UZBEKS REPORTEDLY ORDERS STCU PROJECTS COMPLETED

C O N F I D E N T I A L TASHKENT 000514 SIPDIS SIPDIS DEPARTMENT FOR SCA/CEN AND ISN/CTR E.O. 12958: DECL: 03/30/2017 TAGS: PREL KNNP UZ SUBJECT: UZBEKS REPORTEDLY ORDERS STCU PROJECTS COMPLETED BY END OF 2008 REF: A. 06 TASHKENT 2343 ¶B. 06 TASHKENT 610 (NOTAL) Classified By: Amb. Jon R. Purnell for reasons 1.4 (b) and (d). ¶1. (C) Summary and comment: The government is preventing new Science and Technology Center of Ukraine (STCU) projects by refusing to provide host government concurrence to new proposals and denying registration to projects previously approved by the Center's Governing Board. The Academy of Sciences informed an institute director that a project funded by the U.S. Department of Agriculture would not be allowed to proceed specifically because it was funded through the Center. Meanwhile, the Academy, reportedly acting under Cabinet of Ministers direction, has informed institute directors that all current projects must be completed by the end of 2008. Taken together, these actions suggest that while the government may be willing to allow its scientists time to complete projects already underway, it will not permit them to engage in future work through the STCU. End summary and comment. ¶2. (C) STCU local representative Regina Sattarova told poloff March 28 that the Government of Uzbekistan is blocking new projects. Although Uzbek banking regulations continue to cause delays in payment (ref A),Sattarova said that ongoing projects are being allowed to continue with relatively few problems. However, the government continues to take no action on new project proposals, which require host government concurrence before being considered for funding. There are Uzbek proposals in the Center's review pipeline; however, Sattarova estimated that, at the current rate, the Center would run out of proposals from Uzbekistan within the next 12 months. ¶3. (C) The government has refused to register several new projects approved by the Center's Governing Board and funding partners. This refusal effectively prevents the projects from starting because, absent registration, Uzbek banks will not transfer funds from Kyiv to the project managers. The government has not provided any explanation for the problem, but Sattarova said that she was told by Academy of Sciences contacts that the decision emanates from "the top." Separately, the director of the Institute of Zoology told poloff that he was informed by Academy officials that a termite project funded by the U.S. Department of Agriculture through STCU would not be allowed to proceed. According to the director, the officials told him specifically that the problem was not the project itself, but the STCU. ¶4. (C) The director said that the Academy of Sciences, acting upon instructions received from the Cabinet of Ministers, has informed its institute directors that all STCU projects must be completed before the end of 2008. Sattarova confirmed that she has heard the same information from a number of other scientists. PURNELL