Transcript of Replies to Supplementary Questions in Parliament by SMS Zainul Abidin Rasheed, 21 May 2007

Ms Irene Ng: Sir, the Senior Minister of State said that the Extradition Treaty (ET) was negotiated in parallel with the Defence Cooperation Agreement (DCA) and concluded as a package. But we have since learnt that the DCA has hit some snags, there are several agreements which have not been signed and problems arising from that. Can I ask the Senior Minister of State whether this means that if the DCA and its Implementing Arrangements are not signed as mutually agreed upon earlier, then the ET would be off? The other question is, why did we rush into signing the ET when the DCA has not been all tied up with all the 'i's dotted and the 't's crossed?

SMS Zainul: As I mentioned earlier, there was agreement between the two Leaders of Indonesia and Singapore, both PM Lee Hsien Loong and President Yudhoyono, that both the ET and DCA would be taken together, so we are looking forward that both would be ratified. There are some snags in terms of implementation issues, but we are waiting for the Indonesian side to conclude that, and we look forward to implementing both together. So our understanding is in fact that both would have to be signed together and both would be made applicable at the same time.

Ms Lee Bee Wah: Sir, I'll like to ask the Senior Minister of State, since it was signed two months after the sand ban, did we sign it because we were under the pressure of the sand ban? And the next question is, what have we sacrificed or compromised in reaching this agreement?

SMS Zainul: I think sacrifices and compromises are part of any negotiations and relations, and in the case of Indonesia and Singapore, as mentioned earlier, in fact, if we work on the basis of compromises and friendship, much can be achieved. But specifically to your question about sand, they are separate matters and are not linked. As I recounted earlier, the decision to conclude both the ET and DCA as a package was made much earlier in October 2005. The negotiations were already well-advanced, when land sand became an issue earlier this year. It was a distraction, but not related to these talks. The Indonesians have repeatedly stated that there is no ban on granite sales. It is the prerogative of the Indonesian government to sell us sand or not to sell us sand so long as they comply with WTO rules. And we, as you would all know as it has been reported before, have made alternative arrangements for sand supplies.

Ms Irene Ng: Senior Minister of State, you did not answer the question of why the rush to sign the ET, especially coming at a time when there was pressure over the land sand ban which might give some the impression that we are bowing to pressure, especially since the DCA has not been signed and delivered at the same time. Why the rush?

SMS Zainul: I think to answer that question, there are others who would say, why has it taken so long? We started back in 2005. Many have in fact complained that it was as though we were dragging our feet. So in fact when both sides met, after the officials had not been able to come to any agreement, so both Ministers and the chief of the armed forces met, and I think they were able to iron out the differences and even come to a conclusion. And although it surprised many, I think it was timely. And the sand and granite issue which came just before that, I don't think, was the primary contribution towards the signing of the two agreements.

Dr Ong Chit Chung: Sir, I would like to ask the Minister, whether the ET would undermine, or to use his own words, compromise Singapore's position as an international financial centre, and whether Indonesians would hesitate to invest, put their money or buy properties in Singapore because of this?

SMS Zainul: I think this question is best answered by MOF, but I think that this is a position that we have made clear from the very beginning, that we as a financial centre, we stand on our merits and our own credible position as a financial hub, and I don't think the signing of the ET would undermine that position. In fact, on the contrary, I feel it might strengthen our position.

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