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67
ACTION EA-09
INFO OCT-01 ISO-00 CIAE-00 DODE-00 PM-04 H-02 INR-07 L-03
NSAE-00 NSC-05 PA-02 PRS-01 SP-02 SS-15 USIA-15
AID-05 COME-00 EB-07 FRB-01 TRSE-00 XMB-04 OPIC-06
CIEP-02 LAB-04 SIL-01 OMB-01 FEA-01 INT-05 IO-13 /116 W
--------------------- 039037
R 130100Z OCT 76
FM AMEMBASSY SINGAPORE
TO SECSTATE WASHDC 6333
INFO AMEMBASSY BANGKOK
AMEMBASSY JAKARTA
AMEMBASSY KUALA LUMPUR
AMEMBASSY MANILA
AMEMBASSY SUVA
UNCLAS SINGAPORE 4674
E.O. 11652: N/A
TAGS: EGEN, EFIN, PFOR, ASEAN, SN, FJ
SUBJECT: IBRD-- IMF DELEGATES VISIT SINGAPORE
1. SUMMARY: VARIOUS PERSONALITIES VISITED SINGAPORE LAST
WEEK AFTER ATTENDING THE IMF-IBRD ANNUAL MEETING IN MANILA.
AMONG THESE, CHASE MANHATTAN'S DAVID ROCKEFELLER SAID HIS
BANK WOULD BE "VERY INTERESTED" IN FINANCING ASEAN INDUSTRIAL
PROJECTS IF THEY APPEARED SOUND. SINGAPORE'S FINANCE MINISTER
HON SUI SEN, RETURNING FOR TWO DAYS PRIOR TO LEAVING FOR
NEW ZEALAND, REMARKED THAT THE IBRD WOULD HELP TO "FIRM UP"
THE FIVE ASEAN INDUSTRIAL PROJECTS. FINALLY, CHARLES STINSON,
FIJI'S FINANCE MINISTER, SAID HE WOULD ASK SINGAPORE TO REDUCE
THE COST OF ITS FUEL EXPORTS TO FIJI. END SUMMARY.
2. THREE RECENT VISITORS TO SINGAPORE HAD SOMETHING OF MORE
THAN PASSING INTEREST TO SAY WHEN THEY CAME TO TOWN. CHASE
MANHATTAN'S DAVID ROCKEFELLER SAID HIS BANK IS AWARE OF THE
FIVE ASEAN INDUSTRIAL PROJECTS AND WILL LOOK AT THEM CAREFULLY
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WITH A VIEW TO FINANCING THEM. ROCKEFELLER ALSO EXPRESSED
INTEREST IN FINANCING SINGAPORE'S SHARE OF THE PLANNED S$2
BILLION PETROCHEMICAL PROJECT PLANNED FOR AN OFFSHORE ISLAND.
ROCKEFELLER ALSO RESPONDED TO PRESS QUESTIONS IN IDA REPLEN-
ISHMENT (HE WAS EMBARRASSED THAT THE CONGRESS IS RELUCTANT
TO COMMIT ADDITIONAL FUNDS), THE U.S. DOLLAR (IT WILL APPRECIATE
RELATIVE TO MOST CURRENCIES), AND THE PRICE OF OIL (UP BY TEN
TO FIFTEEN PERCENT). ROCKEFELLER HAD A PRIVATE DINNER WITH
PM LEE BEFORE LEAVING SINGAPORE.
3. SINGAPORE'S HON SUI SEN RETURNED FOR LESS THAN 48
HOURS BEFORE LEAVING ON AN OFFICIAL VISIT TO NEW ZEALAND.
HE SAID THE FIVE ASEAN FINANCE MINISTERS HAD MET WITH IBRD'S
MCNAMARA ON OCTOBER 7. ACCORDING TO HON, MCNAMARA UNDERTOOK
"TO HELP ASEAN IN THESE PROJECTS AND THE RESPONSE FROM HIM
WAS VERY ENCOURAGING". HON INDICATED THAT IBRD HELP COULD
TAKE THE FORM OF STUDIES OR TECHNICAL ASSISTANCE EITHER
DIRECTLY OR AS AN AGENT OF THE UNDP. HON AGAIN CRITICIZED
IBRD AND IMF FOR "MECHANISTIC APPLICATION OF PER CAPITA
INCOME CRITERIA" FOR LOAN ELIGIBILITY. HON SUGGESTED THAT
FACTORS OTHER THEN INCOME, PERHAPS NATURAL WEALTH, ETC.,
COULD BE EMPLOYED AS CRITERIA.
4. FIJI'S STINSON ADMITTED TO CONDUCTING "A PROBING
EXERCISE" ON REDUCING THE COST OF SINGAPORE'S FUEL
OIL EXPORTS TO FIJI. HE EXPRESSED THE OPINION THAT
THE GOS MIGHT BE ABLE TO HELP OUT ON A GOVERNMENT-
TO-GOVERNMENT BASIS, SINCE NINETY PERCENT OF FIJI'S
REFINED PETROLEUM PRODUCTS COME FROM SINGAPORE. HE
ALSO WELCOMED POSSIBLE SINGAPORE INTEREST IN DEVELOPING
FIJI'S TOURIST INDUSTRY. STINSON WAS SCHEDULED TO HAVE
TALKS WITH SENIOR OFFICIALS OF SINGAPORE PETROLEUM
CORPORATION (ONE THIRD GOS OWNED, SIXTY PERCENT U.S.
EQUITY), THE ECONOMIC DEVELOPMENT BOARD, JURONG TOWN
CORPORATION AND HOUSING DEVELOPMENT BOARD. (COMMENT:
WHILE BEING SYMPATHETIC, SINGAPORE WILL BE IN NO
POSITION TO ACCEDE TO STINSON'S REQUEST SINCE PREVAILING
WORLD PRICES DETERMINE SINGAPORE'S COST OF OIL).
HOLDRIDGE
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