SOUTH EAST ASIA: US Interests, Influence and Involvement

SOUTH EAST ASIA: US Interests, Influence and Involvement

By C. S. Kuppuswamy

Introduction

The main focus of the US policy on South East Asia during the cold war period was on security to maintain its influence gained during World War II. The purpose was containment of communism and to achieve this it supported even the authoritarian governments of South East Asia, as long as the US interests were served.

In the early 90s (after cold war ended) US shifted its focus from security to economic issues. The establishment of the Asia-Pacific Economic Cooperation Forum (APEC) in 1989 with the active participation of US was evidence of this shift in the US policy. In the late 90s the American policy was tilted more towards North East Asia (China, Japan and Korea). The lukewarm response to the 1997 financial crisis in SE Asia was perhaps the turning point of the waning US interests in SE Asia.

Since September 11, 2001, US focus has shifted on to terrorism, designating SE Asia as the second front on its global �war on terror�.

Presently China�s increasing economic clout and political influence over South East Asia has pushed US to the background and the role of the leading player is taken over by China.

ASEAN

Despite the fact that US has strong economic and trade relations with most of the ASEAN members, US economic engagement with ASEAN as a group is not appreciable. Cumulatively, US is ASEAN�s largest trading partner, with ASEAN�s total trade with US being $ 128 billion (in 2004). US remains the biggest investor in ASEAN ($136 billion) though China may soon relegate US to the second position.

US initiated an ASEAN Cooperation Plan (ACP) in 2002. This plan is focused mainly on trans-national issues such as narcotics, piracy, terrorism, disaster management, environment and HIV/AIDS, including support to ASEAN integration initiatives and strengthening of the ASEAN Secretariat. US also formed in 2002, the Enterprise for ASEAN Initiatives (EAI), for negotiating bilateral free trade agreements with ASEAN countries, who are WTO members.

A joint comprehensive framework called �ASEAN-US Enhanced Partnership� was chalked out on the side lines of the APEC Summit in Busan (South Korea) in November 2005. This partnership will include cooperation on political, security, economic and socio cultural issues. A joint plan of action to implement the partnership was also signed within eight months of the proposal.

US has at present envoys at various levels in each of the 10 ASEAN states. Richard Lugar, a Republican Senator introduced a bill (May 2006) calling for the appointment of an ambassador to ASEAN. In his opinion an ambassador to look after the region as a whole would prove crucial as ASEAN developed an integrated free trade area and addressed matters of common concern with the US.

Abdullah Ahmad Badawi, Prime Minister of Malaysia, in an address at the Asia Society Programme in New York, in 2005 said �The Dialogue between ASEAN and US has yet to reach its full potential. The US has to listen more to ASEAN�s concerns and aspirations. The US must also make efforts to appreciate the �ASEAN way� of conducting business which may at time appear slow and sluggish to the US�.

Indonesia

US State Department maintains that relations with Indonesia are guided by progress on human rights, democratic reform and accountability.

In the cold war era, Indonesia was more of a strategic asset to the US. Since Suharto came to power in 1965, his authoritarian regime had the full support of the US as long as the containment of communism was achieved. James Van Zorge wrote in The Jakarta Post (22 February 2006) that Suharto, who was initially unwilling to invade East Timor, had later relented under the advice of the US. Suharto took the blame for the invasion while US denied everything.

Tables turned after the cold war. Military aid to Indonesia was stopped by canceling the International Military Educational Training (IMET) Program in October 1992 and banning sale of small and light arms in 1994. The joint military exercises and commercial arms sale were cancelled in 1999. In 2001 all military assistance was suspended under the Leahy amendment.

President Susilo Bambang Yudhyono visited US in May 2005 and had met George Bush. Immediately after this visit the Bush administration had partially relaxed the restrictions on military aid by permitting sale of non-lethal defence equipment. Subsequently the US resumed full military relations with Indonesia on the premise that the military has reformed and that US support for the military is part of the strategy of its global �war on terror�. Indonesia, being the world�s most populous Muslim nation and where more extremists have made some in roads, has a key role to play in the war on terror. The embargo was earlier imposed in 1999 after the military had ravaged East Timor when it seceded from Indonesia.

Maritime security has been one of the major factors for the US to improve relations with Indonesia. The Straits of Malacca in South East Asia is one of the busiest sea lanes for global trade. Indonesia, besides one of the littoral states of this strait, straddles some other important sea lanes in this region. The US proposal for a Regional Maritime Security Initiative (RMSI) was protested by all the littoral states at it impinged on their sovereignty.

Defense Secretary Donald Rumsfeld visited Indonesia in June 2006. At that time the Indonesian Defence Minister had pointed out that the US approach to fighting terrorism was perceived as overbearing and that US needs to be sensitive to local concerns. Indonesian Foreign Minister also indicated that US proposal of Proliferation Security Initiative would be studied and that Indonesia would be willing to carry out some of the activities that are called for under the plan.

US President George W. Bush made a 10-hour visit to Indonesia on 13 November 2006, amidst widespread protests from some of the hard line Muslim organizations.

The US government will help Indonesia in setting up a tsunami early warning system. An agreement was signed in this regard in February 2007 between US National Oceanic and Atmospheric Administration and the Indonesian Agency for Assessment and Applications of Technology. The US government will give US $ 1 million to develop this system.

Philippines

Philippines has been vital for the US in projection of its military power in South East Asia for the last few decades. US military had two bases in Philippines, one at Clark air force base and the other (naval) at Subic Bay, for over a century till 1991. US has also been involved in �regime changes� (openly or discreetly) since the overthrowing of Ferdinand Marcos in 1986.

Even though the US had to vacate the two bases in 1991 under pressure from the nationalists, the US military continues to have its presence at a much depleted level under the garb of military assistance for fighting terrorism. After 9/11, the New People�s Army (NPA), the Communist Party of the Philippines and the Abu Sayyaf Group(ASG) have been included in the US list of global terrorist organizations.

US has a Joint Special Operations Task Force Philippines (JOSTFP), for advising the military for fighting the terrorists in Southern Philippines. The force is made up of marine, air force, navy, army and special forces personnel from the US Pacific Command. Currently this force is helping the Armed Forces of Philippines (AFP) in their operations against Abu Sayyaf and this terrorist group had suffered heavy casualties including some of its main leaders.

At the Track II level the Philippines Chapter of the US Institute of Peace (USIP) is involved in negotiating and helping peace talks between the Moro Islamic Liberation Front (MILF) and the Philippine government.

The 1987 constitution prohibits international forces on combat missions in Philippines. But the deployment of US troops in Southern Philippines however has been covered by the Visiting Forces Agreement between US and the Philippines signed in 1999.

Joint training exercises under the code name �Balikatan� (which means shoulder to shoulder) have become an annual feature since 1981 when it was first conducted. The aim of these exercises is to improve the Philippines �US combined planning, combat readiness and inter operability while enhancing security relations and help AFP in its campaign against terrorism. The 2007 Joint Balikatan military exercise which began on 19 February, 2007, is different in that it focused on humanitarian activities like putting up school buildings, building bridges, repairing roads and providing medical facilities to the locals in the area.

Thailand

The US has a trusted strategic ally in Thailand for a long time. Shan W. Crispin, South East Asia editor (AT on line), writes that the �US military jump started Thailand�s move toward capitalism by pumping more than $ 2.5 billion between 1951 and 1975 in military related aid to the country to develop a regional bulwark against the spread of communism�.

Growing from the cold war era, the US-Thai relations was strengthened on the basis of shared economic and trade interests and has been further bolstered since September 2001 by Thailand�s commitment to fight terrorism in South East Asia. The arrest of Hambali, a Jemaah Islamiyah leader, in 2003 in a joint US-Thai operation highlights the part played by Thailand in the US global war on terror. Thailand contributed troops and support for US military operations in both Afghanistan and Iraq and was designated as a major non-NATO ally in December 2003.

As part of its strategy in its global war on terrorism, a Counter-Terrorism Intelligence Centre (CITC) was established jointly in Thailand in 2001 between the CIA and Thai intelligence agencies. The US is learnt to be providing annually $ 10 to 15 million and some advanced surveillance equipment to the CITC. Thailand is also believed to have run a secret prison for the US where Muslim terror suspects could be held without trial.

Highlights of the longstanding involvement of the US in nurturing its relations with Thailand in the last few decades are -

* US has a bilateral security arrangement with Thailand (one of only two countries in South East Asia.
* US entered into a military assistance agreement in 1950 following the Korean war.
* The Manila Pact signed in 1954 recognizes that a threat to the security of Thailand constitutes a threat to the US. Consequent to the dissolution of SEATO, the pact was reinforced by the Thanat-Rusk Joint Communiqu� of 1962.
* Thailand and US conduct over 40 joint military exercises every year. The annual military exercise code named �Cobra Gold� is one of the largest military exercises involving US forces anywhere in Asia.
* An agreement entered into with US in July 2001, allows Thailand to purchase advanced medium range air-to-air missiles for its F-16 fighters, a first for a South East Asian state.
* Thailand has opened the Vietnam era air base in Utapao and a naval base in Sattahip from where the US can provide logistic support to forces in Afghanistan and the Middle East.
* Thailand is one of the largest recipients of International Military Education Training (IMET) program funding in the world with approximately $ 2.5 million annually.
* On the economic front, the US is currently Thailand�s largest trading partner, while Thailand is United States� 17th largest trading partner. A Free Trade Agreement (FTA) between US and Thailand is under negotiation since June 2004 and when finalized the bilateral trade of approximately $ 20 billion is expected to rise considerably.

There have been differences between US and Thailand on the Burma Policy and human rights issues. Thailand has always advocated a policy of constructive engagement with Myanmar (Burma) while US has pursued a policy of economic and diplomatic sanctions against the military junta. The US State Department Human Rights Report (2004) asserts that Thailand�s record worsened and cites excessive use of force by some members of the police and links these elements to extra judicial killings.

Despite the strong ties between Thailand and US, the US was pushed to an awkward situation, When Thaksin was ousted in September 2006 through a military coup. US is morally and legally bound not to support a military government that seized power by overthrowing the democratically elected government. However the US seems to have circumvented the legal provisions and continue to support the ruling Council for National Security, as it suits the overall aim of counterbalancing the increasing influence of China.

Malaysia

During the cold war era the bilateral relations between US and Malaysia was just normal as Malaysia did not figure much in the regional or world affairs. Under the long rule of Dr. Mahathir Mohammad and the current Prime Minister Abdullah Ahmad Badawi, Malaysia�s influence in the regional and world affairs had increased considerably through ASEAN, the OIC and the NAM. US started paying more attention since September 11 2001, as it perceived that Malaysia can play a significant role in the US global war on terror.

US and Malaysia share a diverse and expanding partnership. The US is Malaysia�s largest trading partner and Malaysia the tenth largest trading partner of the US. The two way trade amounts to $ 45 billion. The US is the largest foreign investor in Malaysia. A Free Trade Agreement (FTA) between the two nations is under negotiations since June 2006.

The Malaysia-US Defence Cooperation has been steadily growing in the last few decades. Malaysian forces regularly conduct joint training with US counterparts and the US has had access to Malaysian airfields and ports. Malaysia has also provided a base for US jungle warfare military training. US military ships make regular port calls. The US NAVY SEALs conduct training in Malaysia twice a year. A large number of Malaysian defence personnel continue to benefit from the US IMET (Internal Military Education Training) program.

Highlights of the growing relations between these two nations are -

* US chose Malaysia in 2003 to host the South East Asia Regional Center for Counter Terrorism (SEARCCT), bypassing Indonesia- the most populous Muslim nation in the world.
* During the tsunami (Dec. 2004) relief operations, US forces used Malaysian air force bases for ferrying supplies to Aceh (Indonesia).
* In 2005 Malaysia and US renewed a military logistics cooperation pact called the Acquisition and Cross Servicing Agreement for 10 years. The agreement enables armed forces from the two countries to share logistics & supplies.
* Both countries have signed a Trade and Investment Framework Agreement (TIFA) in 2004. This has paved the way for a Free Trade Agreement (FTA) expected to be completed by July 2007. The bilateral trade may almost be doubled on implementation of the FTA.
* Over the past three decades the US has been a popular destination for Malaysian students. Since 1975 Malaysia has been one of the top 20 countries that have sent students to US. From 1981 to 1999 it was one of the top 10 sources for international students in America.

Differences between the two nations have often surfaced during the tenure of Dr. Mahathir Mohamad. In the 1997 financial crisis he indicated that the international pressure on the Malaysian currency was due to a Jewish Plot and he often made anti-Semitic remarks. Relations soured in 1998 when Vice President Al Gore made some undiplomatic remarks at the APEC Forum meeting in Kuala Lumpur over the arrest and sacking of former Deputy Prime Minister Anwar Ibrahim. Dr. Mahathir was an outspoken critic of US policies on the Israeli-Palestinian conflict, Iraq and globalization. US has often been critical of the lapses of the Malaysian Government on human rights, particularly on the excessive use of the Internal Security Act (ISA). US was also instrumental in stifling the proposal mooted by Dr. Mahathir for an East Asian Economic Caucus.

Singapore

Singapore has maintained strong diplomatic ties with US since the time it became independent in 1965. When the US carried out a strategic shift in its policy on South East Asia in the early 90�s by having access to this region rather than holding permanent bases, Singapore was the first nation to offer access to US Forces to Singaporean military facilities (at Paya Lebar Airbase and Sembawang wharves) by entering into a Memorandum of Understanding in November 1990. This allowed the US to locate military personnel and fighter aircrafts, help in conducting training exercises with the Singapore forces and also rotate these personnel and aircrafts at regular intervals. US access was further augmented in January 1992 when an agreement for a naval logistics facility to be relocated from Subic Bay (in Philippines) to Singapore was entered into.

The following highlight the level of cooperation and bonhomie between these two nations:

* The MOU signed in 1990 was amended in 1999 to permit US Naval vessels to berth at Changi Naval base.
* In October 2003 (when President Bush visited) Singapore and US announced that they will expand cooperation in defense and security by initiating negotiations for a Framework Agreement for a Strategic Cooperation Partnership.
* US and Singapore signed a bilateral Free Trade Agreement in May 2003 which came into effect on 01 January 2004.
* US is a popular destination for Singaporean students.
* US Government sponsors visitors from Singapore each year under the International Visitor Program.
* Singapore was the United States� 13th largest trading partner in 2003. US continue to be Singapore�s largest market for electronics and non-oil domestic exports.
* Some 1300 US corporations operate in Singapore, with total investments of $ 61.4 million (in 2002).
* US Navy maintains a logistical command unit in Singapore
* Singapore supported the US led coalition in the Iraq war and the operation in Afghanistan allowing American aircraft and ships access to Singapore bases. Singapore also sent some transport aircrafts and ships to Iraq.
* Singapore was a founding member of Proliferation Security Initiative and the first Asian country to join the Container Security Initiative which allows US customs to screen US bound containers.

As with the other SEA nations, there were some hiccups in the relations, with particular reference to human rights. The US State Department�s Human rights practices reports had been critical of the ruling PAP for its political dominance and using extensive powers to stifle the political opponents and for misuse of defamation suits.

Myanmar

The relation between US and Myanmar (Burma) is at its nadir. Myanmar has never been a foreign policy concern for Washington, although it does have some limited effect on US economic and strategic interests as well as on the counter narcotics policy.

US withdrew its ambassador from Yangon in 1990. US is still to recognize even the change of the country�s name from Burma to Myanmar. Since 1990 US has opposed Myanmar�s membership in various multilateral financial organizations. US has imposed unilateral economic sanctions on Myanmar since 1997 and have made these sanctions more stringent over the years. The US has frozen Myanmar Government assets in the US and has also denied visas to Myanmar officials.

US think tanks have often come up with their views as to how the US sanctions against Myanmar have proven to be a failure on all fronts - have harmed the American strategic and economic interests, have hit the Burmese people the hardest, have alienated the regional allies and have proved to be a strategic boon to China.

US also failed in its recent effort (Jan 2007) to get a draft resolution on Burma to be considered by the UN Security Council. The resolution was vetoed both by China and Russia.

Cambodia, Laos and Vietnam

There is a warming up of relations between US and Cambodia. The port call made by USS Gary at Sihanoukville (Cambodia) in February 2007 was the first by a US military vessel to dock in Cambodia in over 30 years. The congressional ban on direct funding to Cambodia has also been lifted by a budget resolution made into law in February 2007. According to a news report the US officials have said that the shift of strategy was driven in part by the exigencies of the US-led war on terror though some analysts are of the opinion that the increasing influence of China is the prime factor. Prior to this port call, an Admiral of the Pacific Command and a Vice-Admiral of Pacific Fleet had visited Cambodia in July 2006 and January 2007 respectively. Budgetary provisions have also been made by US State Department under IMET since 2005 and grants in the form of Foreign Military Financing, though at times these were not disbursed due to Congressional resistance.

US-Laos relations were largely based on the issue of granting Normal Trade Relations (NTR) treatment to Laos. US and Laos People�s Democratic Republic signed a bilateral trade agreement in 1997. Due to Congressional resistance, legislation to extend NTR status was not approved because of the human rights conditions of the Hmong Lao minority. It was only in November 2004, Laos was granted non discriminatory treatment to the products of Laos under the Miscellaneous Trade and Technical Corrections Act of 2004.

US and Laos cooperate in important areas including recovering remains of Americans missing in action (MIAs) from the Vietnam war, counter-narcotics and de-mining efforts. In 2005 US signed a cooperation agreement with Laos in which $ 3.4 million was pledged for controlling outbreaks of avian flu. US foreign assistance to Laos focuses on counter-narcotics and de-mining programs and is mostly channeled through NGOs.

US exerts pressure on Laos to accept international monitoring of the resettlement of former Hmong militia members and their communities, by offering funds under Economic Support Funds and IMET. According to the US State Department the LPDR�s human rights record continues to be poor.

US and Vietnam restored diplomatic ties in 1995. US signed a trade pact with Vietnam in 2000. America is now Vietnam�s largest export market. Current disputes between the two countries are more on tariffs and market access than on war crimes or missing soldiers. Commercial flights between the two nations began in 2005.

Admiral Thomas Fargo of the Pacific Command visited the Danang naval base in February 2004. This was an indication of Hanoi�s interest in stepping up military to military relations. Consequent to this visit US naval vessels started making port calls to Saigon (now Ho Chi Minh).

In an agreement signed in 2006 with the US, Vietnam was granted the most-favored-nation status. However Vietnam�s textile industry is unhappy of the special monitoring arrangement included in the agreement to guard against possible dumping violations. Vietnam joined the WTO in January 2007.

Conclusion

The focus of US policy on South East Asia, has been on containment of Communism during the Cold -war era, on primarily economic interests in the post Cold- war period till the beginning of the twenty first century and now on cooperation in the war on terror from September 11, 2001. Of late 'the China factor' has also set in.

The strategic shift in having access to the region than occupying military bases (since US vacated the bases in Philippines) has given a new direction to the US policy.

The US policy accords a higher priority to bilateral ties as against multilateral relationships.

The 1997 financial crisis in this region has been a turning point in US relations in that the countries affected were disappointed with the US attitude of total reliance on IMF and not making any efforts to bail out these nations.

The US is often accused of overlooking the sensitivities and concerns of the South East Asian Nations and is keen on conducting business or establishing relationship on its own terms.

Undue emphasis on human rights issues has often irked the nations of this region in their relations with US.

The US policy of economic sanctions against Myanmar has failed in that the military junta has taken the support of other regional nations, it has harmed the American economic interests and has worsened the living conditions of the Burmese people.

US policies on the Palestinian conflict, the Iraq war and globalization have been irritants in relations with the Muslim nations of this region.

The US interests in South East Asia are well looked after by its allies Philippines, Singapore and Thailand.

Negotiating or entering into Free Trade Agreements with most of these nations for its economic interests and improving military to military relations through aids and grants are the highlights of the current level of US relations with these nations.

US does not seem to be keen on signing the Treaty of Amity and Cooperation with ASEAN and thereby not to get involved with the East Asia Summit as well. US options are restricted to interaction at the multilateral level through the APEC Forum.

Many analysts are of the view that the region needs more US involvement and the administration�s emphasis on counter terrorism cooperation has pushed the economic and diplomatic relations to a lower priority.

On the contrary, China has an aggressive ASEAN policy and has improved relations with all these nations (including those that were anti-communist). The driving force has been the mutual need for economic and military security. China is ASEAN�s second largest trading partner. China is also planning to have joint military exercises with troops from ASEAN (for the first time) in July 2007. The US interaction with ASEAN pales in comparison to China�s in the recent years.