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DE RUEHTA #0664/01 1071208
ZNR UUUUU ZZH
O 171208Z APR 09
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC IMMEDIATE 5197
INFO RUCNCIS/CIS COLLECTIVE 1504
RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
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RUEKJCS/SECDEF WASHDC 0981
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RHMFIUU/CDR USCENTCOM MACDILL AFB FL

UNCLAS SECTION 01 OF 03 ASTANA 000664 
 
SENSITIVE 
SIPDIS 
 
STATE FOR SCA/CEN, OES/PCI, ISN 
MOSCOW PLEASE PASS TO NASA OFFICE 
 
E.O. 12958: N/A 
TAGS: PGOV PREL TSPA SENV KNNP KZ
SUBJECT:  KAZAKHSTAN:  KAZKOSMOS LAYS OUT SPACE AMBITIONS, REQUESTS 
SUPPORT FOR KAZAKHSTAN TO JOIN MTCR 
 
¶1. (U) Sensitive but unclassified.  Not for Public Internet. 
 
¶2. (SBU) SUMMARY.  Kazakhstan's National Space Agency, KazKosmos, 
expects that Russia and Kazakhstan will sign an agreement this year 
to allow visits to the Baikonur cosmodrome for tourists.  Russia's 
current Baikonur lease runs until 2050, but its terms do not 
adequately address the growing costs of maintaining the site.  There 
is a joint venture to build a new rocket launch site at Baikonur, 
called Baiterek, designed to launch Russia's newest Angara 
heavy-launch boosters.  Planned to be completed by 2012, it 
currently is only at the design stage.  KazKosmos told us that it 
fully understands Russia's interest in developing its own 
independent space launch site in the Russian Far East but believes 
that Russia has no intention to withdraw from Baikonur.  KazKosmos 
would like to enter into a cooperative partnership with NASA.  This 
year it hoped to send a Kazakhstani cosmonaut to the International 
Space Station, but this has been postponed because of the global 
financial crisis.  Kazakhstan would like to develop tourism in the 
Baikonur area and plans to develop tourism infrastructure. 
KazKosmos also hopes to preserve and restore Baikonur's basic launch 
site infrastructure, implement Russia's GLONASS global positioning 
system, and build a factory in Astana that will assemble satellites. 
 Kazakhstan is working to improve social and economic conditions in 
the city of Baikonur.  KazKosmos also asked for U.S. support for 
Kazakhstan to join the Missile Technology Control Regime (MTCR). 
END SUMMARY. 
 
RENEGOTIATION OF RUSSIA-KAZAKHSTAN AGREEMENT ON BAIKONUR 
 
¶3. (SBU) On April 15, Kazakhstan National Space Agency (KazKosmos) 
Deputy Chairman Yerkin Shaimagambetov and International Cooperation 
Department Director Lyailya Tlepgergenova did not directly confirm 
to Regional Environmental Officer (REO)rumors about a renegotiation 
of the Russia-Kazakhstan lease for Baikonur, but they did say that 
during an upcoming May visit to Kazakhstan of Russian Prime Minister 
Putin, Kazakhstan hopes the two countries will sign an agreement to 
allow tourists to visit the space launch site.  Shaimagambetov noted 
that Russia and Kazakhstan signed the first Baikonur lease in 1994, 
and it included a provision that the agreement could be extended. 
In 2004, Kazakhstani President Nazarbayev and then-Russian President 
Putin signed a memorandum of understanding to extend the lease until 
¶2050.  Shaimagambetov maintained, however, that the terms of the 
lease do not adequately address the growing costs of maintaining the 
site. 
 
¶4. (SBU) Shaimagambetov said both Russia and Kazakhstan have to 
maintain administrative facilities at Baikonur, support military 
units and law-enforcement agencies that provide security there, and 
fund the presence of other state agencies.   In addition, there are 
costs associated with improving infrastructure at the site and 
funding pension obligations for those who work there.  Ensuring 
ecological safety at Baikonur, with spent rocket fuel contaminating 
parts of the site, also entails costs. 
 
¶5. (SBU) Shaimagambetov noted that there is a Russia-Kazakhstan 
joint venture to build a new rocket launch site at Baikonur, called 
Baiterek, which is designed to launch Russia's newest Angara 
heavy-launch boosters.  The Angara booster will use a less toxic 
fuel than Russia's existing Proton booster.  Nonetheless, this new 
fuel will involve additional costs for storage and handling.  In the 
past, there were several fuel-related accidents and fires involving 
Proton booster rockets, Shaimagambetov said, and Russia has agreed 
in principle to pay for the ecological damage to the surrounding 
area.  The Baiterek project is supposed to be completed by 2012, 
though it is only at the design stage now.  In short, he said, there 
are a lot of reasons why Kazakhstan wants more favorable terms for 
the Baikonur lease, but for now that process is on hold until the 
financial situation improves. 
 
¶6. (SBU) Regarding Russia's plans to build a new launch site in the 
 
ASTANA 00000664  002 OF 003 
 
 
Russian Far East, Shaimagambetov said KazKosmos fully understands 
Russia's interest in developing its own independent access to space. 
 These plans, however, will not affect joint projects.  He stressed 
that Russia has affirmed it has no intention to withdraw from 
Baikonur, and the Russian government directly reassured President 
Nazarbayev about this. 
 
KAZKOSMOS WOULD LIKE TO HAVE COOPERATION WITH NASA 
 
¶7. (SBU) Shaimagambetov said that KazKosmos would like to enter into 
a cooperative partnership with NASA.  He said Kazakhstan has no 
direct experience in space flight or exploration and, thus, could 
benefit immensely from NASA's experience.  Shaimagambetov said he 
has traveled to the United States to observe U.S. experience in 
operating a launch site and a control center.  Kazakhstan has sent 
two cosmonauts into space, and had hoped to send one of its two 
current candidate cosmonauts to the International Space Station in 
late 2009 to carry out experiments as part of Kazakhstan's science 
program.  Unfortunately, such contracts with Russia to send 
cosmonauts into space are very costly for Kazakhstan, and the 
financial crisis has forced Kazakhstan to postpone these plans for 
now. 
 
DEVELOPING TOURISM AT BAIKONUR 
 
¶8. (SBU) According to Shaimagambetov, Kazakhstan would like to 
increase its presence at Baikonur, not only for operational reasons, 
but also because Kazakhstan is interested in developing tourism 
there.  The city was closed for security reasons, but Kazakhstan 
hopes to reopen the zone again, possibly this year, if Putin and 
Nazarbayev sign an agreement on international tourism for Baikonur 
during Putin's May visit to Kazakhstan.  Kazakhstan intends to 
refurbish a tourist hotel in Baikonur that can handle large official 
delegations as well as ordinary tourists.  Currently, there is very 
little lodging in Baikonur, and this serves as a limiting factor. 
There are discussions with Kazakhstani tourist agencies to help 
build the necessary tourist infrastructure -- including roads, 
hotels, and souvenir shops -- as well as to develop and improve a 
number of historical sites at Baikonur.  In addition, new air routes 
will be needed, since currently there are no direct flights to 
Baikonur from within Kazakhstan.  At present, only a very small 
number of people are able to go to Baikonur, but Shaimagambetov 
hopes this will change. 
 
PROJECTS STRUGGLING BECAUSE OF THE FINANCIAL CRISIS 
 
¶9. (SBU) Shaimagambetov enumerated a number of projects that 
KazKosmos was undertaking, many of which have been affected by the 
ongoing financial crisis.  KazKosmos hopes to be able to preserve 
and, to some extent, restore some of the basic launch site 
infrastructure.  This is a project of the Russian-Ukrainian company 
Kosmotras, which also does commercial launches, and Kazakhstan is 
currently negotiating its entry into participating in this project. 
He said KazKosmos also plans to implement Russian's GLONASS global 
positioning system (similar to GPS) to help it find natural 
resources and preserve the environment in Kazakhstan.  The bidding 
is under way, involving contenders from France, Russia, Ukraine, 
India, South Korea, and China.  According to Shaimagambetov, France 
and Kazakhstan intend to sign a space cooperation agreement later 
this year when French President Sarkozy visits Kazakhstan. 
Shaimagambetov said Kazakhstan plans to build a factory jointly with 
France in Astana that will assemble satellites.  The original 
intention was for Kazakhstan and France to share the financing for 
this project equally, but Kazakhstan is now looking for additional 
international partners. 
 
BAIKONUR CITY NEEDS DEVELOPMENT 
 
¶10. (SBU) Kazakhstan is working to improve life in the city of 
Baikonur, Shaimagambetov said.  It is doing this on its own, without 
 
ASTANA 00000664  003 OF 003 
 
 
Russian participation, since Russia is only interested in exploiting 
the launch site.  He described Baikonur city as out of the Soviet 
1970s, lacking modern infrastructure.  The government now is 
building a new school, kindergarten, hospital, and government 
administrative buildings.  Shaimagambetov noted that, in the past, 
Kazakhstan had to rent buildings from Russia -- now it is building 
its own.  He said the government is beginning to worry about the 
social and economic development of the city, including cleaning up 
the environment and securing pensions for the elderly.  In addition, 
Kazakhstan sends a number of students to the aeronautics institute 
in Baikonur for training. 
 
REQUEST FOR U.S. SUPPORT FOR KAZAKHSTAN TO JOIN THE MTCR 
 
¶11. (SBU) Shaimagambetov argued that Kazakhstan has worked actively 
in the realm of missile technology control and has consistently 
supported the U.S. position on this issue.  He said Kazakhstan is 
seeking U.S. support to join the Missile Technology Control Regime, 
and he hopes that the United States will agree to this.  He said 
this will help Kazakhstan's efforts to enter the commercial space 
market as it plans for the future of Baikonur.  (COMMENT: 
Kazakhstani MFA officials have also reiterated to us on several 
occasions in recent months Kazakhstan's continued interest in 
joining the MTCR.  They see this as consistent with Kazakhstan's 
strong record on non-proliferation.  END COMMENT.) 
 
HOAGLAND