VZCZCXRO7897
RR RUEHCHI RUEHCN RUEHDT RUEHHM
DE RUEHHI #0277/01 0670428
ZNR UUUUU ZZH
R 070428Z MAR 08
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC 7364
INFO RUEHHM/AMCONSUL HO CHI MINH 4409
RUEHKO/AMEMBASSY TOKYO 5838
RUEHUL/AMEMBASSY SEOUL 3296
RUEHBJ/AMEMBASSY BEIJING 7077
RUCNDT/USMISSION USUN NEW YORK 0191
RUEHZS/ASEAN REGIONAL FORUM COLLECTIVE

UNCLAS SECTION 01 OF 05 HANOI 000277 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS 
 
E.O. 12958: N/A 
TAGS: PREL PGOV OTRA ECON ETRD CONS VM
SUBJECT: ASSISTANT SECRETARY HILL VISIT TO VIETNAM 
 
HANOI 00000277  001.2 OF 005 
 
 
¶1. (SBU) Summary: In a March 2-3 visit to Hanoi, Assistant Secretary 
for East Asia and Pacific Affairs Christopher R. Hill met with the 
GVN Ministry of Foreign Affairs (paras 2-12) and National Assembly 
(paras 13-15), the Communist Party of Vietnam (paras 16-20), 
religious leaders (paras 21-23), nongovernmental experts (paras 
24-26), AmCham and the press.  In his GVN meetings he discussed a 
possible visit by Prime Minister Dung to the United States, raised 
human rights issues and concerns over adoptions, and pushed for GVN 
support for a New Embassy Compound in Hanoi.  On regional issues, 
both governmental and nongovernmental interlocutors expressed a 
desire for the United States to play an active role in supporting 
Vietnam's position in its confrontation against China in the South 
China Sea.  MFA and Party leaders confirmed that, while an 
invitation had been extended for the DPRK's Kim Jong Il to visit 
Vietnam, no date had been set.  A/S Hill's visit received extensive 
and positive media coverage (para 27).  End summary. 
 
MFA: No Dates for PM Visit to Washington 
---------------------------------------- 
 
¶2. (SBU) A/S Hill's meeting and subsequent dinner with Vice Foreign 
Minister Dao Viet Trung were also attended by Northeast Asia 
Department Director Bui Trong Van, Policy Planning Department 
Director Bui Thanh Son and Americas Department Deputy Director Ha 
Kim Ngoc.  VFM Trung began by expressing the GVN's appreciation for 
President Bush's invitation to Prime Minister Nguyen Tan Dung to 
visit the United States this year.  He emphasized the value that the 
GVN places on such contacts between our leaders and confirmed that 
the PM's office is still working on his schedule.  Trung said the 
GVN would welcome a specific proposal regarding the timing of the 
visit.  A/S Hill said the President is looking forward to hosting PM 
Dung in Washington and pointed out that after July/August, arranging 
a visit would be increasingly difficult in an election year. 
Concerning the substance of the visit, A/S Hill mentioned 
educational cooperation, Vietnamese participation in GPOI, an 
investment treaty and land for a new U.S. Embassy in Hanoi as areas 
that could yield potential deliverables for the trip. 
 
¶3. (SBU) Hill noted that the current U.S. Embassy did not adequately 
reflect the importance that the U.S. attaches to our bilateral 
relationship.  Trung responded that the GVN was helping the U.S. 
Embassy secure its future site in the Ciputra area of Hanoi, but the 
GVN also needs USG attention to its need for a new embassy in 
Washington.  The GVN welcomes information on the possibility of the 
USG opening a consulate in Danang; at the same time the GVN hopes to 
open another consulate in the United States and will send the 
relevant information soon. 
 
¶4. (SBU) Hill noted the need to work together on the problematic 
issue of adoptions, where the USG has serious concerns about the 
process in Vietnam.  Trung responded that the GVN takes note of USG 
concerns; the Ministry of Justice has the lead on this issue and is 
taking the necessary measures. 
 
GVN Wish List for Further Economic Cooperation 
--------------------------------------------- - 
 
¶5. (SBU) VFM Trung ran down a lengthy list of initiatives in the 
areas of trade and economic cooperation, many of which are already 
in train, that the GVN would like to pursue.  After citing the 
positive outcome of the first TIFA negotiations, Trung urged further 
strengthening of bilateral cooperation in the areas of trade, 
investment, science, technology, education and training.  He also 
asked for continued U.S. assistance in support of Vietnam's economic 
development; removal of the temporary apparel monitoring mechanism; 
granting of GSP and recognition of market economy status; a 
bilateral investment treaty that addresses double taxation and 
customs issues; and USG encouragement of U.S. companies to invest in 
Vietnam.  On the GSP issue, A/S Hill noted that labor and other 
concerns will need to be addressed.  On market economy status, he 
suggested further consultations; talks continue on a bilateral 
investment treaty, and the taxation issue will require further USG 
interagency consultation. 
 
GVN Welcomes Progress in Security Cooperation 
--------------------------------------------- 
 
¶6. (SBU) Noting past progress in strengthening bilateral defense and 
security cooperation, VFM Trung predicted that a visit to Vietnam 
later this year by the Secretary of Defense would yield "special" 
progress.  He cited the increased frequency of naval ship visits to 
Vietnam during 2007, adding that arrangements are under way for more 
visits during 2008.  VFM Trung expressed hope that the United States 
would reduce the restrictions on Vietnam's procurement of U.S. 
 
HANOI 00000277  002.2 OF 005 
 
 
defense equipment, noting the GVN's desire to obtain coastal 
surveillance equipment from the United States and/or other 
countries.  A/S Hill noted that while sales of non-lethal defense 
equipment are possible, he was not aware of a request for 
surveillance equipment, which will require review. 
 
VFM Calls for "Objective" View of Human Rights 
--------------------------------------------- - 
 
¶7. (SBU) A/S Hill noted the next bilateral human rights dialogue 
will take place in May, saying we hope to make progress and reduce 
our differences on this issue.  VFM Trung responded that the GVN 
hoped for an "objective and practical" dialogue that reflects the 
reality of the situation in Vietnam.  He noted that the GVN favors 
and encourages the spiritual life of the Vietnamese people, 
illustrating the point with statistics showing the number of 
religious organizations recently recognized and churches registered. 
 He hoped to see a reduction in our differences over religious 
freedom and human rights issues. 
 
¶8. (SBU) The VFM noted that imprisoned dissidents Nguyen Van Ly, 
Nguyen Van Dai and Le Thi Cong Nhan had violated Vietnam's security 
laws and had been brought to court, but that the principle of 
leniency had been applied, particularly to "first offenders" Dai and 
Cong Nhan.  Imprisoned Amcit activist Nguyen Quoc Quan is being held 
for investigation under charges of committing a terrorist act and 
entering Vietnam using false identification.  He is in good health 
with proper accommodation and has received consular visits.  Trung 
said arrangements might be made for Quan's wife to visit him in 
prison if MFA is given the details of her proposed visit. 
 
¶9. (SBU) The VFM urged that Congress not pass the Vietnam Human 
Rights Act and that the U.S. Government take a tougher stand against 
"terrorist" groups such as the Viet Tan and the Government of Free 
Vietnam, groups whose activities "threaten Vietnam's security."  He 
warned that U.S. views on the activities of these groups "affect 
public opinion" in Vietnam and could have a negative impact on 
bilateral relations.  A/S Hill responded that the United States has 
"no interest at all" in supporting anyone trying to overthrow the 
GVN.  Noting that Vietnam's human rights situation is of serious 
concern in the United States, he urged the GVN to continue working 
hard to improve its record in this area. 
 
Regional Issues: South China Sea, DPRK, Burma 
--------------------------------------------- 
 
¶10. (SBU) Concerning the South China Sea, VFM Trung said China's 
recent activities violate Vietnam's sovereignty, and are 
inconsistent with both the two countries' leaders' views and the 
ASEAN Declaration of Conduct.  Both the Vietnamese public and 
leadership are concerned about the current situation and the GVN 
continues to pursue a solution through diplomatic channels.  VFM 
Trung asked that the USG urge U.S. companies to implement their 
projects in the area, and to work with other countries whose 
commercial interests are similarly threatened by Chinese action. 
Vietnam will "take effective measures to protect its sovereignty and 
insure the implementation of these projects," said Trung.  He noted 
the importance of maritime routes that pass through the area and 
expressed the hope that the United States would actively contribute 
to "maintaining the status quo."  VFM Trung specifically asked for a 
U.S. statement endorsing peace and stability in the area and urging 
countries to refrain from threats and to respect the Declaration of 
Conduct.  A/S Hill said the USG is concerned about Chinese pressure 
on U.S. companies.  The USG has raised our concerns with Beijing, he 
noted, adding that to play a more productive global role, China 
needs to move its foreign policy beyond focusing only on pursuit of 
energy and natural resources. 
 
¶11. (SBU) Concerning the DPRK, VFM Trung said the GVN appreciates 
progress on the Korean peninsula and, as a UN Security Council 
member, will support efforts for peace and stability in Korea.  He 
said that while DPRK leader Kim Jong Il had accepted CPV General 
Secretary Nong Duc Manh's October 2007 invitation to visit Vietnam, 
 
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no specific date for a visit has been set.  Such a visit would be 
welcomed by the GVN and would move the Vietnam-DPRK relationship to 
a "new phase," as well as benefiting peace and security in the 
region.  A/S Hill emphasized the urgency of getting the DPRK to 
relinquish its nuclear weapons for the sake of security in Northeast 
Asia. 
 
¶12. (SBU) As a fellow ASEAN member, Vietnam would welcome political 
reconciliation in Burma, VFM Trung said.  He expressed appreciation 
for the Burmese Government's efforts to implement its roadmap for 
democracy and its promotion of reconciliation.  Trung mentioned that 
 
HANOI 00000277  003.2 OF 005 
 
 
he had traveled to Burma in December 2007 for political 
consultations, during which he urged Burma to allow UN Special Envoy 
Ibrahim Gambari's speedy return.  A/S Hill emphasized that keeping 
Aung San Suu Kyi under house arrest undermines genuine 
reconciliation.  He expressed disappointment that Burmese leaders 
had not shown interest in pursuing a genuine dialogue with the 
United States prior to the events in August 2007, and said the U.S. 
public would not understand overtures to a government that continues 
to oppress Aung San Suu Kyi, Buddhist monks and others. 
 
Assembly Pushes Trade, Investment, Technical Assistance 
--------------------------------------------- ---------- 
 
¶13. (SBU) In a meeting at the National Assembly (NA), Foreign 
Affairs Committee Chairman Nguyen Van Son praised improvements in 
the USG-GVN bilateral relationship but stated that, from the GVN's 
perspective, it was still "below its potential."  Son specifically 
expressed the GVN's desire for a greater U.S. trade and investment 
relationship, stating that U.S. investment in Vietnam was "lacking." 
 Hill noted that the United States was Vietnam's largest export 
market, and growing. 
 
¶14. (SBU) Son noted the Ambassador's work to increase the number of 
Vietnamese students going to the United States, and pledged 
Vietnam's cooperation in expanding the bilateral education 
relationship.  The NA is also interested in expanding defense 
cooperation, inter-Parliamentarian exchanges and obtaining USG 
technical assistance on lawmaking.  Son stressed that the NA wanted 
to "learn from the U.S. Congressional system" and seeks technical 
expertise in the legislative process, as the NA is pushing for 
extensive legislative and legal reform in the years to come.  Asked 
by the Ambassador for details, Son did not identify a specific area 
of technical assistance but suggested a possible exchange of 
delegations with the U.S. Congress to begin this effort. 
 
¶15. (SBU) A/S Hill congratulated Son on the NA's work on expanding 
civil society and public transparency in Vietnam.  He cited the 
value of having more members of the U.S. Congress to visit Vietnam 
to see the changes that have taken place.  Son added that all 
members of the U.S. Congress were welcome to Vietnam, and noted the 
several delegations that he had received in the past year.  Chairman 
Son asked A/S Hill to convey to both the SFRC and HFAC the NA's 
desire to work together to further promote the bilateral 
relationship.  A/S Hill noted the March 12 Senate Foreign Relations 
Committee (SFRC) hearing on Vietnam at which he would be testifying, 
and said the SFRC hearing would be a good venue to convey this 
message to the U.S. Congress, and that he would also convey this to 
other interested USG agencies in Washington. 
 
Warm (Polish) Welcome From Party 
-------------------------------- 
 
¶16. (SBU) Assistant Secretary Hill received a warm welcome from Ta 
Minh Chau, Deputy Chairman of the External Relations Commission of 
the Communist Party of Vietnam (CPV).  Both former ambassadors to 
Poland, Chau and Hill conversed for a few minutes in Polish before 
returning to their native languages for the discussion. 
 
¶17. (SBU) Chau highlighted Vietnam's economic focus on achieving 
growth of 8.5 percent and reaching the target of $900 USD per capita 
GDP, as well as expanding international trade, noting that foreign 
direct investment in Vietnam reached $21 billion USD in 2007.  A/S 
Hill commented that the U.S. was also pleased with Vietnam's 
economic development and the entrance of U.S. companies into the 
Vietnamese market. 
 
¶18. (SBU) Underscoring Vietnam's increasing role in the 
international arena, Chau noted Vietnam's efforts to broaden its 
multilateral and bilateral relations with other countries, with a 
particular focus on increasing consultations with members of the UN 
Security Council.  Chau emphasized that Vietnam recognizes the 
gravity of its role as a non-permanent member of the UNSC and will 
do utmost to fulfill this responsibility. 
 
¶19. (SBU) Chau stressed that the CPV and the GVN attach great 
importance to the U.S.-Vietnam bilateral relationship and noted that 
the CPV would like to see more interaction between U.S. 
organizations and Vietnamese mass organizations (CPV organizations 
focused on promoting and caring for various sectors of society, 
including veterans, youth, and women).  The CPV is very pleased to 
see members mass organizations going to U.S. as increased cultural 
exchanges promote understanding on both sides. 
 
¶20. (SBU) On the topic of North Korea, Chau noted that CPV General 
 
HANOI 00000277  004.2 OF 005 
 
 
Secretary Nong Duc Manh visited North and South Korea during 
 
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separate trips in 2007 and that Vietnam hopes to contribute to 
reconciliation between the two sides.  Vietnam welcomed progress in 
the Six-Party Talks and is willing to play a constructive role in 
the process.  A/S Hill remarked that we hope North Korea chooses to 
follow Vietnam's example of economic development instead of pursuing 
nuclear weapons.  Chau responded that, in reply to North Korea's 
expressed interest, Vietnam is ready to exchange information and 
expertise and cooperate further in areas of agriculture production 
and aquacultural production, including fish and shrimp farming. 
Chau told A/S Hill that Vietnam will welcome a delegation of North 
Korean officials in the first half of 2008, but North Korea has not 
yet responded to the CPV General Secretary's invitation to President 
Kim Jong Il to visit Vietnam. 
 
Church Leaders: Progress But Problems Remain 
-------------------------------------------- 
 
¶21. (SBU) Assistant Secretary Hill met with Pastor Au Quang Vinh, 
General Secretary of the Evangelical Church of Vietnam - North 
(ECVN), and Catholic Father Chu Van Minh, Rector, Hanoi St. Joseph's 
Major Seminary.  Vinh said that while the GVN had made an effort to 
improve religious freedom, its efforts slowed after Vietnam was 
removed from the Countries of Particular Concern list in 2006 and 
joined the World Trade Organization in 2007.  Negative language in 
GVN training materials for local officials continues to be 
problematic, the policy for registration of congregations is 
sometimes arbitrary, and the Protestant church continues to wait for 
permission to print Bibles in the Hmong language for ethnic minority 
followers.  The GVN continues to stall in responding to property and 
land requests, making it difficult for the church to build new 
facilities.  Minh said that in recent years the GVN permitted the 
opening of six Catholic seminaries and the Catholic Church is now 
building two more.  The GVN has also given permission to build 
and/or renovate Catholic churches, although a number of property 
disputes remain unresolved. 
 
¶22. (SBU) When asked why the GVN creates difficulties for religious 
organizations, Vinh responded that the GVN views Christian religions 
as "too Western;" Protestantism in particular is seen as "too 
American" and a path to "peaceful evolution" for foreign forces to 
overthrow the state.  Minh remarked that, in the past, the GVN 
thought all religion was anti-government and went on to note that if 
the U.S. speaks publicly too often about religious freedom, the GVN 
will come to believe that religion is an ally of "foreign forces." 
 
 
¶23. (SBU) In response to Assistant Secretary's Hill's inquiry as to 
how the U.S. might help, Minh responded that the U.S. should 
encourage the GVN to think of religious followers as regular 
citizens of Vietnam who can help the nation with technical expertise 
on social issues.  Religious freedom also means freedom to carry out 
charitable and social activities in the areas of poverty 
alleviation, education, health care and disaster relief.  Vinh added 
that when the church is permitted to conduct charitable activities, 
the GVN often adds conditions and restrictions and monitors them 
closely to see if there is any ulterior motive behind the activity. 
Vinh said the U.S. should also focus on political reform as the path 
to full religious freedom.  He recommended the U.S. continue to 
contact religious organizations to discuss operational problems and 
raise these issues with the GVN during the annual Human Rights 
Dialogue. 
 
Lunch with Nongovernmental Experts 
---------------------------------- 
 
¶24. (SBU) Ambassador Michalak hosted a luncheon for A/S Hill with 
several leading non-governmental experts on education, the economy, 
media and international relations.   The free-flowing discussion 
covered issues ranging from growing internet use throughout the 
country to legal reform.  With 25 percent of Vietnamese reportedly 
online, access to the internet in Vietnam is higher per capita here 
than in other countries in the region.  The editor of VietnamNet 
noted that his major online news site now receives over 100 million 
page hits per day, and the group also discussed the growing 
popularity of blogs in spreading "non-traditional information". 
 
¶25. (SBU) In response to A/S Hill questions about the education 
system and other areas of reform, one participant contended that 
Vietnam's system of higher education in particular was "in crisis." 
While the Ministry had delineated a number of goals for the next 12 
years, major details such as financing had yet to be addressed.  For 
example, while Vietnam spends close to 30 percent of its GDP on 
education (extremely high in the region and beyond) that expenditure 
 
HANOI 00000277  005.2 OF 005 
 
 
was not being managed effectively and failed to produce the expected 
results of such an outlay.  Another area of critical need 
highlighted by the group was legal reform and the government's role 
in managing civil society and environmental needs.  According to one 
guest, the CPV recognizes the urgent need for the Party to examine 
the effectiveness of its role in the economy and society, and was in 
the process of conducting an internal study on how it might more 
effectively encourage economic growth and social development. 
 
¶26. (SBU) Participants raised the issue of Vietnam's dispute with 
China in the South China Sea and echoed the MFA's call for the 
United States to take a public stand in support of Vietnam on the 
issue.  A/S Hill expressed caution about the utility of the United 
States taking a strong public stand on the issue.  An active ASEAN 
role and efforts from the countries involved could help to 
peacefully resolve the issue. 
 
Extensive and Positive Press Coverage 
------------------------------------- 
 
¶27. (SBU) Coverage of A/S Hill's visit in the Vietnamese news was 
the most extensive of an official visit since this APEC summit in 
November 2006, and was generally positive and accurate.  In addition 
to extensive national coverage in all major print dailies, reports 
of his visit and interview with Vietnam Television (VTV) were 
carried on both the 7 p.m. and 11 p.m. national news broadcasts. 
(Note: Estimated daily viewership for the 7 p.m. program alone is 
estimated at 20 million Vietnamese.)  In addition, both major online 
news outlets, VietnamNet and TienPhong Online (the former which 
receives 100 million page hits per day) carried stories on A/S 
Hill's visit and press conference.   Literally millions of 
Vietnamese saw coverage of A/S Hill's visit to Vietnam and his 
positive message on the bilateral relationship. 
 
MICHALAK