U.S. ASSISTANCE COORDINATOR ADAMS' MEETING WITH AGRICULTURE

UNCLAS SECTION 01 OF 02 ASHGABAT 000162

SIPDIS

SENSITIVE

SIPDIS

STATE FOR SCA/CEN (PERRY),SCA/PPD, EUR/ACE

E.O. 12958: N/A
TAGS: EAID EFIN PGOV EAGR ECON ETRD TX US
SUBJECT: U.S. ASSISTANCE COORDINATOR ADAMS' MEETING WITH AGRICULTURE
MINISTER AND WATER MANAGEMENT DEPUTY MINISTER

Summary
--------------


1. (SBU) EUR/ACE Coordinator Adams and delegation heard upbeat
accounts of farming-sector developments from Turkmenistan's
Agriculture Minister, Esenmyrat Orazgeldiyev, on January 31.
Without mentioning recent years' notorious crop shortfalls and other
problems, Orazgeldiyev depicted his sector as being in generally
sturdy shape, though he referred to the "fundamental reforms" that
the March session of the Halk Maslahaty (People's Council) has been
convened to enact. Also present was Turkmenistan's First Deputy
Minister for Water Resources, Myratgeldy Akmamedov, whose long
description of the Great (artificial) Turkmenistan Lake project was
neither fresh nor enlightening, and left questions regarding its
viability. End Summary.

Turkmenistan's Agricultural Sector: Untroubled by Problems
-------------- --------------


2. (SBU) The meeting was the USG's first with a Minister of
Agriculture in over two years (though embassy has regularly
requested meetings). Adams noted that the size of his delegation
demonstrated the level of U.S. interest in finding broader ways to
cooperate with Turkmenistan. Orazgeldiyev welcomed his visitors
heartily and launched into a depiction of the importance and state
of the nation's agriculture sector. The November 2004 Land Code, a
"cornerstone," according to Orazgeldiyev, had been developed to
define legal relations between the cultivator and the government.
Discussing the land law's application to leasing rights for up to
three hectares for private cultivation, the Head of the State
Service on Land Resources, Gurbandurdy Atagarriyev, added that the
law also allowed leases of land for approved non-farming purposes,
but provided for its withdrawal if not properly used. Irrigation
water was another requirement. "We have solved all our problems in
that sphere," the minister claimed. He nimbly touched upon
Turkmenistan's purchases of U.S. tractors and other farm equipment.


But Agriculture Minister Remains Interested in Cooperation
-------------- -


3. (U) Adams noted the recent presidential directives for a new
agricultural strategy, and highlighted several successful U.S.
programs supporting this sector, including Cochran program
fellowships and USAID's Community Connections program, which had two
agricultural-focused programs scheduled this year. USAID Regional
Administrator Chris Crowley noted USAID's existing support for
private agriculture via greenhouse development and the
Farmer-to-Farmer exchange program, and offered that the USG "stands
ready, if you desire, to provide assistance in the broad area of
agricultural policy" under a new agribusiness program scheduled to
launch later in 2007. The minister replied appreciatively: "Our
goal is to strengthen our efficiency. We are very interested in
gaining international knowledge." Without mentioning specifics, he
referred to a number of programs being carried out on rational use
of water and land resources, including desalination and water
recycling.

Altyn Asyr Lake: The Great Hope for Better Water Management
-------------- ---


4. (U) At this point, the First Deputy Minister of Water Resources
took over. Turkmenistan had developed a new Water Code along with
the Land Law, he pointed out. Now, his ministry was working on a
number of projects to improve the efficiency of irrigation and
quality of farmland. A new plastic-pipe factory allowed large-scale
drip irrigation. His ministry was also considering ways of
recycling water used for crop production. This had been called for
by a Niyazov decree in 2000.


5. The deputy minister then segued into a ten-minute lecture,
supported by maps and pointer, on the design and construction of the
artificial Altyn Asyr Lake (in the middle of the Garagum Desert),
complete with references to fish-farms, bridges, railroads, and
plans to develop salt-absorbing plants to clean the water naturally.

ASHGABAT 00000162 002 OF 002


Crowley asked if desalination (industrial) plants were part of the
system. The deputy minister answered that "sand is the natural
filter." Crowley said that the lake's construction seemed to leave
untackled the overall question of managing the supply of good water.
Even once the multi-billion dollar system was in place, there would
be a need for appropriate management so as not simply to continue
leaching. Achieving that aim could be better accomplished via
small-scale private farmers, who could find their own financial
resources, rather than by the central government, Crowley suggested.
Seeming initially baffled at the notion, the deputy minister
answered cheerfully that "the government has all necessary
resources." He then reassured his visitors that "from now on our
ministry is willing to work with you on these (sic) projects."
Adams, concluding, solicited concrete proposals.

Comment
--------------


6. (SBU) The Minister of Agriculture's welcome and openness to
questions during this meeting could hardly have been more cheerful.
Half a dozen times he repeated the mantra that his ministry wanted
to work in any feasible way with outsiders to boost his sector. At
the same time, we perceived a vast reality gap between the picture
he and his colleagues were painting and the notorious actual state
of local agriculture. Next to nothing squared with the dismal
long-term trends which caused Niyazov last autumn to require the
convocation of an extraordinary session of the Halk Maslahaty next
month for the acknowledged sole purpose of laying out a "fundamental
reform" of the sector. Officials were anxious to display that they
were well-disposed to outside expertise and programs, but their lack
of experience in modern agriculture, and devotion to state-run
solutions, demonstrates the low baseline for any real discussion of
agricultural reform. End Comment.

BRUSH