SLOW BUT STEADY ARGENTINA-VIETNAM RELATIONSHIP

UNCLAS SECTION 01 OF 02 HANOI 003124 SIPDIS C O R R E C T E D C O P Y - ADDING MCNS FOR BUENOS AIRES SENSITIVE UNCLASSIFIED PAGE 02 HANOI 03124 01 OF 02 300036Z STATE FOR EAP/BCLTV; ARA/BSC E.O. 12958: N/A TAGS: PREL PTER ETRD ENRG VM AR CTERR SUBJECT: SLOW BUT STEADY ARGENTINA-VIETNAM RELATIONSHIP ¶1. (SBU) SUMMARY. A RECENT VISIT BY ARGENTINA'S DEPUTY FOREIGN MINISTER UNDERSCORED A SHARED DETERMINATION TO ADVANCE THE LIMITED ARGENTINA-VIETNAM BILATERAL RELATIONSHIP. THE VISIT FOCUSED ON ECONOMIC AND TRADE ISSUES AND ALSO INCLUDED A FRAMEWORK AGREEMENT ON THE PEACEFUL USE OF NUCLEAR ENERGY. THOUGH INCREASINGLY REGULAR EXCHANGES USUALLY AVOID RAISING CONTROVERSIAL ISSUES, THIS VISIT DID INCLUDE AN AFFIRMATION OF SUPPORT FOR COUNTERING INTERNATIONAL TERRORISM. END SUMMARY. ¶2. (U) DURING A VISIT TO VIETNAM NOVEMBER 18-21, ARGENTINA'S DEPUTY FOREIGN MINISTER HORACIO CHIGHIZOLA FOCUSED PRIMARILY ON PROMOTING BILATERAL TRADE, WHICH AMOUNTED TO ONLY ABOUT USD 47 MILLION IN 2000. HE WAS ACCOMPANIED BY EIGHT BUSINESS LEADERS, REPRESENTING 12 ARGENTINEAN COMPANIES. DFM CHIGHIZOLA MET WITH HIS COUNTERPART, VICE FOREIGN MINISTER NGUYEN DINH BIN, AND ALSO CALLED ON FOREIGN MINISTER NGUYEN DY NIEN, TRADE MINISTER VU KHOAN, AND MINISTER OF SCIENCE, TECHNOLOGY, AND ENVIRONMENT CHU TUAN NHA, ACCORDING TO THE MFA AND PRESS REPORTS. CHIGHIZOLA PARTICIPATED IN "SEVERAL BUSINESS ROUNDTABLE DISCUSSIONS," ACCORDING TO ARGENTINEAN EMBOFF MARCELO GILARDONI. UNCLASSIFIED PAGE 03 HANOI 03124 01 OF 02 300036Z -------------- STEADILY IMPROVING BILATERAL RELATIONSHIP -------------- ¶3. (SBU) MFA AMERICAS DEPARTMENT SENIOR EXPERT LE THANH TUNG NOTED THAT WHILE VIETNAM AND ARGENTINA HAD ESTABLISHED DIPLOMATIC RELATIONS IN 1973, "UP TO THE EARLY 90S, WE HAD ALMOST NO RELATIONSHIP." SINCE 1993, HE ADDED, THE TWO COUNTRIES HAVE SEEN A "STEADY IMPROVEMENT" IN THE BILATERAL RELATIONSHIP, WITH A SERIES OF SENIOR LEVEL VISITS AND THE ESTABLISHMENT OF RESIDENT EMBASSIES. (NOTE: VIETNAM REPRESENTATION IS LIMITED IN LATIN AMERICA TO CUBA, MEXICO, BRAZIL, AND ARGENTINA. END NOTE.) FROM BUENOS AIRES, HE CITED VISITS IN 1996 BY THE FOREIGN MINISTER, IN 1997 BY THE PRESIDENT, AND IN 1998 BY THE MINISTER OF JUSTICE. ON THE GVN SIDE, TUNG NOTED VARIOUS MINISTERIAL LEVEL VISITS, INCLUDING IN 2001 BY THE MFA'S FIRST VICE MINISTER AS WELL AS THE MINISTER OF CULTURE AND SPORTS. IN 1999, DEPUTY PRIME MINISTER CAM VISITED ARGENTINA IN HIS THEN-CONCURRENT CAPACITY AS FOREIGN MINISTER. ¶4. (SBU) TUNG SAID THAT PREVIOUS VISITS HAD RESULTED IN AGREEMENTS ON ANIMAL HUSBANDRY AND INVESTMENT PROTECTION. HE NOTED THAT THE SECOND MEETING OF THE JOINT VIETNAMESE- ARGENTINEAN GOVERNMENTAL COMMISSION FOR ECONOMIC COOPERATION IS EXPECTED TO OCCUR IN BUENOS AIRES "PROBABLY NEXT MARCH OR APRIL" AND THAT ITS PREPARATIONS WERE AMONG THE TOPICS DISCUSSED BY DFM CHIGHIZOLA. A SENIOR SRV TRADE MINISTRY OFFICIAL AND "SEVERAL PROMINENT" VIETNAMESE BUSINESSPEOPLE UNCLASSIFIED PAGE 04 HANOI 03124 01 OF 02 300036Z ARE EXPECTED TO ATTEND. -------------- MODEST TRADE VOLUME -------------- ¶5. (SBU) ALTHOUGH THE BILATERAL TRADE VOLUME REMAINS MODEST, TUNG HIGHLIGHTED ITS INCREASE FROM USD 11.5 MILLION IN 1993 TO USD 47 MILLION IN 2000. VIETNAM EXPORTS RICE, RUBBER, FOOTWEAR, AND SOME HANDICRAFTS TO ARGENTINA, WHILE IMPORTING BEEF, OLIVE OIL, WINE, AND FISH POWDER. TUNG ADMITTED THAT CURRENT TRADE "HAS NOT MET OUR EXPECTATIONS OR POTENTIAL." EMBOFF GILARDONI NOTED THAT THE PRIMARY FACTORS LIMITING TRADE ARE THE DISTANCE BETWEEN THE COUNTRIES, A LACK OF FAMILIARITY WITH EACH OTHER'S MARKET CONDITIONS, AND THE "GRAVE FINANCIAL CRISIS" IN ARGENTINA. BOTH OFFICIALS STATED THAT THE NEED TO INCREASE TRADE WAS A FOCUS OF THE DFM'S MEETINGS. ACCORDING TO GILARDONI, THERE ARE NO JOINT VENTURES YET, BUT BOTH SIDES ARE "HOPEFUL" THAT PROGRESS IN THIS AREA WILL OCCUR AFTER THE NEXT JOINT COMMISSION MEETING. -------------- AGREEMENT ON NUCLEAR ENERGY -------------- ¶6. (SBU) DURING THE DPM'S VISIT, THE TWO SIDES SIGNED A FRAMEWORK AGREEMENT ON THE PEACEFUL USE OF NUCLEAR ENERGY. ACCORDING TO TUNG, THIS AGREEMENT "IS IN ACCORDANCE WITH THE NUCLEAR DEVELOPMENT REGULATIONS OF BOTH COUNTRIES." HE NOTED THAT BOTH COUNTRIES WILL EXCHANGE VISITS OF EXPERTS, UNCLASSIFIED PAGE 05 HANOI 03124 01 OF 02 300036Z BUT DID NOT PROVIDE SPECIFICS AS TO WHAT POTENTIAL PROJECTS MIGHT RESULT FROM THIS AGREEMENT, WHICH HE DESCRIBED AS RATHER "GENERAL." -------------- MUM ON POLITICAL ISSUES--EXCEPT TERRORISM -------------- ¶7. (SBU) TUNG AND EMBOFF GILARDONI STATED SEPARATELY THAT THIS AND PREVIOUS VISITS HAVE "FOCUSED ON ECONOMICS" AND ONLY DISCUSSED POLITICAL ISSUES TO THE EXTENT THERE ARE "MUTUAL INTERESTS." BOTH OFFICIALS SAID THAT ISSUES SUCH AS HUMAN RIGHTS AND RELIGIOUS FREEDOM ARE NEVER ON THE AGENDA. TUNG EMPHASIZED, HOWEVER, THAT THE ISSUE OF TERRORISM WAS RAISED AND THAT BOTH SIDES "REAFFIRMED THEIR COMMITMENT TO FIGHTING INTERNATIONAL TERRORISM." TUNG ADDED THAT BOTH SIDES AGREED THIS SHOULD BE DONE IN ACCORDANCE WITH "INTERNATIONALLY ACCEPTED PRINCIPLES." PORTER UNCLASSIFIED