KAZAKHSTAN: STATE SECRETARY SAUDABAYEV CONFIRMS

S E C R E T SECTION 01 OF 02 ASTANA 000601 SIPDIS STATE FOR SCA/CEN, NEA/IR, ISN, T E.O. 12958: DECL: 04/07/2034 TAGS: PGOV PREL PHUM MARR KNNP IAEA AF IR KZ SUBJECT: KAZAKHSTAN: STATE SECRETARY SAUDABAYEV CONFIRMS OFFER TO HOST NUCLEAR FUEL BANK REF: ASTANA 0557 Classified By: Ambassador Richard E. Hoagland, Reasons 1.4 (B) and (D) ¶1. (U) This is an action request. Please see para 9. ¶2. (S) SUMMARY: State Secretary Kanat Saudabayev told the Ambassador on April 7 that Kazakhstan is willing to host the international nuclear fuel bank, just as President Nazarbayev had announced to the press on April 6. He said that the ball is now in the IAEA's court to review the offer and approach Kazakhstan to discuss further details, and that Kazakhstan also seeks Washington's reaction. Saudabayev also told the Ambassador that Nazarbayev had pressed Iranian President Ahmadinejad to pursue only peaceful nuclear energy and cooperate with the IAEA and international community during their April 6 meeting in Astana. Saudabayev said Kazakhstan would be interested in establishing a high-level commission for our bilateral relationship, similar to the Gore-Nazarbayev commission from the Clinton Administration. Regarding President Nazarbayev's March 30 comment to the Ambassador that Kazakhstan could provide a "logistical base" for Afghanistan (reftel),Saudabayev seemed not well-briefed on the issue and simply responded that Kazakhstan is willing to be a transit point for goods for Afghanistan. END SUMMARY. OFFER TO HOST NUCLEAR FUEL BANK ¶3. (C) State Secretary Kanat Saudabayev called in the Ambassador on April 7 to discuss Kazakhstan's interest in hosting the international nuclear fuel bank proposed by the Nuclear Threat Initiative. He explained that President Nazarbayev's April 6 public offer for Kazakhstan to host the fuel bank -- which he made in Astana during a joint press conference with Iranian President Ahmadinejad, following a bilateral meeting -- constituted Kazakhstan's official announcement on the issue. He noted that Ahmadinejad supported Nazarbayev's proposal. (NOTE: Interfax quoted Nazarbayev as follows: "If a nuclear fuel bank for nuclear energy were established, Kazakhstan would consider the possibility of having it located here, in a country which has signed the Nuclear Non-Proliferation Treaty and voluntarily gave up nuclear weapons." In response, Ahmadinejad said, "The proposal of the President of Kazakhstan regarding the establishment of a nuclear fuel bank is good"; Ahmedinejad added, "Any country that has on its territory uranium reserves and enrichment technology can turn itself into a nuclear fuel bank." END NOTE.) ¶4. (C) Saudabayev said that Nazarbayev's offer was carefully aimed at showing support for President Obama's non-proliferation agenda and that hosting the fuel bank would enable Kazakhstan to further burnish its non-proliferation credentials. The ball is now in the IAEA's court to consider Kazakhstan's proposal and initiate expert talks, he explained. Saudabayev asked the Ambassador to obtain Washington's official reaction. He added that Nazarbayev supports Obama's proposal for a non-proliferation summit, and would be very willing to participate in it. ¶5. (C) COMMENT: Saudabayev appeared surprised by the April 5 Wall Street Journal article which reported, relying on an "unnamed White House source," that Kazakhstan had previously made a formal offer to the White House to host the fuel bank. Following the meeting, Roman Vasilenko, Saudabayev's chief of staff, explained to the Ambassador that Nazarbayev's announcement was occasioned not by the Ahmedinejad visit, but rather by the April 1 Obama-Medvedev joint statement and President Obama's April 5 speech on non-proliferation in Prague. Vasilenko said that the government is discussing internally the issue of coming up with any funding necessary to serve as host. END COMMENT. ASTANA 00000601 002 OF 002 NAZARBAYEV PRESSES AHMADINEJAD ON NUCLEAR PROGRAM ¶6. (S) Saudabayev told the Ambassador that during their April 6 meeting, Nazabayev had stressed to Ahmadinejad that Iran should give up any ambitions to develop nuclear weapons, pursue only peaceful nuclear energy, and cooperate with the IAEA and international community. In return, Iran will benefit economically, gaining new investment and access to technology. Nazarbayev told Ahmadinejad that Obama is open to dialogue -- which is a big step from the U.S. side -- and is thus giving Iran an opportunity which it should take advantage of. Ahmadinejad purportedly said in response that Iran is suffering from the current situation, and if it had better relations with the United States, it would have more economic opportunities. INTEREST IN REVIVING HIGH-LEVEL BILATERAL COMMISSION ¶7. (C) Saudabayev recalled that during the Clinton administration, there was a Gore-Nazarbayev commission which provided high-level oversight for the U.S.-Kazakhstan relationship. He said Kazakhstan would be interested in reestablishing a similar body. The Ambassador asked whether the Kazakhstanis would be willing to initiate bilateral consultations to discuss Kazakhstan's agenda for its 2010 OSCE chairmanship. Saudabayev responded that Kazakhstan would be interested, and added that Foreign Minister Tazhin's meetings in Washington in early May would constitute the first consultations. TRANSIT POINT FOR AFGHAN GOODS ¶8. (C) The Ambassador asked Saudabayev to clarify a remark from his March 30 meeting with Nazarbayev, when Nazarbayev said that Kazakhstan could provide a "logistical base" for Afghanistan (reftel). Saudabayev explained that Kazakhstan is simply interested in becoming a transit point for goods flowing to Afghanistan, which will assist Afghanistan economically, and added that he knew nothing further. (COMMENT: We have seen from other sources that there might possibly be more toQzarbayev's cryptic remark about a "logistical base." Qcould be that Saudabayev is simply notQbriefed on this issue. END COMMENT.) ¶9. (C) ACTION REQUEST: Please provide an official response we can pass to Saudabayev to President Nazarbayev's offer to host a low-enriched uranium nuclear fuel bank. HOAGLAND