PM MASIMOV DISCUSSES PUBLIC PRIVATE ECONOMIC

C O N F I D E N T I A L ASTANA 003187

SIPDIS

SIPDIS

STATE FOR SCA/CEN M. O'MARA

E.O. 12958: DECL: 11/26/2017
TAGS: PREL ECON KNNP KZ AF
SUBJECT: PM MASIMOV DISCUSSES PUBLIC PRIVATE ECONOMIC
PARTNERSHIP INITIATIVE, KASHAGAN, AFGHANISTAN WITH DAS
FEIGENBAUM


Classified By: POL/ECON CHIEF STEVE FAGIN FOR REASONS 1.4 (B) AND (D)


1. (C) Summary: During a November 20 meeting, Prime Minister
Karim Masimov and SCA DAS Feigenbaum discussed the Public
Private Economic Partnership Initiative (PPPI),Kashagan,
Afghanistan, the Cooperative Threat Reduction Umbrella
Agreement (CTR UA),and the Bota Foundation. Masimov said he
hoped to come to the U.S. in 2008 to inaugurate the PPPI. He
claimed the sides are closer together now on Kashagan. He
noted that Kazakhstan is increasing its assistance for
Afghanistan. He believed a solution would be found to renew
the CTR UA in time. He also asked that the USG move forward
quickly on the Bota Foundation project. End Summary.


2. (C) Prime Minister Karim Masimov told visiting SCA Deputy
Assistant Secretary Evan Feigenbaum during a November 20
meeting that he would like to come to the United States in
2008 for the inauguration of the U.S-Kazakhstan Public
Private Economic Partnership Initiative (PPPI). Feigenbaum
stressed that it would be ideal if Masimov could come in
January or February. The earlier the PPPI was inaugurated
the more sustainable it would be beyond 2008, he explained.
Masimov promised to check his schedule and get back to
Feigenbaum.


3. (C) Deputy Industry and Trade Minister Zhanar Aitzhanova
suggested trying to coordinate the PPPI inauguration with a
signing ceremony for a bilateral agreement on Kazakhstan,s
WTO accession. She admitted that the two countries, WTO
negotiators are still working to narrow differences on
services, particular with respect to the financial sector,
where Kazakhstan has requested a &transitional period.8
Feigenbaum said that given the remaining differences, it
might not be possible to finalize a WTO agreement in time to
link a signing event with a PPPI inauguration.


4. (C) Feigenbaum asked Masimov what would happen next
regarding Kashagan. Masimov claimed that the positions of
the sides are closer together now, and there is still enough
time to conclude the negotiations.


5. (C) Masimov told Feigenbaum that he had met with Afghan
First Vice President Ahmad Zia Masood on November 2 in
Taskhent, on the margins of the SCO prime ministers meeting.
The two sides had agreed that Kazakhstan would allocate
additional assistance to Afghanistan, including for training
for Afghan police officials in Karaganda, Kazakhstan.
Feigenbaum, noting that Foreign Minister Tazhin had discussed
possible road-building projects with Secretary Rice in May,
said that additional assistance to Afghanistan for
road-building would be particularly welcome, since roads
assist the Afghan government in extending its authority into
the provinces. Masimov said he will make his first official
visit to Afghanistan during the Spring of 2008.


6. (C) Feigenbaum told Masimov that the &clock is ticking8
on the renewal of the bilateral Umbrella Agreement (UA) for
Cooperation Threat Reduction (CTR) programs. It would send
a very negative symbol if the USG were forced to suspend the
CTR programs rO*QPqawyers are still working out the necessary waivers
for the U.S. Ambassador to serve on the board of the Bota
Foundation, and are still in the process of reviewing
Kazakhstan,s nominees for the board. Masimov requested that
the USG complete these steps by the end of 2007.


8. (U) Deputy Assistant Secretary Feigenbaum has cleared this
cable.
Milas