Identifier
Created
Classification
Origin
08KUALALUMPUR1078
2008-12-11 08:04:00
CONFIDENTIAL
Embassy Kuala Lumpur
Cable title:  

AMBASSADOR KEITH JOINS EU ENVOYS IN DELIVERING

Tags:  PARM MNUC EFIN KNNP GM IR MY 
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VZCZCXRO3441
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #1078/01 3460804
ZNY CCCCC ZZH
P 110804Z DEC 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 2112
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 0163
RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0114
RUEHRL/AMEMBASSY BERLIN PRIORITY 0203
RUEHSW/AMEMBASSY BERN PRIORITY 0039
RUEHEG/AMEMBASSY CAIRO PRIORITY 0074
RUEHBY/AMEMBASSY CANBERRA PRIORITY 2703
RUEHJA/AMEMBASSY JAKARTA PRIORITY 1775
RUEHLO/AMEMBASSY LONDON PRIORITY 0544
RUEHMS/AMEMBASSY MUSCAT PRIORITY 0021
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 0844
RUEHFR/AMEMBASSY PARIS PRIORITY 0204
RUEHRO/AMEMBASSY ROME PRIORITY 0205
RUEHUL/AMEMBASSY SEOUL PRIORITY 1723
RUEHTV/AMEMBASSY TEL AVIV PRIORITY 0154
RHEHNSC/NSC WASHDC PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 001078 

SIPDIS

FOR EAP/MTS, ISN/RA AND EEB/TFS

E.O. 12958: DECL: 12/10/2018
TAGS: PARM MNUC EFIN KNNP GM IR MY
SUBJECT: AMBASSADOR KEITH JOINS EU ENVOYS IN DELIVERING
IRAN DEMARCHES

REF: A. STATE 127040 - FINANCIAL PRESSURE ON IRAN

B. STATE 125551 - COORDINATED DEMARCHE ON IRAN

Classified By: Political Counselor Mark D. Clark for reasons 1.4 b and
d.

C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 001078

SIPDIS

FOR EAP/MTS, ISN/RA AND EEB/TFS

E.O. 12958: DECL: 12/10/2018
TAGS: PARM MNUC EFIN KNNP GM IR MY
SUBJECT: AMBASSADOR KEITH JOINS EU ENVOYS IN DELIVERING
IRAN DEMARCHES

REF: A. STATE 127040 - FINANCIAL PRESSURE ON IRAN

B. STATE 125551 - COORDINATED DEMARCHE ON IRAN

Classified By: Political Counselor Mark D. Clark for reasons 1.4 b and
d.


1. (C) Summary: Ambassador Keith joined chiefs of mission
from France, Germany, Italy, and the United Kingdom in
delivering ref A and B demarches concerning Iran sanctions
and financial pressure on Iran to Malaysian Foreign Ministry
Deputy Secretary General (Multilateral) Kamal Yan bin Yahya
on December 9. The Ambassador recalled our ongoing bilateral
exchanges on Iranian nonproliferation matters, emphasizing
our shared interests in the integrity of the global nuclear
nonproliferation regime. Kamal reaffirmed Malaysia's
commitment to UNSC decisions, but also defended Malaysia's
bilateral relationship with Iran, including Malaysia's
presentation of what it considers legitimate commercial ties.
Kamal left open the possibility that Malaysia would allow
Iranian banks to open branches in Malaysia, but only those
not currently sanctioned in UNSCRs. End Summary.


2. (C) Speaking in the lead for the EU4 during the December 9
meeting with MFA Deputy Secretary General Kamal, French
Ambassador Marc Barety emphasized the nonproliferation,
financial, and commercial energy points as directed in the
coordinated demarche. He underlined the importance of
Malaysia's support in persuading the Iranians to change their
behavior. Deputy Secretary General Kamal expressed in reply
Malaysia's unwavering commitment to the standards embodied in
the relevant UN Security Council Resolutions, and, recalling
Malaysia's upcoming chairmanship of the IAEA Board of
Governors, to the IAEA's efforts to persuade Iran to conform
to standards and behaviors mandated by the Security Council.
Kamal was firm in his defense, however, of Malaysia's
bilateral relationship with Iran and its determination to
sustain legitimate commercial ties, reiterating a now
familiar Malaysian position.


3. (C) The Ambassador recalled our ongoing bilateral
exchanges on the subject, emphasizing our shared interests in
the integrity of the global nuclear nonproliferation regime,
the need to dissuade the Iranians from persisting on a course
adverse to sustained peace and stability in the Middle East,
and our continuing willingness to help Malaysia develop
robust domestic laws that could help prevent illegitimate
behavior on Iran's part. The Ambassador emphasized that the
distinction the Malaysians were making was becoming
increasingly blurry. In some cases Iranian individuals or
corporations violated UNSCRs, in some cases they broke host
country's domestic laws, and in some cases they were in
violation of both. It was becoming more and more difficult
to draw a fine distinction between Iran's willful violation
of international standards on the one hand and domestic laws
on the other. Ambassador Barety and Ambassador Keith both
underlined the risk to Malaysia's reputation in such
circumstances when the lines between legitimate and
illegitimate Iranian activities were so hard to discern.
Based both on a careful reading of its own long-term
interests in stable supply of fossil fuels from the Middle
East and its concern to protect its hard-earned international
reputation as a safe and effective entrepot, Ambassador Keith
argued, Malaysia should commit to more actively assist the UN
and the EU in their efforts to convince Iran to choose
cooperation with the international community.


4. (C) In reply to a query from the Italian Ambassador, Kamal
declined to rule out the possibility that Iranian bank
branches would be permitted in Malaysia. Kamal affirmed that
no sanctioned bank would be permitted to do business in
Malaysia, but he left open the possibility that Malaysia
would consider allowing a non-sanctioned Iranian bank to do

KUALA LUMP 00001078 002 OF 002


so.


5. (C) Kamal closed by urging continued close cooperation and
asked Ambassador Keith in particular to continue to convey
any detailed information related to illegitimate transfers
attempted or undertaken by Iranian entities.
KEITH