Identifier
Created
Classification
Origin
09ASHGABAT988
2009-08-04 05:18:00
CONFIDENTIAL
Embassy Ashgabat
Cable title:
TURKMENISTAN: BOEING CONTRACT DELAY WAS ALL ABOUT
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C O N F I D E N T I A L ASHGABAT 000988
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: DECL: 08/04/2019
TAGS: ETRD ECON PGOV PREL TX
SUBJECT: TURKMENISTAN: BOEING CONTRACT DELAY WAS ALL ABOUT
MONEY
Classified By: Charge Richard Miles. Reasons: 1.4 (b) and (d)
C O N F I D E N T I A L ASHGABAT 000988
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: DECL: 08/04/2019
TAGS: ETRD ECON PGOV PREL TX
SUBJECT: TURKMENISTAN: BOEING CONTRACT DELAY WAS ALL ABOUT
MONEY
Classified By: Charge Richard Miles. Reasons: 1.4 (b) and (d)
1. (C) On August 3, Boeing's regional sales representatives
called on the Charge and reported that the contracts for the
sale of three 737 aircraft to Turkmenistan Airlines (THY)
were signed earlier in the day in Ashgabat. The two
representatives were clearly delighted and relieved that the
formal sale had finally taken place, and thanked the Charge
for post's support. They also confirmed that the delay in
signing the contract, which the two sides had negotiated in
April, was due to a clause in Turkmenistan's presidential
decree authorizing the sale that stipulated the $120 million
sum be paid in one "lump sum." Boeing had only requested
that a portion of the purchase price be paid upon signing of
the contract, and with additional payments upon the delivery
of each aircraft. The THY Chairman reportedly told them
"point blank" that the Turkmen government simply did not have
the cash available to make the payment, and that President
Berdimuhammedov finally "ordered" the Central Bank to make
the funds available immediately. Turkmenistan will
reportedly make the payment in fifteen days, before the
aircraft are scheduled for delivery in Seattle in late August.
FUZZY ACQUISITION PLAN
2. (C) The representatives said that Berdimuhammedov likes
"anything and everything American," and that THY officials
have discussed the possibility of purchasing some wide-bodied
aircraft from Boeing in the future. They commented, however,
that Turkmen officials seem to have no clear plan or timeline
for future aircraft acquisitions, and that in discussions,
the Turkmen say things akin to, "Let's see, we'll take one of
these and one of these," and are impressed by various types
of "new and fancy" technology that they consider "out of this
world."
FM SPEAKS FLAWLESS TURKISH, TOO
3. (C) One of the Boeing representatives, who speaks Turkish,
met with Foreign Minister Rashid Meredov during his visit to
Washington in June, and noted that Meredov speaks fluent,
unaccented Turkish.
PRESIDENTIAL DIET
4. (C) The representatives said that President
Berdimuhammedov had recently paid a visit to THY offices at
the Ashgabat International Airport and reportedly concluded
that some of the senior managers are overweight, and ordered
them to "lose weight immediately." (One reportedly had dinner
with the Boeing representatives this week and, after picking
at his food throughout the meal, apologized and explained
that he had been told to "reduce or else.").
5. (C) COMMENT: From all accounts, the unexplained delay in
signing the contract was due to a simple cash flow problem on
the part of the Turkmen. It is unclear why the presidential
decree would stipulate payment terms less favorable to
Turkmenistan than those that Boeing had actually requested.
END COMMENT.
MILES
SIPDIS
STATE FOR SCA/CEN
E.O. 12958: DECL: 08/04/2019
TAGS: ETRD ECON PGOV PREL TX
SUBJECT: TURKMENISTAN: BOEING CONTRACT DELAY WAS ALL ABOUT
MONEY
Classified By: Charge Richard Miles. Reasons: 1.4 (b) and (d)
1. (C) On August 3, Boeing's regional sales representatives
called on the Charge and reported that the contracts for the
sale of three 737 aircraft to Turkmenistan Airlines (THY)
were signed earlier in the day in Ashgabat. The two
representatives were clearly delighted and relieved that the
formal sale had finally taken place, and thanked the Charge
for post's support. They also confirmed that the delay in
signing the contract, which the two sides had negotiated in
April, was due to a clause in Turkmenistan's presidential
decree authorizing the sale that stipulated the $120 million
sum be paid in one "lump sum." Boeing had only requested
that a portion of the purchase price be paid upon signing of
the contract, and with additional payments upon the delivery
of each aircraft. The THY Chairman reportedly told them
"point blank" that the Turkmen government simply did not have
the cash available to make the payment, and that President
Berdimuhammedov finally "ordered" the Central Bank to make
the funds available immediately. Turkmenistan will
reportedly make the payment in fifteen days, before the
aircraft are scheduled for delivery in Seattle in late August.
FUZZY ACQUISITION PLAN
2. (C) The representatives said that Berdimuhammedov likes
"anything and everything American," and that THY officials
have discussed the possibility of purchasing some wide-bodied
aircraft from Boeing in the future. They commented, however,
that Turkmen officials seem to have no clear plan or timeline
for future aircraft acquisitions, and that in discussions,
the Turkmen say things akin to, "Let's see, we'll take one of
these and one of these," and are impressed by various types
of "new and fancy" technology that they consider "out of this
world."
FM SPEAKS FLAWLESS TURKISH, TOO
3. (C) One of the Boeing representatives, who speaks Turkish,
met with Foreign Minister Rashid Meredov during his visit to
Washington in June, and noted that Meredov speaks fluent,
unaccented Turkish.
PRESIDENTIAL DIET
4. (C) The representatives said that President
Berdimuhammedov had recently paid a visit to THY offices at
the Ashgabat International Airport and reportedly concluded
that some of the senior managers are overweight, and ordered
them to "lose weight immediately." (One reportedly had dinner
with the Boeing representatives this week and, after picking
at his food throughout the meal, apologized and explained
that he had been told to "reduce or else.").
5. (C) COMMENT: From all accounts, the unexplained delay in
signing the contract was due to a simple cash flow problem on
the part of the Turkmen. It is unclear why the presidential
decree would stipulate payment terms less favorable to
Turkmenistan than those that Boeing had actually requested.
END COMMENT.
MILES