President Saakashvili

Dear members of the delegation, dear journalists.

I would like to welcome our friend, the President of Kazakhstan Nursultan Nazarbayev to Georgia.

Mr. Nazarbayev has not been to Georgia for almost ten years; therefore it is a very significant visit.

Within these years Kazakhstan has reached a tremendous success in the economic development.

Kazakhstan has become an example of economic reforms in the post Soviet space and an example of prosperity for its citizens.

When talking about the Asian phenomena or the phenomena of South Korea and other Asian "tigers", it must be emphasized that in the near future Kazakhstan will become a new European "tiger" from the economic development point of view. In this respect our collaboration with Kazakhstan is of key importance.

We have full mutual understanding on every issue.

Georgia and Kazakhstan have many common interests - including transport, energy and tourism infrastructure.

We have quite enough potential to make Kazakhstan one of our key partners in economic cooperation.

We study lots of things from Kazakhstan and of course share our experience with each other.

I believe that political development of Kazakhstan and the aims formulated by President Nazarbayev - to achieve political and democratic development - enhance public welfare and simultaneously develop democracy and political system.

This is a clear vision of how the country and the whole region should move forward. I think it deserves full support and encouragement.

We view our cooperation on a regional level.

You know that Georgia intensively cooperates with the countries of this region. We also have very good relationship with our Caucasian neighbors and we cooperate closely with Turkey.

We are now negotiating with Turkey on the construction of a new railway Turkey-Akhalkalaki. A new gas pipeline from Azerbaijan will start operating next year.

Within the next few days with the Azerbaijani President we are opening the Georgian section of the oil pipeline.

With the President of Ukraine Victor Yushchenko we have signed a Borjomi declaration. In the beginning of December the leaders of Romania, Ukraine, Georgia, and Lithuania will gather in Kiev.

We do not exclude the possibility that the leaders of the other big European states will participate in this meeting.

We have made new practical steps for strengthening democracy in the region and for developing new cooperation ties with the countries of the European Union and our region.

I consider the Borjomi declaration to have a historic importance not only for our countries, but for the whole region.

In this respect Georgia pursues a very active policy. We are very grateful to Noursultan Nazarbayev and all the officials of Kazakhstan for being such reliable partners.

All the issues we deal with are moving forward and are being solved.

It is about not only signing the memorandum and drawing the plans, but about a real cooperation with the consideration of real mutual interests.

It seems plausible also with Kazakhstan.

I would like to thank you once again.

You have seen how warmly Nursultan Nazarbayev was welcomed in Adjara yesterday.

You have seen tens of thousand of people welcoming the Kazakh President with flags and exclamations.

It once again demonstrates those warm feelings the Georgians experience towards the people of Kazakhstan and its President.

Thank you.

Nursultan Nazarbayev

I am very thankful to President Mikheil Saakashvili for initiating this official visit.

I always knew that the Georgians and Kazakhs are and have always been, even in the remote past, very close to each other by their hospitality, openness and dignity.

Maybe the journalists have forgotten, but the Georgian King David IV the Builder in the 12th century married a daughter of a Kibchag (Kazakh ancestors) Khan Artek and fought Seljuks here around Tbilisi and actually promoted unification of Georgia.

But we, the descendants of that Kibchags, came back here to support you.

Historical changes took place in Georgia within the last years.

We read different things, observe and study what is going on. But nothing can replace what you have seen at least once.

I became sure that the situation in the country is stable. I compared the economic reforms taking place here with those we had had few years ago in the difficult times, after the fall of the Soviet Union.

Unfortunately they [reforms] are taking place here only now.

Our own experience convinced me that the reforms held by the Georgian leadership under President Saakashvili are right.

This is a nice surprise.

I want to add one more thing - the beginning of mass privatization and radical reforms should awaken the interest of investors.

To come to Georgia, to participate in tenders and to buy plants in order to make business here is profitable both for Georgia and for the investors.

The Kazakh business that is trying to stand on its feet has lots of potential. I believe it is the very moment for our business to get here.

The visit of President Saakashvili to Kazakhstan last spring laid the foundation for our relations. During this time our companies, ministers and the prime minister made a great work together. Hence my visit to Georgia became possible.

I am very thankful for all that warm and friendly welcome Georgia hosts our delegation with.

I know it is caused by President Saakashvili's personal attitude towards me and Kazakhstan in general.

I would like to inform you that we have just signed a document and have agreed on certain things within the frames of this document.

Kazakhstan has specific economic interests in Georgia and this is the reason I am here.

First of all it is about transport communications through Caucasus to Georgia.

We want to get access to the Black Sea with our oil, and sell goods.

Secondary, we want to take part in the privatization process, construction works and buying industrial plants.

Thirdly, we are interested in having tourism business on the Black Sea cost.

According to my calculation the shortest way to get to the Black Sea from our port of Aktau to Batumi takes only an hour.

There is no other sea closer to Kazakhstan and we will work on this [Black Sea] project. Also transportation of grain, wine, citruses and other products from Georgia to Kazakhstan.

Exchange of reforms experience, experience in political modernization of society that Kazakhstan also follows, has a big importance for the both countries.

Georgia and Kazakhstan have common views in many issues of the international politics.

We both support an anti-terrorism coalition, both participate in fight against extremism and drug trafficking.

Kazakhstan supports the UN resolution on territorial integrity of Georgia and stands against any kind of separatism.

We have many common positions. We do not have political or economic problems, which means that we will cooperate.

Mr. Saakashvili spoke well about the neighbors that Georgia cooperates with, as well as we do. And I hope that Russia will join this cooperation also, as it is also beneficial for him to have good, friendly, developing neighbors with strong economies.

I think we will work in this direction.

I would like to thank you all once again, personally you, Mr. President, and wish you all the success in the difficult road you have embarked on.

An international support that you receive is an important incentive. It is very important to use this situation appropriately.

We, the Kazakhs, believe that Georgia is very close to prosperity and social welfare.

I would like to tell the people of your country from my own experience that it takes 3-5 years for these kinds of reforms to bring fruits.

The people should wait; no sing reform in the world went without difficulties, pain, unemployment etc. One has to be patient and there will be success and welfare in the end.

We have proved that in Kazakhstan, we know that.

Thank you very much

Alexander Aksiutin, Khabar agency

- I would like to ask a question to the Georgian President. Mr. President as an international authoritative analysts say the success of the Kazakhstan reforms was conditioned by the fact that we always placed economy above politics. Now when active reforms are being carried out in Georgia what can you tell about the nature of Kazakhstan reforms.

Mikheil Saakashvili

First of all I'm very grateful to Mr. Nazarbayev for what he has said. Of course we have to be patient. These reforms are radical, but efficient. Everybody acknowledges it. The World Bank in its survey recognized Georgia to be the second in carrying out reforms and in the pace of liberalization, in the world. It is very important for us.

Secondly, it requires patience. We observe the economic reforms in Kazakhstan with great interest. There would not be a real political development without prosperity and public welfare. This is absolutely obvious.

It is clear, that political development together with an economic welfare leads the country to success because freedoms, including economic and political freedom, are very interconnected.

There cannot be only political or only economic freedom in a country. Because, if a person cannot move freely, cannot easily transact business, develop, invest, and is afraid of the law enforcement bodies and of government's pressure there would not be any development. Kazakhstan by promoting free business and by economic reforms has gone pretty far. To my mind the following stage of development should be a political and democratic development because they are too interconnected.

There is no democracy when people starve. But there is no economic prosperity without free society. I've read Mr. Nazarbayev's message to the Kazakhstan Parliament submitted in the beginning of the year with great interest. Political and democratic development program is precisely formulated in this massage. I think this vision is very correct; many countries have developed this way. We wish Kazakhstan all the success on this road.

I know how actively the society supports its president, all the surveys show it. It is even enough to glance at Kazakhstan's pace of development to understand the reason of this support. I think that the results of all these reforms will come out after 10 and 100 years. 500 years will pass and the Kazakh society will also be proud of the fact that within these decades Kazakhstan became an example of not only economic but of political development. In this respect, I think, there will be huge successes.

Political democratization through economic development is just the very model, which the others should study with great interest. This year Georgia will also have almost 10 per cent growth, despite price increase on oil. The point is not just the fact that the country is growing but the fact that the revenues are redistributed.

This year twice more people took a rest on the Black Sea than in the past year. It means that there appeared a middle class, which can afford taking a rest at the seaside. This year Georgia will sell twice more wine abroad than in the past year, owing to the fact that Kazakhstan removed barriers on our production. We also cooperate with other countries, for example with Ukraine. So we carry out an active policy.

We can assist in entering the markets and in studying the general climate. It is up to the business itself to do the rest of the things. I think the Kazakh business is impressive in this respect. This year I met with a lot of Kazakh businessmen. Their flair for business always impressed me. It is no longer a Soviet or post Soviet business. It is already a modern, rational business. A modern business cannot exist without economic freedom. It would not develop on its own. One can't do it with order. When there is an economic freedom business becomes normal and successful. Because of this I would like praise Kazakhstan for everything it is doing.

Of course, there are many other questions. It is necessary to work with international organizations. I welcome the initiative of President Nazarbayev to invite international organizations and observers at the elections in order to enable them study everything in advance. Everything must be transparent and I am absolutely sure of it.

Kazakhstan, unlike many other countries, does not have problems with the presence of the foreigners. On the contrary, Kazakhstan has invited us and many other countries. It is very important, as it shows that the country is rapidly developing, is strong and is not afraid of either its own shadow or anybody else. It believes in its strength, in the stability of the political system and wants development in the further.

- I would like to ask a question to the both Presidents. You have already discussed the issue of bilateral cooperation and new investments. I wonder, are there talks about gas export from Kazakhstan to Georgia and whether Russia opposes it.

Nursultan Nazarbayev

Certainly it is a very important question for Georgia. We held talks on this issue and our governments have received concrete tasks in order to solve the issue of delivering the Kazakh gas to Georgia. We hope we will solve this issue in the near future. I believe we will find a common language with Russia, which will serve as a transit country. In this regard we are having mutually beneficial business with Russia.

Mikheil Saakashvili

I think this is really a very important agreement, which we have basically reached, on the delivery of the Kazakh gas on a very good, mutually beneficial terms for Georgia. For the first time this winter Georgia, theoretically, will not have electricity shortage, because we already have gas turbines. We basically double gas consumption. In this sense we have gained a very important partner. I think we have intersecting interests with Russia since the Russian enterprises that operate on our territory consume this gas.

We have Russian chemical enterprises on our territory, Russian enterprises with gas turbines, etc. Of course it is within Russia's, Georgia's and Kazakhstan's interest to develop these relations. Basically, I must say that there are problems with the political rhetoric, however the Russian business also started operating in Georgia, which we certainly welcome.

Yesterday we have agreed with Noursultan Nazarbayev to build a new hotel in Kobulati where the Kazakhs will come to take a rest. If after a year there appears the Russian complex, then French and English - we will welcome it of course. But we will always remember that Kazakhstan was the first to start.

It is very important. I would like to say that once Kipchags (ancestors of Kazakhs) rescued Georgia. Now the main square of the capital of Georgia, which we are reconstructing now, will completely be in the Kazakhs hands. Today we are opening a construction of the hotel Iveria at this square.

- I would like to ask a question to President Saakashvili. As you know by 2009 Kazakhstan takes over the chairmanship of the OSCE. What is Georgia's position over this issue?

Mikheil Saakashvili

Georgia fully supports it. I think in Kazakhstan, especially at that time, all these transformations will give even greater benefit and it won't be just another chairmanship of the OSCE but rather a chairmanship, which can really make the OSCE an active organization in our region. Frankly speaking, the OSCE could not mange to play any special role in the conflicts resolution. By that time, I think, both political and economic development as well as other tendencies in Kazakhstan will enable it play a really serious, a main role in the solution of the issues in our region. Certainly, Georgia fully welcomes it.

I would like to say that we have the most pleasant relations with Kazakhstan within the CIS. Kazakhstan never creates problems to anybody. On the contrary, it always aspires to solve problems. And it not only my experience. It is the experience of the last decade, last 15 years. In this case, I think, the personality of Mr. Nazarbayev and the Kazakh character in large is very important. They never created problems to anybody. Despite the fact that all the problems were created to them they managed to solve them and find salutations by peaceful and open means. Therefore any kind of participation of Kazakhs in the international process is useful for us and we really count on it.

- The project also envisages the development of transport transit potential. Could you please comment on this issue in more details?

Nursultan Nazarbayev

At Caspian Sea coast we have built the largest port Akhtal on the Caspian Sea, which is capable to transship up to 15 million tons of oil and some millions of tons of dry-cargo ships today. Simultaneously the second port, similar to this one, is being built, that will work on a route from Kazakhstan through Caucasus to Black Sea and to Europe. Because of this reason I was interested in visiting Adjara and a port in Batumi. It has a valuable potential and I am very grateful to Mikheil Saakashvili and the head of government of Adjara for giving us such a possibility to find out such opportunities.

The second issue is the railway rout from Baku to the Black Sea, which is of great importance for the transportation of metals - non-ferrous and ferrous metals, ferroalloys, grain, and other cargoes.

After 10 years Kazakhstan will be in first ten suppliers of oil in the world market, and neither Baku-Ceyhan nor the Russian routes will be enough for us.

Therefore we are discussing the issue of an additional, old oil pipeline. If we together restore this pipeline it could serve as a very good artery and you as a transit country will benefit of it. Now we are talking about a highway to be built from Turkey to Akhalkalaki and which will serve for us an access to [Europe] and which will take just three ours. It means much for the big trade with Turkey which we are carrying our now.

Now Turkish construction and industrial companies are working in Kazakhstan. This transit will also pass through Georgia. In general, we should all try to utilize our countries' transit potential. Kazakhstan by passing through Europe and Asia, through Russia, China and Southeast Asia does exactly this. As for aviation, railway and automobile transportations, we are seriously interested in them. Here our ministries and the government, I think, will work very actively, and we the presidents will control it. It is an important part of our cooperation.

Mikheil Saakashvili

I would like to add, that the Georgian railway will transport almost twice more oil, than in the last year. It means, that our budgetary revenue will grow and the turnover will also increase as a whole. As you know a new port in Kulevi is being built which also expands an infrastructure for the transportation of the Kazakh oil. However our railway is able to process almost twice more even now that it processes today. And when it is able to fully exploit its potential we shall consider other opportunities and will modernize it.

Construction of a new Karsi-Akhalakalaki railway is being started. In March together with the Americans we are starting constructing a new highway, which will bring totally new opportunities for transit from Azerbaijan through Georgia. And we all have to understand that this is not going to be just a road or some corridor - but it is an economy. An infrastructure will be built around this [transit route], it will be an opportunity to create new working places, enterprises. It will become easier to export our products and make them competitive.

In other words we are building the infrastructure that had been thoroughly destroying within the last 15 years. In that respect, I totally agree that economic development of Kazakhstan is not just an exemplary, but is also a possibility to support all the other countries of the region. Some countries accept this, some not. But in the process of reforming, it is much easier to synchronize open economies than the closed ones, more of a feudal type. This is absolutely obvious.

On one hand the main is [to have] economic freedom not only in our countries but on the whole space - low tariffs, freedom of movement of people, goods etc. And from the other hand very important is democratic development of the whole region. Democracy has no alternative. This is absolutely obvious.

Every country has its own period and stage of development, but all this is interconnected. I think from this point of view our countries will be slowly moving forward. Visit of Nursultan Nazarbayev is really historic, as we are achieving concrete results. We are not speaking generally. Mr. Nazarbayev does not like speaking generally. He even said he would not come until he sees actual results. Last year I invited him but the visit didn't take place until we finish working on all the issues, until we went through all the points and solved the issues of gas and infrastructure. This is a perfect example of a new type of relations, including relations within the CIS framework.

I wish every country followed this example.

Communications Office
of the President of Georgia