U.S., KYRGYZSTAN SIGN MILLENNIUM CHALLENGE

C O N F I D E N T I A L SECTION 01 OF 04 BISHKEK 000281 SIPDIS SIPDIS DEPT FOR SCA/CEN E.O. 12958: DECL: 03/25/2018 TAGS: PGOV PREL EAID KDEM KG SUBJECT: U.S., KYRGYZSTAN SIGN MILLENNIUM CHALLENGE THRESHOLD AGREEMENT BISHKEK 00000281 001.2 OF 004 Classified By: Amb. Marie L. Yovanovitch, Reasons 1.4 (b) and (d). ¶1. (C) Summary: A/DAS Pamela Spratlen led the U.S. delegation at a low-key March 14 signing of Kyrgyzstan's Millennium Challenge Account Threshold Country Program assistance agreement. Spratlen subsequently met with senior Kyrgyz government officials responsible for the program to discuss U.S. concerns about Kyrgyz government backsliding on democratic governance, the necessity for improvement in Kyrgyzstan's governance indicators, and the importance of Kyrgyz government engagement while implementing the Threshold Program. THE SIGNING CEREMONY -------------- ¶2. (U) On March 14, USAID Regional Mission Director William Frej and Presidential Chief of Staff Medet Sadyrkulov signed the Millennium Challenge Account (MCA) Threshold Country Program agreement in a low-key event in Bishkek. The Minister of Internal Affairs Kongantiyev, General Prosecutor Satybaldiyev, Presidential Administration Foreign Affairs Department Head Ryskulov, and Deputy Foreign Minister Ibraimov attended the signing. The U.S. delegation was comprised of Acting Deputy Assistant Secretary Spratlen, Ambassador Yovanovitch, DCM Litzenberger, USAID Country Representative Shapiro, and MCC Threshold Program Coordinator Charlie Undeland. A handful of representatives from the local media covered the signing. ¶3. (U) During public statements immediately following the signing, Sadyrkulov emphasized the program's importance for the future of the Kyrgyz Republic, describing specific program components, and stressed the government's commitments to fulfilling Threshold Program goals. A/DAS Spratlen noted problems with Kyrgyzstan's performance on MCA governance indicators, and concern following the flawed December parliamentary elections. She emphasized the importance of commitment to the Threshold Program, and expressed hope for the cooperation necessary to make the program a success. SADYRKULOV: POLITICAL WILL TO REFORM -------------- ¶4. (C) In a meeting with Sadyrkulov following the signing, Spratlen expressed the hope that the Kyrgyz parliament would quickly ratify the program, send its letter of intent to the U.S., and name points of contact for each of the three program areas. She raised U.S. concerns about the trajectory of democratic governance in Kyrgyzstan, the conduct of the December elections, and reports of intimidation of the political opposition and NGOs. Spratlen emphasized the necessity of guaranteeing citizens' rights to participate in the political process, including the right to peaceful assembly. Frej noted the importance of the Threshold Program for USAID and its commitment to cooperating with Kyrgyz counterparts. ¶5. (C) Sadyrkulov affirmed the government's commitment to the program. While agreeing that there had been problems with the December parliamentary elections, he claimed that some factors had been beyond the government's control. Sadyrkulov maintained that the transition to a party-list system was important to spur political party development and ensure that subsequent elections would be "normal." ¶6. (C) Sadyrkulov argued that the country's progress would justify the steps taken in connection with the elections, but he acknowledged that the situation would be "tough" if the economic reforms undertaken by President Bakiyev and the parliament did not yield "results." He asserted that Bakiyev had a "very liberal" agenda, including overhauling the tax code, completing privatization of state assets, and providing BISHKEK 00000281 002.2 OF 004 protections for small and medium enterprises. He said that Bakiyev has the political will to reform, and he urged that the U.S. have a deeper understanding of the problems faced by Kyrgyzstan. PM CHUDINOV: FOCUS ON ECON AND ENERGY REFORM -------------- ¶7. (C) In a meeting with Prime Minister Igor Chudinov, Spratlen again noted the need to move quickly to complete requirements for program implementation and said that program success would depend on cooperation between the government, the legislative branch, and civil society. She then raised U.S. concerns about the trajectory of democracy and governance. She asked about the Kyrgyz government's reform plans, and noted the Prime Minister's key role in energy sector reforms. ¶8. (C) Chudinov highlighted the government's focus on economic reform in welcoming the signing of the Millennium Challenge Account Threshold Program. Chudinov said that the Threshold Program's planned reforms of the judiciary and law enforcement bodies should help fight corruption in the economy. He noted that improving Kyrgyzstan's business environment, especially its World Bank "Doing Business" rating, was a top priority. He thanked the Embassy and USAID for assistance in business development, energy, and the mining sector. ¶9. (C) Chudinov agreed that economic development is inseparable from democratic development, but maintained that one cannot ignore the economy while seeking governance improvements. He said that stability could be achieved through greater private investment, which was more important than immediate democratic reform. He stressed that Bakiyev and the Kyrgyz government have the desire and will to improve its government indicators. Chudinov hoped that political stabilization in Kyrgyzstan would lead to acceleration of economic and governance reforms stipulated in the Threshold Program, but he cautioned that the Ak Jol party was not monolithic and the government would be hard-pressed to get all of its initiatives through parliament. ¶10. (C) Chudinov also gave an overview of the government's Energy Development Strategy, which focuses on increasing electricity capacity; changing tariff policies; developing small, localized power plants; and completing the reform of distribution companies. He said that the government would accept World Bank assistance in this area, and he welcomed continuing to work with USAID. Chudinov said that the government planned to submit draft amendments to the Laws on Privatization, Privatization of Strategic Facilities, and Energy and Electrical Power on March 17. He said the government would adopt a new tariff policy on April 7. MEETING AT SUPREME COURT -------------- ¶11. (C) Supreme Court Deputy Chairman Davletov illustrated the steps undertaken to increase judicial independence through legislation on the Congress of Judges, Judicial Council (JC),and National Council for Justice Affairs (NCJA),as well as proposed changes in legislation to lower the cost threshold for filing a commercial case and to ensure expenditure discretion by the court system. She expressed doubts about the need for the Council to be elected by secret ballot, saying that wasn't consistent with past practices. Supreme Court Chairman Aliyeva noted the need to tie training requirements to recommendations for appointment of local judges issued by the NCJA. KONGANTIYEV: NOT BRIEFED ON PROGRAM, BUT READY TO ENGAGE -------------- -------------- BISHKEK 00000281 003.2 OF 004 ¶12. (C) While Minister of Internal Affairs Kongantiev was not well briefed on MCATP particulars, he said the Ministry was ready to engage fully with the assistance program and carry out its commitments. He had not yet designated personnel for working on the Threshold Program. He noted that he was keen to work with NGOs, citing beneficial cooperation with outspoken NGO leader Aziza Abdurasulova, who had provided a human rights training program to police personnel. The minister added that he had just signed an order to implement a three-year program to reform law enforcement organs. The program, which recognizes that corruption and violation of rights exist, is designed to change the ministry's priority from protecting the interests of the state to protecting the individual interests, rights, and freedoms of citizens. GENERAL PROSECUTOR: NO REFORM FROM THE TOP -------------- ¶13. (C) General Prosecutor Satybaldiyev was even less familiar with the Threshold Program and had not yet designated staff to work on it. He asserted that prosecutors are completely apolitical, and their role in courts, regardless of changes in the Criminal Procedural Code such as the introduction of jury trials, would remain the same. Deputy Prosecutor Nasiza, who also attended the meeting with Satybaldiyev, later stated that the Prosecutor's Office fully supports the Threshold Program. He said the office recognizes the need for reforming legislation regulating criminal investigation and prosecution, and training for prosecutors is much desired. Nasiza said that he anticipated being the coordinator for Threshold Program from the Prosecutor's Office. MPs: ACTIVE ON JUDICIARY REFORM -------------- ¶14. (C) Spratlen met with Members of Parliament Leila Sydykova, Chair of the Committee on Defense, Security, and Legal Reform; Zainiddin Kurmanov, Chair of the Committee on Constitutional Law, State Structure, and Human Rights; and Irina Letova, a deputy on Sydykova's Committee. The MPs estimated that ratification would be completed within two weeks from the time parliament received the text from the presidential administration, which had not yet occurred. The MPs anticipated passage of several laws within the next three months, including regulation of jury trials, judges' status, and amendments to the National Council on Judicial Affairs (to bring it in line with the new Constitution). Parliament has not yet planned review of any legislation concerning the police. NGOs: HOLD THE GOVERNMENT ACCOUNTABLE -------------- ¶15. (C) Spratlen also met with Kyrgyz NGO leaders Aziza Abdurasulova of Kylym Shamy, Tolekan Ismailova of Citizens Against Corruption, Cholpon Jakupova of Adilet, and Media Ombudsman Shamaral Maichiev to discuss the Threshold Program. All of the NGO leaders expressed support for the Program as addressing priority concerns for Kyrgyzstan. Abdurasulova and Ismailova explained that they had held a press conference and recommended delaying the program until the government demonstrated its commitment to democratic reform with concrete steps. All expressed interest in participating in monitoring of Program components, and they supported the idea of holding the Kyrgyz government accountable through a system of rigorous indicators. Jakupova noted the geopolitical implications of the Threshold Program, welcoming U.S. involvement in judicial and law enforcement reforms, rather than allowing countries such as Russia, Kazakhstan, or China to enter these niches. BISHKEK 00000281 004.2 OF 004 COMMENT -------------- ¶16. (C) Spratlen used the low-key signing of the MCA Threshold Country Program agreement, as well as the subsequent meetings on implementation of the Program, to register U.S. concerns about democracy and governance and also to urge full commitment to the reforms supported by the Program. Implementing the Threshold Program will be a challenge as ministries have not planned for the profound changes the program will engender. But the Threshold Program has crucial support from the top of the Kyrgyz government, and most Kyrgyz officials connected to the Program realize the need for reforms in the judiciary, the procuracy, and law enforcement. ¶17. (U) A/DAS Spratlen has cleared this cable. YOVANOVITCH