US embassy cable - 05HANOI1833

UNCLAS SECTION 01 OF 02 HANOI 001833 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KPAO, VM, PGOV, ETRD, PREL, SCUL, OEXC, DPOL 
SUBJECT: Ambassador's Dinner with Hanoi City People's 
Council Chairman 
 
1.   Summary: At the invitation of Phung Huu Phu, Chairman 
of the Hanoi City People's Council (HCPC), the Ambassador 
attended a dinner on July 14 to discuss Hanoi's efforts to 
establish more links with the United States and its Sister 
City plans. Phu also commented on the Twelfth Plenum of the 
Central Committee of the Communist Party that week and the 
importance of fighting corruption in Vietnam. (Note: Phu 
also holds the position of First Deputy Secretary of the 
Hanoi City Party Committee, the second most powerful 
position in the Hanoi Party apparatus).  HCPC officials at 
the dinner meeting included Nguyen Quan Thu, External 
Affairs Director, Le Van Hoat, Budget and Fiscal Department 
Head and Le Quang Nhue, Internal Affairs Director.  PAO and 
APAO accompanied the Ambassador. End Summary. 
 
Hanoi: Building Ties to America 
------------------------------- 
 
2.   At a meeting with the Ambassador on July 14, Phung Huu 
Phu, Chairman of the Hanoi City People's Council, began by 
thanking the Public Affairs Section (PAS) for organizing an 
excellent itinerary for a Voluntary Visitors (VOLVIS) 
Program in April for a nineteen-member delegation to 
Washington, DC, New York and San Francisco, including 
officials of the Hanoi City People's Council and Hanoi's 
business community.  Although this was his third visit to 
the United States, Phu said he had found this trip 
especially useful and effective in establishing a broad 
base of contacts in business, education and local 
government.  In fact, earlier in the week he had met with 
one of his new contacts from the trip, Henry Gallanger, of 
the Vietnam Enterprise Group based in Washington, D.C. to 
discuss real estate development plans in Hanoi. 
 
3.   Noting the success of Prime Minister Phan Van Khai's 
recent trip to the United States, Phu emphasized that 
bilateral relations are "good at the moment" and asked for 
further efforts by the Embassy to open new doors for the 
City of Hanoi, including resources for improving 
infrastructure, water sanitation, information technology, 
emergency services and public libraries. Hanoi is committed 
to sending key officials to the United States for training 
in business management, urban planning and information 
technology, according to Phu.  After visiting several 
universities in April, Phu noted that he wants to attract 
more American educational institutions to establish offices 
and projects in the capital city. 
 
4.   The Ambassador agreed that the Prime Minister's trip 
marks a new stage in relations and that the two countries 
have much more work ahead in continuing the positive 
momentum created by the visit.  He assured Phu that the 
Embassy would work together with Hanoi officials to 
identify resources in building commercial and other ties, 
especially through non-government organizations. 
 
 
Insight into the Communist Party Plenum 
----------------------------------------- 
 
5.   Asked about the recently completed Twelfth Plenum of 
the Central Committee of the Communist Party of Vietnam, 
Phu commented that the success of the Prime Minister's 
recent trip to the United States was not due to the Prime 
Minister's "personal enthusiasm" towards the United States, 
but rather the Vietnamese Communist Party's support for 
building a good forum with the United States for discussing 
an array of issues.  Whatever the Prime Minister said or 
did on his trip is a reflection of the Party, Phu 
emphasized.  He commented that the Vietnamese Government is 
looking towards "more careful preparation" to promote 
bilateral relations when the Party convenes for next year's 
Tenth Congress. 
 
6.   In response to the Ambassador's urging for more 
transparency in explaining the Party's thinking to its 
public, Phu responded that in principle, some issues 
discussed by the Communist Party cannot be publicized. 
However, when the Party makes decisions and they become 
policy, it becomes apparent what issues have been discussed 
"on behalf of the people." Nevertheless, Phu acknowledged 
that when the Party meets to discuss the best ways to serve 
the people, it must also consider its weaknesses and review 
areas where it has not done well. 
 
7.   Phu asserted that overall, the agenda of the Party is 
open, adding that a primary concern is promoting democracy, 
not only in society but also within the Party. He admitted 
that corruption is a "sad" disease that the Vietnamese 
Government must fight and resolve through engagement of the 
media and public opinion. Phu said that due to a subsidy- 
based system, poverty was divided equally in Vietnam, but 
some had become prone to corruption following the 
introduction of market economy practices.  He explained 
that Vietnam had been shocked by the "sudden arrival" of 
corruption.  He likened this "sudden arrival" to the first 
time a car drives through a village causing villagers to 
gawk as it passes by. Phu argued that the Vietnamese people 
are viewing and considering corruption as a new phenomenon, 
but foreigners' perception of corruption in Vietnam is 
"excessive." He agreed that the longstanding mechanism of 
exercising power by granting favors is another root cause 
of corruption and acknowledged that the Government must 
make people "afraid" to commit crimes through awareness and 
setting clear legal markers.  He added that fighting 
corruption will be a difficult task because so many 
Vietnamese are poor. 
 
8.   The Ambassador stressed that Vietnam must take basic 
steps to fight corruption before it becomes acceptable in 
society. These steps include breaking the tradition of 
authorities granting favors, providing a fair wage for 
officials and implementing a fair but strict legal system 
to create a framework where corruption is punished. 
 
Hanoi-Los Angeles Sister City Link in the Works 
--------------------------------------------- -- 
 
9.   Regarding the possibility of a Sister City 
relationship with an American city, Phu said that although 
he did not meet with any Sister City officials in April, he 
had discussed the issue with colleagues at the Vietnamese 
Consulate General in San Francisco.  Consulate officials 
are now working on plans for an agreement with Los Angeles, 
with the goal of a signing ceremony by March 2006. Phu said 
he received positive signals from Los Angeles city 
officials and Vietnamese-Americans in that area about 
supporting the Sister City proposal.  The Ambassador 
offered to weigh in once Los Angeles Mayor's office sends 
positive signals.  The Ambassador also added that the 
Vietnamese-American community is a tremendous resource and 
opportunity to build bridges with Vietnam. The Embassy 
would continue to encourage Vietnamese-Americans to make 
trips to Vietnam and to establish business and educational 
ties here. 
 
Future of Urban Sprawl 
---------------------- 
 
10.  When asked about his views regarding the future of 
urban planning and development of Hanoi, Phu responded that 
the Ciputra complex near Noi Bai Airport and the 
neighborhoods north of the Red River would become the two 
urban centers in the next ten years.  Suggesting that 
Ciputra would be an ideal location for a new Embassy 
facility, Phu said that annex offices closer to other 
government buildings could supplement the main complex. The 
capital region would also gradually add a third, fourth and 
fifth ring to its traffic circles.  Phu acknowledged that 
there are weakness to Hanoi's urban planning and stressed 
that Hanoi desperately needs expertise from the United 
States to avoid the mistakes made by other Asian cities. 
The Ambassador urged transparency in the contract bidding 
process to ensure foreign investors a level playing field. 
 
11.  Finally, regarding next year's APEC Summit in Hanoi, 
Phu noted that although other leaders will be in Hanoi, 
President Bush will be the "focal point" and hopes the 
visit will gain approval of the American people despite 
some sensitive bilateral issues. 
 
 
MARINE