US embassy cable - 05SANTODOMINGO3582

UNCLAS E F T O SECTION 01 OF 02 SANTO DOMINGO 003582 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR WHA, WHA/CAR, WHA/EPSC; 
NSC FOR SHANNON AND MADISON; SOUTHCOM ALSO FOR 
POLAD;TREASURY FOR OASIA; USDOC FOR 
4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION 
USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI 
 
E.O. 12958: DECL: 01/18/2015 
TAGS: PREL, ETRD, EINV, VM, DR, CH 
SUBJECT: DOMINICAN REPUBLIC AND VIETNAM ESTABLISH 
DIPLOMATIC TIES 
 
REF: SANTO DOMINGO 579 
 
1. (SBU) Summary:  The Dominican Republic and Vietnam 
announced the establishment of diplomatic relations here on 
July 7, and a visiting Vietnamese delegation discussed 
possibilities for increased trade, investment, and cultural 
relations.  The visitors scored a modest success on their 
first try, pulling ahead of the Chinese who have repeatedlty 
pressed for diplomatic recognition through visiting economic 
and political delegtations.  But the opening of diplomatic 
relations with Vietnam is unlikely to have any immediate 
economic benefits for either side.  The visitors requested 
support for Hanoi's WTO bid, but got no commitment.  The 
Dominican Government may have scored points with its 
left-wing supporters and may see Vietnam in the longer term 
as a potential oil supplier, in this country's quest to 
control soaring energy costs.  End summary. 
 
2. (SBU) Vietnam, with an eye on the PRC,s diplomatic 
offensive in the Caribbean (reftel) , has scored a modest 
success here on the first attempt.  On July 7, Dominican 
Foreign Minister Carlos Morales Troncoso and visiting 
Vietnamese Vice Foreign Minister Vu Dung signed a joint 
communique announcing the establishment of diplomatic 
relations between the two countries.  Both principals said 
diplomatic relations would facilitate increased trade, 
investment, and cultural relations.   Vu said Vietnam 
anticipated working closely with the Dominicans in 
international organizations. 
 
WTO ambitions 
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3. (SBU) Secretary of State without Portfolio Miguel Mejia, a 
Palace adviser with ties to leftist regimes abroad who 
assisted in arranging visits here by at least three PRC 
commercial and political delegations since last year, 
involved himself in the arrangements for the Vietnamese.  He 
told the press that the Vietnamese visit would be "the 
starting point for establishment of relations with some six 
Asian countries."  In addition to their other objectives in 
Santo Domingo, he said the Vietnamese visitors would seek 
Dominican support for Hanoi,s entry into the World Trade 
Organization (WTO). 
 
4,. (SBU) According to the Foreign Ministry, the Vietnamese 
did indeed request support for their WTO bid, but Santo 
Domingo made no commitment.  The MFA Asia division denied a 
Vietnamese news report that Morales Troncoso had acceded to 
their request, and said the issue must be submitted to the 
interagency National Council of Trade Negotiations prior to 
any decision. 
 
No economic agreements - yet 
- - - - - - - - - - - - - - - 
 
5. (SBU) The 10-person Vietnamese delegation also met with 
President Fernandez, Industry and Commerce Minister Francisco 
Javier Garcia, Council of External Investment (CEI) chairman 
Eddy Martinez, and officials of the Technical Secretariat of 
the Presidency.  The Vietnamese announced that they had 
discussed with Garcia the possibility of his visiting Vietnam 
and of exchanging visits by business delegations.  But the 
Foreign Ministry indicated no agreements were reached on 
investments or trade. 
 
The Chilean connection 
- - - - - - - - - - - - 
 
6. (SBU) The Dominican MFA said neither side has plans to 
exchange ambassadors.  The Dominican Republic lacks resources 
to establish any diplomatic representation in Hanoi and has 
no ambassador posted nearby.  For now, relations may be 
handled via the nations' embassies in Chile.  This was the 
channel used by the Vietnamese to propose the establishment 
of relations, the MFA told us. 
 
7. (SBU)  Vietnam,s ambassador to Chile, Nguyen Van Dao, 
traveled with the delegation to Santo Domingo.  A fluent 
Spanish speaker, Nguyen delivered an hour-long speech July 6 
at President Fernandez,s NGO, the Global Foundation for 
Democracy and Development (www.funglode.org).  The ambassador 
said this was the first visit to the Dominican Republic by 
all the delegation's members. 
 
The glorified capitalists 
- - - - - - - - - - - - - 
 
8. (U) Nguyen outlined his country,s transformation from 
post-war devastation and poverty to a high-growth economy, 
due to market-oriented economic policies over the past 20 
years.  "Today Vietnam glorifies the entrepreneur," he 
asserted; individuals are allowed to become prosperous so the 
nation can prosper.  The government is encouraging private 
business development in the provinces.  Per capita income has 
soared from US $60 to over $500 -- a still low figure, 
indicating that much remains to be done.  He particularly 
emphasized the establishment of property rights for peasant 
farmers and growing exports of food (especially rice), 
petroleum, coffee, clothing, shoes, and furniture.  Vietnam 
has diplomatic relations with 160 nations and economic ties 
with more than 100, he said.  In foreign policy, "Vietnam is 
willing to be a friend of the international community." 
9. (U) The Vietnamese delegation also included Foreign 
Ministry director Nguyen Manh Hung, Trade Ministry director 
Nguyen Thang Hung, Office of Government of Vietnam 
subdirector Bui Huy Hung, Finance Ministry subdirector Dang 
Ngoc Minh, National Commission for International Cooperation 
representative Le Thanh Lam, Planning and Investment Ministry 
official Gianh Thanh Tung, Finance Director Dang Tuan Hiep, 
and Foreign Ministry officials Nguyen Khanh Hoa and Do Ming 
Hung. 
 
Comment 
- - - - 
 
10. (SBU) Vietnam achieved its initial political objective on 
the first try, pulling ahead of the Chinese, whose diplomatic 
offensive has been slowed by the Dominican Republic's 
traditional ties to Taiwan.  The Vietnamese also came 
prepared to discuss enhanced economic relations, but there is 
little prospect of significant advances in the near term. 
For now, the Fernandez administration's main benefit may be 
political, in having scored points with the left wing of the 
ruling PLD.  In the longer term, the Dominican Government 
will value relations with any potential oil suppliers, in its 
quest to control soaring energy costs. 
HERTELL