DFM LOSYUKOV ON THE SCO, SIX-PARTY TALKS,

C O N F I D E N T I A L SECTION 01 OF 02 MOSCOW 002205 SIPDIS SIPDIS E.O. 12958: DECL: 05/11/2017 TAGS: PREL PARM MNUC KNNP KN IR AF RS SUBJECT: DFM LOSYUKOV ON THE SCO, SIX-PARTY TALKS, AFGHANISTAN, JAPAN AND IRAN Classified By: Ambassador William J. Burns. Reasons 1,4 (B/D). ¶1. (C) Summary. In a May 10 meeting with the Ambassador, DFM Losyukov promised "no surprises" at the Bishkek Shanghai Cooperation Organization summit--no membership enlargement, nor any demand for U.S. base withdrawal from the region. He predicted an SCO proposal for engagement in Afghanistan, and said a Russian decision to forgive Afghanistan's debt will require a few more months. Losyukov expressed displeasure with the Six-Party Talks' slow progress and the U.S. "negotiating style." He suggested a more transparency and parity in the process. Losyukov reported little progress in the Russia-Japan territorial issues, but noted more congenial tone in the two foreign ministers' May 3 meeting. He previewed his travel to Iran next week and said that he did not plan to engage in nuclear issues. End summary. --- SCO --- ¶2. (C) In a May 10 meeting, Deputy Foreign Minister Losyukov assured the Ambassador that enlargement would not be on the agenda at the August Bishkek SCO summit. Although the organization should remain open to further expansion, the GOR is "not enthusiastic" about enlargement at this point. Losyukov assured the Ambassador that nothing on the order of the surprise 2005 summit statement calling for the closure of U.S. bases in Central Asia was on the agenda this time around. The GOR hopes to energize the organization when it takes over the chairmanship in 2009. Despite some concern about political turmoil in Kyrgyzstan, the summit will proceed in Bishkek as planned. -------------- Afghanistan -------------- ¶3. (C) DFM Losyukov said that Shanghai Cooperation Organization (SCO) members are concerned with the deteriorating situation in Afghanistan and are likely to propose SCO engagement during the Bishkek summit. The Ambassador emphasized the need for more U.S.- Russia cooperation in Afghanistan, particularly in counter-narcotics efforts. Losyukov agreed on the need for more U.S.-Russia cooperation, but noted that coalition countries had failed to create stability in Afghanistan and it was now time for other countries, such as Russia, China and India, to get involved. He thought that instability in Afghanistan would have a direct impact on Central Asia and, ultimately, Russia. The GOR understands the Afghan leadership's close relationship with the U.S. but there are other potentially useful forces, he said. ¶4. (C) Losyukov noted, as a hopeful sign, that Afghanistan is on the agenda at a series of high-level meetings --the June G8 summit and the early-July Italian Ministerial, and promised to urge FM Lavrov's participation in the latter to which, the Ambassador noted, the Secretary is already committed. The Ambassador urged Russia to move forward on the Afghan debt forgiveness, and to encourage more Russian economic and commercial engagement in Afghanistan. Losyukov understood that the debt issue was an impediment to Russian businesses in Afghanistan and complained of the deliberate pace of the Finance Ministry. He thought debt forgiveness would be resolved in "a few more months." -------------- Six-Party Talks -------------- ¶5. (C) Losyukov told the Ambassador that the GOR is waiting for the resolution of the financial dispute between the U.S. and North Korea. He was personally irritated by the lack of full cooperation among the Six-Party countries and the lack of parity among the members. He was unhappy with the U.S.'s negotiating style, which he characterized as dealing only with North Korea, until the U.S. hits a roadblock, then appealing for help to Russia. The GOR was particularly displeased to learn from the North Koreans about secret bilateral contacts, not from the U.S. The GOR cannot cooperate if it does not know what is going on, he said. The Ambassador expressed displeasure at Losyukov's public criticism of the U.S., which he said does not exactly encourage closer coordination, Losyukov blamed the media. He alleged that even the Chinese who, according to him, had been always more enthusiastic than their Russian counterparts, have begun to sound a note of disappointment with the negotiations. According to Losyukov, one or two Russian banks are willing to be a conduit for the "tainted" money, but the GOR has warned them not to get involved without a U.S. guarantee of no future retaliation. MOSCOW 00002205 002 OF 002 ¶6. (C) The GOR agrees with China that if the current financial dispute is resolved, Six-Party participating countries should give North Korea a chance to meet its obligations instead of convening another round right away. In the same vein, a Ministers' meeting should be called only after the North has fulfilled its February 13 obligations in order to avoid a "pointless" meeting where the ministers would try to solve the same problems that have dogged the plenary sessions. -------------- Japan -------------- ¶7. (C) According to Losyukov, Japanese Foreign Minister Aso's May 3 visit was too brief to produce substantive results. There was no meeting with President Putin and only a short session with Foreign Minister Lavrov. The only notable change was the tension-free, friendly tone between the two foreign ministers. Losyukov termed the Russo-Japanese relationship "good," although colored, as always, by the territorial issue. He thought that the public mood in both countries, not conducive to a swift resolution, would only prolong the issue. Prime Minister Abe, whom the GOR considers more reasonable than his predecessor Koisumi, is scheduled to meet with President Putin on the margins of the June G8 Summit. -------------- Iran -------------- ¶8. (C) Losyukov is scheduled to visit Iran May 13 - 16. He told the Ambassador he would not discuss the nuclear issue, which is DFM Kislyak's purview. The trip would be largely to "test the mood" in Teheran on Russian-Iranian bilateral relations. BURNS