WikiLeaks: French MFA On Russia, Balkans, Afghanistan, Iran

FRENCH MFA ON RUSSIA, BALKANS, AFGHANISTAN, IRAN

http://213.251.145.96/cable/2010/02/10PARIS207.html

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#10PARIS207.

Reference ID Created Released Classification Origin 10PARIS207
2010-02-22 14:02 2010-12-06 21:09 CONFIDENTIAL//NOFORN Embassy Paris
VZCZCXRO2986 PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHNP RUEHROV RUEHSL
RUEHSR DE RUEHFR #0207/01 0531431 ZNY CCCCC ZZH P 221431Z FEB 10
ZDK FM AMEMBASSY PARIS TO RUEHC/SECSTATE WASHDC PRIORITY 8368 INFO
RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITYC O N F I D E N T I A
L SECTION 01 OF 04 PARIS 000207

NOFORN SIPDIS

E.O. 12958: DECL: 02/11/2020 TAGS: PGOV PREL RS GG SR BK AF IR AM FR
SUBJECT: FRENCH MFA ON RUSSIA, BALKANS, AFGHANISTAN, IRAN, CAUCASUS

PARIS 00000207 001.2 OF 004

Classified By: Political Counselor Andrew R. Young, Reasons 1.4 (b),
(d ).

¶1. (C/NF) SUMMARY: During separate discussions with OSD Assistant
Secretary for International Security Affairs Alexander Vershbow
and EUR Deputy Assistant Secretary Spencer Boyer in early February,
Roland Galharague, MFA A/S-equivalent for Continental Europe, adopted
a defensive posture about the potential sale of Mistral class ships
to Russia; expressed skepticism about the depth and durability of
Russia’s support for sanctions against Iran; acknowledged Putin’s
dominance in Russia while proposing, as a means to strengthen Medvedev,
that we respond positively to his proposals for reforming European
security and holding an OSCE summit; asserted that Serbia cannot win
back Kosovo and also win entry into the EU; expressed pessimism about
the future of Nagorno-Karabakh negotiations and about the impact of
instability in Iran on Azerbaijan, Turkmenistan, and Armenia; and
claimed that Bosnia and Afghanistan could become difficult issues
for trans-Atlantic relations this year because of the USG’s alleged
disengagement from Bosnia and its alleged failure to consult adequately
with European NATO allies on strategy in Afghanistan. END SUMMARY.

—————————————– MISTRAL: FRENCH ADOPT A
DEFENSIVE POSTURE —————————————–

¶2. (C/NF) When asked about the potential sale of Mistral class
ships to Russia, Galharague inquired as to why the USG seems to be
singling out France for criticism on this issue.

“I recently spoke to my Dutch counterpart,” he reported, “and he said
you have not approached him on this subject” despite recent Dutch
(and Spanish) efforts to make similar sales.

Furthermore, the Mistral is not “top end” military equipment,
Galharague argued, describing it instead as a combination between “a
truck and an oil ship” with some helpful navigation tools. It will not
contribute significantly to Russian military capabilities. Russian
leaders have been over-selling the military significance of the
Mistral in order to quell domestic opposition to its purchase from
abroad. Some Russians consider the sale a harbinger of the end of
shipbuilding in their country, and claim the ship could be built
at home but would simply take longer. The production and sale of
armaments is a major industry in Russia, possibly second only to oil
and gas. In his February 10 press conference, the Chairman of Russia’s
National Security Council, Nikolai Patrushev, seemed “very reticent”
about the possible sale, according to Galharague.

¶4. (C/NF) Asked about Georgia’s reaction to the possible
sale, Galharague insisted that France has maintained “very good”
relations with Tbilisi. The GOF “strategy” for Georgia to recover
its lost territory is to persuade the Tblisi government to engage
with the leaders of the secessionist territories and to continue
on their path toward EU accession. The demands of accession —
such as internal democratic reforms and good relations with their
neighbors — will serve Georgia and the region well. Nonetheless,
Galharague acknowledged that Tbilisi has good reason to fear Russia,
given their recent history. This ship will not, however, affect their
strategic situation, Galharague argued: “The Russians have already
invaded Georgia without the ship.”

¶5. (C/NF) While acknowledging that Georgia and the Baltic countries
feel threatened by Russia — with reason — Galharague concluded
that Russia is not a threat to us and there is no reason we should
not sell equipment to them which does not fall into the realm of
restricted armaments. The Mistral class ship does not contain high
end or sensitive technology, he insisted.

——————————————- RUSSIA’S COMPLICATED
RELATIONSHIP WITH IRAN ——————————————-

¶6. (C/NF) The Russians are currently benefiting from their helpful
statements on Iran while realizing full well that China will water down
any sanctions proposals, Galharague asserted. When praising Russia’s
new stance, he argued, we should be cognizant of their complicated
relationship with Iran. Russians have an interest in strong ties
with Tehran, especially because Iran is still a primary market for
Russian arms sales. On the other hand, were Iran to normalize its
relations with western governments, it could develop into a major
Russian rival for gas sales to the European market. To balance various
and competing elements of its relationship with Iran, Russia has an
interest in serving as a “go-between” in the conflict between Iran and
the west. In fact, Galharague claimed, Russian leaders were furious
when Turkey recently started to seize that mantel.

PARIS 00000207 002.2 OF 004

——————— MEDVEDEV VERSUS PUTIN ———————

¶7. (C/NF) When discussing the comparative influence of President
Medvedev and Prime Minister Putin, Galharague claimed that Medvedev,
whose initial gut reactions to events clearly differ from those of
Putin, is trying to assemble his own power bases independent of the
former President. In the meantime, “power still rests with Putin,”
Galharague assessed. Putin, not Medvedev, constantly juggles and
balances competing domestic interests in Russia. As a case in point,
Galharague cited the Russian government’s reaction to the financial
crisis. After the government painstakingly established a mechanism
for determining how to divide stimulus funds among various economic
sectors and private interests, Putin simply decided unilaterally
who would receive state support. In general, Galharague observed,
Putin much prefers to focus on domestic issues rather than foreign
policy. Putin prefers cutting deals in the murky Russian business
world to delving into the complexities of international politics.

——————————————— ————-
STRENGTHEN MEDVEDEV BY RESPONDING TO HIS SECURITY PROPOSAL
——————————————— ————-

¶8. (C/NF) Galharague described the long-standing French effort to
strengthen Medvedev by respecting his official role as president of
Russia, regardless of Putin’s competing power and influence. “We treat
Medvedev as president and address presidential issues with him.” They
also seek to validate Medvedev’s initiatives, regardless of the
substantive content, in order to reward his efforts to put new ideas
forward. As an important example, Galharague mentioned Medvedev’s
proposal for revamping European security architecture. Medvedev
invested a lot of political capital in this effort, Galharague argued,
and we should provide a positive response, even if we do not accept
the proposals.

For this reason, President Sarkozy sent Medvedev a letter of
acknowledgment after receiving the proposal. Tying this approach to
USG policy toward Russia, Galharague several times asked how the USG
plans to measure the success of the “reset” with Russia? The French,
he said, would like to know whether the USG has established benchmarks
for progress, and they wonder how START negotiations might fit into
this equation.

——————————————- EUROPEAN SECURITY: GOF
SUPPORTS OSCE SUMMIT ——————————————-

¶9. (C/NF) Galharague stated that the French largely agree with us
about how to address questions of European security, except in one
area: they support the idea of an OSCE summit.

While Paris concurs with the USG analysis that the Russian proposals
for reforming Europe’s security institutions contain a number of
“unacceptable” elements, he argued that we must understand that
“we’re playing a game of judo — we do not want to give the Russians
a pretext to claim they’re being ignored.” He added that the Russians
are adept at manipulation. “We constantly feel like we have a better
hand but they’re playing a better game — it’s the same in business
and economic arenas.” Claims of disrespect by western nations resonate
in Russian domestic politics, to our detriment, he warned. Therefore,
we must emphasize the positive elements of the Russian proposal and
communicate a sincere willingness to engage. An OSCE summit can help
with these aims, Galharague argued, and at the same time support
the Corfu process. A summit would need to involve at least a minimum
number of substantive issues, such as regional conflicts or the status
of conventional forces in Europe, but by agreeing to move ahead with
the summit we would put the onus back on Russia.

——————————————— —–
BALKANS: SERBS CAN’T WIN IN BOTH KOSOVO AND THE EU
——————————————— —–

¶10. (C/NF) Galharague asked that the USG work together with the EU
to discourage the Serbians from proposing a new U.N.

resolution on Kosovo, stating that Serbian Foreign Minister Jeremic
“seems to believe Serbia can win on Kosovo and win EU entry. We need
to let him know this is not true.” Right now, Galharague reported,
“the Serbs are furious with us (the French)” in response to the
demarche the GOF delivered in Belgrade in early February (reftel)
about Serbia’s possible plans for a U.N. resolution. “We delivered
the message in very forceful terms.” In fact, the Serbs interpreted
the demarche as a major change in position, Galharague reported.

PARIS 00000207 003.2 OF 004

The EU had thus far maintained the position that the issues of Kosovo
and Serbian entry into the EU were not formally linked. “There was
no formal conditionality,” Galharague said, adding that the Serbs
now understand that to be a member of the EU they must eventually
recognize Kosovo. “We told them we do not want another Cyprus,” he
explained, referring to Cyprus’ controversial EU accession in 2004
as a divided island where EU legislation remains partly “suspended”
in the northern part of the island which is outside of the government
in Nicosia’s control. Nonetheless, Galharague predicted the Serbs
will likely go ahead with the U.N. resolution in any case, and the
USG and the EU will be forced to oppose it.

¶11. (C/NF) Furthermore, Galharague asserted, before the Serbs
join the EU, they will need to resolve key issues with Kosovo in the
fields of justice, police, customs, transport, agriculture, and also
any differences over names and terminology. The best way for Serbia
to address issues related to Kosovo is by working with the European
Union Rule of Law Mission in Kosovo (EULEX). “At the end of the day,
though,” he reiterated, “Serbia must recognize Kosovo if it wants to
join the EU.”

—————————— PESSIMISTIC ABOUT THE CAUCASUS
——————————

¶12. (C/NF) The Nagorno-Karabakh negotiations appear to be at a
“dead end,” Galharague averred, adding that “Minsk (The Minsk Group)
is going nowhere fast.” He noted that the French government is not in
a position to push the Armenians at the moment because French citizens
of Armenian origin “represent about 500,000 votes” and French regional
elections will take place in March. Other factors may soon impact
the Caucasus region, he warned, such as instability in Iran.

Azerbaijan, Armenia, and Turkmenistan all have important trade
and energy ties with Iran and they could be immediately affected
by the Iran sanctions bill currently making its way through the
U.S. Congress. At the same time, the effort to impose harsher
U.N. sanctions may offer us an opportunity to further engage with
those three countries about their approach to Iran.

——————————————— —-
FUTURE USG-EU FLASHPOINTS: BOSNIA AND AFGHANISTAN
——————————————— —-

¶13. (C/NF) When assessing potential issue areas where the USG and
EU may differ during 2010, Galharague focused first on Bosnia. He
said the French are disappointed that the USG appears to have put all
plans and actions on hold pending the elections in October. Indeed,
he implied that U.S. and EU officials have differing assessments of the
need for continual engagement with the conflicting parties in Bosnia.

Bosnian parties will not make progress without unity between the
U.S. and the EU. When the Americans disengage, even temporarily,
Galharague claimed the Bosnians perceive it immediately and react
accordingly: “The Americans are giving up, so why should we do this
(make compromises)?” The USG, the Spanish EU presidency, and High
Representative Ashton should lead the charge in engaging this year —
“we need U.S.

backing now,” he urged. As a lever to press the Bosnians forward
on constitutional issues, the EU may be able to use the ruling by
the European Court of Human Rights, which declared that the Bosnian
Constitution does not conform with European human rights standards.

¶14. (C/NF) Galharague described Afghanistan as the second potential
trans-Atlantic flashpoint in 2010: “There is an emerging feeling the
war is not jointly owned and managed.”

President Obama waited eight months to make a decision and, during
that period, at no point did European opinion factor into his
deliberations, according to Galharague. DAS Boyer firmly disagreed,
citing USG consultations and discussions with French officials in
Paris and in Washington, DC.

Galharague acknowledged these discussions took place, but claimed the
question Americans posed to their European NATO allies was not “What
do you think?” but “How many troops can you put on the ground?” More
recently, he said, the USG has begun contemplating engagement with
elements of the Taliban without consulting European NATO allies. The
French would like to know, for instance, what this engagement might
mean for our future relations with Pakistan and India.

¶15. (C/NF) In purely political terms, Galharague explained that
Afghanistan has developed into a difficult issue, especially in
France. With the French death toll in Afghanistan having reached 40, he
noted, local politicians have found themselves increasingly faced with
grieving families, to whom they must explain the purpose of the war.

PARIS 00000207 004.2 OF 004

“The perception is that we’re there because the Americans are there,”
he said. “We’re not sure where we’re going and we’re not being asked or
consulted.” Initially, the majority of Europeans supported the war in
Afghanistan, invoking Article Five of the NATO Charter and committing a
“fairly high” amount of troops and resources. But now “no one knows the
purpose” of the war. “Perhaps the French government should have made
a better show of the consultations” that did take place, Galharague
admitted, “but to display them you have to have them.”

¶16. (C/NF) EMBASSY COMMENT: Galharague is not ultimately responsible
for the Afghanistan-Pakistan region, which is handled by a separate
cell within the MFA, so his comments may not reflect the views of
those who regularly engage with the USG on this issue. Notably, when
discussing public and official perceptions of the war in Afghanistan,
he made no mention of SRAP Holbrooke’s two visits to Paris in the
last three months, or post’s constant exchanges about Afghanistan
with French officials at the senior and working levels.

Galharague focused on a perception of minimal consultation, which he
admitted could persist regardless of reality. END COMMENT.

¶17. (U) ASD Vershbow and DAS Boyer have cleared this cable.

RIVKIN

From: A. Papazian

WikiLeaks; Reflexive Turkish Nationalism Ensnares Mastercard

REFLEXIVE TURKISH NATIONALISM ENSNARES MASTERCARD

http://213.251.145.96/cable/2005/06/05ISTANBUL890.html

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#05ISTANBUL890.

Reference ID Created Released Classification Origin 05ISTANBUL890
2005-06-01 11:11 2010-12-08 17:05 CONFIDENTIAL Consulate Istanbul This
record is a partial extract of the original cable. The full text of the
original cable is not available.C O N F I D E N T I A L ISTANBUL 000890

SIPDIS

DEPT FOR EUR/SE, DS/DSS/OSAC AND DS/IP/EUR ANKARA FOR RSO

E.O. 12958: DECL: 05/31/2015 TAGS: PGOV SOCI KISL ASEC TU SUBJECT:
REFLEXIVE TURKISH NATIONALISM ENSNARES MASTERCARD

This cable was coordinated with Embassy Ankara.

¶1. (SBU) Summary: After briefly basking in the reflected glow of last
week’s exciting UEFA Champion’s League Final in Istanbul between Milan
and Liverpool, corporate sponsor Mastercard has found itself dealing
with a public relations nightmare in recent days following public
criticism of inclusion in its match city guide of critical commentary
about both Turkey and its revered founder, Mustafa Kemal Ataturk. The
offending passages, first publicized in the liberal Islamist daily
“Zaman,” addressed the issue of Turkish-Kurdish relations and the
Armenian tragedy of 1915.

Mastercard briefly closed its office following death threats against
its General Manager, and has since officially apologized, noting that
the offending material had not been reviewed by any company officials,
but instead emanated from the “Lonely Planet,” which produced the
bulk of the publication. The public reaction, which has also included
calls for a boycott of the company by Turkish NGO’s and the threat of
public prosecution from the Istanbul Governor, highlights once again
how close to the surface core nationalist reflexes and taboos are in
the post-December 17th environment. End Summary.

¶2. (SBU) Shortlived Honeymoon: Mastercard officials, whose biggest
problem last week was the deluge of calls they were receiving
seeking tickets to the May 25th Milan-Liverpool match, faced a more
serious crisis on May 30 when “Zaman” newspaper published extracts
from the city guide the company distributed to its VIP guests and
journalists. In the “Lonely Planet” produced publication, which was
written by an Istanbul-based British journalist, brief reference was
made to the issue of minorities in Turkey, with sections covering both
the Kurds and the Armenians. The breezy narrative noted that “Ataturk
banned any expression of Kurdishness in an attempt at assimilation,”
adding that major battles and atrocities followed in the 1920s and
1930s, with the deaths of more than 30,000 coming since 1984. On the
equally sensitive Armenian issue, the guide noted that while most
Armenians had remained loyal to the Ottoman Empire, some had rebelled,
engaging in terrorism that set off a powerful anti-Armenian backlash
and the “widespread massacre of innocent Armenians in Istanbul and
elsewhere.”

¶3. (SBU) Harsh Reaction: The publication sparked harsh reaction from
most quarters, with Istanbul Governor Guler denouncing the “insult”
to Turkey and warning that “such a sponsorship firm needs to be more
cautious.” He added that officials would investigate the publication
and determine if it constituted a criminal offense. NGO’s were also
quick to leap on the bandwagon, with the Consumers’ Union calling
for a boycott of the company if it did not officially apologize.

Turkish sports officials also expressed disappointment with the
publication. More worryingly, anonymous callers phoned in death
threats, and nationalist groups indicated that they would organize
protests, resulting in closure of Mastercard’s office early this week
and the provision of extra security for General Manager Ozlem Imece.

¶4. (C) Damage Control: Since the story broke on May 30, Mastercard
has been engaged in damage control. In an initial announcement on May
30, the company admitted its mistake and noted it had contacted the
“Lonely Planet” to demand the removal of “erroneous information” from
the guide. When this did not quell the furor, the company went further
a day later and officially apologized. In a public statement, General
Manager Imece observed that she had not known of some of the material
that was to be included in the publication, and was “deeply shocked”
by it. Privately she has told us that the company was blind-sided by
the furor, having been focused on security for their VIP guests last
week. This, she said, was something that “no one expected.”

¶5. (C) Comment: Given the sensitivities that exist here, inclusion
of any material on topics such as Turkey’s minority policy or the
Armenian tragedy in a sporting guide was in retrospect a serious
mistake. The harsh, instinctive reaction, however, shows the heightened
sensitivities and hair-trigger nature of public discourse here since
the December 17th EU decision. Post RSO has reached out to Mastercard,
which is an active member of the OSAC Advisory Council, to ensure
that they are satisfied with the police response they have received
and to provide assistance if needed. End Comment.

ARNETT

From: A. Papazian

WikiLeaks: Azerbaijan: The Minister Of Everything Significant And Hi

WIKILEAKS: AZERBAIJAN: THE MINISTER OF EVERYTHING SIGNIFICANT AND HIS SON
BY NANORE BARSOUMIAN

ASBAREZ
Tuesday, December 14th, 2010

A U.S. Embassy cable from Baku, leaked by WikiLeaks, gives a report on
Azerbaijan~Rs Heydarov family, ~Sthe second most powerful commercial
family in Azerbaijan,~T noting the lobby efforts of Tale Heydarov,
head of the European Azerbaijan Society (TEAS), especially in regards
to Nagorno-Karabakh.

According to the cable, the Heydarov family~Rs most powerful member
is Kamaladdin Heydarov, who has been the head of the Ministry of
Emergency Situations (MES)~Wotherwise known as ~SThe Ministry of
Everything Significant~T~Wsince 2006. ~SObservers have said he might
be even more powerful than the President himself.~T

~SThe Ministry now controls the fire departments and other emergency
services, fire code inspections, state grain reserves, and construction
licensing. This last area of responsibility (perhaps the most important
for foreign entities operating in Azerbaijan) also covers building
inspectors who can interfere with, delay, or stop any construction
project they declare to be ~Sunsafe.~T In fact, MES staff have
previously warned American and other foreign businessmen that their
purview covers anything that is associated with temperature, pressure,
or isotopes ~W categories broadly interpreted to include just about
everything under the sun.~T

Heydarov has two sons, Nijat and Tale. The cable states: ~SHeydarov~Rs
son Tale is the President of the European Azerbaijan Society (TEAS),
and has made rounds to U.S. embassies in European capitals from
his London base. The ~Ssociety~T purports to be an independent
advocacy group, but its talking points very much reflect the goals
and objectives of the GOAJ [government of Azerbaijan]. In recent
meetings, Tale and his cohorts have raised ~QArmenian aggression~R
in Nagorno-Karabakh and ~Qdouble standards~R of U.S. human rights
and democracy reporting in the region, and complained about efforts
of the U.S. Congress to provide humanitarian assistance within the
Nagorno-Karabakh enclave.~T

The cable was written in February 25, 2010, by Charge d~RAffaires
Don Lu, and was classified secret. It was released by WikiLeaks on
December 6.

The complete cable can be read here.

Viewing cable 10BAKU127, AZERBAIJAN: WHO OWNS WHAT VOL. 2 – THE
MINISTER OF If you are new to these pages, please read an introduction
on the structure of a cable as well as how to discuss them with
others. See also the FAQs

Understanding cables Every cable message consists of three parts:
The top box shows each cables unique reference number, when and by
whom it originally was sent, and what its initial classification was.

The middle box contains the header information that is associated with
the cable. It includes information about the receiver(s) as well as
a general subject.

The bottom box presents the body of the cable. The opening can contain
a more specific subject, references to other cables (browse by origin
to find them) or additional comment. This is followed by the main
contents of the cable: a summary, a collection of specific topics
and a comment section.

To understand the justification used for the classification of each
cable, please use this WikiSource article as reference.

Discussing cables If you find meaningful or important information in a
cable, please link directly to its unique reference number. Linking to
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the appropriate link (to be found at theparagraph symbol). Please
mark messages for social networking services like Twitter with the
hash tags #cablegate and a hash containing the reference ID e.g.

#10BAKU127.

Reference ID Created Released Classification Origin 10BAKU127
2010-02-25 05:05 2010-12-12 21:09 SECRET Embassy Baku VZCZCXRO2618
PP RUEHDBU DE RUEHKB #0127/01 0560518 ZNY SSSSS ZZH P 250518Z FEB
10 FM AMEMBASSY BAKU TO RUEHC/SECSTATE WASHDC PRIORITY 2424 INFO
RUCNCIS/CIS COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY
3798 RUEHLO/AMEMBASSY LONDON PRIORITY 0469 RUEHSI/AMEMBASSY TBILISI
PRIORITY 1926 RUEHIT/AMCONSUL ISTANBUL PRIORITY 0210 RUCPDOC/DEPT OF
COMMERCE WASHDC PRIORITY RUEKDIA/DIA WASHDC PRIORITY RHEHNSC/NSC WASHDC
PRIORITY RUEAIIA/CIA WASHINGTON DC PRIORITY RUEATRS/DEPT OF TREASURY
WASHDC PRIORITY RUEHVEN/USMISSION USOSCE PRIORITY 1563 RUEHBS/USEU
BRUSSELS PRIORITYS E C R E T SECTION 01 OF 04 BAKU 000127

SIPDIS

COMMERCE FOR D.STARKS EEB/CBA FOR T.GILMAN DEPT PLEASE PASS TO USTR
FOR C. MORROW AND P. BURKHEAD

EO 12958 DECL: 02/24/2020 TAGS ECON, EINV, EIND, ETRD, KCOR, PINR,
PGOV, RS, KS, IR, TU, AJ

SUBJECT: AZERBAIJAN: WHO OWNS WHAT VOL. 2 – THE MINISTER OF EMERGENCY
SITUATIONS, BELUGA CAVIAR, AND FRUIT JUICE (C-RE9-02494; C-RE9-02493;
C-RE9-02492) REF: BAKU 54

Classified By: XXXXXXXXXXXX a.i., for reasons 1.4(b) and ( d).

¶1. (S) SUMMARY: This cable is the second in a series that profiles
the most powerful families in Azerbaijan, both in terms of economic and
political power. This issue features Minister of Emergency Situations
Kamaladdin Heydarov and his family. Heydarov was previously Chairman of
the State Customs Committee, and his hand-picked successor now operates
that agency, one of the most corrupt operations in Azerbaijan. The
Heydarov family, which controls a business empire in Azerbaijan
ranging from fruit juice production to real estate development, is
the second most powerful commercial family in Azerbaijan, after the
Pashayev family (into which President Aliyev married). End Summary.

The Man Behind the Power ————————

¶2. (S) Kamaladdin Heydarov is the most powerful member of this
family, and some observers have said he might be even more powerful
than the President himself. (COMMENT: Post does not believe this
is true, although Heydarov controls more visible assets and wealth
within the country than the President. End Comment.) His father,
Fattah Heydarov, is a Member of Parliament from the mountainous Qabala
district, which serves as a home base for the family outside Baku.

Fattah was Secretary of the Ordubad (and later Julfa) District Party
Committee during Soviet times, and served as Minister of the Welfare
Service of Nakhchivan from 1976 to 1978 and later as Nakhchivanâ~@~Ys
Minister of Culture from 1983 to 1995.

¶3. (S) Kamaladdin Heydarov was Chairman of the State Customs
Committee for nine years, and since 2006 has been head of the
para-military Ministry of Emergency Situations (MES), which acts as
a super-Federal Emergency Management Agency, Fire Marshall, health
and safety inspector, and overall regulator of many aspects of the
economy. Born in 1961, he holds a degree in Geology and International
Law from the Azerbaijan State University. He held executive positions
in a number of private and public enterprises prior to his appointment
at the ripe old age of 35 as Chairman of the State Customs Committee
(SCC), an agency that is notoriously corrupt, even by Azerbaijani
standards. Heydarovâ~@~Ys rise to power was partly a result of the
strong relationship between his father Fattah and former President
Heydar Aliyev (also from Nakhchivan), but also partly a result of
Heydarovâ~@~Ys strong management skills. As he gained wealth for the
ruling party, Heydar Aliyevâ~@~Ys respect for him grew, until finally
he was entrusted with the valuable role of Chairman of the SCC.

¶4. (S) The State Customs position allowed him to gain his massive
wealth, as significant illicit payments were paid â~@~up the food
chainâ~@~] in an elaborate and well-orchestrated system of payoff and
patronage. Heydarov likely still enjoys a sizeable income from the
SCC, as it is controlled by his loyal successor. When President Ilham
Aliyev appointed Heydarov as Minister of Emergency Situations in 2006,
he was replaced at the SCC by his Deputy Aydin Aliyev. Aydin Aliyev is
not related to President Aliyev, and Heydarov is Aydin Aliyevâ~@~Ys
sole benefactor, a symbiotic relationship in which Aliyev presumably
gives undying loyalty (and a hefty cut) to the powerful Heydarov in
order to retain his position. When Charge first met Heydarov in 2007,
the Minister had been in office for less than a year but had a chest
full of military ribbons that would rival the U.S. Chairman of the
Joint Chiefs. Presumably he transferred them directly from his old
State Customs uniform.

The Ministry of Everything Significant (MES)
——————————————– BAKU 00000127 002 OF 004

¶5. (SBU) The Ministry of Emergency Situations (MES) has consistently
proven itself to be one of the most powerful ministries in Azerbaijan.

It is suspected to have the largest revenue of any Ministry. It even
has its own para-military unit, consistent with other such ministries
in the CIS. Heydarov mentioned to a visiting Washington VIP in 2008
that his ministry had recently taken control of an anti-aircraft
battery near Baku in which he had served as a young conscript during
Soviet times. The Ministry now controls the fire departments and other
emergency services, fire code inspections, state grain reserves, and
construction licensing. This last area of responsibility (perhaps
the most important for foreign entities operating in Azerbaijan)
also covers building inspectors who can interfere with, delay, or
stop any construction project they declare to be â~@~unsafe.â~@~]
In fact, MES staff have previously warned American and other foreign
businessmen that their purview covers anything that is associated with
temperature, pressure, or isotopes — categories broadly interpreted
to include just about everything under the sun.

¶6. (SBU) It is often said mockingly that in Azerbaijanâ~@~Ys
judicial system, one can only win a case if one is friends with the
judge – or if introduced by Benjamin Franklin (read: significant
cash). Of course being known to the judge as politically powerful
is another path to courtroom victory. The path to certifying a
buildingâ~@~Ys safety is likely similar, and the true structural
integrity of Bakuâ~@~Ys recent construction boom is suspect. In 2007,
a multi-story high-rise under construction crashed to the ground,
killing several workers. In January 2010, three workers were killed
when they fell from a building under construction on high-rent
Neftchiler Prospect (reftel). Suspect construction is widespread
in Baku, as new, speculative real estate ventures in central Baku
(including high-rise buildings) are largely vacant, while practical
buyers bid up the prices of flats in â~@~Stalin-kaâ~@~] buildings
that pre-date independence. These older buildings, which tend to be
low-rise, are thought to have had higher construction standards and
generally be safer and more dependable.

¶7. (S) These types of market developments do not bode well for the
reputation of MES, which is widely viewed as a cash cow for Bakuâ~@~Ys
elite, and the Heydarov family in particular. If an event such as an
earthquake led to widespread destruction of property, it is assumed
that outrage would be private, rather than public, and would not
boil over into attacks on contractors or corrupt bureaucrats, as was
the case after the 1999 earthquake in Istanbul. Some less powerful
contractors would become easy targets, but the true architects of
disaster such as Heydarovâ~@~Ys MES would find a way to use its
resources and the tools of the state to escape any reprisal.

His Boys and Their Toys ———————–

¶8. (S) Kamaladdinâ~@~Ys two sons, Nijat Heydarov and Tale Heydarov,
have recently expressed a desire to purchase two Gulfstream jets,
valued at $20 million each. The family also owns an Airbus A319
corporate jet that is presently undergoing cabin completion in Basel,
Switzerland. According to initial reports, ownership of the Gulfstreams
would be shared between â~@~Shams al Sahra FZCOâ~@~] (registered
in Dubai to Tale and Nijat) and Mr. Manouchehr Ahadpur Khangah, with
Shams al Sahra and Kangah each holding 50 percent of each jet. Khangah
was not previously known to the Embassy, but according to information
from Gulfstream appears to be a citizen of both Iran and Azerbaijan
(unclear if he also holds other passports).

Purportedly as part of Patriot Act compliance, Gulfstream asked the
Heydarovs for information that would confirm the lawful sources
of their wealth. The BAKU 00000127 003 OF 004 Heydarovs provided
Gulfstream an overview of their family holdings, and it appears they
own more businesses than any other Azerbaijani family, including
companies in food canning, construction materials, concrete, asphalt,
chemicals, bricks, textiles, CD and DVD production (since licensed
CDs or DVDs are generally unavailable on the local market, these are
certainly all pirated), milk processing, tourism, gypsum materials,
leather, agriculture, pianos, alcohol and spirits, juices, banking,
insurance, and construction.

¶9. (C) One Embassy contact, XXXXXXXXXXXX referred to Khangah as the
Chief Executive Officer or â~@~front manâ~@~] of a substantial portion
of the Heydarov family conglomerate. This contact noted that while
Khangah is listed as the official owner of various businesses, they
are very much Heydarov-owned operations in which Khangah functions
more as a manager. This source added that Khangahâ~@~Ys role was
mirrored by an unnamed Turkish citizen who controls another segment
of the family businesses.

¶10. (C) Many of the family,s operations are part of the
â~@~Gilan,â~@~] â~@~Qabala,â~@~] â~@~Jala,â~@~] or â~@~United
Enterprises International (UEI)â~@~] family of companies. Gilan
Holdings is omnipresent in Baku, as the company is one of several major
real estate developers and has been in the forefront of Bakuâ~@~Ys
highly speculative real estate market. Observers compare Gilan to
Dubai World or Nakheel, although admittedly on a smaller scale. The
Heydarovs have largely cornered the fruit juice market in Azerbaijan,
maintaining extremely high prices for locally produced juices and
watered-down juice drinks, while making life difficult — with the help
of State Customs — for cheaper competitors from Turkey, Ukraine and
Russia. When USAID tried to support the production and distribution of
pomegranate products in Azerbaijan, they quickly learned that no one
sells pomegranate juice, concentrate, or derivatives from Azerbaijan
without Heydarovâ~@~Ys permission. Azerbaijanâ~@~Ys economy is largely
dominated by monopolistic interests, and observers suggest that the
Heydarovs are at the top of this mountain of non-competition. It is
rumored that the Heydarovs also have interests in the local Pepsi
bottler, the local license for Red Bull, British American Tobacco,
Japan Tobacco, and Imperial Tobacco. Heydarov has readily admitted
to visiting U.S.

delegations that he owns and operates the Caspian Fish Company which
controls the lucrative (and previously Russian Mafia-controlled)
Beluga Caviar production in Azerbaijan.

¶11. (S) The Heydarovs are also active in cultural endeavors.

Kamaladdin Heydarov is a composer and has written a song about
former President Heydar Aliyev that was sung by Azeri singer
Aghadadash Aghayev. His wife is ethnic Korean, and he himself is
quite the Koreaphile; he is President of the Azerbaijan Taekwondo
Federation and owner of the recently opened high-end Korean restaurant
â~@~Shilla.â~@~] Korean diplomats have confirmed that Heydarov was
the protector for several major business deals, but have complained
that many of these deals have gone awry after the Korean firms refused
to pay adequate patronage to Heydarov.

¶12. (C) Heydarovâ~@~Ys son Tale is the President of The European
Azerbaijan Society (TEAS), and has made rounds to U.S. embassies in
European capitals from his London base. The â~@~societyâ~@~] purports
to be an independent advocacy group, but its talking points very much
reflect the goals and objectives of the GOAJ. In recent meetings,
Tale and his cohorts have raised â~@~Armenian aggressionâ~@~] in
Nagorno-Karabakh and â~@~double standardsâ~@~] of U.S. human rights
and democracy reporting in the region, and complained about efforts
of the U.S. Congress to provide humanitarian assistance within the
Nagorno-Karabakh enclave. Tale and/or Nijat also own the Qabala
Football Club — perhaps as a small-scale effort to replicate the
Chelsea antics of Russiaâ~@~Ys Roman Abramovich. The Qabala squad is
a virtual United Nations team, with BAKU 00000127 004 OF 004 players
from across Europe, Latin America and Africa — the best team money
can buy, at least for central Azerbaijan. Both sons were educated in
London and presently live there. Tale holds a B.A. in International
Relations and History from the London School of Economics and
an M.A. in Security and Global Governance from Birkbeck College,
while Nijat holds a B.A. in Politics and East European Studies from
University College London and an M.A. in Management, Organizations,
and Governance from the London School of Economics.

Some newspapers have reported that Tale might return to Baku to become
a Member of Parliament later this year.

Itâ~@~Ys Good to Be King ——————–

¶13. (C) The familyâ~@~Ys influence is strongest in the regions of
Qabala, Masalli, and Lenkeran. Postsuspects that Heydarov continues
to control the tate Customs Committee and wield influence over the
Ministry of Taxes, the Ministry of Ecology and Natural Resources,
and Ministry of Economic Development, which is now led by a former
Ministry of Taxes official. Additionally, of course, Heydarov
profits significantly from widespread activities of the Ministry of
Emergency Situations. That ministry, according to observers, may be
the most sought after employer in official Baku, as Heydarov has made a
reputation for paying salaries on time and in full. Employees benefit
from perks of MES employment, such as the ability to enroll children
in one of Bakuâ~@~Ys best-looking and best-financed public schools.

Measures like these, contacts report, create a loyal following for
the minister among his minions.

Turf Wars: Donâ~@~Yt Cross Kamaladdin ———————————

¶14. (S) Embassy contacts note that Kamaladdin Heydarov is currently
in a â~@~fight over grainâ~@~] with Minister of Agriculture
Ismat Abbasov, and wants Abbasov replaced by Member of Parliament
Eldar Ibrahimov. Historically, those who have fought with Heydarov
have always fared poorly: Farhad Aliyev and Heydar Babayev were
(in succession) driven out as Minister of Economic Development in
part after falling on Heydarovâ~@~Ys bad side. Both were billed as
reformers, and the economic reforms they were seen to propose stood
to hurt Heydarovâ~@~Ys interests at the State Customs Committee and
the Ministry of Emergency Situations. In addition, some opposition
newspapers had begun to call them potential candidates for the position
of Prime Minister. Feeling threatened by their reform activity
and growing power, Heydarov allegedly put his foot down. Both were
removed from government and their business interests were seriously
damaged. Rumors circulated in 2009 that Heydarov may have even
been behind the assassination of Air Force Chief and Deputy Defense
Minister General Rail Rzayev. The rumors point to the widely-reported
forced landing of Heydarovâ~@~Ys helicopter after it took off without
obtaining flight clearance.

¶15. (U) The next issue of â~@~Who Owns Whatâ~@~] will profile the
family of Ziya Mammadov, the Minister of Transportation. With so much
of the nationâ~@~Ys oil wealth being poured into road construction,
the Mammadovs also control a significant source of rent-seeking. His
holdings extend to the buses that run throughout Baku. A recent
television report asked if the Mammadovs controlled mysterious
construction company ZQAN Holding; the reporter pointed out the
letters of ZQAN matched the initials of father Ziya, mother Qanira,
son Anar, and daughter Nigar. A ZQAN representative brushed this
aside as innuendo. LU

From: A. Papazian

ARF Bloc Will Not Take Part In Parliamentary Session

ARF BLOC WILL NOT TAKE PART IN PARLIAMENTARY SESSION

Asbarez
Tuesday, December 14th, 2010
YEREVAN

The parliamentary bloc of the Armenian Revolutionary Federation
announced Tuesday that it will not take part in the year-end
extraordinary legislative session, during which government initiatives
will be presented, saying the government was using the session in an
attempt to rush through important legislation.

“It is not the first instance that at the close of the year, the
government schedules an extraordinary session with a hefty agenda,”
said ARF bloc president Vahan Hovannesian. “In other words, what
they should have done during the year, they are trying to put on a
fast track.”

Hovannesian said that was unacceptable for the party, despite the
possibility of there being bills, which the ARF might support,
pending a substantive discussion and debate in parliament.

Hovannesian explained the bloc’s decision by outlining that the
short period of time, during which the bills are to be passed, does
not allow members of parliament to properly acquaint themselves with
the bill, make recommendations and allow the government to process
those suggestions.

He said, it is evident that the government will not accept any changes
and as a result the bloc has opted out of the session and is urging
other parliamentary factions to do the same. Among the 141 bills
being proposed by the government are amendments to laws regulating
construction, mining and the state pension system, as well as an
effort to push through amendments allowing the existence of private
foreign-language schools in the country-a highly controversial issue
with significant opposition.

Representatives of the Heritage Party, the other opposition party
represented in the parliament, also denounced the government but
decided not to boycott the session. “We are not sure that our boycott
would influence the hearts and minds of the parliament majority
and that they would understand that the process is not legitimate,”
Heritage’s Stepan Safarian told RFE/RL’s Armenian service.

The ARF’s concerns were also shared by some deputies from the
pro-government Prosperous Armenia Party. “I don’t welcome discussion
of very important and decisive laws in this fashion,” one of them,
Vartan Bostanjian, told RFE/RL.

From: A. Papazian

Achilles’ Heel Of Collective Defense

ACHILLES’ HEEL OF COLLECTIVE DEFENSE
BYLINE: Vladimir Mukhin

WPS Agency
Dec 13 2010
Russia

NEW FUNCTIONS OF THE CIS COLLECTIVE SECURITY TREATY ORGANIZATION:
ATTEMPT TO BOOST MILITARY COOPERATION?; Incapacitated by its own
inadequacy and recalcitrant Uzbekistan, the CSTO is not out of the
woods yet.

CIS Collective Security Treaty Organization (CSTO) summit ended in
Moscow. The summit invested in the CSTO additional powers in defense
of member states’ sovereignty and territorial integrity from both
external and internal enemies. This decision was loudly hailed in
media reports. As it turned out, however, Uzbekistan refused to sign
some crucial documents of the summit and thus invalidated them because
of the decision-making by consensus principle adopted in the CSTO.

This turn of events shows that the CSTO is no closer to being out of
the woods yet.

The impression left by CSTO leaders’ triumphant speeches was somewhat
smeared by Uzbekistan whose position turned out to be a proverbial
fly in the ointment. Uzbek President Islam Karimov announced that the
CSTO was first and foremost about defense of its member states from
external enemies and not about participation in domestic squabbles.

When Karimov returned to Tashkent, official Uzbek media outlets gave
a thorough account of his speech in Moscow.

Karimov had spoken at length of the fatality of CSTO’s involvement
in internal post-Soviet conflicts. He referred, for instance, to the
Karabakh problem and said that “… Azerbaijan and Armenia have been
unable to reach an agreement these twenty plus years.” Recalling
events in Kyrgyzstan this summer, Karimov said, “Had CSTO military
units been there as well, it would have escalated the conflict.”

Uzbekistan has always objected to all and any ideas to establish
joint forces of the CSTO. When the Collective Security Council was
meeting in Moscow on June 14, 2009, Karimov flatly refused to sign the
documents on the CSTO Fast Response Collective Forces. He said, “There
are latent conflicts on the territory of the Commonwealth. Uzbekistan
wants the CSTO out of these conflicts and demands that the documents
on the CSTO Fast Response Collective Forces mention it.” The Moscow
summit nevertheless gave the CSTO Fast Response Collective Forces
the right to interfere in the name of resolution of conflicts.

Karimov objected again, using the same arguments he had used a year
ago. In fact, it was the first CSTO summit this year that the Uzbek
president deigned to attend (he had missed the previous two). Two
years ago Karimov had told Russian President Dmitry Medvedev that it
would be nice to merge the CSTO and the Eurasian Economic Community.

The idea was considered and turned down. Uzbekistan quit the Eurasian
Economic Community then. This time, Uzbekistan all but suspended
membership in the CSTO. Karimov’s presence at the summit might be
regarded as a half-hearted effort to have other CSTO countries heed
Tashkent’s position.

All attempts to modernize the CSTO notwithstanding, the impression
is that nobody knows how to do it. Even worse, nobody is even certain
of what the principles of its functioning ought to be.

“The CSTO is in a crisis. Not even Uzbekistan’s withdrawal will resolve
the crisis… The CSTO has never demonstrated the ability to resolve
any territorial, ethnic, or other conflict in the Commonwealth,”
said Vladimir Popov, an expert in ethnic relations.

Popov recalled CSTO’s passiveness in 1990-1993 when Tajikistan was in
the grips of a political crisis fomented by the invasion of gunmen from
Afghanistan. Indeed, it was the Collective Peacekeeping Contingent
of the CIS United Headquarters that repelled the aggression and
established peace in Tajikistan then. “Neither did CSTO forces help
with resolution of the Karabakh or other conflicts in the Caucasus,”
said Popov. Here is a question then: why establish the Fast Response
Collective Forces and invest in them the police powers if it has never
performed these (or any other) functions and is unlikely to start now?

“Enlargement of the spectrum of the tasks the CSTO is empowered
to tackle promotes post-Soviet integration. In a broader sense,
it promotes Russia’s geopolitical interests. Uzbekistan wants out,
so let it,” said Academy of Geopolitical Problems Vice President
Konstantin Sivkov. “Russia does have allies, which allows it to
promote both military and military-political objectives in the
post-Soviet zone. As for the new functions of the CSTO, they will
abate the danger of new orange revolutions.” Sivkov said that Moscow
ought to reconsider its relations with allies and make an emphasis on
benefits in the military-economic relations so as to advance processes
of integration within the CSTO.

Insiders say that some CSTO delegations at the Moscow summit
suggested abandonment of decision-making by consensus. No changes in
the procedures, however, occurred. CSTO chairman-in-office Alexander
Lukashenko of Belarus reiterated after the summit that all decisions
required a consensus. “It is either a consensus or actions on the
basis of bilateral agreements,” he said.

From: A. Papazian

GPN Floated For Yerevan Metro Rehabilitation Project

GPN FLOATED FOR YEREVAN METRO REHABILITATION PROJECT

TendersInfo
December 13, 2010 Monday

General procurement notice released for Yerevan metro rehabilitation
project by Metropolitan Karen Demirchyan CJSC.

The Republic of Armenia and Metropolitan Karen Demirchyan CJSC
(Yerevan Metro Company) intend to use the proceeds of a loan from
the European Bank for Reconstruction and Development ( the Bank )
for the procurement of the following equipment:

Power supply cable and rectifiers (Supply and Installation)

Water pumps, motors, valves, connecting pipes, control panels (Supply
and Installation)

Timber sleepers, timber bearers, stock switch rails, frogs, contact
rail protection (Supply and Installation)

Small plant (tools and equipment) for track maintenance (Supply
of Goods)

Backhoe loader excavator, tipper/dumper lorry (Supply of Goods)

Tender procedure for the power supply cable contract is expected to
begin in the 4th quarter of 2010.

Contracts to be financed with the proceeds of a loan from the Bank
will be subject to the Bank’s Procurement Policies and Rules and will
be open to firms from any country.

The proceeds of the Bank’s loan will not be used for the purpose
of any payment to persons or entities, of for any import of goods,
if such payment or import is prohibited by a decision of the United
Nations Security Council taken under Chapter VII of the Charter
of the United Nations or under a law of official regulation of the
Purchaser’s country.

From: A. Papazian

Azerbaijan, Turkey Joins Hand For Producing Military Equipments Next

AZERBAIJAN, TURKEY JOINS HAND FOR PRODUCING MILITARY EQUIPMENTS NEXT YEAR

TendersInfo
December 13, 2010 Monday

Azerbaijan as well as Turkey will create a lot more military weapons
and equipment commencing with the coming year within both countries’
growing co-operation in this sphere during the past year. The 2
nations by now signed a memorandum regarding purpose a month back
to collectively manufacture a number of military equipment. Under
the agreement Azerbaijan will be importing necessary military parts
from Turkey.

Initially they will be producing infantry/attack weapons, further
to this production of ammunition and exporting military equipments
will be undertaken. For strengthening the further cooperation in the
military industry complex, Turkish and Azerbaijan delegates will be
having a talks in late Dec.

Turkey along with Azerbaijan was in addition likely to set up an arms
production company in Baku included in Turkey’s military co-operation
considering the neighboring country, which is still at war with
Armenia over the Nagorno-Karabakh clash.

From: A. Papazian

Only 6% Call Armenian Media Free – Poll

ONLY 6% CALL ARMENIAN MEDIA FREE – POLL

Interfax
Dec 13 2010
Russia

The Armenian mass media are somewhere between partially free and
constrained, Chairman of the Armenian Committee for Protection of
the Freedom of Speech Ashot Melikian said at a press conference.

“Media freedom in Armenia scores 58.64 points, which means that
the media are somewhere between partially free and unfree,” he said
in comment on a latest poll of the heads of 450 printed editions,
television and radio channels.

“Only 6% of the respondents said that the Armenian media are totally
free; while 46% said the media were partially free and 48% called it
unfree,” he said.

Pressure on the Armenian media will mount in the next two or three
years because of the parliamentary and presidential elections in
2012-2013, he said.

From: A. Papazian

Armenian Parliament To Consider Increasing Size Of Peacekeeping Grou

ARMENIAN PARLIAMENT TO CONSIDER INCREASING SIZE OF PEACEKEEPING GROUP IN AFGHANISTAN

Interfax
Dec 13 2010
Russia

The Armenian parliament will hold a special session on Monday to
discuss an extension of the Armenia-NATO agreement on the involvement
of Armenian servicemen in the International Security Assistance Force
(ISAF) in Afghanistan, Armenian Defense Ministry press secretary
David Karapetian told Interfax.

The Armenian contingent in Afghanistan will increase by five men,
he said.

“Five instructors will be added to the Armenian peacekeeping contingent
in Afghanistan for training Afghan servicemen,” he said.

The Armenian parliament ratified the agreement with NATO on December
8, 2009.

So far, there are 40 Armenian servicemen, including 36 infantrymen,
three signal corps officers and a medic, in Afghanistan.

From: A. Papazian

Women Fire At Moscow Kiosk Assistant, Steal 1,000 Rubles

WOMEN FIRE AT MOSCOW KIOSK ASSISTANT, STEAL 1,000 RUBLES

Interfax
Dec 13 2010
Russia

Women fire at Moscow kiosk assistant, steal 1,000 rubles

A native of Armenia was hurt in an attack at a street kiosk in southern
Moscow, a police source told Interfax.

Two women entered the kiosk at about 4:00 a.m. on Sunday and fired a
non-lethal round at the 24-year-old shop assistant. The women grabbed
1,000 rubles and left.

“The shop assistant was hospitalized with a shoulder and lung injury,”
the source said.

Police are studying records from a street camera.

From: A. Papazian