VZCZCXRO4462
RR RUEHLN RUEHVK RUEHYG
DE RUEHDBU #1718/01 2581309
ZNR UUUUU ZZH
R 151309Z SEP 06
FM AMEMBASSY DUSHANBE
TO RUEHC/SECSTATE WASHDC 8591
INFO RUCNCIS/CIS COLLECTIVE
RUEHNE/AMEMBASSY NEW DELHI 1804
RUEHBUL/AMEMBASSY KABUL 1780
RUEHIL/AMEMBASSY ISLAMABAD 1819
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHDC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHDBU/AMEMBASSY DUSHANBE 0008

UNCLAS SECTION 01 OF 02 DUSHANBE 001718 
 
SIPDIS 
 
STATE FOR SCA/CEN 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ECIN ECON EFIN ENRG PREL EAID TBIO TI
SUBJECT: CHINESE PRIME MINISTER BRINGS GOOD FORTUNE TO SCO TALKSIN 
DUSHANBE 
 
DUSHANBE 00001718  001.2 OF 002 
 
 
¶1.  (U)  SUMMARY: The fifth session of the Shanghai Cooperation 
Organization heads of government began September 15 in Dushanbe 
to a flourish of publicity.  High-level representatives from 
China, Russia, Kyrgyz Republic, Kazakhstan, and Uzbekistan, 
observers from India, Iran, Pakistan, and Mongolia, as well as 
Afghanistan as a non-status observer, will focus on regional 
economic and security cooperation.  Chinese Premier Wen Jiabao's 
visit to Tajikistan, the first of its kind in 14 years, along 
with the first joint military cooperation between China and 
Tajikistan, serves to greatly boost the relationship between the 
two countries.  END SUMMARY. 
 
¶2.  (U)  Members of the Shanghai Cooperation Organization (SCO) 
meeting September 15-16 will seek to further the implementation 
of resolutions passed by the June SCO summit in Shanghai, as 
well as pass the organization's 2007 budget.  According to press 
reports, the main issues of discussion include cooperation in 
the fields of economy, telecommunications, transportation, 
energy, environmental protection, and education.  Leading the 
delegations are: Tajik Prime Minister Oqil Oqilov, Chairman of 
the Chinese State Council Wen Jiabao, Russian Prime Minister 
Mikhail Fradkov, Kazakh Prime Minister Daniyal Akhmetov, Kyrgyz 
Prime Minister Felix Kulov, and Uzbek Deputy Prime Minister 
Rustam Azimov.  From SCO observing countries: Indian Minister of 
State in the Prime Minister's Office Prithviraj Chavan, Iranian 
Vice-President for Executive Affairs Ali Saidlu, Pakistan's 
Prime Minister Shaukat Aziz, and Mongolian Vice Prime Minister 
Mendsayhany Enhsayhan.  First Vice President of Afghanistan 
Ahmad Zia Masud is attending as a guest.  This SCO Prime 
Minister's meeting will provide the basis for the next SCO 
President's meeting. 
 
¶3.  (U)  Zhang Deguang, Executive Secretary of the SCO, met with 
President Rahmonov to discuss the agenda of the summit. 
According to press, Zhang publicly praised the social and 
political situation in Tajikistan, particularly for its 
"stability, peace and national unity. . . .  This as well as the 
economic development of the country is very important for 
security in the Central Asian region."  Zhang and Rahmonov 
discussed issues of post-war reconstruction of Afghanistan's 
economy.  "We are interested in reestablishment of stability in 
this country, because stability and security of the SCO states 
depend on security and stability in Afghanistan."  The SCO and 
Afghanistan set up a contact group to consider measures to 
reconstruct Afghanistan's economy and deal jointly with 
international terrorism and drug trafficking. 
 
¶4.  (U)  According to the Ministry of Economic Development of 
Russia, SCO representatives will approve two new highway 
projects during the SCO meeting.  The two highways will be built 
through: Russia, China, Kazakhstan, Uzbekistan and Tajikistan. 
Despite Tajikistan's stated belief that energy projects are best 
discussed on a bilateral basis, rather than through the SCO, 
Russia and others will ensure that regional energy cooperation 
remains high on the agenda.  According to government sources, 
SCO Observers Iran, India and Pakistan are actively seeking 
membership in the SCO, whereas Mongolia lacks such interest. 
 
¶5.  (SBU)  According to news reports, during Chinese-Tajik 
discussions the sides will discuss the implementation of 
previously signed agreements on economic, military and technical 
cooperation, and discuss possibilities for new Chinese 
investments in Tajikistan, particularly in the hydropower 
sector.  The two sides are also expected to discuss regional 
security, and strengthening cooperation in the fight against 
terrorism, extremism and separatism.  Jiabao and Rahmonov are 
expected to take part in an official ceremony launching the 
construction of the electric transmission line (LEP) 
"North-South" in the Varzob Gorge.  In addition, Chen Yuan, 
Chairman of China's Development Bank arrived in Dushanbe to sign 
an agreement with the Tajik National Bank under which the 
Chinese side will provide a USD 10 million loan to enhance the 
agriculture sector in Tajikistan.  According to the Tajik State 
Statistical Committee, China exported nearly USD 70 million in 
goods to Tajikistan in the first six months of this year, up 40% 
from the same period last year.  Tajik exports to China over the 
same period amount to USD 5.5 million. 
 
¶6.  (SBU)  In a new development, Chinese special forces and 
Tajik troops are preparing for the first ever joint 
anti-terrorist exercises according to the Tajik defense 
ministry.  The joint military exercises, are planned for 
 
DUSHANBE 00001718  002.2 OF 002 
 
 
September 21-23 on the Tajik training ground Mumirak, 200 
kilometers (124 miles) southeast of Dushanbe, the ministry's 
spokesman said.  A total of about 500 soldiers will take part, 
including a company of Chinese special forces, the defense 
ministry said.  The Tajiks will supply artillery, air power and 
paratroopers.  The drill will be held as part of the Shanghai 
convention on the fight against terrorism, separatism and 
extremism, in line with this year's plan of military and 
military-technical cooperation of the two states' defense 
agencies. 
 
¶7.  (U)  Centrasia.ru published a testy article describing U.S. 
intentions in Central Asia, entitled "To Decrease the Influence 
of the SCO and the Organization of Agreement for Collective 
Security - this is the priority task for U.S. State Department 
in Central Asia."  The author attempts to discredit U.S. 
engagement, particularly Richard Boucher's statements and 
Ambassador Hoagland's statements in Central Asia as ineffective 
and "adding no value to Central Asia."  The article urges the 
SCO to confront U.S. interests in the region rather than seek 
avenues of cooperation. 
 
¶8.  (SBU)  COMMENT:  Many observers here quietly feel the SCO 
serves Chinese interests in the region and nothing more. 
However, as China continues to lavish attention and money on the 
region, a small and poor country like Tajikistan has much to 
gain as well.  Russia does not appear worried about the SCO 
eroding Moscow's position vis-a-vis China in Central Asia, and 
like China, appears to be championing the use of the SCO for 
economic purposes.  END COMMENT. 
JACOBSON