PRESIDENTIAL TRAVELS SHORE UP RELATIONS WITHIN ASEAN

UNCLAS SECTION 01 OF 02 HANOI 003186 SIPDIS STATE FOR EAP/BCLTV AND EAP/RSP E.O. 12958: N/A TAGS: PREL ETRD PTER CB BN IN VM ASEAN PH CTERR SUBJECT: PRESIDENTIAL TRAVELS SHORE UP RELATIONS WITHIN ASEAN ¶1. (U) SUMMARY: PRESIDENT LUONG'S RECENT TRAVELS TO FOUR FELLOW ASEAN MEMBERS PROMOTED GENERAL GOOD NEIGHBORLINESS AND COMMON DESIRES FOR EXPANDED TRADE. WHILE "SUCCESSFUL," UNCLASSIFIED PAGE 02 HANOI 03186 01 OF 02 041041Z THESE VISITS SEEM MEMORABLE PRIMARILY AS PHOTO OPS. THE PRESIDENT DID CALL FOR COOPERATION AGAINST INTERNATIONAL TERRORISM ON AT LEAST ONE STOP. END SUMMARY. ¶2. (U) THE MONTH OF NOVEMBER HAS BEEN NOTEWORTHY FOR THE NUMBER OF HIGH-LEVEL OFFICIAL VIETNAMESE VISITS ABROAD. IN ADDITION TO THE CURRENT VISIT TO CHINA BY COMMUNIST PARTY SECRETARY-GENERAL NONG DUC MANH, ONGOING VISITS TO SOUTH AND SIPDIS NORTH AMERICA BY DEPUTY PRIME MINISTER NGUYEN TAN DZUNG, AND A EUROPEAN VOYAGE BY DEPUTY PRIME MINISTER NGUYEN MANH CAM, VIETNAMESE PRESIDENT TRAN DUC LUONG VISITED FOUR ASEAN NATIONS -- BRUNEI, CAMBODIA, INDONESIA, AND THE PHILIPPINES. THIS FLURRY OF OFFICIAL VISITS COINCIDED WITH THE VIETNAMESE NATIONAL ASSEMBLY'S WINTER SESSION AND THE NA'S NOVEMBER 28TH RATIFICATION OF THE US-VIETNAM BILATERAL TRADE AGREEMENT. ¶2. (U) THE MFA BRIEFED US AND FRENCH DIPLOMATS ON PRESIDENT LUONG'S TRAVELS ON NOVEMBER 21. ACCORDING TO THE MFA, THE COMMON THEME ON PRESIDENT LUONG'S TRAVELS WAS PROMOTION OF BILATERAL TIES RATHER THAN EXPANSION OF ASEAN RELATIONS, ALONG WITH THE USUAL REFERENCES TO MUTUAL NON-INTERFERENCE AND MUTUAL COOPERATION. LUONG'S REMARKS ALSO EMPHASIZED ENHANCING TRADE AND FOSTERING POLITICAL STABILITY IN THE REGION. MOST STOPS INCLUDED SIGNING OF VARIOUS AGREEMENTS AND PROMISES TO PROMOTE BILATERAL TRADE. ¶3. (SBU) BRUNEI: THE VISIT TO BRUNEI NOVEMBER 12-14 WAS SIGNIFICANT FOR NEW AGREEMENTS ON TOURISM AND TRADE. BRUNEI EMBASSY SECOND SECRETARY SITI ZULIA HAJI TENGAH TOLD POLOFF THAT HER COUNTRY WAS ESPECIALLY PLEASED THAT THE VIETNAMESE UNCLASSIFIED PAGE 03 HANOI 03186 01 OF 02 041041Z HEAD OF STATE HAD FINALLY BEEN ABLE TO ACCEPT THE SULTAN'S FOUR-YEAR-OLD INVITATION. DURING THE VISIT, THE TWO SIDES SIGNED AN MOU ON BILATERAL COOPERATION DESIGNED TO ENCOURAGE GREATER AGRICULTURAL TRADE AND TOURISM. SHE PREDICTED, HOWEVER, THAT OIL AND NATURAL GAS DEVELOPMENT BETWEEN THE TWO PETROLEUM-EXPORTING STATES WILL BE LIMITED, GIVEN THAT MALAYSIA SEEMS TO HAVE BEATEN BRUNEI TO THE PUNCH IN VIETNAM'S OIL AND GAS SECTOR. SHE NOTED HER COUNTRY'S HOPES THAT ANTICIPATED DIRECT AIR-SERVICE LINKING BANDAR SERI BEGAWAN AND HO CHI MINH CITY WILL SPARK MORE PRIVATE SECTOR INTEREST BETWEEN THE TWO COUNTRIES. SHE ADDED THAT NO GOVERNMENT-TO-GOVERNMENT DIRECT TRADE IS EXPECTED OR PLANNED AT THIS TIME. ¶4. (SBU) CAMBODIA: LUONG'S ARRIVAL IN PHNOM PENH ON NOVEMBER 26TH MARKED THE FIRST VIETNAMESE PRESIDENTIAL VISIT SINCE THEN-PRESIDENT LE DUCH ANH'S VISIT IN 1995. CAMBODIAN EMBASSY SECOND SECRETARY CHIM VICHANY RATED LUONG'S MEETINGS AS "VERY SUCCESSFUL." TRADE AND INVESTMENT, PARTICULARLY ALONG THE BORDER, WERE THE PRIMARY TOPICS OF DISCUSSION. BOTH SIDES AGREED THAT CITIZENS IN THE BORDER PROVINCES WOULD NOT NEED TRAVEL DOCUMENTS TO CROSS, AND THAT EACH INDIVIDUAL WOULD BE ALLOWED TO CARRY GOODS VALUED UP TO USD 35 DOLLAR DUTY FREE. VICHANY ALSO NOTED THAT PHNOM PENH WAS LOOKING TO VIETNAM AND ITS RELATIVE ECONOMIC SUCCESS TO ASSIST CAMBODIA IN DEVELOPING ITS OWN ECONOMY. CONTRARY TO VIETNAMESE MEDIA REPORTS THAT DISCUSSIONS ON BORDER DEMARCATION ARE CONTINUING IN AN ATMOSPHERE OF "MUTUAL UNDERSTANDING AND GOOD NEIGHBORLINESS," VICHANY CLAIMED THAT THIS ISSUE HAD ALREADY BEEN RESOLVED. UNCLASSIFIED PAGE 04 HANOI 03186 01 OF 02 041041Z ¶5. (U) INDONESIA: BOTH SIDES HAVE EXPRESSED SATISFACTION THAT THE NOVEMBER 10-12 VISIT FURTHERED THE SPIRIT OF COOPERATION BETWEEN THE TWO NATIONS, PARTICULARLY IN MAKING PROGRESS ON ESTABLISHMENT OF DIRECT AIR SERVICE, INCREASING TWO-WAY TRADE (IN PARTICULAR RICE EXPORTS FROM VIETNAM),AND PROMOTION OF SCIENTIFIC AND TECHNOLOGICAL COOPERATION. THE TWO PRESIDENTS ALSO REPORTEDLY ADDRESSED THE NEED TO FINALIZE THE DELINEATION OF THE CONTINENTAL SHELF BETWEEN THE TWO COUNTRIES, WITH LUONG REITERATING VIETNAM'S DESIRE TO KEEP THIS DISCUSSION IN A BILATERAL FORMAT. BOTH PRESIDENTS ALSO VOICED THEIR SUPPORT FOR THE FIGHT AGAINST TERRORISM. THE NOVEMBER 5-6 ASEAN MEETING AND THE OCTOBER 21-23 APEC SUMMIT'S DISCUSSIONS ON TERRORISM WERE CITED AS FRAMEWORKS TO FOLLOW IN FUTURE REGIONAL AND GLOBAL EFFORTS AGAINST TRANSNATIONAL CRIMES. ¶6. (SBU) PHILIPINES: LUONG'S NOVEMBER 14-16 VISIT WAS ONLY THE SECOND VIETNAMESE PRESIDENTIAL VISIT TO THE PHILIPPINES SINCE THE OPENING OF DIPLOMATIC RELATIONS IN 1976 (THEN- PRESIDENT ANH VISITED IN 1995). BOTH COUNTRIES AGREED TO INCREASE RICE EXPORTS AND THE TWO PRESIDENTS ALSO DISCUSSED HOW TO DEAL WITH THE WORLDWIDE ECONOMIC SLUMP. IN ADDITION, THE PHILIPPINES AGREED TO HELP SUPPORT VIETNAM'S EVENTUAL BID TO ENTER THE WTO. HOWEVER, MANILA WAS REPORTEDLY DISAPPOINTED THAT THE TWO SIDES FAILED TO REACH AN AGREEMENT ON DEFINITIVE NUMBERS ON RICE EXPORTS OR THE PROBLEMATIC ISSUE OF VIETNAMESE VISA OVERSTAYERS. ¶7. (SBU) COMMENT: PREDICTABLY, PRESIDENT LUONG'S TRAVELS HAVE BEEN HAILED IN THE VIETNAMESE MEDIA AS GREAT SUCCESSES. UNCLASSIFIED PAGE 02 HANOI 03186 02 OF 02 041041Z THE RATIONALE FOR THE TIMING OF THESE TRAVELS REMAINS UNCLEAR, HOWEVER. AS MUCH AS PRESIDENT LUONG EMPHASIZED ECONOMIC TOPICS AND STRENGTHENING BILATERAL RELATIONS IN GENERAL, HIS INTRA-ASEAN VISITS SEEM MEMORABLE MOSTLY AS LONG-AWAITED PHOTO-OPS. PORTER UNCLASSIFIED