SUPERJET READYING FOR TAKEOFF IN KOMSOMOLSK

UNCLAS VLADIVOSTOK 000031 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ECON EINV PGOV RS SUBJECT: SUPERJET READYING FOR TAKEOFF IN KOMSOMOLSK ¶1. (U) Komsomol'sk-na-Amure is the third largest city in the Russian Far East and home to the Sukhoi Superjet, a multinational project that involves Boeing and a half a dozen other U.S. firms, as well as German and French aviation companies. At the Sukhoi assembly plant, CG saw one Superjet that appeared to be almost complete, and another two jets under construction. Superjet is meant to be a fuel efficient, quiet, medium range regional jet capable of handling 75-95 passengers. The jet can be configured for commercial passenger airlines, or as a luxury business jet with a speed of 780 kilometers per hour. Most of the customers so far are Russian firms, according to General Director Sergey Skryabin, but Sukhoi sees a lot of potential in Asia and hopes to expand rapidly. ¶2. (U) Skryabin said on March 19 that the first test flight would be in April, but recent news reports say test flights may be delayed. Other American firms involved in the Superjet include Goodrich, Thales, Vibro-meter, Hamilton Sundstrand, Curtiss Wright, B/E Aerospace and Honeywell. A request for photos made Skryabin a bit nervous so we had to settle for a photo of the Superjet on a city billboard for the Consulate website, but the factory floor looked immaculate and fully up to international standards. ¶3. (U) Ironically, for a Mayor with one of the most successful U.S.-Russian joint ventures in his town, Komsomol'sk Mayor Vladimir Mikhalyev seemed singularly uninterested in developing further U.S.-Russian economic ties. The Mayor and his staff met with CG for 15 minutes, dismissed the idea of a sister city relationship, and even made sure his aides did not include the press in the perfunctory meeting. The Mayor, a former engineer, has 17 years of experience running Komsomol'sk, an industrial city upriver from Khabarvosk on the Amur River. City population has dropped from a peak of 300,000 to some 270,000, the majority employed in the city's aircraft and ship manufacturing plants, wood processing facilities, and oil and gas refineries. The Mayor did say that the city has room to expand and plenty of energy and infrastructure for new firms, as well as a tax free zone. But so far, foreign firms are concentrated in the aviation sector. Unemployment is less than two percent, and the city looks relatively prosperous, clean, and busy. Komsomol'sk has not requested a quota of Chinese laborers, but the Mayor admits that the population drain creates a labor shortage that is a major challenge for the city. ¶4. (U) CG delivered a lecture on American Diplomacy to some 80 students at the Amurskiy Pedagogical State University. In contrast to the Mayor, the Rector was extremely welcoming and eager to expand bilateral contacts. The students spoke English well and participated in a lively exchange on international affairs. Four American teachers working at the University for a month long teaching program also attended, and shared their experiences living in Komsomol'sk. English remains the number one foreign language at the University, although Chinese is gaining fast. As with most Russian Far East universities, few of the students have been to the U.S., but almost all of them have been to China. In fact, more have traveled to China than Moscow because of the expense of air travel between the RFE and Russia's capital. ¶5. (U) Comment: Komsomol'sk has many advantages, good infrastructure, an educated populace, and significant natural resources, but the somewhat unreconstructed attitude towards Americans makes it hard to list the city administration as "business friendly." Still, Boeing and other American companies have found a way to do business that is mutually beneficial, has great long term prospects, and that could lead to spin-offs in other directions. The Mayor may well be open to concrete American proposals, but it's not likely he will be sending any trade missions to the U.S. anytime soon. ARMBRUSTER