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RUEHBS/USEU BRUSSELS
RUEHLMC/MILLENNIUM CHALLENGE CORP
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL

UNCLAS SECTION 01 OF 02 BISHKEK 000638 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA 
DEPT PASS TO USTR (LILIENFELD) 
COMMERCE FOR ITA (STARKS) 
 
E.O. 12958: N/A 
TAGS: PREL BEXP BTIO ECON KG
SUBJECT: KYRGYZ RAISE AFGHANISTAN IN TRADE-RELATED PROPOSALS 
 
REF: BISHKEK 463 
 
BISHKEK 00000638  001.2 OF 002 
 
 
¶1.  (SBU) Summary:  In feedback following a recent USTR 
visit, Kyrgyz Economic Development and Trade Deputy Minister 
Ukulov emphasized the need for concrete results and a joint 
action plan for the success of future U.S.-Central Asia Trade 
and Investment Framework Agreement meetings.  Ukulov 
suggested establishing a bilateral council to promote 
business and investment, and he also signaled Kyrgyz plans to 
establish a working group to propose cooperation in 
Afghanistan's reconstruction and support Kyrgyz exports to 
Afghanistan.  In a separate, but related, development, an 
advisor to President Bakiyev pitched a debt-for-assistance 
proposal to the DCM that would redirect interest payments on 
the Kyrgyz Republic's bilateral debt toward Kyrgyz assistance 
to Afghanistan.  End Summary. 
 
TIFA and More 
------------- 
 
¶2.  (SBU) Following Deputy Assistant U.S. Trade 
Representative Claudio Lilienfeld's late April visit to 
Bishkek (reftel), Kyrgyz Deputy Minister of Economic 
Development and Trade (MEDT) Kurmanbek Ukulov sent the 
Embassy in mid-May feedback relating to the U.S.-Central Asia 
Trade and Investment Framework Agreement (TIFA) and potential 
Kyrgyz engagement in reconstruction activities in 
Afghanistan.  After highlighting the importance the Kyrgyz 
Republic attaches to TIFA, Ukulov reiterated his concern, 
which he raised during his meeting with Lilienfeld, that no 
concrete results had been achieved from previous TIFA 
meetings, and suggested developing a joint action plan for 
adoption at the next TIFA meeting.  Ukulov also proposed 
having business events alongside the regular TIFA meeting in 
order to promote business and investment opportunities. 
 
¶3.  (SBU) Turning to more bilateral concerns, Ukulov 
suggested creating a U.S.-Kyrgyz intergovernmental council 
that would focus on trade and economic cooperation.  (Note: 
Kyrgyz officials have raised this issue previously, most 
recently at the March 2008 bilateral Comprehensive Policy 
Dialogue meeting in Bishkek.  End Note.)  He also informed 
the Embassy that the MEDT had initiated creating an 
interagency working group to develop U.S.-Kyrgyz cooperation 
as it relates to Afghanistan's reconstruction and the 
potential export of Kyrgyz goods to Afghanistan.  Ukulov said 
that after the formation of the working group the Kyrgyz 
Republic would look to discuss these issues with the United 
States in greater detail.  He also provided a list of Kyrgyz 
goods available for export.  Embassy has since forwarded this 
list of goods to Defense Logistics Agency (DLA) personnel 
based in Germany. 
 
Comment 
------- 
 
¶4.  (SBU) In recent years, the Kyrgyz have often sent the 
lowest-ranking delegation to TIFA meetings.  Given the Kyrgyz 
government's intense focus on business, the Kyrgyz are 
unlikely to become more engaged on TIFA matters unless they 
determine that TIFA will generate some specific outcomes.  We 
will also look for any movement on the proposed Kyrgyz 
working group on Afghanistan-related cooperation with the 
United States.  In our review of the list of potential 
exports, we did not identify many good prospects -- but, we 
will let DLA evaluate the list for potential exports. 
 
¶5.  (SBU) In a separate, but related, development, President 
Bakiyev's Special Representative for Sustainable Development, 
Asylbek Aidaraliev, pitched a proposal to the DCM June 2 that 
 
BISHKEK 00000638  002.2 OF 002 
 
 
would redirect most or all of the Kyrgyz Republic's $80 
million in annual interest payments on its bilateral debt in 
exchange for the export of Kyrgyz products to Afghanistan. 
The idea would be to use these funds to purchase construction 
materials and other items locally, and transport them to 
Afghanistan as humanitarian assistance to help 
reconstruction.  As the Kyrgyz Republic has no bilateral debt 
to the United States, this novel idea would be of interest if 
sufficient goods exist that could be exported to Afghanistan. 
 
 
¶6.  (SBU) Aidaraliev claimed that Japan, which is one of the 
Kyrgyz Republic's main bilateral creditors, has already 
backed this concept, but wants the U.S. to express its 
support for the arrangement.  He also claimed that, if he 
could get Japan's approval and start shipping goods to 
Afghanistan, that Germany and Russia, the Kyrgyz Republic's 
two other major creditors, would also agree to the 
arrangement.  However, the Japanese Embassy, which was not 
immediately able to verify Aidaraliev's claim of Japanese 
support for the notion, is checking with the Japan 
International Cooperation Agency for any additional details 
about Japanese views of the proposal. 
LITZENBERGER