EMBASSY MINSK WEEKLY REPORT - July 20, 2005

UNCLAS SECTION 01 OF 04 MINSK 000826

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PHUM ECON BO
SUBJECT: EMBASSY MINSK WEEKLY REPORT - July 20, 2005



1. The following are brief items of interest compiled
by Embassy Minsk over the past week.


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Political Developments
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2. Students to Serve State

On July 19, the Gomel Regional Soviet adopted a 2005-
2007 program to engage youths in ideology, sports, arts,
tourism and ecology during their summer vacations. The
plan would support student participation in patriotic
education, regional ideological contests among
enterprises, and decoration of schools with national
symbols. Teams will landscape school areas, renovate
buildings and repair WWII graves.


3. No Nuke Dump

On July 14, the Ministry of Natural Resources and
Environmental Protection expressed its opposition to the
construction of a nuclear waste burial ground in
Lithuania near the Belarusian border. Belarus fears the
site would become a nuclear waste dump for other
European countries and insists that Lithuania's
neighbors be included in ensuring a proper monitoring
system. Lithuania is equally concerned about Belarusian
plans to build a hydroelectric station on the River
Neman.

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Human Rights
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4. Professor Expelled

On July 13, the Citizenship and Migration Office (CMO)
notified Terry Boesch, an American citizen living in
Belarus who had been giving lectures at Belarusian State
University, that he had to leave Belarus by July 15,
when his visa expired. Boesch's earlier attempts to
renew his visa were denied. With US Embassy assistance,
Boesch convinced authorities to give him until July 19
to pack and retrieve his passport from the CMO. Boesch
claimed in press interviews he did not know the reasons
for his expulsion, as he claimed he avoided contact with
politics, opposition parties and even the US Embassy
during his time in Belarus. A year ago in an interview
with Belarusian state press, Boesch called USG policy
toward Belarus "destructive". Apparently this anti-USG
stance wasn't enough to keep him in the regime's good
graces.


5. Activists Fined

On July 18, authorities fined United Civic Party (UCP)
activists Arkadz Korkhaw and Vasil Chitayev USD 240 each
for organizing an unauthorized meeting in a private
house in Zalesse, Gomel region. The activists intended
to nominate delegates to the National Congress until
police officers disrupted the meeting. In the Brest
region, Yury Hubarevich of the Belarusian People's Front
and Dzmitry Tratstsyak of Belaazyorsk were fined USD 60
each following their July 9 detainment for visiting a
village in a border area without proper permission.
The activists were attending a regional conference in
Damachava, Brest district to nominate delegates to the
Congress.


6. Fined Newspaper was Right

On July 20, newspapers announced that former deputy
chairman of the Belarusian Artistic Gymnastics
Association (BGA) Andrei Imanali would stand trial in
Russia for abduction charges. Russian law enforcement
agencies have been looking for Imanali since 2001 in
connection with his activities as head of a criminal
gang. Known in criminal circles as "Semi-Beast",
Imanali was hiding from prosecution in Belarus where he
was elected as deputy head of the BGA in 2002. In
January, Belarusian Finance Minister and head of the BGA
Nikolai Korbut won USD 18,430 in a libel suit against
newspaper Pressbol for publishing an article about
Imanali's involvement in organized crime. The Minister
claimed that the front-page headline, "Belarusian
finance minister's deputy wanted by Interpol over
involvement in organized criminal group," defamed his
name and organization. Court officials recently seized
property from the Pressbol owner's home in order to pay

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the fine.


7. Activists Harassed

On July 16, police detained UCP leader Anatoli Lebedko,
activist Igor Shinkarik, and Belarusian Party of
Communists leader Sergei Kalyakin for organizing an
unauthorized meeting following a conference to choose
Congress delegates in Baranovichi, Brest Region.
According to Lebedko, he and Kalyakin left the police
station in protest and were surprised that no one chased
after them. Shinkarik was released after three hours.


8. Second Chance for Church

On July 18, the Minsk City Court suspended a decision to
liquidate the only branch of the Belarusian Evangelical
Church (BEC) in the country for two months. However,
the church must use that time to find new premises and
register. The BEC has existed in Belarus since 1992,
with its office in a private apartment. National
legislation banning religious organizations from being
based in residential housing took effect in 1999
(similar bans exist for political parties and NGOs).
Minsk city authorities issued two or three warnings a
year to BEC for lack of a valid legal address. In May,
authorities asked the court to liquidate the BEC for
failure to acquire a legal address. Pastor Ernest
Sabilo, whose apartment is listed as the church's
office, thinks the GOB is trying to close his church
because he conducts services in Belarusian. Sabilo
remarked the court officials were surprisingly
sympathetic and helpful to his church.


9. Authorities Cancel Venue

On July 18, the German-Belarusian Nadezhda Center in
Vilejka region refused to accommodate a July 19-28
Summer Human Rights Camp sponsored by the Foundation for
Legal Technologies (and funded by an embassy Democracy
Commission grant). The Foundation had reserved tents
and classrooms at the Center for 48 law students,
experts, and trainers in March, but the Center revoked
the reservation at the last minute after government
inspectors allegedly found unsanitary conditions at the
site. At the camp, students were to study an
introductory course on human rights, international
mechanisms of human rights protection, access to
justice, access to legal aid and organization of legal
aid in Belarus. We understand from EU embassies that
the camp may take place in Prague, if money can be found
to transport the students there.


10. Independent Media Under Pressure

On July 15, the Ministry of Information issued a warning
to the independent newspaper Vitebskiy Kurjer. The MOI
accuses the paper of not reregistering after changing
its name, not including the full name of the founder on
the newspaper's imprint and not printing the publisher's
name under the title of the paper.

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Economics
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11. Economy Half Bad

According to a July 18 report, 46.6 percent of the 1,471
enterprises in the National Bank's May survey, including
53.4 percent of industrial companies, reported
unfavorable economic conditions for business in Belarus.
Overall, 48.9 percent noted good conditions, among them
60 percent of trade companies and eateries, 52.4 percent
of construction companies and 51.4 percent of transport
companies.


12. Profitable Customs

During a July 17 meeting with heads of Belarusian
diplomatic missions abroad, State Customs Committee
chairman Alexander Shpilevski informed that customs
earns USD 18 million daily for the state. In 2004, the
State Customs Committee was responsible for 36 percent
of state budget revenues, but earnings have since
increased by 13 times. However, Shpilevski admitted
corruption exists in the Customs Service since criminals
are "eager to work somewhere that handles so much
money." According to Shpilevski, criminal groups at one
time controlled entire customs checkpoints. Due to the
State Committee's ongoing battle with corruption, these

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posts have been closed. By 2010, the Customs Service
hopes to have newer technologies, such as electronic
declarations and signatures in place to deal with the
long lines at the borders. Shpilevski believes Belarus
could become a link between the EU's electronic
declaration system and the CIS' custom systems.


13. Targets Met

Prime Minister Sergei Sidorsky reported to Lukashenko on
July 13 that Belarus met 15 of 16 key economic targets
in January - June. Industrial and agricultural output
increased ten percent, exports - 19 percent, imports -
three percent and investment in fixed assets - 17
percent. Unprofitable companies fell from 60 to 24
percent, falling to nine percent in agriculture.
Inflation was 0.6 percent. Average monthly wages
increased 18 percent to USD 209, and Sidorsky predicted
it would be USD 250 by year-end.


14. Bank Takeover

On July 14, Belarus' largest bank, Belarusbank, took
over ailing MinskKompleksBank in accordance with
Lukashenko's June 7 decree. The decree orders
Belarusbank to finance all expenses of MinskKompleksBank
within the next five years and to repay the NBB USD 12
million which it borrowed to compensate individuals who
had deposits with the bankrupt BelBaltija bank.


15. State Sets, Liberalizes Prices

On July 14, the GOB set ceiling prices for agricultural
produce bought under government contracts. Grain prices
remain at 2004 levels, but malt barley prices are down
20 percent, and rapeseed prices - 6.6 percent. Sugar
beet prices increased 2.9 percent. The GOB also drafted
a price liberalization plan to reduce state control on
the price of welfare goods over the next five years.
The state will still control transport, communications
and power engineering prices.

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International Relations
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16. Cooperation with Syria

On July 18, Belarusian Ambassador to Syria Vladimir
Lopato-Zagorski expressed his hope for greater military
cooperation with Syria since the lack of international
sanctions has made the market very prospective. Lopato-
Zagorski noted how Minsk Aircraft Repairs Plant is
currently repairing two Tu-134 planes for Syrian
airlines and hopes to repair more in the future,
particularly the Yak-40 model. On its part, Syria is
considering financing the construction of a USD 25
million hotel complex in Belarus. Syria has already
founded a USD 1.5 million paper hygienic articles plant
in Zhodino and plans to establish a pharmaceutical joint
venture. Exports to Syria declined 4.1 percent on the
year from January to April, after a 140 percent rise in
2004, and imports declined by 4.5 percent after a 260
percent rise. Lopato-Zagorski also announced on July 19
that the Minsk Tractor Plant would begin exporting
tractors to Syria for the first time in 20 years.
According to Lopato-Zagorski, Belarus sent tractors to
Syria in the late 1990s, but they were then transited to
Iraq as part of the Oil for Food program. In 2005, 20
MTZ tractors were supplied to Syria and Belarus would
supply more if Syrian officials would accept more
powerful 70 hp engines rather than the 45-50 hps.


17. Welcome to Iran

On July 14, Iranian Ambassador to Belarus, Abdolhamid
Fekri, announced that Belarusian tourists can now
receive free seven-day tourist visas upon arrival at
Tehran, Esfahan, Tabriz or Mashad airports. Fekri
admitted Iran is not the most popular tourist
destination for Belarusians because of the heat and lack
of direct flights. However, he claimed that Iran's
diplomatic mission is trying to establish direct flights
from Minsk to Tehran along with a tour of Iran for
Belarusian journalists. Fekri mentioned how bilateral
relations between the two countries has been developing
"every day and every hour" after Iranian President
Mohammed Khatami's 2004 visit to Minsk. According to
the Turkmen ambassador, the Iranian embassy recently
bought a large tract of land outside of Minsk,
reportedly to build residences for its staff.

MINSK 00000826 004 OF 004




18. Plane Maintenance in Bahrain

The State Aviation Committee announced on July 19 its
plans to open an aircraft maintenance center in Bahrain.
The center will service IL-76 cargo planes of Belarusian
state-run company Transaviaexport. These planes fly to
the Middle East, including Afghanistan and Pakistan.

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Anti-US
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19. US Surrounding Russia

On July 18, the state-owned daily Sovetskaya Belarussiya
reprinted an article from the German paper Junge Welt
about revolution in Belarus. The article alleged that
the topic of the American Enterprise Institute's
November 14, 2002 conference was "overthrowing the
President of Belarus as the last dictator of Europe".
He lists Radio Liberty, Freedom House, the National
Endowment for Democracy and the US Embassy in Belarus as
organizers of the event. The paper accused former head
of the OSCE mission in Belarus Hans-George Wieck of
being "the most active propagandist aiming to overthrow
the regime." Sovetskaya Belarussiya added that the
Belarus Democracy Act initially caused a large stir, but
was later softened, as the US did not want to lose
Russia's friendship.


20. USA to Destroy Slavs

According to a July 13 article in the pro-government
newspaper Belorusskaya Niva, the West, particularly the
USA, wants to destroy the Slavic world in order to
subdue it. Author Oleg Stepanenko asserts that the West
deliberately tries to wipe out the Slavic people's "self-
respect" in order to "stir them up against each other."
The West sees Belarus as one of the few states left that
resists US expansion. Stepanenko opined that Slavic
states should form their own Slavic Europe to fight
modern neo-fascism. This article continues the theme of
the "World Slavic Conference" hosted in Minsk in early
July at which numerous speakers from the communist camp
in Slavic countries railed against US imperialism and
derided their own countries "subjugation" to the
American empire, while calling Belarus and Russia the
only free countries in Slavdom.

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Miscellaneous
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21. Suicides Increasing

Police reported five suicides in Minsk on July 18.
Prosecutors are investigating the four adult and one
juvenile deaths. Psychiatrists reported a steady
increase of suicides in recent years among both
urbanites and rural residents. Drug addicts and
alcoholics account for many of the deaths, making
suicide the fourth most widespread cause of death, after
cardiovascular diseases, neoplasms and respiratory
diseases. Belarus has the fifth highest suicide rate in
the CIS after Lithuania, Russia, Latvia and Estonia.


22. Public Files Complaints

Constitutional Court Chairman Grigory Vasilevich
announced to reporters on July 15 that since January,
the Court has received 2,500 complaints about the
constitutionality of the country's regulations,
particularly housing, labor, administrative and criminal
laws. In response, the Court suggested the government
make it easier for individuals to recover funds from
investment construction companies and extend monthly
utility bill deadlines until after payday. The GOB also
abolished a charge on temporary stays for foreigners in
Minsk.


KROL