He's happy to apply his strategic sagacity to the chief matter of the moment -- George Bush or Al Gore, who would be better for Asia?

Lee foresees difficulty for Asia no matter which of the two wins. A president Bush would be better on trade for Asia than a president Gore, but the danger in a Bush presidency would be China policy. If it's Gore "the plus side is a continuity on China and Taiwan, there is less danger of a variation that might cause tensions".

"If it's Bush, after 12 to 18 months they'll come back to the same fundamentals (on China). But in those 12 to 18 months there could be quite a few alarms whilst the new team tests the limits.

"Of course, Bush is good for free trade without Gore's emphasis on labour and environmental rights. For South-East Asia the trade issue will be of paramount consideration."

In his Singapore office this week, the former prime minister -- at 77 still smart and sharp -- strongly backed the new Singapore-Australia free trade deal now under negotiation, and called for a new round of World Trade Organisation trade negotiations.

He also warmly endorsed a Pacific free trade area known as P5, involving Australia, Singapore, the US, New Zealand and Chile.

But if Gore wins, Lee is pessimistic about a new WTO round. He says: "For various reasons the US allowed their NGOs to abort (the proposed WTO round at) Seattle, all in the name of protecting Third World workers and the environment. Let's get on with bilateral and regional trade agreements. The best is eventually to go back to multilateral arrangements in the WTO."

The Lee interview coincides with the publication in Australia of the second volume of his memoirs. In these he praises John Howard for deploying troops in East Timor, but is critical of the Australian diplomacy which led to that deployment.

He believes Canberra's policy was driven by public opinion and an uninformed media, and miscalculated what then Indonesian president B.J. Habibie could deliver on Timor.

He recounts the reaction of US Assistant Secretary of State for East Asia, Stanley Roth, to Howard's letter to Habibie proposing autonomy for East Timor, that prime ministers should be more careful of the letters they write.

Lee was reluctant to be drawn further on Howard, but did confirm the deliberate nature of Roth's judgment on the Howard initiative: "I recounted in my memoir exactly what happened ... Roth said to me (what he said). Later I told him I wanted to quote this in my memoirs. He paused momentarily and said, go ahead."

But his judgment of American actions is no more flattering."

Lee can hardly conceal his concern at the difficulties of South-East Asia, Singapore excepted. He won't concede that it will fall off the map of international investors, but he acknowledges the troubles, and sees North-East Asia doing considerably better.

"I don't know how the imbroglio will end in The Philippines," he says. "But it will end. They are not going to be a tiger economy any time soon, but their potential is real. They just need good governance."

On Indonesia: "It's a tougher job for President (Abdurrahman) Wahid than anybody expected and he's made it tougher for himself by not incorporating those who do not agree with him and who won large votes ...

"The final test: is confidence returning? That's not something outsiders can do for them. The US can't do it for them. They have to do it for themselves. That is now the critical factor."

On Australia's so-far forlorn attempts to join regional structures beyond APEC, and the resistance this has encountered from Malaysia and Indonesia, Lee's sound advice is: "The penny will drop, moods will change. We expect Australians to have enough stamina and perseverance to see things through. We have had to develop those qualities."

Sitting back on his couch in casual pants and a zip-up wind cheater, Lee knows a thing or two about stamina and perseverance.

Lee Kuan Yew was interviewed by editor-in-chief David Armstrong and Greg Sheridan