Openswan connection fails with a "NO_PROPOSAL_CHOSEN" error in RHEL 6

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Issue

When configuring an IPsec tunnel with Openswan, the tunnel does not finish negotiation and I see errors such as "NO_PROPOSAL_CHOSEN" or "No acceptable response to our first Quick Mode message: perhaps peer likes no proposal"

Environment

Red Hat Enterprise Linux 5/6
openswan-2.6.32*

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