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

C O N F I D E N T I A L SECTION 01 OF 02 SINGAPORE 000085 
 
SIPDIS 
 
E.O. 12958: DECL: 01/07/2016 
TAGS: PREL ECON ETTC EFIN SN
SUBJECT: SENIOR MINISTER GOH ON REGIONAL TRENDS AND OUR 
BILATERAL RELATIONS 
 
 
Classified By: Ambassador Patricia L. Herbold for reasons 1.4 (b) 
 
¶1.  (U) Summary. During the Ambassador's introductory call on 
Senior Minister (SM) Goh Chok Tong, she and the SM reviewed 
the status of the bilateral relationship, explored possible 
areas for future collaboration such as a Mutual Legal 
Assistance Treaty, and discussed a range of issues including 
the war in Iraq, the cross-strait situation, and combating 
radical Islam without alienating broader Muslim communities. 
End summary. 
 
Bilateral Relations 
------------------- 
 
¶2.  (U) The Ambassador, asked for her first impressions of 
Singapore, noted the strength of our bilateral relationship 
and pointed specifically to our close cooperation on trade 
and security affairs.  She thanked the SM in particular for 
Singapore's continued support for the war in Iraq, as well as 
its early and enthusiastic participation in the Proliferation 
Security Initiative (PSI).   The SM concurred with her 
assessment, and highlighted our excellent counter-terrorism 
cooperation.  He noted that he would like to identify new 
areas for us to work on, and asked the Ambassador for 
suggestions on how our relationship could be improved.  The 
Ambassador pointed to a possible Mutual Legal Assistance 
Treaty (MLAT) as an issue she hoped to move forward.  She 
also noted the upcoming second review of the Free Trade 
Agreement (FTA) was an opportunity to move ahead on trade and 
investment, and the SM agreed. 
 
¶3.  (U) The Ambassador also asked about the government's 
plans for addressing money-laundering once casinos open here. 
 The SM agreed that the casinos would be a potential 
money-laundering conduit, and assured the Ambassador that 
Singapore has considered this carefully and "intends to be 
very strict on money-laundering."  He acknowledged that it is 
inevitable that the casinos will increase social problems 
such as compulsive gambling, but said that, with vigilance 
and proper regulation, they could be minimized. 
 
Iraq 
---- 
 
¶4.  (SBU) Ambassador Herbold thanked the Senior Minister for 
Singapore's strong support in Iraq, and expressed the hope 
that it would continue its support as the United States draws 
down its troops and looks to Iraqi forces to take a greater 
role in securing the country.  SM Goh responded by urging the 
United States to stay until Iraq is able to fend for itself 
and to be certain to leave at a time of our own choosing, not 
under populist pressure from home or abroad.  A move to pull 
out prematurely and under pressure would only embolden 
al-Qaeda or the radical Islamists in the region, he said, and 
would be "a disaster for the whole world." 
 
China-Taiwan Dynamics 
--------------------- 
 
¶5.  (C) The Ambassador raised Taiwan President Chen Shui 
Bian's New Year's speech.  SM Goh noted that Chinese 
President Hu and his administration were learning how to 
react to these provocations.  The Chinese now understand that 
strong reactions only stir up Taiwanese nationalism and rally 
people around Chen, the SM said.  The SM compared the 
situation to that of Japanese Prime Minister Koizumi's visits 
to the Yasukuni Shrine -- strong objections from Beijing have 
only made it politically impossible for Koizumi to back down. 
 Beijing now understands these dynamics, and has adopted a 
more nuanced approach to both Koizumi and Chen, he said.  The 
SM noted that this "softer" approach is possible in part 
because President Bush's clear stance against independence is 
comforting to China, and Beijing now has confidence that 
Chen's recklessness will be checked. 
 
Islam in Southeast Asia 
----------------------- 
 
¶6.  (C) Turning to Singapore's relations with Malaysia, SM 
Goh noted that some outstanding issues remain "minor." 
Singapore's main worry, the SM said, was the trend toward 
more religiously conservative societies in the region.  This 
was most advanced in Malaysia, where Malays who a few decades 
ago were quite secular were now increasingly influenced by 
Middle Eastern Islamic thought and becoming increasingly 
devout.  The SM noted that in the past few years the 
political debate in Malaysia has moved from "secularism and 
modernization versus Islam" under Mahathir to the 
opposition's form of Islam versus the Prime Minister's form 
of Islam under Abdullah Badawi.  The Malaysians are now 
working out what role Islam will play in the country's 
political life, he said.  SM noted the same trend toward 
religious conservatism in Indonesia. 
 
¶7. (C) The SM stressed that the changes were not necessarily 
bad, but they did raise the question of what kind of Malaysia 
Singapore would be dealing with 20 years from now.  Even if 
it never strays into radicalism, SM Goh said, an increasingly 
Islamic Malaysia could be a problem.  A conservative Malaysia 
more interested in religion than the kind of economic 
progress it made under Mahathir could have severe 
implications for the Singaporean economy  -- "if they don't 
grow, we don't grow." 
¶8. (C) The SM explained that the Singapore government has 
made a significant effort to ensure that the Malay-Muslim 
minority is not marginalized or alienated.  Malay-Muslims are 
well integrated into Singapore society.  The SM noted, 
however, that many have followed the trend of becoming 
increasingly conservative religiously, and that some tend to 
restrict themselves to their mosque and their Muslim 
community, where they feel most comfortable.  It requires 
conscious effort, in Singapore's case through grassroots 
organizations that get them involved in the community, to 
ensure that Muslims continue to be a part of the broader 
society, he said. 
HERBOLD