VICE PRESIDENT'S VISIT TO SINGAPORE: PRIVATE MEETING WITH PM LEE APRIL 28 1982

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83B00551R000200060014-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 21, 2016
• Document Release Date: July 9, 2008
• Sequence Number: 14
• Publication Date: May 24, 1982
• Content Type: CABLE

Approved For Release 2008/07/09: CIA-RDP83B00551 R000200060014-7
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we0IS
Es?s 3ZSS8R RDSaI 511418T (TNAYEA, HARRY EST.= OR-N
TAas1 OYIP (BUSH, GEORGE), SN
3U.3J1 _ VICE PRESIOENTIS VISIT TO SZNGAPORE$ PRIVATE
Ss --3UMPARY1. VICE PRESIDENT PUSH AND PRIM[ MINISTER t.EE,
IN A BRIEF MEETING I THE PM'S SECOND FLOUR OFFICE,
FOCUSED PRIMARILY ONNTHE U.S. ECONOMY, MR. RUSH SPOKE??
HOPEFULLY ABOUT LONGTERM PROSPECTS,. THE TWO LEADERS-
AGREED THAT A SOLUTION TO THE FALKLAND 136AND CRI3I3.
C
ST BE FOUND, -MR. LEE DESCRIBED ISRAEL'S MIN AS A
WO103TEE" AND WARNED; OF INCRIA31NO Us$, ISOLATION ON
ARAB?ISLFlL ISSUES, MOs BUSH POINTED OUT THAT RUIN I$
"049-POPULAR THAN EVER, THZGVICE PRESIDENT, ASSESSING
RNE CENTRAL AMERICAN DEVELOPMENTS, SPOKE OF EUROPEANST
LACK OF UNDERSTANDING; THE VICE PRESIDENT, IN THANKING
THE PRIME MINISTER FOR HIS HOSPITALITY, SAID HE HOPED
TO SEE HIM IN WASMINF:TON, END SUMMARY
3s IMMEDIATELY FOLLO1IN2 THE MEETING WITH THE LARGER'
GROUP IN Ty 1STANA CABINET ROOM, THE VICE PRC3ID.lNT
AND THE PRIME MINIDYEo, ACCOMPANIED BY FOREIGN MINISTER
State Dept. review completed
SECRET
NOT TO SE REPRODUCED W~THOUT THE AUTHORIZATION OF THE EXECUTIVE SECRETARY.
MEETING WITH PM LEE APRIL 28p Still
ce ENTIRE TEXT,)
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DMANABALAN AND AMBASSADOR THAYER, MET FOR 25 MINUTES IN
THE PRIME HINI3TER13SECOND FLOOR OFFICE,
4, AFTER A BRIEF DISCUSSION OF US?CMINA RELATIONS
-tSEPTELI, THE VICE PRESIDENT RAISED THE PALKLANO ISLANDS
CRI3I3? PRIME MINISTER LEE SAID IT HAD ELEMENTS OF A
GILBERT AND SULLIVAP OPERA, OR IT COULD BE LOOKED UPON
AS AN ABSURD COMEDY THAT MIGHT BECOME A TRAGEDY, MR,.LEE
SAID HE TNOUG$T THAT SURVIVAR30F 007$ THE ANGUJTZNt AND
BRITISH GOVERNMENTS WE AT STAKE, E3PECIAL4Y
MRS, TKATCHER i 3 FUTURE. HE SAID ME MAD ONLY GET FOREIGN-
SECRETARY PYM our Did-NOT KNOW HIM, THE VICE PRESIDENT
AND THE PRIME MINISTER AGREED THAT A RE30LUTION MUST gE
FOUND-@? %
Ss MR. BUSH ASKED I~ MR. LEE MAD ANY AOVjCg ON THE
MIDDLE EAST, THE PRIME MINISTER RESPONDED BLUNTLY BY
SAYING THAT SADAT MAP SEEN KILLED BECAUSE THE U,S. MAO
NOT HELPED HIM ENOUGH AFTER NOTING THAT MANY
GOVERNMENTS ARE NOW ANGRY ATHXWE UNITED $TATEA 8ECUL39
OF OUR UN VOTE, MR, U-H DESCRIBED SOME OF-TMB'PROdLEMS(
HAD EXPERIENCED IN HANDLING THE ISRAELIS AND E3PECIALLY
PRIME MINISTER SEi:IN~ MR, LEE CHARACTERIZED BEGIN Al A
'DISASTER,' BUT MR,IBUSH NOTED THAT THE ISRAELI PRIME
MINISTER, NEVERTMELE3St 13 MORE POPULAR THAN EVER,
APPARENTLY 40, MR, LEE AGREEO, BUT ME AOOEO THAT THE
ISRAELIS WERE *DOING THEMSELVES NO GOQDIs ITMEY CANT
LIVE ON THE NARROW BASE OF AMERICAN ARMS ALONtt SADAT,
HE SAID, GAVE THE ISX!AELIa A CMANCt may A LEAP OR VISION,'
THE PRIME MINISTER RECALLED THAT 31917, WNEN HE $41 VICE
SECRET
INCLUDING NIT
.MIN THE U,3#t THAT T E ADMINISTRATION
OTTO 8E REPRODUCED WITHOUT THE AUTHO >lY ' - -^ '4_
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 Approved For Release 2008/07/09: CIA-RDP83B00551 R000200060014-7
e artment ofState
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NOT TO BE REPRODUCED WITHOUT THE. AUTHORIZATION OF THE EXECUTIVE SECRETARY
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PRESZQENT, MAC TOLD M1N IN 197e Of Mts DETERMIN5HAMON To
SETTLE THE I3RAELI PRQ EM,. THE UNZTED 5TATE$, THE PRIME
MINISTER CONTINUED, 3 GOING TO FIND ST39LF INCREASINGLY
ZBDLATED ON THE 1330 r WITH THE EUROPKAH31 THE JAPANESE
AID THE THIRD WORLD ALL MOVING AWAY
.ME SAID $MILL BE IN A MINORITY OR ONE,' M. BUSH
RIPLUEO TMJ T813 Is VIRTUALLY THE CASE NOW aw
'REGI ETTABLEr BUT A FACT OP LII'E,?- Ni ENT ON TO NOTE,
HOWEVER, THAT THE A$AC3 DEAL HAD HELPED W1TL THE MOOtkATE ?
ARA83, BUT THE SITUATION 13 SAD NEVERTMELE38,; THE PRIME.
MIN13TIR SAID IT 13 NBLEAK" AND DEVELOPMENTS HAVE GIVEN -
THE U.B. LITTLE ROOMp
.e,. FOLLOWING A BRSEr EUNMANGR QN THi COMPLRXITY OP
RELATIONSMIP5 IN THE!MIDDLE EAST, THE PIRSONALZT;Ea
LEADING IRAQ AND 1RAN# AND THE RECENT AMERICAN PURCHA3E
I07- ZMANIAN OIL, IMR, BUSH NOTED
XAT THE AMERICAN PUBLIC''
F99LING3 TO$, 3 84?, .43 58)) ?549, i, 1040 L91 REPLIED
THAT AMERICANS 'HAVE'TO LIVE WITH THE PACT THAT YOU LET'
T J SHAM 60 DOWN THE dRAZN,' 3AOAT, MR, LEE SAID, NAO
?3HAMED THE WORLD, INCLUDING HER BY HIS TREATMENT OP THE
3MA,H,
Pi T" t PRIME D I)KZS ER MENTIONED OXOeLEMS THE'
AOMZNISTRATZON Is MAWING WITH THE LIBERAL PRESS R90ARDINS
CENTRAL AMERICA, Cf7 1013 a438s3,Q ?e+63$3 ?$ .4.$Tof
SITUATION 010 NOT 3EEM TO BE GETTING IIETT94 CMR, LEE
INTERJECTED) 'WORSE.I')s IN EL-SALVADOR D)AUeuZ33gN Ziy
NOW._TALKING MORE MOpER~rELYI THE .MONDDEYAS 3ITUAT108 .Ii
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PAGE. 81 SINGAP 04493 82 OF 02 -8408032 Q
ACTION NQOS?8B
E L MATH CONGRESShuULO RESULT ULTIMATELY IN LOWER
INTEREST RATES. ME MENTIONED THAT MERRILL LYNCH', CMIE?
ECONOMIST MAO PREDICTED THAT A FOUR-POINT-DROP IN THE'.
PRIME MOULD- BE THE RE;_SUL.T OF 1ATZ3FACTRRY N900TIATIONS
WITH THE HILL.
Ss THE VICE PRESIDENT COMPLIMENTED THE PRIME MINISTER ON
SINGAPOREV3 ECONOMIC UCCESS? MM, LEE SAID HE I1AD SEEN
LUCKY, FOR EXAMPLE, HE EAST ASIA ENVIRONMENT GENERALLY
MAO SEEN SALUBRIOUS AND BOTH DINBAPOR618 NC 1HSClti. 1LRE -
OIL-EXPORTERS, PORTU' ATELY, .ME ADDED, $1NBAPORC MAO A
SECRET
INFO OCT.80 AD3.8 #080 M -
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C 049737Z MAY 82 2FF
RM AMEMBASSY SINGAPORE
TO SECSTATC WASMDC I MEDIATE 3101
3 E C Rr E T SECTION 2 OF 82 SINGAPORE 04483 .
MID 13
ONOT SA901 GUATEMALA MAD 'SOME'HOPE! PANAMA IS 'NOT TDO
SA9"1 C03TA RICA 13 AN "ECONOMIC BASKET CASE: OUT
BUPPORTIVE.w THE VICE. PRESIDENT LAMENTED THE DIFFICULTY
OF GETTING OUR EUROPEAN FRIENDS TO UNDERSTAND TMs
CENTRAL AMERICAN ISSUES,
as MRs LEE SAID NO AMERICAN PRESIDENT STARTS WITH A
CLEAN LEDGER, PRESIDENT REAGAN MUST CARRY THE SUROLN
OF-DEBTS LEFT BEHIND BY PRESIDENT CARTER, TNIS LED TO A
DISCUSSION OF THE OEOREE TO WHICH THE PROBLEM OP INFLATION
.CQMPLICATE3 U9S9 FOREIGN POLICY, THE VIC& PRESIDENT
TOLD THE PRIME MINISTER WHAT HE MAD SAID-ABOUT THIS IN
MIS TALK AT THE AMERICAN OU5INE33 COUNCIL 0REAKFA3T,
STRE33ING MIS MOPE, 093PITE THE SITUATION TO DATM, THAT
A D A
NOT TO SE REPRODUCED WI,(HOUT-THE AUTHORIZATION OF THE EXECUTIVE SECRETARY.
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PAGE 82 SINGA' 04493 92 OF 92 849813t
HARDvWORK ING LABOR F RCE THAT MAD NOT 5UF?EREO.OY Ttit
DOWNTURN.
IR? MR. BUSH POINTE OUT THAT SOME 0000 THIN68 MAD =:-
MAPPENEO.IN THE U,5,~ECONOMY, CITING TM! PREIIDENTIS.
TOUGH POSTURE TOWARD, PATCO AND RECENT WAGE AGREEMENTS,
HIGH WERE VERY HEALTHY, E3P!CIALLY WHEN SEEN Is HISTORICAL
CONTEXT, ONCE WE GET OUT OF THE RECESSION, HE SAID,
ADMINISTRATION POLICIES WILL PAY Off.
U. THE PRIME MINISiER MENTIONED THAT DATA RE3CURCE13
OTTO ECKSTEIN HAD TMECRIZEO IN 1077 THAT $EVEN.EZGMT.YEARS
Of #ZGHT.NINE PERCENT UNEMPLOYMENT ARE NECESSARY TO. .
ACHIEVE THE WAGE MOD"ATZON REQUIRED FOR RECOVERY.
ANSWERING THE VICE PRV.3I0ENT, ' THE PRIME MINZ5TER ' SAID NE
DOESNIT KNOW WHAT EC03TEIN IS SAYING NOW,.. RETURNING TO
THE SUBJECT Of LA5OR SLTTLEMENTS IN THE U.S,, MR.' Bush .
SAID THEY ARE SIGNIFICANT, ALTHOUSH PERHAPS NOT YET
SUFFICIENT TO HAVE AN IMPACT BY THEMSELVES. ME AGREED
THAT If HIGH UNEMPLOYMENT WERE TO CONTINUE TOO LONG, THE
REAGAN ADMINI3TRATIO 1 WOULD BE OUT Of OPPICE AND THE U_.S.
GOVERNMENT WOULD BE AEMAVINS LIKE THE MI.-TY_ERAND
GOVERNMENT, THE PRIME MINISTER NOTED THE PERVERSE
REACTIONS Of FINANCIAL. -MARKETS TO THE REMAVIOR OF THE
MONEY SUPPLY, POINTING OUTPHAT THE UNCERTAINTIES MAKE ---
HIGH INTEREST RATES HARD TO $MAKE OFF, IN ANY CASE,
HE SAID, DEFICITS MU T BE BROUGHT DOWN,
12. THE VICE PRESIDENT SAID THE CHOICE Ii BETWEEN. REDUCING EITHER OEYE tam EXPENOITURE3 OR ENTITLE$ENT3, '
THE PRIM! MINISTER INTERJECTED THAT THE-U39 HAD TO
C ANGE ITS INDEXING Of ENTITLEMENTS. THE VICE PRESIDENT
WENT ON TO SAY THAT CAE PRESIDENT FBEj.$ THAT IF TAXE6 =
SECRET
- NOT-TO BE REPRODUCED WITHOUT THE-AUTHORIZATION OF THE EXECUTIVE SECRETARY
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mepartment al Grate
T
SECRET
PA AE 13 SINGAO 04403 ^Z Of 92 949823X
ARE NOT. REDUCED, THERE WILL. BE NO INCREAsEIN INVL5TMENT.
HE MENTICNEO PROBLEMS MITI! SPEAKER O'NEILL BUT SAID MAYBE
? -THEY CAN BE WORKED 0UT7 ELECTIONS ARE NEARING# THE ..
"DEMOCRATS ARE REIUCTAN`'TO RAM TAUS, CONGRESSMEN
CAME BACK FROM THE RECESS HAVING FOUND THAT THEIR
CON3TITUENT3 ARE ?NOJ YET ANTI'REAGANOMICSs THEY REMAI.M
FED UP WITH INFLATIOP.
t31. THE VICE PRESIDENT ENDED THE MEETING BY WARMLY
THANXINS THE PRIME M~NI5TER FOR HIS HOSPITALITY, SAYING.
ME WOULD MOPE TO SEE HIM IN WASHINGTON,
14. .THIS MESSAGE HA4 BEEN CLEARED BY THE VICE PRE3109NTIG
PARTY, THAYER
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