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affect the substance of relations with Taiwan although certain forms would have to be altered, such as the title of the Taiwan trade mission.
6. The violent Chinese repression of dissidents in June 1989 caused great shock in Singapore and Lee issued a very strong statement. This was said to be an exceptional action as Singapore usually avoided comment on the internal affairs of other countries. Lee Kuan Yew told Sir Alan Donald, then Ambassador to Peking, that the recent events were a disaster for China. added that the regime in Peking had completely lost the confidence of the overseas Chinese and that this marked a major watershed. Those Chinese educated Chinese who had fought for 40 years to subvert democratic government in Singapore on behalf of Maoist and post-Maoist China were now completely disillusioned. Lee also spoke to Sir Alan about Hong Kong emphasising his concern about the unexpected upsurge of interest in Hong Kong in more rapid movement towards a more fully democratic system. This, he said, would inevitably provoke Chinese hostility. The reality was that China could not accept what she regarded as subversion by certain political groups in Hong Kong. The Chinese regime would also reject any assertion of a separate democratically-based Hong Kong identity, as distinct from a Hong Kong which understood its role as a part of China. Mr Pike, High Commissioner in Singapore, commented that Lee's remarks on democracy in Hong Kong reflected his long-standing conviction that China would never be prepared to tolerate anything other than a measured, tightly controlled and step-by-step shift in this direction by 1997.
7.
Singapore opened diplomatic relations with China in October 1990. This followed Indonesia's re-opening of diplomatic relations in August 1990. Taiwan sources said that Singapore's second Deputy Prime Minister, Ong Teng Cheong, secretly visited Taiwan in July to explain Singapore's position and to discuss future relations. The Chinese Premier, Li Peng, visited Singapore in August and the atmosphere was extremely cordial. Talks again concentrated on Cambodia, and on the future establishment of diplomatic relations. The issue of Singapore's relations with Taiwan was not fully thrashed out during the visit but Li Peng endorsed Singapore's continuing use of military facilities in Taiwan. The establishment of diplomatic relations has in practice meant little change in existing bilateral relations which were already reasonably close.
8.
Singapore has continued its close relations with Taiwan following the establishment of diplomatic relations with China. The Chinese appear to tolerate this, whereas other ASEAN countries eg the Philippines have received vigorous protests at reports of dealings with the Taiwan authorities.
9. Lee was invited to visit China in autumn 1990. The British High Commission in Singapore was asked to feed in to Lee's briefing points about Hong Kong which it was hoped Lee would be able to put over to the Chinese. These included the need to resolve disputes over cooperation to avoid the risk of loss of business confidence. Lee apparently told the Chinese that their and Hong Kong's economy complemented each other and that it was
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