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

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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
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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

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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
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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
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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
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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

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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