August 9, 2006
HP-57

Remarks by Deputy Secretary Robert M. Kimmitt
at Singapore National Day and Singapore Armed Forces
Day Reception

Washington, DC – Ambassador Chan, Excellencies, my friend Secretary Jim Nicholson, Ladies and Gentlemen - I am honored to speak on the occasion of Singapore's 41st birthday and the 38th annual celebration of the Singapore Armed Forces. Since 1965, when the Lion City became an independent nation, we have cooperated closely and effectively to advance economic development, stability, and security in the Asia-Pacific region. Few bilateral relationships have been as important or mutually rewarding, and no one personifies the friendship between Singapore and the United States better than Chan Heng Chee. A year ago today, Ambassador Chan received Singapore's Meritorious Service Medal, the highest award that can be conferred on National Day. She is truly one of the leaders of the diplomatic establishment in Washington and just completed a decade of outstanding service as ambassador. Madame Ambassador, thank you for your service in the interests of both our countries.

Singapore and the United States are both "melting pots" that have built successful multi-ethnic societies by harnessing the energy and talents of our diverse populations. We share a commitment to good governance, the rule of law, and open economic systems that improve lives by promoting growth. During its formative years, Singapore had the wisdom and courage to open its markets to foreign trade and investment. Over the past four decades, Singapore has achieved extraordinary economic growth, and its four million citizens now enjoy a standard of living that would have appeared impossible in 1965.

Singapore and the United States continue to exercise leadership in breaking down barriers to trade and investment in the Asia-Pacific region. Already, the Free Trade Agreement between our countries has become an international example of a high-quality FTA. The agreement has helped our bilateral trade increase by about 25% since 2003, and Singapore is now one of our dozen largest trading partners. Though bilateral and regional initiatives are part of the solution, a successful conclusion to the WTO Doha Development Round is also essential.

Investment is also a cornerstone of our economic relationship. Singapore owns and operates businesses in the United States that provide good jobs for American workers, and many American firms operate profitably in Singapore. The Treasury Department and Administration remain firmly committed to an open investment policy that protects security and promotes growth in both of our economies. We want our partners, like Singapore, to know that the United States is open for business and open to foreign investment.

Of course, economic growth depends on more than sound economic policy. In addition to excellent relations between our military services, Singapore and the United States have been closely aligned in fighting terrorism and the conditions that feed terrorist groups. The Treasury Department and Singaporean colleagues have enjoyed strong cooperation combating illicit activities of all kinds, including those associated with North Korea.

The United States and Treasury Department are committed to Singapore and to Southeast Asia. Next month, Secretary Paulson will travel to Hanoi for the APEC Finance Ministers' Meeting. The Secretary will also visit Singapore for the World Bank/IMF meetings. The international financial institutions need to reflect the reality of Asia's increased importance in the global economy. The United States has helped lead the effort to give Asian economies greater voice in the IMF, and we hope to see it bear fruit in Singapore.

We are also increasing our direct engagement with Singapore and its ASEAN neighbors. This year, the Treasury Department intends to establish a post for a financial representative to Southeast Asia. I have the pleasure of introducing her this evening: Susan Baker is an accomplished financial expert with years of Southeast Asian experience. Before joining the Treasury, she worked in the region as a World Bank consultant, as a financial analyst in the private sector, and with the Indonesian Ministry of Finance through a Harvard University program.

Singapore has long recognized the benefits of a strong U.S. presence and engagement in Asia. Prime Minister Lee has said that American security forces and political influence helped provide the conditions under which developing Asian economies like Singapore could flourish. Thus, even as China, India, and other economies grow, the United States can and will continue to serve as a force for stability and growth in Asia. In that endeavor, as for the past 41 years, we will have no more valued partner than Singapore.