Identifier
Created
Classification
Origin
07BAKU321
2007-03-16 13:59:00
CONFIDENTIAL
Embassy Baku
Cable title:  

PRESIDENTIAL ADVISER WITHDRAWS OFFER ON NEC SITE

Tags:  ABLD AMGT PREL AJ 
pdf how-to read a cable
VZCZCXYZ0028
PP RUEHWEB

DE RUEHKB #0321/01 0751359
ZNY CCCCC ZZH
P 161359Z MAR 07
FM AMEMBASSY BAKU
TO SECSTATE WASHDC PRIORITY 2624
C O N F I D E N T I A L BAKU 000321 

SIPDIS

SIPDIS

DEPARTMENT FOR OBO; ALSO FOR EUR DAS BRYZA, EUR-IO/EX
DIRECTOR CAMPBELL

E.O. 12958: DECL: 02/27/2012
TAGS: ABLD AMGT PREL AJ
SUBJECT: PRESIDENTIAL ADVISER WITHDRAWS OFFER ON NEC SITE
AT GENETICS RESEARCH INSTITUTE, REAFFIRMS PRESIDENT'S
COMMITMENT TO PROVIDE FREE LAND, SHOWS NEW SITES

REF: BAKU 288

Classified By: Ambassador Anne E. Derse, reasons 1.4 b and d

C O N F I D E N T I A L BAKU 000321

SIPDIS

SIPDIS

DEPARTMENT FOR OBO; ALSO FOR EUR DAS BRYZA, EUR-IO/EX
DIRECTOR CAMPBELL

E.O. 12958: DECL: 02/27/2012
TAGS: ABLD AMGT PREL AJ
SUBJECT: PRESIDENTIAL ADVISER WITHDRAWS OFFER ON NEC SITE
AT GENETICS RESEARCH INSTITUTE, REAFFIRMS PRESIDENT'S
COMMITMENT TO PROVIDE FREE LAND, SHOWS NEW SITES

REF: BAKU 288

Classified By: Ambassador Anne E. Derse, reasons 1.4 b and d


1. (C) SUMMARY: Ali Asadov, Economic Advisor to the
Azerbaijani President, informed DCM March 14, that due to
extensive, but ultimately unsuccessful efforts to resolve
opposition to the GOAJ's offer to provide a site at the
Genetics Research Institute (GRI) for the New Embassy
Compound (NEC),the GOAJ reluctantly was forced to withdraw
the offer of that site. However, he reaffirmed President
Aliyev's personal commitment to offer - for free - comparable
sites that meet the Department of State's criteria for the
New Embassy Compound. He promised that the GOAJ would offer
"even better sites." He also said that the GOAJ was very
aware that the USG had spent substantial amounts of time,
energy and resources in assessing the site at the Genetics
Research Institute, and would accordingly look at ways to
compensate the United States as the NEC project develops.
Asadov said he would personally show DCM any new sites, all
of which will have been personally vetted by the President
and the GOAJ so that the "mistake" that happened in the
previous offer would not be repeated. Asadov said that the
President had instructed him to take charge of this issue
until it reaches a successful conclusion. DCM told Asadov
that this was very serious news, which he would report
immediately to Washington, and he said that the way forward
would likely be very difficult. At the same time, he
expressed deep appreciation for the President's personal
involvement and commitment on the NEC project, and his
generous offer of free land for the NEC. On March 15, Asadov,
accompanied by the State Property Committee Chairman and a
phalanx of bureaucrats, showed DCM and Embassy team two new
sites. As painful as this process has been, we believe that
the President is embarrassed by the developments on the GRI
site, and is sincerely committed to offering us an excellent
and free site. Importantly, he has assigned one of his senior

aides to bring the project to a successful conclusion. We
would like to take advantage of the GOAJ's offer of free land
and its interest in recouping from the GRI setback. We would
like to work with OBO to find a way forward. End Summary.



2. (C) Ali Asadov, Economic Advisor to the Azerbaijani
President, informed DCM March 14, that due to unsuccessful
efforts to resolve domestic opposition to the offer to
provide a site at the Genetics Research Institute, the GOAJ
very reluctantly was forced to withdraw that offer. DCM asked
Asadov if his statement was the official notification from
the GOAJ. He said yes, that he had met with President Aliyev
that same day on this matter, and this represented the
official word. Asadov said that the Genetics Research
Institute issued a final statement opposing the transfer of
the property for the NEC site on March 12. However, he
reaffirmed the President's personal commitment to offer - for
free - an excellent site for the New Embassy Compound. Asadov
promised that the GOAJ would offer "even better sites." He
also said that the GOAJ was very aware that the USG had spent
substantial amounts of time, energy and resources in
assessing the site at the Genetics Research Institute, and
would accordingly look at ways to compensate the United
States as the NEC project develops. Asadov said he would
personally show DCM any new sites, all of which will have
been personally vetted by the President and the GOAJ so that
the mistake that happened in the previous offer would not be
repeated. Asadov said that the President had instructed him
to take charge of this issue until it reaches a successful
conclusion. DCM told Asadov that this was very serious news,
which he would report immediately to Washington, and he said
that the way forward would likely be very difficult. At the
same time, he expressed deep appreciation for the President's
personal involvement and commitment on the NEC project, and
his generous offer of free land for the NEC.


3. (C) Asadov said the GOAJ has reviewed a listing of 8
possible properties and that the President himself has
selected the two best properties to offer for the US Embassy
site. DCM emphasized that, given the many criteria for an
appropriate NEC site, we would like to see the entire list of
eight properties. Asadov said that would be no problem. DCM
also asked whether official offers of sites would come
through Asadov or through Kerem Hassanov, the Chairman of the
State Property Committee. Asadov said that Hassanov was a
government official and would continue to be involved on
matters involving his committee, but that Asadov would make
all the offers himself. Asadov stated repeatedly that the
problems that occurred with the GRI offer would not happen
again. March 15 Asadov, accompanied by the State Property
Committee Chairman and a phalanx of bureaucrats, showed DCM


and Embassy team two new sites. (Note: We will forward
detailed information about these sites directly to OBO for
its reference.)


4. (C) COMMENT: Embassy pressed at every level, from the
President down (see reftel),to keep the Genetics Research
Institute site on track for the NEC. For his part, President
Aliyev, by several accounts, went to great lengths to
overcome opposition to the GRI site offer, including
promising a new building, equipment and funds for the
Genetics Research Institute so that it would be the best
institute of its kind "in the region." However, it is clear
that the President was under tremendous political pressure -
extending far beyond the objections of scientists in the
National Academy of Sciences - to withdraw this offer. We
believe that the presidential offer of free land for the NEC
merits our continued engagement and that the GOAJ's obvious
concern to recoup successfully from the GRI development and
hands-on management from the President's office will spur
efforts to bring this to conclusion. Over the next week or
so, we will be able to gauge whether the President's
commitment translates into excellent and concrete offers, and
quick provision of a conditional lease. Given the President's
personal commitment and their embarrassment for having had to
withdraw the GRI offer, we may now, ironically, be in the
best position ever to impose whatever conditions and demands
we feel necessary regarding the new site. DCM made clear to
Asadov and State Property Committee Chair March 15, for
example, that the starting point/starting point for even
considering a new site would be a signed conditional lease on
every prospective property from the GOAJ. Both Asadov and
the State Property Committee Chair said that would be no
problem. They appear to be making every effort to meet our
needs. End comment.


SUMMARY OF RECENT MEETINGS ON GRI SITE



5. (SBU) The Embassy hosted the OBO expert team February
21-March 2, led by OBO Project Manager Tom Swartz, to follow
up on the successful evaluation in fall 2006 of the property
offered as a gift to the USG by the GOAJ on the site Genetics
Research Institute, one of three potential sites offered.
Although the GOAJ did not sign a conditional lease in advance
of the visit, the President of the National Academy of
Sciences (NAS) provided the Ambassador with a letter granting
access to the site for the OBO team. The GRI Director
strongly voiced his opposition to the NEC project, but the
team was able to make multiple visits to the site, and was
able to accomplish the main goals of its visit to Azerbaijan,
both on- and off-site. On February 23, after an initial
meeting with the NAS President and the GRI Director, the OBO
core team, accompanied by DCM, Management Officer and Public
Affairs Officer, visited the GRI site. GRI Director provided
a tour of the entire area, including the GRI grounds not
offered as part of the site, then met the team in his office.
OBO team members made several more visits to the site. On
March 1, Swartz and his core team gave an out-brief to the
NAS President and the GRI Director. For the first time, NAS
President and GRI Director showed apparent acceptance of the
GOAJ decision, and a willingness to engage constructively in
identifying key areas of concern about the flora on the NEC
site, and steps that should be taken to protect the flora, as
well as to support the further development of the GRI. Both
GRI Director and NAS President agreed that a presidential
decree, addressing the NEC issue but in the context of GOAJ
commitments to supporting the GRI's further development,
would be extremely helpful; they asked us to convey this
message to the GOAJ. (Note: When DCM informed Asadov March 9,
Asadov was annoyed, saying that in fact he had offered to the
NAS and GRI that the GOAJ issue a broad presidential decree
covering government support for the scientific community in
general, with specific reference to the GRI.)


6. (C) On February 26, the Ambassador, accompanied by OBO
Project Manager Tom Swartz and her Embassy team, met with
Asadov and Kerem Hassanov, Chairman, State Committee for the
Management of State Property. (Note: According to Asadov,
President Aliyev specifically asked him to meet directly with
the Ambassador to discuss the NEC issue.) The Ambassador
opened the meeting with a statement affirming the positive
strategic relationship between the United States and
Azerbaijan, as confirmed by recent high-level visits,
President Aliyev's own statements, and Secretary Rice's
recent letter affirming the US interest in strengthening the
US partnership with Azerbaijan. She cited President Aliyev's
offer of a free site as an appropriate and much-appreciated
symbol of the good relationship between our countries. In


fact, she noted, the NEC is needed not only for reasons of
improved security, but because the Embassy has grown so
rapidly in response to the developing partnership between our
two countries.


7. (C) This offer was particularly welcome, she added,
because the USG has been looking for a NEC site since 2003
and has now examined over 50 sites, brought in four different
OBO teams and spent almost $800,000 in the search. However,
there is competition for limited funds and Washington may
well turn its attention elsewhere if if we are unable to move
ahead on the GRI site. The Ambassador expressed appreciation
for the important research carried out by the GRI and our
sympathy for the impact we might have by building on a
portion of its land. She underscored, however, that the USG
would do everything legally possible to mitigate any problems
the NEC construction might cause, pointing out that the
United States also has a strong interest in environmental
preservation, biodiversity and plant research. The
Ambassador summarized her statement by stating that the US
wants to make the construction of the NEC positive for the
United States, the GOAJ and the GRI, and listed some of the
things that the OBO team indicated we might be able to do:
relocate the water system; relocate the heating plant; move
top soil and plants; provide improved access and roads; and
bring in US scientists to work with GRI staff to make sure
that everything was properly done to minimize the impact on
the GRI,s ongoing research efforts. Once again, she
emphasized that given budgetary deadlines, time is of the
essence in moving to finalize agreement on the new NEC site.
Tom Swartz added that he and his team were here to develop a
project budget and would be pleased to meet with GRI staff to
determine what needed to be done to mitigate the impact of
NEC construction. He would then incorporate those costs into
the NEC budget.


8. (C) Ali Asadov thanked the Ambassador for her statement
and said that President Aliyev had received the Ambassador's
February 19 letter and had instructed him to resolve the
issue. He asked if the Ambassador was willing to consider
other locations (mentioning in particular an 11-hectare site,
no further description given),or whether the United States
is only interested in the GRI site. The Ambassador replied
that it would be very difficult to convince Washington to
look at yet more sites given the long and unsuccessful
history of our search for a suitable site in Azerbaijan and
that we are hoping the GOAJ will continue to work with us on
the GRI property. Asadov said that he would proceed to work
only on the GRI site. He added, however, that there were
problems with the site, but that they were internal and would
need to be worked out by the GOAJ. The Ambassador noted that
we had met with the GRI and the National Academy of Sciences
to hear their concerns. She added that we also informed them
that we want to be good neighbors with GRI and are prepared
to do everything legally possible to make construction of the
NEC a positive experience for them.


9. (C) The meeting broke up briefly so Asadov could take a
call from President Aliyev. Afterwards, Asadov explained that
he had told the President of our wish to continue with the
acquisition of the GRI site. The President had expressed his
worries that the opposition of the GRI and the academic
community would result in negative publicity, but was willing
to proceed in any case. Asadov also expressed personal
worries about negative publicity. (Note: Since this meeting,
at least four articles have appeared in the Azerbaijani press
presenting the GRI side of the story, but without strong
criticism of the USG.) The Ambassador repeated our interest
in working cooperatively with the GOAJ to reach a positive
outcome and get the positive message out to the public.
Asadov promised to inspect the property later the same day
in order to provide President Aliyev with more precise
information. He promised to arrange a meeting between the
OBO team and the GRI staff by February 28 or March 1. The
meeting took place March 1.


10. (C) As a follow-up to this meeting, the Embassy NEC team,
led by DCM, met with Asadov on March 5 and March 9. In both
meetings, Asadov strongly pressed for the USG to look at
other properties, and emphasized the difficulties in managing
opposition by the Azerbaijani scientific community. Asked if
this meant the GRI site was officially off the table, Asadov
stopped short of saying that the GOAJ was withdrawing its
offer of the GRI site, and agreed to proceed on parallel
tracks, moving ahead on the GRI site, while agreeing to look
at other sites offered by the GOAJ that meet our
requirements. DCM emphasized that even as we would look at
other sites, as requested by GOAJ, the consequences for the
NEC project if the GRI site were withdrawn, could be serious.


In the March 9 meeting, Asadov outlined the various
assurances the GOAJ had given the GRI, including the offer of
additional land on an adjacent site, refurbished or new
facilities, and equipment. (Note: Asadov was both annoyed and
bemused when DCM pointed out that the GRI Director had
suggested that we build the NEC on this adjacent property,
which is not large enough for a NEC, and is any case not
property of the Institute.) Asadov also said in exasperation
on March 9 that he himself is unable to comprehend what is so
special in scientific terms about the land being offered to
the USG, showing snapshots of the property. Separately, the
DCM and Embassy team have met three times with the President
of the National Academy of Sciences President and the
Director of the Genetics Research Institute, and a fourth
time with the GRI Director at the Institute itself. OBO
representatives attended two of those meetings.


11. (C) The OBO expert team visit overall went well, and the
March 1 meeting with the NAS President and GRI Director
seemed to indicate a positive way forward. In the
Ambassador's February 27 meeting with President Aliyev (ref
A) he indicated clearly his willingness to proceed on the GRI
site, working in cooperation with the USG to address GRI
concerns and secure a positive outcome for all sides. In
other conversations, with Minister of Economic Development
Heydar Babayev on March 10 and Foreign Minister Elmar
Mammadyarov on March 9, both advised that the USG should
continue to work on the GRI site, saying GRI opposition is
aimed at securing more "grants" or subsidies in exchange for
the property they will relinquish. The February 26 meeting
with Asadov had reaffirmed the GOAJ and President Aliyev,s
personal commitment to provide the GRI site for the NEC
project, but highlighted the GRI,s continuing opposition to
the plans, and GOAJ nervousness about fall-out from the
decision. The GOAJ purported to be worried that the GRI and
the academic community will protest and use the
pro-opposition media to criticize the decision, but it seems
clear that powerful political interests are opposed to the
GOAJ's providing this site.



DERSE
DERSE