VZCZCXYZ0000
RR RUEHWEB

DE RUEHBD #0024/01 0290826
ZNY EEEEE ZZH
R 290826Z JAN 10
FM AMEMBASSY BANDAR SERI BEGAWAN
TO RUEHC/SECSTATE WASHDC 4775
INFO RUEHGP/AMEMBASSY SINGAPORE 3585

UNCLAS E F T O BANDAR SERI BEGAWAN 000024 
 
SENSITIVE 
NOFORN 
 
SIPDIS 
 
STATE PASS FOR EAP/MTS/COPPOLAMG 
STATE PASS USTR/EHLERSK 
BANGKOK FOR FCS/NESSJ 
SINGAPORE FOR DAO/SEABAUGHHK 
 
E.O. 12958: N/A 
TAGS: PREL PGOV USTR KIPR KINR ECON BX
SUBJECT: RAYTHEON'S RECENT VISIT AND RUMBLINGS FROM THE 
MINISTRY OF DEFENSE 
 
SUMMARY 
-------- 
 
¶1. (SBU/NF) The Raytheon team recently briefed the Ambassador 
about a recent turn of events where Deputy Minister of 
Defense Pehin Yasmin revived a pet project, developing and 
building Brunei's National Modeling and Simulation Center, 
that a subordinate of his, Ministry of Defense Permanent 
Secretary Dato Mustapha had derailed while Yasmin was out ill 
for several months. Raytheon reported being issued a short 
fuse deadline from Pehin Yasmin during their meetings to sign 
an agreement within the next four weeks.  They were 
instructed to finalize negotiations and move forward with 
commencing this important project for the Government of 
Brunei (GOB). Raytheon further elaborated that this directive 
came, during their meeting with defense officials, on the 
heels of a heated exchange between Pehin Yasmin and Dato 
Mustapha regarding contract negotiations.  During his 
one-on-one private dinner with the Ambassador, Pehin Yasmin 
praised both the Ambassador and the U.S. Mission as being one 
of the most active and engaged diplomatic missions to ever 
serve in Brunei.  Pehin Yasmin also discussed his rumored 
upcoming possible retirement, assured the Ambassador the 
Raytheon deal would get done and shared some cautionary words 
about the conservative Brunei Muslim community.  The apparent 
home stretch indicators from Raytheon and the Ministry of 
Defense is welcome news for both parties.  However, negative 
comments regarding religious freedom by a conservative 
element in the Muslim community, as noted by Pehin Yasmin, 
corroborates Ambassador's concerns regarding the true status 
of intra and inter faith relations. End Summary. 
 
RAYTHEON, WE HAVE LIFT OFF (ALMOST) 
---------------------------------- 
 
¶2. (SBU/NF) The Ambassador met with Raytheon Corporation 
executives Ray Corrigan (Brunei Country Manager), and Matthew 
Murray (Director of Global Strategy and Solutions) after 
their series of meetings held with the Brunei Ministry of 
Defense (MOD).  Months of silence from the MOD followed the 
sour turn of events last July when the MOD presented Raytheon 
with an almost impossible list of demands to reach any 
contractual agreement to build and develop a National 
Modeling and Simulation Center.  This all changed for the 
better during Raytheon's most recent visit.  Both Ray and 
Matt expressed genuine excitement and belief that the deal, 
and more importantly the MOD, was back on track to bring 
negotiations to a close and proceed with this important 
project. 
 
¶3. (SBU/NF) Raytheon officials reported on their visit with 
the MOD, which included a tour of the newly constructed and 
completed seven-story Knowledge Hub at Anggerek Desa.  This 
is the second phase of three for the "iCentre" being 
developed by the Brunei Economic Development Board (BEDB). 
The top two floors to be occupied by the MOD are the 
envisioned location for the Raytheon designed Modeling 
Center.  The building reportedly cost B$4.8 million and is 
the first "green" building in Brunei with partial solar 
power, motion sensor lighting and other "green" initiatives. 
During the tour Pehin Yasmin expressed concern that none of 
the committed occupants had yet begun the move in process. 
TelBru and the University of Brunei both have floors booked 
along with other commercial investors.  According to the 
Raytheon team, with ongoing efforts of the MOD to gain 
approval for His Majesty the Sultan of Brunei to officiate 
the opening ceremony, Pehin Yasmin repeatedly complained that 
His Majesty would not cut any ribbon on an empty building. 
 
¶4. (SBU/NF) In a subsequent private meeting with Pehin 
Yasmin and Dato Mustapha, the Raytheon team questioned again 
why on going negotiations had stalled and if there was any 
hope of reviving the deal for the modeling center.  Raytheon 
told the Ambassador that when Pehin discovered, evidently for 
the first time, the massive concessions Raytheon had offered 
to meet the GOB's demands, he became visibly upset with Dato 
Mustapha.  Dato Mustapha had not yet shared those concessions 
with Pehin Yasmin as he was still locking down a technical 
consultant prior to discussing further any terms and 
conditions for such an agreement.  Pehin proceeded to 
verbally berate him about the delays and stove piping of 
information eventually switching to Malay further driving 
home his displeasure all in front of the Raytheon team.  In 
the end Pehin Yasmin insisted that Dato Mustapha and Raytheon 
 
expedite the process and requested a finalized agreement for 
signature by both parties within four weeks time. 
 
REMINISCING WITH DEPUTY MINISTER OF DEFENSE PEHIN YASMIN 
--------------------------------------------- ---- 
 
¶5. (SBU/NF) Ambassador and Pehin Yasmin shared a private 
one-on-one dinner for almost two hours, covering a wide range 
of topics.  Pehin was extremely complimentary with regards to 
the excellent performance of the U.S. Mission and in 
particular the Ambassador's willingness to take on tough 
issues in the public forum such as Intellectual Property 
Rights, Trafficking in Persons and Religious Freedom.  Pehin 
said that when His Majesty the Sultan speaks of the 
diplomatic corps, he often refers directly to the U.S. 
Ambassador as the most active representative of the diplomats 
serving in Brunei.  He did say that he expects, but can't yet 
confirm, to be leaving in May when the GOB reviews all the 
ministerial level positions for rotation.  More importantly, 
he discussed the rumor that Dato Mustapha has a good chance 
of ascending to Deputy Minister of Defense as his successor. 
Pehin assured the Ambassador that if the rumors of his 
retirement turned out to be true, he would make sure the 
Raytheon project was locked in before he left. 
 
¶6. (SBU/NF) As the conversation progressed, the Ambassador 
asked Pehin for any advice on how to be even more effective 
in his work with the GOB.  Pehin cautioned the Ambassador 
about current feelings within the more conservative elements 
of the Muslim community in Brunei.  He indicated they were 
upset with the Department of State Religious Freedom report 
and the negative light in which Brunei was portrayed.  They 
thought the U.S. Mission should have interceded Brunei's 
behalf to soften the harsh tone with the perceived power his 
position holds.  Pehin further mused that it was ironic that 
they complained about this particular issue as he said, 
"Culturally these people (the bearded ones) do not believe in 
religious freedom.  They only see the Muslim faith as the one 
true recognized faith."  He further elaborated by saying, 
"These people are not only sympathetic to the recent 
religious attacks taking place in Malaysia but would burn 
churches in Brunei if given the opportunity."  However, he 
did reassure the Ambassador though that, "The more tolerant 
Muslims, like myself, and the GOB, are keeping this small 
element in check and that Brunei does not tolerate any level 
of extremism regardless." (Note: The comments from Pehin 
Yasmin on religious freedom are a clear reminder that while 
Brunei enjoys a relatively relaxed environment for other 
religions, there is clearly a potential element not in favor 
of this tolerance.  The continued uphill battle on allowing 
religious teaching in classrooms for non-Muslim faiths 
appears to be some degree of evidence this element exists and 
has at least a degree of influence within the GOB. End Note) 
 
COMMENT 
------- 
 
¶7. We will continue to monitor closely the negotiations 
between the MOD and Raytheon for this agreement.  If the 
signature takes place within the proposed time frame of four 
weeks, the deal will be effectively in full swing prior to 
any potential departure of Pehin Yasmin.  In light of Dato 
Mustapha's public undressing in front of the Raytheon team, 
it will be interesting to see what potential roadblocks he 
throws up either if given early notice of impending ascension 
or vice versa if Pehin Yasmin sees another term assignment. 
It appears critical, regardless of the outcome in upcoming 
ministerial rotations, for Raytheon to get Dato Mustapha 
going the same direction and ensure that all parties have 
access to key information going forward after the loss of 
time and progress thanks to his recent and effective 
stovepipe efforts. End Comment. 
TODD