VZCZCXRO6751
RR RUEHHM
DE RUEHHI #0897/01 1361044
ZNR UUUUU ZZH
R 161044Z MAY 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 5369
RUEHHM/AMCONSUL HO CHI MINH 3028

UNCLAS SECTION 01 OF 04 HANOI 000897 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FROM THE AMBASSADOR FOR EAP A/S HILL 
 
E.O. 12958: N/A 
TAGS: PREL PGOV OTRA VM
SUBJECT: SCENESETTER FOR EAP ASSISTANT SECRETARY CHRISTOPHER HILL 
 
 
Introduction 
------------ 
 
¶1. (SBU) Mission Vietnam looks forward to welcoming you back to 
Hanoi May 23-24.  Your visit will be a key event in the lead-up to 
the June visit to Washington by President Nguyen Minh Triet. 
Indeed, I expect your visit to prove instrumental in determining the 
success of that visit by underscoring top-level USG concern over 
human rights and in focusing minds here on what Vietnam will need to 
do to ensure the Triet visit has a positive impact on the 
relationship. 
 
¶2. (SBU) A series of high-level bilateral visits over the past two 
years, including those of President Bush, former Prime Minister Phan 
Van Khai and DPM/FM Khiem, have helped push the bilateral 
relationship to a "higher plane."  Vietnam's desire to expand its 
access to U.S. markets, successfully host APEC and accede to the WTO 
also helped materially strengthen bilateral ties.  Our improved 
relations with Vietnam is clearly in the U.S. national interest.  At 
present, Vietnam is in many ways a singular success story for U.S. 
diplomacy in Southeast Asia. 
 
¶3. (SBU) Vietnam's motivation to seek stronger ties is clear.  Hanoi 
increasingly sees the United States as an important force in 
maintaining a stable regional environment and balancing against 
China.  Key decision makers here have also been convinced that the 
United States a critical source of financial and technical 
assistance, and a huge market for Vietnamese goods, both of which 
are underpinning the nation's enviably high rate of economic growth. 
 
 
¶4. (SBU) We have separately reported via classified channels on the 
current human rights crackdown.  It is clear that the Vietnamese 
have dug a deep hole for themselves by arresting, then publicly 
demonizing, peaceful activists.  Some here are hopeful that the 
strong negative international reaction will help spark a debate over 
Vietnam's future which actually could lead, over time, to positive 
change.  A recent statement by former Prime Minister Vo Van Kiet on 
the need for the regime to "engage" dissidents, in particular, 
heartens the moderates.  However, there will be no sea change over 
the coming weeks.  This fact alone ensures that human rights will 
continue to have a negative impact on our relationship, and by 
extension on the Triet visit.  Using this visit to strengthen 
prospects for continued improvement in governance would be one way 
to offset the fallout from the crackdown.  I believe this is 
possible. 
 
¶5. (SBU) During your visit, we hope you will: 
 
-- acknowledge GVN progress in expanding the space for religious 
belief, but stress that the USG is deeply concerned about the 
ongoing crackdown on political dissent and that the deteriorating 
human rights situation is diverting attention from other areas of 
mutual interest; 
 
-- stress that we should not miss the opportunity to use President 
Triet's visit to advance our bilateral relationship, in particular 
by explicitly confirming our joint resolve to continue, and deepen, 
ongoing programs of technical assistance across the board.  The 
Vietnamese should embrace continued programming in the field of rule 
of law and governance, as well as the implementation of trade 
agreements and new cooperative ventures like the Peace Corps; 
 
-- express USG support for concluding a Trade and Investment 
Framework Agreement (TIFA), and point out that we are dedicated to 
helping Vietnam develop better protection of intellectual property 
rights; 
 
-- applaud our strong cooperation in a number of areas, such as the 
prevention and treatment of HIV/AIDS and Avian Influenza and defense 
issues, and urge further bilateral efforts to combat transnational 
problems such as money laundering; 
 
-- suggest that Vietnam's efforts to take a more active role on the 
world stage, including its aspirations to join the UNSC and to take 
on a greater leadership role in ASEAN, mean that Hanoi will have to 
start taking stands on issues of global concern such as Burma, Iran 
and North Korea; 
 
-- thank the GVN for its cooperation in the fullest possible 
accounting of missing American personnel. 
 
President Triet's visit 
----------------------- 
 
¶6. (SBU) We have made clear to our contacts that any decisions 
related to protocol and other arrangements for President Triet's 
visit belong to the White House, but your interlocutors likely press 
you for a visit with all the "bells and whistles," including a stay 
in Blair House.  Your interlocutors will also likely discuss their 
 
HANOI 00000897  002 OF 004 
 
 
desire for a Joint Statement - to the Vietnamese, a sine qua non of 
any high-level successful overseas trip.  We believe that such Joint 
Statements, while often difficult to negotiate, are useful in 
extracting and honoring commitments, such as those mentioned above. 
 
¶7. (SBU) Before former Prime Minister Phan Van Khai's visit to the 
United States in the summer of 2005, the Vietnamese bureaucracy was 
ordered to be proactive in reaching a number of agreements with the 
United States.  We experienced a similar "focus on deliverables" in 
advance of President Bush's visit here last November.  We have heard 
that Prime Minister Nguyen Tan Dzung has recently given the word 
that the GVN should act now to make President Triet's visit a 
success and ordered Vietnamese officials to take appropriate steps. 
We hope you will stress to your interlocutors the need to take 
action now to ensure that various draft agreements and initiatives 
before us are completed in time for the visit. 
 
¶8. (SBU) For example, we have held talks with the Vietnamese since 
before APEC over establishing a Peace Corps program, purchasing land 
for a new Embassy and concluding a Boeing 787 purchase as well as 
power plant deals with AES and Gannon, and a port development 
project with SSA Marine.  Each of these big ticket deals would 
significantly improve our balance of trade with Vietnam (currently 
running nearly nine to one in Vietnam's favor.)  In addition, for 
almost ten years we have urged the Vietnamese to formally accept 
Congen Ho Chi Minh City's consular district and, more recently, we 
have discussed adding consulates in each other's country.  Top level 
guidance, similar to what we experienced prior to PM Khai's visit to 
the United States, is needed to close out these complicated issues. 
Reinforcing to your interlocutors that reaching agreement in these 
and other areas will help ensure that Triet's visit will be a 
substantive and symbolic success likely will help prompt leaders 
here to push for the necessary action. 
 
Human Rights 
------------ 
 
¶9. (SBU) As you know, we have repeatedly expressed our strong 
concerns and stressed to our senior and working-level interlocutors 
that Vietnamese actions to suppress dissent are damaging to 
Vietnam's national interests.  We also have greatly stepped up our 
diplomatic efforts by pointing out to contacts, and through a 
variety of media, that imprisoning people for merely expressing 
their political views and labeling political dissidents "terrorists" 
is injurious to relations with the United States. 
 
¶10. (SBU) Senator Patrick Leahy recently wrote to President Triet 
and suggested greater bilateral cooperation in the areas of good 
governance, anti-corruption and rule of law.  Senator Leahy's views 
reflect those of a number of senior lawmakers, many of whom have 
been strong supporters of engagement though programs of capacity 
building, technical assistance and exchanges.  We believe that the 
Triet visit could provide a good opportunity to extract explicit GVN 
buy-in towards greater cooperation in these areas that are 
complementary to our "transformational" efforts here.  By ensuring 
that any Joint Statement or other public remarks underscore our 
shared commitment to further engagement on these issues, we can 
frustrate efforts of those in Vietnam intent on torpedoing the 
deepening U.S.-Vietnam relationship. 
 
Religious Freedom 
----------------- 
 
¶11. (SBU) In spite of the arguments of some linking the recent 
crackdown on dissidents to a rollback of progress on religious 
freedom, we can unambiguously state that religious freedoms for 
Vietnam's people continue to improve.  This progress has included: 
registering and recognizing a number of churches, congregations and 
denominations; freeing all the individuals whom we believed were 
imprisoned for religious reasons; and, promulgating and implementing 
a new framework on religion.  Some previously troublesome provincial 
areas, such as the Central and Northwest Highlands, have also showed 
distinct signs of improvement.  For example, Christmas services were 
reported to have gone well in these two areas.  I strongly believe 
that the evidence here continues to support Washington's decision 
last year to list Country of Particular Concern status for Vietnam. 
Your visit can serve to underscore the importance of Vietnam staying 
the course in this regard. 
 
TIFA/TEXTILES/IPR 
----------------- 
 
¶12. (SBU) Since mid-March of this year, the United States and 
Vietnam have been negotiating a Trade and Investment Framework 
Agreement (TIFA), with the aim of having a signing event during the 
Triet visit.  Under the TIFA work plan, USTR has proposed discussing 
such issues as the protection of intellectual property rights (IPR), 
implementation of Vietnam's WTO commitments and other means to 
liberalize and facilitate greater trade and investment.  A TIFA is a 
necessary step towards Vietnam's hoped for participation in the 
 
HANOI 00000897  003 OF 004 
 
 
Generalized System of Preferences (GSP) Program, and we may have a 
TIFA deal by the time you arrive. 
 
¶13. (SBU) You probably will hear complaints from your interlocutors 
or American business representatives about the Department of 
Commerce (DOC) Textile and Apparel Import Monitoring Mechanism. 
They may argue that this mechanism violates the WTO principle of 
non-discrimination and has had a negative impact on trade.  Key 
interlocutors here know that the Department of Commerce is working 
to develop the mechanism in a manner that is as transparent as 
possible and has minimal impact on trade.  Commerce has, and will 
continue to, seek input and comments from all interested parties. 
 
¶14. (SBU) One area of particular concern with Vietnam is 
intellectual property rights (IPR) protection.  USTR has decided to 
maintain Vietnam's listing on its Special 301 "Watch List" for 2007. 
 USTR recognized Vietnam's strong efforts to develop an effective 
IPR legal regime, but enforcement remains weak.  We already have 
provided Vietnam with scores of training and technical assistance 
programs to improve IPR enforcement and protection.  You may wish to 
point out that the United States remains committed to helping 
Vietnam strengthen its legal system and enforcement efforts; we are 
currently working with the GVN on a Letter of Agreement that will 
hopefully enable INL to work with Vietnamese Customs on IPR 
protection.  Provided we complete this in time, this could be 
another Triet visit deliverable. 
 
Health/Environmental Cooperation 
-------------------------------- 
 
¶15. (SBU) Our cooperative efforts to prevent and treat HIV/AIDS and 
Avian Influenza are hallmarks of the bilateral relationship, and we 
hope you will applaud the GVN for the positive steps it has taken to 
address these issues and work closely with us.  GVN officials likely 
will offer thanks for USG support and seek further assistance. 
Leaders here understand the significance of the USD $400,000 in 
assistance we have provided to help start the clean up Danang 
airport's dioxin contamination, but they will press for more 
assistance for victims of dioxin.  The need for a better 
understanding of the science remains, but we are working to find 
acceptable and appropriate ways to deal with this issue, including 
by cooperating with organizations outside the USG.  We remain 
hopeful that USD two million in ESF for dioxin-related programming 
that was in the recently vetoed supplement appropriations bill will 
in the next version. 
 
Defense and Security Cooperation 
-------------------------------- 
 
¶16. (SBU) The Vietnamese are proceeding at a measured pace toward 
more mil-mil cooperation.  Pacific Fleet Commander Roughhead was 
recently in Vietnam to talk about expanding this cooperation, 
including in areas such as search and rescue, naval medicine and 
meteorological information exchanges.  Under the International 
Military Education and Training (IMET) Program, two Vietnamese 
officers recently completed English language training in the United 
States.  They will be instructors in the language lab we intend to 
provide this year.  The GVN sees this program as an important part 
of its preparations for participation, at some point in the future, 
in peacekeeping operations. 
 
¶17. (SBU) As for security assistance, the GVN has voiced enthusiasm 
about the possibility of purchasing from us non-lethal military 
equipment, but are already seeking to move beyond that to more 
high-tech, lethal equipment.  We have urged the Vietnamese to take a 
step-by-step approach, with a focus on spare parts that could be 
used in search and rescue equipment.  To move forward, we first need 
from the Vietnamese an official Letter of Request.  A quick reminder 
from you in this regard would be helpful. 
 
¶18. (SBU) In other areas, we have a nascent nonproliferation 
cooperation program, which primarily comprises building capacity 
among Vietnamese officials.  The Vietnamese for the first time sent 
observers to a PSI event in New Zealand, and we and other countries 
continue to try to persuade them to sign the Statement of 
Interdiction Principles.  In contrast, our law enforcement 
cooperation, which primarily consists of training and working-level 
exchanges, could be deeper, and we continue to strive for greater 
operational cooperation in the future. 
 
Money Laundering 
---------------- 
 
¶19. (SBU) During DPM/FM Khiem's visit to Washington, DEA/DOJ pushed 
for the GVN to revise its Anti-Money Laundering (AML) Decree to meet 
U.S. standards and improve law enforcement cooperation.  We hope you 
hit home this message again.  Vietnam also needs to become a member 
of the Asia Pacific Group and its regional Financial Action Task 
Force (FATF).  FATF membership would be an important signal to the 
international financial community.  As Vietnam seeks to take a 
 
HANOI 00000897  004 OF 004 
 
 
leadership role in the international community and join the UNSC in 
coming years, membership in FATF would signal both the maturity of 
its banking system and the prudence of its leadership. 
 
Vietnam's International Profile 
------------------------------- 
 
¶20. (SBU) Vietnam is seeking to join the UNSC as a non-permanent 
member for the 2008-2009 term, and your interlocutors will likely 
ask you for the USG's support.  While we have been non-committal, we 
made clear that with a stronger international role also comes a 
responsibility to take a stand on certain issues of global concern. 
To date, Vietnam has not yet spoken out about Iran, Burma or North 
Korea, and we have been encouraging the GVN to stake out a more 
proactive stance on these and other matters.  In this regard, the 
GVN's (relatively) critical statement of the DPRK's nuclear test 
last October was a welcome step in the right direction. 
 
Fullest Possible Accounting 
--------------------------- 
 
¶21. (SBU) We continue to enjoy good cooperation with the Vietnamese 
in the fullest possible accounting of our personnel missing from the 
war, but there are a number of issues in which we would like to see 
more progress, including underwater recovery operations (we have 
approval but were unable to complete arrangements for a ship visit 
this spring) and archival access.  We would appreciate if you could 
thank your interlocutors for Vietnam's continued cooperation to date 
and express the USG's hope for further assistance in the future. 
 
A Word on China 
--------------- 
 
¶22. (SBU) I will speak more with you here in Hanoi, but it is worth 
noting that President Triet is in Beijing as we transmit this 
message.  The China dynamic is of obvious importance to Vietnam, and 
there is an understandable competitive flavor to Hanoi's ties to 
Beijing and Washington.  Far from trying to manipulate its two huge 
"partners," however, Vietnam -- understanding its relative power -- 
seeks to balance its ties with each.  With recent heightened 
tensions with China over sovereignty issues, and with us over human 
rights, Hanoi's task is at present not an easy one. 
 
Conclusion 
---------- 
 
¶23. (SBU) Again, we warmly welcome your visit.  It will prove 
critical in shaping Vietnam's attitude and approach to their 
President's trip to Washington and thus the future course of 
bilateral relations. 
 
MARINE