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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