SCO SUMMIT FOCUSES ON ECONOMIC, SECURITY

C O N F I D E N T I A L SECTION 01 OF 03 BISHKEK 001048 SIPDIS SIPDIS DEPT FOR SCA/CEN (GEHRENBECK) E.O. 12958: DECL: 08/17/2017 TAGS: PGOV PREL PTER KDEM KG SUBJECT: SCO SUMMIT FOCUSES ON ECONOMIC, SECURITY COOPERATION REF: BISHKEK 1205 BISHKEK 00001048 001.2 OF 003 Classified By: Ambassador Marie Yovanovitch for Reasons 1.4 (b) and (d) ¶1. (C) SUMMARY: The seventh annual Shanghai Cooperation Organization (SCO) summit in Bishkek August 16 emphasized security and economic cooperation. The formal session produced no surprises, the set speeches were unexceptional, and the summit was mostly free from the anti-American rhetoric of previous summits. As expected, SCO member states signed a friendship and cooperation treaty. The summit's Bishkek Declaration affirmed the role of the United Nations in global security, expressed concerns over the misuse of information technologies, and called for a greater role for SCO countries in stabilizing Afghanistan. The summit did not openly discuss the Manas Coalition Airbase, but Afghan President Karzai reportedly pressed the importance of the base during his bilateral meeting with President Bakiyev. President Putin pledged $2 billion worth of economic support to "worthy" projects in Kyrgyzstan; Kazakh President Nazarbayev welcomed further energy cooperation with members and observers; and Uzbek President Karimov cautioned that Uzbekistan should be consulted on all hydropower developments in the region. Iranian President Ahmadinejad was relatively restrained, calling for closer cooperation with SCO to counter Western "threats." Members, specifically China, Russian, and Uzbekistan, also focused on resolving regional issues internally, within existing SCO structures. END SUMMARY. ECONOMIC GROWTH THROUGH REGIONAL SECURITY -------------- ¶2. (U) The seventh annual SCO summit August 16 in Bishkek emphasized economic growth and cooperation on regional security. At the summit, SCO member states adopted the Bishkek Declaration, which stressed multilateral approaches to security issues. While criticizing unilateral actions to resolve problems, the Declaration endorsed a security structure based on international law which would reflect a "balance of interests," but would also ensure the "independent choice of development" of every country. The Declaration supported cooperation on United Nations reform, prevention of the weaponization of outer space, and the Central Asia nuclear weapon free zone. The Declaration expressed concern over the use of mass information technologies for "purposes incompatible with the objectives of ensuring international stability and security" and called for improved "international information safety." Members praised the SCO Regional Counter-Terrorism Structure, and underscored further efforts to fight terrorism, separatism, and extremism. The Declaration called for increased cooperation to counter the flow of drugs from Afghanistan, and supported economic cooperation with Afghanistan, as well as a more active SCO-Afghanistan task force. In addition, members endorsed closer coordination on energy matters. ¶3. (SBU) The session's formal speeches produced no major surprises. The SCO leaders referred to the fight against terrorism and narco-trafficking as two of the organization's main objectives. Each offered varying levels of support to Afghan stabilization efforts, including humanitarian assistance and economic cooperation. Observer states agreed to provide similar support, with a focus on anti-narcotics and weapons trafficking. ¶4. (SBU) Presidents Nazarbayev and Karimov underlined the importance of energy and shared resources, with the prospect of future cooperation with SCO observers mentioned. Nazarbayev also pointed out that the existing system of BISHKEK 00001048 002.2 OF 003 pipelines with the SCO's territories, linking Russia, Central Asia, and China "lays the foundation for the creation of an SCO Energy Market." Bakiyev and Turkmen President Berdimuhamedov discussed extending gas pipelines through Kyrgyzstan at their bilateral meeting. Karimov said that the proper management of water resources within the region should not be disregarded, citing the disappearance of the Aral Sea, and referring to the need to consult with Uzbekistan on hydropower development in Central Asia. MANAS AIRBASE NOT ON AGENDA -------------- ¶5. (C) While there was no mention in the formal sessions of OEF-related operations out of the Manas Coalition Airbase, President Bakiyev publicly assured President Karzai that Kyrgyzstan would continue to support the shipment of humanitarian cargo to Afghanistan. Invited guest UN Deputy Secretary General Lynn Pascoe (Amcit, please protect) told SIPDIS the Ambassador that he had spoken with Karzai, who said he had "pushed hard" on the importance of Manas Airbase during his bilateral meeting with President Bakiyev. IRAN SEEKS CLOSER TIES WITH SCO -------------- ¶6. (SBU) President Ahmadinejad offered to organize a meeting of SCO member and observer states on energy cooperation. True to form, Ahmadinejad also said that SCO cooperation is the key to preventing "world occupation regimes" and Western powers from using force unilaterally. He added that the "threat" of a missile defense shield extends to all SCO countries, not any one country. Ahmadinejad also stressed the need to fight terrorism, extremism, drug and weapons trafficking. During his meeting with Ahmadinejad -- which was postponed, due to the Iranian delegation's dissatisfaction with the set-up of the room in which they were to meet -- Speaker of Parliament Sultanov said that Iran could support Kyrgyzstan's development fund and invest in development efforts around Lake Issyk Kul. Ahmadinejad vowed to send additional delegations to Kyrgyzstan, to work out the details, and to discuss further investment in Kyrgyzstan's light bulb industry. CULTURAL EXTRAVAGANZA: BACK IN THE USSR -------------- ¶7. (C) The summit ended with a lengthy cultural show in the newly refurbished Philharmonia which was heavy on Soviet era symbolism. Each of the member countries brought in top-flight acts of popular artists, with former Soviet Union members bringing in artists popular in the Soviet era. Even the Ukrainian ambassador (seated in the back row of the balcony along with the rest of the diplomatic corps) was swooning at all the stars from his youth. Goose-stepping Kyrgyz military proclaiming "Unity is our Strength" could have stepped out of a May Day parade. COMMENT: A JOB SEEMINGLY WELL DONE -------------- ¶8. (C) It appears the Kyrgyz did a great job as host, with all public events well organized and internal security controls properly handled. State TV covered the entire day live, with segments of the summit's extended session covered during evening reports. Bishkek's normal operations seemed unhindered, despite the traffic restrictions, and opposition groups upheld their promise to refrain from holding demonstrations. In fact, we're told that the first toast at lunch was Kazakh President Nazarbayev lauding President BISHKEK 00001048 003.2 OF 003 Bakiyev,s "courage" for holding the Summit, when several months ago all the others had thought Kyrgyzstan was not sufficiently stable to pull the event off. ¶9. (C) While it is too early to determine what the SCO's declaration and signed agreements will bring, the concentration on energy and security matters is a welcomed step forward as the organization continues to define itself. Leaving the Manas Airbase off the formal agenda was also welcome, as was President Bakiyev's statement of support to Afghanistan. SCO leaders have now moved on to Russia to observe the conclusion of the SCO joint military exercises, with indications that there may be a supplemental SCO statement issued there on security. YOVANOVITCH