Identifier
Created
Classification
Origin
06ASHGABAT1104
2006-10-23 10:28:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

NIYAZOV HOPES TO FIX THE COTTON FAILURE BY ADMINISTATIVE

Tags:  EAGR ECON ETRD PGOV TX 
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VZCZCXRO7165
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHAH #1104/01 2961028
ZNR UUUUU ZZH
R 231028Z OCT 06
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 7935
INFO RUCNCIS/CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2581
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEFDIA/DIA WASHINGTON DC//DHO-2/REA/NMJIC-J2//
RHMFIUU/CDR USCENTCOM MACDILL AFB FL//CCJ2/HSE/CCJ5//
RUEKJCS/SECDEF WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC//J5/RUE//
UNCLAS SECTION 01 OF 02 ASHGABAT 001104 

SIPDIS

FOR SCA/CEN (PERRY)
ANKARA FOR AGRICULTURE COUNSELOR

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: EAGR ECON ETRD PGOV TX
SUBJECT: NIYAZOV HOPES TO FIX THE COTTON FAILURE BY ADMINISTATIVE
MEASURES


Sensitive but Unclassified; not for Internet Distribution

Ref: (A) Ashgabat 309 (B) Ashgabat 1055

SUMMARY

UNCLAS SECTION 01 OF 02 ASHGABAT 001104

SIPDIS

FOR SCA/CEN (PERRY)
ANKARA FOR AGRICULTURE COUNSELOR

SENSITIVE

SIPDIS

E.O. 12958: N/A
TAGS: EAGR ECON ETRD PGOV TX
SUBJECT: NIYAZOV HOPES TO FIX THE COTTON FAILURE BY ADMINISTATIVE
MEASURES


Sensitive but Unclassified; not for Internet Distribution

Ref: (A) Ashgabat 309 (B) Ashgabat 1055

SUMMARY


1. (SBU) Presiding over an October 6 Cabinet of Ministers meeting
attended by provincial governors, agricultural officials and defense
and law enforcement ministers, President Niyazov criticized this
year's poor cotton harvest and set the stage for potential firings
of the welayat hakims (provincial governors). While publicizing
various shortcomings of the hakims, Niyazov also cited problems in
loans for cotton farmers and the marketing of cotton
internationally. Niyazov blamed the hakims for decreasing cotton
yields, accused the hakims of not exercising proper control of the
cotton harvest and ordered an increase in daily production of cotton
within 15 days. As a result of changes in the organization of the
cotton harvest, this year's cotton harvest is expected to be
significantly below target. End Summary.

NIYAZOV CRITICIZES THE HAKIMS OVER COTTON


2. (SBU) President Niyazov presided over a Cabinet of Ministers
meeting on October 6, the National Remembrance Day commemorating the
1948 earthquake, in which he lambasted welayat hakims (provincial
governors) over the cotton harvest. He criticized hakims for
relying on Soviet work habits and accused them of lack of control
over the harvest, which resulted in the decreased daily cotton
yields. Niyazov highlighted "compromising" information about
various hakims:

-- Dashoguz Welayat Hakim Aganiyz Akyev (previously considered a
potential heir apparent, see ref B) was cited for not working
closely with farmers. Niyazov reflected on Akyev's "old sin" of not
reporting the alcohol abuse of the former director of the
Turkmenbashy oil refinery, which Akyev "committed" while he was the
mayor of the Turkmenbashy two years ago.

-- Ahal Welayat Hakim Amandurdy Myratgulyev was accused of using
military conscripts to harvest cotton. Niyazov also threatened him
with future investigation of his unspecified "wrongdoings."

-- Balkan Welayat Hakim Meretguly Gubyev angered Niyazov by

suggesting the merger of small farms into larger ones. Niyazov
accused Gubyev of trying to return to the Soviet kolkhoz system.
While granting other hakims 15 days to improve their cotton outputs,
Niyazov only gave Gubyev an unrealistic three days - perhaps
signaling the next hakim likely to be let go.

-- The Mary and Lebap Welayat hakims escaped specific charges as
Niyazov simply accused them of "eating a lot and having gained a lot
of weight" since attaining their positions.

"NO MIDDLEMEN IN COTTON SALES"


3. (SBU) Niyazov strongly criticized the hakims for using middlemen
in cotton sales and for excluding farmers from the transactions.
This position contradicts his January 18 decree on regulating sale
of cotton for the international market (ref A). (Note: In
accordance with the decree, special commissions headed by welayat
governors were established in each of the five provinces to assist
Agricultural Joint Stock Companies (AJSC) and private farmers in
selling their cotton. Prior to the decree, the State Cotton Concern
was the state middleman, purchasing cotton from farmers at a
state-fixed price and selling it in the international marketplace.
End Note.) Presently, all cotton produced in the welayats is sold
through welayat commissions and the commissions' representatives
negotiate with international buyers. During his September 18 visit
to Dashoguz Welayat, Niyazov ordered the AJSC to disengage from
cotton sales in order to permit farmers to be directly involved in
price negotiation and sale of cotton for the international market.
However, the president did not suggest any legal mechanism for
farmers to do this, thus leaving farmers and hakims confused.

INTO THE WEEDS ... NIYAZOV ORDERS FARMERS TO RETURN LOANS


4. (U) Niyazov complained that etrap (district) hakims often gave
land to their relatives and provided them with loans from the Dayhan
Bank (Farmers' Bank) to grow cotton. He rejected this arrangement

ASHGABAT 00001104 002 OF 002


when the relatives hired cheap labor, rather than work the land
themselves. As a result, Niyazov dismissed Dayhan Bank Deputy Chief
Batyr Sahedov for disbursing the bank's money to the wrong people.
Niyazov also criticized Central Bank chief Geldimyrat Abylov for
lack of oversight of state funds and ordered a review of
transactions at Dayhan Bank welayat branches. Niyazov demanded that
welayat hakims verify that "real farmers," and not hired hands, were
working in the cotton fields. Niyazov ordered farmers who failed to
meet their cotton quotas to return loans from the Dayhan Bank.

MORE PEOPLE ESCAPE COTTON PICKING BURDEN


5. (U) During the Cabinet of Ministers meeting Niyazov once again
reiterated his May 2004 ban on child labor for cotton picking and
exempted employees of state organizations, including teachers and
doctors, from cotton picking duties. However, employees of
ministries and organizations which own land and grow cotton for
their own use are not exempted. (Comment: During a series of trips
to all welayats, embassy officers saw no evidence of widespread use
of child labor in the cotton harvest; those children who were in the
cotton fields seemed to be part of family, rather than school,
groups. End Comment.)


6. (U) Niyazov prohibited the use of military conscripts in the
cotton fields. He also directed, for this year only, that fields
not assigned to tenants be given to military units for them to
harvest. These units can keep 70% of the cotton for their own use
and remand the remaining 30% to the state cotton reserve.

OTHER HOUSEKEEPING


7. (U) Niyazov authorized the Chief of the President's
Administrative Apparatus, Muhamerberdy Bashiyev, to work on the
creation of a new department under the President's Office to oversee
the implementation of the president's resolutions and monitor top
officials' "executive discipline." He concluded the meeting with an
awards ceremony for law enforcement and military chiefs.

COMMENT


8. (SBU) Disorganization and changing priorities seem to be plaguing
Turkmenistan's agricultural sector. Niyazov's experimentation with
the AJSC, combined with sudden shifts in policy have contributed to
reduced cotton yields this year. Although he acknowledged private
sector progress in the livestock, fruit and vegetable sectors,
Niyazov does not want to cede control over the cotton sector, which
is, along with oil and gas, a major hard currency earning component
of the economy. End Comment.

Brush

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