MALAYSIAN VIEWS ON IRAN COVERT NUCLEAR ACTIVITY

S E C R E T SECTION 01 OF 02 KUALA LUMPUR 000822

SIPDIS

FOR EAP/MTS AND ISN

E.O. 12958: DECL: 10/08/2029
TAGS: PREL KNNP PARM IAEA MNUC IR MY
SUBJECT: MALAYSIAN VIEWS ON IRAN COVERT NUCLEAR ACTIVITY
AND P5+1 GENEVA TALKS

REF: A. STATE 100153 -- COVERT NUCLEAR FACILITY IN IRAN

B. STATE 103219 -- BRIEF ON P5+1 MEETINGS

Classified By: Political Counselor Brian D. McFeeters for reasons 1.4 b
and d.


1. (S) SUMMARY AND COMMENT. Polcouns and Poloff met with
Bala Chandran Tharman, Under Secretary for Disarmament and
Non-Proliferation in the Ministry of Foreign Affairs'
Department of Multilateral Affairs, and Shazryll Zahiran,
Principal Assistant Secretary in the MFA,s Disarmament and
Non-Proliferation Section, regarding Iran's covert nuclear
facility in Qom (ref A) and subsequent P5 1 meeting in Geneva
(ref B) on October 8. Bala praised the USG's general
approach to Iran and President Obama's diplomatic overtures
in particular, claiming that they were the principle reason
Iran has recently adopted a more open negotiating posture.
Bala claimed that he and the Malaysian government were
surprised and disappointed by Iran's recent admission of a
second nuclear facility at Qom, but that it was good that the
information was now public. He saw the October 1 P5 1
meetings in Geneva as a positive step, adding that the burden
was on Iran to take the next step. He said he understood
that further P5 1 actions could be needed if negotiations are
not successful. Bala also expressed support for broader
nuclear disarmament efforts.


2. (S) COMMENT. The GOM has rarely backed USG positions on
Iran, but on this occasion U/S Bala clearly meant to send a
message supporting the multilateral diplomatic approach and
the USG's involvement in it. END SUMMARY AND COMMENT.

MALAYSIA PRAISES OUR GENERAL APPROACH TO IRAN
--------------


3. (C) In an initial discussion, saying that his government
had followed the October 1 P5 1 Geneva meetings with
interest, MFA Under Secretary for Nonproliferation Bala
Chandran praised the Obama administration's current approach
to Iran. Calling the USG tone "fundamental" to the success
of any discussions with Iran, he noted "we looked carefully
at the President's statements. We are pleased to note that a
diplomatic solution is in the forefront. It is an important
component, as it sets the tone of the discussion with the
Iranians."


4. (S) Bala noted that in his most recent conversation with
(unspecified) Iranian officials, he told them to "clear the
atmosphere" and to "bring down the rhetoric". He added that
the USG's current approach "gives us strength to speak to our
Iranian counterparts on this issue," and expressed hope that
"we'll be able to play our role in achieving a diplomatic
solution with Iran."

IRAN'S COVERT FACILITY TAKES MALAYSIA BY SURPRISE
-------------- --------------


5. (S) In reply to ref A demarche points, Bala replied that
the Malaysian government was "also caught by surprise of this
sudden revelation of the existing (Qom) facility." He
expressed disappointment with the Iranians over this
development, claiming that the GOM had reinforced to Iranian
authorities the need for transparency in its nuclear
programs. However, Bala also said that it was "good news
that the matter is out." He expressed curiosity over the
timing of the Iranian announcement.

MALAYSIA REACTS POSITIVELY TO OCTOBER 1 MEETINGS
-------------- ---


6. (S) Polcouns continued by delivering the ref B demarche
points to Bala immediately following discussions about Iran's
covert nuclear facility. Bala initially expressed surprise
at the result, saying his government did not expect such a
constructive outcome because the "rhetoric from Iran was very
high." However, he noted that "the Iranian comments since
then had cooled, probably in reaction to "the constructive
method of the Obama administration." The result, according
Bala, was "very positive" for the Government of Malaysia. He
considered it "fundamental" that "Iran takes the next step."

KUALA LUMP 00000822 002 OF 002


He said he understood that the USG saw Malaysia's role as
Chair of the IAEA Board of Governors as important for
influencing Iran, adding that he did not know what form the
planned October 18 IAEA discussions of the Teheran Research
Reactor details would take; he did not respond to our further
efforts to determine what instructions the GOM would provide
to its IAEA mission in Vienna about this issue.

MALAYSIA'S GENERAL VIEWS ON NON-PROLIFERATION
--------------


7. (S) Bala, taking a cue from the P5 1 talks in Geneva,
added his government's official position on non-proliferation
in general. According to Bala, any country that embarks on a
nuclear program for peaceful purposes must embrace a few
principles: transparency, confidence building measures, and
full implementation of IAEA safeguards. He mentioned that
Malaysia was considering a nuclear energy program in the
future and would abide by those principles. (Note: As part of
its ongoing energy policy review, the GOM is currently
considering starting a nuclear energy program with the first
power plant potentially coming on line as early as 2025. End
Note.)


8. (S) Bala expressed concern over the current state of the
Non-Proliferation Treaty (NPT),saying that a means was
needed for dealing with India, Pakistan, and the DPRK, and
that "there were reports" saying Israel had nuclear weapons.
He agreed to our suggestion that our two governments engage
in additional consultations on the NPT in the runup to the
May 2010 NPT Review Conference.

MALAYSIA BELIEVES TIME IS RIGHT TO ACT ON NPT
--------------


9. (S) Bala praised President Obama's initiative for a
nuclear-weapons free world, saying that President Obama's
Prague statement was an impetus for other countries to
cooperate. However, he also added: "the only one who is far
away is France. President Sarkozy has not embraced the call
by President Obama and the others for a nuclear free world,"
an issue the GOM had raised with the French Ambassador to
Malaysia. He concluded that the best way forward was with a
G8 resolution on eliminating nuclear weapons based on
President Obama's vision.
RAPSON