Asia Society AustralAsia Centre
Asia Foreign Policy Luncheons in Sydney, Melbourne and Perth –
15-19 July 2004
Ambassador Nicholas Platt
President Emeritus
Asia Society New York
On June 15, 2004, an American
delegation led by Henry Kissinger and George Shultz met in Beijing
with Chinese counterparts for a new forum called the Unofficial
High Level Dialogue. As a participant I heard Dr. Kissinger describe
a changing world order in which “a global shift in the balance
of power is underway from the Atlantic to the Pacific.”
When I began my Foreign
Service career in Asia back in 1964 as a China Analyst in Hong
Kong, the balance of power was clearly centered in Europe. The
Cold War and competition with the Soviet Union shaped America’s
posture in Asia, as everywhere else. We still considered Peking
a Communist bloc partner of Moscow and were locked in the hostile
residue of the Korean War and the McCarthy era.
China’s population
was 700 million, the economy was small and stagnant, and her politics
tense, soon to explode in the chaos of the Cultural Revolution.
India, which traditionally kept itself apart from East Asia and
was engaged in a humiliating border war with China, sympathized
with the Soviets, who in turn kept the Indian economy afloat with
supplies of commodities and weapons. Accordingly, our relationship
with India ranged from the prickly to the poisonous.
Japan, our enemy turned
strong ally against communism, was on the rise, protected by our
security relationship, its economy stimulated by the Korean war
and its aftermath. Korea’s annual per capita income was
below $100, but the authoritarian Park Chung Hee government was
just beginning the process of unleashing the forces of a market
economy. Taiwan, similarly a police state under Chiang Kai Shek,
was just starting its spectacular rise to prosperity and democracy
with a successful land reform program.
In Southeast Asia the US,
still convinced that China and the Soviet Union were operating
as a united bloc behind North Vietnam’s attacks on the South,
was about to embark on large scale involvement in the war. We
got our first news of the Tonkin Gulf incident in 1964 at our
offices in Hong Kong. The Resolution which committed us irrevocably
followed soon after. The Association of Southeast Asian Nations
(ASEAN) was in the process of forming, a loose group of small,
primarily agricultural economies, the dominoes we were determined
to protect from the influence of China and the Soviet Union.
Overt Sino-Soviet hostility
grew exponentially during the sixties. As the head of China analysis
at the State Department in 1969 I reported Soviet armored vehicles
crossing the frozen Ussuri River, surrounded by hordes of Chinese
beating them with sticks. Nixon’s opening to China exploited
Beijing’s extreme sense of threat and his own desire to
extricate us from Vietnam. His visit to Beijing in 1972 broke
the bipolar mold. As a junior staff member, I watched with fascination
as the events of the trip, covered extensively in prime time US
TV, created in one week the bipartisan consensus behind a US relationship
with China. The Shanghai Communique sidestepped the Taiwan issue
and permitted us to start in 1973 (with the establishment of the
Liaison office) developing the trade and investment ties that
have become the basis for our huge current relationship. Geo-strategically,
the establishment of a political framework for normal Sino-American
relations was the beginning of the end for the Soviets. Perhaps
more important and enduring, the elimination of Sino-American
confrontation and the end of the Vietnam War stabilized East Asia,
facilitating the onset of unprecedented decades of explosive economic
growth that enveloped virtually all the countries of the region.
Fast forward during the intervening years. The story is mostly
economic. The growth of the ASEAN tigers, China’s quadrupling
of it’s GDP, the collapse of the Soviet Union, India’s
economic reforms are all part of the phenomenon creating the shift
of strategic weight away from Europe and toward Asia. All these
changes have been accompanied by a general, if jagged thrust forward
of democracy (except in China) and personal freedom, and more
recently, in some areas, the emerging challenge of radical Islam.
Now, at a time when world attention is focused on the Middle East,
Asia is increasingly cohesive and prosperous. Relations between
the major countries and economies --China, Japan, Korea, and India--
are stable and improving, bound by growing regional trade and
investment. China and India both have GDP growth rates exceeding
10%, and are trading increasingly with each other.
Looking ahead, the participants
at our meeting in Beijing sought a world order in which the powers
would focus less on balancing each other off than in concerting
leadership to solve common problems. Sustaining the pace of growth
and jobs, primary concerns to China and India, cannot be managed
with the current structure of energy consumption, pollution and
use of natural resources. China, Korea, the US and Japan all will
have to take care of aging populations and will need to share
expertise on medical practice and financial instruments. The struggles
against radical Islam and HIV/AIDS can only be handled through
joint effort. These will be the issues of the decades ahead in
a Pacific Century.
Those of us who have tracked
US Asian relations have felt the shift coming for a long time,
but the evidence over the past decade or so has been overwhelming.
Asia’s weight in the world economy has grown rapidly and
is approaching 40%. And US interaction with Asia economically,
politically and culturally has exploded. Trade relations with
Asia are robust. 37% of our imports come from Asia. 27% of our
exports go there. The influence of Asia on our visual arts, film,
fashion, food, and photography has been pervasive. The Asian American
minority has grown, too and come into its own. This is the context
in which the Asia Society has operated over the past twelve years.
Our job has been to position ourselves to catch this wave, and
then to ride it for all it is worth.
The AustralAsia Centre
has been integral to this process. Kudos to Hugh Morgan, Dick
Wolcott and Prue Holstein. Since the launch in 1977, the Centre
has succeeded in its objectives of delivering on a consistent
basis, access for its corporate members to goverrnment leaders,
senior government officials and business leaders from countries
from across the Asian region. Some of the more notable guests
have included, Prime Minister of Japan - HE Junichiro Koizumi,
Senior Minister of Singapore, Lee Kuan Yew, Prime Minister of
Singapore, Mr. Goh Chok Tong, former President of the Philippines,
the Hon. Fidel Ramos, Rupert Murdoch AC, Chairman & Chief
Executive, News Corporation, Narayana Murthy, Chairman & Chief
Mentor, Infosys and David Eldon, Chairman, Hong Kong Shanghai
Banking Corporation and many more.
The Centre has been able
to do this through leveraging its own connections as well as the
extensive networks of the Asia Society. The Centre has also been
able to leverage these networks to attract prominent American
guests speaking on Asia such as the Hon. Madeleine Albright, the
then US Secretary of State and more recently Richard Armitage,
Deputy Under Secretary of State to enable the Centre's audience
to better understand the American position on Asia.
In addition to offering
a strong business and policy programme designed to inform about
developments in the Asian region, the Centre has also been successful
in developing a cultural programme as a complement to its business/policy
programming to broaden understanding about Asian countries and
their cultures. The Centre has staged Asian and Asian-Australian
writers panel discussions at the Melbourne International Writer’s
Festival, and the Sydney Writer’s Festival along with many
Meet the Author programmes. Amy Tan, V.S.Naipaul, Vikram Seth,
Xinran Xue are just a few of the more prominent authors.
The Centre has staged two
major art exhibitions - Treasures of Asian Art, Selections from
Rockefeller collection of Asian art, and Crossing Boundaries,
Bali: A Window into 20th Century Indonesian Art.
Through the prominence
of the Centre's speakers and the high quality of its programming,
the Centre succeeds in generating wide media coverage which brings
to a wider public forum the importance of Australia's relationships
with countries within the Asian region.
Looking Ahead. Questions
to for Americans and Australians to Consider Together.
1.China-
--Can It Sustain Growth? Are the Resources available worldwide
to sustain a 9% compound growth rate?
--Environment? Vile now, how later? Water?
--Population aging. Christmas tree now-light bulb later. (Same
for Japan, Korea, Australia, less US) “Old before Rich”
--Will political reform catch up to economic reform?
--Taiwan?
2. India
--Can it build the infrastructure needed to sustain growth?
--Political system stable chaos- business as usual despite change
in leadership. Monmohan Singh and Chidambaram, original authors
of reform
--Can India sustain regional peace and stability, détente
with Pakistan despite threat of Islamic militants
3. Japan
--Play more active political/military role in region, in line
with economic stature, resumption of growth? People have written
Japan off. Not me. Korea and relationship with China are the keys.
--Deal with aging population? “Rich before old?
4. Korea
--Three objectives: a.
end war, 2. end the nuclear threat, 3. share the prosperity. These
are neighborhood problem. Can we solve them together?
5. Southeast Asia
--How will the region cohere
and compete in the context of Chinese and Indian growth?
--Who will lead? Takshin now, who later. Indonesia? 2nd democratic
chapter phenomenon? Like Philipinnes?
--How will ASEAN Islamic societies deal with deal with their radicals?
6. US
--Will we stay engaged?
No choice. We have been a Pacific power for 100 years. Our security
and prosperity are intertwined inextricably with the stability
and growth of the region.
Example: WalMart trade with China 1% of China’s GDP, ie
$14 billion last year