NORTH KOREAN BANKING: MFA NERVOUS IN THE FACE OF

S E C R E T HANOI 002239 SIPDIS SIPDIS STATE FOR EAP/MLS AND EAP/K E.O. 12958: DECL: KOREAN REUNIFICATION TAGS: EFIN KTER ECON IO PREL NK VM SUBJECT: NORTH KOREAN BANKING: MFA NERVOUS IN THE FACE OF PRESS STORIES REF: REF A: SECSTATE 105317 REF B: HANOI 1594 REF C: HANOI 1595 Classified By: CDA Jon Aloisi, Reasons 1.4 (b/d) ¶1. (S) Ministry of Foreign Affairs (MFA) officials contacted us August 31 to request clarification of Treasury Undersecretary Stuart Levey,s itinerary during his trip to the Asia Pacific region in July 2006. Econoff provided MFA officials with this information, which U/S Levey had already shared with them during his trip. In further discussion, the MFA official implied that the open press play on Vietnam,s compliance with U.S. requests to shut down North Korean bank accounts has become an unsettling issue, which now has the attention of very senior levels within the Government of Vietnam (GVN). That the inquiry came from the MFA America's Desk and not the State Bank of Vietnam, our primary interlocuter to date on this issue, suggests that further cooperation will require closer scrutiny at higher levels. ¶2. (S) Comment: Post believes that a shift in quote ownership unquote of this issue within the GVN could prove constructive, providing of course that the GVN determines in the end that cooperation to isolate and limit the activities of a dangerous DPRK enhances Vietnam,s national security. At this stage, Post would welcome a demarche from Washington that would have us: underscore our appreciation for steps taken by Vietnam so far; clarify that we did not seek public discussion on this issue; but emphasize that Vietnam,s actions are part of a broad international campaign which serves all our interests. End Comment. CHARGE:ALOISI