RESTRICTED

SECRETARY OF STATE'S SPEECH IN SINGAPORE

Introduction

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Challenge of a multi-polar world. Decline of communism in the

region (Chinese more flexible approach, Vietnam's economic failure, guerrilla threat reduced) but need for vigilance.

Emergence of Pacific Basin; changing balance of economic and political relations.

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Part revived Britain can play (major theme throughout speech).

Challenges to South East Asia:

(i)

political

(ii) social

(iii) economic

1.

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Political

Strategic importance of region to US and USSR.

Vital significance of sea routes in South East Asia.

Impact of re-emergent China (UK's closer relationship) and of

Japan.

- Role of ASEAN in promoting regional stability and security.

Achievements of Manila Summit.

Five Power Defence Arrangements (possible reference to Gurkhas in

Brunei).

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Importance of US bases in Philippines to regional security.

Challenge of situation in Vietnam and Cambodia. Vietnam the key

PH2AIK

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