AMBASSADOR AND VFM LE VAN BANG DISCUSS WTO, HUMAN

UNCLAS SECTION 01 OF 05 HANOI 000670

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: PREL ETRD APEC PHUM AMGT OVIP CVIS CASC VM

SUBJECT: AMBASSADOR AND VFM LE VAN BANG DISCUSS WTO, HUMAN
RIGHTS, APEC ARRANGEMENTS, BILATERAL ISSUES

REF: A. Hanoi 551; B. Hanoi 552; C. Ho Chi Minh City 289;

D. Hanoi 582; E. Hanoi 638; F. 05 Hanoi 3259

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1. (SBU) Summary: The Ambassador focused on Vietnam's WTO
entry, practical developments in our human rights
discussions, possible Congressional visits and developments
in the bilateral relationship over the next six months
during a March 21 lunch with Vice Foreign Minister Le Van
Bang. VFM Bang confirmed that Minister of Trade Truong Dinh
Tuyen plans to go to the United States in April and wants to
close WTO negotiations during that visit. The Ambassador
responded that the timing of closing is up to the
Vietnamese: whenever they are ready to offer a "rock solid"
agreement, the United States is ready to sign it. Signing
the agreement would begin the U.S. Congressional PNTR
process, which will lead to debates on Vietnam's human
rights record, the Ambassador and VFM Bang agreed. With
that in mind, Vietnam and the United States should work on
practical short-term human rights steps.


2. (SBU) Summary, cont'd: The Ambassador and the VFM also
discussed the possibility of a visit by Congresswoman
Loretta Sanchez (D-CA) and related complications (based
partly on the GVN's dissatisfaction with the December 2005
visit of Congressman Chris Smith (R-NJ)). The Ambassador
briefed VFM Bang on his recent discouraging discussions on
religious freedom with one provincial People's Committee
Chairman in the Northwest Highlands, noting that provincial
authorities in the Central Highlands and GVN officials in
Hanoi have shown a more positive attitude towards the issue.
VFM Bang confirmed that the GVN is restricting some visa
issuances during the 10th Party Congress in April, and that
the United States has been allocated hotel rooms for APEC in
the Sheraton, Sofitel Plaza and Thang Loi hotels. End
Summary.


3. (SBU) The Ambassador met March 21 with Vice Foreign
Minister Le Van Bang and Deputy Director of the Americas
Department Pham Van Que at a local hotel at the Ambassador's
invitation. The previous day, Bang had met with visiting
Deputy National Intelligence Officer for East Asia Terrence
Markin. There was some overlap in the two conversations.
VFM Bang started the conversation with the Ambassador by
recapping his statements to Deputy NIO Markin about the need
to "control" the Agent Orange issue. "300,000 children are
victims of birth defects in every district of Vietnam, and
these children need daily care," he told Markin. VFM Bang
said he has discussed the issue with the business community
in hopes of "finding some solutions to keep it from souring
the atmosphere in advance of the President's visit." The
GVN will not ask the USG for assistance directly, and "we
will keep it out of the press as much as possible." The GVN
will ask businesses and NGOs to make donations to disabled
children and schools.

WTO
---


4. (SBU) VFM Bang told Deputy NIO Markin March 20 that
Vietnam is looking to finish WTO negotiations and achieve
Permanent Normal Trading Relations with the United States
before November 2006 to "create a positive atmosphere in
Vietnam" in advance of the President's visit. Progress in
the last round of negotiations is encouraging, and Vietnam
is looking forward to further progress in the next round
which will take place in Geneva in late March. "Tiny
political issues remain," VFM Bang said. Vietnam hopes to
formally close the bilateral negotiations during a planned
visit by Minister of Trade Tuyen to Washington, DC in April.
VFM Bang told the Ambassador that Vietnam believes that the
United States wants to wait until June to close negotiations
because that is when U.S. Trade Representative Portman will
be in Ho Chi Minh City for the APEC Trade Ministerial.


5. (SBU) The Ambassador informed VFM Bang that the United
States is not wedded to any particular date for closing
negotiations, and is ready to do so "as soon as Vietnam
wants, as long as the agreement is on a firm commercial
basis." USTR is ready to close as early as this weekend if
Vietnam presents a serious and acceptable agreement. "We
are not going to hold things up unnecessarily," the
Ambassador said. "The timing is in your hands."


6. (SBU) VFM Bang was gratified to hear this, and noted that
in his recent meetings in Washington he spoke with Senate
and House of Representatives staffers and asked them to pass
a Vietnam PNTR resolution as quickly as possible. U.S.
business community representatives told him that "we can get

HANOI 00000670 002.2 OF 005


PNTR easily if we have a rock-solid bilateral WTO
agreement," VFM Bang reported. The Ambassador agreed that
it will be easier for Vietnam to get PNTR if the final
bilateral agreement is built on a rock-solid foundation, but
"there are issues that have to be solved." The United
States is willing to negotiate actively, and has offered new
papers on automobiles and banking; however, Vietnam will
also have to be proactive to close the negotiations with a
good agreement. For example, it will be necessary for
Vietnam to address the perception that by giving zero
percent tariffs to Chinese pork and beef products, Vietnam
has advantaged China over U.S. pork and beef producers. VFM
Bang replied that Vietnam believes that both sides have the
political will to finish negotiations, with the sole concern
that if the business community wants something
"extraordinary" beyond both WTO standards and what the
Vietnamese have already granted to Australia, Canada and the
EU, there might be some trouble. The Ambassador assured VFM
Bang that the outstanding issues on the U.S. side will not
be surprises to Vietnam. He cautioned VFM Bang that the
United States will also consider the multilateral Working
Party document in its PNTR decision. VFM Bang said Vietnam
understands this, and also that Vietnam's receiving WTO
member treatment from the United States depends not only on
acceding to the WTO but also on Congress granting PNTR.

PNTR Will Trigger a Human Rights Debate
--------------


7. (SBU) The Ambassador warned VFM Bang that the debate in
the United States before the Vietnam PNTR vote will likely
address issues beyond trade. In particular, human rights
will be considered. VFM Bang said Vietnam is well aware of
this, and that the issue is part of "step two" of Vietnam's
WTO strategy, which includes the positive Human Rights
Dialogue held in Hanoi in February, 2006 (Refs A and B).
DRL Assistant Secretary Barry Lowenkron came away from the
February dialogue "positive," but the United States is still
looking for concrete progress to demonstrate that the
Dialogue was results-based, the Ambassador stressed. VFM
Bang asked "hypothetically" what steps Vietnam could take in
the short term that would have the strongest impact on the
U.S. perception of Vietnam's human rights record. The
Ambassador answered that releasing high-profile political
prisoners such as Pham Hong Son would make a strong impact.
VFM Bang asked if the United States is prepared to accept
Pham Hong Son if Vietnam frees him on the condition that he
leaves Vietnam. The Ambassador said that this would be up
to Son to decide, but that a case could be made for his
legal entry into the United States. VFM Bang noted that
Vietnam might also be able to consider granting a prison
visit in accordance with USG requests. He added that Do Van
My, a prisoner of concern to the United States, is scheduled
to be released imminently and may already have been
released.


8. (SBU) In addition to prisoner releases, the Ambassador
said that progress on long-term human rights issues, such as
Decree 31 and restrictions on the Internet, would be well
received in Washington. A clear signal that Vietnam takes
these issues seriously and is ready to move to address them
would add to the substance of the Human Rights Dialogue. He
advised VFM Bang that Congressman Chris Smith will be
holding a hearing on Human Rights, including Vietnam, on
March 29. Administration officials will testify and will
convey a "balanced" message on Vietnam, especially on
religious freedom.

Religious Freedom: Good and Less Good Results from Recent
Travel to the Central and Northwest Highlands
-------------- --------------


9. (SBU) The Ambassador said he had good trips recently to
the Central Highlands and the Northwest provinces of Son La
and Hoa Binh (Ref C). He said he came away from the Central
Highlands believing that local officials understand the
importance of the religious freedom issue and are willing to
move forward on it. The Son La trip, however, was less
positive; though the religious community in Son La is
significantly smaller than the community in the Central
Highlands, believers there continue to face real problems.
The Chairman of the Son La People's Committee said that
there are "no believers," a dishearteningly untrue
statement. On the positive side, Chairman of the Religious
Affairs Commission (CRA) Ngo Yen Thi has been in contact
with the Embassy and has made encouraging statements about
focusing on religious freedom problems in the Northwest
Highlands (Ref D).

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10. (SBU) VFM Bang said that the GVN leadership is trying to
get the rest of the bureaucracy, at the central and
provincial levels, to focus on religious freedom and ethnic
minorities. However, the GVN is still sorting out problems
caused by some people in religious areas who mix religion
and politics. Specifically, VFM Bang singled out Father
Nguyen Van Ly, who recently sent a public letter to the
Australian Parliament urging the abolition of the Communist
Party in Vietnam, and Buddhist patriarch Thich Quang Do,
whose individual and family political activities go back
many years.

Vietnam Human Rights: Just like the United States. Sort of.
-------------- --------------


11. (SBU) Launching into a somewhat disjointed defense of
Vietnam's current state of political development, VFM Bang
urged the Ambassador to consider Vietnam as "a young country
and society, just like the United States was immediately
after independence from Britain." Recently, Vietnam has
experienced "more debate over ideas." (And there should be
more of that, the Ambassador interjected.) In the 1950s,
VFM Bang continued, the United States experienced
McCarthyism, when many people were accused of being un-
American. Vietnam is in that period now, with some people
quick to challenge the patriotism of anyone who questions
official policy. The GVN and the CPV see political
instability in other states in Southeast Asia such as
Thailand and the Philippines, and perceive that this has a
negative effect on the economy. "This cannot be tolerated,"
Bang said. "We need a strong government to lead the economy
and allow Vietnam to weather severe challenges, such as SARS
and Avian Influenza." A truly strong government, the
Ambassador countered, must be able to accept criticism from
any source and would be further strengthened by a robust and
free NGO community and private press.


12. (SBU) The United States should look at Vietnam in its
own context, VFM Bang said. "Our system is not different
from yours, where you hold terrorists in Guantanamo Bay
without trial and engage in wiretapping and surveillance of
American citizens without court orders." Changing tack, he
shifted to a timeline defense of Vietnam's human rights
policies: "Twenty years ago, no one would have suggested
that we would have a market economy and that the Communist
Party would admit businessmen, but here we are. Maybe
twenty years from now, we will be commenting about the
equally surprising changes in the political system."


13. (SBU) Leading Bang back to the present, the Ambassador
noted that U.S.-Vietnam discussions on religious freedom and
human rights "are not going to be over," even if the PNTR
effort is successful. There will continue to be issues and
cases that our governments will have to address. The
crucial component of this interaction will be constructive
and practical dialogue. We need to work to ensure that the
Human Rights Dialogue shows practical results. With that in
mind, the United States is still very interested in
receiving a province-by-province breakdown of religious
freedom developments as promised in the past. A recent
report provided to the Embassy by the CRA (Ref. E) was
appreciated, but insufficiently detailed. Another positive
step the United States and Vietnam can take is to facilitate
discussion and dialogue between the GVN and some of its
fiercest critics in the United States Congress. The visit
by Congressman Chris Smith was a success in this regard (Ref
F). Another opportunity has emerged with the possible
upcoming visit of Congresswoman Loretta Sanchez (D-CA),the
Ambassador said.

GVN Frustration with Rep. Smith and Worries about Rep.
Sanchez
-------------- --------------


14. (SBU) VFM Bang said he was very disappointed with the
outcome of the Smith visit. Smith had promised to work
cooperatively with Vietnam on the issues of combating
trafficking in persons (TIP),preventing abortion and
promoting religious freedom. Out of three issues, Smith had
acted on only one (religious freedom) and done so in a
negative way by making a statement urging the linkage of
Vietnam's WTO entry with the human rights situation. As a
result, VFM Bang's superiors in the GVN have criticized him
and questioned why Vietnam welcomed Congressman Smith's
visit at all. The Ambassador noted that to a passionate
believer like Rep. Smith, progress on these important issues
will always seem too slow. Furthermore, the issue of

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Congressional consideration of Vietnam's WTO entry through
the PNTR vote will inevitably touch on Vietnam's human
rights situation, something that the GVN should already
recognize. (Note: In his meeting with Deputy NIO Markin,
VFM Bang acknowledged that Vietnam is aware of Congressional
resistance to Vietnam's entry into the WTO, especially from
Congressman Smith and Senator Sam Brownback (R-KS). "We
know we cannot please them, but we can give you the
ammunition to fight for us. We will make progress on
religion, Montagnards, the Central Highlands, etc., to
create a positive, conducive atmosphere between now and the
end of the year," he pledged. End Note.) Preventing visits
by critics such as Congressman Smith or Congresswoman
Sanchez only gives them more of a reason to criticize
Vietnam and reduces their exposure to the true situation,
the Ambassador observed.


15. (SBU) Exasperated, VFM Bang protested that as a result
of the Smith visit he had "taken fire from the front and
from the back," facing criticism from Chris Smith directly
and also from "conservatives" in Vietnam who questioned VFM
Bang's judgment in encouraging the visit. "I would rather
just face criticism from Congressman Smith," VFM Bang said,
"which is normal and expected. You have to consider the
Vietnamese domestic political situation as well." The
Ambassador told VFM Bang that the visit to Vietnam altered
Congressman Smith's opinion and gave him a more realistic
understanding of the situation that would, over time, be to
Vietnam's benefit. The same benefits will accrue from a
visit by Congresswoman Sanchez. She has proposed a visit
from April 11-16, he added.

Sanchez Visit: Not Before National Party Congress
-------------- --------------


16. (SBU) "Oh dear me, no, no, no, no," VFM Bang replied.
"The National Party Congress starts the 17th of April, so
that is the most sensitive possible time. She must come
later." VFM Bang conceded that Congresswoman Sanchez has a
standing invitation to visit Vietnam from Vice Chairwoman of
the National Assembly's Foreign Affairs Committee Madame Ton
Nhu Thi Ninh, so the issuance of a visa is not really in
doubt, but to ensure the visit is as successful as possible
and does not result in negative consequences, it should be
rescheduled for after the Party Congress. The Ambassador
suggested that the best thing the GVN could do is to explain
to Congresswoman Sanchez that the April dates are not
convenient and then suggest a specific alternative date
consistent with the U.S. House of Representatives' probable
recess periods. In addition, the GVN could soften the blow
of the postponement of the visit by agreeing in advance to
Congresswoman Sanchez' request to see one or two high-
profile prisoners of concern, such as Pham Hong Son or
Nguyen Vu Binh. Looking pained, VFM Bang noted that such a
request would be "very sensitive."

Ambassador: How About ESF, Peace Corps, PSI, Repatriation
Agreement?
-------------- --------------


17. (SBU) Switching gears, the Ambassador said the United
States is looking for practical evidence of our growing,
beneficial bilateral relationship in advance of the
President's November trip. He highlighted the Maritime
Agreement, which is proceeding, and raised the possibility
of establishing a U.S. Peace Corps presence in Vietnam. The
Peace Corps would be an excellent addition to bilateral
relations, and a significant number of high-level officials
in the United States cooperated to recommend that Peace
Corps come to Vietnam. He urged VFM Bang to agree to allow
a Peace Corps assessment team to come to Vietnam to discuss
the issue. VFM Bang said it is clear to him that high-level
USG officials are enthusiastic about the program. The GVN
will consider the possibility carefully.


18. (SBU) The Ambassador also noted that the U.S. Congress
approved USD two million in ESF to be spent on the Central
Highlands in Vietnam, and discussions of possible projects
are ongoing. The USG would like to see one or more projects
up and running as soon as possible and will want to
highlight this assistance during the President's trip. Gia
Lai and Kon Tum provincial officials are excited about the
possibility, the Ambassador told VFM Bang. The USG welcomes
additional GVN ideas and suggestions.


19. (SBU) In the lead-up to the President's visit, the
Ambassador continued, it would be useful to see progress on
a few issues of high importance to the United States.

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Vietnamese endorsement of the Statement of Interdiction
Principles of the Proliferation Security Initiative would be
a very positive step, as would the Vietnamese acceptance of
a repatriation agreement to handle the cases of Vietnamese
citizens who are no longer eligible to live in the United
States because of criminal convictions. Another issue that
needs to be addressed is the problem of the visa status of
the additional staff members the USG needs to hire through
the International Organization for Migration to work on
Humanitarian Resettlement.

Pre-Party Congress Visa Restrictions Confirmed
-------------- -


20. (SBU) The Ambassador asked VFM Bang about recent reports
that Vietnam would suspend or slow down visa issuance in the
lead-up to the 10th Party Congress in April, and again in
November during APEC. VFM Bang confirmed that "there may be
a slowdown" and agreed that a formal policy statement would
be useful. (Note: MFA officers subsequently confirmed to
Poloff that the MFA will reduce (and is reducing) visa
issuances to "unannounced" and unsponsored travelers.
"There will be no problems at the airport for visa holders,"
the MFA official said, "and there will be no problem
applying for visas for sponsored travelers and those with
invitations, as well as those applying through established
tour and travel agent channels." The GVN is tightening
security in advance of the Party Congress and so wants to
ensure that GVN officials have a point of contact in Vietnam
for all foreign visitors. This will make it difficult or
impossible for independent travelers without specific
Vietnam contacts to obtain visas during this "sensitive
period," the MFA staffer acknowledged. End Note.)

APEC Prep: Hotels and Procedures
--------------


21. (SBU) A related issue, the Ambassador said, is
preparation for APEC. The United States needs an easier
process for accreditation and visa issuance for APEC
delegates, and needs that process to be explicit and
transparent. In addition, the United States is seeking
confirmation that its hotel accommodation requirements will
be met. VFM Bang said the Sheraton in Hanoi has been
allocated to the U.S. delegation in its entirety, as well as
the Thang Loi Hotel. He also said the Sofitel Plaza will be
available. (Note: Two-thirds of the Sofitel Plaza has
already been allocated to other delegations, and we have not
received written confirmation of our allocation of the
remaining rooms there. Even with that confirmation, we
remain 400-450 rooms short. End Note.)

MARINE