VZCZCXRO9203
RR RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #1391/01 3600337
ZNR UUUUU ZZH
R 260337Z DEC 07
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC 9930
INFO RUCNCIS/CIS COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHVEN/USMISSION USOSCE 2028
RUEHAK/AMEMBASSY ANKARA 3146
RUEHBJ/AMEMBASSY BEIJING 0961
RUEHKO/AMEMBASSY TOKYO 0835
RUEHIT/AMCONSUL ISTANBUL 1409
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RHEHNSC/NSC WASHDC
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 02 ASHGABAT 001391 
 
SIPDIS 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR SCA/CEN, EUR/ACE 
AID/W FOR EE/AA 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EAID ECON TX
SUBJECT:  TURKMENISTAN:  MFA WELCOMES USAID PROPOSAL FOR NEW 
"COOPERATION AGREEMENT" 
 
REF: A) ASHGABAT 1282 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  As part of his initial visit to Turkmenistan, 
USAID/CAR Regional Mission Director Bill Frej met with First Deputy 
Minister of Foreign Affairs Vepa Hajiyev on December 13 to discuss 
potential opportunities to expand USAID's engagement in 
Turkmenistan.  In a warm and cordial conversation, Hajiyev expressed 
a willingness to promote bilateral cooperation, including in the 
education and economic sectors, and pledged that the Ministry would 
put its best efforts forward to this end.  Recognizing that the 1993 
bilateral agreement was now 14 years old, Hajiyev welcomed Frej's 
proposal to discuss a new "cooperation agreement" that could help to 
normalize assistance activities in Turkmenistan.  Once concluded, 
such an agreement could streamline the process for new USAID 
implementers to begin working in Turkmenistan and reduce existing 
partners' lingering operational barriers.  Concluding a new 
bilateral assistance agreement could take much longer than we would 
like because while Turkmenistan's spirit may well be willing, its 
bureaucratic body is still sclerotic.  END SUMMARY. 
 
WELL-BRIEFED HAJIYEV READY TO TALK ABOUT 2008 OPPORTUNITIES 
 
¶3.  (U) On December 13, USAID/CAR Regional Mission Director Bill 
Frej and Embassy officers met with First Deputy Minister of Foreign 
Affairs Vepa Hajiyev.  Recognizing the potential relevance of Frej's 
past experience in Indonesia due to the common religious and 
cultural heritage, Hajyev said that this could help him lead USAID 
to success in Turkmenistan.  Hajiyev acknowledged that USAID's 
cooperation with Turkmenistan in 2007 had become "more active and 
engaged," and said that its targeted programs in health, education, 
and economic sectors had provided "substantial support" for the 
reforms carried out by President Berdimuhamedov. 
 
¶4.  (U) Noting that Institute for Democracy and Human Rights' 
Director Shirin Ahmedova recently told DRL Deputy Assistant 
Secretary Erica Barks-Ruggles that she had submitted her positive 
 
SIPDIS 
recommendation to the Ministry of Foreign Affairs for new 
cooperation with USAID, Frej asked when USAID might expect to 
receive a reply.  Hajiyev said the next step was to discuss 
implementation questions in follow-up meetings.  He added that the 
proposal was in line with the Institute's priorities and reflected 
the current situation. 
 
EDUCATION COOPERATION:  "AVOID COMET FROM DIFFERENT GALAXY" 
 
¶5.  (SBU) Hajiyev asked for specific areas of interest for new 
programs in 2008.  Frej responded that USAID planned to discuss its 
proposal on a new education program with Deputy Prime Minster 
Saparliyev later that day.  Acknowledging the past difficulties 
working with the Ministry of Education, Frej asked for advice to 
work in this sector of common interest.  Hajiyev said USAID's 
previous education program (NOTE: This program, known as PEAKS, 
concluded in November 2007. END NOTE.) was based on different 
realities that were not matched to the needs of Turkmenistan. 
Before approving a new program, he promised it would be reviewed to 
see how it could be gradually introduced.  In any event, USAID 
should avoid programs that are "like a comet from a different 
galaxy".  (COMMENT: The PEAKS' program's interactive teaching 
methodologies were adapted to cultural context, translated into 
Turkmen, and embraced by participants starved for access to new 
pedagogical materials.  Post believes that other factors, including 
obstructive ministry personnel, played a larger role in PEAKS' 
failure to gain acceptance.  END COMMENT.) 
 
¶6.  (U) Hajiyev asked if the new program was the same as the 
previous program.  USAID's Turkmenistan Country Representative 
clarified that while some activities, such as teacher retraining, 
would build on the past program's results, other activities like 
management training modules for school directors were new.  Since 
both of these areas had been highlighted by President Berdimuhamedov 
 
ASHGABAT 00001391  002 OF 002 
 
 
shortly after taking office, these areas had been selected based on 
stated government priorities.  Based on this, Hajiyev promised to 
discuss the proposal with the Deputy Minister of Education in the 
next weekly "Deputies Meeting." 
 
WIDER ECONOMIC COOPERATION REMAINS POSSIBLE 
 
¶7.  (U) Frej also inquired about the status of USAID's "Investor 
Roadmap" proposal to the Ministry of Economy and Finance (Reftel A). 
 Hajiyev said the Ministry was undertaking a macro-level inventory 
that would help bring it up to international standards.  Although 
not an economist, he understood that unification of the exchange 
rates was a big step toward opening the economy and improving the 
investment climate.  To this end, he advised that he would follow up 
on USAID's proposal. 
 
"TEST OF OUR EFFORTS IS TO EXPAND RELATIONS" 
 
¶8.  (U) Hajiyev said that the Foreign Ministry now has a "better 
feeling" on cooperation with USAID and would always put its best 
efforts forward.  Calling cooperation the basis for successful 
diplomacy, he said that the test of these efforts would be to expand 
relations.  Frej acknowledged the positive developments in bilateral 
relations over the past year and proposed a new "cooperation 
agreement" to help regularize assistance operations in Turkmenistan. 
 We look forward to a more formal relationship, and USAID is ready 
to take this next step if Turkmenistan agrees. 
 
¶9.  (U) Noting that much has changed since 1993 when the existing 
bilateral agreement was signed, Hajiyev welcomed this "very 
important" suggestion.  He suggested that the U.S. side submit a 
draft agreement.  Although he recognized negotiations could take a 
long time, he said that a streamlined process to expedite 
consultations would be helpful. 
 
¶10.  (SBU) COMMENT:  This was a productive initial meeting that went 
far beyond the intended introductory courtesy call.  Hajiyev was 
well-briefed for the meeting and prepared to discuss specific 
opportunities for new cooperation.  Frej's proposal to develop a new 
"cooperation agreement" could help to normalize assistance 
activities in Turkmenistan and have lasting impact by streamlining 
the process for new USAID implementers to begin working in 
Turkmenistan and reducing existing partners' lingering operational 
barriers. 
 
¶11.  (SBU) COMMENT CONTINUED:  Deputy Foreign Minister Hajiyev is 
gaining a higher substantive profile since Foreign Minister Meredov 
is spending more and more time in the Presidential Apparat and is 
increasingly harder for visitors to see.  We judge that this meeting 
with Hajiyev is another positive step on the generally upward 
trajectory of our new bilateral relationship.  Hajiyev's warning 
that negotiating a new bilateral assistance agreement could take a 
long time is reality.  Embassy Ashgabat has other draft agreements 
that have already been stuck in the Turkmenistan bureauracry for six 
months without any response.  While Turkmenistan's spirit may well 
be willing, its bureaucratic body is still sclerotic.  END COMMENT. 
 
HOAGLAND