(S) UZBEK AMBASSADOR TO CHINA FEARS RECALL

S E C R E T TASHKENT 000888 SIPDIS C O R R E C T E D C O P Y - ADDED ADDRESSEE SIPDIS DEPT FOR SCA/CEN, EAP E.O. 12958: DECL: 05/04/2016 TAGS: PREL PGOV PHUM PINR CH UZ SUBJECT: (S) UZBEK AMBASSADOR TO CHINA FEARS RECALL REF: A. A) TASHKENT 654 ¶B. B) TASHKENT 37 ¶C. C) TASHKENT 465 ¶D. D) TASHKENT 712 Classified By: AMB. JON R. PURNELL, FOR REASONS 1.4 (B, D) ¶1. (S) Summary: Uzbekistan's Ambassador to China, Sabirjon Yusupov, told an Embassy contact visiting China that he fears being recalled. Yusupov said that President Karimov is dissatisfied with his performance, and considering replacing him with former Primer Minister Utkir Sultanov. He speculated that President Karimov is disappointed with the quality, scale, and rate of Chinese investment. Senior GOU officials reportedly have been angered by the failure of Chinese firms to follow through on investment commitments, and their tendency to provide sub-standard goods and services. End summary. ¶2. (S) A contact with close ties to the GOU leadership told Poloff that Uzbekistan's Ambassador to China, Sabirjon Yusupov, fears he will be recalled. Ambassador Yusupov told the contact during a recent visit to China that he had heard through multiple sources that President Karimov was dissatisfied with his performance. (Note: The contact is a long-standing friend of Ambassador Yusupov, and formerly worked with him at the Tashkent District Hokimiyat. End note.) According to Yusupov, Cabinet of Ministers Adviser Utkir Sultanov is rumored to be his likely replacement. (Note: Sultanov, a former Prime Minister, was removed from his position as Deputy Prime Minister on April 3 (Ref A). End note.) ¶3. (S) Yusupov speculated that President Karimov may resent his ties to former Minister of Internal Affairs Zokir Almatov, who resigned in December 2005 (Ref B). (Note: According to the contact, Yusupov and Almatov are in-laws. End note.) Furthermore, Yusupov said that Karimov may be disappointed with the quality, scale and rate of Chinese investment. During his May 2005 visit to China, Karimov signed agreements providing for $1.5 billion of Chinese investments, mainly in the telecommunications, energy, chemical, and transportation sectors. However, according to a separate contact at UzbekEnergo Joint Stock Company (sometimes known as the "Ministry of Power, Industry, and Electricity"),top GOU officials have been disappointed by the failure of Chinese firms to follow through on investment commitments, and their tendency to provide sub-standard goods and services. ¶4. (C) Bio note: Yusupov was appointed Ambassador to China in May 2003, and since May 2004 has served concurrently as Ambassador to Mongolia. He is a former Deputy Prime Minister (2002-2003),Chairman of the Board of the Uzbek Rural Farms Machinery Leasing Joint Stock Company (2000-2002),and First Deputy Minister of Agriculture (1997-1998). ¶5. (S) Comment: While keen to boost economic ties with China, GOU officials do not take kindly to foreign investors who try to make a quick buck by building substandard infrastructure, or who skip town without completing outstanding payments. The Uzbeks reserve these prerogatives strictly for themselves. However, the GOU seems eager to cover up such problems as relations with Beijing and Moscow have become central to Karimov's post-Andijon foreign policy. With regards to Yusupov, Karimov often reshuffles senior GOU positions as well as diplomatic postings abroad (Ref D). The reasons are rarely transparent. PURNELL