VZCZCXRO6951
RR RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #0861/01 2341142
ZNR UUUUU ZZH
R 221142Z AUG 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 9212
INFO RUCNCIS/CIS COLLECTIVE
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0490
RUEHKO/AMEMBASSY TOKYO 0360
RUEHAK/AMEMBASSY ANKARA 2663
RHEBAAA/DEPT OF ENERGY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHINGTON DC//DHO-2/REA/NMJIC-J2//
RHEHNSC/NSC WASHDC
RUEKJCS/JOINT STAFF WASHINGTON DC//J5/RUE//
RUEKJCS/SECDEF WASHINGTON DC

UNCLAS SECTION 01 OF 02 ASHGABAT 000861 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR SCA/CEN, SCA/A, EUR/ACE, EEB 
 
E.O. 12958: N/A 
TAGS: PREL PHUM ECON EAID ENRG TX
SUBJECT:  FM MEREDOV:  TURKMENISTAN WANTS BROADEST POSSIBLE 
COOPERATION WITH UNITED STATES 
 
REF: ASHGABT 810 
 
¶1.  (U) Sensitive but unclassified.  Not for public internet. 
 
 
¶2.  (SBU) SUMMARY: In a positive meeting with EEB Assistant 
Secretary Daniel Sullivan, Foreign Minister Rashit Meredov said 
 
SIPDIS 
Turkmenistan wanted concrete cooperation with the United States on 
the widest possible range of issues.  He welcomed the visit of the 
Helsinki commission and USCIRF delegations and said that cooperation 
should extend beyond discussions to actions. He said the 
Turkmenistan government wanted to formulate a joint plan on 
cooperation and pointed to the 12-month plan on oil and gas issues 
put together by the Department of Energy.  Responding to A/S 
Sullivan's pitch for enhanced regional integration, further outreach 
to Azerbaijan, and expansion of the non-energy economy,  Meredov 
said his country would welcome investment from more American 
companies and realized Turkmenistan would have to amend and draft 
new legislation to improve the investment climate.  The Foreign 
Minister said he looked forward to visiting the United States this 
fall.  Neutrality appears to be the banner behind which Turkmenistan 
is able to cooperate with a wide range of partners, including the 
United States; A/S Sullivan noted that this policy lends itself to 
trade in multiple directions with regard to energy, exports, routes, 
and investments, as well as non-energy trade and investment.  END 
SUMMARY. 
 
DESIRE FOR WIDE-RANGING COOPERATION 
 
¶3. (SBU) During a positive and productive meeting on August 14, 
Foreign Minister Rashit Meredov told EEB Assistant Secretary Daniel 
Sullivan that cooperation in the U.S.-Turkmenistan bilateral 
relationship is not limited to economic issues.  He stressed that 
there are very constructive projects, beneficial to both countries, 
that can be conducted in every sphere, including democracy and human 
rights.  He said he looked forward to meeting with Helsinki 
Commission and USCIRF delegations and discussing specific areas of 
cooperation.  Meredov said Turkmenistan is open not only to 
dialogue, but also to concrete, practical actions on the widest 
possible range of issues. 
 
¶4. (U) Reiterating an earlier offer to host the next Trade and 
Investment Framework Agreement (TIFA) meeting (reftel), Meredov 
noted economic cooperation remained very important and highlighted 
the TIFA as a model for future collaboration.  He added Turkmenistan 
plans to continue purchasing from U.S. companies, including 
agricultural equipment.  He also said Turkmenistan has a policy to 
buy only Boeing planes, which translated not just into sales for 
that company, but also pilot training, maintenance, and repair 
facilities for Turkmenistan.  He said the Turkmenistan government 
wanted to formulate a joint plan on cooperation and pointed to the 
12-month plan on oil and gas issues put together by the Department 
of Energy.  President Berdimuhamedov's approval for Turkmenistan oil 
and gas officials to visit the United States in September was 
implementing the first phase of that plan. 
 
¶5. (U) Like President Berdimuhamedov, FM Meredov called for 
"concrete practical steps" as a course for action.  He applied this 
to a broad range of economic activity, including textile, telecom, 
and civil aviation, and "not just energy."  Meredov thanked Sullivan 
for his mention of Turkmenistan's neutrality in his press interview 
at the opening of the Imamnazar border crossing the day before 
(septel).  He said neutrality gives Turkmenistan the protection it 
needs for U.S. energy and trade development activities and increases 
the opportunity for cooperation. 
 
IMPROVING INVESTMENT CLIMATE STRENGTHENS NEUTRALITY 
 
¶6. (U) A/S Sullivan underscored that although energy investment and 
Caspian export routes were important, he also wanted to emphasize a 
broad cross-section of economic engagement and not just energy.  The 
United States respects the policy of neutrality and believed that 
 
ASHGABAT 00000861  002 OF 002 
 
 
diversifying partners, buyers, and investors would be a positive 
development for Turkmenistan.  Sullivan noted that having only one 
or two buyers for Turkmen gas was not in Turkmenistan's interest. 
In addition, he said, partnering with American businesses and 
diversifying across sectors would help strengthen Turkmenistan's 
neutral status.  He encouraged Turkmenistan officials to focus on 
U.S. private companies and meet with those businesses' senior 
leaders.  He added that U.S. businesses bring significant benefits 
to the societies where they operate, not just high-level technology 
but also extensive training, and senior management experience which 
can be very important for a country's future economic development. 
 
¶7. (U) Sullivan said trade that is diversified in its approach 
increases the capacity for regional integration and helps 
Turkmenistan become more integrated into the global economy.  A key 
element, he stressed, would be to improve the investment climate, 
address the dual exchange rate, and create the conditions to attract 
international investors.  Sullivan noted the Secretary's strong 
interest in Central Asia and the region's integration with the 
nations of South Asia.  This could be a new "Silk Road," which would 
increase prosperity for all along that corridor.  A/S Sullivan 
identified WTO accession as a worthy long-term goal. 
 
DESIRE TO MINE U.S. EXPERIENCE 
 
¶8. (U) Meredov said his country would welcome investment from more 
American companies and realized that their participation in the 
economy would be positive for Turkmenistan's neutrality.  He said 
Turkmenistan wanted to diversify its economy beyond oil and gas. 
For example, Turkmenistan recognized the U.S. experience in civil 
aviation and telecommunications and wanted a concrete program of 
cooperation in order to benefit from that experience.  Turkmenistan, 
he said, would organize a telecom conference in Ashgabat this fall. 
He added that he had encouraged deputy minister-level officials from 
the MFA, Ministry of Education, Central Bank, Ministry of Justice, 
and Ministry of Economy to attend Sullivan's speech scheduled for 
later that day, because it would be beneficial for them. 
 
¶9. (U) Meredov mentioned the UN has identified several areas where 
the Turkmenistan economy could improve, including the development of 
small and medium-sized businesses, management, issues of 
privatization, and the dual exchange rate. 
 
¶10. (U) Meredov stressed that his country's experience was just 
beginning, but the Turkmen were learning while they try to implement 
the president's order to construct a free trade zone resort on the 
Caspian.  They had already started to pass new laws on visa 
regulations, infrastructure, rental land, hotels, and 
communications.  He said Turkmenistan would invest $1 billion in the 
project and hoped to get the remaining money needed from foreign 
investors.  He said that during the formal presentation of the new 
resort area, 60 businesses were present.  Meredov said this zone 
would not be just a tourist area, but also would have an oil and gas 
refinery complex, housing, and other amenities built over several 
phases. 
 
¶11. (U) COMMENT: Meredov clearly indicated Turkmenistan wants to be 
a partner with the United States and cooperate on a broad range of 
issues, including those such as human rights and religious freedom. 
He emphasized the partnership would go beyond dialogue to actions. 
He also stressed a desire for a concrete joint plan on economic 
cooperation.  While the speed of change will probably still be slow, 
Turkmenistan clearly wants to work with us to head in the right 
direction.  And the banner of neutrality helps it to draw on the 
experience of many different partners, including the United States. 
 
 
¶12. (U) A/S Sullivan has cleared this cable. 
 
HOAGLAND