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

UNCLAS SECTION 01 OF 04 HANOI 000975 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV, EAP/CM 
 
E.O. 12958: N/A 
TAGS: PREL PINR CH TW VM CVR
SUBJECT:  NONG DUC MANH'S "WORKING VISIT" TO THE PRC: 
--          THE VIEW FROM VIETNAM 
 
REF: A.  Hanoi 956       B.  01 Hanoi 3294 
 
     ¶C.  02 Hanoi 2417   D.  02 Hanoi 608 
     ¶E.  02 Hanoi 2309 
 
¶1.  (SBU) SUMMARY.  Nong Duc Manh, Communist Party of 
Vietnam (CPV) General Secretary (GS), visited the PRC April 
7 - 11.  This was his second visit to the PRC since assuming 
these responsibilities in April 2001.  GS Manh was 
apparently the first foreign leader to meet with the PRC's 
new leadership.  The visit was described as a "working 
visit" and both sides used it especially to give a push to 
the economic relationship.  While Manh was visiting the PRC, 
Prime Minister Phan Van Khai was meeting with his 
counterpart in Japan (ref a).  Officials discounted the 
significance of the timing, however.  The visit, the latest 
in the steady flow of high-level exchanges characterizing 
the bilateral relationship, broke no new ground, but 
"reaffirmed" earlier agreements, including the Land Border 
treaty and Tonkin Gulf agreement.  The two sides reportedly 
made some progress on outstanding fisheries issues, but 
there was disappointment on the Vietnamese side on the lack 
of progress on the land border demarcation.  Reportedly, 
there was some divergence regarding Iraq.  END SUMMARY. 
 
¶2.  (U)  According to press reports, a number of high-level 
CPV and GVN officials accompanied Manh on his visit, 
including: 
--Deputy Prime Minister (and former Minister of Trade) Vu 
Khoan (also head of the CPV Politburo Secretariat); 
--CPV Central Committee member and director of the Central 
Committee's External Relations Department Nguyen Van Son; 
--CPV Central Committee member and Director of the CPV 
Central Committee office Ngo Van Du; 
--CPV Central Committee member and Director of the CPV 
Central Committee Office Ho Tien Nghi; 
--Ministry of Foreign Affairs Vice Minister Le Van Bang; 
and, 
--Vietnam's Ambassador to the PRC Tran Van Luat. 
(Note:  Khoan, Son, Du, and Nghi also accompanied GS Manh on 
his previous visit to the PRC - ref b - End Note.) 
 
----------------- 
A "WORKING VISIT" 
----------------- 
 
¶3.  (SBU)  According to the PRC embassy, the main reasons 
for GS Manh's visit were to: (1) meet the new PRC 
leadership; (2) "learn from the experience" of the PRC's 
16th Party Congress; and, (3) exchange views on bilateral 
cooperation and various regional and international issues. 
Nguyen Vinh Quang, Acting Director General of the Department 
for China and Northeast Asia of the CPV Central Committee's 
Commission for External Affairs, told poloff on April 16 
that, while GS Manh's trip was considered a "working visit" 
rather than an "official friendship visit," this did not 
make much difference in the substance of the meetings. 
Quang said that in a "working visit" fewer officials 
accompanied Manh and there were less formal protocol 
arrangements.  Quang said that in addition to his party 
counterpart Hu Jintao, Manh met with other key PRC leaders, 
including Wu Bangguo, Chairman of the Standing Committee of 
the National People's Congress; Wen Jiabao, CCP Politburo 
standing committee member and Premier; Jiang Zemin, Chairman 
of the Central Military Commission and former CCP General 
Secretary; Vice President Zeng Qinghong; and Chairman of 
 
SIPDIS 
China's People's Consultative Political Conference Jia 
Qinglin.  There were apparently no public events, but GS 
Manh's visit did include stops in Anhui and Yunnan 
provinces, where he met with local leaders and had a chance 
to see the impact of the PRC's economic reforms, Quang 
added. 
 
---------------------------------- 
STEADY FLOW OF SENIOR LEVEL VISITS 
---------------------------------- 
 
¶4.  (U)  GS Manh's visit was the latest in the steady flow 
of bilateral exchanges at the highest levels.  Then-Vice 
President Hu Jintao attended the CPV's Ninth Party Congress 
in April 2001; in September 2001, then-Chairman of the 
Standing Committee of the PRC's National People's Congress 
Li Peng visited; and then-head of state and party Jiang 
Zemin visited in February 2002.  GS Manh visited Beijing 
previously in December 2001.  Prior to that visit, President 
Tran Duc Luong had visited in December 2000 and Prime 
Minister Phan Van Khai in September 2000.  In addition to 
these high-level visits, there are literally dozens of other 
official exchanges annually at the ministerial and expert 
level. 
 
------ 
TIMING 
------ 
 
¶5.  (SBU)  Although two of Vietnam's three major leaders 
were out of the country simultaneously, officials downplayed 
any significance of this timing.  Tran Quang Minh, Assistant 
Director of the Japan Studies Center of Vietnam's National 
Center for Social Sciences and Humanities, said that "this 
was not the first time" that Vietnam's top leadership had 
been out of the country simultaneously (ref a).  Separately, 
the CPV's Quang said that Manh's visit had been planned 
"well in advance" and that the timing "depended more on the 
hosts."  Quang also said it was "normal" for GS Manh to 
visit the new leadership "promptly" because his visit 
reaffirmed the "importance that both countries and parties 
hold for each other."  If GS Manh had not gone now, he could 
not have gone for "a couple months," Quang claimed. 
 
--------- 
ECONOMICS 
--------- 
 
¶6.  (SBU)  As on previous visits, the leaders lamented that 
the economic relationship, while extensive, "has not reached 
its full potential."  According to press reports, two-way 
trade has grown steadily the past few years.  In 2000, two- 
way trade was USD 2.4 billion.  By 2002, it had reached USD 
3.65 billion.  The oft-stated goal is to reach USD five 
billion by 2005. (Note: These goals are perhaps less 
important than the exact composition in trade; Vietnam's 
perennial fear is that virtually all "two-way" trade is and 
will increasingly really be mostly PRC exports to Vietnam. 
end note)  PRC exports include motorbikes, machinery, 
chemical fertilizers, and steel.  Vietnam's exports include 
crude oil, rubber, vegetable oil, timber, iron ore, and 
plastics.  The PRC is also the 17th largest foreign investor 
in Vietnam (at least on paper), with 205 projects 
capitalized at about USD 385 million.  The PRC is Vietnam's 
largest source of tourists - in 2002, over 723,000 Chinese 
tourists visited Vietnam.  (Note: It remains unclear how the 
SARS outbreak, enhanced GVN screening of visitors, and 
potential new limitations on PRC visitors due to SARS will 
affect 2003 levels.  End note) 
 
¶7.  (SBU)  Vice Foreign Minister Bang told Ambassador on 
April 18 that the two sides had also discussed large PRC- 
funded projects, including upgrading the Thai Nguyen steel 
complex and the Sinh Quyen copper mine, along with other 
projects related to urea and bauxite.  (Note: The PRC is 
also involved in the Cao Ngan hydroelectric plant in Dak Lak 
province in the Central Highlands.  End note)  He 
highlighted that the PRC had formally agreed to forgive a 
war-era debt of approximately USD 54.3 million as well as to 
provide about USD six million for a Chinese Cultural Center 
in Hanoi. 
 
-------------------- 
LAND AND SEA BORDERS 
-------------------- 
 
¶8.  (SBU)  As during GS Manh's previous trip to the PRC, 
(ref b) both sides reaffirmed their commitment to the land 
border demarcation process as well as to resolving the 
"technical issues" on the Tonkin Gulf and Fisheries 
agreement.  Regarding the land border, Ho Xuan Son, MFA Asia 
I Director General, told the resident diplomatic community 
on April 16 that up to now, "only" about 25 - 30 markers 
have been planted, although work was ongoing.  While 
praising the PRC's cooperation, Son said that the GVN would 
like to see a faster pace.  Separately, Tran Viet Hung, 
Director of Vietnam - China Border Department of the MFA 
Border Commission, told poloff on April 18 that, while both 
sides had expressed disappointment at the progress thus far, 
they understood that land demarcation was "complicated" due 
to the inexperience of the border demarcation teams and the 
difficult terrain.  Hung said that both sides had pledged 
"to do their best" to complete the demarcation process 
(begun in September 2002) by the "end of 2005."  (Comment: 
Considering that the demarcation process will require the 
planting of approximately 1,500 more border markers, 
finishing by 2005 will be a major challenge.  End Comment.) 
 
¶9.  (SBU)  Regarding the Tonkin Gulf, VFM Bang told the 
Ambassador that differences had "narrowed" during Manh's 
visit on such issues as maritime demarcation and the number, 
tonnage, and horsepower of fishing vessels.  Both sides 
agreed to continue regular meetings to resolve the remaining 
"technical issues."  Separately, the Border Commission's 
Hung confirmed that the Vietnamese side remained concerned 
over the size as well as the number of Chinese fishing 
vessels.  Hung noted that the Chinese vessels "tend to be 
much larger than ours." 
 
---------------------- 
FOREIGN POLICY OUTLOOK 
---------------------- 
 
¶10.  (SBU)  The CPV's Quang said that Manh and the PRC 
leadership had exchanged views on various regional and 
international issues.  Although Iraq came up, it was not a 
major focus.  He claimed that the PRC and Vietnam "were 
quite close" on the Iraq issue and that the PRC leadership 
told their guest that they hoped the coalition would put as 
much energy into reconstructing Iraq as it did in the 
military campaign.  Separately, Dr. Do Tien Sam, Director of 
the Institute for China Studies of the National Center for 
Social Sciences and Humanities, told poloff that there was 
less than "total agreement" about Iraq.  Dr. Sam said that 
in the past few years, the PRC had demonstrated a somewhat 
"softer" foreign policy because of its priority in 
developing relations with "more important countries, 
including the U.S."  Dr. Sam also claimed that it was 
"natural" for Vietnam and the PRC to have some differences 
regarding Iraq because of Vietnam's stronger view of Iraq as 
a "traditional" friend.  On the other hand, the two sides 
"were not far apart" on Iraq; both shared the view that the 
crisis should have been resolved peacefully within the UN 
framework, with "respect for Iraq's territorial 
sovereignty," he added. 
 
¶12.  (SBU)  Concerning North Korea, Quang said that the PRC 
and Vietnam have "virtually the same opinion."  Both sides 
said that the crisis should be resolved "via peaceful 
negotiations" and agreed that the Korean Peninsula should be 
"nuclear free."  There was no discussion as to what, if 
anything, Vietnam might contribute to resolving the crisis, 
he added.  Quang predicted that the PRC would have 
"significant influence" in future Korean Peninsula 
discussions. 
 
¶13.  (SBU)  VFM Bang separately told the Ambassador that the 
PRC leaders had some "nice things" to say about the United 
States.  VFM Bang noted that GS Manh was relieved to hear 
them, because "it is better to have two elephants dancing 
than two elephants fighting." 
 
------- 
COMMENT 
------- 
 
¶14.  (SBU)  The Manh visit was essentially an exercise to 
reaffirm the strong bilateral relationship between two of 
the few remaining Communist states.  Official denials 
notwithstanding, the fact that GS Manh traveled to Beijing 
so promptly to meet the new leadership highlights that the 
relationship remains far from equal, with the Vietnamese 
caring much more about events in the PRC than the other way 
around.  Balance remains important in Vietnam's foreign 
relations, as indicated by the "non-significant" timing vis- 
E-vis PM Khai's Japan visit.  Similarly, GS Manh's last 
visit to the PRC came on the heels of the passage of the US- 
Vietnam Bilateral Trade Agreement, as the PRC likely sought 
to ensure the PRC that relations with its neighbor were just 
as important as its ties with the U.S. 
BURGHARDT