TURKMENISTAN'S TEXTILE MINISTER SHARES HER -- AND

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001047

SIPDIS

SIPDIS

STATE FOR SCA/CEN, EEB

E.O. 12958: DECL: 09/27/2017
TAGS: PGOV PREL PINR EIND ETRD TX
SUBJECT: TURKMENISTAN'S TEXTILE MINISTER SHARES HER -- AND
BERDIMUHAMEDOV'S -- BROAD VISION FOR THE INDUSTRY

REF: ASHGABAT 1014

Classified By: Charge d'Affaires a.i. Richard E. Hoagland for reasons 1
.4 (B) and (D).


1. (SBU) SUMMARY: DCM met with Turkmenistan's Minister of
Textiles Jemal Geoklenova on September 26 for an introductory
meeting on the textile industry in Turkmenistan.
Appreciative of the experience brought by and lessons learned
from international investors, Geoklenova explained that
President Berdimuhamedov wants to expand trade and raise
Turkmenistan's textile industry standards up international
standards. Optimistic, gracious, and European in style and
substance, Geoklenova is no communist dinosaur. In her
words, "everything is in place for success in this industry."
END SUMMARY.

NO SIGNS, OR BITTERNESS, OF ALLEGED PREVIOUS IMPRISONMENT


2. (C) DCM met with Turkmenistan's Minister of Textiles
Jemal Geoklenova on September 26 in her European-style office
for an introductory meeting on the textile industry in
Turkmenistan. According to rumors, Geoklenova was imprisoned
late in Niyazov's term. Various rumors, some of which are
truly preposterous, point to prominent Turkish businessman
Ahmet Chalik's (reftel) involvement in discrediting her.
However, it seems fairly certain that following her ouster
from her previous assignment at Minister of Textiles, she
underwent severe treatment. At her first public appearance
on television at a Cabinet of Ministers meeting, she appeared
gaunt and moved with such weakness that some Turkmen say the
formerly chic Geoklenova "looked like an alien." After
Berdimuhamedov had her released and appointed her head of the
carpet industry, according to local Embassy staff
knowledgeable about this industry, "everyone" knew it was
only a matter of time before the government would name her
Minister of Textiles. At this meeting, however, she seemed
healthy, and while absolutely pleasant, showed that she is a
serious career woman who wants this industry to succeed and
grow in Turkmenistan.

VERY SERIOUS ABOUT THE INDUSTRY -- A COMPLETE PROFESSIONAL


3. (SBU) Geoklenova spoke freely and gave a concise
explanation without a prepared statement of the Turkmenistan
textile industry. Under the Soviet system, cotton was
exported as a raw material. One of the two factories
processing the raw materials is still in operation. After
the Ministry of Textiles was founded in 1995, the ministry
built one factory per year, which it considered a
construction boom. About 30,000 people are currently
employed in the sector. Geoklenova was proud that the
ministry emphasizes the use of the newest technology from
Germany, Switzerland and -- the very best -- from Japan, and
that the industry is fully automated. Japan Bank for
International Cooperation (JBIC) financed the construction of
the Ashgabat Textile Complex in 2007. Three partners
financed the construction of a jeans complex: European Bank
for Reconstruction and Development (EBRD)- 20%, a Turkish
company - 30%, and the Government of Turkmenistan - 50%.
(NOTE: While Geoklenova did not name the Turkish company,
Embassy local staff knowledgeable about the industry know
that it was Gap Inshaat -- part of Ahmed Chalik's holding
company, Chalik Group. END NOTE.) The textile industry
pioneered joint venture creation and foreign investment in
Turkmenistan, and today there are many joint ventures
operating in the textile sector. Geoklenova expressed
gratitude for the presence of foreign companies in the
industry, saying that local employees benefited from the
experience. She listed Nautica, Sara Lee, and Hanes among
the American companies carrying the "Made in Turkmenistan"
label. In addition to cotton, a small ministry unit works on
silk production.


4. (SBU) Geoklenova highly values management in the success
of her enterprises, and she personally interviews all
incoming students before assigning them internships. She

ASHGABAT 00001047 002 OF 002


also seeks to pair them, as much as possible, with foreign
experts working in the textile industry. She believes that
it takes five to seven years to develop a professional,
especially because of the difference between the theory one
learns in school and the reality one learns on the job.
Geoklenova thinks young people need more experience with
marketing and management. While students have the
possibility of studying in Turkey and China, she believes
that the students themselves must take initiative in pursuing
overseas education.


5. (SBU) The ministry has three main units. Creative
employees belong to the "Designers Club," and the Experts
Unit maintains equipment. The Technology Unit works on
cotton processing and dying techniques, etc. The ministry is
working on a collection that it will show on National Day.

PRIDE IN TURKMENISTAN


6. (SBU) Geoklenova does not see China as a competitor,
saying that "Turkmenistan has its own place (in the
industry)." She added that Turkmenistan is a compact country
and has its own advantages. The industry focus is on
ready-to-wear and leisure apparel, not couture fashion. She
also did not foresee the implementation of safeguards to
limit exports from China or other countries, saying that "the
free market takes care of this on its own." Geoklenova added
that "our people prefer buying our own fabric," adding that
Turkmenistan makes only natural, "organic," ISO-certified
(International Organization for Standards) fabrics.


7. (SBU) Geoklenova stated that textile factories play an
important social role in the provinces, bringing not only
jobs, but additional infrastructure such as roads and
electrical lines. Connected with this, young people take
pride in working in a good working environment on modern
equipment. Both this technology and exposure to foreign
ideas broadens their horizons.

BY PRESIDENT'S ORDERS...MAKE THIS BETTER


8. (SBU) President Gurbanguly Berdimuhamedov tasked
Geoklenova with preparation of a thorough analysis of sector
impediments by October 13, which will mark the three-month
period since he appointed her to this office. He made it
clear that she is to review any and all bureaucratic
obstacles, in order to remove them and expand international
trade. She added that Berdimuhamedov encouraged the Ministry
of Textiles to cooperate with the Ministry of Economy and
Finance to improve these areas. According to Geoklenova,
Berdimuhamedov wants the industry to work at international
levels, and with the modern factories, excellent technology,
and their labor force, "everything is in place for (our)
success in this industry." With that, she invited DCM to
visit the complexes, and enthusiastically offered to make
arrangements. In addition, she promised that the ministry
would share statistics with the embassy via diplomatic note
request.


9. (SBU) COMMENT: If only due to a marked contrast to
meetings at other ministries, this is a woman to watch.
Dynamic and western-oriented (at least in the business sense,
but also she takes pride in the fact that her son is studying
marketing in London),Geoklenova appears to be someone we can
work with. END COMMENT.
HOAGLAND