VZCZCXRO8401
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0786/01 2530914
ZNR UUUUU ZZH
O 090914Z SEP 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1614
INFO RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 02 KUALA LUMPUR 000786 
 
CODEL 
SENSITIVE 
SIPDIS 
 
EAP/MTS, PRM, S/CT, H, DS/ATA 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PREF PTER KDEM KTIP MY
SUBJECT: STAFFDEL LUSE ENGAGES PM'S OFFICE, MFA ON 
BILATERAL TIES, REFUGEES, AND REGIONAL STABILITY 
 
Summary 
------- 
 
¶1.  (SBU)   Senate Foreign Relations Committee Professional 
Staffer Mr. Keith Luse met with GOM officials at the Prime 
Minister's Office, the Foreign Ministry's Southeast Asia 
Office, and at the Southeast Asia Regional Center for Counter 
Terrorism (SEARCCT) August 27-29.   Luse raised concerns 
about reports of trafficking of Burmese refugees in Malaysia 
to Thailand at both the PM's Office and MFA.  The Prime 
Minister's communications chief described a long-term 
approach to combating corruption against the backdrop of 
short-term political uncertainty and an emerging two-party 
system.  The Foreign Ministry explored Malaysia's role in 
assisting Thailand and the Philippines address their 
respective insurgencies, noting in particular the GOM's 
continued commitment to the troubled Mindanao peace process. 
The SEARCCT Director General acknowledged the Center had not 
made much progress in developing its regional role over its 
five years of existence, but noted the GOM recently had 
focused more thought on the organization's future.  Septel 
focuses on Mr. Luse's meetings on the issue of Burmese 
refugees and trafficking.  End Summary. 
 
PM's Office 
----------- 
 
¶2.  (SBU)   Datuk Kamal Khalid, the head of the Prime 
Minister's Office's Communications Unit, in a wide-ranging 
conversation, told Luse August 27 the relationship between 
Malaysia and the U.S. was characterized by pragmatism and 
stability, noting particularly fruitful cooperation in the 
area of security.  He alluded in passing to Malaysia's 
seeking some support for IMPACT - the PM's recently launched 
International Multilateral Partnership Against 
Cyber-Terrorism.  Kamal noted that the PM was aware that 
Malaysia's embassy in Washington for too long has not been 
properly staffed, adding that the PM has asked that the MFA 
speed up the process of appointing a new ambassador.  Both 
men concurred that the relationship between the two countries 
would benefit from increasing exchanges.  Kamal echoed 
frequently heard nostalgia for the Peace Corps. 
 
¶3.  (SBU)  Turning to the condition of Burmese refugees in 
Indiana and the possibility of Senate hearings on this 
subject later in the year, Luse outlined allegations that 
corrupt Malaysian immigration officials extorted money from 
Burmese in Malaysia before turning them over to traffickers 
in Thailand (septel reports further on Luse's meeting on this 
issue).  Luse noted with appreciation the GOM's efforts to 
introduce immigration reforms.  While Kamal did not directly 
address the Burmese refugee trafficking issue, he said the 
PM's reform agenda had more teeth since the decision was made 
to give the Anti-Corruption Authority a free hand and for the 
first time to assign two career professions, rather than to 
political appointees, to lead the organization.  In addition 
to having recently pursued corruption charges against the 
head of the Immigration Department, the Authority has pushed 
for reforms among State Counselors as well as with the 
Fisheries and Commercial Vehicles Departments.  Lastly, Kamal 
mentioned 
judicial reform measures designed to formalize and make more 
transparent the process of appointing judges. 
 
¶4.   (SBU)   Reflecting on the wider political situation in 
Malaysia, Kamal said the PM's anti-corruption efforts were 
part of his long-term approach.  "The emergence of a two 
party system is good for Malaysia," he said.  "Twenty years 
ago this would not have passed peacefully.  The PM has not 
resorted to tactics to prevent change," Kamal said, "despite 
short-term uncertainty, the PM is resolute in not resorting 
to violence."  "Some lack patience in the face of the need 
tow work through long-term issues," he added, "at the end of 
the day, the people must choose." 
 
MFA Southeast Asia Office 
------------------------- 
 
¶5.   (SBU)   Mr. Luse accompanied the DCM on an introductory 
courtesy call on MFA Under Secretary for Southeast Asia Dato' 
Ramlan Ibrahim on August 29.  Ramlan spoke in broad terms 
about regional instability.  While careful to identify 
Southern Thai violence as a domestic Thai problem, he 
juxtaposed the work of the Malaysia-Thailand Joint 
Commission, which is expanding near-term confidence building 
measures, with what he felt has been an overly militaristic 
and heavy-handed approach on the part of Thai authorities. 
 
KUALA LUMP 00000786  002 OF 002 
 
 
While Malaysia and Thailand are working together on a 
long-term "Three Es" strategy focused on expanding 
employment, entrepreneurship and education, Ramlan said 
Thailand was not doing enough to match development efforts. 
He cited as an example roads built on the Malaysian side of 
the border, which connect to bridges linking the two 
countries, but which abruptly end because none of the road 
work had been done on the Thai side. 
 
¶6.   (SBU)   Ramlan expressed regret at the Philippines' 
Supreme Court decision to obstruct the recent peace accord, 
but added Malaysia remains committed to being part of the 
international monitoring team in Mindanao.  He urged the USG 
to "nudge" the Philippines toward comprehensive disarmament, 
adding that accepting ancestral domain is the key to 
advancing the peace process. 
 
¶7.  (SBU)   Luse mentioned that he was preparing a report to 
the Senate Foreign Relations Committee on refugee cases and 
that he would be providing detailed information to Malaysian 
Immigration Enforcement officials with whom he had met. 
Without addressing refugee concerns, Ramlan said there are 
millions of illegal immigrants in Malaysia.  The GOM, he 
said, is stepping up its efforts with the Philippines to 
properly identify immigrants.  Luse acknowledged that 
Malaysia was a transit point for immigration to the U.S., 
that there was a pull factor at work, and added that the U.S. 
sought to encourage legal immigration with proper 
documentation.  Ramlan sought to assure that, in the 
meantime, deportations are being conducted humanely.  Ramlan 
added that Malaysia had nothing to gain from instability in 
Indonesia, noting that, from his vantage, a worst case would 
be to have a massive influx of immigrants from Indonesia.  He 
alluded to economic policies - such as encouraging Malaysia 
investors to start palm oil plantations in Aceh - designed to 
minimize such a risk. 
 
SEARCCT 
------- 
 
¶8.   (SBU)   Mr. Luse met with Ambassador Dato' Md. Hussin 
Nayan, Director General of the Southeast Asia Center for 
Regional Counter Terrorism on August 29.  Hussin, who is 
widely expected to be transferred to his next posting in the 
coming months, gave an overview of SEARCCT's strengths and 
weaknesses.  At its inception in 2003, Hussin acknowledged, 
not much thought was given to the strategic direction of 
SEARCCT.  The focus, by default, has been to provide 
CT-related capacity-building for GOM front-line officers. 
This group - comprised mainly of Police Special Branch, 
military intelligence, hazardous materials and crisis 
response personnel - numbers around 100, according to Hussin. 
 Five years in, SEARCCT has succeeded, he suggested, in 
bringing the GOM's front-line officers up to international 
standards. 
 
¶9.  (SBU)  When asked by Luse about the level of the Center's 
engagement with other countries in the region, Hussin 
admitted that SEARCCT has not made much headway in developing 
its regional role, citing differences in understanding of the 
nature of the CT problem in each country.  Luse asked Hussin 
if he were familiar with the work and reports of the 
International Crisis Group.  Hussin said that while he 
thought ICG's analyses were sound, its recommendations were, 
in his view, overly driven "by international ideology and not 
sufficiently concerned with local issues."  He acknowledged, 
however, that for its own part, SEARCCT had not done much to 
raise public awareness or to advance research in the field - 
two other elements of its mission statement.  On a more 
positive note, there appears to be growing awareness within 
the GOM of SEARCCT's shortcomings.  Hussin mentioned that he 
recently attended a four-hour brain-storming session on the 
future of the organization.  He also pointed to some recent 
SEARCCT firsts: a public program featuring former French 
Inspector General of Police Jean-Francois Clair; preliminary 
research on aviation security; and a pilot project at one 
local university to determine youth attitudes about 
terrorism. 
 
¶10.  (U)  Mr. Luse has approved this message. 
 
KEITH