U.S. Department of State

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

TURKMENISTAN

Turkmenistan remains a one-party state dominated by its president and his closest advisors. President Niyazov is an authoritarian ruler who has stifled political dissent and presides over a pervasive personality cult. Niyazov maintains a monopoly on political power. A series of unpopular policy initiatives by Niyazov included expanding the draft, increasing the focus on the President's spiritual-social tome Rukhnama, eliminating access to cable television, terminating imports of foreign-language publications, and persecuting former government officials who had fallen from favor. Criticism by the external opposition on new Internet websites grew. Conditions deteriorated after an armed attack on the President's motorcade in November 2002. The Government moved quickly against perceived sources of opposition at home and abroad, requesting that several foreign governments extradite alleged conspirators in the November 25, 2002 attempted coup to topple the regime. Mass arrests and detentions were common with serious abuses of human rights, including widespread credible reports of torture and detention of hundreds of relatives of those implicated in the plot. A new law was adopted broadly defining "betrayal of the motherland" and designating stiff penalties for those convicted under the law. The 50-member unicameral Parliament (Mejlis) has no independent authority, and in practice the president controls the judicial system. Changes to the constitution adopted in August 2003 made the People's Council the premier legislative organ, further displacing the already marginalized Mejlis.

The Government of Turkmenistan severely restricts freedom of speech and does not permit freedom of the press. The Government completely controls the media, censors all newspapers and domestic electronic media, and rarely permits independent criticism of government policy or officials. The only officially registered party is the Democratic Party (formerly the Communist Party of Turkmenistan). Freedom of assembly and association is restricted in law and in practice, as is freedom of religion. Government monitoring of unregistered NGOs, especially those affiliated with minority groups, increased considerably in 2003, culminating in a new law passed in November 2003 making it illegal for unregistered NGOs to accept foreign assistance and criminalizing participation in their activities. All foreign assistance to NGOs must be registered with the Ministry of Justice and coordinated through the Ministry of Foreign Affairs. The Government does not allow any public meetings or demonstrations involving a political agenda or criticism of government policies. The Government attempts to prevent private political meetings and gatherings, including private prayer gatherings, from taking place.

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 Government of Turkmenistan has implemented few economic reforms and many of the half-steps taken in the early years after independence have been reversed. Turkmenistan remains one of the most closed economies in the region. Access to foreign exchange is tightly controlled, with a large difference between the official and unofficial exchange rates. Foreign companies often experience great difficulty in obtaining hard currency to purchase inputs or repatriate earnings. The economy remains overwhelmingly under state control. The Government directs agricultural production through a system of state orders. The European Bank for Reconstruction and Development (EBRD) estimates that the share of the private sector's share of production facilities in the economy is just 25 percent.

President Niyazov's long-term economic plan envisions a gradual transition to a market economy and the use of hard currency earnings from Turkmenistan's natural resources, especially oil and gas, to finance expenditures and soften the impact of the economic transition. Even though Turkmenistan is richly endowed in natural resources, its economy remains fragile as evidenced in part by a high external debt burden. Since Turkmenistan joined in 1992, the World Bank has approved three projects with a cumulative value of $89.5 million. Two of the projects were subsequently cancelled, and the third is on hold. The IFC tried to implement a project for three years without success. Inquiries to the Government on the role of the IFC in Turkmenistan went unanswered, and the IFC liaison officer was withdrawn. Further, the World Bank has not approved loans to Turkmenistan since 1997. The World Bank suspended lending to Turkmenistan because of the Government's failure to report external debt statistics and violations of other World Bank rules. The International Monetary Fund (IMF) has an office in Turkmenistan, but has not received any Article IV data from the Government since 1999 and has not conducted any programs in Turkmenistan since 1998. After ceasing all loans to Turkmenistan in 2000, the EBRD reinitiated its Small and Medium Enterprise credit line in October 2002.

Turkmenistan has laws on foreign investment, banking, property ownership and intellectual property rights, but all are poorly implemented and arbitrarily enforced, and lack of respect for contracts remains a serious issue. The Government introduced its currency, the manat, in November 1993, which has helped it establish an independent monetary policy. However, the currency is not freely convertible. A bilateral trade agreement with the United States entered into force in October 1993 containing intellectual property rights (IPR) provisions, and providing for reciprocal Normal Trade Relations (NTR), subject to the provisions of the Jackson-Vanik legislation. Turkmenistan was not included in the most recent semi-annual reports of countries determined to be in compliance with the Jackson-Vanik freedom of emigration provisions; the President granted a waiver in August 2003 allowing continued NTR treatment. An Overseas Private Investment Corporation (OPIC) agreement entered into force in June 1992. Turkmenistan is a member of the IMF, World Bank, EBRD, the Asian Development Bank, and in December 2001 received full membership in the Islamic Development Bank. Turkmenistan has not applied to join the World Trade Organization.

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

The Government's human rights record remains extremely poor. Law enforcement authorities routinely beat and often torture criminal suspects, prisoners, and witnesses before and after trial. Government authorities detained hundreds of relatives of those implicated in the November 25 plot, some of whom they physically abused and denied access to medical treatment, dismissed from their jobs or university, evicted from their homes without compensation, or limited their ability to travel. The Government restricts civil and political rights, and security agents have used force to suppress political opposition. There is no recognized internal political opposition. Most opposition figures have left Turkmenistan; opposition figures still in the country engage in self-censorship. The Government has attempted to extradite Turkmen dissidents from Uzbekistan, Europe, the United States, and Russia on charges that appear politically motivated. As part of its efforts to foster a sense of nationhood among its citizens, the Government has reversed decades of favoritism toward ethnic Russians. Ethnic Turkmen now receive favored treatment, leading ethnic minorities to complain of discrimination, especially in employment practices. This has resulted in substantial out-migration, particularly by ethnic Russians. In 2003, Turkmenistan ceased allowing its citizens to hold dual Russian-Turkmen citizenship. There were no documented cases of extra-judicial killings in Turkmenistan in 2003.

Following mounting human rights abuses after the November 2002 attack on the presidential motorcade, the Organization for Security and Co-operation in Europe (OSCE) invoked its Moscow Mechanism for the first time in ten years, calling for an OSCE-led independent review of those allegations of human rights abuses. The Government refused to cooperate, and has refused to allow OSCE and International Committee of the Red Cross observers access to the prisoners about whom claims of abuse have been made. In April 2003 the U.N. Commission on Human Rights adopted a resolution condemning human rights abuses in Turkmenistan, and calling on the Government to implement measures identified in the OSCE Moscow Mechanism Rapporteur's report. In November 2003, the United Nations General Assembly adopted a resolution calling upon the Government of Turkmenistan to implement the recommendations outlined in the March 2003 Moscow Mechanism Rapporteur's Report. The resolution also called on the Government to grant the International Committee of the Red Cross, as well as lawyers and relatives, immediate access to detained persons.

The Constitution of Turkmenistan guarantees freedom of religion and does not establish a state religion. However, in practice, the Government strictly controls religious groups. Religious congregations are required to register with the Government. The requirement that religious organizations have at least 500 members in the locality in which they wish to register has prevented all but two religions, Russian Orthodox Christianity and Sunni Islam, from registering. In 2003, the Turkmen Government resumed systematic harassment of minority faiths. The Government tries to control all Islamic activity and appoints all imams. Since 1997, the Government has forbidden the teaching of Islamic theology by imams affiliated with mosques. In June 2001, the Government closed the only remaining independent madrassa in Dashoguz, leaving only one institution for the study of Islam in the country, the Theological Faculty at Turkmen State University in Ashgabat, which is under government control. In 2003, the Government dismissed three imams who refused to include the President's spiritual book Rukhnama in prayers and refused to put copies of the book next to the Koran in their mosques. Some Protestants affiliated with home churches have been harassed, arrested, and fined. On July 2, 2002, Jehovah's Witness Nikolay Shelekhov was sentenced a second time for refusing to perform compulsory military service because of his religious beliefs. In November 2003, the Government adopted a draconian law on religious organizations, stipulating criminal penalties for individuals who participate in the activities of unregistered religious groups. The new law also severely limits contact between congregations and foreigners, including supranational religious hierarchies.

Since 1997, U.S. Presidents have determined that Turkmenistan meets the freedom of emigration provisions of the Jackson-Vanik legislation and the country has received Normal Trade Relations status. However, in early 2003, Turkmenistan reintroduced an exit visa regime that has severely circumscribed Turkmen citizens' freedom of movement. In August 2003, President Bush granted Turkmenistan a waiver of required Jackson-Vanik sanctions, based on government assurances that the exit-visa regime was a temporary measure. On January 7, 2004, Turkmenistan announced elimination of exit visas with implementing regulations to be issued within five business days. We are monitoring the situation to verify that no new impediments to travel are put in place.

The Government restricts movement within Turkmenistan by limiting travel to border cities and regions, having declared these parts of the country "restricted zones." As part of a comprehensive redevelopment plan for Ashgabat and other cities, the Government has forcibly displaced residents from several neighborhoods with less than a week's advance notice and minimal, if any, compensation for their destroyed property.

The Institute for Democracy and Human Rights (IDHR) was founded in 1996 with a mandate to support democratization and monitor the protection of human rights. The Institute is not independent of the Government. Initial hopes that the IDHR would serve as an ombudsman have not been realized.

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 Government of Turkmenistan has a proclaimed policy of neutrality towards other nations and has done nothing inconsistent with its OSCE obligations to refrain from the threat of the use of force and to settle disputes peacefully. Turkmenistan is at peace with its neighbors. The Turkmen military does not currently present an offensive threat to the region or to any of its neighbors. Turkmenistan complies with the Confidence and Security Building Measures (CSBM) in Europe of the 1994 Vienna Document, regularly submitting CSBM declarations and undergoing two CSBM inspections since July 2002.

Following human rights abuses after the November 2002 attack on the presidential motorcade, the OSCE initiated its Moscow Mechanism calling for an OSCE-led independent review of those allegations. The Government has refused to cooperate, and has refused to allow OSCE and International Committee of the Red Cross observers access to the prisoners about whom claims of abuse have been made.

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

Turkmenistan supported regional and international efforts to resolve peacefully the conflicts in Tajikistan and Afghanistan and has played an important role as a conduit for humanitarian assistance to Afghanistan. However, in 2003 there were credible reports of the forcible expulsion of ethnic Uzbeks from Turkmenistan.

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 Turkmenistan has formally declared its willingness and intent to accept all of the relevant arms control obligations of the former Soviet Union. Turkmenistan acceded to the Non-Proliferation Treaty (NPT), as a non-nuclear weapon state, on September 29, 1994. Turkmenistan has not yet signed an NPT safeguards agreement with the International Atomic Energy Agency. Turkmen armed forces are guided by a defensive military doctrine. We are not aware that the Government of Turkmenistan has engaged in the proliferation of nuclear, biological, or chemical weapons, their delivery systems, or related technologies. Turkmenistan is a State Party to the 1993 Chemical Weapons Convention and to the 1972 Biological Weapons Convention (BWC). It has not provided any voluntary annual BWC-related CBM Data Declarations since it became a State Party to that Convention, however. An export control and related border security assistance program with Turkmenistan, including responsible missile nonproliferation policy, is being implemented. Turkmenistan accepted the International Code of Conduct Against Ballistic Missile Proliferation (ICOC) in June 2003. Turkmenistan is committed to a moratorium on nuclear testing. To our knowledge, Turkmenistan has not engaged in any significant level of conventional arms transfers. Additionally, Turkmenistan has acknowledged it is a successor to the former Soviet Union's obligations under the Intermediate and Shorter Range Nuclear Forces (INF) Treaty. Although it does not actively participate in the Special Verification Commission, it continues to observe the Treaty's obligations.

Turkmenistan has submitted Confidence and Security-Building Measures (CSBM) annual data declarations for 1995-2001, although sometimes late. Turkmenistan has willingly undergone CSBM inspections and evaluation visits in accordance with the OSCE Vienna Document.

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

Although Turkmenistan has one of the best developed systems of nature preserves in Central Asia, its Karakum Canal -- badly deteriorated since independence -- contributes to the region's most serious environmental problems, notably in the Aral Sea, by aggravating existing water pollution, pesticide run-off, and water-table problems. International environmental experts have noted these problems may be further exacerbated by President Niyazov's plan to build a vast lake in the middle of the country.

Turkmenistanjoined the other Central Asian states in a decision to locate the headquarters of a Regional Environmental Center (REC) to Almaty, Kazakhstan.The United States and the European Union supported the establishment of this independent, non-profit, and non-political organization, the mission of which is to strengthen civil society and support sustainable development by promoting public awareness and participation in regional environmental decision-making. The U.S. signed an MOU with Kazakhstan and provided a small amount of funding in support of the REC in early 2002.

Turkmenistan is currently engaged in talks with Russia, Azerbaijan, Kazakhstan and Iran on environmental protection of the Caspian Sea. These marine environmental protection talks will include discussion of development of the mineral resources of the Caspian seabed and use of the sturgeon population in a way that protects the Caspian ecosystem.

Section 498A(a)(8): "deny support for acts of international terrorism."

The Government of Turkmenistan does not grant sanctuary from prosecution to individuals or groups that have committed acts of international terrorism or otherwise support international terrorism. Turkmenistan is a party to nine of the twelve international counter-terrorism conventions. Turkmenistan committed itself to the international coalition against terrorism shortly after September 11 and has cooperated on many initiatives.

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 that assigned to each of the newly independent states a share of all the external assets and foreign debt of the former Soviet Union (FSU). Turkmenistan signed both the October and December 1991 agreements. 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 July 1992, the Government of Turkmenistan signed a "zero option" agreement with Russia under which Russia will pay Turkmenistan's share of the external debt of the Former Soviet Union (FSU) in return for Turkmenistan's share of the external assets of the FSU.

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 Commission visited Turkmenistan, where it was warmly received by, and received full cooperation from, the Government of Turkmenistan.

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 that the Government of Turkmenistan is providing military, intelligence, economic, nuclear, or other assistance to the Government of Cuba.

TURKMENISTAN

No. The President has not made such a determination at this time. However, the U.S. Government is deeply concerned about the broad and serious violations of human rights discussed above, particularly allegations of abuse of political prisoners and restrictions on freedom of religion and freedom of movement. The U.S. Government continues to make the protection of human rights, including religious freedom, a central and consistent element of its dialogue with the Government of Turkmenistan as well as a principal focus of its assistance programs.

Section 498A(b)(2): Has the President determined that the Government of Turkmenistan "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 Turkmenistan "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 Turkmenistan "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 indicating that the Government of Turkmenistan is prohibited by these statutes from receiving such assistance.

Section 498A(b)(5): Has the President determined and certified within 30 days to the appropriate congressional committees that the Government of Turkmenistan "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 Turkmenistan under the Foreign Assistance Act within 30 days of such a determination, or has Congress enacted legislation disapproving the determination within that 30-day period?"

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