US embassy cable - 02HANOI1124

UNCLAS SECTION 01 OF 02 HANOI 001124 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV AND EAP/J 
 
E.O. 12958: N/A 
TAGS: PREL, PTER, ETRD, EAID, ECON, PGOV, JA, VM, CTERR 
SUBJECT:  JAPANESE PRIME MINISTER AFFIRMS COOPERATION IN 
--          SECURITY AND COUNTERTERRORISM 
 
1.  (SBU)  SUMMARY.  PRIME MINISTER JUNICHIRO KOIZUMI 
AFFIRMED JAPAN'S SUPPORT FOR BILATERAL COOPERATION IN 
SECURITY AS PART OF AN ENHANCED JAPAN-ASEAN RELATIONSHIP AND 
OFFERED NON-MILITARY COOPERATION ON COUNTERTERRORISM DURING 
AN APRIL 27-28 VISIT TO HANOI.  PRIME MINISTER PHAN VAN KHAI 
ASKED FOR INCREASED AID AND A BILATERAL TRADE AGREEMENT, BUT 
KOIZUMI DID NOT RESPOND POSITIVELY TO EITHER REQUEST.  WHILE 
NO NEW AGREEMENTS WERE SIGNED, THE TWO COUNTRIES AGREED TO 
ENHANCE BILATERAL TIES THROUGH CONTINUED ECONOMIC AND 
POLITICAL DIALOGUE AND ACTIVITIES.  END SUMMARY. 
 
--------------------------------------- 
BILATERAL COOPERATION INCLUDES SECURITY 
--------------------------------------- 
 
2.  (U)  IN HANOI, PM KOIZUMI PAID COURTESY CALLS ON 
PRESIDENT TRAN DUC LUONG AND GENERAL SECRETARY OF THE 
COMMUNIST PARTY OF VIETNAM NONG DUC MANH, AS WELL AS HELD A 
MORE SUBSTANTIVE MEETING WITH HIS COUNTERPART, PM KHAI. 
ACCORDING TO JAPANESE EMBOFFS, THE TWO PRIME MINISTERS 
DISCUSSED BILATERAL COOPERATION IN A NUMBER OF AREAS, 
                       UNCLASSIFIED 
 
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LARGELY AS A BILATERAL APPLICATION OF AND FOLLOW-UP TO PM 
KOIZUMI'S FIVE-POINT INITIATIVE FOR GREATER JAPAN-ASEAN 
COOPERATION FIRST ANNOUNCED LAST JANUARY IN SINGAPORE.  THE 
ELEMENTS OF THIS COOPERATION INCLUDE (1) A COMPREHENSIVE 
ECONOMIC PARTNERSHIP; (2) DESIGNATION OF THE YEAR 2003 AS 
THE YEAR OF JAPAN-ASEAN EXCHANGES, ESPECIALLY IN LIGHT OF 
THE 30TH ANNIVERSARY OF JAPAN-VIETNAM RELATIONS; (3) THE 
INITIATIVE TO DEVELOP EAST ASIA (IDEA); (4) COOPERATION IN 
EDUCATION AND HUMAN RESOURCES DEVELOPMENT; AND (5) 
COOPERATION ON TRANSNATIONAL ISSUES SUCH AS SECURITY, 
PIRACY, DISEASE, ENVIRONMENT, NARCOTICS, AND HUMAN 
TRAFFICKING.  KOIZUMI PLEDGED TO HOST RELEVANT MEETINGS AND 
WORKSHOPS IN THESE AREAS, EMBOFFS SAID. 
 
3.  (SBU)  PM KOIZUMI ALSO TOLD PM KHAI THAT JAPAN COULD NOT 
PROVIDE MILITARY COOPERATION AGAINST TERRORISM DUE TO 
CONSTITUTIONAL CONSTRAINTS, BUT COULD HELP WITH BUDGET 
ASSISTANCE AND INFORMATION SHARING, AREAS JAPAN ALSO 
"CONSIDERS IMPORTANT."  PM KOIZUMI EXPRESSED APPRECIATION 
FOR AND "ENCOURAGED" VIETNAM'S CONTINUED PARTICIPATION IN 
AFGHAN RECONSTRUCTION, NOTING ESPECIALLY VIETNAM'S 
ATTENDANCE AT THE TOKYO PLEDGING CONFERENCE WHERE VIETNAM 
PROMISED USD 300,000 OF MATERIEL ASSISTANCE.  PM KOIZUMI 
ALSO THANKED VIETNAM FOR ALLOWING THE JAPAN DEFENSE FORCES 
TO FLY OVER VIETNAM EN ROUTE TO PAKISTAN. 
 
4.  (SBU)  THE TWO SIDES AGREED TO MAINTAIN AND POSSIBLY 
"STRENGTHEN" A BILATERAL POLITICAL DIALOGUE.  AFTER A HIATUS 
OF SEVERAL YEARS, BILATERAL DISCUSSIONS AT THE VICE FOREIGN 
MINISTERIAL LEVEL TOOK PLACE IN APRIL 2002 IN HANOI. 
ACCORDING TO EMBOFFS, BOTH SIDES ARE NOW DETERMINED TO 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  01124  01 OF 02  061033Z 
RESUME THIS PROCESS IN ALTERNATING CAPITALS AT LEAST EVERY 
OTHER YEAR. 
 
---------------------- 
TRADE/ODA OUTLOOK GOOD 
---------------------- 
 
5.  (U)  ASIDE FROM SECURITY AND COUNTERTERRORISM, PM 
KOIZUMI'S MEETINGS WITH THE GVN LEADERSHIP ALSO TOUCHED ON 
ECONOMIC AND ODA ISSUES.  ACCOUNTS FROM EMBOFFS AND PRESS 
REPORTS INDICATED THAT THE GVN LEADERSHIP IS "VERY KEEN" TO 
CONCLUDE A BILATERAL TRADE AGREEMENT, WHILE JAPAN IS NOT 
PARTICULARLY INTERESTED BECAUSE JAPAN ALREADY GRANTS VIETNAM 
MOST FAVORED NATION TREATMENT.  FURTHER, THE GOJ IS 
CONCERNED THAT VIETNAM IS MOSTLY INTERESTED IN EXPORTING 
MORE AGRICULTURAL PRODUCTS TO JAPAN, A SENSITIVE DOMESTIC 
POLITICAL ISSUE, ACCORDING TO EMBOFF.  PM KOIZUMI REPORTEDLY 
AGREED WITH PM KHAI TO PUSH TO CONCLUDE A BILATERAL 
INVESTMENT PROTECTION AGREEMENT, HOPEFULLY "BY THE END OF 
THE YEAR."  (NOTE:  THERE HAD BEEN RUMORS THIS AGREEMENT 
MIGHT BE A DELIVERABLE FOR THIS VISIT.  END NOTE) 
 
6.  (U)  CONCERNING ODA, WHILE JAPAN HAS CUT ITS WORLDWIDE 
ODA BUDGET, JAPAN PLEDGED LAST DECEMBER AT THE ANNUAL 
DONOR'S CONFERENCE TO INCREASE ODA TO VIETNAM BY SIX 
PERCENT.  ACCORDING TO PRESS REPORTS, JAPAN HAS PROVIDED USD 
7 BILLION OVER THE PAST DECADE, 40 PERCENT OF THE TOTAL OF 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ1604 
 
PAGE 01        HANOI  01124  02 OF 02  061033Z 
ACTION EAP-00 
 
INFO  LOG-00   NP-00    AID-00   A-00     ACQ-00   CA-01    CCO-00 
      CEA-01   CG-00    CIAE-00  COME-00  CTME-00  DOEE-00  ITCE-00 
      DOTE-00  SRPP-00  DS-00    EB-00    EXME-00  OIGO-00  E-00 
      FAAE-00  FBIE-00  UTED-00  VC-00    FRB-00   H-01     TEDE-00 
      INR-00   INSE-00  ITC-01   LAB-01   L-00     VCE-00   M-00 
      AC-01    NRCE-00  NSAE-00  OCS-03   OES-01   OMB-01   OPIC-01 
      PA-00    PM-00    PRS-00   ACE-00   P-00     SCT-00   SP-00 
      SSO-00   SS-00    STR-00   TEST-00  TRSE-00  USIE-00  USSS-00 
      ASDS-01  EPAE-00  PMB-00   DSCC-00  DRL-02   G-00     NFAT-00 
      SAS-00     /015W 
                  ------------------AA722D  061033Z /38 
R 061018Z MAY 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC 6378 
INFO AMCONSUL HO CHI MINH CITY 
AMEMBASSY TOKYO 
AMEMBASSY JAKARTA 
AMEMBASSY CANBERRA 
AMEMBASSY PHNOM PENH 
AMEMBASSY BANGKOK 
AMEMBASSY VIENTIANE 
AMEMBASSY WELLINGTON 
USCINCPAC HONOLULU HI 
NSC WASHDC 
SECDEF WASHDC//ISA/ABLAGG// 
 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  01124  02 OF 02  061033Z 
UNCLAS SECTION 02 OF 02 HANOI 001124 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR EAP/BCLTV AND EAP/J 
 
E.O. 12958: N/A 
ALL FOREIGN DONORS.  JAPAN WILL CONTINUE ODA IN AREAS SUCH 
AS INFRASTRUCTURE, HUMAN RESOURCES TRAINING, POVERTY 
REDUCTION, AND ENVIRONMENTAL PROTECTION.  PM KOIZUMI TOLD PM 
KHAI THAT THE DIFFICULT ECONOMIC SITUATION IN JAPAN WOULD, 
HOWEVER, PRECLUDE ANY INCREASES, AND HE ADVISED THE GVN TO 
PRIORITIZE ITS PROJECTS AND USE JAPAN'S ODA AS EFFICIENTLY 
AS POSSIBLE. 
 
7.  (U)  ACCORDING TO PRESS REPORTS, JAPAN IS NOW VIETNAM'S 
LARGEST TRADING PARTNER (USD 5 BILLION IN 2001), LARGEST 
DEVELOPMENT ASSISTANCE DONOR, AND THE THIRD LARGEST 
INVESTOR, AFTER SINGAPORE AND TAIWAN.  JAPAN'S INVESTMENTS 
IN VIETNAM INCLUDE INDUSTRY, AGRICULTURE, FORESTRY, POST AND 
TELECOMMUNICATIONS, AND HOTEL SERVICES.  IN ADDITION, ABOUT 
220,000 JAPANESE TOURISTS VISITED VIETNAM, A NUMBER EXPECTED 
TO INCREASE WITH THE NEWLY INTRODUCED DIRECT AIRLINKS 
BETWEEN HANOI/HO CHI CHI MINH CITY AND TOKYO. 
 
8.  (U)  THE GVN INVITED JAPAN'S EMPEROR TO VISIT, WHICH 
EMBOFFS NOTED SEEMS DOUBTFUL.  A LOWER LEVEL ROYAL VISIT IS 
POSSIBLE "WITHIN A YEAR" BUT NO DATES HAVE BEEN SET.  PM 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  01124  02 OF 02  061033Z 
KOIZUMI ALSO INVITED GENERAL SECRETARY MANH TO VISIT JAPAN, 
WHICH HE MAY DO "THIS AUTUMN," ALTHOUGH NO DATES HAVE BEEN 
SET. 
BURGHARDT 
 
                       UNCLASSIFIED