EXBS KAZAKHSTAN ADVISOR'S MONTHLY REPORTING CABLE (JULY

UNCLAS SECTION 01 OF 03 ASTANA 001440 SIPDIS DEPT FOR ISN/ECC YWONG, ACHURCH, JHARTSHORN, SROBINSON DEPT FOR ISN/ECC-AMT LSPRINGER DEPT FOR EUR/ACE DFISCHER DEPT FOR SCA/RA JSPILSBURY DEPT FOR SCA/CEN MO'MARA CBP/INA FOR SBAKER AND BPICKETT USDOE/NNSA CWALKER, TPERRY AND EDESCHLER DOC FOR DCREED USCG FOR SHABETIMICHAEL AMEMBASSY BERLIN FOR CUSTOMS ATTACHE AMEMBASSY TASHKENT, BISHKEK, BAKU, DUSHANBE AND ASHGABAT FOR EXBS ADVISORS E.O. 12958: N/A TAGS: ETTC MNUC PARM PREL KSTC KNNP KZ SUBJECT: EXBS KAZAKHSTAN ADVISOR'S MONTHLY REPORTING CABLE (JULY 2008) ¶I. BROAD ITEMS OF INTEREST TO ADVISORS AND AGENCY MANAGERS: ¶1. On July 28, 2008, Kazakhstani Minister of Emergency Situations Vladimir Bozhko participated in a six day working visit to the United States at the invitation of the Arizona National Guard. He is studying the U.S. system of emergency response measures and risk management techniques. On July 31, 2008, Minister Bozhko held meetings with U.S. Deputy Assistant Secretary for South and Central Asian Affairs George A. Krol and the U.S. Ambassador-Designate to Kazakhstan, Richard E. Hoagland. ¶2. In July 2008, the Chairman of the Customs Control Committee of the Ministry of Finance of the Republic of Kazakhstan Kozy-Korpesh Karbuzov stated that there have been 50 criminal cases for corruption filed against Kazakhstani customs officers in the first six months of 2008. Chairman Karbuzov also stated that 27 customs officers had been dismissed and 67 customs officers were disciplined for corruption offences. A 2006 Kazakhstani government-funded study found that Customs was the most corrupt government agency in the Republic of Kazakhstan, with the total value of customs-related corruption valued at approximately $141 million U.S. dollars. In an effort to fight corruption, Chairman Karbuzov also stated that chief executives of the customs offices will be rotated to other posts. The Kazakhstan Customs Control Committee has also made a request, through a diplomatic note to the U.S. Embassy in Astana, that a round table discussion on customs related issues including management integrity be held in Astana within the next 2 months between members of the Customs Control Committee and experienced U.S. Customs and Border Protection Officers. ¶3. An agreement between Kazakhstan and Kyrgyzstan, which is a legal basis for the demarcation of the Kazakh-Kyrgyz state border, was ratified by both governments and took effect on August 5, 2008. The presidents of Kazakhstan and Kyrgyzstan signed the border treaty on December 15, 2001. Border issues between the two countries have long been a major concern. At a recent Kazakhstani Customs Control Committee meeting the head of the Customs Control Department in the Zhambyl oblast, Mr. Vladimir Nakisbayev, stated that the "Kordai" customs post and the "green border" areas around it are a high risk for exploitation by organized smuggling groups. This revelation prompted the Prime Minister of the Republic of Kazakhstan, Karim Massimov, to declare that the Ministry of Economy and Budget Planning should satisfy the Border Guards' three year budget request for equipment. ¶4. During July 2008, the Kazakhstani Border Guard detachment in Zharkent took part in a joint international operation with units from the People's Liberation Army of China to tighten border controls in the Dzhungarian Alatau mountain range region. ¶5. On July 18, 2008, the Kazakhstani Vice Minister of Industry and Trade Zhanar Aitzhanova stated that Kazakhstan is planning on bringing its legislation into compliance with the regulations of the World Trade Organization in 2008. Kazakhstan filed a request for entry into the World trade Organization in 1996 but to date has failed to meet the harmonization requirements that are prerequisite for membership. The USAID Regional Trade Liberalization and Investment Project and the EXBS programs support Kazakhstan's accession to the WTO by working on reducing trade barriers relating to the transport and transit of goods, enhancing enforcement at border crossings, and related customs clearances issues. ¶6. From June 26 to July 3, 2008, Congressman Alcee L. Hastings (D-FL) and Senator Benjamin L. Cardin (D-MD),Co-Chairmen of the Commission on Security and Cooperation in Europe (U.S. Helsinki Commission) lead a bipartisan Congressional delegation to ASTANA 00001440 002 OF 003 Kazakhstan. The other members of the delegation were U.S. Helsinki Commissioners Representatives Christopher H. Smith (R-NJ),Mike McIntyre (D-NC),Robert B. Aderholt(R-AL),Hilda Solis (D-CA) and G.K. Butterfield (D-CA)as well as Representatives Zach Wamp(R-TN), Loretta Sanchez (D-CA),Diane Watson (D-CA), Madeleine Bordallo (D-GU),Gwen Moore (D-WI). The delegation attended the 17th Annual Session of the Parliamentary Assembly of the Organization for Security and Cooperation in Europe (OSCE). The delegation also held meetings with Kazakhstan President Nursultan Nazarbayev, Prime Minister Karim Masimov, Foreign Minister Marat Tazhin, and Secretary of State Kanat Saudabayev. Kazakhstan is scheduled to be the Chairman-in-Office of the OSCE in 2010. ¶7. The UN Commission on International Trade Law announced that Kazakhstan will become the 34th country to accede to the United Nations Convention on the Carriage of Goods by Sea, also known as the "Hamburg Rules" on July 1, 2009. The pact, adopted in 1978 at the request of developing countries, sets up a uniform legal regime governing the rights and obligations of shippers, carriers and consignees under a contract of carriage of goods by sea. II. COMPLETED ACTIONS FOR THE REPORTING PERIOD ¶A. SITE ASSESSMENTS AND MEETINGS CONDUCTED ¶1. On July 22, 2008, the EXBS team attended the Donor Coordination Meeting on Border Security Issues at the UNDP conference room in Astana, Kazakhstan. Participants in this meeting included representatives from the Border Management and Drug Action Programs in Central Asia (BOMCA/CADAP),the International Organization for Migration, the Organization for Security and Cooperation in Europe (OSCE),the UN High Commissioner of Refugees (UNHCR),the UN Office on Drugs and Crime (UNODC),the Border Guard Service, the Customs Control Committee, and the British, French and U.S. embassies. The EXBS advisor gave a presentation on EXBS activities during the last quarter and on planned activities in Kazakhstan. ¶2. On July 23, 2008, the EXBS staff participated in a town hall meeting conducted by the Deputy Assistant Secretary for South and Central Asian Affairs George A. Krol at the U.S. Embassy in Astana, Kazakhstan. ¶3. On July 29, 2008, the EXBS advisor attended a meeting with the Deputy Chief of Mission, Kevin Milas, and Lieutenant Colonel Michael Chandler, U.S. Army Chief, Office of Military Cooperation, regarding the future of the U.S. Government's relationship with the Maritime Border Guards. During this meeting the DCM stated that, because of overarching security concerns, it was vital that all interactions with the Maritime Border Guard be fully coordinated within the U.S. Embassy in Astana. ¶B. TRAINING DURING THE REPORTING PERIOD ¶1. From July 8-25, 2008, a United States Coast Guard Mobile Training Team conducted a SAFE Boat Operations and Maintenance Course for the Maritime Border Guards in Bautino, Kazakhstan. The course was designed to develop and provide logistical support to the Kazakhstan Maritime Border Guards as well as examine, in-depth, operational knowledge regarding the three 42 ft SAFE boats donated by EXBS in ¶2006. The Deputy Chief of Mission in Kazakhstan, Kevin Milas, attended the graduation ceremony on July 25, 2008. ¶C. EQUIPMENT DELIVERED DURING THE REPORTING PERIOD ¶1. EXBS delivered approximately $6,000 in spare parts, and $5,000 worth of fuel to the Maritime Border Guards in Bautino, Kazakhstan for the SAFE Boat Operations Course which was conducted in Bautino, Kazakhstan, from July 8 to July 25, 2008. ASTANA 00001440 003 OF 003 ¶D. IMMINENT TRAINING OR EQUIPMENT STATUS UPDATE ¶1. Two Department of State contractors will be in Shymkent, Kazakhstan, from August 15-18, 2008, to attempt repairs on two x-ray vans donated by EXBS. The EXBS program assistant from Astana will accompany the contractors. ¶E. SIGNIFICANT DEVELOPMENTS IN EXPORT CONTROLS, NONPROLIFERATION, OR RELATED BORDER SECURITY ¶1. None ¶F. CASPIAN SECURITY INFORMATION ¶1. None III. RED FLAG ISSUES. ¶1. None ORDWAY