VZCZCXRO5010
OO RUEHTRO
DE RUEHSF #1662/01 3480835
ZNY CCCCC ZZH
O 140835Z DEC 06
FM AMEMBASSY SOFIA
TO RUEHC/SECSTATE WASHDC
INFO RHEHNSC/NSC WASHINGTON DC
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHGB/AMEMBASSY BAGHDAD
REUHTRO/AMEMBASSY TRIPOLI
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEKJCS/JOINT STAFF WASHINGTON DC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFISS/CDR USEUCOM VAIHINGEN GE
RUEAIIA/CIA WASHINGTON DC

C O N F I D E N T I A L SECTION 01 OF 02 SOFIA 001662 
 
SIPDIS 
 
SIPDIS 
 
FOR THE SECRETARY FROM AMBASSADOR BEYRLE 
 
E.O. 12958: DECL: 12/13/2016 
TAGS: PREL EINV EUN MARR MOPS OVIP KPAS SR IZ LY
AF, RS, BU 
SUBJECT: YOUR MEETING WITH BULGARIAN FOREIGN MINISTER 
IVAILO KALFIN ON DECEMBER 19 
 
SOFIA 00001662  001.2 OF 002 
 
 
CLASSIFIED BY: AMBASSADOR JOHN BEYRLE, REASONS 1.4(B) AND (D). 
 
¶1. (C) SUMMARY:  FM KALFIN'S VISIT TO WASHINGTON, A SHORT TWO 
WEEKS BEFORE BULGARIA CELEBRATES ITS FORMAL ACCESSION TO THE 
EU ON JANUARY 1, TOPS OFF AN EXTRAORDINARILY PRODUCTIVE YEAR 
IN THE U.S.-BULGARIAN RELATIONSHIP.  KALFIN AND PRIME 
MINISTER STANISHEV ARE LEADING BULGARIAN PUBLIC OPINION IN 
THE RIGHT DIRECTION ON IRAQ, AFGHANISTAN, OUR JOINT BASING 
AGREEMENT, AND KOSOVO'S FINAL STATUS.  KALFIN ACCOMPANIED THE 
PRIME MINISTER TO MEETINGS WITH PM MALIKI AND PRESIDENT 
TALABANI IN BAGHDAD ON DECEMBER 12: THE BULGARIANS ARE READY 
TO EXTEND THEIR TROOP DEPLOYMENT AT CAMP ASHRAF IN 2007, BUT 
A POLICY-LEVEL REQUEST FROM THE U.S. WILL HELP THE GOVERNMENT 
SELL THE EXTENSION IN PARLIAMENT.  ON AFGHANISTAN, THE 
GOVERNMENT HAS ALREADY STATED ITS READINESS TO INCREASE THE 
NUMBER OF TROOPS IN ISAF, BUT CAVEATS ARE STILL A PROBLEM. 
U.S. TRADE AND INVESTMENT IS APPROACHING THE HIGHER LEVELS 
YOU SET AS A GOAL DURING YOUR APRIL VISIT TO SOFIA: TO 
HIGHLIGHT THIS PUBLICLY, AND YOU AND KALFIN WILL ANNOUNCE 
CONCLUSION OF A LONG-SOUGHT DOUBLE TAXATION TREATY, AND SIGN 
THE FINAL INSTRUMENTS OF THE UPDATED BILATERAL INVESTMENT 
TREATY.  SOFIAS RELATIONS WITH MOSCOW LOOK A BIT LESS ROSY; 
KALFIN WILL DESCRIBE A SCRATCHY ENCOUNTER WITH LAVROV IN 
MOSCOW LAST WEEK, AS BULGARIA CONTINUES HIGH-STAKES TALKS 
WITH GAZPROM OVER A LONG-TERM SUPPLY CONTRACT. PERHAPS THE 
BIGGEST CHALLENGE OF KALFIN'S VISIT IS KEEPING THE FOCUS ON 
THE GOOD NEWS IN U.S.-BULGARIAN RELATIONS, WHICH RISKS BEING 
OVERSHADOWED BY THE EXPECTED DECISION OF A TRIPOLI COURT 
DECEMBER 19 TO RE-SENTENCE THE BULGARIAN NURSES IN LIBYA TO 
DEATH.  END SUMMARY. 
 
¶2. (C) WE SEE FOUR MAIN POLICY OBJECTIVES FOR YOUR MEETING 
WITH KALFIN AND SUBSEQUENT PRESS APPEARANCE: 
 
-- REAFFIRM BULGARIA AS A VALUED ALLY IN IRAQ, AFGHANISTAN 
AND THE WESTERN BALKANS, SYMBOLIZED BY BULGARIAN AND AMERICAN 
SOLDIERS OPERATING SIDE-BY-SIDE IN ALL THREE PLACES; 
 
-- CONFIRM BULGARIAN COMMITMENT TO EXTEND ITS TROOP PRESENCE 
IN IRAQ BEYOND MARCH 2007, AND TO AUGMENT ITS FORCES IN 
AFGHANISTAN WHILE REDUCING CAVEATS AND THINKING PRT; 
 
-- HIGHLIGHT THE SURGE IN U.S. TRADE AND INVESTMENT, AND 
AGREEMENT ON THE TAX AND INVESTMENT TREATIES, AS A NATURAL 
CONSEQUENCE OF BULGARIA'S POLITICAL STABILITY AND CLOSE 
POLITICAL AND SECURITY COOPERATION WITH US; 
 
-- REASSURE KALFIN THAT RELEASE OF THE BULGARIAN NURSES 
REMAINS A TOP PRIORITY OF U.S. POLICY TOWARD LIBYA. 
 
¶3. (C) KALFIN SHARES OUR DESIRE TO KEEP THE PUBLIC FOCUS ON 
OUR CLOSE PARTNERSHIP IN THE WAR AGAINST TERRORISM AND THE 
BURGEONING ECONOMIC RELATIONSHIP.  HE KNOWS THAT THE 
SENTENCING OF THE NURSES IN TRIPOLI IS AN UNAVOIDABLE STEP 
BEFORE THE LIBYAN GOVERNMENT CAN ENGINEER THEIR RELEASE, BUT 
HE WILL BE HARD-PRESSED TO AVOID USING STRONG LANGUAGE FOR 
DOMESTIC CONSUMPTION.  WE WILL WORK WITH THE BULGARIANS (AND 
THE BRITS AND THE EU) TO COORDINATE PUBLIC STATEMENTS AIMED 
AT HASTENING THE RELEASE OF THE NURSES.  OUR CHALLENGE IS TO 
KEEP THE BULGARIANS ON-MESSAGE: THIS REMAINS A HIGHLY 
EMOTIONAL ISSUE FOR THEM. 
 
¶4. (C) ACHIEVING THE FOUR OBJECTIVES OUTLINED ABOVE WILL 
ENSURE THAT THE BULGARIANS (AND WE) CAN PORTRAY THE VISIT AS 
A SUCCESS.  THERE ARE A FEW OTHER ISSUES, THOUGH, THAT WILL 
MAKE FOR INTERESTING DISCUSSION WITH KALFIN: 
 
-- ENERGY / RELATIONS WITH MOSCOW:  DEPENDENCE ON RUSSIA, 
ALREADY OVERWHELMING, IS GROWING: BULGARIA IMPORTS MORE THAN 
85 PERCENT OF ITS OIL AND GAS FROM RUSSIA, AND IS 100 PERCENT 
DEPENDENT ON MOSCOW FOR NUCLEAR FUEL.  BULGARIA RECENTLY 
SIGNED A FOUR BILLION EURO CONTRACT WITH RUSSIA TO BUILD A 
NEW NUCLEAR POWER PLANT ON THE DANUBE, A DEAL THE BULGARIANS 
HOPED WOULD SWEETEN THE TERMS OF THE LONG-TERM GAS SUPPLY 
CONTRACT THEY ARE CURRENTLY NEGOTIATING WITH GAZPROM.  THESE 
ARRANGEMENTS, FROM WHICH SOME IN THE GOVERNMENT (BUT NOT 
KALFIN) STAND TO BENEFIT ENORMOUSLY, SEEM TO BE EARNING 
BULGARIA LITTLE POLITICAL GOOD WILL IN MOSCOW.  KALFIN TOLD 
 
SOFIA 00001662  002.2 OF 002 
 
 
US HIS DECEMBER 8 MEETINGS WITH LAVROV AND OTHERS WERE TESTY, 
MARKED BY RUSSIAN ARM-TWISTING OVER BULGARIA'S EU ACCESSION, 
AND EFFORTS TO GAIN A VETO OVER BULGARIAN ARMS EXPORTS TO 
GEORGIA.  KALFIN HAD ARRIVED HOPING TO SCHEDULE A MOSCOW 
VISIT BY PM STANISHEV THIS SPRING, BUT THAT IS NOW BACK ON 
THE SHELF. 
 
-- SERBIA/KOSOVO: KALFIN HAS BEEN A STRONG SUPPORTER OF OUR 
APPROACH ON KOSOVO, BUT THE BULGARIANS NEED TO REDOUBLE THEIR 
OUTREACH TO SERBIA IN THE RUN-UP TO THE FINAL STATUS 
DECISION.  AS A MODEL FOR EURO-ATLANTIC INTEGRATION DRIVEN BY 
HARD POLICY CHOICES, BULGARIA IS A CLEAR SUCCESS STORY TO 
EMULATE.  AND AS A COUNTRY WITH CULTURAL/LINGUISTIC LINKS TO 
THE SERBS, BULGARIA HAS UNUSUAL ACCESS TO SERBIAN CIVIL 
SOCIETY THOUGH ITS MANY NGOS. 
 
-- PROPERTY RESTITUTION:  BULGARIA HAS RESTITUTED NEARLY ALL 
OF THE PROPERTY OWNED BY ITS PRE-WAR JEWISH COMMUNITY, BUT 
KALFIN NEEDS TO HEAR THAT THE HANDFUL OF REMAINING CASES NEED 
TO BE RESOLVED PROMPTLY.  IN THE MOST EGREGIOUS EXAMPLE, THE 
BULGARIAN MINISTRY OF HEALTH IS VIOLATING A SERIES OF COURT 
DECISIONS IN THE JEWISH COMMUNITY'S FAVOR BY NOT RETURNING A 
HOSPITAL PROPERTY IN SOFIA. 
 
-- CRIME AND CORRUPTION:  KALFIN SHOULD ALSO HEAR (PERHAPS IN 
THE CONTEXT OF CONGRATULATIONS ON BULGARIA'S EU MEMBERSHIP) 
THAT MUCH REMAINS TO BE DONE IN THE FIGHT AGAINST CORRUPTION 
AND ORGANIZED CRIME.  OUR MESSAGE IS SIMPLE: LOCK UP 
ORGANIZED CRIME BOSSES AND ROOT OUT CORRUPTION FROM THE 
POLITICAL AND JUDICIAL SYSTEMS.  TO SUCCEED, THE GOVERNMENT 
WILL HAVE TO TAKE ON POWERFUL SPECIAL INTERESTS, MANY WITH A 
RUSSIAN CONNECTION; WITHOUT PROGRESS, BULGARIA WILL STAY ON 
THE MARGINS OF THE TRANS-ATLANTIC TRADE AND INVESTMENT 
RELATIONSHIP. 
 
¶5.  FINALLY, HIGH-LEVEL VISITS:  KALFIN WILL LOBBY FOR A PM 
STANISHEV VISIT TO WASHINGTON AND OVAL OFFICE MEETING IN 
¶2007.  WE NEED TO TRY TO MAKE THIS HAPPEN:  STANISHEV AND 
KALFIN REPRESENT THE WESTWARD-LOOKING, UNCORRUPTED GENERATION 
OF BULGARIAN POLITICIANS WHO WE WANT TO CONTINUE RUNNING THIS 
COUNTRY FOR AS LONG AS POSSIBLE.  WE SHOULDN'T MISS ANY 
CHANCE TO GIVE THEM A BOOST --ESPECIALLY WITH MOSCOW'S 
BULLYING TACTICS STARTING TO ANNOY THE GOVERNMENT.  KALFIN 
WILL ALSO RENEW PRESIDENT PARVANOVS INVITATION FOR PRESIDENT 
BUSH TO VISIT SOFIA.  THE TIMING FOR THIS IS ALSO RIGHT, AS 
BULGARIA RE-UPS IN BOTH IRAQ AND AFGHANISTAN. 
BEYRLE