This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 03 HANOI 000694 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV; EAP/RSP; INL/AAE 
 
E.O. 12958: N/A 
TAGS: PREL PTER PGOV SNAR ETRD MARR BM VM
SUBJECT:  THAN SHWE VISIT: CLOSE BUT NOT "TRADITIONAL" FRIENDS 
 
REF:  02 Hanoi 1279 
 
¶1.  (SBU)  SUMMARY.  The visit by Than Shwe, Senior General 
and Chairman of Burma's State Peace and Development Council 
(SPDC), focused on trying to enhance the modest economic 
relationship of these two fellow ASEAN states.  Narcotics 
were apparently not on the agenda; however, the two sides 
pledged cooperation in tourism, health, and education as 
well as reaffirmed cooperation in other areas such as 
military-to-military ties; counterterrorism; and crime.  END 
SUMMARY. 
 
¶2.  (U)  Than Shwe visited Vietnam from March 14-16 at the 
invitation of Vietnam's President Tran Duc Luong.  This was 
his third visit to Vietnam, having previously come in 1995 
and 1998 (the latter for the Sixth ASEAN Summit).  President 
Luong visited Burma in May 2002 (reftel).  Other prior GVN 
visits included:  then-Communist Party of Vietnam General 
Secretary Do Muoi (1997); then-Deputy Prime Minister and 
 
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Foreign Minister Nguyen Manh Cam (1998); and, Prime Minister 
Phan Van Khai (2000). 
 
¶3.  (U)  According to media accounts, Than Shwe's entourage 
consisted of a variety of officials, including: 
--SPDC Secretary and Lieutenant General Soe Win; 
--Chairman of the Peace and Development Council (PDC) 
Mandalay Division and Commander of the Central Military 
Command Major General Ye Myint; 
--Chairman of the Sagaing Division of the PDC and Commander 
of the Northwest Military Zone Major General Soe Naing; 
--Agriculture and Irrigation Minister Major General Nyunt 
Tin; 
--Industry Minister U Aung Thaung; 
--Commerce Minister Brigadier General Pyi Sone; 
--Foreign Minister U Win Aung; 
--Livestock Breeding and Fisheries Minister Brigadier 
General Maung Maung Thein; 
--Energy Minister Brigadier General Lun Thi; 
--Health Minister Professor Dr. Kyaw Myint; 
--Military Assistant to the SPDC Chairman, Major General Ne 
Win; 
--Director General of the SPDC Office, Lieutenant Colonel Pe 
Nyein; and, 
--an unspecified number of "entrepreneurs." 
 
¶4.  (U)  Than Shwe's activities followed a typical pattern 
for ceremonial visits:  mutual compliments about each 
country's accomplishments ("President Luong renewed 
Vietnam's support to the Myanmar Government's efforts to 
maintain territorial integrity and national reconciliation 
and unity. . ."); meetings with Prime Minister Khai, 
President Luong, and National Assembly Chairman Nguyen Van 
An; a courtesy call with Communist Party of Vietnam General 
Secretary Nong Duc Manh; a banquet; a wreath laying ceremony 
 
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at the Ho Chi Minh Mausoleum; and a joint communiqu summing 
up the visit. 
 
¶5.  (SBU)  The Burma Embassy and the Ministry of Foreign 
Affairs Asia II Department declined our requests for 
briefings on the visit.  However, Luan Thuy Duong, Deputy 
Director of the Department for Southeast Asian Studies at 
the MFA's Institute of International Relations (IIR), 
described the Vietnam - Burma relationship to poloff on 
March 18 as "excellent."  Duong noted that Burma had been 
one of the first countries to establish relations with 
Vietnam following the end of the Vietnam - US War.  Burma 
opened its embassy in Hanoi in May 1975, less than a month 
after reunification.  Vietnam's leaders also "highly valued" 
Burma's "spiritual support" during the war, she claimed. 
Duong said that the relationship as "not quite traditional, 
but very close."  (Note:  Vietnam reserves the term 
"traditional" for its oldest friends, such as Cuba and 
Russia.  End note.)  Duong noted that, while Than Shwe was 
able to fulfill his itinerary in Hanoi, he appeared "rather 
old and frail." 
 
----------------------- 
ECONOMICS:  MOSTLY TALK 
----------------------- 
 
¶6.  (SBU)  Reports in Vietnam's state controlled media 
emphasized the economic focus of the visit, trumpeting that 
two-way trade had increased 300 percent between 1998 and 
¶2002.  However, the respective figures were only USD four 
million and USD 12 million.  The GVN's stated goal is to 
reach a two-way trade level of USD 30 million by 2005.  The 
IIR's Duong admitted that even this modest figure is 
"probably not feasible."  Duong noted that Burma's economy 
is "quite weak, with difficult structural problems."  In 
addition, "payment mechanisms" need to be developed; Duong 
predicted that the two sides "must look more at barter 
trading."  Aside from some gems and timber, Burma "does not 
have much" to offer Vietnam, she added.  Without citing 
specifics, Duong predicted that the bilateral focus would 
remain on economics during 2003, including exchanges between 
the two Ministries of Trade. 
 
-------------------- 
MILITARY-TO-MILITARY 
-------------------- 
 
¶7.  (SBU)  Duong noted that the leaders had discussed 
military-to-military cooperation, which she characterized as 
"quite smooth."  Duong admitted that while she was not 
knowledgeable about the details of the military-to-military 
activity, but noted that there are "regular meetings" 
between senior military officers as well as some officer 
exchanges.  Duong predicted additional senior level military 
visits from both sides during 2003. 
 
-------------------------- 
OTHER AREAS OF COOPERATION 
-------------------------- 
 
¶8.  (SBU)  Similar to exchanges during President Luong's 
visit last May (reftel), both sides pledged further 
cooperation in a number of areas, such as tourism, 
education, culture, forestry, and agriculture.  The IIR's 
Duong said that, while the relevant ministers had discussed 
ways to promote progress in these areas, "there are not yet 
very many concrete programs."  Specifically relating to 
tourism, Duong opined that Vietnamese and Burmese companies 
could "join forces" to promote tour packages for foreigners 
to visit both countries. 
 
------------- 
ASEAN CONTEXT 
------------- 
 
¶9.  (SBU)  According to the media, President Luong told his 
guests that Vietnam and Burma should view the visit as an 
opportunity to improve not only the bilateral relationship, 
but also cooperation within the ASEAN framework.  Duong said 
that this was very much in line with the GVN's desire to 
increase cooperation among the "new ASEAN" members - 
Cambodia, Laos, Burma, and Vietnam -- both on a bilateral 
and multilateral basis, which she labeled a "parallel 
approach."  Duong claimed that the "lower tier" members 
feared being "disadvantaged" economically by the wealthier 
members as they move into free trade arrangements.  Duong 
commented that Than Shwe's visit could be viewed as an 
attempt by Vietnam to solidify bilateral relations while at 
the same time strengthening the ASEAN subcontext. 
 
---------------------------- 
DRUG ISSUE NOT ON THE AGENDA 
---------------------------- 
 
¶10.  (SBU)  Although Vietnam is a transit point for Golden 
Triangle heroin, narcotics were also not raised during the 
visit, according to Duong.  This was probably because the 
two sides had agreed that the visit's focus should be mostly 
on trade and economics issues, she opined.  Duong also noted 
that Vietnam and Burma have an existing MOU for drug 
cooperation and that they have agreed in the past to 
cooperate both through this agreement as well as within the 
ASEAN framework.  Duong added that both sides discuss drugs 
"on an ongoing basis" during other "appropriate" official 
visits. 
 
-------------------------- 
STANDING AGAINST TERRORISM 
-------------------------- 
 
¶11.  (SBU)  Duong highlighted that the leaders had agreed on 
the need to continue to cooperate against terrorism. 
According to the joint communiqu, Vietnam and Burma will 
"strengthen information exchanges" relating to terrorism. 
While the joint communiqu also stated that both sides 
intend to sign an anti-crime agreement, Duong declined to 
predict when this might occur. 
 
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COMMENT 
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¶12.  (U)  While Vietnam and Burma are clearly interested in 
moving forward on the bilateral relationship, these ties are 
likely to remain subsumed in the more important ASEAN 
context.  Despite considerable public cheerleading, a 
significant increase in trade is not realistic.  In both the 
Luong visit last May and this visit, it is encouraging to 
see a strong stand against terrorism, in line with recent 
trends in ASEAN.  It is notable, also, that the leaders made 
no public reference to Iraq. 
BURGHARDT 
T