STAFFDEL GILLEY VISIT EVALUATES USG OBJECTIVES IN CAMBODIA

UNCLAS PHNOM PENH 001975 SIPDIS STATE FOR EAP/MLS, EB, H SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL KTEX ETRD EAID CB SUBJECT: STAFFDEL GILLEY VISIT EVALUATES USG OBJECTIVES IN CAMBODIA ¶1. (SBU) Summary. Kristen Gilley, Deputy Chief of Staff for the House Committee on International Relations and Jamie McCormick, Staff Director, Subcommittee on Asia and the Pacific, visited Cambodia on October 20-22 to discuss bilateral relations, USG assistance programs, and USAID partner concerns. The delegation met with the Minister of Commerce on trade and labor issues and National Assembly MPs on domestic political developments and legislative issues. End Summary. -------------- MOC Urges Trade Act Passage -------------- ¶2. (U) Minister of Commerce Cham Prasidh met with Staffdel members on October 20, accompanied by DCM, Econoff, and Conoff (notetaker). Noting the warm bilateral relationship between the U.S. and Cambodia, Prasidh made a strong pitch to the Staffdel for passage of the draft Trade Act that includes Asian least developing countries (LDCs),such as Afghanistan and Cambodia, not just African nations. Prasidh stressed that duty-free imports would allow Cambodia to compete with cheaper goods from China and Vietnam. He said that U.S. imports from LDCs were a very small part of overall U.S. imports (0.5%),but allowing duty-free access would help the poor in the LDCs. McCormick commented that obtaining passage of the bill would be difficult, but perhaps not impossible. While elements in Congress support the bill, additional backers are needed from the Ways and Means and Finance Committees. McCormick added that inclusion of Afghanistan could be an important factor, as the country is of strategic importance to the U.S. ¶3. (SBU) Referring to a Labor Advisory Committee decision to grant a five-dollar increase in the monthly minimum wage for garment workers, Prasidh claimed that the garment manufacturers' profit margins are exceedingly thin, only 2-5%. Thus, any increase ate away the profits. The DCM cautioned that it was important for manufacturers and labor unions to maintain a positive spirit in negotiations. A rupture in their relations could have a serious negative effect on the industry. ¶4. (SBU) Turning to draft regulations under discussion between the Ministry of Posts and Telecommunications and courier services, the delegation asked that Prasidh urge the Ministry withhold issuing the regulations (Prakas) until differences between the two sides have been resolved, and provided Prasidh with a non-paper containing points prepared by USTR on this issue. Prasidh agreed that it was preferable to wait until the disagreements have been resolved and said that he would do everything possible to assist. If the negotiations reached a point at which there was only ONE outstanding issue to be resolved; Prasidh promised to take it to the Prime Minister for a decision. Prasidh said that he thought the differences would be worked out, as Minister of Posts and Telecommunications So Khun is "very flexible." -------------- Legislative Issues; USAID Partners -------------- ¶5. (SBU) The Staffdel also met on October 20 with MPs Than Sina of FUNCINPEC, Son Chhay of The Sam Rainsy Party (SRP),and Nhem Thavy of The Cambodian Peoples Party (CPP) at the National Assembly. Party representatives discussed the inability of National Assembly to be effective due to the lack of a legislative calendar and dependence on the RGC to forward legislation. In addition, party representatives were concerned with the lack of progress on anti-corruption law, noting that they were still waiting for the draft criminal code. The MPs explained that they have been informed by the RGC that the new criminal code must be approved before the anti-corruption legislation. When the Staffdel inquired about professional capabilities of the staffing at the National Assembly, the MPs agreed that NA could use additional assistance on development of a professional staff. The NA has received some training and assistance from CIDA and the German government in the past. ¶6. (SBU) On October 20, the Staffdel met with USAID and CDC officers who discussed the particular successes of HEALTH programs on HIV/AIDS and Avian Influenza. After an evening reception and October 21 morning tour of NEC, the Staffdel received briefings from various USG partners on democracy building initiatives, human rights, and political reform in Cambodia. The Staffdel also wanted to understand F reforms within State and USAID and their effect on mission effectiveness. Additionally, the Staffdel asked about a Harvard proposal for an education project in Cambodia. The Staffdel then attended a luncheon with Ambassador Mussomeli to discuss mission objectives in Cambodia. CAMPBELL#