EXBS: KAZAKHSTAN ADVISOR MONTHLY REPORTING CABLE

UNCLAS SECTION 01 OF 03 ALMATY 000924

SIPDIS

SIPDIS

DEPT FOR ISN/ECC PVANSON, ACHURCH, ACUMMINGS
DEPT FOR EUR/ACE
DEPT FOR SCA/CEN JMUDGE
CBP/INA FOR PWARKER AND FOR CDONOFRIO
USDOE/NNSA TPERRY, CWALKER
DOC FOR PETERSON-BEARD
USCG FOR CWILSON
AMEMBASSY BERLIN FOR CUSTOMS ATTACHE
AMEMBASSY TASHKENT, BISHKEK, BAKU, DUSHANBE FOR EXBS
ADVISORS

E.O. 12958: N/A
TAGS: ETTC MNUC PARM PREL KSTC KNNP KZ
SUBJECT: EXBS: KAZAKHSTAN ADVISOR MONTHLY REPORTING CABLE
(FEBRUARY 2006)



I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS:


1. EXBS Almaty devoted a substantial amount of time
this month to preparing for the delivery of three boats and
organizing an event to celebrate their arrival to the
Caspian (additional information below in section D).


2. EXBS Kazakhstan's move to Astana is rapidly
approaching. The office is scheduled to leave Almaty for
the embassy branch office in Kazakhstan's capital city
sometime in June. At the end of the summer, EXBS
Kazakhstan will relocate once again--this time to the new
embassy compound in Astana.

II. COMPLETED ACTIONS FOR THE REPORTING PERIOD


A. SITE ASSESSMENTS AND MEETINGS CONDUCTED


1. February 7 - Advisor Offenbacher participated in a
meeting on USAID's trade facilitation project. Secretary
Rice recently announced additional funding for this
regional initiative, which aims to reduce cross-border
transaction costs and increase transparency by harmonizing
and streamlining customs operations.


2. February 10 - The EXBS program office assisted the
DOE/NNSA's Search and Secure program by helping coordinate
the delivery of four large items (isotope identifiers and
Geiger Mueller probes) that were not included in the
program's initial radiation detection equipment shipment
last May. The Search and Secure program provides equipment
and training to help countries search for, locate, and
identify orphan radioactive sources.


3. February 14 - EXBS Almaty staff attended a meeting
with U.S.-based and local representatives of the Monterey
Institute's Center for Nonproliferation Studies. The
Center is working on a proposal for a regional conference
in Almaty devoted to United Nations Security Council
Resolution 1540 issues.


4. February 16 - At ISN/ECC's behest, EXBS advisor
investigated the possibility of establishing an MOU that
would allow the use of the regional USAID office's
contracting officers for future EXBS procurements in
Central Asia. Further discussion will be necessary to
determine the feasibility of this option.


5. February 20-21 - EXBS Advisor Offenbacher and
Program Manager Abildaeva traveled to the Kostanai region
to meet with representatives of the border guard and visit
several zastavas (border control points). The zastava
buildings were rather spartan, but they did contain basic
handheld radio communications equipment, one or two dogs,
old Soviet-era jeeps and the occasional computer.

Effective patrolling of the frontier is problematic in the
winter as each zastava is responsible for a large (from 70-
150 kilometers) swath of the border that is snow-covered
half the year. Extremely cold weather significantly
decreases a handheld radio's battery life between charges.
Access roads near or along the border are poor or non-
existent and - unlike their Russian colleagues on the other
side of the border - the Kazakhstanis do not have
snowmobiles that would allow them much greater access and
range. We were told by the border guard that they liaise

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with local residents to obtain intelligence on human
activities in the area of the border. Our overall
impression was that not much patrolling or even observation
of the border was being conducted in the winter.


6. February 24 - EXBS advisor participated in an
interagency meeting to discuss Kazakhstan's strengths and
weaknesses in combating nuclear smuggling. This new
initiative is being spearheaded by the Bureau of
International Security and Nonproliferation's Office of
Proliferation Threat Reduction, which for this purpose
developed a comprehensive assessment of Kazakhstan's
ability to counter the trafficking of nuclear and
radioactive materials. At the end of the meeting, the U.S.
delegation left the Kazakhstanis with a nonpaper and
requested a written response addressing their assessment's
findings. A follow-on meeting will be held after
Kazakhstan's response is sent. Kazakhstan is the second
country to be engaged under this initiative; a similar
meeting was previously held in Ukraine.


7. February 27 - EXBS advisor convened a meeting to
work out the details of the turnover ceremony for the Safe
boats.


8. February 27 - EXBS Almaty staff participated in an
informational meeting with Roy Gordon of the Mobat Company,
a producer of Micom high-frequency radio systems.


9. Final week in February - Arranged meetings with
Kazakhstani Government officials in anticipation of Anne
Cumming's early March trip to Kazakhstan.


B. TRAINING DURING THE REPORTING PERIOD


1. None.


C. EQUIPMENT DELIVERED DURING THE REPORTING PERIOD


1. None.


D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE


1. COMMODITY IDENTIFICATION TRAINING - This pilot
event scheduled for the week of March 13 represents the
culmination of several years of work to establish an
indigenous controlled commodity training capability. For
the first time this course will be taught by Kazakhstanis
for Kazakhstanis; nuclear technical experts from National
Nuclear Center in Kurchatov will serve as instructors for
this week-long event. Students will include personnel from
Kazakhstan's Customs Control Committee and Border Service.
Several U.S. representatives from the National Nuclear
Security Administration and Pacific Northwest National
Laboratory will attend the training.


2. SAFE BOATS - The March 16 date established for the
turnover ceremony proved to be premature; the event had to
be postponed for a second time due to uncertainty
surrounding the boats' delivery schedule. The three 42-
foot fast response boats built for Kazakhstan's Maritime
Border Guard Division are slowly approaching Baku by rail
and are expected to reach Kazakhstan's Caspian shore by the
middle of March. The ceremony is now likely to be pushed
back to April due to the extensive coordination and
preparation required for this high-profile event. Safe

ALMATY 00000924 003 OF 003


Boat International manufactured the boats and the U.S.
Coast Guard is the lead on this EXBS-funded procurement.

EXBS Almaty continues to coordinate closely with the Baku-
based EXBS Maritime Regional Advisor's office on a range of
issues related to the boats' impending delivery, the
subsequent turnover ceremony, and related training.
Several country clearances were issued this month in
anticipation of U.S. Coast Guard representatives' arrival
to assist with the transport of the boats to Bautino, their
final destination.


3. CENTRAL ASIA AND CAUCASUS REGIONAL FORUM ON EXPORT
CONTROL - This eighth regional event will be held in
Tbilisi, Georgia from May 16-18. Kazakhstan has been asked
to send five delegates, including Chingiz Massenov, Head of
the Materials Control Division of Kazakhstan's Atomic
Energy Committee, to the event. Mr. Massenov has been
asked to deliver a presentation on risk-screening methods
for a break-out session devoted to licensing.


4. INTERNATIONAL BORDER INTERDICTION TRAINING (IBIT) -
A diplomatic note was transmitted to Kazakhstan's Customs
Control Committee and Border Service with a request to
identify eight participants from each agency for the July
17-21 IBIT 1 training in Hidalgo, Texas.


5. U.S. COAST GUARD MOBILE TRAINING & EDUCATION TEAM -
EXBS Almaty contacted the leadership of Kazakhstan's
Maritime Border Guard Division to gauge their interest in
the U.S. Coast Guard's Small Boat Operations and Law
Enforcement Boarding Officer training courses. The
Kazakhstanis responded positively and tentatively agreed to
the Coast Guard's proposed dates in late May, June and
early July.


E. SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS,
NONPROLIFERATION, OR RELATED BORDER SECURITY


1. None.


F. CASPIAN SECURITY UPDATE

Please see section D, paragraph 2.

III. RED FLAG ISSUES.

EXBS Almaty is working with a U.S. Customs and Border
Protection financial officer to determine how to return
over $100,000 in VAT refund money to EXBS Kazakhstan's
budget. The refund was received from the purchase of
locally-produced modular shelters that were provided to the
Border Service of Kazakhstan.

The point of contact for this report is Andrew S.
Offenbacher, EXBS Advisor, OffenbacherAS@state.gov, tel:
+7(3272)504-945, cell: +7(333)225-1156.

ORDWAY