KAZAKHSTAN: KAZKOSMOS LAYS OUT SPACE AMBITIONS, REQUESTS

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SUBJECT: KAZAKHSTAN: KAZKOSMOS LAYS OUT SPACE AMBITIONS, REQUESTS
SUPPORT FOR KAZAKHSTAN TO JOIN MTCR


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


2. (SBU) SUMMARY. Kazakhstan's National Space Agency, KazKosmos,
expects that Russia and Kazakhstan will sign an agreement this year
to allow visits to the Baikonur cosmodrome for tourists. Russia's
current Baikonur lease runs until 2050, but its terms do not
adequately address the growing costs of maintaining the site. There
is a joint venture to build a new rocket launch site at Baikonur,
called Baiterek, designed to launch Russia's newest Angara
heavy-launch boosters. Planned to be completed by 2012, it
currently is only at the design stage. KazKosmos told us that it
fully understands Russia's interest in developing its own
independent space launch site in the Russian Far East but believes
that Russia has no intention to withdraw from Baikonur. KazKosmos
would like to enter into a cooperative partnership with NASA. This
year it hoped to send a Kazakhstani cosmonaut to the International
Space Station, but this has been postponed because of the global
financial crisis. Kazakhstan would like to develop tourism in the
Baikonur area and plans to develop tourism infrastructure.
KazKosmos also hopes to preserve and restore Baikonur's basic launch
site infrastructure, implement Russia's GLONASS global positioning
system, and build a factory in Astana that will assemble satellites.
Kazakhstan is working to improve social and economic conditions in
the city of Baikonur. KazKosmos also asked for U.S. support for
Kazakhstan to join the Missile Technology Control Regime (MTCR).
END SUMMARY.

RENEGOTIATION OF RUSSIA-KAZAKHSTAN AGREEMENT ON BAIKONUR


3. (SBU) On April 15, Kazakhstan National Space Agency (KazKosmos)
Deputy Chairman Yerkin Shaimagambetov and International Cooperation
Department Director Lyailya Tlepgergenova did not directly confirm
to Regional Environmental Officer (REO)rumors about a renegotiation
of the Russia-Kazakhstan lease for Baikonur, but they did say that
during an upcoming May visit to Kazakhstan of Russian Prime Minister
Putin, Kazakhstan hopes the two countries will sign an agreement to
allow tourists to visit the space launch site. Shaimagambetov noted
that Russia and Kazakhstan signed the first Baikonur lease in 1994,
and it included a provision that the agreement could be extended.
In 2004, Kazakhstani President Nazarbayev and then-Russian President
Putin signed a memorandum of understanding to extend the lease until

2050. Shaimagambetov maintained, however, that the terms of the
lease do not adequately address the growing costs of maintaining the
site.


4. (SBU) Shaimagambetov said both Russia and Kazakhstan have to
maintain administrative facilities at Baikonur, support military
units and law-enforcement agencies that provide security there, and
fund the presence of other state agencies. In addition, there are
costs associated with improving infrastructure at the site and
funding pension obligations for those who work there. Ensuring
ecological safety at Baikonur, with spent rocket fuel contaminating
parts of the site, also entails costs.


5. (SBU) Shaimagambetov noted that there is a Russia-Kazakhstan
joint venture to build a new rocket launch site at Baikonur, called
Baiterek, which is designed to launch Russia's newest Angara
heavy-launch boosters. The Angara booster will use a less toxic
fuel than Russia's existing Proton booster. Nonetheless, this new
fuel will involve additional costs for storage and handling. In the
past, there were several fuel-related accidents and fires involving
Proton booster rockets, Shaimagambetov said, and Russia has agreed
in principle to pay for the ecological damage to the surrounding
area. The Baiterek project is supposed to be completed by 2012,
though it is only at the design stage now. In short, he said, there
are a lot of reasons why Kazakhstan wants more favorable terms for
the Baikonur lease, but for now that process is on hold until the
financial situation improves.


6. (SBU) Regarding Russia's plans to build a new launch site in the

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Russian Far East, Shaimagambetov said KazKosmos fully understands
Russia's interest in developing its own independent access to space.
These plans, however, will not affect joint projects. He stressed
that Russia has affirmed it has no intention to withdraw from
Baikonur, and the Russian government directly reassured President
Nazarbayev about this.

KAZKOSMOS WOULD LIKE TO HAVE COOPERATION WITH NASA


7. (SBU) Shaimagambetov said that KazKosmos would like to enter into
a cooperative partnership with NASA. He said Kazakhstan has no
direct experience in space flight or exploration and, thus, could
benefit immensely from NASA's experience. Shaimagambetov said he
has traveled to the United States to observe U.S. experience in
operating a launch site and a control center. Kazakhstan has sent
two cosmonauts into space, and had hoped to send one of its two
current candidate cosmonauts to the International Space Station in
late 2009 to carry out experiments as part of Kazakhstan's science
program. Unfortunately, such contracts with Russia to send
cosmonauts into space are very costly for Kazakhstan, and the
financial crisis has forced Kazakhstan to postpone these plans for
now.

DEVELOPING TOURISM AT BAIKONUR


8. (SBU) According to Shaimagambetov, Kazakhstan would like to
increase its presence at Baikonur, not only for operational reasons,
but also because Kazakhstan is interested in developing tourism
there. The city was closed for security reasons, but Kazakhstan
hopes to reopen the zone again, possibly this year, if Putin and
Nazarbayev sign an agreement on international tourism for Baikonur
during Putin's May visit to Kazakhstan. Kazakhstan intends to
refurbish a tourist hotel in Baikonur that can handle large official
delegations as well as ordinary tourists. Currently, there is very
little lodging in Baikonur, and this serves as a limiting factor.
There are discussions with Kazakhstani tourist agencies to help
build the necessary tourist infrastructure -- including roads,
hotels, and souvenir shops -- as well as to develop and improve a
number of historical sites at Baikonur. In addition, new air routes
will be needed, since currently there are no direct flights to
Baikonur from within Kazakhstan. At present, only a very small
number of people are able to go to Baikonur, but Shaimagambetov
hopes this will change.

PROJECTS STRUGGLING BECAUSE OF THE FINANCIAL CRISIS


9. (SBU) Shaimagambetov enumerated a number of projects that
KazKosmos was undertaking, many of which have been affected by the
ongoing financial crisis. KazKosmos hopes to be able to preserve
and, to some extent, restore some of the basic launch site
infrastructure. This is a project of the Russian-Ukrainian company
Kosmotras, which also does commercial launches, and Kazakhstan is
currently negotiating its entry into participating in this project.
He said KazKosmos also plans to implement Russian's GLONASS global
positioning system (similar to GPS) to help it find natural
resources and preserve the environment in Kazakhstan. The bidding
is under way, involving contenders from France, Russia, Ukraine,
India, South Korea, and China. According to Shaimagambetov, France
and Kazakhstan intend to sign a space cooperation agreement later
this year when French President Sarkozy visits Kazakhstan.
Shaimagambetov said Kazakhstan plans to build a factory jointly with
France in Astana that will assemble satellites. The original
intention was for Kazakhstan and France to share the financing for
this project equally, but Kazakhstan is now looking for additional
international partners.

BAIKONUR CITY NEEDS DEVELOPMENT


10. (SBU) Kazakhstan is working to improve life in the city of
Baikonur, Shaimagambetov said. It is doing this on its own, without

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Russian participation, since Russia is only interested in exploiting
the launch site. He described Baikonur city as out of the Soviet
1970s, lacking modern infrastructure. The government now is
building a new school, kindergarten, hospital, and government
administrative buildings. Shaimagambetov noted that, in the past,
Kazakhstan had to rent buildings from Russia -- now it is building
its own. He said the government is beginning to worry about the
social and economic development of the city, including cleaning up
the environment and securing pensions for the elderly. In addition,
Kazakhstan sends a number of students to the aeronautics institute
in Baikonur for training.

REQUEST FOR U.S. SUPPORT FOR KAZAKHSTAN TO JOIN THE MTCR


11. (SBU) Shaimagambetov argued that Kazakhstan has worked actively
in the realm of missile technology control and has consistently
supported the U.S. position on this issue. He said Kazakhstan is
seeking U.S. support to join the Missile Technology Control Regime,
and he hopes that the United States will agree to this. He said
this will help Kazakhstan's efforts to enter the commercial space
market as it plans for the future of Baikonur. (COMMENT:
Kazakhstani MFA officials have also reiterated to us on several
occasions in recent months Kazakhstan's continued interest in
joining the MTCR. They see this as consistent with Kazakhstan's
strong record on non-proliferation. END COMMENT.)

HOAGLAND