Identifier
Created
Classification
Origin
08TBILISI2117
2008-11-13 13:43:00
CONFIDENTIAL
Embassy Tbilisi
Cable title:  

GEORGIA: EFFECTS OF WAR CHALLENGE PROGRESS IN

Tags:  PGOV PREL PHUM TU GG 
pdf how-to read a cable
VZCZCXRO0020
PP RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHSI #2117/01 3181343
ZNY CCCCC ZZH
P 131343Z NOV 08
FM AMEMBASSY TBILISI
TO RUEHC/SECSTATE WASHDC PRIORITY 0406
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 TBILISI 002117 

SENSITIVE
SIPDIS

DEPT FOR EUR/CARC

E.O. 12958: DECL: 11/13/2018
TAGS: PGOV PREL PHUM TU GG
SUBJECT: GEORGIA: EFFECTS OF WAR CHALLENGE PROGRESS IN
ADJARA

REF: A. 08 TBILISI 2073

B. 07 TBILISI 2393

Classified By: AMBASSADOR JOHN F. TEFFT FOR REASONS 1.4 (B) AND (D)

C O N F I D E N T I A L SECTION 01 OF 02 TBILISI 002117

SENSITIVE
SIPDIS

DEPT FOR EUR/CARC

E.O. 12958: DECL: 11/13/2018
TAGS: PGOV PREL PHUM TU GG
SUBJECT: GEORGIA: EFFECTS OF WAR CHALLENGE PROGRESS IN
ADJARA

REF: A. 08 TBILISI 2073

B. 07 TBILISI 2393

Classified By: AMBASSADOR JOHN F. TEFFT FOR REASONS 1.4 (B) AND (D)


1. (C) Begin Summary: Following November 3 elections for
the Supreme Council of the Autonomous Republic of Adjara in
southwestern Georgia (ref A),Poloff met local officials and
the Turkish Consul. The region was recovering from lost
tourism revenues as a result of the August war with Russia.
Local officials and the Turkish diplomat agreed that
unemployment was the region's most critical problem. The
governor was working for economic development and increased
tourism (ref B). He said several new factories and hotels
were under construction, and oil shipments were back to
pre-war levels. Water projects were underway and reforms
were continuing, albeit slowly. The recently-arrived Turkish
Consul Thugrul Ozten said Turkey wanted to help Georgia in
its development, and noted significant Turkish investment in
Adjara. Ozten candidly noted frustration with the Georgian
government but affirmed that Turkey fully supported Georgia's
territorial integrity and saw Adjara's semi-autonomy as a
possible example for re-integration. End Summary.


2. (C) Comment: The 18-member, newly-elected Supreme Council
is dominated by businessmen tied to the ruling United
National Movement (UNM) party. It was unclear how they will
govern as the central government has generally moved to
consolidate authority over local administrative bodies
throughout Georgia. Recent amendments to the Adjaran
Constitution did not expand the Council's practical
responsibility. Construction and economic activity were
continuing in Batumi, although a slower pace of construction
was noted compared to summer 2007. It appeared that the war
in August has had a negative affect on investment activity,
but signs of progress in the region were emerging. End
comment.

TURNOVER TIME FOR THE SUPREME COUNCIL


3. (C) Outgoing Chairman of Adjara's Supreme Council Mikheil
Makharadze, told Poloff he may not remain Chairman despite
his re-election. He said that the new council's
members-elect would need time to adapt from being businessmen

to politicians, and the new council's priorities were still
unclear. He acknowledged that August was painful for Adjara,
and said unemployment was the region's biggest challenge.
Makharadze said that the August war with Russia had deterred
tourists, as only 40,000 visitors came in August compared to
170,000 in 2007. According to local statistics, September
tourism numbers approached those of 2007, although Batumi and
Kobuleti were largely empty during early-November. He said
the August events proved to him the need for Georgian and
Adjaran officials to work more closely with European
governments and institutions. On the question of Adjara's
autonomy, he said that the Adjaran Chamber of Control, which
collected and dispersed public funds, reported to the
Georgian Parliament rather than the Supreme Council. He said
the Council must get the approval from the governor's office
to spend "even 50 GEL" (30 USD). Makharadze said the new
Supreme Council, which will convene in December, was still
analyzing the current situation. He noted that building
relationships with the media to explain governmental actions
and reaching out to Adjarans living in the villages would be
key goals for the new council.

THE GOVERNOR'S VIEW


4. (C) Governor of Adjara, Levan Varshalomidze, told Poloff
that he continue to work to implement reforms of the
government administration and economy. He acknowledged such
Qgovernment administration and economy. He acknowledged such
reform was hard on residents, and especially difficult for
those in the region's mountainous villages. He noted that
his own staff had been reduced by over 60 percent over the
previous two years. Also claiming unemployment is the
region's greatest challenge, Varshalomidze was relentlessly
working to increase tourism (ref B). He hoped to see one
million tourists annually by 2010 visit Adjara.


5. (C) Varshalomidze said new factories producing textiles
and pharmaceuticals, as well as a sunflower oil processing
facility, were expected to open in November. In addition, he
said Hilton, Radisson, and Hyatt hotels were under
construction in Adjara. Varshalomidze said his government
had tourism agencies in Armenia and Azerbaijan and would
launch a marketing campaign in those countries in 2009.
Furthermore, oil shipments were back to pre-war levels.
Varshalomidze admitted he was frustrated with the slow pace
of reform. He noted that a new water system for Batumi,

TBILISI 00002117 002 OF 002


backed by a 58 million USD German loan and planned several
years ago, was finally opened two weeks earlier. Similarly,
a 25 million USD Dutch grant would supply a water system for
Kobuleti next year. Varshalomidze says he remained committed
to USAID's Public Administration Reform program (ref B),
although he provided few details on its current state. He
also said development of civil society remains a priority.
His government will hold an open house in December, with
NGOs, to promote the next wave of the Public Administration
Reform program.

TURKS WORKING TOWARD STABILITY


6. (C) Ozten, the recently-arrived Turkish Consul, welcomed
the three Poloffs into Turkey's newly-renovated consulate
next to the Intourist Hotel. He said a secure, stable and
democratic Georgia was in Turkey's interest. To this end,
Ozten said Turkey was trying to help Georgia in its
development, and Turkish investment in Adjara totaled more
than 90 million USD and employed more than 3,000 people.
Turkey had provided a visa-free regime and permitted
Georgians to work and trade across the Turkish-Adjaran
border, at a cost of lost tax revenues. Ozten noted an
increasing number of Turkish businessmen coming to Georgia.
He agreed that unemployment was the biggest challenge facing
the region. The Consul affirmed that Turkey fully supported
Georgia's territorial integrity and had counseled the GOG to
maintain Adjara's autonomy as an example to other separatist
regions. He expressed concern at Adjara's lessening autonomy
and the central government's role, which he saw as a reaction
to Aslan Abashidze's previous iron-grip on power.


7. (C) The Consul candidly noted some frustration with the
Georgian government, due to "its tendency to take shortcuts
with its democratic institutions." He worried that the
government's desire to do things too fast was
counter-productive to the goals of democratization, and could
lead to mistakes. A particularly worrisome example, in
Ozten's view, was the strong, non-secular correlation between
Georgian nationalism, the Georgian Orthodox Church, and the
UNM which had been increasing in Adjara. He said that
non-Orthodox Adjarans were already feeling estranged from
full participation in society, and that many who spoke
Turkish as a second language could feel ostracized. He
claimed some deputy ministers were working closely with the
Georgian Orthodox Church and leading mass baptisms. (Note:
post will review this claim septel. End note.) Ozten said
his government was willing to grant Georgia leeway on its
path of democratic development, but said "the government must
show progress." On Georgia's new Prime Minister, former
Ambassador to Turkey Lado Mgaloblishvili, Ozten agreed it was
beneficial that Mgaloblishvili knows Turkey and its leaders,
but believed it was more important that average Georgians
visit Turkey and return with a better understanding of the
country and its people.
TEFFT