less, each country has

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informal official presence in the other. In 1981, as already noted, China opened a trade office in Singapore, the head of which is treated as a member of the local diplomatic corps. The Bank of China has been represented in Singapore since 1949, initially by a local (Singaporean) deputy manager with the substantive manager based

based in Peking. In 1976 the Chinese sought approval for a PRC national to be appointed manager in Singapore and this was granted in 1978 (although the appointment was not filled until 1979).

Other banking, insurance, trade and transport interests are represented. In early 1986, Singapore agreed to allow Xinhua, the principal Chinese news agency, to open а bureau in Singapore. The number of PRC officials

officials serving in Singapore now stands at 25. A breakdown of the numbers as at April 1986 is

contained in Table 1.

22. On its side, Singapore now has two trade offices in China, in Peking and Shanghai. The Peking office, established in 1981, is not headed by a career diplomat, but usually by an official from the Singapore Trade Development Board. It nonetheless performs many of the functions of a diplomatic mission.

Singaporean banking interests are also represented in Peking. The Singapore trade office in Shanghai, which had been in place since late 1985, was formally opened on 2 June 1986, during the visit of the Singaporean Second Deputy Prime Minister, Ong Teng Cheong.

23. The Singaporeans have indicated that they consider the present form of relations satisfactory. The Chinese have let it be known that they are ready to establish diplomatic relations whenever it is convenient for Singapore.

Singapore and Taiwan

24.

As

While Singapore has never recognised nor had any formal relations with the Chinese Nationalist authorities on Taiwan, in practical terms it has maintained fairly substantial links with Taiwan. It has a

trade office in Taiwan, in return for a Taiwan trade office in Singapore which handles consular matters. reported in the Taiwan press, two-way trade in 1985 between Taiwan and Singapore reached US $1.16 billion, with an imbalance of US $608 million in Taiwan's favour. (Singapore's two-way trade with China in 1985 amounted to US $2.59 billion, with a deficit of US $2.25 billion in China's favour.)

25. Mr Lee Kuan Yew has made a number of visits.

visits to Taiwan, most recently in June 1986. Earlier visits were not announced, but his tour and a visit in November 1985 were both publicly reported. He is said to have close personal contacts with President Chiang Ching-Kuo. Singapore has also been allowed to organise some of its military training in Taiwan.

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/Singapore

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