Transcript of an Interview with the Prime Minister, Mr

1 TRANSCRIPT OF AN INTERVIEW WITH THE PRIME MINISTER, MR. LEE KUAN YEW, BY MR. MOTOO KAEDE, CHIEF EDITORIAL WRITER, OF TOKYO SHIMBUN AND CHUNICHI SHIMBUN, ON 27 NOVEMBER 1976 MOTOO KAEDE: After the war in the Indo-China, the situation in Asia, particularly in ASEAN and its neighbouring countries facing the Indian Ocean, has changed. May I have your assessment on the current situation and your views on what will be necessary for ensuring stability in Southeast Asia? PRIME MINISTER: First, we must know what are the threats before we know what are the measures to counter these threats. We really are not in a position to say, as of now, what are the immediate threats. I do not believe that there will be an absence of American influence because if that was so, then there will be problems for the region. But the American influence will be more and more matched by influence from the Soviet Union. But in the economic field, the Soviet Union cannot match the combination of American economic influence and Japanese economic influence. And therefore, there will be some continuation of this kind of economic system which has prevailed before. The country facing the most difficult period of economic growth is Thailand because it had three years lky/1976/lky1127.doc 2 of relatively uncertain political situation in Thailand, with the result that investments have slowed down. And we must hope that confidence can be restored -- confidence of Thai investors, and of American, Japanese and European investors in Thailand. Of course, once confidence is restored, investments will resume. The unemployment in Bangkok can be reduced and the country will face much less trouble from insurgents than if there is economic distress and unemployment. I think this is a very critical factor. This is one of the major concerns for the whole region. It’s not just a Thai problem because when the problems of insurgency become magnified, it is bad for Thailand and other countries in Southeast Asia. MOTOO KAEDE: An understanding was reportedly achieved on setting up the “permanent committee” between the ASEAN countries and Japan recently. May I have your comment on how ASEAN countries and Japan should develop their co-operation? Would you mind giving me an advice about the specific points that Japan should be careful in developing co-operation with ASEAN? PRIME MINISTER: This is a very tired question because so many people have asked this question and there have been so many replies. I think it would be very unproductive for me to give a new variation of old replies. lky/1976/lky1127.doc 3 I think, by and large, Japan and the Japanese Government -- Japanese industrialists and Mr. Miki, in particular, know what the problem is. And it is quite simple to establish in the minds of the people and the governments of ASEAN a confidence that Japanese intentions are not just to extract raw materials and to sell industrial manufactured products to the region; that in fact Japan intends to transfer skills, technology, capital into the region, however slowly it may be, to help the region develop so that they can, over several decades, become more industrialised. That is a very simple explanation of the problem. It cannot be solved by words. It cannot be solved by communique s. It must be solved by a series of actions which will make people in Southeast Asia believe that this is not just a PR exercise. MOTOO KAEDE: In China, after the death of Chairman Mao Tse-tung, there has been political turmoil. How does this affect the situation in Southeast Asia, particularly Chinese merchants living in the area? PRIME MINISTER: I think there has been very little turmoil since the death of Chairman Mao. In fact, it’s remarkable how this situation has been resolved in such a decisive way without bloodshed. I believe that this means that the policies which were recommended by the “Group of Four” will be pushed aside and sound government-to-government relations, including trade relations, will lky/1976/lky1127.doc 4 continue to develop and improve for everybody’s benefit. But, of course, we must also recognise that this is a government which is based on Marxist-Leninist- Maoist principles, and therefore they must, in accordance with those principles, give moral support to Marxist-Leninist parties and Maoist parties in the region. So we must expect that. MOTOO KAEDE: Recently, you went to Peking. And I understand that you met Premier Hua. I would like to have your view on the future course of the Premier Hua’s Administration. Do you think it will last long. Will there be another struggle among the leadership for power? PRIME MINISTER: I am not able to answer that question. MOTOO KAEDE: Now, in the United States, Governor Carter was elected President and he will make some new approach to PRC. Recently, Senator Mansfield made some reports on the US policy towards PRC. What do you think of the future relationship between the United States and PRC? lky/1976/lky1127.doc 5 PRIME MINISTER: The statement made by Senator Mansfield was, at the same time, refuted by another Congressional group that had visited China. I do not believe that the situation between the United States and the PRC can remain static. I think moves must be made to take further steps in accordance with the Shanghai Communiqu. é . Either moves must be made to show further developments or there may be a loss of momentum in the normalisation of relations which people like Senator Mansfield obviously feels is undesirable. But what those moves are, I don’t think we are in a position to say because I am quite sure President-elect Mr. Carter having stated all the things that he stood for during the election campaign and in their much publicised debates, is not likely to vary his position too much, too quickly. It is not possible. It would be in keeping with what we know of Mr. Carter. MOTOO KAEDE: You said Mr. Carter will make new moves on the line of Shanghai Communiqu. é . In that case what do you think these new moves will have upon Taiwan and Southeast Asia countries? PRIME MINISTER: Too early to say. I think we will have to wait and see who he appoints as his secretary of state, who he appoints as his secretary of defence and the secretary of treasury. lky/1976/lky1127.doc 6 MOTOO KAEDE: Well, now for Japan. Mr. Fukuda will probably be elected Prime Minister of Japan. And Mr. Fukuda will most probably boost up Japanese economy .... PRIME MINISTER: Will he? Is he going to inflate, or revive? MOTOO KAEDE: He will have to maintain a neutral economic policy with regard to the budget appropriation. But slightly, he will try to activate the economic activities in Japan. And in that case, there will be some effects upon Southeast Asia. What do you think about the Japanese economic effect upon Southeast Asia with regard to imports and exports? PRIME MINISTER: When the Japanese economy went down, it had a bad effect on Southeast Asia. So I must hope that the contrary is true -- that when the economy goes up, it will have a good effect on Southeast Asia. MOTOO KAEDE: What kind of reaction Southeast Asian countries will make towards this intensified economic relationship between Japan and Southeast Asian countries? PRIME MINISTER: We go back to the same question. lky/1976/lky1127.doc 7 MOTOO KAEDE: As you know we have now consultations in Brussels or in Paris for weeks with EEC and EEC General Assembly is going to request or demand us to boost up our economy so that we shall be able to import more from EEC countries. And in that case, as far as the Southeast Asia countries are concerned, Japanese exports to Southeast Asian countries may increase, imports also increase... PRIME MINISTER: That’s all right -- both. But I think the European Community not only wants you to boost up your economy but also to open up your market to make it easier to import -- both tariff and non-tariff restrictions. They also want you to share in the building of ships and not taking so many of the new orders for ships. Well, if as a result of importing more from Europe, exporting less to Europe, building less ships, and you try and export more to Southeast Asia and import less, that will have a very bad effect. ------------------------------------ lky/1976/lky1127.doc.

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