VZCZCXRO5086
RR RUEHDBU RUEHIK RUEHYG
DE RUEHBUL #3569/01 2211130
ZNR UUUUU ZZH
R 091130Z AUG 06
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC 1859
INFO RUCNAFG/AFGHANISTAN COLLECTIVE
RUEHDE/AMCONSUL DUBAI 4503
RUEKJCS/OSD WASHINGTON DC
RUEKJCS/JOINT STAFF WASHDC
RHMFIUU/HQ USCENTCOM MACDILL AFB FL
RHEHNSC/NSC WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RHEFDIA/DIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 KABUL 003569 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR SCA/FO, SCA/A, NEA/IR 
NSC FOR AHARRIMAN 
CENTCOM FOR CG CFC-A 
DUBAI FOR IRAN OFFICE 
 
E.O. 12958: N/A 
TAGS: ELTN ECON PREL IR AF
SUBJECT: PRT Herat: Iran's Influence in the West: 
Inauguration of Highway, Rail(!) Projects 
 
 
KABUL 00003569  001.2 OF 002 
 
 
Summary 
------- 
 
¶1.  (SBU) On July 29, the vice presidents of Afghanistan and 
Iran dedicated three Iranian-funded projects: completion of 
a portion of highway linking Herat province to Badghis and 
points north; "ground breaking" for a railway from Khaf, 
Iran, to Herat (pledged by Iranian President Ahmadinezhad to 
President Karzai in Dushanbe); and the opening of the Herat 
branch of Iranian-owned Arian Bank.  The ceremony 
encapsulated Iran's efforts to gain influence via commercial 
outreach into western Afghanistan; the GOI's demonstrably 
patronizing attitude towards its Afghan counterpart; and 
uncritical Afghan acceptance of Iranian development 
"largesse" - even when financially and economically unsound 
for Afghanistan.  End summary. 
 
¶2.   (SBU) In a ceremony at Heart's (still unopened) "Five 
Star Hotel," Afghan Vice President Ahmad Zia Massoud and his 
Iranian counterpart for Executive Affairs, Ali Saeedlou, 
formally opened a 60-kilometer portion of the Herat-Qal-i- 
Naw stretch of the Ring Road, built at a cost of USD 23 
million.  The new hardtop to the provincial frontier with 
Badghis will eventually link with the Spanish-built portion 
of the Ring Road, currently under construction.  When -- and 
if -- completed, the rail line from Khaf to within 15 
kilometres of Herat would extend 191 kilometres.  An Iranian 
Embassy press release said Iran would fund (at $78 million) 
the 77 kilometre portion of the railway from Khaf to the 
Iranian-Afghan border and 61 kilometres of rail into 
Afghanistan ($75 million).  The GoA would have to finance 
the rest of the track (roughly 50 kilometres) to Herat city. 
Moreover, according to the Iranian vice-president, the 
project must be completed in three years, as per a signed 
mutual agreement. 
 
Unrealistic Railroad? 
--------------------- 
 
¶3.  (SBU) While Saeedlou affirmed the commercial utility of 
the Khaf-Herat railway, PRToff later privately spoke with 
Herat Governor Anwari and Herat MFA Representative Afzali 
about the economic viability of such a rail link and 
questioned whether such a project would ever become 
operational, let alone profitable. Among issues apparently 
never considered by the Afghan side: competition with the 
new and underutilized Islam Qala-Herat highway which the 
railroad would parallel; inevitable land disputes over the 
rail right of way; truck-based customs facilities now 
planned for Islam Qala; the railway's inherently low 
capacity utilization combined with very high marginal costs; 
the need for expensive engines/carriages/maintenance shops 
and on-load/off-load infrastructure; management, labor and 
training; the high cost of capital; the railway's short 
distance which in any case necessitates truck movement for 
all freight; and, perhaps most importantly, the absence of 
rail within Heart's own provincial development priorities. 
While PRToff conceded that Iran could spend, or waste, its 
resources as it sees fit, he noted that Iranian contractors 
and engineering firms were the project's big beneficiaries. 
Meanwhile, the GoA and Herat Province would inevitably be 
called upon to absorb the project's enormous costs before 
one kilogram of freight could be shipped.  End comment. 
 
Iranian Remarks 
--------------- 
 
¶4.  (SBU) In his remarks, Saeedlou clearly sought to make a 
political statement.  According to journalists who attended 
the ceremony, the Iranian VP explicitly announced Iran would 
halt its Afghan reconstruction assistance unless the GoA set 
a date for the departure of "international forces" from 
Afghanistan.  However, in a private conversation with 
PRToff, MFA Rep. Afzali denied that the Iranian Vice 
President had made such a statement.  Given reported 
confusion among participating Afghan officials during the 
 
KABUL 00003569  002.2 OF 002 
 
 
event, it is likely Saeedlou did try to score points for 
Tehran on this issue. Afzali confessed that the ceremony 
"belonged to the Iranians."  The Iranian team was well 
prepared with "everything on paper."  An Iranian advance 
team landed in Herat 48 hours before Saeedlou's arrival. 
The Afghan side, on the other hand, had not prepared nor 
sent any advance team to Herat.  Afzali agreed that while 
the Iranians were thinking of their image, the participating 
Afghans were concerned with cutting the ribbons and 
returning to Kabul. 
 
¶5.   (SBU) Behind the scenes, protocol hiccups marred the 
event.  Because of an argument over arrival timings, Afghan 
VP Massoud waited for three and a half hours for the arrival 
of his counterpart.  Iran insisted Saeedlou give his speech 
after Masoud, presumably so that his message, including 
diatribes against the U.S., Israel, etc., would resonate 
most effectively with the audience.  The MFA won the day and 
kept Massoud last - although given the reportedly poor 
caliber of his unrehearsed, unscripted speech, it probably 
made no difference.  Afzali bemoaned the GOA's amateurish 
performance, compared to the polished Iranians, which he 
blamed largely on the VP's own office. 
 
Comment 
------- 
 
¶6.   (SBU) While the Herat-Faryab portion of the Ring Road 
is an important national project, the same cannot be said 
for the Khaf-Herat railway. Heratis seem to believe the 
project will catalyze development and trade.  Little or no 
consideration appears to have been given to the huge costs 
relative to the minimal benefits such a project entails. 
Nor has anyone, in Herat at least, questioned why rail is 
necessary when Herat already enjoys the country's best road 
connection to the border.  Diverting scarce capital 
resources to a costly rail project - which appear to 
primarily benefit Iranian contractors - is not wise and 
bodes ill for Afghanistan's economic development. 
 
¶7.   (SBU) Senior GOA leadership must be better prepared for 
future high level visits of this nature. While Afghan 
officials did not join in with Saeedlou's vitriolic anti- 
U.S./anti-Israel attacks, they were unprepared with any 
response or talking points, thus giving the appearance of 
benign concurrence with Iranian rhetoric. 
NEUMANN