US embassy cable - 01HOCHIMINHCITY735

UNCLAS SECTION 01 OF 03 HO CHI MINH CITY 000735 
 
SIPDIS 
 
DEPARTMENT FOR EAP/BCLTV AND EAP/PD/JMARTIN 
DEPARTMENT ALSO FOR DRL/IRF 
DEPARTMENT ALSO FOR USTR 
DEPARTMENT ALSO FOR OPIC, TDA, AND EXIMBANK 
CINCPAC FOR FPA 
SECDEF FOR ISA/EA/LSTERN 
DEPTTREAS FOR OASIA 
USDOC FOR 4431/MAC/AP/OKSA/HPPHO 
 
E.O. 12958: N/A 
TAGS: PGOV, PHUM, PREL, ETRD, KIRF, VM 
SUBJECT: AMBASSADOR'S FAREWELL CALLS IN HCMC 
 
 
1. SUMMARY: AMBASSADOR PETERSON PAID FAREWELL CALLS IN 
HCMC ON JUNE 11 AT THE CITY'S EXTERNAL RELATIONS 
OFFICE, AT THE HCMC COMMUNIST PARTY HEADQUARTERS, AND 
AT THE HCMC PEOPLE'S COMMITTEE.  THE AMBASSADOR 
REVIEWED THE PROGRESS MADE IN THE BILATERAL 
RELATIONSHIP OVER THE PAST FOUR YEARS, NOTING THAT 
RATIFICATION OF THE BILATERAL TRADE AGREEMENT (BTA), 
WHICH IS NOW BEFORE THE U.S. CONGRESS, WOULD MARK THE 
FINAL STEP IN THE NORMALIZATION PROCESS.  REMARKING ON 
THE RISE IN THE STANDARD OF LIVING IN HCMC OVER THE 
PAST FEW YEARS, THE AMBASSADOR SAID HE BELIEVED 
IMPROVED BILATERAL RELATIONS HAVE HAD A SOCIAL AS WELL 
AS AN ECONOMIC IMPACT ON THE VIETNAMESE PEOPLE.  HE 
SAID THE USG WOULD LIKE TO TAKE A COOPERATIVE RATHER 
THAN CONFRONTATIONAL APPROACH TO THE OBJECTIVE OF 
IMPROVING CONDITIONS FOR HUMAN RIGHTS.  HE STATED USG 
                       UNCLASSIFIED 
 
PAGE 03        HO CHI  00735  01 OF 03  150909Z 
OBJECTIONS TO THE RECENT ARRESTS OF RELIGIOUS FIGURES 
IN VIETNAM.  WHILE ACKNOWLEDGING THAT ALLOWING GREATER 
POLITICAL AND SOCIAL FREEDOMS CARRIES THE RISK OF LESS 
STABILITY, HE STATED EMPHATICALLY THAT THE RISKS ARE 
FAR OUTWEIGHED BY THE UNLEASHING OF SOCIAL CREATIVITY 
AND PRODUCTIVITY.  ALTHOUGH HIS VIETNAMESE 
INTERLOCUTORS DEFENDED THEIR HANDLING OF "SUBVERSIVES" 
AND EXPLAINED THEIR OUTLOOK REGARDING A FREE SOCIETY 
VERSUS A STABLE SOCIETY, THEY APPEARED TO BE SINCERE IN 
THEIR COMMENTS.  THEY THANKED THE AMBASSADOR FOR HIS 
EFFORTS IN NORMALIZING RELATIONS, EXPRESSED HOPE FOR 
EARLY RATIFICATION OF THE BTA, AND SAID THEY LOOKED 
FORWARD TO CONTINUING TO BUILD ON THE FOUNDATION OF 
TRUST AND FRIENDSHIP ESTABLISHED BETWEEN THE TWO 
COUNTRIES THUS FAR.  END SUMMARY. 
 
CALL AT EXTERNAL RELATION OFFICE 
-------------------------------- 
 
2. AT THE HCMC EXTERNAL RELATIONS OFFICE (THE HCMC 
BRANCH OF THE FOREIGN MINISTRY), AMBASSADOR PETERSON 
PAID A FAREWELL CALL ON DIRECTOR LE QUOC HUNG.  HUNG 
WAS NAMED DIRECTOR IN APRIL.  PREVIOUSLY, HE WAS ONE OF 
THREE DEPUTY DIRECTORS AND WAS THE PERSON IN CHARGE OF 
COORDINATING THE HCMC PORTION OF PRESIDENT CLINTON'S 
VISIT TO HCMC IN NOVEMBER.  AMBASSADOR THANKED HUNG FOR 
THE SUPPORT OF HIS OFFICE OVER THE PAST FOUR YEARS, 
PARTICULARLY FOR ASSISTANCE ON VIP VISITS, AND 
ESPECIALLY THAT OF PRESIDENT CLINTON. 
 
3. OVER THE PAST FOUR YEARS, THE BILATERAL RELATIONSHIP 
                       UNCLASSIFIED 
 
PAGE 04        HO CHI  00735  01 OF 03  150909Z 
HAS MATURED, THE AMBASSADOR SAID, AND HAS BECOME MORE 
COMPLEX.  THE TWO COUNTRIES WILL NOT ALWAYS AGREE ON 
EVERY ISSUE, SO IT IS IMPORTANT TO CONTINUE TO BUILD ON 
THE LEVEL OF TRUST THAT HAS BEEN ACHIEVED THUS FAR.  WE 
HAVE REACHED A POINT WHERE WE CAN DISAGREE ON SOME 
THINGS WHILE CONTINUING TO MOVE AHEAD ON OTHERS. 
 
4. THE AMBASSADOR STRESSED THE IMPORTANCE OF ALLOWING 
U.S. DIPLOMATS TO TRAVEL AND MEET PEOPLE FREELY.  U.S. 
MISSION OFFICERS CAN BE COUNTED ON TO REPORT 
OBJECTIVELY, AND IN THIS WAY CAN BE ALLIES IN 
DISPELLING EXAGGERATIONS AND RUMORS.  WE WILL REPORT ON 
THINGS WE DO NOT AGREE ON, SUCH AS THE DETENTION OF 
INDIVIDUALS FOR PEACEFULLY EXPRESSING THEIR OPINIONS, 
BUT WE WILL ALSO REPORT ON THE POSITIVE THINGS VIETNAM 
IS DOING. 
 
5. DIRECTOR HUNG AGREED THAT THE TWO COUNTRIES HAVE 
BUILT A FOUNDATION OF TRUST IN THE FEW YEARS SINCE 
DIPLOMATIC RELATIONS WERE ESTABLISHED.  HE ADDED, 
HOWEVER, THAT IN SOME PLACES AT CERTAIN LEVELS OF 
GOVERNMENT, DISTRUST REMAINS - THE LINGERING RESULTS OF 
A LONG AND PAINFUL WAR.  IT WILL TAKE TIME, HE SAID, 
AND EFFORT TO KEEP THE RELATIONSHIP MOVING FORWARD. 
BECAUSE THE BTA WOULD BE A MAJOR STEP FORWARD, HE HOPED 
THE U.S. CONGRESS WOULD RATIFY THE BTA QUICKLY. 
 
6. IN REPLY TO AMBASSADOR PETERSON'S REMARK THAT 
AMERICAN PEOPLE FEEL STRONGLY ABOUT HUMAN RIGHTS DUE TO 
THEIR HISTORY AS A NATION FOUNDED BY REFUGEES WHO HAD 
FLED INTOLERANCE, HUNG SAID HE UNDERSTOOD THE AMERICAN 
PERSPECTIVE.  BUT HE SAID THE VIETNAMESE HISTORY OF 
4000 YEARS OF FIGHTING OFF EXTERNAL INVADERS HAS MADE 
ITS MARK ON THE VIETNAMESE PSYCHE.  VIETNAMESE PEOPLE 
VALUE INDEPENDENCE AND FREEDOM FROM OUTSIDE 
INTERFERENCE ABOVE ALL ELSE.  INDIVIDUAL FREEDOMS ARE 
ALSO HIGHLY VALUED, BUT SHOULD BE LIMITED TO BALANCE 
THE EQUALLY VALUED CONCEPTS OF STABILITY AND SECURITY. 
HE NOTED THAT AT PRESENT, VIETNAM IS THE MOST 
POLITICALLY STABLE NATION IN SOUTHEAST ASIA.  AND ITS 
                       UNCLASSIFIED 
 
PAGE 03        HO CHI  00735  02 OF 03  150909Z 
STABILITY IS ALLOWING VIETNAM TO DEVELOP ITS ECONOMY 
AND IMPROVE THE STANDARD OF LIVING FOR ITS PEOPLE. 
 
7. AMBASSADOR PETERSON AGREED THAT FREEDOM SHOULD BE 
LIMITED TO ACTIVITY WITHIN THE RULE OF LAW, BUT HE 
QUESTIONED HOW ALLOWING ONE INDIVIDUAL, SUCH AS 
BUDDHIST THICH HUYEN QUANG, TO FREELY CHOOSE HIS PLACE 
OF RESIDENCE COULD HAVE ANY EFFECT ON VIETNAM'S 
SECURITY.  ALLOWING GREATER FREEDOM TO EXPRESS OPINIONS 
DOES CARRY SOME RISKS, THE AMBASSADOR SAID, BUT THOSE 
ARE OUTWEIGHED BY FAR BY THE UNLEASHING OF SOCIETY'S 
POTENTIAL FOR CREATIVITY AND PRODUCTIVITY. 
 
CALL AT HCMC COMMUNIST PARTY HEADQUARTERS 
----------------------------------------- 
 
8. AMBASSADOR PETERSON ALSO MET WITH NGUYEN MINH TRIET, 
SECRETARY OF THE HCMC PARTY COMMITTEE AND FOURTH- 
 
SIPDIS 
RANKING MEMBERS OF VIETNAM'S POLITBURO.  (TRIET IS 
RUMORED TO BE THE FRONT-RUNNER TO SUCCEED PHAN VAN KHAI 
AS PRIME MINISTER WHENEVER KHAI STEPS DOWN.)  THE 
AMBASSADOR THANKED TRIET FOR VIETNAM'S COOPERATION 
DURING THE FIRST YEARS OF NORMALIZATION.  HE DREW 
PARTICULAR ATTENTION TO VIETNAM'S COOPERATION IN 
LOCATING AMERICAN MIA'S, WHICH WAS THE KEY TO 
ESTABLISHING DIPLOMATIC RELATIONS.  HE EXPRESSED THE 
USG DESIRE TO ASSIST VIETNAM IN LOCATING ITS OWN MIAS. 
 
9. THE AMBASSADOR TOLD TRIET THAT IT IS NORMAL FOR TWO 
COUNTRIES TO HAVE DIFFERENCES - IT IS THE MARK OF A 
MATURING RELATIONSHIP.  HE SAID THE U.S. DIPLOMATIC 
                       UNCLASSIFIED 
 
PAGE 04        HO CHI  00735  02 OF 03  150909Z 
MISSION HAS A DEEP UNDERSTANDING OF VIETNAM, PERHAPS 
BETTER THAN AT ANY TIME IN THE PAST.  THIS WAS DUE TO 
MISSION STAFF BEING ABLE TO TRAVEL AND MEET PEOPLE 
FREELY.  HE NOTED THAT RECENT RESTRICTIONS ON TRAVEL TO 
THE CENTRAL HIGHLANDS HINDERED THE MISSION'S ABILITY TO 
UNDERSTAND THE TRUE PICTURE OF WHAT IS GOING ON THERE. 
HE WISHED TO SEE THOSE TRAVEL RESTRICTIONS LIFTED 
QUICKLY.  HE ALSO SAID THE GOVERNMENT OF VIETNAM OUGHT 
TO ALLOW UBCV BUDDHIST PATRIARCH THICH HUYEN QUANG TO 
RETURN TO HIS FORMER RESIDENCE IN HCMC, AND SUGGESTED 
THE GVN MIGHT FIND IT EASIER TO DO THIS ON ITS OWN 
INITIATIVE RATHER THAN WAITING FOR INTERNATIONAL 
PRESSURE ON THE ISSUE TO BUILD. 
 
10. TRIET SAID THAT HE WANTED THE U.S. MISSION AND 
OTHER OBSERVERS TO VISIT THE HIGHLANDS TO BE ABLE TO 
UNDERSTAND THE TRUE CIRCUMSTANCES THERE.  HE SAID 
GENERALLY VIETNAM PLACES NO RESTRICTIONS ON TRAVEL 
WITHIN THE COUNTRY, BUT BECAUSE OF SAFETY CONCERNS, 
THERE ARE TEMPORARY RESTRICTIONS ON TRAVEL TO SOME 
PLACES IN THE HIGHLANDS.  TRIET ALSO SAID VIETNAM 
RESPECTS RELIGIOUS ACTIVITIES, BUT RELIGIOUS PERSONS, 
LIKE OTHER CITIZENS, MUST ABIDE BY THE LAWS OF THE 
COUNTRY. HE SAID SOME INDIVIDUALS, BOTH WITHIN AND 
OUTSIDE THE COUNTRY, HAVE USED RELIGIOUS FREEDOM AS A 
PRETEXT FOR COMMITTING SUBVERSIVE ACTS.  TRIET SAID HE 
REMEMBERED THAT IN HIS YOUTH (UNDER THE SOUTH 
VIETNAMESE REGIME), HE AND OTHER STUDENTS WERE NOT 
ALLOWED FREEDOM OF EXPRESSION, SO HE UNDERSTOOD THE 
IMPORTANCE OF AN OPEN, DEMOCRATIC SOCIETY. 
 
11. THE AMBASSADOR NOTED THAT SEEN OVER THE LONG TERM, 
VIETNAM HAS MADE SIGNIFICANT IMPROVEMENT IN HUMAN 
RIGHTS.  THE CHURCHES ARE FULL; THERE IS MORE OPENNESS 
AND MORE TOLERANCE OF CRITICISM.  BUT RASH RESPONSES TO 
INDIVIDUALS WHO CHALLENGE THE GOVERNMENT ARE WHAT GRAB 
THE HEADLINES.  THE USG WOULD LIKE TO COOPERATE WITH 
VIETNAM IN CREATING CONDITIONS FOR FURTHER IMPROVEMENTS 
IN HUMAN RIGHTS, AS WE HAVE IN OTHER AREAS.  THE BTA, 
FOR EXAMPLE, WILL HAVE A POSITIVE IMPACT ON OUR TWO 
                       UNCLASSIFIED 
 
PAGE 03        HO CHI  00735  03 OF 03  150910Z 
COUNTRIES FOR GENERATIONS.  THE USG HAS ALSO 
ESTABLISHED A NEW SCHOLARSHIP PROGRAM FOR VIETNAM THAT 
COULD HELP PROVIDE HIGHER EDUCATION TO UP TO 200 
STUDENTS IN THE NEXT YEAR. 
 
12. TRIET AGREED WITH THE AMBASSADOR THAT THE TWO 
COUNTRIES HAVE BUILT UP A FOUNDATION OF FRIENDSHIP AND 
TRUST IN THE FIRST FEW YEARS OF NORMALIZATION. 
ALTHOUGH SADDENED AT AMBASSADOR PETERSON'S DEPARTURE, 
HE LOOKED FORWARD TO WORKING WITH THE NEXT AMBASSADOR 
TO DEVELOP AN EVEN GREATER DEGREE OF UNDERSTANDING 
BETWEEN THE TWO COUNTRIES. 
 
MEETING WITH NEW PEOPLE'S COMMITTEE CHAIRMAN 
-------------------------------------------- 
 
13. AMBASSADOR PETERSON CONGRATULATED LE THANH HAI ON 
HIS RECENT PROMOTION FROM FIRST VICE-CHAIRMAN TO 
CHAIRMAN OF THE HCMC PEOPLE'S COMMITTEE.  HE SAID HE 
WAS PROUD OF THE WAY THE BILATERAL RELATIONSHIP HAS 
PROGRESSED, AND TOLD HAI THAT THE BTA WAS NOW IN THE 
HANDS OF THE U.S. CONGRESS.  HE EXPECTED THE CONGRESS 
TO RATIFY THE BTA, BUT NOTED THAT IT MAY TAKE UP TO TWO 
MONTHS FOR IT TO DO SO.  HE SAID HE EXPECTED THE 
AGREEMENT TO HAVE A SIGNIFICANT IMPACT ON THE ECONOMY 
AND ON THE QUALITY OF LIFE FOR THE PEOPLE OF HCMC. 
 
14. CHAIRMAN HAI SAID THAT DIFFICULTIES ARE ALWAYS 
ENCOUNTERED AT THE BEGINNING OF NEW ENDEAVORS, BUT HE 
BELIEVED THE FIRST FEW YEARS OF THE NEW U.S.-VIETNAM 
BILATERAL RELATIONSHIP HAS YIELDED REMARKABLY GOOD 
                       UNCLASSIFIED 
 
PAGE 04        HO CHI  00735  03 OF 03  150910Z 
RESULTS.  HE HOPED THE U.S. CONGRESS WOULD RATIFY THE 
BTA QUICKLY AND WAS CONFIDENT THE GVN WOULD DO THE 
SAME.  HE SAID THE GOVERNMENT OF HCMC HAD JUST SENT A 
PROPOSAL TO THE CENTRAL GOVERNMENT OUTLINING SEVERAL 
SPECIAL MECHANISMS FOR THE CITY TO ACT MORE ON ITS OWN 
WITH REGARD TO ITS ECONOMIC DEVELOPMENT.  WITH A MORE 
STREAMLINED BUREAUCRACY, HE EXPECTED THE CITY TO 
ACCELERATE ITS ALREADY HIGH ECONOMIC GROWTH RATE. 
THAT, AND RATIFICATION OF THE BTA, SHOULD ATTRACT MORE 
AMERICAN AND OTHER FOREIGN INVESTMENT TO THE CITY. 
 
15. THE AMBASSADOR SAID THAT A CORNERSTONE OF THE 
BILATERAL RELATIONSHIP WAS THE SUPPORT THE GVN HAD 
PROVIDED ON THE MIA ISSUE.  HE SAID THE COOPERATION 
BETWEEN THE TWO GOVERNMENTS ON THIS ISSUE HAD DEVELOPED 
INTO A PARTNERSHIP.  HE EXPECTED THE UNITED STATES AND 
VIETNAM TO DEVELOP AN ECONOMIC PARTNERSHIP JUST AS 
VITAL AND HOPED FOR GREATER UNDERSTANDING AND 
COOPERATION IN OTHER AREAS AS WELL AS THE RELATIONSHIP 
MATURED. 
 
RAY 
 
                       UNCLASSIFIED