US embassy cable - 03HANOI2260

UNCLAS SECTION 01 OF 02 HANOI 002260 
 
SIPDIS 
 
STATE FOR NEA/NGA, PM/PMAT, EB-Iraq Task Force, IO/UNP, 
EAP/BCLTV and EAP/RSP 
 
BAGHDAD FOR ROBIN RAPHEL AND SUSAN HAMROCK 
 
NSC FOR KAREN BROOKS 
 
DOD FOR ISA/LEW STERN 
 
E.O. 12958: N/A 
TAGS: PREL, PTER, EAGR, EAID, IZ, VM 
SUBJECT:  VIETNAM AND IRAQ 
 
Ref:  Hanoi 2240 
 
1. (U)  Summary: Vietnamese Ambassador to Iraq (resident in 
Amman for the past six months and now sitting back in Hanoi) 
Nguyen Quang Khai is planning to return to Baghdad at Prime 
Minister Phan Van Khai's request on September 13 for a 
meeting at the Iraqi foreign trade ministry.  Ambassador 
Khai intends to discuss the shipment to Iraq of 15,000 tons 
of Vietnamese tea (worth about USD20 million, he noted) 
currently languishing in warehouses in Vietnam, as well as 
future contracts to deliver Vietnamese rice.  Additionally, 
MFA officials discussed two Iraqi-Vietnamese joint-venture 
companies in Vietnam, a planned USD500,000 contribution in 
kind by Vietnam to Iraq, support for U.S. troops in Iraq, 
and the closure of the Iraqi Embassy in Hanoi.  Septel will 
address these and other agricultural issues and provide some 
action requests.  End summary. 
 
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VIETNAMESE TO IRAQ 
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2. (U) At a luncheon hosted by Ambassador Khai and including 
MFA West Asia-Africa Director Ha Huy Thong, US-Vietnam 
Section chief Tran Thi Bich Van, Pol/C, and poloff, Khai 
told Ambassador that, at the request of Prime Minister Pham 
Van Khai (reftel), he was headed back to Amman shortly and 
would make the drive from Jordan to Baghdad September 13. 
He noted that he would be accompanied by the Director 
General of Vinatea (Vietnamese state-owned enterprise 
producing tea) and a representative of PetroVietnam.  Khai 
said the PetroVietnam representative was going on the 
invitation of Thamir Ghasban, representative of the Iraqi 
Oil Ministry, to discuss oil field development contracts 
that Vietnam and Iraq had signed before the war.  Khai and 
the Vinatea representative would discuss the terms of a 
previously arranged 15,000-ton shipment of Vietnamese tea 
bound for Iraq under the Oil-for-Food program.  Khai said 
Vietnamese exports of rice valued at USD 500 million 
annually were more important overall, but the tea was 
perishable and needed to be shipped immediately.  Khai said 
he had fixed an appointment with "Susan Hamrock" at the 
Iraqi "Ministry of Trade." 
 
3.  (U) Khai clarified that reftel delegation to Baghdad to 
be led by Nguyen Van Du was separate; its focus will be on 
re-opening a diplomatic presence (which he labeled a 
"liaison office") in Baghdad quickly, in light of important 
commercial and other interests.  He added that Du had been 
and will be his DCM at the mission in Baghdad.  Ambassador 
noted continuing security concerns and urged Vietnam to 
think more about humanitarian assistance aimed at the 
redevelopment of Iraq, rather than a narrow focus on 
Vietnam's own commercial interests.  "Iraq is an 
international charity case," the Ambassador stressed, "not a 
commercial opportunity."  Khai claimed a number of other 
countries had already sent diplomats to Baghdad to resume a 
presence, including India, Sri Lanka, Turkey, China, and the 
Vatican.  He added that he did not believe there were any 
immigration or visa restrictions; he said crossing the 
border and driving the 1,000 kilometers from Amman to 
Baghdad posed no special problem -- except boredom and 
danger.  Embassy provided him with information about website 
links regarding current regulations. 
 
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VIETNAMESE-IRAQI SOES IN VIETNAM 
-------------------------------- 
 
4. (U) According to Khai and Thong, two Vietnamese-Iraqi 
joint ventures in Vietnam set up with the old Iraqi regime 
are still underway and have been blessed by CPA authorities. 
They claimed Iraq's contributions stemmed from reductions in 
Vietnam's debt balance with Iraq.  One joint venture is a 
tea company called Phu Da in Phu Tho province, and another a 
rice processing plant in Can Tho (septel).  Khai stated that 
rice from the plant would be sent to Iraq and proceeds from 
the sale also used to pay down Vietnam's debt to Iraq, under 
a plan "approved two months ago by Robin Raphel in Baghdad." 
 
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OTHER ISSUES 
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5.  (U)  The diplomats noted that Vietnam was exploring with 
UN agencies a contribution-in-kind worth USD 500,000 to 
Iraq, most likely rice but also potentially including tea, 
milk, and other commodities.  They noted no final decision 
had been made on the composition of this aid by the GVN or 
UN authorities.  Ambassador urged close coordination with 
WFP, the CPA, and other relevant authorities. 
 
6. (U)  When asked about prospects for peace in Iraq, Khai 
(who is on his fourth tour there, having served a total of 
14 years) admitted that "it will take a long time."  He 
expressed a lack of information and understanding about who 
was behind recent bombings in Najaf and at the UN 
headquarters.  He expressed support for the continued 
presence of U.S. troops, without which "there would be 
chaos."  He welcomed the appointment on September 2 of about 
35 Iraqi ministers-equivalent to handle trade, diplomatic, 
and other affairs, and said that he looked forward to 
working with them once he returned to Baghdad (while 
admitting he did not know to whom he would be accredited). 
 
7.  (U)  Khai and Thong confirmed that the former Iraqi 
mission had informed the MFA by letter that it was closing 
and that its diplomats would leave, although they could only 
verify that the previous Ambassador-designate (who did not 
get to present his credentials before the outset of the war) 
had left.  Khai stressed that the Iraq chancery remained 
closed, under the supervision of the Diplomatic Services 
Bureau, which had also retaken possession of a residence 
newly restored for the Ambassador-designate.  They claimed 
that Iraqi diplomatic assets in Vietnam had always been 
minimal, given that most of the costs of utilities, rent, 
etc., were similarly deducted from Vietnam's debt to Iraq. 
BURGHARDT