Identifier
Created
Classification
Origin
08BAKU80
2008-01-31 04:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Baku
Cable title:  

EEB/CBA SPECIAL REPRESENTATIVE MERMOUD DISCUSSES

Tags:  ECON EFIN ETRD EAID PREL ENRG KCOR AJ 
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RR RUEHLN RUEHVK RUEHYG
DE RUEHKB #0080/01 0310402
ZNR UUUUU ZZH
R 310402Z JAN 08
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC 4671
INFO RUCNCIS/CIS COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2601
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 BAKU 000080 

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EEB A/S DANIEL SULLIVAN
DEPT FOR EUR/CARC AND EEB/CBA
DEPT PASS TO TDA FOR STEIN, EXIM FOR GLAZER
ANKARA FOR FCS
COMMERCE FOR 4231 ITA/MAC/ORUE FOR DSTARKS
COMMERCE FOR 3004 ITA/FCS/ ADVOCACY FOR ACHAMS-EDDINE

E.O. 12958: N/A
TAGS: ECON EFIN ETRD EAID PREL ENRG KCOR AJ
SUBJECT: EEB/CBA SPECIAL REPRESENTATIVE MERMOUD DISCUSSES
EPC AND CO-FINANCING WITH FINANCE MINISTER SHARIFOV

REF: 07 BAKU 1506

SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET DISTRIBUTION
-- PLEASE HANDLE ACCORDINGLY

UNCLAS SECTION 01 OF 02 BAKU 000080

SIPDIS

SENSITIVE
SIPDIS

DEPT FOR EEB A/S DANIEL SULLIVAN
DEPT FOR EUR/CARC AND EEB/CBA
DEPT PASS TO TDA FOR STEIN, EXIM FOR GLAZER
ANKARA FOR FCS
COMMERCE FOR 4231 ITA/MAC/ORUE FOR DSTARKS
COMMERCE FOR 3004 ITA/FCS/ ADVOCACY FOR ACHAMS-EDDINE

E.O. 12958: N/A
TAGS: ECON EFIN ETRD EAID PREL ENRG KCOR AJ
SUBJECT: EEB/CBA SPECIAL REPRESENTATIVE MERMOUD DISCUSSES
EPC AND CO-FINANCING WITH FINANCE MINISTER SHARIFOV

REF: 07 BAKU 1506

SENSITIVE BUT UNCLASSIFIED -- NOT FOR INTERNET DISTRIBUTION
-- PLEASE HANDLE ACCORDINGLY


1. (U) This is an action request. Please see paragraph 5.


2. (SBU) In a meeting on January 22, Department of State
Special Representative for Commercial and Business Affairs
Frank Mermoud, the Ambassador and Minister of Finance Samir
Sharifov discussed preparations for the second annual
Economic Partnership Commission meeting in Washington.
Sharifov agreed to the proposed April time period for the
EPC, noting however that there are other international
organization meetings around the same time that could
conflict with different ministries' participation. Mermoud
and Ambassador Derse outlined possible EPC agenda items with
Sharifov, including the GOAJ's economic reform agenda, trade
and investment reforms, legislative reforms, anti-corruption
measures and incorporating a private sector dialogue.
Sharifov had no problems with holding the EPC over one and a
half days and welcomed more participation from the private
sector.


3. (SBU) Sharifov told Mermoud that he was open to agenda
items and looked to the U.S. for advice on which ministries
from the GOAJ should be invited. He said that he would like
to begin the EPC by reviewing the status of action items
included in the 2007 EPC communique. Sharifov said he would
raise the lack of results from his meetings with private
sector companies during his October visit to Washington.
Specifically, Sharifov said he wanted to discuss the lack of
progress in purchasing GE turbines with Export-Import bank
credits. Mermoud said that he would ask GE for the latest in
order to respond to the Minister. (NOTE: Embassy hopes to
have an answer from GE for Minister Sharifov well in advance
of the April EPC.) Sharifov briefed Mermoud on developments
in the domestic energy power sector, including a new power
station project in which U.S. company AES is looking to
participate.


4. (SBU) Mermoud and Sharifov also discussed the status of
U.S.-Azerbaijan co-financing efforts. Sharifov said that the
U.S. side should arrange a meeting with Deputy Minister of
Finance Fatyzadeh who has the lead on the co-financing issue
to discuss details. Sharifov said that the GOAJ has no
problems with co-financing but needs to complete several
bureaucratic issues before finalizing any framework. (Note:
On January 24 the Embassy co-financing group, led by the DCM,
met with Fatyzadeh to discuss details on co-financing.)
Ambassador Derse told Sharifov that the U.S. would like to
sign a memorandum of understanding encompassing all of the
co-financing projects including a plan for the next three to
five years at the April EPC meeting. Sharifov told the
Ambassador that the GOAJ has allocated USD 1.5 million in the
2008 budget for initial co-financing activities.


5. (SBU) Sharifov said he would welcome receiving from the
USG for GOAJ consideration a draft MOU on co-financing, a
draft EPC agenda, a draft EPC joint communique, and details
on the proposed EPC program, including a private sector
session.


6. (SBU) Action Request: In order to spur GOAJ preparations
and concrete results at the April EPC, we need to pass to the
GOAJ as soon as possible the Washington approved draft EPC
agenda for GOAJ comments and feedback (our proposed ideas
submitted reftel). Embassy requests that Washington provide
soon the proposed EPC agenda so we can forward to the GOAJ
for comment; ideally under cover of a letter from A/S
Sullivan also offering proposed dates for the meeting and
program of activities - including a session with the private
sector and a trilateral meeting with Turkey. We feel that
delivering the draft agenda will build momentum in the entire
GOAJ to begin focusing and preparing for this important
bilateral event. In addition, Embassy will prepare a draft
2008 EPC communique for Department and Washington agencies'
comments and review (septel) that we also need to pass as
soon as possible to the GOAJ to focus efforts on concrete
deliverables.


BAKU 00000080 002 OF 002



7. (U) EEB/CBA Special Representative Mermoud cleared this
cable.
DERSE