VZCZCXRO9447
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHGP #2695/01 2360645
ZNR UUUUU ZZH
R 240645Z AUG 06
FM AMEMBASSY SINGAPORE
TO RUEHC/SECSTATE WASHDC 0981
INFO RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 02 SINGAPORE 002695 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV SN
SUBJECT: SENATOR BOND'S MEETINGS WITH SINGAPORE'S SENIOR 
LEADERSHIP 
 
¶1. (SBU) Summary: Discussing the Middle East situation, 
Singapore's senior leadership told Senator Christopher "Kit" 
Bond (R-MO) that Hezbollah had won a strategic victory 
against Israel and the reputation of the Israeli Defense 
Forces had been damaged by its poor performance in Lebanon. 
Foreign Minister George Yeo expressed concern about the 
growing influence of radical Islamic groups in Indonesia.  He 
predicted that Malaysian Prime Minister Abdullah Badawi would 
survive the public attacks by former PM Mahathir Mohamad, but 
said Badawi's reputation would be diminished.  Turning to 
trade issues, FM Yeo said the U.S.-ASEAN Trade and Investment 
Framework Arrangement would help promote trade, but added 
that bilateral Free Trade Agreements (FTAs) would be more 
effective.  Prime Minister Lee Hsien Loong said that without 
a broad-based push for freer trade, there would be a gradual 
erosion in the vitality of the international trade regime. 
End Summary. 
 
¶2. (U) During his August 19-21 visit to Singapore, Senator 
Christopher "Kit" Bond (R-MO), accompanied by the Ambassador, 
met separately with Prime Minister Lee Hsien Loong, Foreign 
Minister George Yeo and Minister of Defence Teo Chee Hean. 
 
Middle East Situation 
--------------------- 
 
¶3. (SBU) PM Lee told Senator Bond Israel had not thought 
through its military response to Hezbollah's attacks from 
southern Lebanon and had done a poor job of preparing its 
troops for the mission.  Hezbollah had stood its ground and 
inflicted casualties.  Due to its willingness to sacrifice 
"men, women and children," Hezbollah had won a strategic 
victory over Israel, he argued.  Defence Minister Teo said 
the reputation of the Israeli Defense Forces had been damaged 
by its poor performance in Lebanon.  A long-standing tenet of 
the Middle East -- Israel's military "invincibility" -- had 
been changed.  Other forces in the region would now be 
emboldened to cause trouble for Israel. 
 
¶4. (SBU) While radical Islamic groups "railed" against the 
problems in their own countries, they were unable to solve 
them or provide people with a better life, asserted Defence 
Minister Teo.  In the long term, the war against Islamic 
radicalism had to be won on the ideological front by moderate 
Muslims putting forward a different vision and model for 
their societies. 
 
Engagement with ASEAN 
--------------------- 
 
¶5. (SBU) Singapore's leaders stressed the importance of 
continued U.S. engagement with ASEAN.  FM Yeo opined that the 
U.S.-ASEAN Trade and Investment Framework Arrangement would 
help promote trade, but added that bilateral Free Trade 
Agreements (FTAs) would be more effective.  He also expressed 
hope for a summit between President Bush and ASEAN leaders in 
2007 to mark the 30th anniversary of the ASEAN-US dialogue 
partnership, possibly on the heels of the APEC Summit in 
Australia.  Noting the problem of including Burma, he 
suggested both sides could use the EU-ASEAN model to deal 
with Burma's participation at a lower level. 
 
¶6. (SBU) Defence Minister Teo said the U.S.-Singapore FTA had 
an important demonstration effect on Singapore's neighbors. 
Several ASEAN states had originally criticized Singapore for 
pursuing bilateral FTAs with the United States, Australia, 
and New Zealand, but now they saw the value of them and 
wanted their own trade pacts as well. 
 
Support for Free Trade 
---------------------- 
 
¶7. (SBU) PM Lee lamented that the Doha round of WTO talks had 
stalled.  Without a broad-based push for freer trade, there 
would be a gradual erosion in the vitality of the 
international trade regime.  He noted the strong 
protectionist interests in the EU, particularly France, but 
argued that only the United States could set the tone to move 
forward.  Senator Bond discussed the importance of exports to 
Southeast Asia for Missouri, but added that there was 
significant opposition to globalization in the U.S. Congress, 
citing the negative reaction of many lawmakers to the aborted 
Dubai Ports World deal earlier this year. 
 
Indonesia 
--------- 
 
¶8. (SBU) FM Yeo expressed concern about radical Islamic 
groups in Indonesia.  He asserted they were growing stronger, 
were highly organized, and were influenced by groups and 
events in the Middle East.  Indonesian President Yudhoyono 
 
SINGAPORE 00002695  002 OF 002 
 
 
was the only leader capable of keeping the country together. 
President Yudhoyono and Vice President Kalla constituted a 
formidable team, but if those two split, the more Islamic 
parties, such as the PKS, would be the main beneficiaries, he 
asserted. 
 
Malaysia 
-------- 
 
¶9. (SBU) Discussing the on-going public dispute between 
Malaysian Prime Minister Abdullah Badawi and former PM 
Mahathir Mohamad, FM Yeo said Badawi would survive the public 
attacks by his predecessor.  Badawi's reputation, however, 
would be diminished.  While Badawi himself was "pristine," 
some of his advisors were not and this would come out in the 
open if they quarrel continued. 
 
Cambodia 
-------- 
 
¶10. (SBU) Senator Bond noted that he would be making his 
first trip to Cambodia and would meet with Prime Minister Hun 
Sen.  FM Yeo said Cambodia was slowly rebuilding and there 
was some sense of hope in the country.  While Hun Sen was a 
"brutal" and "partially civilized" man, he was the best 
leader for Cambodia.  PM Lee said Hun Sen had no apparent 
philosophy, but always made sure that he ended up on top in 
the Cambodian political system. 
 
Defense Cooperation 
------------------- 
 
¶11. (SBU) Senator Bond thanked Defence Minister Teo for 
Singapore's selection of the F-15SG for its next generation 
fighter aircraft.  Defence Minister Teo said Singapore was 
pleased with the extensive security relationship with the 
United States, our growing technological cooperation, and the 
opportunity for Singapore's F-15SG squadron to train at the 
U.S. Air Force base in Mountain Home, Idaho. 
 
¶12. (U) CODEL Bond cleared this message. 
HERBOLD