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IMF
4. WE TAXED THACH ON WHY VIETNAM WOULD NOT REPAY HER OUTSTANDING DERTS IN GENERAL AND PARTICULARLY TO THE IMF. VIETNAM FOUND
IT HARD TO OBTAIN COMMERCIAL CREDIT BECAUSE OF NON REPAYMENT TO WESTERN BANKS, GOVERNMENTS AND THE IMF. THACH RESPONDED PREDICTABLY : DEBT IS SMALL, VIETNAM IS POOR. HE KNEW THE POSITION DAMAGED VIETNAMESE REPUTATION BUT MUCH OF THE PROBLEM WAS POLITICAL. WE POINTED OUT THAT OTHER COUNTRIES EQUALLY POOR WITH WORSE INFLATION AT LEAST MET THEIR INTEREST PAYMENTS BUT COULD ELICIT NO INDICATION THAT THE VIETNAMESE ARE PREPARED TO PAY ANYTHING. THACH ALSO CLAIMED THAT THE IMF DEMANDED ECONOMIC MEASURES BE INTRODUCED WHICH VIETNAM COULD NOT PERFORM AND RESPONDED ANGRILY TO SUGGESTIONS THAT VIETNAM HAD ALREADY DONE QOME OF THIS EG REDUCTION OF SUBSIDIES, CURRENCY REFORM AND
DEVALUATION. THE MEASURES INDTRODUCED LAST YEAR WERE VIETNAM'S OWN: THACH SAID IT WAS A COINCIDENCE ONLY THAT THE IMF HAD URGED THESE.
ODP
5. THACH REAFFIRMED THE VIETNAMESE COMMITMENT TO ODP AND SEEMED GENUINELY TAKEN ABACK WHEN ALL OF US BUT THE FRENCH (WHO OPERATE A DIFFERENT SYSTEM) COMPLAINED AT THE DECREASING RATE OF DEPAR- URES. HE SAID HE HAD NOT APPRECIATED THAT THERE WERE ANY DIFFERENCES BETWEEN US/FRENCH ODP AND THAT OF THE WEST EUROPEANS. HE UNDERTOOK TO LOOK INTO THIS. IN ANSWER TO A QUESTION ON VOLUNTARY REPARTRIATION THACH SAID IT WAS IMPOSSIBLE AT PRESENT (NOT EVEN ON A CASE BY CASE BASIS). PEOPLE COULD NOT BE ALLOWED TO LEAVE ILLEGALLY AND THEN COME BACK WHEN THEY FOUND THE GRASS WAS NOT GREENER SOMEWHERE ELSE. HE SAID MOST OF THOSE NOW LEAVING LEGALLY AND ILLEGALLY LEFT BECAUSE OF THE ECONOMIC PROBLEMS BESETTING THE COUNTRY.
ECONOMIC REFORMS
6. THACH SAID FRANKLY THAT VIETNAM HAD MADE MANY ERRORS IN ECONOMIC POLICY. THIS HAD LED TO THE REFORMS OF SUMMER 1985. ALTHOUGH THESE HAD NOT BEEN WELL IMPLEMENTED VIETNAM WAS
NOT DISCOURAGED. REFORM WOULD CONTINUE WITHOUT ANY DOUBT. |
NO ONE CAN NOW CHANGE THAT.'' THE RECENT MINISTERIAL RESHUFFLE WAS JUST ONE MORE SIGN.
7. THACH SAID PEOPLE RIGHTLY ASKED WHY THE COUNTRY WAS SO POOR. THEY HAD LOST CONFIDENCE IN THE GOVERNMENT. THEY DESERVED BETTER AND WOULD GET IT ONCE THE REFORMS BEGAN TO BEAR FRUIT. THE PROBLEM WAS THAT VIETNAM WAS SO FAR BEHIND HER NEIGHBOURS IN SO MANY WAYS: HER TRANSPORT AND COMMUNICATIONS WERE IN A BAD STATE, MANAGEMENT WAS POOR AND THE STATE SECTOR PRODUCTIVITY WAS LOW.
HOWEVER, THACH MAINTAINED, THERE WAS NO SERIOUS CRITICISM OF THE PARTY AS SUCH, THACH SAID THE INTENTION WAS TO ENCOURAGE THE PRIVATE SECTOR IN FUTURE AND ALLOW EXPERIENCE FROM THERE TO FLOW TO THE PUBLIC SECTOR. HE CONTRASTED 80 PERCENT OF CAPITAL INVESTMENT GOING TO THE LATTER (WHERE ONLY 30 PERCENT OF NATIONAL PRODUCTIVITY ORIGINATED) WITH THE FORMER (ONLY 10 PERCENT OF CAPITAL INVESTMENT WITH SOME 60 PERCENT OF PRODUCTIVITY: THE REMAINING 10 PERCENT CAPITAL INVESTMENT AND PRODUCTIVITY HE ATTRIBUTED TO THE JOINT STATE/PRIVATE ENTERPRISES). PRODUCTIVITY HAD TO BE STIMULATED AND THE CONFIDENCE OF THE PEOPLE IN THE GOVERNMENT HAD TO BE RESTORED.