SINGAPORE APPLAUDS SECRETARY'S "STRONG SIGNAL" TO

C O N F I D E N T I A L SECTION 01 OF 02 SINGAPORE 000158 SIPDIS DEPARTMENT FOR EAP/MTS - M. COPPOLA NEW DELHI FOR J. EHRENDREICH E.O. 12958: DECL: 02/23/2019 TAGS: PREL PGOV SN SUBJECT: SINGAPORE APPLAUDS SECRETARY'S "STRONG SIGNAL" TO ASIA IN MEETINGS WITH EAP/DAS MARCIEL Classified By: Charge d'Affaires Daniel Shields: Reasons 1.4(b),(d) ¶1. (C) Summary. MFA Second Permanent Secretary Bilahari Kausikan and Ambassador-at-Large Tommy Koh provided EAP/DAS Scot Marciel and the Charge d'Affaires glowing reactions to the Secretary's recent visit to Indonesia during separate meetings February 20. Kausikan said the Secretary's first visit overseas had "already sent a strong signal" of the Obama Administration's interest in Asia. Regarding the upcoming ASEAN summit, Kausikan cautioned that under current economic conditions, ASEAN would focus on consolidating institution-building measures. He said the economic crisis had proved that the theory of Asia's "de-coupling" from the west is "rubbish" and that talk of a multipolar world is premature. Kausikan expressed concern about the potential impact of the crisis on political stability in the region, particularly in Malaysia, Thailand, and Indonesia. Separately, Ambassador Koh suggested involving Indonesia in attempts to engage the Burmese regime. End summary. Singapore MFA Praises Secretary's Indonesia Visit -------------- -------------- ¶2. (C) EAP/DAS and Ambassador to ASEAN Scot Marciel, with the Charge d'Affaires and the Pol-Econ Counselor, met separately with MFA Second Permanent Secretary Bilahari Kausikan and Ambassador-at-Large Tommy Koh on February 20. Both Kausikan and Ambassador Koh applauded Secretary Clinton's recent visit to Indonesia, noting that it set a positive tone for U.S. relations with Southeast Asia. Kausikan observed that the very fact that the Secretary came to Southeast Asia on her first official overseas trip sent a strong positive signal. (Note: Koh had published an op-ed in the Singapore Straits Times a day earlier that credited the Obama Administration with getting off to a productive start in Asia. We have provided a copy to EAP/MTS. End note.) Modest Expectations for ASEAN Summit -------------- ¶3. (C) Kausikan cautioned against high expectations for the upcoming ASEAN summit in Hua Hin, Thailand, noting that it would mostly focus on consolidating the institutional reforms ASEAN has recently undertaken. He said the "good news" is that, despite the economic crisis, all members continue to "point the same way" toward further integration and that none was thinking of "turning back." He did not anticipate further obstacles to holding the summit meetings, which would be an accomplishment in itself, given Thailand's recent political circumstances. Kausikan said ASEAN would sign a free trade agreement (FTA) with Australia and New Zealand and that it is possible an FTA between ASEAN and India might still be ready for signature despite recent snags in negotiations. Working groups will also continue to pursue implementation of the new ASEAN charter, and discussion of Post-Cyclone Nargis Recovery Planning is on the summit agenda. Worries Over Stability in Malaysia and Thailand -------------- -- ¶4. (C) Kausikan expressed concern that "Asia has not yet seen the political fallout" of the global economic crisis. The crisis has proved two things, he said; the theory of Asia's "de-coupling" from the west is "rubbish," and talk of a multipolar world is premature. The key question is how China will weather the crisis, though he credited China's leaders with at least understanding the seriousness of the situation. In contrast, he said governments in Malaysia and Thailand are in a state of denial about the threat posed by the economic crisis due to their absorption in domestic politics. In Malaysia, Kausikan predicted a smooth transfer of executive power to Najib Tun Razak, but noted that the fundamental political problem, the need to reform racial preference policies and the UMNO patronage system, remained unaddressed. Thailand is worse off than Malaysia, Kausikan said, because the political actors are making purely tactical decisions without any reference to the long term. Prospects for a comeback of former Prime Minister Thaksin have faded, but a return to exclusive rule by the Bangkok elite is no longer sustainable. Indonesian Elections Distract from Crisis Response -------------- -------------- ¶5. (C) In contrast to Malaysia and Thailand, Kausikan commented that the Indonesian government is not in a state of denial about the crisis, but he said it is constrained in its response to the crisis by upcoming legislative and SINGAPORE 00000158 002 OF 002 presidential elections. He expressed concern that electoral politics may lead the GOI to adopt ill-conceived populist measures. He also said he worries about continuing pressure on the Indonesian rupiah, given that it would be politically difficult for the GOI to seek help from institutions like the International Monetary Fund. Singapore Is Prepared to Meet Crisis -------------- ¶6. (C) Kausikan said that the economic crisis is hitting Singapore hard, given its dependence on exports, but that the country has the resources to ride out the storm. He acknowledged that the outlook for sectors dependent on international trade is bleak for the rest of 2009. Singapore's banks, however, are secure. With the completion of its 2009 budget, the GOS has "done what we can do" to save jobs and preserve social stability. Singapore has sufficient reserves to "hunker down" and await better times. Singapore Wants Its Neighbors in Somali Anti-Piracy Group -------------- -------------- ¶7. (C) Kausikan noted that Singapore has been attending working group meetings of the Contact Group on Piracy off the Coast of Somalia, though it has not yet received a formal invitation to join the group. He emphasized that Malaysia is also interested in joining and urged the United States to encourage both Malaysia and Indonesia to do so, even if those states are not able to commit substantial assets to the effort. He speculated that budgetary constraints may have caused Malaysia to withdraw a vessel that it had previously made available for anti-piracy operations. Ambassador Koh Praises Secretary's ASEAN Visit -------------- - ¶8. (C) In his separate meeting with EAP/DAS Marciel, Ambassador Koh praised the Secretary's trip to Indonesia, and in particular her visit to the ASEAN Secretariat in Jakarta. The visit to the ASEAN Secretariat served to mollify Southeast Asian countries not on the Secretary's itinerary, according to Koh, by placing a regional stamp on the trip. Koh echoed the view that the Secretary's public statements struck the right tone, saying they "resonated very well with Asian audiences." Koh on Burma: Get Indonesia Involved -------------- ¶9. (C) Koh welcomed the Secretary's indication that the USG would review its policy toward Burma and said he believes Indonesia could play a constructive role. Specifically, Indonesia could provide Burmese leaders with a model for a successful transition from military to civilian rule. Koh suggested that the United States should encourage Indonesia to engage the Burmese regime on this theme. Koh also welcomed what he characterized as a "significant change of position" by the National League for Democracy on the issue of sanctions against Burma. (Note: Koh was apparently referring to the Special Statement issued by the NLD Central Executive Committee on February 17, which some observers are interpreting to mean that the NLD no longer supports sanctions. End note.) ASEAN Human Rights Body: Terms of Reference Nearly Ready -------------- -------------- ¶10. (C) Koh also said that work was nearly complete on the terms of reference for the planned human rights body under the new ASEAN charter. The terms of reference would have been finished by now, except that Indonesia's foreign minister intervened at the last moment to attempt to strengthen some part of the document. Koh expressed the worry that other members would use this delay as an opportunity to try to renegotiate other parts of the text, but he hoped that the terms of reference would be completed next month. "Implementation is another question," he added. Visit Embassy Singapore's Classified website: http://www.state.sgov.gov/p/eap/singapore/ind ex.cfm SHIELDS