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2241 11/28/2001 9:26 01HANOI3124 Embassy Hanoi UNCLASSIFIED//FOR OFFICIAL USE ONLY This record is a partial extract of the original cable. The full text of the original cable is not available. 280926Z Nov 01 2001HANOI03124 -

SENSITIVE

E.O. 12958: N/A TAGS: PREL, PTER, ETRD, ENRG, VM, AR, CTERR SUBJECT: SLOW BUT STEADY ARGENTINA-VIETNAM RELATIONSHIP

1. (SBU) SUMMARY. A RECENT VISIT BY ARGENTINA\'S DEPUTY FOREIGN MINISTER UNDERSCORED A SHARED DETERMINATION TO ADVANCE THE LIMITED ARGENTINA-VIETNAM BILATERAL RELATIONSHIP. THE VISIT FOCUSED ON ECONOMIC AND TRADE ISSUES AND ALSO INCLUDED A FRAMEWORK AGREEMENT ON THE PEACEFUL USE OF NUCLEAR ENERGY. THOUGH INCREASINGLY REGULAR EXCHANGES USUALLY AVOID RAISING CONTROVERSIAL ISSUES, THIS VISIT DID INCLUDE AN AFFIRMATION OF SUPPORT FOR COUNTERING INTERNATIONAL TERRORISM. END SUMMARY.

2. (U) DURING A VISIT TO VIETNAM NOVEMBER 18-21, ARGENTINA\'S DEPUTY FOREIGN MINISTER HORACIO CHIGHIZOLA FOCUSED PRIMARILY ON PROMOTING BILATERAL TRADE, WHICH AMOUNTED TO ONLY ABOUT USD 47 MILLION IN 2000. HE WAS ACCOMPANIED BY EIGHT BUSINESS LEADERS, REPRESENTING 12 ARGENTINEAN COMPANIES. DFM CHIGHIZOLA MET WITH HIS COUNTERPART, VICE FOREIGN MINISTER NGUYEN DINH BIN, AND ALSO CALLED ON FOREIGN MINISTER NGUYEN DY NIEN, TRADE MINISTER VU KHOAN, AND MINISTER OF SCIENCE, TECHNOLOGY, AND ENVIRONMENT CHU TUAN NHA, ACCORDING TO THE MFA AND PRESS REPORTS. CHIGHIZOLA PARTICIPATED IN \"SEVERAL BUSINESS ROUNDTABLE DISCUSSIONS,\" ACCORDING TO ARGENTINEAN EMBOFF MARCELO GILARDONI.
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STEADILY IMPROVING BILATERAL RELATIONSHIP
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3. (SBU) MFA AMERICAS DEPARTMENT SENIOR EXPERT LE THANH TUNG NOTED THAT WHILE VIETNAM AND ARGENTINA HAD ESTABLISHED DIPLOMATIC RELATIONS IN 1973, \"UP TO THE EARLY 90S, WE HAD ALMOST NO RELATIONSHIP.\" SINCE 1993, HE ADDED, THE TWO COUNTRIES HAVE SEEN A \"STEADY IMPROVEMENT\" IN THE BILATERAL RELATIONSHIP, WITH A SERIES OF SENIOR LEVEL VISITS AND THE ESTABLISHMENT OF RESIDENT EMBASSIES. (NOTE: VIETNAM REPRESENTATION IS LIMITED IN LATIN AMERICA TO CUBA, MEXICO, BRAZIL, AND ARGENTINA. END NOTE.) FROM BUENOS AIRES, HE CITED VISITS IN 1996 BY THE FOREIGN MINISTER, IN 1997 BY THE PRESIDENT, AND IN 1998 BY THE MINISTER OF JUSTICE. ON THE GVN SIDE, TUNG NOTED VARIOUS MINISTERIAL LEVEL VISITS, INCLUDING IN 2001 BY THE MFA\'S FIRST VICE MINISTER AS WELL AS THE MINISTER OF CULTURE AND SPORTS. IN 1999, DEPUTY PRIME MINISTER CAM VISITED ARGENTINA IN HIS THEN-CONCURRENT CAPACITY AS FOREIGN MINISTER.

4. (SBU) TUNG SAID THAT PREVIOUS VISITS HAD RESULTED IN AGREEMENTS ON ANIMAL HUSBANDRY AND INVESTMENT PROTECTION. HE NOTED THAT THE SECOND MEETING OF THE JOINT VIETNAMESE- ARGENTINEAN GOVERNMENTAL COMMISSION FOR ECONOMIC COOPERATION IS EXPECTED TO OCCUR IN BUENOS AIRES \"PROBABLY NEXT MARCH OR APRIL\" AND THAT ITS PREPARATIONS WERE AMONG THE TOPICS DISCUSSED BY DFM CHIGHIZOLA. A SENIOR SRV TRADE MINISTRY OFFICIAL AND \"SEVERAL PROMINENT\" VIETNAMESE BUSINESSPEOPLE

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MODEST TRADE VOLUME
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5. (SBU) ALTHOUGH THE BILATERAL TRADE VOLUME REMAINS MODEST, TUNG HIGHLIGHTED ITS INCREASE FROM USD 11.5 MILLION IN 1993 TO USD 47 MILLION IN 2000. VIETNAM EXPORTS RICE, RUBBER, FOOTWEAR, AND SOME HANDICRAFTS TO ARGENTINA, WHILE IMPORTING BEEF, OLIVE OIL, WINE, AND FISH POWDER. TUNG ADMITTED THAT CURRENT TRADE \"HAS NOT MET OUR EXPECTATIONS OR POTENTIAL.\" EMBOFF GILARDONI NOTED THAT THE PRIMARY FACTORS LIMITING TRADE ARE THE DISTANCE BETWEEN THE COUNTRIES, A LACK OF FAMILIARITY WITH EACH OTHER\'S MARKET CONDITIONS, AND THE \"GRAVE FINANCIAL CRISIS\" IN ARGENTINA. BOTH OFFICIALS STATED THAT THE NEED TO INCREASE TRADE WAS A FOCUS OF THE DFM\'S MEETINGS. ACCORDING TO GILARDONI, THERE ARE NO JOINT VENTURES YET, BUT BOTH SIDES ARE \"HOPEFUL\" THAT PROGRESS IN THIS AREA WILL OCCUR AFTER THE NEXT JOINT COMMISSION MEETING.
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AGREEMENT ON NUCLEAR ENERGY
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6. (SBU) DURING THE DPM\'S VISIT, THE TWO SIDES SIGNED A FRAMEWORK AGREEMENT ON THE PEACEFUL USE OF NUCLEAR ENERGY. ACCORDING TO TUNG, THIS AGREEMENT \"IS IN ACCORDANCE WITH THE NUCLEAR DEVELOPMENT REGULATIONS OF BOTH COUNTRIES.\" HE NOTED THAT BOTH COUNTRIES WILL EXCHANGE VISITS OF EXPERTS, UNCLASSIFIED

PAGE 05 HANOI 03124 01 OF 02 300036Z BUT DID NOT PROVIDE SPECIFICS AS TO WHAT POTENTIAL PROJECTS MIGHT RESULT FROM THIS AGREEMENT, WHICH HE DESCRIBED AS RATHER \"GENERAL.\"
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MUM ON POLITICAL ISSUES--EXCEPT TERRORISM
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7. (SBU) TUNG AND EMBOFF GILARDONI STATED SEPARATELY THAT -- EXPENSIVE EXERCISE, WAS NOT CONSTRUCTIVE, HE ADDED. NOW THAT WE HAVE SIX NATO ELEMENTS, WE NEED TO DECIDE WHAT TO DO WITH THEM. HE ENDORSED A RECENT BRITISH IDEA OF PAIRING UP HRF COMMANDS. WHILE THIS MAY RESULT IN A REDUNDANCY OF RESOURCES, CAMPORINI SAID IT COULD BE AN ACCEPTABLE SOLUTION. ITALY SUPPORTS A MORE RATIONAL APPROACH TO CAOC\'S AND JOC\'S, CAMPORINI SAID, ALTHOUGH THE GOI IS NOT IN A POSITION TO START THE DISCUSSION ON RATIONALIZING THESE COMMANDS. ONCE THE DISCUSSION IS UNDERWAY, ITALY IS WILLING TO PARTICIPATE, CONFIDENTIAL

PAGE 04 ROME 01918 01 OF 02 171715Z AND IS EVEN PREPARED TO MAKE SACRIFICES THAT WOULD IMPROVE THE EFFICIENCY OF THE ALLIANCE.

5. (C) BALDOCCI AND OTHER KEY DELEGATION MEMBERS EXPRESSED PARTICULAR INTEREST IN THE FUTURE OF SACLANT AND SACEUR UNDER THE NEW UCP. THEY URGED THAT MAJOR NATO COMMANDERS REMAIN DOUBLE-HATTED, WITH BOTH A NATO AND A SIGNIFICANT US COMMAND. FROM THE ALLIES\' POINT OF VIEW, HE SAID, THIS IS AN IMPORTANT LINK THAT SHOULD BE PRESERVED BECAUSE OF THE STRONG MESSAGE IT SENDS.

NEW MEMBERS
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6. (C) THE ITALIANS AGREED THAT ALBANIA AND MACEDONIA ARE NOT READY FOR NATO MEMBERSHIP BUT SHOULD FEEL THE ENLARGEMENT PROCESS IS FAIR. BALDOCCI NOTED THAT POLITICAL CIRCUMSTANCES MAY IMPACT ENLARGEMENT BUT REITERATED THAT A GEOSTRATEGIC BALANCE IS AN ESSENTIAL PREREQUISITE FOR ITALY. PRIME MINISTER BERLUSCONI WILL PUBLICLY EXPRESS ITALY\'S SUPPORT FOR MEMBERSHIP FOR BULGARIA AND ROMANIA DURING HIS STOPS IN SOFIA AND BUCHAREST ON APRIL 17 AND 18, THEY SAID, BUT HE WILL ALSO ENCOURAGE THOSE COUNTRIES TO CONTINUE WITH NEEDED REFORMS TO REACH NATO STANDARDS. ON SLOVAKIA, U/S GROSSMAN AND DAS BRADTKE EXPLAINED THAT FUNDING NGO EFFORTS TO GET THE VOTE OUT MAY BE THE MOST EFFECTIVE AND LEAST INTRUSIVE WAY TO HELP SLOVAKIA PRESERVE ITS MEMBERSHIP POSSIBILITIES.

7. (C) ARAGONA AND BALDOCCI STRESSED THE IMPORTANCE OF PROTECTING THE INTEGRITY OF THE NATO MILITARY STRUCTURE, INCLUDING COLLECTIVE DECISION-MAKING. FRAGMENTATION COULD BE A SERIOUS BLOW TO THE WHOLE STRUCTURE, HE WARNED. THEY AGREED THAT ENLARGEMENT WILL PRESENT OTHER ISSUES SUCH AS THE NEED TO CREATE A MECHANISM TO SUSPEND OR EXPEL NATO MEMBERS AS THE COHERENCE OF THE ALLIANCE IS DILUTED. THIS HAS BEEN SOMEWHAT CONTROVERSIAL IN EUROPEAN DEBATES, ARAGONA SAID, BUT IS AN IDEA ITALY COULD SUPPORT.

NEW RELATIONSHIPS
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8. (C) WHEN ASKED ABOUT RUSSIA\'S POSITION ON MEMBERSHIP FOR THE BALTICS, U/S GROSSMAN EMPHASIZED THAT ONE REASON FOR HOLDING A NATO-RUSSIA SUMMIT IN ROME IN LATE MAY IS TO HELP PRESIDENT PUTIN NEUTRALIZE OPPOSITION TO ENLARGEMENT. ITALY, ALONG WITH OTHER ALLIES, WILL NEED TO ENSURE THAT THE MAY SUMMIT IN ROME RESOLVES RUSSIA\'S PUBLIC OPINION PROBLEMS SO THAT THESE WILL NOT INTERFERE WITH THE PRAGUE SUMMIT. DAS BRADTKE SUGGESTED THAT ENCOURAGING THE BALTICS TO STATE THAT CONFIDENTIAL

PAGE 03 ROME 01918 02 OF 02 171715Z THEY WOULD LIKE TO JOIN CFE WHEN POSSIBLE MAY ALSO HELP PUTIN WITH RUSSIAN PUBLIC PERCEPTIONS ON ENLARGEMENT.

9. (U) THIS CABLE HAS BEEN CLEARED BY U/S GROSSMAN. SEMBLER