*EPF504 09/10/2004
Text: U.S.-Malaysia Relations on "a Positive Path," LaFleur Says
(Ambassador-designate to focus on economic issues) (1380)

Despite frictions in the past, the current U.S.-Malaysia relationship is on "a decidedly positive path," says Christopher LaFleur, the U.S. ambassador-designate to Malaysia.

During his September 10 confirmation hearing before the Senate Committee on Foreign Relations, LaFleur quoted Malaysian Prime Minister Abdullah's July pronouncement that Malaysia's current relations with the United States are "the best we've ever had."

The upswing, LaFleur said, is a result in ever-greater cooperation in areas such as counterterrorism, regional and international security, and economic prosperity.

LaFleur told the committee that one of his highest priorities as ambassador, if confirmed, will be promoting U.S. commercial interests. Malaysia is America's 10th largest trading partner, with two-way trade in 2003 totaling over $36 billion.

According to LaFleur, Malaysia's highly developed infrastructure and educated work force are attractive to investment worldwide, with $29 billion from the United States. Trade with Malaysia supports nearly 200,000 jobs in the United States, he said.

LaFleur noted that the groundwork is being laid for the first formal meeting between officials from the United States and Malaysia under the Trade and Investment Framework Agreement (TIFA), signed with Malaysia in May.

LaFleur is a 31-year veteran of the Foreign Service, most of it served in Asia. He was deputy director of the American Institute in Taiwan, deputy chief of mission in Tokyo, director of the Office of Vietnam, Laos and Cambodia Affairs, and principal deputy assistant secretary in the East Asian and Pacific Affairs Bureau. He also headed the State Department team working with the Department of Defense to reshape security cooperation with Japan and the Republic of Korea.

Following is the text of LaFleur's statement, as prepared for delivery:

(begin text)

STATEMENT BY CHRISTOPHER J. LAFLEUR
AMBASSADOR-DESIGNATE TO MALAYSIA
SUBMITTED TO THE
U.S. SENATE COMMITTEE ON FOREIGN RELATIONS
SEPTEMBER 10, 2004

Mr. Chairman and Members of the Committee:

It is a tremendous privilege for me to appear before you today as the President's nominee to be the next U.S. Ambassador to Malaysia. I am honored to be in the company of my former boss in Taipei, and now fellow nominee, Ambassador Pascoe. As he can attest, having been confirmed by this committee to be Ambassador to Malaysia just a few years ago, our relationship with Malaysia is of critical importance to U.S. interests in Southeast Asia, and to our overall engagement with the Islamic world. I commit to do my best, if confirmed, to uphold the confidence that President Bush and Secretary Powell have placed in me by nominating me for this position.

Mr. Chairman, I hope that my 31 years in the Foreign Service have prepared me well for the challenges and responsibilities of serving as our nation's Ambassador to Malaysia. I joined the Service in 1973, and the bulk of my assignments have dealt with Asia. Overseas, these assignments included appointments as Deputy Director of the American Institute in Taiwan and, later, Deputy Chief of Mission in Tokyo. In Washington, I served as the Director of the Office of Vietnam, Laos and Cambodia Affairs and as Principal Deputy Assistant Secretary in the East Asian and Pacific Affairs Bureau. Before I was assigned to the Council on Foreign Relations last year, I headed the State Department team working with the Department of Defense to reshape security cooperation with our most important Asian allies, Japan and the Republic of Korea.

The U.S. has many vital interests in Malaysia due to its political and economic prominence in Southeast Asia and its leadership role in a number of international organizations. We have maintained friendly relations with Malaysia since her independence in 1957. True, we have had our share of differences in the past, sometimes expressed publicly in strong terms. However, our relationship has been on a decidedly positive path in recent months. Prime Minister Abdullah Badawi demonstrated his desire for a strong relationship with the United States during his July working visit to the U.S., which included productive meetings with President Bush and Secretary Powell.

In July, Prime Minister Abdullah pronounced Malaysia's current relations with the United States "the best we've ever had." His comments came at a time when we have seen ever greater cooperation in areas of mutual concern, particularly counterterrorism, regional and international security, and economic prosperity. Our Assistant Secretary for Economic and Business Affairs, Tony Wayne, visited Malaysia just last week to lay the groundwork for our first formal meeting under the Trade and Investment Framework Agreement (TIFA), signed with Malaysia in May, which we hope will further expand commercial ties with our 10th largest trading partner.

Last week also brought the very welcome news that Malaysia's Federal Court had freed former Deputy Prime Minister Anwar Ibrahim by overturning a highly questionable conviction -- a very encouraging demonstration of the rule of law and the independence of Malaysia's judiciary.

If confirmed as Ambassador, I will seek to improve our dialogue with the Malaysian government on a broad range of security issues within Southeast Asia and beyond. In the war against terrorism, Malaysia has taken determined measures to deal with members of terrorist organizations within its own borders. Malaysia has detained over 100 suspected terrorists since December 2001 - some with links to al Qaeda. Malaysia and the United States have signed a bilateral declaration of cooperation to combat international terrorism. More recently, Malaysia established the new Southeast Asia Regional Center for Counter Terrorism, which has quickly become one of the premier facilities for regional counter-terrorism training in Southeast Asia. The U.S. government has provided training and assistance at the Center to enhance the capacity of regional governments to protect themselves against terrorism, and to broaden and deepen our network of connections with police and other security forces in Southeast Asia.

Malaysia is one of the littoral states for one of the world's most critically important shipping lanes, the Straits of Malacca. Half of the world's oil shipments flow through these Straits, which link the South China Sea and the Indian Ocean. They are also of vital strategic importance to our naval vessels, allowing them to sail from their Pacific Ocean bases to the Persian Gulf and back. The Malaysian government is devoting new resources to maintaining the safety of these shipping lanes, and is working to address the risk of piracy and terrorism in this area.

Malaysia is a leading member in the Association of Southeast Asian Nations (ASEAN), whose political and economic role in Asia will be vital to securing U.S. interests in that region in the 21st century. We welcome Malaysia's role in facilitating negotiations between the Philippine Government and the Moro Islamic Liberation Front. Beyond Southeast Asia, Malaysia enjoys a highly visible international role as Chair of both the Non-Aligned Movement (NAM) and the Organization of Islamic Conferences (OIC).

As a moderate, highly developed, majority-Muslim state, Malaysia can have a significant impact -- both as a leader and as a role model -- in advancing peaceful resolutions on difficult issues throughout the Islamic world, notably the reconstruction of Iraq. We should expand educational exchange and other forms of public outreach to improve our dialogue, especially with young Malaysian and Muslim audiences.

Finally, one of my highest priorities as Ambassador will be promoting our commercial interests. Malaysia, as I mentioned earlier, is our 10th largest trading partner worldwide, and we are Malaysia's largest trading partner. Last year our two-way trade totaled over $36 billion. Malaysia's highly developed infrastructure and educated work force have attracted considerable investment from around the world. The U.S. has the lead with an estimated $29 billion in investment, U.S. firms employ some 100,000 Malaysians and our trade with Malaysia supports nearly 200,000 jobs in the U.S.

Mr. Chairman and members of the committee, Malaysia and the United States share a wide range of common interests and shared values. I am optimistic that the next few years will bring a stronger U.S.-Malaysian relationship as we deepen our cooperation on all of these issues in our common pursuit of peace, security, and prosperity.

Thank you for considering my nomination. I would be happy to respond to your questions.

(end text)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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