C0 6211 6 5 gilED US Department of State Case No F-2016-07743 Doc No 006416059 Date 10 11 2017 RELEASE DEPARTMENT OF STATE E36 AGENCY FOR INTERNATIONAL DEVELOPMENT wasp- moron D C 2052 q March 14 197 CONFIDENTIAL MEMORANDUM TO Mr Anthony Lake Director Policy Planning Staff BE FREE A I D SUBJECT DISSENT CHANNEL MESSAGE Normalization of Relations with Vietnam Steps Along the Way 1 This memorandum_nresents a dissent channel viewpoint of ffice of Philippines and Thailand 55 Affairs Asia Bureau A I D In addition to normal distribution to policy planning staff I desire distribution to officers in the EA and EB Bureaus in State who deal with the subject matter I intend to arrange for distribution within the Asia and PPC Bureaus of A I D 2 I wish to associate myself with the dissent channel message dated February 15 92 on_2u5 Bali towards the IMF IBRD and ADB in Vietnam Asia 0C5 A I D BE presents a convincing case for encouraging rather than resisting economic relationships between the SRV and the international financial institutions Such contacts he argues will fester SRV tendencies to pragmatism and openness Certainly if normalization is our ultimate goal as I think it should be those Vietnamese tendencies are worth cultivating In a fast-changing and interdependent world it makes good sense for the United States not only to overcome the emotionalism and bitterness of past conflict but actually to promote Indochinese participa- tion in the community of nations 3 Supporting an SRV stake in the IFIs is a desirable step toward nonmalization Amending our aid and PL 430 legislation is another In the first instance we should seek removal of all legislative constraints on other country trade and aid to Vietnam in particular those contained in Section 620 of the FAA and Section 103 of PL 430 In CONFIDENTIAL GDS UNCLASSIFIED US Department of State Case No F-2016-07743 Doc No 006416059 Date 10 11 2017 0 6 4 1 6 5 men us Department of State Case No Doc No 306416059 Date 10 11 2017 CONFIDENTIAL -2- current policy terms both of these wartime provisions are essentially obsolete and should be repealed Additionally we should begin now to seek removal of the legislative prohibitions on aid to Vietnam In particular Section 108 of the FY 77 ApprOpriation Act Depend- ing upon progress of the current U S delegation on MIA issues bilateral assistance may be a distant possibility Nevertheless an attempt new to seek repeal of the legislative prohibition would provide an Opportunity fer developing Congressional and public support for normalization Prohibitions on aid were enacted in the immediate aftermath of the American withdrawal from Vietnam If we are to begin healing the wounds of war we need to remove the constraints to that process A PTleichael Hagenmem 03 15 77 CONFIDENTIAL - - - UNCLASSIFIED US Department of State Case No F-2016-07743 Doc No 006416059 Date 10 11 2017 US Department of State Case No F-2016-07743 Doc No C06415577 Date 10 11 2017 1 RELEASE IN PART 35 DEPARTM ENT OF Washington D C 20520 March 23 1977 MEMORANDUM To' - BB FROM - Anthony SUBJECT Dissent Channel Message Normalization of Relations with Vietnam Steps Along the Way This will acknowledge the receipt of your dissent paper on normalization of relations with Vietnam 'Douglas Pike of the Policy_P1anning Staff has been named coordinator in charge of a substantive reply In adcordance with the stipulated distribution for dissent messages your paper has been circulated to the 0_ffices of the Secretary the Executive Secretary the Director of the Policy Planning Staff and the Chairman of the Open Forum in addition to the Assistant Secretaries for East Asian Affairs and Economic and Business Affairs and the Director of AID We commend your use of the dissent channel and will reply'as as possible to the views you have submitted UNCLASSIFIED U S Department of State Case No F- 2016-07743 Doc No 00641557 Date 10 11 2017 C0 6 4 6 0 US Department of State Case No F-2016-07743 Doc No 006416053 Date 10 11 2017 44 3 DEPARTMENTIOF STATE Washington DC 20520 - RELEASE IN PART 36 3 14- 9%9 7 1 Dear BB This letter is a reply to your memorandum of 'March 14 in the dissent channel in_which_you associate yourself with the earlier dissent of _h BB concerning participation by the Socialist Republic of Vietnam SRV in various international monetary organizations As we noted in a letter to since the 35 advent of the new Administration there has been considerable movement and change of direction with respect to this policy The U S no longer opposes SRV membership in U N specialized agencies It has dropped some restrictions involving shipping to the SRV Perhaps most important from the point of view of your memorandum the 0 5 no longer will raise objections to loans and programs for the SRV undertaken by the multinational financial institutions such as you mention as long as the normal procedures and technical requirements applicable to any recipient country are met It is our position that any assistance provided the SRV should be in conformity with the policies and procedures of the organization concerned Such assistance must meet the particular institution's economic and technical criteria and the SRV must carry out fully its obligations to them In this connection we believe that Vietnam's experience with the IMF in coming months will serve as a useful indicator of the - extent to which membership in IFI's fosters the liberalization you speak of Vietnam s record with the IMF also will likely affect its prospect for eventual project assistance from institutions with Room 6668 Department of State Agency for International Development Washington D C 20523 Mr pn - - I ran-w a 07743 our No Coe41605 2017 D Oi 94$ 9 9 A 0 Department of State Case No F-2016-07743 Doc No 006416053 Date 10 11 2017 - 2 similar obligations such as the World Bank and the Asian Development Bank We_are prepared to keep an Open mind in regard to Vietnam's relationship with the IMF but in the interim cannot prejudge our positiOn on the merits of specific projects for which Vietnam may request assistance from other institutions in the future As perhaps you are aware the US-Vietnamese rela- tionship is now in a moment of flux and transition we have agreed to meet the Vietnamese in substantive negotiations and probably these sessions will begin in the near future - It is too soon to know what exactly' will be our policy on various issues including existing legislative provisions since so much depends on the Vietnamese negotiating strategy But certainly it is safe to say the sense of the suggestions on economic relations made by_ and yourself and the antici- 35 pated direCtion of U 3 foreign policy in this respect are now essentially in harmony We thank you for your letter and appreciate your concern which is one we all-share that efforts be made to improve and normalize relations between the U S and vietnam Sincerely 62 a -3 thi7 - Anthony Lake Director Policy Planning Staff us Department of Stat Case No F-2016-07743 Doc 0 006416056