PLANNING MINISTER AND HANO MAYOR REPRIMANDED BY VIETNAM'S CENTRAL COMMITTE

C O N F I D E N T I A L SECTION 01 OF 05 HANOI 000839

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E.O. 12958: DECL: 4/20/2010
TAGS: PGOV ECON PREL VM TRD DPOL
SUBJECT: PLANNING MINISTER AND HANO MAYOR REPRIMANDED BY VIETNAM'S CENTRAL COMMITTE

REF: A) HANOI 686 B) HANOI 637


1. (U) CLASIFIED BY DCM DENNIS HARTER;
REASONS 1.5 (B) AND(D).


2. (C) SUMMARY: THREE CENTRAL COMMITTEE MEBERS --
MINISTER OF PLANNING AND INVESTMENT GIA, ANOI
PEOPLE'S COMMITTEE CHAIRMAN NGHIEN, AND BIN THUAN
PROVINCIAL PARTY CHIEF TRUNG -- WERE CENSRED FOR
MISMANAGEMENT AT THE 10-DAY PLENUM THAT NDED APRIL

19. ALL RETAIN THEIR POSITIONS FOR TE TIME BEING.
MOST OF THE PLENUM FOCUSED ON PREPAING THE OFFICIAL
DOCUMENTS FOR THE NINTH COMMUNIT PARTY CONGRESS AT
THE END OF MARCH 2001. PART BRIEFERS SIGNALED THE
POLITICAL REPORT AND SOCIECONOMIC STRATEGY FOR THE
CONGRESS WOULD EMPHASIE THEMES RAISED BY GENERAL
SECRETARY PHIEU IN HIS 70TH ANNIVERSARY SPEECH,
INCLUDING THE PRIMACY OF THE STATE SECTOR IN VIETNAM'S
"MULTI-SECTOR, MARKET-ORIENTED SOCIALIST ECONOMY."
OVERALL THE PLENUM CONTINUED THE PARTY'S EMPHASIS ON
STABILITY AND INCREMENTAL ECONOMIC POLICY CHANGE, WITH
NO INDICATION OF ANY MAJOR REFORM STEPS PRIOR TO THE
PARTY CONGRESS. ONE BRIEFER, WHEN ASKED ABOUT THE
BILATERAL TRADE AGREEMENT, SAID VIETNAM "NEEDED TO
TAKE SOME TIME TO CLARIFY SOME ISSUES." HIS COMMENTS
GAVE NO SUGGESTION THE CPV IS PREPARED TO MOVE FORWARD
ANYTIME SOON. END SUMMARY.

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THREE CENTRAL COMMITTEE MEMBERS CENSURED
--------------


3. (U) THE NINTH CENTRAL COMMITTEE PLENUM CONCLUDED
ITS TEN-DAY SESSION APRIL 19. MOST OF THE SESSION
FOCUSED ON PREPARATIONS FOR THE NINTH COMMUNIST PARTY
(CPV) CONGRESS, AND BRIEFINGS AT THE PLENUM'S
CONCLUSION EMPHASIZED THE DRAFTING OF KEY REPORTS FOR
THE CONGRESS (DETAILED BELOW). HOWEVER, THE BIG NEWS
OF THE PRESS CONFERENCE BY DAO DUY QUAT, DEPUTY
DIRECTOR OF THE CPV'S COMMISSION FOR IDEOLOGY AND
CULTURE, WAS THAT THREE CENTRAL COMMITTEE MEMBERS
WOULD BE CENSURED FOR MISMANAGEMENT AND CORRUPTION, AS
PART OF THE PARTY'S ONGOING CAMPAIGN OF CRITICISM AND
SELF-CRITICISM.


4. (U) IN RESPONSE TO A REPORTER'S QUESTION, QUAT SAID
THAT TRAN XUAN GIA, MINISTER OF PLANNING AND
INVESTMENT, AND HOANG VAN NGHIEN, HANOI PEOPLE'S
COMMITTEE CHAIRMAN, HAD BEEN REPRIMANDED BY THEIR
PEERS FOR THEIR ROLES IN THE SCANDAL-RIDDEN THANH LONG
WATER PARK, AN ENTERTAINMENT CENTER BEING CONSTRUCTED
IN THE OUTSKIRTS OF HANOI. THE TWO WERE GIVEN
"REPRIMANDS" -- THE LOWEST OF THE PARTY'S FOUR FORMS
OF PUNISHMENT. A PLENUM COMMUNIQUE SAID HANOI
PEOPLE'S COMMITTEE CHAIRMAN NGHIEN ALSO WOULD BE GIVEN
AN OFFICIAL REPRIMAND BY THE PRIME MINISTER.


5. (U) QUAT ALSO ANNOUNCED THAT DINH TRUNG, CHIEF OF
THE BINH THUAN PROVINCIAL PARTY COMMITTEE, HAD
RECEIVED A "WARNING" FROM THE PARTY -- WHICH IS ONE
NOTCH MORE SEVERE THAN A REPRIMAND. TRUNG WAS WARNED
FOR HIS RESPONSIBILITY IN DESTROYING UPSTREAM FORESTS
AT TANH LANH AND FOR HIS FAILURE TO SOLVE PROBLEMS OF
INTERNAL "PARTY SOLIDARITY" IN THE PROVINCE. ALL
THREE OFFICIALS RETAIN THEIR GOVERNMENT AND PARTY
POSTS.


6. (C) THERE WAS NO INDICATION, EITHER IN THE
COMMUNIQUE OR IN BRIEFINGS BY PARTY OFFICIALS, WHETHER
THE GOVERNMENT OR NATIONAL ASSEMBLY MAY CONSIDER
FURTHER SANCTIONS AGAINST ANY OF THE THREE. IT IS
POSSIBLE THE NATIONAL ASSEMBLY SESSION OPENING IN MAY
MIGHT CONSIDER FURTHER SANCTIONS AGAINST GIA OR
NGHIEN, THOUGH THE PARTY DID NOT RECOMMEND FURTHER
ACTION IN THEIR CASES. (NOTE: THE REPRIMAND GIVEN TO
GIA AND NGHIEN WAS LESS THAN THE WARNING GIVEN TO
DEPUTY PRIME MINISTER NGO XUAN LOC AT LAST NOVEMBER'S
PLENUM FOR HIS INVOLVEMENT IN THANH LONG. AT THAT
TIME, THE PLENUM ALSO RECOMMENDED THE ASSEMBLY REMOVE
LOC FROM HIS POST AS DEPUTY PRIME MINISTER, WHICH THE
ASSEMBLY DID IN DECEMBER. END NOTE.)


7. (SBU) THE COMMUNIQUE SAID THE CENSURE STEPS WERE
TAKEN BY THE PLENUM AS PART OF THE SECOND PHASE OF THE
PARTY'S CRITICISM AND SELF-CRITICISM CAMPAIGN, WHICH
FOCUSED ON PARTY MEMBERS HOLDING HIGH-RANKING
GOVERNMENT POSITIONS. THE TWO-YEAR-LONG CAMPAIGN,
WHICH WILL CONTINUE UNTIL MAY 2001, WILL NOW MOVE INTO
ITS THIRD AND FINAL PHASE -- COVERING ORDINARY PARTY
MEMBERS AT LOCAL LEVELS. (COMMENT: BECAUSE THE PLENUM
HAS ANNOUNCED THAT THE SECOND PHASE OF THE CAMPAIGN
HAS CONCLUDED, THIS SUGGESTS THERE WILL NOT BE OTHER
HIGH-LEVEL PARTY MEMBERS CENSURED BY THE PARTY. END
COMMENT.)


8. (C) ONE SURPRISE IN THESE DECISIONS WAS THAT LONG-
TIME CENTRAL COMMITTEE MEMBER AND DEPUTY PRIME MINSTER
FOR AGRICULTURE AND RURAL DEVELOPMENT NGUYEN CONG TAN
WAS NOT INCLUDED IN THE GROUP OF THOSE CENSURED. TAN
HAS BEEN WIDELY CRITICIZED IN THE PRESS FOR HIS ROLE
IN THE THANH LONG WATER PARK; HE AGREED TO THE
ACQUISITION OF THE LAND FOR THE PARK. THE CONSENSUS
AROUND HANOI IS THAT TAN WILL BE ALLOWED TO "RETIRE"
BEFORE OR AT THE PARTY CONGRESS. MINISTER OF
AGRICULTURE LE HUY NGO, WHO SUCCEEDED TAN AS MINISTER
18 MONTHS AGO, REPORTEDLY IS BURNISHING HIS PARTY
CREDENTIALS IN AN EFFORT TO SUCCEED TAN AS DEPUTY PM.
NGO IS WIDELY SEEN AS A PARTY INSIDER WITH NARROW
PARTY POLITICAL INTERESTS. DURING HIS TENURE THE
MINISTRY HAS BECOME LESS ABLE TO ATTRACT DIRECT
FOREIGN DIRECT INVESTMENT IN AGRICULTURE.

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DRAFT PARTY DOCUMENTS EMPHASIZE HACKNEYED IDEOLOGY
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9. (U) THE PLENUM'S PRIMARY FOCUS WAS DISCUSSING THE
DOCUMENTS BEING PREPARED FOR THE PARTY CONGRESS, WHICH
QUAT SAID WOULD BE HELD AT THE END OF MARCH 2001.
DURING THE PLENUM SESSION, THE CENTRAL COMMITTEE
MEMBERS DISCUSSED AND MADE RECOMMENDATIONS FOR THE
THEMES OF THE POLITICAL REPORT, THE SOCIOECONOMIC
STRATEGY FOR 2001-2010, THE FIVE-YEAR ECONOMIC PLAN
FOR 2001-2005, THE REPORT ON REVISING THE PARTY
STATUTES, AND A REPORT ON PERSONNEL IN THE COMMUNIST
PARTY. THE PLENUM APPOINTED DRAFTING COMMITTEES AND
TASKED THEM WITH COLLECTING RECOMMENDATIONS FROM
CENTRAL COMMITTEE MEMBERS, COMMUNIST PARTY MEMBERS AT
ALL LEVELS, AND THE GENERAL PUBLIC, WITH THE GOAL OF
HAVING MORE POLISHED DRAFT DOCUMENTS TO PRESENT TO THE
NEXT PLENUM MEETING IN JUNE.


10. (SBU) THE PLENUM COMMUNIQUE SAID VIETNAM'S
DEVELOPMENT WILL CONTINUE TO BE BASED ON THE TWIN
PILLARS OF "NATIONAL INDEPENDENCE AND SOCIALISM." THE
DRAFT DOCUMENTS BEING PREPARED NOTE VIETNAM WILL
CONTINUE TO PURSUE A "MULTI-SECTOR, MARKET-ORIENTED
SOCIALIST ECONOMY." (COMMENT: AN OXYMORON IF EVER
THERE WAS ONE. END COMMENT.) THE DOCUMENTS ALSO WILL
SPELL OUT THE NEXT STAGES OF THE COUNTRY'S
MODERNIZATION AND INDUSTRIALIZATION, THE IMPACT OF
GLOBALIZATION AND INTEGRATION WITH THE INTERNATIONAL
COMMUNITY, THE NEED TO STRENGTHEN NATIONAL SECURITY,
AND THE NEED TO STREAMLINE PARTY AND STATE STRUCTURES.
THESE TOPICS HAVE BEEN IMPORTANT THEMES ON WHICH PM
KHAI, PRESIDENT LUONG AND PARTY GENERAL SECRETARY
PHIEU HAVE EXPRESSED HANOI'S MORE IDEOLOGICAL VIEWS IN
RECENT MONTHS (REFTELS).



11. (U) IN SEPARATE BRIEFINGS TO THE PRESS BY QUAT AND
TO DIPLOMATS BY DEPUTY HEAD OF CPV EXTERNAL AFFAIRS
PHAM VAN CHUONG, THE PARTY SPOKESPERSONS OUTLINED THE
MAIN THEMES AND IDEAS DISCUSSED. BOTH QUAT AND CHUONG
NOTED THAT GENERAL SECRETARY LE KHA PHIEU'S 70TH
ANNIVERSARY SPEECH WAS EMPHASIZED IN PREPARING THE
DRAFTS FOR THE KEY PARTY DOCUMENTS (DETAILED REFTELS).
LIKE PHIEU'S SPEECH, THE SOCIOECONOMIC DOCUMENTS
STRESS THAT ALL ECONOMIC SECTORS -- PUBLIC SECTOR,
COOPERATIVES, PRIVATE SECTOR, INDIVIDUAL MARKET
SECTOR, AND STATE MARKET SECTOR (PRESUMABLY SOE'S) --
ARE EQUAL, THOUGH THE PUBLIC AND COOPERATIVE SECTORS
HAVE SPECIAL ROLES IN ENSURING STABILITY AND PROMOTING
SOCIAL JUSTICE, AND THESE VALUES MUST ALWAYS BE
PROMOTED.


12. (C) THE PLENUM COMMUNIQUE AND BRIEFINGS BY QUAT
AND CHUONG PROVIDED FURTHER INDICATION THAT ANY
ECONOMIC POLICY CHANGES WILL BE VERY GRADUAL AND
MEASURED; THERE WAS NOTHING TO SUGGEST ANY DRAMATIC
STEPS FORWARD ARE ON THE NEAR-TERM HORIZON. CHUONG
REFERRED TO PHIEU'S COMMENTS EARLIER IN THE DAY TO A
VISITING SINGAPORE DEPUTY PRIME MINISTER AS
ILLUSTRATIVE; PHIEU SAID VIETNAM RECOGNIZES IT MUST
"REARRANGE STATE-OWNED ENTERPRISES" (SOE'S) BUT THIS
NEEDS TO BE DONE WHILE "TAKING INTO ACCOUNT"
UNEMPLOYMENT, SINCE IF REFORM IS NOT PROPERLY DONE,
SOCIAL PROBLEMS WILL RESULT. (COMMENT: FOR THE TIME
BEING AT LEAST, VIETNAM'S CENTRALLY LED "MARKET-
ORIENTED SOCIALIST ECONOMY" IS NOT PURSUING MEANINGFUL
SOE AND OTHER MACROECONOMIC REFORM BECAUSE THE
CONCERNS ABOUT SOCIAL FALLOUT TRUMP THE BENEFITS TO BE
GAINED BY THE REFORMS. STABILITY CONTINUES TO BE THE
WATCHWORD OF THE DAY. END COMMENT.)


13. (C) PLAYING KEY ROLES AT THE PLENUM WERE GENERAL
SECRETARY PHIEU, WHO AS ALWAYS DELIVERED THE KEYNOTE
ADDRESS OPENING THE PLENUM AND PRESIDED OVER THE
SESSION, AND HANOI PARTY CHIEF NGUYEN PHU TRONG.
TRONG, WHO UNTIL FEBRUARY WAS IN CHARGE OF IDEOLOGICAL
MATTERS FOR THE PARTY, BRIEFED THE PLENUM ON ITS FIRST
DAY ON THE DOCUMENTS TO BE PREPARED FOR THE PARTY
CONGRESS. TRONG, WHO IS ONE OF THE MORE STRONGLY
IDEOLOGICAL POLITBURO MEMBERS, LIKELY WILL PLAY A
LEADING ROLE IN OVERSEEING THE DRAFTING OF THESE
DOCUMENTS, PARTICULARLY THE POLITICAL REPORT. TRONG
APPEARS TO HAVE THE CONFIDENCE OF PHIEU, AND HE LIKELY
WILL PLAY A MAJOR ROLE IN THE PARTY CONGRESS.

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NOTHING NEW ON THE BTA
--------------


14. (SBU) DURING THE QUESTION PERIOD, CHUONG WAS ASKED
BY THE BRITISH EMBASSY POLOFF WHETHER VIETNAM WAS
PREPARED TO MOVE FORWARD ON THE BILATERAL TRADE
AGREEMENT (BTA) WITH THE U.S. AND OTHER ECONOMIC
REFORM STEPS SUCH AS THOSE PRESCRIBED BY THE IMF AND
REQUIRED FOR WTO ACCESSION. ACCORDING TO HIS
INTERPRETED RESPONSE, CHUONG SAID, "WE WOULD LIKE TO
TAKE SOME TIME TO CLARIFY SOME ISSUES BEFORE SIGNING
THE AGREEMENT." HE SAID IT WOULD BE EASY FOR VIETNAM
TO SIGN IT AND THEN NOT BE ABLE TO REALIZE IT. "BUT
WE WANT TO SIGN IT AND IMPLEMENT IT, AND THUS WE MUST
UNDERSTAND IT AND HOW TO IMPLEMENT IT." HE SAID
VIETNAM IS "BRAND NEW" TO NEGOTIATING SUCH AGREEMENTS,
AND "WE HOPE THE U.S. SIDE, AS ONE WHO HAS MUCH MORE
EXPERIENCE (THAN WE),WILL BE KIND ENOUGH TO
UNDERSTAND IT (OUR LACK OF EXPERIENCE) AND SOLVE THIS
PROBLEM."


15. (C) COMMENT: CHUONG IS NOT A MAJOR PLAYER IN BTA
NEGOTIATIONS, AND HIS STATEMENTS WERE STANDARD
BOILERPLATE. HIS COMMENTS DID NOT SUGGEST THERE IS
ANY MOVEMENT WITHIN THE PARTY ON THE BTA; RATHER, HE
SEEMED TO SUGGEST THAT "TAKING SOME TIME TO CLARIFY
SOME ISSUES" MAY GO ON FOR A LONG TIME. HIS COMMENTS
CLOSELY TRACK SIMILAR POINTS MADE BY SENIOR GVN
OFFICIALS OVER THE PAST SIX MONTHS. END COMMENT.

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DISCUSSIONS ON PARTY RESTRUCTURING
--------------


16. (U) DURING THE PLENUM THERE WERE DISCUSSIONS ABOUT
RESTRUCTURING ROLES WITHIN THE POLITBURO. IN RESPONSE
TO A REPORTER'S QUESTION, QUAT BRIEFED THAT THE PLENUM
DISCUSSED THREE PROPOSALS FOR RESTRUCTURING THE
POLITBURO'S FIVE-MEMBER STANDING COMMITTEE AND PERHAPS
REPLACING IT WITH AN EIGHT-MEMBER SECRETARIAT. (NOTE:
PRIOR TO THE EIGHTH PARTY CONGRESS, THE POLITBURO HAD
A SECRETARIAT TO HELP SUPPORT THE WORK OF THE PARTY.
END NOTE.) QUAT SAID ONE PROPOSAL WAS TO MAINTAIN THE
STANDING COMMITTEE, BUT HAVE THE GROUP APPOINTED BY
THE CENTRAL COMMITTEE AND REPORTING DIRECTLY TO THE
GENERAL SECRETARY, RATHER THAN APPOINTED BY THE
POLITBURO. THE SECOND PROPOSAL WAS TO REPLACE THE
STANDING COMMITTEE WITH A SECRETARIAT. THE THIRD
PROPOSAL WAS TO MAINTAIN THE STANDING COMMITTEE BUT TO
ADD A SECRETARIAT. QUAT SAID THESE ISSUES WILL BE
FURTHER DISCUSSED AT THE TENTH PLENUM IN JUNE.
(COMMENT: THESE VARYING PROPOSALS SUGGEST THE
POLITBURO IS NOT ABLE TO KEEP UP WITH ITS WORKLOAD AND
IS LOOKING FOR WAYS TO IMPROVE ITS EFFICIENCY. END
COMMENT)


17. (SBU) CHUONG WAS ASKED WHETHER THE PLENUM
DISCUSSED A PROPOSAL TO COMBINE THE ROLES OF COMMUNIST
PARTY GENERAL SECRETARY AND STATE PRESIDENT.
(NUMEROUS SOURCES SUGGEST LE KHA PHIEU HAS BEEN
EXPLORING THE POSSIBILITY OF ASSUMING THE MANTLE OF
PRESIDENT AS WELL, SO HE CAN BENEFIT FROM THE PROTOCOL
RANK OF HEAD OF STATE, IN ACCORD WITH HIS PREEMINENT
POLITICAL POWER. THIS HAS PROVEN AWKWARD FOR PHIEU IN
SEVERAL OF HIS FOREIGN TRAVELS, WHEN HE FEELS HE HAS
NOT BEEN RECEIVED AT AN APPROPRIATELY HIGH LEVEL.)
CHUONG CLAIMED THIS ISSUE WAS NOT DISCUSSED AT THE
PLENUM. (NOTE: HOWEVER, HE ALSO FLATLY TOLD ONE
DIPLOMATIC QUESTIONER THERE WERE NO DISCIPLINARY STEPS
TAKEN AT THE PLENUM. END NOTE.) CHUONG WENT ON TO
SUGGEST THIS MAY BE CONSIDERED AT THE CONGRESS, THOUGH
HE POINTED OUT THAT ONLY HO CHI MINH HAS HELD BOTH OF
THESE POSITIONS CONCURRENTLY.

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SMALL PROTESTS OUTSIDE PARTY HEADQUARTERS
--------------


18. (SBU) FOR TWO DAYS WHILE THE PLENUM WAS MEETING,
APRIL 18 AND 19, A GROUP OF ABOUT 30 VIETNAMESE
BRIEFLY HELD WHAT HAVE BEEN TERMED BY THE FOREIGN
PRESS AS "STREET DEMONSTRATIONS" OUTSIDE PARTY
HEADQUARTERS. ON APRIL 18, THE GROUP, FROM THE
SOUTHERN PROVINCE OF DONG THAP, HELD UP A BANNER THAT
READ, "PEOPLE FROM SA DEC TOWN, DONG THAP PROVINCE ARE
DEPRESSED. NO DEMOCRACY." AFTER ABOUT AN HOUR, THE
GROUP DISPERSED; WITNESSES DID NOT REPORT ANY ARRESTS
OR HARASSMENT BY PLAINCLOTHES POLICE. THE NEXT DAY,
ABOUT 30 DEMONSTRATORS FROM DONG THAP AGAIN GATHERED.
THIS TIME THEIR BANNERS READ: "DOWN WITH CORRUPTED
PEOPLE" AND "LONG LIVE THE COMMUNIST PARTY OF
VIETNAM."


19. (C) COMMENT: IN THIS CONTROLLED SOCIETY, IT IS
DIFFICULT TO KNOW THE MOTIVE OF THESE DEMONSTRATORS
AND WHETHER IN FACT THEIR PROTEST WAS GENUINE.
DEMONSTRATIONS IN FRONT OF CPV HEADQUARTERS ARE RARE,
ESPECIALLY AROUND A KEY PARTY MEETING. BUT THESE
ACTIVITIES ARE SIMILAR TO THOSE TAKEN BY GROUPS WHICH
OCCASIONALLY GATHER NEAR THE NATIONAL ASSEMBLY AND THE
OFFICE AND RESIDENCE OF THE PRIME MINISTER TO PROTEST
PERSONAL OR LOCAL CONCERNS, OFTEN INVOLVING LAND USE
RIGHTS OR CORRUPTION. END COMMENT.


20. (U) WHEN ASKED ABOUT THE PROTESTS, CHUONG
MENTIONED THAT PETITIONS AND COMPLAINTS REGARDING LAND
USE, CORRUPTION AND RED TAPE ARE OFTEN RAISED AT
GRASSROOTS LEVELS. HE OPINED THESE CONCERNS SHOULD BE
ADDRESSED AT THE GRASSROOTS. AT THE CENTRAL LEVEL,
THERE IS AN APPROPRIATE OFFICE TO ADDRESS SUCH
CONCERNS. BUT HE SAID THE PLENUM ITSELF SHOULD NOT
INVOLVE ITSELF IN SUCH LOCAL COMPLAINTS.

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COMMENT: MUDDLING THROUGH ON IDEOLOGICAL MANTRAS
-------------- ---


21. (C) THE CENSURE OF GIA, NGHIEN AND TRUNG SHOWS THE
PARTY'S CRITICISM/SELF-CRITICISM CAMPAIGN CONTINUES TO
HAVE SOME TEETH IN IT. GIA AND NGHIEN, IN PARTICULAR,
HAD BEEN RUMORED TO BE IN LINE FOR REBUKE FOR SOME
TIME, THOUGH DEPUTY PM TAN IS A CURIOUS OMISSION FROM
THIS ROGUES GALLERY. NO MATTER HOW YOU LOOK AT IT,
THE TIRED MARXIST MANTRAS TELEGRAPHED FOR THE KEY
DOCUMENTS OF NEXT YEAR'S COMMUNIST PARTY CONGRESS ARE
DISCOURAGING. THE GENERAL SECRETARY'S INCREASING
RELIANCE ON OLD-LINE DOGMA IS THE ORDER OF THE DAY.
IT REMAINS TO BE SEEN IF THERE IS ROOM IN THIS MIX FOR
PROGRESS ON THE REFORM AGENDA OR A COMMITMENT TO SIGN
THE BTA. FOR THE MOMENT THE SIGNS ARE NOT POSITIVE.
END COMMENT.
PETERSON

CONFIDENTIAL