VZCZCXRO0169
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0016/01 0050639
ZNR UUUUU ZZH
P 050639Z JAN 07
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC PRIORITY 7781
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY

UNCLAS SECTION 01 OF 02 PHNOM PENH 000016 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP, EAP/MLS 
 
E.O. 12958: N/A 
TAGS: PGOV PHUM CB
SUBJECT: SCENESETTER FOR PDAS KATHLEEN STEPHENS JANUARY 
20-24 VISIT TO CAMBODIA 
 
 
¶1.  (SBU) SUMMARY AND INTRODUCTION.  U.S. strategic interests 
are at play in Cambodia, although they relate as much to 
Cambodia's neighbors as to Cambodia.  As has long been the 
case, Cambodia remains something of a "sideshow" in which 
world and regional powers (China, Vietnam, Thailand and the 
U.S.) vie for influence or, at the very least, compete to 
preempt others from gaining too strong a hold on Cambodia. 
The Cambodians, for their part, have long tried to play off 
these competing powers against one another in order to 
advance their own interests.  In these equations, the role of 
China is pivotal, as it expands its influence in the region. 
In Cambodia, the Chinese have been particularly successful 
given USG reticence in the past to engage more energetically 
with the Cambodian government.  Nonetheless, Cambodia sees 
the U.S. as crucial in serving as a counterweight to the 
growing Chinese presence and many Cambodians view the U.S. as 
an alternative model for economic and political development 
to the more authoritarian regimes in the region.  Polls show 
that the average Cambodian holds the U.S. in high regard; our 
public affairs focus includes outreach to the Muslim 
minority, cultural programming, and active visitors programs. 
 
¶2.  (SBU) The USG and the Cambodian government (RGC) 
cooperate closely on a wide range of issues: 
counter-terrorism and intel-sharing, MIA recovery, Amcit 
pedophile cases, health (HIV/AIDS and avian influenza) and 
education.  Mil-to-mil ties are expanding with the first U.S. 
Navy ship visit in over 30 years planned for February and 
IMET and FMF programs restarting.  The U.S. is crucial to 
Cambodia's economy, representing the largest market for its 
garment sector, which accounts for 70% of the country's 
exports.  PM Hun Sen strongly desires a more productive 
relationship with the USG, but he and the ruling CPP have yet 
to commit to enduring democratic reforms.  Your meeting with 
the Prime Minister will underscore our desire for stronger 
ties and provide an opportunity to impress on the PM the need 
for reform as a prerequisite for deepening the bilateral 
relationship and attracting foreign investors.  END SUMMARY 
AND INTRODUCTION. 
 
Cambodia Matures as an International Actor 
------------------------------------------ 
 
¶3.  (SBU)  Since reestablishing diplomatic relations in 1992 
following the signing of the Paris Peace Accords, the U.S. 
and Cambodia have incrementally but steadily strengthened 
their ties, albeit with occasional setbacks as a result of 
Cambodian human rights transgressions.  The momentum of this 
deepening relationship has increased in recent years and 
Cambodia has begun taking a more responsible position in 
international affairs.  The RGC has sent peacekeepers to 
Sudan (a company of de-miners), supported Guatemala's bid for 
the UNSC seat and taken a more publicly critical stance on 
Burma.  While Cambodia has been forthcoming diplomatically, 
we continue to urge the RGC to quicken and strengthen 
movement toward reform.  We have focused especially on 
passage of an anti-corruption law that meets international 
standards. 
 
Keeping Political Space Open, Human Rights Are Priorities 
--------------------------------------------- ------------ 
 
¶4.  (SBU) The level of political violence in Cambodia has 
fallen since the early 1990s, but there remain serious 
concerns regarding human rights and democratization.  Like 
other countries in the region, Cambodia's leaders have used 
its weak and easily influenced judiciary to pursue legal 
cases against critics and the political opposition.  While 
criminal defamation is no longer a viable weapon for 
silencing dissent, other legal provisions concerning 
disinformation and incitement remain on the books and have 
been used in the past year against journalists and others the 
government has wished to silence.  The PM has had a very 
public falling out with the UNSYG's Special Rapporteur for 
Human Rights for Cambodia, Kenyan constitutional lawyer Yash 
Ghai, due to what the PM considers as unduly harsh criticism 
of the human rights situation in Cambodia.  The PM also 
suggested that the UN close its local human rights office. 
Former Phnom Penh police chief Heng Pov fled Cambodia before 
he could be arrested on murder charges and gave lengthy press 
interviews abroad detailing the alleged corruption and 
extrajudicial killings committed by senior government 
officials.  Heng Pov's murder conviction in absentia and 
repatriation to Cambodia -- despite a standing visa offer 
from Finland -- has now led many observers to raise questions 
about due process and his safety in prison.  The government 
regularly refuses to provide permits for civil society NGOs 
and other groups to hold public gatherings that might raise 
issues highlighting government shortcomings. 
 
PHNOM PENH 00000016  002 OF 002 
 
 
 
¶5.  (SBU) International observers will closely monitor the 
local commune council elections scheduled for April 2007 and 
the national elections in the summer 2008.  Cambodia's 
previous three national elections have shown improvement 
during each five-year cycle, with diminishing levels of 
political violence, but intimidation and vote-buying continue 
to be problematic.  Prince Rannariddh's ouster from the 
FUNCINPEC party, his creation of a new party, and the "new 
FUNCINPEC's" increasingly close cooperation with the CPP make 
the April elections more unpredictable. 
 
Corruption Remains Endemic 
-------------------------- 
 
¶6.  (SBU) In 2006, Transparency International ranked Cambodia 
151 out of 163 countries in its corruption perceptions index; 
Burma was the only country in Asia ranked lower than 
Cambodia.  There has been continued and widespread land 
grabbing by government officials and the politically 
well-connected.  Uprooted communities from outside Phnom Penh 
trying to seek government redress are often prevented from 
traveling to the city to draw media and public attention to 
their plights.  Enactment of an anti-corruption law has 
dragged on for years, with the government showing little 
inclination to adopt legislation that would lead to strong 
enforcement.  This failure, along with a corrupt and 
politicized judiciary, has prevented Cambodia from attracting 
foreign direct investment.  Cambodia's competitiveness 
ranking (103 out of 125 in 2006) is also one of the lowest in 
the world, again due largely to perceived systemic 
corruption.  Rather than embrace the reforms that would 
garner increased investment and the new jobs that would be 
created, the RGC appears to be banking on the future income 
from its as-yet-untapped oil and gas reserves, which should 
come on stream after 2009.  Donors are concerned that the 
current corrupt political environment will lead to misuse of 
future revenues that are badly needed to reduce poverty in 
the country. 
 
Khmer Rouge Tribunal Stumbles Forward 
------------------------------------- 
 
¶7.  (SBU) The Khmer Rouge Tribunal, also known as the 
Extraordinary Chambers in the Courts of Cambodia (ECCC), has 
obtained funding from UN member nations, established offices 
in Phnom Penh and selected international and Cambodian staff, 
including judges, prosecutors and investigating staff. 
However, its Cambodian and international staff have had 
difficulty in agreeing on terms of reference.  Squabbling 
among international and Cambodian judges, combined with 
interference from the Cambodian Bar Association, threatens to 
undermine the initial momentum.  Meanwhile, the potential 
defendants continue to age, with one, Ta Mok, havin died in 
the past year. 
 
Aid: Health, Education and Good Governance 
------------------------------------------ 
 
¶8.  (U) The USG's assistance programs are targeted at helping 
the Cambodian people through a focus on good health 
(especially HIV/AIDS and other infectious diseases), good 
education and improved political and economic governance. 
The overall USG assistance budget for FY07 is $53 million, of 
which approximately $46 million is managed by USAID. 
 
Post and the New Embassy Compound 
--------------------------------- 
 
¶9.  (U) The new Embassy chancery was formally opened January 
17, 2006 with the annex housing USAID completed approximately 
six months later.  The Embassy currently employs 72 
direct-hire Americans, 460 locally employed staff, and 17 
eligible family members.  There are another approximately 50 
family members at post.  Six agencies are represented: 
Department of State, Department of Defense (Defense Attache, 
Office of Defense Cooperation, and a naval medical unit), US 
Agency for International Development, the Centers for Disease 
Control, a new Peace Corps presence, and a soon-to-be-hired 
local veterinarian representing the Department of 
Agriculture.  The FBI has received NSDD38 approval to 
establish a LEGATT, but has internal funding constraints. 
MUSSOMELI