VZCZCXRO7721
PP RUEHCHI RUEHDT RUEHNH RUEHPB
DE RUEHGP #0928/01 0811025
ZNR UUUUU ZZH
P 221025Z MAR 06
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC PRIORITY 9276
RUEHRC/USDA FAS WASHDC PRIORITY
INFO RUEHKL/AMEMBASSY KUALA LUMPUR 4017
RUEHKO/AMEMBASSY TOKYO 5295
RUEHUL/AMEMBASSY SEOUL 3827
RUEHME/AMEMBASSY MEXICO 0084
RUEHBJ/AMEMBASSY BEIJING 2137
RUEHIN/AIT TAIPEI 6354
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE

UNCLAS SECTION 01 OF 02 SINGAPORE 000928 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
USDA FAS FOR CMP/DLP, ITP/AAD 
USDA FOR ACTING UNDER SECRETARY LAMBERT, APHIS/IS, FSIS 
 
MANILA FOR APHIS 
USTR FOR AUSTR BWEISEL AND EBRYAN 
 
E.O. 12356: N/A 
TAGS: EAGR ETRD ECON SENV TBIO SN
 
SUBJECT: Singapore To Begin Rejecting U.S. Beef Shipments 
 
REF: A) Singapore 649 B) Hong Kong 1097 
 
¶1.  (U) This is an action request.  Please see para 8. 
 
¶2.  (SBU) Singapore's Agri-Veterinary Authority (AVA) 
informed the Embassy and USDA/FSIS on March 22 that it would 
begin rejecting U.S. beef shipments that contain bone 
fragments for what AVA regards as non-compliance with our 
agreement for boneless beef exports.  In a letter dated 
March 22 to the Ag Counselor and FSIS, Dr. Astrid Yeo, AVA 
Head of the Import-Export Division, said that inspectors had 
detected cases of U.S. beef containing soft bone tissue in 
all six consignments since Singapore reopened its market 
January 17.  Dr. Yeo noted that AVA had brought previous 
lapses in beef export verification (BEV) compliance to 
USDA's attention.  These included a second shipment of 
chilled beef with over 70 defects from a plant 
(Establishment 960A) that had earlier sent shipments with 
similar, but not as extensive, quality problems. 
 
¶3.  (SBU) AVA Deputy CEO Dr. Chew Siang-Thai told Ag 
Counselor that AVA recognized that the bone fragments did 
not represent a food safety problem.  However, the most 
senior officials -- including the CEO -- and their superiors 
in the Ministry of National Development were "seriously 
concerned"  that the apparent inability of packers to ensure 
Singapore received beef without bone fragments indicated of 
a lack of attention to food safety and quality control.  Ag 
Counselor assured Dr. Chew that USDA Food Safety Inspection 
Service inspectors had verified that all food safety-related 
aspects of U.S. plant operations were compliant. 
 
¶4. (SBU) Singapore announced on January 17 that it would 
lift its two-year ban on imports of boneless U.S. beef 
products from animals under 30 months of age.  AVA has 
inspected all shipments -- the first on February 23, and 
five additional shipments on March 2, 15, 16, 20, and 21 
(the latter two referenced in AVA's letter).  AVA found some 
soft bone defects -- although no specified risk materials 
(SRMs) -- in all six initial shipments.  AVA allowed the 
shipments into the local market, but only after first 
destroying all bone-in material.  AVA is especially 
concerned about shipments of frozen beef, which will be more 
difficult to inspect. 
 
¶5.  (SBU) Singapore so far has worked closely and quietly 
with us to manage these quality control issues.  Ag 
Counselor has assured AVA that, as in each identified case 
of non-compliance, USDA and industry have notified the plant 
of the quality defects and stressed the need to comply with 
Singapore's strict requirements.  The Ambassador plans to 
update AVA Chairman KOH Poh Tiong on our ongoing efforts 
during her meeting with him on March 24 (March 23, 
Washington time). 
 
¶6.  (SBU) From USDA's and industry's point of view, the 
presence of soft bone or even small pieces of bone is 
generally considered at most a minor quality defect, one 
that should be addressed, but not lead to rejection of a 
shipment or decertification of a packer solely on this 
basis.  Ag Counselor is working with USDA to draft a formal 
letter to AVA addressing this issue. 
 
Comment and action request 
--------------------------- 
 
¶7.  (SBU) Our credibility as a quality exporter committed to 
meeting the terms of the agreement for reopening the 
Singapore market to U.S beef is on the line.  Singapore does 
not regard the defects as a routine, technical matter.  So 
far, from the Singapore perspective, we have had a 100- 
percent failure rate to comply with our agreement (i.e., 
each of the first six shipments contained bone and the 
"defects" are rising with each shipment).  The issue of bone 
fragments in boneless beef was never raised during the 
negotiations when it might have been most easily resolved. 
We are concerned that a letter from USDA to AVA arguing that 
 
SINGAPORE 00000928  002 OF 002 
 
 
a certain amount of soft bone tissue and bone is 
"inevitable" in boneless cuts of beef will not allay AVA's 
concerns -- in Singapore's mind, we committed to provide 
beef with no bone product in it whatsoever.  This will make 
it difficult to negotiate some level of allowable defects. 
We suggest that USDA redouble its efforts to impress upon 
U.S. packers the need for extremely high quality controls 
during the initial market-reopening phase.  Once our 
credibility is back on a solid footing, we will be in a 
better position to convince Singapore not to decertify 
plants and, eventually, also to allow imports of bone-in 
cuts. 
 
¶8.  (U)  Action requested: please provide updated talking 
points for the Ambassador's use in her March 24 meeting with 
the chairman of AVA.  We will appreciate, in particular, 
points to address to AVA concerning its decision to reject 
future shipments containing bone fragments. 
 
U.S. Beef Shipment Details 
-------------------------- 
 
¶9.  (SBU) 
 
February 23 -  Vacuum-packed chilled deboned beef from 
Establishment 960A.  Of 78 cartons inspected, 6 pieces were 
found to contain soft bone/bone remnants. 
 
March 2 - Air-flown frozen deboned beef from Establishment 
¶19336.  Of 37 cartons inspected, 6 pieces were found to 
contain soft bone/bone remnants. 
 
March 15 - Vacuum-packed chilled deboned beef from 
Establishment 410.  Of 146 cartons inspected, 32 pieces were 
found to contain soft bone/bone remnants. 
 
March 16 - Vacuum-packed chilled deboned beef from 
Establishment 27.  Of 105 cartons inspected, 63 pieces were 
found to contain soft bone/bone remnants. 
 
March 20 - Vacuum-packed chilled deboned beef from 
Establishment 960A.  Of 82 cartons inspected, 73 pieces were 
found to contain soft bone/bone remnants. 
 
March 21 - Vacuum-packed chilled deboned beef from 
Establishment 235.  Of 173 cartons inspected, 107 pieces 
were found to contain soft bone/bone remnants. 
 
HERBOLD