US embassy cable - 02HANOI1279

UNCLAS SECTION 01 OF 02 HANOI 001279 
 
SIPDIS 
 
SENSITIVE 
 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  01279  01 OF 02  200954Z 
STATE FOR EAP/BCLTV 
 
E.O. 12958: N/A 
TAGS: PREL, PTER, PGOV, ETRD, BM, VM, ASEAN, CTERR 
SUBJECT:  BURMA AND VIETNAM:  TRYING TO IMPROVE RELATIONS 
 
 
1.  (SBU)  SUMMARY.  THE VISIT BY PRESIDENT TRAN DUC LUONG 
TO BURMA UNDERSCORED A SHARED DETERMINATION TO ADVANCE THE 
MODEST TIES BETWEEN THESE TWO FELLOW ASEAN STATES.  A MAJOR 
FOCUS WAS ON THE STILL LIMITED ECONOMIC RELATIONSHIP; 
BILATERAL TRADE IS ONLY ABOUT USD 10 MILLION ANNUALLY. 
NARCOTICS WERE APPARENTLY NOT ON THE AGENDA, BUT THE TWO 
SIDES AFFIRMED THEIR SUPPORT FOR INCREASED EFFORTS TO 
COUNTER INTERNATIONAL TERRORISM, WHILE CAVEATING THAT SUCH 
EFFORTS SHOULD NOT COMPROMISE NATIONAL SOVEREIGNTY.  END 
SUMMARY. 
 
2.  (U)  PRESIDENT TRAN DUC LUONG VISITED BURMA FROM MAY 5-8 
AT THE INVITATION OF SENIOR GENERAL THAN SHWE, CHAIRMAN OF 
BURMA'S STATE PEACE AND DEVELOPMENT COUNCIL (SPDC).  HIS 
DELEGATION INCLUDED FOREIGN MINISTER NGUYEN DY NIEN, 
MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT LE HUY NGO, 
AND THE DEPUTY MINISTERS OF DEFENSE, PLANNING AND 
INVESTMENT, AND TRADE. 
 
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A "LANDMARK," SORT OF 
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.  (SBU)  MFA SENIOR ASIA II EXPERT PHAM NGO THUAN WHO 
ACCOMPANIED THE DELEGATION, DESCRIBED THE VISIT AS A 
                       UNCLASSIFIED 
 
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"LANDMARK," NOTING THIS WAS THE FIRST PRESIDENTIAL VISIT 
FROM VIETNAM SINCE HO CHI MINH VISITED BURMA IN 1958.  ONE 
BURMA EMBOFF NOTED THAT RANGOON HAD PUSHED FOR THE VISIT 
BECAUSE IT WAS THE ONLY ASEAN COUNTRY THAT LUONG HAD YET TO 
VISIT.  ACCORDING TO VU QUANG THIEN, SENIOR RESEARCHER AT 
THE SOUTH EAST ASIA STUDIES CENTER, THE POLITICAL 
RELATIONSHIP WITH BURMA IS "LONG AND ENDURING," WITH THE 
CONSULAR RELATIONSHIP DATING BACK TO 1957 AND AMBASSADORIAL 
TIES GOING BACK TO 1975. 
 
4.  (U)  ANOTHER BURMA EMBOFF NOTED THAT THE TRADE VOLUME, 
WHILE STILL "NEGLIGIBLE" AT USD 10 MILLION LAST YEAR, COULD 
"EASILY INCREASE" TO USD 100 MILLION "WITHIN TWO TO THREE 
YEARS," ESPECIALLY IF SOME JOINT VENTURES DISCUSSED DURING 
THE VISIT WORK OUT.  THESE INCLUDED OIL EXPLORATION, GEM 
MARKETING, AND RICE MARKETING.  HE INDICATED THAT IN THE 
NEAR TERM, THE TWO SIDES WILL TRY TO INCREASE BARTER TRADE, 
SINCE RAISING CAPITAL IS VERY DIFFICULT, ESPECIALLY ON THE 
BURMESE SIDE.  VIETNAMESE EXPORTS NOW INCLUDE BUILDING 
MATERIALS, CERAMIC TILE, AND COMMODITIES SUCH AS PLASTICS, 
INSTANT NOODLES, AND SOAP.  THE EMBOFF PREDICTED THAT 
VIETNAMESE CONSUMER GOODS WOULD BE WELL RECEIVED IN BURMA 
SINCE THEY WOULD BE CHEAPER THAN THOSE PRODUCED IN THAILAND 
AND INDIA OR EVEN, IN MANY CASES, IN CHINA.  BURMESE EXPORTS 
ARE LIKELY TO REMAIN LIMITED TO TIMBER AND SOME AGRICULTURAL 
PRODUCTS.  CURRENTLY, TRADE RUNS HEAVILY IN VIETNAM'S FAVOR, 
WITH ABOUT 80 PERCENT OF THE VALUE OF TWO-WAY TRADE 
CONSISTING OF VIETNAM'S EXPORTS TO BURMA, ACCORDING TO 
EMBOFF. 
 
5.  (U)  THE TWO SIDES SIGNED AN MOU TO FORM A "JOINT 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  01279  01 OF 02  200954Z 
ECONOMIC WORKING GROUP" TO PUSH BILATERAL TRADE.  THE FIRST 
MEETING IS SCHEDULED TO TAKE PLACE IN HANOI THIS JULY.  THIS 
GROUP WILL BE ORGANIZED THROUGH THE RESPECTIVE MINISTRIES OF 
TRADE.  THE MFA'S THUAN NOTED THAT THE ESTABLISHMENT OF THE 
ECONOMIC WORKING GROUP IS "AN IMPORTANT STEP" TO IMPROVING 
THE OVERALL RELATIONSHIP. 
 
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NO CONNECTION WITH AUNG SAN SUU KYI'S RELEASE 
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6.  (SBU)  DURING THE VISIT, AUNG SAN SUU KYI WAS RELEASED 
FROM HOUSE ARREST.  BOTH THE MFAS THUAN AND THE BURMA 
EMBOFF NOTED THAT THE SIMULANEOUS RELEASE OF AUNG SAN SUU 
KYI WAS ONLY A COINCIDENCE; NEGOTIATIONS HAD BEEN ONGOING 
"FOR MONTHS."  ACCORDING TO THUAN, LUONG DID NOT COMMENT ON 
HER RELEASE DURING ANY OF HIS TALKS WITH THE BURMESE 
LEADERSHIP, NOR WAS THE SUBJECT RAISED BY HIS INTERLOCUTORS. 
THUAN