US embassy cable - 05DUSHANBE1878

UNCLAS  DUSHANBE 001878 
 
SIPDIS 
 
 
E.O. 12958: N/A 
TAGS: PGOV, ECON, EAGR, TI, Economics and Trade 
SUBJECT: EVERYTHING'S COMING UP COTTON IN TURSONZODA, TAJIKISTAN 
 
 
1.  In a series of meetings November 25, government officials, 
farmers and a businessman were universally--and surprisingly-- 
positive about the economic and political situation in 
Tursonzoda.  The Dushanbe-appointed Chairman of the City 
Administration Barakatullo Akhmedov emphasized there were "no 
real problems" in the city or district, and demurred to discuss 
all but the most benign issues. 
 
2.  Located 53 kilometers west of Dushanbe, Tursonzoda does 
enjoy higher rates of employment and consistent electricity, 
unlike many other Tajik cities, thanks to Central Asia's only 
aluminum smelter, TadAZ.  TadAZ is a cash cow that the 
government makes sure has sufficient power, with a nice 
spillover effect for Tursonzoda.  Akhmedov told Poloff 90 
percent of district homes have running water (despite Poloff 
observing people carrying water buckets in the streets.) 
Although nationally, Tajikistan's cotton harvest appears to be 
well below anticipated yields, in Tursonzoda, Akhmedov claimed 
they reached at least 90 percent of the expected harvest. 
Residents from three border districts freely enter and exit 
Uzbekistan with no problems.  The central government provides 
Tursonzoda with adequate funds for schools.  "We are 
normalizing," Akhmedov noted.  "Tajikistan is a young democracy, 
but look how fast we are catching up!"  He cited the 
proliferation of mobile phones and the thriving small markets as 
examples of economic progress. 
 
3.  (COMMENT: Local Embassy staff noted that Tursonzoda is 
actually considered a good place to live, after Dushanbe, 
particularly because the television from Uzbekistan is a 
higher-quality, albeit another state-supported propaganda 
machine.  END COMMENT.) 
 
4.  In a separate meeting, Turgunali Abdulloyev, chief of 
Abdurahmonov farm, gave an upbeat assessment of Tursonzoda's 
agricultural situation.  Despite the presence of heavy industry, 
district farmers traditionally enjoyed higher yields due to 
better soil and climate.  In Soviet times Tursonzoda produced 
many "heroes of agriculture."  Unlike in most cotton-growing 
regions, Abdulloyev alleged farmers carry very little debt.  The 
government did not pressure farmers to grow cotton, but cotton 
proved more profitable than other crops.  "There is no market 
for other things," he noted. 
 
5.  Abdulloyev echoed Akhmedov's claims that most of the region 
had running water, electricity and paved roads.  Because of the 
smelter and strong agriculture base, fewer district residents 
worked in Russia; in fact, workers from other parts of 
Tajikistan came to Tursonzoda for temporary work.  (NOTE:  TadAZ 
is estimated to employ 13,000 workers, in a city of around 
60,000.  END NOTE.) 
 
6.  Abdurakhim Rakhimov, owner of a privatized porcelain 
factory, observed that while his outfit produced only for the 
domestic market, few porcelain factories in the world are 
profitable these days.  He described the business climate in 
Tursonzoda as encouraging.  Cheaper, better quality porcelain 
from neighboring China was beginning to push his products out of 
the market, but he thought he could turn a profit by changing 
production from tea sets to isolators for power stations.  Trade 
with Afghanistan offered possibilities, but 70-90% import taxes 
prevented commerce with Uzbekistan from growing beyond the small 
traders carrying things to local markets on either side of the 
border. 
 
7.  Rakhimov's factory still carried debt from the privatization 
processes.  His single complaint focused on the high taxes in 
Tajikistan and other CIS countries.  "Too high for such weak 
economies," he sighed.  Corruption was not a problem, he 
maintained.  Oh really? pressed Poloff.  The government had done 
a lot for stability, he argued, and Tajikistan had no issues 
with corruption. 
 
PASS THE KOOLAID-WE'LL HAVE SOME, TOO 
 
8.  COMMENT:  Even the most nationalistic pro-government Tajik 
 
citizen will usually acknowledge some problems, or express 
frustration with the slow economic growth.  Corruption is always 
a favorite topic, schools always need more funds and mentioning 
Uzbekistan can usually stir some sort of response in the most 
sanguine.  The Stepford-like responses during all three meetings 
in Tursonzoda were puzzling.  Tajik officials, even in the worst 
parts of the country, feel it their duty to tell EmbOffs that 
all is rosy.  What was unique was the same comments from 
business and agriculture.  END COMMENT. 
HOAGLAND 
 
 
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