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.

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Judicial Reform
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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.

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Economy and Energy
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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.

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Sarkozy and NATO
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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.

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Russian Elections
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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