Pentagon officials warn Moscow is 'still a key player we need to watch'
With its salt farms, deserted waterfront and vast sleepy harbour, Cam Ranh Bay on Vietnam's south central coast may seem more backwater than geo-strategic hot-spot.
But this week Russian President Vladimir Putin ensured Cam Ranh was once again a point of intrigue as America's 'new war' on terrorism challenged old regional assumptions.
In a stormy cost-cutting meeting in Moscow on Wednesday, Mr Putin told his top military brass to withdraw from their spy bases at Lourdes in Cuba and Cam Ranh in Vietnam - both glittering prizes of the Cold War.
In many respects it is a powerful signal as Mr Putin courts the West with his support for Mr Bush's drive against terrorism.
But in Washington, both Pentagon officials and military analysts urged caution. 'It is a symbol, but is it a sign that Russia is giving up and stopping spying on America and other powers?' asked Larry Wortzel of the conservative Heritage Foundation.
'I don't think so. I am sure they now have the potential to gather the same information from satellites and other remote sources. I think they will have the same regional interests.'
Pentagon officials said they would examine what other arrangements Moscow might make as it pulls out. 'We are getting friendlier but, make no mistake, they are still a player we need to watch,' said one.
Both bases had been used by Russia for global 'signals intelligence' - electronic espionage.
The closure of the Cuba station would allow Russia to save US$200 million (HK$1.5 billion) a year in rent; enough to buy sophisticated spying equipment.
Havana reacted angrily to the move, calling it 'a concession to the United States' and a 'great danger' for the security of Cuba.
It said it had not yet given its approval and important questions relating to the issue remained to be settled.
Cam Ranh, used by Japan in World War II and built up into a port and airport by the US military in the 1960s, is particularly strategic. A prized natural harbour, it had been Moscow's southernmost naval presence during the Cold War.
In recent years, it had been a shadow of its former self as the Russian military struggled to keep it alive as their once-proud fleet was turned to scrap. But the signals intelligence facility - off limits even to the Vietnamese - kept functioning and is still home to 500 to 700 Russian personnel, a living Cold War museum in the heart of Southeast Asia. In the markets of its neighbouring village, Russian naval greatcoats can be found next to plucked chickens.
Moscow had apparently been preparing to leave in 2004 when its lease runs out. That will now happen imminently, it seems.
Mr Putin may have renewed Moscow's 'special relationship' with Hanoi during his state visit this year but Vietnam made clear the Russians would have to pay rent to stay at Cam Ranh.
What happens next is being watched from Beijing to New Delhi. Vietnam - ever proud of its sovereignty - has said it would not sign any future agreements allowing foreign powers access.
But many navies - including the US, British and Indian forces - can be expected to eye future port calls that will drip with history and strategic significance.
It is far from clear, however, whether Vietnam's military will keep the harbour secure and effectively off limits as a base.
Nearby provincial government chiefs have long eyed the tourist potential of its beaches and huge airport. Nha Trang, one of Vietnam's biggest tourist draws, is just up the coast.
In June, Prime Minister Pham Van Khai seemed to back the civilian route. The bay, he said, would be used for Vietnam's 'social and economic development'.
