CZECH FOREIGN MINISTER'S VISIT TO MOSCOW

C O N F I D E N T I A L PRAGUE 000012

SIPDIS

SIPDIS
NOFORN

E.O. 12958: DECL: 01/04/2016
TAGS: PREL PHUM MARR RU PL EZ
SUBJECT: CZECH FOREIGN MINISTER'S VISIT TO MOSCOW

REF: A. PRAGUE 0009

B. 2005 PRAGUE 1753

Classified By: CDA Michael Dodman for reasons 1.4 b+d.


1. (C) Summary. Czech FM Cyril Svoboda visited Moscow
December 20 for meeting with Russian FM Lavrov in Moscow.
The two agreed that Russian President Putin may visit Prague
in the spring, but only if the Czechs agree (under pressure)
to sign IPR license agreements for Soviet-era military
technology. FM Svoboda expressed concern regarding the Russia
NGO law. The Russians insisted the law is consistent with
European NGO law and should be enacted as drafted. Finally,
Czech delegation was surprised by the anti-Polish rhetoric at
the meeting. End summary.


2. (C) CDA and Poloff met January 3 with Tomas Szunyog, Czech
MFA's Director of the Eastern Europe Department, to discuss
FM Svoboda's December 20 visit to Moscow and other regional
issues (see reftel A for discussion on Belarus). Svoboda met
with Russian FM Lavrov, as well as President Putin's
political advisor and national security advisor. Among the
topics discussed were Putin,s planned visit to Prague in
Spring 2006, the Russian NGO law, and the status of the Czech
NGO, People in Need.


3. (C) Szunyog said the planned Putin visit (the first
Russian presidential visit to Prague in over a decade) would
promote economic and cultural relations between the two
countries. The Russian priorities are to enter into
agreements with the Czechs relating to (1) cooperation on
disaster relief, (2) social affairs (pensions, etc.),(3)
economic cooperation, and (4) licenses for Soviet-era
military equipment. However, the Russians have asked the
Czechs not to publicly announce the dates of the visit, which
is currently scheduled to take place on March 1-2. The reason
could be for security purposes, but as Szunyog suggested, the
more likely reason is that the Russians want to use the visit
as leverage to pressure the Czechs into signing the military
license agreements. Szunyog believes Putin may cancel the
visit if he cannot make a show of signing the license
agreements while in Prague.


4. (C) The license agreements would require the Czechs to pay
royalties for licenses relating to Soviet-era military
technology. Szunyog noted that much of this is unwanted
technology foisted on the Czechs in the first place (that
said, some of this equipment is still an important part of
Czech military hardware, and some of it is still produced in
the Czech Republic and exported). Two of the license
agreements concern the payment of royalties for past and
current production, and use of certain military equipment
(e.g., the T-72). The agreements are particularly
controversial because they would permit Russia to control
exports of military equipment produced by the Czechs. The
carrot would be another agreement, to be signed only if the
Russians and Czechs execute the first two agreements,
authorizing the Czechs to upgrade their fleet of Soviet-era
helicopters (the MY24),although apparently at a hefty price.
Szunyog dryly noted that Ukraine and Belarus have offered to
provide spare parts for the fleet at a cheaper price, and
without the need to sign any of the license agreements.


5. (C) With respect to the draft NGO law, FM Svoboda, as
promised, used his meetings to argue for improvements to the
law. The Russians insisted the current version of the law is
"consistent with European standards," and cited two examples
of French and Austrian law (both of which Szunyog
characterized as "extreme"). While Szunyog was concerned
about the letter of the Russian law, he expressed even
greater concern for how the law would be implemented.


6. (C) FM Svoboda also asked for Russian permission for the
Czech NGO, People in Need (PIN),to resume their operations
in Russia (see reftel B). The Russians said they have
problems with three Czech NGOs operating in the Northern
Caucuses, especially PIN. They said PIN will not be issued a
license to resume operations in Russia until the completion
of their investigation into the 2004 incident involving the
discovery of weapons in a building rented by PIN.


7. (C) Finally, Szunyog noted that the Czech delegation was
struck by the anti-Polish rhetoric of the Russians. Without
providing details, he termed the Russians' comments regarding
their neighbor as notably "non-diplomatic." Moreover, he
noted that the Russians have taken certain steps that signal
an intention to isolate Poland. For example, Putin has
visited or plans to visit Hungary, Slovakia, and the Czech
Republic, but has declined to visit Poland.
DODMAN