Identifier
Created
Classification
Origin
09KUALALUMPUR859
2009-10-27 06:44:00
SECRET
Embassy Kuala Lumpur
Cable title:  

DEPUTY SECRETARY STEINBERG'S SEPTEMBER 28,2009

Tags:  OVIP STEINBERG JAMES PREL PGOV ECON MY 
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S E C R E T SECTION 01 OF 04 KUALA LUMPUR 000859 

SIPDIS

E.O. 12958: DECL: 10/19/2019
TAGS: OVIP STEINBERG JAMES PREL PGOV ECON MY
SUBJECT: DEPUTY SECRETARY STEINBERG'S SEPTEMBER 28,2009
MEETING WITH MALAYSIAN PRIME MINISTER NAJIB

Classified By: Ambassador James R. Keith for reasons 1.4 (b and d).

S E C R E T SECTION 01 OF 04 KUALA LUMPUR 000859

SIPDIS

E.O. 12958: DECL: 10/19/2019
TAGS: OVIP STEINBERG JAMES PREL PGOV ECON MY
SUBJECT: DEPUTY SECRETARY STEINBERG'S SEPTEMBER 28,2009
MEETING WITH MALAYSIAN PRIME MINISTER NAJIB

Classified By: Ambassador James R. Keith for reasons 1.4 (b and d).


1. (SBU) September 28, 2009, 09:00 a.m.; Prime Minister's
Office, Putrajaya, Malaysia.


2. (SBU) Participants:

United States
--------------

The Deputy Secretary
Ambassador James Keith
DNI Ambassador Joseph DeTrani
Principal Deputy Assistant Secretary Joseph Donovan
Deputy Assistant Secretary Scot Marciel
OSD PDASD Derek Mitchell
JCS RDML Leidig
Special Assistant Pamela Park
Economic Counselor Matt Matthews (notetaker)

Malaysia
--------------

Prime Minister Najib Razak
Badruddin Abdul Rahman, Acting Senior Under Secretary,
Directorate of Europe, America, and Africa, MFA
Mr. Akbar Samon, Principal Assistant to Special Officer to
the Prime Minister
Mr. Muhammad Radzi Jamaludin, Principal Assistant Secretary,
Directorate of Europe, America, and Africa, MFA
Mr. Edriely Ibrahim, Assistant to Special Officer to the
Prime Minister


3. (C) Summary: During a productive and wide-ranging policy
discussion, PM Najib emphasized to Deputy Secretary Steinberg
his commitment to strengthening bilateral ties with the U.S.
Raising recent reports of transshipments to Iran via
Malaysia, PM Najib told Deputy Secretary Steinberg that these
were done without the knowledge of the GOM. The PM
emphasized that his government was taking steps to tighten
export controls, and that he is committed to advancing
Malaysia,s long-pending draft export control law. Deputy
Secretary Steinberg encouraged PM Najib to use Malaysia,s
position as the new Chair of the IAEA BOG to press Iran to
signal a change of course at the upcoming P5 plus 1 meeting.
On Afghanistan capacity building, the PM offered to see what
Malaysia could do, suggesting that perhaps Malaysia could
provide assistance and training in the law enforcement area,
in Malaysia. Steinberg encouraged Najib to consider
conducting the training in Afghanistan if at all possible.


4. (S) Summary (cont,d.): In other areas, Najib said that
fighting global terrorism was high on his agenda and he noted

ongoing concerns about the southern Philippines. Deputy
Steinberg thanked PM Najib for Malaysia,s helpful public and
private communications regarding North Korea and urged close
scrutiny of North Korean entities KOMID and Tanchon Bank in
Malaysia. On climate change, Najib said Malaysia remained
supportive of the Kyoto protocol, but could not move beyond
Kyoto until the government created a public consensus
supportive of measures that required lifestyle changes.,
The PM highlighted recent GOM efforts to improve Malaysia,s
record on trafficking in persons. The Deputy expressed
appreciation for Najib,s engagement with the U.S. and
stressed we were looking forward to the imminent publication
of Malaysia,s new TIP National Action Plan. Deputy
Steinberg welcomed the PM's suggestion for initiating a
high-level bilateral exchange. The PM reiterated his desire
to strengthen and deepen the bilateral relationship. End
Summary.


5. (C) PM Najib welcomed Deputy Secretary Steinberg to
Malaysia noting his visit was an important opportunity to
exchange views. Najib said his telephone conversation with
the President in late-June had been warm and productive, and
added that he appreciated President Obama,s mention of
Malaysia in his Cairo speech. We bill ourselves as a
moderate and progressive country, he said, and we like the
world to see us that way. There may be one or two things
where it could improve, but Malaysia would not become a
theocratic state, or extremist. The Deputy Secretary told
the PM the U.S. saw tremendous opportunity to develop our
bilateral relationship. The President had asked that he
convey to the PM appreciation for his invitation to visit
Malaysia. The Deputy Secretary said that the President

KUALA LUMP 00000859 002 OF 004


considered Malaysia a key partner given its status as a
progressive Muslim and pluralistic society.

Non-Proliferation -- Iran and North Korea
--------------


6. (C) PM Najib said his government wants to continue the
dialogue with the U.S. on non-proliferation issues. He noted
concerns and press reports recently that had been raised
about transshipments through Malaysia. He said these were
being done without the knowledge of the GOM. He stated that
his government was working on tightening up its export
control regime, and that he was committed to passing
Malaysia,s long-pending draft export control law,
particularly for equipment that could be used by third
countries for nuclear programs. The Deputy Secretary told
the PM that non-proliferation was one of the top priorities
of the President and that the President viewed Iran as one of
the most serious threats. Malaysia, the Deputy suggested,
should use its role as the new chair of the IAEA Board of
Governors to help persuade Iran to change its course. While
the US did not object to Iran,s right to develop nuclear
power, the recent revelation of Iran,s secret enrichment
facility once again highlighted Iran,s continued pattern of
deception with regard to its nuclear program. The Deputy
Secretary expressed hope that Iran would respond to
international diplomatic efforts during the meeting October

1. The U.S. did not want confrontation but it was
unacceptable, he said, for Iran to be enriching uranium in
violation of the UNSC Resolutions. International cooperation
to bring pressure on Iran was important to the success of
these diplomatic efforts.


7. (S) Limiting Iran,s financial entities, like Bank Mellat,
also was part of this cooperative effort, the Deputy
Secretary said. We had not proceeded with designation of
Bank Mellat,s subsidiary in Malaysia (First East Export
Bank) pending this meeting, Steinberg advised, but our
intention was to proceed. Things have reached a critical
stage with regard to Iran, the Deputy Secretary said. It was
important to send an unequivocal signal to Iran that it
needed to meet its obligations. When the PM asked what
signals the U.S. was getting from Iran, the Deputy Secretary
replied that Iran,s test firing of missiles was the response
the world had taken note of at present, but he hoped for a
more positive response from Iran at the October 1 (P5 plus
one plus Iran) meeting. He asked the PM to take advantage of
Malaysia,s ties to Iran to help point out to the Iranians
that the October 1 meeting represented a last clear chance to
change course. The Deputy Secretary noted that Robert
Einhorn, the Special Advisor for Non-Proliferation to the
Secretary, would likely be coming to Malaysia in October to
continue our dialogue on this and other non-proliferation
issues.


8. (S) Najib recalled a conversation before the start of the
Iraq war in which he had predicted outside intervention would
have the unintended consequence of creation of a new nexus
between Shia,s in Iran and Iraq. The Deputy Secretary
commented that Secretary Clinton and others had discussed the
Iranians, influence in Iraq with Iraqi PM Maliki and
others. Iran, he added, had overplayed its hand and as a
result had weakened its position in Iraq. Closing out on
non-proliferation, the Deputy Secretary thanked PM Najib for
the good support Malaysia provided with regard to North
Korea, including the helpful comments he made at an ASEAN
summit meeting in Cheju. But he stressed that the U.S.
remained concerned about the operations of two North Korean
entities, KOMID and Tanchon Bank. Steinberg urged close and
continuing scrutiny of the North Korean presence.

Cooperation on Fighting Terrorism and Piracy
--------------


9. (C) PM Najib said Malaysia would play its part in managing
common concerns like fighting global terrorism, which Najib
said was high on his agenda. While his government had
succeeded in making Malaysia safe, Najib said ensuring that
the situation in the southern Philippines did not deteriorate
and allow AI Qaeda and JI to spread was a concern foremost in
his mind. For Malaysia, the southern Philippines was the
Achilles heel and it was for that reason the GOM placed
importance on the negotiations there to deal with the serious
threat presented by JI. The Deputy Secretary noted that there
had been good cooperation and some success in this regard

KUALA LUMP 00000859 003 OF 004


already. PM Najib pointed to Malaysia,s successful efforts
to make the Strait of Malacca safe and secure. He said
Malaysia would continue to work in concert with its Strait
neighbors to keep the number of piracy acts at a negligible
level. Najib noted Malaysia had made a small contribution to
addressing the piracy issue off of Somalia.


10. (C) On Afghanistan, PM Najib said Malaysia had offered to
provide capacity building and reconstruction assistance. He
noted that the Afghan embassy in Malaysia was fully supported
by the GOM and that Malaysia had provided disaster relief
assistance to Afghanistan in the past. Najib told the Deputy
Secretary that Malaysia would look into what it could do in
terms of training Afghans, perhaps assistance focused on law
enforcement. The GOM,s preference, however, is for this
type of training to be conducted in Malaysia. The Deputy
Secretary emphasized that it was important that our efforts
in Afghanistan be part of a broader international approach.
Malaysia,s contributions were important both in terms of
substance and symbolism. As such, the U.S. would like to see
Malaysia undertake training in Afghanistan. Our overarching
goal, the Deputy Secretary said, is to ensure that extremists
are not allowed to take hold and that Afghans have the
opportunity to come together to build their nation. Afghans
needed to see that their government could provide security
and stability and that other countries, such as Malaysia,
were working cooperatively with their government to help
achieve those goals.


11. (C) PM Najib asked the Deputy Secretary about
developments in Pakistan with regard to Afghanistan. The
Deputy Secretary said there had been a sea change over the
last few months, driven in part by accelerated terrorist
attacks by the Taliban inside Pakistan, which had convinced
the government of Pakistan that extremists were a threat, not
only in the Swat valley but across the country. PM Najib said
the government in Afghanistan needed the support of
Pakistan,s military and intelligence agencies but that,
given the long-term relationships between those organizations
and the Taliban, the degree of support was unclear. The
Deputy Secretary acknowledged that the situation was
complicated and that there was a lot of history that came
into play, but he stressed that there had been a strategic
shift in thinking in Pakistan.

Climate Change
--------------


12. (C) The Deputy Secretary told the PM that climate change
was a priority issue for the President. There were some
positive developments with regard to India and China as the
U.S. explored options for all parties to the climate change
discussions to undertake responsibility for differentiated
but active measures to address the issue. Najib said that
Malaysia was very supportive of the Kyoto Protocol and he
welcomed the major shift in the U.S. administration,s
position. The Deputy Secretary said the U.S. took its
responsibilities seriously, but emphasized that all countries
needed to contribute to the solution. The Deputy Secretary
noted that in the U.S., the President was moving things
toward win-win solutions through the development of a green
economy which could provide the basis for the next industrial
revolution. The PM said it was critical that major life
style changes take place. There were similar lifestyle
problems in Malaysia, the PM said, but the government needed
time to educate consumers so that new policies could be based
on strong public support. The PM said he had created a
ministry for green technology which was focusing on renewable
energy. The Deputy Secretary commented that the UAE provided
a good model for how traditional fossil fuel economies could
diversify to renewable energy. The U.S. was working with the
UAE on renewable energy and on a safeguard agreement for its
future development of civil nuclear power, including a plan
to forego enrichment. Malaysia was carrying out a review of
its energy policy, according to the PM. Malaysia, he said,
needed more hydropower and was looking to reduce dependence
on coal, because it was dirty, and on gas because it was
scarce. Malaysia was reexamining the role of nuclear power
too, he added, but it was being considered as a last option.

Trafficking In Persons
--------------


13. (C) Najib told the Deputy Secretary that his government
had taken a number of significant steps to address this

KUALA LUMP 00000859 004 OF 004


problem in Malaysia, including the arrest of immigration
officers implicated in trafficking/extortion schemes
involving Burmese refugees. He noted that his new ambassador
to the U.S., Jamaludin Jarjis, had also discussed this issue
with Senator Lugar,s staff. The Deputy Secretary informed
the PM that Secretary Clinton looked forward to seeing
Malaysia,s National Action Plan for trafficking in persons,
noting its publication would send a good signal for future
cooperation on this topic.

Possible High-Level Dialogue and the Economy
--------------


14. (C) PM Najib told the Deputy that he had sent Ambassador
Jamaludin to the US with ministerial rank to emphasize the
importance he attached to the relationship. The PM also
suggested that if both sides thought we needed a bilateral
exchange at a higher level, the Malaysian side would be ready
to support such a move and he would suggest a Malaysian to
fill that role. The Deputy Secretary welcomed that
suggestion, noting there was an opportunity to tap the
potential of the bilateral relationship. The Deputy
Secretary added that more could be done to tap the potential
of the economic relationship as well. Commenting that he
would be meeting later in the day with GE CEO Jeff Immelt,
the PM agreed that more could be done on the economic
relationship. He said he was considering doing a road show
in the U.S. designed to encourage more U.S. investment in
Malaysia. The PM then asked the Deputy Secretary about
economic conditions in the US and unemployment. The Deputy
noted that economic growth had resumed but that unemployment
was running around 10 percent. While the recovery was
underway, as the President noted at the Pittsburgh G-20
summit, it was too soon to declare victory. Unemployment
would remain high for some time and stimulus might still be
needed to keep the economy on course.


15. (C) The PM closed the meeting by reiterating his
commitment to strengthening the bilateral relationship
between Malaysia and the U.S. All issues could be dealt
with, he said. They were manageable, and none of them were
insurmountable. He asked the Deputy Secretary to convey his
regards to the President.


16. (U) This message was cleared by Deputy Secretary
Steinberg.
KEITH