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### Viewing cable 09BISHKEK1065, LUNCH WITH MAX: SOUP TO NUTS

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
09BISHKEK1065 | 2009-09-22 11:24 | 2010-12-12 21:30 | SECRET | Embassy Bishkek

`

    VZCZCXRO3292
    RR RUEHBI RUEHCI RUEHDBU RUEHLH RUEHNEH RUEHPW
    DE RUEHEK #1065/01 2651124
    ZNY SSSSS ZZH
    R 221124Z SEP 09
    FM AMEMBASSY BISHKEK
    TO RUEHC/SECSTATE WASHDC 2688
    INFO RUCNCIS/CIS COLLECTIVE
    RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
    RHMFISS/CDR USCENTCOM MACDILL AFB FL
    RHEHNSC/NSC WASHDC
    RUEKJCS/SECDEF WASHDC
    RUEKJCS/OSD WASHDC

` `

    S E C R E T SECTION 01 OF 03 BISHKEK 001065

    C O R R E C T E D C O P Y (SECURITY CLASSIFICATION CHANGED)

    SIPDIS

    STATE FOR SCA/CEN

    E.O. 12958: DECL: 09/21/2019
    TAGS: PGOV PREL KG
    SUBJECT: LUNCH WITH MAX: SOUP TO NUTS

    REF: BISHKEK 1058

    BISHKEK 00001065 001.2 OF 003

    Classified By: Ambassador Tatiana C. Gfoeller, for Reasons 1.4 (b) and
    (d).

    ¶1. (S) Summary: In a wide-ranging lunch, Maxim Bakiyev, son
    of President Bakiyev, and Kyrgyz FM Sarbaev argued that the
    $20 million Economic Development Fund needs to be a new kind
    of assistance, targeted strategically toward the development
    of the country and its integration into the world economy.
    Bakiyev described Russian machinations against the U.S. and
    his own intelligence efforts against the Russians, complained
    about personal attacks on him by an organization connected to
    the National Democratic Institute, and stated that the
    Russians have not come through with the $2 billion they had
    promised for the Kamburata 2 hydroelectric project. Bakiyev
    came across as very pro-U.S., well educated, and dedicated to
    the betterment of his country. Of course, we have
    information from many other sources suggesting that he is
    also very dedicated to his own advancement and corrupt
    financial interests. End Summary.

    ¶2. (SBU) Ambassador and DCM had lunch with Maxim Bakiyev,
    the son of President Bakiyev and Foreign Minister Kadyrbek
    Sarbaev on September 18, at the invitation of the Foreign
    Minister. Plov, Manti and other Central Asian delicacies
    were served at one of the guest houses on the Presidential
    compound. The tone of the hosts was extremely warm and
    friendly, and the conversation was open and wide ranging.

    Russian Meddling
    ----------------

    ¶3. (C) Sarbaev and the Ambassador began with a short
    discussion of the delivery, the day before, of the Department
    of Defense check for $250,000 to Marina Ivanova, the widow of
    the man killed in the Hatfield case. The Ambassador thanked
    Sarbaev for facilitating delivery of the check. Bakiyev
    noted that the Russians had played an unhelpful role with
    Mrs. Ivanova. He said they had met with her in July and
    tried to convince her to come out in the press again to
    denounce the U.S. and call again for the closing of the U.S.
    base. Kyrgyz officials had then met with her, he said, and
    convinced her that it was not in her interests to become a
    pawn in a fight between the U.S. and Russia.

    ¶4. (S) Bakiyev followed up by noting that the Russians play
    an unhelpful role in many issues. However, he said, "I have
    my own very good computer experts, and we are able to
    intercept and read FSB communications." In that way, he
    said, they keep abreast of what the Russians are doing. He
    said that he had read intercepts from the FSB regarding his
    own efforts to put together a team of experts to study the
    needs of the country (further described in para 8 below).
    The Russians had concluded that the Americans must be behind
    the effort, as it was too well put together to be Kyrgyz, he
    said, commenting that the Russians are racist in their view
    of the Kyrgyz.

    And Democracy Activists Meddling, Too
    -------------------------------------

    ¶5. (C) There were also problematic people within Kyrgyzstan,
    Bakiyev said. Just a few months ago articles attacking him
    personally began appearing on the website compromat.ru. His
    computer people had been able to trace them back to
    "purported" democracy activist Tolekan Ismailova, director of
    the Human Rights Center "Citizens against Corruption" which
    receives grants from the National Democratic Institute of the
    U.S. (Ismailova was arrested and released on July 30, 2009
    for protesting the presidential election.) Bakiyev was
    unaware of a major article in the Kyrgyz press that very
    morning which stated that he, Maxim Bakiyev, is the power
    behind the throne in Kyrgyzstan, and that he wields that
    power with the acquiescence and at the direction of the USG
    (via the CIA).

    The Trips to the U.S., and the Elections
    ----------------------------------------

    ¶6. (U) The Ambassador and Sarbaev discussed the upcoming
    travel of the Prime Minister and Sarbaev himself to the U.S.
    for UNGA, consultations in Washington, and then Sarbaev's
    trip for discussions of the Annual Bilateral Consultations
    mechanism. Sarbaev noted that this is the first trip to the

    BISHKEK 00001065 002.3 OF 003

    U.S. for the PM and that it is very important that it go
    well. Ambassador pointed out that the Kyrgyz delegation
    certainly must realize that U.S. concerns about human rights
    and democratization will be raised in many of the PM's
    meetings. He should be prepared to answer these questions in
    a positive and forthcoming manner. She also noted that
    slippage in the MCC indicators was also likely to be raised
    during the visit.

    ¶7. (U) Bakiyev picked up on the Ambassador's comments to
    state that the GOKG is very positive and proactive in its
    response to all these issues. It considers them to be very
    important. "When the OSCE criticized the presidential
    elections," he stated, "we asked them to be specific. What
    were the deficiencies? Which were the districts where fraud
    had taken place? We told them that we would annul the
    results from any polling stations where there had been fraud.
    We got no response from them."

    Development, the EDF, and Thinking Strategic
    --------------------------------------------

    ¶8. (SBU) Bakiyev then broadened the subject by stating, in
    terms that echoed what the PM told the Ambassador this week
    (REFTEL), that they have brought together experts from many
    different fields to discuss what needs to be done in the
    country. Their desire to reform the institutions of
    Kyrgyzstan was reflected in Bakiyev's September 1 speech.
    However, he said, the country simply does not have the kind
    of economic expertise it needs in order to put together a
    real plan for development. That was what they hoped would
    come of the new $20 million Economic Development Fund (EDF).
    They would like to have a high-powered economic consultancy
    come in, someone like Price Waterhouse, who could put
    together a study of Kyrgyzstan's place in the world economy
    and what the country needs to do to spur integration and
    development.

    ¶9. (SBU) Donor support, and especially USAID, brought these
    sorts of consultants to Kyrgyzstan in the early 1990s,
    Bakiyev said, but they were always focused narrowly on an
    already defined set of projects which were imported from
    abroad -- like privatization. There was never a study of
    Kyrgyzstan's potential and the barriers to development which
    took a look at what overall strategy the country should
    pursue and how to implement it. This was what they needed
    and wanted -- and the Kyrgyz themselves should be the ones to
    put together the questions which should be put to the
    consultants, since they knew their country best.

    ¶10. (SBU) Ambassador responded that the proposed structure of
    the fund, now on the Prime Minister's desk in the form of a
    Memorandum of Understanding, would allow the GOKG to propose
    just such a study, if that was what they believed was needed.
    Bakiyev reiterated that the need was to gain an
    understanding of the place Kyrgyzstan should occupy in the
    world economy and how to take advantage of its opportunities
    in order to develop. "We do not want this money for
    ourselves," he said, "but we want to ensure that it is not
    used in traditional, unhelpful, assistance projects, but
    instead in something that is really well thought through."

    ¶11. (SBU) Bakiyev noted that one of Kyrgyzstan's natural
    advantages was its hydroelectric power potential. He
    expressed support for CASAREM and bemoaned the delays in
    funding by the Asian Development Bank. Ambassador asked
    about the status of the Kamburata 2 hydro electric project.
    Bakiyev responded that the Russians had not yet come through
    with the promised loan of $2 billion. He noted that the
    final cost of the project is not yet clear, given that
    construction would take about eight years and input prices
    are not stable.

    Comment: Smart, Corrupt, and a Good Ally to Have
    --------------------------------------------- ----

    ¶12. (C) Maxim Bakiyev is smart and well educated. He was
    able to discuss subjects ranging from early European history
    to economics without any strain at all. He is apparently a
    voracious reader, and said he is currently reading
    Greenspan's Age of Turbulence. According to many sources of
    widely varying credibility, he is also corrupt and benefiting
    economically from his father's power. Statements he made
    during this lunch suggest that he could still be an ally on
    issues important to the USG, ranging from his support for the

    BISHKEK 00001065 003.2 OF 003

    Transit Center's continued operations to economic reform. It
    was interesting to note that, while the convener of this
    lunch was the Foreign QxMe,Qas2evQ talking points on
    the Economic Development Fund were very similar to those the
    Prime Minister used with the Ambassador this week. Clearly
    Bakiyev has influence and access through a broad swath of the
    government. While this is a relationship which must be
    cultivated carefully, we believe it is also a relationship
    which can pay important dividends for the USG.
    MEMMOTT

`