Identifier
Created
Classification
Origin
08TASHKENT1012
2008-08-29 09:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Tashkent
Cable title:  

UZBEKISTAN: THE MANGO ROAD TO NORTH-SOUTH

Tags:  ECON EFIN ETRD KCOR SOCI UZ 
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VZCZCXRO1531
RR RUEHLN RUEHVK RUEHYG
DE RUEHNT #1012 2420918
ZNR UUUUU ZZH
R 290918Z AUG 08
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC 0230
INFO RUCNCIS/CIS COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 1116
RUEHLM/AMEMBASSY COLOMBO 0789
RUEHKA/AMEMBASSY DHAKA 0556
RUEHIL/AMEMBASSY ISLAMABAD 4517
RUEHBUL/AMEMBASSY KABUL 2809
RUEHKT/AMEMBASSY KATHMANDU 0828
RUEHNE/AMEMBASSY NEW DELHI 1467
UNCLAS TASHKENT 001012 

SENSITIVE
SIPDIS

DEPARTMENT FOR SCA/CEN AND EB

E.O. 12958: N/A
TAGS: ECON EFIN ETRD KCOR SOCI UZ
SUBJECT: UZBEKISTAN: THE MANGO ROAD TO NORTH-SOUTH
INTEGRATION

UNCLAS TASHKENT 001012

SENSITIVE
SIPDIS

DEPARTMENT FOR SCA/CEN AND EB

E.O. 12958: N/A
TAGS: ECON EFIN ETRD KCOR SOCI UZ
SUBJECT: UZBEKISTAN: THE MANGO ROAD TO NORTH-SOUTH
INTEGRATION


1. (SBU) Dr. Khalid M. Chaudhry, a Pakastani national who is
General Director of Classic International, has been a regular
visitor to the U.S. Embassy in Tashkent for many years. One
of the founders of the American Chamber of Commerce branch in
Tashkent in the 1990s, Dr. Chaudhry is best known at the
Embassy for bringing fresh mangos to Embassy functions. In a
visit on August 12, Dr. Chaudhry gave Charge and Econoff an
eye opening description of what it takes to thrive as a
businessman engaged in international trade in Uzbekistan
today.


2. (SBU) Classic International has been in business for
fourteen years and has interests in several areas. One of
these is the import of fruits, clothing, and shoes overland
by truck from Pakistan via Afghanistan. Trucks driven by
Pakistanis go overland to the river port at Termez, where
their cargo is sent across the river by ferry to be picked up
by Uzbek drivers on the other side. On average it takes 7-8
days for goods sent from Pakistan to reach market in
Uzbekistan. Classic International also runs a chain of
Konica photo shops in Tashkent, for which all equipment and
processing chemicals are imported via the same overland route
from Pakistan. Finally, Dr. Chaudrhy owns and operates the
"Salt and Pepper" restaurant in Tashkent.


3. (SBU) Dr. Chaudrhy told us matter of factly what it takes
to stay in business in Uzbekistan. He knows whom he needs to
pay in the police, customs, the health and tax departments,
and every other Uzbek agency that could have an influence on
his business operations. He even knows whom to pay in the
municipal government to avoid being fined, for example, for
failing to sweep the leaves in front of his photo shops. He
makes the macaroni for his restaurant and told us that
although the market price for flour is 1200 soum per kilo
(approximately $1 USD),he can get the government rate of 560
soum per kilo by paying an additional 200 soum per kilo to
the right person. By knowing how the system works, Dr.
Chaudrhy told us proudly that he has not missed a single day
of business in fourteen years because of interference by
Uzbek authorities. He further told us that he has shied away
from offers of patronage from highly placed officials because
he knows that an official who is well placed today could be
in disfavor tomorrow.


4. (SBU) Dr. Chaudrhy said that to date he has not been
involved in exports from Uzbekistan, but he is considering
exporting peanuts and beans to Pakistan next year. If he
does, he said it would be much cheaper to export through
Iran, where hundreds of Uzbek trucks already make the border
crossing daily. He told us it would cost $600-$700 USD per
truckload to hire an Uzbek driver to make the trip. At 75
million soum ($56,000 USD),however, a wholesale export
license is not cheap.

COMMENT
--------------


5. (SBU) A quiet, unassuming Pakistani who has made his home
with his family in Tashkent since 1994, Dr. Chaudhry provides
a good example of the type of north-south economic
integration that the USG hopes to encourage in Central Asia.
At the same time, he provides a glimpse into the reality of
day-to-day business operations, a reality that runs directly
counter to the norms of business dealings in the West. His
success and respected position in Tashkent business circles
demonstrates, however, that anyone contemplating opening a
business in Uzbekistan has much to learn from him.
NORLAND