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UNCLAS SECTION 01 OF 02 ASTANA 000249 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, SCA/RA, EEB 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON KZ
SUBJECT:  KAZAKHSTAN:  DEPUTY FOREIGN MINISTER INSISTS ON 
RECIPROCITY IN DOING BUSINESS 
 
REF: A. ASTANA 0247 
     ¶B. ASTANA 0175 
     ¶C. ASTANA 0049 
 
ASTANA 00000249  001.3 OF 002 
 
 
¶1.  (SBU) SUMMARY:  This is an action cable (see para 6). 
The Ambassador met Deputy Foreign Minister Kairat Umarov on 
February 19 to discuss a range of issues, including the 
Annual Bilateral Consultations (ABC), the visit of Special 
Representative Richard Holbrooke, tarmac access, FSN income 
taxes, the Presidential Entrepreneurship Summit, and the 
pending AES arbitration case.  Post reported separately on 
the ABC (ref A).  END SUMMARY. 
 
NO MORE SUNDAY VISITS 
 
¶2.  (SBU) Regarding the visit on February 21 of Special 
Representative to Afghanistan and Pakistan Richard Holbrooke, 
Umarov told the Amabssador that Kazakhstan welcomed the 
visit, and would accommodate the delegation at a Sunday 
meeting with Saudabayev.  However, he put his hands down 
firmly on the table and said, "This is the last Sunday 
meeting we will accept.  We are not going to tolerate this 
any more.  In the future," he said, "Sunday meetings will be 
impossible to arrange." 
 
TARMAC ACCESS BASED ON RECIPROCITY 
 
¶3.  (SBU) The Ambassador informed Umarov that the Embassy has 
found it increasingly difficult to obtain permission for 
Embassy staff and vehicles to access the airport tarmac to 
meet arriving flights delivering classified pouches.  Umarov 
admitted that the MFA had "absolutely revised its norms" and 
procedures regarding tarmac access.  Reciprocity," he said, 
"is the key issue."  Umarov explained that if a country wants 
to increase the number of people who have access to a special 
zone at the airport, then it must be prepared to grant 
Kazakhstan the same level of access.  According to Umarov, 
all of the European countries have agreed to this principle. 
 
¶4.  (SBU) The Ambassador pushed back, noting that flights 
delivering classified pouches are a different issue than 
access to greet visiting dignitaries, and that strict 
reciprocity is not possible.  Umarov disagreed.  He said that 
Kazakhstan also sends diplomatic pouches with classified 
material, but has not complained to the United States about 
its inability to meet the shipment on the tarmac.  "We play 
by your rules, and we don,t complain," he said.  The 
Ambassador promised to research the issue further and Umarov 
agreed to revisit the issue later.  Umarov said that 
Kazakhstan must play fair with all countries represented in 
Kazakhstan, but indicated that if there are special 
circumstances or exceptions for Russia or China, for example, 
then he would be willing to ask the MFA,s Protocol 
Department to make a similar exception for the United States. 
 
FSN TAXES 
 
¶5.  (SBU) On the issue of local taxes, the Ambassador 
informed Umarov that local Embassy employees in Almaty 
continue to complain about being harassed by the Financial 
Police for not having paid their personal income taxes in 
full, on time.  Umarov admitted that he was not well informed 
about the specifics of the issue, but promised that the MFA 
would raise it with the Financial Police.  He also said that 
the MFA was working with the Ministry of Finance to schedule 
a meeting in Almaty for local Embassy employees to discuss 
the taxation issue. 
 
ENTREPRENEURSHIP SUMMIT 
 
¶6.  (SBU) Umarov brought up the Presidential Entrepreneurship 
Summit on April 26-27, and said that one of the three 
 
ASTANA 00000249  002.3 OF 002 
 
 
Kazakhstani delegates would like to deliver an address at the 
Summit, particularly if other delegations will be given an 
opportunity to speak (ref B).  The Ambassador promised to 
relay this request to Washington.  Umarov also said that the 
Embassy of Kazakhstan in Washington is actively engaged in 
promoting Kazakhstan,s role in the Summit, and is working 
with the U.S.-Kazakhstan Business Association to organize 
representational events during the week of the Summit. 
During an informal conversation on February 21, Umarov asked 
the Ambassador if it would be possible to substitute a 
leading female entrepreneur for one of the three males.  He 
said, "It doesn't seem right that you haven't included a 
woman."  ACTION REQUEST:  Please advise if it will be 
possible for a member of the Kazakshtani delegation to speak 
at the Entrepreneurship Summit, and if it would be possible 
to add or substitute an appropriate female entrepreneur for 
the Kazakhstani delegation.  END ACTION REQUEST. 
 
AES SENDING MIXED SIGNALS 
 
¶7.  (SBU) Umarov told the Ambassador that the government of 
Kazakhstan has received "contradictory signals" from the U.S. 
energy company AES.  He said the government has "no 
understanding of where the company stands and what they 
want."  Umarov said the U.S. power company contacted the 
Embassy of Kazakhstan in Washington and asked for Ambassador 
Idrissov,s assistance to craft a compromise position to 
resolve an impasse that appears headed toward international 
arbitration (ref C).  Umarov said that AES informed Idrissov 
that the company would like to reach a compromise that would 
enable AES to remain in Kazakhstan for the long-term.  But he 
said that in Kazakhstan, the government has a different 
impression.  "We would like to continue to work with this 
company," he asserted.  "But there are many negative feelings 
about what they did and how they did it.  All we hear from 
AES are demands and criticism of our laws," he said.  (NOTE: 
One of the key issues for both sides is electricity tariffs. 
Kazakhstan also complains that AES has failed to meet its 
capital investment commitments.  END NOTE).  Umarov said the 
Ministry of Finance will "soon" present AES with its proposal 
for resolving the pending dispute.  "If AES signs it," he 
said, "then we can put this to rest and move on.  If they 
don,t" he warned, "then we will have to find a different 
solution." 
HOAGLAND