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10. Mr Pike said that we fully understood the sensitivities of, and appreciated the help already given by, the Singaporeans. But there would only be a small minority of cases in which we
possessed sufficient evidence of drug laundering to present to the Singaporean Government. Singapore would surely not wish to become known as a haven for laundering of drugs proceeds. The
balance in the world was inevitably moving against banking secrecy in this vital respect. Lord Glenarthur said that 17 cases involving Singapore had recently come to light. We would be presenting the evidence. BG Yeo said that was fine: Singapore would help. But we should only aim to move on from practical
to a more theoretical
liaison on these individual cases
framework if this seemed necessary and appropriate. If the
further investigation of these 17 cases showed a need for some change in the system, Singapore would look into the possibility of such a change. He repeated that traffickers would not take the Singaporean Government lightly but stressed the reluctance
there would be in Singapore to make haste on this issue.
Mr Pike said that we would, in that case, keep knocking on
Singapore's door. Lord Glenarthur concluded that we must agree for the time being to differ.
1992
11. Lord Glenarthur reassured BG Yeo that Singapore need have no worries about free trade continuing after 1992. We had too much at stake to agree to an increase in protectionism.
BG Yeo said that a ritual had now developed whereby Singaporeans
expressed concern to European visitors on this score, while the latter duly reassured them. But Europe would be judged by its actions not by its words. The main Singaporean fear was that protectionism would provide short-term relief for governments in political trouble at home. In these circumstances, protectionism would doubtless be introduced. If the EC did move towards a more protectionist stance, this would increase the pressure on ASEAN to form an economic block to counter this. The Japanese were already pressing for such a move. But this should be avoided: free trade benefited everyone.
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../Lord