BOUCHER DISCUSSES CENTRAL ASIA WITH EU

C O N F I D E N T I A L SECTION 01 OF 04 BRUSSELS 001548 SIPDIS SIPDIS E.O. 12958: DECL: 05/08/2017 TAGS: PGOV PHUM PREL ZK SUBJECT: BOUCHER DISCUSSES CENTRAL ASIA WITH EU BRUSSELS 00001548 001.4 OF 004 Classified By: USEU Political Minister Counselor Larry Wohlers for reasons 1.4 (b) and (d). ¶1. (C) SUMMARY: On April 16, Assistant Secretary for South and Central Asian Affairs Richard Boucher led the U.S. delegation to the COEST (the EU's Eastern Europe and Central Asia Working Party) troika on Central Asia. Throughout the German EU presidency, the EU has expressed a growing interest in Central Asia. During the troika, the EU stressed that it is committed to the region for the long-term. Recapping the Astana Ministerial the EU held with all five Central Asian countries, EU interlocutors told Boucher that the Central Asian states do not wish to be seen as a problem and emphasized their ability to work with one another. Discussions revealed the ongoing need to address issues of corruption and democratic reform in the region, but also revealed improvements, such as positive signals coming out of Turkmenistan and regional economic integration in Tajikistan. END SUMMARY. Regional Issues: Central Asia: "We are not a problem." -------------- -------------- ¶2. (C) Throughout the German EU presidency, the EU has expressed a growing interest in Central Asia. The German presidency is currently drafting a strategy paper on the future of relations between Central Asia and the EU, which will be finalized on or about June 21/22. German Special Envoy for Commonwealth of Independent States countries Hans-Dieter Lucas told Boucher the strategy would focus on seven elements: 1.) a regular, structured dialogue at the Minister and Foreign Minister-level; 2.) education (with an emphasis on higher education and training); 3.) rule of law; 4.) human rights (the EU is striving to have a structured human rights dialogue with each of the five countries); 5.) economic development (with an emphasis on trade, investment, and support for World Trade Organization accession); 6.) energy (with an emphasis on developing a harmonized regulatory framework, transport, and an enhanced energy dialogue); and 7.) environmental and border issues, with an emphasis on regional water management and domestic security (including issues of drug trafficking, organized crime, and illegal immigration). The report is currently being discussed by the Member States' Political and Security Committee (PSC). �00A;¶3. (C) EU Special Representative for Central Asia Pierre Morel told Boucher the Astana Ministerial was "very useful" and would become a yearly event. The Central Asian states sought to send the message that "we are not a problem," contrasting their successes with troubles in the Caucasus, and emphasizing their willingness to work together. EU interlocutors stressed that the EU is committed to Central Asia for the long term. The European Commission has allocated 750 million euros in assistance over the next seven years, and the European Investment Bank will receive a mandate for "soft lending" in the region to the tune of 400 million Euros. Boucher applauded the EU's financial commitment and added that he hoped bilateral Member State assistance would continue to expand as well. ¶4. (C) Building on the German presidency's momentum, Morel said the Portuguese Ambassador in Russia would be Lisbon's coordinator for Central Asia under the Portuguese presidency and that good groundwork with the Portuguese and Slovenians had begun. He also stressed the French presidency in 2008 would give Central Asia the same priority as the Germans. ¶5. (C) Speaking on Kazakhstan's World Trade Organization accession progress, European Commission Head of Unit for Southern Caucasus and Central Asia Victor Maldonado noted that the EU was committed to helping Kazakhstan, but had not yet finalized negotiations. Boucher added that the USG was exploring whether it can use the Asian Development Bank,s Central Asia Regional Economic Cooperation program and said the Japanese will be in Washington in May for discussions on Central Asia. Boucher invited the EU to participate in the discussions with the Japanese. ¶6. (C) On Afghanistan, EU interlocutors reported the Central Asians were fairly pessimistic. At the Ministerial, the Central Asians stressed to the EU that they did not want to be treated only in relation to Afghanistan. Kazakhstan, in particular, complained that it had been excluded from coalition reconstruction tenders in Afghanistan. Boucher BRUSSELS 00001548 002.5 OF 004 mentioned Ambassador Neumann was going to Central Asia to talk to leaders about their concerns. Boucher agreed to look into the Kazakhs' concern, but said he was not aware of any rule specifically excluding them from the tender process. ¶7. (C) Boucher also used the troika to brief EU interlocutors on Assistant Secretary Sullivan, Deputy Assistant Secretary Bryza, and Principal Deputy Assistant Secretary Mann's trip to the region to discuss trans-Caspian gas. He also briefed them on progress on the Tajik-Afghan bridge and the possibility of transporting electricity from Tajikistan to Afghanistan. Turkmenistan: Real opportunity for positive change -------------- -------------- ¶8. (C) EU interlocutors shared Boucher's assessment that there is a real opportunity for positive change in Turkmenistan following the death of President Niyazov. All parties were cautiously optimistic but noted that the country would need to undertake major reforms, particularly in the areas of freedom of the press and human rights. On energy, the EU expressed interest in Turkmenistan's emerging relationship with Azerbaijan and interest in Russia's potential response to increased Chinese investment. ¶9. (C) Maldonado said the European Commission will send four education experts to Turkmenistan in the next several weeks and noted five million euros have been earmarked in this year's budget for programs in good governance, economic reform, and promotion of civil society. In May, the Commission will send a technical mission on energy to the region and hold a seminar to discuss issues including higher education and the internet. Uzbekistan: EU urges engagement -------------- ¶10. (C) The German presidency appears to be pushing to soften the EU,s position on Uzbekistan. In the troika, Lucas stressed the importance of continuing to work with Uzbekistan, claiming, "if we just leave them alone because they are a nasty country, they will continue to be a nasty country." Lucas said Uzbekistan has agreed to a "results-oriented" human rights dialogue with the EU. He added that the Uzbeks had showed "growing confidence" during EU-Uzbek talks on Andijon and claimed that overall EU experts were "satisfied" with the two rounds of Andijon talks and did not feel a third round was necessary. EU interlocutors told Boucher the EU,s decision May 14 regarding whether to ease sanctions would take into account their assessment of both the Andijon talks and the human rights dialogue. Morel was slightly less optimistic than Lucas but suggested there were signals that Uzbekistan might be ready to make some gestures ahead of the sanctions decision. On the other hand, Maldonado noted Uzbekistan,s problems with its neighbors, illustrated by the fact the Uzbeks have still not signed the Action Plan with the EU in the framework of the European Neighborhood Policy. Maldonado added that the Commission has reduced its assistance to Uzbekistan to three million euros this year but is still having problems implementing the programs that money is intended for. Boucher strongly urged interlocutors to base their decision regarding sanctions on real progress by the Uzbeks, rather than just talk. Kazakhstan: "Anchor of stability" -------------- ¶11. (C) Lucas agreed with Boucher's positive assessment of Kazakhstan, describing it as the "anchor of stability" in the region, in part, due to President Nazarbayev's leadership. Lucas said a Kazakhstan Organization for Security and Cooperation in Europe chairmanship would be useful for the Organization,s role in Central Asia and all former post-Soviet countries, but stressed that the EU always tells Kazakhstan they must make their case for chairmanship through actions. On human rights, EU interlocutors noted Kazakhstan is "not a paradise." ¶12. (C) The Commission has earmarked 12 million euros/year for the next seven years in assistance for Kazakhstan. Commission assistance will focus on economic reform, with an emphasis on the energy sector. Morel noted that Kazakhstan was eager to move away from assistance and into "partnership" programs instead, which while positive for the EU,s budget BRUSSELS 00001548 003.4 OF 004 would require careful political management. Interlocutors also told Boucher that while Kazakhstan welcomes Chinese investment, it is wary of Chinese immigration as a result. Kyrgyz Republic: Deteriorating political situation and creeping "Islamization" worry EU -------------- -------------- ¶13. (C) Lucas and Morel expressed concern that if the political situation continues to deteriorate in Kyrgyzstan, others in the region may draw the conclusion that the closer a country moves toward democracy, the more unstable it becomes. Morel told Boucher he met with President Kurmanbek Bakiyev in mid-March, and that Bakiyev seemed fairly pleased with himself for having outplayed the opposition. Morel sensed that there was a credible growing opposition movement led by former Prime Minister Kulov, but that Kulov was more interested in overruling Bakiyev than he was in leading the charge for constitutional change. Pushing Kulov forward, Morel said, is former Interior Minister Omurbek Suvanaliyev. According to Morel, Suvanaliyev recently claimed he could influence 40 percent of the country's secret police forces. Morel expressed concern that Suvanaliyev and Kulov have strong ties to Moscow and had made several secret trips. Morel said the opposition was dismissing Bakiyev's appointment of opposition leader Almaz Atambayev to the role of Prime Minister as a "pawn." Boucher stressed the need for a coordinated message pressing Kyrgyzstan to settle down (not exploiting the current uncertainty for short term gain),to revise the constitution, and to move on. ¶14. (C) Although the Parliament is largely outdated, Morel conceded that at least there is one in place. Morel expressed deep concern over the "creeping Islamization through social pressure," noting that women were being paid to wear the hijab and citing the recently proposed legislation legalizing polygamy. Bakiyev joked about the proposed legislation, but did nothing to block it. The legislation was later blocked by the Parliament. ¶15. (C) On assistance, Maldonado told Boucher there would be an 80 percent increase in assistance, totaling 40 million euros a year. Commission assistance will focus on rural development, the social sector, energy, and political infrastructure and transparency. Boucher briefed EU interlocutors on our progress preparing a Millennium Challenge Account threshold program for the country. ¶16. (C) On hydro power, EU interlocutors shared Boucher's assessment that the Kyrgyz do not have a plan and expressed doubt that the project might become a "white elephant." Boucher stressed the need for the Kyrgyz to reform the energy sector first. Tajikistan: Cautiously optimistic -------------- ¶17. (C) EU interlocutors generally shared Boucher's assessment and were cautiously optimistic about Tajikistan, but agreed that issues of democratic reform and corruption continue to plague the country. Lucas relayed that the Tajiks are nervous about political idealization from Afghanistan. Lucas also expressed concern over drug trafficking. Lucas said that border control and drug trafficking would be "stepped up" in the new EU strategic framework, with an emphasis on better coordination with all regional players, including Russia. Maldonado told Boucher there would be a $14-15 million euro increase in the regional border management program. ¶18. (C) The Commission told Boucher it would spend 17 million euros per year on rural development, agriculture, land reform, and public finance management (linked with an anti-corruption campaign) during the next programming period. Two Commission programs were closed, however, due to corruption. ¶19. (C) Lucas agreed with Boucher that the lack of democratic reform continues to be a problem. EU interlocutors stressed the need to make clear to the Tajiks that the OSCE must be allowed to do its job, and said the litmus test for democratic reform would be the state of non-governmental organizations. Nonetheless, Lucas said that Tajikistan seems to be moving in the right direction and appears to maintain a lively civil society. BRUSSELS 00001548 004.2 OF 004 ¶20. (C) Morel commented that President Rakhmon seemed to be confident and in good shape, but that his presidency was not necessarily leading to the desired democratic reform. Morel said he was impressed with a recent meeting with Moheyuddin Kabiri and that Kabiri was focused on doing everything possible to be successful in the next parliamentary elections. Morel commented that while Kabiri plays a moderate, "nice guy," he continues to maintain a link with the "tougher parts" of the Islamic Renaissance Party. ¶21. (C) Lucas noted with interest the increased role of China in Tajikistan, and growing apprehension from Moscow that it was losing influence. Future U.S.-EU discussions: Islamic tendencies in region? -------------- -------------- ¶22. (C) Consistent with concerns raised in COEST Troika discussions on the South Caucasus and Black Sea region, the EU requested that Islamic tendencies in the region be added to the next COEST Central Asia agenda. Boucher said he would first want to discuss the issue with USG experts. ¶23. (U) This cable has been cleared by the Bureau of South and Central Asian Affairs. Gray .