This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 SINGAPORE 003618 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ETRD EFIN PTER SN
SUBJECT: AMBASSADOR'S CALL ON PM LEE HSIEN LOONG 
 
 
¶1. (SBU)  Summary.  During the Ambassador's introductory 
call, the Ambassador and Prime Minister Lee Hsien Loong 
concurred that U.S.-Singapore relations were very strong and 
agreed to work together to help the relationship blossom 
further.  The Prime Minister expressed his commitment to 
resolving outstanding issues such as the beef ban and his 
hope that the two countries would conclude a Double Taxation 
Agreement and Mutual Legal Assistance Treaty.  The Ambassador 
emphasized the importance of working together on issues such 
as non-proliferation and anti-money 
laundering/counter-terrorist financing, particularly as 
Singapore moved toward licensing casinos.  The Ambassador 
noted the importance to the United States of Singapore's 
continuing support in the Middle East, particularly as we 
enter a new phase of drawing down U.S. troops in Iraq.  The 
Prime Minister responded that terrorism was a global issue 
and that Singapore had to do its part.  He urged the United 
States to remain engaged in Asia.  End summary. 
 
¶2.  (U)  On December 29, immediately after presenting her 
credentials to President S. R. Nathan, Ambassador Herbold 
paid her introductory call upon Prime Minister Lee Hsien 
Loong.  Mr. Herbold and the DCM accompanied the Ambassador; 
the PM's Principal Private Secretary, Lawrence Wong, and 
Ministry of Foreign Affairs officer Aaron Maniam accompanied 
the PM. 
 
Bilateral Relations 
------------------- 
 
¶3. (SBU)  After welcoming Ambassador Herbold and Mr. Herbold 
to Singapore, the Prime Minister stated that the relations 
between Singapore and the United States were excellent, as 
the conclusion of the Strategic Framework Agreement (SFA) in 
July and the conclusion of the Free Trade Agreement (FTA) 
almost two years ago testified.  The United States and 
Singapore see eye-to-eye on many issues, such as the war on 
terrorism and the WTO trade negotiations, and should continue 
to cooperate closely in these areas.  He expressed his desire 
that the relationship blossom further. 
 
¶4.  (SBU)  The Ambassador agreed that relations are very 
strong.  We were doing particularly well in the trade and 
security areas, she continued.  She hoped that remaining 
issues such as Singapore's ban on the import of U.S. beef 
could be resolved and that we could make progress in new 
areas such as a Mutual Legal Assistance Treaty (MLAT).  PM 
Lee noted that Japan had opened its market recently and 
remarked, "we cannot be more unreasonable than Japan.  We 
will look at the issues constructively."  On an MLAT, the PM 
expressed his understanding that we had made some progress in 
this area.  He expressed confidence that the United States 
and Singapore would conclude a Double Taxation Agreement and 
that reaching an MLAT would be part of the process of 
improving our cooperation. 
 
¶5.  (SBU)  In response to the Ambassador's inquiry about 
financial sector reform, the PM stated that Singapore's 
financial sector is among the most open in Asia.  The 
reforms, begun in 1997, had resulted in rationalization and 
consolidation of the sector.  PM Lee, who is also Minister 
for Finance, commented that the FTA had brought U.S. banks 
additional privileges. 
 
International Cooperation 
------------------------- 
 
¶6.  (SBU)  The Ambassador expressed the United States' deep 
appreciation for Singapore's contributions to the Coalition 
in Iraq and support in Afghanistan.  Looking forward, it 
would be very important to continue to have Singapore at our 
side.  The Prime Minister enumerated Singapore's 
contributions of KC-135s, LSTs, and police trainer support. 
"We believe we ought to do our part.  It is a global problem 
- we cannot solve it just in Singapore."  The Ambassador 
noted that we have excellent cooperation here as well, and 
pointed to the early-2006 inauguration of the Megaports pilot 
project as an excellent example. 
 
U.S. Engagement 
--------------- 
 
¶7. (SBU)  The PM took the opportunity to encourage the United 
States to remain engaged in Asia.  The United States needs to 
be part of what is going on in the region.  People and 
investment flows bring influence.  China is very dexterous at 
deploying "soft power," he observed.  ASEAN has dozens of 
forums each year, and China shows up at 25-27 of them.  Each 
time, it presents a little "gift" such as a training offer or 
an exchange program -- not extensive, but showing that it has 
thought about what the recipient needs.  While China is 
winning friends, the United States needs to keep its links 
strong.  PM Lee commented that there is a reservoir of good 
will right now towards the United States.  Fifteen years ago, 
when Singapore and the United States signed the MOU allowing 
U.S. forces to lease facilities in Singapore, others in the 
region kept quiet or complained.  It is different now, argued 
the PM.  When we signed the SFA, they knew that the United 
States was a friend who could be useful.  PM Lee urged the 
United States to take advantage of this. 
 
¶8.  (SBU)  The PM expressed his pleasure that U.S. relations 
with Indonesia were improving.  It was excellent that the USG 
had finally restored ties with the Indonesian Armed Forces. 
The United States has a friend in President Yudhoyono. 
Similarly, we have a friend in Malaysia's new leader, PM Lee 
added. 
 
Casinos 
------- 
 
¶9. (SBU)  Noting her prior service on the Washington State 
Gambling Commission, the Ambassador engaged the PM in a 
discussion of the issue of problem gamblers.  The PM noted 
that, had there been a referendum on the casinos issue, he 
thought 60 to 70 percent of voters would have approved. 
While the most conservative Christians would have opposed, 
most Muslims (while officially opposed) did not feel that 
strongly.  In terms of the market for Singapore's future 
casinos, the PM explained measures to be taken to minimize 
problem gambling by Singaporeans.  The main foreign market 
would be China. 
 
¶10. (SBU)  The Ambassador encouraged further cooperation 
between our two countries on the anti-money 
laundering/countering the financing of terrorism (AML/CFT) 
issue.  Reporting on his own study tour to Las Vegas in July, 
the PM said Singapore had studied how the United States had 
cleaned up its gaming sector.  Singapore was committed to a 
strong AML/CFT regime, but he commented, "we will have to 
learn as we go as we do not have the expertise." 
 
Moving Relations to the Next Stage 
---------------------------------- 
 
¶11. (SBU) In closing, the Ambassador and PM Lee pledged to 
work together to enhance our strong trade and security ties 
and to continue moving forward on law enforcement and 
non-proliferation cooperation. 
HERBOLD