Identifier
Created
Classification
Origin
07TBILISI3005
2007-11-30 13:35:00
UNCLASSIFIED
Embassy Tbilisi
Cable title:  

GEORGIA BI-WEEKLY UPDATE NOVEMBER 30

Tags:  PREL PGOV PHUM ECON GG 
pdf how-to read a cable
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INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 02 TBILISI 003005 

SIPDIS

SIPDIS

E.O 12958: N/A
TAGS: PREL PGOV PHUM ECON GG
SUBJECT: GEORGIA BI-WEEKLY UPDATE NOVEMBER 30

REF: TBILISI 2964

UNCLAS SECTION 01 OF 02 TBILISI 003005

SIPDIS

SIPDIS

E.O 12958: N/A
TAGS: PREL PGOV PHUM ECON GG
SUBJECT: GEORGIA BI-WEEKLY UPDATE NOVEMBER 30

REF: TBILISI 2964


1. This cable contains current items of political,
economic, and social interest concerning Georgia during the
weeks of November 10-30.

Last Russian Troops Leave Batumi
--------------

2. On November 15, the last train cars loaded with
military equipment left the Russian military base in
Batumi, marking the closure of the final Russian
military facility in government-controlled Georgia. The
transfer was finalized ahead of schedule, as the Russians
had committed to complete withdrawal in 2008. The Russian
Foreign Ministry stressed this fact in its public
comments, noting that Russia had fulfilled its
pledge despite what it called Tbilisi's heightened
anti-Russian policies. In Georgia the long-awaited
departure passed almost unnoticed, overshadowed by
the internal political turmoil. In the past, Georgian
officials have indicated that they intend to develop the
former base, which includes a significant stretch of
Black Sea coastline, by building hotels and other tourist
facilities.

Last Minute Change in Education Minister Candidate
-------------- --------------

3. Parliament approved a new Prime Minister and a slightly
"refreshed" Cabinet of Ministers November 22 (reftel),but
the cabinet included one late change from the nominees
initially announced November 19. One November 21, Deputy
Education Minister Bela Tsipuria was replaced as the
nominee for Education Minister by Maia Miminoshvili, Head
of the National Assessment and Examination Center, which
is also part of the Education Ministry. Tsipuria told
journalists that she did not want to abandon the ongoing
projects in the Ministry she was supervising. The
new Minister of Education Miminoshvili holds a PhD in
physics and mathematics and is a Ministry insider who
successfully managed the reform of nation-wide university
enrollment started in 2005. Miminoshvili said on her
confirmation day that she would "ensure the continuity
of reforms" launched under the previous Minister Lomaia.

Turkey, Georgia, and Azerbaijan Launch Rail Construction
-------------- --------------

4. The presidents of Georgia, Azerbaijan and Turkey
attended a groundbreaking ceremony for construction of

the Georgian section (Akhalkalaki-Kars) of the railway
link between Azerbaijan and Turkey on November 21 in the
village of Marabda, Georgia. The project is expected to
facilitate trade and tourism along the Caucasus, attract
rail cargo from the Central Asia, open an alternative route
to Trans-Siberian rail in Russia for rail cargo from China,
and create new jobs in the remote Samtskhe-Javakheti
region in southern Georgia. The project envisages the
construction of twenty-nine kilometers of railroad from
Akhalkalaki to the Turkish border, and rehabilitation of
192 kilometers of the existing railroad on the territory
of Georgia. In January 2007 Azerbaijan agreed to lend USD
200 million to Georgia to finance the construction of its
portion of the railway. Georgia will have to repay the
loan at 1% interest within 25 years. Construction of
the Baku-Akhalkalaki-Kars railroad is schedule to finish
by 2010.

New Free Trade Agreement with Turkey
--------------

5. The presidents of Georgia and Turkey signed a Free
Trade Agreement (FTA) and a treaty on eliminating double
taxation on November 21 during a Turkish-Georgian business
forum in Tbilisi. The FTA is expected to further facilitate
the already growing trade between the two countries,
which is especially important for Georgia in light of
the continuing Russian embargo on Georgian agricultural goods.
According to the FTA, Georgia and Turkey will waive import
tariffs on manufactured goods and on some agricultural
goods. In addition, Turkey will decrease tariffs by 50%-100%
within certain quotas on some Georgian agricultural goods.
For example, tariffs will be completely eliminated for
Georgian wine imports to Turkey (within a quota of 1
million liters),citrus (up to 4,000 tons),and vegetables
(up to 1,200 tons). To protect their farmers, both countries
excluded some agricultural goods from the waiver. The
FTA will take effect after both countries' parliaments
complete ratification.

Success Claimed for Grape and Citrus Harvest
--------------

6. The Agriculture Ministry positively assesses the
results of the 2007 vintage. According to the
Ministry, over 200 thousand tons of grapes
were gathered in Kakheti, the main wine producing

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region of Georgia, exceeding last year's figure by
67 percent. Out of the total volume, wineries in
Kakheti bought 58,000 tons, which is 2.3 times more than
last year. Up to 50,000 tons were used for winemaking
in local households, 15,000 tons were sold to local food
businesses, while 110,000 tons were delivered to other
regions of the country. Racha, another wine producing
region, also marked a high yield. Wineries bought 1,070
tons of grapes there for producing red wine. Meanwhile,
the citrus harvest is estimated to yield over 100
thousand tons of citrus in the western part of Georgia,
three times more than last year. The government has created
an ad hoc headquarters to assist local farmers with finding
markets for the produce. Last year Georgia exported around
16 thousand tons of citrus, mostly to Ukraine, Azerbaijan,
Armenia and Russia. Unfavorable weather conditions in
citrus growing countries such as Turkey and Iran have
increased Georgia's export potential this year.
TEFFT