Identifier
Created
Classification
Origin
09MOSCOW2932
2009-12-03 04:59:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Moscow
Cable title:  

U.S. SCIENCE ADVISOR AND RUSSIAN SCIENCE MINISTER AGREE

Tags:  TSPL TNGD SENV KNNP PGOV TBIO CVIS KRVC 
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RR RUEHAST RUEHDBU RUEHDH RUEHHM RUEHLN RUEHMA RUEHPB RUEHPOD RUEHSL
RUEHTM RUEHTRO RUEHVK RUEHYG
DE RUEHMO #2932/01 3370459
ZNR UUUUU ZZH
R 030459Z DEC 09
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 5572
INFO RUEHLN/AMCONSUL ST PETERSBURG 5528
RUEHYG/AMCONSUL YEKATERINBURG 3752
RUEHVK/AMCONSUL VLADIVOSTOK 3400
RUEHXD/MOSCOW POLITICAL COLLECTIVE
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEKJCS/SECDEF WASHDC
RHMFIUU/DTRA CT WASHINGTON DC
RHMFIUU/DTRA ALEX WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHRC/USDA FAS WASHDC
RUEAUSA/DEPT OF HHS WASHINGTON DC
RUEHPH/CDC ATLANTA GA
RHEHNSC/NSC WASHDC
RUCPDC/NOAA WASHDC
RUEAEPA/HQ EPA WASHDC
RUEHC/DEPT OF INTERIOR WASHDC
UNCLAS SECTION 01 OF 10 MOSCOW 002932 

SENSITIVE
SIPDIS

STATE FOR OES/STC, OES/PCI, OES/SAT, EUR/ACE,
EUR/RUS, EUR/PGI, EUR/PRA, ISN/CTR
OSTP FOR HOLDREN, ROLF
STATE PLEASE PASS TO NASA AND USAID
HHS PLEASE PASS TO NIH and CDC
DOC PLEASE PASS TO NOAA
DOI PLEASE PASS TO USFWS AND NPS AND USGS

E.O. 12958: N/A
TAGS: TSPL TNGD SENV KNNP PGOV TBIO CVIS KRVC
TPHY, EAID, OSCI, KGHG, ENRG, KSCA, SCUL, ECIN, EINT,
TSPA, PHUM, SOCI, ETTC, RS
SUBJECT: U.S. SCIENCE ADVISOR AND RUSSIAN SCIENCE MINISTER AGREE
HOW TO STRENGTHEN BILATERAL SCIENCE AND TECHNOLOGY COOPERATION

MOSCOW 00002932 001.2 OF 010


Sensitive but Unclassified. Not for Internet distribution.

UNCLAS SECTION 01 OF 10 MOSCOW 002932

SENSITIVE
SIPDIS

STATE FOR OES/STC, OES/PCI, OES/SAT, EUR/ACE,
EUR/RUS, EUR/PGI, EUR/PRA, ISN/CTR
OSTP FOR HOLDREN, ROLF
STATE PLEASE PASS TO NASA AND USAID
HHS PLEASE PASS TO NIH and CDC
DOC PLEASE PASS TO NOAA
DOI PLEASE PASS TO USFWS AND NPS AND USGS

E.O. 12958: N/A
TAGS: TSPL TNGD SENV KNNP PGOV TBIO CVIS KRVC
TPHY, EAID, OSCI, KGHG, ENRG, KSCA, SCUL, ECIN, EINT,
TSPA, PHUM, SOCI, ETTC, RS
SUBJECT: U.S. SCIENCE ADVISOR AND RUSSIAN SCIENCE MINISTER AGREE
HOW TO STRENGTHEN BILATERAL SCIENCE AND TECHNOLOGY COOPERATION

MOSCOW 00002932 001.2 OF 010


Sensitive but Unclassified. Not for Internet distribution.


1. (SBU) Summary: Dr. John Holdren, Assistant to the President for
Science and Technology and Director of the Office of Science and
Technology Policy (OSTP) in the Executive Office of the President of
the United States, and Joan Rolf, Assistant Director for
International Relations in OSTP, met Russian government officials
and scientists, and gave a press interview in Moscow October 28-30,
before travelling to Kazan for the Carnegie meeting of science
ministers and advisors. In each meeting, Holdren explained that
President Obama regards building the science and technology (S&T)
relationship with Russia as an important pillar in strengthening
overall bilateral relations and is interested in S&T more generally
as a key to creating jobs, stimulating innovation, developing clean
energy technology and addressing climate change. Holdren and

Minister of Education and Science Fursenko agreed that the new S&T
Working Group under the Bilateral Presidential Commission would
focus on nanotechnology, information technology, and carbon cycle
monitoring, but also reduce obstacles to cooperation such as visas,
customs duties on scientific equipment for joint projects, taxation
of research grants, and marine scientific research authorizations.
They concurred that communication and coordination with the other
working groups are critical because many issues span several of the
Commission's working groups. End summary.

Russia Now More Interested in S and T Cooperation with U.S.
-------------- --------------


2. (SBU) International Science and Technology Center's (ISTC)
Executive Director Michael Einik, ISTC Commercialization Program
Manager Tim Murray, Civilian Research and Development Foundation's
(CRDF) Acting Moscow Office Director Vladimir Kurakin, and CRDF
Senior Advisor Irina Dezhina provided Holdren with the implementers'
view of S&T cooperation. CRDF and ISTC agreed that in the past few
years, Russian institutes' primary interest in joint projects with
CRDF and ISTC has been to forge contacts with U.S. scientists, not
to obtain grant money. However, they cited several reasons why the
Russian government is now more interested in cooperating with the
United States. First, it is not as flush with cash as it was before
the economic crisis; it has made huge funding cuts in non-priority
areas, and even had to trim back some priority areas. Second,
President Medvedev's five S&T priorities (energy efficiency, nuclear
technology, telecommunications and space technology, medical
technology, including medical equipment and pharmaceutical
development, and information technology (IT),including strategic
computer technology and software) track very closely with the U.S.
priorities announced in President Obama's speech at the National
Institutes of Health. Third, the Russian government is
restructuring higher education along the U.S. model, creating 14
national research universities that are being directed to increase
research, international cooperation, and cooperation with business.
Finally, the Russian government is intensely interested in
commercializing technology more successfully.


3. (SBU) However, stronger Russian interest in cooperating with the
United States does not necessarily translate into stronger Russian
government support for ISTC or CRDF. They noted that Minister
Fursenko launched a program to strengthen links with Russia's
diaspora in which the Russian scientists working abroad can apply
for two-year research grants that require two months of research in
Russia. ISTC has a number of strengths, including its tax and
customs exemptions, growing numbers of grant applications, and an
enormous Rolodex of contacts. But the Russian government is

MOSCOW 00002932 002.2 OF 010


reported to be considering a decision to withdraw from the
multilateral agreement that created ISTC. Although CRDF lost its
automatic tax exemption at the end of 2008, its partners can still
apply for tax exemptions. In addition, CRDF said that the Russian
Duma is considering adding new organizations to the limited number
that retained tax exemptions.

MFA: STWG 3 Areas of Focus; Need to Coordinate With Other WGs
-------------- --------------


4. (SBU) Ambassador-at-Large Eduard Malayan on October 29 clarified
that while Minister of Education and Science (MES) Fursenko would
determine what the S&T Working Group (STWG) would do, Malayan was
interested in how the STWG would fulfill the Presidents'
instructions and how it would interact with the other Bilateral
Presidential Commission (BPC) working groups and existing bilateral
S&T groups. Holdren explained that President Obama regards building
the S&T relationship with Russia as an important pillar in
strengthening overall bilateral relations. Holdren agreed that
communication and coordination will be critical because so many of
the STWG issues span other working groups. For example, information
technology, nanotechnology, and biotechnology, are all "green
technologies," but the STWG will advance the information technology
and nanotechnology, while the Agriculture WG will handle
biotechnology. President Obama views S&T as key to address climate
change and excessive energy import dependence through smart grids,
better mass transportation, energy efficiency, nuclear energy,
renewable energy, and carbon capture, which other working groups are
addressing. IT and biomedical technology are key to President
Obama's effort to improve health care by bringing about better
outcomes at less cost, so the STWG will need to coordinate with the
Health Working Group. Earth observation from space can help solve
climate change challenges, an overlap with the Space WG.


5. (SBU) Holdren described the three initial priorities the U.S.
proposed and MES accepted for the STWG -- nanotechnology, IT, and
carbon cycle monitoring.

-- Nanotechnology: The United States will host a joint
nanotechnology experts group in Washington in February. Although
nanotechnology has important energy and other applications, the STWG
must focus as well on environment, health, and safety aspects so
that perceived or actual problems do not constrain its further
development.

-- IT: The United States and Russia can learn from each other how IT
can provide better health outcomes at reduced cost, create smart
grids for electricity transmission and distribution, improve S&T
education as well as overall education, and increase public
participation in government and access to government decisions.

-- Carbon Cycle Monitoring: There is some capacity to monitor and
verify whether countries are meeting their Copenhagen commitments,
but the world needs better information about sources and sinks of
greenhouse gases and particles (GHG). In particular, current
measurements for black carbon soot and releases of methane and
carbon dioxide from northern soils are not adequate. The United
States and Russia can improve ground- and satellite-based sensors
and networks and strengthen international data sharing. Nikolay
Smirnov, Deputy Head of North America Department, agreed that it is
very important to do more than monitor weather in the Arctic since
transportation is already starting. He asked about the status of
the agreement the Russian government proposed on Search and Rescue a

MOSCOW 00002932 003.2 OF 010


year and a half ago, to which he said the United States never
responded. (Note: Smirnov faxed this text to ESTH Moscow on
November 6. As advised by the State Department, ESTH advised
Smirnov on November 13 that we view the Search and Rescue Task Force
in the Arctic Council that the United States plans to chair with
Russia as superseding this text. End note.)

Holdren noted that the initial U.S. focus is on getting the STWG
functioning without trying to merge it with existing entities, such
as the Joint S&T Committee established by the bilateral S&T
agreement. Holdren added that the STWG could spawn other subgroups
with specialized expertise, as needed.

MFA: Real Progress Will Facilitate Resolving Obstacles; TSA
-------------- --------------


6. (SBU) Agreeing with Holdren that both sides needed to solve
crosscutting obstacles to cooperation in order to be successful,
Malayan commented that some of the obstacles have been on the
bilateral agenda since Soviet times. Malayan affirmed that Holdren
is absolutely correct to put these issues on the STWG agenda even
though it will be hard to find solutions since so many agencies are
involved. However, it should be possible to resolve them, Malayan
stated, because both Presidents have stressed the importance of
cooperation, including on S&T. President Medvedev shares President
Obama's vision that S&T is an engine moving cooperation forward
between our countries.

-- Visas: The United States, Holdren volunteered, has contributed
its share of problems to getting visas for scientists. Although
most scientists now get visas within two weeks, Holdren would like
to see even further improvements. The Russian 90-day visa
limitation for scientists on working visits at Russian Academy of
Sciences (RAS) institutes or to MES is problematic because it does
not permit scientists to finish their work. Malayan agreed that
both sides need to improve the situation because overall numbers of
student exchanges are declining due to the economic crisis.

-- Taxation: Holdren said that it would be beneficial to address
the tax status of organizations that provide grants to scientists.
Malayan responded that an amendment to the law has been introduced
to Parliament that will "meet our concerns."

-- Customs Duties: Holdren stated that the U.S. position is that
research equipment for use in joint projects should not be subject
to customs duties.

-- Marine Scientific Research Authorizations: Recognizing that the
Arctic is a sensitive zone militarily for Russia, Holdren expressed
U.S. concern over Russian delays and failures in granting
authorizations for U.S. conduct of marine scientific research in
Russia's Exclusive Economic Zone. He expressed hope that the
Russian interagency process for coordinating clearances could be
streamlined.


7. (SBU) Explaining that he has been in charge of bilateral S&T
cooperation for years, Andrey Krutskikh, Deputy Director of
Department of New Threats and Challenges, said there is no limit to
the level bilateral cooperation can reach. If the United States and
Russia are successful, problems such as taxation and visas are
"easily solved." But if there are no real results and only
exchanges of delegations, Prime Minister Putin and President
Medvedev are very practical and will have no reason to solve

MOSCOW 00002932 004.2 OF 010


problems. Krutskikh warned that serious cooperation in the three
STWG areas will require an umbrella Technology Safeguards Agreement
(TSA) because ratifying separate intellectual property and TSAs for
each project takes too long. Rusnano Chairman Chubays ran into this
problem when he went to the United States with millions of GOR
dollars for investment purposes, but without a TSA. Recalling how
the United States and Russia agreed on a text for an umbrella TSA,
which the United States later blocked, Krutskih suggested adding a
blanket TSA to the bilateral S&T Agreement, leaving details of
individual arrangements for agencies, institutes, and private
companies to handle in separate agreements. Malayan called
Krutskikh's advice "wise." Holdren promised to look into the
reasons for the hold-up. (Note: ESTH has been informed by NASA
that the Russian government's proposed TSA included governmental
activities. The United States has not applied TSAs to governmental
activities with any country because government-to-government
agreements already include adequate technology safeguards. End
note.)

MES: STWG core of S&T cooperation; Ideas to reduce obstacles
-------------- --------------


8. (SBU) Meeting on October 29 first in a small group and then with
a larger group, Holdren and Fursenko stated that both presidents
want S&T cooperation to be an important part of the relationship.
The STWG is an important opportunity to achieve practical results,
not just signing pieces of paper. They confirmed the STWG would
make nanotechnology, IT, and carbon cycle monitoring its initial
focus, but coordinate and communicate with other working groups
because of the many overlaps, and add other areas as necessary.
Fursenko noted that this approach would allow the STWG to advance
all of President Medvedev's five priorities either directly in the
STWG or by assisting other working groups. With Fursenko likening
the STWG to the smallest nesting doll in the S&T matrioshka set,
they decided the STWG would be the core of bilateral S&T
cooperation, leaving broader issues to the Joint Committee. The
Innovation Council on High Technologies (ICHT) should be asked how
it wants to continue to function and it can provide input on the
topic of nanotechnology, information technology, and carbon cycle
monitoring to the STWG. They agreed to conduct the first STWG
meeting by video teleconference in late January and then meet in
person in the United States in March, when Fursenko plans to travel
to Stanford for the Innovation Forum. The STWG could take place the
first day with the Joint Committee meeting on the second day. To
prepare for the first STWG meeting, each side will ask experts in
the three areas to make proposals and suggest guidelines so that
Fursenko and Holdren will have concrete achievements to report to
the presidents at the first STWG meeting. There should be no more
than ten permanent members of the STWG on each side. Although
Fursenko and Holdren noted that they retain overall responsibility
for STWG progress, they designated Rolf and MES International
Department Head Vladislav Nichkov as STWG points of contact to keep
things moving. Deputy Minister Aleksandr Khlunov will facilitate
the STWG's work. Holdren proposed that the STWG include among its
first accomplishments signing the Memorandum of Understanding on
High Energy Nuclear Physics, under negotiation since 2003, and
renegotiating a Seismology Agreement. Fursenko noted that he had
signed the Seismology Extension and expected Russian Academy of
Sciences signature later that day. (Note: MES delivered the signed
document to the Embassy on October 30 for Holdren to carry back to
the United States. End note.)


9. (SBU) After Holdren described the four crosscutting obstacles to

MOSCOW 00002932 005.2 OF 010


cooperation that he would like the STWG to reduce, Fursenko noted
that MES could help with some, but not all.

-- Visas: Because of the presidential interest in improving S&T
cooperation, MES can propose to the MFA that Russia and the United
States conclude a bilateral agreement for science and education
exchanges similar to those Russia has with other countries.
Fursenko warned this would not be fast, but it is better than
waiting for the overall regime to be fixed. Nichkov agreed that
such a bilateral agreement is possible.

-- Taxation: Fursenko explained that the Ministry of Finance's
guiding principle is no tax preferences for any entity ever. When
Fursenko raises this issue with Minister Kudrin, his friend for over
20 years, Kudrin says he can give MES more money, but not tax
exemptions. However, Fursenko has an idea and will attempt to
create an opportunity. Although he will do his best, he cannot
promise anything. Holdren offered to speak with Treasury Secretary
Geithner to see if the position of not providing tax exemptions for
joint scientific research might be able to be relaxed. Fursenko
added that Russia is particularly interested in U.S. cooperation
with Russia's new national science research centers, such as
Kurchatov Institute, which will advance presidential priorities such
as nanotechnology and energy efficiency. Fursenko strongly believes
Russia needs to make these facilities more open to international
cooperation and hopes U.S. institutions will want to create direct
links with them, particularly since IT makes it possible to meet
virtually. (Comment: Although Fursenko did not directly link
institutional cooperation to tax exemptions, it seems likely his
idea relates to institutional cooperation since he mentioned it in
the context of tax exemptions. End comment.)

-- Marine Scientific Research Authorizations: Fursenko said Russia
has granted some authorizations, but has had problems with others in
coordinating with the eight ministries that need to clear on them.
He said he would return to this problem, seeking to reduce the
number of agencies that have to clear.

Wrapping up the meeting, Deputy Chief of Mission Eric Rubin
congratulated both sides on an excellent start to the STWG.

Academicians Recommend STWG Focus on Young Scientists
-------------- --------------


10. (SBU) At an October 29 lunch Rubin hosted at his townhouse,
Academician Nikolay Laverov, RAS Vice President, was enthusiastic
about the STWG, calling it an important window of opportunity.
Laverov, who noted that he will soon celebrate his eightieth
birthday, stressed that although his generation is key to the STWG's
success, the United States and Russia need to use the STWG to create
links between the next generation of U.S. and Russian scientists.
Academician Aleksandr Dynkin, First Deputy Director of the Institute
of World Economy and International Relations, reminded lunch
participants of the history of the peaks and valleys of U.S.-Russian
science cooperation, cautioning that both sides have often failed to
take advantage of past windows that have arisen. He pointed to
space and S&T innovation as areas ripe for U.S.-Russian cooperation.
Academician Vadim Ivanov, RAS Vice President and Director of the
Shemyakin-Ovchinnikov Institute of Bioorganic Chemistry, urged that
the United States and Russia strengthen biomedical cooperation.
Academician Gennadiy Andreyevich Mesyats, RAS Vice President and
Director of Lebedev Physics Institute, expressed his institute's
interest in expanding joint research in high energy physics with MIT

MOSCOW 00002932 006.2 OF 010


and other universities to address the world's growing energy
demands. Holdren wryly noted that the best way to stop a window
from closing is to get as much of one's body as possible into it.
Although the academicians agreed, Ivanov and Mesyats described
numerous visa problems that prevented them and their colleagues from
attending conferences in the United States. Holdren informed them
of the significant improvement in the visa process since July and of
the Obama Administration's commitment to take a further look at U.S.
visa procedures as a key part of facilitating ties between
scientists. He voiced hope that the Russian side would also take
steps to alleviate Russian visa problems that U.S. scientists
encounter.

Roshydromet Interested in More Climate Monitoring with U.S.
-------------- --------------


11. (SBU) On October 29, Alexander Bedritsky, head of Russia's
hydro-meteorological service, Roshydromet, and second term president
of the World Meteorological Organization, described the long history
of U.S.-Russian cooperation on climate change. Noting NOAA's large
network of ground-based observation facilities, Bedritsky said
Roshydromet was working to establish a pair of greenhouse gas
monitoring observatories in the Arctic circle, including the Tiksi
observatory, where U.S. and Finnish scientists are collaborating
with Russian colleagues. Bedritsky acknowledged that Russia is
slightly behind the United States in satellite monitoring, but is
working to add highly elliptical monitoring to provide a complete
picture of the Arctic. Of particular interest is uninterrupted,
dynamic monitoring of sea ice. Bedritsky provided a copy of
Roshydromet-RAS 2008 assessment of climate change and its
consequences in the Russian Federation, including effects on
infrastructure, health and agriculture. (The 2005 edition is
available online at http://www.meteorf.ru/en_default.aspx.) After
noting that carbon monitoring is one of the three priority areas for
the STWG, Holdren stressed that improved monitoring is needed to
verify if countries are meeting emission reduction commitments.
Bedritksy responded that Russia is very active in these areas and he
looks forward to working with the United States to make
improvements. Russia is experiencing real changes, particularly in
the Far North. Roshydromet just estimated that the Russian
Federation is losing 12 square kilometers of land mass a year -- not
because of raising sea levels, but because warming soils are
actually sinking along the Arctic coast. Tundra is also shrinking.
(Note: On November 6, Prime Minister Putin very unexpectedly
accepted Bedritskiy's previous offer to resign as Roshydromet head
because Bedritsky had reached retirement age. End note.)

Kurchatov Institute - Cutting-edge Nanotechnology Research
-------------- --------------


12. (SBU) Kurchatov Institute Director Mikhail Kovalchuk and
President Yevgeniy Velikhov treated Holdren, Rolf, and several EST
staff to a personal tour on October 29 of the 100-hectare Russian
Research Center Kurchatov Institute. Kurchatov, founded in 1943 and
which developed the Soviet atomic bomb in 1949, now boasts six
nuclear research reactors, 14 critical reactor assemblies, a
synchrotron, and supercomputers. Since 2008, it has coordinated
Russian research in nanobiotech, nanosystems and nanomaterials.
Kovalchuk showed how Kurchatov is expanding its Center for
Synchrotron Radiation and Nanotechnology for even more advanced
research in physics, chemistry, biology, materials science and micro
and nanotechnology. A Russian researcher recently returned from
Cornell showed off Kurchatov's state-of-the art nano laboratories

MOSCOW 00002932 007.2 OF 010


and work on genome sequencing and biochip analysis.


13. (SBU) After the tour, Velikhov proposed that Russia, the United
States, and Japan mass produce 300-500 megawatt fast breeder
reactors. Noting the high cost of current breeder technology
compared to conventional reactor types, Holdren recommended further
research and development on breeders in preference to deployment.
Recalling his work since 1974 with Holdren on fusion energy,
Velikhov declared that Russia has full funding available for the
ITER Tokamak fusion reactor being built in France, but expressed
concern that although the scientific equipment is ready, the
Europeans do not have enough money to start constructing the
building. After Holdren confirmed U.S. concerns about ITER
management, Velikhov added that in Russia, unauthorized spending is
a one-way ticket to jail.


14. (SBU) Kovalchuk declared that although the United States and
Russia are still competitors, we must improve cooperation on S&T so
that each country can advance. Concurring that both presidents are
interested in S&T, Kovalchuk pointed out that Kurchatov is at the
forefront of each of the five areas President Medvedev will focus
government's resources on: energy efficiency, nuclear, telecom and
space technologies, medical technologies, and IT, with 2 billion
rubles (approximately $69 million) to be allocated to each priority
area in the 2010 budget. Medvedev chose Kurchatov as the site for
the September 30 joint meeting of the Presidential Commission for
the Modernization and Technological Development of Russia's Economy
and the Presidium of the Council for Science, Technology and
Education at which Medvedev focused on only one issue -- the
"alarming" need to improve Russia's energy efficiency, pass relevant
legislation in the Duma, and develop energy-saving innovative
technologies. Medvedev also signed in September a decree
strengthening Kurchatov's status as a Russian national research
center. Kovalchuk said Kurchatov is ready to partner with the
United States on energy efficiency, declaring that together we can
feed the world with (nuclear) energy, while avoiding proliferation.
Kovalchuk's deputy directors described their international
cooperative research efforts. Kovalchuk raised the problems his
scientists face with getting U.S. visas which have greatly deterred
them from considering travel to scientific conferences in United
States. He stressed that Russian-EU science cooperation is far more
attractive because Russian scientists can get five-year
multiple-entry EU visas. Holdren responded that he had already
discussed visa issues with both MES and MFA and would undertake to
get visa issues raised to higher levels in the U.S. government.

Journalist Asks about U.S. S&T Funds, Russian Scientists in U.S.
-------------- --------------


15. (U) In an October 30 interview with Arthur Blinov, science
journalist at daily Nezavisimaya Gazeta, Holdren described the plans
of the S&T Working Group and noted that scientists in both countries
are very enthusiastic about new opportunities for bilateral
cooperation. Given the scope of challenges we are facing, he
explained that we need to combine resources since all of the most
prospective trends in S&T require joint efforts. Reflecting concern
in Russia about declining funding for science, Blinov was
particularly interested in U.S. science funding. Highlighting
President Obama's interest in science and the link between science
innovation and economic growth, Holdren confirmed that economic
research shows that 50 to 85 percent of the economic growth over the
past fifty years can be attributed to S&T research. When asked
about Russian immigrants' contributions to U.S. scientific

MOSCOW 00002932 008.2 OF 010


achievements, Holdren acknowledged their importance and added that
the United States has always profited from immigration of talent,
demonstrated by the fact that five of the eight recent U.S. Nobel
Prize winners are immigrants. He declared that it is important to
provide scientists with adequate working conditions, commenting that
many Russian scientists left Russia at the end of the Cold War when
conditions were poor. The situation in Russia has changed
significantly, however. He has visited Kurchatov Institute roughly
every five years since 1974 and is greatly impressed by its
progress. Today's Kurchatov Institute is a world class research
center, with talented staff and excellent equipment. The interview
in Russian is at: http://www.ng.ru/ideas/2009-11-02/6_holdren.h tml.

Think tanker Argues That Iran Must Stop Enrichment
-------------- --------------


16. (SBU) During their October 30 meeting, Alexey Arbatov, Head of
Center for International Security at the Institute of International
Economy and International Relations, told Holdren that his party,
Yabloko, sent a letter to President Medvedev on Iran's nuclear
program that called on the Russian Government to base its relations
with Iran on Iranian compliance with all five UN Security Council
resolutions. Now that Iran has revealed its enrichment facility at
Qom, Arbatov argued, it is clear that Iran has made the political
decision to create nuclear weapons. So it must cease uranium
enrichment. Yabloko sent a separate letter to President Medvedev in
support of Medvedev's article, "Russia, Forward," which advocates
rapid modernization. Arbatov said both the United States and Russia
need to sign a START treaty by the end of the year so that they are
not in a political and military vacuum. He claimed that whatever
the limits are by 2020, Russia will have only 100 missiles capable
of delivering warheads. Arbatov advised that the United States make
it clear that its missiles will not be used to carry conventional
weapons. On missile defense, Arbatov opined that Russian
specialists clearly understand that the deployment of missile
defense systems in Poland and the Czech Republic was not a threat to
Russia. This was used by Russian neoconservatives to foment
anti-American feelings.

President's Advisor: Russia Determined to Reinvigorate S&T
-------------- --------------


17. (SBU) Arkadiy Dvorkovich, Advisor to President Medvedev, was
pleased to learn that the first STWG meeting is planned to be held
by teleconference in January, applauding the use of technology to
enhance efficiency. When Holdren cautioned that it may be necessary
to refer obstacles to cooperation such as visas, customs duties,
taxes, and marine scientific research authorizations to Secretary
Clinton and FM Lavrov, Dvorkovich remarked that the WG Chairs are
empowered to work outside the strict competencies of their
ministries to resolve problems. For instance, a WG could and should
invite representatives from the Ministry of Foreign Affairs,
Ministry of Finance, etc to propose solutions the WG could present
to the presidents. Dvorkovich said improvements in Russian visas
would take place within a few months, starting with priority areas
where Russia needs human capital, such as English teachers.


18. (SBU) Dvorkovich called the three priority areas agreed on by
the STWG (nanotechnology, IT, and carbon cycle monitoring)
"excellent opportunities for collaboration." He highlighted the
announcement of President Medvedev's Commission on Modernization and
Technological Development of an additional 10 billion rubles
(approximately USD 345 million)for the President's five priorities

MOSCOW 00002932 009.2 OF 010


(energy efficiency, nuclear, telecom and space technologies, medical
technologies, and IT). He added that:
-- Russia wants to advance energy efficiency through an
interdisciplinary approach that harnesses nanotechnology and the new
Research and Education Centers;
-- Russia's telecom and IT goals include expanding broadband access,
fourth generation mobile phone technology, nationwide digital TV,
e-government, and global positioning technology for ships, road
traffic, and the development of digital maps. IT should be used to
provide English instruction by native speakers, and lectures in math
and science. After Holdren described gains from open government
initiatives, Dvorkovich commented that Russia's private sector, not
the Russian government, had developed a product similar to the
searchable U.S. Federal Register. He noted that Russian regional
governments had made significantly more progress than the central
government and noted Kazan is Russia's most advanced city government
in terms of e-government.
-- In medical science, Russia plans to better employ nuclear
medicine and super computers.


19. (SBU) Dvorkovich agreed that carbon cycle monitoring is
important, emphasizing that it could provide a technical solution to
a political problem - compliance and ensuring that other countries
live up to their emissions commitments, especially large emitters,
like China. He asked Holdren about reports that India and China had
mutually agreed to hold back on making ambitious commitments.
Holdren noted that China is making faster progress, but India has
been moving in the right direction over the last year or two.
Dvorkovich responded that Russia's position is clear - Russia is
ready to commit if the United States and China do. He stressed that
Russia has an ambitious energy efficiency program, which will go
forward no matter what happens in Copenhagen. Emphasizing the
importance of climate change to the U.S. government, Holdren said
Russia and the United States have a joint responsibility to lead.
Reducing emissions through innovation is the most cost effective way
to create new jobs. Reiterating Medvedev's desire to speed up
innovation, Dvorkovich said that Russia cannot succeed only with its
own resources and called for large U.S. companies to come and
establish R&D centers in Russia, along the lines of the Boeing R&D
center. He claimed that European companies were more engaged. When
Holdren noted that some U.S. businesses see Russia's legal
environment as an obstacle, Dvorkovich stated that successful
examples of U.S. R&D investment, like Boeing, will help counter this
perception. Dvorkovich stressed Medvedev's commitment to
anti-corruption, citing the prosecution of "hundreds of cases."


20. (SBU) Comment: The June celebration of fifty years of
cooperation between the Russian and U.S. academies of science
highlighted both Presidents' obvious interest in tapping science and
innovation to promote economic growth and their desire to work
together to do so. Holdren's visit successfully continued the
momentum from the July presidential summit and the October Secretary
Clinton/Foreign Minister Lavrov meetings. It was striking that
every single one of his interlocutors listed President Medvedev's
five priority areas for innovation. But if they were all on
message, that message clearly included warmly welcoming increased
S&T cooperation with the United States, particularly big, ambitious,
expensive projects. Holdren and Fursenko agreed to the five
priority areas and arrangements for the STWG surprisingly quickly.
Bedritskiy, unexpectedly dismissed on November 6, Dvorkovich, and
scientists from Kurchatov and the Russian Academy of Sciences were
also enthusiastic, although wary of visa problems. Only the
Ministry of Foreign Affairs seemed hamstrung by shadows of past

MOSCOW 00002932 010.2 OF 010


negotiations. One of the main challenges for the STWG will be to
manage expectations and demonstrate that targeted policy exchanges
and small projects can show real results. But key to those results
is finding ways to remove obstacles to cooperation such as visas,
customs duties, taxation, and marine scientific research
authorizations. End Comment.


21. (U) This cable was cleared by Dr. Holdren and Ms Rolf.

BEYRLE