C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 010779

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/01/2021
TAGS: PREL ENRG SN TW
SUBJECT: PRC/SINGAPORE: LEE KUAN YEW DISCUSSES ENERGY
COOPERATION, TAIWAN WITH PRCLEADERSHIP

BEIJING 00010779 001.2 OF 002


Classified By: Political Minister ounselor Daniel Shields. Reasons 1.
4 (b/d).

SUMMARY
--------------


1. (C) Singapore Minister Mentor Lee Kuan Yew used his May
10-17 isit to China to urge Chinese cunterparts including
Premier Wen Jiabao to develop a bilateral relationship that
reflects the increased role of energy security in world
affairs, according to Chinese MFA Deputy Director He Wei.
The two sides discussed a UAE-Singapore-China project under
which the UAE will ship crude oil to Singapore for refining
before the oil is shipped to China or stored in Singapore for
later transport to China, Singapore Embassy Political
Minister Yip Wei Kiat stated. He Wei stressed that Beijing
has its own channels to Taipei and does not need Singapore to
play a special cross-Strait role, but Yip said Lee briefed
Wen on KMT Chairman Ma Ying-jeou's visit to Singapore. End
Summary.

Lee's China Program
--------------


2. (C) MFA Asian Affairs Department Deputy Division Director
He Wei, responsible for the Philippines and Singapore,
briefed Poloff on Singapore Minister Mentor Lee Kuan Yew's
May 10-17 visit to China at the invitation of Vice Premier
Hui Liangyu. He Wei reported that Minister Lee met with
Premier Wen Jiabao and Vice President Zeng Qinqhong, in
addition to Vice Premier Hui. During a separate meeting,
Singapore Embassy Political Minister Yip Wei Kiat told
Polmincouns that Lee also met with Jiang Zemin in Beijing,
traveled to Shanghai to launch with former Vice Premier Li
Lanqing the Chinese edition of Lee's book "Keeping My
Mandarin Alive", met with Shanghai Mayor Han Zheng and
visited Shenyang to meet Liaoning Party Secretary Li Keqiang.

New Circumstances for Bilateral Relationship
--------------


3. (C) Yip said the purpose of Lee's visit was to maintain
contact with the Chinese leadership and to make connections
between up-and-coming leaders of both countries. Six new
members of the Singapore Parliament traveled with Lee and
four of the six were appointed Ministers of State upon
returning to Singapore. Acc

ording to He Wei, Lee exchanged
views with PRC leaders on a broad range of issues, including
Taiwan, Sino-Singapore relations and energy cooperation. He
Wei said the overall China-Singapore relationship is "good to
some extent" and "moving in the right direction." (Comment:
He's somewhat cool tone may reflect lingering negative
impressions in Beijing stemming from then-Deputy Prime
Minister Lee Hsien Loong's December 2004 visit to Taiwan.
End Comment.) He Wei said Lee wants bilateral relations to
reflect the "new circumstances and situation" and this refers
to the larger role that energy security and energy
cooperation are playing in world affairs.

Focus on Energy
--------------


4. (C) Yip said Premier Wen and Lee agreed to cooperate on
nontraditional issues, such as energy security and maritime
security. They discussed a UAE-Singapore-China project under
which the UAE will ship crude oil to Singapore for refining
before the oil is shipped to China or stored in Singapore for
later transport to China. Yip noted that the project is
related to the China's efforts to build a strategic reserve,
as China is able to secure guaranteed oil supply and storage
in Singapore. China and Singapore are now fleshing out the
details of a protocol initiated at APEC that would reduce the
impact of a terrorist attack on a major node in the global
supply chain. Yip said Lee discussed a China-Singapore
bilateral trade agreement with Wen, describing it as a
possible catalyst for China's bilateral agreements with other
countries. China also asked for Singapore's help to
facilitate the completion of a China-ASEAN FTA, according to
Yip.

Special Role for Singapore on Cross-Strait Issues?
-------------- --------------


5. (C) On Taiwan, MFA Deputy Division Director He Wei said
Lee reiterated Singapore's adherence to one-China and its
strong desire to see cross-Strait relations remain quiet and
stable for the benefit of the region. He Wei said Singapore
has a strong interest in playing a special and active role in

BEIJING 00010779 002.2 OF 002


the cross-Strait relationship and is making a concerted
effort to "put itself in the middle of the issue," but he
added that Beijing has its own direct channels and other
countries should only play positive roles that have a good
effect on cross-Strait relations.

Lee Briefed Wen on Ma Ying-jeou's Singapore Visit
-------------- --------------


6. (C) Yip said Lee briefed Premier Wen on KMT Chairman Ma
Ying-jeou's visit to Singapore. Ma visited the venue of the
1993 Wang-Koo talks and used a public lecture at the Lee Kuan
Yew School of Public Policy to challenge Chen Shui-bian's
claim that there was no "1992 consensus." If the was no
consensus in 1992, then it would have not have been possible
for the Wang-Koo talks to have taken place in 1993, Ma
argued. Ma expressed concern about the implications for
Taiwan of the fast pace of regional integration in Asia,
arguing that if the kind of regional integration that
excludes Taiwan moves forward, Taiwan could become
marginalized, lose its attraction as an investment and trade
destination and see its economy hollowed out. Ma will not
rule out reunification as a possible solution to cross-Strait
problems, but said he is in no hurry for reunification and
the question can be left for future generations, Lee told Wen.
RANDT