VZCZCXRO3836
RR RUEHCHI RUEHDT RUEHNH RUEHPB
DE RUEHGP #0998/01 0870828
ZNR UUUUU ZZH
R 280828Z MAR 06
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 9345
RUEHRC/USDA FAS WASHDC
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHKL/AMEMBASSY KUALA LUMPUR 4025
RUEHKO/AMEMBASSY TOKYO 5304
RUEHUL/AMEMBASSY SEOUL 3836
RUEHIN/AIT TAIPEI 6356
RUEHHK/AMCONSUL HONG KONG 5976
RUCNARF/ASEAN REGIONAL FORUM COLLECTIVE

UNCLAS SECTION 01 OF 03 SINGAPORE 000998 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
USDA FAS FOR OA, CMP/DLP, ITP/AAD, FSIS, AMS 
USTR FOR AUSTR BWEISEL, EBRYAN, AND JJENSEN 
TOKYO FOR AG MIN COUNSELOR PASS USDA TEAM 
FWS AND OES FOR BCATES 
MANILA FOR APHIS 
 
E.O. 12958: N/A 
TAGS: EAGR KFLU TBIO SENV ETRD ECON SN
 
SUBJECT: AMBASSADOR ADDRESSES BEEF CONCERNS WITH AVA CHAIRMAN 
 
REF:  A) Singapore 0928 B) Singapore 0818 
 
¶1.  (SBU) Summary.  The Ambassador assured Agri-Food and 
Veterinary Authority (AVA) Chairman KOH Poh Tiong and CEO Dr. 
Chua Sin Bin that U.S. beef was safe in a March 24 meeting.  She 
said that Singapore's issues with quality control stemmed from 
differing definitions of what constituted boneless beef under our 
import agreement.  AVA agreed to meet with USDA or industry 
experts currently traveling in the region; the meeting is 
scheduled for March 30.  CEO Chua said that recent outbreaks of 
Avian Influenza (AI) in Malaysia were having an effect on 
Singapore's ability to source certain poultry and duck products. 
Chairman Koh said that AVA needed to do more to encourage 
consumption of liquid eggs to minimize the risk of further 
disruptions to the food supply.  In addition to the Ministry of 
Health-led Indonesian AI Trilateral Project, AVA was exploring a 
similar bilateral animal health-related project in nearby Batam 
where several Singapore companies have invested in a special 
economic zone.  CEO Chua asked for USG support to lift its ban on 
exports of Arowana Dragonfish, an endangered species.  The 
Ambassador called on Singapore to enhance its monitoring of 
illegal Ramin timber shipments, another endangered species.  CEO 
Chua said that Singapore had recently strengthened its 
protections in this area, including stiffer penalties.  End 
summary. 
 
U.S. Beef 
--------- 
 
¶2.  (SBU) During her March 24 courtesy call, the Ambassador 
assured AVA Chairman Koh and CEO Chua that U.S. beef imports were 
safe.  She underscored that the USG took Singapore's concerns 
with quality controls and safety very seriously, and expressed 
her appreciation for the quiet and cooperative manner in which 
AVA had dealt with these issues thus far.  She noted that USDA 
and industry were working closely with U.S. packers to ensure the 
absolute minimum number of defects.  The Ambassador suggested 
that this issue was primarily definitional, i.e., it centered on 
different interpretations of what are "boneless" beef cuts. 
Noting that a team of experts from USDA was currently in the 
region, the Ambassador offered, and Chairman Koh agreed, to 
invite some of them to visit Singapore in order to resolve this 
matter.  She said that industry representatives also had offered 
to meet with AVA.  Chairman Koh said that it was important to 
stay focused on working towards full compliance.  He noted that 
Singapore wanted U.S. beef in its market to enhance the diversity 
of its food supply.  Having the option of offering U.S. beef to 
transiting ships and aircraft would further strengthen 
Singapore's position as a regional food re-supply hub as well as 
offer a wider market for U.S. product, he said; ensuring food 
safety, however, was paramount.  Comment: While AVA officers 
generally accept that the bone fragments do not present a food 
safety risk, Chairman Koh did cite safety as a concern.  End 
comment. 
 
¶3. (SBU) As reported reftel, since Singapore lifted its ban on 
U.S. beef January 17, AVA has identified soft-bone and skeletal 
bone fragments in all six initial consignments.  After the 
Ambassador's meeting, AVA Deputy CEO Dr. CHEW Siang Thai informed 
Agricultural Counselor on March 27 that Singapore had decided 
not/not to reject entire shipments of beef, for now.  AVA will 
instead continue its practice of intensive inspection and piece- 
by-piece rejection.  Following up on the Ambassador's offer, 
three USDA experts now plan travel to Singapore to meet with the 
AVA March 30.  Dr. Chew also agreed to a presentation by U.S. 
Meat Export Federation's Kevin Smith.  These presentations will 
focus on the types of bone fragments the Singaporeans are 
encountering, how the fragents arise in the cutting process, the 
steps industry will take to limit fragment occurrence, and the 
development of defect criteria for boneless beef. 
 
Avian Influenza 
--------------- 
 
¶4.  (U) Asked how its neighbors' problems with AI were affecting 
Singapore, CEO Chua said that AVA's decision to ban poultry 
imports from Malaysia's Perak State following a recent outbreak 
 
SINGAPORE 00000998  002 OF 003 
 
 
there among backyard farms and a bird park affected 80 percent of 
Singapore's normal live duck supply.  Singapore had about a one- 
month supply of locally-slaughtered ducks in cold storage, with 
Malaysia's Johor State and imports from the United States and 
Europe continuing to cover 20 percent of demand, he said.  If the 
ban persisted more than five or six weeks, however, Singapore 
would have to look to the United States and Europe for additional 
supply sources, he explained. 
 
Indonesia - Avian Influenza Trilateral Project 
--------------------------------------------- - 
 
¶5.  (U) CEO Chua said that Singapore was engaging Indonesia on 
several fronts to help it implement its national AI preparedness 
plan, including the Singapore-proposed Avian Influenza Trilateral 
Project in Indonesia's Tangerang Municipality (reftel B).  He 
said that AVA had begun exploring a similar, albeit smaller-scale 
project focused on animal health and safety in nearby Batam 
Island, where many Singapore companies have invested in a Special 
Economic Zone. 
 
Liquid Eggs 
----------- 
 
¶6.  (U) Chairman Koh noted that, in order to help minimize AI's 
ability to disrupt the food supply, AVA needed to do more to 
persuade consumers to switch from fresh to liquid and powdered 
eggs (Singapore's liquid egg consumption, primarily among 
commercial users, is about two percent of total egg consumption 
compared to about 30 percent in the United States).  He observed, 
however, that demand for fresh eggs was fairly price inelastic; 
after AVA banned all imports of Malaysian eggs in response to AI 
outbreaks there in 2004, consumers were willing to pay as much as 
six times more for local and Australian eggs.  Also attending the 
meeting, Ag Counselor expressed his hope that AVA would soon 
approve the U.S.'s first application to import fresh eggs from 
Pennsylvania. 
 
Arowana Dragonfish 
------------------ 
 
¶7.  (U) CEO Chua asked that the USG reconsider its ban on 
Singapore exports of Arowana Dragonfish, an endangered species 
protected under the Convention on International Trade in 
Endangered Species (CITES) and the Environmental Protection Act. 
CEO Chua explained that Singapore had been successful in captive- 
breeding of Arowana and that it exported the fish to many other 
countries (Singapore reportedly has a 25-percent global market 
share for ornamental tropical fish).  Singapore was the first 
country to obtain CITES' certification to farm-raise Arowana, CEO 
Chua said.  AVA was introducing Arowana into Singapore's 
reservoirs (where fishing is prohibited) to develop a domestic 
wild population, and assisting neighboring countries with their 
own conservation efforts, he explained. 
 
Ramin Timber 
------------ 
 
¶8.  (SBU) Noting that the U.S. ban on Arowana imports was one of 
the issues Singapore wanted to discuss at the second annual Free 
Trade Agreement (FTA) review in Washington March 30, the 
Ambassador said that we would similarly raise our request that 
Singapore do more to monitor and intercept illegal shipments of 
Ramin timber, another endangered species.  CEO Chua asserted that 
Singapore was committed to combating trade in endangered species. 
He noted that Singapore had recently enacted new legislation to 
enhance such protections, including substantial increases in 
fines and enhanced authority relevant to transshipped and transit 
cargo (reported septel). 
 
¶9. (SBU) Comment: Post appreciates Washington's assistance in 
arranging the visit of the USDA experts on short notice.  The 
visit should help resolve our beef import issues with Singapore, 
specifically by defining defect criteria in boneless beef cuts to 
help AVA move away from its current zero-tolerance policy.  AVA 
is willing to talk, and has so far worked closely with USDA and 
the Embassy to handle this matter discreetly and professionally. 
 
SINGAPORE 00000998  003 OF 003 
 
 
End comment. 
 
HERBOLD