PRIME MINISTER'S DISCUSSION WITH BRITISH AND UNITED STATES GOVERNMENTS (Request for Statement)

[Mr Speaker in the Chair]

Mr J.B. Jeyaretnam asked the Prime Minister if he will report to the House on the discussions he has had with the British and United States governments on matters concerning and touching Singapore on his recent visits to the United Kingdom and the United States of America.

The Prime Minister: Mr Speaker, Sir, Singapore's bilateral relations with both Britain and the United States are excellent and there were no bilateral political or economic issues that were contentious or required detailed discussion. Both visits were opportunities to renew contacts at the highest levels of the British and American governments, to strengthen existing ties, and to exchange views on issues of mutual concern.

The state of the American economy was a major subject. The prolonged recession in the United States is being increasingly felt in Singapore and I registered our concern. The leaders in Washington want to tackle the problem at its roots, which is to cut down social security spending under the "entitlements" programme, which are indexed or linked to the consumer price index. However, my impression, gathered from talking to several leading members of the Senate and of the House of Representatives, was that in an election year, the Congress could not contemplate legislating such welfare cuts.

President Reagan's top aides were confident that there would be an economic recovery later in the year, and that social spending cuts would become possible after the mid-term Congressional elections. I was particularly encouraged by Commerce Secretary Malcolm Baldridge's commitment to free trade and of his stand against protectionism.

I brought abreast American and British leaders on developments in South-east Asia, in particular, the dangers arising from Vietnam's occupation of Cambodia. I explained the circumstances which finally led to the successful formation of the Coalition Government of Democratic Kampuchea to combine all patriotic Cambodians to oppose Vietnamese occupation. American and British leaders were aware of the implications for ASEAN of Vietnam's continuing occupation of Cambodia. Both governments will continue to support ASEAN's efforts to find a political solution by a Vietnamese withdrawal and the holding of a UN supervised elections under the terms of the UN resolution at the International Conference on Kampuchea (ICK) in July 1981, to allow the Cambodian people to freely elect their own government. I was also reassured by America's commitment to Thailand's security and America's obligations to Thailand under the Manila Pact.

Much of the other reportable items of my discussions with individual leaders have already been reported immediately after the meetings, by the news agencies and by several Singapore newsmen who accompanied me.