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O 251058Z NOV 08
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UNCLAS SECTION 01 OF 02 ASTANA 002346 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, EEB/ESC, SCA/PPD, EUR/CARC, DRL 
STATE PLEASE PASS TO USTDA DAN STEIN 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PARM ECON EFIN EINV SOCI KNNP KDEM KPAO
KZ 
SUBJECT:  KAZAKHSTAN:  PRESIDENTIAL ADMINISTRATION HEAD MUSIN 
DISCUSSES GOALS FOR OSCE CHAIRMANSHIP, MADRID COMMITMENTS 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  On November 24, the Ambassador met Aslan Musin, 
Head of the Presidential Administration, to discuss Kazakhstan's 
broad goals as Chairman-in-Office of the OSCE and the package of 
legislative amendments currently being reviewed by parliament. 
Other participants included Yerzhan Kazykhanov, Foreign Policy 
Advisor to the President, Murat Smagulov, U.S. Foreign Policy 
Analyst with the Presidential Administration's Foreign Policy 
Center, and Talgat Kaliyev, Director of the Ministry of Foreign 
Affairs' Department of the Americas.  Musin said the government 
would be willing to share final drafts of amendments to legislation 
on political parties, election reform, and the media with the OSCE 
Advisory Commission, but it was unclear whether or not the 
government would allow the OSCE to review the documents before 
President Nazarbayev signs them into law.  Musin acknowledged that 
there was no funding in this year's budget to contribute to the cost 
of transporting and storing spent nuclear fuel from the BN-350 
breeder reactor, but he called this a high priority for the 
government and expects funds to be available in next year's budget. 
Overall, Musin stressed that Kazakhstan has always had a "dynamic, 
positive" bilateral relationship with the United States, but he 
pointedly requested U.S. government support for Kazakhstan's OSCE 
Chairmanship, assistance with WTO accession, and removal of 
Jackson-Vanik restrictions, which he labeled an "unnecessary 
anachronism."  END SUMMARY. 
 
CONGRATULATIONS ON THE U.S. PRESIDENTIAL ELECTIONS 
 
¶3.  (SBU) Throughout his formal yet cordial meeting with the 
Ambassador, Musin impressed one as a thoughtful observer and careful 
listener.  His comments on the U.S. presidential election and global 
financial crisis were particularly noteworthy.  He sincerely 
congratulated the Ambassador on the November 4 elections, saying, 
"the whole world was watching this dramatic campaign in the leading 
country of the world."  Although Musin noted that Kazakhstan is a 
relatively young republic compared to the United States, he said 
with discernable pride that his country has accomplished a great 
deal during the past 17 years in the areas of social, economic, and 
political development. 
 
A CRISIS UNLIKE ANYTHING EVER EXPERIENCED 
 
¶4. (SBU) Turning to the global financial crisis, Musin said that the 
Kazakhstani people "have never experienced anything like this 
before."  He noted that the mentality and the memories of people in 
Kazakhstan are still strongly linked to their Soviet past.  Although 
he acknowledged that times were tough under socialism, he said this 
is the first sustained economic crisis Kazakhstan has experienced as 
a capitalist country.  Musin noted that Kazakhstan first felt 
financial tremors in August 2007, when the domestic banking sector 
overextended its external borrowing, and suggested that this 
experience helped prepare the country for the current crisis.  "We 
had time to prepare and take action," he said.  Musin was hopeful 
that Kazakhstan's quick and forceful response to the current 
financial crisis would prove effective, but he noted that the 
government of Kazakhstan alone could not manage the global crisis. 
"The solution must come from the place where the crisis started - in 
the United States."  According to Musin, the lesson of the current 
crisis is that a free and open market cannot solve all possible 
problems.  "The economy still needs the government's direction and 
involvement," he said. 
 
GOALS FOR THE OSCE CHAIRMANSHIP 
 
¶5.  (SBU) When asked to define Kazakhstan's goals when it assumes 
the Chairman-in-Office of the OSCE in 2010, Musin said first how 
proud he and all Kazakhstanis are that they were awarded this honor, 
calling it a milestone event for the new nation.  Musin said 
Kazakhstan hoped to "show the world" that the country has met 
 
ASTANA 00002346  002 OF 002 
 
 
international standards and is willing and able to join -- and even 
lead -- important international organizations like the OSCE.  He 
also said that Kazakhstan's chairmanship would introduce a new voice 
to the world stage and implied that Western countries could learn 
from the experience of Kazakhstan, an emerging, developing country 
that has deftly transformed its economy and society and is 
well-adapted to a rapidly changing world. 
 
¶6.  (SBU) Musin said that on November 24, parliament began 
discussing a package of legislative amendments submitted by the 
government to meet Kazakhstan's OSCE Madrid commitments, including 
proposed changes to laws governing political party registration, 
election procedures, religion, and the media.  He acknowledged that 
it is "maybe a little uncomfortable" that there is just one party 
currently represented in parliament, but attributed that to a 
procedural flaw that the new legislation would address.  When asked 
if the government would allow the OSCE's Advisory Commission to 
review the final amendments before President Nazarbayev signs them 
into law, Musin was non-committal, although he did say that, "if the 
OSCE thinks it is critical to issue an opinion, we will hear them 
out." 
 
FUNDING "WILL BE FOUND" FOR SAFE STORAGE OF SPENT NUCLEAR FUEL 
 
¶7.  (SBU) When asked how the economic crisis has affected 
Kazakhstan's budget planning -- particularly funding for the 
transportation and storage of spent fuel from the BN-350 breeder 
reactor -- Musin acknowledged that the government unfortunately 
could not find the funds in this year's budget to cover its share of 
the costs of the program.  He did, however, say that this is a high 
priority for the government and he has high hopes that funds will be 
available in next year's budget.  "We will absolutely revisit this 
question," he said, adding, "I am certain this crisis will be 
solved.  It is, after all, in our own national interest." 
 
¶8.  (SBU) Before adjourning, the Ambassador noted that he would soon 
travel to Washington for consultations and asked Musin if there was 
a message he wished to convey.  Musin did not hesitate.  He noted 
that Kazakhstan has always had "dynamic, positive" bilateral 
relations with the United States and said there are no current 
disagreements or misunderstandings between the two countries. 
However, he said, we need your help with three things.  In quick 
succession, he asked for U.S. government support for Kazakhstan's 
accession to the World Trade Organization, the elimination of the 
Jackson-Vanik requirements, which he dismissed as an "unnecessary 
anachronism," and onigoing support to Kazakhstan as it prepares to 
assume the role of Chairman-in-Office of the OSCE. 
 
HOAGLAND