Ambassador's Dinner with Hanoi City People's

UNCLAS SECTION 01 OF 02 HANOI 001833

SIPDIS

E.O. 12958: N/A
TAGS: KPAO VM PGOV ETRD PREL SCUL OEXC DPOL
SUBJECT: Ambassador's Dinner with Hanoi City People's
Council Chairman


1. Summary: At the invitation of Phung Huu Phu, Chairman
of the Hanoi City People's Council (HCPC),the Ambassador
attended a dinner on July 14 to discuss Hanoi's efforts to
establish more links with the United States and its Sister
City plans. Phu also commented on the Twelfth Plenum of the
Central Committee of the Communist Party that week and the
importance of fighting corruption in Vietnam. (Note: Phu
also holds the position of First Deputy Secretary of the
Hanoi City Party Committee, the second most powerful
position in the Hanoi Party apparatus). HCPC officials at
the dinner meeting included Nguyen Quan Thu, External
Affairs Director, Le Van Hoat, Budget and Fiscal Department
Head and Le Quang Nhue, Internal Affairs Director. PAO and
APAO accompanied the Ambassador. End Summary.

Hanoi: Building Ties to America
--------------


2. At a meeting with the Ambassador on July 14, Phung Huu
Phu, Chairman of the Hanoi City People's Council, began by
thanking the Public Affairs Section (PAS) for organizing an
excellent itinerary for a Voluntary Visitors (VOLVIS)
Program in April for a nineteen-member delegation to
Washington, DC, New York and San Francisco, including
officials of the Hanoi City People's Council and Hanoi's
business community. Although this was his third visit to
the United States, Phu said he had found this trip
especially useful and effective in establishing a broad
base of contacts in business, education and local
government. In fact, earlier in the week he had met with
one of his new contacts from the trip, Henry Gallanger, of
the Vietnam Enterprise Group based in Washington, D.C. to
discuss real estate development plans in Hanoi.


3. Noting the success of Prime Minister Phan Van Khai's
recent trip to the United States, Phu emphasized that
bilateral relations are "good at the moment" and asked for
further efforts by the Embassy to open new doors for the
City of Hanoi, including resources for improving
infrastructure, water sanitation, information technology,
emergency services and public libraries. Hanoi is committed
to sending key officials to the United States for training
in business management, urban planning and information
technology, according to Phu. After visiting several
universities in April, Phu noted that he wants to attract
more American educational institutions to establish offices
and projects in the capital city.


4. The Ambassador agreed that the Prime Minister's trip
marks a new stage in relations and that the two countries
have much more work ahead in continuing the positive
momentum created by the visit. He assured Phu that the
Embassy would work together with Hanoi officials to
identify resources in building commercial and other ties,
especially through non-government organizations.


Insight into the Communist Party Plenum
--------------


5. Asked about the recently completed Twelfth Plenum of
the Central Committee of the Communist Party of Vietnam,
Phu commented that the success of the Prime Minister's
recent trip to the United States was not due to the Prime
Minister's "personal enthusiasm" towards the United States,
but rather the Vietnamese Communist Party's support for
building a good forum with the United States for discussing
an array of issues. Whatever the Prime Minister said or
did on his trip is a reflection of the Party, Phu
emphasized. He commented that the Vietnamese Government is
looking towards "more careful preparation" to promote
bilateral relations when the Party convenes for next year's
Tenth Congress.


6. In response to the Ambassador's urging for more
transparency in explaining the Party's thinking to its
public, Phu responded that in principle, some issues
discussed by the Communist Party cannot be publicized.
However, when the Party makes decisions and they become
policy, it becomes apparent what issues have been discussed
"on behalf of the people." Nevertheless, Phu acknowledged
that when the Party meets to discuss the best ways to serve
the people, it must also consider its weaknesses and review
areas where it has not done well.


7. Phu asserted that overall, the agenda of the Party is
open, adding that a primary concern is promoting democracy,
not only in society but also within the Party. He admitted
that corruption is a "sad" disease that the Vietnamese
Government must fight and resolve through engagement of the
media and public opinion. Phu said that due to a subsidy-
based system, poverty was divided equally in Vietnam, but
some had become prone to corruption following the
introduction of market economy practices. He explained
that Vietnam had been shocked by the "sudden arrival" of
corruption. He likened this "sudden arrival" to the first
time a car drives through a village causing villagers to
gawk as it passes by. Phu argued that the Vietnamese people
are viewing and considering corruption as a new phenomenon,
but foreigners' perception of corruption in Vietnam is
"excessive." He agreed that the longstanding mechanism of
exercising power by granting favors is another root cause
of corruption and acknowledged that the Government must
make people "afraid" to commit crimes through awareness and
setting clear legal markers. He added that fighting
corruption will be a difficult task because so many
Vietnamese are poor.


8. The Ambassador stressed that Vietnam must take basic
steps to fight corruption before it becomes acceptable in
society. These steps include breaking the tradition of
authorities granting favors, providing a fair wage for
officials and implementing a fair but strict legal system
to create a framework where corruption is punished.

Hanoi-Los Angeles Sister City Link in the Works
-------------- --


9. Regarding the possibility of a Sister City
relationship with an American city, Phu said that although
he did not meet with any Sister City officials in April, he
had discussed the issue with colleagues at the Vietnamese
Consulate General in San Francisco. Consulate officials
are now working on plans for an agreement with Los Angeles,
with the goal of a signing ceremony by March 2006. Phu said
he received positive signals from Los Angeles city
officials and Vietnamese-Americans in that area about
supporting the Sister City proposal. The Ambassador
offered to weigh in once Los Angeles Mayor's office sends
positive signals. The Ambassador also added that the
Vietnamese-American community is a tremendous resource and
opportunity to build bridges with Vietnam. The Embassy
would continue to encourage Vietnamese-Americans to make
trips to Vietnam and to establish business and educational
ties here.

Future of Urban Sprawl
--------------


10. When asked about his views regarding the future of
urban planning and development of Hanoi, Phu responded that
the Ciputra complex near Noi Bai Airport and the
neighborhoods north of the Red River would become the two
urban centers in the next ten years. Suggesting that
Ciputra would be an ideal location for a new Embassy
facility, Phu said that annex offices closer to other
government buildings could supplement the main complex. The
capital region would also gradually add a third, fourth and
fifth ring to its traffic circles. Phu acknowledged that
there are weakness to Hanoi's urban planning and stressed
that Hanoi desperately needs expertise from the United
States to avoid the mistakes made by other Asian cities.
The Ambassador urged transparency in the contract bidding
process to ensure foreign investors a level playing field.


11. Finally, regarding next year's APEC Summit in Hanoi,
Phu noted that although other leaders will be in Hanoi,
President Bush will be the "focal point" and hopes the
visit will gain approval of the American people despite
some sensitive bilateral issues.


MARINE