Keep Us Strong WikiLeaks logo

Currently released so far... 143912 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Browse by classification

Community resources

courage is contagious

Viewing cable 08TASHKENT1012, UZBEKISTAN: THE MANGO ROAD TO NORTH-SOUTH

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Reference ID Created Released Classification Origin
08TASHKENT1012 2008-08-29 09:18 2011-08-26 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Tashkent
VZCZCXRO1531
RR RUEHLN RUEHVK RUEHYG
DE RUEHNT #1012 2420918
ZNR UUUUU ZZH
R 290918Z AUG 08
FM AMEMBASSY TASHKENT
TO RUEHC/SECSTATE WASHDC 0230
INFO RUCNCIS/CIS COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 1116
RUEHLM/AMEMBASSY COLOMBO 0789
RUEHKA/AMEMBASSY DHAKA 0556
RUEHIL/AMEMBASSY ISLAMABAD 4517
RUEHBUL/AMEMBASSY KABUL 2809
RUEHKT/AMEMBASSY KATHMANDU 0828
RUEHNE/AMEMBASSY NEW DELHI 1467
UNCLAS TASHKENT 001012 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR SCA/CEN AND EB 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ETRD KCOR SOCI UZ
SUBJECT: UZBEKISTAN: THE MANGO ROAD TO NORTH-SOUTH 
INTEGRATION 
 
1. (SBU) Dr. Khalid M. Chaudhry, a Pakastani national who is 
General Director of Classic International, has been a regular 
visitor to the U.S. Embassy in Tashkent for many years.  One 
of the founders of the American Chamber of Commerce branch in 
Tashkent in the 1990s, Dr. Chaudhry is best known at the 
Embassy for bringing fresh mangos to Embassy functions.  In a 
visit on August 12, Dr. Chaudhry gave Charge and Econoff an 
eye opening description of what it takes to thrive as a 
businessman engaged in international trade in Uzbekistan 
today. 
 
2. (SBU) Classic International has been in business for 
fourteen years and has interests in several areas.  One of 
these is the import of fruits, clothing, and shoes overland 
by truck from Pakistan via Afghanistan.  Trucks driven by 
Pakistanis go overland to the river port at Termez, where 
their cargo is sent across the river by ferry to be picked up 
by Uzbek drivers on the other side.  On average it takes 7-8 
days for goods sent from Pakistan to reach market in 
Uzbekistan.  Classic International also runs a chain of 
Konica photo shops in Tashkent, for which all equipment and 
processing chemicals are imported via the same overland route 
from Pakistan.  Finally, Dr. Chaudrhy owns and operates the 
"Salt and Pepper" restaurant in Tashkent. 
 
3. (SBU) Dr. Chaudrhy told us matter of factly what it takes 
to stay in business in Uzbekistan.  He knows whom he needs to 
pay in the police, customs, the health and tax departments, 
and every other Uzbek agency that could have an influence on 
his business operations.  He even knows whom to pay in the 
municipal government to avoid being fined, for example, for 
failing to sweep the leaves in front of his photo shops.  He 
makes the macaroni for his restaurant and told us that 
although the market price for flour is 1200 soum per kilo 
(approximately $1 USD), he can get the government rate of 560 
soum per kilo by paying an additional 200 soum per kilo to 
the right person.  By knowing how the system works, Dr. 
Chaudrhy told us proudly that he has not missed a single day 
of business in fourteen years because of interference by 
Uzbek authorities.  He further told us that he has shied away 
from offers of patronage from highly placed officials because 
he knows that an official who is well placed today could be 
in disfavor tomorrow. 
 
4. (SBU) Dr. Chaudrhy said that to date he has not been 
involved in exports from Uzbekistan, but he is considering 
exporting peanuts and beans to Pakistan next year.  If he 
does, he said it would be much cheaper to export through 
Iran, where hundreds of Uzbek trucks already make the border 
crossing daily.  He told us it would cost $600-$700 USD per 
truckload to hire an Uzbek driver to make the trip.  At 75 
million soum ($56,000 USD), however, a wholesale export 
license is not cheap. 
 
COMMENT 
------- 
 
5. (SBU) A quiet, unassuming Pakistani who has made his home 
with his family in Tashkent since 1994, Dr. Chaudhry provides 
a good example of the type of north-south economic 
integration that the USG hopes to encourage in Central Asia. 
At the same time, he provides a glimpse into the reality of 
day-to-day business operations, a reality that runs directly 
counter to the norms of business dealings in the West.  His 
success and respected position in Tashkent business circles 
demonstrates, however, that anyone contemplating opening a 
business in Uzbekistan has much to learn from him. 
NORLAND