MAXIM BAKIYEV'S DEBUT ON THE INTERNATIONAL

C O N F I D E N T I A L SECTION 01 OF 02 BISHKEK 000086 SIPDIS DEPT FOR SCA/CEN E.O. 12958: DECL: 02/03/2020 TAGS: PGOV PREL KG SUBJECT: MAXIM BAKIYEV'S DEBUT ON THE INTERNATIONAL DIPLOMATIC SCENE REF: BISHKEK 0010 Classified By: Amb. Tatiana Gfoeller, Reason 1.4 (b) and (d). ¶1. (C) Summary: Maxim Bakiyev made his international debut leading an official delegation to China. He returned home triumphant, at least at first glance, with several signed agreements, including one on Chinese financing for the construction of a trans-Kyrgyzstan power transmission line. However, upon examining the agreements more closely, the Kyrgyz Government may be finding that few of the agreements are in fact binding, and that Bakiyev's first diplomatic foray falls short of an unqualified success. End Summary. International Debut -------------- ¶2. (C) Maxim Bakiyev, as the Head of the Central Agency for Development, Innovation and Investment, led his first official delegation to China on January 11-13. The delegation included State Minister for Foreign Affairs Kadyrbek Sarbayev, the Ministers of Finance and Energy, and the CEOs of Dastan, a military equipment manufacturer, and Kyrgyz Agrocorporation. The Kyrgyz' Chinese interlocutors included the Vice Premier of the China State Council, the Deputy Minister of Foreign Affairs, the Deputy Minister of Commerce, the Railways Minister and a number of banking and economic officials. A Good Visit -------------- ¶3. (C) Discussions between the Kyrgyz delegation and Chinese officials focused on several large infrastructure projects, including the construction of a rail line connecting China, Kyrgyzstan and Uzbekistan, and the modernization of the Bishkek Combined Heat and Power Plant. Of greatest significance was the signing of an agreement by the heads of the National Electric Grid of Kyrgyzstan and the Chinese Tebian Electric Apparatus Stock Co. to construct a 500 kW power transmission line from Datka in the south of Kyrgyzstan to Kemin in the north, with an associated substation in Datka. The project, which is estimated at $342 million, would be funded in part by two separate loans from the Chinese side, the details of which were not released. ¶4. (C) In addition, Kyrgyzstan and China discussed cooperation in the mining sector and urban development, as well as the creation of two agricultural facilities in Kyrgyzstan that would make use of China,s knowledge of food exportation procedures. The two sides reportedly also agreed to hold a bilateral gathering later in 2010 to discuss economic initiatives. The Kyrgyz delegation made progress in establishing a memorandum of cooperation with the Shanghai Stock Exchange that would allow Kyrgyz companies to participate in the Chinese exchange, and would contribute to the growth of the Kyrgyz stock market. Finally, the two sides reached an agreement on interagency cooperation between Kyrgyzstan,s Economic Development Fund and the Chinese Development Bank. ¶5. (C) In meetings with Ambassador and DCM, Sarbayev and Maxim Bakiyev both expressed great satisfaction with the results of the visit, strongly emphasizing the importance of Chinese financing for infrastructure development in Kyrgyzstan. But Maybe Not All That Good -------------- ¶6. (C) While pro-government media coverage has been positive in Kyrgyzstan, the visit apparently drew little media coverage in China, leading some members of the press to speculate that the trip was of minimal significance to the BISHKEK 00000086 002 OF 002 Chinese side. Similarly, French Charge to Kyrgyzstan Jean-Pierre Godart, and separately the German Ambassador, Holger Green, suggested to the Ambassador that neither side was particularly pleased with the results of the visit. According to Godart, the Chinese side found Bakiyev to be inexperienced, and privately made disparaging comments regarding the quality of the Kyrgyz delegation. Further, given his heading of the delegation and the lack of a comparable Chinese official, the Chinese were reluctant to schedule meetings with ministry heads, instead settling on deputy ministers. On the Kyrgyz side, Godart informed the Ambassador that there was now concern that the agreements Bakiyev brought home may not be binding, thus calling into question the success of the visit. ¶7. (C) Green (who has served several tours in China, speaks excellent Chinese, and is on warm terms with the resident Chinese Ambassador here) told the Ambassador that the Chinese felt insulted by the "nepotism of sending a dictator,s son to negotiate state-to-state agreements. It is not in their traditional culture and not in their Communist Party culture." As a result of being thus "held hostage" to Maxim Bakiyev, and despite his extensive knowledge of all things Chinese, Sarbayev ended up not meeting with his Chinese counterpart. GFOELLER =======================CABLE ENDS============================