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Viewing cable 09STPETERSBURG48, AMBASSADOR BEYRLE MEETS WITH ST. PETERSBURG GOVERNOR

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Reference ID Created Released Classification Origin
09STPETERSBURG48 2009-04-22 08:18 2011-08-24 01:00 UNCLASSIFIED Consulate St Petersburg
R 220818Z APR 09
FM AMCONSUL ST PETERSBURG
TO SECSTATE WASHDC 2752
INFO AMEMBASSY MOSCOW 
AMCONSUL ST PETERSBURG 
AMCONSUL VLADIVOSTOK 
AMCONSUL YEKATERINBURG
UNCLAS ST PETERSBURG 000048 
 
 
E.O. 12958: N/A 
TAGS: RS ASCH BTIO ECON EINV
SUBJECT: AMBASSADOR BEYRLE MEETS WITH ST. PETERSBURG GOVERNOR 
MATVIYENKO 
 
1.  (SBU)  Summary:  In their first official meeting together, 
the Ambassador and Governor Matviyenko discussed the economic 
crisis, U.S. investment, international relations, and various 
housekeeping issues related to the Consulate.  The meeting was 
cordial and Governor Matviyenko was clearly willing to engage on 
the issues. 
 
2. (SBU)  Matviyenko was upbeat on St Petersburg's economic 
development, despite the economic crisis, and said that the city 
government had paid substantial attention to small and medium 
business development and was continuing to do so during the 
crisis.  She was particularly proud that the city's budget 
situation is better than had been expected several months ago 
when the crisis first began to bite, with revenues higher than 
expected.  She partly credited this good news with lowered taxes 
on small and medium-sized business, which had encouraged their 
growth and led to the increase in city tax revenues.  Matviyenko 
also stated the city's unemployment rate had not increased 
dramatically, and that it was still less than 1%. 
 
3. (SBU)  Governor Matviyenko was upbeat about American 
investments in St. Petersburg, stating they had grown by 5% over 
the past year and are now worth $2.3 billion - putting the U.S. 
in 6th place among the city's foreign investors.  She identified 
information technology as an area for future American 
investments, as the city is creating a new special economic zone 
with an IT technology park to encourage outside investment.  The 
Ambassador noted the important role played by U.S. business and 
reminded the Governor of their first brief conversation at the 
opening of GM's $300 million plant near St Petersburg last 
November. 
 
4. (SBU)  Matviyenko shared her personal observations about the 
ongoing relationship between the U.S. and Russia.  She had 
traveled to the U.S. about 30 years ago with a group of young 
Soviet leaders, and said she was disappointed that the cold war 
mentality she saw in the U.S. then has persisted to this day. 
She noted that on her most recent trip to the U.S. in 2005, many 
people asked her the same questions which they had asked long 
ago with the same underlying premise that Russia was an enemy 
power.  As further examples of cold war attitudes continuing to 
influence U.S foreign policy vis-a-vis Russia, she cited both 
the Jackson-Vanik amendment and the ongoing difficulties 
associated with Russia's accession to the WTO.  The Ambassador 
underscored the importance of both sides working to expand 
cooperation, keep differences in perspective, and help dispel 
outdated Cold War notions of one another. 
 
5. (SBU)  The Ambassador thanked the Governor for her decisive 
role in identifying a new site for the Anglo-American school. 
Matviyenko told the Ambassador that the legal process needed for 
the school project to move forward would be completed within 10 
days.  (Note:  The decision was made within three days.  We're 
grateful.) The Ambassador also raised city plans to redesign the 
street where the Consulate is located and expressed our concern 
that the planned changes would infringe on Consulate security. 
The Governor promised to look into changing the city's plans. 
(Note:  She has already made good on this promise as well)  The 
Ambassador and Matviyenko agreed to keep each other informed on 
developments surrounding the June 5-8 St. Petersburg Economic 
Forum, including with respect to the composition of the official 
U.S. delegation. 
 
GWALTNEY