KAZAKHSTAN: DAS FEIGENBAUM MEETS WITH DEPUTY PRIME

UNCLAS SECTION 01 OF 02 ALMATY 003062 SIPDIS SENSITIVE SIPDIS DEPARTMENT FOR SCA/CEN (J. MUDGE) E.O. 12958: N/A TAGS: PREL PGOV ECON KZ SUBJECT: KAZAKHSTAN: DAS FEIGENBAUM MEETS WITH DEPUTY PRIME MINISTER MASIMOV ALMATY 00003062 001.2 OF 002 ¶1. (SBU) Summary: On August 25, SCA DAS Evan Feigenbaum and Ambassador Ordway met with Deputy Prime Minister Karim Masimov in Astana. Conversation centered on preparations for a joint U.S.-Kazakhstan meeting on the margins of the upcoming World Bank-IMF meetings in Singapore, President Nazarbayev's visit to Washington, and Kazakhstan's vision of future economic ties with Afghanistan. Masimov's statements in each area demonstrated considerable overlap between the Kazakhstani and U.S. positions and expectations in the economic sphere. End summary. -------------- -------------- Kazakhstani Participation at 2006 World Bank-IMF Meetings -------------- -------------- ¶2. (SBU) Feigenbaum noted that U/S Shiner was looking forward to co-hosting a meeting with Masimov on the margin of the Bank-Fund meetings in Singapore. Masimov expressed the GOK's interest in giving a presentation on Kazakhstan's economic experience and its vision for future expansion of its economic activities. He noted that Kazakhstan has little experience in this kind of work and requested U.S. support to increase its chances of success at the meeting. Specifically, he stressed his desire that this event be co- hosted by Kazakhstan and the U.S., and that the agenda, logistical arrangements, and invitee list be jointly developed. After receiving a draft U.S. invitation letter from DAS Feigenbaum, Masimov proposed that the U.S. and Kazakhstan jointly issue an invitation letter. He repeatedly mentioned his interest in Afghanistan's attendance at the meeting. Additionally, he requested U.S. support in arranging a meeting between President Nazarbayev and World Bank President Wolfowitz in Washington. ¶3. (SBU) Feigenbaum noted that the U.S. would welcome the suggestion that the invitation be issued jointly. He then offered some views on the substance of the event. He said the U.S. envisions a two-part Kazakhstani presentation: detailing the country's macroeconomic experience but also outlining its vision with regard to regional economic integration. Feigenbaum added that the IFIs could speak on regional integration. He welcomed the suggestion that Afghanistan participate, and expressed the U.S. hope that the presentation would produce a small, core group of IFIs that would be able to follow up at the working level. -------------- -------------- Kazakhstan Seeking Status Upgrade During Presidential Visit -------------- -------------- ¶4. (SBU) Turning to Nazarbayev's September visit to Washington, Masimov mentioned several recent examples of successful U.S.-Kazakhstan economic cooperation - namely the FedEx agreement and GE's locomotive project in northern Kazakhstan. He directed most of his attention, however, on promoting the idea of an economic strategic partnership between the U.S. and Kazakhstan. He explained that public endorsement of such an idea had been a goal of Nazarbayev's since independence, and that the conditions now were right to make it a reality. Masimov made clear his desire that the U.S. publicly acknowledge Kazakhstan's status as an economic strategic partner during Nazarbayev's visit. And if not now, he stressed the importance of making such an announcement before the end of President Bush's term. ¶5. (SBU) Masimov acknowledged that without economic diversification Kazakhstan's economy might run aground in the future. But he highlighted Kazakhstan's commitment to address this problem, and specifically called for an increased U.S. role in the country's agricultural and transportation and communications sectors. He also added that the GOK would announce a new program regarding blue chip stocks in September. -------------- -------------- GOK Willing, But Not Fully Able to Enter Afghan Market -------------- -------------- ¶6. (SBU) Asked about the status of a Kazakhstani infrastructure project in Afghanistan, Masimov expressed interest in using Kazyna as an investment vehicle into that country, and noted that private companies had approached the government about expanding their activities into Afghanistan. However, he explained that various bureaucratic and commercial obstacles had prevented such efforts from gaining traction. Things would go much more ALMATY 00003062 002.2 OF 002 smoothly if Kazakhstan worked together with the United States on development projects in Afghanistan. When pressed for details by Feigenbaum, he suggested that the two countries engage in joint strategic planning and co- financing for these projects. He quickly added, however, that the U.S. financial burden could be very small and largely symbolic - enough simply to show that it was a joint effort. Notably, Masimov also hinted that Kazakhstan would most likely agree to participate in a PRT in Afghanistan. -------------- U.S. Central Asia Policy -------------- ¶7. (SBU) DAS Feigenbaum discussed U.S. policy toward Kazakhstan and its Central Asian neighbors, more broadly. In the past, he said, U.S. policy toward the region was sometimes seen as derivative of U.S. policy toward Russia. Whether true or not, this no longer was the case: current U.S. policy emphasized the importance of Central Asians themselves. Their countries were the focus of U.S. efforts. Despite journalistic claims of a new "Great Game," U.S. policy goals in Central Asia derived from and were specific to the Central Asian countries themselves. The U.S. does not see Central Asians as the object of struggle but as the focus of policy and, thus, as a group of states with which strong bilateral relationships are important for their own sake. Neither had U.S. interest in Central Asia been episodic. It had always been strong, Feigenbaum said, but in the past had often been dominated by a single issue at any given point in time, e.g., opening embassies in the early 1990s or counterterrorism in the immediate aftermath of September 11. In contrast, U.S. policy toward the Central Asian states is sophisticated and multi-faceted. Moreover, the U.S. intends to broaden and deepen its future involvement in the region. Masimov was clearly pleased with this description of U.S. policy and recommended that the U.S. Government make statements publicly and often. ORDWAY