DAS KROL'S MEETINGS IN KYRGYZSTAN

C O N F I D E N T I A L SECTION 01 OF 04 BISHKEK 000679 SIPDIS DEPT FOR SCA/CEN E.O. 12958: DECL: 07/01/2018 TAGS: PGOV PREL KDEM MARR KG SUBJECT: DAS KROL'S MEETINGS IN KYRGYZSTAN REF: BISHKEK 655 BISHKEK 00000679 001.2 OF 004 Classified By: DCM Lee Litzenberger, Reasons 1.4 (b) and (d). ¶1. (U) Summary: During a June 19-22 visit to Kyrgyzstan, Deputy Assistant Secretary George Krol met with Security Council Secretary Isakov, Prime Minister Chudinov, Presidential Chief of Staff Sadyrkulov, and Foreign Minister Karabayev. Krol also held roundtable discussions with political opposition figures, with civil society activists, and with representatives of international financial institutions and donor organizations. Krol also made opening remarks at the embassy's "Doing Business with the U.S." seminar, organized with Department of Commerce support. Charge Litzenberger accompanied Krol in all meetings. ¶2. (C) Prior to Krol's arrival, the Kyrgyz press was filled with stories asserting that the purpose of his visit was to negotiate a major expansion of the Manas Coalition Airbase in Bishkek. In his meetings and press interviews, Krol successfully quashed the rumors about base expansion and clarified the U.S. proposal to build an aircraft parking ramp on land already leased for the base. In his meetings with government officials, Krol discussed projections of a deteriorating economic and energy situation, and he heard requests for additional U.S. assistance focused on economic support and food security. Kyrgyz officials reiterated the government's commitment to the presence of the airbase, but also warned that the civilian population was upset over "unresolved issues" connected to the base. Opposition figures asked for U.S. support to create "independent" television, and civil society leaders expressed concern about a rise in religious extremism. End Summary. Security Council: Supportive of Cooperation -------------- ¶3. (C) DAS Krol met June 20 with recently appointed Security Council Secretary (and former Minister of Defense) Lt. Gen Ismail Isakov. Isakov said that he supported all aspects of the bilateral relationship, and he appreciated U.S. economic, humanitarian, and especially security assistance. He said that the government was fully committed to the Manas Airbase and the fight against terrorism in Afghanistan. Isakov said that the government had not yet taken a decision on the proposed parking ramp. He understood that the parking ramp would improve safety at the airport, but there were political complications. Isakov noted that the base itself was controversial due to concerns over its impact on the ecology and the Ivanov shooting, and Kyrgyzstan had commitments to other organizations. Isakov also raised the prospect of serious economic and energy problems for Kyrgyzstan, with rising food, fuel, and transportation costs, and he said that additional assistance would be needed in order to avoid a crisis. PM Chudinov: Looking for Economic Assistance -------------- ¶4. (C) Prime Minister Igor Chudinov thanked Krol for continued U.S. support to Kyrgyzstan. He said that Kyrgyzstan was making progress on important issues, and he cited the recent opening in Bishkek of the UN's regional Office of the High Commissioner for Human Rights as an endorsement of Kyrgyzstan's commitment to human rights. Chudinov asked for support to arrange an official visit for President Bakiyev to Washington, which he said would have "major significance" for bilateral cooperation. He ran through a list of other issues, including seeking U.S. support for Kyrgyzstan to be OSCE Chair in 2013, establishing Kyrgyz consular services in New York, and the Yasynov case (a nine-year-old traffic accident case in which a Kyrgyz citizen was allegedly permanently injured by a vehicle driven by an embassy officer). BISHKEK 00000679 002.2 OF 004 ¶5. (C) DAS Krol asked Chudinov about the economic situation, and Chudinov outlined Kyrgyzstan's vulnerability to "imported inflation" because of its dependence on imports of wheat and fuel. Chudinov said that the central bank was taking measures, but these measures would not be enough to control inflation. He said that the government was taking steps to provide support to farmers and improve the social safety net, but Kyrgyzstan would need additional outside support. Chudinov delivered a letter, addressed to the Secretary, requesting $10 million in U.S. assistance for food security projects, including formation of a state "Agrofood" corporation, establishment of a development fund, and opening a fund to provide subsidies to vulnerable people (Ref A). ¶6. (C) Chudinov also noted shortfalls in electricity production, due in part to the cyclical water shortages. He said that he understood the irrigation needs of downstream users in neighboring countries, but added that such users should be willing to pay for the value of the water. He said that Kyrgyzstan's main Toktogul reservoir had been built in the Soviet era as part of a regional system, with water in the summer traded for gas and mazut in the winter. Now, however, that system had broken down, with Kyrgyzstan having to pay "more and more" for gas and mazut, but downstream users not paying for water. ¶7. (C) Turning to the parking ramp proposal, Krol said that the numerous press reports about base expansion were completely incorrect. He explained that the parking ramp would be built on land already leased by the airbase, and the ramp would improve safety at the airport by reducing congestion in front of the passenger terminal. In addition, construction of the ramp would provide substantial economic benefits to Kyrgyzstan. Acknowledging some earlier confusion over the scope of the project, Chudinov listened closely to the points. He said that the decision whether to go forward with the project was still open, and the next step would be a meeting of government experts to discuss the proposal. Sadyrkulov: Progress Step-by-Step -------------- ¶8. (C) Presidential Chief of Staff Medet Sadyrkulov claimed that Kyrgyzstan was trying to settle water and energy issues with its neighbors. He said that President Bakiyev had been unsuccessful so far in discussing these issues with President Karimov of Uzbekistan, but he hoped that they would talk again at the SCO summit in Dushanbe. Sadyrkulov said there would be a full government meeting with Bakiyev in July to discuss the energy and water situation. ¶9. (C) On the proposed airport parking ramp, Sadyrkulov told Krol that there was necessary "political will" to go forward with the project, and he said that the U.S. should meet with the Kyrgyz "experts" to explain the proposal clearly, as there had been a lot of "disinformation" in the press about the proposal. Sadyrkulov said that the meeting would occur the following week. (Note: As of June 30, the Kyrgyz have not organized the promised "experts" meeting. End Note.) ¶10. (C) When questioned by Krol about problems with recent legislation and court cases against opposition newspapers, Sadyrkulov defended the legislation that kept the state television channel under the control of the president, saying that this was important to stability. He maintained that Kyrgyzstan still had a free press, as there were other broadcast channels and numerous newspapers. He said that the opposition "De Fakto" newspaper had published a "completely false" letter, with a fake name and address, alleging corruption, and now the matter was properly with the courts. Sadyrkulov criticized the current opposition, saying that they only stood "against things, rather than offering a positive platform." He said there was a serious problem with BISHKEK 00000679 003.2 OF 004 growing religious extremism, but he assured that the new draft law on religion would protect religious freedom and any problems (such as the 200-member threshold for registration) would be worked out. Sadyrkulov said that the new legislation was all part of the process of development, with steps toward democracy. Karabayev: More Economic Cooperation Needed -------------- ¶11. (C) Foreign Minister Ednan Karabayev told DAS Krol that the two sides should deepen cooperation, especially on trade and investment projects. Karabayev complained of the lack of results from the "concrete" investment projects he had proposed last year, and said that if we moved forward on these proposals, other issues (i.e., base issues) would go away. DAS Krol pointed out that investment depends on the conditions in the country. The U.S. can help facilitate connections, as we were doing with the Trade and Investment Framework Agreement council meeting in Dushanbe earlier in the week, as well as with the "Doing Business with the U.S." seminar in Bishkek earlier that day, but private sector investors make decisions based on the risks and returns in a particular market. Construction of the airport parking ramp, Krol said, would represent a major investment project in Krygyzstan. Karabayev said that the Kyrgyz government paid serious attention to improving the country's ranking on investment climate surveys, and he pointed out that the new tax code had considered the input of the business community. ¶12. (C) Karabayev raised a number of other issues, including asking for the results of the investigation into the Ivanov shooting. He raised the nine-year-old Yasynov case, complaining that there were "no results" despite many meetings. Karabayev asked for a response to the Kyrgyz request to open a consular office in New York. Karabayev also defended recent legislation, asserting that Kyrgyzstan was the leader in legal reform and democracy in the region. Opposition: Help Us with Independent Media -------------- ¶13. (C) Opposition leaders and former MPs Azimbek Beknazarov, Temir Sariyev, and Omurbek Tekebayev each relayed a negative outlook on Kyrgyzstan's democratic development, asserting that the upcoming municipal and the next presidential elections would be neither free nor fair. Beknazarov said that Kyrgyzstan was simply following examples set by Russia and Kazakhstan, with a one-party system already in place and additional restrictions coming. The group focused on support for establishing an "independent" nationwide television station, as a counterweight to the "heavily controlled" state TV channel, from which most Kyrgyz get their news. They also suggested opening an independent printing press in southern Kyrgyzstan. Both Sariyev and Tekebayev concluded that, despite their shared mistrust of the electoral process, they would continue to focus on the local elections in the fall. They said that "people are tired of public demonstrations," adding that "change brought about by force sets a bad precedent for the future." Comment -------------- ¶14. (C) Prior to DAS Krol's arrival in Bishkek, Kyrgyz newspapers ran stories claiming that Krol was coming to Bishkek to negotiate a 300-hectare expansion of the Coalition Airbase at Manas. In his meetings and in his interviews with local media, Krol was able to dispel the rumors of base expansion, and he explained clearly that the proposed parking ramp, which would be built on 10 hectares already leased for the base, would be a long-term asset for the airport. DAS Krol's discussions also highlighted the seriousness of the current water deficit for both electricity production and BISHKEK 00000679 004.2 OF 004 food security, and the Kyrgyz government will continue to seek additional support from the U.S. and other donors to address the problems expected by the fall and winter. ¶15. (U) DAS Krol has cleared this cable. YOVANOVITCH