SINGAPORE SCENESETTER FOR A/S HILL

UNCLAS SECTION 01 OF 02 SINGAPORE 003443

SIPDIS

SENSITIVE

FOR ASSISTANT SECRETARY HILL FROM AMBASSADOR HERBOLD

E.O. 12958: N/A
TAGS: PGOV PREL ECON ETRD SN
SUBJECT: SINGAPORE SCENESETTER FOR A/S HILL


1. (SBU) We warmly welcome your December 14-15 visit to
Singapore. Singapore's leadership highly values access to
senior Washington policymakers and will regard your visit as
a testament to the importance we attach to the relationship.
They will be very interested in your views on developments in
Asia and the U.S. role in the region and can be counted on to
provide thoughtful views on questions such as terrorism in
Southeast Asia and the rise of China. Your visit offers the
opportunity to advance our counter-proliferation objectives
with the GOS and to send a public message throughout the
region of the United States' commitment here.

Strategic Partners, not Allies
--------------


2. (SBU) Our excellent relationship with Singapore is founded
on a convergence of views on key strategic issues and
substantial trade and investment ties. Singapore views a
strong U.S. diplomatic, military, and economic presence in
the region as essential to regional peace and prosperity.
Singapore is a valuable logistics hub for U.S. forces and
seeks greater interoperability with us, highlighted by its
recent selection of the F-15T for its Next Generation
Fighter. To expand our strong security ties, President Bush
and Prime Minister Lee Hsien Loong signed the Strategic
Framework Agreement (SFA) in July. As with our two-year old
Free Trade Agreement (FTA),the SFA is designed to make a
good relationship even better. To preserve its autonomy and
credibility with its neighbors, however, Singapore limits its
closeness to us. It specifically does not want to be a
treaty ally; our military leases facilities from the GOS --
there are no U.S. "bases" on the island.

Terrorism and Non-proliferation
--------------


3. (SBU) Singapore is a reliable and highly capable partner
in the Global War on Terrorism. In 2001, the GOS uncovered a
plot by Jemaah Islamiya to bomb targets in Singapore,
including this mission. Singapore continues to view itself
as a high-profile terrorist target and the GOS regularly
warns its citizens that a terrorist attack is inevitable.
Singapore's leaders are concerned about the growth of radical
Islam in Southeast Asia and the long-term threat to secular
authority.


4. (SBU) Singapore is an active member in counterterrorist
programs such as the Proliferation Security Initiative and
the Container Security Initiative and is working with
Malaysia and Indonesia to enhance maritime security in the
Strait of Malacca. We have been working with Singapore -- a
major transshipment hub -- to expand and tighten its export
controls to bring them up to world class standards. As an
IAEA board member, Singapore has supported our efforts to
press Iran to abandon its nuclear ambitions.

Regional Issues
--------------


5. (SBU) Singapore views the Taiwan Strait and the Korean
Peninsula as the most significant potential flash points in
East Asia. In particular, GOS leaders worry that Taiwan
could spark a conflict with China over perceived moves toward
independence, but this concern has lessened over the last
year. While less directly affected by the Korean Peninsula,
Singaporean leaders will welcome your insights on the Six
Party Talks and other ways we are trying to modify North
Korean behavior. This offers an opportunity to highlight the
importance of our non-proliferation objectives.


6. (SBU) Singapore supported an inclusive approach to the
East Asia Summit and, in general, encourages outside powers
to take an interest in Southeast Asia. The GOS frequently
urges us to engage more with Indonesia and welcomes our
resumption of military ties there.

Democracy?
--------------


7. (SBU) PM Lee is only the third head of government in
Singapore's forty years and his People's Action Party retains
a tight grip on power. The Singapore leadership openly
rejects the notion that Singapore should adopt a
"western-style democracy" and is proud of its record of
catapulting Singapore from the Third World to the First in
only two generations. At the same time, the senior
leadership recognizes the need for openness and creativity in
an increasingly advanced services and knowledge-based
economy. It is grappling with how to encourage that without
loosening its control.
HERBOLD