Keeping Singapore's foreign ties humming

The Straits Times, March 6, 2007


Keeping Singapore's foreign ties humming
This is an extract from Foreign Minister George Yeo's response to questions from MPs in Parliament yesterday


Singapore and Asean
WHILE we have little influence over the larger forces at play, we can help stabilise our immediate environment in South-east Asia. Building a stronger Asean is indeed a core element in our foreign policy.

A strong Asean enables us to negotiate more effectively with our major partners like the US, China, Japan, India, Europe and Australia and New Zealand. Asean is already playing a leading role in the construction of a larger architecture of peace and cooperation in the region. We have an inner concentric circle consisting of Asean and the three North-east Asian countries of China, Japan and Korea, what we call Asean Plus 3. We have, in addition, a larger concentric circle, the EAS (East Asia Summit), which also includes India, Australia and New Zealand. Launched in KL in December 2005, the EAS had a successful second meeting in Cebu.

Later this year, Singapore will be in the Asean chair for its 40th anniversary. We will also be celebrating the 30th anniversary of our dialogue relations with the US and the EU. Asean's relations with both the US and the EU are becoming stronger. With the US, a Plan of Action was signed last July to implement the Asean-US Enhanced Partnership. With the EU, negotiations for an EU-Asean FTA will soon be launched. The EU has also indicated its desire to accede to Asean's Treaty of Amity and Cooperation. Singapore is a strong advocate of stronger EU involvement in Asean. We hope that both the Asean-US and Asean-EU anniversaries will be celebrated at the summit level.

While in the chair, we will do all we can to move Asean forward. A peaceful Asean can play a major role in maintaining the larger peace in Asia.

It doesn't mean that, with a strong Asean, there'll be no more problems or conflicts among countries in South-east Asia. There will still be. But a sense of regional solidarity and a habit of consultation and cooperation will set our disagreements within limits and facilitate their solution.


Malaysia
ON THE whole, our relations with Malaysia are good and getting better. I agree with the recent remarks by Foreign Minister Syed Hamid (Albar) quoted in The Straits Times: 'Our bilateral ties with Singapore have never been better. That doesn't mean all our bilateral issues have been resolved, but we are moving on to a more mature track. We are able to segment areas where we think we can move forward and areas we cannot, and move on the areas we think we can move ahead.'

I welcome this new phase in our relationship. In May, Prime Minister Lee Hsien Loong will visit Malaysia with a delegation of Cabinet ministers for a retreat with Prime Minister Abdullah Badawi and his colleagues. This will be the first retreat between our leaders.

Close cooperation between our two countries will benefit our peoples. Personally, I was delighted when it was announced that Genting made the successful bid for the Sentosa IR project. We look forward to working with Malaysia on the Iskandar Development Region in South Johor on the basis of mutual respect and mutual benefit. I am pleased to inform the House that the National University of Singapore will be conferring on the Sultan of Johor an honorary doctorate in April on the occasion of his official visit to Singapore. At Siem Reap last week, I expressed our intention to establish a consulate in JB to Syed Hamid, who welcomed it.


Thailand
WITH Thailand, our relationship is strong enough to weather the uproar over Professor Jayakumar's private dinner with former prime minister Thaksin. As Thai Assistant Army Commander, General Saprang (Kalayanamitr), who is a member of the Council for National Security (CNS), said in his interview with The Straits Times, published on Feb 21, 2007: 'Misunderstandings between the two countries have come about because of Thaksin's business. The problem can be resolved fairly...and won't blow up because the cause of the problem is not Singapore, but Thaksin'. In other words, we are just being embroiled in their own domestic political conflict. I share General Saprang's sentiments.

As close and friendly neighbours, it is right that both sides take into account each other's sensitivities whenever possible. We value our friendship with Thailand and the Thai people. It is good that both countries view Temasek's purchase of Shin Corp as a commercial transaction. The Thai government has stated publicly that it is mindful of the rights of international investors and will not take action which is discriminatory in nature.


Indonesia
AS FOR Indonesia, our relations were improving until recently. In October 2005, PM Lee held a retreat with President (Susilo Bambang) Yudhoyono in Bali. They agreed to negotiate an ET (Extradition Treaty) and a DCA (Defence Cooperation Agreement) in parallel and to be concluded as a package. We have made good progress on both the ET and the DCA. There are a few difficult issues remaining but the gaps can be overcome. We have also agreed to cooperate on the development of Special Economic Zones (SEZs) in the Riaus, and to work together regionally and internationally to combat the haze.

Unfortunately, despite these positive developments, other issues have recently emerged that could sour relations and affect bilateral cooperation. On Feb 5, 2007, Indonesia banned the export of land sand to Singapore. Various reasons have been advanced by Indonesian politicians and legislators, some quite wild and strange.

On Feb 16, 2007, the Jakarta Post published an article which quoted the Deplu's (Indonesian Department of Foreign Affairs) director-general for Asia, the Pacific and Africa saying that the ban on land sand exports to Singapore was a way to put more pressure on us to move faster on ET and border demarcation. MFA issued a statement on Feb 19 to say that if this was indeed Deplu's position, it was unfortunate and contravened the earlier agreement by the two leaders and would further complicate border negotiations. On Feb 21, Foreign Minister Hassan (Wirajuda) clarified that the land sand ban was not intended to pressure us. He reiterated environmental concerns and conceded that our reclamation would not change the sea boundaries between Singapore and Indonesia because what was under discussion was far away from our reclamation areas.

Last week I met Minister Hassan during the Asean foreign ministers' retreat in Siem Reap. He repeated to me that there was no linkage between the ban on land sand and other bilateral issues. And he explained Indonesia's environmental concerns. I told him that our offer to work with Indonesia on these concerns was still on the table. On sand, I acknowledged Indonesia's prerogative to stop its export, subject, of course, to international rules. I told him we were disappointed but we would find alternatives.

Early last week, another issue arose. We received reports that the Indonesian navy was interdicting and detaining tugboats and barges carrying granite chips from Indonesia to Singapore. As of this morning, some 12 tugboats and 12 barges have been detained, most of which fly the Singapore flag. Mr Hawazi (Senior Parliamentary Secretary Hawazi Daipi) and others raised this specific problem.

I asked Foreign Minister Hassan whether there was a ban on granite exports to Singapore as well. After checking, he assured me that there was no such ban. He said there were only some existing administrative verification procedures to be complied with for granite exports. He invited us to witness the verification process to ensure its transparency. I welcomed this.

Minister Lim Hng Kiang also spoke to Indonesian Trade Minister Mari Pangestu to clarify the matter. She also confirmed that there was no ban on granite exports and acknowledged that several barges carrying granite chips from Indonesia to Singapore had been detained by the Indonesian navy.

This morning, MFA delivered a TPN (third party note) to the Indonesian Embassy in Singapore to confirm what Foreign Minister Hassan had assured me in Siem Reap and to ask the Indonesian government to take immediate action to release the vessels that are still detained.

It is not clear to us what caused the recent events which threatened our bilateral relations. We know, for a fact, that President Yudhoyono values good bilateral relations as we do. On ET and DCA, we are not far from a solution. This was also Minister Hassan's view when I met him. And we have agreed that negotiations should now be elevated to the ministerial level so that they can be jointly concluded on the basis of 'an overall balance of benefits' agreed to between PM Lee and President Yudhoyono.

From time to time, we must expect countries to pressure us in the hope that we will then give way to their demands. Singaporeans know that if we give in to such pressures, we would only invite more such pressures. However, we are always prepared to build good relations with them on the basis of mutual respect and mutual benefit. We should still help them when they are in difficulty not because we expect gratitude or reward, but because that is the right thing to do.


China, Japan and India
WITH China, the Joint Council for Bilateral Cooperation co-chaired by Chinese Vice-Premier Wu Yi and DPM Wong Kan Seng covers a wide field. Last year, both sides agreed to launch negotiations for a China-Singapore Free Trade Agreement within the framework of the Asean-China Free Trade Agreement. Suzhou has become an icon of our close partnership. China welcomes the extension of our involvement from the coastal regions to the West and the North-east, and both sides have been making bilateral visits at a high level.

Our good relations with Japan were highlighted last year by the visit of the Emperor and the Empress. Following the custom of the Imperial household, the visit was carefully crafted in great detail to express the depth and the warmth of our friendship. This month, Prime Minister Lee will be making an official visit to Japan. With economic recovery, Japan's role in Asean's economic development is growing again.

We are relieved to see the sun come out in the relations between Japan and China although the clouds have not completely dispersed. Prime Minister (Shinzo) Abe made an important move in visiting Beijing first when he assumed office, and Prime Minister Wen (Jiabao) will be returning the visit to Japan in April 2007.

As for India, our bilateral relations have never been better. We are now cooperating on a wide front including in security and defence. Our artillery and armour units conduct joint exercises regularly, including live-firing exercises. The two air forces have been conducting a series of bilateral exercises, out of Kalaikunda in West Bengal and, for the first time last year, in Singapore. Following the signing of the Comprehensive Economic Cooperation Agreement in June 2005, bilateral trade jumped 40 per cent last year.

In a modest way, we have been promoting good relations between India and China and between India and Japan. We try to add value where we can. And these are the three most important countries in Asia. If they develop strong bonds of cooperation, the whole of Asia will benefit and Singapore will prosper. For this reason, we worked hard for an EAS that included India.

But we need more than economics to bind us together. We need also to develop cultural ties, the ties that in past periods created the maritime silk route. For example, with the support of the Buddhist community in Singapore, MFA has been working with India, China, Japan and many other Asian countries to promote the Nalanda project. (The project seeks to revive the ancient Buddhist university in Nalanda, Bihar.)


Middle East
WE HAVE made significant progress since our policy shift to engage that region some three years ago. Last year, the Saudi Crown Prince made a very successful official visit to Singapore. The story of the young boy who walked up to the Prince at the lounge of the Fullerton Hotel, chatted him up and who was then given a string of beads by the Crown Prince, touched the hearts of many Singaporeans. PM Lee also had a good visit to Saudi Arabia in November last year. We were pleasantly surprised and honoured when the Saudis proposed to send more than 200 scholarship-holders to study in our universities annually.

Our relations with the other Gulf states - Qatar, UAE, Oman, Bahrain and Kuwait - are also blossoming and becoming more multi-faceted. We enjoy a good brand name and, generally speaking, our companies and our citizens are sought after by all these countries. Some of our companies have secured sizeable contracts. I hope more of our businessmen will seize opportunities in that market.

Negotiations for an FTA with the GCC (Gulf Cooperation Council) countries, which consists of all the countries that I have mentioned, have begun and should not take too long to complete. Not only are there opportunities for us to trade and invest in each other's economy, there are also good prospects for us to work together in third countries.

Flushed with cash reserves from high energy prices, and feeling somewhat less welcome in the West nowadays, some of the GCC countries are looking for opportunities to invest their money in China, Vietnam, Malaysia and other countries in our region. Some have asked to partner us in entering these Asian markets, especially China, as they believe that we are more familiar with this region. And, as Minister Tharman (Shanmugaratnam) mentioned in his Budget speech, Singapore is also becoming a centre for Islamic finance to service the growing economic links between the Middle East and East Asia.

SM Goh Chok Tong will be visiting Iran in a few days' time. On Iran's nuclear programme, Singapore has always taken a firm position. We acknowledge Iran's right to develop nuclear technology for civilian purposes but this must be done under the supervision of the IAEA (International Atomic Energy Agency). It is necessary for Iran to comply with its obligations under the Non-Proliferation Treaty and the IAEA safeguards regime. Since Iran has explained that its nuclear programme is a peaceful one, we hope that it will abide by UN Security Council Resolution 1737 and reduce what IAEA director-general (Mohamed) ElBaradei called the 'confidence deficit'. We believe that Iran can play an important positive role in bringing peace and stability to a troubled region. Doing so would be in the interest of Iran and the rest of the world.

Beyond the Gulf, Singapore's relations with Egypt, Jordan and the Maghreb are all warming up. Last year we established diplomatic relations with Libya. And I hope to visit Libya this coming May to explore opportunities for cooperation.

To deepen our knowledge of the Middle East, we will establish an institute to study the Middle East focusing on West Asia and North Africa. It will complement the existing South-east Asian, East Asian and South Asian institutes. Our Arab community in Singapore is an invaluable bridge we should use to re-establish links with that region. Many of our Arabs are Hadramis who are an unusually talented and entrepreneurial people. Recently, Minister Yaacob (Ibrahim) and I had lunch with members of the Arab Association to discuss how the Government can facilitate the association's efforts to reinvigorate our Arabic heritage including the teaching of the Arabic language.