203. Letter From President Carter to Singaporean Prime Minister Lee1
Thank you for your thoughtful letter about our recent talks.2 I was very pleased to welcome you to Washington and to exchange views on important issues. I understand that you also had productive exchanges with Members of Congress and others outside the Executive Branch who help shape American opinion and policies.
As a result of our conversation, I have a far better understanding of Singapore’s singular economic success and of its specific concerns about the United States’ policy. I obtained a deeper appreciation of the degree to which Singapore’s interests are linked organically to regional and international economic cooperation, peace and stability—for which [Page 695] the United States has long accepted significant responsibilities. I welcome your clear recognition of the basic causes of those economic problems which are of such deep concern to developing countries in general and to the countries of Southeast Asia specifically. I share your general diagnosis of international economic difficulties. Sluggish growth in the industrial countries creates an environment in which protectionism flourishes.
That is why I have taken measures to stimulate the United States’ economy, and sought through the London Summit Meeting3 to induce other industrial nations to do likewise. The United States is also intent on establishing a better equilibrium in international payments, so that the path of economic recovery will not be stifled by serious imbalances. For this reason, I am particularly anxious that the still-fragile state of the world’s monetary system not be further strained by increases in oil prices. The United States is engaged in a most serious discussion of this subject with the Organization of Petroleum Exporting Countries and with other consumers.
We will continue to work hard on these tasks—on which I very much appreciate your understanding and support—and I wish to assure you that we are deeply committed to resisting the demands for protectionism. But, as I am sure you realize, we may not always be successful in thwarting them unless we can make good progress in reducing all countries’ trade barriers. A speedy and effective conclusion of the Multilateral Trade Negotiations should substantially reduce pressures for protectionism.4
I agree on the importance of sustaining a free flow of capital, technology, and management services from the developed to the developing countries. It was useful for me to hear directly your concerns about tax deferral legislation at a time when we are still developing our tax reform package. The State Department will soon communicate to your government our proposals for a possible investment treaty,5 which could provide another means of bolstering confidence on the part of potential American investors in Singapore.
I have kept in mind your presentation of Singapore’s desire for a more effective air defense system, such as a battery of the Improved Hawk missiles. In accordance with our discussion, I have reviewed the matter and have concluded that authorizing that sale now would not be consistent with the arms transfer policy which I announced [Page 696] earlier this year. I do want to confirm our approval of the sale to Singapore of production data for the M–203 grenade launcher as a special exception to the arms transfer policy on co-production agreements.
I very much appreciate your willingness to allow the staging of P–3 flights. As you requested we have discussed the matter with the Chairman of the Senate Foreign Relations Committee and the House International Relations Committee who foresee no problems or objections. We will have a specific proposal soon for your consideration.6
In addition, I understand that the United Nations High Commissioner for Refugees has been apprised of your most welcome intent to set aside a transit facility in Singapore for Indochinese refugees seeking initial asylum. We trust that the appropriate assurances will soon be forthcoming from the United Nations. You can count on the strong support of the United States Government.
The United States welcomes the new vitality of ASEAN and the recent beginning of an ASEAN-US economic dialogue. We look forward to the series of detailed consultations before the next session of the ASEAN-US talks, to be held in Washington in 1978. It may be that not all of the suggestions, whether from the U.S. or ASEAN side, will prove to be feasible. But we have initiated something of potentially great importance; it deserves to be nurtured.
Our conversation made me understand your reputation as a statesman who is an acute observer and analyst of the meaningful issues of our time. Your visit enhanced the already warm relations between Singapore and the United States. I look forward to working together with you, and I trust that you will continue to give me the benefit of your experience and your counsel.
Sincerely,
- Source: Carter Library, National Security Affairs, Staff Material, Far East, Armacost Chron File, Box 5, 11/11–30/77. No classification marking.↩
- See Documents 199 and 201.↩
- See Foreign Relations, 1977–1980, vol. III, Foreign Economic Policy, Documents 27 and 28.↩
- See Foreign Relations, 1977–1980, vol. III, Foreign Economic Policy, Document 209.↩
- Not found.↩
- Not found.↩