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### Viewing cable 07THEHAGUE1992, NETHERLANDS/RUSSIA: BALKENENDE MIXES BUSINESS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07THEHAGUE1992 | 2007-11-15 12:12 | 2011-01-22 17:05 | CONFIDENTIAL | Embassy The Hague

`

    VZCZCXYZ0000
    OO RUEHWEB

    DE RUEHTC #1992/01 3191206
    ZNY CCCCC ZZH
    O 151206Z NOV 07
    FM AMEMBASSY THE HAGUE
    TO RUEHC/SECSTATE WASHDC IMMEDIATE 0689
    INFO RUEHMO/AMEMBASSY MOSCOW PRIORITY 1754
    RHEHNSC/NSC WASHDC PRIORITY
    RUEAIIA/CIA WASHDC PRIORITY
    RUEKJCS/CJCS WASHDC PRIORITY
    RUEHZG/NATO EU COLLECTIVE

` `

    C O N F I D E N T I A L THE HAGUE 001992

    SIPDIS

    SIPDIS

    E.O. 12958: DECL: 11/13/2027
    TAGS: PREL PGOV KDEM ECON PINR IR RU KO NL
    SUBJECT: NETHERLANDS/RUSSIA: BALKENENDE MIXES BUSINESS
    WITH PRESSURE

    REF: A. THE HAGUE 1985
    ¶B. POL/ECON IN THE NL 11/09/07 AND 11/14/07

    Classified By: AMBASSADOR ROLAND E. ARNALL FOR REASONS 1.4(B/D).

    ¶1. (C) SUMMARY: During his November 5-8 visit to Moscow,
    Dutch Prime Minister Balkenende engaged Russian President
    Putin on tough issues such as Kosovo, Iran, and human
    rights in addition to announcing a major multi-billion dollar
    gas pipeline deal (reported septels). Balkenende believes
    that strong economic ties with Russia and demonstrating
    respect for Russian pride are the keys to influencing Putin.
    Although Balkenende claimed to have delivered a strong and
    clear message on the need to respect democratic norms, he was
    later criticized in Parliament for appearing to place Dutch
    economic interests ahead of human rights concerns. END
    SUMMARY.

    ¶2. (C) In a November 13 meeting with Ambassador Arnall, Dutch
    Prime Minister Jan Pieter Balkenende expressed satisfaction
    regarding his November 5-8 visit to Moscow. Without directly
    referring to the substantial new energy cooperation
    agreements announced during the visit -- for which Balkenende
    has been criticized in Parliament (refs) -- Balkenende argued
    that the Netherlands' growing economic ties to Russia make it
    possible to engage Russian President Putin directly on the
    most difficult issues. Balkenende stressed that he did not
    shy away from discussing sensitive issues, such as human
    rights, both in public and in his private conversations with
    Putin.

    ¶3. (C) Balkenende proudly noted that he and Putin were able
    to conduct nearly all of their conversations in German,
    which, he said, allowed for a more open and direct
    conversation than working through translators. Putin, he
    added, was obviously a clever guy who was well briefed on
    every issue discussed. According to Balkenende, Putin
    readily acknowledges that there are serious problems in
    Russia, such as corruption, and was willing to listen to
    constructive criticism. At the same time, however, Putin
    remains sensitive to perceived slights to Russia's status as
    a great power, and is motivated -- in Balkenende's view -- as
    much by national pride as by geopolitical or economic
    considerations. Treating Putin, and Russia, with respect,
    therefore, is a necessary first step before engaging on tough
    issues.

    KOSOVO:
    -------

    ¶4. (C) According to Balkenende, Putin showed little concern
    over the lack of progress on Kosovo. Asked what would happen
    if no agreement satisfactory to both sides can be reached by
    December 10, Putin told Balkenende: then we go to December
    ¶11. Putin also reportedly tried to downplay the potential
    for regional instability by noting that other countries in
    Europe -- such as Belgium or Ireland -- are also divided
    along ethnic, religious, or linguistic differences.
    Balkenende dismissed these arguments and stressed that there
    is no point in talking and talking without ever reaching a
    solution. On the other hand, Balkenende made clear to
    Ambassador Arnall that he is deeply worried about divisions
    within the EU should Kosovo unilaterally declare
    independence, a development that would post the most serious
    challenge to the EU in fifteen years.

    IRAN/MISSILE DEFENSE:
    ---------------------

    ¶5. (C) On Iran, Balkenende said he had impressed on Putin the
    importance of maintaining a united front to ensure Iran does
    not succeed in acquiring nuclear weapons. He also
    underscored the key roles of the IAEA and the UNSC, and the
    potential damage to their credibility should Iran continue to
    ignore its obligations. Balkenende said Putin had
    demonstrated a deep understanding of the situation and
    appeared genuinely concerned. He added that the Russians
    believed they had detected a new, more positive tone in their
    recent dealings with Iran (and with Supreme Leader Khameini
    in particular), but did not elaborate. (Note: Per ref A,
    MFA Political Director Pieter de Gooijer is in Tehran this
    week.)

    ¶6. (C) On the related issue of missile defense, Balkenende
    was pleased that recent talks between senior U.S. and Russian
    officials appeared to have taken some of the heat out of
    Russian opposition to a U.S.-proposed missile shield in
    Eastern Europe. That said, the sides clearly remained far
    apart and it will be difficult to find a compromise. Putin,
    he added, continued to push for increased dialogue between
    Russia and NATO on this issue.

    DEMOCRACY AND HUMAN RIGHTS:
    ---------------------------

    ¶7. (C) Balkenende was adamant that he was not afraid to raise
    human rights concerns during his visit. He noted that he met
    with NGO's working on civil society and rule of law projects
    receiving assistance from the Netherlands. In his private
    meetings with Putin, and in his press interviews, he had also
    stressed the Dutch commitment to democracy and the rule of
    law. (Note: Per ref B, Putin apparently later criticized
    Balkenende for some of his public remarks.) Balkenende
    stressed, however, that such comments would fall on deaf ears
    if not accompanied by appropriate gestures of respect and
    understanding for Russia's unique situation. Unlike the U.S.
    or the Netherlands, Russia has had at most sixteen years of
    democracy. Putin, he added, is admired internally for his
    strong leadership -- to the point that most Western leaders
    should and do envy his popularity ratings.

    COMMENT:
    --------

    ¶8. (C) Balkenende was obviously impressed by Putin and feels
    that he is someone he can do business with -- literally, in
    fact. The announcement of a multi-billion dollar accord
    between Gazprom and the Dutch gas company GasUnie during the
    visit opened the Prime Minister to criticism -- including
    from some members of his own party -- for appearing to place
    Dutch economic interests ahead of human rights' concerns.
    The fact that the deal was announced the same week the
    Foreign Minister publicly presented the Cabinet's new, more
    aggressive international Human Rights Policy to Parliament
    only heightened the contrast and further motivated
    Balkenende's opponents to attack him; at one point, Foreign
    Minister Verhagen found himself calling the Prime Minister in
    Moscow directly from Parliament for guidance. Several
    contacts have since acknowledged that holding the two events
    so close together was a serious miscalculation.
    Arnall

`