TURKMENISTAN'S MARY PROVINCE: FARMERS PRO PRIVATE

C O N F I D E N T I A L SECTION 01 OF 02 ASHGABAT 001068

SIPDIS

SIPDIS

STATE FOR SCA/CEN, SCA/PPD

E.O. 12958: DECL: 10/03/2017
TAGS: PGOV PREL ECON EAGR SOCISZX KPAO TX
SUBJECT: TURKMENISTAN'S MARY PROVINCE: FARMERS PRO PRIVATE
FARMING; FLEX ALUMNI READY TO LEAVE

Classified By: Charge Richard E. Hoagland for reasons 1.4 (B) and (D).


1. (SBU) SUMMARY: Farmers in Mary expressed their
disgruntlement with the government cotton-growing and
state-controlled purchasing system, and argued that farming
private land would make farmers more prosperous, during a
recent post visit to the province. Turkish factories appear
to be providing much-needed employment for local citizens and
made a great effort to showcase positive employee-employer
relations. Meetings with FLEX alumni revealed much optimism,
but also a looming reality that most will go abroad again for
higher education, raising the question of whether they will
want to return to Turkmenistan. EconOff also attended an
introductory meeting with First Deputy Governor Khalap Sakhat
(septel),and visited a cotton field where farmers harvested
using John Deere combines (septel). END SUMMARY.

TURKISH-MANAGED FACTORIES SHOW THEIR STUFF


2. (SBU) Accompanied by a minder from the Ministry of
Foreign Affairs and a senior official from the Mary province
governor's office, EconOff visited two cotton factories on
September 28. The Hero of Turkmenistan Gurbansoltan Eje
Factory, which the Turkish company, Engin Group, built in
2005, produces cotton cloth. This cloth is exported partly
to Dubai but primarily to Turkey, where it is then dyed,
printed, and made into clothing. Factory management proudly
highlighted the Belgian Beninger and Picanol weaving
machines. For quality control, they used Guven Chelik
machinery from Turkey. During the tour, managers sought to
underscore the priority the factory puts into employee
relations: the factory runs a series of shuttle buses for
employees, operates a cafeteria for them, provides them with
uniforms, and has also installed a shower and changing room
for for those ending their shift. The Turkish co-director
emphasized his good working relationship with the Turkmen
director.


3. (SBU) The Beyik Saparmurat Turkmenbashy Factory, located
in the "spa" town of Baymurat, produces terrycloth towels for
export to countries such as Russia and Italy. They had a
contract at one point with the Swedish retail chain Ikea, but
did not like working with them because of the need to double
tag and specific display requirements. This factory is fully
integrated, with dying, cutting, and finishing capabilities.

FARMERS STRAIN UNDER STATE CONTROL


4. (C) The head of the Ilkinjiler Farmer's Association, who
hosted a group of six farmers, offered a different view of
life for cotton farmers here than the governor had earlier
that day. Jirin, the association head and an IVLP alumna,
said that she greatly benefited from the month that she spent
in the U.S., and hoped that others would also have such an
opportunity. The conversation, however, grew more serious as
the group expressed its irritation with "government lies"
about the lack of access to international cotton markets for
Turkmen cotton. They also claimed that the state wants to
convince them that it pays farmers via Turkmenpakhta, the
state cotton concern, faster than private commodity buyers
could. They said that even private farmers are forced to
sell cotton to Turkmenpakhta. Regardless, the farmers would
very much like to operate as private farmers, which is not
possible at present because all land belongs to the state.
(NOTE: Currently, the closest thing to private farming is
through dayhans "peasant farms", which are public-private
ventures. END NOTE.) They said dayhan farmers yield cotton
harvest totals of 3,000-3,500 kilograms per hectare, about 30
percent more than government farmers yield at 1,000-1,500
kilograms per hectare. The farmers unexpectedly asked the
officer if they could speak freely, then explained that they
were often visited by Committee of National Security
(KNB)officers after meetings with Embassy staff. They were

ASHGABAT 00001068 002 OF 002


grateful they could meet alone with EmbOff.

FLEX STUDENTS AT THE AMERICAN CORNER: EXCITED ABOUT THE
FUTURE, BUT MOSTLY LEAVING


5. (SBU) A group of six bright FLEX alumni eagerly discussed
their experiences as exchange students with American
families. Many of these alumni graduated from Turkmen
schools after the ninth grade, and -- especially if they had
U.S. high school diplomas -- were not enthusiastic about the
option of returning for the newly re-established tenth grade.
Because there are no job opportunities in Mary, they spend
their time volunteering at the American Corner. One ethnic
Armenian girl plans on attending university in Armenia next
year, after attending prep classes there. Since she only has
nine grades of schooling, her options are limited. Two
alumnae plan to apply to American University of Central Asia
in Bishkek, and are now preparing for the Test of English as
a Foreign Language. Others hope to attend U.S. universities,
or the American University in Bulgaria. One young woman who
is still in school said that her school and others in Mary
will be receiving Internet access in the next month or so.
American Corner Advisor Albina Burashnikova got the alumni
excited when she mentioned President Berdimuhamedov's recent
promise to facilitate the establishment of a U.S. university
branch in Turkmenistan. They are hopeful about
Turkmenistan's future, and felt positive about President
Berdimuhamedov's reforms. They were pleased that someone
from the U.S. Embassy wanted to hear their views.


6. (SBU) Mary's city center is undergoing significant
construction, seemingly to mirror the Ashgabat style of
domed, vaguely-Islamic looking buildings. The names of the
construction companies appeared also to be different than
those currently working all over Ashgabat. This may indicate
that authorities are directing attention to the provinces,
which would be a welcomed step. There are no indications
that the Ministry of Foreign Affairs plans to stop
accompanying embassy officers on their visits to the
provinces, which unfortunately result in very well-staged
events at sites that are visited. The driver, three of the
six farmers at the lunch, and reportedly half of the factory
employees were fasting during Ramadan, which may indicate a
rise in religious observance, or possibly the more
conservative nature of provincial, versus urban, residents.


7. (SBU) COMMENT: This trip was a good opportunity to get
an initial readout on farmer-government relations, as well as
local industry and development progress in the provincial
capital, but the presence of a Ministry of Foreign Affairs
representative at meetings with both local government
officials and factory representatives made it challenging to
get an accurate and honest perspective from interlocutors,
who seemed otherwise positively disposed to talking with an
American official. It was likewise unfortunate to learn that
FLEX alumni may not be an enduring influence in this
developing province, where they have the potential to seed
the workforce someday with skilled and educated candidates
for management. END COMMENT.
HOAGLAND