PARLIAMENTARIANS OUTLINE GEORGIA'S REFORMS,

C O N F I D E N T I A L SECTION 01 OF 02 TBILISI 001279 SIPDIS SIPDIS E.O. 12958: DECL: 05/31/2017 TAGS: PGOV PREL PHUM ECON ENRG GG RU SUBJECT: PARLIAMENTARIANS OUTLINE GEORGIA'S REFORMS, CHALLENGES AHEAD Classified By: Ambassador John F. Tefft for reasons 1.4 (b) and (d). ¶1. (C) Summary: During a meeting with Deputy National Security Advisor to the Vice President Joseph Wood, key ruling party and opposition parliamentarians outlined planned internal reforms and weighed the challenges ahead. While citing strong progress, MPs admitted more work needs to be done in developing the strength and independence of the judiciary, maintaining stable economic growth, and ensuring energy security. On foreign affairs, the MPs were very positive on the recent election of French President Sarkozy, who they see as a supporter of Georgia's NATO bid, which they say is being unfairly hindered by European intransigence. They noted Saakashvili would be on of Sarkozy's first official visitors in early June. They were of different minds as to who would be the next President of Russia, though most agree that new Russian leadership is unlikely to improve relations. End Summary. -------------- Judicial Reform -------------- ¶2. (C) During a May 28 meeting with Wood and Ambassador, key ruling party and opposition parliamentarians outlined Georgia's reform successes to date and weighed the challenges ahead. Giga Bokeria, deputy chair of the legal committee and a close advisor to President Saakashvili, cited progress on judicial reform, including finalization of a new criminal procedure code, the removal of executive branch power over the High Council of Justice (HCJ),the judiciary's disciplinary body, and the development of a High School of Justice as the judiciary's certifying and educational body. He acknowledged that work needs to be done to increase the strength and independence of the judiciary, particularly by passing a ban on ex parte communications. -------------- Economy and Energy -------------- ¶3. (C) Lado Potava, a National Movement MP from the economic development committee, said that GDP growth remains strong despite a continuing economic blockade from Russia. He said the government is implementing a sound monetary policy and has balanced the budget. Inflation remains a problem however, threatening both the economy and public opinion ahead of the 2008 Parliamentary and Presidential elections. Ivliane Khaindrava, an opposition Republican party MP from the euro-atlantic integration committee, stressed that the government needs to pass and fairly implement protections for private property in order to encourage domestic and foreign investment. He noted that the U.S. was the top foreign direct investor in Georgia in 2006. ¶4. (C) Jemal Inaishvili, the vice-speaker of Parliament, said that energy security is still a significant issue for the economy, adding that "energy independence for Georgia means independence from the Russian market." Bokeria seconded that point and encouraged the U.S. to engage with the leaders of Turkmenistan and Kazakhstan to revive efforts toward a Trans-Caspian energy pipeline. He said that President Saakashvili had been successful in forging a more cooperative relationship between leaders in Azerbaijan and Turkmenistan, but greater engagement from the west is necessary to advance this project. -------------- Sarkozy and NATO -------------- ¶5. (C) The MPs were unanimously encouraged by the recent election of French President Nicolas Sarkozy, who they see as key to advancing Georgia's NATO bid, which they believe is being unfairly blocked by European intransigence. Nino Nakashidze, Deputy Chair of the Foreign Relations committee, announced that Saakashvili's planned trip to France in early June, would be the first official visit by a foreign leader since Sarkozy's election. Bokeria called Sarkozy an "Atlanticist" whose new foreign minister, Bernard Kouchner, would force the French MFA to give Georgia a "fair shot" at NATO integration. -------------- Russian Elections -------------- ¶6. (C) Chair of the foreign relations committee Kote Gabashvili, began a discussion on the upcoming elections in Russia by stating that he believes Putin will "find some way" to remain President for another term. Others disagreed with this, some predicting it would be Medvedev and others Ivanov. TBILISI 00001279 002 OF 002 Inaishvili is convinced that Governor of St. Petersburg Valentina Matvienko, is a strong candidate to be the next President of Russia because she "can be easily controlled by inside forces." Despite disagreement over who would be the next Russian President, nearly all the MPs remain convinced that new leadership to the north is unlikely to improve Russian-Georgian relations. ¶7. (C) OVP Deputy National Security Advisor Joseph Wood did not have an opportunity to clear this cable. TEFFT