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DE RUEHPF #0103/01 0431019
ZNY CCCCC ZZH
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FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC PRIORITY 1661
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2605
RHHMUNA/USPACOM HONOLULU HI PRIORITY

C O N F I D E N T I A L SECTION 01 OF 04 PHNOM PENH 000103 
 
SIPDIS 
 
STATE FOR EAP/MLS 
 
E.O. 12958: DECL: 02/10/2020 
TAGS: PREL PGOV PBTS MARR TH CB
SUBJECT: DAS MARCIEL REVIEWS U.S. POLICY WITH GOVERNMENT, 
OPPOSITION, CIVIL SOCIETY 
 
REF: A. PHNOM PENH 89 (ICC) 
     ¶B. 09 PHNOM PENH 960 (UIGHURS) 
 
Classified By: AMBASSADOR CAROL A. RODLEY FOR REASONS 1.4 (B, D) 
 
¶1. (SBU) SUMMARY.  In a wide range of meetings with Cambodian 
officials, opposition party members, NGOs and civil society, 
Deputy Assistant Secretary for East Asian and Pacific Affairs 
Scot Marciel spotlighted stepped-up engagement by the United 
States in Cambodia while highlighting specific issues such as 
the Uighur deportation, bilateral debt, Preah Vihear, the 
Anti-Corruption Law, and resolution of the Cambodian-Thai 
border dispute.  Both DPM Sok An and FM Hor Namhong renewed 
the Cambodian commitment to settle the dispute with Thailand 
peacefully.  Sok An detailed Cambodian claims to the Preah 
Vihear temple area, and Hor Namhong expressed appreciation 
for increased U.S. participation in the region, including the 
Lower Mekong Initiative.  He also extended an invitation for 
the Secretary to visit on the occasion of the 60th 
anniversary of diplomatic relations in July.  Economic 
experts highlighted concerns about sustainable economic 
growth and macroeconomic stability, particularly in light of 
the expected closure of the IMF office in Cambodia this year. 
 Opposition parliamentarians were less downbeat about 
identified deficiencies in Cambodia's tighter political 
space, and more deliberate in identifying actions they could 
take to improve the situation.  In meetings with civil 
society, the Uighurs, Sam Rainsy's conviction, and a proposed 
NGO law figured prominently.  DAS Marciel spoke on U.S. 
foreign policy in the region to 400 university students, who, 
in a spirited exchange, demonstrated that Cambodia's youth is 
a vibrant reminder of the promise of Cambodia's future.  END 
SUMMARY. 
 
Debt and Impact of Uighur Decision 
---------------------------------- 
 
¶2. (C) Deputy Prime Minister and Minister of Foreign Affairs 
Hor Namhong reiterated his request to Secretary Clinton to 
reschedule bilateral debt, suggesting now that 70% of the 
debt be diverted to development assistance and that 30% would 
be repaid.  DAS Marciel outlined the legal obstacles to debt 
forgiveness, and indicated that the process was complicated 
further by Cambodia's recent decision to deport 20 Uighur 
asylum seekers to China (Ref B).  Stating that there was 
great concern in the administration and Congress regarding 
the decision, DAS Marciel maintained that the question of 
debt relief for Cambodia had become much more difficult as a 
result, since the deportation raised questions about how 
Cambodia will handle future asylum seekers.  Hor Namhong 
responded by stating that "many factors" were considered 
prior to returning the Uighurs, but in the end, it was 
determined that they were "not refugees because there is no 
war in China."  Additionally, he claimed that the Uighurs' 
passage from China to Cambodia was orchestrated by an 
organization in the U.S. and that if they were allowed to 
stay, more would follow, creating a situation that Cambodia 
is not equipped to handle. 
 
ASEAN and the UN 
---------------- 
 
¶3. (SBU) Stating that the U.S. is committed to building a 
strong relationship with ASEAN, DAS Marciel noted that a 
Resident Representative of the U.S. Ambassador for ASEAN 
Affairs recently arrived in Jakarta to establish a Permanent 
Mission.  Hor Namhong stated that ASEAN is pleased about the 
United State's increased interest in the region and declared 
that there are only two alternatives for the next ASEAN-U.S. 
summit - Vietnam or the United States.  Noting that Asia is 
moving in the right direction with closer cooperation, 
increased trade, and enhanced security, Hor Namhong expressed 
frustration that initiatives such as Australia's Asia Pacific 
Community (APC) result in duplication of existing frameworks 
such as that of APEC, ARF, EAS, and ASEAN.  Hor Namhong 
stated that Cambodia is supportive of U.S. participation in 
existing communities, such as EAS, but indicated the timing 
of the APC is not right nor is its role in the region clear. 
(NOTE:  Hor Namhong's comments on the APC echo similar public 
statements made by Prime Minister Hun Sen in January. END 
NOTE.) 
 
¶4. (SBU) Hor Namhong then appealed to the U.S. for support of 
Cambodia's 2012 bid to become a non-permanent member of the 
UN Security Council in 2013, which has ASEAN's support. 
Given its history of UN involvement, Cambodia is well placed 
to sit on the Council and share knowledge with other members, 
he urged.  DAS Marciel responded that Cambodia's experiences 
 
PHNOM PENH 00000103  002 OF 004 
 
 
would certainly bring an important perspective to UNSC 
deliberations. 
 
Burma Elections in May? 
----------------------- 
 
¶5. (C) Expressing his appreciation of the new U.S. policy on 
Burma, Hor Namhong indicated that Burma is interested in 
working with the United States. and would like to join the 
Lower Mekong Initiative.  He stated that the Burmese FM told 
the Cambodian Ambassador recently that elections will be held 
in May 2010, and that ten political parties, including Aung 
San Suu Kyi's, would be allowed to participate. 
Additionally, the Burmese government has requested that ASEAN 
send election observers.  According to Hor Namhong, during a 
closed-door meeting at the ASEAN summit, member nations urged 
Burmese officials to hold credible and democratic elections. 
Agreeing that the election would indeed be an opportunity for 
progress, DAS Marciel expressed concern that opposition 
leaders are unable to campaign and much work is required 
before a truly free and fair election can be held. 
 
Thailand and Image 
-------------------- 
 
¶6. (C) Given the recent verbal exchanges between Prime 
Minister Hun Sen and Thai Prime Minister Abhist Vejjajiva, 
DAS Marciel expressed concern that in addition to raising 
tensions in the region, such combative public comments are 
hurting both countries' international images and could 
negatively impact tourism and investment.  Hor Namhong stated 
that Cambodia is committed to normalizing relations with 
Thailand, that the "Thaksin issue" should be set aside, and 
focus should instead be on solving the border dispute.  He 
further stated that "Cambodia cannot accept Thailand's claim 
to Cambodian territory, and Thailand won't withdraw the 
claim, so the only way to settle is through legal means." 
(Note:  In recent speeches, PM Hun Sen has indicated a desire 
to take the issue to the ICJ and the UNSC.  End Note.) 
 
Improved Bilateral Relations 
----------------------------- 
 
¶7. (SBU) The FM expressed appreciation for improved 
U.S.-Cambodian relations during the last few years.  He 
specifically thanked the U.S. for support in the areas of 
health, education, demining, economic development, and local 
administration reforms.  Hor Namhong also discussed the work 
of a joint commission which is planning events to commemorate 
the 60th anniversary of diplomatic relations between the U.S. 
and Cambodia to include bilateral agreements, MOUs and 
cultural programs.  In that context, he extended an 
invitation to Secretary of State Clinton to visit Cambodia in 
July, when a series of bilateral agreements could be signed. 
DAS Marciel credited the Cambodian government for increased 
development of the country, thanked Cambodia for its support 
in recent UNGA votes which were appreciated by the United 
States, and congratulated the FM on his initiative to 
position Cambodia as one of the first countries to associate 
itself with the Copenhagen Accord. 
 
Sok An: Up on Preah Vihear, Down on Thai "Invasion" 
--------------------------------------------- ------ 
 
¶8.  (SBU) Deputy Prime Minister and Minister of the Council 
of Ministers Sok An highlighted recent successes with the 
Khmer Rouge Tribunal (septel) and the extension of a Chevron 
agreement to exploit oil and gas resources in the offshore 
Block A in Cambodian territorial waters.  On the 
Cambodian-Vietnamese border demarcation process, Sok An noted 
that it is possible the border line that is being drawn in 
principle according to maps and agreed rules may cut through 
the rice fields of both Cambodians and Vietnamese, who then 
find themselves theoretically on the wrong side of the 
border.  "We are seeking an appropriate solution," he stated. 
 Turning to the Thai border and drawing on a six-inch pile of 
maps, documents, and brochures, Sok An gave a blow-by-blow 
account of the inviolability of Cambodian claims to Preah 
Vihear and the surrounding territory based on the 1962 ICJ 
decision, the irreversibility of the 2008 UNESCO inscription 
of Preah Vihear as a World Heritage Site, and the 
indisputably uncooperative attitudes of the Thai by, among 
other acts of arrogance and slights to Cambodia, invading 
Cambodian sovereign territory on July 15, 2008. 
 
¶9.  (SBU) Sok An reviewed recent Cambodian achievements with 
the Preah Vihear world heritage site development plan, noting 
the construction of new access roads and an East-facing 
 
PHNOM PENH 00000103  003 OF 004 
 
 
staircase up the escarpment to the mountain temple.  An 
eco-village for 300 families who had been re-located was 
already far along and a market at the foot of the temple 
entrance re-designed.  The RGC had already spent $99 million 
in the area of Preah Vihear and around the border, he stated. 
 As an International Coordinating Committee (ICC) is formed 
(Ref A), Cambodia is inviting the United States to join and 
perhaps even co-chair the ICC, he said.  When asked about the 
UNESCO requirement that Thailand be invited to join the Preah 
Vihear ICC, Sok An said that he was "very reluctant" to 
include them.  He noted first that this condition had been 
imposed in early July, before the "Thai invasion" and, 
secondly, the Thai behavior at a recent Angkor Wat ICC -- 
when a delegation packed with Thai MFA members did not want 
to join in the technical preservation discussion but wanted 
to raise political issues -- had shown that the Thai could 
not be trusted to make a positive contribution.  DAS Marciel 
said that the U.S. would look seriously at playing a role in 
the Preah Vihear ICC, but urged the RGC to continue to work 
together with Thailand to ease bilateral tensions. 
 
Anti-Corruption Law 
------------------- 
 
¶10. (SBU) DPM Sok An confirmed that the Council of Ministers 
had recently transmitted to the National Assembly the draft 
Anti-Corruption Law (ACL) for its consideration.  Now that 
the four basic laws related to civil and penal codes and 
procedures were in place, and given an influx of a younger 
cadre of judges capable of understanding these 
inter-dependent laws, Sok An was confident that the 
government was ready to work on an Anti-Corruption Law.  He 
said the RGC would build three pillars of support for a new 
law: education, law enforcement, and mass support.  The RGC 
now realized the importance of mass support because, when a 
case of corruption is brought against individuals, they "do 
everything to fight" it, he said.  He cited Hong Kong and 
Singapore as the best models for Cambodia and noted that the 
former RCAF headquarters compound would be transformed into 
an Anti-Corruption Institute.  Noting continued U.S. support 
for an ACL, and remarking that any effort to tackle the 
difficult issue of corruption must have the strong support of 
the leadership, DAS Marciel noted the United States looked 
forward to its passage. 
 
Opposition Politics 
------------------- 
 
¶11. (SBU) In a meeting with Sam Rainsy Party parliamentarians 
Mu Sochua and Son Chhay and Human Rights Party MP Ou 
Chanrith, DAS Marciel emphasized U.S. commitment to stepping 
up its engagement with the Cambodian government to support 
democracy, good governance, and the rule of law.  While 
initially predicting a dire future for democracy and a 
diminished role for the opposition, the MPs still held out a 
vision for their own role to reform institutions in Cambodia. 
 All three had clear proposals for future activities funded 
by U.S. assistance:  organize more voter forums at the local 
level; assist with reform measures such as implementation of 
an impending Anti-Corruption Law; support fair coverage of 
the opposition in the mainstream media; and strengthen USG 
support for "alternative media" such as RFA and VOA, which 
give the opposition more balanced radio air time.  Son Chhay 
urged the USG to use its position of influence not just to 
"sweet talk" the RGC but to advocate that it take more 
seriously its human rights obligations.  SRP Mu Sochua urged 
the U.S. to review the "quality of assistance" in the 
maternal health area so that aid dollars resulted in the 
desired reduction of maternal mortality. (NOTE:  At about 470 
per 100,000 live births, Cambodia's maternal mortality rate 
is among the highest in the region. END NOTE.)  DAS Marciel 
assured the opposition leaders that, in addition to paying 
attention to issues they raised, the U.S. was concerned about 
the political space in Cambodia and had bluntly raised those 
concerns with the government. 
 
The NGO Perspective 
------------------- 
 
¶12. (SBU) Speculation about a proposed NGO Law dominated DAS 
Marciel's discussion with civil society representatives about 
the overall health of civil society in Cambodia.  One 
representative captured attention with his claim that "there 
is no civil society in Cambodia anymore," predicting that 
Cambodia will soon become like Vietnam, where he believed the 
government allowed NGOs to work on economic and development 
issues, but prohibited advocacy.  Most agreed that while 
there are many NGOs providing services in Cambodia, the other 
 
PHNOM PENH 00000103  004 OF 004 
 
 
elements of civil society, particularly those that advocate 
for government change -- such as unions, journalists, 
opposition parties, and advocacy organizations -- are 
operating in an increasingly challenging environment.  They 
voiced deep concern about a proposed NGO Law, and speculated 
that the new law will require all NGOs currently operating in 
Cambodia to re-register, presenting an opportunity for the 
RGC to disapprove particular organizations it dislikes.  The 
independence and credibility of the judiciary also came under 
attack when DAS Marciel raised the issue of Sam Rainsy's 
conviction for incitement and property destruction. 
Representatives criticized the government for using the 
courts to settle its political scores, with once noting that 
independent of the politics and legal questions involved, he 
believed the court acted "inappropriately" in intervening in 
the situation, and that courts "should not be used as a tool 
for silencing debate." 
 
¶13. (SBU) Civil society representatives were also sharply 
critical of the government's decision to deport 20 Uighurs in 
December. Christophe Peschoux, the Representative of the UN 
Office of the High Commissioner for Human Rights (UNOHCHR), 
stated that mid-level officials in the RGC wanted to and were 
prepared to adhere to Cambodia's commitments under the 1951 
Refugee Convention, but were overruled by officials at the 
highest level at the last minute.  Peschoux noted that the 
past system of refugee protection in Cambodia had been 
effective, albeit with its "ups and downs," but that the 
Uighur deportation "shattered" this perception of efficacy 
and credibility.  He remarked that the Ministry of Interior 
will have to take specific corrective actions in order to 
regain the confidence of civil society.  Other 
representatives expressed disappointment in the role played 
by the UN High Commission for Refugees (UNHCR), and agreed 
that the presence and capability of UNHCR also needed review 
and augmentation. 
 
Cambodian Youth Inquisitive of U.S. Policy 
------------------------------------------ 
 
¶14. (SBU) DAS Marciel summarized U.S. foreign policy in the 
ASEAN region and in Cambodia to a packed auditorium of 400 
students at Pannasastra University.  His remarks prompted a 
slew of questions, with students curious to learn more about 
the U.S. government's decision to enhance its engagement with 
ASEAN and the U.S. role in addressing the challenges of 
climate change.  Several students sought DAS Marciel's candid 
assessment of politics and democracy in Cambodia, revealing a 
sophisticated understanding of the challenges to 
strengthening democratic institutions in Cambodia and a 
proactive style in addressing the issues of the day. 
 
Economic Challenges Ahead 
------------------------- 
 
¶15. (SBU) Economic experts, including country directors from 
the World Bank, IMF, and Asia Development Bank, explained 
that Cambodia's narrowly-based economy contracted by 
approximately 2 percent in 2009 as a result of the global 
economic crisis, declining significantly from the remarkable 
near 10 percent growth of the past decade.  They described 
Cambodia at a crossroads, with the path leading to 
sustainable growth dependent on the leadership's ability to 
make the right decisions on key policies affecting public 
financial management and responsible use of its natural 
resources.  While acknowledging that investment in 
infrastructure development and the agriculture sector is 
necessary to diversify the economic base, they expressed 
concern about the long-term cost of some development 
assistance in these sectors.  In particular, the IMF 
representative stated that the terms of financing for the USD 
1.3 billion in loans provided by China in 2008 and 2009, 
primary for infrastructure development, are unclear, raising 
significant concerns about Cambodia's debt sustainability. 
The experts all agreed that the timing of the closure of the 
IMF office in Cambodia (expected in April of this year) is 
unfortunate, coinciding with significant macroeconomic 
challenges facing the country, such as balance of payments 
and sustainability of the debt, and urged the U.S. to 
encourage the IMF to review its decision. 
 
¶16. DAS Marciel did not have an opportunity to clear this 
cable. 
RODLEY