The End Of Secrecy_ The Rise And Fall Of WikiLeaks Part 14

2. (S/NF) While in London for the September 3-4 P5 Conference on Confidence Building Measures Towards Nuclear Disarmament, U/S Tauscher held separate meetings September 2-4 with Foreign Secretary David Miliband, Simon McDonald, Head of the Foreign and Defence Policy Secretariat at the Cabinet Office, Mariot Leslie, Director General, Defence and Intelligence, Foreign and Commonwealth Office (FCO), and Jon Day, MOD Director General for Security Policy. The British interlocutors underscored that the UK welcomes U.S. leaders.h.i.+p on nonproliferation, disarmament and arms control. FS Miliband expressed appreciation for President Obama's Prague speech, observing that the process for getting to "a world at or close to zero in terms of nuclear arms is not a straight line" but is long and complex. McDonald said that for the last forty years the nuclear states have downplayed the obligation to spread civil nuclear power and to disarm; President Obama's leaders.h.i.+p presents an opportunity to change that dynamic. DG Leslie observed that UK decision makers are "fired up by how the President has made the (nonproliferation) agenda his own." Prime Minister Brown wants to "refresh and refurbish" the Nuclear Nonproliferation Treaty (NPT), she said. DG Day said he was "delighted" that the U.S. has "resumed leaders.h.i.+p" on nonproliferation, arms control and disarmament.

Maintaining P3 and P5 Unity

3. (S/NF) Leslie stressed that the UK position is "really very similar to your Administration on nearly everything." The UK's goal is for the P5 to work well together but we should "not scare the horses," which means "not scaring off the French" and "keeping the Chinese and Russians on board." She acknowledged that it was "hard to get everyone together" for the 9/3-4 P5 Conference, but expressed hope that it would help cement P5 unity in the lead-up to the NPT Review Confererence (RevCon). Day acknowledged that the 9/3-4 P5 Conference was not a vehicle designed to make progress by "leaps and bounds." He stressed that "the engagement is valuable" and would help cement P5 unity.

4. (S/NF) We need a strong, but unanimous, signal from the UN Security Council (UNSC) at the UNSC Heads of Government Summit, Simon McDonald stressed, noting that the first draft resolution was a disappointment. The UK interlocutors agreed on the importance of P5 unity at the summit, as well as on the importance of close P3 and P5 coordination in the lead-up to the summit and to the NPT RevCon. McDonald also observed that Libya was on the UNSC and that the P5 should take positive note of the fact that Libya has made a "strategic s.h.i.+ft" on nuclear proliferation.

France and P3 Unity

5. (S/NF) DG Leslie said that the UK had done a "lot of hard work and expressed a commitment to disarmament...and the French are uncomfortable with this." Leslie said that the UK "gets on well" with the French, but the French are "excessively worried about what they view as unilateral UK disarmament." She said that P3 talks would help maintain P3 unity; "We need to rea.s.sure France," she said. Leslie characterized closer U.S.-France relations as "extremely healthy."

6. (S/NF) U/S Tauscher, Leslie, and Day agreed to regular P3 meetings, starting in October, to help cement P3 unity. French interlocutors also agreed, during separate bilateral meetings with Tauscher, on the importance of regular P3 consultations.

Missile Defense and the Nuclear Posture Review

7. (S/NF) U/S Tauscher described the Missile Defense review underway in Was.h.i.+ngton, with emphasis on countering the Iranian missile threat to Europe with proven technology. She also described the Nuclear Posture Review (NPR), which would replace the 2002 NPR and would address questions such as extended deterrence and security a.s.surances. Her UK interlocutors expressed considerable interest in both reviews, and she made clear the U.S. would consult bilaterally and with NATO as soon as the reviews progress to that point.

China, Pakistan

16. (S/NF) Leslie flagged the "inconvenient truth" that "China is building its nuclear a.r.s.enal." She evoked an arms race in the Pacific in light of India's nuclear program. Nonetheless, Leslie said she was optimistic regarding China's commitment to multilateral cooperation and she suggested that the U.S. and the UK should push China for progress "until they say 'stop it'." She noted that the Chinese had "pretty much" said a year ago that if the U.S. ratifies the CTBT, China would follow suit. Further, China has "dumped" Pakistan in the Conference on Disarmament (CD), which is a "good sign." Tauscher urged P5 action to get Pakistan to stop blocking progress in the CD on the Fissile Material Cut-off Treaty (FMCT).

17. (S/NF) The UK has deep concerns about the safety and security of Pakistan's nuclear weapons, and China could play a big role in stabilizing Pakistan, Leslie said. Pakistan has accepted nuclear safety help, but under the IAEA flag (albeit British technicians). The Pakistanis worry that the U.S. "will drop in and take their nukes," Leslie said. The UK has deep concerns about the safety and security of Pakistan's nuclear weapons, and China could play a big role in stabilizing Pakistan, Leslie said. Pakistan has accepted nuclear safety help, but under the IAEA flag (albeit British technicians). The Pakistanis worry that the U.S. "will drop in and take their nukes," Leslie said.

18. (S/NF) Day expressed support for the development of a "cold war"-like relations.h.i.+p between India and Pakistan that would "introduce a degree of certainty" between the two countries in their dealings. He noted that recent intelligence indicates that Pakistan "is not going in a good direction." Pakistan sees the debate about Afghanistan in the U.S. and the UK as demonstrating that the allies lack the will to maintain their commitment there. The Pakistanis also believe that their recent successes against extremists in the Swat valley validate their belief that they can deal with their own internal problems without changing their approach toward India. Day asked if the U.S. would be "obliged" to cut relations with Pakistan if the military took over again; he said that the last time the military a.s.sumed power the UK had maintained military-to-military ties. Day also asked for the U.S. perspective on Nawaz Sharif, whom he described as "potentially less venal" than other Pakistani leaders.

SUSMAN.

DAVID MILIBAND PROVIDED 'RARE MOMENTS OF STAR POWER' FOR PARTY MISSING BLAIR.

Monday, 03 March 2008, 17:06 CONFIDENTIAL LONDON 000639.

SIPDIS.

SIPDIS.

NOFORN.

Cla.s.sified By: Amba.s.sador Robert Tuttle, reasons 1.4 b, d 1. (C/NF) Summary: The Labour Party Spring Conference, held February 27 - March 2 in Birmingham, was characterized by low energy, poor attendance, and a lack of charismatic leaders.h.i.+p, despite serving as a kick-off to the party's campaign for the May 1 local elections in England and Wales. In his March 2 key note speech, Prime Minister Brown emphasized the need to prepare for the economy of the future and counted the opportunity costs for Britain of poverty, substandard education, and poor health care vowing that his "purposeful and progressive" government would continue to battle those scourges. Brown's vision excited no opposition, but it excited no enthusiasm either at a pre-campaign conference that suffered from low attendance and, seemingly, straitened finances. Aimed primarily at Labour's local level activists, the conference focused on recruiting female candidates, improving communications with minority communities, and enhancing Labour's performance in local government. Media reporting focused on the irony that Secretary for Communities and Local Government Hazel Blears lauded Mayor Ken Livingstone for "revitalizing London" ahead of the hotly-contested May 1 mayoral race, without recalling that only eight years ago Labour expelled Livingstone from the party for insisting on running as an independent. Foreign Secretary David Miliband provided rare moments of star power for a party that seems increasingly to miss Tony Blair's charisma. End Summary.

Brown: "Use the Opportunity of Power"

2. (C/NF) Labour's Spring Conference February 27-March 2 in Birmingham, billed as the launching event for the May 1 local elections, featured a keynote speech by Prime Minister Gordon Brown intended to fire up the Labour faithful. In the event, Brown's speech, eloquent as it was in articulating his vision of the party's purpose, failed to move the audience beyond more than polite applause. Opening with an admission that the last few months had been difficult, Brown talked about the series of challenges his government had faced as soon as it came into office: floods, foot and mouth disease, avian flu, and the global credit crunch. He made no mention of the decision not to go to early elections that precipitated Labour's plummeting poll numbers (see ref). Instead, Brown talked about the global economy of the future, in which skilled workers and entrepreneurs would reap high-value returns, and declared that higher standards of education would equip Britons to succeed in globalized future economy. He emphasized his view that poverty, particularly among children, was a "scar on Britain," and he graphically listed the ways in which the denial of potential through inadequate health and education costs Britain talent and achievement. A Labour government that was "purposeful and progressive" (Brown slipped and said "powerful and progressive" but corrected himself) had to use the "opportunity of power" to bring the "power of opportunity" to those elements of British society in need.

3. (SBU) While Brown's speech focused largely on domestic issues, he did extend his a.n.a.lysis to the costs of poverty to the rest of the world, noting that 72 million children have no access to schools, and vowing to eliminate diseases such as diphtheria, tuberculosis, and malaria. Brown called for an extension of sanctions on Sudan and for the release of Burmese dissident Aung San Suu Kyi.

4. (SBU) In a Q&A session that followed Brown's remarks, many of the questions from the audience had to do with the Labour government's management of school standards and health care - the bread and b.u.t.ter issues for Labour members at the local level. (Emba.s.sy comment: Discussion of educational issues became rather detailed: one Birmingham MP told Poloff that the "Labour Party is made up of teachers," explaining that their parochial concerns tend to dominate party events. End comment.) Curiously, given media reports of an imminent possible rebellion against the government on pending security legislation to extend the legal detention period from 28 to 42 days, the subjects of terrorism, police powers, and civil liberties were not raised. And while Brown pounded the Conservative Party on its plans for tax cuts and opposition to the Lisbon Treaty's plan for EU reform, he made little reference to the upcoming battles for local councils in which the Liberal Democrat Party poses as large a threat to Labour as do the Tories. A member of "Labour Students" from Cardiff rose to say she had been eight years old when Labour came to power, and asked what should she tell people now about what makes Labour a radical force? Brown reiterated his calls for ending poverty and eliminating disease globally. A Palestinian asking what Brown would do to end the conflict in Palestine provoked a rare outburst of applause; Brown responded by noting a planned upcoming investment conference.

Labour's Financial Woes

5. (C/NF) The lack of energy that hung like a pall over the keynote speech was evident elsewhere, either because of low attendance or the party's financial woes. Labour members groused that conference organizers had chosen a bad weekend Welsh members stayed away to attend the March 1 St. David's Day festivities back home (St. David is the patron saint of Wales and his feast day is a Welsh nationalist obligation). And the March 2 observance of Mother's Day in Britain put many prospective attendees in the position of choosing between the Labour Party and their "mums." Judging by the turnout, Mum won in many cases. Labour Party workers, who have been living on a shoestring for the past several years, were scarce on the ground. Those who were present were not particularly motivated: asked for a copy of the Prime Minister's speech, one party worker referred Poloff to the website version which, several hours later, had not yet been updated to reflect extensive changes in delivery. Some Labour members, noting the party's financial straits, asked why so much money had been spent on the Labour deputy leader race in 2007, noting that the money raised by the candidates would have been better spent to support the party's local campaigns this year.

Female Recruitment

6. (C) Organized around three key themes, the Conference focused on recruiting female candidates, improving communications with minority communities, and enhancing Labour's performance on local government. The three areas were selected with a view to preparing for local elections but there seemed to be a disconnect between the state of those efforts and the imminence of the May elections. Regarding women's empowerment, MP Barbara Follett provided advice on presenting oneself effectively as a woman candidate to an audience of about 25 women that included only one prospective, not active, candidate. (Emba.s.sy comment: While Labour rightly congratulates itself on having more female MPs that the Tories, the recruitment/empowerment process at the conference appeared to be still in its early stages. End comment.) Local Labour organizations and the trades unions, according to other speakers on women's issues, are where women have to rise through the ranks without much help from the central party apparatus.

Reaching out to Muslim Voters

7. (C) Ten people (including Poloff) showed up at an event aimed at improving Labour outreach to Muslim communities. (Emba.s.sy comment: Given Labour's loss of Muslim support following the Iraq War, the low turnout by party activists at this event was inexplicable. End comment.) Manchester Councilor and former Lord Mayor Afzal Khan provided recommendations to Labour candidates looking for votes in Muslim communities, including: use "As Salam Aleik.u.m" as a greeting; don't get hung up on shaking hands with females; call into Muslim radio programs; send cards for Muslim religious holidays; and wait outside mosques on Friday to hand out leaflets. Labour MEP Gary t.i.tley from Bolton also provided the earnest advice to avoid a.s.suming that all Muslims hold identical views and to maintain links with community-based organizations. One British Muslim from Nottingham rose to describe what he felt was suppression of a large Muslim contingent in his local Labour party; Khan told him there was a democratic process and the Muslims in Nottingham should use it.

8. (SBU) Secretary for Communities and Local Government Hazel Blears led the way on Labour's achievements in local government. Birmingham's revitalized town center, including the conference center that was the venue for the event, were held up as Labour achievements, as was London Mayor Ken Livingstone's record in "revitalizing London." In break out groups, however, there was one ominous session on "effective opposition." Labour members complained that for Labour councilors who are on the front lines, so to speak, against Tory and LibDem-dominated councils there is little or no support from the party in either substantive policy terms or personal a.s.sistance.

Miliband's Star Power

9. (C/NF) In an otherwise low key conference, the frisson of excitement whenever Foreign Secretary David Miliband appeared was palpable. The European Parliament Labour Party lunch-time event on the Lisbon Treaty that featured Miliband as speaker drew a packed hall. He followed that appearance by a session with over a hundred Labour Students who clearly idolized him. Stumbling into what was belatedly revealed as a "private session," Poloff heard Miliband outline his criteria for a "successful country" of the future: openness, empowerment of the whole population, and global linkages. There is increasingly less of a distinction between foreign and domestic policies, he told the students, and the challenge is to mobilize people to change. The lessons of the 80s and 90s are that "rainbow coalitions don't work;" in order to mobilize "dynamic forces," political leaders must develop a unifying narrative or ideology. In this respect, Labour must decide if it is the party of the working cla.s.s or the party of the middle cla.s.s. Answering questions on foreign policy, Miliband supported UN reform and noted the "real issue" at the UN is the UN's failure to deliver on its "responsibility to protect," because most threats to civilians come from their own governments and not foreign invasions. He defended UK partic.i.p.ation in China's Olympic games as an opportunity to s.h.i.+ne a light on "the real China, warts and all." He emphasized that Iran represented dangers not just in nuclear weapons development and support for terrorism but also through its own domestic human rights practices; for example, he noted that Iran has the highest per capita rate of capital punishment in the world.

Comment

10. (C/NF) Labour members have been increasingly asking themselves the same question raised by the student from Cardiff: what makes Labour "radical" after nearly 11 years in government? For a party that still contains a large element who feel more comfortable in opposition, such self-questioning contributes to a feeling of post-Blair rudderlessness. Even though Blair ended up unpopular, he was the sun around which the party orbited, and his speeches, no matter the content, sparked an emotional response. Brown's earnest and praiseworthy vision excites no opposition and yet it seems to excite no great enthusiasm either. such self-questioning contributes to a feeling of post-Blair rudderlessness. Even though Blair ended up unpopular, he was the sun around which the party orbited, and his speeches, no matter the content, sparked an emotional response. Brown's earnest and praiseworthy vision excites no opposition and yet it seems to excite no great enthusiasm either. With two months to go before local elections, a financially-constrained Labour hardly seemed on the verge of mobilizing for a campaign that will not only determine Labour's fortunes on the local level, but may also affect Gordon Brown's own tenure as leader. The poorly attended conference lacked the buzz that a strong parliamentary party representation would have provided and, Miliband's star power notwithstanding, there was no catwalk of prospective challengers to Brown. But the irony of Labour's holding up Ken Livingstone as a model of Labour achievement, only eight years after his expulsion from the party for running for London mayor as an independent, was not lost on the UK media. With two months to go before local elections, a financially-constrained Labour hardly seemed on the verge of mobilizing for a campaign that will not only determine Labour's fortunes on the local level, but may also affect Gordon Brown's own tenure as leader. The poorly attended conference lacked the buzz that a strong parliamentary party representation would have provided and, Miliband's star power notwithstanding, there was no catwalk of prospective challengers to Brown. But the irony of Labour's holding up Ken Livingstone as a model of Labour achievement, only eight years after his expulsion from the party for running for London mayor as an independent, was not lost on the UK media.

TUTTLE.

MOSCOW MAYOR OVERSEES.

CORRUPT SYSTEM, SAYS US.

Friday, 12 February 2010, 15:39 SECRET SECTION 01 OF 03 MOSCOW 000317.

SIPDIS.

EO 12958 DECL: 02/11/2020.

TAGS PGOV, PREL, PHUM, PINR, ECON, KDEM, KCOR, RS">RS SUBJECT: THE LUZKHOV DILEMMA.

Cla.s.sified By: Amba.s.sador John R. Beyrle. Reason: 1.4 (b), (d).

1. (C) Summary: Moscow Mayor Yuriy Luzhkov remains a loyal member of United Russia, with a reputation for ensuring that the city has the resources it needs to function smoothly. Questions increasingly arise regarding Luzhkov's connections to the criminal world and the impact of these ties on governance. Luzhkov remains in a solid position due to his value as a consistent deliverer of votes for the ruling party. Unfortunately, the shadowy world of corrupt business practices under Luzhkov continues in Moscow, with corrupt officials requiring bribes from businesses attempting to operate in the city. End Summary.

Overview: The Kremlin's Luzhkov Dilemma

2. (C) Moscow Mayor Yuriy Luzhkov is the embodiment of political dilemma for the Kremlin. A loyal, founding member of United Russia and a trusted deliverer of votes and influence for the ruling party and its leader, Prime Minister Putin, Luzhkov's connections to Moscow's business community the big and legitimate as well as the marginal and corrupt has enabled him to call for support when he needs it, to deliver votes for United Russia, or to ensure that the city has the resources it needs to function smoothly. Luzhkov's national reputation as the man who governs the ungovernable, who cleans the streets, keeps the Metro running and maintains order in Europe's largest metropolis of almost 11 million people, earns him a certain amount of slack from government and party leaders. He oversaw what even United Russia insiders acknowledge was a dirty, compromised election for the Moscow City Duma in October, and yet received only a slap on the wrist from President Medvedev.

3. (C) Muscovites are increasingly questioning the standard operating procedures of their chief executive, a man who, as of 2007, they no longer directly elect. Luzhkov's connections to the criminal world and the impact that these ties have had on governance and development in Moscow are increasingly a matter of public discussion. Although Luzhkov was successful in winning court-ordered damages from opposition leader Boris Nemtsov for his recent publication "Luzhkov: An Accounting," Nemtsov and his Solidarity-movement allies were heartened by the fact that the judge did not award damages on the basis of the corruption accusations themselves, but rather on a libel technicality.

4. (C) Few believe that Luzhkov will voluntarily relinquish his post prior to 2012, when the Moscow City Duma must submit a list of mayoral candidates to Medvedev for his selection. United Russia will probably call on Luzhkov's political machine and his genuine public support to deliver votes for them in the 2011 State Duma elections, as well as the 2012 Presidential contest. With no apparent successor in line, and with no ambitions beyond remaining mayor, Luzhkov is in a solid position. The evidence of his involvement or at least a.s.sociation with corruption remains significant. This cable presents that side of Luzhkov one that bears not only on Luzhkov and his handling of local politics, but on Putin and Medvedev as they move toward the 2012 elections.

Background on Moscow's Criminal World

5. (C) The Moscow city government's direct links to criminality have led some to call it "dysfunctional," and to a.s.sert that the government operates more as a kleptocracy than a government. Criminal elements enjoy a "krysha" (a term from the criminal/mafia world literally meaning "roof" or protection) that runs through the police, the Federal Security Service (FSB), Ministry of Internal Affairs (MVD), and the prosecutor's office, as well as throughout the Moscow city government bureaucracy. a.n.a.lysts identify a three-tiered structure in Moscow's criminal world. Luzhkov is at the top. The FSB, MVD, and militia are at the second level. Finally, ordinary criminals and corrupt inspectors are at the lowest level. This is an inefficient system in which criminal groups fill a void in some areas because the city is not providing some services.

6. (C) x.x.xx.x.xx.x.xx.x.x told us that Moscow's ethnic criminal groups do business and give paybacks. It is the federal headquarters of the parties, not the criminal groups, who decide who will partic.i.p.ate in politics. x.x.xx.x.xx.x.xx.x.x argued that the political parties are the ones with the political clout; therefore, they have some power over these criminal groups.

MOSCOW 00000317 002 OF 003.

Crime groups work with munic.i.p.al bureaucrats, but at a low level. For example, the Armenians and Georgians were formerly heavily involved in the gambling business before city officials closed the gambling facilities. These ethnic groups needed protection from law enforcement crackdowns, so they sought cooperation with the munic.i.p.al bureaucrats. In such scenarios, crime groups paid the Moscow police for protection.

Luzhkov's Links to Criminal Figures

7. (S) x.x.xx.x.xx.x.xx.x.xx.x.xx.x.xx.x.xx.x.x.

8. (S) According to x.x.xx.x.xx.x.xx.x.x, Luzhkov used criminal money to support his rise to power and has been involved with bribes and deals regarding lucrative construction contracts throughout Moscow. x.x.xx.x.xx.x.xx.x.x told us that Luzhkov's friends and a.s.sociates (including recently deceased crime boss Vyacheslav Ivankov and reputedly corrupt Duma Deputy x.x.xx.x.xx.x.xx.x.x) are "bandits." x.x.xx.x.xx.x.xx.x.x. x.x.xx.x.xx.x.xx.x.x said that the Moscow government has links to many different criminal groups and it regularly takes cash bribes from businesses. The people under Luzhkov maintain these criminal connections. Recently, ultranationalist LDPR opposition party leader Vladimir Zhirinovskiy strongly criticized Luzhkov and called for him to step down, claiming that Luzhkov's government was the "most criminal" in Russian history. This remarkable denunciation, carried on state TV flags.h.i.+p Channel One, was widely seen as an indirect Kremlin rebuke of Luzhkov.

9. (S) x.x.xx.x.xx.x.xx.x.x told us everyone knows that Russia's laws do not work. The Moscow system is based on officials making money. The government bureaucrats, FSB, MVD, police, and prosecutor's offices all accept bribes. x.x.xx.x.xx.x.xx.x.x stated that everything depends on the Kremlin and he thought that Luzhkov, as well as many mayors and governors, pay off key insiders in the Kremlin. x.x.xx.x.xx.x.xx.x.x argued that the vertical works because people are paying bribes all the way to the top. He told us that people often witness officials going into the Kremlin with large suitcases and bodyguards, and he speculated that the suitcases are full of money. The governors collect money based on bribes, almost resembling a tax system, throughout their regions. x.x.xx.x.xx.x.xx.x.x described how there are parallel structures in the regions in which people are able to pay their leaders. For instance, the FSB, MVD, and militia all have distinct money collection systems. Further, x.x.xx.x.xx.x.xx.x.x told us that deputies generally have to buy their seats in the government. They need money to get to the top, but once they are there, their positions become quite lucrative money making opportunities. Bureaucrats in Moscow are notorious for doing all kinds of illegal business to get extra money.

10. (S) According to x.x.xx.x.xx.x.xx.x.x, Luzhkov is following orders from the Kremlin to not go after Moscow's criminal groups. For example, x.x.xx.x.xx.x.xx.x.x argued that it was only a public relations stunt from Putin to close gambling. x.x.xx.x.xx.x.xx.x.x said he did not see the sense in suitcases of money going into the Kremlin since it would be easier to open a secret account in Cyprus. He speculated that the Moscow police heads have a secret war chest of money. x.x.xx.x.xx.x.xx.x.x said that this money is likely used to solve problems that the Kremlin decides, such as rigging elections. It can be accessed as a resource for when orders come from above, for example, for bribes or to pay off people when necessary. x.x.xx.x.xx.x.xx.x.x postulated that the Kremlin might say to a governor that he can rule a certain territory but in exchange he must do what the Kremlin says.

11. (C) Notwithstanding Luzhkov's solid position, some of our contacts believe that cracks have appeared in his armor, due MOSCOW 00000317 003 OF 003.

to his corrupt activities. x.x.xx.x.xx.x.xx.x.x told us that Luzhkov has many enemies because his wife has the most lucrative business deals in Moscow and many people think Luzhkov has received too much money. x.x.xx.x.xx.x.xx.x.x. x.x.xx.x.xx.x.xx.x.x a.s.serted that Luzhkov is "on his way out," although he acknowledged that the Kremlin has not identified a suitable replacement yet. Issues such as corruption and traffic congestion have, to a certain degree, eroded Luzhkov's popularity. Putin, x.x.xx.x.xx.x.xx.x.x said, will likely pick the quietest and least expected person to replace Luzhkov.

In Moscow, Everyone Needs a "Krysha"

12. (C) According to many observers, the lawless criminal climate in Russia makes it difficult for businesses to survive without being defended by some type of protection. x.x.xx.x.xx.x.xx.x.x explained how bribes work in Moscow: a cafe owner pays the local police chief via cash through a courier. He needs to pay a certain negotiated amount over a certain profit. The high prices of goods in Moscow cover these hidden costs. Sometimes people receive "bad protection" in the sense that the "krysha" extorts an excessive amount of money. As a result, they cannot make enough of a profit to maintain their businesses. If people attempt to forgo protection, they will instantly be shut down. For example, officials from the fire or sanitation service will appear at the business and invent a violation. According to x.x.xx.x.xx.x.xx.x.x, everyone has bought into the idea of protection in Moscow, so it has become a norm. In general, Muscovites have little freedom to speak out against corrupt activities and are afraid of their leaders.

13. (C) x.x.xx.x.xx.x.xx.x.x explained that Moscow business owners understand that it is best to get protection from the MVD and FSB (rather than organized crime groups) since they not only have more guns, resources, and power than criminal groups, but they are also protected by the law. For this reason, protection from criminal gangs is no longer so high in demand. Police and MVD collect money from small businesses while the FSB collects from big businesses. According to x.x.xx.x.xx.x.xx.x.x, the FSB "krysha" is allegedly the best protection. He told us that, while the MVD and FSB both have close links to Solntsevo, the FSB is the real "krysha" for Solntsevo. This system is not an incentive for smaller businesses and n.o.body is immune; even rich people who think they are protected get arrested. According to Transparency International's 2009 survey, bribery costs Russia USD 300 billion a year, or about 18 percent of its gross domestic product. x.x.xx.x.xx.x.xx.x.x argued that the "krysha" system has led to an erosion of police internal discipline. For instance, young police officers spend their money buying luxury vehicles that a normal worker could never afford.

Comment