One of the summer readings was a book called Asian Waters by Humprhrey Hawksley published by The Overlook Press, NY, 2018. Although the book is a few years old, the issues it covers have not changed much for the book is about the struggle over the South China Sea and the strategy of Chinese expansion.

Many people have heard and know something about the US and Cuba crisis in 1962. At the same time, China and India were feuding over land. President Kennedy asked Indian Prime Minister Jawaharlal Nehru, what he needed and just over a week after the Chinese invasion, US military advisors, weapons and other supplies were in Indian military air bases. The US also sent military assets to the Philippines ready to help India. (incidentally, originally the Spanish controlled the Philippines but their empire went downwards, in 1898 after Teddy Roosevelt and the Rough Riders helped fight the Spanish in Cuba, the Spanish added the Philippines to the settlement. Cuba was important for the sugar trade and the US was beginning to look beyond its borders). China had fewer weapons and withdrew from India.

A year later, Pakistan ceded territory in Jammu and Kashmir to China. The problem was that India claimed 4,000 square miles of Aksai Chin. India and Pakistan fought over the borders, peace was brokered by the UN although the biggest tank battle since WW II had occurred.

Pakistan found itself an ally of both China and the US. When President Nixon went to visit China in 1971, India forged an alliance with the USSR. India also sponsored an independence movement in West Pakistan (now Bangladesh). The US lined up against India and for Pakistan.

The constant state of war and hostilities with Asia prompted a nuclear arms race. By 1974, India had nuclear weapons. The relationship between Pakistan, India and China is complex.

In the book, each country in Southeast Asia is examined and they all have their histories and as time goes on more and more influenced by China. Which is why if you listen to opposition US politicians as the US steps back from being a world leader, China is stepping into the position. Is that good or bad, time will tell, but hopefully you will have a greater understanding of the why.

Linking to dividend paying stocks, in all industries, there are leaders and the leaders drive the industry on the drive to continue to make profits to pay dividends. In all industries you can see companies that could move towards leadership if the leaders step backwards for a multiple reasons, including succession planning. If you own investments in companies that are leaders, it is good to also know who could replace them if conditions change.

There are more questions than answers, till the next time – to raising questions.