VZCZCXRO1527
OO RUEHAG RUEHAST RUEHBI RUEHCI RUEHDA RUEHDF RUEHFL RUEHIK RUEHKW
RUEHLA RUEHLH RUEHLN RUEHLZ RUEHNEH RUEHNP RUEHPOD RUEHPW RUEHROV
RUEHSR RUEHVK RUEHYG
DE RUEHTA #2372/01 3331100
ZNR UUUUU ZZH
O 281100Z NOV 08
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 3996
INFO RUCNCLS/SCA COLLECTIVE
RUCNCIS/CIS COLLECTIVE 0872
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RUEHBJ/AMEMBASSY BEIJING 0279
RUEHKO/AMEMBASSY TOKYO 0981
RUEAIIA/CIA WASHDC
RHEFAAA/DIA WASHDC
RHEHNSC/NSC WASHDC 0439
RUEKJCS/SECDEF WASHDC 0354
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEKJCS/JOINT STAFF WASHDC

UNCLAS SECTION 01 OF 02 ASTANA 002372 
 
SIPDIS 
SENSITIVE 
 
STATE FOR SCA/CEN, EEB/ESC 
STATE PLEASE PASS USTDA FOR DAN STEIN 
 
E.O. 12958: N/A 
TAGS: PGOV PREL ECON EFIN KZ
 
SUBJECT:  KAZAKHSTAN:  MFA SEEKS HIGH PROFILE VISIT TO SIGNAL 
CONTINUED U.S. COMMITMENT 
 
¶1.  (U) Sensitive but unclassified.  Not for public Internet. 
 
¶2.  (SBU) SUMMARY:  On November 25, 2008, Econoff met with the Head 
of the Americas Department at the MFA, Talgat Kaliyev, to deliver a 
demarche on the proposed development of a Global Partnership for 
Agriculture and Food (GPAF).  After the demarche and its points were 
discussed, eliciting a generally positive response as to the likely 
participation of Kazakhstan in such a partnership (septel), the 
topic of conversation shifted to the broader U.S.-Kazakhstan 
strategic partnership, Kazakhstan's growing desire for a highly 
visible show of U.S. support, and additional insights on the merger 
of Samruk and Kazyna into a mega-holding company. END SUMMARY. 
 
SAMRUK-KAZYNA TO HOLD KEYS TO THE KINGDOM 
 
¶3.  (SBU) According to Kaliyev, the newly-created Samruk-Kazyna 
National Welfare Fund is the "president's baby," formed to give 
needed muscle to the economic and development policy initiatives of 
the government.  In his words, it was born of the need to achieve 
"concrete results" in an environment dominated by ineffective 
government ministries.  He added that future international business 
partnerships, particularly involving tenders or concessions, would 
need to involve Samruk-Kazyna.  He also shared his concern that 
existing initiatives such as the Public Private Economic 
Partnerships Initiative (PPEPI) run the risk of being buried in the 
bureaucracy of ministries such as the Ministry of Industry and 
Trade.  (NOTE: Kaliyev was our primary conduit in the run up the 
launch of the PPEPI in June 2008. END NOTE).  In his view, involving 
Samruk-Kazyna will be key to moving any economic or business 
development initiative forward. 
 
KAZAKHSTAN SEEKS REASSURANCE OF U.S. COMMITMENT 
 
¶4.  (SBU) Regarding the broader relationship with the United States, 
Kaliyev emphasized that Astana was not entirely convinced of U.S. 
commitment to the "strategic partnership."  Kaliyev said that 
Kazakhstan has long done the bidding of the U.S government -- 
particularly regarding nuclear disarmament, counter-terrorism, and 
participation in Iraq -- and warned of a growing consensus that the 
United States should reciprocate and make a more serious, visible 
commitment to the development of Kazakhstan.  For example, he 
suggested U.S. corporate investment in an industry outside the 
extractive sector and specifically mentioned that the president was 
very interested in cutting-edge technologies, such as power 
generating wind turbines.  He also said that Kazakhstan continues to 
feel that it is being punished by the Jackson-Vanik legislation, and 
the "stalled WTO negotiations" over agriculture and genetically 
modified organisms.  Kaliyev said that the Kazakhstani government 
has been led to believe that WTO accession and the lifting of 
Jackson-Vanik are somehow related, although he admitted, "we do not 
understand the connection." 
 
OBAMA SHOULD VISIT KAZAKHSTAN 
 
¶5.  (SBU) Kaliyev said his opinion of the relationship of Washington 
to Astana had changed since he returned from his assignment as DCM 
at the Embassy of Kazakhstan to the United States.  He feels that, 
given the strategic importance of Kazakhstan, it is time for the 
United States to make a highly-visible commitment to the bilateral 
relationship in the near future.  Kaliyev expressed his support for 
the results of the recent presidential election and his belief that 
"America once again demonstrated its greatness" and specifically 
mentioned Astana's strong desire for a future visit from 
president-elect Obama.  He said that such a public and prominent 
visit would help to solidify Kazakhstan's commitment to the 
strategic partnership.  Nazarbayev, he said, is committed to the 
Path to Europe, and wants very much for Kazakhstan to serve as a 
model for the region -- a place where European ways of thinking 
co-exist peacefully and productively with Central Asian culture and 
tradition. 
 
CRITISISM POSSIBLY LIMITED TO WORKING LEVEL 
 
¶6.  (SBU) COMMENT:  Kaliyev is the Chief of the MFA's Americas 
 
ASTANA 00002372  002 OF 002 
 
 
section (United States, Canada, Cuba, Brazil have resident 
embassies).  His position is roughly equivalent to that of a DAS. 
One can take his statements as reflecting thought within the MFA but 
not necessarily the government as a whole.  On November 26, 
Ambassador Hoagland hosted Kaliev, his boss Deputy Foreign Minister 
(Europe and the Americas) Saribay and the chief of staff to State 
Minister Saudabayev (the former Kazakhstani ambassador to the United 
States and close personal advisor to President Nazarbayev) for 
Thanksgiving dinner.  Over dinner, Kaliyev voiced the same 
statements about a desired Presidential visit, but Saribay was 
extremely warm in his statements about the bilateral relationship. 
Kaliev's statements may express some frustration at the working 
level, but there are no indications that this frustration extends to 
the very top.  END COMMENT. 
 
MILAS