TFUS01: TREASURY UNDERSECRETARY TELCON WITH STATE

UNCLAS HANOI 002900 SIPDIS STATE FOR S/CT, EB/ESC/ESP AND EAP/BCLTV TREASURY FOR OASIA E.O. 12958: N/A TAGS: PTER PREL EFIN VM CTERR SUBJECT: TFUS01: TREASURY UNDERSECRETARY TELCON WITH STATE BANK DEPUTY DIRECTOR DUONG THU HUONG UNCLASSIFIED PAGE 02 HANOI 02900 070342Z REF: A) STATE 165224: B) STATE 178983; C) HANOI 2721 ¶1. AT 8:30 AM, NOVEMBER 1 (LOCAL TIME),TREASURY UNDER SECRETARY FOR INTERNATIONAL AFFAIRS JOHN B. TAYLOR SPOKE VIA SIPDIS TELEPHONE FROM WASHINGTON TO DR. DUONG THU HUONG, DEPUTY GOVERNOR OF THE STATE BANK OF VIETNAM. (THE CALL WAS ARRANGED IN ADVANCE AT THE REQUEST OF U/S TAYLOR.) U/S TAYLOR EXPRESSED APPRECIATION ON BEHALF OF THE USG FOR WHAT VIETNAM HAD DONE THUS FAR TO SEARCH FOR ASSETS BELONGING TO TERRORISTS OR THOSE WHO SUPPORT TERRORISTS. HE URGED VIETNAM TO CONTINUE ITS ACTIVE COOPERATION IN THIS INTERNATIONAL EFFORT AND TOLD MADAME HUONG TO CONTACT THE U.S. EMBASSY SHOULD THE SBV FIND ANY INFORMATION PERTAINING TO TERRORIST ASSETS. ¶2. MDM. HUONG REPLIED THAT THE GVN WAS TAKING THIS ISSUE VERY SERIOUSLY. THUS FAR, BANKS HAD BEEN ASKED TO SEARCH THEIR RECORDS FOR ASSETS BELONGING TO THE INDIVIDUALS AND ORGANIZATIONS NAMED ON BOTH LISTS RECEIVED FROM THE U.S. (BOTH THE 27 NAMES RECEIVED REF A AND THE 39 ADDITIONAL NAMES PROVIDED REF B) THUS FAR, 40 BANKS (ABOUT 2/3 OF THE TOTAL) HAD RESPONDED TO THE REQUEST TO SEARCH FOR THE FIRST LIST OF 27 NAMES, AND NO ASSETS HAD BEEN LOCATED. MDM. HUONG PLEDGED THAT THE SBV WOULD CONTINUE TO WORK ON THIS ISSUE AND WOULD DO ALL IT COULD TO HELP THE U.S. IN THIS MATTER. ¶3. AFTER THE PHONE CALL, MDM. HUONG PROVIDED ADDITIONAL DETAIL TO ECONOFF REGARDING PROGRESS IN THE SEARCH. SHE SAID THE SBV HAD ORDERED THE SEARCH FOR ASSETS BELONGING TO UNCLASSIFIED PAGE 03 HANOI 02900 070342Z THE 27 INDIVIDUALS OR ORGANIZATIONS ON THE FIRST LIST EARLY IN OCTOBER AND SET A DEADLINE OF OCTOBER 12. SHE SAID THAT THE SBV WAS FOLLOWING UP WITH THE BANKS THAT HAD NOT YET REPLIED. BUT, SHE DID NOT ELABORATE CONCERNING HOW THE SBV WAS DOING THIS OR WHICH BANKS HAD FAILED TO REPORT THUS FAR. SHE ALSO REPORTED THAT THE SBV HAD ISSUED A SECOND REQUEST FOR INFORMATION REGARDING THE LIST OF 39 NAMES POST PROVIDED THE GOVERNMENT ON OCTOBER 16, AND THAT BANKS WERE REQUIRED TO RESPOND BY NOVEMBER 2. SHE NOTED THAT "WE'VE NEVER DONE ANYTHING SO SWIFTLY" BUT WAS TAKING THE EXTRA EFFORT IN RESPONSE TO THE MINISTRY OF FOREIGN AFFAIRS REQUEST TO EXPEDITE THE RESPONSE TO THE USG REQUEST. ¶4. ON WEDNESDAY, OCTOBER 31, POST RECEIVED A LETTER OFFICIALLY RESPONDING TO OUR REQUEST TO IDENTIFY AND FREEZE ASSETS OF THE TERRORISTS AND TERRORISTS ORGANIZATIONS BELONGING TO LIST OF 39 NAMES, SAYING THAT SUCH A REQUEST HAD BEEN FORWARD BY THE SBV TO "ALL COMMERCIAL BANKS THAT ARE AUTHORIZED TO CONDUCT INTERNATIONAL TRANSACTIONS." ¶5. COMMENT: POST WISHES TO THANK TREASURY FOR ITS ASSISTANCE IN MAKING THIS CALL HAPPEN -- THE FIRST OF ITS KIND WITH VIETNAM. MDM. HUONG WAS VISIBLY APPRECIATIVE OF THIS EFFORT. PORTER UNCLASSIFIED