Identifier
Created
Classification
Origin
05MINSK859
2005-07-29 12:58:00
UNCLASSIFIED
Embassy Minsk
Cable title:  

EMBASSY MINSK WEEKLY REPORT - July 27, 2005

Tags:  PGOV PHUM ECON BO 
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RR RUEHCD RUEHFL RUEHLA RUEHMRE
DE RUEHSK #0859/01 2101258
ZNR UUUUU ZZH
R 291258Z JUL 05
FM AMEMBASSY MINSK
TO RUEHC/SECSTATE WASHDC 2707
INFO RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUFOADA/JAC MOLESWORTH RAF MOLESWORTH UK
UNCLAS SECTION 01 OF 04 MINSK 000859 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PHUM ECON BO
SUBJECT: EMBASSY MINSK WEEKLY REPORT - July 27, 2005

UNCLAS SECTION 01 OF 04 MINSK 000859

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: PGOV PHUM ECON BO
SUBJECT: EMBASSY MINSK WEEKLY REPORT - July 27, 2005


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


--------------
Political Developments
--------------


2. No Election Observation

On July 21, Secretary of the Central Elections
Commission Nikolai Lozovik stated the Belarus does not
want international observers at elections because they
base their conclusions on the outcome of the vote rather
than on the process. He referred to elections in the
Ukraine and Kyrgyzstan, claiming that observers changed
their stance two days after Bakiyev's election because
they disagreed with his policies. Lozovik expressed
puzzlement at Azerbaijan's agreement to allow the U.S.
to conduct exit polls in November parliamentary
elections, saying "it's only in a mouse trap that one
can find free cheese. If someone gives you aid, you
should think about the goals pursued by the sponsor".


3. Constitutional Elections.

On July 22, Secretary of the Central Elections
Commission Nikolai Lozovik announced that the
presidential election would take place no later than
July 19, 2006 in accordance with the constitution. The
actual date will be decided by April 19. Lozovik added
that turnout would be better in a summer or autumn
election.

--------------
Human Rights
--------------


4. New Social Democratic Leader, Maybe

During a July 25 meeting, the Social Democratic Party
confirmed former rector of Belarusian State University
Alexander Kozulin as the new party chairman. Former
party chairman Anatoli Levkovich will be first deputy.
The party finished voting before police evacuated the
building, citing an alleged bomb threat. Deputy
chairman of the party, Vladimir Nistyuk, fears that
authorities would not recognize Kozulin as party leader.
In this case, former leader Levkovich would continue as
formal chairman, but Kozulin would actually lead the
party.


5. Labor Union Gets Full Power

On July 20, a new Lukashenko decree gave the pro-
government Belarusian Trade Union Federation (BTUF)
power to conduct legal and technical inspections of
commercial entities even if there are no trade union
member employees on the staff. The decree allows the
BTUF to "provide additional protection of labor, social

and economic rights and interests of all working
Belarusians".


6. Property Seized

On July 19, the GOB seized USD 312 worth of property
from the home of sports newspaper editor Vladzimir
Berazhkov. Minsk Tsentralny district court fined
Berazhkov USD 4,650 earlier this year in response to a
libel suit against his Pressbol newspaper. He did not
have the sum, and police seized USD 149 worth of
property in March. [Note: as reported last week,
Berazhkov was convicted of libel, even though his
reporting was accurate.]


7. Youths Arrested

On July 21, police arrested eight youths protesting
Lukashenko's 11th year as president, his policies, and
the imprisonment of opposition politicians. The
demonstrators carried images of several jailed
politicians and held a banner reading "Freedom to
political prisoners". They also distributed
unregistered bulletins about the country's political
situation and the fate of the opposition.


8. Extended Detention

On July 26, the Prosecutor General's Office extended
opposition activist Sergei Skrebets' pre-trial detention
until August 27 to prevent him from "illegally

MINSK 00000859 002 OF 004


influencing people involved in the case." Skrebets is
now eating after his 40-day hunger strike and his health
condition is normal. Skrebets claims that the bribery
and embezzlement charges against him are politically
motivated.


9. Accusations Withdrawn

On July 22, Pervamayski district court threw out the
slander charges against opposition politician Andrei
Klimov. In April, Klimov was charged with slandering
Lukashenko is three books, but the judge ruled Klimov's
actions were not socially dangerous. In June, the court
sentenced Klimov to three years of corrective labor for
organizing a protest action in March, but Klimov remains
free on appeal.

--------------
Economics
--------------


10. Widespread Tax Crime

On July 26, the Tax Ministry reported that in H1 2005,
62.7 percent of inspected companies and 64 percent of
individual entrepreneurs broke tax laws. The ministry
fined over 3,000 people a total of USD 934,804 for
violating alcohol and tobacco regulations and filed four
criminal cases. Control purchase measures yielded USD
224,054 of overdue taxes and fines and USD 558,393 worth
of confiscated property. Almost 2,000 people face
administrative prosecution and fines totaling USD
514,216.


11. Official Punishment

On July 26, vice-premier Andrei Kobyakov suggested
punishing officials whose "passiveness and inactivity"
resulted in failure to reach H1 investment targets. H1
capital investments totaled USD 2,522. Belarusian
Railways, the State Aviation Committee, Belneftekhim,
Bellegprom, Belgospischeprom and Belbiopharm all failed
to meet their targets. Kobyakov blamed banks'
unwillingness to credit companies as one reason behind
investment failure.


12. Belarus Fails

On July 27, the Economy Ministry announced that state
budget proceeds from selling and renting out state
property only met 55.5 percent of the target for January
- June. The GOB hopes to gain USD 167 million from
privatization in 2005. This is the first year in which
the fund-raising requirements are evenly distributed
amongst all ministries, not just the Economy Ministry.
In 2004, the GOB fulfilled only 3 percent of its USD 47
million target for revenues from property sales.

--------------
Education
--------------


13. School Admission Rules

On July 25, Lukashenko requested the government write a
presidential edict on admission procedures to higher
learning institutes. Head of the State Control
Committee Anatoli Tozik briefed Lukashenko on the
summer's university admission process, as well as on an
audit of the Grodno regional government, inspections of
private clinics, and employment centers and wage delays
at state and private companies. Lukashenko reiterated
the necessity of punctual wage, pension and student
allowance payments, while instructing the SCC to
continue examining the quality and costs of health
services.


14. Foreign Education Handbook

On July 21, a handbook about foreign universities was
published for students in Belarus. The book includes
information about education systems and universities in
the US, Canada and 12 European countries. It also
contains a preface warning that "Emigrating and turning
into a Canadian, American or German worker is the worst
thing that may happen to our compatriots there... the
most advanced people come back home after graduating
from Oxford and Princeton".

--------------
Anti-US

MINSK 00000859 003 OF 004


--------------


15. Information Warfare

On July 25, Alexander Busko of the military newspaper Vo
Slavu Rodiny wrote an article describing the USG's
information war against Belarus. The US discredits "the
enemy in the eyes of the international community", just
as it did against Iraq and Yugoslavia.


16. US Causes Pole Conflict

On July 25, state television channel ONT broadcast that
the US and Poland are forming a closer union. Reporter
Ruslan Poddubski asserted that the US is trying to drive
apart Belarus and Poland by using the Union of
Belarusian Poles. Apparently, the USG will not succeed,
as Belarusians have always been friends with Poles and
no external force will change that.

--------------
Miscellaneous
--------------


17. Visa-Free to Syria

On July 25, Lukashenko approved a draft agreement with
Syria to allow bilateral, visa-free travel for holders
of diplomatic, official and special passports. The
measure would expand bilateral contacts and ease travel
formalities for nationals of Belarus and Syria.


18. Belarus Least Corrupt of CIS

On July 20, Ivan Ivanov, head of the International
Finance Corporation in Belarus, announced that relations
between small and medium businesses and state bodies in
Belarus are the least corrupt in the CIS. Corruption
includes all additional payments needed to register a
business, which is lower in Belarus than in other CIS
states. In 2004, it cost USD 736 to open a business,
excluding unofficial money paid to state officials.
Corruption levels were highest in Azerbaijan. Only in
Belarus did levels rise in comparison to 2003. Ivanov
blames this on a lack of coordination and complexity in
Belarusian laws.


19. Spying Poles Banned

On July 22, the MFA announced its ban on a Warsaw-based
Polish foundation, Dialogue, that promotes cooperation
between European researchers. According to the MFA, the
foundation was a cover for spying activities on CIS
territories "under the guise of merely scientific
interests". News reports said that the organization
tried to recruit Belarusian researchers with access to
classified information and that Polish embassy officers
were also involved in espionage.


20. Labor Ministry Inspection

On July 22, the Labor Ministry publicized the results of
7,000 inspections of organizations and enterprises
conducted from January to June. The Ministry found
164,000 violations of occupational safety rules, closed
23 workshops and removed 10,000 machines from service.
They also fined 5,500 managers a total of USD 93,250 for
failure to enforce occupational safety standards and
charged 31 with criminal offences. Inspections of 3,500
small businesses revealed 39,000 violations resulting in
1,500 fines.


21. Iranian Cars

On July 26, Speaker of the Lower Chamber of Parliament
Vladimir Konoplev met with Abdol Rakhman Galambor of
Iran Khodro Company about the establishment of Iranian
car production facilities in Belarus. Iran Khodro, the
largest carmaker in the Middle East, wants to set up a
joint venture with Belarusian Unison CJSC to produce
2,000 to 3,000 cars annually.


22. Belarusian Seaport

On July 27, Lukashenko announced that Russia will allow
Belarus to build its own seaport in Kaliningrad and to
redirect the majority of its freight traffic there.
Currently, Belarusian cargo passes through Russia, the
Ukraine and the Baltics.

--------------

MINSK 00000859 004 OF 004


Quote of the Week
--------------


23. On July 26, Lukashenko blamed the U.S. for
instigating the conflict between Belarus and Poland:

" The Belarusian Poles will not be cannon fodder for
Washington or Warsaw nor will we let Belarusian Poles be
some puppets on a string. I warn you: I will protect the
nation with all constitutional means available.
Nobody's happy about America's policy in Europe. One
empire, one center is willing to control all its rivals
- China, Europe and Russia. Poland is like a bone stuck
in Europe's throat. Belarus is the bone in the throat
of America."

KROL