KYRGYZ PRIME MINISTER AND AMBASSADOR SEE EYE TO

C O N F I D E N T I A L SECTION 01 OF 03 BISHKEK 001182

SIPDIS

DEPT FOR SCA/CEN

E.O. 12958: DECL: 11/21/2018
TAGS: PGOV PREL PINR ECON MARR KG
SUBJECT: KYRGYZ PRIME MINISTER AND AMBASSADOR SEE EYE TO
EYE IN INTRODUCTORY MEETING

BISHKEK 00001182 001.2 OF 003


Classified By: Ambassador Tatiana C. Gfoeller, Reasons 1.4 (b) and (d).


1. (C) Summary: Ambassador and Prime Minister Chudinov
discussed bilateral issues during a warm first meeting on
November 20. Chudinov expressed deep appreciation for
USAID's assistance, in particular the planned provision of
back-up generators to hospitals for the winter. Chudinov
advised that future military training be conducted without
the importation of weapons, as he could not guarantee against
a repetition of the August weapons seizure. Chudinov assured
the Ambassador that the threatened strike by Kyrgyz air
traffic controllers against Coalition aircraft would be
averted. He said he hoped economic and commercial
cooperation would increase, but candidly acknowledged that
Kyrgyzstan needed to undertake additional reforms to attract
foreign investment. Chudinov said that resolving the
December 2006 shooting case as well as the Yasynov traffic
accident case would have a positive impact on the overall
bilateral relationship, and "you have no idea how much easier
it would make it for you to stay at Manas." End Summary.


2. (C) On November 20, Ambassador called on Prime Minister
Igor Chudinov for a one-on-one first meeting. Chudinov was
friendly and warm, welcoming the Ambassador to Kyrgyzstan and
wishing her a productive tenure. Chudinov was both candid
and well informed on a wide range of bilateral issues.

Praise for USAID's Assistance
--------------


3. (C) The Ambassador updated Chudinov on U.S. assistance
efforts in the face of expected food and energy shortages
this winter. Chudinov offered high praise for USAID,
commenting on the "long track record" of cooperation.
Chudinov expressed deep appreciation for USAID's assistance
for the coming winter, in particular quality seeds and
back-up generators for key hospitals. Chudinov said he had
been in Osh the day before to inspect hospitals, and hospital
administrators told him how grateful they were to be
receiving generators, given the blackouts and inconsistent
power supply. However, Chudinov added that the assistance
had created some ill feelings; the administrator of the
psychiatric hospital in Osh was upset that his hospital would
not be receiving a generator. (Note: USAID worked with the
Ministry of Health to set the priority list of facilities to
receive back-up generators. End note.)

"505" Agreement and Security Assistance
--------------


4. (C) Chudinov also expressed appreciation for the
additional "valuable" security assistance that the U.S. would
be able to provide now that Kyrgyzstan had communicated its
acceptance of the "505" end-use and re-transfer agreement.
(Note: On November 13, the Embassy received a Kyrgyz
diplomatic note, in the Russian language, accepting the
proposed agreement. End Note.) Chudinov said he was sorry
that it had taken the Kyrgyz government such a long time to
agree to the terms, but he was hopeful that having the
agreement in place would facilitate additional cooperation.

Training without Weapons
--------------


5. (C) The Ambassador raised the unresolved issue of the
weapons and equipment seized from a U.S. military training
team in August. She noted that the Ministry of Internal
Affairs (MVD) had recently returned a small number of
pistols, but the bulk of the weapons and equipment remained
in MVD custody. Chudinov apologized that that our team had
been caught in a dispute between the MVD and the State
Committee for National Security (GKNB),with the weapons
becoming a "political football." Chudinov acknowledged that

BISHKEK 00001182 002.2 OF 003


the partial return of weapons was "not good enough," and he
added that the Prosecutor General was "not being helpful" in
handling the case. Chudinov urged that any future training
exercises be done without our trainers importing their
weapons into Kyrgyzstan. He said regretfully but
straightforwardly that he was not in a position to guarantee
against a repetition of the August seizure. Therefore, he
urged the U.S. side not to "expose" ourselves needlessly to
possible future manipulation. (Note: MVD and GKNB report to
the President, not the Prime Minister. End Note.)

Averting a KAN Strike
--------------


6. (C) The Ambassador raised concerns about the threat by
Kyrgyz air traffic controllers to strike against Coalition
aircraft starting December 1, and she asked for the Prime
Minister's assistance to prevent disruption of Manas Air Base
operations. Chudinov said that the dispute with
Kyrgyzaeronavigatsia (KAN) was an internal Kyrgyz government
problem for which the Kyrgyz side should take full
responsibility. He acknowledged that his predecessor had
promised additional (Kyrgyz government) payments to KAN, but
no line item had been added to the year's budget. Given the
current budget shortfall, he said, it would be difficult to
pay money to KAN. Nevertheless, Chudinov said, the
government would "come up with the money," and he assured the
Ambassador that the threatened strike would be averted. He
pledged that an appropriate line item would be inserted into
next year's budget.

DEA Offices at DCA
--------------


7. (C) The Ambassador noted that the U.S. Drug Enforcement
Administration (DEA) would like to station personnel in
Kyrgyzstan, and the head of the Kyrgyz Drugs Control Agency
(DCA),Gen. Nogoibayev, had offered to let them work out of
DCA headquarters, but needs the permission of the Prime
Minister to do so. Chudinov said he was aware of the issue
and he had no objection to stationing DEA personnel with the
DCA. Chudinov said all he needed was a letter from
Nogoibayev formally making the request, and he would approve
it.

Ambassador's Bodyguards
--------------


8. (C) The Ambassador asked Chudinov for advice regarding her
bodyguards. She told Chudinov that the MVD had stopped
providing her with bodyguards, but the GKNB was prepared to
provide that service. She handed Chudinov a letter formally
requesting his advice as to which Kyrgyz agency could provide
protection. Chudinov was well aware of the issue. Laughing
ruefully, he said that, once again, the U.S. had been caught
in a fight between Kyrgyz agencies and that the Ambassador
was "very smart" to ask for written guidance on the subject.
Chudinov suggested that the Presidential Security Service
might provide personal protection, but he did not know if it
had personnel available. He said he would consider the
question and respond in writing.

Improving the Investment Climate
--------------


9. (C) Chudinov expressed concern that the world economic
crisis would hit Kyrgyzstan, with diminished remittances from
Kyrgyz working abroad (mainly in Russia and Kazakhstan),as
well as the return of workers who lose their jobs abroad.
Chudinov noted that investors might be reluctant to take
risks in the current environment, but he hoped that we could
increase trade between our countries, with U.S. exporters
looking to "expand their markets." Chudinov acknowledged

BISHKEK 00001182 003.2 OF 003


that Kyrgyzstan had a "long way to go" to create an
attractive investment climate. He lauded the new tax code,
which he said simplified the tax structure. (Note: The new
tax code has some problems which will need to be addressed
before it can be implemented. For example, it introduces a
sales tax with no mechanism for collecting it on top of the
existing VAT. End note.) Chudinov said he wanted to use
this difficult economic period to push hard for real reforms.


10. (C) Chudinov also expressed his thanks for the Millennium
Challenge Account Threshold Program, which is promoting
reforms and targeting corruption in the judiciary, procuracy,
and law enforcement. The Ambassador commented that President
Bakiyev publicly acknowledging corruption was also a positive
initial step toward addressing the problem. Chudinov
responded that acknowledging the problem was insufficient.
He said that Kyrgyzstan suffered from "deep-rooted"
corruption, and it will take "more than you know" to combat
corruption successfully.

Resolving the Shooting and Traffic Accident Cases
-------------- --------------


11. (C) While Chudinov was positive about bilateral
cooperation on many issues, he told the Ambassador that
resolving two outstanding issues would have a significant
impact on improving relations. Chudinov referred to the
December 2006 shooting of a Kyrgyz truck driver by a Manas
Air Base airman, and to the 9-year-old traffic accident case,
in which a Kyrgyz pedestrian, Yasynov, allegedly was
seriously injured. Chudinov said that getting past these
cases would have a positive impact on the overall bilateral
relationship, and "you have no idea how much easier it would
make it for you to stay at Manas."

Comment
--------------


12. (C) Chudinov was remarkably well informed about the
status of all the issues raised by the Ambassador, and was
sympathetic to working to find acceptable solutions. His
candor was refreshing. That said, his authority does not
extend to the security and law enforcement ministries, which
report to the President, and thus some issues remain outside
his purview. USAID's winter assistance efforts have clearly
generated goodwill with Chudinov, who appeared willing to
advocate for better relations with the U.S.
GFOELLER