VZCZCXRO9059
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0894/01 1300232
ZNY CCCCC ZZH
O 100232Z MAY 06
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 6635
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEHCV/AMEMBASSY CARACAS PRIORITY 0004
RUEHGT/AMEMBASSY GUATEMALA PRIORITY 0007
RUCNDT/USMISSION USUN NEW YORK PRIORITY 2145
RHHMUNA/HQ USPACOM  PRIORITY
RUEHGV/USMISSION GENEVA PRIORITY 1435

C O N F I D E N T I A L SECTION 01 OF 03 PHNOM PENH 000894 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MLS; GENEVA FOR RMA 
 
E.O. 12958: DECL: 05/04/2016 
TAGS: PREL KDEM KJUS PHUM EAID CB
SUBJECT: CAMBODIA:  DAS JOHN'S REINFORCES BILATERAL 
RELATIONS WITH FOREIGN MINISTER 
 
Classified By: A/DCM Margaret McKean; Reason 1.5 (b),(d) 
 
¶1.  (C)  Summary.  In a May 4 discussion with visiting DAS 
Eric John, FM Hor Namhong lauded US-Cambodia bilateral 
relations and said Cambodia would seriously consider DAS 
John's request that the RGC support Guatemala's candidacy for 
the UNSC.  The FM was open on Burma and prospects for 
democratic change.  He pushed Cambodian membership in APEC 
and suggested that Cambodia join the ASEAN Seven leaders on 
the margins of the APEC Summit in Hanoi.  The FM requested 
that the United States consider joining the East Asian 
Summit.  DAS John noted that Cambodia cannot compete 
economically in Asia on the basis of price; Cambodia's best 
opportunity is to capitalize on respect for labor and human 
rights -- and to continue implementing reforms that reinforce 
democratic institutions.  He pressed Cambodia to do more on 
Burma, both publicly and privately.  End Summary. 
 
MFA:  Cambodia in a Good Place Politically, Economically 
--------------------------------------------- ----------- 
 
¶2.  (C)  During DAS John's May 4 meeting with Minister of 
Foreign Affairs Hor Namhong, the FM said 2006 had been marked 
by positive developments in the political and economic 
environments.  Politically, the government's cooperation with 
opposition leader Sam Rainsy has contributed to a more open 
political dialogue, defamation is being decriminalized, the 
RGC and SRP are working on the land dispute issue -- all of 
which is good for Cambodia's political stability. 
Economically, 2005 growth estimates run at 8-9 percent, the 
FM continued, stronger than the country's 2004 performance 
(over 7 percent) as well as the period 1999-2003 (over 6 
percent).  Hor Namhong attributed the reasons behind 2005's 
strong showing as good economic management, increased 
tourism, steady garment exports and (for the first time in 
recent history) the export of Cambodia's rice surplus as a 
result of good rains. 
 
¶3.  (C)  Cambodia's bilateral relationship with the United 
States is also on a positive track, affirmed the Foreign 
Minister, who listed counterterrorism, education, and health 
as areas of excellent cooperation.  He welcomed the recent 
announcement of the Peace Corps program, noting that the PC 
would be of assistance in poverty reduction -- particularly 
in the rural areas.  Cambodia would like to sign the Trade 
and Investment Framework Agreement (TIFA) as soon as 
possible, he said, which will lead to the future 
implementation of the Enterprise for ASEAN Initiative begun 
in 2002.  Hor Namhong urged stronger USG-ASEAN ties, and 
noted that 2007 will mark the 30th anniversary of US-ASEAN 
relations; he hoped that there might be an ASEAN-US Summit to 
mark the event.  The FM pressed DAS John on Cambodia's 
membership in APEC, adding that PM Hun Sen has offered to 
join the US-ASEAN Seven meeting in Hanoi on the margins of 
the APEC Summit in Hanoi later this year.  Cambodia is also 
seeking USG support for the former's bid to the UNSC 
rotational seat for Asian countries in 2013-2014. 
 
¶4.  (C)  DAS John thanked the FM for his overview and 
concurred on the positive political and economic trends in 
Cambodia, as well as the increasing importance the USG places 
on our bilateral relationship.  He linked continued economic 
growth with further reform measures, such as addressing land 
disputes and land grabbing, enhanced respect for human rights 
through legal reforms (e.g., decriminalization of defamation) 
as such institutional changes send the right signals to 
foreign investors.  Cambodian remains in a competitive region 
of the world for pricing, but can continue on a growth track 
if it remains committed to fair labor laws and respect for 
human rights.  TIFA will also establish investor confidence, 
and DAS John noted that both countries can move forward as a 
result of agreement on the issue of bilateral debt. 
 
¶5.  (C)  DAS John took note of the RGC's request for support 
in its bid for a UNSC seat in 2013-14, but added that the 
more immediate issue is the choice between Guatemala and 
Venezuela later this year for the Latin American rotational 
seat.  DAS John said that Venezuela has shown itself to be a 
poor performer in international fora; FM Hor Namhong 
responded that Cambodia would consider this issue very 
seriously.  On the Enhanced Partnership with ASEAN, DAS John 
said that this will represent the first time the USG will 
pursue a TIFA with a regional organization.  The FM raised 
the Trade Act and asked about prospects for passage.  DAS 
 
PHNOM PENH 00000894  002 OF 003 
 
 
John replied that while he understands the benefits for 
Cambodia, he cannot make any assurances. 
 
Burma 
----- 
 
¶6.  (C)  Thanking Cambodia for its position on Burma, DAS 
John noted that the USG cannot participate in a US-ASEAN 
Summit with Burma's head of state.  It is desirable to go 
beyond the ASEAN Seven and include Laos and Cambodia in 
meetings such as APEC, he continued, and the U.S. welcomes 
Cambodia's interest but no decision has been made.  Much 
depended on Cambodia's continued progress in democratization 
and human rights.  In working towards a full US-ASEAN Summit 
with all ten ASEAN countries, dramatic changes must take 
place in Burma, underscored DAS John.  Cambodia could be an 
important ally in that regard.  The main steps to take are 
national reconciliation between the government and the NLD, 
release of all political prisoners including Aung San Suu 
Kyi, a true dialogue on the future of Burmese democracy, and 
the ability of the UN and NGOs to work in the country.  So 
far, concluded DAS John, the military junta has found all 
these points to be difficult obstacles. 
 
¶7.  (C)  Hor Namhong said that in last year's ASEAN leaders 
meeting in Kuala Lumpur, all nine ASEAN leaders had talked 
very strongly with Burma, saying that they could no longer 
defend the regime.  At the recent FM's retreat in Bali, he 
continued, all again expressed disappointment in Malaysian FM 
Hamid's visit to Rangoon.  The Cambodian FM said that in his 
opinion, the regime in Rangoon will one day realize the road 
map, but the ultimate problem will be elections -- will the 
military accept the results?   DAS John responded that the 
USG has worked assiduously to get key players in the region 
-- such as China, Japan, India and ASEAN -- to deliver a 
common message to the Burmese regime on the need for national 
reconciliation and a true dialogue on democracy, the release 
of political prisoners including Aung San Suu Kyi, and 
freedom for the UN and NGOs to operate in Burma.  ASEAN's 
recent statements have been a significant step.  DAS John 
welcomed ASEAN efforts at quiet diplomacy while publicly 
noting disappointment with the regime. 
 
EAS 
--- 
 
¶8.  (C)  Hor Namhong asked about the USG position on the East 
Asian Summit (EAS), noting that a number of countries (China, 
India, Korea, Japan, New Zealand) have joined.  DAS John said 
that the USG is still evaluating its position but does not 
oppose the new organization.  The USG prefers to watch with 
positive interest and not discourage; the USG still has 
questions regarding focus and possible duplication with other 
regional organizations.  DAS John  added that it was 
important for ASEAN to have a stronger voice in the region. 
Hor Namhong explained that the EAS evolved from the East 
Asian Study Group's recommendations.  He underscored ASEAN's 
wish that the United States join the EAS.  DAS John said that 
the USG wants to be engaged in Asia in a positive manner and 
did not rule out the possibility.  (Note:  Secretary of State 
for ASEAN Affairs Kao Kim Hourn has also said ASEAN is in 
favor of U.S. membership in the EAS; while Cambodia is 
supportive, we cannot comment on other ASEAN thinking.  End 
Note.) 
 
China 
----- 
 
¶9.  (C)  China and its role in the region is the topic of a 
significant public debate in the U.S., said DAS John.  Deputy 
Secretary of State Zoellick has said that China must be a 
 
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responsible stakeholder in Asia, which could be positive for 
Southeast Asia's economic growth and stability.  Cambodia's 
economy can grow as China's grows, he added, and Cambodia's 
democratic institutions can provide a positive model for 
China.  China and the U.S. can co-exist in the region in 
friendly competition.  The FM stressed that Cambodia and 
China have good relations based on China's providing loans, 
investment, and tourists.  China, he added, has always 
respected Cambodia's sovereignty and had not interfered in 
preparations for the Khmer Rouge Tribunal.  China has a role 
in Southeast Asia to maintain peace and security, the FM 
affirmed.  DAS John remarked that both China and the U.S. 
have elevated their level of engagement with ASEAN to the 
 
PHNOM PENH 00000894  003 OF 003 
 
 
region's benefit. 
 
Comment 
------- 
 
¶10.  (C)  This was Hor Namhong's best performance with a U.S. 
diplomat in recent memory and one of the best represented by 
senior MFA officials as well.  In addition to the FM, three 
out of five Secretaries of State were in attendance, as well 
as Sar Sambath, head of the Americas desk.  We understand 
that Singapore Foreign Minister George Yeo's criticism of Hor 
Namhong's poor grasp and handling of U.S.-Cambodian relations 
reached the Prime Minister's ears, and since then the 
normally anti-U.S. Foreign Minister has been more accessible, 
engaging, and animated in discussions with us.  End Comment. 
STORELLA