America Asia Petroleum Corp. (fka AAPU)

[El Mago]

Naked Shorts' days are numbered, see SEC response below:

Thank you for contacting the SEC.

As you may know, both the Commission and self-regulatory organizations
have been focusing for some time on short sale regulation. The
Commission recently adopted amendments to its rules governing short selling,
now consolidated in Regulation SHO. While naked short selling is not per
se illegal, Regulation SHO seeks to address the problem of manipulative
or abusive naked short selling, among other things. Recently, the
Commission voted to eliminate the "grandfather" clause of Regulation SHO in
order to further reduce the number of fails to deliver. The amendment
will be effective on October 15, 2007. For more information, please
see http://www.sec.gov/news/press/2007/2007-...

Please be assured that the Commission is committed to detecting and
prosecuting violations of the federal securities laws, including
violations of Regulation SHO; we cannot comment, however, on what specific
actions we may take. In the event that the SEC brings an action for
violation of Reg SHO or another provision of the federal securities laws,
that information will be made publicly available through a litigation or
administrative proceedings release.

I also note that, in general, a company’s continued appearance on the
threshold list does not necessarily constitute a violation of
Regulation SHO. Regulation SHO does not limit the amount of time a company can
be on the list. Regulation SHO includes a 13 day requirement for the
close-out of fail to deliver positions. Because a stock have been on
the list for more than 13 days does not necessarily mean that any
individual fail position has persisted for more than 13 days. The recent
amendments to Regulation SHO permit previously-excepted grandfather
positions that are threshold securities as of October 15, 2007 be closed out
within 35 settlement days. For more information on the rule’s
requirements, please see Section II.5 of the enclosed document from the Division
of Market Regulation entitled “Responses to Frequently Asked
Questions Concerning Regulation SHO” (December 17, 2004, updated July 6,
2007), http://www.sec.gov/divisions/marketreg/m...

Once again, thank you for your letter. I hope this information proves
helpful to you. If you have any questions, please do not hesitate to
contact Ann H. Sulzberg, an attorney on my staff, at [phone].

Ann H. Sulzberg
Special Counsel
U.S. Securities and Exchange Commission
Office of Investor Education and Advocacy
[phone]