we do not always follow up on representations made in connection with earlier initiatives (e.g., access to customs "green lanes" under CSI) even as we impose new expectations and requirements. The possible negative repercussions of 100-percent scanning to the port of Singapore's bottom line appear to be the main cause of GOS concern. Visit Embassy Singapore's Classified website: http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm HERBOLD