UZBEKISTAN: EXIM SUPPORT FOR TAPOICH, PART II

UNCLAS TASHKENT 001265 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 TAPOICH, PART II REF: TASHKENT 1121 ¶1. (U) This is an action request. See paragraph 3. ¶2. (SBU) Embassy Tashkent thanks ExIm for its response to reftel. Based on this response, Post has prepared a non-paper for transmission to GOU officials outlining the possibilities for ExIm financing support for purchase of U.S.-manufactured components. ACTION REQUEST -------------- ¶3. (SBU) Post requests that SCA/CEN forward the following non- paper to ExIm for clearance. BEGIN NON-PAPER - Ex-Im Bank may be willing to consider short-term financing support (e.g., less than 1 year) for the TASHKENT AVIATION PRODUCTION ASSOCIATION (TAPOICH) to enable purchase of the U.S. manufactured components that will be used in the manufacture of the IL-114 aircraft. -- This financing support would provide a few months of credit so that TAPOICH could pay the U.S. suppliers for their components when shipped to Uzbekistan. -- TAPOICH would not be required to repay the credit for the few months it would take to install the components on the IL- 114 aircraft, sell the aircraft, and receive payment from the receiving airline. - The U.S. does not appear to build a competing aircraft, but this is an analysis that will have to be performed before financing support is given. - Any type of Ex-Im Bank supported financing for TAPOICH likely will require a guarantee from the Ministry of Finance of Uzbekistan. - Ex-Im is not willing to consider long-term financing to support the sale of completed IL-114 aircraft to airline purchasers. END NON-PAPER BUTCHER