KAZAKHSTAN: KEY MAJILIS LEADER NAMED AMBASSADOR TO IRAN,

C O N F I D E N T I A L SECTION 01 OF 02 ASTANA 001006

SIPDIS

STATE FOR SCA/CEN, EUR/RUS, NEA/IR, DRL

E.O. 12958: DECL: 06/12/2029
TAGS: PREL PGOV PHUM ENRG ETRD KDEM RU IR KZ
SUBJECT: KAZAKHSTAN: KEY MAJILIS LEADER NAMED AMBASSADOR TO IRAN,
DISCUSSES INTERNET LAW, ALIYEV CASE, EARLY ELECTIONS

REF: ASTANA 0943

Classified by: Ambassador Richard E. Hoagland, 1.4 (b),(d)


1. (C) SUMMARY: Majilis International Relations, Defense, and
Security Committee Chairman Nurbakh Rustemov told the Ambassador on
June 11 he has been appointed ambassador to Iran and is awaiting
agrement. He described the draft Internet law as "not right, but
necessary," admitted that it was partly motivated by the Rakhat
Aliyev case, but thought President Nazarbayev might veto it.
Rustemov said he had heard Aliyev is in the U.S. witness protection
program -- which the Ambassador emphatically denied. Rustemov
believes there will be early parliamentary elections later this year,
which should bring in a multi-party parliament, improving the
country's image. He described the Russian-Kazakhstan-Belarus customs
union as a positive development which will bring economic benefits to
Kazakhstan. Commenting on the arrests at Kazatomprom, he said he had
raised concerns about the company's deals several years ago. END
SUMMARY.

RUSTEMOV NAMED AMBASSADOR TO IRAN


2. (C) During a June 11 lunch, Majilis International Relations,
Defense, and Security Committee Chairman Nurbakh Rustemov informed
the Ambassador that President Nazarbayev had selected him to be
Kazakhstan's new ambassador to Iran. He said he had previously
declined general offers from Nazarbayev of an ambassadorial posting,
but agreed to this specific proposal because he could not turn down
an appointment to an important regional power. Rustemov explained
that he is awaiting agrement, but believes he could be in Tehran as
early as August. He said that as far as he understood, he will have
a staff of about 12 diplomats and administrative and technical
personnel.


3. (C) Rustemov, who speaks fluent English but does not know FARSI,
said he has been reading up on Iran since his appointment. He
expressed keen interest in U.S. policy toward Iran and in the June 12
Iranian presidential elections. Rustemov argued that positive change
in Iran would benefit the entire region, and said it is important
that there not be a U.S. military attack against Iran.


4. (C) Rustemov described Kazakhstan-Iran relations as generally
good. However, he said despite a lot of interest, there has really
has not been much Kazakhstani investment in Iran thus far because of
the difficult investment climate. There is a lack of trust, as well
as Iranian legislation which restricts foreign currency operations.
Rustemov noted that Kazakhstan's embassy in Tehran actually maintains
its bank account in Dubai.


5. (C) Rustemov admitted that he isn't really comfortable in "eastern
countries" -- and appeared concerned that his wife and 10-year old
daughter might have to wear burkas in Iran -- but said he will have
to change himself and get rid of the "internal discomfort." (NOTE:
Rustemov also has a 17-year old son who is studying at Oxford. END
NOTE.) Rustemov said that despite his appointment, he still intends
to visit the United States in July, and would like to participate in
a U.S. government exchange program. (NOTE: We are trying to arrange
a Voluntary Visitor's Program for Rustemov. Given his upcoming
ambassadorship in Tehran, it would be useful if he could meet in
Washington with senior U.S. officials working on Iran issues. END
NOTE.)

INTERNET LAW NOT RIGHT, BUT NECESSARY


6. (C) The Ambassador told Rustemov that we are concerned about the
pending Internet law, which recently passed the Majilis and is
currently under Senate consideration. Rustemov responded that the
law "is not right, but it's a necessity," admitting that the Rakhat
Aliyev case is one of the motivations behind it. Rustemov said that
as a practical matter, those who know how to use the Internet would
be able to evade any restrictions imposed by the legislation.
"Unfortunately, we have people who, for the sake of scoring political
points, have managed to persuade everyone that this is something that
will benefit the country, even though in reality, it's damaging in

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the long run," Rustemov argued. He added, "I think that the head of
state will once again show himself to be the wisest one and will
refuse to sign the legislation."

BELIEVES ALIYEV UNDER U.S. PROTECTION


7. (C) Rustemov noted the irony of the claim by the Procurator
General's Office that Aliyev's book, "Godfather-in-Law," contains
state secrets. "Are they implying that what's in the book is true?,"
he quipped. He told the Ambassador that he had heard that Aliyev and
his associate Alnur Musayev are in the U.S. witness protection
program. The Ambassador emphatically denied this, explaining that
the U.S. government has no intention of getting involved in the
Aliyev affair. Rustemov looked slightly skeptical and said, "But
that's what 'they' tell us."

SUPPORTS EARLY ELECTIONS


8. (C) The Ambassador asked about the prospects for early
parliamentary elections. Rustemov responded that he believes there
will be early elections later this year. He explained that he,
Presidential Advisor Yermukhamet Yertysbayev, and Foreign Minister
Tazhin all strongly support the idea. New elections that result in a
multi-party parliament would help Kazakhstan's image -- "would make
us look presentable" -- on the eve of the country's 2010 OSCE
chairmanship.

CUSTOMS UNION GOOD FOR KAZAKHSTAN


9. (C) The Ambassador asked Rustemov about the announcement that
Kazakhstan, Belarus, and Russia will suspend their individual WTO
accession negotiations and instead launch negotiations to accede
jointly, as a customs union. Rustemov described the customs union as
a very positive development which will bring Kazakhstan significant
economic benefits. Kazakhstan had long wanted to unify its customs
procedures with Russia, but the Russians had previously avoided
reaching agreement. "We will gain a lot from being able to ship
products to Russia without any customs formalities," Rustemov argued.
He indicated that WTO membership remains important for Kazakhstan,
pointing out the country continues to adopt new legislation to make
its laws WTO compliant. Rustemov appeared surprised to hear from the
Ambassador that there is no provision for customs unions to accede to
the WTO without their member states doing so individually.


10. (C) Rustemov also stressed the importance of establishing a union
of Central Asian countries -- a concept strongly endorsed by
President Nazarbayev. "It would be good if the United States could
press our neighbors to accept this," he said. The Ambassador noted
that one regional leader in particular -- i.e., Uzbek President
Karimov -- remains opposed. Rustemov responded, "We will succeed in
the end in establishing this organization regardless of what other
presidents think. In the end, our president proves that he is always
correct."


11. (C) Rustemov told the Ambassador that Kazakhstan is trying to
establish a grain exporters union with Russia and Ukraine -- and
conceded that the model they are aiming for is OPEC. The idea came
from the Russians, but the Ukrainians are not yet fully on board.

CONCERNS ABOUT KAZATOMPROM


12. (C) Commenting on the recent wave of arrests at state-owned
nuclear company Kazatomprom (see reftel),Rustemov said that he had
raised concerns several years ago, questioning the deals the company
was making to sell uranium deposits to foreign investors. He added
that he is concerned about the fact that the son of Vladimir
Shkolnik, Kazatomprom's new head, has a high-level position at
Russia's Rosatom.

HOAGLAND