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OO RUEHAG RUEHAST RUEHBI RUEHCI RUEHDBU RUEHDF RUEHIK RUEHLH RUEHLN
RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #0866/01 2350626
ZNR UUUUU ZZH
O 230626Z AUG 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9222
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHAK/AMEMBASSY ANKARA 2673
RUEHBJ/AMEMBASSY BEIJING 0500
RUEHKO/AMEMBASSY TOKYO 0370
RHEHNSC/NSC WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHEFDIA/DIA WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEAIIA/CIA WASHDC

UNCLAS SECTION 01 OF 03 ASHGABAT 000866 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EUR/ACE, EEB, ECA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON EPET SNAR SCUL IR TX
SUBJECT: TURKMENISTAN:  BERDIMUHAMEDOV SAYS HE WANTS U.S. 
ECONOMIC MODEL, MORE EXCHANGES 
 
 
 ¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  During his meeting with EEB A/S Sullivan, 
President Berdimuhamedov 
 
-- expressed thanks to Secretary Rice for her attention to 
Turkmenistan and the region, particularly regarding her 
vision of Central/South Asia economic integration and a &new 
Silk Road;8 
 
-- repeatedly expressed his keen interest in finding concrete 
ways to develop the U.S. economic model in Turkmenistan; 
 
-- vowed new attention to and openness about Turkmenistan's 
narcotics problem; 
 
-- accepted Energy Secretary Bodman's invitation for 
Turkmenistan senior gas and oil officials to travel to 
Washington and Houston at the end of September; 
 
-- recognized the importance of diversifying energy export 
routes, specifically mentioning the Western Caspian route; and 
 
-- made a plea for more educational and professional 
exchanges. 
 
A/S Sullivan highlighted the need for 
 
-- regional integration, or a &new Silk Road;8 
 
-- broader economic cooperation, including an improvement in 
the investment climate; 
 
-- energy sector cooperation, including trans-Caspian export 
options; and 
 
-- undertaking economic reforms in order to spread prosperity 
within Turkmenistan and integrate with the global economy. 
 
We were struck by Berdimuhamedov's repeated insistence he 
wants to learn from the American experience, especially 
focusing on new economic models for Turkmenistan and call for 
expanded exchange programs.  It is significant he met with 
Sullivan on the same day Iranian President Ahmedinejad 
arrived for a two-day visit and that the Sullivan visit 
received about the same amount of coverage in state-run print 
and TV as did the Ahmedinejad visit.  END SUMMARY. 
 
¶3.  (SBU) EEB Assistant Secretary Daniel Sullivan met with 
President Gurbanguly Berdimuhamedov for 75 minutes on August 
¶14.  Charge, EEB Rob Garverick, and Department of Energy 
Tyler Tiller accompanied Sullivan, while First Deputy of the 
Cabinet of Ministers and Foreign Minister Rashit Meredov and 
Deputy of the Cabinet of Ministers for Oil and Gas Tachberdi 
Tagiyev sat with the president. 
 
¶4.  (SBU) Berdimuhamedov agreed with Sullivan that the 
opening ceremony of the U.S.- and UN-funded border crossing 
station at Imamnazar between Turkmenistan and Afghanistan the 
previous day had been an excellent event and an important 
symbol for increasing regional economic integration.  He 
thanked Sullivan for his participation (septel), and noted 
our common goals and mutual cooperation.  The president 
expressed his commitment to upgrading Turkmenistan's border 
security, while building good relations with contiguous 
neighbors.  He named narcotics as the most important 
border-security issue of the moment.  He said, "I won't hide 
any information.  This is a very serious problem for us." 
 
¶5.  (SBU) Sullivan briefly reviewed the expansion of our 
commitment and cooperation with Turkmenistan, noting 
Secretary Rice had written to Berdimuhamedov that we are 
 
SIPDIS 
interested in "turning the page."  He expanded on Secretary 
Rice's regional integration initiative, and previewed for the 
president the speech he delivered later in the day on 
Turkmenistan and its emerging economic opportunities. 
 
ASHGABAT 00000866  002 OF 003 
 
 
Regarding economic reform, the Assistant Secretary said that 
it is far better to undertake the process during an economic 
expansion rather than wait for a crisis to force actions. 
A/S Sullivan noted Turkmenistan,s problematic dual exchange 
rates and uncertain investment climate, and cited WTO as a 
worthy long term goal.  Sullivan recounted that a journalist 
covering the Imamnazar event had asked if deepening economic 
and commercial cooperation with the United States compromises 
Turkmenistan's policy of neutrality.  Sullivan answered, 
"This kind of cooperation, trading in all directions, and 
supplying energy to several buyers enhances Turkmenistan's 
neutrality, which we firmly support." 
 
"WE WANT TO WORK WITH YOU ON NEW ECONOMIC MODELS" 
 
¶6.  (SBU) Berdimuhamedov asked Sullivan to convey his thanks 
to Secretary Rice for her attention to Turkmenistan regional 
integration, and the region's important issues.  He said his 
government had had "much (internal) discussion" about 
cooperation with the United States, and he was pleased it was 
now moving forward in all areas. 
 
¶7.  (SBU) Berdimuhamedov said, "I want to make clear we are 
paying special attention to diversification of hydrocarbon 
exports.  We are open to discuss all issues.  We have never 
rejected the concept of a Trans-Caspian Pipeline.  We want 
your (U.S.) companies involved.  We want specific projects to 
be successful." Sullivan underscored the importance of 
diversification, particularly the Caspian route, noting it 
was not in Turkmenistan,s interest to sell gas to only one 
or two buyers.  He also emphasized that, consistent with 
Turkmenistan,s neutrality policy, U.S. companies should be 
given opportunities, both in the offshore and onshore sectors 
of Turkmenistan energy development. 
 
¶8.  (SBU) Berdimuhamedov expressed thanks for visits by SCA 
Assistant Secretary Boucher, PDAS Mann, and DAS Feigenbaum. 
Their discussions with him had clarified issues, and he was 
in essential agreement with their views.  Then he lamented, 
"So far, our energy dialog is theoretical, with nothing 
concrete.  Life is going on; time is flying.8  The President 
renewed his call for the U.S. to make &concrete proposals.8 
 
¶9.  (SBU) The president elaborated, "We want to work with you 
on new economic models -- certainly in energy, but more 
broadly in the economy.  We are very keen to develop all 
sectors of the economy, including textiles, to increase our 
GDP for the benefit of the people."  He stated clearly, "We 
are truly eager to learn new economic models of development. 
We need your expertise because, frankly, we're interested in 
your model.  We need a plan of action to implement it.  Thank 
God there are no current crises so we can look outward and do 
new things." 
 
¶10.  (SBU) Gesturing toward Meredov, Berdimuhamedov said, "My 
foreign minister advised me to start with political reform, 
but I told him economics is more important.  Economics has to 
come first.  Militarily, we are of course a neutral state. 
But economically, we want the 'American School' model." 
 
¶11.  (SBU) Sullivan responded we would be pleased to work 
closely with Turkmenistan on the economic model that has made 
the United States so successful and prosperous, suggesting an 
exchange of economic experts to share information.  He 
advocated diversifying the economy, suggested focusing on 
civil aviation and telecommunications which would also help 
spur regional integration, and pushed for improving the 
investment climate -- all essential for large-scale foreign 
investment.  He explained the U.S. government cannot tell 
private companies where to invest, but we can help 
Turkmenistan create the conditions to attract their 
investment.  Turning to the energy sector, A/S Sullivan said 
that U.S. private companies want to invest in Turkmenistan 
and can bring world-clas capital, technology and training. He 
underscored that American companies have a strong track 
record in terms of training locals and benefiting 
 
ASHGABAT 00000866  003 OF 003 
 
 
economically more broadly. Berdimuhamedov replied, "We are 
fine working with private companies as long as it's mutually 
beneficial." 
 
ENERGY DELEGATION TO UNITED STATES APPROVED 
 
¶12.  (SBU) Sullivan told Berdimuhamedov we are keenly aware 
he wants "concrete action."  One concrete step that would 
"move us from theory to action" would be to accept Secretary 
of Energy Bodman's invitation for senior Turkmen gas and oil 
officials to travel to Washington and Houston by the end of 
September.  Their visit would include work on economic 
models.  Berdimuhamedov accepted on the spot, saying, "Our 
delegation, led by the Deputy of the Cabinet of Ministers 
Tagiyev, will go by the end of September.  (COMMENT:  The 
ever-scowling Tagiyev remained impassive, but Foreign 
Minister Meredov shot the Charge a quick glance.  Clearly, 
Meredov had greased the skids for this decision.  END 
COMMENT.) 
 
"WE WANT MORE EXCHANGE PROGRAMS" 
 
¶13.  (SBU) Before closing, Berdimuhamedov made a pitch for 
more educational and professional exchange programs.  He 
said, "This is really important for us.  We want to have U.S. 
experience and knowledge."  (COMMENT:  We will pocket this 
statement to work with Foreign Minister Meredov to storm the 
ramparts of the Ministry of Education where a good number of 
our exchange and education programs is held up.  END COMMENT.) 
 
COMMENT 
 
¶14.  (SBU) We were struck by Berdimuhamedov's repeated 
insistence he wants to learn from the American experience, 
especially focusing on new economic models for Turkmenistan. 
This window of opportunity probably will not stay open 
indefinitely.  We need to identify what we can do and move 
swiftly to implement concrete cooperation.  We will report 
separately our recommendations. 
 
¶15.  (SBU) COMMENT CONTINUED:  It is significant President 
Berdimuhamedov met with the Sullivan delegation on the same 
day Iranian President Ahmedinejad had arrived for a two-day 
visit.  Although the Iranian state visit was the lead story 
in the government newspapers, the Sullivan visit received 
just about equal high-profile coverage in print and on 
television.  END COMMENT. 
 
¶16.  (U) A/S Sullivan cleared this cable. 
 
HOAGLAND