AMBASSADOR MARCIEL'S VISIT HIGHLIGHTS WARMER

C O N F I D E N T I A L SECTION 01 OF 02 VIENTIANE 000525

SIPDIS

STATE FOR EAP DAS/AMBASSADOR SCOT MARCIEL
STATE FOR EAP/MLS EMERY
BANGKOK FOR REO HOWARD
PACOM FOR POLAD

E.O. 12958: DECL: 09/22/2018
TAGS: PREL SNAR SENV MARR LA
SUBJECT: AMBASSADOR MARCIEL'S VISIT HIGHLIGHTS WARMER
LAO-U.S. TIES

REF: 07 VIENTIANE 801

Classified By: DEPUTY CHIEF OF MISSION PETER M. HAYMOND FOR REASONS 1.4
(B) AND (D).


1. (C) Summary: Senior Lao foreign affairs, defense and law
enforcement officials confirmed to EAP DAS Ambassador Scot
Marciel their interest in expanding bilateral cooperation.
Lao Commission for Drug Control and Supervision (LCDC)
Chairman Soubanh Srithirath hailed a new spirit of
results-oriented bilateral counter narcotics cooperation.
Vice Foreign Minister Phongsavath acknowledged the
international community,s interest in access to Hmong
returnees from Thailand and suggested the Lao would take
further steps towards transparency, including visits by
diplomats to resettlement villages. He also raised again the
U.S. ban on Eximbank financing to Laos (see reftel).
Ministry of National Defense Brigadier General Sisophonh
praised recent progress in mil-to-mil engagement and advised
that Colonel Kenkeo Pholsena, currently the Lao defense
attach in Beijing, will be the new Lao defense attach in
Washington. End Summary.

Moving Out of Stalemate in CN Law Enforcement Cooperation
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2. (C) EAP DAS Scot Marciel visited Vientiane September 16
and 17. Together with Ambassador, he met with Minister to
the President,s Office Soubanh Srithirath, Chairman of the
Lao National Committee for Drug Control and Supervision
(LCDC). Minister Soubanh lamented what he called "an
atmosphere of stalemate" in bilateral counter narcotics work
in the past, but proceeded to hail a new spirit of
results-oriented cooperation. He proudly briefed DAS Marciel
on an ongoing joint DEA-Lao counter narcotics operation
dealing with a heroin and cocaine trafficking network
extending from Latin America, through the U.S. to Southeast
Asia. (Comment: This case (see septel) represents an
unprecedented level of cooperation between DEA and the Lao
police. End comment). Following the meeting, Ambassador and
Minister Soubanh signed the FY2008 Letter of Agreement for
INL assistance. The signing ceremony was featured
prominently in Lao media the next day.

Pulling the Region Together to Manage the Mekong
-------------- ---

3. (U) DAS Marciel then met with CEO of the Mekong River
Commission Jeremy Bird to express the U.S. desire to increase
its regional and subregional engagement. Bird discussed the
MRC's plans to significantly expand its work on sustainable
hydropower, noting the MRC intended to "put
meat" on its 1991 hydropower plan. In addition to
facilitating regional dialogue, the MRC hopes to work with
developers to provide expertise in areas such as cumulative
environmental and fisheries impacts of planned dams. (Note:
The MRC is holding a regional conference to discuss its
hydropower plan September 25-27. USAID and a number of Army
Corps of Engineer experts will attend. End Note.) Bird
discussed the MRC's information sharing with China, noting
the MRC works directly with the Yunnanese authorities on
water level information and indicating that the new Chinese
dams on the upper Mekong have made mainstream dams in Laos
cost effective and feasible. According to Bird, the new
Chinese dams are expected to raise the dry season water level
on the stretch of the Mekong from Luang Prabang to Vientiane
by 40 percent.

Hmong, ExIm Bank and MFA
--------------

4. (C) On September 17, DAS Marciel and Ambassador met with
Vice Foreign Minister (VFM) Phongsavath Boupha. VFM
Phongsavath affirmed the GOL,s desire for a step-by-step
expansion of cooperation. Ambassador raised recent steps
taken by the Lao Government to increase transparency
regarding the treatment of Hmong repatriated from Thailand.
DAS Marciel and Ambassador pressed the VFM to consider
additional steps that would give members of the international
community access to Hmong returnees, pointing out that
independent access was important if the Lao Government wished
to dispel concerns and allegations of mistreatment. VFM
Phongsavath advised that the Lao Government was considering
further steps, to include a trip by ambassadors and
international organization representatives to visit some of
the repatriated Hmong. During a discussion of economic
opportunities for U.S. business, the VFM again raised the

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issue of prohibitions on Eximbank financing for US exports
to Laos (see reftel). He cited this as an inappropriate
hold-over from a period when relations were very different.
DAS Marciel agreed to explore this issue on his return to
Washington.

New Lao Defense Attache Identified
--------------

5. (C) At the Ministry of National Defense (MND),Permanent
Secretary Brigadier General Sisophonh
Bangonesengdet (who has been nominated to attend the 11th
CHOD conference) told DAS Marciel that Colonel Kenkeo
Pholsena, currently the Lao defense attache in China, will be
assigned as the new Lao defense attache in Washington (see
bio note below). BG Sisophonh said repeatedly that MND
welcomes closer relations with the U.S. military and is
seeking training, particularly English language and medical
training. He stressed the importance of trust in the
relationship, saying "if the persons understand each other,
the work will go forward."

Lunch with MFA Spokesman
--------------

6. (C) DAS Marciel and Ambassador also had an informal lunch
with MFA Spokesman and GOL point-man on Hmong issues, Yong
Chanthalangsy. In a frank and informative discussion, Yong
agreed that it was in the Lao interest to provide the
international community with accurate information regarding
the treatment of Hmong returned from Thailand. However, he
continued to hold to the Lao position that a formal
international monitoring program -- as was done in the past
-- is no longer relevant or acceptable. He said he would
continue to seek opportunities to allow the international
community some access, and confirmed that the he had invited
a Bangkok-based UNHCR officer to visit a resettlement village
for returnees who could not be reintegrated into their
original communities.


7. (SBU) Bio Note: Colonel Kenkeo Pholsena is a son of
former Lao Foreign Minister Kinin Pholsena, who was
assassinated in 1963. Prior to his assignment in Beijing,
COL. Kenkeo served as defense attach in Burma and Indonesia.
His siblings include Minister of Public Works and Transport
Sommad Pholsena, Minister for Economic Cooperation in the
Greater Mekong Subregion Khempeng Pholsena, and Vice Commerce
Minister Khemmani Pholsena. According to BG Sisophonh, COL.
Kenkeo speaks Chinese, Russian, French and English. COL.
Kenkeo is a trained physician.
HUSO