US embassy cable - 05SINGAPORE1543

UNCLAS SINGAPORE 001543 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL, SENV, MY, SN 
SUBJECT: SINGAPORE AND MALAYSIA SIGN LAND RECLAMATION 
SETTLEMENT AGREEMENT 
 
REF: A. 02 SINGAPORE 1267 
     B. 04 JAKARTA 10224 
 
1.  A costly two-year dispute with Malaysia over Singapore's 
land reclamation activities in the Johor Strait ended on 
April 26 when Singapore Ambassador-at-large Tommy Koh and 
Malaysia Secretary-General Tan Sri Ahmed Fuzi Abdul Razak 
signed the "Settlement Agreement of the Reclamation Case". 
Singapore Foreign Minister George Yeo described the 
settlement as a sign of improved bilateral relations between 
the two nations, and anticipated that Singapore and Malaysia 
would amicably resolve other ongoing bilateral issues, 
including the price of water supplied to Singapore by 
Malaysia, a Malaysian plan to replace the causeway across the 
Singapore Strait with a modern bridge, and the disposition of 
a Malaysian railway line that runs into Singapore. 
 
2.  The Agreement concludes the case brought by Malaysia in 
September 2003, in the Hamburg-based International Tribunal 
for the Law of the Sea, accusing the GOS of not consulting 
Malaysia about its land reclamation activities in the Strait 
of Johor and raising concerns about their effects on 
navigation and the environment.  (NOTE: After the 13-month 
study, an independent panel of experts issued a unanimous 
report that Singapore's reclamation actions presented no 
major environmental ramifications. END NOTE) 
 
3. Under the Agreement, both governments pledge to undertake 
various initiatives to mitigate Malaysia,s concerns, 
pursuant to the recommendations of a group of independent 
experts appointed by both governments to study the effects of 
Singapore's reclamation works.   Malaysia will drop its 
lawsuit, and grant Singapore the right to reclaim as much 
land as it needs for development within its territorial 
waters.  In return, Singapore has agreed to do the following: 
 
--  Revise its reclamation plans to protect sea currents and 
pay S$300,000 (US$182,300) for maintenance works at 
Malaysia's Tanjung Belungkor jetty. 
 
--  Make a one-time payment of RM$374,400 (US$98,550) to 
local Malaysian fisherman to compensate them for loss of 
income. 
 
4.  COMMENT: Singapore is unlikely to quickly revive the 
project to create 49 square miles (19 square km) of new land 
in the straits.  While resolution of its dispute with 
Malaysia is welcome, Singapore has faced a shortage of 
available sand vital to its reclamation ambitions since its 
principle supplier, Indonesia, barred sand exports to 
Singapore in 2003.  Ministry of National Development Senior 
Corporate Communications Executive, Ms. Senbagavalli 
Arumugam, told EconOff that reclamation works will continue, 
adding that the onus is on commercial contractors hired by 
GOS to procure materials for the project, which may be 
equivalent to a "don't ask, don't tell" policy.  END COMMENT. 
 
FERGIN