TNAG-2228-FCO40-3200-Political-relations-between-Hong-Kong-and-Singapore-1991 — Page 18

DENT

LORD CAITHNESS' CALL ON BG GEORGE YEO, SENIOR MINISTER OF STATE, MINISTRY OF FOREIGN AFFAIRS AND ACTING MINISTER FOR INFORMATION & THE ARTS, 1215PM, 3 MAY 1991

Present

BG Yeo

Esther Quah

Lord Caithness

High Commissioner

Mr Paxman

PS/Lord Caithness

Indonesia

1.

After welcoming Lord Caithness and enquiring about his visit to Medan, BG Yeo commented that Indonesia had been making good progress over the last few years. The question now was who would succeed Suharto. We should expect, and prepare for, some disruption but, as this would probably be an internal military affair, this would be much less than at the last political transition. Suharto would probably stand for re-election. He was a wise and remarkable man. He had done tremendous good for Southeast Asia.

Growth Triangle

2. BG Yeo commented that Singapore had taken its lead from Hong Kong and Shenzhen in developing links with Johor and Batam. It had taken a long time to bring the Indonesians on board. They had initially insisted that all goods from Batam should pass through the Indonesian mainland. Last year they had taken the decision that they could be exported through Singapore. The result was that Indonesian orchids exported through Singapore were cheaper and fresher than Thai orchids sent through Bangkok.

The Philippines

3. BG Yeo was saddened by the situation in The Philippines. After the war they had had the highest standard of living in Southeast Asia. But their system of government was oligarchic and corrupt: although officially a democracy, The Philippines was a democracy that failed. They were heavily influenced by both their Spanish heritage and culture (in the past the Governor of The Philippines had been appointed by the Viceroy in Mexico) and by their love/hate relationship with the US. The Communist threat, and the prospect of further coups, might be receding. Prospects might be looking up. But,

BG Yeo hastened to add, this was more an act of faith than a rational judgement on his part. Mrs Aquino had failed to take advantage of an unique historical opportunity to put the country on a sound footing. He thought it unlikely that she would stand again: The Philippines needed a stronger leader.

cont'd