AMBASSADOR'S MEETING WITH FINANCE MINISTER: PEACE CORPS

UNCLAS HANOI 000940

SIPDIS

SENSITIVE

DEPT FOR PEACE CORPS
DEPT FOR EAP/MLS
BANGKOK FOR PEACE CORPS

SENSITIVE BUT UNCLASSIFIED
SIPDIS

E.O. 12958: N/A
TAGS: EFIN ECON EAID VM
SUBJECT: AMBASSADOR'S MEETING WITH FINANCE MINISTER: PEACE CORPS
TAXATION ISSUE


(U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. NOT FOR THE
INTERNET.

REF: (A) Hanoi 932 (B) Hanoi 888


1. (SBU) This message reports the content of the Ambassador's
meeting with Vietnam's Minister of Finance regarding the taxation
element of a draft Peace Corps country agreement. The discussion
was held May 17 and was part of a lengthier agenda (reftel A).


2. (SBU) Background: Post has held discussions with the Government
of Vietnam (GVN) on beginning a Peace Corps program here (Ref B)
since July 2006. EconOffs have recently reviewed the status of the
negotiations with the lead ministry, the Ministry of Education and
Training (MOET),and with the Ministry of Foreign Affairs (MFA),on
a draft country agreement. MOET acknowledged that it has referred
the draft country agreement language on exempting volunteer and
staff taxable income to the Ministry of Finance.


3. (SBU) The Ambassador's Presentation: Noting that Peace Corps
had not been on his agenda when he requested the meeting, the
Ambassador introduced the topic with a brief background on the
program and the status of negotiations. He referred to the hope
that an announcement could be made as part of President Triet's
proposed June visit to Washington. He then asked the Minister to
facilitate action on the MOET request that MOF review the taxation
clauses.


4. (SBU) Minister Vu Van Ninh briefly responded that he had noted
the Ambassador's request and asked for time to study the issue.


5. (SBU) Next Steps: The Ambassador will include this topic in a
planned follow-up letter to the Minister regarding this and other
outstanding issues.

MARINE