C O N F I D E N T I A L SECTION 01 OF 02 TBILISI 001362
SIPDIS
DEPT FOR EUR/CARC AND TASKFORCE-1
E.O. 12958: DECL: 08/12/2018
TAGS: PGOV, PREL, PHUM, RU, GG
SUBJECT: GEORGIA: SITREP 8: RUSSIANS PULL BACK, BUT BOMBING CONTINUES
UNTIL MEDVEDEV SAYS IT IS OVER
REF: TBILISI 1356 
Classified By: AMBASSADOR JOHN F. TEFFT FOR REASONS 1.4 (B) AND (D)

1. (C) Begin Summary: The Minister for Reintegration and Prime Minister 
confirmed press reports that Gori was again bombed in the late morning 
August 12. Targets included Gori University, the Post Office, and the 
hospital. There was also a bomb blast in near Tbilisi at the SU-25 
factory near the Tbilisi airport. OSCE reported that Russian troops had 
pulled out of Gori, slightly to the North. Georgia's remaining forces 
have moved to establish defensive positions in Stepantsminda, Mtskheta, 
and the outskirts of Tbilisi. Overnight, the Heidelberg Cement factory 
in Kas Kaspi, in the river valley between Tbilisi and Gori, was bombed. 
UNOMIG confirmed that Russian troops had left Senaki military base after
destroying it. Russian troops remained in Zugdidi. UNOMIG's 
international observers continue to occupy their posts in the area. As 
Tbilisi residents engaged in panic buying of gasoline and foodstuffs 
late in the evening August 12, President Saakashvili made a live address
to appeal to the nation for support The Tbilisi international airport 
remains open and operational.

2. (C) Polish President Kaczynski is 
scheduled to arrive late afternoon August 12 in Tbilisi, accompanied by 
the Ukrainian and Lithuanian President, and either Presidents or PMs of 
Latvia and Estonia. French President Sarzkozy is due to arrive in 
Tbilisi the evening of August 12 from Moscow. EUR DAS Bryza arrived 
August 11 in Tbilisi, and is talking to Georgian leaders, including PM 
Gurgenidze to discuss Georgia's urgent economic needs. He said the banks
would be closed tomorrow. The Ministry of Agriculture told Post Georgia
has a sufficient food supply for two months. The Millennium Challenge 
Corporation (MCC) has provided temporary use of the unfinished road they
are constructing for a southern route to Samstkhe-Javakheti from 
Tbilisi. Post issued a new travel warning at 1000 and is preparing a 
third convoy of Americans to depart Tbilisi on August 13 for Yerevan 
with more than 100 Amcits expected to take part. A group of 27 FLEX 
students being sent to study in the U.S. with PAS support departed for 
the U.S. via ground through Baku. Except for the bombing at the aircraft
factory, Tbilisi remains quiet. This sitrep covers events since the 
evening of August 11 (reftel). End Summary.

3. (C) At 1145 August 12, 
Minister for Reintegration Temuri Yakobishvili confirmed press reports 
that Gori was again being bombed during the late morning. PM Gurgenidze 
held a press conference shortly thereafter and said the targets include 
Gori University, the Post Office, and the hospital. Casualties are 
reported, and some foreign journalists apparently came under fire. There
were no reports of Americans being injured. Georgian journalists from 
Channel 1 reported that a Dutch cameraman had been killed and Dutch and 
Greek journalists injured. OSCE earlier confirmed that Russian troops 
had pulled out of Gori, slightly to the North. Georgia's remaining 
forces have moved to establish defensive positions in Stepantsminda, 
Mtskheta, and the outskirts of Tbilisi. Overnight, a German 
assistance-dedicated concrete plant in Kaspi was bombed. Kaspi lies 
approximately halfway between Tbilisi and Gori, along the new highway 
being built with German foreign assistance.

4. (C) UNOMIG confirmed that
Russian troops had left Senaki military base after destroying it. 
Russian troops remained in Zugdidi. UNOMIG's international observers 
continue to occupy their posts in the area. They have no plans to vacate
or relocate. A senior Georgian official said that Russian troops remain
outside of the port of Poti with Russian ships reportedly anchored 
offshore. We also hear that fighting continues in the Upper Kodori 
valley of Abkhazia.

5. (C) President Saakashvili made two live 
addresses, and appealed to the nation for support. A special session of 
Parliament began at 1300 local time August 12, and Saakashvili called 
upon the populace to rally for support in front of the building at 1500.
(Comment: Local contacts report that the President's address was 
gloomier and more depressed than usual. They opined that he seemed a bit
lost and angry, and was focused more on blaming Russia than providing a
plan forward. End comment.) Our local staff reports that the general 
mood of the public is bad. Most people in Tbilisi are scared, but quiet 
and staying at home.

6. (C) Gurgenidze told DAS Bryza that Georgia is 
facing a potentially severe economic crisis, with Russia having shut 
down the Port of Poti and severing Georgia's main east-west highway that
is the country's economic lifeline. (Note: During his press conference 
today, Gurgenidze said the Port

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of Poti is 
operating and three ships were unloaded August 11, carrying mostly food 
supplies. Post's shipping agent confirmed the port is open, but said 
that no cargo has been loaded or unloaded as ships are being rerouted. 
End note.) The PM agreed to meet with Bryza today and discuss specific 
measures that could restore economic confidence.

7. (U) Eka Zguladze, 
Deputy Minister of Internal Affairs, held a press conference at the same
time as the PM's, in which she provided an update of events and called 
for calm. She noted that Rezo Beshidze will attend the NATO 26 1 session
for Georgia, that the Russians are not indicating they will advance on 
Tbilisi, and that Georgia is seeing significant support from Europe and 
the U.S. -- as five European presidents are arriving in Tbilisi today, 
and President Bush's speech was very strong.

8. (SBU) The Ministry of 
Agriculture advised Post yesterday there is a two-month supply of food 
in the country, and additional import routes/supplies are being 
explored. Despite some panic buying overnight of food and fuel, there 
appears to currently be enough of each.

9. (U) The MCC constructed 
temporary signage and provided use of the unfinished road they are 
constructing on the southern route to Samstkhe-Javakheti from Tbilisi. 
The road is graveled and passable, but not yet paved.

10. (SBU) Post 
issued a new travel warning at 1000 August 12 and a warden notice 
announcing the organization of a third convoy of Americans citizens to 
depart Tbilisi at noon on August 13 for Yerevan. More than 100 Amcits 
are expected to take part. Peace Corps volunteers are all now relocated 
in a former ski resort near Yerevan, remaining in place and awaiting 
clarification of the security situation. A group of 27 FLEX students 
(with Embassy PAS support) left by ground for Baku yesterday, and now 
are on their way to study in the U.S. With the exception of bombing at 
the aircraft factory, Tbilisi remains quiet.

TEFFT