Vol. 3, No. 35, September 18, 2002
Politics
Foreign Minister Tokayev visits WashingtonNew global security architecture needed to tackle new threats
Action on Iraq should be Security Council-sanctioned, Tokayev says
Afghan president to visit Kazakhstan early 2003
Economy
Astana starts building new airportGovernment presents 2003 draft budgetCaspian status solution needed to turn it into zone of peace and cooperation
President Nazarbayev puts concrete over a special capsule at the start of construction works on the new airport in Astana aimed to boost transEurasian air traffic through Kazakhstan, on September 17, 2002.________________________________________________________________
DO YOU KNOW THAT...
...The geographical center of the Eurasian continent lies in eastern Kazakhstan, which puts the country at the crossroads of civilizations and transEurasian transport routes.________________________________________________________________
POLITICS
Foreign Minister Tokayev visits WashingtonDiscusses fight against terrorism, democratic reforms and economic cooperation Kazakhstan's Secretary of State and Foreign Minister Kassymzhomart Tokayev visited Washington, DC, on September 16-18 to discuss strengthening cooperation in the fight against terrorism, promoting further democratic reforms in Kazakhstan and expanding bilateral economic partnership in meetings at the White House and the State Department. Mr. Tokayev also met with Congressional leaders, and addressed the Congressional Black Caucus special meeting on Wednesday.The United States expressed gratitude to Kazakhstan for its support in the war against terrorism, Mr. Tokayev told Kazakh reporters on Wednesday after his meetings with Secretary of State Colin Powell in New York last week, and National Security Advisor Condoleezza Rice and Deputy Secretary of State Richard Armitage on September 18.Mr. Tokayev said Kazakhstan is firmly committed to providing all the necessary assistance in this fight. Currently, Kazakhstan provides a major international airport for the U.S. aircraft to use in emergency situations and overflight rights, Mr. Tokayev noted. So far, more than 1,000 military aircraft flew over the republic as part of Operation Enduring Freedom. The U.S. is counting on Kazakhstan as "a pillar of stability" in the region and beyond, the U.S. officials said at the meetings in Washington. The diplomats of two countries stressed the importance of the continued support for further democratic reforms in Kazakhstan. Expanding bilateral energy cooperation became another important subject during the talks. The Kazakhstan and U.S. officials discussed the role American companies could play in the upcoming offering of scores of offshore blocks in Kazakhstan's sector of the Caspian Sea, as well as ways to ensure the diversified export routes for its energy resources. Mr. Tokayev confirmed Kazakhstan's support for the Aktau-Baku-Tbilisi-Ceyhan pipeline system. The construction of the Baku-Tbilisi-Ceyhan pipeline officially began with the ceremony in Baku on September 18. Oil experts believe Kazakhstan's huge oil reserves will be key for the success of that project. New global security architecture needed to tackle new threatsTokayev calls for world to address drug business in Afghanistan as main source of terrorism financingThe mankind has so far failed to address its long-term illnesses, such as poverty, pollution, diseases and crime, Kazakhstan's Foreign Minister Kassymzhomart Tokayev said in his address to the 57th UN General Assembly on September 14. This created a breeding ground for the spread of such dangerous phenomena as terrorism and drug-trafficking, religious extremism and illegal arms trade, he said."The community of nations faces the most pressing task of creating a new global security architecture on the basis of multi-polar world and of finding mechanisms for overcoming contradictions of modern economic and political development," Mr. Tokayev said.In his speech, Mr. Tokayev pledged Kazakhstan's continuous support for the peacemaking and post-conflict restoration efforts in Afghanistan under the UN auspices, but warned of serious dangers of drug business emanating from that country. He said drug business provides "main financial basis for the international terrorism".Action on Iraq should be Security Council-sanctioned, Tokayev says"Irrefutable evidence" of Iraq's possession of weapons of mass destruction neededKazakhstan believes that the United States can use military force against Iraq only if it is proven beyond doubt that that country possesses nuclear or other weapons of mass destruction, Secretary of State - Foreign Minister Kassymzhomart Tokayev said in a Khabar TV interview while in New York for the 57th UN General Assembly."President Bush called for the quick adoption of a strong resolution in relation to Iraq. Kazakhstan will participate in the work of relevant groups and committees, but we believe that the decision on the use of force against one of the UN members should be made by the UN Security Council," said Mr. Tokayev, who also met Secretary of State Colin Powell on September 13."We believe that only the irrefutable evidence of [that country's] possession of deadly weapons and of [its] actions aimed at overthrowing the existing political and economic order in the world, can serve as a basis for adopting the use-of-force resolution," he noted.Afghan president to visit Kazakhstan early 2003Thanks republic for assistance Afghanistan's President Hamid Karzai will visit Kazakhstan early 2003 at the invitation of President Nursultan Nazarbayev. Foreign Minister Tokayev handed the official invitation to Mr. Karzai at the 57th UN General Assembly session in New York last week. "The two sides discussed security and stability problems in Afghanistan and the region. They considered greater involvement of the international community in the social, economic and humanitarian restoration of Afghanistan," the Kazakhstan Foreign Ministry said on Tuesday. In his turn, President Karzai thanked Kazakhstan for the assistance to his country and expressed hope for further expansion of bilateral cooperation. Kazakhstan has provided 3,000 tons of grain in humanitarian assistance to the Afghan people and pledged to participate fully in restoration efforts in that country. Astana plans to open its diplomatic mission in Kabul early next year.ECONOMY
Astana starts building new airportKazakhstan aims to become efficient international transit routePresident Nursultan Nazarbayev on September 17 took part in a capsule-laying ceremony marking the beginning of the construction of a new airport in Astana, Kazakhstan's capital for the past 5 years."This airport will reshape our city, and it will meet all world standards," Nazarbayev said at the ceremony. An international consortium that includes Siemens, British-based John Laing company, Marubeni of Japan, and the Turkish construction company Alsim Alarco, will build the airport. It is to be completed by the end of 2004.The 35 billion tenge ($226 million) dollar project will be one-third financed by the government and two-thirds financed through a loan from Japanese International Development Bank. The project envisages the construction of two terminals, one passenger and one cargo, as well as the renovation of the existing runway of the 70-year-old airport. The reconstruction of the capital's airport is only the first project of its kind and will lead to more as Kazakhstan intends to benefit from its geographic position, Minister of Transport and Communications Kazhmurat Nagmanov told the press conference the same day. Foreign air carriers, operating between Europe and Asia, will find it very economically feasible to use Kazakhstan for transit, he said. It is believed that the flying time between Europe and the Asia Pacific region may be cut by two hours when Astana becomes a popular aviation hub. In the near future, a number of other airports will be reconstructed to better serve transit routes, the minister added.Government presents 2003 draft budgetProjects large spending increases for education, healthcare, culture and industryThe Kazakhstan government on September 13 officially submitted to the Parliament a draft budget for the year 2003. Budget revenues are planned to reach 621,6 billion tenge (current exchange rate$1=KZT154.45), or 15 percent of the republic's GDP.According to the Prime Minister's press service, Prime Minister Tasmagambetov called the budget "realistic" and emphasized that, due to the steady growth of Kazakhstan's economy, it provides increased spending on social development.Projected spending for education will increase in 2003 by 33.2% compared to this year, and spending for healthcare and cultural projects will increase by 38.3% and 24.8%, respectively. Mr. Tasmagambetov also announced that the draft budget includes a 12% increase in state pension allowances requested by the president and compensation for individual deposits in the state savings bank evaporated during the economic crisis of 1990-1991."Investments in industry and construction will increase by a significant 79.2%, and investments in the transport and communication sectors will increase by 13.9%," Mr. Tasmagambetov said.The state budget deficit is estimated at 2% of total GDP, or KZT 82.8 B. Consumer prices in 2003 are expected to rise by 5.9%, while the tenge-dollar exchange rate is expected to stand stable at KZT 161.Caspian status solution needed to turn it into zone of peace and cooperationKazakhstan will work to ensure favorable investment climate"The lack of consensus of five littoral states concerning the Caspian Sea's legal status seriously undermine prospects of its turning into a zone of peace and true cooperation", Foreign Minister Kassymzhomart Tokayev said at the UN in New York on September 14. The agenda includes the issues of ensuring unfettered seafaring, protecting biodiversity and environment, as well as the issue of demilitarization. "Kazakhstan consistently advocates for the continued work to prepare multiparty Convention" on the sea's legal status based on the consensus of the five littoral nations. These include Azerbaijan, Iran, Kazakhstan, Russia, and Turkmenistan. Mr. Tokayev said the agreements between Kazakhstan with Russia on delimiting the northern part of the sea, signed in 1998 and in 2002, in the meantime, became a "breakthrough" in the protracted process of settling the issue of the Caspian. "These important agreements give "green light" to foreign investment into developing the richest reserves of the Kazakhstan's sector of the sea, which will help propel our country into the group of the world's leading hydrocarbons producers," the foreign minister added.These agreements already allowed U.S. and other international oil corporations, such as ExxonMobil and Phillips Petroleum, to invest dozens of millions U.S. dollars into Kazakhstan's promising offshore oil exploration and development. In June 2002, an international consortium that includes these two companies and develops giant Kashagan offshore field in the Kazakhstan's sector announced the commercial discovery at the field of 7 to 9 billion barrels of recoverable reserves. Though these estimates are conservative, they still make the field the largest oil find in the world in the past 30 years.Mr. Tokayev also said the Government intends "to continue work with international financial institutions and companies to ensure favorable investment climate in Kazakhstan". * * *For more news and information visit us at www.kazakhstan-embassy-us.org
News Bulletin of the Embassy of the Republic of Kazakhstan
(Compiled from own sources and various agencies' reports)
Contact persons: Roman Vassilenko, Aibek Nurbalin
Tel.: (202) 232- 5488 ext. 104, 115
Fax: (202) 232- 5845
