PRESIDENT S TRIP TO EAST ASIA: SUB-IG MEETING ON INDONESIA/ASKAN, AUGUST 11, 3:00 PM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85M00364R002404750048-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 22, 2016
• Document Release Date: September 17, 2010
• Sequence Number: 48
• Publication Date: August 10, 1983
• Content Type: MEMO

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l!nita?jj ;1atrti Ih?p:IF-t11W4,nt (0)
UVP Mr. Donald P. Gregg
TO:
NSC ?- Mr. Robert Kimmitt
Agriculture - Mr.' Raymond Lett
AID - Mr. Mark Edelman
CEA -I""- W i t l i am N i ska nen
CIA -
Commerce - Mrs. Helen o i
Defense - Col. Cohn Stanford
Energy Mr. wi I.liam Vitale
JC;; Ltc . Dennis Stanley
OMB ... Mr. Alton Keel
OPD - Mr. Edwin Harper
George Keyworth
D
r .
OSTP -
TT'ratlsi Ort:at ion --? Mr. Logan H. Sallada
Treasury Mr. David Pickfen:d
USIA - Ms. Teresa Collins
USTR - Mr. Dennis Whitfield
DF.A - Mr. John Warner
EXIM Mr. Len Wickett
OPIC - Mr. Michael McCone
SUBJECT President's Trip to East Asia; Sub-IG Meeting on
Indonesia/ASEAN, August ll, 3:00 PM
Enclosed are the trip-oriented issue papers that I would like
g on Thursday.
to disctiss at tlhu
ohn Monj o
Deputy Asitant SecreNry of State
East Asian and Pacific Affairs
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CONF
ISSUE
ASEAN support for our MIA efforts.
Where we stand:
We have sought ASEAN's understanding and support for our
efforts to obtain the fullest possible accounting for Americans
missing in Southeast Asia. Secretary Shultz impressed on ASEAN
foreign ministers in June the high priority given by the USG to
this issue. The-ASEAN ministers responded favorably to the
Secretary's request for help with Vietnam, and several are
following up in contacts with the Vietnamese. The Malaysian
foreign minister has already been briefed on MIA information
and other briefings have been offered.
Where we want to end up:
With the ASEAN governments convinced of U.S. interest in
resolving the MIA issue as a humanitarian matter separate from
our political concerns, including U.S. support for ASEAN's
efforts to find a solution in Kampuchea.
Steps to take:
Quietly reaffirm Secretary Shultz's June message to ASEAN
foreign ministers.
J
Presidential Involvement:
in prepared remarks to the ASEAN foreign ministers the
President could affirm the high priority given by the USG to a
resolution of the MIA problem and thank the ASEAN governments
for their cooperation. Alternatively, he could raise these
points in the course of a meeting. -
DECL: OADR
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EXPORT-IMPORT BANK LENDING TO ASEAN COUNTRIES
ISSUE
Continued funding of U.S. exports to ASEAN countries by the
Export-Import Bank.
Where do we stand:
Ex-Im lending is open to all five ASEAN countries and Ex-Im is
actively soliciting new business. Current exposure (as of
6/30/83, in US$ millions) is:
Philippines 1,254.7
Indonesia 814.3
Singapore 226.6
Thailand 204.3
Malaysia 92.4
TOTAL 2,592.3 of pr Ex-Im has preliminacommitments
rangenin a wide size fromeay$30 millions
in all five countries.
vocational training project (Indonesia) to a $2.5 billion
subway project (Sin9ap?to Ex-Im also g~ar~sadeanccean$2icbel~~on
other projects significant
telecommunications project in the Philippines). All Ex-Im
programs are now in line with OECD minimums.
Where we want to be:
With increased sales for American firms.
Steps to take:
List Ex-Int preliminary commitments, with a 'besttgueSseview
estimate of the chances for American firms. r
Ex-IM successes with regard to estimates made in the US-ASEAN
Dialogue and estimate Ex-Im lending over the next five years.
Flag those projects with specialeproblemsntnd ascertain if
movement can be stimulated by
Presidential Involvement:
The President should make a strong statement that American the firms are interested in business in ASEAN countries, ando be
Export-Import Bank will strongly support
competitive. This is not only to strengthen economic ties but
to encourage the American private sector to participate in the
development of ASEAN countries.
The president can noverhtheenexto3-Soyearsx-Im hopes to
make to ASEAN countries
Where sufficient progress has been made on specific projects,
the President may wish to announce new Ex-Im financing.
LIMITED OFFICIAL USE
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 LIMITED OFFICIAL USE
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PRIVATE AMERICAN INVESTMENT IN ASEAN COUNTRIES
ISSUE
Encourage increased investment by American firms in ASEAN
countries.
Where do we stand:
the
We see private sector insdevelopmenthcapitalnforethesASEAN
most significant source of needed American
region and the best means of transfering n`
technology. American firms continue to invest substantially in
ASEAN countries, for a total estimated to be in the
s
neighborhood of $10 billion. `jt~~~s~nofgAmeri.car-ifirms,ebutnwe
good enough to attract the
continue to seek improvement.
this An OPIC
be visiting Indonesia later year
missions are contemplated.
Where do we want to end up:
With improved investment investment laws bbye
encouraging more liberal tax and/or investment treaties with individual countries.
Steps to take:
Proceed with initiatives begun on tax treaties with Indonesia
and Thailand. Identify investment
ASEAN countries, seeking any
during the presidents vi-sit.- We should also encourage
additional investment missions and explore the idea of a
US-ASEAN investment forum.
Presidential Involvement:
The President should make a strong statement supporting
increased investment in ASEAN countries by American firms, seen
to reinforce our commitment to the region and meet-the
development needs of the countries themselves..
The President should o~~cfilshould berregeasedesoonn)
(The USG investment policy statement
The President may symposium eaoinnthecU.S.UsponsoNednjointlytby
forum (possibly a
the governments and ASEAN-US Business Council) encouraging U.S.
investment in the region.
The President may be able to announce progress toward tax
treaties with Indonesia and/or Thailand.
LIMITED OFFICIAL USE
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CONFIDENTIAL
TEXTILES
ISSUE
ASEAN desires to maintain access to the U.S. textile market in
accordance with MFA.
Where Do We Stand: ith each The U.S. has a bilateral textile ementmwithWthe Thais hatshe
just
five ASEAN countries. A 'new agre
yet 1nMaforce. ur laysia oillawantmtatensuhe
been negotiated and is not
Malaysia will. expire next year; ~,
that a new agreement provides access the to U.S. market
to that afforded other small suppASEAN liers. are i also concerned that domesticetxextileisting textileyagreements in
will l force the
a manner which is inconsistent the
Finally, at the ASEAN ASEAN countries have protested the exclusion of textiles from
our GSP program.
Where Do We Want To End Up.L
In a position to provide creaV~lcontinuedcfairoaccess toNthe
have
governments that they will
U.S. textile market.
Steps To Take:
Implement our existing textile agreements in a manner
consistent with our MFA obligations.
Ensure that in negotiatntextileeindustryrareebalancedlbyortant
concerns of our domestic
adequate consideration of U.S. economic and foreign policy
objectives.
the
Include in the briefings for
political and economic
countries and other EA supplier countries in the region.
Presidential Involvement:
The President should be prepare
the ASEAN countries that
textile market in accordance with the MFA.
CONFIDENTIAL
DECL:OADR
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ISSUE
ASEAN concern about U.S. Generalized System of Preferences
(GSP) renewal legislation. (Note that the issue is also
important to the Koreans.)
Where Do We Stand:
The Administration's proposal for GSP renewal has been
introduced in Congress. it recommends extension of current
benefits to most beneficiaries, but proposes reduction of
competitive need limits on-products from advanced developing
beneficiaries and introduces the concept of U.S. access to
beneficiary developing country markets as a consideration in
determining competitive need limits. Initial hearings in the
House and Senate took place last week and more are tentatively
scheduled when Congress comes back into session. At the ASEAN
Post-Ministerial Dialogue, in a formal memorandums and on
numerous other occasions, the ASEAN countries have requested
that the U.S. expand coverage of its GSP program and have
expressed concern that the Administration's legislative
proposal may disadvantage Singapore.
Where Do We Wan t To End Up:
With legislation which renews GSP for ten years with as few
changes from the Administration's proposal as possible and
which does not identify Singapore as one of the advanced
beneficiaries to whom benefits would be reduced.
Stews To Take:
Continue to lobby hard for Congress to pass the proposed
legislation as expeditiously as possible.
Encourage companies and other private organizations who support
GSP to make their views known to Congress.
Keep the ASEAN governments fully informed of the progress of
.GSP renewal process and continuing Administration efforts to
secure passage. of the legislation.
Presidential Involvement:
In the unlikely event that new GSP legislation has been passed,
the President should announce this to his ASEAN hosts and could
take credit for the active Administration effort in securing
passage. .
Since legislation will probably not yet have been passed, the
President should repeat the Administration's commitment to
renewal and be prepared to respond to ASEAN questions on the
status of the legislation.
UNCLASSIFIED
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U'.,C:LASS IFIE:D
r;t.i'.A(;E: ?:iti'1' i)iEV!':`_.GPrii':N`C PROGET~r9S
T ;UE
To develop a Us/ASEAN Program which accelerates the cooperation
,
in the field of transfer of technology and American r,-:n..%ggement
technical skills in :support of the private sectors in these
five nations.
'.n All) i .irsion will y.; out to AS EA N in September ~tt~of Small.
preparation for a new $2.7 million project in supfor
The
rind Iiedi.um tusiness Tiiiproveraent (SMBI) in the region.
project is in response to an ASEAN proposal for assistance in
:_.;,all and m'_diu-n scale industry presented to the USG during 4th
A EAN/US =conomic Dialogue.
A r:o;aprehe:nsiVe nC'W U.S/ASEI.N Technology and I c nag~:mtefit
Fo.:.idation ( .;F) is now and r active consideration in the USG
:;-id the U.S. private sector. A Steering Committee made up of
U.S. business and academic leaders is being formed under the
iniative of the ASEAN/US Business Council (and the Chamber of
Commerce of the USA).
;mere do wel ',!ant to end tip:
1i;,.ally, .;e ;could like to be able ' o announce ASEAN and AID
approval of the Small. and t~edi Pforlt},eonew`+E'oundation.
as well as to note advance preparation
Steps to take:
To accelerate the AID pre:aration process for the SriiI project;
to refine the proposal and identify funding for a US/ASEAN
;. ~.',noloyy and Iianage,mm`.=nt Foundation in close cooperation with
the U.S. Steering Committee and with ASEAN. Although
14--he U.S. private sector contributions are anticipated,
r'~SG fundlirg will be reriuir"?d to get the Foundation off the
ound.
Pr