VZCZCXRO8649
RR RUEHHM
DE RUEHHI #0367/01 0581020
ZNR UUUUU ZZH
R 271020Z FEB 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 4737
INFO RUEHHM/AMCONSUL HO CHI MINH 2635
RHEHNSC/NATIONAL SECURITY COUNCIL WASHINGTON DC

UNCLAS SECTION 01 OF 03 HANOI 000367 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PHUM ECON VM
SUBJECT: VFM LE VAN BANG ON UPCOMING HIGH-LEVEL VISITS, OUTSTANDING 
BILATERAL ISSUES 
 
Ref: Hanoi 349 
 
¶1. (SBU) Summary:  The GVN is placing great stock in the upcoming 
visit of DPM/FM Khiem to the United States as "preparing the 
atmosphere" for President Triet's own travel to the United States 
later this year, VFM Le Van Bang told the Ambassador February 26. 
The DPM's visit will also provide the occasion to close out 
remaining bilateral business, such as the Maritime Agreement and the 
Dalat reactor conversion project.  The VFM assessed in positive 
terms recent advances in mil-mil relations and USG efforts to 
address dioxin remediation, was less sanguine about the possibility 
of a Peace Corps breakthrough and suggested that President Triet's 
visit -- possibly in late June or the second week in July -- should 
be the "finish line" for pending commercial agreements and a new 
Embassy land deal.  The Ambassador raised human rights concerns 
(reftel) and pressed for clarity on what issues the DPM plans to 
raise in Washington -- including issues related to a bilateral TIFA, 
each country's respective consular presence, dioxin remediation and 
ODA.  The Ambassador also sought greater bilateral law enforcement 
cooperation, such as in addressing the growing money laundering 
problem.  End Summary. 
 
¶2. (SBU) The Ambassador, in his February 26 meeting with Vice 
Foreign Minister Le Van Bang, discussed at length human 
rights-related issues (reftel).  This message details discussions on 
other issues raised during the meeting.  One focus of the discussion 
was the March 10-17 visit to the United States of DPM/FM Pham Gia 
Khiem.  Arrangements are underway for a four-city tour taking the 
DPM to San Francisco, Los Angeles, Chicago and Washington. 
 
¶3. (SBU) The Ambassador noted the that the DPM's visit could help to 
continue the forward momentum in bilateral relations spurred by 
President Bush's very positive visit to Vietnam last November, while 
laying a foundation for the successful visit later this year of 
President Nguyen Minh Triet.  In that vein, it is important that, 
before the United States and Vietnam move on to new bilateral 
business, the two sides close out remaining issues such as the 
Maritime Agreement, Dalat, Peace Corps and a number of commercial 
matters, the Ambassador said. 
 
Maritime Agreement, Dalat, Peace Corps, Commercial Deals 
--------------------------------------------- ------- 
 
¶4. (SBU) The Maritime Agreement signing has been set for March 15, 
and we hope that this does not change, the Ambassador continued. 
Regarding our cooperation in reducing the threat of the 
proliferation of nuclear material, Vietnam and the United States 
have agreed to cooperate in converting the Dalat nuclear reactor 
from HEU to LEU fuel.  Our two sides are close to agreement on this 
project's details, and we are working towards signing two key 
contracts in March.  On a possible Peace Corps program, however, 
although many in the USG and GVN support reaching an agreement, to 
date it has been difficult to translate this support at the working 
level toward concrete progress.  Particularly nettlesome has been 
the lead agency's (MOET, the Ministry of Education and Training) 
limited mandate to reach an agreement on key points regarding the 
status and scope of the program.  At this point, the USG needs a 
clear signal from the GVN on whether to continue to push forward or 
to shelve this matter.  A number of large commercial deals involving 
Boeing, AES, Alcoa and Gannon also remain before us, the Ambassador 
said. 
 
NEC, Mil-Mil Relations 
---------------------- 
 
¶5. (SBU) Resolution of the land issue for our new Embassy has also 
been elusive, the Ambassador noted.  The USG's presence in Vietnam 
continues to grow, and our plans for a new Embassy will provide a 
50-year platform for carrying out USG business in Vietnam.  Moving 
forward on this issue would allow not only the USG, but also the 
GVN, to address problems related to our respective presences in 
Hanoi and Washington.  VFM Bang pledged to take a close look at this 
matter, and suggested that the President Triet visit may be the 
occasion to wrap this up. 
 
¶6. (SBU) Improvements in bilateral military-to-military relations 
have been notable, and we look forward to further progress in this 
area, the Ambassador continued.  For example, we would like to move 
ahead with sales of non-lethal military equipment and have requested 
from the Ministry of Defense a non-binding Letter of Request on 
potential items of interest.  Furthermore, we are looking forward to 
a number of possible ship visits in the months ahead that would 
include vessels with meteorological and humanitarian missions.  We 
hope that the GVN relaxes its stated one-per-year limitation on 
foreign ship visits, the Ambassador said. 
 
DPM's, President's Visits 
------------------------- 
 
¶7. (SBU) The DPM's visit will be key to preparing the atmosphere for 
 
HANOI 00000367  002 OF 003 
 
 
President Triet's own travel to the United States, VFM Bang 
asserted.  In response to the Ambassador's question about the Triet 
visit's timing, VFM Bang said that the MFA had proposed to the 
President's office either the last two weeks of June or the second 
week in July, but has not yet received any feedback.  It is also 
unclear where, other than Washington, D.C., President Triet will 
visit.  Texas and New York City are two possibilities.  As for the 
DPM's visit, he will be accompanied by a number of high-ranking 
officials from the Ministries of Trade, Transportation, Education 
and Training, Science and Technology and Planning and Investment, as 
well as the Office of the Government (the Prime Minister's Office). 
While in Washington, in addition to the confirmed meetings with the 
APNSA Hadley, the Secretary and USTR Schwab, the DPM is seeking 
meetings at OPIC, ExImBank, Commerce, the IMF, the World Bank and 
Congress. 
 
Peace Corps "Complicated" 
------------------------- 
 
¶8. (SBU) VFM Bang acknowledged the upcoming Maritime Agreement 
signing and noted that the DPM's visit will hopefully be an occasion 
to seal the Dalat-related agreements.  Peace Corps is more 
complicated.  While the GVN would welcome a "first-stage" Peace 
Corps program that is focused on English-language training, the USG 
appears to want more.  As with other bilateral projects, such as 
fullest possible accounting, demining and other forms of 
humanitarian assistance, a successful Peace Corps presence requires 
a step-by-step approach to build confidence; once this has been 
achieved, then the program's activities could be expanded.  There is 
no doubt that Vietnam, in light of its national aspirations, could 
use the English-language training that a Peace Corps program could 
provide.  VFM Bang said that the issue "should be kept alive" and 
addressed by a step-by-step approach that will "hopefully begin 
something." 
 
Commercial Deals, Trade Relations, ODA 
-------------------------------------- 
 
¶9. (SBU) Regarding pending commercial deals, although the DPM's 
visit will be an opportunity to "work on them," President Triet's 
visit should be the "finish line we aim for," VFM Bang continued. 
Vietnam is currently weighing offers from Boeing and Airbus and VFM 
Bang surmised that Boeing could win a deal for half of the 15-20 
aircraft that will be added to Vietnam Airlines' fleet.  The AES and 
Gannon power plant deals are in "good shape."  Regarding Alcoa, 
Chinese, French and Canadian companies have also expressed interest 
in bauxite mining, but Alcoa's bid may be more attractive because of 
its added pledge to refine the bauxite in Vietnam, VFM Bang said. 
 
¶10. (SBU) VFM Bang reported that the GVN is still "puzzled" by the 
textile issue (referring to possible anti-dumping action to limit 
the import into the United States of apparel products from Vietnam) 
and expressed his hope that "nothing happens."  The GVN has been 
urging Vietnamese textile manufacturers "not to rush to export goods 
to the United States nor price their wares too low."  On a possible 
bilateral TIFA and GSP, the GVN is "very interested," he added.  As 
for ODA, the GVN is pleased with the ongoing incremental increases 
in USG assistance.  The recent announcement about dioxin-related 
environmental remediation was also welcome, "particularly in dealing 
with certain people," VFM Bang continued.  Vietnam remains hopeful 
that there will one day be a highly visible "U.S. symbol, such as an 
American university," which could be launched on the basis of both 
private and public support. 
 
¶11. (SBU) The GVN agrees that both sides should maintain the 
positive momentum in mil-mil relations and that military sales can 
help in this regard.  Military sales can also serve to lower the 
trade deficit, VFM Bang observed.  In the minds of Vietnam's 
leadership, spare parts for helicopters and armored personnel 
carriers are priorities.  High-tech items and other equipment, such 
as fast patrol boats, are also desirable.  "We understand that the 
United States does not want Vietnam to be weak militarily," VFM Bang 
opined.  As for other forms of mil-mil cooperation, the VFM recalled 
the recent visit of CINCPACFLT Admiral Gary Roughead and noted the 
prospects of future bilateral cooperation in search and rescue, 
meteorological data collection and sharing, humanitarian operations 
and ship-borne fullest possible accounting. 
 
What's on the DPM's Mind? 
------------------------- 
 
¶12. (SBU) Returning to the subject of the DPM's upcoming U.S. visit, 
the Ambassador mentioned that it would be helpful to know what 
issues the DPM plans to raise in order to be fully prepared to 
respond.  For example, USTR has suggested a TIFA as an excellent 
next step in developing our bilateral economic relationship, and the 
Ambassador asked whether DPM Khiem will raise it.  Similarly, it 
would be useful to know whether the DPM will want to discuss the 
issue of opening of new consular facilities in each other's country, 
which has been the subject of some informal discussions.  On dioxin 
 
HANOI 00000367  003 OF 003 
 
 
remediation, we are searching for ways to strengthen our two 
Presidents' commitment in this area, and knowing how the DPM plans 
to raise this matter would be useful.  VFM Bang responded that the 
MFA will not advise the DPM to raise the dioxin matter.  VFM Bang 
went on to note that Vietnam's former Vice President Nguyen Thi Binh 
has been very vocal on this subject and that U.S. support for 
organizing international NGOs to address the "human side" of the 
dioxin problem might "ease the situation." 
 
Law Enforcement Cooperation 
--------------------------- 
 
¶13. (SBU) In terms of law enforcement cooperation, the DEA-MPS MOU 
signed last November was a good step forward, and our recent 
exchanges on money laundering were welcome, the Ambassador noted. 
However, we need to increase our cooperation to address money 
laundering, which now involves a flow of an estimated USD one 
billion per year.  While the USG has at its disposal the ability to 
freeze suspect bank accounts, there are better ways to deal with 
money laundering.  The Ambassador suggested that senior members of 
the DPM's delegation meet with Department of Justice officials to 
discuss this matter further.  VFM Bang responded that it remains 
unclear whether a Ministry of Public Security official will join the 
DPM's delegation; perhaps the Office of the Government 
representative could discuss this.  However, effectively addressing 
the money laundering problem must begin in the United States, VFM 
Bang argued.  The Ambassador responded that better bilateral 
cooperation requires changes in Vietnam's own legislation. 
 
Education ODA? 
-------------- 
 
¶14. (SBU) Recalling Prime Minister Nguyen Tan Dzung's direct request 
to President Bush last November for "education ODA" for Vietnam, and 
the Prime Minister's own recent mention of this to him, the 
Ambassador sought clarification from VFM Bang on what the GVN 
envisions in this area and whether and how the DPM will raise it. 
Expanding the Fulbright program, working with the GVN on English 
language curriculum development or initiating a Peace Corps English 
language program are obvious education-related steps, but it seems 
that the PM has something bigger in mind.  On the question of ODA in 
general, the Ambassador noted that, while the USG has increased the 
total amount of ODA for Vietnam over the years, big ticket 
infrastructure and other items should not be expected, and it would 
not be useful for the DPM to raise this request in Washington. 
 
MARINE