CODEL CLYBURN HEARS 100-PERCENT SCANNING CONCERNS

UNCLAS SECTION 01 OF 03 SINGAPORE 000060 SIPDIS SENSITIVE SIPDIS H FOR CODEL CLYBURN E.O. 12958: N/A TAGS: EWWT ETTC ECON ETRD SN SUBJECT: CODEL CLYBURN HEARS 100-PERCENT SCANNING CONCERNS FROM GOS OFFICIALS REF: A. 06 SINGAPORE 2150 ¶B. 06 SINGAPORE 2205 SINGAPORE 00000060 001.2 OF 003 ¶1. (SBU) Summary: Singapore officials told a Congressional delegation led by Rep. James E. Clyburn (D-SC) that new U.S. legislation requiring 100-percent scanning of U.S.-bound cargo could potentially disrupt Singapore's port operations and global trade. They noted the lack of available technologies to efficiently scan cargo. Combined with unknown cost and liability implications, this latest port security initiative could "nullify risk-based approaches" like CSI and C-TPAT that also play a valuable role, and "total supply chain security," which Singapore favors. Rep. Clyburn said that Congress was sensitive to the cost and trade implications of 100-percent scanning, but that it felt it must also address a major vulnerability in our homeland defense. Chairman of the Homeland Security Committee Rep. Bennie Thompson (D-MS) acknowledged there may be a need to "tweak" our efforts as it becomes clear what approaches are most effective. Rep. Zach Wamp (R-TN) expressed his assurances that Congress could provide incentives for partners like Singapore that implemented strong port security measures. During a separate lunch at the Istana, Prime Minister Lee agreed with Codel members that China could do more to improve human rights and religious freedom, and to tackle problems such as pollution and inadequate protection of intellectual property, but that overall progress would be slow. End summary. ¶2. (U) Rep. Clyburn led a six-member Congressional delegation to Singapore January 8-9. In addition to Rep. Thompson and Rep. Wamp, he was accompanied by Rep. Ed Pastor (D-AZ),Rep. Henry Brown (R-SC),and Rep. G. K. Butterfield (D-NC). During a half-day of meetings, the Codel attended a lunch hosted by Prime Minister LEE Hsien Loong, along with Deputy Prime Minister S. Jayakumar, Foreign Minister George Yeo, and Minister for Trade and Industry LIM Hng Kiang. The Codel, together with Minister for Transport Raymond Lim, also visited Singapore's port facilities. Support for U.S. Port Security Initiatives -------------- ¶3. (SBU) A Singapore government interagency team led by Ministry of Transport (MOT) Permanent Secretary CHOI Shing Kwok briefed Codel Clyburn on Singapore's port operations and its efforts and approach on port security. Choi explained that he was conducting the briefing in his capacity as the chairman of an interagency committee on Total Supply Chain (TSC) Security, which is Singapore's preferred approach to ensuring the security of container shipping globally. He emphasized that Singapore shares USG concerns about ensuring the security of container traffic, and thus had become an early participant in U.S. programs, including the Container Security Initiative (CSI),the Customs-Trade Partnership Against Terrorism (C-TPAT),the Megaports Initiative, and the Secure Freight Initiative (SFI),which is slated for implementation in mid 2008. But Concerns About 100-Percent Scanning -------------- ¶4. (SBU) Choi and other GOS officials in the briefing expressed concern about new U.S. legislation requiring 100-percent scanning of U.S.-bound cargo by July 2012 on ports such as Singapore and on global trade. They explained that Singapore's status as the world's busiest container port was due to its efficiency, that it operates in a highly competitive environment, and that more than 80 percent of its traffic is transshipped cargo. There is currently no technology that can efficiently scan transshipped cargo, they observed. Singapore's concerns with 100-percent scanning SINGAPORE 00000060 002.2 OF 003 include its likely disruption of transshipped cargo handling, its cost and liability implications, the fact that pilot programs to assess the likely effect, including SFI, have not been completed, and that it "nullifies risk-based approaches" like CSI and C-TPAT. Don't Neglect Risk-Based Approaches -------------- ¶5. (SBU) Choi emphasized Singapore's preference for risk-based approaches, in which stakeholders all along the supply chain are held responsible for ensuring security. Advantages of such an approach include reinforcing the need for security at every "node" and less duplication of effort. Suppliers that enforce strong security measures and standards and who establish a good track record are rewarded with expedited handling of shipments. Choi described various Singapore initiatives, including the Secure Trade Partnership (e.g., C-TPAT) and its sponsorship of a Trade Recovery Program (TRP) within APEC to deal with the aftermath of a major terrorist attack. Comparing disadvantages, he said risk-based approaches require more international coordination to build the necessary "networks," while 100-percent scanning requires the development of expensive technologies whose effectiveness is not always known. He urged that Congress recognize both approaches as legitimate means to achieve the same goal. Incentives and Integration Needed -------------- ¶6. (SBU) Singapore Ambassador to the United States Chan Heng Chee urged the Codel to provide incentives for those who sign on to U.S. initiatives. She noted that those who signed on to CSI were supposed to have benefited from access to customs "green lanes" in U.S. ports, but that this type of "reward" had never been implemented. Ambassador and Special Consultant Mary Seet-Cheng called for better reconciliation of various USG port security programs, noting that the lack of integration created confusion and additional costs. 100-Percent Scanning Essential -------------- ¶7. (SBU) Rep. Clyburn thanked Choi for Singapore's strong cooperation on port security and for the comprehensive briefing on its complex port operations. As Chairman of the Homeland Security Committee, Rep. Thompson provided background on HB1, which included the 100-percent scanning provision. He said Congress was sensitive to the cost and trade implications of 100-percent scanning and the need to develop better technologies. At the same time, Congress felt it had to address a major vulnerability in our homeland defense. Rep. Thompson noted that if terrorists exploited this vulnerability to launch a dirty bomb attack, for example, the economic fallout would be dramatic and the public reaction would radically "compress" the July 2012 deadline. He thanked Singapore for its strong cooperation and acknowledged there may be a need to "tweak" our efforts as it becomes clear what approaches are most effective. Underscoring his concern about a nuclear event, Rep. Wamp said 100-scanning was essential. In addition, it was relatively easy for Congress to provide incentives for partners such as Singapore that implemented strong port security measures. ¶8. (SBU) Minister of Transport Raymond Lim joined at the end of the briefing and then led the Codel on a tour of Singapore's Pasir Panjang Terminal, including the Megaports and CSI scanning operations. Lunch with Prime Minister Lee SINGAPORE 00000060 003.2 OF 003 -------------- ¶9. (SBU) At a lunch that Prime Minister Lee hosted for the Codel, the PM observed that China had benefited enormously from opening up its economy since the late 1970s and that increasing free trade would eventually lead to a freer society as well. He agreed with Rep. Wamp that China needed to do more to promote human rights and religious freedom, and to grapple with growing problems such as environmental degradation and rampant disregard for intellectual property rights. However, improvements in these and other areas would take time. Without free trade, China would be much bigger headache today. China will move forward whether or not the United States helps it, PM Lee concluded. ¶10. (U) Codel Clyburn did not have an opportunity to clear this message. Visit Embassy Singapore's Classified website: http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm SHIELDS