PRIME MINISTER RAISES CONCERNS ON HMONG WAIVER

C O N F I D E N T I A L SECTION 01 OF 03 VIENTIANE 000780

SIPDIS

SIPDIS

E.O. 12958: DECL: 10/18/2017
TAGS: PREL PGOV PHUM EFIN CVIS LA US BM ASEAN
SUBJECT: PRIME MINISTER RAISES CONCERNS ON HMONG WAIVER
DURING AMBASSADOR'S INTRODUCTORY CALL

REF: VIENTIANE 720

Classified By: AMBASSADOR RAVIC HUSO. REASON: 1.4 B AND D.

Summary
--------------


1. (C) During the Ambassador's introductory call on Prime
Minister Bouasone Bouphavanh, both the Ambassador and the
Prime Minister expressed satisfaction with recent
improvements in bilateral cooperation. The Prime Minister
pressed for the lifting of restrictions on U.S. Export-Import
Bank operations and raised concern that the U.S. was
contemplating action to revise Patriot Act provisions that
applied to acts of terrorism against the Lao government. The
Ambassador clarified that the U.S. Administration and
Congress were concerned that provisions of both the Patriot
Act and Real ID Act had resulted in unintended negative
consequences for members of certain ethnic groups, including
the Hmong, who may otherwise be eligible to become U.S.
citizens. He stressed that any action by the U.S. government
would apply only to ethnic Hmong who had provided material
support to the commission of acts of terrorism, not to people
who had committed such acts themselves. He assured the Prime
Minister that he would keep the GOL informed about any waiver
and that the USG would clarify publicly that any actions we
might take were not a reflection of how the U.S. viewed its
overall relationship with the GOL. The Prime Minister said
that many people in Laos have been following recent
developments and "wondering which direction your country will
be moving in." He said that he hoped that the USG's actions
would reaffirm the policy the Ambassador had described. The
Ambassador urged the Prime Minister to encourage other ASEAN
leaders to attend the proposed U.S.-ASEAN meeting to be
hosted by President Bush in Texas. The Prime Minister said
that he personally feels that this meeting is important and
hopes that other ASEAN leaders will agree. End summary.


2. (U) The Ambassador, accompanied by the DCM, paid an
introductory call on Prime Minister Bouasone Bouphavanh on
October 17. Like the Ambassador's introductory meeting with
President Choummaly Sayasone (Reftel),the meeting was
unusually long, lasting almost an hour. The Prime Minister
spoke in Lao, using an interpreter.

Bilateral Cooperation
--------------


3. (SBU) Prime Minister Bouasone began by expressing
satisfaction with the improvement in U.S.-Lao relations in
recent years. The Ambassador's "extensive experience and
knowledge," he said, will continue to "elevate relations up
to a higher plane." Ambassador Huso said that he was pleased
to be arriving in Laos at a time when the country is moving
forward rapidly in a number of areas, including economic
growth and international engagement. There is an
opportunity, he said, to expand U.S.-Lao cooperation beyond
the traditional areas of accounting for U.S. personnel
missing in action, removal of unexploded ordnance and
counternarcotics.


4. (SBU) The Prime Minister agreed that there has been
significant progress in these areas of cooperation. However,
he noted U.S. assistance is decreasing. He reaffirmed Lao
support for the fight against terrorism. The GOL, he said,
also appreciates assistance in disaster management, including
combating avian influenza. Referring to humanitarian
projects that are part of the POW/MIA accounting program, he
said that the Lao government was grateful to receive this
assistance.


5. (SBU) The Ambassador expressed the appreciation of the
U.S. government and people for Lao support to efforts to
account for U.S. soldiers missing in Laos. He expressed
continued commitment to assisting Laos's counternarcotics
efforts, particularly the fight against methamphetamines, use
of which has risen even as opium is being eradicated. These
efforts include anti-drug education, treatment programs, and
sharing information to more effectively stop people who are
dealing drugs. Noting that the Prime Minister had mentioned
the importance of disaster management, the Ambassador said
that, in addition to USAID and the Centers for Disease
Control (CDC),the U.S. military can play an important role.
The Ambassador said that he would like to develop a dialogue
between the U.S. Pacific Command, which has a number of
experts on disaster preparedness, and the Lao military in
order to enhance disaster preparedness.

Exim and WTO
--------------


6. (SBU) The Prime Minister said that he hoped that the

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U.S. would lift the provision that prevents U.S. companies
from accessing financing from the U.S. Export-Import Bank
(Exim) for sales to Laos. He noted that the two countries
already have a Bilateral Trade Agreement. In addition, he
said he hoped that the Ambassador would be able to encourage
the private sector to invest in Laos. The Ambassador said
that he would follow up with officials in Washington on Exim
restrictions. The Prime Minister said that Exim is a "very
important, central issue." Granting Exim financing will, he
said, allow Normal Trade Relations to be fully implemented.
Regarding WTO, the Prime Minister said that the GOL has tried
to put in place the necessary conditions to get the support
of the USG.

Hmong Waiver
--------------


7. (SBU) The Prime Minister said that he had heard that the
Patriot Act would be revised. (Note: He was referring to
reports that the U.S. government plans to issue a waiver that
would exempt certain ethnic Hmong from a provision in the
Immigration and Nationality Act (INA),added through passage
of the Patriot Act, denying immigration rights to people who
had provided material support to terrorist organizations. In
the case of the Hmong, this relates to people who assisted
Hmong resistance groups that continued to operate after the
communist takeover in 1975. End note.) "Groups of people
are trying to interrupt relations between our two countries,"
he said. He said that the U.S. government, in arresting Vang
Pao, had reconfirmed its strong determination to act against
terrorist threats around the world. (Note: Vang Pao, who
led anti-Communist Hmong forces during the Vietnam War, was
arrested in California on June 4. End note.) By maintaining
the Patriot Act's prohibitions, he said, the U.S. government
will confirm its commitment to act against people who commit
acts of this type.


8. (SBU) The Ambassador said that the United States has a
strong and clear policy of not supporting any activities
aimed at destabilizing the Lao government through violence.
He noted that people in the U.S. are free to express strong
criticism against a foreign government. However, "if someone
takes action (in violation of the law),we will react." He
clarified that there was no effort underway to amend the
Patriot Act and explained the details of the actual
situation. He emphasized that any waivers or similar
measures would not apply to anyone who had committed act(s)
of violence against the Lao government. The Ambassador said
that, if a waiver was signed, the U.S. government would do
two things: first, "make sure that you and your government
understand what we're doing and why," and second make sure
that the public understands that this has nothing to do with
the USG's good relationship with Laos.


9. (SBU) The Prime Minister thanked the Ambassador for this
clarification, commenting that the U.S. carries out its
anti-terrorism policy not only through the Patriot Act but
also through the actions it takes, including the arrest of
Vang Pao. He said that many people in Laos have been
following recent developments and "wondering which direction
your country will be moving in." He said that he hoped that
the USG's actions would reaffirm the policy the Ambassador
had described.

ASEAN/Burma
--------------


10. (C) The Ambassador told the Prime Minister that
President Bush regretted that he was unable to meet with
ASEAN leaders in Singapore. He noted that the President had
invited ASEAN leaders to join him at a meeting in Texas next
year. The Prime Minister said that he was sure that issue
would be a subject of discussion at the ASEAN summit and he
would consult with fellow leaders there. The Ambassador
urged the Prime Minister to encourage his fellow ASEAN
leaders to go to the Texas meeting. The Prime Minister
replied that he personally feels that the ASEAN-U.S. summit
is of great importance and he hopes other leaders share his
view.


11. (C) The Ambassador thanked the Prime Minister for the
GOL's effective work to try to encourage a constructive
dialogue with Burma.

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


12. (C) The Prime Minister, like the other officials the
Ambassador has met with since his arrival, emphasized
positive developments in U.S.-Lao relations in recent years.
However, the amount of time he spent discussing the Hmong
waiver issue illustrates how concerned the Lao government is

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about this. His comment about how many people are "wondering
which direction your country will be moving in" reflects
lingering fears among senior Lao officials, notwithstanding
the Vang Pao arrest, that the USG condones the Hmong
insurgency. This illustrates the importance of allowing time
before the public announcement of a waiver for discussions
with the Lao government in Vientiane and in Washington.


13. (C) Access to Exim financing, like the Hmong waiver,
holds symbolic importance for Lao officials. They appear to
have made this issue into a test of the U.S. commitment to
completing the process of normalizing relations. Granting
access to Exim would send a positive signal at an important
juncture in the relationship.
HUSO