From: AIIPOWMIAI@aol.com (Bob Necci)
Subject: POW: Jackson-Vanik
Date: 1998/05/05
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Advocacy And Intelligence Index
For Prisoners Of War/Missing In Action, Inc. ( AIIPOWMIAI )
Bob Necci and Andi Wolos

THE POW/MIA E-MAIL NETWORK (c)
aiiapr28.98a

April 22, 1998

The Jackson-Vanik Amendment: 
Normalization of Commercial Relations with Vietnam 
and 
The POW/MIA Road Map
By Bob Necci

UNDERSTANDING JACKSON-VANIK

The Jackson-Vanik amendment (Section 402, Title IV, Trade Act 
of 1974; 19 U.S.C. 2432) is the pivotal element of the normalization 
of U.S. commercial relations with Vietnam. This amendment allows for 
emerging market economies to be eligible for most-favored-nation 
status in trade with the United States. It also allows access to 
federal financial facilities based on compliance with free-
emigration requirements as imposed by Jackson-Vanik (J-V).

In its essence, J-V prohibits the restoration of certain 
commercial relations with countries that engage in practices 
enjoining or severely restricting free emigration of its citizens 
and precisely identifies such practices as: (1) abnegating from its 
citizens the right or opportunity to emigrate, (2) imposing more 
than a nominal tax on emigration or documents required for 
emigration, (3) imposing more than a nominal tax or charge on a 
citizen as a consequence of desire to emigrate to the country of 
choice. 

The President by Executive action has two options available to 
him. He may report to Congress, semiannually, that the listed 
country no longer engages in restricted practices or he may 
determine that a waiver of prohibition will substantially promote 
the objectives of J-V based on having received the country's 
assurances that its emigration polices will lead to substantial 
progress in implementing those objectives. This is an annually 
renewable waiver. 

These waivers under Presidential authority must be extended 
annually or they expire on July 3rd. The extension is automatic if 
the President renews it by June 3rd. The Congress may disapprove it 
in its entirety or with respect to individual countries by a joint 
resolution of Congress adopted by August 30th. 

There also exists the requirement of a bilateral trade 
agreement which must be approved and implemented by a joint 
resolution of Congress before the applicability of restoration of 
relations is concluded.

UNITED STATES-VIETNAM RELATIONS SINCE 1975

Essentially, U.S.-Vietnam diplomatic and economic relations 
remained paralyzed for over a decade beginning in 1975 with the 
communist victory over Saigon in April 1975 wherein the United 
States ended diplomatic relations with Saigon and subjected all 
relations with South Vietnam to the same restrictions that already 
applied to North Vietnam. The principal restrictions included a 
nearly total embargo on all commercial and financial transactions 
with Vietnam, and a blocking of all Vietnamese assets in the United 
States. 

Following the signing of the Paris Peace Accords, the Hanoi 
government called upon the U.S. to begin discussions on establishing 
diplomatic relations and demanded the U.S. fulfill pledged U.S. 
postwar aid for Vietnam's reconstruction. These demands were 
rejected by the Ford Administration who would not proceed without a 
full accounting of American POW/MIAs and a clearer vision of 
Vietnam's long-range intentions in Southeast Asia. 

The Carter Administration began policy initiatives to improve 
relations, but these efforts were frustrated by growing evidence 
that the Vietnamese government was deliberately expelling hundred of 
thousands of its citizens and was making military preparation for 
the invasion of Cambodia. In July 1977, the U.S. proposed that 
diplomatic relations be quickly established. This was flatly 
rejected by the Vietnamese, nor would they provide information on 
U.S. POW/MIAs until the U.S. would provide several billion dollars 
in postwar reconstructive aid. They later modified this position and 
furnished limited information on MIAs. Obviously, U.S. aid was not 
forthcoming. 

DEVELOPMENTS DURING THE REAGAN AND BUSH ADMINISTRATIONS

The Reagan Administration opposed normal relations with Hanoi 
until there was a verified withdrawal of Vietnamese forces from 
Cambodia and later modified to include a comprehensive settlement. 
The Administration also noted that normalizing relations would 
remain difficult until Vietnam cooperated in obtaining the fullest 
possible accounting of U.S. personnel listed as POW/MIA. 

Following the Presidential delegation in 1987, Vietnam began 
returning hundreds of sets of remains. Controversy over U.S. 
government handling of the POW/MIA issue prompted the Senate to 
initiate a special committee to investigative this question. In 
1991, the U.S. welcomed Vietnam's willingness to host a U.S. office 
in Hanoi to handle POW/MIA affairs and later eased travel 
restrictions on Vietnamese diplomats entering the U.S. 

In April 1991, the U.S. laid out a detailed "road map" for 
normalization with Vietnam. Phase I began with the October 1991 
signing of peace agreement on Cambodia.

Vietnam is to: Sign the Cambodian peace accord and help to 
persuade the Phnom Penh regime to sign Take needed steps to resolve 
quickly "last known alive" POW Discrepancy cases, live sighting 
reports, and return American remains with an eye toward settling the 
POW/MIA cases in Indochina in 2 years Allow those Vietnamese 
detainees previously affiliated with the U.S. to exit by means of 
the Orderly Departure Program 

United States is to: Lift 25-mile travel ban on Vietnamese 
diplomats in New York Begin bilateral talks on normalizing 
diplomatic relations Permit U.S. organized travel to Vietnam 
Liberalize U.S. economic relations with Cambodia State 
publicly U.S. official concerns regarding genocide in Cambodia 

Phase II begins after Phase I and once U.N. peacekeepers are 
well established in Cambodia.

Vietnam is to: Continue to support Paris agreement and help 
persuade Phnom Penh to continue to support it Continue progress 
on POW/MIA issues begun in Phase I

United States is to: Send high-level delegation to Hanoi for 
talks on normalization of relations Allow U.S. 
telecommunications links with Vietnam Allow signing of U.S. 
contracts with Vietnam Allow U.S. commercial transactions meeting 
basic human needs in Vietnam Work with others to help Vietnam 
eliminate arrears to international financial institutions Allow 
U.S. firms to open commercial offices in Vietnam Lift all 
restrictions on U.S. non-governmental organization projects in 
Vietnam 

Phase III begins once U.N. procedures and Cambodian settlement 
process are well in place.

Vietnam is to: Continue its support and encourage Phnom Penh's 
support of Cambodia peace agreement Withdraw all Vietnamese 
forces/military advisers from Cambodia Resolve last known alive 
discrepancy cases and repatriate U.S. remains readily available to 
Vietnam

United States is to: Open diplomatic liaison office in Hanoi and 
invite Vietnam to establish one in Washington Fully lift trade 
embargo Support International Financial Institutions aid meeting 
basic human needs in Vietnam

Phase IV begins once a U.N.-certified free election takes place 
in Cambodia; a Cambodian National Assembly is formed and is writing 
a new constitution; demobilization of factional forces specified in 
the 1991 accord has occurred; and the objectives of the U.S.-Vietnam 
2-year effort to resolve POW/MIA issues have been achieved. 

Vietnam is to: [No additional requirements at this stage.]

United States is to: Establish ambassadorial-diplomatic 
relations with Vietnam Consider granting most-favored-nation 
status to Vietnamese trade Favorably consider International 
Financial Institutions assistance for non- basic human needs 
projects in Vietnam

DEVELOPMENTS DURING THE CLINTON ADMINISTRATION

The Clinton Administration has moved incrementally to establish 
more normal U.S. economic, consular, diplomatic and other official 
relations with Vietnam. Chronology:

July 2, 1993 - Clinton announces U.S. no longer opposes 
international financial institution aid to Vietnam ^ September 13, 
1993 - Clinton renews authority to maintain U.S. trade embargo on 
Vietnam December 15, 1993 - Clinton eases embargo by allowing U.S. 
companies to bid on development projects January 27, 1994 - 
Senate votes urging lifting of trade embargo February 3, 1994 - 
Trade Embargo lifted May 26, 1994 - U.S. and Vietnam announce 
that official liaison offices would be established August 10, 
1994 - Congress passed H.R. 4425, which lifted legal restrictions on 
aid to Vietnam January 28, 1995 - Bilateral diplomatic and 
private property claims settled February 1,1995 - Vietnam opens 
consular level liaison office in Washington February 3, 1995 - 
United States opens consular level liaison office in Hanoi March 9, 
1995 - Treasury Department unblocks accounts in which Vietnam or its 
nationals had an interest July 11, 1995 - Clinton announces his 
decision to establish ambassadorial level relations with Vietnam 
August 6, 1995 - Secretary of State Christopher opens U.S. 
Embassy in Vietnam May 23, 1996 - Clinton nominates Peterson as 
ambassador to Vietnam May 30, 1996 - Clinton certifies the 
Vietnam government was fully cooperating with the United States 
January 1, 1997 - The Clinton Administration formally nominates 
Peterson as ambassador to Vietnam February 13, 1997 - Peterson's 
confirmation hearing March 4, 1997 - Peterson's nomination 
passes Senate Foreign Relations Committee April 10, 1997 - 
Peterson confirmed as U.S. Ambassador to Vietnam May 14, 1997 - 
Peterson presents ambassadorial credentials to Vice President Nguyen 
Thi Binh May 21, 1997 - Le Van Bang presents ambassadorial 
credentials to President Clinton March 4, 1998 - Clinton certifies 
The Jackson-Vanik amendment (Section 402, Title IV, Trade Act 
of 1974; 19 Vietnam is "fully cooperating in good faith" ^ March 
11, 1998 - Clinton signs waiver granting exemption of the Jackson- 
Vanik amendment for Vietnam

THE CERTIFICATION

On March 4, 1998, President Clinton certified that Vietnam is 
"fully cooperating in good faith." This certification was the last 
remaining step to the Executive option of granting the J-V exemption 
waiver for Vietnam.

We believe this certification was premature. 

On February 25, 1998, in a letter responding to concerns on 
Vietnam's cooperation on the POW/MIA issue and the J-V exemption 
waiver, President Clinton wrote: " . . . the intelligence community 
is preparing a National Intelligence Estimate regarding the extent 
of Vietnam's disclosure of information on our missing service 
personnel. The results of that estimate will be taken into account 
as we continue to advance our agenda with Vietnam on all issues, 
including emigration and human rights." 

Yet on March 4, 1998, in a Memorandum For The Secretary Of 
State, President Clinton stated: "I hereby determine, based on all 
information available to the United States Government, that the 
Government of the Socialist Republic of Vietnam is fully cooperating 
in good faith with the United States . . ." 

The record is very clear. The President made his determination 
without benefit of the conclusions of the National Intelligence 
Estimate (NIE) which was ongoing, an Estimate he stated would ". . . 
be taken into account . . ." 

This presidential action is very troubling.

The President makes a certification and determination on 
Vietnamese cooperation, the very scope and purpose for which the NIE 
was initiated, and yet does not wait for the final report of this 
Estimate (with a tentative completion date of March 30, 1998.) 

If the President had received a preliminary report on the NIE, 
which bolstered his resolve, surely he would have publicly used it 
to support his determination and certification. If the NIE does not 
support the President's action, pre-empting its release with his 
"fast-track" agenda on increased normalization with Vietnam lessens 
the impact of the NIE conclusions.

WHERE DO WE GO FROM HERE?

If the findings of the NIE conclude that Vietnam is indeed 
"fully cooperating in good faith," then continued opposition to the 
President's action would be without merit. If the President's 
actions are not supported by the NIE, then our only alternative is 
to press our case with Congress. 

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associated in any capacity with any United States Government agency 
or entity, nor with any non-governmental organization. 

Advocacy And Intelligence Index 
For Prisoners Of War/Missing In Action, Inc.
1220 Locust Avenue, Bohemia, Long Island, New York 11716-2169 USA
Voice: (1-516) 567-9057
Fax: (1-516) 244-7097
E-mail: AIIPOWMIAI@aol.com (Bob Necci)
andi@earthlink.net (Andi Wolos)
Website: http://www.aiipowmia.com/

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