GOU AGREES TO RETURN SEIZED U.S. ASSISTANCE FUNDS,

C O N F I D E N T I A L TASHKENT 001070 SIPDIS SIPDIS DEPARTMENT FOR SCA/CEN AND EUR/ACE ANKARA FOR AG ATTACHE ASTANA ALSO FOR USAID E.O. 12958: DECL: 06/05/2015 TAGS: PREL EAID UZ SUBJECT: GOU AGREES TO RETURN SEIZED U.S. ASSISTANCE FUNDS, REPROGRAM IN HEALTH SECTOR REF: TASHKENT 1069 Classified By: CDA Brad Hanson for reasons 1.4 (b) and (d). ¶1. (C) First Deputy Foreign Minister Ilkhom Nematov summoned Charge to the Ministry of Foreign Affairs June 5 and said that the Government of Uzbekistan accepted the proposal (reftel) made June 4 by U.S. Coordinator for Assistance to Europe and Eurasia Tom Adams. The proposal calls for the Government of Uzbekistan to return U.S. assistance funds seized from ACDI/VOCA and the Foundation for International Community Assistance (FINCA) and release the organization's bank accounts. In return, Adams said that the USG would be willing to reprogram the funding into other assistance programs such as health. Nematov agreed with Charge that a working group should meet soon to consider the details and agreed to consider Post's proposed dates in mid-June. ¶2. (C) Comment: The decision to accept Adams' proposal undoubtedly was made by President Karimov himself. Post had thought that such a decision would take weeks to months, but it appears that Karimov is ready to deal, at least on this one issue. The devil may be in the details; however, assuming they can be worked out, this decision removes a major potential irritant in the bilateral relationship. All is not right yet, however, as the very serious issue of the criminal case against one of our local employees and a pattern of harassment against others remains. HANSON