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C O N F I D E N T I A L SECTION 01 OF 03 BAKU 001138 
 
SIPDIS 
 
FOR EUR A/S FRIED; EUR/CARC 
 
E.O. 12958: DECL: 11/30/2018 
TAGS: PREL PGOV NATO AJ
SUBJECT: USAID ADMINISTRATOR FORE - PRESIDENT ALIYEV 
DISCUSS STRATEGIC DIALOGUE, ASSISTANCE PRIORITIES 
 
Classified By: Ambassador Anne E. Derse, 
reasons 1.4 (b) and (d). 
 
¶1. (C) Summary: In a November 24 meeting with USAID 
Administrator Henrietta Fore, President Aliyev welcomed 
intensified cooperation with USAID, especially in five key 
areas:  water and sanitation, agriculture, IT/telecoms, 
environmental remediation and anti-corruption.  Azerbijan,s 
leadership feels under-attended economicaly and politically, 
based on their importance as  strategic partner to the U.S. 
in Afghanistan and elsewhere in the region.  Fore asked if a 
high-level Azerbaijani delegation,s traveling to the U.S. in 
coming weeks to engage in a broad strategic dialogue 
encompassing the full range of "diplomacy, development and 
defense" issues in our bilateral relationship would be useful 
(see comment/action request in para 10).  President Aliyev 
enthusiastically agreed to the dialogue, but also took the 
occasion to protest Freedom Support Act Section 907 
constraints and Azerbaijan's non-participation in the 
Millennium Challenge Account.  The President repeated 
requests to buy U.S. defensive weaponry.  Administrator Fore 
raised the issue of licenses for foreign broadcasters.  End 
Summary 
 
¶2. (SBU) USAID Administrator Henrietta Fore met November 24 
with President Aliyev to discuss economic development, 
environmental remediation and political reform. 
Administrator Fore congratulated Aliyev on his recent 
re-election and Azerbaijan's strong improvement in rankings 
in the World Bank's Doing Business report. 
 
Azerbaijan's Developmental Plans 
-------------------------------- 
 
¶3. (SBU) President Aliyev noted Azerbaijan's robust economic 
development, which, he said, is leading to a higher standard 
of living, reduction of poverty and lower unemployment. 
Energy development, he said, is driving economic growth, but 
is not the only factor.  Aliyev said that the GOAJ was taking 
additional steps, including low interest rate loans to 
businesses, direct subsidies for fuel and fertilizer to 
farmers and massive state investment in infrastructure, to 
advance development, improve social conditions, and generate 
employment.  The government's message to local and foreign 
businesses, he said, is that Azerbaijan is a safe, stable 
place to invest. 
 
¶4. (C) The President stated that, following the October 15 
election, the Administration is crafting a development plan 
for the next five years.  This plan will include a 
"village-by-village review," with the focus on physical 
infrastructure needs, clean water for every village, 
agricultural development, telecommunications and education. 
Responding to Administrator Fore's question, the President 
said that Azerbaijan would value the help of the U.S. 
Government in the areas of water supply, sanitation and 
environmental remediation, and IT. 
 
¶5. (C) Administrator Fore suggested that the USG focus and 
support the Azerbaijan National Development Plan.  The 
President articulated Azerbaijan,s focus on four areas of 
cooperation: water and sanitation, agriculture, IT/telecoms 
and environmental remediation.  American companies, she said, 
could contribute further through public-private partnerships. 
 The President agreed, noting that food security is a 
priority of the GOAJ, and Azerbaijan could benefit from U.S. 
technical assistance on environmental clean-up. 
Administrator Fore said that this type of technical 
assistance would be a good area for further co-financing, and 
Azerbaijani-financed U.S. technical assistance efforts.  She 
also stated that anti-corruption issues must be incorporated 
in these efforts, and noted that the U.S. Customs Service and 
other agencies could provide training in Azerbaijan.  The 
President indicated his interest in following up and 
contributing significant financial support. 
 
¶6. (C) Noting that the GOAJ's effort to eradicate corruption 
in the traffic police had failed, and that "administrative 
measures" alone are not enough, the President said the GOAJ 
 
BAKU 00001138  002 OF 003 
 
 
is "looking at what we might do on a more radical basis" with 
respect to corruption. He pledged to review again the US 
Customs and Border Patrol offer of resident Customs advisors 
on a reimbursable basis to assist with Azerbaijan's new 
customs reforms. 
 
President Complains about 907, MCC 
---------------------------------- 
 
¶7. (C) Aliyev complained, however, that Section 907 of the 
Freedom Support Act has not been lifted, and serves as a 
hindrance to further cooperation and that it had long 
outlived its original purpose.  Moreover, Aliyev wondered 
aloud why Azerbaijan had not been selected to participate in 
the Millennium Challenge Account (MCA), while Armenia and 
Georgia had.  "This is a matter of principle," the President 
said, "not of need.  Why has Armenia been rewarded for 
occupation?" 
 
President Discusses Security Cooperation 
---------------------------------------- 
 
¶8. (C) President Aliyev also requested further access to 
"modern, high-tech" defensive U.S. weaponry.  Azerbaijan is 
surrounded by large, unpredictable powers, and needs to 
defend itself.  Further, Azerbaijan wants to protect its 
infrastructure and routes to markets.  The President said 
that Azerbaijan is "integrating with NATO," through the 
second phase of IPAP.  "Israel has access to U.S. military 
goods," he said, while Azerbaijan can only buy from Russia, 
Ukraine and Belarus. 
 
Proposal for USG-GOAJ Strategic Dialogue 
---------------------------------------- 
 
¶9. (C) Administrator Fore noted ongoing U.S.-Azerbaijan 
dialogues on security, energy, economic reform and 
democracy/human rights, and suggested convening a broad, 
multi-discipline dialogue that would encompass the full range 
of "diplomacy, development and defense" issues in our 
bilateral relationship.   To initiate this effort, she asked 
if a high-level Azerbaijani delegation could travel to 
Washington in coming weeks to meet with counterparts.  Aliyev 
enthusiastically agreed. 
 
Administrator Raises Foreign Broadcasters and Licensing 
--------------------------------------------- ---------- 
 
¶10. (C) Administrator Fore raised the issue of licenses for 
foreign broadcasters, which Azerbaijan's National Television 
and Radio Council has threatened to revoke.  Aliyev said that 
the issue is "nothing personal, but legislative" and noted 
that "we cannot change our legislation to satisfy the needs 
of the foreign broadcasters."  He hoped that the BBC, and 
Voice of America and Radio Liberty could find a way to 
continue broadcasting without holding a license, and 
suggested satellite, cable and internet services, since there 
was internet service in every village.  The Ambassador 
explained that Azerbaijan's communications infrastructure was 
too underdeveloped for this to be a viable option.  At the 
same time, the President said that Radio Liberty's content 
was "disappointing," and repeated allegations of "90 percent" 
of reports being anti-government.  "This doesn't reflect the 
nature of our relationship," he said. 
 
¶11. (C) Comment/Action Request:  Embassy supports the 
proposal for a high-level GOAJ delegation to travel to 
Washington to engage on a broad range of issues, including 
security cooperation, and looks to the Department to issue an 
invitation to a delegation led by the Foreign Minister.  To 
attract a decision-making delegation from Baku, Washington 
participants at the deputy secretary level would likely be 
needed.  Embassy, based on USAID Administrator's 
recommendation, hopes that Negroponte, Fore, (DOD) England 
and Fried would host.  On assistance priorities, efforts to 
work with Azerbaijan on environmental remediation, through 
the procurement of U.S. goods and services, should be 
facilitated.  As the Administrator noted, this area has 
excellent prospects for co-financing.  Azerbaijan,s 
 
BAKU 00001138  003 OF 003 
 
 
leadership should also make calls on Congress to open up 
relationships. 
DERSE