DPM/FM KHIEM OFFERS "FAVORABLE CONDITIONS" ON

C O N F I D E N T I A L USUN NEW YORK 000635 SIPDIS DEPT FOR IO/UNP (EDMONDSON),M (U/S KENNEDY),DS/OFM (MASSEY) E.O. 12958: DECL: 07/17/2018 TAGS: OFDP PREL KREC VM UN SUBJECT: DPM/FM KHIEM OFFERS "FAVORABLE CONDITIONS" ON HANOI PROPERTY FOR PERMISSION TO BUY IN NYC Classified By: Ambassador Khalilzad, Reasons 1.4 (b) and (d) ¶1. (C) During a meeting on July 16, Vietnamese DPM/FM Pham Gia Khiem requested that Khalilzad "work with the State Department" to grant Vietnam permission to buy property in New York for their permanent mission to the United Nations. According to Khiem, the USG was delaying the purchase until the two parties could agree on terms for the U.S. Embassy property in Hanoi. Khiem argued that the USG, as host country to the UN, has an agreement with the UN to support member states with the rental and / or purchase of mission property. (Note: The USG does not have such an agreement with the UN but is obligated under the Vienna Convention on Diplomatic Relations to "either facilitate the acquisition on its territory, in accordance with its laws, by the sending state of premises necessary for its mission or assist in obtaining accommodation in some other way.") Khiem told Ambassador Khalilzad that Vietnam would "create favorable conditions for the embassy in Hanoi" if the issue were "raised immediately" in Washington. Ambassador Khalilzad responded that it was in the interest of both parties to come to a favorable conclusion on the matter and said that he would seek guidance from Washington on possible next steps. ¶2. (C) Comment: As the Department is aware, the Host Country is enjoined from invoking reciprocity openly in the UN context, so the letter from the New York Regional Office of OFM turning down the Vietnamese request made no such reference. USUN has also avoided any such discussion with the Vietnamese Mission to the UN in this regard. Khiem is therefore getting his information from Hanoi or Washington. USUN understands that the only remaining issue blocking approval of Vietnam's request to buy property in New York is the unwillingness of Vietnam to offer the USG two back-to-back 99 year leases in Hanoi. Given Khiem's "favorable conditions" statement to Ambassador Khalilzad, the Department may wish to consider informing the Vietnamese in Washington or Hanoi that its request to purchase property in New York will be approved as soon as Vietnam agrees to the lease period the USG requires. Doing so may persuade Vietnam not to go public with the issue in the UN's Committee on Relations with the Host Country, where the membership is likely to be unsympathetic to the USG position. End Comment. Khalilzad