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Economic Reform Oriented Training Project
24. We have committed £1 million to an economic reform oriented
training project. This will involve institutional development
through training, seminars and consultancies for key Vietnamese
organisations to improve their capability in areas such as finance, banking, enterprise restructuring and environmental economics. This project, which we expect to ge underway in the
next few months, will focus on selected members of the next
generation of economic decision makers.
Support Group
25. The US continues to impose a trade embargo on Vietnam and
to block normalisation of relations with
with the International
Financial Institutions (IFIs). The US embargo is an enormous
brake on the Vietnamese economy. We, and practically all the
other leading members of the IFIs, have made clear our view that
normal relations between the IFIs and Vietnam should be restored
as soon as possible. Given the domestic sensitivity of MIA/POW
issues, the US is unlikely to agree to this until after the US
presidential election. The French have convened an unofficial support group to clear Vietnam's $140 million arrears to the IMF.
Normalisation of relations with the IFIs seems to be the key to
Vietnam's future economic success. We are prepared to make
modest contribution (amount yet to be decided) to a future IMF programme once the arrears are cleared. We also expect ECGD to
put Vietnam on cover once arrears are cleared.
Issues for discussion
26. HMG hope that the Hong Kong Government will make a financial contribution to facilitate reintegration. The Vietnamese appear
to attach considerable importance to this, and it would improve
the chances of ORP II being successful.
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