VZCZCXRO6986
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHHI #1438/01 2221724
ZNR UUUUU ZZH
R 101724Z AUG 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 6076
INFO RUEHHM/AMCONSUL HO CHI MINH 3517
RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 03 HANOI 001438 
 
SIPDIS 
 
STATE FOR EAP/MLS 
 
SENSITIVE BUT UNCLASSIFIED 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ETRD PREL PGOV PHUM KIPR EAID VM
SUBJECT: AMBASSADOR'S FAREWELL CALL ON NEWLY-ELECTED OOG CHAIRMAN 
PHUC 
 
 
HANOI 00001438  001.2 OF 003 
 
 
(U) This cable is sensitive but unclassified. Not for Internet. 
 
¶1. (SBU) Summary.  At his August 9 farewell call with Ambassador 
Marine, newly-elected Office of the Government (OOG) Minister 
Chairman Nguyen Xuan Phuc said that PM Dzung has decided that he 
will retain responsibility for oversight of foreign affairs within 
the OOG.  In that role, he looks forward to a continued close 
dialogue with the in-coming Ambassador with regard to major 
bilateral issues.  In particular, he will continue working on a 
Peace Corps Agreement, land for a New Embassy Compound (NEC) and 
closing deals on outstanding commercial projects.  Phuc agreed with 
the Ambassador that the two sides should focus on these areas as 
potential deliverables for the Prime Minister's planned trip to New 
York in September, noting specifically the PM's interest in reaching 
a Peace Corps deal "by August 30."  Phuc said he will likely 
accompany the Prime Minister to New York.  On human rights, the 
Minister Chairman reaffirmed Vietnam's interest in maintaining open 
dialogue and cooperating on rule of law, anti-corruption and good 
governance programs.  He intends to keep the OOG in a position to 
serve as a "clearinghouse" for cross-cutting, inter-ministerial 
issues of importance to the bilateral relationship.  Phuc will also 
serve as Vietnam's Chairman to the U.S.-Vietnam TIFA Council, with 
International Relations Department Director General Bui Huy Hung 
serving as Secretary General.  Phuc's interest and direct engagement 
on these issues, and his evident willingness to cultivate a strong 
personal relationship with senior USG officials, make it likely that 
he will remain a key Embassy contact within the OOG.  End summary. 
 
¶2.  (SBU) During an August 9 farewell call, newly-elected Office of 
the Government (OOG) Minister Chairman Nguyen Xuan Phuc thanked 
Ambassador Marine for his contributions to the bilateral 
relationship over the past three years.  He specifically noted the 
Ambassador's personal involvement in the success of the series of 
high-level leadership exchanges beginning with then-Prime Minister 
Phan Van Khai's 2005 visit to the United States, the conclusion of 
the U.S.-Vietnam agreement on Vietnam's accession to the World Trade 
Organization (WTO) and the recent signing of the Trade and 
Investment Framework Agreement (TIFA).  He also opined that the 
image of the United States Ambassador visiting "distant locations in 
Vietnam" as part of MIA recovery efforts and trips was something 
that had contributed positively to the bilateral relationship in the 
minds of the Vietnamese people. 
 
Phuc's New Position and the Role of the OOG 
------------------------------------------- 
 
¶3. (SBU) Ambassador Marine congratulated Phuc on his recent 
elevation from vice chairman to the position of OOG "Minister 
Chairman," describing the move as a good omen for the future of 
U.S.-Vietnam relations.  The Minister Chairman will be at the heart 
of the government process in Vietnam, the Ambassador continued.  He 
also expressed confidence that Phuc will continue to be a valuable 
interlocutor for the U.S. Government on issues in which we will need 
to remain focused to continue the trend of improved relations.  He 
also expressed the hope that the OOG, along with the five Deputy 
Prime Ministers, will continue to serve as a "clearinghouse" for 
cross-cutting and inter-ministerial issues.  Adoptions, intellectual 
property rights (IPR) protection and increased cooperation on law 
enforcement efforts and HIV/AIDS are a few examples of areas which 
the Ambassador asked OOG to remain involved and serve as a catalyst 
for positive outcomes. 
 
¶4. (SBU) The Minister Chairman agreed that the OOG must continue to 
play the central role in moving complex issues including the ones 
the Ambassador raised to a positive conclusion.  Phuc reported that 
Prime Minister Dzung had decided that, as chairman, he would retain 
responsibilities for foreign affairs within the OOG.  In that role, 
he looks forward to working constructively with Ambassador Michalak 
to develop further the bilateral relationship.  (Note: Phuc said 
there will be "multiple" OOG Vice Ministers under him, though he did 
not provide a specific number or any names.  End note.)  The PM also 
designated Phuc as Chairman of the Vietnamese element of the TIFA 
Council and OOG International Relations Department Director General 
Bui Huy Hung will serve as the Vietnamese committee's Secretary 
General. 
 
PM Dzung's Upcoming Visit to New York 
------------------------------------- 
 
¶5. (SBU) While no final plans have been determined, Phuc expects he 
will accompany the Prime Minister to New York for the opening of the 
United Nations General Assembly in September.  The Government of 
Vietnam (GVN) is "very focused" on this trip, he said, highlighting 
that this will mean Vietnam's two top leaders will each visit the 
United States within months of one another.  The Ambassador 
underscored that this trip will be a good opportunity to advance 
further our relations, and that both sides should focus energy in 
the next month to explore ideas for projects that we can move 
 
HANOI 00001438  002.2 OF 003 
 
 
forward to present as deliverables. 
 
...Presents an Opportunity to Conclude Commercial Deals 
--- --------------------------------------------- ----- 
 
¶6. (SBU) Noting the Prime Minister's expressed interest in meeting 
with U.S. business leaders while in New York, Ambassador Marine 
urged Vietnam to consider how to make the most of this opportunity, 
including the possibility of reaching a breakthrough on commercial 
deals that the two sides have been discussing.  Signings with Boeing 
on aircraft purchases; Gannon and AES on power plant development 
projects; SSA Marine on developing Vietnam's ports; and, agreement 
for Alcoa to partner with Vietnamese enterprises to develop bauxite 
resources here would be good for Vietnam and symbolically important 
to our relationship, the Ambassador said.  Furthermore, these 
signings would help address the growing trade gap between our 
countries.  Referencing a recent news article reporting that 
Vietnam's global trade deficit is growing, the Ambassador noted that 
Vietnam is obviously buying from overseas, but not enough of its 
purchases are the world-class goods and services that U.S. firms 
have to offer.  He continued that given Vietnam's interest in 
building a better relationship, he is confident that this will 
change.  Minister Chairman Phuc replied that all senior GVN 
officials have the list of potential commercial deliverables 
"memorized by heart," and reported that the OOG has been pushing the 
relevant Vietnamese parties to soon conclude these deals. 
 
...And a Peace Corps Agreement and Land Deal for the NEC 
-- --------------------------------------------- -------- 
 
¶7. (SBU) Conclusion of a Peace Corps agreement for Vietnam would 
highlight how the relationship has deepened and become richer in 
recent years, Ambassador Marine said, and should be considered as a 
potential deliverable for the Prime Minister's visit.  Phuc 
responded that the Prime Minister wants the two sides to conclude 
the negotiations successfully, and has informed GVN officials that 
he is interested in completing negotiations by August 30. (Note:  In 
a follow-up conversation, an MFA official told us that the MFA would 
share a GVN draft of a country agreement on August 14.  While he 
hoped that we would make progress, he added a spin to Mr. Phuc's 
remarks, saying that he saw August 30 as a date to report back to 
the Prime Minister on the results.  End note.) 
 
¶8. (SBU) The Ambassador also suggested that a breakthrough on 
negotiations over land in Hanoi for a new U.S. Embassy could be an 
important announcement during PM Dzung's visit.  The United States 
has offered a price for the land, and the Ambassador called on 
Vietnam to make a counter-offer in order to begin serious 
negotiations.  The Minister Chairman agreed that the current Embassy 
is not befitting of our relationship, and tasked the Ministry of 
Foreign Affairs (MFA) Americas Department Deputy Director Nguyen 
Hoanh Nam, in attendance at the meeting, to look into the matter. 
He reported that the Prime Minister assigned the MFA to take the 
lead on negotiations, which Phuc opined are "not a big problem and 
should be concluded soon." 
 
Human Rights 
------------ 
 
¶9. (SBU) An additional issue to work on over the longer-term, and 
one that will certainly be on President Bush's mind should he meet 
with the Prime Minister in September, is improving our ability to 
work together on the issue of human rights, the Ambassador said. 
Ongoing work through the Human Rights Dialogue is an important, 
albeit slower and less visible, answer to this challenge, he 
continued.  One constructive and more visible solution would be for 
the GVN to accept the USG's offer of assistance, expressed through 
Senator Leahy's March letter, to work together on rule of law, 
anti-corruption and good governance programs.  Vietnam's recent 
positive response is a welcome step, but now the two sides should 
transform that commitment into concrete programs that both countries 
support.  The Ambassador said while the programs could take many 
forms, such as training for judges or journalists, one specific idea 
would be for the GVN to provide the support necessary for the 
American Bar Association to move forward with its grant to 
strengthen the capacity of the Vietnam Lawyers Association.  Such a 
move would be a strong signal to the U.S. Congress that Vietnam is 
open to these types of activities.  The U.S. and international 
business communities would also welcome these programs, the 
Ambassador noted, as they would work to make Vietnam a more 
attractive destination for investment. 
 
¶10. (SBU) Phuc responded by saying that as Vietnamese President 
Nguyen Minh Triet told President Bush, the two sides have a 
different understanding of the human rights issue.  Vietnam is, 
however, committed to continuing the dialogue and remains interested 
in working to strengthen the rule of law here.  He pointed to a 
recent OOG delegation to the United States to study U.S. laws and 
 
HANOI 00001438  003.2 OF 003 
 
 
administrative procedures as evidence of that commitment. 
 
Conclusion and Comment 
---------------------- 
 
¶11. (SBU) As the meeting concluded, Minister Chairman Phuc again 
reflected warmly on the Ambassador's contributions, and expressed 
his confidence that both the U.S.-Vietnam relationship and their 
personal relationship would continue to develop.  Phuc's openness 
and frequent availability to meet on issues of bilateral interest 
were important in successfully preparing for the recent visits to 
the United States by Deputy Prime Minister/Foreign Minister Pham Gia 
Khiem and President Nguyen Minh Triet.  Because of this direct 
engagement and his obvious willingness to cultivate a strong 
personal relationship with senior USG officials (Senator James Webb 
is a personal friend), Phuc is certain to continue as an important 
and valued contact in the OOG, including in his new role in the 
TIFA. 
 
MARINE