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India and China are key to peace in Asia

Amit Baruah

Singapore's Foreign MinisterGeorge Yeois no stranger to India. Trade between the two countries, estimated at $10 billion in 2005, is booming and bilateral relations have never been better. Excerpts from an exclusive interview in New Delhi:

— PHOTO: AFP

George Yeo: "India's growing influence in the world is very positive. It's good for Singapore, it's good for the region."

How large are Singapore's investments in India? And what impact has the Comprehensive Economic Cooperation Agreement (CECA) had on trade between the two countries?

CECA, so far, has been a success. Last year, trade jumped 40 per cent. In the first seven months of last year, we became the second largest investor in India. So, there's considerable interest [being shown] by Singapore companies in increasing their exposure to India.

During my visit, I could sense a palpable air of confidence among business leaders, especially those I met at the CII [Confederation of Indian Industry] partnership meeting in Bangalore. This was confirmed when I met your Finance Minister [P. Chidambaram] this [Monday] afternoon.

I've known him for many years so I could sense the optimism in him. His main fear is about inflation and how to make sure that food prices are kept low. But there are supply-side problems. If the problem could be solved by imports, then it's an easy issue.

I visited Kolkata... it was much better than I expected. So many new development projects taking place all at once. I met Chief Minister Buddhadeb Bhattacharya, who was very clear-headed, very pro-investments, pro-business. I was quite relieved that his Marxism is one, which is very progressive and attuned to the needs of the market.

You met the External Affairs, Commerce, Finance, Petroleum, and Human Resource Development Ministers and called on Prime Minister Manmohan Singh — all in one day. Can you give us a sense of your meetings? What is going to take India-Singapore relations forward?

Relations are excellent and we must build on this to broaden and deepen them. From Singapore's perspective, India's growth, India's growing influence in the world is very positive. It's good for Singapore, it's good for the region.

We have worked hard for India's deep engagement of Southeast Asia and East Asia. [Prime Minister] Manmohan Singh has just come back from the second East Asia Summit [EAS] — I mentioned to both the Prime Minister and Foreign Minister [Pranab Mukherjee] that later this year Singapore will be taking over as chairman of Asean [Association of Southeast Asian Nations] — and we hope to work with India on strengthening its links with East Asia.

There are a number of irons in the fire. Between Asean and India, there's a free trade agreement being negotiated. And with the EAS a number of projects have been talked about — one specific project being [reviving the ancient university at] Nalanda. There's a very positive response from the other countries.

India's links with China are very important and will help maintain a larger environment of peace for development. If we can keep this going for another generation, it will be a transformed Asia.

A lot's been written about the peaceful rise of India and China. How does Asean look at this story?

With a mixture of opportunity and concern. Opportunity in the sense that the growth of India and China should give us [Asean] an additional lift. Concern because in specific sectors both countries present to us competitive challenges.

You [China and India] are in different ways low-cost producers. And, if we do not find niches for ourselves, then we may be dealt out by Chinese manufacturing and Indian services. So, we've got to think through how to move forward, working complementarily with India and China.

This mixture of opportunity and challenge has been a galvanising force for the 10 countries of Asean pushing us closer together and impressing upon us the need for deeper and faster integration.

What do you see as India's role in the emerging Asian security architecture?

India has very legitimate interests in South East Asia — the freedom of the air and sea lanes. We see India's presence as being a beneficial and beneficent one to all of us in Southeast Asia.

Relationships are growing between the Indian and Singapore armed forces. Last year, we had artillery units do live firing side-by-side with Indian artillery units. Our air force cooperation is deepening and India is providing us with very useful facilities.

I would say that India's engagement with South East Asia is comprehensive, strategic and growing from strength to strength.

The United States is out of the East Asia Summit process. Does that worry Asean?

I don't think it's in anyone's interests to keep out the U.S. — for that matter the Europeans. So, whatever we do regionally, should not be exclusive, or create a bloc, or in any way discourage the continuing presence of the Americans or the Europeans.

In the Pacific, we have APEC [Asia-Pacific Economic Cooperation], which to many of us is the premier organisation holding the two sides of the Pacific together. To us, it is the single most important institution holding China and the U.S. together in a regional framework.

In the same way, within Asia itself, Japan, China, Korea, the 10 countries of South East Asia, Australia, New Zealand, and India meet within the rubric of the EAS. That's half the world's population and growing very rapidly. And, if we keep talking and keep working together, maintain the peace and resolve our conflicts in a peaceful way for one more generation ... millions of people will be lifted from poverty.

Is APEC looking to expand its membership to include countries like India?

Singapore's position on APEC and EAS is that of a moratorium. You cannot open the door for only one country. The moment you open the door because there's a long queue — you have to bring in other, maybe 5, 10 or 15 countries. And they will make APEC unwieldy. In the same way, we are hoping that the EAS will stay where it is.

Myanmar has withdrawn more into its shell despite its engagement with Asean of late. What does Asean propose to do about Myanmar?

We decided last year that we should not be badgering Myanmar because its internal developments affect its own people the most.

They bear the consequences of the decisions we take. We can give advice, we can urge them on, we can nag them, but in the end they [the people of Myanmar] bear the consequences.

So, we decided to give them more space, but it also means that we cannot be defending them internationally. They [the Myanmar junta] sent a strong signal when they treated in very different ways the visit of [Ibrahim] Gambari, the U.N. High Representative and the High Representative of Asean, the Malaysian Foreign Minister [Syed Hamid Albar].

When the U.N. official visited Myanmar, he met [pro-democracy leader] Aung San Suu Kyi, he met the top [junta] leaders.

When Syed Hamid went there, he didn't get the same access. So, it was a clear signal to Asean. We decided ... to take a step back. They [Myanmar] are still within the family; we give them more space, but we cannot be answering for all the strange things going on in that country.

We can't step too far back. If we step too far back, it will create strategic instability in our region. Myanmar is a buffer state between China and India. Both China and India eye each other's moves carefully and warily. If there are internal problems in Myanmar, both [China and India] in self-defence might have to intervene.

Does Singapore have security concerns relating to the deployment of personnel after its Ports Authority took over the management of Gwadar port in Pakistan?

I've been informed that Islamabad wanted the PSA [Ports Singapore Authority] to take over Gwadar port. I think there are strategic reasons why they chose PSA — Dubai is interested but, then, Dubai is a competitor to Gwadar.

If they give it to the Chinese, I think many people will feel very troubled. PSA may be a kind of a safe, detached party, which can be fair to everybody. So, we hope that playing such a benign role will not attract unwelcome attention or molestation.

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