SCA A/S BOUCHER MEETS WITH GOI CENTRAL ASIA CHIEF

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 005549

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E.O. 12958: DECL: 08/07/2016
TAGS: PREL PGOV ENRG EPET PBTS TRGY OVIP IN KZ KG
PK, TX, TI, IR, NP, CH, BG
SUBJECT: SCA A/S BOUCHER MEETS WITH GOI CENTRAL ASIA CHIEF


Classified By: Charge Geoff Pyatt for reasons 1.4 (B,D)


1. SUMMARY: Assistant Secretary Richard Boucher used an
August 7 meeting with Minister of External Affairs Joint
Secretary (Eurasia) Jaimini Bhagwati to brief on current U.S.

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relations with Kyrgyzstan and Uzbekistan and to probe India's
relationships with Central Asia. Boucher specifically urged
the Government of India to help strengthen the Kyrgyz
parliament. Boucher and Bhagwati discussed various plans now
on the table to transfer energy between Central Asia, India,
and Pakistan. Boucher also gleaned information from Bhagwati
on India's educational outreach programs to its Central Asian
neighbors, and he shared U.S. ideas to get more involved. END
SUMMARY.


India Thinks Uzbekistan Not Quite Ready for Prime-Time
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2. (C) Bhagwati said Prime Minister Manmohan Singh visited
Uzbekistan in April 2006 because it is "a part of our
neighborhood," is strategically located, has a huge urban
population, and a senior Indian had not visited in some time.
He added that "our relationship is on an even keel" and
mentioned that Uzbekistan has sought closer economic
relations with India, especially in the area of oil and gas
sales. Bhagwati admitted this closer relationship would be
difficult to fulfill, due to the fact that the Uzbek oil
companies were state-owned and notoriously unforthcoming
about their resource holdings and their business details.
This lack of transparency, said Bhagwati, made it almost
impossible for Indian petroleum companies to trust them
enough to contemplate a deal seriously. Bhagwati added that
India and Uzebekistan had signed a Memorandum of
Understanding on energy-trade, which he described as
non-committal and perfunctory. Boucher expressed surprise to
hear that Uzbekistan had approached India with potential gas
business, noting that all of their oil and gas deals seem to
be dictated directly by Gazprom and Russia.

Kyrgyzstan is Problematic
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3. (C) Boucher described the currently strained relations
between the U.S. and Kyrgyzstan, mentioning the tit-for-tat
ejection of diplomats on both sides in the past few months.
He stated that this was due to spurious allegations of
wrongdoings by US diplomats. Boucher added that the Kyrgyz
"seem more interested in money than anything else," noting
that they had agreed to accept USD 17 million to renew the
lease of the U.S. military base on their territory. Boucher
urged Bhagwati to consider GOI support for democracy programs
to try to empower the now-weak Kyrgyz parliament to better
counterbalance the President. Bhagwati replied that India
has parliamentary exchanges with Tajikistan, and could send
some Indian Members of Parliament to Kyrgyzstan, too.
Bhagwati concurred that India was also concerned about drugs,
killings and border issues in Kyrgyzstan.

India Cautious on Power Deals
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4. (C) Bhagwati mentioned that Tajik President Rahmonov
would meet with the Prime Minister, President, National
Security Advisor, Minister of Defense, and the Minister of
Mines during his current visit. Bhagwati specifically
mentioned one "small" Tajik/Indian hydroelectric aid
project,"Varzov 1," in which the Government of India is
assisting the Tajiks in rehabilitating their outdated
machinery.


5. (C) Boucher noted that the U.S. is working with
Tajikistan on financing power-distribution projects, adding
"we'll need as much power as we can get in Afghanistan."
Boucher noted that the U.S. hopes to get both India and
Pakistan to cooperate with this plan.


6. (C) Bhagwati replied cautiously that India is very eager
to get more power from any source possible, but that it will
remain skeptical until it sees some concrete, feasible plans.
"How will it reach us?" he queried, noting that there are
border disputes with the both Pakistan and China, the two
likeliest locations for cross-border energy transmission.
Boucher suggested high-voltage lines through a more stable
crossing, like Lahore, Pakistan as a workable solution.
Bhagwati noted that India participated in June in the
electricity conference in Istanbul, and would also attend the
next one in Dushanbe in October.

India puts all its faith in educational exchanges, for now
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7. (C) Bhagwati lauded "Human Resource Development" as
India's best and least expensive method to provide aid and
generate goodwill with its Central Asian neighbors. He spoke
enthusiastically about the educational scholarships that
India provides to roughly 50 - 100 students per Central Asian
neighbor annually, who come to study English and technology
programs. Bhagwati also mentioned that the Indian Foreign
Service Institute offers training to young Central Asian
diplomats, as well as sending Indian diplomatic teachers
directly to neighboring countries to instruct them there at
home. Bhagwati mentioned that India has set up information
technology study-centers, modest ventures of a few rooms and
computers, in Kyrgyzstan, Kazakhstan and Tajikistan, but not
yet in Turkemenistan, he admitted, adding, "it is a difficult
country."


8. (C) Boucher lamented that the U.S. did not have the means
to offer higher education study to anywhere near as many
students as does India, due to the high cost of education in
the U.S. He then floated an informal proposal to Bhagwati,
whereby the U.S. might pay for some Central Asian students to
come to India to study on U.S. funded scholarships. Bhagwati
seemed agreeable to the proposal.

Communication/Transport - the Achilles heel?
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9. (C) Boucher expressed frustration at the difficulty of
getting the Central Asian nations to communicate and
cooperate effectively with each other. Bhagwati

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commiserated, noting, "In the past they never communicated
directly with each other - all communication went through
Moscow - now they are only learning how to talk to each
other."


10. (C) Bhagwati noted that ground transportation was
virtually impossible in that part of the world. He stated
that air travel, both passenger and freight, was a possible
solution, but was still underdeveloped. Bhagwati noted that
there is no direct air connection from New Delhi to
Tajikistan, only via Moscow or Almaty. He avowed that there
is plenty of demand for more air connections on the
profit-focus of Indian carriers, and asked for U.S. ideas to
create more air links.


11. (C) COMMENT: While discussion did not yield any large
breakthroughs, it is clear that India and the U.S. largely
see eye-to-eye in Central Asia, and there is room for us to
work well with India in this region. END COMMENT


12. (U) A/S Boucher cleared this message.


13. (U) Dushanbe Minimize Considered
PYATT