Summary
CONFIDENTIAL
SINGAPORE'S RELATIONS WITH CHINA
1.
the
past, diplomatic
Singapore/China relations are now considerably closer than in even though Singapore still says it will not establish
relations with China relations with China until all its
until all its ASEAN partners have done So.
The new directions in China's domestic and foreign policies associated with Deng Xiaoping, which have led in particular to the opening-up of China's foreign
foreign trade, have awakened lively interest in Singapore. China is eager to acquire Singaporean expertise, especially in management and technological skills, to assist it in its modernisation drive. Singapore, faced by an economic downturn, is ready to cooperate with China as an outlet for its expert talents. China's two-way trade with Singapore, which outstrips that between China and all the other ASEAN countries combined, rose to US $2.6 billion in 1985, an increase of 60 per cent over the previous year.
In 1985, China was Singapore's fourth largest trading partner, with trade between the two accounting for 5 per cent of Singapore's external trade. The balance of trade lies heavily in China's favour - US$2.3 billion out of the 1985 figure for total trade. Over three-quarters of Singapore's 1985 imports from China consisted of oil and other fuels.
2.
China's "open-door" policy has undoubtedly helped to strengthen Sino-Singaporean trade and cooperation, but this trend has also been encouraged by other developments. On the political front, Singapore has been among the firmest of the ASEAN countries in opposing, together with China, the Soviet-backed Vietnamese Occupation of Cambodia. In the medium term at least, Singapore sees Vietnam and behind it the Soviet Union as a greater threat than China to stability in South-East Asia. China's decision
decision to scale down its support to communist insurgent groups in South-East Asian countries to the level of political and moral backing has had some effect in improving relations
relations with Singapore and other governments in the region, even though it has not dispelled all their suspicions. Singapore, the Communist Party of Malaya is no longer active.
3.
In
While Singapore does not recognise Taiwan, it maintains trading and other links, and Mr Lee Kuan Yew visits Taiwan from time to time. Singapore considers its present form of relations with China. satisfactory and shows no sign of deviating from its policy of developing as а South-East Asian state with its own identity as a multi-racial society. Singapore can be expected to maintain cordial relations with China, but on its own terms.
General Observations
4. In a region whose people are predominantly Malay, Singapore is distinguished by its population, the majority of which are Chinese by race. At the end of 1984, of a population of 2.54 million, 76.45 per cent were recorded as Chinese, 14.84 per cent as Malays, 6.44 cent as Indians, while the remaining 2.27 per cent were accounted for by other racial groups.
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