DOMINICAN REPUBLIC AND VIETNAM ESTABLISH

UNCLAS E F T O SECTION 01 OF 02 SANTO DOMINGO 003582

SIPDIS

SENSITIVE

STATE FOR WHA, WHA/CAR, WHA/EPSC;
NSC FOR SHANNON AND MADISON; SOUTHCOM ALSO FOR
POLAD;TREASURY FOR OASIA; USDOC FOR
4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION
USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI

E.O. 12958: DECL: 01/18/2015
TAGS: PREL ETRD EINV VM DR CH
SUBJECT: DOMINICAN REPUBLIC AND VIETNAM ESTABLISH
DIPLOMATIC TIES

REF: SANTO DOMINGO 579


1. (SBU) Summary: The Dominican Republic and Vietnam
announced the establishment of diplomatic relations here on
July 7, and a visiting Vietnamese delegation discussed
possibilities for increased trade, investment, and cultural
relations. The visitors scored a modest success on their
first try, pulling ahead of the Chinese who have repeatedlty
pressed for diplomatic recognition through visiting economic
and political delegtations. But the opening of diplomatic
relations with Vietnam is unlikely to have any immediate
economic benefits for either side. The visitors requested
support for Hanoi's WTO bid, but got no commitment. The
Dominican Government may have scored points with its
left-wing supporters and may see Vietnam in the longer term
as a potential oil supplier, in this country's quest to
control soaring energy costs. End summary.


2. (SBU) Vietnam, with an eye on the PRC,s diplomatic
offensive in the Caribbean (reftel) , has scored a modest
success here on the first attempt. On July 7, Dominican
Foreign Minister Carlos Morales Troncoso and visiting
Vietnamese Vice Foreign Minister Vu Dung signed a joint
communique announcing the establishment of diplomatic
relations between the two countries. Both principals said
diplomatic relations would facilitate increased trade,
investment, and cultural relations. Vu said Vietnam
anticipated working closely with the Dominicans in
international organizations.

WTO ambitions
- - - - - - -


3. (SBU) Secretary of State without Portfolio Miguel Mejia, a
Palace adviser with ties to leftist regimes abroad who
assisted in arranging visits here by at least three PRC
commercial and political delegations since last year,
involved himself in the arrangements for the Vietnamese. He
told the press that the Vietnamese visit would be "the
starting point for establishment of relations with some six
Asian countries." In addition to their other objectives in
Santo Domingo, he said the Vietnamese visitors would seek
Dominican support for Hanoi,s entry into the World Trade
Organization (WTO).

4,. (SBU) According to the Foreign Ministry, the Vietnamese
did indeed request support for their WTO bid, but Santo
Domingo made no commitment. The MFA Asia division denied a
Vietnamese news report that Morales Troncoso had acceded to
their request, and said the issue must be submitted to the
interagency National Council of Trade Negotiations prior to
any decision.

No economic agreements - yet
- - - - - - - - - - - - - - -


5. (SBU) The 10-person Vietnamese delegation also met with
President Fernandez, Industry and Commerce Minister Francisco
Javier Garcia, Council of External Investment (CEI) chairman
Eddy Martinez, and officials of the Technical Secretariat of
the Presidency. The Vietnamese announced that they had
discussed with Garcia the possibility of his visiting Vietnam
and of exchanging visits by business delegations. But the
Foreign Ministry indicated no agreements were reached on
investments or trade.

The Chilean connection
- - - - - - - - - - - -


6. (SBU) The Dominican MFA said neither side has plans to
exchange ambassadors. The Dominican Republic lacks resources
to establish any diplomatic representation in Hanoi and has
no ambassador posted nearby. For now, relations may be
handled via the nations' embassies in Chile. This was the
channel used by the Vietnamese to propose the establishment
of relations, the MFA told us.


7. (SBU) Vietnam,s ambassador to Chile, Nguyen Van Dao,
traveled with the delegation to Santo Domingo. A fluent
Spanish speaker, Nguyen delivered an hour-long speech July 6
at President Fernandez,s NGO, the Global Foundation for
Democracy and Development (www.funglode.org). The ambassador
said this was the first visit to the Dominican Republic by
all the delegation's members.

The glorified capitalists
- - - - - - - - - - - - -


8. (U) Nguyen outlined his country,s transformation from
post-war devastation and poverty to a high-growth economy,
due to market-oriented economic policies over the past 20
years. "Today Vietnam glorifies the entrepreneur," he
asserted; individuals are allowed to become prosperous so the
nation can prosper. The government is encouraging private
business development in the provinces. Per capita income has
soared from US $60 to over $500 -- a still low figure,
indicating that much remains to be done. He particularly
emphasized the establishment of property rights for peasant
farmers and growing exports of food (especially rice),
petroleum, coffee, clothing, shoes, and furniture. Vietnam
has diplomatic relations with 160 nations and economic ties
with more than 100, he said. In foreign policy, "Vietnam is
willing to be a friend of the international community."

9. (U) The Vietnamese delegation also included Foreign
Ministry director Nguyen Manh Hung, Trade Ministry director
Nguyen Thang Hung, Office of Government of Vietnam
subdirector Bui Huy Hung, Finance Ministry subdirector Dang
Ngoc Minh, National Commission for International Cooperation
representative Le Thanh Lam, Planning and Investment Ministry
official Gianh Thanh Tung, Finance Director Dang Tuan Hiep,
and Foreign Ministry officials Nguyen Khanh Hoa and Do Ming
Hung.

Comment
- - - -


10. (SBU) Vietnam achieved its initial political objective on
the first try, pulling ahead of the Chinese, whose diplomatic
offensive has been slowed by the Dominican Republic's
traditional ties to Taiwan. The Vietnamese also came
prepared to discuss enhanced economic relations, but there is
little prospect of significant advances in the near term.
For now, the Fernandez administration's main benefit may be
political, in having scored points with the left wing of the
ruling PLD. In the longer term, the Dominican Government
will value relations with any potential oil suppliers, in its
quest to control soaring energy costs.
HERTELL