VZCZCXRO0076
OO RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH RUEHVC
DE RUEHBJ #4127/01 3321135
ZNY CCCCC ZZH
O 281135Z NOV 06
FM AMEMBASSY BEIJING
TO RUEHC/SECSTATE WASHDC IMMEDIATE 2525
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE
RHEHNSC/NSC WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 BEIJING 024127 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 11/28/2016 
TAGS: PREL PHUM ENRG CH VM LA
SUBJECT: PRC SATISFIED WITH PRESIDENT HU JINTAO'S VISIT TO 
VIETNAM AND LAOS 
 
REF: BEIJING 18364 
 
Classified By: Political Minister Counselor Daniel Shields. 
Reasons 1.4 (b/d). 
 
¶1. (C) Summary: Chinese President Hu Jintao's November 15-20 
state visits to Vietnam and Laos succeeded in strengthening 
Beijing's relationship with these two socialist neighbors, 
according to MFA officials and third-country diplomats.  In 
Hanoi, Hu pledged support for Vietnamese efforts to enter the 
WTO and to seek a non-permanent UN Security Council seat in 
¶2008.  Beijing and Hanoi set up a steering committee to 
expand interagency cooperation and address maritime 
emergencies.  Trade and border deals were also signed.  Hu's 
23-hour visit to Vientiane was the first by a Chinese leader 
since 2000 and produced statements on strengthening political 
and economic relations and on border management.  Vietnamese 
diplomats said Hanoi was irked that Hu did not discuss 
PRC-Laos relations with Vietnamese leaders in Hanoi. End 
Summary. 
 
Hu Supports Vietnam's International Aspirations 
--------------------------------------------- -- 
 
¶2. (C) Both Beijing and Hanoi were very satisfied with 
Chinese President Hu Jintao's November 15-19 visit to 
Vietnam, MFA Asia Department Southeast Asia Division Director 
Chen Dehai and Vietnamese Embassy Poloff Tran Viet Thai told 
us separately.  Hu pledged Chinese support for Vietnamese 
efforts to enter the WTO and for Vietnam's bid for the Asia 
group non-permanent seat on the UN Security Council in 
2008-09, Tran said.  China and Vietnam formally established 
and held the first session of the interagency Steering 
Committee for Bilateral Cooperation that will promote 
bilateral cooperation and exchanges, MFA's Chen noted.  The 
committee, headed by PRC State Councilor Tang Jiaxuan and 
Vietnamese Foreign Minister Pham, will work to expand 
cooperation across agencies and will respond to emergencies, 
such as maritime incidents or detention of fishermen in 
disputed areas of the South China Sea, he said. 
 
Border and Trade Issues Emphasized 
---------------------------------- 
 
¶3. (C) Beijing and Hanoi reinforced agreements to finalize 
demarcation of their land border by 2008, to expedite joint 
exploration of oil, gas and fishery resources in the Gulf of 
Tonkin and to expand negotiations on demarcation of the 
maritime border and resource exploration in areas of the 
South China Sea beyond the Gulf of Tonkin, MFA's Chen said. 
The two agreed to continue joint naval patrols and joint 
surveys for mineral and fisheries resources in the Gulf of 
Tonkin in 2007.  The joint statement issued by the parties 
emphasized strengthening political and economic cooperation 
and increasing bilateral trade to $15 billion by 2010.  A key 
cross-border trade initiative emphasized during the visit 
involved sub-regional economic cooperation and development of 
transportation corridors between Vietnam and China's Yunnan 
and Guangxi Provinces and in coastal regions of both 
countries along the South China Sea, he added. 
 
¶4. (C) In addition to participating in the APEC Leaders' 
Meeting, Hu met with Vietnamese President Ngyuen Minh Triet, 
Party Secretary General Nong Duc Manh, PM Ngyuen Tan Dung and 
National Assembly Chairman Ngyuen Phu Trong.  President Hu 
has a particularly good relationship with Party head Nong Duc 
Manh, Chen said (reftel).  During Manh's August 2005 visit to 
Beijing, Manh prevailed on Hu to make his attendance at APEC 
in Vietnam into a state visit, even though Hu had paid a 
state visit to Vietnam as recently as December 2005. 
 
Laos: Five-Point Proposal to Improve Relations 
--------------------------------------------- - 
 
¶5. (C) Hu Jintao's 23-hour, November 19-20 visit to Vientiane 
was the first by a Chinese leader since Jiang Zemin's 2000 
state visit, according to MFA's Chen.  The goal of the visit 
was to demonstrate the PRC's friendship with Laos as an 
important neighbor who shares China's socialist system, he 
said.  Discussions between Hu and Lao leaders focused on 
mutual support and trust, with the Lao strongly supporting 
China's position on Taiwan, and on China's promises to 
continue to provide Vientiane with financial aid, debt 
forgiveness and leadership training. 
 
¶6. (SBU) Hu and Lao President Choummali Saignason agreed on a 
five-point proposal for improving relations: 
 
- Maintain annual high-level meetings (Note: Hu's visit 
reciprocated the Lao President's June visit to Beijing). 
 
BEIJING 00024127  002 OF 002 
 
 
- Strengthen exchanges for management of national and party 
affairs. 
- Strengthen economic and trade cooperation and develop new 
trade channels.  China will encourage investment in Laos. 
- Strengthen border security and crackdown on cross-border 
crime. 
- Provide mutual support on international and regional 
issues, including ASEAN and the UN. 
 
Hu also met with former leader Khamtay Siphandone, National 
Assembly president Thongsing Thammavong and PM Bouasone 
Bouphavanh.  A Chinese company signed a $140 million deal to 
build a 100,000 kilowatt hydropower station 
outside Vientiane during the visit. 
 
Vietnamese see Laos Visit as Incursion on Their Turf 
--------------------------------------------- ------- 
 
¶7. (C) Hu's visit to Laos was aimed at currying favor and 
demonstrating that China can project its influence within 
Asia, the Vietnamese Embassy's Thai said.  China seeks timber 
and other natural resources from Vientiane, he said.  Vietnam 
remains suspicious that China intends to gain favor in Laos 
at Vietnam's expense, he said, noting that President Hu did 
not discuss his planned visit to Laos while meeting with 
Vietnamese officials in Hanoi.  MFA's Chen acknowledged 
Hanoi's influence with Vientiane but said China has "no need" 
to discuss with the Vietnamese China's relationship with Laos 
because China's activities are transparent. 
Randt