VZCZCXRO6574
OO RUEHCD RUEHDBU RUEHFL RUEHLA RUEHMRE
DE RUEHKB #0430/01 0801309
ZNY SSSSS ZZH
O 211309Z MAR 06
FM AMEMBASSY BAKU
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9899
INFO RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNOSC/ORGANIZATION FOR SECURITY COOPERATION IN EUROPE PRIORITY
RHMFISS/CDR USEUCOM VAIHINGEN GE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEHNO/USMISSION USNATO PRIORITY 0411
RUEKJCS/SECDEF WASHDC PRIORITY

S E C R E T SECTION 01 OF 02 BAKU 000430 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR EUR/SNEC AND EUR/CARC 
 
E.O. 12958: DECL: 03/22/2016 
TAGS: PREL PGOV PHUM KDEM ECON ENRG MOPS AJ
SUBJECT: PRESIDENT ALIYEV LOOKS TO THE FUTURE OF AZERBAIJAN 
 
 
Classified By: Ambassador Reno L. Harnish III per 1.4 (b,d). 
 
¶1. (C) SUMMARY: In a meeting with EUR A/S Fried on March 
14, President Aliyev said that the U.S.-Azerbaijan 
relationship remains strong and reaffirmed Azerbaijan,s 
westward orientation.  Aliyev expressed concern about 
the situation of ethnic Azeris in Georgia asked A/S Fried 
to raise the issue there.  On domestic issues, Aliyev said 
that after 15 years of energy sector development, Azerbaijan 
now had to use oil revenues wisely, reduce poverty and avoid 
&Dutch Disease.8  A/S Fried urged Aliyev to create space for 
the democratic process in Azerbaijan and to ensure jailed 
ex-Ministers Ali Insanov and Farhad Aliyev have a transparent 
and fair trail.  Aliyev said the trial would be soon, open 
and transparent.  END SUMMARY. 
 
¶2. (C) On March 14, EUR Assistant Secretary Fried, 
Ambassador Harnish, EUR/SNEC Special Negotiator Mann, 
EUR/CARC Director Rood, and EUCOM Colonel Anderson met with 
President Aliyev on a wide range of issues.  (Nagorno-Karabakh 
issues reported septel.)  A/S Fried began by noting that 
Azerbaijan's opportunities outweighed its problems.  All the 
country's problems, whether the need to deepen democracy, 
reform economically, or solve N-K, were manageable, he said. 
 
A Crucial Time 
-------------- 
 
¶3. (C) President Aliyev underscored his belief that after 15 
years of energy development, Azerbaijan had reached an 
important juncture.  The major question, he said, was how not 
to spend the oil revenue in a way that resulted in 
macroeconomic 
instability.  He stressed that Azerbaijani society was 
"stable," with 340,000 jobs created and a 20 percent 
decrease in poverty in the past two years.  He stressed 
that politically, he and the ruling YAP party were in a 
strong position.  It was not his fault, he argued, that the 
opposition was weak and fractured.  Following the breakup 
of the tenuous coalition of opposition parties after the 
November election, he noted, the opposition had turned to 
blame the U.S. for its lack of success. 
 
¶4. (C) Internationally, Aliyev looked to the West, 
stressing that he valued relations with the U.S. 
Sandwiched between "two elephants" in Iran and Russia, 
Aliyev believed that Black and Caspian Sea cooperation were 
important issues for global security.  As Azerbaijan 
increased its international involvement, perhaps its 
Chairmanship of the Foreign Ministers Conference of the OIC 
could also prove useful to the West.  While N-K was the GOAJ's 
fundamental international issue, he said, the treatment of 
ethnic Azeris living in Georgia was of growing concern. 
Many ethnic Azeris there, Aliyev claimed, were dissatisfied 
with 
their lack of ability to own land.  While Azerbaijan "could 
not afford problems" in relations with Georgia, Aliyev also 
noted that between five and six ethnic Azerbaijanis had 
been killed in Georgia and asked that A/S Fried raise the 
issue during his stopover in Georgia.  A/S Fried agreed. 
 
SECURITY ISSUES 
--------------- 
 
¶5. (S) A/S Fried noted that the USG looked to deepen its 
relationship with Azerbaijan across the board.  DFM 
Azimov's upcoming visit to the U.S. for Pol-Mil talks would 
be an important opportunity for dialogue on Iran.  Military 
cooperation continued to deepen, and Colonel Anderson noted 
USG and Turkish interest in rehabilitating Nasosnaya 
airbase as a refueling stop.  A EUCOM study had estimated a 
need for USD 36 million to fully upgrade the airbase and 
Azerbaijan should consider funding the project in addition to 
U.S. assistance. 
 
DEMOCRACY AND HUMAN RIGHTS 
-------------------------- 
 
¶6.  (C) Turning to Azerbaijan,s politics, A/S Fried noted 
his 
satisfaction that some opposition MPs had taken seats 
won during the November parliamentary election.  Common 
understanding among political forces in Azerbaijan is an 
important goal, he said; presidential leadership was 
necessary to create a "space" for the democratic process. 
 
BAKU 00000430  002 OF 002 
 
 
Fried also asked for an update on the trials of two 
ministers first detained in October 2005. 
 
¶7. (C) President Aliyev noted that which parties the West 
appeared to support influenced public opinion in 
Azerbaijan.  While he expressed personal dislike for 
opposition leader Isa Gambar, Aliyev was nonetheless 
pleased Gambar,s Musavat party had decided to take its seats 
in parliament following the November election and shared A/S 
Fried's disappointment that others had vacated their seats. 
On the detention cases of former Minister of Economic 
Development Farhad Aliyev and Minister of Health Ali Insanov, 
President Aliyev questioned why Western interest seemed to 
focus on Farhad Aliyev.  Obviously uncomfortable, he 
indicated that trials would begin "soon."  However, President 
Aliyev claimed the two ex-ministers were not "political 
people," 
but government workers.  He could not understand why the cases 
had drawn so much attention, noting that a visiting EU 
Commissioner had raised the issue as well, but had pressed 
only 
on Farhad Aliyev's behalf.  Nevertheless, President Aliyev 
promised an open and transparent trial for both men. 
 
¶8. (U) A/S Fried has cleared this message. 
 
HARNISH