CHINESE AMBASSADOR DISCUSSES CHINA'S WIDE-RANGING

C O N F I D E N T I A L SECTION 01 OF 02 ASTANA 002364 SIPDIS STATE FOR SCA/CEN, EUR/RUS, EAP/CM E.O. 12958: DECL: 11/26/2018 TAGS: PGOV PREL ECON EINV CH RS TX UZ KZ SUBJECT: CHINESE AMBASSADOR DISCUSSES CHINA'S WIDE-RANGING INTEREST IN CENTRAL ASIA Classified By: CLASSIFIED BY: AMBASSADOR RICHARD E. HOAGLAND, REASONS 1 .4 (B) AND (D) ¶1. (C) SUMMARY: On November 25, China's Ambassador to Kazakhstan Guoping Cheng called on the Ambassador to brief him on Chinese Prime Minister Wen Jiabao's visit to Kazakhstan for the October 29 Shanghai Cooperation Organization (SCO) ministerial meeting in Astana, and Cheng's views on the role of the SCO in the region. Cheng characterized Russia as "aggressive" in seeking to protect its flanks in its "near abroad." END SUMMARY. SCO MINISTERIAL MEETING ¶2. (C) Cheng said the SCO ministerial meeting consisted of two stages: a small-scale meeting between the six member states of the SCO and a larger meeting between the six members and representatives of the United States, Mongolia, India, and Afghanistan. (COMMENT: He misspoke because the United States is not an SCO observer. END COMMENT.) The main outcome of the ministerial was a unanimous decision to enhance regional economic cooperation to combat the global financial crisis. Member states also agreed to provide $1.2 billion assistance to Central Asian countries hit hard by the crisis. THE SCO'S PLANS IN AFGHANISTAN ¶3. (C) Cheng said that Russia appeared the most eager to engage the SCO on Afghanistan. Russian representatives suggested the SCO hold an international conference in Russia specifically to discuss Afghanistan prior to the next ministerial meeting. Representatives from Tajikistan won support from Russia, China, and Kazakhstan for its proposal to set up a permanent international organization in Dushanbe to counter narcotics trafficking, but Uzbekistan strongly opposed. Cheng said that China has a keen interest in stabilizing the Afghan economy, defeating the Taliban, and fighting the illegal narcotics trade. UZBEKISTAN AN "OBSTRUCTIONIST" ¶4. (C) Cheng said that Uzbekistan had taken an "obstructionist position" in the SCO discussions about Afghanistan. Most notably, the Uzbek representative, Deputy Prime Minister Rustam Azimov, intensely opposed the Russian proposal for an Afghanistan conference in Russia. Uzbekistan also opposed Russia,s longstanding proposal to start an energy club in the SCO. Cheng suggested that Uzbekistan deliberately sent a Deputy Prime Minister as a political statement to other member states. Cheng interpreted Uzbekistan,s actions as part of Uzbekistan's turning, once again, away from Russia toward the West. CHENG'S VIEW OF RUSSIA ¶5. (C) Cheng told the Ambassador that Russia has traditionally considered Central Asia to be within its sphere of influence. He elaborated the point by describing the three Russian strategic "buffers" of Ukraine/Belarus, the Caucasus, and Central Asia. Cheng suggested that as a result of recent moves by Ukraine and Georgia to join NATO, Russia will continue to place the highest priority on ensuring that the countries of Central Asia remain close to Russia. According to Cheng, of all the Central Asian states, Kazakhstan is the most important due to the strategic role it plays as a source of raw materials. Cheng said that Russia will use its two main weapons, energy and military might, to hinder European, Chinese, and U.S. engagement with Central Asia. He suggested that this is the primary reason why Russia places so much importance on the SCO, which it considers a tool to resist the U.S. presence in Central Asia. Cheng added that China will continue to direct its foreign policy in Central Asia through peaceful, non-aggressive means, while Russia will not hesitate to turn aggressive in ASTANA 00002364 002 OF 002 the region. CHINESE PRIME MINISTER OFFERS FINANCIAL ASSISTANCE ¶6. (C) The primary purpose of Chinese Prime Minister Wen Jiabao's October 29 visit to Kazakhstan was to attend the SCO ministerial meeting. Wen also used the opportunity to have his first formal meeting with President Nazarbayev. During one-on-one meetings, Wen offered Nazarbayev Chinese assistance to cope with the global financial crisis. According to Cheng, Wen offered to provide an unspecified amount of guaranteed investment by Chinese entrepreneurs for industrial projects in Kazakhstan's private sector. Cheng stated that this financial assistance would be in addition to China,s $1.2 billion commitment to help SCO member nations combat the financial crisis. At the conclusion of their meeting, according to Cheng, Wen and Nazarbayev signed separate energy and financial cooperation agreements. Cheng noted that China attaches great importance to Kazakhstan due to its leadership role in Central Asia and said that "China will not stand aside" while Kazakhstan has problems. ¶7. (C) At the end of the meeting, Ambassador Cheng asked if future meetings could also be held in the Ambassador's office (or Residence). He explained he can speak more freely at the U.S. Embassy because the Chinese Embassy is still in commercial office space. Cheng expressed clear frustration that Kazakhstan has still not approved the agreement for China to acquire for its new Embassy the plot of land across the street from the U.S. Embassy. HOAGLAND