(U) LAOS: RESPONSE TO GLOBAL FINANCIAL CRISIS

C O N F I D E N T I A L STATE 077666

SIPDIS

E.O. 12958: DECL: 07/24/2034
TAGS: PINR ECON EFIN EINV PREL LA
SUBJECT: (U) LAOS: RESPONSE TO GLOBAL FINANCIAL CRISIS
(C-AL9-01470)

REF: A. VIENTIANE 000306

B. VIENTIANE 000264

Classified By: MICHAEL P. OWENS, ACTING DIR, INR/OPS. REASON: 1.4(C).


1. (C) WASHINGTON ANALYSTS ARE KEENLY INTERESTED IN
ASSESSING LAOS'S VULNERABILITY TO FOREIGN ECONOMIES AND THE
LIKELIHOOD THAT VIENTIANE IS ACTIVELY MANAGING ITS EXPOSURE
TO CHINA, THAILAND, AND VIETNAM. ECONOMIC REPORTING ON
LAOS'S BUDGET DIFFICULTIES AND GROWTH PROSPECTS PROVIDED US
WITH A USEFUL WINDOW TO EXAMINE ITS FOREIGN RELATIONS THROUGH
ITS ECONOMIC POLICIES. WE UNDERSTAND THE DIFFICULTY IN
ADDRESSING MANY OF THESE ISSUES GIVEN THE LACK OF
TRANSPARENCY IN LAOS AND APPRECIATE ANY DETAILS POST CAN
OFFER, TIME AND RESOURCES PERMITTING, AND IN THE COURSE OF
NORMAL DUTIES.


A. (U) HOW IS LAOS BALANCING ITS EXPOSURE TO OTHER NATIONAL
ECONOMIES?


B. (U) HOW ARE CHINA, THAILAND, AND VIETNAM PERCEIVED
WITHIN THE GOVERNMENT AND PARTY, PARTICULARLY THE MFA,
MILITARY, AND POLITBURO, AND HOW DO THESE GROUPS INFLUENCE
FOREIGN ECONOMIC POLICY?


C. (U) WHAT FORMAL AND INFORMAL FOREIGN AID, DEVELOPMENT
ASSISTANCE, AND INVESTMENT ARE PERCEIVED AS MOST USEFUL FOR
LAOS'S ECONOMIC DEVELOPMENT?


D. (U) WHAT IS THE EFFECT AND OUTLOOK WITHIN THE GOVERNMENT
OF RECENT HIGH-PROFILE INVESTMENT DECISIONS, SUCH AS THE SALE
OF SEPON COPPER-GOLD MINE TO MINMETALS?


2. (U) PLEASE CITE C-AL9-01470 IN THE SUBJECT LINE OF
REPORTING IN RESPONSE TO THE ABOVE QUESTIONS.
CLINTON