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Formal economic aid, i.e. public, announced, above board. The point of the whole exchange was to humiliate the CIA. They assumed Lee was for sale and he wasn’t and he could prove they tried to buy him.

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But wouldn't the honorable thing to do be to reject anything?

An individual would not be alive if he rejected any help, correct ? Think infant hood and childhood. A similar principle holds true for nations.

Are you implying that Singapore would have "died" without the $3.3 million?

No, they're (seemingly) implying that the circumstances under which someone accepts assistance very much dictates the morality.

Why?

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