VIETNAM ECONOMIC DELEGATION TO NORTH KOREA REBUFFS

C O N F I D E N T I A L HANOI 002389

SIPDIS

SIPDIS

DEPARTMENT FOR EAP/MLS, EAP/K

E.O. 12958: DECL: 09/19/2016
TAGS: PREL PGOV PINR ECON KS KN VM
SUBJECT: VIETNAM ECONOMIC DELEGATION TO NORTH KOREA REBUFFS
REQUEST FOR AID, CALLS FOR GREATER DPRK OPENNESS

Classified By: Pol/C Marc Knapper per 1.4, (b/d)


1. (C) Summary: The GVN recently sent a Ministry of
Trade-led delegation to Pyongyang and Nampo. According to a
GVN readout of the visit provided to the ROK Embassy, during
the delegation's August 28-September 1 visit, the Vietnamese
turned down a DPRK request for food and other assistance,
saying that North Korea should buy what it needs on the open
market, as Vietnam now has a market economy. The Vietnamese
delegation also urged North Korea to open its economy, noting
that Vietnam's steps in this area led to the lifting of the
U.S. trade embargo. The Vietnamese representatives rejected
North Korea's excuses for the poor shape of its economy --
namely, U.S. policy, natural disasters and the collapse of
the Soviet Union -- by pointedly asserting that Vietnam has
overcome these same obstacles. End Summary.


2. (C) ROK Embassy Political First Secretary Lee Kang-kuk
provided Pol/C with the GVN's readout of a recent Vietnamese
Ministry of Trade-led mission to the DPRK. The eight-person
Vietnamese delegation, led by Vice Minister of Trade Pham The
Rue, visited Pyongyang and Nampo August 28 to September 1 and
included working-level officials from the Ministries of
Trade, Finance, Foreign Affairs, Construction and Posts and
Telematics. In addition to participating in the 6th
Vietnam-DPRK Economics Conference in Pyongyang, the
delegation paid a courtesy call on the North Korean Trade
Minister and visited a number of industrial sites, including
a PRC-built glass factory in Nampo. The DPRK's delegation to
the conference was led by Vice Minister of Trade Ri
Myong-sang.


3. (C) The ROK Embassy's Lee related that, during the
delegation's visit, the DPRK formally requested 200,000 tons
of rice and 5,000 tons of rubber. The Vietnamese delegation
responded that Vietnam cannot afford to provide this kind of
assistance to North Korea. Furthermore, if the DPRK needs
these goods, it should purchase them from Vietnam on the open
market, as Vietnam is now a market economy. In response to
the Vietnamese delegation's request that the DPRK repay
Vietnam for the 20,000 tons of rice it gave North Korea in
1996, the North Koreans said that they are not in a position
to do this. The two sides agreed that their respective
Ministries of Finance would continue to discuss this matter.
They also agreed to provide each other lists of needed goods
to try to arrange barter trade between the two countries.


4. (C) The Vietnamese delegation pressed the DPRK to reform
and open its economy, according to the readout the ROK
Embassy received. Because Vietnam has opened its market, it
has developed quickly, and its increased openness led the
United States to lift its trade embargo on Vietnam. North
Korea should do the same. The North Korean representatives
reportedly responded that the DPRK economy is in poor shape
because of U.S. policy, natural disasters and the collapse of
the Soviet Union. The Vietnamese rejoined that Vietnam has
also suffered from natural disasters and had to deal with the
collapse of the USSR, but that it was able to grow stronger
because it opened its economy and overcame the U.S. embargo.
The North Koreans concluded by agreeing to "try to
understand" the Vietnamese representatives' points.
MARINE