US embassy cable - 05HANOI315

UNCLAS SECTION 01 OF 02 HANOI 000315 
 
SIPDIS 
 
SENSITIVE 
 
DEPT PASS TO EAP/BCLTV; EAP/RSP; DRL 
 
STATE PASS TO USTR E. BRYAN 
 
E.O. 12958: N/A 
TAGS: PREL, PHUM, KIRF, ETRD, OVIP, KPOW, CH, VM, APEC, CVR, HUMANR, RELFREE, ASEAN, WTO 
SUBJECT: NSC Senior Director Michael Green Discusses China, 
Country of Particular Concern Designation, APEC, Prime 
Minister's Visit with Deputy Prime Minister Vu Khoan 
 
 
1. (SBU) Summary: NSC Senior Director for Asia Dr. Michael 
J. Green and the Ambassador discussed bilateral relations 
and regional strategic dynamics with Deputy Prime Minister 
(DPM) Vu Khoan on February 4.  The DPM stressed regional 
dialogue, particularly through the ASEAN framework, while 
recognizing China's rising role in the region. He urged the 
removal of Vietnam's designation as a Country of Particular 
Concern (CPC) for religious freedom to pave the way for the 
Prime Minister's visit this summer and requested further 
strong gestures from the United States regarding Vietnam's 
accession to the WTO.  End Summary. 
 
2. (SBU) NSC Senior Director for Asia Dr. Michael J. Green 
and the Ambassador met with Deputy Prime Minister Vu Khoan 
on February 4 to discuss the state of bilateral relations, 
regional interactions and the Prime Minister's possible 
visit to the United States in June 2005.  Vu Khoan welcomed 
Dr. Green, noting that this visit is especially important 
because of various upcoming events, including the tenth 
anniversary of the normalization of bilateral relations, 
Prime Minister (PM) Phan Van Khai's planned visit to the 
United States and the start of preparations for Hanoi to 
host the APEC summit in 2006. 
 
3.  (SBU) Dr. Green agreed that we are at an important and 
optimistic point in our relationship, which could be 
enhanced by high-level exchanges of visits, including that 
of Assistant Secretary of Defense Peter Rodman to Vietnam 
and members of Vietnam's National Assembly to the United 
States. Bilateral visits like these demonstrate how far U.S.- 
Vietnam relations have come in terms of common interests, he 
said. 
 
4.  (SBU) Turning to regional issues, Dr. Green said China's 
"rising role" in Asia is important because it affects 
China's relations with the United States as well as Vietnam, 
and in turn the U.S.-Vietnam relationship.  This "rise" 
creates conditions to reinforce other countries' bilateral 
relations, he stressed; "diplomacy in Asia is not a zero-sum 
game."  While the issue of religious freedom is the most 
sensitive one for both our countries, Dr. Green said, the 
recent release of Father Ly from prison has set the stage 
for the two sides to explore building a possible work plan 
to address the United States' concerns regarding religious 
freedom in Vietnam.  Emphasizing that we could learn more 
from each other through dialogue, Dr. Green solicited the 
DPM's views about the region and the U.S. role in it. 
 
5.  (SBU) DPM Khoan replied that recent speeches by 
President Bush and Dr. Rice indicate a new multilateral 
diplomacy approach by the United States.  Within this 
framework, there could be four particular levels of regional 
cooperation: the sub-regional level with three to four 
countries working together, the regional level through 
ASEAN, new forms of regional cooperation through an East 
Asian Summit, and the inter-regional level through APEC, 
with all levels being intertwined.  Although each 
organization has different interests and agendas, their 
shared goals are development, stability and prosperity.  In 
particular, DPM Khoan stressed, ASEAN needs to play a key 
role through initiatives within its framework, including 
"ensuring ASEAN plays a leading role in any East Asian 
cooperative organization that is still in its preliminary 
stages." 
 
6.  (SBU) DPM Khoan also opined that China has replaced 
Japan as a regional economic leader, and the Chinese are 
interested in continuing to expand China's active role in 
the world as well as paying special attention to their 
neighbors.  The rise of China is good for many countries, 
including the United States, he said, because it contributes 
to the spread of prosperity within the region. He noted that 
trade exchange between Vietnam and China is increasing 
rapidly and relations remain excellent despite "some 
difficulties in the East (South China) Sea." 
 
7.  (SBU) The DPM stressed that Vietnam's foreign policy is 
keyed to multilateralism and diversification of its 
relationships, remaining active at all four levels of 
regional cooperation and seeking friendships with all 
countries while avoiding military alliances.  Vietnam 
recognizes the United States has relationships with many 
countries in the region and it needs to play an active role 
in promoting peace and stability.  In fact, DPM Khoan 
continued, Vietnam wants the United States to play a 
constructive role in regional cooperation based on mutual 
understanding and respect, resulting in lasting cooperation. 
Although the bilateral relationship is "shadowed by burdens 
of the past," it must move forward.  One way Vietnam is 
doing this is through cooperation with American MIA/POW 
recovery operations, an effort that is difficult to explain 
to the Vietnamese public but basically tolerated.  "Not only 
do we need to settle all past issues," the DPM recommended, 
"but we need to try to avoid creating new stumbling blocks 
in the road ahead, like lawsuits on catfish and shrimp, and 
interference in domestic issues." 
 
8.  (SBU) Regarding the PM's visit, the GVN wants to receive 
an official invitation from the USG soon in order to make 
preparations for the late June to early July timeframe.  For 
visit deliverables, GVN hopes to have an agreement on the 
framework of the relationship and various MOU's on other 
areas of cooperation as well.  A statement regarding 
Vietnam's WTO accession would be the next appropriate step 
to build upon the 2001 Bilateral Trade Agreement (BTA). 
Discussion on the bilateral relationship as well as regional 
issues in the overall framework would be welcome as well. 
"Paving a clean way" for the PM's visit, however, would mean 
removing the "offensive" CPC designation of Vietnam, the DPM 
said.  There are six official religions in Vietnam and the 
new ordinance on religion (with specific directives on each 
religion) is evidence of Vietnam's efforts to create 
favorable and equitable conditions, something Vietnam would 
do without external pressure.  At the same time, the GVN 
must prevent people from abusing their freedoms and breaking 
laws, he explained. 
 
9.  (SBU) Dr. Green said Vietnam has "a clear sense of 
regional strategy," adding that "we should have more 
strategic dialogue at all levels."  Although the United 
States is not opposed to an East Asia Summit, Dr. Green 
recommended that participants consider carefully what the 
new dynamic would be in such an organization, stressing that 
APEC should remain the preeminent forum because it includes 
the United States. This is something the United States and 
Vietnam could continue to discuss in quiet dialogue, Dr. 
Green suggested.  China's rising role in the region is not 
necessarily a bad factor, but it is imperative that China 
joins Asia, not vice versa, in order to maintain an open 
architecture, with APEC and ASEAN steadfast in their 
respective, dynamic roles. 
 
10.  (SBU) On WTO, Dr. Green noted that it may not be 
possible to complete an agreement by June but indicated that 
the United States could send a strong signal in support of 
Vietnam's efforts.  Addressing the religious freedom issue, 
he said opening more churches and allowing freedom to 
worship would be the next proper steps for Vietnam. 
Although the CPC designation cannot be lifted immediately, 
it is both possible and desirable to establish a work plan 
to make progress toward that goal.  Dr. Green noted that as 
a leader of great faith, President Bush welcomes faith-based 
organizations' contributions for the public good and he 
stressed the positive role that these organizations play in 
Vietnamese society, contributing to a stronger nation. 
Although the deadline for action in response to CPC 
designation is approaching, the United States is willing to 
offer an extension of that deadline to provide enough time 
to establish a work plan that demonstrates to skeptics that 
religious freedom in Vietnam is being implemented in good 
faith, he added. 
 
11.  (U) Dr. Green cleared this cable. 
 
MARINE