CONFIDENTIAL
for the next decade or two and did not foresee any wild ugly situations developing in Malaysia or Indonesia. Singapore
had to build up its links with both to the benefit of the prosperity of all. He considered the most hopeful development to have been Indonesia's decision in 1987, after seeking for 40 years to cut Singapore out as an entrepot, to ask for Singapore's help in developing its ports and to accept Singapore as a centre for transshipping containers destined for Indonesia.
It was
technology which had made it impossible for Indonesia not to use Singapore; for example, container ships from Madras on their way to Europe found it worth their while to pass via Singapore.
Relations with Japan.
8.
In reply to Lord Fanshawe's question about the extent of Japanese involvement in Singapore, LKY said he was still more comfortable with the Americans than with the Japanese. The Japanese operated a different culture: even after working together in joint ventures over two or three decades, the Japanese still retained all the top managerial positions eg at Jurong Shipyard. By comparison, at Sembawang Shipyards, Swan Hunter had now gone and
Sembawang had even hired their last chief executive. American companies all had Singaporean Managers. But he thought that the Japanese might be changing not least because the distance between Tokyo and the ASEAN countries was shortening in a time sense. While other countries were concerned about the local systems in countries eg legal and others, the Japanese ignored them: he instanced their progress in Thailand, which was building up
into a big industrial economy, thanks to the way in which the Japanese had built up the infrastructure and the industrial estates.
SAS
9. Lord Fanshawe mentioned some private fund-raising on behalf of SAS dependents and wondered whether LKY might be able to give it a fair wind. LKY said that the query would be better addressed to the Prime Minister. He would be willing to pass it on but the Prime Minister would certainly ask whether Singapore had an obligation and he would have to say no. The SAS had not been involved in Singapore, which owed much more to the Israelis. Lord Fanshawe said that he had no wish to press this further in that case. Lord Fanshawe congratulated LKY on the way in which the Singapore Airlines hijack had been handled. LKY said that he had not been involved; everyone knew what to do; you could not fool around with these things.
Family.
10. Lord Fanshawe asked about LKY' S sons. LKY said that Hsien Loong was one of the unexpected bonuses in life; he had not made him go along the defence and political route.
They had told him as a young man that there was a 50/50 chance that he would have to fight for his country. He could fulfil that obligation by doing his National Service and getting out; but he had decided to say on and had risen swiftly to be a General. Their second son was now a Colonel in the Army at the age of 34.
/Defence.
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