VZCZCXRO9338
PP RUEHLN RUEHVK RUEHYG
DE RUEHDBU #1555/01 2260642
ZNR UUUUU ZZH
P 140642Z AUG 06
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC PRIORITY 8359
INFO RUCNCIS/CIS COLLECTIVE
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC
RHEHAAA/NSC WASHINGTON DC
RUEHAK/AMEMBASSY ANKARA 1758
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RUEHBUL/AMEMBASSY KABUL 1709
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RUEHNE/AMEMBASSY NEW DELHI PRIORITY 1716
RUEHFR/AMEMBASSY PARIS 1494
RUEHKO/AMEMBASSY TOKYO 1485
RUEKJCS/SECDEF WASHDC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RHMFISS/HQ USEUCOM VAIHINGEN GE
RUCNDT/USMISSION USUN NEW YORK
RUEHNO/USMISSION USNATO 1677
RUEHBS/USEU BRUSSELS 1036
RUEHVEN/USMISSION USOSCE 1729
RUEHDBU/AMEMBASSY DUSHANBE PRIORITY 9722
RUEHML/AMEMBASSY MANILA 0071

UNCLAS SECTION 01 OF 02 DUSHANBE 001555 
 
SIPDIS 
 
SIPDIS 
STATE FOR SCA/CEN 
 
E.O. 12958: N/A 
TAGS: PREL PGOV ETRD ECON ENRG EFIN TI IN
SUBJECT: BUMPS ON THE SILK ROAD: TAJIK PRESIDENT RAHMONOV PROMOTES 
RELATIONS WITH INDIA 
 
 
DUSHANBE 00001555  001.2 OF 002 
 
 
¶1. SUMMARY:  President Rahmonov conducted a five-day state visit 
to India from August 6-10, his first trip to India since 2004. 
Rahmonov sought to bolster flagging economic relations between 
India and Tajikistan, encouraging Indian investments in hydro 
power projects.  The two countries signed five memoranda of 
cooperation on economic and technical issues.  This cable 
highlights the Tajik press reports on the visit.  End Summary. 
 
NEW AGREEMENTS 
 
¶2. According to media reports, President Rahmonov was given a 
ceremonial welcome August 7 and formally greeted by Indian 
President A P J Abdul Kalam and Prime Minister Manmohan Singh. 
Speaking to reporters after the ceremony, Rahmonov said he 
looked forward to enhancing inter-governmental and economic ties 
between the two countries.  According to President Rahmonov, 
Tajikistan considers India one of its main strategic partners. 
 
¶3. Five agreements were signed, covering energy cooperation; 
cultural, scientific and technical cooperation; consultations 
between MFAs; and cooperation between the Councils of Foreign 
Affairs of India and Tajik Academy of Sciences.  Additionally, 
the Government of India granted $13 million in assistance to 
rehabilitate a 12MW power plant at Varzob near Dushanbe. 
Important to the Indian side, Tajikistan expressed its 
willingness to support India as a candidate for permanent 
membership in the United Nations Security Council. 
 
TALKING TRADE 
 
¶4. Meeting with Prime Minister Singh, President Rahmonov 
highlighted the bilateral development on military and 
inter-parliamentary cooperation but noted that the two 
countries' economic cooperation does not meet its potential. 
Trade between the two nations decreased from $30 million in 2002 
to less than $1.5 million in 2005.   According to Daily India, 
President Rahmonov invited the Indian side to participate in the 
construction of the Rogun and Dashtijum hydropower projects in 
Tajikistan. The Indian Ambassador commented to the press, 
however, that India has no specific plans to participate in the 
large hydro energy projects in Tajikistan. 
 
¶5. President Rahmonov met with several business and trade 
associations August 7 to discuss trade, economic and cultural 
issues.  The participants discussed setting up Tajik-Indian 
joint ventures for processing precious stones and cotton fiber. 
President Rahmonov pledged support for Tajik-Indian trade, 
economic and political relations "in every possible way." 
 
¶6. On August 8, Rahmonov addressed a conference at the Indian 
Council of World Affairs on "Tajikistan and the Vision of 
Central Asia."  Two volumes of the English translation of noted 
Tajik scholar Bobojon Gafurov's seminal work "Central Asia: 
Pre-Historic to Pre-Modern Times," were released on the 
occasion. 
 
A LIMITED BUT COOPERATIVE RELATIONSHIP COULD EXPAND 
 
¶7. Tajikistan and India already cooperate on a limited basis on 
military and social issues.  India is currently reconstructing 
the Ayni airport, situated 10-15 km to the west of Dushanbe. 
India's Border Roads Organization is building three hangars 
there.  According to BBC, the facility's reconstruction will be 
completed by the end of 2006. 
 
¶8. India supports several projects to develop human resources 
and technical capacity in Tajikistan, including the Bedil 
India-Tajikistan Centre for Information Technology, inaugurated 
July 18 in Dushanbe.  India also helps train Tajik nationals in 
 
DUSHANBE 00001555  002.2 OF 002 
 
 
various Institutes in India under the India Technical and 
Economic Cooperation program, as well as training of military 
personnel in defense institutes. 
 
¶9. At various stops during the visit, President Rahmonov 
suggested tourism, pharmaceuticals, construction, agriculture, 
hydro-energy, food supplies, and minerals, as areas to drive the 
bilateral trade.  (NOTE: Reports did not mention two 
Indian-backed projects which have moved very slowly: a five-star 
hotel that has encountered numerous problems with the Dushanbe 
Mayor's office, and an Indian-financed juice factory that has 
not come on line eighteen months after completion, also due to 
problems with the Dushanbe Mayor.  END NOTE.) 
 
MOUNTAINS APART 
 
¶10. COMMENT:  No highways or railways connect Tajikistan and 
India.  Tajik Air cancelled the only direct air flight between 
Tajikistan and India in 2005 due to serious losses.  While 
President Rahmonov wants to boost its economic and trade 
relations, opportunities remain limited with Pakistan and 
Afghanistan standing between Tajikistan and India.  The 
U.S.-funded bridge over Nizhniy Pyanj may help link India to 
Central Asia and promote regional trade, but in the near future, 
most of the statements of President Rahmonov will remain as talk 
rather than real projects.  The business climate in Tajikistan 
has not yet convinced Indian investors that Tajikistan really 
offers them potential partners. END COMMENT. 
HUSHEK