The World Circa May August 2001:
Northeast Asia and South Asia
Northeast Asia and South Asia
South Korea and North Korea:
The failure of President Kim Dae Jung’s Sunshine Policy hurt his standing, so much so that slightly more than halfway through his term, the word “lame duck” was already being associated with him. For a time, Kim turned his focus inwards on economic and social policy and preparing the nation to co-host the 2002 World Cup with Japan. The spring only returned somewhat to Kim’s Presidency in March 2001 when President of the United States John McCain made South Korea his first visit overseas. McCain called South Korea a “frontline” and that the United States will continue and supporting it. It was an apt comment for South Korea could rightly be called the only nation in Northeast Asia that did not fall under China’s sway in 2000.
After McCain left Seoul, however, Kim found himself under attack by President of the Grand National Party (GNP) and National Assembly Member Lee Hoi Chang. Lee said that McCain’s support only applies to the South Korean people and not to the current “failed administration”. Lee also said that South Korea needs to adopt a stronger stance on North Korea. It was a political attack that made the South Korean public realize that the political temperature was about to heat up again for the presidential election was due in December 2002 and that Lee, a former presidential candidate in 1997, was angling to take another shot.
Across the 38th Parallel, Chairman of National Defense Commission Kim Jong Il entertained notions that it might fall to him to reunify the country seeing as Russia and China were once again positioning themselves to challenge the United States. In December 2000, returning from a visit to both Beijing and Moscow, Premier Hong Song Nam reported to Kim Jong Il that China and Russia had cautioned North Korea not to take any “rash actions” and “keep us in the loop”.
In January 2001, Kim visited China. After travelling around Shanghai, he met with President of China Jiang Zemin in which the latter impressed on Kim the importance of conducting economic reform in North Korea. In March 2001, Kim was visited by Prime Minister of Russia Vladimir Putin and once again talk of economic reform was brought up. The results of these lobbying, some would say pressure, became evident during North Korea’s May Day celebrations when Kim announced that the Korean Workers’ Party (KWP) will hold a National Congress in November 2001, its first in 21 years, to discuss matters such as “economic reforms to strengthen our Juche economy”. Observers of North Korea were abuzz with activity at this announcement; a consensus emerging that China and Russia had pressured North Korea to undertake economic reforms in exchange for ensuring the preservation of Kim’s regime.
Japan:
In the first 6 months of his tenure, Prime Minister Koichi Kato sought to show his mark. He cut spending by going after public works projects and subsidies, cutting corporate taxes, and conducting deregulation and privatization. Much to the relief of those in Jakarta, aid was not cut though this still left Kato’s foreign policy orientation to worry about.
The Japanese General Election was held in October 2000. 6 months was not enough to turn the Japanese economy around, but it was enough to show that Kato had the right intention. On the back of this, Kato was able to increase the LDP’s seats in the House of Representatives from 233 to 242 so that it could form government on its own right without coalition partners though Kato retained the LDP’s coalition with New Komeito and the newly formed New Conservative Party. Meanwhile Yukio Hatoyama led the DPJ to 122 seats in the House of Representatives.
The next 6 months proved trickier for Kato. At a time when the Japanese economy needed to increase its activity and when the United States had gone into a recession in 2001, Kato’s “structural reforms” involved spending cuts intead of stimulating the economy. In cabinet meetings, Kato was pressured to initiate a stimulus package. The Prime Minister insisted that they stay the course even as the stagnant Japanese economy began to slow down.
July 2001 saw the House of Councillors, Japan’s upper house, elections. It was election that all in the LDP gave increased scrutiny. A drop in the number in the LDP seats had caused Ryutaro Hashimoto to resign the prime ministership in 1998. In the event, Kato managed to increase LDP’s seats in the House of Councillors by two. Hardly a resounding endorsement but one with which Kato’s growing detractors to turn into a pretext for unseating him. For the moment, Kato, characterized as always as “pro-China”, holds on.
Kato genuinely feels surprised when characterized as being “pro-China” arguing instead that he was in favor of an equilateral triangle where Japan has close bilateral relationships with both the United States and China. For this reason, Kato was keen to maintain Japan’s close relationship with Indonesia, constantly assuring Indonesian officials who come to visit that continuing investment and aid in Indonesia from Japan was a guarantee. In April 2001, Kato even went as far as conveying the Indonesian Government’s request to the US Government to pressure Freeport into divesting its shares in Irian Jaya to the Indonesian Government. Kato’s failure, however, indicates the McCain Administration’s relatively cool response to him.
Taiwan:
James Soong assumed office as President of Taiwan in May 2000. Aside from maintaining Taiwan’s economic performance, Soong also began to work on cross-strait relations. In August 2000, Soong’s Government approved direct postal, transportation, and trade links between the Kinmen and Matsu Islands controlled by Taiwan with cities in Fujian Province just across the strait. The decision was warmly welcomed by Jiang. When Soong indicated that he would like to attend the APEC Summit in November 2000, Jiang did not object though when he met with Soong at Bandar Sri Begawan, he referred to the latter as the “Delegate from the Province of Taiwan”. Nevertheless, the photo-op between the two, which also included Chief Executive of Hong Kong Tung Chee Hwa showed what a good year 2000 was for China.
The reaction to Soong’s policy would come in 2001. The DPP, led by former Mayor of Taipei Chen Sui Bian, expressed strong opposition to Soong’s policies toward China and sought to build popular support. In what would become known the “Three Toos” speech, Chen said Soong had moved “Too Fast”, “Too Soon”, and “Too Close” with the mainland. The DPP aimed to make its mark at the 2001 Legislative Elections.
From Washington, the McCain Administration kept a watch on Northeast Asia. In late 2000, then President-Elect McCain went into his first State Department briefing and came out bemused. “Just my luck”, he said “Taking office at a time when both Tokyo and Taipei are friendly towards Beijing.”
China:
The year 2000 was a great year as far as China was concerned; the rise of a pro-China Prime Minister of Japan and a President of Taiwan that was friendly towards the mainland on top of another year of strong economic growth.
President Jiang Zemin welcomed Yevgeny Primakov’s rise as President of Russia with some ambivalence. There was no question that China and Russia were natural allies against the United States as Chairman of NPC Li Peng was fond of pointing out. At the same time, Jiang had established a good relationship with Bill Clinton and had hoped that this relationship would continue if Al Gore was elected president. But this was not to be, for it was John McCain who was elected. Jiang last saw Clinton as president at the 2000 APEC Summit. Though genuinely sad that Clinton was on his way out, Jiang’s mind was already on the future. Li Peng spent the end of the year in Moscow overseeing preparations for what would become the Sino-Russian Treaty of Friendship. In January 2001 with only 48 hours left until McCain’s Inauguration, Primakov visited Beijing and together, he and Jiang signed the Sino-Russian Treaty of Friendship.
It was not long before China had its first run-in with the new administration. In April 2001, a Chinese fighter jet and a US Navy signals intelligence airplane collided mid-air with each other. The Chinese pilot was declared dead (he was never found) but the US Navy personnel were detained by the Chinese authorities. The situation was only defused and the US Navy personnel released when a letter was given by the US Government to Chinese Government which may or may not be considered to be an apology depending on who’s reading it.
Another foreign policy issue which Jiang and the Politburo Standing Committee of the Chinese Communist Party discussed in early 2001 was the region immediately next to theirs and the nation seeking to establish. For the ASEAN+3 Summit in November 2000, original plans had called for Jiang to offer a Free Trade Agreement between China and ASEAN. However, this idea was scrapped. Jiang used the summit instead to try to “intimidate” President of Indonesia Try Sutrisno in essence softly warning him not to try to challenge China. Upon return to Beijing, Jiang reported his exchange with Try and admitted that Try seemed a tough nut to crack. Li Peng advised Jiang that China had bigger concerns to worry about than Indonesia.
Then in February 2001, as news spread that Indonesia was going to sign its Treaty of Friendship and Cooperation with Thailand. This time Premier Zhu Rongji spoke up and with an eye to Prime Minister Najib Razak’s visit, argued that China should respect Indonesia’s supremacy in Southeast Asia and not try to encourage Malaysia’s refusal not to be part of Indonesia’s bloc. Zhu was outvoted by the consensus of the Politburo Standing Committee which was that China should use Malaysia to counter Indonesia’s bid for leadership in Southeast Asia.
In March 2001, after Laos’ LPRP National Congress and the National Assembly produced leaders which tended to adopt a more independent stance as it relate to China, discussions about Indonesia became more serious. This was especially more so when it was pointed out that General Secretary of Vietnamese Communist Party (VCP) Le Kha Phieu ran the risk of being replaced at the upcoming VCP Congress by those who tended to be “Pro-Indonesian”. The Politburo Standing Committee thus agreed to intervene on a “party-to-party” basis and instruct the VCP to delay its congress to a more favorable time. What Jiang and the Chinese leadership did not count on were the VCP moving of its own accord to remove Le Kha Phieu and install Nong Duc Manh as acting general secretary. Jiang also counted even less that most of Southeast Asia would be displeased at the intervention effort.
At a Politburo Standing Committee meeting after the completion of the VCP National Congress, there was a consensus that what happened in Vietnam was to the benefit of Indonesia. Li Peng however continued to insist that there were more important matters to attend to. Jiang agreed with him; Indonesia was nothing compared to what China was aspiring to.
“Comrades, we launched an unmanned spacecraft in January, our application to host the Olympics in 2008 will be decided in July, and we’re joining the WTO in November”, said Jiang “What have we to worry about a few good fortunes going Indonesia’s way? They’re a long way from beating us. Well they beat us on the football field a few weeks ago, but that doesn’t count, right? Our concern is the bald eagle across the ocean.”
Domestically, the CCP began to look forward to the matter of succession where it was becoming clear that Jiang Zemin was showing no intention of departing the scene. As 2000 wore on, Jiang increasingly became close with Li Peng. Where Jiang was reluctant to leave the scene, Li wanted to retain influence even after retirement and the two made common cause.
October 2000 saw the CCP’s Central Committee meet in its annual session. While Zhu Rongji introduced China’s next Five Year Plan, Jiang spoke about the international situation and how China needed to find strategic partners and build a multipolar world. Over the next few years, China would need “steady hand leadership” as it moves forward. Those present at the plenum quickly that Jiang was making a pitch to stay on. While there was resistance to the idea of Jiang staying on, most were unsure about Hu Jintao. His blandness, passivity, and caution even in the face of Jiang toying with the idea of not relinquishing power made people wonder if he has what it takes to be China’s leader.
In the end, The Central Committee’s annual plenum ended with Hu’s position as leader-in-waiting looking shaky. Once again, Hu missed out on being named Vice Chairman of the Central Military Commission. At the same time, the CCP Central Committee agreed to expand the Politburo Standing Committee’s composition from 7 members to 9. The two additional seats were given to Secretary of the Central Politics and Legal Affairs Commission Luo Gan and Vice Premier Wen Jiabao. The former was seen as Li’s protégé though acceptable to Jiang and the latter, being groomed for succession of the premiership by Zhu Rongji, seen as a way to keep Zhu onside. Both immediately gained status as alternate leaders in the event that Hu did not eventuate.
Hu was not unaware what was up. In April 2001, he chose to take up the duty of asking the VCP to delay its National Congress. Other Politburo Standing Committee members shied away from taking up what would be an unpopular duty but that was precisely the point. A failure though the intervention on the VCP was, Hu won points as far as being a loyal party member was concerned. The Next CCP National Congress would not be due until late 2002 and there will be plenty of jockeying to be done.
India:
With a continually growing economy, a budget deficit at a time when military spending was required to face off against Pakistan, and the nation’s population crossing the 1 billion mark, there was already plenty in Prime Minister Atal Bihari Vajpayee’s plate. But things were happening abroad too. In September 2000, Vajpayee visited Washington DC finding Bill Clinton very courteous as always but noticing that Clinton was desperate to lock in India as a partner against China and Russia. Then a month later, Primakov visited India and was keen that India would become Russia’s partner. After all, it was Primakov’s vision that Russia, China, and India form a triangle to counter American influence. Vajpayee did not commit to anything that would unduly limit his options. He wanted to see if this “New Cold War” was anything like the old.
This was not to say that the Indian Government was not concerned about the world around it. Pakistan was always on top of the list as far as security threats are concerned but as George Fernandes, the hawkish Minister of Defence, was wont of saying, China was “also right up there”. China’s “great year” in 2000 meant that it became more urgent for India to find a way to check China’s progress. This was where Indonesia figured into Vajpayee’s calculations.
Vajpayee had initially identified Indonesia as a potential check on China’s influence on the basis of size alone. By the end of 2000, with Indonesia’s strong economic growth and its more assertive stance on foreign policy, Vajpayee began to think that India should come to an arrangement with Indonesia as to how to relate to China.
This arrangement was completed in June 2001 when President of Indonesia Try Sutrisno visited India. Though the formal agreements signed was important, the informal agreement was also important too. As Vajpayee explained to his cabinet, India would not get in the way of an “assertive Indonesia” in Southeast Asia and would use the leverage it has in Myanmar, where it has sought to counter China’s influence, to encourage the isolated junta-led nation to be part of Indonesia’s bloc. In exchange, Indonesia will build closer ties with Pakistan, in particular with Chief Executive of Pakistan Pervez Musharraf who admired Try, and lobby in favor of India.
There were some murmurs around the table that the informal arrangement with Indonesia meant that India now have to tolerate Musharraf’s existence given that it was contingent on Try Sutrisno building a good relationship with Musharraf. Vajpayee told his ministers that he allowed Try to make the offer to build closer ties with Musharraf so the Indonesian president can feel that he’s offering something back. He said that Indonesia would have already fulfilled its part of the bargain if it was able to become a legitimate counterweight to China.
Pakistan:
Chief Executive of Pakistan Musharraf continues to consolidate his position. Former Prime Minister Nawaz Sharif, who has been detained since the 1999 Coup, has been sentenced to life imprisonment though appeals by the Saudi Royal Family had caused Musharraf to send Sharif into exile there in December 2000. The Supreme Court of Pakistan has also declared Musharraf’s coup in 1999 to be legal.
Not all was well. In early February 2001, after news that the President of Indonesia had conducted mass arrests on those affiliated with Al Qaeda and Jemaah Islamiyah had arrived, Musharraf’s closest colleagues gathered to intrigue. The Pakistani Army’s officer corps had an Islamist bent and had cozy links with the nation’s Mullah. Musharraf had played this game dutifully. He had maintained the relationship and had even continued the nation’s stance of recognizing and supporting the Taliban Regime next door in Afghanistan. At the same time however, Musharraf had spent some of his formative years and had fancied himself a reformer and modernizer like Kemal Ataturk. Now this background counted against him.
“In the past he wanted to be Ataturk, in the present will he be like Try Sutrisno?” asked Director General of Inter-Service Intelligence Lt. Gen. Mahmud Ahmed.
Indonesia’s Try Sutrisno was indeed the present-day world leader that Musharraf looked up to. Their military backgrounds along with their non-infantry origins (Musharraf from the artillery, Try from the engineers) meant they had a lot to bond over, though Try seemed reluctant that Indonesia become too close to Pakistan. But this changed as 2001 wore on. Musharraf and the Pakistani delegation were welcomed warmly in Indonesia when they attended the G-15 Summit in May 2001 and Musharraf returned the welcome when Try visited the next month.
Musharraf was not unaware of what was going on behind him and spent 2001 consolidating his position. In May 2001, prior to his departure to Jakarta to attend the G-15 Summit in Jakarta, Musharraf relinquished his position as Chief of Army Staff and appointed Aziz Khan. Aziz Khan was a supporter of Musharraf but was also acceptable to the Islamist elements in the Pakistani Army; holding anti-American views. Once back from the G-15 Summit, Musharraf further consolidated his positioned. He sidelined President Rafiq Tarar and assumed the presidency for himself in June. Musharraf however still held on to his office as Chairman of the Joint Chiefs of Staffs Committee and as Chief Executive of Pakistan, the latter being the office he had assumed for himself after the 1999 coup.
Bangladesh:
Bangladesh initially recognized secularism in its constitution at independence but successive governments and amendments had chipped away at this so that Islam had become the state religion. The news of Indonesia’s Try Sutrisno arresting Al Qaeda and Jemaah Islamiyah operatives and his strong overall stance against Islamism gave Prime Minister Sheikh Hasina energy to fight her own struggle; Hasina being the target of a foiled assassination attempt in July 2000.
2001 was to be a busy year for Bangladesh. It was due to host the Non-Aligned Movement Summit in Dhaka and to this end, President of South Africa and current Chairman of NAM Thabo Mbeki visited Bangladesh in December 2000 to ensure preparations were well and good. Hasina assured Mbeki that they were. Mbeki also used the opportunity to visit Opposition Leader Khaleda Zia. Zia, wife of late Presiden Ziaur Rahman and former prime minister, pledged that if elected, she would hold the NAM Summit.
A bipartisan commitment to holding the NAM Summit was important for 2001 was an election. Already the political temperature was rising with violence abound. Under provisions of the Bangladeshi Constitution, Hasina handed over the reins of government to a caretaker government in June 2001. The Caretaker Government was headed by former Chief Justice Latifur Rahman. Though ostensibly only there to hold the elections, the Rahman-led Caretaker Government will also have the additional task of preparing Bangladesh to host the NAM Summit in October 2001.
Rest of South Asia:
Prime Minister Ratnasiri Wickremanayake’s government was re-elected in December 2000. Adopting a hardline approach, Wickeremanayake was beginning to equip Sri Lankan Army units with Pindad Rifles bought from Indonesia in its campaign against the Tamil Tigers. Though adopting a hardline stance, Sri Lanka suffered a setback when Tamil Tigers rebels attacked Bandaranaike International Airport in July 2001 causing extensive damage to the airport and adjoining Air Force Base.
Aside from Sri Lanka, Pindad was interested in selling its assault rifles to Nepal. The CEO of Pindad Maj. Gen. Djoko Subroto got to make a presentation about Pindad’s capabilities in front of Crown Prince Dipendra, who was an assault rifle enthusiast. Djoko hoped to make the sale considering that Nepal was embroiled in a civil war against Nepalese Maoists but Dipendra was not interested. Dipendra’s aide told Djoko that 1st June 2001, that Dipendra was not getting on with his family and was just looking for an excuse to a avoid a family dinner that night.
April 2001 saw Indonesian Minister of Foreign Affairs Ginandjar Kartasasmita visit Bhutan to discuss establishing diplomatic relations.
---
China is going through what is happening OTL plus the fact that they got friendlier than usual governments in Japan and Taiwan. Pretty much South Korea is the only nation in the region that hasn’t been pulled into China’s orbit.
Much as Australia, India sees Indonesia as the nation that could be used to counterbalance China. OTL Vajpayee actually reduces tensions with China in the early 2000s. But an Indonesia that survives and be the first to get out of the Asian Financial Crisis does change calculations.