VZCZCXRO6517
RR RUEHHM
DE RUEHHI #0083/01 0121000
ZNR UUUUU ZZH
R 121000Z JAN 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4331
INFO RUEHHM/AMCONSUL HO CHI MINH 2384

UNCLAS SECTION 01 OF 02 HANOI 000083 
 
SIPDIS 
 
STATE FOR EAP/MLS 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM PREL AMGT ABLD ECON ETRD VM
SUBJECT: MFA OFFICIALS DISCUSS RANGE OF CURRENT BILATERAL TOPICS 
 
¶1. (SBU) Summary: During a January 9 meeting with the DCM, Ministry 
of Foreign Affairs (MFA) Americas Department Director General Pham 
Van Que said that Deputy Prime Minister/Foreign Minister Pham Gia 
Khiem has not yet decided on dates for travel to the United States. 
Que proposed several potential issues focused on "upgrading the 
relationship" for discussion during the DPM's visit and President 
Triet's visit later this year, including improved Ex-Im Bank loan 
terms, urging a more active OPIC role, re-examining export controls 
to Vietnam and broadening U.S. policy on arms transfers to include 
lethal defense articles and services.  Que noted that the upcoming 
Communist Party Plenum will focus on redefining the Party's role in 
the context of Vietnam's rapidly-changing circumstances.  Addressing 
New Embassy Compound negotiations, Que expressed his desire to 
conclude an agreement on property purchases in Washington and Hanoi 
in the "near future." 
 
¶2. (SBU) Summary continued:  Referring to a recent exchange of notes 
between ConGen HCMC and a southern province on the question of 
meeting private Vietnamese citizens, the DCM sought MFA assistance 
in enabling continued unfettered access by U.S. officials.  Que 
acknowledged DPM Khiem's promise to Secretary Rice that the GVN will 
release dissident Nguyen Vu Binh and requested a formal proposal 
noting U.S. Government willingness to enable Phan Van Ban to travel 
to the United States if he is released.  On the issue of dioxin, the 
DCM shared that the United States will soon announce its 
contribution to help clean up the Danang airport.  End Summary. 
 
¶3. (SBU) On January 9, the DCM hosted a luncheon with MFA Americas 
Department Director General Pham Van Que, Deputy Director Nguyen 
Hoanh Nam and Desk Officer Le Chi Dzung.  MGT/C and EconOff also 
attended.  Both sides positively evaluated progress made on a broad 
range of bilateral issues in 2006 and expressed a commitment to 
continue the momentum in 2007.  Specifically noting the nuclear fuel 
replacement at the Dalat Nuclear reactor and the Peace Corps 
agreement, the DCM expressed his hope that these and other issues 
will move forward in the new year. 
 
Deputy Prime Minister Khiem's Visit to Washington 
--------------------------------------------- ---- 
 
¶4. (SBU) Despite having pressed him that morning, Deputy Prime 
Minister Pham Gia Khiem has not yet decided on specific dates for 
his travel to Washington, Que reported.  The DCM relayed that the 
end of February may not fit with Secretary Rice's schedule, and 
urged the GVN to propose dates soonest so that the State Department 
can respond.  Que said that the current plan is for DPM Khiem to 
spend one week in the United States.  In addition to Washington, 
Khiem will likely travel to Boston, Chicago and possibly Seattle or 
Los Angeles, although Que acknowledged the potential sensitivities 
of a trip to Southern California. 
 
¶5. (SBU) Que proposed several potential issues for the DPM's visit, 
and President Nguyen Minh Triet's visit to Washington later this 
year.  Overall, these issues focus on "upgrading the relationship." 
Specific actions (on the U.S. side) might include: (1) improving the 
terms and rates for Ex-Im Bank loans offered to private Vietnamese 
firms; (2) urging a more active OPIC role to bring additional 
foreign direct investment to Vietnam; (3) re-examining the current 
status of controls of goods exported to Vietnam; (4) authorizing the 
sale of lethal military goods to Vietnam.  With these goals in mind, 
MFA will suggest that DPM Khiem visit with OPIC, EX-IM Bank, USAID 
and the Trade and Development Agency during his upcoming visit.  DG 
Que also noted the DPM's interest in science and technology issues. 
The DCM responded that once a date has been set, the two sides 
should meet to discuss the DPM's interests and work to develop an 
appropriate agenda. 
 
Continued Administrative Reforms 
-------------------------------- 
 
¶6. (SBU) In response to the DCM's urging that Vietnam continue to 
upgrade legislation, strengthen the rule of law and implement its 
World Trade Organization (WTO) and other international commitments, 
Que noted that the WTO is only one of the factors driving 
administrative reforms in the National Assembly, the Government, the 
court system and the Party.  He revealed that a focus of the 
upcoming Communist Party Plenum, expected to occur in January, will 
be "interpreting and defining the role of the Party in the context 
of Vietnam's changing circumstances as it increasingly integrates 
into the global community and continues its rapid economic 
development." 
 
¶7. (SBU) Continued progress in rule of law and transparency would be 
necessary for Vietnam if it is serious about candidacy as a 
Millennium Challenge Corporation Threshold Country, the DCM noted. 
The delegation from the Office of Government which recently visited 
Washington expressed an interest in qualifying for MCC funds.  Que 
admitted he knows little about the MCC criteria and requested 
further information. 
 
 
HANOI 00000083  002 OF 002 
 
 
New Embassy Compound 
-------------------- 
 
¶8. (SBU) DG Que expressed his desire to conclude an agreement on 
property purchases in Washington and Hanoi in the "near future." 
The GVN request to develop a new mechanism to govern this and future 
acquisitions may necessitate additional legal reviews in Washington, 
MGT/C noted.  Stopping short of full agreement, Que committed to 
discuss at a later opportunity the possibility of moving forward 
with dual tracks - proceeding with negotiations over both sides' 
Embassy facilities in the immediate future while working in parallel 
to finalize details on a more comprehensive mechanism.  MGT/C said 
the U.S. side has repeatedly proposed a lump sum price of slightly 
more than USD seven million for the land in Ciputra, and expressed 
his hope that if the GVN found this offer unacceptable, the MFA 
would respond with a counter-offer to move negotiations forward.  DG 
Que suggested that the Embassy formally convey this offer to the 
Ministry by diplomatic note.  He added, however, that Vietnam had 
repeatedly rejected the USD seven million proposal in the past and 
asked that the USG be more reasonable with respect to a final price 
tag for the Ciputra property. 
 
¶9. (SBU) MFA is also ready to proceed with negotiations over the 
sale of the U.S. property on Hai Ba Trung Street, according to Que. 
Que said that he believes Vietnamese regulations dictate that the 
GVN or the Hanoi People's Committee are the only two organizations 
which have the right to purchase this land, but he also believes an 
agreement can be reached based on a "fair market price."  He 
suggested that the sale of this property would be less complicated 
if it occurred independent of negotiations over the New Embassy 
Compound (NEC).  The Embassy will send a note of intent to sell the 
property and seek the GVN's concurrence in the near future, the DCM 
said. 
 
Human Rights and Religious Freedom Issues 
----------------------------------------- 
 
¶10. (SBU) The Embassy's ability to credibly report on human rights 
and religious freedom issues and address concerns of the Congress is 
based on the access enjoyed by our officials to private Vietnamese 
citizens, the DCM continued.  Referring to a recent diplomatic note 
from a provincial External Relations Office (ERO) requesting that 
ERO officials be present in all meetings, he stated that U.S. 
officials will continue to seek unfettered access.  Desk officer 
Dzung was aware of the note and pushed back, stating that U.S. 
officials should understand the need for an ERO presence in 
meetings.  The DCM reported that this would degrade the USG's 
ability to creditably report on conditions in Vietnam.  The two 
sides debated the issue at some length, and there was no meeting of 
the minds, but the DCM stated that U.S. officials would continue to 
do their job professionally and well. 
 
¶11. (SBU) The DCM noted that the MFA has not yet responded to the 
Ambassador's December 4 letter to Le Van Bang regarding dissidents 
Nguyen Vu Binh and Phan Van Ban.  The DCM noted U.S. Government 
willingness to facilitate the departure to the United States of Phan 
Van Ban, if he is released.  We continue to await the release of 
Nguyen Vu Binh before the Tet holiday, as DPM Khiem promised to 
Secretary Rice during the APEC Leaders Meeting.  DG Que acknowledged 
 
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the understanding between the Secretary and the DPM.  On Ban, he 
requested a formal written proposal so that the GVN can proceed with 
consideration of this idea.  (Note:  The Ambassador wrote to VFM Le 
Van Bang on January 12 seeking the release of Binh as promised and 
raising the issue of Ban's travel to the United States, if he is 
released.  End Note.)  Separately, the DCM told Que that the 
Ambassador had just sent a letter to MFA stating our understanding 
that Pastor Paul Tran Dinh Ai hopes to travel to Vietnam later this 
month to visit his elderly mother and celebrate the Tet holiday with 
her. 
 
Agent Orange 
------------ 
 
¶12. (SBU) The DCM shared that the United States will soon announce 
its contribution of USD 400,000 to help clean up dioxin at the Da 
Nang airport.  This project, implemented by the EPA, is in 
partnership with the Ford Foundation and the United Nations 
Development Program.  A U.S. scientist will also travel to Vietnam 
to work for a short time in the Ministry of Science and Technology's 
Office 33.  More broadly, views among Vietnamese surrounding the 
issue of Agent Orange are slowly changing.  We welcome a more 
reasoned discussion of the issues. 
 
MARINE