Postcard from Bishkek

On the 16th November, 1933, diplomatic relations were established between the United States of America and the Union of Soviet Socialist Republics … after a fifteen year hiatus.

The first official contact between Russia and the American colonies actually occurred in 1698.  Diplomatic relations between the two countries were established in 1807, but in the nineteenth century, contacts between the two countries were limited mainly to issues related to Alaska and other Russian possessions in North America … yes, they actually had several settlements further South in California – the most notable being Fort Ross which they occupied for thirty years from 1812 to 1842.  They also had a couple of settlements in Hawaii.    

In 1867, the Russians sold these territories to the United States for the grand sum of USD7.2 million dollars – paid by cheque – wioth something in the region of 110 or 120 million dollars today.  The purchase was somewhat controversial in Washington and was called Seward’s Folly, as many people considered the the US Secretary of State had struck a very bad bargain … it’s funny how history turns out, isn’t it?

In the First World War, the two countries were allies but after the October Revolution of 1917, the United States refused to recognize the Soviet government.  Indeed, between 1918 and 1920 American troops took part in the foreign intervention supporting the White Armies opposing the Bolsheviks.

In America, steps were taken against the communists and the socialist movement in general – the activities of several left-wing organizations were banned.  At the beginning of the 1930s, the Soviet leadership sought to avoid conflicts and provocations, as the country was in the process of profound transformation. Their diplomatic efforts were aimed at expanding and normalizing relations with other states. The major capitalist countries were also interested in cooperation with the USSR, which was seen as a huge potential market.  The rise of Nazism in Germany also created the basis for cooperation between all the European powers.

An important role in the implementation of new foreign policy was played by Litvinov, who was appointed in 1930 as Commissar for Foreign Affairs. During his visit to Washington in 1933, negotiations with the new U.S. President Franklin D. Roosevelt led to the establishment of diplomatic relations between the United States and the Soviet Union.

To mark the occasion, in the Oval Office of the White House, the American billionaire tycoon Armand Hammer, in Litvinov’s presence, presented Roosevelt with a “model” made of platinum, gold, silver and diamonds ​​in 1913 in the workshop of Carl Faberge, of the great Russian river Volga.

 

With the breakup of the Soviet Union, when its constituent republics became independent countries, the USA suddenly found the need for more embassies and diplomatic staff.  They opened their first embassy here in Bishkek fairly quickly – in February 1992.

Since then the US and Kyrgyzstan have had a fairly close relationship, culminating in the establishment of the base at Manas airport in December 2001, to provide logistic support for the campaign in Afghanistan.  The base has had a difficulty and fairly turbulent history … which is about to come to an end; The Ministry of Foreign Affairs has finally delivered the diplomatic note giving formal notice of the end of the lease in the middle of next year.

The base has not always been popular with certain sections of the population.  Indeed, some people see this decision as an example of “popularism” driving policy … possibly even to the extent of doing something which could be detrimental.

Another example of this is the situation surrounding the Kumtor gold mine … even the President, who is on record as saying that he is opposed to Nationalization of the mine, seems to be succumbing to the constant pressure being applied by opponents of the Canadian company that he has had admit that it may be the only way to resolve the current impasse now that the parliament has rejected the restructuring scheme hammered out with the representatives of the company.

There’s been a delegation from the Canadian company here in Bishkek to old new talks with the government – and apparently these took place in a what one participant described as “a tense atmosphere” as the Canadian side refused to accept the new demands for an increased stake of the shares … and threatened to go to court if a compromise couldn’t be reached by Christmas.

At least one other mining company is going to court for international arbitration; a Kazakh company claiming that their license shouldn’t have been revoked … and I believe that two others are also preparing to take cases to arbitration.

Yet another example that has been in the news is the ongoing furore over sex education pamphlets sponsored by UNICEF vy the German aid agency GIZ.

 

All of this could have serious implications for the Kyrgyz economy which is suffering somewhat … although there is some good news … it’s been reported that industrial production is up (almost twice in September what is was the previous year!).

 

Those that say the Kyrgyzstan is a poor country might well be surprised by two stories of robberies in the week’s headlines:

One was from Osh, the country’s Southern Capital, which told of a airport heist where a recently arrived from Moscow was attacked in the airport – and relieved of his luggage … which just happened to contain four and a half million dollars.    In what sounds like a scene out of blockbuster movie, the victim of the robbery refused to take it lying down and gave chase … ramming one of the vehicles in which the thieves were making their getaway … enabling the police to detain one of them … and recover at least part of the cash.

The other concerned a similar incident at Moscow’s Sheremetyevo airport when a resident of Bishkek was shot at and relieved of over one and a half million dollars. Apparently, he had “saved the money to buy an apartment in Moscow” … I know that Moscow has a reputation for being an expensive city but even so – that must be some apartment! … and the guy must have pretty amazing “saving” skills.

As an aside: Quite frankly I find it hard to imaging what one and half million dollars looks like … yet alone four million … and I suspect that it probably true for most of Kyrgyzstan’s population … Fortunately, however, the internet comes to my rescue in the form of a photograph from the Huffington Post – they even have a photo of a hundred million dollars.  The biggest denomination banknote being a Franklin – one hundred dollars – means that means 16000 notes in one case (which ) and 40,000 in the other  … so you can imagine that this is going to involve some quite hefty suitcases.

 Banknotes have been in the news recently … probably as the result of the fact that the National Bank organized a press tour around its facilities which led to some fascinating coverage …

For example, it was reported that currently there us 63 billion som in circulation. 

Some of it, however, is not real - albeit a relatively small proportion of the global sum … it seems that so far this year the authorities have located some 89 forgeries so this year – with a face value of 55260 Kyrgyz Som.  Note that 260 som … which means that it’s not just the high value notes that are being forged … although there were four 5000 som notes discovered,  (each worth just over USD100), there were also eighteen 1000 som notes, (each worth about USD20), twenty two of the 500 som, (USD10), and so on … there was even a forged 10 som note, (worth just USD0.20).  Most of them were discovered in Bishkek, but the odd one turned up in Osh, Djalal Abad, and Issyk Kul.  Of course, what we don’t know is how good the forgeries were … or how many others are still out there in circulation waiting to be discovered.

Most of the coverage however, covered the fate of old and damaged noted that are taken out of circulation … which are shredded and turned into briquettes before being sent for recycling … into cardboard.   It seems that the average lifespan of a banknote is just three years.

BUT … the “prize” for the story of the week … at least in this respect, must go to the account of the pensioner who discovered that her savings – almost 160,000 soms, had been gnawed away by mice … fortunately, she was able to take the remains (of the banknotes, that is) to the National Bank where, (after inspecting them to make sure that they really were parts of real banknotes … and unusable), replaced them for new ones … free of charge … that is, without charging a fee.  I thought Bank Managers were supposed to have a rather unsavoury reputation for being able to squeeze fees out of their clients like “blood out of stones” … but they are not allowed to do so in this particular case … that’s the law here.

 

There has also been a fair amount of news emanating from the Ministry of Defense … and not just about the Manas Transit Center:

If the National Bank has been showing how it destroys decrepit banknotes … the Ministry of Defense went though a ceremony of destroying weapons and ammunition which were deemed “unusable”.

They also showing off some of the new and improved accommodation that they have been building for military personnel – some of which have already been handed over whilst others are almost ready … however there are still some thousand military personnel waiting for accommodation.

New uniforms have been designed and these have been on display … and it was announced that the Ministry is to establish its own garment factory to produce them. lthough Kyrgyzstan provided lots of uniforms for the military during the Second World War, these days the industry tends to be more of a cottage industry.   Having said that, the “sewing industry” is said to be one of the mainstays of Kyrgyz  economy, (yet another one), and Kyrgyz produced clothing can be found throughout the former Soviet countries.  At one time, it was said that many of the garments being sold with well known labels in Moscow was probably sewn in a Bishkek living room.  These days, that side of the business seems to have been clamped down on … and modern designers and small factories are establishing a reputation for themselves.

 

The plight of children has also been in the news this week. Amongst the good news was the fact that the British government and UNICEF have agreed a grant funded project worth almost six hundred thousand pound (just short of a billion dollars – a US billion, that is) aimed at trying to prevent conflict by working with children … especially those that come into contact with institutions and social services.   

Another project, being implemented by British based Healthprom will be building on previous projects and trying to improve provision for Children with Disabilities around the country – according to the latest reports that’s about 25000.  I wrote a postcard about this during the week – and you can find out more on their webpage. 

The sad news is, however, that we have seen a record number of children go missing … and although some have been found, no worse off for their experience, at least two were found, drowned, in the Bolshoi Chui Canal.

 

Among the other news items this week, we learned that the private plane of former President Bakiev was sold at auction for just over five million som – that’s just over one hundred thousand dollars.  There were two bidders and it eventually went to Manas airport.

It was one of seven “objects” that had been “nationalized” following the 2010 revolution that were being sold off to help replenish the government’s coffers.  However, five of the sales never took place … as there were no bids.

The clock tower which forms part of the Kyrgyz Telecom building in downtown Bishkek, (known locally as Bishkek’s Big Ben), has finally got its chimes back … after a thirteen year silence.  The clock was a present from the people of Armenia in 1984 stopped working when its electronics broke down, but repairs have now been completed and will chime the hour from 08:00am to 09:00pm everyday.  At noon, it will sound a 20 second burst of the national anthem,

Although the long term weather forecast say that we are not expecting severe frosts this winter, it’s already turned cold.  Heavy snowfall in Toktogul region this week, (some 30cm),  left 2000 people without power when it brought down some 500 meters of power transmission lines.  Fortunately they have been replaced and the power is now back on.

 

Oh, as usual, there is more … much more … a proposal to reinstate casinos – and the government seems to be backing it(!), some of the political parties have decided to oppose the sale of Kyrgyz Gas to the Russians; there seems to be a growing number of DoS (Denial of Service) attacks on internet websites – including one of the largest news agencies; there was a screening of the first 3D film produced in Kyrgyzstan – and another film is up for awards in a festival in Australia; there’s been more sporting success in the Martial Arts; yet more problems on the border; some pundits are now offering a positive prognosis for the future of the Dordoi and Kara Suu markets if Kyrgyzstan enters the Customs Union – which seems to go against the concerns expressed by the traders themselves; a festival dedicated to the Beatles; and, finally, the murder of a journalist and TV presenter under suspicious circumstances …

 

 

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Postcard from Bishkek: the weekly postcard that I send out as an email also gets posted on the website ianbek.kg each week – and there are other postcards which don’t get sent out.  This week, for example, there has been the following postcards:

 

Tags: In_the_News, Soviet_Union, Weekly_Postcards