UZBEKISTAN: EXIM SUPPORT FOR TASHKENT AVIATION PRODUCTION

UNCLAS TASHKENT 001121 SENSITIVE SIPDIS DEPARTMENT FOR SCA/CEN DEPARTMENT PASS TO EXIM (BRIAN SANT ANGELO AND ROBERT MORIN) DEPARTMENT OF COMMERCE FOR DANICA STARKS E.O. 12958: N/A TAGS: EINV EFIN UZ SUBJECT: UZBEKISTAN: EXIM SUPPORT FOR TASHKENT AVIATION PRODUCTION ASSOCIATION ¶1. (U) This is an action request. See paragraph 4. BACKGROUND -------------- ¶2. (SBU) Embassy Tashkent received an inquiry from Uzbek Deputy Prime Minister (DPM) Ulugbek Rozukulov regarding ExIm financing feasibility for the Tashkent Aviation Production Association (TAPOiCh). TAPOiCh manufactures the IL-114-100 medium range turboprop passenger plane. It contains significant U.S. content, including auxiliary power units (APUs) from Honeywell, avionics from Rockwell Collins, and airscrews from the American Hamilton Sundstrand Company. DPM Rozukulov would like to know whether ExIm would be able to participate by helping to finance TAPOiCh's purchase of these U.S. components. ¶3. (SBU) Post believes ExIm support for the Il-114 could benefit U.S. exporters and enhance overall U.S. export opportunities in Uzbekistan. TAPOiCh is state owned and therefore effectively has sovereign backing in terms of risk. Uzbekistan has never defaulted on a loan. ACTION REQUEST -------------- ¶4. (SBU) Post requests that SCA/CEN forward the following questions to ExIm and would appreciate a response before the visit of U/S Burns to Tashkent on July 11, 2009. -- Would the U.S. content in the IL-114-100 aircraft make TAPOiCh eligible to use ExIm financing as it seeks to expand production and, hence, procure more U.S.-manufactured components? -- Assuming ExIm financing is feasible, how should we instruct TAPOiCh to proceed? NORLAND