From: mdo@socrates.umd.edu ("Mike T. Do")
Subject: [NEWS] Bush OKs contracts in Vietnam in tiny step toward regular trade
Newsgroups: soc.culture.vietnamese
Date: 15 Dec 92 23:31:24 GMT

BUSH OKs contracts in Vietnam in tiny step toward regular trade
>From Washington Times (12/15/92)
By Martin Sieff

    The Bush administration yesterday eased its economic squeeze on Vietnam,
opening the way for the resumption of full trade relations under the
incoming Clinton administration.
    Nearly 18 years after the end of the Vietnam War, the U.S. government is
permitting American companies to sign contracts to do business in Vietnam,
White House spokesman Marlin Fitzwater announced.
    He said the move was in response to Hanoi's cooperation with Washington
in investigating unresolved POW and MIA cases.
    It was also "in keeping with the established road map policy of a step-
by-step process for normalizing relations with Vietnam," Mr. Fitzwater said
in a statement.
    U.S. firms will also be permitted to have offices in Vietnam, hire
Vietnamese staff there and carry out business surveys in the country, the
spokeman said.
    "As further results in accounting for missing Americans are obtained, we
are prepared to consider additional road map steps of our own" toward
normalized relations, he said.
     However, the administration did not lift its trade embargo on Vietnam,
and administration sources said that no further steps in relaxing the embargo
were likely before President-elect Bill Clinton takes office on Jan. 20.
     The move appeared to be a compromise between feuding sections of the
administration.
     State Department officials have argued that the trade embargo on Vietnam
-imposed at the end of the Vietnam War in 1975 - should be lifted entirely.
The Department of Defense is opposed, arguing that Vietnam continues to drag
its feet on the POW-MIA issue.
     The National Security Council for a long time backed the Pentagon on the
issue, but recent softened its stance.
     Pressure has been growing on the Pentagon to ease its opposition.
Democratic senators concerned with the issue, led by John F. Kerry of
Massachusetts, chairman of the Senate Select Committee on MIA-POWs, believe
Vietnam should be rewarded for its cooperation in hunting for the remains of
missing servicemen.
     Administration analysts believe that Hanoi hoped to have the embargo
lifted before President-elect Bill Clinton took over.
     President Bush's special emissary for POW-MIA affairs, retired Gen. John
Vessey, also urged that embargo be eased.
    Yesterday's action was praised by John Carney, chairman of the Veterans
of Foreign Wars.  "It appears the Vietnamese have given U.S. investigators
increased access to ... war time documents and records that pertain to the
POW-MIA issue," he said.
    The next step in easing relations, according to the "road map," would be
for the United States to help Vietnam eliminate its arrears to the Inter-
national Monetary Fund and allow IMF and World Bank loans to Hanoi.
    U.S. businessmen are eager to have the embargo lifted so they can invest
in southern Vietnam's fast growing economy.
    Japan undermined the embargo last month by providing Vietnam with $380
million in aid.
    Japan and France have indicated they might pay Vietnam $140 million in
arrears to the IMF, making it eligible for loans if the United States stops
blocking Vietnam's applications.



Newsgroups: soc.culture.vietnamese