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C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 000863 
 
SIPDIS 
 
E.O. 12958: DECL: 10/27/2019 
TAGS: OVIP STEINBERG JAMES PREL PGOV PHUM MY
SUBJECT: DEPUTY SECRETARY STEINBERG'S SEPTEMBER 28, 2009 
MEETING WITH MALAYSIAN DEPUTY FOREIGN MINISTER PILLAY 
 
Classified By: Ambassador James R. Keith for reasons 1.4 (b, d). 
 
¶1. (SBU) September 28, 2009; 10:00 a.m.; The Ministry of 
Foreign Affairs; Putrajaya. 
 
¶2. (SBU) Participants: 
 
U.S. 
---- 
The Deputy Secretary 
Ambassador Keith 
Ambassador Joseph DeTrani, Directorate of National 
Intelligence Joseph Donovan, Principal Deputy Assistant 
Secretary of State 
Scot Marciel, Deputy Assistant Secretary of State, EAP 
Derek Mitchell, Principal Deputy Assistant Secretary of 
Defense 
Rear Admiral Joseph Leidig, Joint Chiefs of Staff 
Pamela Park, Special Assistant to the Deputy Secretary 
Jeremy Nathan, Political Officer, U.S. Embassy Kuala Lumpur 
(notetaker) 
 
Malaysia 
-------- 
Deputy Minister of Foreign Affairs A. Kohilan Pillay 
Deborah Tan, North America desk officer (notetaker) 
 
¶3. (C) SUMMARY: In his call on Deputy Foreign Minister 
Pillay, Deputy Secretary Steinberg highlighted the value the 
United States places on its relations with Malaysia and 
Malaysia's role as a key member of ASEAN.  The Deputy urged 
passage of an export control law and encouraged Malaysia to 
take a leadership approach in its capacity as IAEA Board of 
Governors chair in support of IAEA principles.  Noting 
Iranian commercial and financial activity in Malaysia, he 
expressed hope that Malaysia would cooperate with the USG to 
prevent transactions of political concern.  He praised 
Malaysia for its public stance on North Korea,s nuclear 
weapons programs and support for the six-party talks, urging 
an active Malaysian role in support of the international 
community's objectives.  Pillay briefly raised trafficking in 
persons issues and the US-Malaysia Free Trade Agreement (FTA) 
negotiations.(Note:  DFM Pillay, a political appointee with 
little foreign policy experience, was standing in for Foreign 
Minister Anifah and Secretary General Rastam, both of whom 
were in New York for the UNGA session at the time of the 
Deputy's visit. End note).  END SUMMARY. 
 
Nonproliferation 
---------------- 
 
¶4. (C) Deputy Secretary Steinberg opened the September 28 
meeting with Deputy Foreign Minister Pillay by emphasizing 
the importance of international efforts in the 
nonproliferation arena.  He noted that a Malaysian recently 
took over as Chairman of the Board of Governors of the IAEA, 
and that the USG saw a need for Malaysia to take a leadership 
approach.  The Deputy Secretary also expressed hope that the 
NPT review conference in May 2010 would serve to strengthen 
the international community's support of the NPT and the 
IAEA.  He praised Malaysia for its prior comments regarding 
the need for North Korea to relinquish its nuclear weapons 
programs and for its support of the six-party talks.  He 
urged Malaysia to take an active role in support of the 
international community's objectives.  Regarding Iran, the 
Deputy Secretary noted that "this is a critical time" in 
deciding how to deal with Iran's nuclear ambitions, and that 
the October 1 U.S-Iran meeting would provide Iran with an 
opportunity to engage directly with the US and the other 
members of the P5 1.  The key was how Iran chose to respond. 
The Deputy Secretary also emphasized how an Iranian bank 
subsidiary operating in Malaysia was harmful to the 
international effort to restrain Iran's proliferation 
activities and expressed hope that Malaysia would cooperate 
with the USG to prevent Iran from developing nuclear weapons 
and ballistic missiles, which would be destabilizing.  DFM 
Pillay listened to these points but did not respond 
substantively. 
 
ASEAN, Burma 
------------ 
 
¶5. (SBU) The Deputy Secretary noted that the U.S. saw great 
value in a strong ASEAN.  Deputy Assistant Secretary Marciel 
commented that although significant challenges lay ahead for 
ASEAN to become effective in confronting challenges such as 
Burma, they were achievable if Malaysia and other leading 
countries continued to play a proactive role.  The Deputy 
 
KUALA LUMP 00000863  002 OF 002 
 
 
Secretary highlighted that although the U.S. recently 
modified its approach to Burma and was now willing to openly 
engage Burma's junta leaders and move forward, U.S. 
objectives in Burma remained essentially unchanged, focusing 
on supporting human rights and democratic elections. 
Steinberg suggested that a joint message from the U.S. and 
ASEAN stressing the need for political freedom and 
transparent 2010 elections in Burma involving the NLD would 
be very helpful. 
 
An Export Control Law and a Free Trade Agreement 
--------------------------------------------- --- 
 
¶6. (SBU) The Deputy Secretary stressed the importance of a 
Malaysian export control law to deal with current and 
potential problems related to nonproliferation.  DFM Pillay 
acknowledged the need for such a law, but did not provide a 
timeline for action on this legislation.  Touching briefly on 
trade, DFM Pillay stated that Malaysia remained interested in 
a Free Trade Agreement, but still had issues to work out. 
 
Trafficking in Persons 
---------------------- 
 
¶7.  (SBU) Deputy Minister Pillay raised the topic of 
Trafficking in Persons (TIP), stating that Malaysia's biggest 
problems with TIP victims involved people who overstay their 
visas.  The Deputy Secretary commented that the people who 
overstay were often in that position because they were being 
exploited by their employers, who often confiscate their 
passports.  Ambassador Keith stressed that Malaysia's TIP 
policy needs to provide assistance to victims, and not just 
focus on the smugglers.  The Deputy Secretary also emphasized 
the importance of prosecutions, as they send a signal that 
trafficking in persons would not be tolerated. 
 
¶8. (SBU) Deputy Secretary Steinberg cleared this message. 
KEITH