US embassy cable - 05MINSK859

UNCLAS SECTION 01 OF 04 MINSK 000859 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV, PHUM, ECON, BO 
SUBJECT: EMBASSY MINSK WEEKLY REPORT - July 27, 2005 
 
1.  The following are brief items of interest compiled 
by Embassy Minsk over the past week. 
 
 
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Political Developments 
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2.  No Election Observation 
 
On July 21, Secretary of the Central Elections 
Commission Nikolai Lozovik stated the Belarus does not 
want international observers at elections because they 
base their conclusions on the outcome of the vote rather 
than on the process.  He referred to elections in the 
Ukraine and Kyrgyzstan, claiming that observers changed 
their stance two days after Bakiyev's election because 
they disagreed with his policies.  Lozovik expressed 
puzzlement at Azerbaijan's agreement to allow the U.S. 
to conduct exit polls in November parliamentary 
elections, saying "it's only in a mouse trap that one 
can find free cheese.  If someone gives you aid, you 
should think about the goals pursued by the sponsor". 
 
3.  Constitutional Elections. 
 
On July 22, Secretary of the Central Elections 
Commission Nikolai Lozovik announced that the 
presidential election would take place no later than 
July 19, 2006 in accordance with the constitution.  The 
actual date will be decided by April 19.  Lozovik added 
that turnout would be better in a summer or autumn 
election. 
 
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Human Rights 
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4.  New Social Democratic Leader, Maybe 
 
During a July 25 meeting, the Social Democratic Party 
confirmed former rector of Belarusian State University 
Alexander Kozulin as the new party chairman.  Former 
party chairman Anatoli Levkovich will be first deputy. 
The party finished voting before police evacuated the 
building, citing an alleged bomb threat.  Deputy 
chairman of the party, Vladimir Nistyuk, fears that 
authorities would not recognize Kozulin as party leader. 
In this case, former leader Levkovich would continue as 
formal chairman, but Kozulin would actually lead the 
party. 
 
5.  Labor Union Gets Full Power 
 
On July 20, a new Lukashenko decree gave the pro- 
government Belarusian Trade Union Federation (BTUF) 
power to conduct legal and technical inspections of 
commercial entities even if there are no trade union 
member employees on the staff.  The decree allows the 
BTUF to "provide additional protection of labor, social 
and economic rights and interests of all working 
Belarusians". 
 
6.  Property Seized 
 
On July 19, the GOB seized USD 312 worth of property 
from the home of sports newspaper editor Vladzimir 
Berazhkov.  Minsk Tsentralny district court fined 
Berazhkov USD 4,650 earlier this year in response to a 
libel suit against his Pressbol newspaper.  He did not 
have the sum, and police seized USD 149 worth of 
property in March.  [Note: as reported last week, 
Berazhkov was convicted of libel, even though his 
reporting was accurate.] 
 
7.  Youths Arrested 
 
On July 21, police arrested eight youths protesting 
Lukashenko's 11th year as president, his policies, and 
the imprisonment of opposition politicians.  The 
demonstrators carried images of several jailed 
politicians and held a banner reading "Freedom to 
political prisoners".  They also distributed 
unregistered bulletins about the country's political 
situation and the fate of the opposition. 
 
8.  Extended Detention 
 
On July 26, the Prosecutor General's Office extended 
opposition activist Sergei Skrebets' pre-trial detention 
until August 27 to prevent him from "illegally 
 
MINSK 00000859  002 OF 004 
 
 
influencing people involved in the case."  Skrebets is 
now eating after his 40-day hunger strike and his health 
condition is normal.  Skrebets claims that the bribery 
and embezzlement charges against him are politically 
motivated. 
 
9.  Accusations Withdrawn 
 
On July 22, Pervamayski district court threw out the 
slander charges against opposition politician Andrei 
Klimov.  In April, Klimov was charged with slandering 
Lukashenko is three books, but the judge ruled Klimov's 
actions were not socially dangerous.  In June, the court 
sentenced Klimov to three years of corrective labor for 
organizing a protest action in March, but Klimov remains 
free on appeal. 
 
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Economics 
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10.  Widespread Tax Crime 
 
On July 26, the Tax Ministry reported that in H1 2005, 
62.7 percent of inspected companies and 64 percent of 
individual entrepreneurs broke tax laws.  The ministry 
fined over 3,000 people a total of USD 934,804 for 
violating alcohol and tobacco regulations and filed four 
criminal cases.  Control purchase measures yielded USD 
224,054 of overdue taxes and fines and USD 558,393 worth 
of confiscated property.  Almost 2,000 people face 
administrative prosecution and fines totaling USD 
514,216. 
 
11.  Official Punishment 
 
On July 26, vice-premier Andrei Kobyakov suggested 
punishing officials whose "passiveness and inactivity" 
resulted in failure to reach H1 investment targets.  H1 
capital investments totaled USD 2,522.  Belarusian 
Railways, the State Aviation Committee, Belneftekhim, 
Bellegprom, Belgospischeprom and Belbiopharm all failed 
to meet their targets.  Kobyakov blamed banks' 
unwillingness to credit companies as one reason behind 
investment failure. 
 
12.  Belarus Fails 
 
On July 27, the Economy Ministry announced that state 
budget proceeds from selling and renting out state 
property only met 55.5 percent of the target for January 
- June.  The GOB hopes to gain USD 167 million from 
privatization in 2005.  This is the first year in which 
the fund-raising requirements are evenly distributed 
amongst all ministries, not just the Economy Ministry. 
In 2004, the GOB fulfilled only 3 percent of its USD 47 
million target for revenues from property sales. 
 
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Education 
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13.  School Admission Rules 
 
On July 25, Lukashenko requested the government write a 
presidential edict on admission procedures to higher 
learning institutes.  Head of the State Control 
Committee Anatoli Tozik briefed Lukashenko on the 
summer's university admission process, as well as on an 
audit of the Grodno regional government, inspections of 
private clinics, and employment centers and wage delays 
at state and private companies.  Lukashenko reiterated 
the necessity of punctual wage, pension and student 
allowance payments, while instructing the SCC to 
continue examining the quality and costs of health 
services. 
 
14.  Foreign Education Handbook 
 
On July 21, a handbook about foreign universities was 
published for students in Belarus.  The book includes 
information about education systems and universities in 
the US, Canada and 12 European countries.  It also 
contains a preface warning that "Emigrating and turning 
into a Canadian, American or German worker is the worst 
thing that may happen to our compatriots there... the 
most advanced people come back home after graduating 
from Oxford and Princeton". 
 
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Anti-US 
 
MINSK 00000859  003 OF 004 
 
 
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15.  Information Warfare 
 
On July 25, Alexander Busko of the military newspaper Vo 
Slavu Rodiny wrote an article describing the USG's 
information war against Belarus.  The US discredits "the 
enemy in the eyes of the international community", just 
as it did against Iraq and Yugoslavia. 
 
16.  US Causes Pole Conflict 
 
On July 25, state television channel ONT broadcast that 
the US and Poland are forming a closer union.  Reporter 
Ruslan Poddubski asserted that the US is trying to drive 
apart Belarus and Poland by using the Union of 
Belarusian Poles.  Apparently, the USG will not succeed, 
as Belarusians have always been friends with Poles and 
no external force will change that. 
 
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Miscellaneous 
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17.  Visa-Free to Syria 
 
On July 25, Lukashenko approved a draft agreement with 
Syria to allow bilateral, visa-free travel for holders 
of diplomatic, official and special passports.  The 
measure would expand bilateral contacts and ease travel 
formalities for nationals of Belarus and Syria. 
 
18.  Belarus Least Corrupt of CIS 
 
On July 20, Ivan Ivanov, head of the International 
Finance Corporation in Belarus, announced that relations 
between small and medium businesses and state bodies in 
Belarus are the least corrupt in the CIS.  Corruption 
includes all additional payments needed to register a 
business, which is lower in Belarus than in other CIS 
states.  In 2004, it cost USD 736 to open a business, 
excluding unofficial money paid to state officials. 
Corruption levels were highest in Azerbaijan.  Only in 
Belarus did levels rise in comparison to 2003.  Ivanov 
blames this on a lack of coordination and complexity in 
Belarusian laws. 
 
19.  Spying Poles Banned 
 
On July 22, the MFA announced its ban on a Warsaw-based 
Polish foundation, Dialogue, that promotes cooperation 
between European researchers.  According to the MFA, the 
foundation was a cover for spying activities on CIS 
territories "under the guise of merely scientific 
interests".  News reports said that the organization 
tried to recruit Belarusian researchers with access to 
classified information and that Polish embassy officers 
were also involved in espionage. 
 
20.  Labor Ministry Inspection 
 
On July 22, the Labor Ministry publicized the results of 
7,000 inspections of organizations and enterprises 
conducted from January to June.  The Ministry found 
164,000 violations of occupational safety rules, closed 
23 workshops and removed 10,000 machines from service. 
They also fined 5,500 managers a total of USD 93,250 for 
failure to enforce occupational safety standards and 
charged 31 with criminal offences.  Inspections of 3,500 
small businesses revealed 39,000 violations resulting in 
1,500 fines. 
 
21.  Iranian Cars 
 
On July 26, Speaker of the Lower Chamber of Parliament 
Vladimir Konoplev met with Abdol Rakhman Galambor of 
Iran Khodro Company about the establishment of Iranian 
car production facilities in Belarus.  Iran Khodro, the 
largest carmaker in the Middle East, wants to set up a 
joint venture with Belarusian Unison CJSC to produce 
2,000 to 3,000 cars annually. 
 
22.  Belarusian Seaport 
 
On July 27, Lukashenko announced that Russia will allow 
Belarus to build its own seaport in Kaliningrad and to 
redirect the majority of its freight traffic there. 
Currently, Belarusian cargo passes through Russia, the 
Ukraine and the Baltics. 
 
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MINSK 00000859  004 OF 004 
 
 
Quote of the Week 
----------------- 
 
23.  On July 26, Lukashenko blamed the U.S. for 
instigating the conflict between Belarus and Poland: 
 
" The Belarusian Poles will not be cannon fodder for 
Washington or Warsaw nor will we let Belarusian Poles be 
some puppets on a string. I warn you: I will protect the 
nation with all constitutional means available. 
Nobody's happy about America's policy in Europe.  One 
empire, one center is willing to control all its rivals 
- China, Europe and Russia.  Poland is like a bone stuck 
in Europe's throat.  Belarus is the bone in the throat 
of America." 
 
KROL