BUILD MORE BRIDGES! AFGHAN BUSINESSMEN VISIT DUSHANBE

UNCLAS SECTION 01 OF 02 DUSHANBE 001512

SIPDIS

SIPDIS

SENSITIVE. NOT FOR INTERNET DISTRIBUTION.
REL NATO/AUST/NZ/ISAF

E.O. 12958: N/A
TAGS: PREL PGOV ECON ETRD BEXP AF TJ
SUBJECT: BUILD MORE BRIDGES! AFGHAN BUSINESSMEN VISIT DUSHANBE

REF: KABUL 1629

DUSHANBE 00001512 001.2 OF 002



1. "You can select your friends, but not your neighbors," said
Sharif Saidov, Tajikistan Chamber of Commerce and Industry
Chairman (TCCI). "If your neighbor is calm, then you are
calmer." The August 3 visit of Afghan businessmen to Dushanbe
underscored the calm on both sides of the border and the
potential for greatly expanded commercial relations. Four
businessmen and two officials from the Department of Foreign
Affairs in Kunduz, accompanied by the U.S. PRT officer and FSN
in Kunduz, came north to reciprocate an April 6 visit made by a
Tajik business delegation and EmbOffs (Reftel). Following on
the heels of the July 27 bilateral summit in Dushanbe, Afghans
and Tajiks participants repeated the comments of Presidents
Rahmonov and Karzai about the bonds of language and culture that
connect their countries, and how trade relations could improve
the prosperity and security of both countries.


2. "We are not maximizing our potential," noted Saidov, after
welcoming his Afghan "brothers" to their "motherland."
Statistics show Tajik-Afghan trade consists mainly of small
numbers of shuttle traders crossing the border with consumer
goods. In an hour-long meeting, he proposed more joint
roundtables and exhibitions to stimulate bilateral trade.
Saidov noted that the Tajik parliament had passed a law in 1998
making foreign investment and international trade easier, and
that if Tajikistan developed its hydropower potential, it would
have plenty of electricity to export to Afghanistan. "Tajikistan
has some of the same reconstruction challenges as Afghanistan,"
he observed, describing the declining cotton harvest and
struggling agricultural economy. "Consider the TCCI your point
of contact in Dushanbe," he offered, handing the visitors an
English-language list of Tajik companies interested in doing
business with the Kunduz representatives. The Afghan Deputy
Trade Attachi noted that several of the companies on the TCCI
list were already active in Afghanistan, and the Tajik-Afghan
business council had 75 small businesses in Dushanbe.


3. The Afghan delegation echoed Saidov's comments about peace
leading to economic growth and the need to improve trade. "In
1984, we exported raisins to the Tajik Consumer Union,"
remembered the Head of the Kunduz Chamber of Commerce." Years
of war had cut the commercial ties, and the economic base
fueling them. "Our goals are now the same: cross border trade."
He and Saidov agreed the U.S.-funded bridge at Nizhniy Pyanj,
due to open in Summer 2007, would dramatically increase the
potential for large scale trade and commerce, but even more
bridges were needed to connect other parts of Afghanistan and
Tajikistan.


4. In a meeting hosted by the Dushanbe Construction
Association, the lively discussion focused on the practical
aspects of cross-border commerce. "Can anyone get me 5000 tons
of diesel?" asked a Kunduz plastics producer. "What kind of
banks can we use for transactions? Will a letter of credit
suffice?" asked another businessman. Given the demand for
reconstruction in Afghanistan, the groups acknowledged the
possibility of construction contracts, "not just one bulldozer,
but a sustained supply of steel, cement and equipment."


5. However, corruption and bureaucracy on both sides of the
border posed barriers. Afghans and Tajiks also cited the lack
of a trucking network as slowing trade-each individual driver
and truck owner negotiated his own price. Both countries have
to import most raw materials, adding to costs. Tajiks noted the
lack of insurance for vehicles operating in Afghanistan, and
Afghans complained how hard it is to get a Tajik visas. In
practice, such restrictions can mean goods have to be off-loaded
from Tajik trucks and re-loaded onto Afghan trucks, or vice
versa, costing the traders time and money. (COMMENT:
International donors have been telling the Tajik government for
years the restrictive, and somewhat arbitrary visa regime
impedes business. END COMMENT.)


6. After lunch, a visit to a small metal construction workshop
left the Afghans observing that they already produced similar
products in Kunduz, thus eliminating any interest in imports.
(NOTE: During the April 6 visit in Kunduz, the Tajiks similarly

DUSHANBE 00001512 002.2 OF 002


responded to visits to a flour factory and cotton processing
facility, both of which exist at the same level of capacity and
quality in Dushanbe. END NOTE.) The groups parted by
reaffirming their potential, and a few businessmen exchanged
contact information with their Tajik counterparts.


7. The visit was a day trip. The Afghans departed Kunduz in
the early morning, crossed the temporary bridge at the U.S.
construction site, and arrived in Dushanbe three hours later.
After five hours of meetings, they headed back the same route.
The Afghan delegation included: Haji Abdul Rasul, Chief of
Kunduz Chamber of Commerce and head of Faiaz Ltd (exports and
imports carpet and other goods from Turkey); Mir Agha, head of
Amiri CC (building construction materials imports); Ahmadshah,
Chief of Turk Slayman Ltd, (vehicles and vehicle parts imports
and exports); and Akhtar Mohammad, Nisar Plastic; as well as
Abdul Ghafar Sadid and Said Zamarudin from the Department of
Foreign Affairs in Kunduz. The Construction Association was
represented by several Dushanbe constructions firms, including
Sangreza Ltd, whose owner, Saobiddin Zayniddinov, participated
in the April 6 trip to Kunduz and has been particularly eager to
help set up trade in construction materials and aggregates.


8. COMMENT: It was a small step, but it was forward motion.
This day-long visit not only provided an opportunity for
cross-border networking, but also highlighted how much goodwill
and desire exists on both sides to help each other develop
economically. The Afghan Embassy retains two commercial
attaches in Dushanbe, and both have enthusiastically embraced
U.S. efforts to promote Afghan-Tajik relations. Embassy
Dushanbe looks forward to continued cooperation with PRT Kunduz,
as well as the possibility of working with other PRTs looking to
expand local ties with Tajikistan. END COMMENT.
HUSHEK