CHINA/SCO ECONOMIC CONFERENCE - FEWER SPEECHES,

UNCLAS SECTION 01 OF 02 BEIJING 006253 SIPDIS SENSITIVE SIPDIS USDOC FOR ITA/MAC/AP/MCQUEEN STATE PASS USTR STRATFORD, WINTER, ALTBACH GENEVA PASS USTR E.O. 12958: N/A TAGS: ECON ECIN ETRD PREL PTER CH ZK SUBJECT: CHINA/SCO ECONOMIC CONFERENCE - FEWER SPEECHES, LOWER RANKS REF: 06 BEIJING 19030 BEIJING 00006253 001.2 OF 002 -------------- SUMMARY -------------- ¶1. (SBU) A September 2007 forum on economic cooperation among members of the Shanghai Cooperation Organization (SCO) had far fewer and lower ranking speakers than the previous year. The SCO Secretary General highlighted China's leading role in deepening friendship, cooperation and mutual economic relationships among the SCO countries while reviewing recent agreements signed by SCO members as well as new relationships established with multilateral organizations. The World Economic Forum's "Davos to Dalian" meeting held several days after the Urumqi conference may have drawn a number of participants away from this year's seminar. End Summary. -------------- -------------- WEAKER CONFERENCE ATTENDANCE, LOWER RANKING OFFICIALS -------------- -------------- ¶2. (SBU) The "Seminar on SCO National Priority Areas of Cooperation" forum on regional economic cooperation held in Urumqi from August 31 - September 2, 2007, had fewer speeches (one three-hour session versus three sessions lasting a total of eight hours in 2006) and lower-ranked representation (Directors and Deputy Directors rather than a former Prime Minister and several Ministers and Vice Ministers). Afghanistan was absent altogether as was diplomatic representation of SCO member countries aside from the Minister Counselor of the Tajik Embassy in China. The forum has in the past provided a unique window into the SCO economic agenda (see reftel). -------------- -------------- LEGAL FRAMEWORK SET, IMPLEMENTATION PHASE REACHED -------------- -------------- ¶3. (SBU) SCO Secretary General Nurgaliyev used his speech to review the recent signing by the SCO's six countries of the "Long-term Good Neighborhood Friendship Cooperation Treaty" at the August 2007 SCO Summit held in Bishek. This treaty covers the protection of property rights, facilities for trade development, investment promotion, technical exchanges, and the protection of the legal rights of individuals engaging in economic activity within the SCO region. ¶4. (SBU) Nurgaliyev said that leaders of SCO member countries at the Bishkek Summit agreed that the "implementation phase" of the SCO economic agenda had been reached. This includes agreement on "demonstration projects" with multilateral participation in energy, transportation and telecommunications. Nurgaliyev did not specify any specific initiatives or funding amounts for such projects. His speech also highlighted the "good prospects" for cooperation with partner countries India, Pakistan, Iran, Mongolia, and Afghanistan. -------------- -- REGIONAL AND INTERNATIONAL ECONOMIC COOPERATION -------------- -- ¶5. (SBU) Nurgaliyev highlighted the SCO's relations with seven multilateral organizations including the Community of Independent States, United Nations Development Program, Organization for Economic Cooperation and Development, ASEAN, Asian Development Bank, and the United Nations Economic and Social Commission for Asia and the Pacific. BEIJING 00006253 002.2 OF 002 He also mentioned Asian Development Bank and UN funding of joint road development and noted without elaboration his "great hope" for the work of the SCO Bank Community and Businessmen Committee. -------------- FOCUS ON BILATERAL ECONOMIC RELATIONS -------------- ¶6. (SBU) No major SCO-sponsored economic projects were announced at this year's forum, and speeches tended to emphasize bilateral relations with China, with scant mention of SCO-based initiatives. M.H. Biyaluofu, Deputy Director of the Kazakhstan Chamber of Industry and Commerce made passing reference to the signing of a series of bilateral agreements between China and Kazakhstan at the Bishek Summit. The Director of the Uzbekistan Foreign Investment Information Security and Promotion Office made no reference at all to the SCO during his speech. -------------- COMMENT -------------- ¶7. (SBU) While trade between China and Central Asia continues to rise, there is no sign that the SCO framework is part of this trend. The SCO has proven a venue for signing numerous bilateral economic agreements, but there has so far been no sign that the forum is lending itself to economic initiatives that actually promote regional economic integration. RANDT