AZERBAIJAN: FINANCE MINISTER EXPRESSES INTEREST IN

UNCLAS BAKU 000853

SIPDIS

E.O. 12958: N/A
TAGS: ECON EFIN ECIN ETRD AJ
SUBJECT: AZERBAIJAN: FINANCE MINISTER EXPRESSES INTEREST IN
CONTINUING ECONOMIC PARTNERSHIP COMMISSION


1. SUMMARY: DAS Kaidanow met with Azerbaijan's Minister of
Finance Samir Sharifov on October 23. In an open and candid
discussion, both noted their desire for continued
cooperation, possibly including another round of the Economic
Partnership Commission. Sharifov complained about Freedom
Support Act Section 907 and the Jackson-Vanik Amendment, but
pointed to important elements of U.S.-Azerbaijan economic
cooperation, including satellite and highway construction
projects and the co-financing agreement on economic
assistance. He offered to host the next EPC in Baku early
next year, pending the appointment of a new U.S. co-chair.
End Summary.

Minister of Finance is Ready to Host the Next EPC, but . . .
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2. In her October 23 meeting with Finance Minister Samir
Sharifov, DAS Kaidanow stressed USG support for continued
constructive collaboration with Azerbaijan and expressed U.S.
appreciation for Sharifov's leadership of the joint Economic
Partnership Commission (EPC). She also noted U.S. interest
in energy transportation negotiations between Turkey and
Azerbaijan, and assured Sharifov that the U.S. is
communicating its support for a mutually agreeable solution
with Turkey as well. Minister Sharifov said he is ready to
host the next EPC in Baku as soon as a new U.S. co-chair is
identified. He also highlighted recent examples of positive
U.S.-Azerbaijan cooperation, including the selection of a
U.S. company (Orbital) for Azerbaijan's first communications
satellite project, the elevation of the EPC from the
working-group level, the signing of the co-financing MOU with
USAID, and the prospect of U.S. companies being involved in
the long awaited East-West highway project. He noted that
the GOAJ will be looking to the U.S Export-Import Bank to
help finance the U.S. content of the satellite project and
that funds for the co-financing program were already being
transferred to the USAID accounts.

. . . Jackson Vanik and Section 907 Need to Go
-------------- --


3. Sharifov went on to express specific GOAJ concerns he
said would need to be addressed at subsequent EPC meetings.
He noted Azerbaijan's opinion that the Jackson-Vanik
Amendment was redundant as applied to Azerbaijan and said the
GOAJ would like to see this permanently repealed. When DAS
Kaidnow noted that Jackson Vanik is often repealed as part of
a "package deal" when a country accedes to the WTO, Sharifov
said he did not see the relevant connection, but that he
understood there are sometimes lengthy processes to abolish
these measures. Sharifov also noted that Azerbaijan's
designation under Section 907 of the Freedom Support Act was
detrimental to U.S.-Azerbaijan economic relations. The GOAJ
would like to see this legislation abolished as well. The
Minister, illustrating his understanding of U.S. bureaucratic
timelines, pointed out that the GOAJ would, at the very
least, look for a waiver of Section 907 if the amendment
could not be abolished by January. Kaidanow made no promises
in this regard, but noted that the Economic Partnership
Commission could address a number of issues of mutual
interest in the bilateral relationship.


4. DAS Kaidanow has cleared this cable.

LU