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