TNAG-1747-FCO40-2466-Visit-by-Sir-Geoffrey-Howe--Secretary-of-State-for-Foreign-a-1988 — Page 172

CONFIDENTIAL

FM SINGAPORE

TO PRIORITY FCO

TELNO 223

CONFIDENTIAL

(18)

065157

MDLIAN 8973

HKB 027/3.

OF 12041OZ APRIL 88

INFO PRIORITY DTI, KUALA LUMPUR, MANILA, JAKARTA, BANGKOK

INFO PRIORITY BANDAR SERI BEGAWAN

MIPT: YOUR VISIT TO SINGAPORE: ACTION

SUMMARY

1. THE SCALE OF OUR RECENT RESPONSE TO THE SINGAPOREAN WELCOME FOR MORE BRITISH ECONOMIC INVOLVEMENT HAS SO FAR BEEN DISAPPOINT-

ING.

THE PRIME REQUIREMENT REMAINS A MORE DETERMINED MOVE TOWARDS 'GLOBAL AWARENESS'', IN WHICH AN ENHANCED PHYSICAL

PRESENCE HERE WOULD PLAY A PART. THE MISSION TO PERSUADE IS A TASK FOR ALL. WE ALSO NEED A LONG-TERM STRATEGY FOR ''TECHNOLOGI-

CAL PUBLIC RELATIONS''.

DETAIL

2.

HOW SHOULD WE CAPITALISE, IN PARTICULAR ECONOMICALLY,

ON YOUR VISIT?

3.

www

SINGAPORE MINISTERS' RESPONSE TO YOUR MESSAGE ON OUR DESIRE AND ABILITY TO ACT AS PARTNERS WITH THEM IN HIGH TECHNOLOGY AND INVESTMENT WAS UNIFORMLY CLEAR: ''WE WELCOME IT''. THE PROBLEM REMAINS SEE PARAGRAPH 17 TO 19 OF MY ''SECOND IMPRESSIONS''

DESPATCH OF 15 SEPTEMBER 1987 TO SEIZE THE MOMENT AND THE OPPOR- TUNITY. THE REALITY IS THAT, DESPITE SOME ENCOURAGING RECENT SIGNS OF PROGRESS NOTABLY THE TALKS BETWEEN BRITISH AEROSPACE AND SINGAPORE

AIRCRAFT INDUSTRIES ON POSSIBLE FORMS OF INDUSTRIAL COOPERATION, AND SHELL'S DECISION TO ENLARGE ITS LOCAL REFINERY FACILITIES OUR PERFORMANCE IN COMPARISON WITH THAT OF THE AMERICANS AND, A BOVE ALL, THE JAPANESE, REMAINS, TO BE KIND, DISAPPOINTING. SOME FIRMS WITH EXISITING INVESTMENTS HERE EXPANDED THESE IN 1987.

BUT WE HAVE BEEN UNABLE TO TRACE ANY MAJOR NEW BRITISH INVESTMENT IN SINGAPORE LAST YEAR. OUR EXPORTS, AT #610 MILLION CONSTITUTED ONLY 3.2 PER CENT OF TOTAL SINGAPOREAN IMPORTS (JAPAN: 20 PER CENT.

USA: 15 PERCENT.)

4.

IT IS, OF COURSE, EASIER TO DESCRIBE THE PROBLEM THAN TO MAKE

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