SENATOR WEBB PROMOTES ARVN RECONCILIATION AND CONTINUED

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SENSITIVE
SIPDIS

STATE FOR EAP/MLS AND PRM

E.O. 12958: N/A
TAGS: OREP PGOV PREL PREF VM
SUBJECT: SENATOR WEBB PROMOTES ARVN RECONCILIATION AND CONTINUED
ECONOMIC GROWTH DURING DECEMBER VISIT

REF: 08 Hanoi 1408

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1. (SBU) Summary: During his December 29-31 visit to HCMC,
Senator Jim Webb focused on helping to heal Vietnam's war legacy
issues as well as engaging with U.S. and Vietnamese business
community on the city's economic future. Visits to both a
former ARVN cemetery and an NLF-PAVN cemetery fulfilled a
long-term goal for the Senator, who has been engaged in trying
to move the reconciliation process forward for all of Vietnam's
former veterans for many decades. Meetings with HCMC officials,
AmCham, rising young Vietnamese stars in the private sector, and
the land development visionaries at Phu My Hung also gave the
Senator a chance to discuss ways the U.S. and Vietnam are
working together to build a better future here. End summary.

Reconciling the Past
--------------

2. (SBU) While the GVN has made significant progress in moving
beyond the painful war wounds of the past, one area remaining
problematic is the status of former ARVN soldiers and others
associated with the former regime. Senator Webb raised this
issue during his official meetings with HCMC People's Committee
Chairman Le Hoang Quan and Party Secretary Le Thanh Hai, and
expressed his appreciation for GVN efforts to allow him to visit
a former ARVN cemetery as well as a cemetery for NLF and PAVN
soldiers on December 29. The visit to the ARVN cemetery, which
was billed by the GVN as a "private visit" (no GVN officials
present) granted on the basis of Webb's personal interest, was
also the first time Consulate officers have been allowed to
visit since early 2007.

A Tale of Two Cemeteries
--------------

3. (SBU) The former ARVN cemetery in neighboring Binh Duong
province was converted to a civilian cemetery in November 2006
and re-named Binh An Cemetery. Provincial authorities took over
management of the cemetery in June 2007. Established in 1965,
the cemetery was formerly the national military cemetery for
South Vietnam and designed to accommodate 30,000 graves. South
Vietnamese records estimated about 16,000 graves in the cemetery
by April 30, 1975, half with cement tombstones and half without.
Today, there are approximately 12,000 graves in various
conditions on 58 hectares of land. The Prime Minister's order
allowing civilian access in 2006 gave many families access to
repair dilapidated and damaged tombstones, and it was clear
during Senator Webb's visit that several tombs had been cleaned,
repaired or replaced. A small 'mom and pop' business has also
been set up at the entrance, offering to tend graves for
families that live far away and cannot visit regularly as well
as to locate graves for visiting family members. Grass and
underbrush around the graves appeared recently cut and cleared.


4. (SBU) Some graves had faded white tombstones while others
were little more than dirt mounds with a single brick placed as
a marker. Many looked as though they had remained untouched
since 1975. Crumbling monuments and outbuildings stood at the
center of the cemetery and pathways were primarily dirt and
gravel. Outside the gates, residences and small businesses have
encroached on former cemetery grounds, and the pillars and
stairs that used to mark the former cemetery entrance have been
completely overtaken by trees and foliage. A few grazing cows
wandered through as Senator Webb and Consulate staff explored
the former hilltop shrine. A group of approximately six men,
some of whom worked at the cemetery and some of whom appeared to
be plainclothes security escorts, trailed behind the delegation
throughout the visit but did not interfere.


5. (SBU) The immaculate grounds and massive monuments of the Ho
Chi Minh City Martyr's cemetery in the Binh Hoa district of HCMC
stood in stark contrast to conditions at the former ARVN
cemetery. Established in 1977, the GVN cemetery was initially
for soldiers who fought during the French and American wars, but
later became home to fallen soldiers from the Cambodian war as
well. The cemetery now has 14,000 graves of soldiers from all
64 of Vietnam's provinces on 29 hectares of land and is
administered by the HCMC Department of Labor, Invalids and
Social Affairs (DOLISA).

Looking Toward the Future
--------------

6. (SBU) During his meetings with HCMC leaders on December 30,
Senator Webb noted that while he learned a great deal about "one
small place" in Vietnam during his tour of duty as a Marine in
Quang Nam and Danang, he has dedicated the past few decades to
returning to Vietnam to learn more about the country's culture
and history. In the process, Webb said, he has witnessed the
amazing growth and energy characterizing Vietnam's rapid
economic recovery. He was pleased to report that on this visit,
his meeting with the Archbishop and seeing the large crowds of

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Catholic followers attending Midnight Mass in Hanoi, as well as
his visit to the former ARVN cemetery, pointed to continued
growth in other areas. Senator Webb noted that when he visited
HCMC in the 1990's, the park across from the New World Hotel was
filled with homeless ARVN soldiers begging for change. This
time, the park thronged with revelers celebrating Vietnam's
victory over Thailand in the AFF Suzuki Cup soccer match.
Relating the status of ARVN soldiers to that of former
Confederate soldiers during the American Civil War, Webb noted
that it took a very long time for America to resolve internal
conflicts and finally recognize the sacrifices of Confederate
soldiers from the South.


7. (SBU) While steering clear of any direct discussion of former
ARVN soldiers, both Party Secretary Hai and People's Committee
Chairman Quan both acknowledged the positive role the U.S. has
played in Vietnam's economic growth and recovery, as well as the
important strides both countries are making to build bridges for
overseas Vietnamese returning to do business today. Quan echoed
points raised by Hanoi GVN officials when asking for the
Senator's support in current GSP negotiations as well as
enhanced educational cooperation.

HCMC's Business Community
--------------

8. (SBU) The HCMC AmCham Board of Governors received a
sympathetic hearing from Senator Webb with regards to the USG's
tax policy on overseas income. He acknowledged that because the
U.S. taxes overseas earned income much more highly than do
competitor nations (Australia, France, Germany, Britain, etc.),
current U.S. tax laws serve to create an unequal playing field
in which multi-national corporations must pay a significantly
higher total compensation package to Americans in order to yield
the exact same take-home pay. Senator Webb likened the
situation of American expat executives to that of U.S.
autoworkers, noting a major difficulty in negotiating the loan
package for U.S. automakers was the popular perception that
union autoworkers are much more highly paid that non-union
workers. In reality, he added, the real difference in the total
cost of the union and nonunion workforce lies not in salary
levels but in the overhead cost of paying benefits to retirees.
Webb encouraged AmCham to find other members of Congress who
shared his point of view that this tax inequality needs to be
rectified and agreed to help "find the right people" in
Washington to move the issue. Webb also supported the Chamber's
efforts to engage with the GVN on increased transparency,
improved labor and association laws and anti-corruption, noting
he was active in discussions with GVN leaders visiting
Washington on the same topics, especially on labor issues. The
Senator showed great interest in Vietnam's energy issues, noting
he was active in discussions regarding China's rise in Asia and
concerned about reports that China was "arm-twisting" U.S.
companies not to do business with Vietnam because of the ongoing
dispute in the oil-rich South China Sea.


9. (SBU) Several members of the Vietnamese-American MBA
Association (VAMBA) and other young Vietnamese business leaders
turned out to meet Senator Webb on December 30 and shared with
the Senator how their experiences studying and working in the
U.S. and Australia have helped them succeed in the private
sector back in Vietnam. The Senator commended the group for
their important role in building bridges between the U.S. and
Vietnam. During his tour of the Thanh Thuan Export Processing
Zone and residential developments at Phy My Hung, Taiwan
developer Albert Ting also shared with Senator Webb his
company's role in moving HCMC urban planning to a new phase of
development, while remaining dedicated to supporting the larger
community through its innovative education and energy
initiatives.


10. (SBU) Senator Webb declined the opportunity to clear on this
cable.
FAIRFAX