Identifier
Created
Classification
Origin
09HANOI165
2009-02-25 09:44:00
CONFIDENTIAL
Embassy Hanoi
Cable title:
JAPAN RESUMES SUSPENDED ASSISTANCE TO VIETNAM
how-toVZCZCXRO1764 OO RUEHCHI RUEHDT RUEHHM RUEHNH DE RUEHHI #0165 0560944 ZNY CCCCC ZZH O 250944Z FEB 09 FM AMEMBASSY HANOI TO RUEHC/SECSTATE WASHDC IMMEDIATE 9186 INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY RUEHKO/AMEMBASSY TOKYO PRIORITY 6000
C O N F I D E N T I A L HANOI 000165
SIPDIS
STATE FOR EAP/MLS AND EAP/J
E.O. 12958: DECL: 02/25/2019
TAGS: EAID ECON JA PREL VM
SUBJECT: JAPAN RESUMES SUSPENDED ASSISTANCE TO VIETNAM
REF: A. A) HANOI 94
B. B) HCMC 103
Classified By: DCM Virginia Palmer, reasons 1.5 (b) and (d).
C O N F I D E N T I A L HANOI 000165
SIPDIS
STATE FOR EAP/MLS AND EAP/J
E.O. 12958: DECL: 02/25/2019
TAGS: EAID ECON JA PREL VM
SUBJECT: JAPAN RESUMES SUSPENDED ASSISTANCE TO VIETNAM
REF: A. A) HANOI 94
B. B) HCMC 103
Classified By: DCM Virginia Palmer, reasons 1.5 (b) and (d).
1. (C) Summary: Not unexpectedly, Japan announced the
resumption of its suspended assistance to Vietnam when
Vietnamese Minister of Planning and Investment Vo Hong Phuc
met Japanese Foreign Minister Hirofumi Nakasone in Tokyo on
February 23. Japanese DCM Koichi Abioshi told DCM that the
resumption of assistance was based on three conditions: the
establishment of a joint Japan-Vietnam Commission, the
repayment of the full PCI loan by the end of the year, and
meaningful progress in the investigation of the Vietnamese
suspects in the case. Perhaps most meaningfully, Vietnam is
to have a new whistleblower protection law in place by 2010.
Abioshi said the recent visit to Vietnam by Crown Prince
Naruhito would be reciprocated by visits to Japan by CPV
General Secretary Nong Duc Manh in April and Prime Minister
Dung in May. End summary.
2. (C) The PCI corruption scandal, involving bribes of
$820,000 paid by Japanese consultants to Vietnamese official
Huynh Ngoc Si, led to suspension of new aid programs to
Vietnam by Japan, its largest donor. While three Japanese
consultants were tried and found guilty in Japan, the GVN's
investigation of Si is moving slowly amid rampant speculation
that Si's connections to HCMC Party Chief and Politburo
member Le Thanh Hai may shield him from meaningful
punishment.
3. (C) Japanese DCM Abioshi told DCM at a February 24 lunch
meeting that the resumption of assistance was based on three
conditions: 1) the establishment of a joint Japan-Vietnam
Commission, 2) the repayment of the full PCI loan by the end
of the year, and 3) meaningful progress in the investigation
of the Vietnamese suspects in the case. Abioshi assured DCM
that Vietnamese press reports of the resumption of aid by the
end of Japan's fiscal year in March were exaggerated. "We
will be lucky to have things rolling by the next Consultative
Group meeting in June," he said.
4. (C) The first condition was met with the formation of a
joint Japan-Vietnam commission to work on possible measures
to tighten controls on assistance including third-party
participation in pre-contract screening, auditing of
yen-financed projects, and other measures. The commission's
work led to a GVN agreement to put in place whistleblower
protection legislation by 2010. On the condition that
Vietnam repay in full the PCI loan by the end of the year,
Abioshi said the negotiations with the GVN involved serious
haggling, like being "in a market."
5. (C) Regarding the condition that the GVN show meaningful
progress in the investigation of the Vietnamese suspects, the
GVN agreed to provide the GOJ a written report. Abioshi said
the report the GVN had provided on the investigation had been
"vague" and included no reference to the penal code and that
Japan had asked the GVN to provide more specifics. Japan is
also concerned that Si faces "abuse of power" rather than
more serious corruption charges, but Abioshi admitted that
the Japanese consultants involved had all received suspended
sentences or probation.
6. (C) In a sign that the PCI scandal had not significantly
shaken strong bilateral ties between Japan and Vietnam,
Abioshi said the recent visit to Vietnam by Crown Prince
Naruhito would be reciprocated by visits to Japan by CPV
General Secretary Nong Duc Manh in April and possibly Prime
Minister Dung in May to attend a seminar organized by Nikkei
News.
7. (C) Comment: The resumption of Japanese aid was widely
expected, and indeed had been prematurely reported by the
Vietnamese press. Japan's insistence on the introduction of
whistleblower protection in Vietnam could have a positive
long-term impact in avoiding similar corruption scandals in
the future. At the same time, the Japanese seem to have
accepted the prospect that, in this case, the well-connected
Mr. Si may indeed avoid meaningful punishment. End comment.
MICHALAK
SIPDIS
STATE FOR EAP/MLS AND EAP/J
E.O. 12958: DECL: 02/25/2019
TAGS: EAID ECON JA PREL VM
SUBJECT: JAPAN RESUMES SUSPENDED ASSISTANCE TO VIETNAM
REF: A. A) HANOI 94
B. B) HCMC 103
Classified By: DCM Virginia Palmer, reasons 1.5 (b) and (d).
1. (C) Summary: Not unexpectedly, Japan announced the
resumption of its suspended assistance to Vietnam when
Vietnamese Minister of Planning and Investment Vo Hong Phuc
met Japanese Foreign Minister Hirofumi Nakasone in Tokyo on
February 23. Japanese DCM Koichi Abioshi told DCM that the
resumption of assistance was based on three conditions: the
establishment of a joint Japan-Vietnam Commission, the
repayment of the full PCI loan by the end of the year, and
meaningful progress in the investigation of the Vietnamese
suspects in the case. Perhaps most meaningfully, Vietnam is
to have a new whistleblower protection law in place by 2010.
Abioshi said the recent visit to Vietnam by Crown Prince
Naruhito would be reciprocated by visits to Japan by CPV
General Secretary Nong Duc Manh in April and Prime Minister
Dung in May. End summary.
2. (C) The PCI corruption scandal, involving bribes of
$820,000 paid by Japanese consultants to Vietnamese official
Huynh Ngoc Si, led to suspension of new aid programs to
Vietnam by Japan, its largest donor. While three Japanese
consultants were tried and found guilty in Japan, the GVN's
investigation of Si is moving slowly amid rampant speculation
that Si's connections to HCMC Party Chief and Politburo
member Le Thanh Hai may shield him from meaningful
punishment.
3. (C) Japanese DCM Abioshi told DCM at a February 24 lunch
meeting that the resumption of assistance was based on three
conditions: 1) the establishment of a joint Japan-Vietnam
Commission, 2) the repayment of the full PCI loan by the end
of the year, and 3) meaningful progress in the investigation
of the Vietnamese suspects in the case. Abioshi assured DCM
that Vietnamese press reports of the resumption of aid by the
end of Japan's fiscal year in March were exaggerated. "We
will be lucky to have things rolling by the next Consultative
Group meeting in June," he said.
4. (C) The first condition was met with the formation of a
joint Japan-Vietnam commission to work on possible measures
to tighten controls on assistance including third-party
participation in pre-contract screening, auditing of
yen-financed projects, and other measures. The commission's
work led to a GVN agreement to put in place whistleblower
protection legislation by 2010. On the condition that
Vietnam repay in full the PCI loan by the end of the year,
Abioshi said the negotiations with the GVN involved serious
haggling, like being "in a market."
5. (C) Regarding the condition that the GVN show meaningful
progress in the investigation of the Vietnamese suspects, the
GVN agreed to provide the GOJ a written report. Abioshi said
the report the GVN had provided on the investigation had been
"vague" and included no reference to the penal code and that
Japan had asked the GVN to provide more specifics. Japan is
also concerned that Si faces "abuse of power" rather than
more serious corruption charges, but Abioshi admitted that
the Japanese consultants involved had all received suspended
sentences or probation.
6. (C) In a sign that the PCI scandal had not significantly
shaken strong bilateral ties between Japan and Vietnam,
Abioshi said the recent visit to Vietnam by Crown Prince
Naruhito would be reciprocated by visits to Japan by CPV
General Secretary Nong Duc Manh in April and possibly Prime
Minister Dung in May to attend a seminar organized by Nikkei
News.
7. (C) Comment: The resumption of Japanese aid was widely
expected, and indeed had been prematurely reported by the
Vietnamese press. Japan's insistence on the introduction of
whistleblower protection in Vietnam could have a positive
long-term impact in avoiding similar corruption scandals in
the future. At the same time, the Japanese seem to have
accepted the prospect that, in this case, the well-connected
Mr. Si may indeed avoid meaningful punishment. End comment.
MICHALAK