VZCZCXRO1522
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #1345/01 3480407
ZNR UUUUU ZZH
P 140407Z DEC 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 9865
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 3095
RUEHBJ/AMEMBASSY BEIJING PRIORITY 0910
RUEHKO/AMEMBASSY TOKYO PRIORITY 0784
RUEHIT/AMCONSUL ISTANBUL PRIORITY 1360
RUEHBS/USEU BRUSSELS PRIORITY
RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUEHNO/USMISSION USNATO PRIORITY 1322
RUEAIIA/CIA WASHDC PRIORITY
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RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 ASHGABAT 001345 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON ETRD TU TX
SUBJECT: TURKISH PRESIDENT GUL WOOS TURKMEN LEADERSHIP ON 
FURTHER ECONOMIC COOPERATION 
 
REF: ANKARA 2921 
 
¶1.  (U)  Sensitive but unclassified.  Not for public internet. 
 
¶2.  (SBU)  SUMMARY:  The government of Turkmenistan hosted a 
highly-politicized December 6-8 official visit by Turkish 
President Abdullah Gul, who is the first Turkish president to 
visit here in seven years.  President Gul arrived with his 
ministers of State, Energy and Trade, and a cadre of Turkish 
business representatives.  He met with President 
Berdimuhamedov, participated in a bilateral business forum, 
and inaugurated a new power plant in Dashoguz. The primary 
focus of the visit was to strengthen and expand the economic 
relationship, with energy as a centerpiece, but overall,it 
was obvious that each side had something to sell, and took 
the opportunity to advertise.  END SUMMARY. 
 
¶3.  (U)  On December 6, the two presidents met alone.  Local 
and Turkish press indicated that energy was a dominant theme. 
 Gul reportedly proposed the construction of a 16 bcm per 
year pipeline from Turkmenistan through Iran to Turkey 
(reftel), as well as a joint venture to engage in oil and gas 
field operations here.  Based on a suggestion made by 
Berdimuhamedov a while back, the two presidents also signed 
an intergovernmental agreement on creating a joint economic 
commission to further enhance the business partnership 
between the countries.  During the visit, the Turkmen 
government also took the opportunity to pressure Turkish 
business leaders to "take an active part" in making 
Berdimuhamedov's Avaza Caspian free tourism zone project a 
reality. 
 
¶4.  (SBU)  During a press conference, Berdimuhamedov noted 
with satisfaction that trade volume between the two countries 
was a respectable 1.12 billion dollars in the first ten 
months of 2007.  He also mentioned that about one third of 
the foreign companies registered to operate in Turkmenistan 
are Turkish, numbering more than 400.  (NOTE:  Many Turkish 
companies have been operating here for some time and have 
learned how to manage--and probably even to benefit from--the 
corruption and bureaucratic complexities of doing business 
here. END NOTE.)  The same day, Gul spotlighted one Turkish 
construction company, ERKU, when he officiated at the opening 
ceremony of the new Turkish diplomatic staff residence. 
According to local reports, the company doubled its work 
force at the former hotel site in Berzengi in order to finish 
the work before Gul's visit. 
 
¶5.  (U)  On December 7, the two presidents traveled to 
Dashoguz and cut the ribbon on a new 120 million dollar power 
plant, which was built by Chalik Energy Group and equipped 
with two General Electric gas turbine generators.  The plant 
is expected to produce 1.5 million kilowatt hours of energy 
per year, the majority of which should be available for 
export, according to local press.  At the request of the 
Turkish president, they also visited Konye Urgench, a UNESCO 
world heritage site, and said prayers together in the 
Najmeddin Kubra Mausoleum holy site.  They then sat down 
together for a sacrificial meal.  President Gul mentioned 
that the government of Turkey would soon build a mosque in 
Dashoguz, similar to the impressive Blue Mosque replica the 
Turkish government built in Ashgabat years before. 
 
¶6.  (SBU)  COMMENT:  It is no secret that the Turkish 
business community is a force to be reckoned with here, given 
its dominant role in construction projects all over the 
country, and the Turkish government has been angling for some 
time for this visit.  During Gul's stay, the government of 
Turkmenistan showed that it wants to expand the role of 
Turkish commercial activity, but what is less clear is 
whether government entities enjoy a partnership that advances 
national socio-economic development, or one that benefits a 
very few in the government hierarchy.  Given Turkey's 
 
ASHGABAT 00001345  002 OF 002 
 
 
surprise proposal to build a big new mosque in Dashoguz, 
Turkmenistan appears, for now, to be getting what it wants 
from the relationship.  Likewise, significant Turkish 
commitment to projects in Avaza, in which other international 
businesses are hesitating to participate, would be a sign 
that Turkey wants to continue this mutually beneficial 
economic relationship on a rising scale.  END COMMENT. 
 
CURRAN