GOS RECEPTIVE ON NEED TO ENGAGE CHINA ON

S E C R E T SINGAPORE 001021

SIPDIS

STATE FOR ISN, INR, T, NEA, EAP

E.O. 12958: DECL: 09/19/2018
TAGS: ECON EFIN KNNP PARM PTER PINR SN
SUBJECT: GOS RECEPTIVE ON NEED TO ENGAGE CHINA ON
PROLIFERATION-RELATED TRADE WITH IRAN

REF: A. STATE 98969

B. 2007 SINGAPORE 1258

Classified By: Econ/Pol Chief Ike Reed reasons 1.4 (b) (d)


1. (S) In response to reftel demarche, Singapore MFA
accepted in principle the need to encourage China to do more
to combat proliferation and prevent the transfer of dual-use
and military items to Iran. Michelle Teo-Jacob, Deputy
Director of the MFA Counter Proliferation and International
Security Branch, told us September 18 that she agreed China's
export control enforcement is weak and that this posed a
problem for Singapore as a large transshipment port.


2. (S) Teo-Jacob made no commitment to press China at the
policy level on proliferation-related trade with Iran but
suggested the GOS would consider the idea. She expressed
reservations about a direct approach, saying Chinese
authorities often react defensively and might become
obstructionist. She also thought it might be more effective
to address such concerns at the provincial level than with
Beijing, given China's huge size and numerous ports.
Teo-Jacob thought an industry outreach program along the
lines of what Singapore has used to educate shippers on their
obligations under various export control regimes and UN
Security Council Resolutions (and discreetly let them know
the authorities are watching) might be effective.


3. (S) Noting that Singapore does substantial capacity
building in various areas with Chinese provincial officials,
E/P Chief asked whether Singapore might be willing to offer
export control and industry outreach training in the context
of encouraging China to address proliferation concerns.
Teo-Jacob said she thought it might be possible for Singapore
Customs to fold in such training for the many officials from
Beijing and the provinces who come to Singapore for public
administration and other training. She said she would
discuss this idea with her colleagues at MFA and Singapore
Customs and let us know whether it is something Singapore
would proactively offer.


4. (S) Teo-Jacob also highlighted the ARF Inter-Sessional
Meeting (ISM) on Nonproliferation and Disarmament to be
hosted in China early next year as an opportunity raise
Chinese consciousness on proliferation issues. She thought
the fact that China, the United States and Singapore are
jointly co-chairing the ISM would provide an atmosphere in
which to raise concerns without provoking a defensive
reaction from China.

CONCERN ABOUT RETURNED SHIPMENTS
--------------


5. (S) Teo-Jacob acknowledged personal concern that suspect
shipments interdicted and returned to China by Singapore
could simply get loaded on other ships and forwarded to Iran
by some other route. She suggested that Singapore Customs
had traced the route of suspect cargo sent back to the
country of origin and recognized this possibility. Even so,
she said Singapore had little choice, since, in the sodium
perchlorate case (ref B),for example, the Chinese shipper
was the rightful owner and Singapore had no legal right to
hold the shipment indefinitely. Teo-Jacob indicated also
that Singapore will soon undertake a review of the
implementation of export control laws passed 5 years ago.
She said a problem the Singapore interagency is grappling
with is what to do when goods do not exactly match or "fall
short of" the specifications for controlled items but appear
that they could be used for the same purpose as a controlled
item.

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