culminating in a bold daylight assassination of the inspector general of police in downtown Kuala Lumpur. "Foreign Affairs. In terms of foreign policy, 1974 was the year of China. After two years of cautious negotiation, China and Malaysia decided to establish diplomatic relations, a step formalized when Prime Minister Razak visited Peking from May 28 to June 2. Malaysia acknowledged that Taiwan was an "inalienable part of China" and agreed to sever all governmental ties with the Nationalist Chinese government. In return, Communist China renounced any claim on Malaysian Chinese who chose Malaysian citizenship, and apparently disavowed any interest in the MCP guerrillas to whom Peking previously had extended at least moral and political support. The status of 220,000 stateless Chinese in Malaysia would be negotiated after an exchange of ambassadors. "Other foreign policy concerns included strained relations with the Philippines, resulting from Manila's charge of Malaysian support, through Sabah, for the Muslim rebellion in Sulu and Mindanao-an accusation denied by Kuala Lumpur. Similar, but less serious, tensions arose between Malaysia and Thailand concerning Muslim separatists active in the Southern Thai provinces bordering Malaysia. "U. S. Policy. "The United States welcomed the formation of Malaysia in 1963 and has maintained diplomatic relations ever since. Malaysia's helpful efforts to contribute to stability in Southeast Asia, the growth of U. S. - Malaysian economic ties, Malaysia's role in ASEAN, its self-reliant drive to develop its economy while combatting two Communist insurgencies, and its participation in the Five- Power Defense Arrangement are in harmony with United States policy and form a solid basis for U. S. - Malaysian friendship. "The two governments have engaged in close consultations on the matter of U. S. programs for the disposal of surplus strategic stockpiles of tin and rubber. The United States has consistently sought to carry out its stockpile disposal program in a way that would avoid serious effects on the economy of Malaysia and other producing countries. "U. S. friendship and support for the Malaysian developmental effort are demonstrated through the Peace Corps program, a small Public Law-480 (Food for Peace) program, a small military assistance program which provides training for Malaysians in the United States, a Fulbright educational exchange program initiated in 1963, and a cultural exchange program. The United States also seeks to promote U. S. trade and investment in Malaysia to the benefit of both countries. SINGAPORE "Singapore's main concern in 1974 was to maintain its high. rate of economic growth, while dampening inflation. "Domestic Affairs. Economic prospects for the new year were considerably dimmed by the world energy crisis and attendant price increases for petroleum. The government responded to the inflation problem with a series of sharp tax increases on automobiles, liquor, and tobacco, coupled with selective credit controls. Mid1974 figures suggested a 6-8% growth in gross domestic product for the year (compared with a recent annual average of 12.5%) and a declining but still substantial rate of inflation. The economy's strength was indicated by its diversification, expectations of a 1974 balance of payments surplus, a currency fully backed by gold and foreign assets, and the highest per capita income in Asia excepting Japan. "Internal security became an issue in January when Palestinian and Japanese terrorists attached a Singapore oil refinery, inflicting minor damage. In June, over 30 alleged members of an underground arm of the Malayan Communist party were arrested. The government strengthened its already formidable capability for controlling the press, the presumed target being two major Chinese-language dailies. "Foreign Relations. The Commonwealth Five- Power Defense Agreement was weakened by a scheduled withdrawal of Australian forces from Singapore at the end of the year. It was further eroded by indications that Britain's new Labour government planned to withdraw the 2, 250 British troops stationed in the republic. Strained relations with Malaysia, the other Asian signatory of the agreement, gradually improved during the year, despite various irritants. These included Malaysian efforts to build direct trade links with its export markets, bypassing Singapore's entrepot facilities. In addition, Malaysia's decision to establish diplomatic ties with Peking was seen in Singapore as potentially aggravating internal security problems within the republic. U. S. - Singapore Relations. "The United States has maintained formal diplomatic relations with Singapore since the latter became independent in 1965. Singapore's efforts to maintain economic growth and political stability and its active participation in regional cooperative movements are in harmony with U. S. policy in the region and form a solid basis for amiable relations between the two countries. The growth of U. S. investment in Singapore and the increasing numbers of Americans living in Singapore enhance the opportunity for contact between Singapore and the United States. Also, more and more Singaporeans are coming to the United States to study or visit. Realizing that up-to-date events in Southeast Asia are not covered in this chapter (because of the printing schedule), it is intended that an addendum to this chapter will be prepared to cover all major events that have occurred in this area of the world subsequent to the collapse of South Vietnam and Cambodia. Reading List 1. 2. 3. 4. Allen, Sir Richard. A Short Introduction to the History and Politics of Southeast Asia. New York: Oxford Univ. Press, 1970. Butwell, Richard A. Southeast Asia Today--and Tomorrow; Problems of Political Development. 2d ed. rev. New York: Praeger, 1969. Cooper, Chester L. The Lost Crusade. New York: Dodd, Drinan, Robert F. Vietnam and Armageddon; peace, war and the Christian conscience. New York: Sheed, 1970. 5. Fall, Bernard B. Ho Chi Minh on Revolution. New York: 6. 7. 8. 9. Halberstam, David. The Best and the Brightest, N. Y. : Hasdroff, James. "Vietman in Retrospect. "Air University Hosmer, Stephen T. Viet Cong Repression and Its Implication for the Future. Lexington, Mass.: Heath, 1970. Shaplen, Robert. Time Out of Hand; Revolution and Reaction in Southeast Asia. New York: Harper and Row, 1969. 10. "Southeast Asia, 1973, " entire issue. Current History, 11. December 1973. Vo Nguyen Giap. Banner of People's War: The Party's Military SOVIET UNION No relationship more vitally affects the peace and security of the world than that of the two major continental and nuclear powers, the United States and the Soviet Union. Since President Nixon's historic visit to the USSR in 1972, the two "superpowers" have entered into cooperative endeavors which have not been matched since at least World War II. That Moscow Summit produced a series of specific agreements, the most dramatic of which were a Treaty on the Limitation of Ballistic Missile Systems and an Interim Agreement on Limitation of Strategic Offensive Arms. Then there was an agreement designed to minimize the possibility of incidents at sea between the U. S. and USSR navies; measures aimed toward establishing more favorable conditions for the development of bilateral commercial and other economic ties, including the creation of a U. S. - Soviet Joint Commercial Commission; an agreement for cooperation in the fields of science and technology, including provision for the creation of a U. S. - Soviet Joint Commission on Scientific and Technical Cooperation; an agreement on measures and procedures for cooperation in the exploration and use of outer space; an agreement for cooperation in medical science and public health; and an agreement on cooperation in the protection and enhancement of man's environment, including consultations on specific cooperative projects. Since that initial Summit in 1972 gradual progress in the normalization of relations between the USA and the USSR was made, culminating in the November 1974 Vladivostok meeting between President Ford and General Secretary Brezhnev. Although the Salt II talks regarding the limitation of strategic offensive arms have been resumed, trade relations have been hampered by the Soviets refusal to accept the December 1974 Trade Agreement because of immigration requirements and a limitation on the extension of credits to the Soviet Union. The Joint Statement on Strategic Offensive Arms and the Joint Communique both signed at Vlodisvostok on 24 November are quoted below: Joint U. S. - Soviet Statement |