Deputy Secretary Steinberg Letter to President

UNCLAS STATE 048534


E.O. 12958: N/A
TAGS: OPDC PGOV PREL ECON EINV AJ
SUBJECT: Deputy Secretary Steinberg Letter to President
Aliyev on Behalf of Boeing (S/ES: 200908675)


1. Please deliver the following message from the Deputy
Secretary to President Aliyev. There will be no signed
original.


2. Begin text:

Dear Mr. President:

The State Department has recently been informed by
executives of Boeing Commercial Aircraft that Azerbaijan
Airlines (AZAL) is seeking to push back delivery of two
Boeing 737 aircraft and to cancel delivery on two
additional Boeing 737 aircraft. We also understand that
the first two 737 aircraft are set to be delivered in
2010 and are already in production. Boeing has told us
that they are flexible and committed to finding a
solution to any concerns that AZAL may have.

Over the last few years, Azerbaijan has made
significant progress in raising its profile with the
international business community. Your success in being
named the world's top reformer in the World Bank's 2008
"Doing Business" report was a major achievement. At a
time when Azerbaijan is attempting to diversify its
economy and to raise its commercial profile in the
United States and with international companies, the
abrogation or unilateral change to a signed
contract could negatively impact Azerbaijan's
international business reputation. I encourage you to
work with Boeing and AZAL officials to reach a
mutually satisfactory agreement to permit delivery of
the four aircraft as provided in the contract.

Sincerely,

James B. Steinberg

End text.

CLINTON