RISING PRICES AND TIGHTER BORDERS, BUT CONCERNS

C O N F I D E N T I A L SECTION 01 OF 02 BISHKEK 001285 SIPDIS SIPDIS E.O. 12958: DECL: 10/10/2017 TAGS: PGOV PREL KG SUBJECT: RISING PRICES AND TIGHTER BORDERS, BUT CONCERNS ABOUT ISLAMIC EXTREMISM IN SOUTHERN KYRGY KYRGYZSTAN REF: BISHKEK 1270 Classified By: Ambassador Marie Yovanovitch. Reasons 1.4 (b) and (d) ¶1. (C) Summary. During a visit to the southern capitals of Jalalabad and Osh, the Ambassador presided over a U.S.-funded border checkpoint opening, met with students, civic leaders, political parties, and NGOs, honored local religious leaders with an Iftar dinner, and visited the largest hydropower station and dam in Kyrgyzstan. Discussions covered the October 21 referendum on a new constitution (reftel), increases in food prices, as well as concerns by the Jalalabad governor over local Islamic extremism. End Summary. KYRGYZ GRATITUDE FOR BORDER ASSISTANCE -------------- 2.(U) On October 1, The Ambassador presided over the opening ceremony of the Bek-Abad Kyrgyz-Uzbek border checkpoint near Jalalabad. The Ambassador stressed the common fight against terrorism in her remarks, with General Major Zamir Moldoshev of the Border Guard Service, Deputy Director of the Customs Committee Samsaly Suvanaliev, MP Ulukbek Ormonov, and Jalalabad Governor Iskender Aidaraliev strongly echoing this sentiment in their speeches. The Kyrgyz officials also expressed gratitude to the United States for funding the project, while reiterating their commitment to prevent the spread of WMD and fight trafficking-in-persons. The Embassy, through its Export Control and Border Security program (EXBS),provided 470,000 USD to the checkpoint's construction. The Embassy will provide an additional 70,000 USD for computers and other equipment in the coming months. AMBASSADOR HOSTS IFTAR -------------- ¶3. (U) The Ambassador hosted an Iftar dinner for some 30 religious and civic leaders from Southern Kyrgyzstan on October 1. Guests included the Mufti's representative in the South Saipjon ajy Abduvahidov, Jalalabad Oblast Kazy Abibillah ajy Bapanov, and other religious leaders from Jalalabad and Osh. The event was the first time the USG had hosted an Iftar dinner in Jalalabad, and the guests expressed appreciation to the Ambassador for recognizing the importance of the Muslim community in Jalalabad, as well as paying tribute to Ramadan. "This dinner shows the Ambassador's deep respect for Muslims in Kyrgyzstan, and we are grateful for that," Mufti representative Abduvahidov said in his speech during the dinner. ...AND HEARS CONCERNS OVER ISLAMIC EXTREMISM -------------- ¶4. (C) Jalalabad Governor Aidaraliev privately told the Ambassador on October 1 that Jalalabad was facing a significant threat from Hizb ut-Tahrir (HT). According to Aidaraliev, official estimates put the HT presence in Jalalabad at approximately 700, but he claimed their numbers were closer to 2,000. He blamed HT recruiting success on the social and economic crisis facing the south, but dismissed a social-economic approach to solving the problem. Instead he argued a hard-line approach was needed, explaining, "We should kill them, before they kill us." Aidaraliev said many HT members were crossing the border from Uzbekistan and Kazakhstan because there was no "legal prohibition" on HT in Kyrgyzstan. (Note: HT is a banned organization in Kyrgyzstan, and its members have been arrested for distributing HT literature and possessing contraband, to include weapons, grenades, and ammunition. On October 12, Osh municipal authorities also prevented HT members from distributing meals, marking the end of Ramadan, in a public square. End Note.) CONCERNS OVER PRICE HIKES, DROP IN DOLLAR -------------- ¶5. (C) In a series of meetings with the governors of Jalalabad and Osh Oblasts, local NGOs, and political parties (reftel) on October 1 and 2, the Ambassador heard several concerns about rising prices in the south and the falling value of the dollar. Osh Governor Jantoro Satybaldiev blamed this year's bad wheat harvest for rising prices in the consumer food basket and referred to the crisis as one of the biggest problems facing his constituency. He said he was also worried about next year's harvest. Jalalabad Governor Aidaraliev also expressed concern about the rising prices, but placed the blame more on global inflation, singling out price increases in wheat in the United States. Janna Savalaeva, head of the NGO Women Leaders of Jalalabad, criticized the government for not instilling price controls BISHKEK 00001285 002 OF 002 and accused the administration of drawing attention away from this crisis by calling for the October 21 constitutional referendum (reftel). Savalaeva and Alisher Mamazhanov of the NGO Golden Goal said the drop in value of the dollar was also impacting purchasing power in the South. Most remittances from migrant workers are in dollars, they explained, putting further pressure on the dollar as recipients convert them into som. TOKTOGUL: ONE DAM BIG PROJECT -------------- ¶6. (U) While hosting a September 28 tour of the Toktogul hydropower station and dam, the largest in Kyrgyzstan, station director Myrzatay Sultaniev highlighted the enormous potential of Kyrgyz hydroelectric power in the region and expressed concern over low water levels affecting the dam's reservoir. Sultaniev explained low water levels in the reservoir were threatening the dam's irrigation functions, but expressed hope that this 13 year low was merely the result of a "seasonal" effect. Sultaniev said the dam generates electricity and diverts water for irrigation from the Naryn river, supplying power and water throughout Kyrgyzstan and as far north as Russia. Sultaniev also said the GOKG was moving forward with the construction of the Kambarata 1 and 2 dam projects. ¶7. (U) During her visit to Southern Kyrgyzstan, the Ambassador also distributed certificates to high school students who had participated in a USAID-funded Mercy Corps camp in Arstanbob (an up-and-coming tourist destination two hours outside of Jalalabad),visited a USAID-sponsored land reform project headed by President Bakiyev's brother, hosted a roundtable for students and faculty at Jalalabad State University, and met with Jalalabad-based Peace Corps volunteers. YOVANOVITCH