VZCZCXRO0857
PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ
RUEHPW RUEHROV RUEHVK RUEHYG
DE RUEHAH #0656/01 1431235
ZNR UUUUU ZZH
P 221235Z MAY 08
FM AMEMBASSY ASHGABAT
TO RUEHC/SECSTATE WASHDC PRIORITY 0849
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY
RUCNCIS/CIS COLLECTIVE PRIORITY
RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY
RUEHAK/AMEMBASSY ANKARA PRIORITY 3793
RUEHBJ/AMEMBASSY BEIJING PRIORITY 1611
RUEHKO/AMEMBASSY TOKYO PRIORITY 1478
RUEHIT/AMCONSUL ISTANBUL PRIORITY 2047
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY
RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY
RUEHVEN/USMISSION USOSCE PRIORITY 2537
RUEAIIA/CIA WASHDC PRIORITY
RHEFDIA/DIA WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC PRIORITY

UNCLAS SECTION 01 OF 02 ASHGABAT 000656 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EUR/CARC, EEB 
 
E.O. 12958: N/A 
TAGS: PGOV PREL EPET ETRD RS AJ TX
SUBJECT:  SUCCESS OF TURKMEN PRESIDENT'S VISIT TO 
AZERBAIJAN LIKELY TO ECHO AROUND THE CASPIAN 
 
¶1.  (U)  Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU)  SUMMARY:  President Berdimuhamedov was in Baku May 
19 and 20 for the first visit by a Turkmen president to 
Azerbaijan in 12 years, and appears to have closed the door 
on seven years of sour diplomatic relations between the two 
states.  The visit was focused on signing a number of 
bilateral economic agreements that will play a role in 
solidifying the new relationship, but the highest priority 
topic for discussion was likely bilateral Caspian 
delimitation and development of a strategy to resolve their 
dispute over the Serdar/Kapaz offshore field (septel).  As 
the bilateral relationship improves and develops, the 
surrounding region stands to benefit in the longer term.  The 
visit also demonstrated Berdimuhamedov's intention to improve 
Turkmenistan's relations in the region and standing in the 
world.  END SUMMARY. 
 
NEW RELATIONSHIP FOCUSED ON THE FUTURE 
 
¶3.  (SBU)  Azerbaijani President Aliyev called 
Berdimuhamedov's visit a historic event that successfully 
raised the bilateral relationship to a "qualitatively new 
stage."  In addition to a joint communique, the two 
delegations signed six other documents, including 
intergovernmental agreements on foreign ministry protocols, 
financial nvestment protection, international and roadway 
transportation, and bilateral trade.  One element of the 
transport agreement related to making Azerbaijan a partner 
and beneficiary of the North-South transportation project 
currently underway in Kazakhstan, Turkmenistan and Iran.  The 
two presidents also discussed inter-parliamentary cooperation 
and agreed to continue bilateral border delimitation 
negotiations.  During the visit, President Berdimuhamedov 
also announced that Baku would host a joint conference on 
Turkmen and Azeri oil and gas issues in September 2008. 
 
¶4.  (SBU)  Although Caspian energy issues certainly topped 
the agenda, the two presidents were careful in describing the 
nature of their discussions.  Although they publicly stated 
that they had been in agreement on a number of issues they 
discussed privately, including Caspian delimitation and 
energy security, they still expressed their commitment to the 
development of a Convention on the Legal Status of the 
Caspian Sea, along with the other littoral states.  The 
international transportation agreement that they signed 
reportedly included provisions for facilitating significantly 
increased trans-Caspian transport of international cargo. 
 
PRESS REACTIONS VARIED 
 
¶5.  (SBU)  Western press speculated that the two states would 
focus on resolving issues related to the potential 
construction of a trans-Caspian pipeline, and underscored the 
value of an improved bilateral relationship between 
Azerbaijan, with its developed energy sector and transport 
infrastructure, and Turkmenistan, with its hydrocarbon export 
potential and desire for pipeline diversification.  Russian 
press, on the other hand, speculated with concern that the 
two states would soon resolve their old disputes and move 
closer to a bilateral delimitation agreement that would open 
the door to a trans-Caspian pipeline, leaving Russian energy 
interests out in the cold.  "Kommersant" fretted over Western 
efforts to influence events in the Caspian, and noted U.S. 
government financing of a pipeline feasibility study in 2007 
and the increase in high-level EU delegation visits to both 
states over the past year seeking to diversify European 
energy supplies. 
 
¶6.  (SBU)  Turkmen press provided wide and favorable coverage 
of the president's visit to Baku.  On May 20, a lengthy 
article provided the text of almost every public statement 
the two presidents made during the first day of meetings.  On 
 
ASHGABAT 00000656  002 OF 002 
 
 
May 21, under the headline "Sunny Baku welcomes Gurbanguly 
Berdimuhamedov" were photos of Turkmenistan's president 
during the ceremony at Baku State University where he 
received an honorary doctorate.  Covering the rest of the 
page was another lengthy article that again included all 
public statements and details about Berdimuhamedov's official 
activities in Baku. 
 
¶7.  (SBU)  COMMENT:  On a public diplomatic level, the visit 
solidified the rapidly-warming relationship that Turkmenistan 
and Azerbaijan apparently want.  On a commercial level, both 
states understand that the speedy resolution of old disputes 
will clear the way for developing a multi-vectored, 
mutually-profitable energy, trade and transport relationship 
that would also yield benefits for other states in the region 
in the longer term.  The visit also demonstrated 
Berdimuhamedov's intention to improve Turkmenistan's 
relations in the region and standing in the world.  END 
COMMENT. 
HOAGLAND