US Department of State,
15 February 2002
US-Kyrgyz Republic Memorandum on Bilateral Cooperation


The Government of the Kyrgyz Republic and the Government of the United States of America, hereinafter referred to as the Sides,
With deep appreciation for the qualitatively new long-term relations that are developing between the two Sides and that are based on common goals in combating international terrorism; eradicating social, economic, and financial sources of extremism; maintaining peace and stability; and strengthening security in Central Asia;

Noting the dynamic development of political and military-technical cooperation between the two Sides, and the need
to strengthen further the cooperation between them in the economic area;

Recognizing the achievements of the Kyrgyz Republic; taking into account the essential link between democratic and economic development; and conscious of the need for further progress on reforms, in cooperation with the international community, aimed at bolstering economic, financial, social, and democratic development in the Kyrgyz Republic;

Recognizing the importance that the Kyrgyz Republic implement the provisions of its Comprehensive Foundation for Development program for the period ending in 2010, which sets the goal of alleviating the problem of poverty in Kyrgyzstan by enhancing the economy's competitiveness, improving the investment climate, and giving maximum support to development of the private sector and civil society, including non-governmental organizations; and

Recognizing the importance of ensuring the consistent implementation of democratic and market reforms in the Kyrgyz Republic in accordance with OSCE and WTO standards and rules, and emphasizing the need to further intensify the cooperation between the two Sides in this area;

With deep appreciation for the spirit of constructive dialogue and mutual understanding demonstrated during the negotiations between the delegations of the two countries on February 11-14, 2002,

Affirm their desire to further develop cooperation in the following areas:

The Government of the Kyrgyz Republic intends to:

Confirm its commitment to continue to take demonstrable measures to strengthen the development of democratic institutions and to respect basic human and civil rights, among which are freedom of speech and of the media, freedom of association and public assembly, and freedom of religion; and Strengthen its implementation of economic reforms, taking into account the impact on the most vulnerable groups of the population, including compliance with the terms of the International Monetary Fund agreement of December 6, 2001, "On the Mechanism for Reducing Poverty and Stimulating Economic Growth," and joint implementation, together with international financial institutions and donor organizations, of measures aimed at:

-- achieving macroeconomic and financial stability and external sustainability through timely and full implementation of sound economic policies;

-- strengthening policies in the areas of trade, customs and tax policy and implementation, tariff regulation, and protection of intellectual property rights, as well as moving ahead with the process of regional cooperation and phased integration of the Central Asian economies;

-- implementing effective management practices in the public sector, particularly to improve the efficiency of public-sector expenditures;

-- establishing an independent judicial system; and

-- creating a positive investment climate that will attract foreign capital and new enterprises, by ensuring clear and transparent legal conditions that bar corruption and encourage good business and corporate governance, and respect for contractual agreements; as well as by following through on the measures agreed upon at the July 2001 investment "round table" in Cholpon-Ata, Kyrgyz Republic, which include further privatization, strengthening the rule of law, encouraging participation of private capital in the economy, providing additional encouragement for investors, and expanding their participation in the priority sectors of the economy identified at that meeting.

The Government of the United States of America intends to:

-- actively assist the Government of the Kyrgyz Republic to accomplish the priority objectives of accelerating the economic development of the Kyrgyz Republic and advancing the prosperity of its people;

-- support the Kyrgyz Republic's continued efforts to work closely with international financial institutions to achieve sustainable economic growth through sound economic policies of the Government of the Kyrgyz Republic;

-- work intensively to advance programs and projects which serve the mutual interests of the Kyrgyz Republic and its people and the United States, which focus on the Kyrgyz Republic's commitment to implement macroeconomic, financial, and structural reforms aimed at improving the economic prospects of the most vulnerable segments of the population, liberalizing the economy, increasing competitiveness, and developing the private sector, and other areas; and which are implemented through the U.S. Department of the Treasury, the Department of Agriculture, the Department of Commerce, the Agency for International Development (USAID), the Overseas Private Investment Corporation (OPIC), the U.S. Trade and Development Agency, and the U.S. Export-Import Bank, and other relevant financial, trade, investment, assistance, and development bodies of the Government of the United States;

-- encourage international bodies and bilateral donors, including the European Union, the G-8, the United Nations, and others, to enhance their engagement with and support for the Kyrgyz Republic, including in the efforts of the Kyrgyz Republic to participate in the reconstruction of Afghanistan;

-- provide the Kyrgyz Republic with security assistance and economic and humanitarian aid in an amount to be determined; priorities for use of this assistance should be established by consultations between the two Sides; and

-- focus its efforts, through the U.S. Trade and Development Agency and the Ministry of Finance of the Kyrgyz Republic, with the possibility of conducting feasibility studies to mobilize financial resources for investment projects, as should be set forth in detail in a Memorandum of Understanding between the Sides, to be signed in the future.

The Sides declare their intention to take measures that will help to improve and systematize bilateral cooperation in the following areas:

-- financial and economic; -- military and technical; -- trade, labor, and investment; and -- cultural, educational, information, humanitarian, and legal.

In addition, both Sides expressed their willingness to consider the following issues:

1.The possibility of use of the mechanisms of the U.S. Export-Import Bank for investment projects in priority sectors of the economy of the Kyrgyz Republic which are of mutual interest, including in the power generation, energy resources, mining, transportation, light industry, agriculture, and others, with special emphasis on small and medium-sized enterprises.

2.Providing incentives to increase direct U.S. investments in the Kyrgyz Republic; participation by the Overseas Private Investment Corporation (OPIC), in investment projects, privatization of large state-owned enterprises, the development of small and medium-sized private business, and international tourism infrastructure, and other areas.

3.Enhancing the scope of technical assistance to the Kyrgyz Republic under U.S. Agency for International Development (USAID) and/or U.S. Trade and Development Agency (TDA) programs aimed at:

-- development of the banking system through continued assistance in the areas of banking supervision, corporate governance, and legal issues related to bank;

-- jointly produced feasibility studies for attracting to the Kyrgyz Republic U.S. companies and banks participating in investment projects, including in the area of small and medium-sized business;

-- introduction of international quality and certification standards for export products, and the use of up-to-date marketing technologies to promote goods produced in the Kyrgyz Republic on the world market;

-- development of a scientific production base for the introduction of energy-saving and information technologies including e-commerce; and 

-- enhancement of environmental security.

The Sides intend to work diligently and on a regular and sustained basis on the specified issues in this Memorandum of Understanding, with the goal of expanding the economic component of their bilateral cooperation.

In accordance with the foregoing, the two Sides have signed this Memorandum of Understanding in Washington, DC, on February 15, 2002.

For the Government of the United States of America [signed]: A. Elizabeth Jones, Assistant Secretary for European and Eurasian Affairs

For the Government of the Kyrgyz Republic [signed]: Nikolai Timofeyevich Tanayev, Deputy Prime Minister