UPDATE ON CASPIAN DELIMITATION: NOTHING NEW IN

C O N F I D E N T I A L BAKU 001242

SIPDIS

SIPDIS

E.O. 12958: DECL: 08/21/2016
TAGS: ENRG ETRD IR PBTS PGOV PREL AJ TX
SUBJECT: UPDATE ON CASPIAN DELIMITATION: NOTHING NEW IN
IRAN-AZERBAIJAN TALKS, HINTS OF PROGRESS WITH TURKMENISTAN

Classified By: DCM Jason P. Hyland, per 1.4 (b,d).


1. (U) On 10 August, Iranian Deputy Foreign Minister and
Special Representative for Caspian Issues Mehdi Safari
traveled to Baku for discussions with the GOAJ on the legal
status of the Caspian Sea and the possibility of holding the
next conference of littoral states in Baku. In addition,
according to local media reporting, Safari gave President
Aliyev a letter from Iranian President Ahmadinejad. The
subject of the letter was not reported. While reporting on
Aliyev and Safari's meeting focused on delimitation issues, a
subsequent meeting between Safari and Azerbaijani Deputy
Foreign Minister Khalaf Khalafov clearly involved a broader
range of issues.


2. (U) Speaking to the issue of Caspian delimitation,
Khalafov stated, "We've reached an agreement to discuss the
existing proposals and attitudes once again. We are ready
for bilateral visits and to continue discussions." Khalafov
went on to say that he felt that the potential existed for
both sides to "find a mutually acceptable diplomatic solution
to the problem." For his part, Safari expressed satisfaction
not only with Caspian delimitation discussions, but also with
talks on Azerbaijan and Iran's growing bilateral relations
and progress in "various political and economic fields."
Safari urged expanded cooperation in the transit of energy
(oil, gas, and electricity) between the two countries and to
world markets (possibly Europe). He went on to express a
strong desire for cooperation on, and the quick completion
of, a North-South Corridor (also referred to as NOSTRAK),a
transport corridor linking the Persian Gulf and Caspian Sea.


3. (C) In a meeting prior to Safari's visit, Azerbaijani
Deputy Foreign Minister Khalafov told pol/econ chief that
Azerbaijan's discussions with Iran over Caspian delimitation
continued to be "difficult." He said that Iran continues to
"politicize" the issue, making proposals that are "not
mature" and "missing vital elements." As long as Iran
continues to view the delimitation process as political,
rather than goal-oriented, Khalafov said he does not expect
prompt resolution of the issue. (Khalafov's comments
following the meeting with Safari confirmed that nothing
changed during the talks.)


4. (C) Khalafov said that Turkmenistan had been surprisingly
practical and focused in the last round of multilateral
Caspian delimitation talks that took place in Baku on the
margins of the May Economic Cooperation Organization (ECO)
Heads of State meeting. During the ECO meeting, Khalafov said
that Turkmenistan made it clear it wanted to hold technical,
bilateral discussions with Azerbaijan. Azerbaijan prefers to
keep these discussions in the multilateral forum and will
bring in technical experts to the next multilateral meeting,
scheduled for the last quarter of 2006. While he noted that
Turkmenistan had not been a reliable partner in past
delimitation talks, Khalafov believes Azerbaijan and
Turkmenistan will be able to find "common ground" on Caspian
delimitation if President Niyazov agrees with the technical
recommendations. Khalafov commented that Turkmenistan's
new-found, practical approach to Caspian delimitation appears
to be rooted in a similarly new-found desire to attract
greater international investment to Turkmenistan.
DERSE