TURKMENISTAN: BERDIMUHAMEDOV PLIES AND A/S

C O N F I D E N T I A L SECTION 01 OF 04 ASHGABAT 000680

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E.O. 12958: DECL: 05/29/2018
TAGS: PGOV PREL PHUM ECON EPET KEDM AF TX
SUBJECT: TURKMENISTAN: BERDIMUHAMEDOV PLIES AND A/S
BOUCHER WITH POSITIVE OUTLOOK

REF: ASHGABAT 0677

Classified By: CDA RICHARD E. HOAGLAND: 1.4 (B),(D)


1. (C) SUMMARY: President Gurbanguly Berdimuhamedov told
Assistant Secretary of State for South and Central Asian
Affairs Richard Boucher:

-- Turkmenistan is committed to funding and building two new
power stations to provide electricity to Afghanistan, and
strongly supports the Trans-Afghanistan pipeline as a way to
enhance stability and cooperation in Central and South Asia;

-- He fully endorses the concept of a hydrocarbon-funded
state scholarship fund for Turkmen students to study abroad,
but the "modalities" of such a program with the United States
"need further study";

-- He is cautiously optimistic his economic reforms are
taking hold; and

-- He sees constitutional reform as a way to enhance
democratic values and practices in Turkmenistan.

Energy issues and relations with Azerbaijan are reported
reftel. END SUMMARY.


2. (SBU) Assistant Secretary of State for South and Central
Asian Affairs Richard Boucher met with President Gurbanguly
Berdimuhamedov for nearly two hours on May 28. Also present
were Deputy Prime Minister/Foreign Minister Rashid Meredov,
Senior Adviser Caitlin Hayden, and Charge d'affaires.


3. (C) Berdimuhamedov noted Turkmenistan's priorities for
Afghanistan are to extend its railroad into northern
Afghanistan, provide significant amounts of new electricity,
and push forward the Turkmenistan-Afghanistan-Pakistan-India
natural-gas pipeline.

AFGHANISTAN: ELECTRICITY AND BORDER SECURITY


4. (C) Boucher expressed gratitude for Turkmenistan's
commitment to stability, security, and reconstruction in
Afghanistan, emphasizing the value of electricity for
education, business, and rural development. He added the
United States sees roads and electricity as fundamental for
Afghan stability. Berdimuhamedov reconfirmed Turkmenistan's
commitment to fund and build two new gas-fired power stations
in Turkmenistan to provide electricity for Afghanistan. He
said, "As soon as USAID is ready on the Afghan side, we're
ready to start."


5. (C) Berdimuhamedov said he has told Afghanistan's
President Hamid Karzai that he needs to pay more attention to
border control. Berdimuhamedov said, "On the other side from
our border, some days the Afghan government is in control,
some days the Taliban. The Taliban are pushing Afghans
closer to our border. We're providing humanitarian support,
but the Afghans have to take more responsibility."

NATURAL-GAS PIPELINE THROUGH AFGHANISTAN


6. (C) Expanding on the importance of the trans-Afghanistan
pipeline, Berdimuhamedov acknowledged Turkmen gas flowing
south would increase Turkmenistan's national income and
support its policy of diversification of export routes. But,
he said, the most important reason for the pipeline is to

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enhance stability and cooperation in the Central-South Asian
region. He estimated the pipeline could produce up to $500
million per year in transit fees for Afghanistan and produce
about 12,000 new jobs there.


7. (C) Boucher asked if Turkmenistan has identified volumes
of natural gas for the trans-Afghanistan pipeline and whether
commercial interest in the project, one of the keys to
success, is growing. Berdimuhamedov responded he is
confident that adequate volumes exist. He noted the UK firm
Gaffney Kline is conducting an independent audit of
Turkmenistan reserves, information that will be made public,
but even now he is comfortable with the current estimate that
Turkmenistan has reserves of 24.6 trillion cubic meters apart
from what exists in Turkmenistan's portion of the Caspian
Sea. He specified that the South Yolatan deposit is
estimated to contain seven trillion cubic meters and added
Turkmenistan has just identified another deposit 150 km
outside of Ashgabat with an estimated 1.8 trillion cubic
meters. Responding to Boucher's question about commercial
interest, Berdimuhamedov said there is increasing interest
from India.


8. (C) Berdimuhamedov acknowledged that security in
Afghanistan is a key element. He made a pitch for his vision
of a UN convention on pipeline security. He said he
understands that commercial interests are usually responsible
for pipeline security, but "Companies come and go; pipelines
remain. That's why we need to guarantee long-term security."
He asked that the United States consider supporting his
vision for the UN convention he's proposed.

THE U.S.-TURKMENISTAN BILATERAL RELATIONSHIP


9. (C) Berdimuhamedov noted the large number of U.S.
delegations that have visited Turkmenistan since his February
2007 inauguration. In a quick review, he praised cooperation
on border security, student exchange programs (including
FLEX),the Peace Corps, and the possibility of university
linkages with Columbia University and Texas A&M University.
Boucher said the United States, during the past 16 months has
made about 60 proposals for cooperation: "Several are
especially important, for example in education." He noted
how valuable it would be if Turkmenistan were to establish a
major university scholarship fund from its hydrocarbon
revenues for up to 1,000 students per year to study in the
United States. We are prepared to help administer such a
program. Berdimuhamedov agreed this was an excellent idea.
"My dream," he said, "is to provide our young people with the
best access to international education to bring them into the
modern world." However, he added, the modalities of such a
program will require more study.


10. (C) Boucher noted the United States would like to see
the American Corner in Turkmenbashy reopened (the Turkmen
closed it two years ago) because it would help provide
Internet access in Turkmenbashy as well as information for
students who want to study in the United States.
Berdimuhamedov responded there are already several successful
American Corners in Turkmenistan: "We are not against them
in principle and not against one in Turkmenbashy, but we need
to study it more."


11. (C) Berdimuhamedov praised increased U.S.-Turkmenistan
cultural cooperation and said he was pleased with the U.S.
Embassy-produced program to teach English on state
television. He pointed out that he has asked state

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television to cover more U.S. public diplomacy events, but
then he complained that in one recent TV report he'd noticed
that the flag of the United States was prominently displayed,
but Turkmenistan's flag was "hidden behind the piano."

ECONOMIC REFORM


12. (C) In response to Boucher's question about the status
of economic reform, Berdimuhamedov replied he had emphasized
from his first days in office the importance of diversifying
the economy, including building the textile industry.
Preliminary results are encouraging, he said, but, most
important, he wants more economic transparency and reliable
world-standard statistics. He noted his government is
cooperating with the United Nations to create a model
development plan for Balkan province that, if successful,
could be implemented nation-wide. When Boucher suggested a
USAID-sponsored Investor Roadmap project might help support
Berdimuhamedov's economic reform goals, the president replied
there were already "quite good preliminary results" in that
field with assistance from the European Union and the United
Nations.

POLITICAL REFORM AND HUMAN RIGHTS


13. (C) The assistant secretary asked Berdimuhamedov to
discuss his vision for political development, including human
rights. The president expressed cautious optimism that his
creation of new government institutes/think tanks is
beginning to show results, especially the Institute for
Democracy and Human Rights. He also explained in detail the
current process to revise the constitution, which "is
necessary for this new period." He emphasized the plan is to
enhance the power of the parliament and phase out the
unwieldy 2,500-member Peoples Council. The president
suggested human rights issues, like the release of prisoners
of concern, will be enhanced because, he alleged, currently
the Peoples Council must approve prisoner releases. He said,
"We will do more, go further." (COMMENT: We judge the
president is disingenuous when he lays the blame for slow
prisoner release at the door of the Peoples Council,
especially since the current Peoples Council is simply a
rubber-stamp for presidential decrees and government policy.
END COMMENT.) Boucher noted the government is making
important efforts in the area of human rights, and encouraged
tghem to work with the Organization for Security and
Cooperation in Europe, the UN, technical experts from the
United States and other nations, and with nongovernment
organizations, like Human Rights Watch.


14. (C) Berdimuhamedov acknowledged rumors that the new
constitution might extend the presidential term from five to
seven years. He said, "I'll stay neutral on that. Let
others decide. Most important, I do not want to violate
international standards."


15. (SBU) NOTE: Berdimuhamedov's read-out of his May 9-10
official visit to Baku is reported septel. END NOTE.


16. (C) COMMENT: After nearly a year and a half in office,
Berdimuhamedov is increasingly self-assured. As always, he
was well-briefed and conversed without prepared talking
points. Clearly indicating his desire for a strong
relationship with the United States, he emphasized the
positive and glossed over some of the problem areas. END
COMMENT.


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17. (U) Assistant Secretary Boucher has cleared this cable.
HOAGLAND