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INFO RUEHHM/AMCONSUL HO CHI MINH CITY 0951
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UNCLAS SECTION 01 OF 06 HANOI 000862 
 
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STATE FOR H, E, EAP/MLS, EAP/RSP.  EAP PLEASE PASS TO USTR 
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E.O. 12958: N/A 
TAGS: OTRA PREL PHUM KIRF ECON ETRD WTO VM SUBJECT
SUBJECT: SPEAKER OF THE HOUSE DELEGATION MEETS NATIONAL ASSEMBLY 
CHAIRMAN NGUYEN VAN AN 
 
HANOI 00000862  001.2 OF 006 
 
 
¶1. (SBU) Summary: Visiting Speaker of the House of 
Representatives Dennis Hastert delivered a basic message in 
Hanoi:  we support, in principle, Vietnam's economic 
development and openness and will work hard to pass 
Permanent Normalized Trade Relations for Vietnam because 
international economic integration and economic development 
are good for mankind and passing PNTR is the right thing to 
do.  His delegation strongly cautioned the Vietnamese that 
trade votes are difficult at any time, but especially in an 
election year, and that Vietnam's human rights record will 
be an important issue in the debate.  National Assembly 
Chairman Nguyen Van An highlighted the historical linkages 
between the United States and Vietnam and described 
Vietnam's economic development to date.  He was obviously 
pleased to hear Speaker Hastert commit to trying to pass 
PNTR; it is less clear if he understood the other delegation 
members' warnings that it might not succeed.  Describing 
himself as a Buddhist, An declared that religious activity 
within Vietnam is robust.  End Summary. 
 
¶2. (SBU) Speaker of the House Dennis Hastert had meetings 
with Vietnam's leadership April 14.  In his first meeting 
with National Assembly Chairman Nguyen Van An, An noted that 
he had just come from opening the 15th (and last) Plenum of 
the Central Committee of the Communist Party before the 
beginning of the 10th National Party Congress.  After this 
unsubtle reminder that the Speaker's visit is coming at a 
sensitive time for Vietnam, An extended a "warm welcome to 
the first visit of the Speaker of the U.S. House of 
Representatives to Vietnam."  Vietnam highly values this 
significant and important visit because it marks an 
important milestone in the relationship between the U.S. 
Congress and the Vietnamese National Assembly.  It was 
regrettable that the United States and Vietnam could not 
hold such a meeting sixty years ago when then-President Ho 
Chi Minh had extended an invitation and letter to President 
Harry Truman stating that Vietnam wanted "complete 
independence and comprehensive cooperation with the United 
States."  That goal has not changed since 1946, An stressed. 
He pointed out the historical linkages between the United 
States and Vietnam, using the similarities in language 
between the two countries' declarations of independence as 
an example. 
 
¶3. (SBU) Speaker Hastert thanked An for his gracious 
welcome, and said that his delegation sees this opportunity 
to re-establish mutual understanding and communication as 
very important.  It is unfortunate that the conversations of 
today did not happen in 1946, and as a result many people 
suffered.  He introduced the 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) 
 
U.S. PRIORITIES: HUMAN RIGHTS, POW/MIA, TRADE, PNTR 
--------------------------------------------- ------ 
 
¶4. (SBU) Speaker Hastert told Chairman An that the issues of 
interest to the delegation include trade, permanent 
normalized trade relations (PNTR) and related issues such as 
human rights and fullest possible accounting of those 
missing from the war.  Trade votes are never easy in the 
U.S. Congress, Speaker Hastert cautioned, because every 
member with an issue or specific concern will have to raise 
it in order to be responsive to his or her constituents. 
Any bill requires a majority to pass, and that means 
satisfying the concerns of a majority of members, which can 
be difficult.  In the long run, the work to satisfy the 
concerns of as many constituencies as possible is a good 
thing.  The greatest good is to bring two sides together, to 
have dialogue, to exchange trade and bring people closer, 
the Speaker said. 
 
AN: WE MISSED A CHANCE 60 YEARS AGO 
 
HANOI 00000862  002.2 OF 006 
 
 
----------------------------------- 
 
¶5. (U) "The doors have been open since 1945 for this 
conversation," An said.  "The people of Vietnam strongly 
desire independence and freedom; our revolution in 1945 was 
like yours in 1776; both of our countries paid a dear price 
for freedom."  Vietnam's priority today is for cooperation 
in economic development, An continued, in order to bring 
about a better life for the Vietnamese people.  The United 
States and Vietnam have missed opportunities to cooperate in 
the past, "but better late than never, for world peace, 
development and security." 
 
¶6. (SBU) An presented the U.S. delegation with a copy of the 
Vietnamese Declaration of Independence of 1945 to 
demonstrate the similarity with the U.S. Declaration of 
Independence.  He also supplied a cartoon from 1945 
depicting the United States Army as "our friends."  The 
cartoon's eight panels served as a kind of public service 
announcement to enlist the assistance of the Vietnamese 
people in rescuing and protecting downed American pilots and 
contacting local Viet Minh guerrillas to escort them to 
Chinese territory for repatriation back to the United States 
during World War II.  An also showed the delegation photos 
of Viet Minh guerrillas in 1945 receiving training from 
allied forces, including the United States.  The Declaration 
of Independence, the cartoon and the photo of the joint 
training are all evidence to support his claims that Vietnam 
was ready in 1945 to cooperate closely with the United 
States, An said. 
 
AN: ECONOMIC OVERVIEW, NATIONAL ASSEMBLY ROLE 
--------------------------------------------- 
 
¶7. (SBU) An gave a brief overview of Vietnam's current 
situation.  The "Doi Moi" (renovation) period of economic 
reform began in 1986 with a shift from a centrally planned 
economy to a market-based economy along socialist lines. 
The phrase "along socialist lines" means that the GVN pays 
attention to social equity.  Vietnam wants fast and 
sustainable development, but without disadvantaging anyone. 
Central planning did not result in the production of enough 
food, he acknowledged.  Now after the shift to a market 
economy, Vietnam has food security and enough to eat as well 
as enough to export to other countries, and has become a top 
exporter of rice.  In the process, Vietnam has reduced the 
number of poor households by half and GDP growth continues 
to increase at an average of 7.5 percent in recent years, 
and with a target of over eight percent in the next five 
years.  Unfortunately, competitiveness is a problem for the 
Vietnamese economy, as is efficiency.  The rate of return on 
Vietnam's investments is not high.  Vietnam is working hard 
to make the development process sustainable and make the 
economy operate more efficiently, a process that will make 
Vietnam more competitive, especially after it enters the 
WTO. 
 
¶8. (SBU) The National Assembly's role in Vietnamese politics 
has grown in recent years, An said.  Under the Constitution 
and the law, the National Assembly should be the highest 
body of authority in Vietnam.  The National Assembly's 
activities have become more and more democratic and 
observant of the Constitution and the law in recent years. 
Making and amending domestic laws are key functions of the 
National Assembly, especially as Vietnam revamps its legal 
code for entry into the WTO.  Laws and regulations and the 
National Assembly's future responsibilities are not yet 
completely defined, he admitted.  The National Assembly will 
strive to overcome that and meet its governing 
responsibilities. 
 
AN: VIETNAMESE FOREIGN POLICY 
----------------------------- 
 
¶9. (SBU) With regard to foreign policy, Vietnam wants to put 
the past behind it and look to the future, especially with 
the United States.  Vietnam's policy is to be a friend and 
reliable partner with all countries, in compliance with the 
UN charter and international law, An explained.  In the 
development of relations with all the countries of the 
 
HANOI 00000862  003.2 OF 006 
 
 
world, prioritization is necessary, noting that Vietnam's 
top priority is its neighbors, while the second priority is 
the "major powers and centers in the world," such as the 
United States, the EU, Japan, India, China and Russia. 
Political relations with the United States have been going 
very well, he judged, and Vietnam is happy with the exchange 
of high-level visits, including the Speaker's visit.  The 
next major bilateral event will be the visit of President 
Bush to Vietnam in conjunction with APEC 2006, which will be 
"another important milestone." 
 
¶10. (SBU) Vietnam is pleased with the success of the 
Bilateral Trade Agreement and the fact that the United 
States has become Vietnam's largest export market, though it 
is unfortunate that U.S. investment is not as high as U.S. 
trade.  The United States is Vietnam's tenth largest 
investor, An said, though he acknowledged that the amount of 
investment would be triple if third-country subsidiaries of 
U.S. firms were included in the investment statistics. 
There should be more cooperation in the areas of science and 
technology, education, security and defense and culture, as 
well as more legislative branch delegations in both 
directions.  The delegation should be sensitive to the fact 
that Vietnam has had thousands of years under feudal 
domination by China, hundreds of years under colonialism, 
decades of war and only a few years of peace and stability 
to overcome the past and make a better life for Vietnamese 
people, An urged. 
 
HASTERT: VIETNAM'S EMERGENCE GOOD FOR EVERYONE 
--------------------------------------------- - 
 
¶11. (SBU) Speaker Hastert took An's comment regarding 
Vietnam's past "seriously," noting that history has given 
Vietnam very little time to pursue economic and educational 
development because so much time and effort was devoted to 
defense.  The United States sees better relations with 
Vietnam developing because the Vietnamese people are 
emerging into the international community and wanting better 
health care, education and economic opportunity.  To meet 
this need and cooperate, the United States and Vietnam must 
build a relationship of trust and transparency.  As that 
relationship develops, friendship follows.  All of the major 
countries of the world have changed over the years, the 
Speaker observed.  The United States has been called on to 
help other countries maintain their freedom; the EU has 
become a unified group; China has opened its doors; India 
has changed from a nonaligned country to an eager 
participant in the world economy; and, Japan has gone from 
being a major military threat to a huge economic driving 
force in global economic development. 
 
¶12. (SBU) The large sign welcoming visitors to "Hanoi, City 
of Peace" has a strong message, the Speaker continued.  When 
people are at peace internally and externally, many 
opportunities arise.  Vietnam can take advantage of stable 
(and equal) commodity and capital costs globally to use its 
advantage in lower-cost labor to make economic gains.  This 
same philosophy worked for Japan in the 1950s, for Taiwan in 
the 1960s, for Thailand in the 1970s and for China in the 
1980s, he said.  Countries that follow this path develop 
economically, they open up and they change from within.  The 
people become better educated, they have better health care, 
they have a greater understanding of world events and a 
higher standard of living.  "When we as leaders make this 
happen," the Speaker said, "we build a much richer legacy to 
pass on to our children and grandchildren, all based on the 
actions we take now." 
 
HASTERT: PRIORITY ISSUES FOR PNTR 
--------------------------------- 
 
¶13. (SBU) The Speaker welcomed Chairman An's suggestion of 
continued and expanded parliamentary exchanges and 
recommended setting up ways to move that forward right away. 
He promised An that he would "work to pass PNTR, even though 
trade legislation is often the most difficult to pass." 
Every member and every constituent with a specific Vietnam- 
related issue will bring it forward during the PNTR vote, 
the Speaker warned.  That includes trade issues, such as 
 
HANOI 00000862  004.2 OF 006 
 
 
market access for corn and soybeans grown in Illinois, for 
example, as well as non-trade issues like human rights and 
POW/MIA accounting.  It is a good process, with facts 
brought out and discussed, but it is also difficult.  He 
asked An to "give us better ideas and a better understanding 
so we can carry the debate forward." 
 
OXLEY: TELL US MORE ABOUT VIETNAM'S ECONOMIC REFORMS 
--------------------------------------------- ------- 
 
¶14. (SBU) Representative Oxley noted that when he was in 
Bangkok 13 years earlier, the American Chamber of Commerce 
(AMCHAM) discussion at the time concerned whether the United 
States was ready for normal relations with Vietnam.  It is 
hard to believe, he said, that only 13 years later the two 
sides are discussing WTO entry for Vietnam and the United 
States has become Vietnam's largest export market. 
Vietnam's change from central planning to market-based 
system is admirable, Rep. Oxley said.  He asked for more 
information on Vietnam's formation of capital markets, the 
transparency of political and economic decisionmaking and 
anti-corruption efforts.  These details will be vital for 
advocates of PNTR passage, Oxley said, including himself. 
 
AN: ECONOMIC REFORM AND "ECONOMIC DEMOCRACY" 
-------------------------------------------- 
 
¶15. (SBU) Chairman An said the Doi Moi reforms were "of the 
greatest importance" because they prevented Vietnam from 
"following the fallen path of the Soviet Union."  Vietnam 
followed the central planning philosophy with the idea that 
ridding Vietnam of private ownership would prevent 
exploitation of workers and farmers.  However, Vietnam 
learned that this is an ineffective system because it 
deprives people of economic incentives to work.  In the old 
days, there were only two sectors:  State-owned Enterprises 
and collectives.  Now, the Constitution and the GVN promote 
the growth of every economic sector and people's rights 
include the right to participate in every part of the 
economy as private citizens or in business.  This 
fundamental change led to an explosion in agricultural 
development.  Democracy in the area of economic growth is 
very strictly enforced, with the outcome that "anyone can 
successfully pursue happiness and prosperity and develop 
themselves and the country."  This policy helps Vietnam 
mobilize capital domestically and from overseas, An said. 
 
¶16. (SBU) An acknowledged that the creation of capital 
markets "is very new for us."  There are two stock 
exchanges, in Hanoi and in Ho Chi Minh City.  The capital 
markets are growing, however.  "Money and banking systems 
are also relatively new to us, but we are working on them," 
he continued.  "Part of our banking system is now commercial 
banks, and we are creating the conditions for effective 
monetary markets and policies to operate." 
 
¶17. (SBU) A quick read of the press will demonstrate 
Vietnam's commitment to anti-corruption, An said.  The anti- 
corruption fight is one method to increase efficiency, and 
gain the confidence and trust of the population and the 
world, including business people and investors.  The reforms 
of the last twenty years have been a great exercise in 
conceptual change.  To achieve the results Vietnam has 
achieved is an exceptional process, and a success.  The GVN 
and the Party attribute the success of the reform process to 
the success of economic democracy, and have committed to 
taking the process to new heights in the years to come.  "I 
say that we won the wars of resistance because we complied 
with the wishes of the people, and we will have success in 
economic modernization with the same popular involvement." 
 
RYAN: KEY ISSUES ARE REFORM, MARKET ACCESS, HUMAN RIGHTS 
--------------------------------------------- ----------- 
 
¶18. (SBU) Rep. Paul Ryan, a member of the Ways and Means 
Committee, described three major challenges ahead for 
Vietnam as it faces a PNTR vote in Congress.  First, the 
Congress will look closely at Vietnam's laws on the rule of 
law, intellectual property rights, and the transparency of 
business rules and procedures, and then will look at how 
 
HANOI 00000862  005.2 OF 006 
 
 
those laws are implemented.  Second, it will be necessary 
for individual members to justify a PNTR vote to their 
constituents, so tariff and non-tariff barriers to trade 
will be very important.  U.S. Trade Representative Rob 
Portman is a former colleague in the House of 
Representatives and very well respected in Congress, and he 
is trusted to raise and solve the important market access 
issues that remain, such as on motorcycles, car engines, 
tractors, financial services, etc.  These are crucial to 
constituents and of the highest importance to members. 
Third, it is necessary to keep in mind that Vietnam PNTR 
will be a very emotional vote, both because of the history 
between our countries and because of ongoing political 
differences.  Human rights, for example, particularly in the 
realms of religious freedom, internet freedom and 
trafficking in persons, will be closely watched.  Rep. Ryan 
said he appreciates Chairman An's candor on the democracy of 
Vietnam's economic system, but is concerned about the 
inherent contradiction between economic democracy and 
political centralization.  This will be a contentious issue 
as Congress debates PNTR for Vietnam and each member tries 
to justify his/her position to his/her constituents. 
 
AN RESPONDS AT LENGTH 
--------------------- 
 
¶19. (SBU) The National Assembly passed WTO laws three times 
faster than any other law on Vietnam's books, An declared. 
The quality of those laws is also higher than other 
legislation.  The National Assembly is involved in the 
process intimately, and is required to approve any bilateral 
agreement with Vietnam, a role it has played efficiently in 
the past year.  Vietnam is looking forward to addressing the 
challenge of PNTR, as well as other contentious issues, such 
as Vietnam's continued placement on the list of countries of 
particular concern for religious freedom.  For the PNTR vote 
to be fair and accurate, An said, it will be important that 
Congress receives "fair information from different angles" 
that will do the best job of informing the institution. 
 
HUMAN RIGHTS 
------------ 
 
¶20. (SBU) Tariff and non-tariff barriers as well as other 
technical issues have, by and large, been dealt with in the 
negotiations, An asserted.  The issues of human rights and 
religious freedom are very big ones, and very sensitive, 
based on the fact that Vietnam and the United States have 
differences in opinion and approach due to their different 
historic development as countries.  It takes time to grow 
when you have the complex and difficult history of Vietnam, 
he said.  The real problem is that the two sides do not 
understand each other well enough, he added.  "Why do you 
think we fought wars for thirty years," he asked 
rhetorically, "if not for the human rights of our people?" 
All men are created equal, and Vietnam fought its wars to 
guarantee that it will be on an equal footing with other 
countries.  As Ho Chi Minh put it, "there is nothing more 
valuable than independence and freedom."  Politically, 
Vietnam has a great deal of freedom, as evidenced by the 
popular participation in and feedback to the draft Political 
Report in advance of the 10th National Party Congress.  An 
said he himself loves the internet and finds it very free. 
Vietnam looks forward to welcoming the "symbol of the 
internet," Bill Gates.  Vietnam even has internet access in 
remote and mountainous areas, An said with pride.  The 
Government's role in the internet is "to pay attention to 
the downsides, the things that can harm youth or be used to 
instigate negative issues."  Vietnam understands that in a 
global age, force cannot be used to stop things; guidance is 
required to protect the people.  The people require internet 
access to be efficient and wholesome. 
 
RELIGIOUS FREEDOM 
----------------- 
 
¶21. (SBU) An urged the delegation to visit a church or 
pagoda to see the practice of religion in Vietnam firsthand. 
"The issue in Vietnam has never been the practice of 
religion, but rather those who would take advantage of 
 
HANOI 00000862  006.2 OF 006 
 
 
religion to do other things, and to invade us from outside," 
An explained.  "The history of religious actions in Vietnam 
has been that religion from outside has been a road-paving 
project for colonialism."  Religious activity within Vietnam 
is very robust, as much or more so than in the United 
States, he said.  Every Vietnamese follows religion of one 
kind or another, he declared, and some follow more than one. 
"I am a Buddhist," An said, "and my wife is Catholic.  My 
wife's sister is both.  She attends the pagoda and the 
church."  Vietnam takes a great deal from all religions.  An 
closed with a "Ho Chi Minh thought" (itself borrowed from 
the Cao Dai, a uniquely Vietnamese religion) regarding the 
contributions of various religious belief systems: 
"Confucius teaches us how to be humane.  Buddha teaches us 
how to be benign.  Jesus Christ teaches us to be 
compassionate, and Sun Yat Sen teaches us the three 
principles of the people (nationalism, democracy, and `the 
people's livelihood,' which the Vietnamese believe means 
socialism)." 
 
NATIONAL ASSEMBLY DINNER 
------------------------ 
 
¶22. (SBU) Following their official meetings, Chairman An 
hosted an elaborate dinner for the Speaker and his 
delegation in which An and other NA members who spoke were 
even more enthusiastic and upbeat about the future of the 
bilateral relationship.  At one point, all of the NA 
representatives joined in song together in a toast to the 
future of U.S.-Vietnam relations.  Later, An expounded on 
his earlier religious statements, saying that "God teaches 
us to love each other, and Buddha teaches us to show 
compassion to each other.  This meeting allows us to put 
these principles into practice."  In a final gesture, An had 
the musicians play a traditional American song and then a 
traditional Vietnamese song for the delegation.  The Speaker 
concluded the evening with expressions of thanks and a 
commitment to continue developing our exchanges and 
dialogue. 
 
Comment 
------- 
 
¶23. (SBU) Chairman An is known as a relatively hard-line 
communist politician, and we have seen him take a combative 
and defensive attitude towards American delegations in the 
past (such as during Congressman Gillmor's visit in January 
2006).  He is also widely assumed to be retiring after the 
10th National Party Congress this week, which would suggest 
that he does not need to pull his punches.  With that in 
mind, his expansive, friendly responses to the Speaker's and 
the delegation's comments and questions, even on sensitive 
topics such as religious freedom and human rights, were a 
welcome surprise.  The National Assembly (no doubt at An's 
instruction) went out of its way to create warm atmospherics 
for the meeting, with a relatively intimate "welcome toast" 
and a robust turnout of pro-U.S. officials and legislators. 
We noted that An did not let his colleagues ask or answer a 
single question, and instead did all the talking himself. 
He promised that he would give them a chance to express 
themselves later at the dinner reception, but in fact that 
was a largely social affair. 
 
¶23. (SBU) The Speaker's staff members cleared this message. 
 
MARINE