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18 November 1997

GORE, NAZARBAYEV EXPAND US-KAZAKH NUCLEAR AND DEFENSE COOPERATION

(11/18- oil contracts, defense and economic plans signed) (1000)
By Rick Marshall
USIA Staff Writer
Washington -- The United States and Kazakhstan boosted their nuclear
and defense cooperation significantly November 18, as Vice President
Al Gore and Kazakhstani President Nursultan Nazarbayev signed an
Action Program on Economic Partnership and the Final Report of the
fourth session of the U.S. Kazakhstan Joint Commission.
The signing took place at a special State Department ceremony in which
U.S. and Kazakhstani officials signed 13 separate nuclear safety and
defense cooperation agreements.
This was followed by the signing of two contracts to extract
Kazakhstani oil. The first, which is for the Karachaganak field in
northern Kazakhstan, groups Texaco with Lukoil, British Gas, and AGIP.
The second is for the Caspian Sea shelf off Kashagan and groups Mobil,
AGIP, Total, British Petroleum, Statoil, and Shell.
The Vice President opened the signing ceremony by praising the success
that marked this session of the annual U.S.-Kazakhstan Joint
Commission meetings. The agreements, which are listed below, carry
U.S.-Kazakhstani cooperation "to an even richer level of cooperation,"
Gore said.
"The United States has pledged its full support" to help Kazakhstan
continue its political and economic development, the Vice President
said. "The United State values Kazakhstan as a close friend."
Gore pointed particularly to the significance of the Action Plan for
Economic Partnership, the agreement to reduce the danger of the Aktau
breeder reactor, and the accord to cooperate in combating the
proliferation of weapons of mass destruction.
He also noted the "extensive commercial links" that have developed
between U.S. firms which have invested in Kazakhstan. According to
Gore's count, there are over 100 U.S. companies, with investments
nearing $2 billion [$2,000 million] in the country.
The Vice President also expressed his satisfaction that Nazarbayev had
made clear his support for an East-West transport corridor for Caspian
Sea oil during their meetings.
For his part, Nazarbayev praised the U.S.-Kazakhstan Joint Commission
for its "very fruitful work" and for expanding cooperation between the
two countries. He also spoke of the "very useful dialogue" he has had
with the Vice President during his stay in Washington. Following the
ceremony, Nazarbayev was scheduled to meet with President Clinton for
further discussions on energy policies, U.S. investment, and
implementing economic change in Kazakhstan.
Energy Secretary Federico Pena, speaking in an interview following the
signing ceremony, stressed the importance of Nazarbayev's agreement to
back an East-West pipeline corridor to carry Caspian Sea oil through
Azerbaijan, Georgia, and across Turkey to a terminus at Ceyhan.
This follows on the agreement a U.S. mission led by Pena reached with
the leaders of Turkey, Azerbaijan, Georgia, and Turkmenistan earlier
in the week.
"We see energy as the glue" which can help consolidate the
independence and prosperity of the Caspian Sea and Caucasus region
countries, Pena said. In addition, he acknowledged that the
establishment of the East-West corridor will help ensure that Iranian
influence in the region is minimalized.
Pena expressed great satisfaction with the two oil deals, which he
said should yield "enormous" amounts of oil over the life of the
contracts. He was particularly glad to see that the Russian firm
Lukoil is participating, he said. "We want Russian companies to be
involved."
Rose Gottemoeller, director of non-proliferation and national security
at the Department of Energy, called particular attention to the
agreement on safeguarding BN-350 nuclear material at Kazakhstan's
Aktau reactor, a breeder reactor at the country's only nuclear power
plant. Aktau has been a serious proliferation concern, she said,
because of the way nuclear fuel has been stored and because of its
proximity to the Iranian border.
The agreement signed today will "secure, stabilize, and store
plutonium-bearing spent nuclear fuel assemblies currently in the Aktau
reactor's core or its spent fuel pool, and alleviate a significant
proliferation risk," according to a White House document released at
the ceremony.
The Kazakhstani Ministry of Science-Academy of Science has also agreed
that "the reactor will be shut down and decommissioned no later than
the year 2003, eliminating it as a source of additional spent fuel,"
the document stated.
All in all, the agreement constitutes "a great non-proliferation
victory," Gottemoeller said.
She said the United States is contributing $10 million this fiscal
year to help Kazakhstan implement nuclear safety programs.
The 13 defense cooperation and nuclear safety agreements signed at the
ceremony are:
-- Cooperation concerning peaceful uses of nuclear energy;
-- Annex to the agreement on scientific research and development and
technology exchange programs for a cooperative program in nuclear
safety;
-- Implementing arrangements concerning long-term disposition of
BN-350 nuclear material;
-- Amendment to the agreement concerning control, accounting, and
physical protection of nuclear material to promote the prevention of
nuclear weapons proliferation;
-- Concerning the establishment and operation of nuclear test seismic
monitoring stations in Kazakhstan;
-- Between the Ministry of Defense of the Republic of Kazakhstan and
the Department of Defense of the United States of America concerning
cooperation in the area of the prevention of proliferation of weapons
of mass destruction;
-- Plan of cooperation between the Ministry of Defense of the Republic
of Kazakhstan and the Department of Defense of the United States of
America for 1998;
-- Joint statement on the exchange of information in the field of
military environmental matters;
-- Extension of the agreement concerning provision to the Republic of
Kazakhstan of emergency response equipment and related training in
connection with the removal of nuclear warheads from the Republic of
Kazakhstan for destruction and removal of intercontinental ballistic
missiles and the destruction of their silo launchers;
-- Program of military contacts between the United States of America
and the Republic of Kazakhstan for 1998; and
-- Between the Government of the United States and the Government of
the Republic of Kazakhstan regarding cooperation and mutual assistance
between their customs services.