CUBA: TITLE III OF THE LIBERTAD ACT, SUSPENSION

C O N F I D E N T I A L KUALA LUMPUR 000417

SIPDIS

E.O. 12958: DECL: 05/22/2018
TAGS: ETTC ETRD PREL CU MY
SUBJECT: CUBA: TITLE III OF THE LIBERTAD ACT, SUSPENSION
REVIEW

REF: A. REF A: SECSTATE 52541


B. REF B: KUALA LUMPUR 1685

Classified By: Acting DCM Matthew J. Matthews for reasons 1.4 (b) and (
d)


1. (C) Summary: Based on the information available to
post, it appears no Malaysian entities would be subject to
Title III sanctions against persons trafficking in
confiscated properties in Cuba. Per Ref A request, this
message provides post's analysis of Malaysian policies and
actions with respect to Cuba, for use in assessing whether to
waive Title III of the LIBERTAD Act. There has been no
substantive change since Ref B. Post does not believe a
decision to waive or not to waive Title III will have a
significant impact on Malaysian relations with Cuba; they
will remain cordial. However, imposing sanctions against a
Malaysian entity would be perceived as a negative political
act, and would likely result in more vocal opposition to U.S.
policy toward Cuba than Malaysia has demonstrated in the
past. End Summary.


Investment and Bilateral Trade
--------------


2. (U) Malaysia has a very limited economic relationship with
Cuba. Total bilateral trade for 2007 was $5.48 million. As
a percentage of Malaysia's 2007 total global trade of more
than $336.3 billion, Cuba does not blip the radar.


3. (U) Trinidad Holdings Sdn. Bhd., a trading group based in
Kuala Lumpur, has been the exclusive Malaysian distributor
for Cuban cigars since 1993, and also sells Cuban wine, beer,
and ice cream mainly to hotels and restaurants.


Scientific and Medical Cooperation
--------------


4. (U) The two countries signed a memorandum of
understanding for scientific cooperation in 2002 that was
designed to advance cooperation on biotechnology, primarily
at the university level. The same year a Malaysian firm
(Bioven) headed by Mukhriz Mahathir, son of former Prime
Minister Mahathir, signed a joint venture with Cuba's Heber
Biotec to manufacture and distribute Cuban biotechnology
products, such as vaccines, in Southeast Asia. In November
2007 Bioven announced that it had acquired full rights for a
new therapeutic cancer vaccine in the European, Japanese,
Australian, New Zealand, and OIC country markets, according
to press reports. It is unclear whether Heber Biotec is
involved, except that clinical trials were carried out in
Cuba as well as Canada and the UK.


5. (U) Inno Bioligics (InnoBio),a Malaysian biotechnology
company, is working with Cuba's Centre for Molecular
Immunology to conduct a two-year clinical trial of monoclonal
antibodies for the treatment of head and neck cancer.
Universiti Sains Malaysia (USM) is working with Cuba's Finlay
Institute to develop vaccines for tuberculosis and
meningitis, including a halal ("permissible" under Islamic
law) meningitis vaccine produced from extracts of animals
slaughtered according to Islamic practices. Currently,
Malaysia imports meningitis vaccine produced from pig
extracts.


6. (U) On March 19, the press reported that the Cuban
Ambassador to Malaysia had announced 30 Cuban
government-sponsored scholarships for Malaysians interested
in studying medicine in Cuba. This is the second such offer.
Last September, six Malaysians departed for Havana to study
medicine at the Latin American School of Medicine on Cuban
government-sponsored scholarships.


Other Exchanges
--------------


7. (U) Cuba and Malaysia occasionally conduct sports and
cultural exchanges; however, post is not aware of any such
exchanges during the past six months.


Promotion of Democracy
--------------


8. (C) The Government of Malaysia has undertaken no policies
or actions of which we are aware to advance democracy, human
rights and fundamental freedoms in Cuba. Malaysia is a vocal
advocate of non-interference in the internal affairs of other
states. Malaysia established diplomatic relations with Cuba

in February 1975.


High Level Visits
--------------


9. (U) Post is not aware of any high-level visits during the
past six months.


COMMENT:
--------------


10. (C) Malaysia objects in principle to the imposition of
economic sanctions and consequently supports Cuba's
opposition to U.S. economic sanctions on Cuba. We would
expect Malaysia to protest in principle the imposition of
Title III sanctions on any country. The protests would
become more vehement if a Malaysian entity were singled out
for sanctions. Malaysia could be expected to respond to
sanctions by maintaining or even increasing its support for
Cuba in the UN and other organizations.
KEITH