VZCZCXRO3801
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0049/01 0210854
ZNY SSSSS ZZH
O 210854Z JAN 10
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3713
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RUCNDT/USMISSION USUN NEW YORK PRIORITY 1159
RUEHUNV/USMISSION UNVIE VIENNA PRIORITY 0186

S E C R E T SECTION 01 OF 03 KUALA LUMPUR 000049 
 
SIPDIS 
 
FOR EAP/MTS, ISN, PM AND INR 
 
E.O. 12958: DECL: 01/20/2030 
TAGS: PREL KNNP PARM IAEA MNUC PGOV IR MY
SUBJECT: MALAYSIA: MFA VIEWS ON NON-PRO, IAEA, AND EXPORT CONTROL LAW 
 
REF: A. 09 STATE 126209 -- U.S. APPROACH TO NPT CONFERENCE 
     ¶B. 09 STATE 128736 -- NEXT STEPS WITH MALAYSIAN ON 
        PROLIFERATION 
     ¶C. 09 KL 917 -- EINHORN MEETINGS IN KUALA LUMPUR 
     ¶D. 09 KL 977 -- GOM STATEMENT ON IAEA VOTE 
     ¶E. STATE 5003 -- PM A/S MEETING WITH MALAYSIAN 
        AMBASSADOR 
 
Classified By: Political Counselor Brian D. McFeeters for reasons 1.4 b 
 and d. 
 
Summary 
------- 
 
¶1. (S) The DCM met with MFA Deputy Secretary General Zainol 
Abidin Omar on January 15 to convey Ref A talking points and 
to discuss a range of other counter-proliferation and export 
control-related issues (refs A and B).  Referencing special 
information that was provided to the GOM in early-November by 
S/SANAC Einhorn, Zainol said that the GOM was still looking 
into Malaysian companies suspected of illegal transshipment 
activities involving Iran, but otherwise no concrete actions 
had been taken.  DCM urged the GOM to "redouble" its efforts 
in this area.  Zainol advised that his government was still 
deliberating internally the disposition of dual-use 
components and equipment that were seized by Malaysian 
authorities on December 25 from a Middle East-bound vessel. 
Regarding a new Export Control law, Zainol said that it was 
now under near-final review at the Attorney General's office, 
but he offered no timeline on when the bill might be 
presented to parliament.  On the fate of their Ambassador 
(Arshad) to the IAEA, Zainol indicated that naming of a 
successor was a sensitive issue and that it may take several 
weeks (or longer) for a final decision.  Zainol did state 
that, in the interim, Arshad was still Chairman of the IAEA 
Board of Governors.  DCM encouraged the GOM to move quickly 
on a replacement to clear up the "confusion" at the IAEA on 
Arshad's status.  Zainol welcomed the Jan 28 visit by ISN 
acting Assistant Secretary Van Diepen and delegation.  He 
confirmed that the GOM would participate in EXBS-sponsored 
training in March and expressed interest in sending officials 
for additional export control-related training at the 
University of Georgia in April.  DCM briefly raised the 
missing F-5 engines case.  End Summary. 
 
¶2. (C) DCM Rapson and Poloff Nathan met with Ambassador 
Zainol Abidin Omar, the Deputy Secretary General in charge of 
multilateral affairs at MFA on January 15.  (Note: Zainol is 
the no. 5 ranking officer in the MFA after the Foreign 
Minister, two Deputy Ministers and the Secretary General. 
End Note).  Also in attendance from the MFA were Under 
Secretary for non-proliferation Bala Chandra Tharman, 
Principal Assistant Secretary for non-proliferation Shazryll 
Zahiran, and Principal Assistant Secretary for United States 
affairs Muhammad Radzi bin Jamaluddin.  The discussion was 
cordial and went for an hour-plus. 
 
¶3. (S) The DCM recalled Special Advisor for Non-Proliferation 
Einhorn's November 4 meeting with MFA Secretary General 
Rastam (ref C), during which Einhorn provided the MFA a 
special list of companies of concern that were engaging in 
transshipment activities with Iran, and asked for a status 
update on any GOM decisions or actions with respect to the 
listed companies.  Zainol replied "We have requested security 
agencies to initiate their investigations," but added that, 
thus far, "the investigation has not been able to unearth any 
activities that are in contravention to UN resolutions."  The 
DCM emphasized that the U.S. has "strong concerns" about the 
companies listed and their activities, and urged the GOM to 
"redouble" its efforts in this area.  Zainol acknowledged 
this request and said the GOM would "welcome any additional 
information on those companies."  He noted that the Foreign 
Ministry has the inter-agency lead on non-proliferation 
issues, and that bilateral requests for cooperation and 
assistance on these types of issues should be "funneled 
through the MFA." 
 
Update on the Christmas Day Seizure 
----------------------------------- 

¶4. (S) DCM thanked and briefly queried about the status of 
the shipment of dual-usage parts and equipment seized by the 
GOM from a middle east-bound vessel over the Christmas day 
holiday.  Zainol replied that all the information they can 
share has been separately channeled to the relevant U.S. 
agencies.   Zainol did note that they (the GOM) are still 
conducting their internal investigation on whether or not the 
equipment and parts seized were of dual-use concern as the 
USG is alleging.  (Comment: Zainol declined to offer any info 
on current disposition of the seized shipment, although his 
comments clearly implied that the consignment was still under 
GOM control.  Moreover, he provided no indication that the 
GOM would be reaching out to the UN Security Council for 
guidance on evaluation and analysis and handling of the 
seized shipment as had been indicated to us through liaison 
channels.  End comment.) 
 
Export Control Law in Final Stages, but... 
------------------------------------------ 
 
¶5. (C) Zainol confirmed that the GOM "is in the final stages" 
of drafting the export control law bill, and said that the 
draft is currently with the Attorney General's office. 
Zainol did not want to speculate when the AG's office would 
finish its review and when the bill would be presented to 
parliament, given, he said, that there are a range of other 
"urgent" issues on the PM, AG's, and Parliament's plate such 
as review and revision of the  controversial Internal 
Security Act (ISA).  Zainol opined that the process could 
"take some time" as the AG's office needs to consider how an 
export control law would tie into and affect existing laws. 
Zainol concluded by noting that once the proposed bill was 
finalized, it "would be introduced to parliament at the 
appropriate time."  DCM thanked Zainol for this update and 
recalled the high priority both the PM and Foreign Minister 
placed late last year on early passage of the export control 
law.  He noted that the USG stands ready to assist the GOM, 
including through the provision of training and technical 
assistance (see para 8, below). 
 
Van Diepen Delegation Visit 
--------------------------- 
 
¶6. (SBU) The DCM previewed the January 28th visit of ISN 
acting Assistant Secretary Van Diepen and delegation, 
thanking Zainol for agreeing to meet with the A/S and for 
assembling an interagency team on the Malaysian side for that 
meeting at MFA.  The DCM confirmed that we are also seeking 
separate appointments for the delegation at MITI, the 
Attorney General's offices and the PM's office. Zainol said 
he look forward to the discussions with A/S Van Diepen and 
welcomed further engagement with the U.S. on 
non-proliferation and export control issues. 
 
IAEA and the Status of Ambassador Arshad 
---------------------------------------- 
 
¶7. (C) The DCM  asked Zainol for clarification on the status 
of Malaysia's Ambassador to the IAEA (and co-current Chairman 
of the IAEA Board of Governors) Arshad  (Ref D), noting that 
there have been some confusing signals of late emanating from 
various sources about his recall and the naming of a 
successor.  Zainol was coy on providing a direct answer, and 
would only say that "at the moment, we are unable to say 
anything," other than that he (Arshad) "is still chair of the 
IAEA Board of Governors" until a new Ambassador is 
identified.  Zainol explained that there is a delay because 
"the nomination of a new ambassador is very sensitive," 
adding that "the process takes a few weeks." The DCM recalled 
the Foreign Minister's public comments on this subject last 
month and recent senior level communications we have received 
from the GOM. 
 
Training and Enhancing Engagement 
--------------------------------- 
 
¶8. (SBU) Zainol welcomed increased interaction and engagement 
between the USG and GOM on the non-proliferation front. He 
confirmed that the GOM planned to participate in an 
EXBS-sponsored non-proliferation workshop in March 2010, and 
was interested in sending two candidates to the University of 
Georgia within the next few months for more specialized and 
extensive export control-related training.  Zainol commented 
that the MFA has been preparing for the Nuclear Security 
Summit in Washington this April, which PM Najib will attend. 
DCM Rapson noted USG interest in having Malaysia's Attorney 
General visit Washington for discussions on a range of 
bilateral issues, including the export control law. 
 
Missing F-5 Engines 
------------------- 
 
¶9. (C) Following up on PM PDAS Countryman's January 14 
meeting with the Malaysian Ambassador to Washington about the 
missing F-5 engines case (ref E), DCM reiterated to Zainol 
the seriousness with which we view this issue and that we 
look forward to a full report/accounting by the GOM.  This 
was necessary to ensure the US has the "fullest confidence" 
in Malaysia's ability to handle and account for sensitive 
defense equipment.  Zainol replied that "we are seriously 
concerned" and that the GOM "fully understands that this is 
an obligation we have to undertake," but also added that "my 
department is only concerned with nuclear non-proliferation" 
and that "we (MFA) are not the lead on the issue."  When 
asked about those arrested for their alleged involvement with 
the F-5 engines, Zainol replied that the issue "is now before 
the court, so it's difficult to offer any further comment." 
KEITH