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US INTEREST AND OBJECTIVES IN SOUTH AND SOUTH EAST ASIA AND ITS IMPLICATION ON THE REGIONAL SECURITY ENVIRONMENT

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US INTEREST AND OBJECTIVES IN SOUTH AND SOUTH EAST ASIA AND ITS IMPLICATION ON THE REGIONAL SECURITY ENVIRONMENT

"Underpinning [our security] vision is the essential requirement that America remain engaged in world affairs, to influence the actions of others - friends and foes - who can affect our national well-being. Today, there are some who would have us pull back from the world, forgetting the central lesson of this century: that when America neglects the problems of the world, the world often brings its problems to America's doorstep."

- Former Secretary of Defense William Cohen

INTRODUCTION

1. The US shares many interests with the countries of the South and South

East (SE) Asia. In general, the people of this region share the US devotion to

democracy, even if some of the governments fall short in that commitment. Though

there are pockets of Islamic fundamentalism, most of the people in these region

value human rights, oppose terrorism, and want to protect their increasingly

endangered environment. In post cold war era the countries and peoples of the

region have decided to join the global economy and act on the global stage. These

countries are attempting to reform their economies from socialism to free markets

and trying hard to change the status from the developing to the developed world. It

is in US best interest to act as a friend and partner to the countries of South and SE

Asia and participate with them in their transition1.

2. US interests in south and SE Asia parallel larger US interests in the Asia-

Pacific region. Broadly, these interests are to ensure regional stability, encourage

continued economic success and advance regional prosperity, and promote

democracy within SE Asia. Stability and security is a major U S interest in this

region. Regional stability serves two essential purposes first, continued stability

creates an environment in which economic growth is possible, this in turn enables

regional advancement and prosperity, and ultimately contribute to US economic

1 Dillon Dana R., U.S. Strategic Objectives in South Asia, Heritage Lecture #889 , p.1. and http://www.heritage.org/Research/AsiaandthePacific/hl889.cfm dated 10 October 2008.

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growth. Second, continued stability makes it possible for smaller US military force

deployments in this region thus, limited forces can be deployed to other regions

where those tools may be used more effectively to promote US interests2.

AIM 3. The aim of this paper is to analyse the US interest and objectives in South

and South East Asia and its implication on the regional security environment.

US STRATEGIC INTERESTS IN SOUTH ASIA Global Significance of South Asia

4. South Asia is an important and fast emerging region containing one-fifth of

the world's population and the world's largest democracy. This region has the

potential to become a prolific economic market in the next 25 years. On the

contrary, it also homes two rival nuclear states, numerous fundamentalist

organisations and terrorist groups. Consequently, this prospect is subject to

management of the regional disputes and transnational problems. Political violence

against US interests in this region is the least compared to all other regions3. As

such, USA envisions to assert her influence in this region to home own strategic

interests through appropriating its foreign policy. Indeed, what happens in South

Asia is vital to the strategic interests of USA itself4. US Foreign Policy in South Asia

5. Until the collapse of Soviet Union, US policy toward the region was framed by

a Cold War strategy of communist containment. It was focused more on thwarting

Soviet communist expansion than on a grand strategy of pursuing long-term US 2 Monger Paul Cmdr USN and Snyder Gray W, Lt Col USAF, South East Asia , Pillars for Prosperity and Peace, Research Paper of national war College, Washington DC, 1998. 3 www.state.gov/m/ds/rls/rpt/23133.htm, dated 09 November 2008. 4 'Strategic Interests: The United States and South Asia’, by Ambassador R. Nicholas Burns, speaking to the Asia Society, http://www.un.org/Pubs/chronicle/2006/webArticles/112806_SA.htm, dated 05 November 2008.

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interests in the region5. The present foreign policy of USA evolved on the

aggressive posture of the so called ‘Bush Doctrine’ to secure USA and her allies

against threats6. It argues that ‘while the US will constantly strive to enlist the

support of the international community, we will not hesitate to act alone, if

necessary, to exercise our right of self defence by acting pre-emptively….’7. USA

perceives that ‘America will encourage the advancement of democracy and

economic openness, because these are the best foundations for domestic stability

and international order8. US Senate testimony on US Interests and Strategic Goals

in South Asia envisages on the strategic objectives to promote sustained economic

growth and development, bolster US relationships with key partners in this region,

foster democracy and human rights9. US focus on South Asia is evaluated by

Christina Rocca, who stated that ‘US foreign policy in South Asia is firmly founded ...

on promoting economic prosperity and an ongoing search for peace. It is also the

front line of our Global War on Terror, which remains our principal foreign policy

priority’10.

US Objectives in India

6. India is the greatest under-exploited opportunity for American strategic

interests in South Asia. Since the end of the Cold War and the Indian government's

5 US National War College research paper on ‘A Strategic Assessment of South Asia: Prescription for US Foreign Policy’, http://oai.dtic.mil/oai/oai?verb= getrecord&metadataprefix=html&identifier= ada 442599, dated 06 November 2008. 6 The White House Publication on ‘The National Security Strategy of the USA’, updated on 16 March 2006, first published on 17 September 2002, http://www.whitehouse.gov/nsc/nss/2006/nss2006.pdf, dated 04 November 2008. 7 Neil Fenton, Understanding the UN Security Council: Coercion or Consent? 2004. Ashgate Publishing ltd; England, pp. 185. 8 Stated by George Bush, The White House, 17 September 2002, http://www.whitehouse.gov/nsc /nssintro.html, dated 03 November 2008. 9 US Senate Foreign Relations Committee Testimony on ‘US Interests and Strategic Goals in East Asia and the Pacific’, By Assistant Secretary for East Asian and Pacific Affairs, Washington, DC, 02 March 2005. http://www.shaps.hawaii.edu/security/us/2005/20050302_revere.html, dated 08 November 2008. 10 ‘United States Foreign Policy in South Asia’ Christina B. Rocca, Assistant Secretary for South Asia Affairs, remarks to the American Chamber of Commerce at Dhaka, Bangladesh, on 18 May 2004. http://www.state.gov/p/sca/rls/rm/32599.htm dated 01 November 2008.

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1991 enactment of economic reforms, the US-India relationship has developed from

mutual suspicion to a grand alliance11. The power architecture of the region and the

control of the Indian Ocean dominate US interests in India. India is its strategic

partner to counter - balance a rising Sino – Russian and Iranian influence. The

recent October 2008 nuclear deal is a testimony to that.

7. The China Factor.

a. Both the countries seek peaceful engagement with China, although

both also view China as a potential long-term security concern and neither

wants to see Asia dominated by a single country. Nevertheless, China is a

major trading partner for both USA and India, and neither country wants to

exacerbate Chinese concerns about ‘encirclement’ or treat China as an

enemy12.

b. India does not want to be regarded as an element in a US strategy

toward China. Beijing fears an American containment strategy with India as

its South Asian cornerstone. American strategy attempts to use India to

balance China. US policy focuses on building India's economic

competitiveness, its military capability, and its international standing to

counter growing Chinese hegemony.

c. However, India's role in the USA is problematic for the United States.

In 2004, India voted with the USA in the United Nations only 20 percent of the

times vote conducted. But in comparison, China and Russia voted with the

USA less than India. Consequently India is a better option as an ally.

11 US Strategic Objectives in South Asia 07 July 2005, http://www.heritage.org/Research/Asiaandthe Pacific/hl889.cfm dated 01 November 2008. 12 US-India Defense Relations: Strategic Perspectives, http://www.csis.org/media/csis/pubs/sam105.pdf, Number 105 04 April 2007, dated 04 November 2008.

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8. Control of the Indian Ocean.

a. The prospect of a future Chinese dominance in the Indian Ocean is

something USA and India are watching uneasily. China's growing interests in

securing chokepoints and constructing ports along strategic waterways also

has implications for the international community, particularly USA and its

allies in the east. China has expressed ambitions to expand its blue water

naval capabilities to protect its growing oil imports through the Indian Ocean

and Strait of Malacca, through which 80 percent of its oil imports transit.

China's attempt to secure Sea Lines of Communication along the Indian

Ocean and its strategy to develop port facilities in Pakistan, Bangladesh and

Myanmar has led to concerns for India and USA over Chinese policy to

encircle India13.

b. The security of energy lanes in the Indian Ocean is perhaps the issue

on which US and Indian analysts agree most strongly. Like their Indian

counterparts, US security officials consider the safety of sea lanes crucial to

national security. US interest in the Indian Ocean is primarily motivated by a

desire to protect global energy markets. Over half of the world’s oil supplies

travel through sea lanes in the Indian Ocean, and disruption of energy

supplies would have a major impact on the US regardless of whether US

supplies specifically travel through these waters.

9. Maritime Partnership. USA talks of a ‘global maritime partnership’, or a

‘thousand-ship navy’, a framework for maritime security cooperation including both

naval and civilian maritime assets of countries throughout Asia and the Indian

Ocean. USA considers India as a uniquely valuable participant in this type of flexible

structure for working together. In recent years, its relations with the US Navy have

become closer and friendlier. India is the only country, other than the US, that is

capable of projecting power in the Indian Ocean Region and capable of securing the

commercial sea-lanes from the Persian Gulf to the Malacca Straits. This becomes a

13 ‘Strategic Interests Pull Japan and India Together', The Rise of China, 16 February 2007, http://www.pinr.com/report.php?ac=view_report&report_id=618, dated 03 November 2008.

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critical factor in the US’ calculations on the number of ships and refuelling ports

required to enforce the Proliferation Security14.

10. Economic Partnership. USA also fosters strategic relationship with India for

interdependence on economic integration and trade. US exports to India had

doubled from 2002 to 2006. Currently, of the top 9 US companies investing in India,

6 are in the power sector and one each in the passenger cars, soft-drinks market

and cellular phones sectors – all serving the needs of a rising middle class. India is

not war ravaged and has already made significant. India has progressed in these

fields and is in a position to provide economies of scale to the US market15. The US

is India’s largest trading partner accounting for approximately 30 percent of its gross

domestic product16. Also that the Indian population in USA numbers at 2.5 millions,

which matters US – India relationship.

11. US - India Anti Terrorism and Security Cooperation. US - India security

cooperation is the most dramatically evolving aspect of the bilateral relationship.

When India tested its first nuclear weapon in 1998, the US stopped all defense

cooperation with India. Now USA has restored all conventional military-to-military

cooperation. Under the auspices of the ‘Next Steps in Strategic Partnership’, the US

began cooperation with India on the civilian use of nuclear power and civilian space

programs17. Both these countries are also fighting against regional terrorism.

14 Prospects for Indo-US Partnership, Written by Anirudh Nair and Rudra Dev http://www.bharat-rakshak.com/SRR/index.php?option=com_content&task=view&id=34&Itemid=, dated 01 November 2008. The ‘Proliferation Security Initiative (PSI)’ is a global initiative aimed at stopping shipments of weapons of mass destruction (WMD), their delivery systems, and related materials worldwide, announced by President Bush May 31, 2003. It stems from the National Strategy to Combat Weapons of Mass Destruction issued in December 2002, as published in the website http://usinfo.state.gov/products/pubs/proliferation. 15 Prospects for Indo-US Partnership, Written by Anirudh Nair and Rudra Dev http://www.bharat-rakshak.com/SRR/index.php?option=com_content&task=view&id=34&Itemid=1, dated 04 November 2008. 16 ‘A Strategic Assessment of South Asia Prescription for US Foreign Policy’, http://www.dtic.mil /cgi-bin/GetTRDoc?AD =ADA442599&Location=U2&doc=GetTRDoc.pdf, dated 05 November 2008. 17 US President's Statement on ‘Strategic Partnership with India’, 12 January 2004, http://www.whitehouse.gov/news/releases/2004/01/20040112-1.html, dated 02 November 2008.

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12. India – Israel – USA Axis. Israel has military trade with India to sell Phalcon

early warning radar system and Arrow ballistic missile defence system. This military

tie, with the consent of USA, has been perceived as a formidable axis of power

developing in the foot steps of the Middle East and Pakistan18.

US Objectives in Pakistan

13. Pakistan’s bargaining leverage rests on its geo-strategic significance with

special reference to war on terror, entry to energy-hub Central Asia and entry of

China into the Indian Ocean through the Gulf19.

14. Global War On Terrorism. Pakistan has been a tactical ally in fighting

terrorism. She has been an important bulwark against terrorism. USA views

Pakistan as at ‘the absolute core in the fight against global terrorism’. A subservient

govt is essential for USA to support US war on terrorism. US military officials now

believe that Pakistan has been unable to control the Taliban militants in tribal belt

who have increased their cross-border attacks on NATO forces inside Afghanistan.

It led to intense frustration within the Pentagon and reignited a debate over whether

the US should act on its own against extremists operating in Pakistan's north-

western tribal regions. According to US President George Bush, the biggest

challenge for the next president of the US would be Pakistan and not Iraq or even

Afghanistan20.

15. Exploiting Pakistan against India. Pakistan has been a tool of exploitation

for USA to pin down Indian military influence. USA tries to convince New Delhi that

its interests are best served by letting the US look after the overall strategic stability

of the subcontinent. To do so the US has to enhance and consolidate its strategic

presence in the South Asian region. Simultaneously, ensure that the Indian military

18 India’s Defense Ties With Israel http://usindiafriendship.net/archives/viewpoints/carbaugh-102003.htm, dated 04 November 2008. 19 ‘What is Real in Pak-US Relations? Safdar Sial, dated: 04-09-2008http://san-pips.com/PIPS-SAN-Files/SAN-SouthAsia/SAN-SouthAsia-Article45/San-SA-A45-D.asp, dated 05 November 2008. 20 ‘Pakistan: Next US President’s Big Challenge’ 08 July 2008,http://www.dawn.com/2008/07/08 /top6.htm, dated 01 November 2008.

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remains stretched to the maximum so that Delhi cannot project military power in the

neighbourhood. Boosting Pakistan’s military status is the key to this approach21.

16. Nuclear Proliferation Network. US policy also focuses on Pakistan's

nuclear proliferation network. The primary concern is that this technology might

have fallen or may fall into the rogue hands or organizations. Groups like Al Qaeda

are substantially capable to exploit nuclear arsenal in a span of some years against

the west. In order to prevent such events, USA shall always assert its tight control

over the govt in the foreseeable future. In return, USA will drain dollars to assist Pak

govt to cope up with the indebtedness and military expenses.

US Objectives in Afghanistan

17. US interests in Afghanistan irrupt from two purposes: firstly, dismantle

terrorist organization to ensure own security; and secondly, use it as the buffer zone

to influence situation in Iran and Pakistan.

18. Fight against Al Qaeda and Taliban. USA is trying to transform

Afghanistan, which has been one of the world’s principal sources of instability, into a

secure and prosperous country. USA is in the process of rebuilding Afghanistan as

a model for the Muslim World of a moderate and democratic Islamic State22.

19. Containment of Iran. The rise of Iran is a formidable threat for the

global US interests. Iran, with its crude oil power, maintains strategic relations with

Russia, France and India. Iran is a single ethnic nation with wide ranging popular

support in the Muslim world. Iran matters a lot to what happens in Iraq. Iran is

developing nuclear technology and has caused fear to USA that it will challenge US

interests in Middle East, Central Asia, Indian Ocean and Israel. Afghanistan is

therefore, a buffer zone and a launching pad for USA to conduct proxy war and

even military strike in future. 21 ‘US Strategic Interests in Sri Lanka’ - Taraki, http://www.tamilnet .com/art.html?catid =79&artid= 15518, dated 02 November 2008. 22 ‘South Asia: The United States Foreign Policy Predicaments’ by Dr. Subhash Kapila 27.09. 2006 http://www.southasiaanalysis.org/%5Cpapers20%5Cpaper1968.html, dated 05 November 2008.

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US Objectives in Bangladesh

20. US interests in Bangladesh revolve round combating terrorism. US State

Department reports that al-Qaeda-linked terrorists are operating in the country.

Again, as stated by Christina B. Rocca, USA views that Bangladesh, being the 7th

largest populous country, and with 4th largest Muslim population in the world, is a

valued partner in the war on terror, a moderate voice in regional and international

fora, and a leading contributor to UN peacekeeping missions. American policy

toward Bangladesh focuses on strengthening the rule of law and judicial system. It

also insists action on anti-corruption, and efforts that create an attractive

environment to promote foreign investment. USA is the biggest foreign investor in

Bangladesh with around $1.3 billion investment. USA seeks to increase the

accountability and transparency of democratic institutions to strengthen

democracy23.

US Objectives in Sri Lanka

21. Apparently, USA plays an intermediary role in Sri Lanka’s internal conflicts.

USA presses the government and LTTE to return to the talks, supports economic

prosperity24.

22. US desire for Basing Facility in Sri Lanka. The vital US interests lies else

where; not the mediation role. USA estimates that the strategic and central location

of this country may serve US interests in terms of monitoring the dynamics of

nuclear power in South Asia, war between India and Pakistan, and Indian military

‘aggression’ into neighbouring countries. As such, US Department of Defense

identified basing requirements in this region. The nearest sea base is in Diego

Garcia, which is some thousand mile away. USA intends to increase

23 ‘United States Interests and Foreign Policy Priorities in South Asia’, Christina B. Rocca, Assistant Secretary for South Asian Affairs, Statement before the House Committee on International Relations, Washington DC, 22 June 2004, http://www.state.gov/p/sca/rls/rm/33774.htm, dated 04 November 2008. 24 http://www.state.gov/p/sca/rls/rm/33774.htm, dated 08 November 2008.

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reconnaissance activities in this area. The objectives include enhancing the

presence of the National Security Agency (NSA) and ensure intelligence

preparedness for US expeditionary forces in South Asia.

23. Monitoring the LTTE and Nuclear Development. The basing facilities are

also with a view to monitoring the nuclear and missile development in peninsular

India. Currently the eastern littoral of the subcontinent and most of peninsular India

is monitored from Thailand and Singapore where the US defence intelligence

agency and the NSA have considerable electronic intelligence assets. The NSA

base in Thailand monitors LTTE communications in Sri Lanka; for example: the

Voice of Tigers is made available in English to Washington in less than an hour of

broadcast by NSA translators at the agency’s station in Thailand25.

US Objectives in Nepal and Bhutan

24. US objective in Nepal is to see a restoration of multi-party democracy and

bring an end to the violence. The purpose is to help Nepali’s deal with the

underlying economic, social, and political problems that hold it back from achieving

its potential. USA plays an intermediary role in Nepal’s democratic process. USA

support Nepali democracy in its confrontation with the Maoists26. US assistance

includes military equipment badly needed by the army, economic and development

assistance to address root causes of insurgency and anti-terrorism training for the

army and police.

25. USA has expressed interest in Bhutan's finance and energy sector27. It has

offered to consider for resettlement of 60,000 or more Bhutanese refugees in the

25 http://www.tamilnet.com/art.html?catid=79&artid=15518, US's Strategic Interests in Sri Lanka - Taraki, dated 08 November 2008. 26 http://www.state.gov/p/sca/rls/rm/33774.htm, dated 09 November 2008. 27 http://www.financialexpress.com/news/Bhutan-likely-to-join-WTO-by-2009/321491, dated 03 November 2008.

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USA, now in camps in Nepal28. Bhutanese refugees are politically and religiously

ideal one for the US to be re-settled in its soil29.

US Objectives in Maldives

26. Maldives has a territorial dispute with the USA as USA does not recognise

Maldives’s claim of maritime zones30. USA intends to promote the rule of law, a

balance of the Islamic Shariah and the western law concepts31. US maritime forces

interact with the Maldivian security forces, who can be important actors in the

current reform process, earning the public’s trust by protecting the people, while

respecting each citizen's rights32.

US INTEREST AND OBJECTIVES IN SE ASIA

General 27. SE Asia is a region of much dissimilarity. The dispersal of religious groupings

reflects thousands of years of conflict. SE Asia’s multiple cultures, ethnicities and

languages overlap national borders and create cross-hatching that binds this region

into a loose subculture of its own. SE Asians view their security in a much broader

manner and are proud of their advancements in all aspects of society since the end

of their respective colonial periods. Securing the strategic imperative of this region

relies on two mutually reinforcing approaches to the region: bilateral and U.S.–

ASEAN.

28 Ambassador James F. Moriarty’s Remarks to Bhutanese Refugees on the US Resettlement Program, Embassy News http://nepal.usembassy.gov/sp_05-25-2007.html, dated 04 November 2008. 29 http://www.kantipuronline.com/kolnews.php?&nid=97259, dated 05 November 2008. 30 ‘United States - Maldives Territorial Dispute’, http://www.maldivesroyalfamily.com/maldives_us _territorial_dispute.shtml, dated 02 November 2008. 31 The Question of Democracy, Political Development – And Its Critics, http://www.internationalreports. net/asiapacific/maldives/2002/thequestion.html, dated 03 November 2008. 32 U.S. Embassy, Colombo, Press Releases, http://srilanka.usembassy.gov/usmedical.html, dated 03 November 2008.

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28. The end of the Cold War, the rise of China, globalization, free trade

agreements, the war on terror and an institutional approach to keep the peace are

using dramatic shifts in relationships among countries in SE Asia. A new regional

architecture in the form of trade, financial and political arrangements among

countries of Southeast Asia is developing that has significant implications for USA

interests and policy. The war against terror has brought renewed USA attention to

SE Asia, especially to countries afflicted by Islamic radicalism. Some fear that rising

Chinese influence in Southeast Asia has come at the expense of USA ties with the

region, while others view China’s increasing regional influence as largely a natural

consequence of China’s economic dynamism. China’s developing relationship with

SE Asia will likely to have implications for USA’s interests in the region. In

November 2004, China and the Association of SE Asian Nations (ASEAN includes

Brunei, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore,

Thailand, and Vietnam) agreed to gradually removal of tariffs and create the world’s

largest free trade area by 2010. China is also beginning to develop bilateral and

multilateral security relationships with SE Asian states. The role of Malaysia, as

economically developed country, has also significant influence to shape US

interests and objective in this region.

US Regional Interests 29. The following are traditionally considered to be USA’s key regional interests

in SE Asia:33

a. Promotion of stability and balance of power.

b. Prevent being excluded from the region by another power or group of

powers.

c. Trade and investment interests.

d. Support of treaty allies and friends.

e. Promotion of democracy, rule of law, human rights and religious

freedom.

33 Michael McDevitt,“USA Strategy in the Asia Pacific Region: Southeast Asia,” in W. Lee, R. Hathaway and W.Wise, USA Strategy in the Asia-Pacific Region, (Washington: Woodrow Wilson International Center for Scholars, 2003), p.44.

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US Regional Objectives 30. USA’s objectives are not always very obvious due to many reasons.

However, following may be considered as o bjectives:

a. keeping SE Asia from being dominated by any hegemony.

b. Preventing the region from becoming a base of support for terrorists.

c. Maintaining freedom of navigation and protection of sea lanes with a

view to dominate Pacific Ocean.

ASEAN

31. ASEAN faces the challenge of safeguarding its interests and prospering in

this hypercompetitive neighborhood. The US has an overarching interest in seeing

that it succeeds while also remaining independent and outward-looking. 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.

32. USA has major economic, political, and security interests in ASEAN which

are discussed below:

a. Economic Interest. The dynamic economic interest makes the

US different from ASEAN's other economic partners. It is not content with the

status quo, working around difficult environments to make or sell more

widgets. In 2002, USA formed the Enterprise for ASEAN Initiatives (EAI), for

negotiating bilateral free trade agreements with ASEAN countries, who are

WTO members.

b. Political Development. Democratic reform strengthens ASEAN

and facilitates its relationship with the USA. USA has an abiding stake in how

it develops. The current state of democratic development in ASEAN is

diverse, complex and fluid. USA wants to be creative in finding ways around

Myanmar to engage ASEAN fully.

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c. Islamic Politics Islam in ASEAN is overwhelmingly main stream.

Significantly, Indonesia, the world's largest Muslim-majority nation, is not an

Islamic state. In Malaysia, Prime Minister Abdullah Badawi has coined the

term Islam Hadhari (civilizational Islam) to encompass his views. The USA

does not like to commend this version of Islamic politics to others in the

global Islamic community. USA is constantly trying to demonstrate to the

world that the current global conflict is with militant Islamism, not with Islam

itself. However, there are difference of opinion on US interest and objectives

in this field of Islamic Politics and subsequent US role.

d. Security. According to Admiral William J. Fallon, "SE Asia is the

Front Line of the War on Terror". 34 USA security relations with Southeast

Asia are centered on two treaty allies: the Philippines and Thailand. The

USA–Thai Cobra Gold exercise is the largest USA exercise in Asia. "The

exercise in May 2006 engaged over 7,800 troops from the USA and 4,200

from Thailand."35 Japan, Singapore, and Indonesia also participated. The

2006 Balikatan exercises with the Philippines involved approximately 5,500

USA personnel and 2,800 Filipino personnel. With these exercises and

others in the region, the USA improves the interoperability of its forces and

those of its partners, improves joint response to emergencies and enhances

their military capacity. USA also has a very close security relationship with

Singapore. Combined with Singapore's first-class full accommodation of the

USA Navy, the framework provides a perfect example of the "places, not

bases" approach to aligning security cooperation.

33. Southeast Asia is vital to USA political, economic, and security interests.

Ensuring that the region remains strong, independent and outward-looking is

therefore in the best interests of both the US and the nations of SE Asia. ASEAN

34 Admiral William J. Fallon, testimony before the Committee on Armed Services, USA Senate, March 7, 2006, at www.pacom.mil/speeches/sst2006/DAR-FY07-Fallon%2003-07-06.pdf (February 8, 2007). 35 Emma Chanlett-Avery, "Thailand: Background and USA Relations," Congressional Research Service Report for Congress, updated October 2, 2006, p. 10, at www.fas.org/sgp/crs/row/RL32593.pdf (March 7, 2007).

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being a common forum for the countries of this region, it will probably remain as a

focal point for USA in policy implementation.

Indonesia

34. Indonesia's importance to USA interests is enhanced by the nation's ongoing

transformation into a vibrant democracy following decades of authoritarian rule. USA

also have substantial commercial and environmental interests in Indonesia. This is

because of significant natural, energy and mineral resources and a storehouse of

biodiversity, home to some of the world's largest tracts of tropical rainforest and

expanses of coral reef. US interest and objectives on combating terrorism and

military are very obvious which are appended below:

a. Combating Terrorism/Police Assistance USA is assisting the

Indonesian National Police (INP) in the formation of a counterterrorism unit

through the Non-Proliferation, Anti-Terrorism, Demining, and Related

Programs (NADR) account.

b. Military-to-Military Relations International Military Education and

Training (IMET) courses provide the professional military education critical to

expectations that the Indonesian armed forces will become a professional

military, oriented toward external defense. This education provides the

opportunity for Indonesian armed forces personnel to be exposed to concepts

of civilian control of the military and accountability that are not available in

Indonesia. For many Indonesian armed forces officers, IMET would represent

the first time in their lives that they have been challenged to think for

themselves as opposed to receiving conventional wisdom. USA does this for

greater national interest.

Myanmar 35. The US has consistently co-sponsored Myanmar’s resolutions at the UN

General Assembly and the UN Commission on Human Rights containing strong

language condemning the ongoing systematic abuse of human rights. US withdrew

its ambassador from Yangon in 1990. US have imposed unilateral economic

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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. Yet, dealing with Myanmar will certainly

affect the relation with China and India as well. However, USA wants to keep

Myanmar in pressure in the name of Human Rights violations.

Philippines

36. The Philippines is confronting a serious threat at home from Communist and

Muslim insurgencies and international terrorists. There has been a recent increase

in violence by the Communist People's Party and its armed wing, the New People's

Army. USA has utilized this situation in her favour. USA and the Philippine

Government are concerned at the growing evidence of links between Philippine and

international terrorist groups, including al Qaeda and Jemaah Islamiyah. USA have

formed a strong coalition with the Philippine government to combat terrorism in the

Philippines. USA’s main interest is to dominate the Pacific Ocean with the help of

Philippine and Japan

Cambodia 37. The US cut off direct aid to Cambodia after Hun Sen seized power in a 1997

coup. Lucrative US markets, direct US aid, military aid and cooperation on

counterterrorism symbolize the warm relation. The US has provided military aid to

Cambodia. US is the most important partner in fighting against terrorism, and the

US helped Cambodian soldiers participate in a military exercises within the UN

framework, in Mongolia. Improving relations between Washington and Phnom Penh

is a concern of power balance to China's superpower influence in Asia. China is

widely seen to have expanding interest in Cambodia. Cambodia needs the US

market, despite having a market like China for its goods, opposition. The relations

between Cambodia and the US are becoming better.

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Laos

38. USA-Laos relations deteriorated during in the post-Indochina War period after

1975. Full diplomatic relations were restored in 1992 with a return to ambassadorial-

level representation. In December 2004, normal trade relations started wtih Laos.

There has been a consequent rise in Lao exports to the US Bilateral trade reached

$15.7 million in 2006, compared with $8.9 million in 2003. The USA Government

provided more than $13.7 million in foreign assistance to Laos in FY 2006, in areas

including unexploded ordnance clearance and removal, health and avian influenza,

education, economic development, and governance. US interests are more of

political and economic than that of military.

Vietnam 39. Bilateral relations between the US and Vietnam have expanded dramatically

in recent years. One of US objectives in Vietnam is to stimulate growth and

development through economic and legal reform through promotion of greater

transparency in the implementation of law. US is trying to full normalization of

diplomatic, political and economic relations with Vietnam. Obtaining the fullest

possible accounting of American Prisoners of War (POW)/ Missing in Action (MIAs)

from the Vietnam War continues to be America's highest priority with regard to

Vietnam. Other issues are resettlement opportunities abroad for Vietnamese

refugees, economic and commercial cooperation and protection of intellectual

property rights, security dialogue, and law enforcement cooperation. On December

10, 2001, the USA-Vietnam Bilateral Trade Agreement (BTA) took effect. Under this

agreement Vietnam attained the status of Most Favoured Nation. US understand the

Vietnam psyche but for economic and military interest, keeping Vietnam at bay by

USA is essential which is vice versa as well.

Malaysia

40. Bilateral relations with Malaysia have historically been very good, particularly

at the working level. Despite sometimes blunt and intemperate public remarks by

the then Prime Minister Mahathir, USA-Malaysian cooperation has a solid record in

19

areas as diverse as education, trade, military relations, and counterterrorism.

Malaysia is USA’s eleventh largest trading partner, and USA is Malaysia's largest

trading partner and investor. Malaysia hosts 15-20 USA Navy ship visits per year,

and Malaysian military officers train at USA facilities under the IMET program. USA

signed a bilateral Declaration of Cooperation against International Terrorism.

Malaysia has established Malaysia-based regional CT training center.

41. Malaysia's highly developed infrastructure and educated work force have

attracted considerable investment from around the world. The USA has the lead

with an estimated $29 billion in investment, USA firms employ some 100,000

Malaysians and US trade with Malaysia supports nearly 200,000 jobs in the USA.

Malaysia-US defence cooperation has been steadily growing in the last few

decades. Highlights of the growing relations between these two nations are:

a. US chose Malaysia in 2003 to host the SE Asia Regional Center for

Counter Terrorism (SEARCCT), bypassing Indonesia- the most populous

Muslim nation in the world.

b. During the tsunami (Dec 2004) relief operations, US forces used

Malaysian air force bases for ferrying supplies to Aceh (Indonesia). The US

conducts training exercises with the Royal Malaysian Air Force, flying with

and against them in mock battles. There have been more than 75 USA

military ship visits in the past two and a half years.

c. 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.

d. Both countries have signed a Trade and Investment Framework

Agreement (TIFA) in 2004. This has paved the way for a Free Trade

Agreement (FTA) and completed by July 2007. The bilateral trade may

almost be doubled on implementation of the FTA.

20

e. Over the past three decades the US has been a popular destination

for Malaysian students. From 1981 to 1999 it was one of the top 10 sources

for international students in America.

f. Malaysian forces regularly conduct joint training with US counterparts,

and the US routinely enjoys access to Malaysian airfields and ports.

42. Among countries of the region, Malaysia is an especially good place from

which to view USA goals in SE Asia. Its stability also provides an especially good

lens through which to view the USA goals from a SE Asian perspective. Beyond SE

Asia, Malaysia enjoys a highly visible international role as Chair of both the Non-

Aligned Movement (NAM) and the Organization of Islamic Conferences (OIC).USA

underscores this reality and hence engaged with Malaysia accordingly.

Singapore

43. Singapore welcomes USA engagement in SE Asia as vital to regional

stability. US cooperate closely with Singapore in regional and international forum,

including APEC, ASEAN and the ASEAN Regional Forum (ARF) and the UN, where

Singapore was a non-permanent member of the Security Council. Singapore ranks

12th among US trading partners, and the USA-Singapore Free Trade Agreement

(FTA). Singapore has been also been among US strongest counterterrorism

partners and in the forefront of SE Asian counter terrorism efforts. Singapore was

the first Asian port to sign on to USA Customs Service "Container Security Initiative"

(CSI). CSI allows for pre-inspection in Singapore of goods destined for USA ports

and is an important security and efficiency measure. US military relationship is also

very strong. Although Singapore is not a treaty ally, it supports a strong USA military

presence in the Asia-Pacific region and has offered the USA increased access to its

facilities since the closure of US bases in the Philippines.

44. Under the MOU of 1990, a USA Navy logistics unit was established in

Singapore in 1992; USA fighter aircraft deploy periodically for exercises, and

roughly 100 USA Navy vessels per year visit Singapore. The MOU permits USA

Navy ships to berth at a special deep-draft pier at the Changi Naval Base.

21

Singapore is a major customer for USA defense sales in the Asia-Pacific region. A

new RSAF Apache AH-64D helicopter training detachment has recently been set up

in Arizona. USA and Singapore are pursuing their common goals of a terror free,

stable and strong economy. The USA–Singapore Strategic Framework Agreement

covers cooperation in "areas such as counter terrorism, counter-proliferation, joint

military exercises and training, policy dialogues, and defense technology."36

Thailand

45. In 2003, the US designated Thailand as a major non-NATO ally, which grants

Thailand many financial and military benefits derived from the United States.

Thailand is one of five USA Treaty Allies in Asia. Thai troops fought alongside

Americans in Korea and Vietnam. More recently, Thailand has provided critical

support, including a military engineering unit currently at work in Afghanistan, for

Operation Enduring Freedom. Thailand has actively cooperated USA on all aspects

of the war on terror. Thailand is USA’s seventeenth-largest trading partner with two-

way trade of about $20 billion. USA is the second largest foreign investor in

Thailand. USA and Thailand marked another milestone in the commercial

relationship with the signing of a Trade and Investment Framework Agreement.

Thailand and the USA have been fighting drugs together for several decades, and

joint USA-Thai efforts have led to the elimination of thousands of acres of opium

previously grown in Thailand. Thailand is now no longer a significant producer of

opium or heroin, though it remains a major transit point.

36 The White House, "Joint Statement Between President Bush and Prime Minister Lee of Singapore," July 12, 2005, at www.whitehouse.gov/news/releases/2005/07/20050712.html (February 5, 2007).

22

IMPLICATION OF US PRESENCE IN REGIONAL SECURITY ENVIRONMENT

Promotion of Democracy and Regional Security

46. The three most important means of influence and power that US can project

into this region are military force, diplomatic support and economic influence37.

Continued US engagement in the South and SE Asian region also facilitates the

promotion of democracy, one of the three central US security goals of the National

Security Strategy. US involvement – economically, politically and militarily – on both

sides of the pacific has been crucial to establishing the regional stability, security

and prosperity38. US military engagement in Asia promotes the spread of democratic

norms primarily by helping establish the kind of secure environment under which

democracy can develop and flourish. A secure regional environment enables

nations to focus on internal development, both economic and political, and provides

the breathing space for invention, experimentation and development that a transition

to democracy requires39. Impact of US on regional sy is given as Anx A.

Guarantor of Stability

47. SE Asia is undergoing a remarkable transformation led by rapidly growing

economies. Long-standing organizations, such as ASEAN, are taking expanded

roles40. ASEAN is clearly interested in a continued US commitment to the region. Its

members want strong trade and commercial ties, more technology, more

educational opportunities, more dialogue. The ASEAN region is also of growing

political importance. It includes allies, valuable security partners, the world’s third

37 Tennant J W, captain, USN and Mullinex Klaus, Colonel USA, Southeast Asia US Interest and Policy,NWC Course , Geostrategic Context, Research Paper of National War College, Washington DC, 1996. P,8. 38 Leong Stephen, ASEAN towards 2020, Strategic Goals and Future Directions, ASEAN Academic Press, London, 1998.p,193. 39 http://www.shaps.hawaii.edu/security/easr98.html dated 27 October 2008.

40 http://www.state.gov/p/eap/rls/rm/2008/09/110494.htm, dated 12 October 2008. Scot A. Marciel, Ambassador for ASEAN Affairs and Deputy Assistant Secretary for East Asian and Pacific Affairs, Remarks to Center for Strategic International Studies Meeting on "U.S. and Southeast Asia: Toward a Strategy for Enhanced Engagement",Washington, DC,September 25, 2008.

23

largest democracy and the world’s most populous Muslim majority nation. It sits

astride the strategically important Malacca straits. It is the next door neighbor of the

rapidly growing powers and economies of China and India. Traditional friends and

allies of the US in Asia have always acknowledged that a key determinant of

security in the region has been the US presence and its role as the “ultimate

guarantor” of stability41. The small and medium-sized states in SE Asia have

undergone significant geo-strategic changes with the end of the Cold War and the

rise of China. Key SE Asian states have actively tried to influence the shaping of the

new regional order42.

US –China Relation and Regional Security

48. China generally opposes the current US military presence in Asia and has

characterized the US system of bilateral military alliances as ‘out-dated Cold War

thinking’. China views the recent expansion of the US-Japanese defence guidelines

and the growing US defence relationships with SE Asian countries as threatening.

China has put forward an alternative ‘new security concept’ that calls for regional

relations based not on bilateral alliances but on principals of mutual trust, mutual

benefit, equality and co-operation. This new security concept:

a. Rejects the US military alliance systems.

b. Suggests that regional security requires co-operation and not competition between the major powers. c. Insists that economic security is a central component of regional security. d. Insists that dialogue, consultation and peaceful resolution of disputes are the means of ensuring co-operative security.

49. This security concept and China’s appeal to principles of co-operative

security stand in contrast to the USA’s system of bilateral military relations and

alliances. Asian nations recognize that the US will continue to exercise major

41 http://www.allacademic.com/meta/p_mla_apa_research_citation/0/7/3/9/1/p73919_ index.html dated 04 Nov 2008. 42 http://www.allacademic.com/meta/p_mla_apa_research_citation/1/7/8/7/9/p178793_index.html dated 04 nov 2008.

24

influence in the region, but China, in particular, sees the formation of an exclusive

Asian organization as an opportunity to help reclaim what it considers to be its

historical position as the regional leader in Asia43. The Chinese want to regain

regional prominence and freedom in dealing with what they regard either as

domestic or purely bilateral issues. During Korean War US used all her influence on

the world community to isolate China as far as possible44. China’s recent change of

attitude towards multilateral security structures and its emphasis on security co-

operation partnerships runs counter to the USA’s reliance on bilateral security

alliances and forward military deployments. These contrasting visions of the role of

alliances and the requirements for regional stability pose a challenge to the USA’s

military presence in Asia.

US – India Relation and Regional Security

50. The US - India relationship has recently undergone a dramatic

transformation, with both countries committing themselves to a global strategic

partnership symbolized most prominently by the agreement on civilian nuclear

cooperation. The rise of China, against the backdrop of larger Asian economic and

political dynamism, provides strong strategic motivations for renewed US - Indian

collaboration. US and Indian objectives and strategies vis-a-vis China, for example,

are remarkably similar. Both countries are trying to protect their interests, primacy

and security obligations in those critical regions where China's rising power could

pose a significant threat, in Asia for the Us, and South Asia for India.

51. In SE Asia, Indian and US objectives are again perfectly complementary. A

core national security objective for both countries is to prevent the key SE Asian

states from becoming strategically dependent on China. The SE Asian states, in

turn, realize that their goals of securing freedom and political space are best

achieved through a calculated policy of inviting India, along with China, Japan, and

the US, to operate freely within the region. The US and India seek to prevent the

43 Nanto Dick K, East Asian Regional Architecture: New Economic and security Arrangements and U.S. Policy, CRS Report for Congress January 2008.p,10. 44 David M.D. and Ghoble T.R, INDIA, CHINA AND SOUTH- EAST ASIA, Dynamics of Development, Deep and Deep Publications Pvt .Ltd. new Delhi 2000.p,74.

25

use of the ocean's transit routes for the movement of weapons of mass destruction

and associated materials, in addition to protecting the littoral island states from

internal and external threats and from exporting instability45.

Proliferation of Weapons of Mass Destruction (WMD)

52. Proliferation remains a serious security challenge, and one of increasing

concern to the US and its Asia-Pacific allies. Security relations between India and

Pakistan are not institutionalized by a security treaty46. Indian and Pakistani nuclear

tests, followed by each nation's claim to nuclear power status, threaten to

complicate global nonproliferation efforts, as well as security perceptions and the

security environment in the Asia-Pacific region. The US has strongly condemned the

actions of India and Pakistan as counterproductive to regional and international

stability, as well as to the South Asian nations' economic and security interests. The

domestic environment within Pakistan is shaky. Extremist groups within Pakistan

continue to operate with seeming impunity. The Subcontinent remains a very

unstable, shock-prone region. One possible shock could be an act of nuclear

terrorism. To control that, India and Pakistan should demonstrate responsible

nuclear stewardship by negotiating and implementing in good faith confidence

building and nuclear risk-reduction measures47.

US Trade and Investment 53. The USA continues to regard its military presence in South and SE Asia as a

critical source of stability until a functional co-operative security arrangement can be

established. The security and stability of the region demands a firm US commitment;

and the US sees itself a key promoter of democracy in Asia. ASEAN was the fifth

largest trading partner for the US, with trade between the two worth about 136 billion

US dollars. Asia has become an increasingly important region for the USA in terms

45 Tellis Ashley, American and Indian Interests in India’s Extended Neighborhood, Centre for the Advanced Study of India , University of Pennsylvania, june 2007. 46 Sridharan E, The Evolution of the Post Cold war Regional Security Institutions in South Asia, University of Pennsylvania Institute for the Advanced Study of India, Pennsylvania, February 2006. 47 http://www.stimson.org/southasia/?SN=SA2001112042 dated 4 November 2008.

26

of trade. US disengagement would threaten US access to Asian markets, limit the

USA’s ability to influence economic and political trends in the region, and engender

heated competition for influence among regional powers48. The US States is intent

on deepening economic and political ties with South and SE Asia but not by trying to

contain China's rising influence in the region49. American primacy on the

Subcontinent is in danger of being compromised by the balanced expansion of

Chinese influence in the region. For example, US trade with India grew from US$14

billion in 2000 to US$41 billion in 2007. In the same period, China’s trade with India

grew from US$3 billion to nearly US$38 billion50.

54. USA has moved to reinforce economic advantages through a series of

bilateral trade agreements in SE Asia51. In Fiscal Year 2008 the US has an

assistance budget for SE Asia of more than one-half billion dollars. Some projects

that US are supporting:

a. Health. The region has been endangered by avian influenza and faces big

challenges in addressing HIV/AIDS, malaria and other infectious diseases. US is

extraordinarily active. In 2008, the US government will spend more than $212

million to support health-related activities in SE Asia.

b. Education. This is biggest element of US aid to Indonesia – and very

successful. President Bush launched a six year $146 million program to improve

education at the secondary level. US have just signed an agreement with

Vietnam to initiate a high-level education dialogue to help Vietnam improve its

tertiary education system.

48 JANE’S INTELLIGENCE REVIEW , JANUARY 2001, p 31. 49 http://www.aseansec.org/afp/116.htm dated 28 October 2008. 50 Americas role in Asia 2008, Asian and American Views, Published by The Asia Foundation, California, USA 2008.p,58. 51 Beeson Mark, Contemporary Southeast Asia, PALGRAVE MACMILLAN, New York, 2004.p,202.

27

Terrorism

55. South and SE Asia is not immune to the threat of terrorism or penetration by

international terrorist groups. A new and particularly dangerous phenomenon is

represented by ad-hoc, loosely knit groups of extremists who have gained deadly

operational experience in the Afghan conflict, and now travel the region in an effort

to expand their networks and operational capabilities. Difficult political, economic

and social changes occurring throughout the region in coming years may

exacerbate popular discontent and frustration that can fuel resort to terrorism as a

means of redress. The US had its own concerns about terrorism in this region and

response of governments there. Cooperation in the war against terrorism has given

a impetus to regional multilateral cooperation and increased US engagement with

these efforts52.

Environmental Degradation

56. Economic development in the South and SE Asian region has come at

substantial environmental cost. Although environmental problems largely stem from

internal, domestic activities of individual nations, the impact of these activities often

has transnational effects, such as on air and water quality. Concern about

environmental degradation has also facilitated military-to-military contacts between

the US and Asian nations. US military engagement with other nations on

environmental matters has proved to be a productive area for cooperation between

militaries. In addition to the direct environmental benefits, through this mechanism

trust is established that may lead to easing of tensions and better understanding of

different military cultures.

Drug Trafficking

57. Drug trafficking throughout the region continues to threaten US interests both

at home and abroad. SE Asia is the world's leading region for poppy cultivation and

heroin production, particularly within the Golden Triangle, comprised of parts of

Burma, Laos and Thailand. Drug trafficking routes traverse the entire region, posing

52 Contemporary Southeast Asia, A Journal of International and Strategic Affairs, Institute of Southeast Asian Studies, Volume 26, Number 1, April 2004.p,82.

28

significant challenges to US international efforts to reduce availability of illicit drugs

in the US. Various concealment methods, along with widely dispersed international

organized crime organizations, also make interdiction difficult without adequate

resources and intelligence.

Energy

58. Asia is entering a period in which its demand for energy will grow. Rapid

population growth and economic development are fueling this trend. The regional

energy market is characterized by a number of developing economies, all of which

will be seeking to meet growing energy demands. In the new century, a greater

percentage of Asia's energy requirements for oil will have to be satisfied by

producers in the Arabian Gulf. As a result, promoting stability in the Arabian Gulf,

maintaining freedom of the seas, protecting sea lines of communication, particularly

in the Strait of Malacca, and other efforts to safeguard energy supplies will become

a challenge of increasing mutual interest. If new sources of supply do not live up to

expectations or tensions threaten supply routes, such as pipelines and sea lines of

communication, resource competition will become an increasingly relevant security

concern.

Humanitarian Relief

59. Humanitarian operations to promote peace and address humanitarian crises

in nations suffering a natural disaster, civil strife or other forms of conflict may

likewise serve important U.S. security interests and values, including preservation of

regional stability, and promotion of democracy and human rights. US

comprehensive engagement in Asia includes readiness to deploy U.S. forces to

alleviate humanitarian crises in the region when appropriate. In Asia, US forces

have engaged in a variety of humanitarian relief efforts in recent years, most notably

disaster relief. The U.S. remains prepared to respond constructively throughout the

region should emergencies occur in the future.

29

CONCLUSION

60. The nations of South and SE Asia remain strong and independent, that they

enjoy peace, stability, growing prosperity and greater freedom, and that they

succeed in their efforts to integrate. If the countries of this region are doing well and

making progress along these lines then US is in great shape. The SE Asian region

works with US to address bilateral, regional and global issues, ranging from

promoting commerce to addressing climate change to combating the proliferation of

weapons of mass destruction. In the strategic sense, SE Asia alone is not, as yet, in

a position to take care of itself without US involvement. US wants ASEAN region to

be good partner in peace and security.

61. South Asia is gradually increasing its influence in international affairs. On the

economic front high growth rates are also visible in the Subcontinent, making it as a

fastest growing region in the world — after China. On the political front, most major

issues that confront U.S. policy — international terrorism, Islamic radicalism,

weapons of mass destruction, proliferation, state failure, nation building, and

promotion of democracy — are embedded in the South Asian Subcontinent. South

Asia will become increasingly relevant to a number of new challenges confronting

U.S. foreign policy, such as Asia’s regional balance of power, maritime security, and

global warming. A strong Subcontinent, in harmony with itself and engaged with the

US, can emerge as a force for peace and stability across the Indian Ocean and its

littoral.

30

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