No economic war on Singapore, pledges Dr. Lim
Kuala Lumpur pledges no economic war but warns Singapore of loss if she turns unfriendly; Singapore says its curbs only treat Malayan goods as foreign; Mr. Lee tells foreign correspondents he plans no Ambassador for Djakarta.
KUALA LUMPUR, Saturday.—Malaysia will not wage an economic war on Singapore, the Minister of Commerce and Industry, Dr. Lim Swee Aun, pledged today, ruling out any retaliation for Singapore’s curbs on 185 Malayan-made goods.
The Government is taking a wait-and-see attitude before deciding what to do, he told newsmen after a two-hour emergency meeting of the M.C.A. central working committee. “The only thing to do now is to wait. We do not want to start an economic war against the Singapore Government.”
“We were not consulted at all over the matter,” Dr. Lim said.
The only thing to do now is to wait. We do not want to start an economic war against the Singapore GovernmentDr. Lim Swee Aun
Of retaliation, he said: “This will be contrary to the policy of the Malaysian Government. We want to work in the closest co-operation with Singapore.”
The Tunku, in an interview with “Merdeka”, the official Umno weekly, warned that Singapore would face great economic loss if she adopted an unfriendly attitude towards Malaysia. As a neighbour, he said, Singapore should adopt a sincere and friendly attitude in the interest of both countries.
In Singapore, the Finance Minister, Mr. Lim Kim San, answered Dr. Lim in a statement today. The restrictions, he said, merely recognise that an independent State cannot give Malayan goods favoured treatment. “One would have thought that the Central Government, when it decided that Singapore should leave the Federation, would have understood this.”
Most of the items, the statement said, had been under quota restrictions for some time, most of them on the recommendation of the Malaysian Tariff Advisory Board.
The statement added: “even when Singapore was part of Malaysia, her products were treated like those of a foreign country and less favourably than a Commonwealth country.” Singapore tyres were taxed there at 40 per cent, more than twice the duty on British tyres.
In Kuala Lumpur, Senator Chan Kwong Hon, president of the All-Malaya Chinese Mining Association, said that with separation the capital must now be an industrial and commercial centre as well as the political one.
The Sunday Times (Singapore), Aug. 15 · Singapore Government Press Statement (Ministry of Finance), via National Archives of Singapore, Aug. 14 · The Sunday Times (Singapore), Aug. 15