U.S. Department of State

Annex A: Assessments of Progress in Meeting the Standards of Section 498A of the Foreign Assistance Act of 1961

KYRGYZ REPUBLIC

The Kyrgyz Republic has expressed a commitment to the protection of human rights, democracy and the rule of law. Although the 1993 Constitution defines the form of government as a democratic republic, President Askar Akayev dominates the government. President Akayev continued to pledge in 2003 that he will step down when he completes his current term and will prepare Kyrgyzstan for a constitutional transfer of power. President Akayev has established a Public Council for Democratic Security to draft a Democratic Code. He has also created and agreed to head a National Council on Good Government to improve public administration by combating corruption. Political parties, including the opposition, have agreed to address a common agenda in preparation for the parliamentary and presidential elections in 2005.

In August 2002, a Constitutional Council was formed by decree of President Akayev to recommend revisions to the 1993 Constitution aimed at strengthening democracy. The Council, composed of a wide spectrum of society, issued a list of proposals aimed at enhancing the independence of the judiciary and promoting local self-government. A national referendum on the proposed amendments was postponed until 2003. On January 13, 2003, President Akayev unexpectedly published by decree a new constitutional draft, which did not take into account the views of the Council, and announced the referendum date as February 2, 2003. The draft contained a number of provisions that would strengthen the power of the presidency as well as vague provisions that could weaken the role of civil society. There were reportedly widespread electoral violations on February 2, which call into question the mandate the Government now claims.

The Kyrgyz Government has accepted the Office of Democratic Institutions and Human Rights' (ODIHR) offer to provide legislative experts to assist in drafting the legislation needed to implement the constitutional reforms in order to ensure the legislation conforms to the Organization for Security and Co-operation in Europe (OSCE) standards. The Kyrgyz Government has agreed to provide full access to the drafting process in the Presidential Administration and Parliament and to allow sufficient time for a thorough ODIHR assessment. Implementing legislation will largely determine whether constitutional reform will ultimately contribute to the Government's stated aim of strengthening democratic institutions and respect for human rights.

Although the Constitution provides for an independent judiciary, the court system remains largely unreformed, and the executive dominates the judiciary. Judges are open to bribes or pressure. Recognizing the need to reform the system, the Government has introduced some Western practices, including the presumption of innocence of the accused. In 2003, the Government continued to use the courts to put pressure on the political opposition, nongovernmental organizations, and the independent media.

In January 2001, a closed military court convicted Feliks Kulov, the leader of the opposition Ar-Namys Party and former parliamentary and presidential candidate, of fraud and abuse of power and sentenced him to seven years of imprisonment. In 2002 a new criminal case was brought against Feliks Kulov resulting in an additional ten-year sentence for embezzlement. Kulov's property was confiscated. On October 11, 2002, an appellate court upheld the lower court's findings. In July 2003, Kyrgyzstan's Supreme Court affirmed the appellate court's decision in a truncated process. The Kulov case appears to have been politically motivated and was characterized by procedural violations throughout.

The Government continued to use its influence over the printing and distribution of news to control the dissemination of information by the independent print media in 2003. In June, the leading opposition daily, Moya Stolitsa, was forced to shut down because of its inability to pay fines accrued as a result of 32 lawsuits filed over the preceding year. The number and nature of the lawsuits against Moya Stolitsa and other independent newspapers, including suits filed by the Prime Minister and Foreign Minister, pointed to a Government effort to exert pressure on the independent media. On the positive side, the Kyrgyz Government registered the United States-funded independent printing press, the first of its kind in Central Asia. Freedom House began operating the printing press in Bishkek in November 2003, and ten newspapers are now being printed by the press.

Civil society and human rights activists continue a vigorous and open public debate. The Kyrgyz Government, responding to public pressure, re-registered the Coalition for Democracy and Civil Society, one of its harshest critics.

Civil society and human rights activists continue a vigorous and open public debate. The Kyrgyz Government, responding to public pressure, re-registered the Coalition for Democracy and Civil Society, one of its harshest critics.

The Government has at times inhibited the freedom of assembly and association, particularly the opposition political parties' right to assemble freely. On occasion, the Government has used force to disrupt peaceful demonstrations and has prevented civil society groups' access to meeting space.

While the Kyrgyz Republic is fairly tolerant of religious practice, the registration process for religious groups is cumbersome. Most religious organizations have achieved registration after properly completing all formalities, but in some cases the process took several years and repeated attempts. Several Christian congregations and the Roman Catholic Church with large numbers of ethnic-Kyrgyz members have had difficulty registering with the State Committee on Religious Affairs.

The Government restricts the activities of radical Islamic groups that it considers to be threats to national stabilityand is concerned about the role Islamic extremism could play in the country's politics. Even before September 11, government officials proposed new policies to prevent its rise, including increased sentences for those convicted of religious extremism and increased monitoring of mosques and schools. In May there were reports that local officials closed eight mosques near Jalalabad. Hizb ut-Tahrir, primarily active in the southern part of the country, is not registered with the Government, which considers it an extremist organization and therefore its activities to be illegal. During the first ten months of 2003, 89 persons related to Hizb ut-Tahrir were detained. In July 2002 and June 2003, a total of four Islamic activists were sentenced to 3-5 years in prison for their alleged activities as Hizb ut-Tahrir members.

The Government has expressed strong commitment to protecting the rights of all ethnic, religious, and linguistic groups, as well as women. However, although the law gives equal status to women, gender-based discrimination persists and trafficking in women and girls for forced prostitution exists. During the past year, the Kyrgyz Government has intensified its comprehensive campaign to combat trafficking in persons. During the first eight months of 2003, the Kyrgyz Government investigated nineteen cases involving trafficking in persons and began prosecuting twelve alleged offenders. The Kyrgyz Parliament adopted new legislation in June 2003 making trafficking in persons a crime and prompting a robust law enforcement campaign to investigate and prosecute individuals suspected of trafficking.

Section 498A(a)(2): "make significant progress in, and is committed to the comprehensive implementation of, economic reform based on market principles, private ownership, and integration into the world economy, including implementation of the legal and policy frameworks necessary for such reform (including protection of intellectual property and respect for contracts)."

The Kyrgyz Republic has made important progress in restructuring its economic system and implementing legislation that will be the basis for a market economy. The national currency, the som, was introduced in May 1993, and parliament has adopted key legislation on privatization, joint ventures, foreign trade and investment and free economic zones. Most small and medium enterprises have been privatized. On December 20, 1998, the Kyrgyz Republic was the first former Soviet state to join the World Trade Organization. As a member of the WTO, Kyrgyzstan is subject to all WTO agreements including the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). The Kyrgyz Government has taken some steps to comply with that agreement's commitments on protection of intellectual property rights. The Overseas Private Investment Corporation (OPIC) continues to work in the country as well. The Kyrgyz Republic is a member of the International Monetary Fund (IMF), World Bank, European Bank for Reconstruction and Development, and the Asian Development Bank. In June 2000, it graduated from the application of the Jackson-Vanik amendment of Title IV of the Trade Act of 1974.

The Kyrgyz Republic has distinguished itself by adopting relatively liberal economic policies and achieving consistent real economic growth. The Kyrgyz economy, rebounding robustly from zero GDP growth in 2002 caused by a temporary supply shock is expected to grow by 6.5 percent in 2003. Strong money demand has allowed remonetization with inflation below 4 percent since 2001. The Government has made steady strides in controlling its substantial fiscal deficit. The key fiscal objective is to reduce the deficit to 4.4 percent of GDP in 2004. Tax revenue remains low, but increased to 14 percent of GDP in 2003. The Government continues to work closely with the IMF to strengthen fiscal discipline and encourage greater compliance.

The external outlook of the Kyrgyz Republic has stabilized since 1998. The Kyrgyz Republic was the first Central Asian republic to embark on an IMF reform program. In 2001, the IMF approved a three-year, USD 93 million Poverty Reduction and Growth Facility (PRGF). The fourth review of the PRGF, scheduled for IMF Board approval on January 14, 2004, notes the Kyrgyz Republic's highly satisfactory macroecnomic progress and solid record of policy implementation. In March 2003, the Paris Club approved a non-concessional debt flow rescheduling. A goodwill clause in the agreement provides for consideration of a stock rescheduling upon successful completion of the PRGF and agreement on a follow-up medium-term arrangement. A successful final year of the current arrangement and agreement on a successor PRGF arrangement could set the stage for the Paris Club debt stock relief in early 2005 that is critical for debt sustainability and sustained growth. International reserves (valued at more than four months' imports) exceed IMF targets. While exports can be volatile, due to fluctuations in gold prices and electricity sales, the Kyrgyz Government is focused on promoting export growth and encouraging foreign direct investment (FDI). As part of its strategy to encourage FDI, the Kyrgyz Government formed the Secretariat for the Attraction of Investment and the Consultative Council, which consists of high level government officials, including President Akayev, and representatives from the diplomatic community, international organizations and large investors. Growth and increased social spending have helped the Kyrgyz Republic reduce poverty. The World Bank reports that the percentage of those living under the poverty level continues to slowly decrease from 52 percent in 2000 to 48 percent in 2001 to 44 percent in 2002. There are also indications that income inequality has declined. The Kyrgyz Government is focused on promoting economic growth as the surest path to poverty reduction.

Section 498A(a)(3): "respect internationally recognized human rights, including the rights of minorities and the rights to freedom of religion and emigration."

The Kyrgyz Republic's human rights record remained poor, and indeed worsened in some areas, however, there were some positive developments. NGOs and Parliament deputies on occasion succeeded in blocking presidential initiatives through parliamentary action and grassroots campaigns. There were credible reports of police abuse and brutality. In late 2002 the Parliament created a Government Ombudsman's Office which has since worked actively to champion individual rights cases around the country. Prison conditions are very poor, and there were many cases of arbitrary arrest and detention.

The Constitution provides citizens with the right to assemble freely; however, at times the Government restricted this right in practice. On occasion the Government used force to disrupt peaceful demonstrations.

The law provides for freedom of speech and of the press; however, the Government routinely restricts these rights. Journalists have been arrested on several occasions on criminal libel charges. Several of these journalists have served time in jail, but most were either immediately freed or, if convicted, were released with credit for time served.

President Akayev has sought to reassure ethnic minorities while simultaneously trying to satisfy the aspirations of ethnic Kyrgyz for greater national identity. The new constitution includes substantial protection for individuals, including non-ethnic Kyrgyz. Concerns remain over ethnic discrimination, but in general the situation for minorities has improved, and emigration, while free, has decreased.

The Kyrgyz constitution provides for freedom of religion. The Government does not support any specific religion and expressly forbids religious instruction in government schools. The Government does not, however, fully protect religious rights. A 1996 law requires that religious groups register with the State Commission on Religious Affairs (SCRA). In practice, the Commission requires each congregation to register separately and does not always process the applications promptly. In 2003, the State Commission refused registration to the Russian Overseas Church after a court held that it was not a religious organization. However, the SCRA has returned some registrations numerous times for correction and re-submission. There are credible reports that congregations of all-Kyrgyz Christians remain unregistered either because they are fearful to register or because they have been refused. The Church of Jesus Christ, which has 10,000 members throughout the country, and is the largest ethnic-Kyrgyz Christian Church, experienced a number of bureaucratic and legal problems. Fearful of the rise of violent Muslim extremism in the region, the Government recently drafted a new law on religion in 2001. OSCE experts and others criticized the draft as unduly restrictive and it has remained off the legislative agenda ever since, although it continues to go through various drafts to account for other legislation that has been passed in the meantime. The latest draft proposes that religious organizations register only with the Ministry of Justice and reflects new constitutional changes following the February 2 referendum. There are reports that Muslim groups and mosques have recently received increased scrutiny, and that some domestic religious groups have experienced governmental interference, especially in rural areas. In May 2003, there were reports that local officials closed eight mosques in Suzak District near Jalalabad. In December 2002, the Muftiate announced the formation of an expert commission to review and standardize Islamic educational literature printed and distributed in the country, the construction of mosques, and activity of Islamic groups. The arrest and prosecution of persons accused of possessing and distributing literature of Hizb ut-Tahrir continued to increase. Most arrests occurred in the south and involved ethnic Uzbeks.

Although there is no law on emigration, administrative procedures provide for the free movement of people. Emigrants are not prevented from returning to the country, and there is reportedly a small but steady flow of returnees.

Section 498A(a)(4): "respect international law and obligations and adhere to the Helsinki Final Act of the Conference on Security and Cooperation in Europe and the Charter of Paris, including the obligations to refrain from the threat or use of force and to settle disputes peacefully."

The Kyrgyz Republic has made a strong commitment to the observance of international legal obligations and OSCE commitments. The OSCE opened an office in Bishkek, the capital of the Kyrgyz Republic in January 1999 and a field office in Osh in April 2000. The Kyrgyz Republic is at peace with its neighbors, and is also a strong proponent of dialogue and cooperation among the states of the former Soviet Union. The Kyrgyz Republic participates in Partnership for Peace exercises. It also participates with neighboring Uzbekistan and Kazakhstan in a Central Asian Peacekeeping Battalion.

Section 498A(a)(5): "cooperate in seeking peaceful resolution of ethnic and regional conflicts."

The Government of the Kyrgyz Republic is committed to establishing a multi-ethnic national identity and is particularly sensitive to the concerns of the non-Kyrgyz ethnic groups in the Kyrgyz Republic, although there are credible allegations of discrimination on the part of individual government officials.

Section 498A(a)(6): "implement responsible security policies, including--

(A) adhering to arms control obligations derived from agreements signed by the former Soviet Union;

(B) reducing military forces and expenditures to a level consistent with legitimate defense requirements;

(C) not proliferating nuclear, biological, or chemical weapons, their delivery systems, or related technologies; and

(D) restraining conventional weapons transfers."

The Government of the Kyrgyz Republic has formally declared its willingness and intent to accept all of the relevant arms control obligations of the former Soviet Union. The Kyrgyz Republic acceded to the NPT, as a non-nuclear weapon state, on July 5, 1994. The Kyrgyz Republic signed its NPT safeguards agreement with the International Atomic Energy Agency on March 18, 1998 (Note: However, it does not appear that the agreement has entered into force.). The Kyrgyz Republic is also committed to maintaining a small, defensive military force and National Guard. The Kyrgyz Republic has said that it is strongly opposed to the proliferation of weapons of mass destruction, their delivery systems or related technologies. The Government is taking steps to establish a functioning system of export controls, including work on a new export control law. We have received occasional reports of transfers or potential transfers of conventional weapons to state sponsors of terrorism from or through the Kyrgyz Republic, which we carefully review in light of our legal obligations under the various proliferation sanctions laws. None of these reports resulted in a sanctions determination during the reporting period. We are not aware that the Government of the Kyrgyz Republic has engaged in the proliferation of nuclear, biological, or chemical weapons, their delivery systems, or related technology. The Kyrgyz Republic is a signatory to, but has yet to ratify, the 1993 Chemical Weapons Convention. Additionally, the Kyrgyz Republic has acknowledged it is a successor to the former Soviet Union's obligations under the INF Treaty. Although it does not actively participate in the Special Verification Commission, it continues to observe the Treaty's obligations. The Kyrgyz Republic has not acceded to the 1972 Biological Weapons Convention. The Kyrgyz Republic has not become a State Party to the 1972 Biological Weapons Convention nor has it subscribed to the International Code of Conduct Against Ballistic Missile Proliferation (ICOC).

In accordance with OSCE Vienna Document 1999, the Kyrgyz Republic has submitted the Confidence- and Security-Building Measures (CSBM) annual data declaration for the year beginning January 1, 2004, but did so one week after the December 15, 2003 deadline. The Kyrgyz Republic has not provided information for annual exchanges in accordance with the OSCE Global Exchange of Military Information (since 1995) or the OSCE Document on Small Arms and Light Weapons (since 2001), which we attribute to a lack of resources rather than a deliberate intent not to comply. The Kyrgyz Republic has willingly undergone CSBM inspections and evaluation visits in accordance with the OSCE Vienna Document.

The Government of the Kyrgyz Republic signed the Open Skies Treaty in 1992, but the Parliament has not yet approved it. The Treaty entered into force on January 1, 2002.

Section 498A(a)(7): "take constructive actions to protect the international environment, prevent significant trans-border pollution, and promote sustainable use of natural resources."

The Kyrgyz Republic suffered severe environmental degradation under Soviet rule, and there is broad-based support for domestic protection of the environment. The Kyrgyz Republic has shown an interest in regional cooperation on environmental issues, and has agreed to the establishment of a coordination and information sharing mechanism as a first step toward fuller cooperation on trans-border and international environmental issues. The Kyrgyz Republic is actively involved in bio-diversity issues and is working with international donors to advance bio-diversity studies. The Government of the Kyrgyz Republic has taken steps to establish public policy mechanisms to address environmental issues, including the establishment of a State Committee on Environmental Protection. National environmental NGOs continue to improve their access to the policy-making process on environmental issues.

The Kyrgyz Republic joined the other Central Asian states in the decision to locate the headquarters of a Regional Environmental Center (REC) in Almaty, Kazakhstan. The United States and the European Union support the establishment of this independent, non-profit, and non-political organization, the mission of which will be to strengthen civil society and support sustainable development by promoting public awareness and participation in regional environmental decision-making.

The Kyrgyz Republic has been an active and constructive player in regional and international efforts to alleviate the deteriorating environmental conditions and to foster regional cooperation in the Aral Sea basin. The Government of the Kyrgyz Republic has worked with the World Bank and international donors on a 15- to 20- year plan to stabilize the Aral Sea.

The Government of the Kyrgyz Republic does not grant sanctuary from prosecution to individuals or groups that have committed acts of international terrorism or otherwise support international terrorism. The Kyrgyz Republic is a party to six of the twelve international counter-terrorism conventions. The Government has been extremely supportive of the U.S.-led counter-terrorism coalition, allowing deployment of coalition aircraft from a civilian airport near the capital for operations in Afghanistan.

Section 498A(a)(9): "accept responsibility for paying an equitable portion of the indebtedness to United States firms incurred by the former Soviet Union."

In October 1991, shortly before the Soviet Union dissolved, Russia and nine other Soviet republics signed a Memorandum of Understanding declaring themselves jointly and severally liable for the pre-October 1991 debt to foreign creditors of the Soviet Union. In December 1991, Russia and seven other republics signed an agreement which assigned to each of the newly independent states a share of all the external assets and foreign debt of the former Soviet Union (FSU). The Kyrgyz Republic signed both the October and December 1991 agreements. The December 1991 agreement provided that the Kyrgyz Republic's share of the FSU debt would be 0.95 percent. In 1992, Russia sought to replace the joint and several liability principle by seeking full liability for the debt in return for all the external assets. In August 1992, the Kyrgyz Republic signed a "zero option" agreement with Russia under which Russia will pay the Kyrgyz Republic's share of the debt in return for its share of the assets.

Please see section 498A(a)(9) of the Russia assessment regarding indebtedness to the United States incurred by the former Soviet Union.

Section 498A(a)(10): "cooperate with the United States Government in uncovering all evidence regarding Americans listed as prisoners-of-war, or otherwise missing during American operations, who were detained in the former Soviet Union during the Cold War."

The U.S. effort to uncover evidence of American POWs and MIAs in the former Soviet Union is being conducted through the U.S.-Russian Joint Commission on POWs/MIAs that was established in March 1992. In November 1995, the U.S. side of this Commission made a successful visit to the Kyrgyz Republic. The Commission met with senior government officials, including President Akayev. All officials cooperated fully and pledged to do their utmost to locate information on American POWs/MIAs. There is no evidence of any American POWs/MIAs in the Kyrgyz Republic.

Section 498A(a)(11): "terminate support for the communist regime in Cuba, including removal of troops, closing of military and intelligence facilities, including the military and intelligence facilities at Lourdes and Cienfuegos, and ceasing trade subsidies and economic, nuclear, and other assistance."

We have no evidence from which to conclude that the Government of the Kyrgyz Republic is providing military, intelligence, economic, nuclear, or other assistance to the Government of Cuba.

KYRGYZ REPUBLIC

No. The President has not made such a determination at this time. Nonetheless, we will work to better address existing problems in the area of democracy and human rights both through diplomatic efforts and with assistance programs.

Section 498A(b)(2): Has the President determined that the Government of the Kyrgyz Republic "has failed to take constructive actions to facilitate the effective implementation of applicable arms control obligations derived from agreements signed by the former Soviet Union"?

No. The President has not made such a determination at this time.

Section 498A(b)(3): Has the President determined that, after October 24, 1992, the Government of the Kyrgyz Republic "knowingly transferred to another country --

(A) missiles or missile technology inconsistent with the guidelines and parameters of the Missile Technology Control Regime; or

(B) any material, equipment, or technology that would contribute significantly to the ability of such country to manufacture any weapon of mass destruction (including nuclear, chemical, and biological weapons) if the President determine[d] that the material, equipment, or technology was to be used by such country in the manufacture of such weapon"?

No. The President has not made such a determination at this time.

Section 498A(b)(4): Is the Government of the Kyrgyz Republic "prohibited from receiving such assistance by section 101 or 102 of the Arms Export Control Act or sections 306(a)(1) and 307 of the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991"?

No. We do not have information from which to conclude that the Government of the Kyrgyz Republic is prohibited from receiving assistance by these sections.

Section 498A(b)(5): Has the President determined and certified within 30 days to the appropriate congressional committees that the Government of the Kyrgyz Republic "is providing assistance for, or engaging in, non-market-based trade (as defined in section 498B(k)(3)) with the Cuban Government? If so, has the President taken action to withhold assistance from the Kyrgyz Republic under the Foreign Assistance Act with 30 days of such a determination, or has Congress enacted legislation disapproving the determination with that 30-day period?"

No. The President has not determined that the Government of the Kyrgyz Republic is providing assistance for, or engaging in any non-market-based trade with, the Cuban Government.