INFO  LOG-00   EEB-00   AF-00    AID-00   AMAD-00  CIAE-00  COME-00  
      CTME-00  INL-00   DOTE-00  PERC-00  DS-00    EXIM-01  OIGO-00  
      E-00     FAAE-00  VCI-00   H-00     TEDE-00  INR-00   IO-00    
      LAB-01   L-00     MOFM-00  MOF-00   VCIE-00  NSAE-00  OES-00   
      OIC-00   OMB-00   NIMA-00  PA-00    PM-00    GIWI-00  MA-00    
      FMPC-00  IRM-00   STR-00   TRSE-00  NCTC-00  BBG-00   SCRS-00  
      PMB-00   DSCC-00  PRM-00   DRL-00   NFAT-00  SAS-00   FA-00    
      SWCI-00  SEEE-00    /002W

   
O 201058Z AUG 09
FM AMEMBASSY VIENTIANE
TO SECSTATE WASHDC IMMEDIATE 2751
INFO ASSOCIATION OF SOUTHEAST ASIAN NATIONS PRIORITY
CDR USPACOM HONOLULU HI PRIORITY
USMISSION USUN NEW YORK PRIORITY 
SECDEF WASHINGTON DC PRIORITY

C O N F I D E N T I A L VIENTIANE 000406 
 
 
E.O. 12958: DECL: 08/19/2019 
TAGS: BM ECON ETRD EXIM LA PGOV PHUM PREL
SUBJECT: SENATOR JIM WEBB'S VISIT TO LAOS 
 
Classified By: Classified by Charge d'Affairs a.i. Peter M. 
Haymond for Reasons 1.5(b) and (d) 
 
 
Summary 
------- 
 
¶1. (C) GOL interlocutors warmly welcomed Senator Jim Webb,s 
August 12-14 visit to Vientiane.  Deputy Prime Minister and 
Foreign Minister Thongloun Sisoulith discussed GOL views of 
Burma and asked that the U.S.-Lao comprehensive bilateral 
dialogue be raised to a higher level.  Senator Webb also 
heard encouraging words from the Lao officials about 
increased engagement with the U.S. on mil-mil cooperation -- 
including UXO clearance, POW/MIA accounting, and increased 
training; as well as on trade and investment -- including 
Laos' WTO accession bid, implementation of the U.S.-Lao BTA, 
and the Lower Mekong Initiative.  At his well attended press 
conference, Senator Webb stressed USG interest in Southeast 
Asia and desire to engage with all the countries in the 
region.  END SUMMARY. 
 
¶2. (U) Senator Jim Webb traveled to Laos August 12 ) 14, 
2009, to demonstrate continued USG interest in the region and 
in Laos.  He met with Deputy Prime Minister and Foreign 
Minister Thongloun Sisoulit, Industry and Commerce Vice 
Minister Khemmani Pholsena, Ministry of National Defense 
Permanent Secretary Brigadier General Sisophonh 
Bangonesengdet, and Chairman of the National Assembly Law 
Committee Keyoun Nhotsayviboun.  The Senator also received a 
briefing from the Mekong River Commission, conducted a 
business roundtable with American and Lao businesspeople, and 
held a press conference. 
 
MFA: Concern, but treading lightly on Burma 
------------------------------------------- 
 
¶3. (C) When Senator Webb mentioned his upcoming visit to 
Burma, Deputy PM Thongloun Sisoulith advised that he had 
discussed the situation in Burma with fellow regional Foreign 
Ministers, the UN Secretary General, and UN Special Envoy 
Gambari.  DPM Thongloun described the situation in Burma as 
very fragile, saying that actions regarding Burma must be 
taken very carefully.  Noting international concern over 
Burma, he allowed that he also was concerned.  He told the 
Senator that Laos closely follows developments in Burma and 
worries about the effect on Laos were something to happen in 
Burma.  DPM Thongloun underscored the difficulty of managing 
130 ethnic groups in Burma, many of them armed and seeking 
autonomy, and expressed hope Burma would complete its roadmap 
to democracy and hold elections in 2010. 
 
¶4. (C) Senator Webb noted he had supported for some time 
talks with the Burmese regime, but that the current situation 
made it more difficult for the U.S. to change policy. 
Senator Webb remained hopeful for stability in the country, 
though he was aware of the challenge posed by the different 
ethnic groups.  He said if the world believes the 2010 
elections were fair, Burma could be on its way to rejoining 
the world community. 
 
MFA: Praise for cooperation,request to raise dialogue level 
--------------------------------------------- -------------- 
 
¶5. (SBU) DPM Thongloun applauded improved U.S.-Lao relations 
and praised the USG,s renewed focus on Southeast Asia.  He 
reported that he had discussed with Secretary Clinton in 
Phuket ways to further enhance relations.  He pointed to the 
2008 exchange of Defense Attaches and cooperation in drug 
control, UXO clearance, and the search for MIA soldiers as 
solid achievements.  In that context, DPM Thongloun stressed 
Laos' need for increased UXO clearance resources.  He also 
made a point of reiterating GOL interest in raising the level 
of the U.S.-Lao comprehensive bilateral dialogue (CBD). 
(Note:  During a meeting in New York earlier this year, post 
understands DPM Thongloun told former EAP A/S Chris Hill that 
the GOL would like to raise the CBD from DAS to A/S on the 
U.S. side.  End note.) 
 
¶6. (U) Senator Webb recounted his work since 1991 to improve 
relations between the U.S. and Southeast Asia, and the 
discussions he had with the Secretary and President on this 
topic while they were still U.S. Senators.  He called U.S. 
support for the work on UXO clearance a humanitarian 
obligation to help innocent victims of past conflict. 
 
MND: Appreciate U.S. Engagement 
-------------------------------- 
 
¶7. (SBU) Calling Laos important for the U.S. future role in 
Southeast Asia, Senator Webb opened the meeting with 
Brigadier General Sisophonh Bangonesendet, Permanent 
Secretary, Ministry of National Defense by underscoring 
positive cooperation on the POW/MIA mission and by 
acknowledging the long-term benefits of training and 
exchanges between the two countries' militaries. He also 
stressed again the humanitarian obligation to assist Laos in 
clearing unexploded ordinance.  Senator Webb hoped the 
lessons learned from building a very positive bilateral 
relationship with Vietnam could be used to also more rapidly 
broaden U.S. relations with Laos. 
 
¶8. (SBU) BG Sisophonh thanked the U.S. for training the Lao 
military in the English language, for contributing money to 
fight drug use and trafficking, and for providing 
humanitarian assistance.  He called the exchange of Defense 
Attaches in 2008 a sign of increased good relations and 
called for further strengthening cooperation. 
 
MoIC: Seek U.S. Assistance, Understanding on WTO Accession 
--------------------------------------------- ------------- 
 
¶9. (SBU) Vice Minister Khemmani Pholsena, the GOL's point 
person for WTO accession, welcomed the removal of Laos from 
the U.S. Ex-IM Bank "blacklist" of countries and indicated 
the GOL wants to work with the USG on the next steps to make 
Ex-Im financing available to U.S. companies trading with 
Laos.  The GOL was grateful for USG assistance to help Laos 
accede to the WTO, she said, noting that Laos is the only 
ASEAN country not already a WTO member.  Vice Minister 
Khemmani also asked for USG understanding as Laos works to 
fully implement the bilateral trade agreement, as some BTA 
commitments will be very difficult to carry through in a WTO 
context.  Senator Webb noted the dramatic changes he had seen 
in Vietnam,s economy over the past two decades, and 
expressed his hope that the Lao economy would follow a 
similar path. 
 
National Assembly 
----------------- 
 
¶10. (SBU) National Assembly Law Committee Chairman Keyoun 
Nhotsayviboun also expressed appreciation for the removal of 
Laos from the Ex-Im Bank blacklist and for U.S. assistance to 
the GOL in writing, translating, and implementing new laws. 
Becoming a member of the WTO is particularly important for 
Laos, he said.  Chairman Keyoun called UXO removal in part a 
poverty reduction program because UXO impedes development of 
many Lao regions, and he thanked the U.S. for its assistance 
in this area.  He also urged Senator Webb to promote U.S. 
investment opportunities in Laos.   Senator Webb noted the 
U.S. obligation to help with UXO removal and hoped the 
assistance that the U.S. provided to the Vietnamese legal 
system could be replicated in Laos. 
 
Mekong River Commission and Business Roundtable 
--------------------------------------------- -- 
 
¶11. (SBU) At a roundtable session, Senator Webb heard from a 
group of American and Lao businesspeople who have learned to 
navigate the shoals of the Lao business environment.  The 
businesspeople discussed the difficulties of customs 
clearance for incoming and outgoing merchandise, the 
sometimes recalcitrant Lao bureaucracy, and the uneven 
abilities of the Lao workforce.  Some underscored the limited 
availability of investment opportunities because of the small 
population base and narrow Lao economy.  Senator Webb 
described many of the complaints as similar to those he heard 
in Vietnam fifteen years ago.  He reasoned that Laos could 
similarly accelerate economic growth if an improved legal 
framework were put into place. 
 
¶12. (U) The Mekong River Commission (MRC) briefed the Senator 
on its structure and activities, especially its work on 
coordinating and information sharing on food security, 
energy, and livelihoods in the Mekong River area.  The 
Commission also told the Senator about its recent signing of 
a letter of intent (LOI) with the Mississippi River 
Commission and its eagerness to participate in implementation 
of the Lower Mekong Initiative. 
 
Media Coverage 
-------------- 
 
¶13. (U) Senator Webb held a press conference on August 13, at 
which 16 reporters from Lao-language and English-language 
press and television attended.  He emphasized the renewed 
engagement of the USG in the Southeast Asian region and the 
importance of ASEAN as a regional organization.  Local media 
covered Senator Webb's visit extensively throughout his 
visit, and the press conference was featured in three 
Lao-language papers and the main English language paper. 
 
Comment 
------- 
 
¶14. (SBU) Senator Webb was warmly received at every Vientiane 
event, with Lao government officials expressing particular 
appreciation for his visit and stressing their desire to have 
further enhance relations with the U.S. and open up to the 
world economy.  Lao interlocutors fully took on board the 
message of renewed interest in the region that Senator Webb 
brought with him and expressed a desire for increased 
cooperation with the U.S. 
 
 
HAYMOND