Cablegate: Food for Progress: Ambassador's Fund in Vietnam
This record is a partial extract of the original cable. The full text of the original cable is not available.
051012Z May 05
ACTION EAP-00
INFO LOG-00 NP-00 AID-00 AMAD-00 CIAE-00 COME-00 CTME-00
INL-00 DODE-00 ITCE-00 EB-00 EXME-00 UTED-00 TEDE-00
INR-00 NSAE-00 OMB-00 NIMA-00 OPIC-01 EPAU-00 STR-00
TRSE-00 EPAE-00 G-00 NFAT-00 SAS-00 /001W
------------------E9C382 051040Z /38
FM AMEMBASSY HANOI
TO SECSTATE WASHDC 7536
DEPT OF AGRICULTURE WASHDC
INFO AMCONSUL HO CHI MINH CITY
UNCLAS HANOI 001050
SIPDIS
STATE FOR EAP/BCLTV
USDA FOR FAS
E.O. 12958: N/A
TAGS: EAID EAGR VM
SUBJECT: FOOD FOR PROGRESS: AMBASSADOR'S FUND IN VIETNAM
1. Summary: The Foreign Agricultural Service (FAS) of the
U.S. Department of Agriculture (USDA) selected Vietnam as a
recipient of a commodity donation program three times, in
FY2000, FY2002 and FY2004. Each time, FAS and the Ministry
of Finance (MOF) agreed to set aside a small portion of the
proceeds from sales of the donated commodities for a fund,
called the Ambassador's Fund, to be used for smaller scale
humanitarian and/or developmental projects selected by the
Ambassador. Once the Ambassador identified the projects,
MOF approved them and disbursed the funds. The Ambassador's
Fund has enabled the Vietnam Mission to support a variety of
deserving humanitarian projects, including health clinics,
orphanages, and skills training for disadvantaged youth.
According to FAS, Vietnam will no longer receive food aid
under the Food for Progress program, however, because the
country's food gap has decreased. The Mission will
certainly miss the opportunity to contribute directly to
such a variety of worthy causes. End Summary.
2. FAS and MOF agreed three times to set aside USD 200,000
from the government-to-government PL-480 Title I-funded Food
for Progress Donations for use as the Ambassador's Fund. As
a government-to-government exchange of foreign aid, once the
commodities are sold in Vietnam, the proceeds become part of
the GVN budget and are subject to its regulations on
accounting and disbursement. For this reason, every project
identified by the Ambassador must either be run by a
Vietnamese organization or have a Vietnamese counterpart.
3. In 2001, Ambassador Peterson funded a health clinic, an
orphanage, an elementary school library/laboratory and
Children of Vietnam, a U.S.-based non-governmental
organization working to improve the nutrition, education,
healthcare and residences of disadvantaged and disabled
children. He also arranged for USD 20,000 from the Fund to
provide assistance, anonymously through the Vietnam Red
Cross, to the family members of Vietnamese victims of the
April 7, 2001 Quang Binh helicopter crash which also killed
seven Americans, members of the Joint Task Force-Full
Accounting team.
4. In 2003, Ambassador Burghardt identified eight projects
for funding, with various goals including school
construction, endangered wildlife conservation, a water and
sanitation program, an orthopedics/rehabilitation center and
an orphanage for girls run by a Catholic nun.
5. In 2004, Ambassador Burghardt identified eleven
projects, which Ambassador Marine reaffirmed and submitted
to MOF. These projects include wildlife conservation,
resource management, sustainable tourism/environment, skills
training for disadvantaged youth, cultural heritage
conservation, and health care. To date the MOF has not
issued final approval for the FY04 proposals, but we expect
approval will be granted. MOF delayed approval and
disbursement of funds because it needed to repeat the
auction for 14,000 out of the original 24,000 metric ton
wheat donation. The original buyer did not have enough
money to pay for the entire wheat shipment. This led to a
delay in disbursing funds to the many GOV agencies that were
awarded projects and funding under the FY 2004 food aid
program, but now that the second auction has taken place,
there should be progress soon.
6. The projects sponsored by the Ambassadors since 2000
have made a difference in the lives of countless people
across Vietnam and have engendered goodwill among
international and Vietnamese non-governmental organizations
and the governmental offices that carried out the funded
projects. According to FAS, Vietnam has reduced its food
gap to such as extent that it will no longer qualify for the
Food for Progress Program. Although the news that Vietnam's
need for food aid has diminished is encouraging, the Vietnam
Mission will certainly miss the opportunity to contribute
directly to such a variety of worthy causes.
MARINE
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