COUNTRY COMMENTARY: REDACTED REPORT ON SRV DEVELOPMENTS

Created: 5/3/1988

OCR scan of the original document, errors are possible

PAGE

may

MAY

TO: DIRECTOR

COUNTRY COMMENTARY: DEVELOPMENTS

OfC SRV

DEVELCPHENTS^TNTHE SOCIALIST REPUBLIC" OF" VIETNAMARCH THROUGH8

I:

-6

for release date: nov

Page 1

m

TEXT: 1. TKE FOLLOWINGEPORT I

REPUBLIC OF VIETNAM

ACTIVITIES IHARCH THROUGH 15

ATEART ATTACK HAS FOLLOWED ON 11 MARCH BY THE APPOINTMENT OF VO VAN KIET AS ACTING PRIME MINISTER [SUBJECT TO COSTATIONAL-ASSEMBLY SESSION-IN-wUNB}-;

3. "AS PARTY SECRETARY IN HO CHI MINK CITY AND SUBSEQUENTLY DEPUTY PRIME MINISTER AND CHAIRMAN OF THE STATE PLANNING COMMISSION, KIET HAS CONSOLIDATED HIS REPUTATION AS VIETNAM'S LEADING EXPONENT OF MOVES FROM ORTHODOX SOCIALIST ECONOMIC DOCTRINE TO MORE PRAGMATIC AND PRO00CTIVE GOVERNMENT POLICIES.

4. UBSEQUENT MINISTERIAL RESHUFFLE ON 2* MARCH, KIET WAS SUCCEEDED AS CHAIRMAN OF THE STATE PLANNING COMMISSION BY DAO NGOC XUAN, THE PREVIOUS VICE CHAIRMAN. THE FORMER MINISTRY OF FOREIGN TRADE AND THE STATE COMMISSION FOR EXTERNAL ECONOMIC RELATIONS (CREATED IN THE7 REFORMS) WERE AMALGAMATED IN THE SAME RESHUFFLE. THE FORMER FOREIGN TRADE MINISTER DOAN DUY THANH BECAME MINISTER FOR EXTERNAL ECONOMIC RELATIONS. VONG, CHAIRMAN OF THE DISBANDED STATE COMMISSION FOR EXTERNAL ECONOMIC RELATIONS, IS AT PRESENT A

MINISTER NITHOUT PORTFOLIO: PREDICT THAT HE MILL

BEOSITION RELATED 'IU bLUSUMIL MANAGEMENT. THE FORMER MINISTRY OF CONSTRUCTION MAS COMBINED WITH THE STATE COMMISSION FOR CAPITAL CONSTRUCTION, WITH FORMER CONSTRUCTION MINISTER PHAK NGOC TUCNG AS MINISTER. THE GENERAL DEPARTMENT OF ELECTRONICS AND INFORMATION TECHNOLOGY HAS BEEN MERGED WITH THE MINISTRY OF ENGINEERING AND METALS.

TATUTORY

reict

5. "VO VAN KILT'S SUCCESSION TO THE PRIME MINISTERSHIP SEEMS FURTHER ASSURED BY THE APPOINTMENTEW STATE PLANNING COMMISSION CHAIRMAN. THE OTHER CHANGES REFLECT CONTINUING ADMINISTRATIVE STREAMLINING. 'STATE COMMISSIONS' AND ENERAL DEPARTMENTS' ARE SIMILAR AUTHORITIES, AND THE NEW ARRANGEMENTS

JVC tViiSlDLt

DUPLICATION AND ESTABLISH CLEARER LINES OF RES PONS IB IhtTY",

NEW REFORM MEASURES DURING RECENTINCLUDED NEW INSTRUCTIONS ON INDUSTRIAL AND THE EMPHASIS IS ON THE AUTONOMOUS MANAGEMENT PRODUCTION DECISIONS AND PROFITABILITY. HREE-WAY

DISTINCTION IS MADE BETWEEK-FULLY-SOCIALIST, PARTIALLY

SOCIALIST AND SMALL-SCALE/COOPERATIVE ENTERPRISES. WITH EXEMPTIONS COVERING ENTERPRISES "AFFECTING NATIONAL SECURITY AND SOCIAL ORDER', THE REGULATIONSASIS FOR THE

.EXTENSION OF THE MORE AUTONOMOUS FORKS OF-COLLECTIVES AH)

COOPERATIVES. IN PARTICULAR, INVESTMENT, BURROWING AND EXPORT

GOVERNMENT"COMMENT ON" the NEW REGULATIONS NOTES the DEMONSTRATED SIGNIFICANCE IN TOTAL INDUSTRIAL OUTPUT OF THE COLLECTIVE SECTOR, ACCOUNTING FOR MORE THANERCENT OF TOTAL OUTPUT AND MORE THANERCENT OF TOTAL EXPORTS.

PRIL the PARTY CENTRAL COMMITTEE ISSUEDON THE 'RENOVATION* OF ECONOMIC MANAGEMENT IN

AGRICULTURE. THIS NOTES THE "ENHANCED SENSE OF MASTERY AND ENTHUSIASM DEMONSTRATED BY AGRICULTURE PRODUCERS FOLLOWING THE INTRODUCTION0 OF THE PRODUCT-BASED CONTRACT SYSTEM. IT ACKNOWLEDGES 'SERIOUS MISTAKES' IN THE PAST IN AGRICULTURAL POLICY, CAUSED BY UNDER-ESTIMATING THE IMPORTANCE OF REGIONAL INEQUALITIES AND OF 'VOLUNTARISM, MUTUAL BENEFITTING AND DEMOCRATIC MANAGEMENT'. IN THE INTERESTS OF TECHNICAL ADVANCES AND GREATER PRODUCTION, THE RESOLUTION PROPOSES DIVERSIFICATION

CROPS, CATTLE RAISING, FORESTRY AND FISHERIES. TO THTS END,

COOPERATIVES ARE TO BE CONSOLIDATED WITHIN COMMUNES, WHILE LARGE COOPERATIVES IN THE NORTHERN AND CENTRAL REGIONS "WHICH SHOW -SI GNS- -OF- -STAGNAT-IN-THE- HI-

'ONLY THOSE COOPERATIVES WHICH ARE OPERATING FRUITFULLY SHOULD BE RETAINED: THE REST SHOULD BE CONVERTED INTO MUTUAL AID OR MORK EXCHANGE TEAMS OP PRIVATE HOLDINGS' THE IMPORTANCEOOD NETWORK OF TRANSPORT AND TRAINING IS EMPHASIZED. THE RESOLUTION DECLARES THAT 'COLLECTIVE FARMING IN APPROPRIATE FORMS SHOULD BE PRACTICED ONLY WHERE CONDITIONS PERMIT: IN SOUTHERN VIETNAM, IN THE IMMEDIATE FUTURE, THE MAIN FORM OF COOPERATIVE FARMING SHOULD BE THE PRODUCTION GROUPS' THE OVERALL EMPHASIS IN THIS RESOLUTION IS ON DECENTRALIZED DECISION-MAKING BY PRODUCTION GROUPS AND LOCAL-LEVEL COOPERATIVES. STATE INVOLVEMENT IS SPECIFIED IN SUCH AREAS AS CAPITAL AND MAN-POWER ALLOCATION AND ASSISTANCE WITH TECHNICAL INPUTS VIETNAMESE ABROAD AND OTHER FOREIGN SOURCES ARE ENCOURAGED TO INVEST FUNDS OR EQUIPMENT IN AGRICULTURE, FORESTRY AND FISHERIES UNDER THE FOREIGN INVESTMENT LAW.

T

TKACH THAT THE AGRICULTURAL

B. "DEPUTY PRIME MINISTER AND FOREIGN MINIS COMMENTED

INTENTIONO INCREASE FURTHER THE PROPORTION OF AND INDUSTRIAL PRODUCT AVAILABLE FOR PRIVATE PURPOSES, INCLUDING SALE AND EXPORT. HE PUT THIS IN THE CONTEXT OF VIETNAMESE 'INCENTIVIZATION REFORMS'. |

1 DURING THE FIRST THREE MONTHSS,TJUU PEOPLE HAD BEEN MOVED FROM DENSELY POPULATED AREAS TO NEW ECONOMIC ZONES. REPORTS HAVE STRESSED MOVES FROM NORTHERN PROVINCES TO THE CENTRAL HIGHLANDS AND SPARSELY POPULATED AREAS IN THE SOUTH.

TRANSFERS OF POPULATIUW IHUB BOTH HANOI AND HO CHI HINH CITYECONOMIC ZONES (INCLUDING AREAS. THR WAR YEARS! AND TO THR ftPTD WESTERN PART OFMOVES ARE NOT POPULAR DUE

TO THE- HARU-Llfb ANUOODREFER TO THE 'MOBILIZATION' OF URBAN POPULATIONS TO THE NEW ECONOMIC CONSOLIDATION OF KAMPUCHEAN REFUGEE CAMPS TN SOUTHERN VIETNAM.

'ONARCH THE COUNCIL OF MINISTERS ISSUED NEW

REGULATIONS FOR STATE OWNED

EMPHASIZE THE 'ONE-NAN LEADERSHIP SYSTEM' OPERATINGF WORKERS. THIS IS LINKED TO THE NEED TO ENHANCE PRODUCTION AND MARKETING. DIRECTORS ARE GIVEN INCREASED RIGHTS

v..

FREEDOM ON COOPERATION WITH OTHER ENTERPRISES, 'WITHOUT

GOVERNMENT COMMENTARY NOTES THATUCH ENTERPRISES NOW OPERATE IN VIETNAM, ACCOUNTING FORERCENT OF TOTAL INDUSTRIAL OUTPUT. IT CLAIMS THAT ONLY AROUNDERCENT OF THEIR CAPACITY HAS BEEN UTILIZED AND EMPHASIZES THE GREATER FREEDOM OF THESE ENTERPRISES (FOR EXAMPLE ON DISPOSAL AND ACQUISITION OF ASSETS) UNDER THE NEW REGULATIONS.

7*

THE COUNCIL OF STATERAFT CODE ON PENAL PROCEDURES IN EARLY APRIL FOR PUBLIC DISCUSSION. THIS HAD BEENT THE NATIONAL ASSEMBLY SESSION OF IT PROVIDES CLEARER GUIDANCE ON THE RESPONSIBILITIES OF POLICE AND THE LEGAL PROFESSION 'EQUALITY BEFORE THE LAW, 'DEMOCRATIZATION' AND 'SOCIAL EQUITY' ARE EMPHASIZED

11. "VIETNAMESE FOREIGN RELATIONS HAVE BEEN DOMINATED IN

ARMED CLASH IN THE AREA, IN WHICH SOME VIETNAMESE WERE KILLED AMD li KHHAIH UHftCCOUH'i'liU "i'UH lUt WIIUH HiHU AimECir BY CHINA), VIETNAM HAS BEEN PRESSING CHINA FOR TALKS ON THE ISSUE. IT ALSO CLAIMS THAT CHINA HAS REFUSED TO FACILITATE

"HUMNITAPIAN

ACTIVITIES IN THE AREA. VIETNAM HAD MADE NUMEROUS RESTATEMENTS OF ITS CLAIMED LEGAL BASIS TO THE SPRATLEYS, AT THE SAME TIME CONTRASTING ITS PAST DISCUSSIONS OF THE ISSUE WITH THE

HtO CHINA'S REJECTION OF TALKS. VIETNAM HAS SOUGHT UN AND INTERNATIONAL RED CROSS SUPPORT FOR ELEMENTS OF ITS POSITION. IT EMPHASIZES ITS CLAIMS THAT CHINA IS DELIBERATELY EXPANDING ITS NAVAL ACTIVITY AND TERRITORIAL HOLDINGS IN THE AREA. IT OBJECTS TO NEW CHINESE LEGISLATIVE MEASURES CLAIMING TO INCLUDE THE SPRATLEYS IN CHINESE TERRITORY.

12. "ON KAMPUCHEA, VIETNAM'S ONLY SIGNIFICANT INVOLVEMENT IN RECENT WEEKS HAS BEEN ITS PARTICIPATION IN THE MEETING OF THE DEPUTY FOREIGN MINISTERS OF THE INDO-CHINESE COUNTRIES, PLUS THE SOVIET UNION, HELD IN PINCH FENH ON ND ARCH. THIS REAFFIRMED SUPPORT FOR TKE DIALOGUE BETWEEN PRK PRIME MINISTER HUN SEN AND CGDK PRESIDENT PRINCE SIHANOUK AT THE SAME TIKE, IT REAFFIRMED ALL FOUR COUNTRIES' SUPPORT FOR THE

PRK GOVERNMENT. VIETNAM'S POSITION IN DISCUSSIONSHAS

REMAINED THAT THE PROCESS OF INTERNAL KAMPUCHEAN RECOWJIXTATION SHOULO PROCEED FURTHER, BEFORE VIETNAM WOULD AGREE TO ANY DIRECT CONTACT WJTH SIHANOUK.

"SOVIET DEPUTY FOREIGNIETNAM FOLLOWING THE PHNOM PENH MEETING.

NEW GROUND WAS

OR ON TRADE.

ISSUES INCLUDING SOVIET AID AND

URTHERETS. MIA REMAINS WERE HANDED TO. OFFICIALS IN HANOI, WITH INFORMATION ON OTHER MIA CASES. VIETNAM CLAIMS TO HAVE HANDED6 SETS"SINCE THE7 VESSEY MISSION, WITH INFORMATION ON A FURTHER ASES WHOSE REMAINS 'HAVE BEEN DETERMINED TO BE NO LONGER IN EXISTENCE' THE ASSOCIATED PROGRAM FOR HUMANITARIAN ASSISTANCE WITH DISABLED VIETNAMESE VETERANS WAS DISCUSSED AT MEETINGS IN HANOIARCHPRIL WITH. SPECIALIST TEAMS. THESE MEETINGS" ALSO DISCUSSED "PROBLEMS WITH ACCOUNTING FOR SERVICEMEN MISSING AT INACCESSIBLE SITES: THISISIT TO AN AIRCRAFT CRASH SITE NEAR HAIPHONG PRIL, THE VIETNAMESE FOREIGN MINISTRYTATEMENT.

EXCHANGE FOR THE SEARCH FOR MIA'S. THE VIETNAMESE STATEMENT

NWARD. N ACCORDANCE WITH VIETNAM'S HUMANITARIAN POLICY, IT NOTED THE AGREEMENT FOLLOWING THE7 VESSEY VISIT THAT 'BOTH SIDES MUST SOLVE EACH OTHERS HUMANITARIAN ISSUES', BUT CONTINUED THAT. SIDE HAD 'SOUGHT NOT TO MATERIALIZE' THIS AGREEMENT. IT CLAIMED THAT. CONGRESSMEN HAD EXPLORED POSSIBLE AMERICAN FOOD AID, AND VIETNAM HAD WELCOMED THIS IDEA: HOWEVER, THIS HAD NOT BEEN

SE^ET

LINKED BY VIETNAM TOSSUE THIS MATTEH, WHILE MINOR

IN. TTSELF', REFLECTS . SENSITIVITIES ON THE MIA ISSUE AND ON HUMANITARIAN AID TO VIETNAM. . CONGRESSIONAL AND OTHER VISITORS ARE PRONE TO ADVANCE THE SUGGESTION THAT. AID WOULDETTER ATMOSPHERE FOR PROGRESS ON THE MIA ISSUE. . AND VIETNAMESE GOVERNMENTS SHARE COMMON GROUND ON THE RATHER FINE POINT THAT THE ISSUES OF AID

SENSITIVITY TO ANY SUGGESTION THAT AID SHOULD BE CONDITIONAL ON

u.s. refugee coordinator in bangkok visited hanoi

discussions on-improved-movement-of-

amerasians to.

elegation from the defence and security committee of thevisited vietnam in earlyoint statement at the end of the visit spoke in general terms of increased economic and cultural cooperation. it also called for negotiation as the basis for resolving disputed territorial claims in the sppatleys.

"the 9th session of the vietnamese-kampuchean commission for economic, cultural, scientific and technical cooperation was held in phnom penhpril.

"the 9th session of the vietnam-romania inter-governmental commission for economic cooperation opened in hanoi on aprilhe romanian delegation was received onpril by vo van kiet.

rotocol on goods exchange and payments9 between vietnam and mongolia was signed in hanoipril.

ietnamese delegation led by vice-foreign minister tran quang co attended theescap conference in jakarta in early april. coilitary training institute and the centre for strategic and international studies.

"vietnamese leaders onpril extended congratulations to the new chinese leadership."

3.

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