Identifier
Created
Classification
Origin
06HANOI244
2006-02-06 06:55:00
UNCLASSIFIED
Embassy Hanoi
Cable title:  

A/S HILL DISCUSSES BURMA, CAMBODIA, LAOS, CHINA

Tags:  PREL PHUM CB BM LA VM 
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UNCLAS SECTION 01 OF 03 HANOI 000244 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL PHUM CB BM LA VM
SUBJECT: A/S HILL DISCUSSES BURMA, CAMBODIA, LAOS, CHINA
WITH SENIOR VIETNAMESE DIPLOMATS


UNCLAS SECTION 01 OF 03 HANOI 000244

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PREL PHUM CB BM LA VM
SUBJECT: A/S HILL DISCUSSES BURMA, CAMBODIA, LAOS, CHINA
WITH SENIOR VIETNAMESE DIPLOMATS



1. Summary: In a frank lunch meeting January 13 with
visiting EAP Assistant Secretary Christopher R. Hill, senior
GVN diplomats said that Vietnam is worried about China's
increasing influence in Southeast Asia, particularly Burma,
Cambodia and Laos, and urged the United States to engage
more with these countries. Hun Sen, they predicted, will
"not go too far" in his political actions, which are
designed to protect his efforts to secure public support for
his coalition in advance of the 2008 elections in Cambodia.
Incentives will have more of an effect on Hun Sen than
criticism. Both sides expressed a desire to pursue dialogue
in a more formal channel in the future. End Summary.


2. EAP Assistant Secretary Christopher R. Hill met three
high-ranking GVN diplomats for lunch January 13 at the
Ambassador's residence: Assistant Foreign Minister for the
Americas Nguyen Duc Hung; Assistant Foreign Minister for
Southeast Asia Do Ngoc Son; and, Ambassador Trinh Quang
Thanh, Director General of the Institute for International
Relations. The conversation focused on China's role in Asia
and U.S. relations with Southeast Asia, particularly
mainland Southeast Asia. The Ambassador, POL/C, PolOff and
A/S Hill's Special Assistant also attended.


3. A/S Hill observed that Vietnam is playing an increasingly
positive role in the region, and that the potential for a
close U.S.-Vietnam relationship is building. Our
relationship with Vietnam will not be focused on China, he
predicted, but on our many common interests. Vietnam's
transformation into a capitalist economy is evident from the
vibrant commerce visible on the streets of Hanoi, despite
the prominent placement of statues of Lenin. Ambassador
Thanh responded that though Marxism-Leninism remains the
ideological underpinning of the Vietnamese State, the people
of Vietnam care mostly about peace, prosperity, security and
the ability to send their children to good schools.

CHINESE INTERESTS IN VIETNAM
--------------


4. Ambassador Thanh acknowledged that Chinese investment in
Vietnam is low compared to the very high (and growing)
levels of trade, especially on the border. The limited
Chinese investment dollars are focused on natural resources,

AFM Hung noted, highlighting Chinese interest in an
investment in a bauxite mining operation in the Central
Highlands near the Cambodian border. This investment is
particularly interesting because the Chinese have also
purchased a 99-year lease on 40,000 HA of land on the
Cambodian side of the border opposite the site of the
planned Bauxite operation, Thanh said, ostensibly with the
purpose of growing trees for paper pulp.

BURMA AND CAMBODIA
--------------


5. The huge land purchase on the border brings Cambodian
politics into the picture, AFM Son noted, because the issue
of the Vietnam-Cambodia border has become contentious and
also because the land the Chinese purchased has an existing
population of Cambodians that will be displaced. Cambodian
Prime Minister Hun Sen's political opponents have used
sensitive international issues such as the border and the
Chinese land purchase to inflame public opinion against him,
Son said. A/S Hill replied that Hun Sen has demonstrated
his lack of sophistication in dealing with the opposition by
treating them so harshly, thus turning local critics into
international heroes.


6. AFM Son noted that Hun Sen's Cambodian People's Party
(CPP) and FUNCINPEC have worked hard to strengthen their
coalition and are actively preparing for the 2008 elections.
The opposition's tactic of focusing on Cambodia's relations
with its neighbors to fan nationalist sentiment and popular
discontent is harmful to the CPP and FUNCINPEC. Vietnam,
AFM Son continued, solved its border problem with Cambodia
on the basis of international law and past agreements in
order to come up with a good, defensible solution. A/S Hill
commented that Hun Sen's problem is that he seems unable to

HANOI 00000244 002 OF 003


defend his regime's decisions in a public forum, and instead
resorts to taking action against his critics.


7. AFM Son said that Vietnam has been a frequent target of
the opposition's efforts to undermine Hun Sen's government
through criticism of improvements in Vietnam-Cambodia
relations. Still, Vietnam has refrained from responding in
kind, and instead has pursued low-key confidence-building
measures along the border, providing assistance to
Cambodians in border areas by allowing them to use
Vietnamese infrastructure such as hospitals and schools.
"Cambodian politics are complicated and difficult to
understand, so we do not try to interfere," he said. The
Ambassador noted that there is a big difference between
interference and constructive influence, and Vietnam is in a
position to constructively influence developments in Phnom
Penh. A good example of constructive influence can be seen
in the ASEAN statement on Burma, he added.


8. Responding to A/S Hill's statement that Burma has become
an embarrassment to ASEAN, Ambassador Thanh said that the
result of the international pressure on Burma, from ASEAN
and other countries, has been to drive Burma "into the arms
of the Chinese." The United States, Ambassador Thanh said,
needs to engage Burma more. AFM Son agreed. "The more
pressure we put on Burma, the closer the Burmese get to
China," he said, pointing out that the Chinese Foreign
Minister skipped the July 2005 ASEAN Post-Ministerial
Conference (where Burma was forced to give up the 2006
Chairmanship of ASEAN) and instead went straight to Rangoon.
The Burmese regime is defensive and wary of Western
countries, Ambassador Thanh pointed out, because it believes
that its legitimacy and survival are in jeopardy. The
Burmese are close to China, he continued, but their only
alternative to balance China has become India. AFM Hung
opined that the United States should engage more with
Southeast Asia in general, and mainland Southeast Asia in
particular. Burma, Cambodia and Laos are all moving closer
and closer to the Chinese orbit because of perceived
hostility or indifference from the United States, he said.


9. A/S Hill asked about the potential influence Thailand and
Vietnam could have over Hun Sen and the regime in Burma.
AFM Son observed wryly that Hun Sen is very shrewd and
listens to Vietnam only when it is both convenient and
profitable for him to do so. Hun Sen is also very capable
of manipulating his neighbors and other countries in the
region, Son said. Hun Sen knows that the top priority for
regional countries is stability in Cambodia, with the
secondary concern being growing Chinese influence. These
concerns restrict the degree to which regional countries can
pressure Hun Sen. Thailand could conceivably have a larger
role to play, but the Thai are still recovering from the
breakdown in relations that occurred between Cambodia and
Thailand in January 2004 (following the torching of the Thai
Embassy in Phnom Penh). In general, Thailand lacks the
goodwill and trust of its neighbors, but Vietnam and
Thailand have coinciding interests in the region.


10. AFM Son noted that in Hun Sen's mind, the opposition
uses his accomplishments and the things he does to build the
country as tools to discredit him. He is both pragmatic and
nationalist, AFM Hung observed, and as a result, confronting
him bluntly on any issue is likely to fail. AFM Son said
that the top priority of Hun Sen and FUNCINPEC is to improve
their popularity in advance of the 2008 elections, and their
strategy for doing that is to "build the country and develop
the economy." Anything the United States could provide to
assist with that will have a positive effect on Hun Sen, he
predicted. China knows this, he said; in August 2005, Hun
Sen visited China and came away with USD 200 million in aid
and low interest loans for infrastructure development. A/S
Hill observed that Hun Sen's actions in Cambodia have become
a real problem, generating serious negative attention and
creating a situation where Cambodia could become as much of
a pariah state as Burma is. AFM Son predicted that Hun Sen
"will not let it go too far" because he is, in the end,
practical and reasonable.


HANOI 00000244 003 OF 003


LAOS
--------------


11. AFM Hung said that one constant for all Southeast Asian
countries is the understanding that they need good relations
with both the United States and China, and that excessive
closeness to either is not in their best interests. With
that in mind, the United States can expect both Cambodia and
Laos to open up to better relations, unless, due to
excessive pressure, they become completely alienated like
Burma. Ambassador Thanh noted that Laos is not opposed to
better relations with the United States, but has been
disappointed with the results of its efforts so far. Laos
expected to see much more benefit from signing the BTA with
the United States, but the signing did not lead to
additional projects to alleviate poverty, Laos' top
priority. Ambassador Hill replied that the allocation of
U.S. resources to a country is a function of that country's
strategic importance to the United States and U.S. domestic
interest. Unlike, Afghanistan, for example, Laos has
neither strategic importance nor U.S. domestic interest.
AFM Son replied that Laos does have importance to China, and
as a result, the Chinese are moving in fast, especially on
the economic front.

U.S.-VIETNAM RELATIONS
--------------


12. A/S Hill noted that policy discussions on regional
issues are very useful for the United States and suggested
the United States and Vietnam think seriously about how to
pursue dialogue more systematically. AFM Hung said Vietnam
is ready and willing to pursue a strategic dialogue with the
United States at the Vice Minister level. Turning to WTO
negotiations, A/S Hill urged the three senior officials not
to let talks drag on over small points of contention because
the end benefits for Vietnam will dwarf any small
concessions made now.


13. A/S Hill has cleared this message.

BOARDMAN