LIMITED OFFICIAL USE
PAGE 01 VIENTI 00322 070551Z
22
ACTION EA-09
INFO OCT-01 EUR-12 ISO-00 SP-02 AID-05 EB-07 NSC-05
CIEP-01 TRSE-00 SS-15 STR-04 OMB-01 CEA-01 CIAE-00
COME-00 FRB-03 INR-07 NSAE-00 USIA-06 XMB-02 OPIC-03
ABF-01 FS-01 /086 W
--------------------- 100985
R 070426Z FEB 76
FM AMEMBASSY VIENTIANE
TO SECSTATE WASHDC 6050
INFO AMEMBASSY BANGKOK
AMEMBASSY PARIS
AMCONSUL HONG KONG
CINCPAC
LIMITED OFFICIAL USE VIENTIANE 0322
DEPT ALSO PASS AID
CINCPAC FOR POLAD
E.O. 11652: N/A
TAGS: PFOR, EFIN, EAID, LA
SUBJECT: PROBLEMS CITED BY OFFICIALS OF NATIONAL BANK OF LAOS
REF: VIENTIANE 0314 (060825Z FEB 76)
1. FOLLOWING IS ELABORATION OF PROBLEMS PRESENTED TO
EMBASSY DELEGATION DURING CALL ON PRESIDENT OF NATIONAL
BANK OF LAOS FEBRUARY 6 (REFTEL):
2. FIRST PROBLEM HAS TO DO WITH "ESCROW ACCOUNT
NUMBER 3" SHICH NBL MAINTAINS AT CHASE-MANHATTAN BANK
IN NEW YORK. THIS ACCOUNT WAS APPARENTLY ESTABLISHED
AROUND 1970 (NBL OFFICIALS WERE BAGUE AS TO DATE) AND
HAS CURRENT BALANCE OF ABOUT US$78,000. IT APPARENTLY
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 02 VIENTI 00322 070551Z
WAS USED FOR FUNDING OF IMPORTS. NBL OFFICIALS SEEMED
TO THINK ACCOUNT WAS NOT BLOCKED BUT COULD OFFER NO
SPECIFICS. WE TOLD THEM THAT TO BEST OF OUR KNOWLEDGE
USG HAD NOT FROZEN ANY LAO FUNDS, OTHER THAN ACCOUNT
OF LAO EMBASSY PHNOM PENH WITH FRENCH-AMERICAN BANK-
ING CORPORATION OF NEW YORK WHICH WAS PROMPTLY UNFROZEN
LAST JUNE AT FOREIGN MINISTRY'S REQUEST. NBL OFFICIALS
SAID THEY HAD SENT A TELEX MESSAGE TO CHASE-MANHATTAN
APPROXIMATELY ONE MONTH AGO BUT HAD RECEIVED NO REPLY.
(COMMENT: WE POINTED OUT THAT THE CHASE WAS A LARGE
INSTITUTION WITH MANY DEPARTMENTS AND MANY ACCOUNTS,
BUT NBL OFFICIALS HAD NO FURTHER SPECIFICS AT HAND.
WE RECOMMEND THAT, IN ORDER TO OBLIGE THEM AT WHAT
MAY BE IMPORTANT JUNCTURE IN OUR FINANCIAL DEALINGS,
DEPT QUERY CHASE ON BASIS LIMITED INFORMATION SET
FORTH ABOVE. WE WILL MEANWHILE TRY TO OBTAIN FURTHER
DETAILS.)
3. SECOND PROBLEM, WHICH NBL PRESIDENT SAID HAD BEEN
DISCOVERED BY "THE ACCOUNTANTS," CONCERNS A KIP ACCOUNT
IN NBL ITSELF (NUMBER 5002) TO WHICH RLG EVIDENTLY
DEPOSITED COUNTERPART FOR SPECIAL LETTER OF CREDIT
OPENED BY OR THROUGH USAID UNDER THE FORMER U.S.
IMPORT PROGRAM (USIP). AT THE OUTSET THE RLG EVIDENTLY
DEPOSITED MORE THAN 200 MILLION KIP, ALL OF WHICH IS
ACCOUNTED FOR EXCEPT THE SUM OF KIP 30,597,459.
ACCOUNT NUMBER 5002 IS THEREFORE CONSIDERED TO STAND
IN "NEGATIVE BALANCE." IT APPEARS THAT NBL SIMPLY
LACKS INFORMATION AS TO THE ACCOUNTING FOR OR DIS-
POSITION OF THIS AMOUNT, NOT THAT ANY RESTITUTION
OF IT IS BEING SOUGHT. (COMMENT: ASSUME IT WILL
BE NECESSARY IN THIS CASE TO CONSULT PERSONS FORMERLY
ASSIGNED TO USAID/LAOS WHO ARE FAMILIAR WITH USIP
AND COUNTERPART-FUND OPERATIONS.)
4. ACTION REQUESTED: EARLY RESPONSE ON BOTH OF THESE
MATTERS, EVEN IF USG'S ONLY IMMEDIATE CONTRIBUTION
CAN BE FURTHER DEFINITION OF ANY PROBLEMS THAT MAY
EXIST. WHILE WE FEEL NO PARTICULAR OBLIGATION TO
LAO GOVERNMENT AS A WHOLE-- WHICH AFTER ALL WRONG-
FULLY FROZE OUR ACCOUNTS FOR ALMOST FIVE MONTHS--
LIMITED OFFICIAL USE
LIMITED OFFICIAL USE
PAGE 03 VIENTI 00322 070551Z
WE ARE IMPRESSED WITH APPARENT REASONABLENESS AND
RELATIVE PRAGMATISM OF NEW NBL PRESIDENT AND WOULD
LIKE TO RECIPROCATE.
CORCORAN
LIMITED OFFICIAL USE
NNN