GEORGIA BI-WEEKLY UPDATE MARCH 21

UNCLAS SECTION 01 OF 02 TBILISI 000497 SIPDIS SIPDIS E.O. 12958: N/A TAGS: PREL PGOV PHUM ECON KDEM GG SUBJECT: GEORGIA BI-WEEKLY UPDATE MARCH 21 ¶1. This cable contains current items of political, economic, and social interest concerning Georgia during the weeks of March 8-21. Okruashvili Asserts Control of Shrinking Party -------------- - ¶2. On March 15, the political party United Georgia elected its most prominent founder, former Defense Minister Irakli Okruashvili, to the post of chair of the party in absentia. Former party chair Gia Tortladze and former party secretary Gia Tsagareishvili, both MPs, formally left the party March 15. These are not the first defections from the party this month. On March 4, MP Keti Makharashvili announced that she was quitting the party and would no longer remain in politics. On March 11, a group of young members of the party held a news conference in the offices of the ruling National Movement and announced that they were leaving Okruashvili's party to join the ruling party. These young party members said they objected to the opposition's tactics of street protests and tents. Okruashvili, who is currently in France fighting extradition to Georgia on corruption charges, gave an interview to Rustavi 2 television March 20, in which he strongly criticized both the government and the opposition for their tactics in ongoing negotiations, and spoke favorably about a possible election boycott. Christian Democrats Plot Party's Course -------------- ¶3. On March 11, Poloffs met with Giorgi Rukhadze, the head of the international division of the newly established Christian Democratic Movement, which is led by former Imedi TV anchor Giorgi Targamadze. Rukhadze said the Christian Democrats are a center-right party based on Christian ethics and traditional moral values, but also strongly support separation of church and state. The party sees Christian Democratic parties in Germany and Poland as models. Financially, the party hopes to rely on small and medium-size businesses and foreign supporters. The party supports reduction of poverty, a free market economy, development of agriculture, membership in NATO, and social dialogue between all classes of the population. Rukhadze said the party currently has approximately 5,000 members all over Georgia. Rukhadze said the party has not decided yet whether it will participate in elections alone or in a block with other parties. Women's Party Established -------------- ¶4. MP Guguli Maghradze (who left the ruling United National Movement in November) founded a new political party, the Georgian Women's Party, on March 12. The new party describes itself as center-right and will focus primarily on supporting women's active involvement in politics. Maghradze says the party plans to cooperate with all political forces for whom the principles of equality and justice are important. She said the party would consider running in the parliamentary election in May, but she did not indicate if it would run together with other parties. Perhaps suggesting a likely alliance, Nikoloz Liluashvili, the political secretary of the newly-formed opposition Christian Democratic Movement, congratulated Maghradze at the event in which she announced the new party. Former Patarkatsishvili Supporters Form New Parties -------------- -------------- ¶5. Gocha Jojua, who headed the late Badri Patarkatsishvili's presidential campaign, officially launched a new political party called Our Georgia on March 14, with the stated goal of creating a state based on justice and "removing Saakashvili from power." Jojua said that while the party currently has no financial backing, it would try to keep the identity of any future donors secret to protect them from retribution by Saakashvili. Another political party which emerged from Patarkatsishvili's campaign team is the Democratic Party of United Georgia, which was established on March ¶19. Gia Shervashidze, former commander of interior forces, is the chairman of the party and Davit Shukakidze, who headed Patarkatsishvili's election headquarters, is the secretary general. Shukakidze said that the party would have a center-right orientation. Georgia-Russia Flights Reportedly to Resume Soon -------------- --- ¶6. Russian aviation authorities have informed the Georgian side of their agreement to resume air traffic between Russia and Georgia on March 25, on the basis of accords between aviation authorities of the two countries. Air traffic between Russia and Georgia stopped in October 2006 as a part of Russia's economic sanctions against Georgia. Moscow had previously told Tbilisi that the resumption of air traffic required the payment of Georgian airlines' debts for the services of Russian air traffic controllers. Georgia's biggest airline, Georgian Airways, has already paid USD 2 million for air navigation services to Russia. The rest of the debt, which is about USD 1.7 million, will be paid gradually by other air companies until the end of 2008 in line with a schedule agreed upon with Russia. A separate outstanding issue is an alleged debt to Rosaeronavigatsia, accumulated in the early 1990s by Georgian companies that later went bankrupt. Georgian Airways denies it has any obligation to pay the Roseaeronavigatsia debt. TBILISI 00000497 002 OF 002 Georgia Attracts Arab Investors -------------- ¶7. A billionaire Saudi prince, Alwaleed bin Talal Alsaud, listed as number thirteen in Forbes 2007 rankings of the world's richest people, arrived March 14 on a visit to study Georgia as a potential location for investment. He met with high-ranking Georgian officials and traveled to several regions, including Adjara, where President Saakashvili personally familiarized him with investment opportunities. Two other groups from the Arabian peninsula have already demonstrated their confidence in Georgia's economy. Arabian Rakeen, established in the UAE in 2006, is implementing the ambitious Uptown Tbilisi project in Dighomi, on the outskirts of Tbilisi close to the U.S. Embassy. The project envisages a USD 630 million investment for an 80,000 square meter development, including a premium residential area and commercial and entertainment centers. Another project of the company is a complex in Tabakhmela (Tbilisi suburb),designed by the American company TAA, that includes residential villas, a medical clinic, tennis courts, a golf course, and a school. Another UAE company, Dhabi Group, has acquired Standard Bank, previously owned by Badri Patarkatsishvili, and intends to acquire controlling stock in the Kempinski Hotel construction project in Tbilisi from Swiss investment company Capital Vostok. Romanian Senate Chairman Visits Georgia -------------- ¶8. During a four-day visit, Chairman of the Romanian Senate Nicolae Vacaroiu met Parliament Speaker Burjanadze, Prime Minister Gurgenidze, Finance Minister Gilauri and other senior officials. On March 17 Burjanadze and Vacaroiu discussed economic cooperation and the importance of Romania's support for Georgia's NATO integration, including at the upcoming NATO summit in Bucharest. Burjanadze asked Vacaroiu to provide Romanian observers for Georgia's upcoming parliamentary elections. Government Hosts Human Rights Forum -------------- ¶9. On March 15, the Georgian government held a Human Rights forum at a resort on Georgia's Bazuleti Lake. NGO representatives dealing with prisons, juvenile justice, minority rights, and domestic violence were invited. The Minister of Justice, the Prosecutor General, representatives from the penitentiary system, and the Public Defender participated in the meeting, which was chaired by Deputy Minister of Internal Affairs Eka Zguladze. A representative from UNICEF made a presentation on the current situation of juvenile justice in Georgia and future plans to address deficiencies. Government representative made opening remarks and fielded questions from NGO representatives throughout the daylong session. According to the Public Defender's office, this is the first time the government has organized such an event since 2003. PERRY