Daily Archives: July 21, 2008

08MOSCOW2095, RUSSIA COMMENTS ON IAEA BOG MESA SEAT

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Reference ID Created Released Classification Origin
08MOSCOW2095 2008-07-21 15:05 2011-08-30 01:44 SECRET Embassy Moscow

VZCZCXRO2383
OO RUEHFL RUEHKW RUEHLA RUEHROV
DE RUEHMO #2095 2031505
ZNY SSSSS ZZH
O 211505Z JUL 08 ZDK
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9114
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY
RUEHII/VIENNA IAEA POSTS COLLECTIVE PRIORITY

S E C R E T MOSCOW 002095 
 
SIPDIS 
 
E.O. 12958: DECL: 07/22/2018 
TAGS: IAEA KNNP PREL KZ SY AORC RS
SUBJECT: RUSSIA COMMENTS ON IAEA BOG MESA SEAT 
 
REF: STATE 76661 
 
Classified By: EST Acting Counselor Kristina Kvien for reasons 1.4 (b a 
nd d) 
 
(S)  On July 18 we delivered reftel points encouraging Russia 
to support Kazakhstan to formally compete for the open IAEA 
Board of Governors seat to MFA Department for Disarmament and 
Security Affairs Nuclear Affairs Officer Alexander Trofimov. 
Trofimov said he was aware that Syria is the only candidate 
and personally agreed that, given the ongoing IAEA 
investigation, Syria would be a poor candidate.  He said the 
GOR has no formal position at this time, but promised to get 
back to us with a response next week. 
BEYRLE

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08MOSCOW2094, GEORGIA: STEINMEIER FAILS TO GET RUSSIAN SUPPORT

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Reference ID Created Released Classification Origin
08MOSCOW2094 2008-07-21 14:20 2011-08-30 01:44 CONFIDENTIAL Embassy Moscow

VZCZCXYZ0000
OO RUEHWEB

DE RUEHMO #2094/01 2031420
ZNY CCCCC ZZH
O 211420Z JUL 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9112
INFO RUEHXD/MOSCOW POLITICAL COLLECTIVE IMMEDIATE
RUEHZG/NATO EU COLLECTIVE IMMEDIATE

C O N F I D E N T I A L MOSCOW 002094 
 
SIPDIS 
 
E.O. 12958: DECL: 07/21/2018 
TAGS: PREL PGOV GG RS
SUBJECT: GEORGIA:  STEINMEIER FAILS TO GET RUSSIAN SUPPORT 
FOR DIRECT TALKS, BUT RUSSIA DOES NOT RULE THEM OUT 
 
Classified By: Political Minister-Counselor Alice G. Wells. 
Reasons 1.4(b) and (d) 
 
1. (C) Summary.  Despite FM Lavrov's positive press spin 
about German FM Steinmeier's meetings in Moscow July 18, 
German colleagues characterized the trip as a "failure," and 
said Steinmeier made no progress in securing Russian support 
for direct Georgian-Abkhaz negotiations on security issues in 
Berlin at the end of the month.  MFA told us July 21 that 
Lavrov and Steinmeier had agreed that, within the framework 
of the Group of Friends, the first step would be to get 
agreement on a UNSC Presidential Statement.  Such a Statement 
would be a "good basis" for further work of the Friends, 
including the possibility of a meeting later in the summer in 
Berlin with the Georgians and Abkhazians to sign a non-use of 
force pledge.  The MFA reiterated to us that Russia's 
position had not changed: such a pledge, together with 
withdrawal of Georgian forces from Kodori, were necessary 
first steps, without preconditions.  End summary. 
 
MFA Spins Visit Positively 
-------------------------- 
 
2. (SBU) Following Steinmeier's visit, the MFA issued a 
relatively positive statement saying that the German proposal 
was "well-intentioned," and would be discussed further within 
the Friends' group.  Lavrov asserted that the plan began with 
the "absolute priority items" of signing of a non-use of 
force agreement, and withdrawal of troops from Kodori.  A 
subsequent press announcement underscored that these "first 
elements" needed to be achieved "in internationally 
recognized formats," reaffirmed Russian appreciation for 
German efforts, and called for resumption of talks in the 
Joint Consultative Commission as the only channel for 
discussing resolution of South Ossetia.  A statement on 
Medvedev's site also underscored that a no-first use pledge 
and withdrawal from Kodori would open up other steps in the 
negotiating process. 
 
Germans Say Reality Much More Negative 
-------------------------------------- 
 
3. (SBU) German colleagues told us that following a "polite 
Georgian rebuff" in Tbilisi and a "rude Bagapsh reception" 
(the latter of which Steinmeier characterized as 
"fruitless"), Steinmeier had pressed Lavrov and Medvedev to 
support the proposed Berlin meeting at the working level. 
Lavrov told Steinmeier the initiative would fail.  While 
praising the last Friends' meeting, Lavrov said the basic 
problem was that Georgia did not keep its promises, and cited 
the "agreement" between Medvedev and Saakashvili in St. 
Petersburg on a basic exit strategy for Abkhazia -- the need 
for dialogue, withdrawal from Kodori, and signing of a 
non-use of force pledge.  Lavrov complained that "nothing 
happened."  Two subsequent phone calls resulted in the 
agreement for Medvedev and Saakashvili to meet in Sochi, but 
Lavrov again charged Saakashvili with not being prepared to 
fulfill his promise.  The meeting in Berlin, Lavrov stressed, 
would be in "complete contradiction" to the higher-level 
Medvedev-Saakashvili initiative.  Lavrov also reiterated 
Russian objections to elevating the return of IDPs to the 
same level as the security issue; rejected Georgian claims of 
500,000 IDPs; and resurrected purported Shevardnadze 
statements to Russia that all the refugees that wanted to 
return had done so. 
 
4. (SBU) German colleagues told us that Lavrov also 
complained that Russia's initiative had not received support 
in New York, and reiterated that the GOR was talking directly 
to Saakashvili and had its own proposals in play.  Lavrov was 
irritated by U.S. "roadblocks," including insistence on 
linking IDPs and security; downplaying of Kodori, and belief 
that the security situation there was "under control"; and 
push for a NATO Membership Action Plan for Georgia. 
Medvedev's message was the same, German colleagues said. 
 
MFA Presses for New York Action 
------------------------------- 
 
5. (C) MFA CIS Deputy Director Semyon Grigoriev told us July 
21 that Steinmeier had told Lavrov he had not expected the 
effort to get agreement to the German plan to be so 
difficult.  He had encountered "completely conflicting" 
positions in Tbilisi and Sukhumi.  Georgia had insisted on 
return of refugees and IDPs, whereas Abkhazia had refused to 
accept such return, and had pressed for a non-use of force 
pledge and full withdrawal of Georgian forces from Kodori 
without preconditions. 
 
6. (C) Grigoriev said Russia had not rejected Germany's 
three-stage proposal.  Lavrov supported it "strategically," 
but believed that "tactically," the first step needed to be 
unity of the Friends' group, as evidenced by a Presidential 
Statement in the UN Security Council.   Grigoriev said Lavrov 
and Steinmeier had agreed to seek such a Statement.  The GOR 
saw it as a good basis for further work of the Friends, 
including a possible meeting of the Friends, Georgia, and 
Abkhazia in Berlin to sign a non-use of force pledge later in 
the summer.  Grigoriev said such a UNSC Statement should be &#
x000A;agreed by the Friends, but did not need Georgian or Abkhazian 
approval first.  Grigoriev reiterated that Russia's position 
remained unchanged:  non-use of force pledge and withdrawal 
of forces from Kodori had to precede other possible steps. 
 
Comment 
------- 
 
7. (C) German colleagues believe the more positive spin in 
the MFA statement was designed to support Steinmeier 
personally, rather than indicate support for the plan, with 
the GOR preferring the Abkhaz and Georgians to take the 
public fall for complicating the German diplomatic 
initiative. 
 
BEYRLE

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08MOSCOW2093, ISTC Governing Board Meeting in Moscow

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Reference ID Created Released Classification Origin
08MOSCOW2093 2008-07-21 14:15 2011-08-30 01:44 UNCLASSIFIED Embassy Moscow

VZCZCXRO2548
RR RUEHAST
DE RUEHMO #2093/01 2031415
ZNR UUUUU ZZH
R 211415Z JUL 08
FM AMEMBASSY MOSCOW
TO RUEHC/SECSTATE WASHDC 9110
INFO RUEHTA/AMEMBASSY ASTANA 0176
RUEHEK/AMEMBASSY BISHKEK 2588
RUEHDBU/AMEMBASSY DUSHANBE 0071
RUEHKV/AMEMBASSY KYIV 0272
RUEHVL/AMEMBASSY VILNIUS 3152
RUEHNY/AMEMBASSY OSLO 1728
RUEHOT/AMEMBASSY OTTAWA 2106
RUEHUL/AMEMBASSY SEOUL 2740
RUEHSI/AMEMBASSY TBILISI 3871
RUEHKO/AMEMBASSY TOKYO 4184
RUEHYE/AMEMBASSY YEREVAN 0514
RUEHBS/USEU BRUSSELS
RUEHAST/USO ALMATY 0005
RUEKJCS/SECDEF WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHDC

UNCLAS SECTION 01 OF 02 MOSCOW 002093 
 
SIPDIS 
 
DEPARTMENT FOR ISN/CTR 
 
VILNIUS PLEASE PASS TO EMBASSY MINSK 
 
E.O. 12958: N/A 
TAGS: KNNP PARM TSPL RS
SUBJECT: ISTC Governing Board Meeting in Moscow 
 
1. SUMMARY: At the International Science and Technology Center 
(ISTC) Coordinating Committee (CC) and Governing Board (GB) meetings 
held in Moscow July 16-17, 2008, the GB approved funding for the 
first pilot institute self-sustainability plan.  This marked an 
important milestone in ensuring that priority Weapons of Mass 
Destruction (WMD) institutes become financially self-sustainable. 
All parties agreed to press for the Russian Federation to confirm 
the tax-free status of the ISTC.  Many long-standing issues were 
also resolved as the parties worked together to reach agreement on 
documents relating to export control, value-added tax (VAT) 
repayment, tax exemption, daily rates paid to scientists on regular 
projects, and procurement.  During the Executive Session 
discussions, the parties agreed to begin negotiations on a plan to 
gain Russian financial contributions to the Center at the next 
Governing Board meeting in December. END SUMMARY. 
 
2. Tax Issue:  The parties discussed the issue of Russian repayment 
of VAT to the ISTC and the recent Russian decree listing 
organizations exempt from tax payments on grants.  The GB agreed to 
send a letter to the Russian Federation on the issue. The ISTC will 
continue to attempt to reclaim VAT paid in recent years and will 
explore taking legal action against the Russian Federation if VAT is 
not repaid in a reasonable amount of time. 
 
3. Russian Contributions:  The U.S. Party, with the strong support 
of the Japanese and Canadians, stressed the importance of host-state 
(Russian) co-funding to ensure continuing support for the ISTC from 
funding parties. The U.S. explained that its Congressional hearings 
on the Department of Energy's scientist redirection program had been 
very clear on the need for increased cost sharing.  The Japanese, 
Canadian, and the European Union (EU) delegation also expressed 
support for increased Russian contributions.  The EU noted that the 
Russian Academy of Sciences has recently expressed interest in joint 
funding in the EU Framework Program.  The Russian Party repeated its 
previous position that it makes in-kind contributions by providing 
the ISTC building and general support for the Russian institutes at 
which the vast majority of ISTC projects are conducted.  (COMMENT: 
While the funding parties agree that these in-kind contributions 
should be counted towards any cost-sharing agreement, the USG view 
is that a significantly larger financial contribution is required to 
make Russia a true partner and to ensure the Center's long-term 
success.  The ISTC's annual budget is approximately $100 million 
and, at most, these Russian in-kind contributions amount to less 
than $4 million. END COMMENT)  The parties agreed that the issue 
would be formally discussed at the next GB and that the ISTC 
Secretariat would prepare a paper on the issue. 
 
4. Institute Self-Sustainability:  The funding parties agreed to 
provide $500,000 to fund the first pilot institute 
self-sustainability plan at the V. G. Khlopin Radium Institute.  The 
parties discussed the correct maximum size of sustainability plans, 
but there was no consensus on U.S. and Japanese proposals to cap 
self-sustainability plans at $500,000. 
 
5. Daily Rates:  The parties agreed to raise the daily rates paid to 
scientists on projects both in Russia and the Commonwealth of 
Independent States (CIS) countries, with the maximum daily rate of 
$70 for project managers.  The new daily rates will be applied to 
projects funded at future Governing Board funding sessions. 
 
6. Export Control: After a discussion that included a senior Russian 
representative from the Federal Service for Technical and Export 
Controls, it was agreed that the Secretariat and the Russian 
Federation would continue bilateral discussions before proposing 
another document for GB approval on export control, including the 
issue of assurances from end users of technology developed during 
the course of ISTC-funded projects.  The parties also agreed that 
all ISTC activities should strictly conform to Russian and 
international export control laws. 
 
7. Procurement:  In response to Deloitte & Touche's recommendations 
for improving procurement practices at the Center, the Secretariat 
had submitted a set of procurement rules to the CC meeting.  The 
 
MOSCOW 00002093  002 OF 002 
 
 
funding parties finally reached agreement on procurement rules after 
a year of discussions and asked that these new rules be applied to 
the procurement of equipment, materials, and services beginning 
August 1, 2008. 
 
8. Project Funding:  The U.S. committed $168,000 in r
egular project 
co-funding for ISTC Regular Project No. 3849 "Low-Waste 
Decontamination." 
 
9. Other Items:  The GB approved the nomination of Ms. Anneli Pauli 
as the new EU Governing Board Member.  The GB welcomed the new 
Japanese Deputy Executive Director Mr. Yasuhiro Yukimatsu.  Also, 
this GB is the first for Adriaan van der Meer as ISTC Executive 
Director. 
 
10. Next GB Meeting:  The next GB meeting will be held in Moscow on 
11 December 2008. 
 
BEYRLE

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