Identifier
Created
Classification
Origin
06HANOI862
2006-04-17 08:58:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Hanoi
Cable title:  

SPEAKER OF THE HOUSE DELEGATION MEETS NATIONAL ASSEMBLY CHAIRMAN NGUYEN VAN AN

Tags:  OTRA PREL PHUM KIRF ECON ETRD WTO VM 
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R 170858Z APR 06
FM AMEMBASSY HANOI
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INFO RUEHHM/AMCONSUL HO CHI MINH CITY 0951
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RHHMUNA/CDR USPACOM HONOLULU HI
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TAGS: OTRA PREL PHUM KIRF ECON ETRD WTO VM SUBJECT
SUBJECT: SPEAKER OF THE HOUSE DELEGATION MEETS NATIONAL ASSEMBLY
CHAIRMAN NGUYEN VAN AN

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SUBJECT: SPEAKER OF THE HOUSE DELEGATION MEETS NATIONAL ASSEMBLY
CHAIRMAN NGUYEN VAN AN

HANOI 00000862 001.2 OF 006



1. (SBU) Summary: Visiting Speaker of the House of
Representatives Dennis Hastert delivered a basic message in
Hanoi: we support, in principle, Vietnam's economic
development and openness and will work hard to pass
Permanent Normalized Trade Relations for Vietnam because
international economic integration and economic development
are good for mankind and passing PNTR is the right thing to
do. His delegation strongly cautioned the Vietnamese that
trade votes are difficult at any time, but especially in an
election year, and that Vietnam's human rights record will
be an important issue in the debate. National Assembly
Chairman Nguyen Van An highlighted the historical linkages
between the United States and Vietnam and described
Vietnam's economic development to date. He was obviously
pleased to hear Speaker Hastert commit to trying to pass
PNTR; it is less clear if he understood the other delegation
members' warnings that it might not succeed. Describing
himself as a Buddhist, An declared that religious activity
within Vietnam is robust. End Summary.


2. (SBU) Speaker of the House Dennis Hastert had meetings
with Vietnam's leadership April 14. In his first meeting
with National Assembly Chairman Nguyen Van An, An noted that
he had just come from opening the 15th (and last) Plenum of
the Central Committee of the Communist Party before the
beginning of the 10th National Party Congress. After this
unsubtle reminder that the Speaker's visit is coming at a
sensitive time for Vietnam, An extended a "warm welcome to
the first visit of the Speaker of the U.S. House of
Representatives to Vietnam." Vietnam highly values this
significant and important visit because it marks an
important milestone in the relationship between the U.S.
Congress and the Vietnamese National Assembly. It was
regrettable that the United States and Vietnam could not

hold such a meeting sixty years ago when then-President Ho
Chi Minh had extended an invitation and letter to President
Harry Truman stating that Vietnam wanted "complete
independence and comprehensive cooperation with the United
States." That goal has not changed since 1946, An stressed.
He pointed out the historical linkages between the United
States and Vietnam, using the similarities in language
between the two countries' declarations of independence as
an example.


3. (SBU) Speaker Hastert thanked An for his gracious
welcome, and said that his delegation sees this opportunity
to re-establish mutual understanding and communication as
very important. It is unfortunate that the conversations of
today did not happen in 1946, and as a result many people
suffered. He introduced the delegation, which included:

Speaker Hastert (R-IL)
Rep. Michael Oxley (R-OH)
Rep. Sherwood Boehlert (R-NY)
Rep. Frank Lucas (R-OK)
Rep. Ray LaHood (R-IL)
Rep. Paul Ryan (R-WI)
Rep. Randy Neugebauer (R-TX)
Rep. Dan Boren (D-OK)

U.S. PRIORITIES: HUMAN RIGHTS, POW/MIA, TRADE, PNTR
-------------- --------------


4. (SBU) Speaker Hastert told Chairman An that the issues of
interest to the delegation include trade, permanent
normalized trade relations (PNTR) and related issues such as
human rights and fullest possible accounting of those
missing from the war. Trade votes are never easy in the
U.S. Congress, Speaker Hastert cautioned, because every
member with an issue or specific concern will have to raise
it in order to be responsive to his or her constituents.
Any bill requires a majority to pass, and that means
satisfying the concerns of a majority of members, which can
be difficult. In the long run, the work to satisfy the
concerns of as many constituencies as possible is a good
thing. The greatest good is to bring two sides together, to
have dialogue, to exchange trade and bring people closer,
the Speaker said.

AN: WE MISSED A CHANCE 60 YEARS AGO

HANOI 00000862 002.2 OF 006


--------------


5. (U) "The doors have been open since 1945 for this
conversation," An said. "The people of Vietnam strongly
desire independence and freedom; our revolution in 1945 was
like yours in 1776; both of our countries paid a dear price
for freedom." Vietnam's priority today is for cooperation
in economic development, An continued, in order to bring
about a better life for the Vietnamese people. The United
States and Vietnam have missed opportunities to cooperate in
the past, "but better late than never, for world peace,
development and security."


6. (SBU) An presented the U.S. delegation with a copy of the
Vietnamese Declaration of Independence of 1945 to
demonstrate the similarity with the U.S. Declaration of
Independence. He also supplied a cartoon from 1945
depicting the United States Army as "our friends." The
cartoon's eight panels served as a kind of public service
announcement to enlist the assistance of the Vietnamese
people in rescuing and protecting downed American pilots and
contacting local Viet Minh guerrillas to escort them to
Chinese territory for repatriation back to the United States
during World War II. An also showed the delegation photos
of Viet Minh guerrillas in 1945 receiving training from
allied forces, including the United States. The Declaration
of Independence, the cartoon and the photo of the joint
training are all evidence to support his claims that Vietnam
was ready in 1945 to cooperate closely with the United
States, An said.

AN: ECONOMIC OVERVIEW, NATIONAL ASSEMBLY ROLE
--------------


7. (SBU) An gave a brief overview of Vietnam's current
situation. The "Doi Moi" (renovation) period of economic
reform began in 1986 with a shift from a centrally planned
economy to a market-based economy along socialist lines.
The phrase "along socialist lines" means that the GVN pays
attention to social equity. Vietnam wants fast and
sustainable development, but without disadvantaging anyone.
Central planning did not result in the production of enough
food, he acknowledged. Now after the shift to a market
economy, Vietnam has food security and enough to eat as well
as enough to export to other countries, and has become a top
exporter of rice. In the process, Vietnam has reduced the
number of poor households by half and GDP growth continues
to increase at an average of 7.5 percent in recent years,
and with a target of over eight percent in the next five
years. Unfortunately, competitiveness is a problem for the
Vietnamese economy, as is efficiency. The rate of return on
Vietnam's investments is not high. Vietnam is working hard
to make the development process sustainable and make the
economy operate more efficiently, a process that will make
Vietnam more competitive, especially after it enters the
WTO.


8. (SBU) The National Assembly's role in Vietnamese politics
has grown in recent years, An said. Under the Constitution
and the law, the National Assembly should be the highest
body of authority in Vietnam. The National Assembly's
activities have become more and more democratic and
observant of the Constitution and the law in recent years.
Making and amending domestic laws are key functions of the
National Assembly, especially as Vietnam revamps its legal
code for entry into the WTO. Laws and regulations and the
National Assembly's future responsibilities are not yet
completely defined, he admitted. The National Assembly will
strive to overcome that and meet its governing
responsibilities.

AN: VIETNAMESE FOREIGN POLICY
--------------


9. (SBU) With regard to foreign policy, Vietnam wants to put
the past behind it and look to the future, especially with
the United States. Vietnam's policy is to be a friend and
reliable partner with all countries, in compliance with the
UN charter and international law, An explained. In the
development of relations with all the countries of the

HANOI 00000862 003.2 OF 006


world, prioritization is necessary, noting that Vietnam's
top priority is its neighbors, while the second priority is
the "major powers and centers in the world," such as the
United States, the EU, Japan, India, China and Russia.
Political relations with the United States have been going
very well, he judged, and Vietnam is happy with the exchange
of high-level visits, including the Speaker's visit. The
next major bilateral event will be the visit of President
Bush to Vietnam in conjunction with APEC 2006, which will be
"another important milestone."


10. (SBU) Vietnam is pleased with the success of the
Bilateral Trade Agreement and the fact that the United
States has become Vietnam's largest export market, though it
is unfortunate that U.S. investment is not as high as U.S.
trade. The United States is Vietnam's tenth largest
investor, An said, though he acknowledged that the amount of
investment would be triple if third-country subsidiaries of
U.S. firms were included in the investment statistics.
There should be more cooperation in the areas of science and
technology, education, security and defense and culture, as
well as more legislative branch delegations in both
directions. The delegation should be sensitive to the fact
that Vietnam has had thousands of years under feudal
domination by China, hundreds of years under colonialism,
decades of war and only a few years of peace and stability
to overcome the past and make a better life for Vietnamese
people, An urged.

HASTERT: VIETNAM'S EMERGENCE GOOD FOR EVERYONE
-------------- -


11. (SBU) Speaker Hastert took An's comment regarding
Vietnam's past "seriously," noting that history has given
Vietnam very little time to pursue economic and educational
development because so much time and effort was devoted to
defense. The United States sees better relations with
Vietnam developing because the Vietnamese people are
emerging into the international community and wanting better
health care, education and economic opportunity. To meet
this need and cooperate, the United States and Vietnam must
build a relationship of trust and transparency. As that
relationship develops, friendship follows. All of the major
countries of the world have changed over the years, the
Speaker observed. The United States has been called on to
help other countries maintain their freedom; the EU has
become a unified group; China has opened its doors; India
has changed from a nonaligned country to an eager
participant in the world economy; and, Japan has gone from
being a major military threat to a huge economic driving
force in global economic development.


12. (SBU) The large sign welcoming visitors to "Hanoi, City
of Peace" has a strong message, the Speaker continued. When
people are at peace internally and externally, many
opportunities arise. Vietnam can take advantage of stable
(and equal) commodity and capital costs globally to use its
advantage in lower-cost labor to make economic gains. This
same philosophy worked for Japan in the 1950s, for Taiwan in
the 1960s, for Thailand in the 1970s and for China in the
1980s, he said. Countries that follow this path develop
economically, they open up and they change from within. The
people become better educated, they have better health care,
they have a greater understanding of world events and a
higher standard of living. "When we as leaders make this
happen," the Speaker said, "we build a much richer legacy to
pass on to our children and grandchildren, all based on the
actions we take now."

HASTERT: PRIORITY ISSUES FOR PNTR
--------------


13. (SBU) The Speaker welcomed Chairman An's suggestion of
continued and expanded parliamentary exchanges and
recommended setting up ways to move that forward right away.
He promised An that he would "work to pass PNTR, even though
trade legislation is often the most difficult to pass."
Every member and every constituent with a specific Vietnam-
related issue will bring it forward during the PNTR vote,
the Speaker warned. That includes trade issues, such as

HANOI 00000862 004.2 OF 006


market access for corn and soybeans grown in Illinois, for
example, as well as non-trade issues like human rights and
POW/MIA accounting. It is a good process, with facts
brought out and discussed, but it is also difficult. He
asked An to "give us better ideas and a better understanding
so we can carry the debate forward."

OXLEY: TELL US MORE ABOUT VIETNAM'S ECONOMIC REFORMS
-------------- --------------


14. (SBU) Representative Oxley noted that when he was in
Bangkok 13 years earlier, the American Chamber of Commerce
(AMCHAM) discussion at the time concerned whether the United
States was ready for normal relations with Vietnam. It is
hard to believe, he said, that only 13 years later the two
sides are discussing WTO entry for Vietnam and the United
States has become Vietnam's largest export market.
Vietnam's change from central planning to market-based
system is admirable, Rep. Oxley said. He asked for more
information on Vietnam's formation of capital markets, the
transparency of political and economic decisionmaking and
anti-corruption efforts. These details will be vital for
advocates of PNTR passage, Oxley said, including himself.

AN: ECONOMIC REFORM AND "ECONOMIC DEMOCRACY"
--------------


15. (SBU) Chairman An said the Doi Moi reforms were "of the
greatest importance" because they prevented Vietnam from
"following the fallen path of the Soviet Union." Vietnam
followed the central planning philosophy with the idea that
ridding Vietnam of private ownership would prevent
exploitation of workers and farmers. However, Vietnam
learned that this is an ineffective system because it
deprives people of economic incentives to work. In the old
days, there were only two sectors: State-owned Enterprises
and collectives. Now, the Constitution and the GVN promote
the growth of every economic sector and people's rights
include the right to participate in every part of the
economy as private citizens or in business. This
fundamental change led to an explosion in agricultural
development. Democracy in the area of economic growth is
very strictly enforced, with the outcome that "anyone can
successfully pursue happiness and prosperity and develop
themselves and the country." This policy helps Vietnam
mobilize capital domestically and from overseas, An said.


16. (SBU) An acknowledged that the creation of capital
markets "is very new for us." There are two stock
exchanges, in Hanoi and in Ho Chi Minh City. The capital
markets are growing, however. "Money and banking systems
are also relatively new to us, but we are working on them,"
he continued. "Part of our banking system is now commercial
banks, and we are creating the conditions for effective
monetary markets and policies to operate."


17. (SBU) A quick read of the press will demonstrate
Vietnam's commitment to anti-corruption, An said. The anti-
corruption fight is one method to increase efficiency, and
gain the confidence and trust of the population and the
world, including business people and investors. The reforms
of the last twenty years have been a great exercise in
conceptual change. To achieve the results Vietnam has
achieved is an exceptional process, and a success. The GVN
and the Party attribute the success of the reform process to
the success of economic democracy, and have committed to
taking the process to new heights in the years to come. "I
say that we won the wars of resistance because we complied
with the wishes of the people, and we will have success in
economic modernization with the same popular involvement."

RYAN: KEY ISSUES ARE REFORM, MARKET ACCESS, HUMAN RIGHTS
-------------- --------------


18. (SBU) Rep. Paul Ryan, a member of the Ways and Means
Committee, described three major challenges ahead for
Vietnam as it faces a PNTR vote in Congress. First, the
Congress will look closely at Vietnam's laws on the rule of
law, intellectual property rights, and the transparency of
business rules and procedures, and then will look at how

HANOI 00000862 005.2 OF 006


those laws are implemented. Second, it will be necessary
for individual members to justify a PNTR vote to their
constituents, so tariff and non-tariff barriers to trade
will be very important. U.S. Trade Representative Rob
Portman is a former colleague in the House of
Representatives and very well respected in Congress, and he
is trusted to raise and solve the important market access
issues that remain, such as on motorcycles, car engines,
tractors, financial services, etc. These are crucial to
constituents and of the highest importance to members.
Third, it is necessary to keep in mind that Vietnam PNTR
will be a very emotional vote, both because of the history
between our countries and because of ongoing political
differences. Human rights, for example, particularly in the
realms of religious freedom, internet freedom and
trafficking in persons, will be closely watched. Rep. Ryan
said he appreciates Chairman An's candor on the democracy of
Vietnam's economic system, but is concerned about the
inherent contradiction between economic democracy and
political centralization. This will be a contentious issue
as Congress debates PNTR for Vietnam and each member tries
to justify his/her position to his/her constituents.

AN RESPONDS AT LENGTH
--------------


19. (SBU) The National Assembly passed WTO laws three times
faster than any other law on Vietnam's books, An declared.
The quality of those laws is also higher than other
legislation. The National Assembly is involved in the
process intimately, and is required to approve any bilateral
agreement with Vietnam, a role it has played efficiently in
the past year. Vietnam is looking forward to addressing the
challenge of PNTR, as well as other contentious issues, such
as Vietnam's continued placement on the list of countries of
particular concern for religious freedom. For the PNTR vote
to be fair and accurate, An said, it will be important that
Congress receives "fair information from different angles"
that will do the best job of informing the institution.

HUMAN RIGHTS
--------------


20. (SBU) Tariff and non-tariff barriers as well as other
technical issues have, by and large, been dealt with in the
negotiations, An asserted. The issues of human rights and
religious freedom are very big ones, and very sensitive,
based on the fact that Vietnam and the United States have
differences in opinion and approach due to their different
historic development as countries. It takes time to grow
when you have the complex and difficult history of Vietnam,
he said. The real problem is that the two sides do not
understand each other well enough, he added. "Why do you
think we fought wars for thirty years," he asked
rhetorically, "if not for the human rights of our people?"
All men are created equal, and Vietnam fought its wars to
guarantee that it will be on an equal footing with other
countries. As Ho Chi Minh put it, "there is nothing more
valuable than independence and freedom." Politically,
Vietnam has a great deal of freedom, as evidenced by the
popular participation in and feedback to the draft Political
Report in advance of the 10th National Party Congress. An
said he himself loves the internet and finds it very free.
Vietnam looks forward to welcoming the "symbol of the
internet," Bill Gates. Vietnam even has internet access in
remote and mountainous areas, An said with pride. The
Government's role in the internet is "to pay attention to
the downsides, the things that can harm youth or be used to
instigate negative issues." Vietnam understands that in a
global age, force cannot be used to stop things; guidance is
required to protect the people. The people require internet
access to be efficient and wholesome.

RELIGIOUS FREEDOM
--------------


21. (SBU) An urged the delegation to visit a church or
pagoda to see the practice of religion in Vietnam firsthand.
"The issue in Vietnam has never been the practice of
religion, but rather those who would take advantage of

HANOI 00000862 006.2 OF 006


religion to do other things, and to invade us from outside,"
An explained. "The history of religious actions in Vietnam
has been that religion from outside has been a road-paving
project for colonialism." Religious activity within Vietnam
is very robust, as much or more so than in the United
States, he said. Every Vietnamese follows religion of one
kind or another, he declared, and some follow more than one.
"I am a Buddhist," An said, "and my wife is Catholic. My
wife's sister is both. She attends the pagoda and the
church." Vietnam takes a great deal from all religions. An
closed with a "Ho Chi Minh thought" (itself borrowed from
the Cao Dai, a uniquely Vietnamese religion) regarding the
contributions of various religious belief systems:
"Confucius teaches us how to be humane. Buddha teaches us
how to be benign. Jesus Christ teaches us to be
compassionate, and Sun Yat Sen teaches us the three
principles of the people (nationalism, democracy, and `the
people's livelihood,' which the Vietnamese believe means
socialism)."

NATIONAL ASSEMBLY DINNER
--------------


22. (SBU) Following their official meetings, Chairman An
hosted an elaborate dinner for the Speaker and his
delegation in which An and other NA members who spoke were
even more enthusiastic and upbeat about the future of the
bilateral relationship. At one point, all of the NA
representatives joined in song together in a toast to the
future of U.S.-Vietnam relations. Later, An expounded on
his earlier religious statements, saying that "God teaches
us to love each other, and Buddha teaches us to show
compassion to each other. This meeting allows us to put
these principles into practice." In a final gesture, An had
the musicians play a traditional American song and then a
traditional Vietnamese song for the delegation. The Speaker
concluded the evening with expressions of thanks and a
commitment to continue developing our exchanges and
dialogue.

Comment
--------------


23. (SBU) Chairman An is known as a relatively hard-line
communist politician, and we have seen him take a combative
and defensive attitude towards American delegations in the
past (such as during Congressman Gillmor's visit in January
2006). He is also widely assumed to be retiring after the
10th National Party Congress this week, which would suggest
that he does not need to pull his punches. With that in
mind, his expansive, friendly responses to the Speaker's and
the delegation's comments and questions, even on sensitive
topics such as religious freedom and human rights, were a
welcome surprise. The National Assembly (no doubt at An's
instruction) went out of its way to create warm atmospherics
for the meeting, with a relatively intimate "welcome toast"
and a robust turnout of pro-U.S. officials and legislators.
We noted that An did not let his colleagues ask or answer a
single question, and instead did all the talking himself.
He promised that he would give them a chance to express
themselves later at the dinner reception, but in fact that
was a largely social affair.


23. (SBU) The Speaker's staff members cleared this message.

MARINE