TNAG-1636-FCO40-2252-Visits-by-FCO-officials-to-Hong-Kong-1987 — Page 41

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The

Kong in terms of growth, and its economy will remain very

vulnerable to fluctuations in the international economic scene. But

Singapore's economic recovery so far has been a remarkable demonstration of collective will-power and self-discipline. recession has provided a first test for the younger generation of leaders, who have proved that they can manage. Equally, and more remarkably, their Prime Minister has let them get on with it.

Foreign Policy

12. Lee Kuan Yew's international stature lends Singapore an

influence in foreign affairs out of proportion to her size. She is

an active and moderating influence in the Commonwealth, and other

international fora including the NAM. Staunchly anti-Communist,

Singapore plays a key, though restrained, role in ASEAN, her foreign

policy cornerstone. With Thailand, she is the most hawkish of ASEAN

countries on Cambodia; the Soviet Union and Vietnam are seen as the

greatest threats to the region.

13. The PRC and Singapore/Chinese relations are regarded as of

crucial importance; Mr Lee visited China in 1985 and Goh Keng Swee,

ex Finance Minister and one of Mr Lee's longest and closest

associates, has been retained as economic adviser by the Chinese

Government.

14. Singapore's relations with her neighbours, usually good, albeit historically fragile with Malaysia, were put in temporary flux following the visit of President Herzog of Israel to Singapore in

late November. Malaysia protested vigorously, and Indonesia and

Brunei subsequently followed suit. Lee Kuan Yew has a particularly

close interest, and personal relationship, with the Sultan of

Brunei. President Soeharto of Indonesia visited Singapore in February 1987.

15. UK Objectives. These are first to encourage Singapore's

continuing role as a force for stability in the region, and in eg

ASEAN, UN, NAM, Commonwealth. We wish to maintain our defence

relationship, identify business opportunities and advance our trade

and investment interests. Equally, we must maintain and develop our

IN CONFIDENCE