KAZAKHSTAN: MAZHILIS LEADERS DISCUSS BILATERAL AGENDA

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SENSITIVE
SIPDIS

STATE FOR SCA/CEN, EEB, ISN, H

E.O. 12958: N/A
TAGS: PGOV PREL PHUM PTER ECON KDEM KNNP KZ
SUBJECT: KAZAKHSTAN: MAZHILIS LEADERS DISCUSS BILATERAL AGENDA
WITH THE AMBASSADOR


1. (U) Sensitive but unclassified. Not for public Internet.


2. (SBU) SUMMARY: During separate January 16 meetings with the
Ambassador, Mazhilis Speaker Ural Mukhamedzhanov and Mazhilis
International Relations, Defense, and Security Committee Chairman
Nurbakh Rustemov expressed hope that the Obama Administration would
further strengthen bilateral ties. They asked for stepped up U.S.
support for Kazakhstan's WTO accession, commencement of negotiations
on a bilateral Mutual Legal Assistance Treaty (MLAT),Kazakhstan's
graduation from Jackson-Vanik restrictions, and elimination of the
annual human rights certification. Mukhamedzhanov and Rustemov
promised quick Mazhilis action in ratifying the Cooperative Threat
Reduction (CTR) agreement. They said the Madrid commitments
legislation incorporated "serious changes" that will move the
country in a democratic direction. The Ambassador pressed for
adoption of Anti-Money Laundering/Counter-Terrorism Finance
(AML/CTF) legislation. Mukhamedzhanov responded positively,
explaining that the Kazakhstanis are also very interested in getting
the legislation passed. END SUMMARY.

HOPE THAT OBAMA FURTHER STRENGTHENS BILATERAL TIES


3. (SBU) In separate January 16 meetings with the Ambassador,
Mazhilis Speaker Ural Mukhamedzhanov and Mazhilis International
Relations, Defense, and Security Committee Chairman Nurbakh Rustemov
said they hoped the incoming Obama Administration would further
strengthen the U.S.-Kazakhstan bilateral relationship.
Mukhamedzhanov stressed the importance of continuing dialogue at the
presidential level. Both Muzhamedzhanov and Rustemov took note of
significant U.S.-Kazakhstan inter-parliamentary contacts --
including the November trip to the United States of a Rustemov-led
Mazhilis delegation and several recent CODEL visits to Kazakhstan --
while Muzhamedzhanov pointed out that almost 30 percent of Mazhilis
members are part of a Mazhilis caucus for cooperation with the U.S.
Congress. The two asked for even more interactions between the
Mazhilis and Congress. Rustemov, who also heads the ruling Nur Otan
party's foreign relations office, said he would welcome
opportunities for Nur Otan leaders to visit the United States to
meet their counterparts in U.S. political parties.


4. (SBU) Noting that the United States is one of Kazakhstan's top
economic partners, Mukhamedzhanov said Kazakhstan hopes for more
U.S. investment in the non-extractive sector and at the regional
level and looks forward to implementation of the Public-Private
Economic Partnership Initiative (PPEPI). Rustemov said that he
would like OPIC to become more active in Kazakhstan. He stressed
that WTO accession remains a Kazakhstani priority and asked for
stepped up U.S. support in the accession process. The Ambassador
reiterated U.S. support for the PPEPI. He said he had recently
discussed WTO accession with Deputy Industry and Trade Minister
Zhanar Aitzhanova, Kazakhstan's lead WTO negotiator, and noted that
a senior USTR official would visit Kazakhstan in February to discuss
accession issues.

REQUEST FOR MLAT NEGOTATIONS, LIFTING JACKSON-VANIK


5. (SBU) Muzhamedzhanov and Rustemov both said that Kazakhstan would
like to negotiate a bilateral Mutual Legal Assistance Treaty (MLAT)
with the United States. The Ambassador promised to relay their
request to Washington, but explained that Congress would first have
to authorize such negotiations and that it would likely take a long
time to finalize an agreement. He suggested that Kazakhstani
Ambassador to the United States Yerlan Idrissov discuss an MLAT
directly with Congress.


6. (SBU) Muzhamedzhanov and Rustemov also asked that we graduate
Kazakhstan from Jackson-Vanik and remove the annual human rights
certification. The Ambassador explained that a bilateral WTO
accession agreement should pave the way to lifting Jackson-Vanik
restrictions.

SWIFT ACTION PROMISED ON CTR AGREEMENT


7. (SBU) Mukhamedzhanov and Rustemov explained to the Ambassador

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that the Mazhilis had just received the Cooperative Threat Reduction
(CTR) agreement from the government, but promised that they would
take swift action on ratification. Rustemov said that the aim was
to get the agreement through the Mazhilis before State Secretary
Kanat Saudabayev's trip to Washington the week of February 2. He
indicated that the Mazhilis was not satisfied with the quality of
the Kazakh-language version of text (NOTE: The agreement was
executed in English and Kazakh. END NOTE),and hinted that the
Kazakhstanis might request that we accept small revisions to the
Kazakhstan-language version to improve the grammar.

"SERIOUS CHANGES" IN MADRID COMMITMENTS LEGISLATION


8. (SBU) Noting that parliament had recently approved the Madrid
commitments legislation, Mukhamedzhanov said the amendments adopted
to the election, political party, and media laws represent "serious
changes" that will move the country in a democratic direction and
toward compliance with European standards -- which is a key aim of
Kazakhstan's Path to Europe Program. Rustemov admitted that not
everyone is satisfied with the new legislation, but pointed to
specific positive provisions, including one the will guarantee that
at least two parties are represented in parliament.

POSITIVE REACTION ON AML/CTF LEGISLATION


9. (SBU) The Ambassador told Mukhamedzhanov that he understood that
Kazakhstan began work on an Anti-Money Laundering/Counter-Terrorism
Finance (AML/CTF) law in 2006, but the legislation remains bottled
up in the Mazhilis. We would like to see the legislation adopted as
soon as possible, he stressed. This would be consistent with
Kazakhstan's Path to Europe program, since Europe has strong AML/CTF
legislation in place. Muzhamedzhanov responded positively,
explaining that the Kazakhstanis are also very interested in getting
the legislation passed.

HOAGLAND