Identifier
Created
Classification
Origin
06TASHKENT699
2006-04-11 02:51:00
CONFIDENTIAL
Embassy Tashkent
Cable title:  

KARIMOV IN KOREA: FOREIGN INVESTMENT GOOD, BUT

Tags:  ECON EMIN ENRG KS PGOV PREL UZ ZK 
pdf how-to read a cable
VZCZCXRO8702
PP RUEHDBU
DE RUEHNT #0699/01 1010251
ZNY CCCCC ZZH
P 110251Z APR 06
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC PRIORITY 5512
INFO RUEHTA/AMEMBASSY ALMATY 7785
RUEHAH/AMEMBASSY ASHGABAT 1877
RUEHEK/AMEMBASSY BISHKEK 2403
RUEHDBU/AMEMBASSY DUSHANBE 2301
RUEHBUL/AMEMBASSY KABUL 1395
RUEHUL/AMEMBASSY SEOUL 0150
C O N F I D E N T I A L SECTION 01 OF 02 TASHKENT 000699 

SIPDIS

SIPDIS

DEPT FOR SCA/CEN

E.O. 12958: DECL: 04/09/2016
TAGS: ECON EMIN ENRG KS PGOV PREL UZ ZK
SUBJECT: KARIMOV IN KOREA: FOREIGN INVESTMENT GOOD, BUT
WESTERN-STYLE DEMOCRACY VIOLATES OUR MORAL PURITY

REF: TASHKENT 633

Classified By: CLASSIFIED BY AMB. JON R. PURNELL FOR REASONS 1.4 (B, D)
.

C O N F I D E N T I A L SECTION 01 OF 02 TASHKENT 000699

SIPDIS

SIPDIS

DEPT FOR SCA/CEN

E.O. 12958: DECL: 04/09/2016
TAGS: ECON EMIN ENRG KS PGOV PREL UZ ZK
SUBJECT: KARIMOV IN KOREA: FOREIGN INVESTMENT GOOD, BUT
WESTERN-STYLE DEMOCRACY VIOLATES OUR MORAL PURITY

REF: TASHKENT 633

Classified By: CLASSIFIED BY AMB. JON R. PURNELL FOR REASONS 1.4 (B, D)
.


1. (C) Summary: According to the Korean Ambassador to
Uzbekistan, Moon Hayong, the GOK has chosen to engage
Uzbekistan instead of isolating it. Despite concerns over
lack of progress in human rights, the GOK is interested in
Uzbekistan's energy sector, UzDaewoo plant and the sizeable
resident ethnic Korean population. During Karimov's trip to
Korea, Hayong said the two countries signed the Declaration
on Strategic Partnership, in addition to deals to explore and
develop oil, gas, uranium and other mineral resources
(reftel). Karimov reportedly told the Korean President that
Western-style democracy violated the "moral purity" of
Uzbeks. End summary.

INVESTMENT OPPORTUNITIES FOR FRIENDS ONLY
--------------


2. (C) During his March 28-30, 2006 visit, President Islam
Karimov reportedly told Korean President Myu-Hyun that of the
11 Uzbek oil/gas investment projects offered for investment
in 2006, seven were given to Russian Gazprom and four to
Korea. Korean Ambassador Moon Hayong told the Ambassador
that Karimov said the uranium industry has been closed to
foreigners, but Korea would be given the opportunity to
invest (reftel). Additionally, Uzbekistan is looking for
international copper/zinc investors in Andijon, where it
plans to sell 20-50 percent of the joint-venture company
currently held with British-owned Oxus. (Note: Oxus is
currently under pressure from the GOU to change tax and
administrative benefits originally promised by the government
when the company first invested. End note.) Hayong said
last year Korea established a joint-venture gold mining
company with the GOU, but the GOU recently put a three-month
freeze on the project.


3. (C) Hayong confirmed that Karimov met with Hyundai

representatives in Seoul, but said talks are currently frozen
as Hyundai deals with a scandal in Korea. (Note: According
to Hayong, one of Hyundai's top bosses is in the middle of a
corruption scandal and fled to the U.S., leaving Hyundai in
turmoil. End note.) He said 16,000 employees (4,000 of whom
are skilled engineers) of the UzDaewoo factory in Andijon
"speak" Korean and use Korean manuals. For this reason,
Hyundai is very interested in UzDaewoo and Hayong believes
talks will resume. (Note: These numbers seem a little high
to us. A former UzDaewoo senior executive estimates the
UzDaewoo workforce in Andijon does not exceed 2,500 and, of
those, approximately 300 speak Korean. End Note.)

UZBEK DEMOCRACY IS SPECIAL
--------------


4. (C) In Hayong's opinion, Uzbekistan feels isolated by the
West and is taking advantage of the ethnic ties with Korea in
order to associate itself with a modern democracy and obtain
economic and political advantages. Hayong said the GOK does
not want to force anything upon Uzbekistan, but instead
wants, what he termed, "voluntary" human rights and
democratic reforms. The Koreans specifically wrote this into
the Declaration on Strategic Partnership, a non-legally
binding document signed by the two presidents: "The Sides
(will) make joint efforts to enhance democracy and human
rights in both countries and their regions in accordance with
international norms, including the UN Charter." (Note: This
Strategic Partnership is remarkably similar to the one the
U.S. signed with Uzbekistan in 2002. End note.) In response
to Myu-Hyun's remarks on democracy, Karimov replied that the
Western style of democracy is not appropriate for
Uzbekistan's 85 percent Muslim population. Instead,
according to Ambassador Hayong, Karimov said, the GOU can
only implement a form of democracy specific to its culture
that it finds moral. For example, Karimov stated that
homosexuality is "disgusting" to Uzbeks, and therefore
U.S.-style democracy violates the "moral purity" of Uzbek
culture, presumably because it allows for or fosters the
practice of homosexuality.

KARIMOV: WE HAVE A GOOD RELATIONSHIP WITH THE U.S., REALLY
-------------- --------------


TASHKENT 00000699 002 OF 002



5. (C) In Hayong's words, Karimov told Myu-Hyun that the poor
U.S.-Uzbek political relationship is "just a rumor" that he,
Karimov, does not believe. Karimov said the Uzbeks are
"realists" and understand international politics. In the
same breath, Karimov said he wants good relations with the
U.S. and if the U.S. wants to say anything to Uzbekistan, it
can use Korea as a middleman.

HONORARY SEOUL BROTHER...
--------------


6. (C) During the visit, Seoul Mayor Lee presented Karimov
with "honorary citizenship." According to Ambassador Hayong,
Lee is a front-runner in the upcoming Korean presidential
election and, to Hayong's surprise, Karimov spent a great
deal of time with him. Hayong sees Karimov looking towards
the future and keeping close ties with Korea.


7. (C) Hayong went on to note that the two presidents also
spoke about future parliamentary cooperation and health care
assistance. The Speaker of the Korean Parliament gave a
lecture to the Uzbek delegation, and Karimov was so
impressed, that he intends to send a parliamentary delegation
to Korea in the next few months. In addition to USD 30
million in educational assistance (including "soft loans,"
computers and Korean-language materials) pledged by the
Koreans, Hayong said Karimov also asked for USD 10 million
for hospital equipment for heart surgery. The Koreans are
still considering this request.


8. (C) Comment: Karimov's visit to Korea provided a key
opportunity for the Uzbeks to show that the country is not
isolating itself. It also allowed the government to generate
the positive press Karimov so desperately seeks in light of
the negative stories appearing in U.S. and European media.
Karimov's comments on democracy are interesting, as they may
indicate a policy shift. In the past, Karimov said that
Uzbekistan embraced democracy but would proceed at its own
pace. His comments about the alleged immorality of Western
democracy could indicate that the GOU is ready to dispel the
myth that it is even interested in democracy. Despite
Karimov's statements, however, a clause on the development of
democracy remains in the Declaration on Strategic Partnership
at the behest of the Koreans.
PURNELL