VZCZCXRO9162
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0534/01 1000427
ZNY CCCCC ZZH
O 100427Z APR 07
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC IMMEDIATE 8302
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEHBJ/AMEMBASSY BEIJING PRIORITY 2446
RUEHUL/AMEMBASSY SEOUL PRIORITY 0628
RUEHKO/AMEMBASSY TOKYO PRIORITY 3147
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY 0681
RHEHNSC/NSC WASHDC PRIORITY 0043

C O N F I D E N T I A L SECTION 01 OF 04 PHNOM PENH 000534 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EAP/MLS; NSC FOR HOLLY MORROW 
 
E.O. 12958: DECL: 04/09/2017 
TAGS: PREL PHUM EFIN ASEAN CB
SUBJECT: CAMBODIAN PM DISCUSSES UPCOMING BURMA TRIP WITH 
DAS JOHN 
 
REF: REFTEL: PHNOM PENH 109 
 
Classified By: Acting DCM Margaret McKean; Reason 1.4 (b), (d) 
 
¶1.  (C)  Summary.  During an April 4-7 visit to Cambodia, EAP 
DAS John met with PM Hun Sen and FM Hor Namhong on US-ASEAN 
relations, the PM's planned visit to Burma in May, North 
Korea, elections, and Cambodia's bilateral debt to the U.S. 
The PM claimed that the ROK and Japan are using Cambodia to 
quietly speak with the DPRK; nevertheless, he said Cambodia 
would support a US-ASEAN Summit statement on the Korean 
Peninsula.  The PM plans to visit Burma from May 21-24, and 
reassured DAS John that Cambodia's policy towards Burma 
mirrors that of the USG.  The PM hopes to meet with Aung San 
Sui Kyi during his trip, and has requested FM Hor Namhong to 
travel to Burma during the first week of May to assess the 
situation and plan for the PM's trip.  Hun Sen was pleased 
with Cambodia's recent commune elections, but noted concerns 
over voter participation and turnout.  On Cambodia's 
bilateral debt to the U.S., the PM said he hopes negotiations 
can be concluded in the near future; Russia is proving to be 
more problematic.  With FM Hor Namhong, DAS John reiterated 
many of the same themes regarding ASEAN.  The MFA and DAS 
John discussed the TAC and prospects for USG consideration. 
End Summary. 
 
North Korea 
----------- 
 
¶2.  (C)  On April 6, DAS John met with PM Hun Sen, who opened 
the discussion by asking about North Korea and prospects for 
continued dialogue.  DAS John mentioned the problems with the 
financial transfer of USD 25 million in DPRK funds held in a 
Hong Kong bank, and noted that the USG anticipated the issue 
would be resolved soon and negotiations would get back on 
track.  Hun Sen responded that he was grateful to hear of USG 
optimism, adding that the North Koreans are in touch with the 
RGC.  He specifically mentioned that the South Korean 
President has requested Cambodia to convey points to the DPRK 
regarding ROK good intentions toward North Korea; Hun Sen 
hinted that the Japanese are also using Cambodia to relay 
messages to North Korea.  The PM added that North Korea 
appears pleased with the position of the South Korean 
government ("maybe because they are both Korean") but the 
North Korean position on the kidnapping issue remains 
problematic for the GOJ.  Hun Sen opined that Kim Jong Il's 
style of governance is no different than that of his father, 
Kim Il Sung, whom he replaced in 1994.  However, the 
Cambodian leader observed that there is no heir apparent to 
Kim Jong Il, and predicted a real change in North Korea once 
Kim Jong Il passes from the political scene -- just as there 
will be in Cuba once Castro dies, he added. 
 
Elections 
--------- 
 
¶3.  (C)  Hun Sen said that he was pleased with the recent 
commune council elections, adding that the lower voter 
turnout has yet to be properly analyzed and explained.  The 
PM offered that some voters -- particularly women and those 
working in the service sector -- may have been unwilling to 
vote and stain their fingers with the indelible ink. He 
mentioned the problems with assembling the voters list and 
the number of ghost voters whose names remain on the voter 
rolls.  The Japanese government has suggested that the RGC 
consider a different computer program for compiling the names 
of voters, and one that could interface with other RGC public 
records (e.g., if a death certificate is filed for a person, 
that voter's name is automatically removed from the voter 
rolls).  Another problem centered on the time of the year, 
with the elections falling during the dry season when many 
workers are in other provinces as guest laborers and are 
unwilling or unable to come back to their districts to vote. 
 
¶4.  (C)  The PM predicted that voter turnout would increase 
in July 2008 during the national elections, as agricultural 
workers will be back in their home provinces looking after 
their own fields at that time.  The PM added that 2008 will 
also be a year for a national census, and the RGC is 
anticipating that the Cambodian population will register an 
estimated 14 million people.  He praised the work of the 
National Election Committee (NEC) in organizing the commune 
elections, and in the NEC's use of radio and television to 
educate people about the importance of voting.  Comparing 
 
PHNOM PENH 00000534  002 OF 004 
 
 
Cambodia to Thailand, the PM said that Cambodia's democracy 
had matured, with regular elections scheduled while their 
neighbor to the west does not yet have a date for future 
elections. 
 
US-Cambodian Relations, ASEAN, Debt 
----------------------------------- 
 
¶5.  (C)  DAS John congratulated the PM on the improved state 
of bilateral relations over the past year and a half.  He 
noted that the USG would like to see increased direct foreign 
investment in the country, which would create the jobs needed 
to keep democracy moving forward.  Cambodia should pay closer 
attention to its international image, he advised, as image 
plays an important component in investors' decisions and can 
help attract investment.  When the U.S. talks about internal 
issues in Cambodia, DAS John continued, it is not designed to 
criticize the Cambodia government but rather to encourage the 
RGC to be more concerned with its image. 
 
¶6.  (C)  The USG wants to expand cooperation in ASEAN, said 
John, whose previous stop was in Singapore.  There, he was 
struck by how much the USG is doing under the Enhanced 
Partnership with ASEAN; more than China -- DAS John added, 
but without as much credit.  The U.S. supports narrowing the 
development gap between ASEAN countries; and in trade, 
health, and the social arena, the USG is doing more 
ASEAN-wide, said John.  The PM agreed that the US-ASEAN 
partnership has worked well, and geographical proximity is 
not as important as the substance of the relationship. 
 
¶7.  (C)  Hun Sen said that USG-RGC relations have grown over 
the past three years, and the recent arrival of Peace Corps 
volunteers is testament to the positive bilateral 
relationship.  Cambodia is interested in greater trade and 
development, and the PM hopes there will be more partnerships 
with the U.S. in these areas.  Chevron has played a role in 
oil and gas exploration, which the RGC hopes will move into 
the exploitation phase soon. 
 
¶8.  (C)  On the bilateral debt, the PM acknowledged that 
Cambodia has an obligation to repay the money and hopes that 
both sides can reach agreement soon.  He noted that the USG 
negotiation has progressed further than Cambodia's talks with 
Russia, and that repayments to the U.S. would not affect 
macro-economic stability.  The PM said that Moscow wants 
Cambodia to repay all of its debt before the GOR will permit 
the IMF to begin a Poverty Reduction and Growth Facility 
(PGRF) program; this would be detrimental to the country's 
economy.  In addition, the loans from Russia initially came 
as interest-free loans; now the Russians want to apply 
commercial interest rates to their repayment, he said. 
 
Burma 
----- 
 
¶9.  (C)  On Burma, DAS John said that the USG had pressed for 
UNSC action on Burma but Russia and China had vetoed the 
draft resolution.  The U.S. continues to believe that the UN 
needs to play a role on Burma, he added.  Recalling the PM's 
January conversation with PDAS Stephens (reftel) in which Hun 
Sen indicated that he had accepted an invitation from the 
regime to visit Burma, John said the USG would welcome RGC 
reinforcement of U.S. policy regarding political prisoners 
and the role of an opposition, the national convention, draft 
constitution, and UN/NGO freedom to operate.  John emphasized 
that Cambodia is in a good position to explain how much a 
country can benefit from making progress in all these areas. 
The U.S. wants to change the dynamic with its relationship 
with Burma, and try to move to a more positive track, said 
John. 
 
¶10.  (C)  Hun Sen responded that Burma has been an irritant 
in US-ASEAN relations as well as ASEAN's relations with 
Europe.  The PM plans to visit Burma from May 21-13, with the 
Foreign Minister going there during the first week of May to 
preview the PM's meetings and plan for Hun Sen's trip.  Hun 
Sen explained that he originally planned to visit Burma in 
conjunction with a trip to India or Japan, but his plans have 
since changed.  The Burmese Prime Minister recently sent a 
special envoy to Phnom Penh with a letter of invitation, said 
the PM, who added that the letter was not necessary since he 
already had a standing invitation from Than Shwe.  The PM 
said he plans to quietly talk with the Burmese leadership, 
 
PHNOM PENH 00000534  003 OF 004 
 
 
and that he understands the psychology of the military. 
Militaries like those in Burma do not appreciate 
international pressure, particularly from the major world 
powers; Hun Sen said they prefer speaking with smaller 
nations.  Thailand currently cannot speak to the Burmese 
military because of the Thai coup d'etat. 
 
¶11.  (C)  The PM promised to push the road map and all the 
USG points raised by DAS John.  He indicated a desire to 
visit Aung San Sui Kyi, and FM Hor Namhong will request that 
Hun Sen meet with ASSK during his trip.  The PM said that 
even if there is no release, it would be a good gesture on 
the part of the regime if Hun Sen is allowed to see her.  Hun 
Sen said he remains undecided about the scope of his meetings 
and how broad they should be, but is inclined to use private 
meetings for the tougher messages.  Any public discussion 
that could cause a loss of face to the Burmese leadership 
will not be productive, he noted.  The regime has taken note 
of Cambodia's National Assembly forming a Burma Caucus, said 
Hun Sen, and understands Cambodia's position on Burma. 
 
¶12.  (C)  Burma can move forward, underscored Hun Sen, but 
one needs to find a way for the regime to do so without 
pushing too hard.  In that event, Cambodia's efforts will not 
succeed, serving to push the regime closer to China and India 
and perhaps force a split within ASEAN, he said.  The key to 
democratic progress is proper balance and a better 
understanding of the situation and the leadership dynamic in 
Burma, maintained Hun Sen.  Burma has disturbed relations 
within ASEAN and with ASEAN partners, he continued, and 
Cambodia -- along with Laos and Vietnam -- have suffered. 
DAS John shared the PM's frustration for the problems created 
by Burma at ASEAN gatherings, adding that President Bush 
regretted being unable to include Laos and Cambodia in Hanoi 
on the margins of the APEC Summit.  In response to the PM's 
question regarding preparations for the US-ASEAN Summit, John 
said that planning is underway but no firm decisions have yet 
been made.  Hun Sen said he understood the difficulty in 
trying to find a suitable date and venue; the PM added that 
Cambodia would agree to a joint statement on the Korean 
peninsula. 
 
DAS John Meeting with Foreign Minister Hor Namhong 
--------------------------------------------- ----- 
 
¶13.  (C)  DAS John opened his meeting later on April 6 with 
Foreign Minister Hor Namhong by noting how much US-Cambodian 
relations had improved since his last visit to Cambodia one 
year ago.  Washington sees Cambodia as an important partner 
in the region and in organizations like the UN and ASEAN. 
Hor Namhong thanked the U.S. for its wide-ranging assistance, 
and was especially enthusiastic about the new Peace Corps 
volunteers.  On the recent elections, the Foreign Minister 
said he was disappointed by the relatively low voter turnout, 
which he believed may be due to a combination of technical 
problems, migration during the dry season, and less 
enthusiasm for commune vs. national elections.  The 
Ambassador expressed concern over a three-week-old request 
from UNHCR to bring Montagnards in Ratanakiri to Phnom Penh 
for interviews and assistance, noting that if permission was 
not granted soon, staff would not be able to travel until 
after Khmer New Year. 
 
¶14.  (C)  The Foreign Minister was very engaged on ASEAN 
topics, and indicated that he would particularly welcome the 
appointment of a U.S. Ambassador to ASEAN and U.S. accession 
to the Treaty of Amity and Cooperation (TAC).  DAS John noted 
that the USG, and particularly the Defense Department, had 
concerns about parts of the treaty that might constrain U.S. 
foreign policy.  However, he noted that the USG attitude 
toward a potential TAC had changed over the past several 
years, from one of focusing on the reasons why it wasn't 
possible to now looking for ways to address potential 
problems preventing the U.S. from signing.  DAS John 
encouraged the Cambodian government to suggest ways that 
ASEAN could narrow the development gap among member 
countries.  He also expressed hope that the ASEAN Charter 
would provide a mechanism for ASEAN to move forward on 
developing an integrated economic policy.  Hor Namhong said 
that the Prime Minister will speak frankly with Burmese 
leaders about how opening their society and democratizing is 
in the interest of Burma and all of ASEAN, and would hold up 
Cambodia as an example of a country that has succeeded at 
national reconciliation.  Hor Namhong outlined Cambodia's 
 
PHNOM PENH 00000534  004 OF 004 
 
 
main challenges as ASEAN integration, using economic 
development to reduce poverty, and improving relations with 
the U.S. 
 
¶15.  (U)  DAS John did not have an opportunity to clear this 
message before departure. 
MUSSOMELI