VZCZCXYZ0004
OO RUEHWEB

DE RUEHPF #1975 3060721
ZNR UUUUU ZZH
O 020721Z NOV 06
FM AMEMBASSY PHNOM PENH
TO SECSTATE WASHDC IMMEDIATE 7551

UNCLAS PHNOM PENH 001975 
 
SIPDIS 
 
STATE FOR EAP/MLS, EB, H 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL KTEX ETRD EAID CB
SUBJECT: STAFFDEL GILLEY VISIT EVALUATES USG OBJECTIVES IN CAMBODIA 
 
 
¶1.  (SBU) Summary.  Kristen Gilley, Deputy Chief of Staff for the 
House Committee on International Relations and Jamie McCormick, 
Staff Director, Subcommittee on Asia and the Pacific, visited 
Cambodia on October 20-22 to discuss bilateral relations, USG 
assistance programs, and USAID partner concerns.  The delegation met 
with the Minister of Commerce on trade and labor issues and National 
Assembly MPs on domestic political developments and legislative 
issues.  End Summary. 
 
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MOC Urges Trade Act Passage 
--------------------------- 
 
¶2.  (U) Minister of Commerce Cham Prasidh met with Staffdel members 
on October 20, accompanied by DCM, Econoff, and Conoff (notetaker). 
Noting the warm bilateral relationship between the U.S. and 
Cambodia, Prasidh made a strong pitch to the Staffdel for passage of 
the draft Trade Act that includes Asian least developing countries 
(LDCs), such as Afghanistan and Cambodia, not just African nations. 
Prasidh stressed that duty-free imports would allow Cambodia to 
compete with cheaper goods from China and Vietnam.  He said that 
U.S. imports from LDCs were a very small part of overall U.S. 
imports (0.5%), but allowing duty-free access would help the poor in 
the LDCs.  McCormick commented that obtaining passage of the bill 
would be difficult, but perhaps not impossible.  While elements in 
Congress support the bill, additional backers are needed from the 
Ways and Means and Finance Committees. McCormick added that 
inclusion of Afghanistan could be an important factor, as the 
country is of strategic importance to the U.S. 
 
¶3.  (SBU) Referring to a Labor Advisory Committee decision to grant 
a five-dollar increase in the monthly minimum wage for garment 
workers, Prasidh claimed that the garment manufacturers' profit 
margins are exceedingly thin, only 2-5%.  Thus, any increase ate 
away the profits.  The DCM cautioned that it was important for 
manufacturers and labor unions to maintain a positive spirit in 
negotiations.  A rupture in their relations could have a serious 
negative effect on the industry. 
 
¶4.  (SBU) Turning to draft regulations under discussion between the 
Ministry of Posts and Telecommunications and courier services, the 
delegation asked that Prasidh urge the Ministry withhold issuing the 
regulations (Prakas) until differences between the two sides have 
been resolved, and provided Prasidh with a non-paper containing 
points prepared by USTR on this issue.  Prasidh agreed that it was 
preferable to wait until the disagreements have been resolved and 
said that he would do everything possible to assist.  If the 
negotiations reached a point at which there was only one outstanding 
issue to be resolved; Prasidh promised to take it to the Prime 
Minister for a decision.  Prasidh said that he thought the 
differences would be worked out, as Minister of Posts and 
Telecommunications So Khun is "very flexible." 
 
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Legislative Issues; USAID Partners 
---------------------------------- 
 
¶5.  (SBU) The Staffdel also met on October 20 with MPs Than Sina of 
FUNCINPEC, Son Chhay of The Sam Rainsy Party (SRP), and Nhem Thavy 
of The Cambodian Peoples Party (CPP) at the National Assembly. 
Party representatives discussed the inability of National Assembly 
to be effective due to the lack of a legislative calendar and 
dependence on the RGC to forward legislation.  In addition, party 
representatives were concerned with the lack of progress on 
anti-corruption law, noting that they were still waiting for the 
draft criminal code.  The MPs explained that they have been informed 
by the RGC that the new criminal code must be approved before the 
anti-corruption legislation.  When the Staffdel inquired about 
professional capabilities of the staffing at the National Assembly, 
the MPs agreed that NA could use additional assistance on 
development of a professional staff.  The NA has received some 
training and assistance from CIDA and the German government in the 
past. 
 
¶6.  (SBU) On October 20, the Staffdel met with USAID and CDC 
officers who discussed the particular successes of health programs 
on HIV/AIDS and Avian Influenza.  After an evening reception and 
October 21 morning tour of NEC, the Staffdel received briefings from 
various USG partners on democracy building initiatives, human 
rights, and political reform in Cambodia.  The Staffdel also wanted 
to understand F reforms within State and USAID and their effect on 
mission effectiveness.  Additionally, the Staffdel asked about a 
Harvard proposal for an education project in Cambodia.  The Staffdel 
then attended a luncheon with Ambassador Mussomeli to discuss 
mission objectives in Cambodia. 
 
CAMPBELL#