US embassy cable - 02HANOI2390

UNCLAS SECTION 01 OF 03 HANOI 002390 
 
SIPDIS 
 
SENSITIVE 
 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  02390  01 OF 03  030854Z 
STATE FOR EAP/BCLTV, EAP/RSP 
 
E.O. 12958: N/A 
TAGS: PREL, ETRD, SOCI, EAID, ECON, VM 
SUBJECT:  ASEM IV - THE VIEW FROM HANOI 
 
REF:  COPENHAGEN 03257 
 
1.  (U) SUMMARY.  GVN OFFICIALS CHARACTERIZED THE FOURTH 
ASIA-EUROPEAN MEETING (ASEM) AS A "SUCCESS."  VIETNAM'S MAIN 
GOAL WAS TO ADVANCE ECONOMIC RELATIONS WITH ITS EUROPEAN 
PARTNERS.  VIETNAM SUPPORTED THE DECLARATION ON COOPERATION 
ON INTERNATIONAL TERRORISM BUT LIKELY WOULD HAVE PREFERRED 
LANGUAGE ON RESOLVING THE "ROOT CAUSES."    PRIME MINISTER 
PHAN VAN KHAI, WHO REPRESENTED VIETNAM, ALSO VISITED 
ICELAND, BELGIUM, LUXEMBOURG, AND THE EUROPEAN COMMISSION IN 
CONJUNCTION WITH THE ASEM MEETING.  VIETNAM WILL HOST ASEM V 
IN 2004, AND HOPES FOR PARTICIPATION BY AT LEAST TWO MORE 
ASEAN MEMBERS AS WELL AS ADDITIONAL EUROPEAN STATES.  END 
SUMMARY. 
 
--------------------------------- 
PUSHING VIETNAM'S ECONOMIC AGENDA 
--------------------------------- 
 
2.  (U)  DR. NGUYEN QUANG THUAN, DEPUTY DIRECTOR OF THE 
CENTER FOR EUROPEAN STUDIES OF THE NATIONAL CENTER FOR 
SOCIAL SCIENCES AND HUMANITIES OF VIETNAM, DESCRIBED THE 
2002 ASEM AS A "KEY OPPORTUNITY FOR VIETNAM TO PUSH ITS 
ECONOMIC AGENDA OF INCREASING TRADE WITH EUROPE."  THE 
OFFICIALS WHO ACCOMPANIED PRIME MINISTER PHAN VAN KHAI AT 
                       UNCLASSIFIED 
 
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THE SEPTEMBER 22-24 MEETING WERE PRIMARILY FROM THE ECONOMIC 
SECTOR, INCLUDING: 
--MINISTER OF TRADE TRUONG DINH TUYEN; 
--CHAIRMAN OF THE OFFICE OF GOVERNMENT DOAN MANH GIAO; 
--MINISTER OF INDUSTRY HOANG TRUNG HAI; 
--DEPUTY FOREIGN MINISTER LE VAN BANG (FORMER AMBASSADOR TO 
THE U.S.) 
--DEPUTY MINISTER OF PLANNING AND INVESTMENT VU HUY HOANG; 
--DEPUTY FINANCE MINISTER LE THI BANG TAM; 
--DEPUTY MINISTER OF FISHERIES NGUYEN THI HONG MINH; 
--DEPUTY MINISTER OF SCIENCE AND TECHNOLOGY BUI MANH HAI; 
ALONG WITH, 
--TWENTY-ONE BUSINESS EXECUTIVES. 
 
3.  (SBU)  MFA ASIA II DEPUTY DIRECTOR GENERAL TRAN HAI HAU, 
WHO ACCOMPANIED PM KHAI, TOLD POLOFF SEPARATELY THAT PM KHAI 
WAS "EXTREMELY PLEASED" WITH THE RECEPTION HE HAD RECEIVED 
FROM HIS EUROPEAN COUNTERPARTS, INCLUDING PLEDGES OF 
ADDITIONAL ODA AND SUPPORT FOR VIETNAM'S ACCESSION TO THE 
WTO.  THE GVN IS "ANXIOUS TO SEE ITS ECONOMIC RELATIONS WITH 
EUROPE MATCH ITS POLITICAL RELATIONS," HAU NOTED.  HE WAS 
UNABLE TO CONFIRM THAT THE PRIME MINISTER HAD BROUGHT UP 
TRADE ISSUES THAT HAVE GENERATED CONTROVERSY BETWEEN VIETNAM 
AND THE EU, SUCH AS TEXTILE QUOTAS, OR THAT THE LEADERS HAD 
DISCUSSED ANY SPECIFIC MEASURES TO IMPROVE TRADE RELATIONS 
WITH EUROPE.  HAU SAID THE PRIME MINISTER HAD, HOWEVER, 
DISCUSSED THE NEED FOR MORE ASSISTANCE FROM THE EU "TO 
BRIDGE THE DEVELOPMENT GAP AMONG ASEM COUNTRIES."  (NOTE: 
THE "DEVELOPMENT GAP" IS A COMMON THEME THAT GVN OFFICIALS 
CONSISTENTLY BRING UP WITHIN THE ASEAN CONTEXT TO SEEK MORE 
ASSISTANCE FOR VIETNAM.  END NOTE.) 
                       UNCLASSIFIED 
 
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4.  (U)  HAU OBSERVED THAT VIETNAM IS "LOOKING FORWARD" TO 
IMPLEMENTATION OF AN "ECONOMIC TASK FORCE" AGREED UPON AT 
THE MEETING.  HAU SAID THIS TASK FORCE WILL BE "ACTION 
ORIENTED" AND CONSIDER TRADE, INVESTMENT, AND FINANCE 
ISSUES.  HE ADDED THAT, AS THE HOST FOR ASEM V, VIETNAM 
(ALONG WITH JAPAN) EXPECTS TO PLAY A "COORDINATING ROLE" IN 
THIS TASK FORCE, BUT HE WAS UNABLE TO PROVIDE DETAILS AS TO 
WHAT THIS ROLE WILL ENTAIL. 
 
5. (SBU)  MINISTRY OF TRADE (MOT) MULTILATERAL TRADE 
DIVISION OFFICIALS WERE MUCH LESS UPBEAT ABOUT THE "REAL" 
ECONOMIC RESULTS OF THE MEETING, HOWEVER.  THEY SAID THAT 
FEW OF THEIR "TOP" ISSUES WERE DISCUSSED IN DETAIL AT A HIGH 
LEVEL AND INDICATED THAT ASEM IV HAD BEEN A LOST OPPORTUNITY 
TO MOVE FORWARD ON STICKY BILATERAL ISSUES.  IN ADDITION, 
THE OFFICIALS APPEARED LESS CONVINCED OF THE ULTIMATE 
USEFULNESS OF THE "ECONOMIC TASKFORCE," NOTING THAT SO FAR 
THERE WAS NO CLEAR POLICY INSTRUCTION ON GOALS AND METHODS 
OF ANY SUCH GROUP OR HOW THE GVN WOULD POSSIBLE FUND AND 
STAFF ANOTHER SUCH EFFORT.  THEY EXPRESSED CONCERN THAT IT 
WOULD END UP BEING A "SHOW" FORUM THAT WILL CONSUME 
RESOURCES BUT DELIVER NO CONCRETE RESULTS. 
 
--------------------------------------------- ----------- 
TERRORISM/IRAQ:  STAY WITHIN THE INTERNATIONAL FRAMEWORK 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ1935 
 
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ACTION EAP-00 
 
INFO  LOG-00   NP-00    AID-00   EVG-00   CEA-01   CIAE-00  COME-00 
      CTME-00  INL-00   DOEE-00  ITCE-00  DOTE-00  SRPP-00  DS-00 
      EB-00    ED-01    EXME-00  EUR-00   E-00     FAAE-00  FBIE-00 
      UTED-00  VC-00    FRB-00   HHS-01   H-01     TEDE-00  INR-00 
      ITC-01   L-00     VCE-00   AC-01    DCP-01   NSAE-00  NSCE-00 
      OES-01   OMB-01   OPIC-01  PA-00    PER-00   PM-00    PRS-00 
      ACE-00   P-00     SP-00    SSO-00   STR-00   TEST-00  TRSE-00 
      USIE-00  EPAE-00  PMB-00   DSCC-00  PRM-00   DRL-02   G-00 
      NFAT-00  SAS-00     /012W 
                  ------------------F0C0E0  030854Z /38 
R 030854Z OCT 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC 7692 
INFO AMCONSUL HO CHI MINH CITY 
AMEMBASSY BEIJING 
AMEMBASSY SEOUL 
AMEMBASSY TOKYO 
ASEAN COLLECTIVE 
ALL EUROPEAN UNION POST COLLECTIVE 
USEU BRUSSELS 
SECDEF WASHDC//ISA/ACHAO// 
USCINCPAC HONOLULU HI 
 
UNCLAS SECTION 02 OF 03 HANOI 002390 
 
SIPDIS 
 
SENSITIVE 
 
                       UNCLASSIFIED 
 
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6.  (SBU)  ON THE COUNTERTERRORISM FRONT, VIETNAM "WAS 
PLEASED WITH AND STRONGLY SUPPORTED" THE ASEM DECLARATION, 
ACCORDING TO HAU.  HOWEVER, THE PRIME MINISTER MAY HAVE BEEN 
"SOMEWHAT DISAPPOINTED" THAT THE FINAL TEXT DID NOT DISCUSS 
THE "NEED TO ADDRESS POVERTY ALLEVIATION AND THE DEVELOPMENT 
GAP" AS "ROOT CAUSES" OF TERRORISM, ACCORDING TO HAU.  HAU 
ALSO REITERATED THE OFT-HEARD GVN VIEW THAT, IN ADDRESSING 
TERRORISM AND THE IRAQ ISSUE, "RESPECT FOR THE UN CHARTER 
AND INTERNATIONAL LAWS IS MOST IMPORTANT."  A DANISH EMBOFF 
SAID THAT A "MULTILATERAL APPROACH" TO THESE ISSUES WAS A 
"COMMON THEME" EXPRESSED BY ASEM LEADERS. 
 
------------------------------- 
KOREA:  KEEP THE MOMENTUM GOING 
------------------------------- 
 
7.  (U)  CONCERNING THE KOREAN PENINSULA, THE EUROPEAN 
STUDIES CENTER'S DR. THUAN NOTED THAT THE RECENT VISIT OF 
JAPAN'S PRIME MINISTER KOIZUMI TO NORTH KOREA HAD GENERATED 
MOMENTUM TO PUSH FOR "IMPROVED STABILITY" ON THE KOREAN 
PENINSULA AT THE ASEM MEETING.  THE DANISH EMBOFF SAID THAT 
ASEM LEADERS HAD AGREED THAT THIS IS A "GOOD TIME TO ENGAGE 
NORTH KOREA CONSTRUCTIVELY."  THE MFA'S HAU EMPHASIZED THAT 
                       UNCLASSIFIED 
 
PAGE 03        HANOI  02390  02 OF 03  030854Z 
THE GVN IS "ENCOURAGED" BY THE ONGOING DIALOGUE AND 
COOPERATION BETWEEN NORTH AND SOUTH KOREA, AND "HOPES THIS 
TREND WILL CONTINUE." 
 
--------------- 
BILATERAL TALKS 
--------------- 
 
8.  (SBU)  THE VIETNAMESE PRESS ALSO REPORTED FULSOMELY ON 
BILATERAL VISITS PM KHAI MADE TO ICELAND, LUXEMBOURG, AND 
BELGIUM, AS WELL AS A VISIT TO EU HEADQUARTERS.  IN ADDITION 
TO THESE VISITS, THE PRESS REPORTED ON SEVERAL "SIDELINE 
MEETINGS" AT ASEM IV THAT THE PRIME MINISTER HELD WITH 
COUNTERPARTS FROM THE PRC, THAILAND, AND THE PRC.  THE MFA'S 
HAU NOTED THAT THESE MEETINGS WERE VERY SHORT, LASTING 10 TO 
15 MINUTES, AND DID NOT GET INTO SUBSTANTIVE ISSUES.  HAU 
CONFIRMED THAT PM KHAI AND PRC PREMIER ZHU RONGJI HAD NOT 
DISCUSSED THE LAND BORDER ISSUE. 
 
9.  (U)  ACCORDING TO THE MFA'S HAU AND PRESS REPORTS, 
HIGHLIGHTS FROM THE BILATERAL VISITS INCLUDED: 
--AN INVESTMENT PROMOTION AND PROTECTION AGREEMENT WITH 
ICELAND AND AN AGREEMENT TO PROVIDE TRAINING TO GVN MINISTRY 
OF FISHERIES OFFICIALS; 
--A PLEDGE FROM LUXEMBOURG TO PROVIDE NEARLY USD 35 MILLION 
IN ODA OVER FROM 2003-2008, MAKING VIETNAM THE LARGEST 
RECIPIENT IN ASIA OF LUXEMBOURG ODA IN DOLLAR TERMS. 
LUXEMBOURG ALSO PLEDGED USD 250,000 IN EMERGENCY FLOOD 
ASSISTANCE.  FINALLY, LUXEMBOURG AIRLINES PROMISED TO 
DISCUSS THE OPENING OF A DIRECT FLIGHT BETWEEN LUXEMBOURG 
AND HO CHI MINH CITY; 
                       UNCLASSIFIED 
 
PAGE 04        HANOI  02390  02 OF 03  030854Z 
--A SCIENCE AND TECHNOLOGY AGREEMENT WITH BELGIUM; 
--A USD 100 MILLION PLEDGE OF ADDITIONAL AID OVER THE NEXT 
THREE YEARS FROM THE EU; AND, 
--PLEDGES OF SUPPORT FOR VIETNAM'S ACCESSION TO THE WTO FROM 
ALL THE BILATERAL HOSTS. 
 
------------------ 
ASEM V ENLARGEMENT 
------------------ 
 
10.  (U)  HAU SAID VIETNAM IS "EXCITED" TO HOST ASEM V IN 
2004.  THE MFA PLANS TO WORK WITH OTHER MINISTRIES, 
ESPECIALLY MOT, TO COORDINATE PLANS.  MFA IS "CONSIDERING" 
ESTABLISHING A SEPARATE ASEM UNIT IN MFA TO PREPARE FOR ASEM 
V, BUT FOR NOW, THE RESPONSIBILITY REMAINS WITHIN THE ASIA 
II DIVISION, HAU CLAIMED.  THERE IS, HOWEVER, ALREADY AN 
ASEM OFFICE IN THE MULTILATERAL TRADE DIVISION AT MOT. 
 
11.  (U)  HAU REPORTED THAT ASEM ENLARGEMENT WAS NOT 
DISCUSSED AT THE COPENHAGEN MEETING BECAUSE IT HAD BEEN 
VETTED LAST JUNE AT THE FOREIGN MINISTERS' MEETING IN 
MADRID.  "VIETNAM IS HOPEFUL" THAT ASEM V WILL INCLUDE THE 
THREE REMAINING ASEAN MEMBERS (BURMA, CAMBODIA, AND LAOS) 
THAT DO NOT YET PARTICIPATE IN ASEM, BUT HE ACKNOWLEDGED 
THERE ARE "CONCERNS" AMONG SOME EU COUNTRIES REGARDING 
BURMA.  HAU OPINED THAT IT IS ALSO "LIKELY" ADDITIONAL 
 
                       UNCLASSIFIED 
 
                           UNCLASSIFIED     PTQ1936 
 
PAGE 01        HANOI  02390  03 OF 03  030854Z 
ACTION EAP-00 
 
INFO  LOG-00   NP-00    AID-00   EVG-00   CEA-01   CIAE-00  COME-00 
      CTME-00  INL-00   DOEE-00  ITCE-00  DOTE-00  SRPP-00  DS-00 
      EB-00    ED-01    EXME-00  EUR-00   E-00     FAAE-00  FBIE-00 
      UTED-00  VC-00    FRB-00   HHS-01   H-01     TEDE-00  INR-00 
      ITC-01   L-00     VCE-00   AC-01    DCP-01   NSAE-00  NSCE-00 
      OES-01   OMB-01   OPIC-01  PA-00    PER-00   PM-00    PRS-00 
      ACE-00   P-00     SP-00    SSO-00   STR-00   TEST-00  TRSE-00 
      USIE-00  EPAE-00  PMB-00   DSCC-00  PRM-00   DRL-02   G-00 
      NFAT-00  SAS-00     /012W 
                  ------------------F0C0E2  030854Z /38 
R 030854Z OCT 02 
FM AMEMBASSY HANOI 
TO SECSTATE WASHDC 7693 
INFO AMCONSUL HO CHI MINH CITY 
AMEMBASSY BEIJING 
AMEMBASSY SEOUL 
AMEMBASSY TOKYO 
ASEAN COLLECTIVE 
ALL EUROPEAN UNION POST COLLECTIVE 
USEU BRUSSELS 
SECDEF WASHDC//ISA/ACHAO// 
USCINCPAC HONOLULU HI 
 
UNCLAS SECTION 03 OF 03 HANOI 002390 
 
SIPDIS 
 
SENSITIVE 
 
                       UNCLASSIFIED 
 
PAGE 02        HANOI  02390  03 OF 03  030854Z 
STATE FOR EAP/BCLTV, EAP/RSP 
 
 
EUROPEAN COUNTRIES WILL PARTICIPATE, DEPENDING UPON THE 
SCHEDULE OF EU ENLARGEMENT. 
BURGHARDT 
 
                       UNCLASSIFIED