UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 RELEASE IN FULL PAGE 01 STATE 065254 042207Z ORIGIN NODS-00 INFO LOG-00 ADS-00 000R 66011 DRAFTED BY S S RWILSON APPROVEDBY S S MGROSSMAN S S-O SWO JJONES ----A32CB2 042209Z 38 0 042205Z MAR 93 FM SECSTATE WASHDC INFO NSC WASHDC IMMEDIATE 0000 CIA WASHDC IMMEDIATE 0000 SECRET STATE 065254 NODIS NSC FOR LAKE-ITOH CIA FOR WOOLSEY FOLLOWING STATE 065254 DATED MAR 4 SENT ACTION MOSCOW REPEATED TO DOD CJCS IS BEING REPEATED FOR YOUR INFORMATION QUOTE SECRET STATE 065254 NODIS E O 12356 DECL OADR TAGS PREL RU OVIP CHRISTOPHER WARREN SECRET STATE 065254 042207Z PAGE 02 SUBJECT SECRETARY CHRISTOPHER'S FEBRUARY 25 MEETING WITH RUSSIAN FONMIN KO2YREV 1 SECRET ENTIRE TEXT 2 BRUSSELS FEBRUARY 25 1993 1300-1600 SECRETARY CHRISTOPHER CHARGE COLLINS MRS GATI NSC STAFF EUR A S NILES MINISTER KOZYREV DEPFONMIN MAMEDOV NIKOLAI SPASSKIY 3 SUMMARY SECRETARY CHRISTOPHER'S FEBRUARY 25 GENEVA MEETING WITH RUSSIAN FONMIN KOZYREV FOCUSED ON ARRANGEMENTS FOR THE SUMMIT BETWEEN PRESIDENTS CLINTON AND YELTSIN KOZYREV ACCEPTED PROPOSED APRIL 4 DATE BUT SAID VANCOUVER SITE WAS OUT THE MIDDLE EAST THE SECRETARY BRIEFED ON HIS TRIP KOZYREV AGREED TO JOIN IN INVITATIONS TO APRIL BILATERALS FORMER YUGOSLAVIA KOZYREV SUPPORTED IDEA OF RELIEF AIR DROPS BUT SAID RUSSIAN SUPPORT IF ANY WOULD HAVE TO COME LATER THE SECRETARY EXPLAINED OUR PROBLEMS WITH VANCE OWEN REVIEW AUTHORITY Marvin Russell Senior Reviewer UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 NON-PROLIFERATION THE SECRETARY WARNED OF CONSEQUENCES FOR US RUSSIAN RELATIONS OF CONTINUED TRANSFER OF MISSILE TECHNOLOGY AND KNOW-HOW TO INDIA AND PROPOSED AN ALTERNATIVE KOZYREV SUPPORTED U S APPROACH TOWARD IRAQ AND EXPRESSED FEAR OF IRAN YET INSISTED ON CONTINUED EFFORTS TO DEVELOP CLOSER RELATIONSHIP WITH IRAN IN DISCUSSION OF ECONOMIC ISSUES KOZYREV SAID CHERNOMYRDIN GOVERNMENT WAS COMMITTED TO STABILIZATION AND TO FIGHT AGAINST HYPERINFLATION STRESSED URGENT NEED FOR MORE WESTERN ASSISTANCE AND PUT IN PLUG FOR EARLY RUSSIAN SECRET STATE 065254 042207Z PAGE 03 MEMBERSHIP IN THE GATT THE SECRETARY REITIERATED PRESIDENT'S COMMITMENT TO SUPPORT REFORM IN RUSSIA BUT STRESSED NEED FOR RUSSIA TO PUT PROPER FRAMEWORK FOR FOREIGN INVESTMENT IN PLACE THE SECRETARY PROPOSED ESTABLISHMENT OF SENIOR US RUSSIAN GROUP TO COORDINATE DEVELOPMENT OF RELATIONSHIP K02YREV SAID HE LIKED THE IDEA BUT HAD BUREAUCRATIC PROBLEMS ON HIS SIDE END SUMMARY 4 DURING INITIAL PRIVATE SESSION KO2YREV RESPONDED TO PROPOSAL ON SUMMIT ACCEPTING APRIL 4 DATE BUT INDICATING THAT IT WOULD BE POLITICALLY IMPOSSIBLE FOR YELTSIN TO MEET IN NORTH AMERICA MAMEDOV SUBSEQUENTLY INDICATED TO USDEL MEMBER THAT ICELAND WAS OUT FOR THE RUSSIANS DUE TO THE 1986 GORBACHEV PRECEDENT THE SECRETARY STRESSED THAT PRESIDENT CLINTON AND HE WERE STRONGLY COMMITTED TO SUPPORT PRESIDENT YELTSIN AND THE REFORM COURSE HE WAS FOLLOWING HE SAID THE UNITED STATES REALIZES THAT RUSSIA HAS REACHED A CRITICAL POINT IN ITS DEVELOPMENT AND WE WILL PRESS FORWARD TO HELP IN ANY WAY POSSIBLE THE MEETING BETWEEN PRESIDENTS CLINTON AND YELTSIN IS GREAT OPPORTUNITY HE SAID LOOKING AHEAD THE SECRETARY ASSURED KO2YREV OF THE ADMINISTRATION'S COMMITMENT TO CONSULT CONSISTENTLY WITH RUSSIA IF THERE ARE LAPSES HE SAID THEY WILL BE INADVERTENT KO2YREV SAID HE HAD NO DOUBT REGARDING THIS POSITION BUT THAT IT WAS IMPORTANT IT BE IN THE RECORD OF THE MEETING MIDDLE EAST SECRET PAGE 04 STATE 065254 042207Z 5 IRAQ THE SECRETARY BRIEFED ON HIS MIDDLE EAST TRIP BEGINNING WITH IRAQ HE STRESSED THAT IN KUWAIT SAUDI ARABIA AND EGYPT HE FOUND TOTAL MISTRUST OF SADDAM HUSSEIN AND REQUESTS TO KEEP THE PRESSURE ON IRAQ HE ADDED THAT WE HAD NO INTENTION OF ENTERING INTO DIALOGUE WITH SADDAM ALTHOUGH HE ADDED THAT WE HAD NO PERSONAL VENDETTA AGAINST UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 HIM WE WILL INSIST UPON COMPLETE COMPLIANCE WITH THE UNSC SANCTIONS KOZYREV SAID HE AGREED WITH THE SECRETARY'S POSITION RUSSIA HAS SUFFERED HEAVY LOSSES DUE TO THE SANCTIONS BUT DOES NOT INTEND TO RESUME TRADE WITH IRAQ NONETHELESS IF THERE WERE A MEANS TO COMPENSATE RUSSIA FOR SOME OF ITS LOSSES THIS WOULD BE VERY HELPFUL HE NOTED HOWEVER THAT THERE WERE REPORTS IN THE OPPOSITION RUSSIAN PRESS THAT U S COMPANIES HAD BEGUN TO TRADE ACTIVELY WITH IRAQ IF THESE COULD BE EFFECTIVELY COUNTERED BY DOCUMENTATION IT WOULD EASE THE WAY FOR THE RUSSIAN GOVERNMENT 6 PEACE PROCESS THE SECRETARY SAID HE HAD FOUND A CONSENSUS EVERYWHERE THAT THE PROCESS WAS TOO PRECIOUS TO LOSE AND SHOULD BE RESUMED AS SOON AS POSSIBLE AL THOUGH ISSUE WAS RAISED THE DEPORTEES WERE TREATED AS A SIDE MATTER KOZYREV ASKED WHETHER PROSPECTS FOR RESOLVING THE DEPORTEE ISSUE WERE GOOD THE SECRETARY SAID THEY WERE BECAUSEOFTHESTRONGSUPPORTFORTHEPEACEPROCESSAND THE PROMISE OF A MORE ACTIVE U S ROLE HE SAID THAT IN HIS LAST TALK WITH RABIN THE PRIME MINISTER HAD PUT FORWARD SOME IDEAS FOR RESOLVING THE ISSUE CONTINGENT UPON THE PALESTINIANS RESUMING THE NEGOTIATIONS' WHICH INCLUDED FASTER PROCESSING OF THE CASES OF INDIVIDUAL SECRET STATE 065254 042207Z PAGE 05 DEPORTEES AS WELL AS REMOVING RESTRICTIONS ON SOME OF THE OLD DEPORTEES SOME OF WHOM WENT BACK TO 1967 RABIN ALSO AGREED THAT HE WOULD CHARACTERIZE DEPORTATION AS AN EXCEPTIONAL MEASURE TO BE USED ONLY IF THERE WERE A STRONG SECURITY NEED THE SECRETARY SAID FAISAL HUSSEINI HAD AGREED IN PRINCIPLE WITH THIS PROPOSAL ASKING ONLY FOR A REAFFIRMATION WHICH HE GOT OF THE U S POSITION ON UNSCR'S 242 AND 338 RABIN ALSO AGREED THAT AFTER THE TALKS RESUMED RESTRICTIONS IN THE WEST BANK WOULD BE EASED 7 CONTINUING THE SECRETARY SAID THAT WHAT WAS NOW NEEDED WERE SOME ACTION FORCING EVENTS HE SUGGSTED TWO 1 HE NOTED THE UPCOMING MEETING OF THE ARAB STATES -THEY SHOULD BE ENCOURAGED TO PUT PRESSURE ON THE PALESTINIANS HE ASKED THAT RUSSIA DO THIS AND 2 FOLLOWING THEIR MEETING THE U S AND RUSSIA AS COSPONSORS COULD INVITE THE PARTIES TO RESUME BILATERAL TALKS IN APRIL KOZYREV WELCOMED THESE IDEAS AND SAID RUSSIA WOULD FULLY SUPPORT THEM HE URGED THE CLOSEST POSSIBLE US RUSSIAN COOPERATION AND PROMISED THAT RUSSIA WOULD DO WHAT IT COULD TO BE OF HELP INCLUDING ENCOURAGING THE PALESTINIANS TO REJOIN THE PEACE PROCESS THE SECRETARY ASKED WHETHER KO2YREV WOULD BE SEEING ARAFAT SOON KO2YREV REPLIED THAT AFAFAT HAD ASKED FOR A MEETING THAT DAY IN EITHER GENEVA OR COPENHAGEN THE RUSSIANS HAD NOT REPLIED BELIEVING A MEETING IN GENEVA AFTER SEEING UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 THE SECRETARY WOULD BE INAPPROPRIATE KO2YREV SAID THE RUSSIANS WOULD SEE WHETHER SOMETHING COULD BE SET UP FOR COPENHAGEN AND HE SENT MAMEDOV OUT OF THE ROOM TO SEE IF SECRET STATE 065254 042207Z PAGE 06 A MEETING COULD BE ARRANGED 8 IRAN KO2YREV TURNED TO IRAN WHICH HE SAID WAS OF GREAT CONCERN TO RUSSIA DUE TO IRANIAN DESTABILIZING ACTIVITIES IN FORMER SOVIET CENTRAL ASIA PARTICULARLY IN TAJIKISTAN A TWO TRACK APPROACH IS NEEDED HE SAID ON THE ONE HAND RUSSIA WILL APPEAL TO THE REASONABLE FORCES IN IRAN RAFSANJANI AND VELAYATI WERE MENTIONED WHILE ON THE OTHER RUSSIA WILL TRY TO DEFLECT IRAN FROM CENTRAL ASIA ARMS SALES CAN BE ONE OF THE TOOLS FOR SUPPORTING THE REASONABLE FORCES KOZYREV ADDED BUT HE INSISTED THAT RUSSIA WOULD GUARD AGAINST PROLIFERATION IN ITS RELATIONSHIP WITH IRAN HE EXPRESSED AN INTEREST IN A CONFIDENTIAL DIALOGUE WITH THE U S ON IRAN THROUGH THE RESPECTIVE EMBASSIES HE SUGGESTED THAT HIS PLANNED VISIT TO IRAN IN MID-APRIL MIGHT SERVE AS AN OCCASION FOR THIS DIALOGUE THE SECRETARY SAID THAT AT ALMOST EVERY STOP ON HIS TRIP HE FOUND GREAT CONCERN ABOUT IRAN WHICH THOSE COUNTRIES BELIEVE IS EXPORTING TERRORISM THE HUMAN RIGHTS SITUATION THERE IS TERRIBLE AND THERE IS NO DOUBT THAT IRAN IS SEEKING TO DEVELOP WEAPONS OF MASS DESTRUCTION NILES RAISED THE PROPOSED SALE OF NUCLEAR REACTIONS AND SAID WE FOUND THIS A VERY DANGEROUS PROPOSAL KOZYREV SAID THAT TNERE WAS GREAT PRESSURE FROM INDUSTRY BUT ADDED SOMEWHAT ENIGMATICALLY THAT WE WILL DEAL WITH THEM 9 GULF STATES AFGHANISTAN AND PAKISTAN AFTER OBSERVING THAT RUSSIA IS INTERESTED IN DEVELOPING RELATIONS INCLUDING ARMS SALES WITH STABLE AND RICH GULF REGIMES SUCH AS THE UAE KO2YREV TURNED TO SECRET STATE 065254 042207Z PAGE 07 AFGHANISTAN THE SITUATION THERE WAS TRAGIC HE SAID AND THE SPILL OVER INTO TAJIKISTAN IS A MAJOR PROBLEM FOR RUSSIA WITHOUT BEING MORE SPECIFIC KOZYREV APPEALED FOR A MORE ACTIVE U S ROLE IN AFGHANISTAN TOGETHER WITH RUSSIA IN A EFFORT TO REESTABLISH SOME FORM OF STABILITY HE SUGGESTED THE U S COULD BE HELPFUL IN MODERATING THE AFGHAN ROLE IN TAJIKISTAN HE ADVISED THAT IN CONNECTION WITH HIS PLANNED VISIT TO IRAN HE WOULD ALSO VISIT PAKISTAN IN AN EFFORT TO SEEK COOPERATION IN STABILIZING AFGHANISTAN AND GAINING THE RETURN OF RUSSIAN POWS FORMER YUGOSLAVIA UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 10 KOZYREV ARGUED THAT THE VANCE OWEN PLAN MUST BE GOOD SINCE IT MAKES ALL SIDES EQUALLY UNHAPPY HE SAID HE WAS PLEASED TO JOIN IN EFFORT TO MAKE IT BETTER BUT HE WARNED THAT CHANGES TO THE MAP WILL OF NECESSITY BE A ZERO SUM GAME MILITARY GUARANTEES WILL BE NEEDED FOR ANY AGREEMENT HE SAID ADDING THAT RUSSIA WOULD BE PREPARED TO JOIN IN PROVIDING THEM HE SUPPORTED THE IDEA OF A MULTINATIONAL FORCE ORGANIZED BY NATO NACC UNDER UN AUSPICES AND COMMAND IN THIS ARRANGEMENT RUSSIA WILL CONTRIBUTE ADDITIONAL TROOPS AND SOME OFFICERS FOR HEADQUARTERS DISCUSSIONS WILL BEGIN FEBRUARY 26 IN BRUSSELS WHERE THE RUSSIAN EMBASSY WILL INITIATE CONTACTS HE EXPRESSED DOUBTS REGARDING THE STATUS OF THE GOVERNMENT OF BOSNIA NOTING THAT IT HAD BEEN REPUDIATED BY BOTH THE SERBIAN AND CROATIAN COMMUNITIES IN BOSNIA-HERCEGOVINA RUSSIA HE SAID WILL CONTINUE TO PRESSURE MILOSEVIC AND KARADZIC NOTING THAT RUSSIAN SECRET PAGE 08 STATE 065254 042207Z GOVERNMENT HAD RESPONDED PUBLICLY AND SHARPLY TO MILOSEVIC WHEN LATTER WROTE CRITICAL ARTICLE IN ANTI-GOVERNMENT PAPER PRAVDA BUT CARROTS AS WELL AS STICKS WILL BE EEDED TO DEAL WITH MILOSEVIC THE SECRETARY OBSERVED THAT RUSSIAN THINKING ON ENFORCEMENT MECHANISM FOR A BOSNIAN PEACE AGREEMENT WAS CONSISTENT WITH CONCEPT HE OUTLINED IN HIS FEBRUARY 10 STATEMENT AND THAT RUSSIAN PARTICIPATION WAS BOTH WELCOME AND ESSENTIAL 11 TURNING TO THE AIR DROPS KOZYREV SAID THAT RUSSIA COULD GIVE THE IDEA POLITICAL SUPPORT HE URGED HOWEVER THAT U S CONSIDER RISK OF ACCIDENT OR PROVOCATION IF THE UN HAD THE AUTHORITY OVER THE OPERATION THEN IN THIS CASE THE RESPONSE COULD BE DISCUSSED AND APPROVED BY THE SECURITY COUNCIL THE SECRETARY SAID THE DROPS WOULD BE UNDER THE UN BUT NOT A UN OPERATION HE SAID THAT THE U S WOULD SHOW AS MUCH RESTRAINT AS POSSIBLE BUT IT WOULD OT BE FEASIBLE FOR US TO PUT OUR SERVICE MEN IN HARM'S WAY AND SAY THEY COULD NOT FIRE BACK RETURNING TO VANCE OWEN THE SECRETARY SAID OUR PRINCIPAL PROBLEM WITH THE PLAN IS THAT IT HAS NOT BEEN ACCEPTED BY THE PARTIES AND THE INTERNATIONAL COMMUNITY WOULD NOT BE READY TO FORCE THEM TO DO SO THERE IS ALSO THE MORAL ASPECT OF FORCING THE AGGRIEVED THOUGH NOT ENTIRELY BLAMELESS BOSNIANS TO GIVE IN TO THE AGGRESSOR 12 THE SECRETARY SAID THAT WE APPRECIATED RUSSIAN POLITICAL SUPPORT FOR THE AIR DROPS IF THERE WERE MORE TANGIBLE EVIDENCE OF SUPPORT WE WOULD WELCOME IT COMMENT KOZYREV TOLD THE SECRETARY PRIVATELY THAT RUSSIA MAY BE ABLE TO SUPPLY A FEW PLANES AFTER THE AIR SECRET UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 PAGE 09 STA TE 065254 042207Z DROPS ARE UNDER WAY END COMMENT KO2YREV SAID HE AGREED THAT IT WAS DIFFICULT TO FORCE PEOPLE TO ACCEPT A PEACE PLAN BUT HE ADDED THAT THE TIME COMES WHEN YOU HAVE TO SAY TO ALL INVOLVED STOP' ENOUGH AS IN THE CASE OF NAGORNO-KARABAKH KO2YREV PLEDGED THAT SPECIAL RUSSIAN REPRESENTATIVE CHURKIN WOULD WORK WITH AMBASSADOR BARTHOLOMEW TO FIND WAYS TO IMPROVE THE VANCE OWEN PLAN HE ALSO SAID HE WOULD DO ALL HE COULD TO ENSURE UN SUPPORT FOR THE U S AIR DROPS TO GIVE YOU SOME ROOM BUT WE NEED SOME ROOM TOO THE SECRETARY SAID IT WAS VERY IMPORTANT TO CONVINCE THE PARTIES THAT THEY WOULD NOT BE SAVED FROM NEGOTIATIONS BY OUTSIDE MILITARY INVOLVEMENT WE WILL WORK WITH THE MUSLIMS HE SAID ADDING THAT WE HOPED RUSSIA WOULD DO THE SAME WITH THE SERBS DISPUTES IN THE CIS 13 NAGORNO-KARABAKH LOOKING AHEAD SOMEWHAT OPTIMISTICALLY KO2YREV SAID THAT AFTER THE YUGOSLAV CRISIS IS DEALT WITH THE UNITED STATES AND RUSSIA SHOULD TURN THEIR ATTENTION TO NAGORNO-KARABAKH AND IMPOSE PEACE ON THE PARTIES BOTH PRESIDENTS TER-PETROSIYAN AND ELCHIBEY WANT TO MAKE PEACE HE SAID BUT CANNOT DO IT WITHOUT OUTSIDE HELP OR COMPULSION HE SUGGESTED A US RUSSIAN STATEMENT CALLING FOR A PEACEFUL SETTLEMENT OF THE CRISIS THE SECRETARY EXPRESSED DOUBT THAT COUNTRIES COULDE FORCED TO MAKE PEACE AND SAID THE REPEATED ISSUANCE OF STATEMENTS GAVE AN IMPRESSION OF FUTILITY NONETHELESS HE SAID WE WOULD GO ALONG WITH ANOTHER SECRET PAGE 10 STATE 065254 042207Z STATEMENT ON NAGORNO-KARABAKH SINCE THIS WAS CLEARLY IMPORTANT TO RUSSIA NILES OBSERVED THAT WE HAD SOME PROBLEMS WITH RUSSIAN DRAFT OF STATEMENT AND PROPOSED USE OF TEXT IN STATE 56973 KOZYREV GLANCED AT THE U S TEXT AND APPROVED IT IN HIS DISCUSSION OF PROBLEMS IN THE CIS KO2YREV NOTED THE LARGE AND GROWING COST OF PEACEKEEPING WHICH IS CURRENTLY BORN SOLELY BY RUSSIA IN THE FUTURE RUSSIA WOULD WELCOME MORE BURDENSHARING IN FUNDING PEACEKEEPING OPERATIONS IN THE CIS IF A VOLUNTARY FUND COULD BE ESTABLISHED' RUSSIA WOULD APPRECIATE IT NILES CALLED ATTENTION TO U S READINESS TO FUND UP TO DOLLARS 2 MILLION OF THE COSTS INVOLVED IN TRANSPORTING PEACEKEEPERS TO NAGORNO-KARABAKH 14 RUSSIAN-UKRAINIAN RELATIONS KOZYREV EXPRESSED GREAT FRUSTRATION WITH STATE OF RUSSIA'S RELATIONS WITH UKRAINE HE DISTRIBUTED PAPER DETAILING PROBLEMS IN NUCLEAR AREA AND WITH NEGOTIATIONS ON DIVISION OF DEBT OF FORMER SOVIET UNION THE SECRETARY SAID WE WANT THE UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UKRAINIANS TO FULFILL THEIR PLEDGE ON START I AND NPT KOZYREV SAID THE ISSUE WASN'T MONEY OR THE TEXT OF SECURITY ASSURANCES BUT RATHER THE REPUDIATION OF THE LISBON ACCORDS AND THE EFFORTS OF SOME IN UKRAINE TO GAIN NUCLEAR STATUS HE SAID THAT AT RECENT YELTSIN KRAVCHUK MEETING THE UKRAINIAN PRESIDENT HAD REFUSED EVEN TO MENTION THE LISBON PROTOCOL CLAIMING THAT IT LACKED STATUS SINCE IT HAD ONLY BEEN SIGNED BY THE FOREIGN MINISTERS FORTUNATELY HE ADDED THERE WERE CIS DOCUMENTS SIGNED BY KRAVCHUK THAT COMMIT UKRAINE TO NON-NUCLEAR STATUS MAMEDOV MADE THE POINT THAT UKRAINIAN REFUSAL TO SECRET STATE 065254 042207Z PAGE 11 ALLOW RUSSIAN EXPERTS ACCESS TO MISSILES IN UKRAINE HAD LED TO PROBLEMS WITH MAINTENANCE OF WARHEADS WHICH COULD LEAD TO NEW CHERNOBYL ON DEBT KO2YREV COMPLAINED THAT UKRAINIANS WERE OBSESSED WITH EFFORT TO GAIN SHARE OF ASSETS OF FORMER USSR IN PARTICULAR 64 OVERSEAS PROPERTIES WHICH WILL HAVE TO BE SOLD IF THEY ARE TO BE DIVIDED HOWEVER HE COMPLAINED THE UKRAINIANS WERE NOT PREPARED TO TAKE SHARE OF DEBT NOR HAD THEY ACCEPTED RUSSIAN PROPOSAL THAT SOME OF THE 64 PROPERTIES BE LEASED BY UKRAINE FOR A NOMINAL AMOUNT KO2YREV SAID THE UKRAINIANS EXPECT ALL THE ADVANTAGES OF THE SOVIET UNION SUCH AS LOW ENERGY PRICES' WHILE ENJOYING THE ADVANTAGES OF INDEPENDENCE KO2YREV SAID HE WAS NOT ASKING THAT THE U S PUT PRESSURE ON UKRAINE RATHER HE ASKED THAT WE ADVISE THEM TO DECIDE WHAT THEY WANT AND THEN NEGOTIATE WITH RUSSIA ECONOMIC ISSUES 15 KOZYREV SAID HE HAD NOTICED THE CLINTON ADMINISTRATION'S EMPHASIS ON INTERNAL AGENDA AND ADDED THAT THE YELTSIN GOVERNMENT HAD THE SAME ORIENTATION BOTH COUNTRIES ARE SEEKING TO REVITALIZE THEIR ECONOMIES AL THOUGH THE PROBLEMS ARE VASTLY DIFFERENT HE ASKED HOW THE U S SAW ECONOMIC COOPERATION WITH RUSSIA RUSSIA HE SAID BELIEVES THAT A MORE COOPERATIVE APPROACH IS NEEDED BOTH BILATERALLY AND MULTILATERALLY WITH THE G-7 HE STRESSED THAT THE CHERNOMYRDIN GOVERNMENT WAS FIRMLY FIXED ON ECONOMIC STABILIZATION IN ORDER TO STAVE OFF HYPERINFLATION AND GAVE THE SECRETARY A PAPER ON THE SECRET PAGE 12 STATE 065254 042207Z GOVERNMENT'S ECONOMIC PRIORITIES THE SECRETARY NOTED THE IMPORTANCE OF RESOLVING THE DEBT ISSUE AND ASKED WHAT THE STATUS WAS OF RUSSIA'S NEGOTIATIONS WITH THE PARIS CLUB KOZYREV EXPRESSED APPRECIATION FOR U S HELP IN THE PARIS CLUB BUT SAID THAT MORE WAS NEEDED ESPECIALLY WITH THE UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 GERMANS THE FACT IS HE SAID THAT RUSSIA HAS NO MONEY AND CANNOT PAY MORE THAN DOLLARS 2 5 BILLION IN 1993 ON ALL OF ITS OUTSTANDING FOREIGN OBLIGATIONS 16 CONTINUING KO2YREV SAID THAT RUSSIA WANTED TO JOIN THE GATT IF POSSIBLE DURING THE SPRING OF 1993 SECRETARY CHRISTOPHER ASKED WHAT THE STATUS WAS OF RUSSIA'S APPLICATION TO JOIN THE GATT NILES SAID THAT THE USSR HAD BEEN GIVEN OBSERVER STATUS AND A WORKING PARTY HAD BEEN FORMED HE ADDED HOWEVER THAT HE DID NOT BELIEVE THAT RUSSIA HAD APPLIED FOR MEMBERSHIP KO2YREV SAID HE THOUGHT THAT WAS CORRECT BUT ADDED THAT RUSSIA WISHED TO JOIN SOON HE ALSO ASKED THAT RUSSIA BE HELPED BY THE REMOVAL OF RESTRICTIONS SUCH AS JACKSONNANIK AND THROUGH ASSISTANCE WITH EXPORTS OF URANIUM SPACE EQUIPMENT AND TECHNOLOGY AND CONVENTIONAL ARMS HE ADDED THAT THE LATTER TWO AREAS WOULD BE COMBINED WITH RUSSIAN EFFORTS TO STRENGTHEN CONTROLS OVER PROLIFERATION AND THE ARMS TRANSFERS HE SAID THAT DEPPRIMIN SHOKHIN WAS TO BE IN WASHINGTON FEBRUARY 26 FOR TALKS ON GRAIN PURCHASES AND ADDED THAT HE HOPED SOMETHING COULD BE DONE TO PROVIDE ADDITIONAL CREDIT GUARANTEES 17 LOOKING AHEAD KO2YREV SAID RUSSIA HOPED JAPAN UNDERSTOOD THAT THERE COULD BE NO LINKAGE BETWEEN THE SECRET PAGE 13 STATE 065254 042207Z NORTHERN TERRITORIES ISSUE AND RUSSIAN ATTENDANCE AT THE JULY ECONOMIC SUMMIT MORE GENERALLY RUSSIA HOPES THE G-7 CAN BE MADE AS PRODUCTIVE AS POSSIBLE AND ADDED THAT RUSSIA HOPES TO ESTABLISH EARLY CONTACT WITH THE SHERPAS IN ORDER TO BE PART OF THE PREPARATORY PROCESS HE ADVISED THAT DEPPRIMIN FEDOROV WOULD BE THE RUSSIAN REPRESENTATIVE 18 IN REPLY THE SECRETARY SAID THAT IT WAS CLEAR TO US THAT DESPITE THE GREAT OBSTACLES STABILIZATION WAS THE ONLY COURSE THAT MADE SENSE FOR THE RUSSIAN ECONOMY THE UNITED STATES WISHES RUSSIA WELL AND WILL DO ALL IT CAN TO HELP PRIVATE INVESTMENT WILL BE A KEY TO SUCCESS HE ADDED AND NOTED THAT THERE WAS GREAT WORLD-WIDE COMPETITION FOR INVESTMENT CAPITAL COMPANIES HE SAID LOOK FOR SITUATIONS WHICH INCLUDE STABLE LEGAL FRAMEWORKS AND SYSTEMS FOR PROTECTION OF PRIVATE PROPERTY WHEN THEY MAKE INVESTMENT DECISIONS THE LACK OF SUCH ELEMENTS IS A BIG DRAWBACK FOR RUSSIA IN THIS CONNECTION HE CITED THE MMMMS GAS PROJECT ON SAKHALIN WHICH WAS READY TO GO AND HELD GREAT PROMISE FOR RUSSIA AS AN EXAMPLE OF A PROJECT THAT RUSSIA SHOULD SEEK TO FACILITATE 19 TURNING TO DEFENSE CONVERSION THE SECRETARY SUGGESTED THAT DEPUTY DEFENSE SECRETARY-DESIGNATE PERRY WHO HAS DONE IMPORTANT WORK ON THE SUBJECT WHILE IN THE PRIVATE SECTOR COULD BE AN IMPORTANT PARTICIPANT IN THE UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 U S EFFORT TO HELP RUSSIA IN THIS CRUCIAL AREA HE POINTED OUT THAT THE TOUGHEST BUT MOST EFFECTIVE TYPE OF CONVERSION IS WHEN AN ENTERPRISE ACTUALLY CEASES PRODUCTION OF A GIVEN DEFENSE ITEM AND BEGINS TO PRODUCE A SECRET PAGE 14 STATE 065254 042207Z CIVILIAN ITEM THIS IS PREFERABLE HE SAID TO SEEKING NEW MARKETS FOR DEFENSE ITEMS ON OVERALL AID ISSUE THE SECRETARY SAID THAT WE WERE SEEKING TO SPEED UP THE OBLIGATION OF EXISTING FUNDS AND WOULD SEEK ADDITIONAL FUNDS FROM CONGRESS DESPITE OUR BUDGET PROBLEMS 20 ON DEBT THE SECRETARY URGED AN EARLY DEAL WITH THE PARIS CLUB HE TOOK NOTE OF SHOKHIN'S VISIT BUT SAID THAT THE U S HAD NO RPT NO FLEXIBILITY ON NEW CREDIT GUARANTEES UNTIL THE ARREARS ARE ELIMINATED HE SAID THE RUSSIANS HAD TO RECOGNIZE THAT A DEAL WITH UKRAINE WAS A PRECONDITION FOR A PARIS CLUB DEAL START II 21 THE SECRETARY SAID WE HOPED THAT START II WOULD BE RATIFIED SOON BY THE SUPREME SOVIET WE WERE READY TO BE OF HELP IF THE RUSSIAN SIDE THOUGHT IT WORTHWHILE THROUGH EXCHANGE OF EXPERTS ON THE TREATY WE WANT TO COORDINATE OUR EFFORTS WITH THOSE OF RUSSIA HE SAID ADDING THAT WE RECOGNIZED THE SERIOUS PROBLEM UKRAINE'S BEHAVIOR CREATED FOR RUSSIA HE URGED KO2YREV TO TAKE ANOTHER LOOK AT THE SECURITY ASSURANCE RUSSIA PROPOSED TO GIVE UKRAINE AND REPLACE THE REFERENCE TO THE CIS WITH CSCE AS THE BASIS FOR THE GUARANTEE KOZYREV REPEATED HIS EARLIER COMMENT ON UKRAINE'S POSITION SEE PARA 13 BUT ADDED THAT HE THOUGHT THERE WAS A GOOD CHANCE FOR RATIFICATION OF START II A SUPREME SOVIET DELEGATION WAS PLANNING VISIT TO WASHINGTON FOR TALKS WITH THE U S CONGRESS ON START II AND HE URGED THAT THE U S MEMBERS SECRET PAGE 15 STATE 065254 042207Z OF CONGRESS AVOID CLAIMING THAT THE AGREEMENT IS OVERWHELMINGLY BENEFICIAL TO THE U S THE SECRETARY SAID HE DOUBTED THIS POINT WOULD BE MADE IN PART BECAUSE IT ISNT TRUE TO SUPPORT HIS POINT HE GAVE KOZYREV A SET OF CHARTS PREPARED BY JCS THAT DOCUMENT THE DEEP CUTS START II IMPOSES ON THE U S NONPROLIFERATION 22 THE SECRETARY SAID THAT THE U S WISHED TO AVOID HAVING TO IMPOSE ADDITIONAL SANCTIONS ON RUSSIA DUE TO THE CONTRACT FOR ADVANCED MISSILE EQUIPMENT AND TECHNOLOGY UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 WITH INDIA ISRO HE HAD BEEN DISTURBED TO FIND THIS PROBLEM WAITING ON HIS DESK ON JANUARY 20 AND HE STRESSED THAT WE UNDERSTAND RUSSIA'S DOMESTIC PROBLEMS AND NEEDS IN THIS AREA DRAWING ON MATERIAL IN STATE 56907 HE EXPLAINED THE BENEFITS THAT WOULD ACCRUE TO RUSSIA IF THEY JOINED US IN A COOPERATIVE EFFORT AND JOINED THE MTCR AND HE GAVE KO2YREV A NON-PAPER BASED ON THE MATERIAL IN STATE 56907 AND THE INTERAGENCY MEMORANDUM HE STRESSED THAT US RUSSIAN SPACE COOPERATION WOULD PROVIDE A BETTER WAY FOR RUSSIA TO GAIN A FOOTHOLD ON WORLD MARKETS AND HE SAID THAT FAILURE TO RESOLVE THE INDIAN ISSUE WOULD LEAD TO A CUTOFF IN SPACE COOPERATION AND U S OFFICIAL ASSISTANCE TO RUSSIA THIS IS AN URGENT ISSUE HE ADDED AND POINTED OUT THAT VICE PRESIDENT GORE HAD BEEN RESPONSIBLE FOR THE RELEVANT LEGISLATION AND PRESIDENT CLINTON HAD STRESSED THE MISSILE PROLIFERATION ISSUE DURING THE RECENT CAMPAIGN IN REPLY KOZYREV SAID WOULD EXAMINE THE U S NON-PAPER HE OBSERVED THAT A SOLUTION SECRET PAGE 16 STATE 065254 042207Z MIGHT BE POSSIBLE IF THE U S ASSURED RUSSIA TWO OR THREE SATELLITE LAUNCHES ANNUALLY STRATEGIC DIALOGUE 23 THE SECRETARY ADVISED THAT HE WANTED TO FORM A SMALL U S RUSSIAN GROUP HEADED ON OUR SIDE BY AMBASSADOR-DESIGNATE TALBOTT WITH REPRESENTATIVES FROM STATE DEFENSE OSD JCS AND AN ECONOMIC OFFICIAL TO CONDUCT A STRATEGIC DIALOGUE WITH RUSSIA THIS GROUP HE SAID COULD BE RESPONSIBLE FOR FOLLOW-UP ON INITIATIVES TAKEN AT THE SUMMIT AND OTHER KEY ISSUES AND PREPARE FOR TOP-LEVEL MEETINGS KOZYREV SAID THIS STRUCK HIM AS A GOOD IDEA BUT HE INDICATED THAT HE MIGHT HAVE BUREAUCRATIC PROBLEMS IN MOSCOW IF HE ATTEMPTED TO FOLLOW THE INTERAGENCY FORMAT THE U S INTENDED TO FOLLOW HE SAID HE WOULD SEEK TO KEEP RESPONSIBILITY FOR THE GROUP IN THE FOREIGN MINISTRY AND ADDED THAT WHILE HE SAW THE VIRTUE OF BRINGING OTHER RUSSIAN AGENCIES IN THE GROUP HE WAS NOT SURE HOW TO PROCEED HE ALSO CITED THE DIFFERENCE BETWEEN U S AND RUSSIAN STRUCTURES AS PERHAPS JUSTIFYING DIFFERENT APPROACHES IN MOSCOW AND WASHINGTON RUSSIAN RELATIONS WITH THE EC AND NATO 24 KOZYREV ASKED THAT WHILE IN BRUSSELS FEBRUARY 26 THE SECRETARY ENCOURAGE THE EC FOREIGN MINISTERS TO AGREE TO A SPECIAL AGREEMENT BETWEEN THE COMMUNITY AND RUSSIA HE EXPLAINED THAT HE WANTED A SPECIAL AGREEMENT BETWEEN SECRET UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018 PAGE 17 STATE 065254 042207Z RUSSIA AND THE EC -- NOT NECESSARILY MEMBERSHIP BUT CLOSE COOPERATION SO THAT RUSSIA COULD BECOME PART OF THE FREE TRADE ARRANGEMENT THE SECRETARY CLARIFIED THAT HE WOULD BE MEETING WITH THE NATO NOT THE EC FOREIGN MINISTERS BUT HE SAID WE WOULD RAISE THE RUSSIAN REQUEST SEPARATELY WITH THE EC-12 TURNING TO NATO KO2YREV SAID THE ALLIANCE WAS VERY IMPORTANT TO RUSSIA BUT COMPLAINED MILDLY ABOUT RECENT STATEMENTS IN NATO ABOUT THE THREAT FROM THE EAST SUCH STATEMENTS DO NOT HELP THE YELTSIN GOVERNMENT WITH ITS DOMESTIC PROBLEMS THE SECRETARY INDICATED HIS UNDERSTANDING KO2YREV SAID THAT RUSSIA WISHES TO APPROACH NATO AS A PARTNER NOT A THREAT HE EXPRESSED SATISFACTION WITH SACEUR SHALIKASHVILl'S RECENT VISIT AND SAID MORE CONTACTS WERE NEEDED BETWEEN NATO AND RUSSIAN MILITARIES ON ISSUES SUCH AS PEACEKEEPING 53 THE SECRETARY ADVISED THAT HE PLANNED TO MENTION THE PROBLEM OF RUSSIAN MINORITIES IN COUNTRIES SUCH AS THE BALTIC STATES IN HIS FEBRUARY 26 NAC STATEMENT KOZYREV EXPRESSED GREAT APPRECIATION FOR THIS ACTION NOTING THE ENORMOUS SENSITIVITY OF THE ISSUE IN RUSSIA MORE GENERALLY HE SAID THAT THE PROBLEM OF MINORITIES AND EXCESSIVE NATIONALISM WAS AN URGENT ISSUE IN EUROPE AND BEYOND THE SECRETARY SAID THAT IN THE SMALLER ETHNICALLY HOMOGENOUS EUROPEAN COUNTRIES THE APPEARANCE OF MINORITIES COULD BE AN EXPLOSIVE ISSUE WHEREAS IT WAS EASIER TO DEAL WITH IN THE UNITED STATES CHRISTOPHER UNQUOTE CHRISTOPHER SECRET PAGE18 STA TE 065254 042207Z SECRET lt lt END OF DOCUMENT gt gt UNCLASSIFIED U S Department of State Case No M-2017-11712 Doc No C06549825 Date 05 10 2018