Singapore, 21 September 1965
884. Secret
Your 1095.1
Lee’s point about Pulau Sambu was that he wanted to get it across to the Indonesians that they should not think that any resumption of trade would give them access to Singapore or Malaysian territory—i.e. he was keeping them at arm’s length. He was not expressing any intention to resume trade, but saying that if the Indonesians offered this he would not object, on condition it was in Indonesian territory. What the Indonesians’ conditions might be could be put to Abu Bakar. Any formal resumption of trade therefore seems some way off, and probably subject to Indonesian conditions unlikely to be acceptable to Singapore.
2. At the same time, Phoenix Park2 spoke recently of ‘the upsurge’ of barter trade since separation, mainly to Malaya. Goh has also mentioned the Malayan/Indonesian trade to me. Though it is unlikely the Indonesians would agree to formal resumption of trade without a quid pro quo, perhaps they will allow a substantial revival of barter trade.
3. During a talk with Goh yesterday (Tuesday) I put it to him several times your point about correct dealings and consultation with Kuala Lumpur. He was non-committal, if anything rather resistant. Probably he just did not wish to discuss Lee’s handling of the matter, but I had half an impression too that he was not completely au fait with the situation. His attitude strengthened my suspicions that Lee was exaggerating when he spoke of ‘seven approaches’: I think some of these were probably pretty vague noises on the merchants’ net.
4. I also stressed to Goh that Singapore could not wish to give the slightest encouragement or excuse to Kuala Lumpur to flirt with Indonesia behind Singapore’s back. He was receptive to this.
5. I expect Goh to put your point to Lee, and I shall do so myself if an opportunity offers. I believe Lee’s behaviour arises from inflated feelings about independence and greed to keep the diplomacy to himself as long as possible, not from any intention to take independent action.
[NAA: A1838, 3006/4/9 part 30]
1 Document 331.
2 See footnote 2, Document 188.