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RUEAWJA/DEPT OF JUSTICE WASHDC
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RUEHUL/AMEMBASSY SEOUL 4030

UNCLAS SECTION 01 OF 08 SINGAPORE 000996 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE PASS USTR FOR AUSTR BWEISEL, JJENSEN, JMCHALE, VESPINEL, 
AND AMATTICE 
COMMERCE FOR JBAKER 
FWS FOR TVANNORMAN 
USDA/FAS FOR OSTA, OCRA, ONA 
 
E.O. 12958: N/A 
TAGS: ETRD EFIN EINV ECPS SENV EAGR KTEX KIPR ECON SN
SUBJECT: FTA AT YEAR THREE - ZEROING IN ON COMMITMENTS 
 
REF: A) 06 Singapore 1119 B) Singapore 371 
 
¶1.  (SBU) Summary/Action Items:  Assistant U.S. Trade 
Representative Barbara Weisel singled out Singapore's continued 
failure to fulfill its telecom commitments as the USG's top 
priority during the third annual review of the U.S.-Singapore 
Free Trade Agreement (FTA) held in Singapore May 11.  While 
applauding FTA implementation generally so far and the 
substantial increases in trade since the FTA came into effect in 
January 2004, she expressed concern that the enormous benefits 
of the FTA for both economies might be overshadowed by 
increasing public scrutiny in the United States of certain 
outstanding implementation issues.  The review agenda focused 
both on implementation of the existing FTA and possible future 
programs, including telecommunications, intellectual property 
rights (IPR), environmental cooperation, imports of U.S. beef 
and chicken products, gas sector liberalization, market access 
for goods (tariff acceleration, textiles, harmonized system 
revisions, etc.), a regional FTA exploratory working group, 
pharmaceuticals, financial and legal services, and competition. 
AUSTR Weisel and Ministry of Trade and Industry (MTI) Deputy 
Secretary LOH Wai Keong led the respective delegations.  The USG 
 
SIPDIS 
and GOS agreed to following action items: 
 
-- Telecom:  The GOS will provide a list of those companies that 
have already begun building out to SingTel's multiple local 
exchanges, and include specifics related to their 
interconnection status. 
 
-- Intellectual Property:  The USG and GOS will convene a 
digital video conference (DVC) to continue their discussions 
related to Singapore's possible accession to the Anti- 
Counterfeiting Trade Agreement (ACTA) and enforcement of 
simulcasting provisions under the Copyright Act. 
 
The USG will provide a letter to clarify where it believes 
discrepancies exist between U.S. and Singapore law governing 
exemptions for sound rebroadcasts on the Internet. 
 
The GOS will meet with the Business Software Alliance (BSA) to 
assess whether the lack of whistleblower protections has 
affected its members' ability to protect their IP. 
 
-- Environment:  The USG and GOS have scheduled two DVCs to help 
prepare the second Plan of Action (POA) prior to the biennial 
review of bilateral cooperation on the environment tentatively 
scheduled for fall 2007 in Singapore. 
 
Illegal Logging:  Both sides agreed to exchange pointQof-contact 
information for illegal logging issues. 
 
-- Agriculture:  The GOS agreed to encourage its officials to 
meet with USDA technical experts at the earliest possible 
opportunity to continue the dialogue concerning market access 
for bone-in cuts of U.S. beef and sanitary standards for poultry 
meat. 
 
-- Tariff Acceleration:  The USG will provide an unclassified 
version of the International Trade Commission's (ITC) report 
concerning Singapore's requests, if available. 
 
-- Textile Tariff Preference Level (TPL):  The GOS will submit 
additional information related to its TPL request (Note:  The 
USG emphasized that it could not commit to additional 
consideration of this matter.  End note.) 
 
-- Textile Short-Supply Request:  The USG will confirm in 
writing that it approved two (not one) short-supply requests in 
July 2006 via an exchange of letters between USTR Schwab and 
Minister for Trade and Industry LIM Hng Kiang. 
 
-- Harmonized System of Tariffs (HS2007):  The GOS will provide 
a report to the USG highlighting potential issues related to 
possible transposition errors and recommended solutions to 
resolve them. 
 
The USG will provide a copy of its revised tariff schedule. 
 
SINGAPORE 00000996  002 OF 008 
 
 
 
The USG will inform the GOS when it is prepared to begin 
implementation of the revised HS2007, based on coordination with 
other ASEAN countries. 
 
-- Exploratory Working Group on Regional FTAs:  The USG and GOS 
agreed to establish an exploratory working group to discuss the 
future of regional FTAs. 
 
-- Pharmaceuticals:  The GOS will provide additional information 
about Singapore's Standard Drug List (SDL) approval process. 
 
-- Financial Services:  The GOS will provide an update 
concerning plans to expand credit bureau access and membership. 
 
The GOS will provide a response to claims made by U.S. industry 
that credit cards issued by local branches of foreign banks 
cannot be used to obtain cash from ATM machines. 
 
-- Legal Services:  The GOS will provide an update on strategies 
for liberalizing the legal services sector after it has 
completed its review of several proposals in the next few 
months. 
 
End Summary/Action Items. 
 
FTA Benefits and Levels of Commitment 
------------------------------------- 
 
¶2.  (U) AUSTR Weisel and DepSec Loh agreed that overall 
implementation of the FTA in its third year continued to proceed 
smoothly, with a minimum of difficult issues and substantial 
benefits for both economies.  AUSTR Weisel cautioned, however, 
that recent U.S. media attention on Singapore in areas such as 
environmental protection and cooperation -- as well as the 
potential for heightened scrutiny of its record on IPR 
enforcement, enhancing competition, and the screening of 
transshipped cargo -- could potentially overshadow the enormous 
gains achieved thus far.  She noted that these news reports 
questioned Singapore's commitment to fulfilling certain FTA 
obligations and that the U.S.-Singapore trade relationship could 
suffer damage should these issues receive wider coverage. 
Singapore and the United States needed to be mindful of how they 
resolved outstanding trade issues, especially as the debate in 
Washington over the renewal of the President's Trade Promotion 
Authority intensified.  DepSec Loh said that Singapore was 
equally concerned about these press reports.  He stressed that 
the GOS wanted to work with the USG and ASEAN to combat illegal 
logging.  He cited Singapore's discussion of the regional haze 
issue at the United Nations in 2006 as an example of how it was 
taking a leading role in resolving transnational environmental 
issues. 
 
Telecom 
------- 
 
-- Reasonable access to "last mile" leased lines (USG) 
 
¶3.  (SBU) AUSTR Weisel noted that our number-one FTA 
implementation issue with Singapore was its continued failure to 
fulfill obligations to offer U.S. and other facility-based 
operators (FBOs) reasonable access to dominant carrier SingTel's 
leased lines.  She asked the GOS to reconsider its 2006 decision 
that allowed SingTel to deny competitors reasonable access to 
leased capacity at tandem exchanges (see below).  This request 
was all the more urgent in light of SingTel's June 2006 
announcement that it would close 12 of its 27 local exchanges at 
some unspecified time in the future, which had effectively put 
FBOs' investment plans on hold.  The Infocomm Development 
Authority (IDA) responded that it was still assessing whether to 
revise the required prior notification period SingTel must 
provide before closing a local exchange from six to eighteen 
months. 
 
¶4.  (SBU) AUSTR Weisel emphasized that best solution was for the 
GOS to permit high-speed tandem access (i.e., access to the 
dominant carriers' leased lines at economically efficient points 
 
SINGAPORE 00000996  003 OF 008 
 
 
of aggregation).  In doing so, the GOS could resolve the litany 
of obstacles SingTel had introduced to stymie competitors' 
business plans -- some of which dated as far back as December 
2003 when IDA first designated "last mile" access as a 
wholesale, regulated service.  IDA countered that the current 
regulatory environment provided adequate provisions for 
reasonable access.  Although it could not confirm whether any 
FBOs had taken advantage of its stated policy objective to 
encourage build-out to SingTel's multiple local exchanges, IDA 
offered to provide a list to the USG of those companies that it 
thought had already begun doing so, to include specifics related 
to their interconnection status. 
 
¶5.  (SBU) AUSTR Weisel questioned Singapore's commitment to 
liberalizing its telecom sector.  In the absence of a vigorous 
regulatory response to SingTel's defensive actions, she worried 
that Singapore's track record in the telecom sector would 
constitute another issue "lurking beneath the surface" that 
might come to light under scrutiny by U.S. media or lawmakers. 
IDA argued that it was fully committed to increasing competition 
in the telecom market and "still very committed" to the FTA and 
"very watchful" of any impediments, which it would endeavor to 
remove in accordance with Singapore's regulatory process.  AUSTR 
Weisel said that the USG did not question the integrity of the 
regulatory process or IDA's commitment to it, but that SingTel 
appeared to be doing its utmost to thwart GOS implementation of 
this key FTA commitment.  DepSec Loh noted that both sides would 
need to continue their dialogue on this issue. 
 
Intellectual Property 
--------------------- 
 
-- Anti-Counterfeiting Trade Agreement (ACTA) (USG) 
-- Simulcasting: Exemptions for Sound Rebroadcasts on the 
Internet (USG) 
-- Penalties for Copyright Act (136.3A) violations (USG) 
-- Whistleblower protections (USG) 
-- Exemptions for circumvention of technological access controls 
(e.g. lost key codes for computer activation) (USG) 
 
¶6.  (SBU) AUSTR Weisel expressed the USG's desire to conclude an 
ACTA with Singapore.  An ACTA would enhance existing IPR 
protections under the FTA and establish new standards that 
better addressed digital applications.  The Ministry of Law 
representative responded that the GOS had held several 
consultations with the USG and was still assessing what its 
obligations would be under the ACTA.  It recognized that the 
ACTA had been intentionally drafted in broad terms, but still 
required more specifics before it could commit.  MinLaw did not 
foresee difficulty agreeing to the ACTA if the GOS' obligations 
would be similar to those in the FTA, but said that provisions 
beyond that could prove problematic.  Both sides agreed that 
USTR and the Intellectual Property Office of Singapore (IPOS) 
should convene a digital video conference (DVC) to continue 
discussions of the issue. 
 
¶7.  (SBU) AUSTR Weisel raised U.S. companies' difficulties with 
obtaining royalties from Singapore's government-linked MediaCorp 
for sound rebroadcasts on the Internet.  MinLaw said it had 
concluded that U.S. and Singapore law concerning exemptions for 
simulcasts were "fairly compatible."  It asked the USG to 
provide a letter of clarification to determine where 
discrepancies, if any, existed.  The GOS could not direct 
MediaCorp to pay royalties if they were due; rather, U.S. 
companies would have to seek a court settlement.  Both sides 
agreed to discuss the simulcasting issue in the abovementioned 
DVC. 
 
¶8.  (SBU) AUSTR Weisel highlighted a case in 2006 in which the 
penalty levied on a company for illegal software use was 
significantly lower than the amount it would have paid for 
legitimate product and reiterated her request made at the 2006 
FTA review that the GOS consider increasing deterrent penalties 
under Section 136(3A) of the Copyright Act.  MinLaw argued that 
the judge had concluded there were mitigating factors in this 
particular case that warranted the low fine.  AUSTR Weisel 
countered that the issue was less about the money and more about 
 
SINGAPORE 00000996  004 OF 008 
 
 
how Singapore benchmarked itself against international best 
practices.  Although Singapore had one of the strongest IPR 
regime in Asia, it still had considerably higher piracy rates 
than Japan, Australia or the United States.  Stiffer penalties, 
particularly if pegged to the number of infringing copies, would 
offer an excellent opportunity to demonstrate the GOS' 
commitment to strong IP protection, she concluded. 
 
¶9.  (SBU) In response to USG concerns about inadequate 
whistleblower protections for copyright violations (also raised 
at the 2006 FTA review), the GOS said that it would meet (again) 
with the Business Software Alliance (BSA) to assess how this 
issue affected its members' ability to protect their IP.  MinLaw 
expressed concern about whether whistleblower protections would 
conform to Singapore's legal tradition, which allowed the 
accused to face his accuser in court. 
 
¶10.  (SBU) In response to AUSTR Weisel's questioning of a 
proposed exemption under Singapore's Copyright (Excluded Works) 
Order 2007 for lost key codes used for activating computer 
programs, MinLaw said that it had based this provision on U.S. 
copyright law.  It offered to discuss USG concerns further, 
perhaps in the IPR DVC. 
 
Environmental Cooperation 
------------------------- 
 
-- Combating illegal logging (USG) 
-- Biennial review of environmental cooperation (USG/GOS) 
-- Arowana Dragonfish (GOS) 
 
¶11.  (SBU) AUSTR Weisel reiterated the importance of enhanced 
bilateral environmental cooperation, especially given the 
heightened U.S. media attention to Singapore's record.  She 
called for continued dialogue on combating illegal logging, 
including Ramin timber.  She noted that, following on the U.S.- 
Indonesia  Memorandum of Understanding (MOU) to combat illegal 
logging signed in November 2006, she noted that the USG had had 
received positive responses from Indonesia, Malaysia, and Brunei 
in discussions about ways to improve cooperative efforts. 
DepSec Loh welcomed the regional dialogue and said that 
Singapore was prepared to participate, including as co-host with 
the U.S. Forest Service of a regional workshop on Ramin 
scheduled for later this year.  He noted that the GOS shared the 
USG's commitment to environmental cooperation.  Both sides 
agreed to exchange pointQof-contact information on the illegal 
logging issue. 
 
¶12.  (SBU) AUSTR WEISEL highlighted the need to conclude a 
second Plan of Action (POA) before the biennial review of 
bilateral cooperation on the environment, tentatively scheduled 
for September or October 2007 in Singapore.  A Ministry of the 
Environment and Water Resources (MEWR) representative said that 
MEWR and its USG counterparts intended to schedule two DVCs in 
the run-up to the biennial review.  He cited examples of steps 
the GOS had taken under the current POA, including a recent MOU 
signed with the American Water Works Association to facilitate 
technical exchanges.  Singapore also chaired the ASEAN 
Sustainable Cities Working Group, which was scheduled to review 
progress under its Memorandum of Intent (MOI) later this year. 
In response to queries about Singapore's commitment to working 
with the USG to combat vessel pollution, DepSec Loh asserted 
that the GOS had taken action against domestic violators and was 
also engaged in regional efforts to address this problem. 
 
¶13.  (SBU) GOS officials expressed frustration with the USG's 
"inflexibility" in accommodating its request to allow imports of 
Arowana Dragonfish into the United States, first raised at last 
year's review.  They argued that Singapore's proposal offered a 
good balance between trade and conservation, in particular given 
that Singapore lacked any wild population of Arowana.  OES/ENV 
officer explained that U.S. regulations governing trade in 
endangered species -- including that such trade must enhance the 
species in the wild -- made it extremely difficult to move 
forward on this issue.  The GOS said that it had not undertaken 
any efforts to protect wild populations regionally, but noted 
that Malaysia was also interested in exporting Arowana.  The USG 
 
SINGAPORE 00000996  005 OF 008 
 
 
delegation said it would welcome further discussions with the 
GOS about potential regional plans, but made no commitments.  It 
noted that Washington would be extremely reluctant to revise its 
policies pertaining to trade in endangered species. 
 
Agriculture 
----------- 
 
-- Imports of bone-in cuts of U.S. beef and offal (USG) 
-- Microbial standards for poultry (USG) 
 
¶14.  (SBU) AUSTR Weisel emphasized the importance to the 
President and Congress of beef market access based on OIE (World 
Organization for Animal Health) guidelines.  The Agriculture 
Counselor thanked the GOS for its measured approach to 
facilitating imports of boneless cuts of U.S. beef, which 
resumed in January 2006.  He asked that the Agri-Food Veterinary 
Authority (AVA) move expeditiously to lift the ban on bone-in 
beef and variety meats following the OIE's anticipated 
classification of the United States as a "controlled-risk" 
country for BSE (Bovine Spongiform Encephalopathy or mad cow 
disease), and based on the extremely low prevalence of BSE in 
the United States.  (Note: the OIE unanimously approved the 
controlled risk classification for the United States during its 
May 20-23 General Assembly.  End Note.)  AUSTR Weisel noted that 
lifting the remaining import restrictions on U.S. beef was a top 
priority for the President.  He had engaged leaders of several 
countries in the region on this issue, and they had indicated 
they would move quickly to resume imports of U.S. beef following 
the OIE decision.  GOS officials noted that OIE guidelines were 
not binding.  They were open to allowing imports of bone-in 
beef, but cautioned that this decision would require buy-in from 
all constituents, including consumers.  They doubted any further 
market opening would occur before the President's expected visit 
in September to attend the U.S.-ASEAN Summit.  DepSec Loh said 
he would convey to AVA (which was not present) the need to meet 
with USDA technical experts at the earliest possible opportunity 
to continue our dialogue. 
 
¶15.  (SBU) The Agriculture Counselor noted that Singapore's zero 
tolerance for Salmonella Enteriditis (SE) and low tolerances for 
Staph Aureus on raw poultry were not scientifically justified 
and had resulted in the rejection of U.S. poultry shipments.  He 
asked the GOS to reconsider its overly restrictive policies and 
expressed his hope that AVA's current assessment of 
international standards and best practices would lead it to a 
more flexible and science-based approach.  DepSec Loh said he 
would communicate these concerns to AVA and deferred to our 
respective technical experts to determine next steps. 
 
Energy Sector Liberalization 
---------------------------- 
 
-- Intergen: Access to Electrical Power Generation Market (USG) 
 
¶16.  (SBU) AUSTR Weisel urged the GOS to move quickly to 
liberalize its gas sector and to resolve longstanding issues 
that had prevented U.S. energy company Intergen from entering 
the market as Singapore's first independent electricity 
producer.  (Note:  Two government-linked companies -- Gas Supply 
and PowerGas -- have been engaged in arbitration since 2004 that 
prevents third-party access to a section of pipeline that 
carries natural gas to Singapore from Indonesia.  End note.) 
DepSec Loh said that the GOS was working to resolve this 
problem.  He expected Parliament to pass an amended Gas Act that 
would pave the way for new market entrants after a second 
reading May 21, and for the legislation to come into force in 
June.  (Note:  As anticipated, Parliament approved the Gas Act 
May 21.  End note.)  The GOS recognized the need to enhance 
market access in the gas sector to ensure alternative supplies, 
and MTI Minister Lim had met with Intergen's CEO on several 
occasions to assure him of the GOS' support. 
 
¶17.  (SBU) AUSTR Weisel highlighted the tight deadline for 
Intergen, given that the Indonesian government had indicated it 
would terminate its supply contract with the company in June if 
it had not yet finalized the transport of its contracted gas. 
 
SINGAPORE 00000996  006 OF 008 
 
 
She expressed her concern that one or both of the abovementioned 
government-linked companies might seek legal action after the 
Gas Act took effect to prevent Intergen from accessing the 
disputed pipeline.  She asked if the GOS be was prepared to deny 
a request to stay the decision if this were the case.  DepSec 
Loh responded that the GOS was committed "in spirit" to an open- 
access regime for gas and that it would work to address any 
problems in the market. 
 
Market Access 
------------- 
 
-- Tariff acceleration process: polycarbonates and peanuts (GOS) 
-- Textiles (GOS) 
   - request for improved TPL 
   - status of "short supply" request 
-- HS2007 changes (GOS) 
-- Diagonal Cumulation (GOS) 
-- Regional FTA exploratory group (USG/GOS) 
-- Customs Administration: reduced record-keeping periods (GOS) 
 
¶18.  (SBU) Following up on Singapore's requests made at the 
March 2006 second annual review, AUSTR Weisel said that the USG 
was unable to agree to accelerated elimination of tariffs on 
certain polycarbonates (HS3907.40.00) and increases in Tariff 
Rate Quotas (TRQs) for peanuts (HS2008.11).  She explained that 
in public comments solicited via a Federal Register Notice 
issued in August 2006, U.S. industry expressed strong opposition 
to granting these requests, in part due to declining revenues 
for these products domestically.  According to the International 
Trade Commission (ITC), which issued its findings in early 2007, 
duties incurred by Singapore shippers of polycarbonates to the 
United States were lower than for other countries. 
Additionally, the trade balance had shifted in favor of 
Singapore since the FTA came into effect, making it the largest 
exporter of polycarbonates to the United States.  For peanuts, 
ITC questioned why Singapore had made this request since it had 
significant excess capacity under both its TRQ and global 
quotas.  AUSTR Weisel indicated that she would provide an 
unclassified version of the ITC report if one were available. 
 
SIPDIS 
 
 
¶19.  (SBU) Concerning Singapore's proposed increase of its 
textile tariff preference level (TPL) -- also raised at the 2006 
FTA review -- AUSTR Weisel said that the USG could not agree to 
this request.  She noted that Congress had indicated it would 
not approve any more FTAs with TPLs, given the domestic 
sensitivities in the textile and apparel industries.  The GOS 
stressed that the TPL increase was a key issue.  AUSTR Weisel 
said it would be useful if the GOS could submit additional 
information concerning this request and related issues in 
writing, but did not commit to additional USG consideration of 
this matter.  With regard to a textile short-supply request that 
the GOS believed was still outstanding, AUSTR Weisel agreed to 
provide a letter to confirm that the USG had in fact approved 
both this and another short-supply request in July 2006 via an 
exchange of letters between USTR Schwab and MTI Minister Lim. 
 
¶20.  (SBU) The Joint Committee noted that both governments had 
completed transposing the FTA's Goods-Specific Rules to 
incorporate changes to the harmonized system of tariffs 
("HS2007").  MTI representatives said that Singapore Customs 
would begin implementation in October 2007.  AUSTR Weisel 
explained that the USG had delayed its implementation to 
coordinate with other ASEAN countries and would inform the GOS 
when it was prepared to begin this process.  MTI said that ASEAN 
had completed its first round of nomenclature revisions and that 
this would not effect the October 2007 deadline.  In response to 
GOS concerns about possible transposition errors, AUSTR Weisel 
noted that the USG had not encountered any problems previously. 
The GOS offered to provide a list of its concerns and 
recommended solutions to resolve them.  The USG agreed to 
provide its revised tariff schedule. 
 
¶21.  (SBU) The GOS inquired about the status of its proposal 
made last year that Singapore, Australia, and the United States 
build on their respective bilateral FTAs to introduce "diagonal 
 
SINGAPORE 00000996  007 OF 008 
 
 
cumulation" to allow accumulated rules of origin for each 
others' products.  AUSTR Weisel said that the USG was engaged in 
a broader discussion about how to advance its FTA agenda in the 
Asia-Pacific region and that diagonal cumulation might serve as 
a possible model in the context of the proposed Free Trade Area 
of the Asia-Pacific (FTAAP).  She noted that, according to U.S. 
rules, a diagonal cumulation provision could not be appended to 
our existing FTAs with Australia and Singapore, but would 
require negotiation of new agreements subject to TPA approval. 
The USG could not accommodate Singapore's request to establish a 
technical working group to assess the diagonal cumulation 
concept, but might be willing to convene an exploratory working 
group to discuss the future of regional FTAs, including the P-4 
FTA between Singapore, New Zealand, Chile, and Brunei.  DepSec 
Loh said that the GOS would support formation of an exploratory 
working group. 
 
¶22.  (SBU) With regard to Singapore's request that the USG 
reduce the period required for record-keeping of import and 
export-related documentation from five to three years, AUSTR 
Weisel explained that this was a statutory obligation under the 
Customs Act and would therefore be difficult to revise, 
especially given the current security environment. 
 
Pharmaceuticals 
--------------- 
 
-- Standard Drug List (SDL) transparency (USG) 
 
¶23.  (SBU) AUSTR Weisel expressed dissatisfaction with the 
Ministry of Health's response to issues raised by U.S. industry 
during the Special 301 process concerning the lack of clear 
procedures for getting pharmaceutical products included in 
Singapore's SDL (ref B).  She stressed that MOH's explanation 
fell short of general transparency provisions in the FTA. 
DepSec Loh agreed to provide additional information to help the 
USG better understand the SDL approval process. 
 
Medical Products Working Group 
------------------------------ 
 
¶24.  (SBU) AUSTR Weisel noted that the U.S. Food and Drug 
Administration and the Health Services Authority (HSA) enjoyed 
excellent and growing cooperation in areas such as information 
exchange on product recalls and safety issues.  She looked 
forward to broader engagement going forward, and to the visit to 
Singapore by FDA Administrator von Eschenbach in October 2007. 
 
Financial Services 
------------------ 
 
-- Credit Bureau Access (USG) 
-- ATM/credit card access (USG) 
 
¶25.  (SBU) Following up on a USG request raised at the 2006 FTA 
review to expand access to Singapore's credit bureaus, AUSTR 
Weisel said she was encouraged to learn that the first 
commercial credit company not regulated by the Monetary 
Authority of Singapore (MAS) would soon be granted membership in 
Credit Bureau (Singapore) Pte Ltd.  DepSec Loh said he would ask 
MAS (which was not present) to provide an update about when this 
process would be completed and to discuss any plans to expand 
membership more broadly.  He would also ask MAS to respond to 
claims made by U.S. industry that credit cards issued by local 
branches of foreign banks could not be used to obtain cash from 
ATM machines (whereas credit cards issued by foreign branches of 
the same banks could be used). 
 
Legal Services 
-------------- 
 
-- Liberalizing legal services (USG) 
 
¶26.  (SBU) AUSTR Weisel urged Singapore to further liberalize 
its legal services sector in line with similar efforts being 
undertaken for other service industries.  DepSec Loh said that 
MinLaw would provide the USG with an update after it had 
 
SINGAPORE 00000996  008 OF 008 
 
 
completed its review of several proposals in the next few 
months. 
 
Competition 
----------- 
 
-- Expansion of Competition Act (USG) 
 
¶27.  (SBU) AUSTR Weisel inquired whether Singapore was reviewing 
sectors exempted from the new Competition Act such as telecom, 
media, and financial services.  DepSec Loh noted that separate 
competition codes governed these "carved-out" sectors and that 
the government was currently focused on implementing the final 
phase of the Competition Act concerning mergers and 
acquisitions, which will come into effect in July 2007.  He 
claimed that initial phases of the Competition Act had been well 
received by U.S. companies. 
 
¶28.  (U) AUSTR Weisel and other members of the U.S. delegation 
cleared this message. 
 
HERBOLD