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### Viewing cable 06PHNOMPENH742, SCENESETTER FOR DAS ERIC JOHN'S APRIL 30-MAY 2

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PHNOMPENH742 | 2006-04-21 10:09 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Phnom Penh

`

    VZCZCXRO0411
    OO RUEHCHI
    DE RUEHPF #0742/01 1111009
    ZNR UUUUU ZZH
    O 211009Z APR 06
    FM AMEMBASSY PHNOM PENH
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 6505
    INFO RUEHBK/AMEMBASSY BANGKOK PRIORITY 1463
    RUEHVN/AMEMBASSY VIENTIANE PRIORITY 2812
    RUEHCHI/AMCONSUL CHIANG MAI PRIORITY 0035
    RHHMUNA/HQ USPACOM  PRIORITY
    RUEHGV/USMISSION GENEVA PRIORITY 1408

` `

    UNCLAS SECTION 01 OF 02 PHNOM PENH 000742

    SIPDIS

    SENSITIVE
    SIPDIS

    STATE FOR EAP DAS ERIC JOHN FROM CHARGE MARK STORELLA,
    STATE ALSO FOR EAP/MLS; GENEVA FOR RMA

    E.O. 12958: N/A
    TAGS: PGOV PREL KDEM CB
    SUBJECT: SCENESETTER FOR DAS ERIC JOHN'S APRIL 30-MAY 2
    VISIT TO CAMBODIA

    ¶1.  (SBU)  Your visit will come at a time when things are
    looking better for Cambodia than they have in a long time and
    at a time when Prime Minister Hun Sen and his party are
    feeling comfortable about their performance.  The political
    environment has turned around dramatically, the economy is up
    and our bilateral relationship is on the strongest upswing in
    a decade.  The Cambodians clearly want to see bilateral
    relations improve further and will see your visit as an
    opportunity to support the positive trend begun during A/S
    Hill's January visit.  You will be able to reinforce our
    strong areas of cooperation and press for further progress on
    democratic institution building.

    ¶2.  (SBU)  Your meeting with PM Hun Sen will be the
    centerpiece of the visit.  Uppermost in his mind will be the
    prospect of an eventual official visit to Washington and the
    legitimacy such a visit would confer.  He will also have in
    mind the need for the U.S. to balance China and Vietnam, both
    of whose premiers visited Cambodia in the last month.
    Foreign Ministry interlocutors will likely push Cambodia's
    APEC bid, even though we have reminded them of the moratorium
    until 2007.  Opposition leader Sam Rainsy will brief on his
    reconciliation with Hun Sen and future plans.  Human rights
    advocates, including Kem Sokha, deeply appreciate our
    support, but remain cautious after the setbacks of 2005.  The
    press will seek your assessment of political developments and
    ask about reports that the U.S. has requested Cambodian
    participation in Iraqi reconstruction.  In all your meetings,
    you will have the opportunity to stress the need to
    institutionalize democratic and good governance reforms,
    including anti-corruption legislation, further support for
    the role of the opposition, and possible legislation on use
    of future oil/gas revenues for poverty reduction.

    ¶3.  (SBU)  The Cambodian government (RGC) has delivered on
    everything promised A/S Hill and more.  The RGC released all
    political prisoners; Sam Rainsy has returned, been pardoned
    and resumed his role in the National Assembly; opposition
    members have joined all National Assembly Commissions and
    been awarded two chairmanships; the PM and Sam Rainsy have
    launched a land authority to review land disputes; the
    Council of Ministers approved decriminalization of defamation
    April 21; and the PM has agreed to revise the National
    Electoral Commission to include the opposition.  Cambodia
    continues to provides us excellent cooperation on health
    (avian influenza and HIV/AIDS), POW/MIA, CT, law enforcement,
    deportees, counternarcotics, and criminal cases under the
    Protect Act.  We expect the RGC's 2006 anti-trafficking in
    persons record to result in an upgrade from Tier 3 to the
    Tier 2 Watchlist.  Cambodians enjoy unfettered religious
    freedom and a relatively open press.  The RGC recently
    accepted our final offer on Cambodia's Vietnam War era
    bilateral to debt to us, although repayment terms have yet to
    be worked out.  Nevertheless, Cambodia's democratic
    infrastructure remains weak and reforms continue to depend on
    PM Hun Sen personally.

    ¶4.  (U)  Cambodia's economy is on a roll, with 10% growth in
    2005 and signs of strong growth in 2006.  The garment sector
    is the engine of the economy, providing over 270,000 jobs,
    and has survived in the post-Multi-Fiber Agreement era thanks
    to Cambodia's reputation for respect for labor standards and
    rights.  The U.S. is Cambodia's leading trading partner,
    buying roughly 60% of all exports.  (The GAP alone buys about
    8% of Cambodia's entire GDP.)  Tourism, centered on Angkor
    Wat, is up.  Western donors and Japan pledged roughly $600
    million in aid for 2006.  (The Chinese premier responded by
    announcing China's own flashy, if mathematically dubious,
    $600 million pledge.)  A recent World Bank study showed a
    steady decline in poverty over the past decade, and health
    indices for the country are positive.  Chevron has struck oil
    in Cambodian territorial waters and commercial production is
    expected to come on line in 2009.  All agree that the twin
    roadblocks to greater foreign investment and diversification
    of Cambodia's economy are corruption and lack of a competent,
    independent judiciary.

    ¶5.  (SBU)  We have responded to the government's positive
    steps by reinforcing and expanding the bilateral relationship
    in small increments:  the proposed opening of a Legatt
    office; the announcement of a Peace Corps Mission; USD
    200,000 to the Ministry of Justice for anti-trafficking
    training; and an increase in AI assistance through USAID and
    CDC.  We are in the process of putting into place additional

    PHNOM PENH 00000742  002 OF 002

    CT assistance, a new INL counternarcotics program for 2008,
    and renewed TIFA talks with the RGC.  The RGC may announce
    judges for the Khmer Rouge Tribunal (KRT) before your visit;
    we should express our strong desire that the Tribunal's
    operations meet international standards of justice.  A
    possible deliverable for your visit might be announcement
    that we would agree for U.S. funds in an old UN trust fund to
    be used by the KRT as proposed by the UN -- if Washington
    could disgorge a decision by the time of your trip.  The U.S.
    bureaucracy has been chewing on this for over a month.

    ¶6.  (SBU)  You will have an opportunity to engage the MFA on
    the recent ASEAN Foreign Ministers meeting in Bali, and how
    ASEAN intends to proceed on Burma.  We believe the RGC would
    like to be helpful in so far as ASEAN consensus will allow.
    The National Assembly may be prepared to pass a resolution on
    Burma, which would break new ground for the legislative body.
     The new chairman of the Foreign Affairs Commission, Son
    Chhay, is an SRP MP and would support a resolution, but
    recognizes the need for agreement from the ruling Cambodian
    People's Party.  We believe such a step is doable.

    ¶7.  (SBU)  You may also discuss the next steps the USG is
    prepared to take to assist Cambodia:  assuming TIP sanctions
    are removed, an expanded military-to-military relationship
    with restored IMET and FMF funding; further CT training; a
    possible ship visit to symbolize expanded military
    cooperation; debt initiatives including support for a new
    Paris Club deal and USG willingness to consider rechanneling
    debt payments into education initiatives and the environment;
    and prospects for high-level contacts.

    ¶8.  (SBU)  In sum, while we do not expect any dramatic
    breakthroughs, your visit can reinforce a positive trend both
    in terms of democratization and improved bilateral
    cooperation.  And we look forward to taking you for a tour of
    EAP's newest embassy building.  It remains the talk of the
    town.
    STORELLA

`