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R 170619Z APR 06
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 1482
INFO RUEHHM/AMCONSUL HO CHI MINH CITY 0948
RUCNARF/ASEAN REGIONAL FORUM
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RHHMUNA/CDR USPACOM HONOLULU HI
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UNCLAS SECTION 01 OF 03 HANOI 000853 
 
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EBRYAN 
 
E.O. 12958: N/A 
TAGS: OTRA PREL ETRD WTO PHUM KIRF VM
SUBJECT:  HOUSE SPEAKER DENNIS HASTERT MEETS VIETNAMESE PM 
KHAI, PLEDGES TO WORK TO ACHIEVE PNTR 
 
HANOI 00000853  001.2 OF 003 
 
 
¶1. (SBU) Summary: Visiting Speaker of the House Dennis 
Hastert told Prime Minister Phan Van Khai that he is 
committed to working hard to pass Permanent Normalized Trade 
Relations (PNTR) for Vietnam because "it is the right thing 
to do" and because economic development and international 
integration will benefit Vietnam and the global economy. 
Other members of the delegation gave the Prime Minister 
detailed warnings of the concerns that will come up as a 
result of a PNTR vote, including specific human rights and 
religious freedom issues as well as market access concerns. 
The PM praised U.S.-Vietnam cooperation to date and asked 
for more assistance in facilitating Vietnam's accession to 
the WTO and in attracting more technology, investment and 
human resources from the United States to Vietnam.  End 
Summary. 
 
¶2. (U) In the second of two meetings in Hanoi, visiting 
Speaker of the House of Representatives Dennis Hastert (R- 
IL) met Vietnamese Prime Minister Phan Van Khai April 14 at 
Government House.  Khai welcomed the Speaker's visit, 
declaring that both the legislative and executive branches 
of the GVN supported receiving the delegation.  Khai 
expressed his satisfaction with U.S.-Vietnam relations on 
all fronts, highlighting the recent USD 600 million 
investment in Vietnam by Intel and the upcoming visit of 
Microsoft CEO Bill Gates.  He said security, defense and 
intelligence relations have "successfully taken their first 
steps" and thanked the United States for its generous 
assistance in working with Vietnam to combat HIV/AIDS and 
Avian Influenza.  Operations to cooperate in accounting for 
MIA personnel are also positive, Khai declared. 
 
¶3. (SBU) The Speaker recalled his meeting with PM Khai in 
Washington in June 2005 and apologized for having had to 
cancel his planned January 2006 visit.  He agreed with Khai 
that bilateral work on HIV/AIDS and Avian Influenza is an 
example of the good that can come out of U.S.-Vietnam 
cooperation. 
 
PM KHAI'S THREE PRESSING ISSUES 
------------------------------- 
 
¶4. (SBU) PM Khai told the Speaker that Vietnam's efforts to 
carry out "Doi Moi" (renovation) and integration into the 
world economy have achieved "important results" but still 
are not complete.  "If you had visited Hanoi ten years ago, 
it would not be like this," Khai told the Speaker.  "But you 
must remember that Vietnam was heavily damaged by the war 
and is still very poor."  Vietnam's economic achievements 
(and shortcomings) need to be evaluated against a starting 
point that was very low.  With that in mind, PM Khai asked 
the Speaker to consider focusing U.S.-Vietnam cooperation in 
a few key areas: 
 
- WTO accession:  U.S. and Vietnam negotiators are working 
very hard, and Vietnam wants to close negotiations by May. 
The Vietnam side pledges to do its best, but the United 
States should keep in mind that Vietnam's level of 
development is low and Vietnam will never be a real economic 
competitor of the United States.  With that in mind, Khai 
said, he hopes the Speaker and President Bush will be able 
to facilitate the closure of negotiations by May. 
 
- Permanent Normalized Trade Relations (PNTR):  PM Khai said 
he would appreciate it if the Speaker would assist Vietnam 
in achieving PNTR with the United States.  The process of 
achieving PNTR is new for Vietnam, and the GVN will need 
assistance and guidance in working through it. 
 
- The Asia Pacific Economic Cooperation (APEC) and the 
President's visit to Vietnam:  Vietnam attaches great 
importance to the visit of President Bush as part of his 
attendance at APEC in November.  The associated bilateral 
visit will be of historic significance, and so Vietnam looks 
forward to close cooperation between U.S. and Vietnamese 
ambassadors and foreign affairs bureaucracies to achieve a 
successful visit.  Vietnam also hopes the United States will 
work with Vietnam to achieve a successful APEC summit. 
 
THE SPEAKER RESPONDS 
 
HANOI 00000853  002.2 OF 003 
 
 
-------------------- 
 
¶5. (SBU) The Speaker introduced the U.S. delegation, which 
included: 
 
Speaker Hastert (R-IL) 
Rep. Michael Oxley (R-OH) 
Rep. Sherwood Boehlert (R-NY) 
Rep. Frank Lucas (R-OK) 
Rep. Ray LaHood (R-IL) 
Rep. Paul Ryan (R-WI) 
Rep. Randy Neugebauer (R-TX) 
Rep. Dan Boren (D-OK) 
 
The U.S.-Vietnam relationship should be like a good 
marriage, the Speaker said, "open, trusting and 
transparent," and ideally "long and productive."  He said he 
looks forward to opening dialogue on Vietnam's accession to 
the WTO.  The House of Representatives is separate from the 
White House, he explained, and its job is to ratify 
agreements that the White House negotiates.  Under his 
leadership, the U.S. House of Representatives will work 
towards PNTR for Vietnam.  Vietnam should keep in mind that 
every member of the U.S. House of Representatives has a 
constituency to answer to, and each member has influence. 
Members have important issues relevant to their constituents 
that will come up as part of the PNTR debate.  With that in 
mind, it is important to complete PNTR as fast as possible. 
That will depend on the GVN and the USG concluding 
negotiations, which the Speaker also hopes will happen by 
May.  The faster negotiations are concluded, the faster the 
deal can be moved through the political process, which can 
be complicated, especially in an election year.  The sooner 
that deal can be considered, the better, because the closer 
the election gets, the harder it will be for PNTR to avoid 
being "snaggled in the tentacles of politics." 
 
¶6. (SBU) In terms of practical steps to achieve PNTR, the 
Speaker advised PM Khai that the concerns of constituents 
will be paramount.  In the Speaker's district, Caterpillar, 
John Deere, Boeing and Motorola are all interested in 
expanded trade and investment with Vietnam.  Each member 
present in the delegation has similar interests to 
represent, he said.  The Speaker conveyed President Bush's 
regards, and said that the President looks forward to his 
visit to Vietnam. 
 
REP. LAHOOD: TARIFFS MATTER 
--------------------------- 
 
¶7. (SBU) Representative LaHood noted that in his 12 years in 
Congress, he has seen many trade agreements passed, and they 
are always difficult.  The last trade bill, authorizing the 
Central American Free Trade Area, passed by only one vote. 
More and more members are having difficulty with trade 
votes, he explained.  The main problem is tariffs; on 
engines, manufactured goods, insurance products, financial 
services, etc., they represent a huge issue for American 
companies.  If Vietnam can lower tariffs on American goods, 
then it will be possible to persuade members of Congress to 
vote for the legislation. 
 
REP. LUCAS: WE SHOULD BE PARTNERS IN AGRICULTURE REFORM 
--------------------------------------------- ---------- 
 
¶8. (SBU) Rep. Lucas noted that in the State of Oklahoma, 
energy and agriculture are very important issues.  In his 
view, WTO members should be allies in the modernization and 
development of agriculture, especially in resisting those 
such as the EU who want to slow the development of 
agriculture.  Rep. Lucas said he personally hopes that 
bilateral cooperation continues, and that important 
regulations are implemented in Vietnam. 
 
REP. BOEHLERT: HUMAN RIGHTS WILL BE IMPORTANT TO PNTR 
--------------------------------------------- --------- 
 
¶9. (SBU) Rep. Boehlert expressed his surprise at the level 
of development and dynamism he had witnessed thus far in 
Vietnam.  He too believes that passing a trade bill will be 
 
HANOI 00000853  003.2 OF 003 
 
 
difficult this year because of the election.  Rep. Boehlert 
noted that commercial considerations are less important in 
his district, but that with 15 colleges and universities, 
political issues are significant.  "I can go back to my 
constituents and tell them about economic democracy in 
Vietnam and how the Declaration of Independence here mirrors 
our own," Boehlert warned, "but they will immediately point 
out that in the United States the Constitution and 
particularly the Bill of Rights followed the Declaration of 
Independence and guaranteed the political freedom of 
citizens."  This issue is particularly important in the 
United States, and it will be vital for Vietnam to show 
progress in that areas as well as economic reform.  "To vote 
for PNTR for Vietnam, I will need to be able to show my 
constituents that Vietnam has progressed on human rights, 
religious freedom and freedom of the press, all rights and 
values that Americans cherish." 
 
THE SPEAKER COMMITS TO TRY TO PASS PNTR 
--------------------------------------- 
 
¶10. (SBU) The Speaker pointed out that there is a bigger 
picture, which is Vietnam's taking advantage of its low 
labor costs relative to the rest of the world to drive 
economic development, much as Japan did in the 1950s, Taiwan 
in the 1960s, Thailand in the 1970s and China in the 1980s. 
This leads laborers and others in Vietnam to achieve more 
education, better health care and a higher standard of 
living.  For this reason, the Speaker said, "I will commit 
to working hard to pass PNTR, so that our legacy will be a 
better world to pass on to our children and grandchildren." 
 
PM KHAI'S CONCLUSION 
-------------------- 
 
¶11. (SBU) PM Khai said he particularly likes the idea of the 
U.S.-Vietnam relationship as a marriage rather than a 
competition.  Vietnam sees the United States as having a 
special role and position in the world.  Vietnam wants a 
stable and long-lasting partnership with the United States 
because of this.  To do this, it is vital that both the 
United States and Vietnam work to implement the words in the 
joint statement "signed" by President Bush and PM Khai 
during Khai's June 2005 visit to Washington.  If WTO 
negotiations can be concluded in May, and PNTR granted in 
June, "another important milestone in our relationship will 
have been reached."  Vietnam is eager to attract more U.S. 
investment, more U.S. technology and more U.S. managerial 
expertise to allow Vietnam to increase its competitiveness. 
PM Khai thanked the Speaker for his commitment on PNTR, and 
said he hopes to see WTO negotiations closed and PNTR 
finished before Congress' summer vacation. 
 
¶12. (U) Speaker Hastert's staff members have cleared this 
message. 
 
MARINE