ASEM IV - THE VIEW FROM HANOI

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 PAGE 03 HANOI 02390 01 OF 03 030854Z 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 PAGE 04 HANOI 02390 01 OF 03 030854Z ¶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 PAGE 01 HANOI 02390 02 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 -------------- 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 PAGE 02 HANOI 02390 02 OF 03 030854Z STATE FOR EAP/BCLTV, EAP/RSP -------------- -------------- ¶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