ussian President Vladimir Putin has said Russia and Uzbekistan might take "certain preventive measures to prevent any agression either against Russia or Uzbekistan". Speaking at a news conference in the Uzbek capital, Tashkent, on 19th May Putin said there were some forces planning to "re-divide" the post-Soviet territory and if they were not stopped "in the south" Russian would have to deal with them on its territory. Uzbek President Islam Karimov said that Russia was the country which would "do everything" to protect Uzbekistan's territorial integrity and independence. Karimov said Russia had had and would always have interests in Central Asia, and Uzbekistan recongized that. The following is the text of the news conference broadcast by Uzbek radio the same day:

[Karimov] Dear ladies and gentlemen. I want once again to welcome [Russian President] Vladimir Vladimirovich [Putin] and the all members of the Russian delegation. We see as very symbolic the fact that Vladimir Valdimirovich Putin's first official visit as the Russian Federation's president is being made to Uzbekistan.

Bilateral relations between Russia and Uzbekistan are becoming consistent and are based on trust, equality and mutual respect in the spirit of strategic partnership. This involves first of all cooperation in the economic, political, humanitarian, military and technical fields, in the field of ensuring regional security and the security of our two countries.

I want to express satisfaction with our talks with Vladimir Vladimirovich which were constructive and, I would say, confidential. We talked about the state of and prospects for Russian-Uzbek relations, the problems of regional security and a set of urgent issues which we have to sort out.

I want to note that during each meeting we manage to find new forms of bilateral cooperation which would meet the interests of both Uzbekistan and Russia.

As has already been said, during the talks we discussed the issues of regional security. Today, the international community should have no doubts that behind terrorist aggression and religious extremism, attempts to destabilize the situation in Central Asia and the North Caucasus and other regions are international extremist centres with huge resources and capabilities, which have far-reaching plans. Our positions and assessments of the nature, I will repeat, the nature, of this dangerous threat coincide.

During the talks we paid a lot of attention to the issue of expanding bilateral economic relations as the most important foundation for comprehensive, multi-faceted cooperation between the two countries.

Russia is Uzbekistan's major trade and economic partner. It is pleasing that according to this year's first quarter results, the trade turnover went up 9 per cent. At the same time, we are saying without ambiguity that there are huge reserves which we are not using. We have to take these opportunities through joint efforts.

I want to express confidence that the agreements we signed today on the expansion of cooperation between administrative and territorial units of the Russian Federation and the Republic of Uzbekistan and on international motor transport will give a new impetus to the establishment and expansion of direct ties between our countries' regions and specific economic entities.

I want to take this opportunity to once again express satisfaction with the talks held, both with our, [changes track] with Vladimir Vladimirovich, the conversations yesterday and the official talks today.

I am convinced that these talks, as well as Vladimir Vladimirovich Putin's first visit in December last year, will create new opportunities to raise our relations to a higher level.

Thank you for your attention.

[Putin] Let me say a few words as well, dear ladies and gentlemen.

First of all I want to draw your attention to what has just been said by my counterpart, the Uzbek president, and want to confirm that indeed the fact the the Russian Federation's delegation is in Uzbekistan, and the fact that this is the Russian president's first foreign visit after the inauguration, and that the first visit is being made to Uzbekistan, is not an accident. It is not an accident, because since December last year, since our first meeting in Tashkent, the level of trust, cooperation and understanding between the two state has been rising. Cooperation is developing in all areas.

There are areas, of course, which have not yet been [changes track] demand additional efforts from both sides in order to give them a boost. However, as a whole, the trend in the development of our relations is very positive and we highly assess it.

Uzbekistan and the Russian Federation have the same or close positions on all the issues we discussed yesterday and today, they either coincide or are very close to one another.

We indeed considered a whole set of issues of mutual cooperation, starting from humanitarian issues to economic problems and also the military and technical and military issues, which we cannot but be concerned about.

In this connection I want to stress that the important work being done by Uzbekistan's leadership to ensure its security and which is supported by its allies, including Russia, is not only supported and understood in Russia, but our joint efforts to ensure security in this part of the world and fight terrorism, international terrorism will be stepped up and more closely coordinated, up to taking certain preventive measures to prevent any aggression either against Russia or Uzbekistan.

You know that two [military] excercises have been held since December last year. They have been conducted successfully. They resulted in additional coordination of our cooperation in the military field. We will also continue work in the military and technical fields. These are approximately the issues which were discussed at the meeting with the president of Uzbekistan. I only wanted to note in conclusion, I spoke about this at an extended format meeting and now I want to reiterate this before journalists: What is particularly important is that the receiving party, our Uzbek colleagues, are able to create favourable conditions for talks. This is the opportunity to talk in free, in fact, in homely conditions, the opportunity to have an exchange of views in a narrow format meeting of experts and to talk in a formal atmosphere at the interstate level with experts from various fields at an extended format meeting. All the formats chosen and coordinated between our foreign ministries will make it possible to reach substantial agreements, in an informal but very important direction for developing mutual relations between the Russian Federation and Uzbekistan. I want to thank the president of Uzbekistan and all Uzbek colleagues who took part in that joint work during our trip to Uzbekistan for that. Thank you for your attention.

[Voice] A question from Russian Public TV, if it's possible. One of the most important tasks in this region is to fight terrorism and religious extremism, as has been said already. But if you don't mind a question to both presidents - did you manage to achieve mutual understanding and a rapprochement of positions on this problem?

[Karimov] Yes, you are absolutely right that such questions are becoming practically a priority and I would say, very acute. We are meeting at the level of presidents and ministers of the appropriate departments and structures. Naturally, mechanisms and solutions need to be worked out which would make it possible to secure, to guarantee regional security and the security of the individual countries. You are expecting us to reveal what specific measures are guaranteed in these understandings, what sectors or fields this will involve.

I can say quite unequivocally that I am highly satisfied with the statements which were made today by Vladimir Vladimirovich at an official level when we held discussions at the level of delegations, when we held talks. The statements are very important and symbolic. I would say that Russia today, as it were, is a country which will unequivocally do everything to guarantee the territorial integrity, the inviolability of the frontiers and the independence and sovereignty of Uzbekistan. We in Uzbekistan have always recognised and unequivocally assessed the interests of Russia in the region . In our turn, I can state that we are satisfied with such statements. We say in our turn that yes, our interests in those spheres fully coincide. As for precise figures, I can say that, today, at the stage of development [changes tack] or there are already agreements or about 28 precise agreements are being drafted in accordance with which military-technical cooperation will acquire some precise and tangible indicators and I am confident that this will have a tangible effect on our defences, on our capability to repulse every claims or aggressions against and claims - which, unfortunately, have not been removed yet - to not only Uzbekistan but Central Asia. This is all that I can say on this issue.

[Putin] As for Russia, I would determine our country's position as follows: I think it is no secret that lately many attempts have been made to re-divide the post-Soviet space in a criminal and terrorist way. Extremism, including religious extremism is being used as the main link, after which come armed terrorists as the second echelon. There is no doubt that an arc of instablility has been created along the southern borders of the former Soviet Union.

Today these [the Central Asian countries] are the closest countries to the Russian Federation which have a considerable Russian population. The Russian Federation has both humanitarian and economic interests here. They are our major partners and, of course, Uzbekistan is one of these major partners.

It is obvious for us that a threat to Uzbekistan is unequivocally a threat to the Russian Federation. I will put it simply and pragmatically, if we do not understand this, if we do not stop these aggressive aspirations jointly with our Uzbek friends here, in the south, then we will have to deal with them on our territory. It is obvious and clear to us and there is no doubt about this.

That is why we, together with the Uzbek president, spent a lot of time discussing these issues. It is not a secret that we not only allocated time for this, but discussed the problem with maps in our hands. We know where possible threats may come from. We know what forces and means we need to counter these threats.

I must tell you unambiguously that no-one in Uzbekistan or in Russia has doubts about the extent of these threats and how real and obvious they are.

The talks yesterday and today gave use confidence that there is understanding between the Russian and Uzbek leaders and that this is our common task and our common concern. Thank you.

[Voice] This is Uzbek TV. Here is a question for the two presidents. Once the countries kept each other at distance, as it were, but now an overt turning point in mutual relations has occurred. Another interest may have arisen which we are ignorant of, since you, Vladimir Vladimirovich are here for the second time and speak about warm, informal relations. What do the countries mean for each other in big-time world politics and in the CIS space? Thank you.

[Putin] You know, [coughs] actions speak louder than words. We see that the president of Uzbekistan and the Uzbek leadership are building relations with Russia on a very pragmatic basis, proceeding from their national interests. We see this. But we also see another thing. We see a real readiness, a real interest in the development of bilateral relations between Uzbekistan and Russia. We see that this interest is beginning to be implemented in practical steps and we are not only ready but we intend to respond to these distinct signals on the part of Uzbekistan because we, ourselves are interested in the development of economic and humanitarian and other relations, which I mentioned today.

As I already said, a considerable number of Russians and Russian-speaking citizens live here. Purely [Russian] economic interests are concentrated here, and from that point of view, mutual relations between our enterprises and between economic entities remain very close. Our aircraft producers and your aircraft producers were set up on a single base and single basis. Our consumers of equipment produced in Uzbekistan are ready to receive this equipment and to use it in those vast areas which we know exist in Russia. Our consumers of the textile industry, of course, are interested in receiving raw cotton. There is an interest in receiving agricultural produce, that, at any rate, not produced in the Russian Federation.

As you already heard, we have common concern in the security sphere. And finally, the circumstance is of no small importance that my and the Uzbek president's personal relations are forming well. And I must say frankly, it is a pleasure to visit Uzbekistan. This is a very good base for the development of interstate relations. This all results in, recently, as you noted utterly correctly, the fact that Uzbek-Russian relations are intensifying and developing very positively.

[Karimov] In short, I want to say the following on this issue. We, in Uzbekistan, always have recognized, and I have said this officially and have never refuted my statements and words, that Uzbekistan has always recognized that Russia has had, has and will have interests in Central Asia, in this region. The sort of power, the sort of country that Russia is has its own interests and will have its interests, and we, as a key country in Central Asia, have always recognized and will recognize these interests. The phrase "to keep each other at a distance" I would say, is slightly impolite, because speaking about my policy, the policy I have pursued, or the government has pursued, I would not use the phrase "to keep each other at a distance". I would rather use another expression. Yes, in many positions, some time over the last years, following the USSR's disintegration and when we became independent states, our views and our assessments and our stances were at variance. So, that turning point which is occuring today before your eyes, is happening precisely because these divergences are virtually being removed today. In our assessments, starting from political, so to speak, approaches, and ending with concrete special economic interests, we are finding common stances, points of rapprochement. We are striving so that our interests coincide. And I am sure that in the civilized world there has no, has not been and will never be a return to the so-called fraternal, false relations, which are not built on a serious economic or a geopolitical basis. And in this respect, our interests today are so similar that we cannot but speak about this. And this is felt not only in our statements, in Putin's and my statements, or our concrete executives, but this is viewed in concrete deeds.

And, above all, I repeat once again what I have repeatedly said. If Uzbekistan is threatened with a serious, so to speak, danger, aggression and ill intentions, the signs of which are clearly seen near our southern borders today - they are visible, they are concrete [changes track] Last year, the Batken events which occurred in the south of Kyrgyzstan showed again and again that this was not simply talk, but this was a concrete, so to speak, plan, a very tough, very serious plan. Last year's half-baked intentions in the south of Kyrgyzstan were only reconnaissance. Take note, they began in August, August. In early August the borders were trespassed and the gang, the first gang found itself in the south of Kyrgyzstan. At the same time, Botlikh in Dagestan [seized by Chechen militants who declared the intent to set up a separate Islamic state] also began in August. I see in this definite, so to speak, synchronous single approaches from a single centre. And in this respect, when we feel this danger, naturally any state, any president who is in my place would seek what? Protection. In this world, a country, the sort of country like Uzbekistan will not be in a position to protect itself. I state this absolutely responsibly, because no certain state is disposed against us, but I will definitely repeat, [there is] a centre which has enormous resources. And with respect to this, we, naturally seek protection for ourselves. And we find this protection in the person of Russia.

This is one of the areas where our interests have been getting closer. And we, in the near future [changes tack] I hope that these common approaches, these common assessments with Putin's advent as president [changes track] I told him frankly yesterday, I already have, rather or somewhat different approaches.

I, personally, as president, see and experience the feeling of simple human trust for this man. A man who commits himself, a man of principle, a man who can set serious tasks and who can achieve these tasks. And I am impressed with this. It is possible to work with these people, as the Russians say, it is possible to carry out reconnaissance with these people. Everything has been said with these words. There is, so to speak, the personal factor, the factor of mutual liking which exists today. And let journalists hear about this from the concrete persons who say this. Let them hear from me and from Vladimir Vladimirovich. Yes, there is liking and it plays a role of no small importance in understanding the policy being built by both states. Here is what I wanted to reply specifically to this question.

[Putin] If you allow me, I will only add to what Islam Abduganiyevich has said concerning Russia's interests and Uzbekistan has recognized these interests. I must note the Uzbek leadership also has great interests in Russia and not in the last instance, economic interests. And we recognize and respect these interests of Uzbekistan in Russia. On the basis of this declaration and mutual respect for these interests, on the basis of complete non-interference in internal affairs and so on, our relations are being built on this interstate basis. Recognizing and respecting each others' interests, both in our own countries and in the region. Thank you.

zbekistan's energy holding company Uzbekneftegaz has invited investors to develop eight oil and gas fields requiring total outlays of $242 million, the company said in a statement released late on Thursday. The fields, developed at present by Uzbekneftegaz, include North Shurtan, South Kyzylbairak and Shakarbulak, which together yield 646,000 tonnes of oil a year (13,000 barrels per day).

The South Tandyrcha, Gumbulak and Dzharkuduk fields produce 2.5 billion cubic metres of gas and 90,000 tonnes of condensate a year, the statement said. Uzbekneftegaz said that $25 million in investments would also be needed at the Umid and South Kemachi fields in order to boost output to 100,000 tonnes of oil, 30,000 tonnes of gas condensate and 2.0 bcm of natural gas per year. It did not mention their current production levels. The other two projects are for a $45 million gas compressor station at Gazli and a $20 million plant to utilise flared gas at Kokdumalak. Uzbekneftegaz also announced it would invite foreign investors to bid for stakes in four of its subsidiary companies.

These include gas transportation monopoly Uztransgaz, refiner Uzneftepererabotka, drilling agent Uzburneftegaz and prospecting company Uzgeoneftedobycha. The tenders for the stakes will be held in 2001. The Central Asian state has so far lagged behind its neighbours in attracting foreign investment because of its restrictive economic policies. But the government says it will open up the economy and remove capital controls this year.

ussian President Vladimir Putin and Uzbek leader Islam Karimov pledged on Friday to fight together against religious extremism and terrorism in former Soviet Central Asia. Putin was making his first foreign visit since his inauguration on May 7, choosing strategically important Central Asia to try to reassert Russian influence over an area with which relations were cooler under his predecessor Boris Yeltsin. Putin was greeted with pomp by Karimov, who has visibly warmed to Russia, alarmed by the rising tide of Islamic fundamentalism in his impoverished country.

"Any threat to Uzbekistan is also a threat to the Russian Federation," Putin said. "If we do not understand this and cannot stop the agression in the south, then we shall have to deal with it at home."

"We shall step up our joint efforts to guarantee security in this region, in the fight against terrorism," Putin added.

"We shall coordinate our activities even more closely and...focus on preventive measures aimed at destroying any agression, be it against Russia or Uzbekistan."

The Uzbek leader changed his mind about pulling out of a defence treaty with Russia last year after narrowly escaping death in a bomb attack attributed to radical Moslems.

"In this world a country like Uzbekistan cannot defend itself. So naturally we seek help from Russia," Karimov said.

He said "personal factors and mutual sympathy" were among the reasons for his new friendship with Putin. Putin, with his wife Lyudmila on her first trip as first lady, arrived in the Uzbek capital Tashkent late on Thursday on the first leg of a Central Asia tour. He was scheduled to fly to neighbouring Turkmenistan on Friday.

Putin has been the driving force behind Russia's military campaign in the Caucasus region of Chechnya, where it is battling separatist rebels Moscow considers terrorists. Central Asian leaders say the same forces, aided by external groups, including the Islamist Taleban militia in Afghanistan, are fomenting terror in their region. The leaders said 28 agreements would shortly be signed in the defence and military infrastructure spheres.

ussian President Vladimir Putin is continuing his trip round the countries of Central Asia. At the end of the talks in Tashkent the leaders of the two countries, Russia and Uzbekistan, stated that the sides had achieved mutual understanding with regard to all issues.

[Russian President Vladimir Putin] It is obvious to us that the threat to Uzbekistan is at the same time a threat to the Russian Federation. And I will say to you in a primitively pragmatic manner, that if we are not going to understand this and if we and our Uzbek friends do not stop these ugly strivings here in the south, then we shall come across them in our own country. This is quite obvious to us, it is understandable and there can be no doubt about it.

[Uzbek President Islam Karimov] I can say unequivocally that I am extremely satisfied with the statement that Vladimir Vladimirovich has made on an official level. And then we had discussions, had talks of a very important, I would say significant order, involving the delegations, to the effect that Russia today is as it a were a country that will unambiguously do everything necessary to guarantee the territorial integrity, the inviolability of the borders and the independence and sovereignty of Uzbekistan.

radical turn in relations towards mutual confidence between Russia and Uzbekistan should be regarded as "a great achievement", deputy chief of the Russian president's staff Sergei Prikhodko quoted Uzbekistan President Islam Karimov as saying.

Prikhodko informed on Friday reporters of progress in talks between the two heads of state. The tete-a-tete talks between the Russian and Uzbek presidents are now in progress, he noted. The sides intend "to lay down a rock-firm economic foundation" for Russian-Uzbek relations, Prikhodko emphasised.

The fact that their meeting on Thursday lasted over three hours, can serve as an indicator of the level of relations between the two presidents. It was attended by the heads of foreign ministries, defence ministries and other members of the delegations. Participants in the meeting noted that it was of informal nature: conferees drank green tea which turned to be one of favourate brands of the Russian president.

Prikhodko said the fact that "the visit to Uzbekistan and Turkmenistan was the first foreign trip by the Russian president after the inauguration", points to importance of relations with the Central Asian republics.

ussian President Vladimir Putin has said he is "happy with the results of the visit to Uzbekistan". Putin is now in Uzbekistan with a working visit.

"I had open and constructive talks with President Islam Karimov," Putin said at a news conference in Tashkent. "Our relations will continue to be built on the intergovernmental basis, on the acknowledgement of and respect for each other's interests and on non-interference into each other's affairs." Then the Russian president stressed: "I believe that the two presidents mutual regard, which appeared during my visit to Uzbekistan, will get deeper and give out peoples more opportunities to learn about each other and respect each other."

The Russian president completed his visit to Uzbekistan and flew off from Tashkent to the capital of Turkmenistan, Ashkhabad.

he presidents of Russia and Uzbekistan found mutual understanding in the course of their summit in Tashkent, Uzbek President Islam Karimov has said. The talks between the two leaders covered bilateral cooperation, regional security, the matter of Chechnya and combating international terrorism, Karimov told the press on Friday. "The complete coincidence of our views on these issues should not be called into doubt," he said. Other issues discussed included the trade between the two countries, which has increased by 9 per cent of late and can expand even further, the Uzbek president said.

ussian President Vladimir Putin has warned of the danger to the former Soviet republics posed by religious extremism and international terrorism.

"It is common knowledge that attempts are under way to carve up the post-Soviet lands along criminal lines with the aid of religious extremism and international terrorism," Putin told the press in Tashkent on Friday.

"An arc of instability has emerged in the republics on Russia's doorstep," Putin said, and Russia supports Uzbekistan's effort to promote security in the region.

"Speaking bluntly and practically, if we do not stop international terrorism here we will face it at home," Putin said.

Combating terrorism was high on the agenda of his talks in Uzbekistan, the president continued. "We discussed this issue with a map and in specific terms. We know where the threat emanates from, we know what must be done," he said.

Cooperation in this field will increase and may go as far as taking preventive steps, he said, mentioning two recently conducted joint Russian-Uzbek military exercises.

"Large centres of international terrorism are at work against us. We seek and find help in Russia, especially with the advent of Putin, who can formulate goals and find ways to achieve them, and whom I trust completely," Uzbek President Islam Karimov said in turn.

ne can describe relations between the two countries as "positive; our stances on all issues either coincide, or are very close". This is how, speaking to journalists, Russian President Vladimir Putin has commented on the results of his working visit to Uzbekistan and talks with Uzbek President Islam Karimov. The Russian president said: "Russia and Uzbekistan have formed relations of high-level trust, the foundations of which were laid during my visit to Uzbekistan in December in my capacity as head of government."

"I am leaving the Uzbek land with a feeling of deep human trust in the head of the Uzbek state. For the benefit of our peoples, we have formed good relations on an official level, but also, I would say on an informal and everyday level," Vladimir Putin stressed.

yudmila Putin, the wife of the Russian Head of State, accompanying her husband on his official tour of Uzbekistan, will pay independent visits to ancient Samarkand and Bukhara, the cities with 2,500-year history.

On Thursday evening, Mrs. Putin will arrive in Samarkand with Tatiana Karimov, the wife of the Uzbek president. Friday will see Russia's First Lady touring the city. The program of her stay in Samarkand includes a visit to secondary school 17. Later on Friday, Lyudmila Putin and Tatiana Karimov will fly to Bukhara, another museum-city of Uzbekistan, whereafter the wife of the Russian leader will leave for Moscow.

n May 18, Ms. Molly O'Neal, Charge D'Affaire of the U.S. Embassy in Uzbekistan and Minister of Foreign Economic Relations Elyor Ganiev signed an agreement allocating ten million dollars to Uzbekistan for the purchase of some 52,000 tons of U.S. hard wheat. The signing ceremony took place at the Ministry of Foreign Economic Relations.

This grant was made under provisions of U.S. Public Law 480, Title One by the U.S. Department of Agriculture through a 30-year long-term credit to the government of Uzbekistan. According to the terms of the agreement, the U.S. government will also cover the entire cost for ocean transportation of the wheat.

Public Law 480 (P.L. 480), Title I is also known as the Food for Peace Program. The objectives of this program are to combat hunger and malnutrition; promote broad-based, equitable and sustainable development, including agricultural development; expand international trade; and develop and expand export markets for U.S. agricultural commodities.

The Food for Peace Program provides for government-to-government sales of agricultural commodities to developing countries under long term credit arrangements. Repayment for agricultural commodities sold under this title may be made either in U.S. dollars or in local currencies on credit terms of up to 30 years, with a grace period of up to seven years.

Local currencies received under Title I sales agreements may be used in carrying out activities in the recipient country such as developing new markets for U.S. agricultural commodities on a mutually beneficial basis, paying U.S. obligations, and supporting agricultural development or research. Other objectives of the program include improving food security, alleviating poverty, and promoting broad-based, equitable, and sustainable agriculture in the importing country.

In 1999, the United Stated also allocated ten million dollars to Uzbekistan through the same program. Last year's grant allowed Uzbekistan to import approximately 33,000 tons of soybeans.

Uzbekistan harvested 4.3m tonnes of grain last year, compared with 4.1m tonnes in 1998, the CIS Intergovernmental Statistics Committee has reported. The country's grain needs, including emergency reserves, are estimated at 4.5m to 5m per year.

he foundations have been laid at Navoiazot [Navoi Nitrogen, in central Uzbekistan's Navoi Region] production corporation of a caustic soda producing plant, which will be built jointly with the German Lurgi [Chemnitz] firm. Foreign technological equipment has been purchased through a DM50m credit granted by the Berlinerbank. The first consignment of the equipment has been already delivered to the enterprise under construction.

The new plant is being built by the Southern Construction and Assembly Enterprise and the Construction and Assembly Department of the Navoiazot plant. It is planned to put into operation the first section of the plant by the end of the year. The annual capacity of the new enterprise will be almost 30,000 tonnes of caustic soda.

ussian Foreign Minister Igor Ivanov called for implementing bilateral agreements in practice. Ivanov told journalists before the Russian-Uzbek summit on Thursday that the talks will focus on the situation in Central Asia, cooperation in the fight against international terrorism, the settlement of the Afghan conflict and economic and military- technical cooperation. "We are open for broadest cooperation," the Russian minister added.

he Russian-Uzbek summit will give a new impetus to bilateral military cooperation, a Russian high-ranking military official said. In an exclusive interview with Itar-Tass on Thursday, Leonid Ivashov, head of the Main Directorate of International Military Cooperation of the Russian Defence Ministry, said that Russia and Uzbekistan will continue to develop military-technical and military cooperation.

"Today I cannot name a measure which was suspended. Everything is going under the earlier agreements. The treaty signed by Vladimir Putin and Islam Karimov is a legal foundation on which we built our cooperation", Ivashov said.

"We have progress on all directions without any exceptions. This regards the strengthening of contacts and exchange of experience on military construction and the fight against international terrorism and religious extremism... Both sides are also solving the problem of Russian hardware supplies to Uzbekistan," the military said.

The Defence Ministry expects the results of Putin's visit to Tashkent to allow "Russian and Uzbek military to expand their cooperation", he added.

On the Kosovo problem, Ivashov noted that it will be on the focus of a session of the Russia-NATO Permanent Joint Council to be held in Florence at the end of May.

"We are going to put forth constructive initiatives at the PJC session. We are sure that this session should not be a solemn event, but we should rivet our attention on European security and bilateral relations", he said.

Ivashov, who is accompanying Putin during his visit to Uzbekistan, noted that each PJC session "should end by reaching concrete agreements".

Apart from the Kosovo problem, the session will also discuss joint efforts to fight international terrorism and drugs trafficking, and European security.

ussia and Uzbekistan reached an agreement on Uzbek gas supplies, which will amount to five billion cubic metres, Gazprom chairman Rem Vyakhirev said. Vyakhirev told Itar-Tass on Thursday that "we had already signed almost all documents. And everything is going excellent". Vyakhirev is in Uzbekistan to accompany Russian President Vladimir Putin on his visit to Tashkent.

ishes and books fell from shelves and nervous residents ran into the streets before dawn today when an earthquake shook the Uzbek capital of Tashkent. Police said there were no immediate reports of serious damage or injuries in Tashkent. The epicenter of the quake, also felt in neighboring Tajikistan, was in Afghanistan, the ITAR-Tass news agency reported.

zbekistan's President Islam Karimov has no doubt that Uzbekistan and Russia will remain close. "Russia was among those who gave unambiguous answer to my question as to who will side with Uzbekistan when its sovereignty and territorial integrity are threatened and who will help reinforce its frontiers," Karimov said in Tashkent on Friday, answering questions of reports.

He said Uzbekistan and Russia are equally concerned over many problems, above all, problems of security, stability, and of combatting international terrorism, extremism, narcotics trafficking and organised crime. Karimov noted that the creeping expansion of religious extremism threatens all and it is important that everybody be aware of this danger.

zbekistan will have to develop its economy on the basis of small and medium businesses in such sectors as the light and food industries, Kazakh analyst Yaroslav Razumov wrote in `Panorama' No 19. He said that to guarantee its political stability Uzbekistan would have to find new economic sectors able to employ "the maximum number of the surplus able-bodied population". He said the setting up of small private enterprises manufacturing consumer goods might be the solution. The following is the text of the report taken from the Kazakh newspaper `Panorama' web site on 15th May:

Traditionally the assessment of the state of affairs in the economy of Uzbekistan was very polar: some experts believed that the neighbouring country considerably lagged behind in the pace and directions of economic reforms, while others noted that the fact that the state had managed to preserve its control of the economic processes was a big plus. It was on the plus side for Kazakhstan that it enjoyed unconditional leadership in the volume of foreign investments attracted and the participation of Western businesses in its economy. Uzbekistan enjoys a higher level of economic independence from external factors, in particular, from exports, which enabled it to experience less painfully the impacts of the Russian crisis in 1998-99. While the major successes of the real sector of Kazakhstan's economy have concentrated on support for and the development of the metallurgical and oil and gas sectors, traditional from Soviet times, while Uzbekistan has managed to develop some new directions as well, in particular, oil extraction, supplying itself with its own oil products, at least for the nearest future. Kazakh experts also have differing assessments of such experiments in the neighbouring state as the formation of domestic machine-building industries, which should be most interesting for us, making it possible to consider our own potential in this direction.

Nevertheless, it is obvious that Uzbekistan will be forced to look for some new models of economic policies. Taking into account the specific features of that country and the entire region, one can assume that these new sectors may be orientated not on the capital intensive and not on the usual spheres, such as machine-building, but on development through the mechanisms of small and medium businesses in such spheres as the light and food industries. The availability of a rather cheap domestic raw materials base and quite skilled manpower, of a high domestic market capacity (as well as an external market of almost the same capacity, including Kyrgyzstan, Tajikistan, Turkmenistan and at least the southern regions of Kazakhstan) makes the successful development of these directions quite possible.

One cannot but recall one more important factor: Uzbekistan's stability today is challenged internally more than any that of other country of the region. Tashkent has no factors making the stability problem less acute, such as emigration (in Kazakhstan). This makes it vital for the authorities in Uzbekistan to immediately find new economic sectors able to employ the maximum number of the surplus able-bodied population. And this way out may be the traditional one for poor countries with large populations: a considerable number of small private enterprises orientated on the production of consumer goods (remember, China, Pakistan, Turkey and Arab countries with no rich oil reserves took that very road). Certainly, the quality of these goods, especially at the first stage, will be far from international standards, although quite acceptable for the larger part of the Central Asian market.

At present, it is difficult to believe that our neighbours will be able to conquer that segment of the market, not for objective reasons, but due to existing stereotypes. Still, it is enough to go round the commodities markets of Almaty to see that goods from Kyrgyzstan occupy a considerable place. Although they cannot compete with goods from China in quantity, they have become an important factor able to influence it to a certain extent. And the potential of Uzbekistan is considerably higher than that of Kyrgyzstan. If economic reforms in Uzbekistan move ahead in this direction it is not ruled that soon domestic [Kazakh] producers will have to compete on their own market with not only Chinese goods. In this case plans to revive the domestic [Kazakh] light industry and some other sectors will become very problematic. The borders, or in this case their notorious transparency, may serve as an additional negative factor for us. If the flow of Chinese goods [into Kazakhstan] can be somehow regulated, albeit with difficulty, by closing the borders from time to time, such a measure will not work with Uzbekistan.

Obviously, Kazakhstan must force the revival of those sectors of industry which our neighbours in the region have the potential to develop. The fact that our economies, our economic and social problems cast a substantial reflection on each other is pushing Central Asian countries towards the immediate restoration of former sectors of the economy and whoever is quickest off the mark will win the race.

t the invitation of the president of Uzbekistan, Islam Karimov, the president of the Russian Federation, Vladimir Putin, will pay a two-day working visit to the Republic of Uzbekistan on 18th-19th May this year.

Russian newspapers have said the talks might include a discussion of aid to Afghan commander Ahmad Shah Masood, whose forces are fighting the ruling Taleban movement and, earlier, bedevilled Soviet occupiers during the 1980s.

he delegation from the German Kreditanstalt fuer Wiederaufbau (KFW) bank headed by a member of the KFW board of managing directors, Peter Klaus, is making a visit to our country primarily to find out about the progress of economic reforms in Uzbekistan, implementation of joint projects and the prospects for further cooperation. During the visit the delegation had meetings with representatives of the republic's government and heads of ministries and departments.

Amendments were signed to basic agreements which were signed earlier on opening a DM530m credit line for the National Bank of Uzbekistan. These amendments envisage financing investment projects not only in DM, but in euro and US dollars as well.

The members of the delegation had discussions with the leadership of the National Bank of Uzbekistan on the progress of implementation of a credit line refinanced through the National Bank of Uzbekistan designed to support small and medium business, as well as opportunities for further cooperation in the commercial finance sector. The KFW delegation also held talks at the republic's Ministry for Foreign Economic Relations.

eading U.S. companies, such as 3M, Agilent Technologies, and General Electric, will forge relationships with representatives from eight Caspian region countries, when the U.S. Trade and Development Agency (TDA) sponsors The Caspian Health Care Symposium in Tashkent, Uzbekistan from June 5 to 7, 2000.

The Caspian Health Care Symposium will focus on the transformation of health care in Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan through importing U.S. technology, equipment and services. Business opportunities for the symposium range from the acquisition of medical equipment to procurement of pharmaceuticals.

With the recent discovery of massive oil and gas reserves, the Caspian region provides substantial opportunities for foreign direct investment and growing exports. The health sector has been identified as presenting significant possibilities for U.S. exports of equipment and expertise. "When these countries begin to build an economic surplus, one of the first areas they are going to improve is health care," said J. Joseph Grandmaison, director of TDA.

More than 30 business opportunities have been identified for the symposium, many of which already have financial backing from the World Bank. In addition, representatives from the European Bank of Reconstruction and Development, International Finance Corporation, Export-Import Bank of the United States and Overseas Private Investment Corporation will be on hand to make presentations and discuss the financial aspects of doing business in the Caspian region.

Prime Minister Utkur Sultanov of Uzbekistan will welcome U.S. companies to the symposium. Dr. Thomas Novotny, director of the Office of International and Refugee Health at the U.S. Department of Health and Human Services, will give the keynote address. U.S. companies will then have the opportunity to sit down with the Ministers of Health from representing countries in one-on- one meetings to further discuss upcoming projects. "This symposium will help U.S. companies get their foot in the door in a region that has enormous potential," said Grandmaison.

The U.S. Trade and Development Agency assists in the creation of jobs for Americans by helping U.S. companies pursue overseas business opportunities. Through the funding of feasibility studies, orientation visits, training grants, various forms of technical assistance, and meetings such as this business outreach session, TDA enables American businesses to become involved in the planning stages of infrastructure and industrial projects in developing and middle-income countries.

n May 16, Mr. John Post, Deputy Director, Office of the Coordinator of U.S. Assistance to the NIS, Ms. Molly O'Neal, Deputy Chief of Mission of the U.S. Embassy in Tashkent, Murat Khodjibekov, Uzbekistan's Deputy Minister of Health and Karkalpak Minister of Health, Damir Babanazarov participated in a ceremony in which medical supplies and equipment from the United States were presented to the Nukus Emergency Hospital.

Part of this medical shipment, valued at approximately $374,000, will also be donated by the U.S. government, to the First and Second Tashkent Medical Institutes, the Pediatric Clinic, the Love Foundation, the Oncology and Radiation Institute, and the Surgical Institute.

These medical supplies and equipment are a follow-up to the U.S. Government's "Operation Provide Hope's" 500th Flight which began in August 1997. A team of military medical specialists from the United States is coming to Uzbekistan for one month to upgrade and repair the medical equipment donated in the 500th Flight mission.

Since 1991, the U.S. government has provided Uzbekistan with more than one hundred and ten million dollars worth of medical commodities and technical assistance. This assistance has come from programs administered by USAID, the State Department, the Department of Defense and through private donations

The United States Government is working closely with the Uzbek Government in its Strategic Plan for Health in the 21st century. As part of this strategy, President Karimov has proclaimed 2000 as "The Year of Healthy Generations." The U.S. Government, through the United States Agency for International Development (USAID), is also working with authorities in Ferghana Oblast on reforming and restructuring the financial and management components of its primary health care system. Recently, USAID in collaboration with the World Health Organization (WHO) implemented a tuberculosis control initiative in five pilot sites throughout Uzbekistan.

Other ongoing USAID activities include a reproductive health education program for woman and adolescents, a child survival project, an emergency health partnership and the delivery of humanitarian assistance shipments.

eneral Anthony Zinni, Commander in Chief of the U.S. Army's Central Command, was in Uzbekistan from May 14-17 for a series of meetings and consultations with high- level government officials. During General Zinni's visit to Tashkent, he met with Foreign Minister Abdulaziz Kamilov, Minister of Defense Yuri Agzamov, as well as with other senior civilian and military officials. General Zinni's consultations covered a broad range of bilateral military and regional security issues of mutual interest to the United States and Uzbekistan.

On May 15, General Zinni was a guest speaker at a conference on "Promoting Security in Central Asia." The latter included representatives from the five nations of Central Asia. The May 15-19 conference was co-sponsored by the George C. Marshall Conference Center in Germany and Uzbekistan's Academy of Armed Forces.

The U.S. Army's Central Command is headquartered in Tampa, Florida. Centcom is responsible for promoting peace and regional stability among the nations of the Middle East, Central and South Asia and Northeast Africa. In addition to overseeing bilateral military relations between these countries and the United States, the U.S. Central Command is actively engaged in sponsoring military education exchange programs. Centcom also provides humanitarian assistance during times of natural disaster and other emergency situations in the region.

government delegation of the Republic of Uzbekistan led by Foreign Minister Abdulaziz Komilov arrived in Dushanbe on 16th May. The Uzbek embassy in Dushanbe has told Asia-Plus about this. The purpose of the delegation's visit was to sign an agreement on mutual travel by the citizens of Uzbekistan and Tajikistan. The delegation also consisted of Interior Minister Zokirjon Almatov and senior officials of the two ministries.

he Central Asian state of Uzbekistan said on Tuesday it was opening up its key uranium sector to foreign investors by inviting them to develop five uranium deposits with proven reserves of 27,000 tonnes. The State Geology Committee's mineral and raw materials department head Gerald Kamagurov told reporters that foreign companies would also be allowed to explore for uranium at two sites believed to contain up to 29,000 tonnes of the metal.

"For the first time, the State Geology Committee is offering uranium projects for joint exploration and development with foreign investors," Kamagurov said at an exhibition on the eve of a conference on the Uzbek economy.

Uzbekistan produced 2,300 tonnes of uranium in 1999. The entire output came from the Navoi Mining and Metallurgical Plant. The country's proven reserves are about 80,000 tonnes and and estimated reserves are put at 178,000 tonnes.

Kamagurov said joint ventures would have to be created to develop five uranium mines -- Aktau, Aulbek, Alendy, Koscheka and Dzhantuar. All are located in the Kyzylkum desert. Foreign companies could be allowed to work independently on the East Toktinyntau and Dzhengeldy fields, which are being offered for exploration, he said.

This would be a departure from the usual practice under which foreign companies are required to create joint ventures in order to operate in the metals sector. The secretive country has lagged behind its neighbours in foreign investment despite its wealth of natural resources because of its restrictive economic policies. The government has promised to ease capital controls this year.

o consolidate the positive and deep-going changes achieved of late in relations between the Russian Federation and two Central Asian republics -- Uzbekistan and Turkmenistan -- is one of the main tasks of Russian President Vladimir Putin's visit to these countries on May 18 and 19.

Sergei Prikhodko, Presidential Chief of Staff, has told a briefing for journalists that Putin is to leave Moscow by air on Thursday on his way at first to Tashkent where after laying flowers in the Square of Commemoration and Honours, an official welcoming ceremony, and a dinner he is to have a one-on-one meeting with Uzbekistan President Islam Karimov.

On the next day in the morning Russo-Uzbek talks are to be held at first in a narrow format and later on in a broader format, after which Putin is to meet the press, then leave for the airport and depart for Ashgabat. Upon arriving in Turkmenistan, the Russian President is to hold talks with his Turkmen counterpart Saparmurat Niyazov. A number of inter-agency documents will possibly be signed during the Russo-Turkmen talks.

Prikhodko emphasised that special attention during the forthcoming talks both in Uzbekistan and Turkmenistan would be devoted to strengthening cooperation in the foreign policy sphere, economic and military-technical cooperation matters, a solution to the debt problem, the situation in the Commonwealth of Independent States, and the fight against religious extremism and international terrorism.

Along with these matters, figuring importantly on the agenda of the talks will be a discussion of cross-border cooperation matters and an exchange of views on the situation in Afghanistan, Tajikistan, and Central Asian republics. Putin and Niyazov will also touch upon cooperation in the fuel and power sphere, the oil and gas sector, the Caspian Sea status, matters connected with the trans-Caspian gas trunkline.

Tashkent airport's customs officers have prevented two attempts to smuggle drugs. The customs officers found suspicious the behaviour of a Tajik citizen, Igor Batashev, as he was checking in for a Tashkent-Novosibirsk flight. Over 0.5 kg of heroin was found inside his boots as a result of a search.

A Tashkent airport customs officer, Hamza Aliqulov, told us that attempts to smuggle drugs hiding them in personal belongings had become quite frequent, in particular, drug traffickers prefer to hide drugs inside their boots.

Another trafficker of the white death was detained at the customs check point for attempting to smuggle into a northern town of a neighbouring country 600 g of heroin hidden inside his boots.

An investigation will find out what forced this man, a baker, Mirsodiq Abduvohidov, to engage in this dangerous business.

n Uzbek delegation made up of Foreign Minister Abdulaziz Komilov and Interior Minister Zokirjon Almatov arrived in Dushanbe on 16th May. The same day Tajik President Emomali Rahmonov received the guests from the neighbouring country. After the meeting Abdulaziz Komilov met journalists.

According to a Khovar news agency correspondent, the Uzbek foreign minister said that at the meeting with the Tajik president they had had a constructive dialogue on a number of problems concerning bilateral relations. They also discussed issues of interaction betwen the two countries to ensure security in the Central Asian region. In this connection, one of the topics at the talks was cooperation between Tajik and Uzbek power-wielding structures in line with the bilateral agreements signed over the past few years.

Asked about purposes of the introduction by Uzbekistan of a visa regime for Tajik citizens, Abdulaziz Komilov said that so far they were talking only about a bilateral agreement on citizens' mutual travels. Its aim is to jointly try to step up control over the movement of unwanted criminal elements across the two countries' common border.

As for the other citizens, for them the said document envisages a more liberal and simplified procedure for crossing the Tajik-Uzbek border, the Uzbek minister said. For example, the residents of the 20 Tajik districts bordering on Uzbekistan have the right to travel to the country without a visa. In a word, the question is not about putting up some barriers on the border, but about regulating the movement across it, Abdulaziz Komilov said.

he World Bank on May 11 approved a US$29 million loan for an urban transport project in Uzbekistan that will improve quality, reliability, and sustainability of urban transport services in five cities -- Samarkand, Namangan, Bukhara, Nukus, and Almalyk.

The improvements in transport services will translate into better access for employment, markets, social services, and social networks for the 1.4 million residents of the project cities, many of whom are poor and highly dependent on public transport. The project includes the following components

· Provision of new buses and the establishment of a commercial leasing scheme for their allocation to competent private and state-owned operators on the basis of full cost recovery;

· Rehabilitation and repair of existing buses of the state-owned operators;

· Strengthening of private and state-owned urban transport operators through the provision of technical assistance, training, and office and workshop equipment;

· Improvements in the institutional, financial, and regulatory framework for urban transport services through the provision of technical assistance, training, and office equipment;

· Support to the Project Implementation Unit in project management and procurement through the provision of technical assistance, training, office equipment and funding of its incremental operating costs.

The total cost of the project is US$31.45 million, including US$2.45 million from the government of Uzbekistan. The loan has a maturity of 20 years, including a 5-year grace period, at the Bank's LIBOR-based, variable spread and rate single currency rate for US dollars. Since Uzbekistan joined the World Bank in 1992, commitments total US$458 million for 11 projects.