DAS GASTRIGHT'S VISIT TO BANGLADESH

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 001742

SIPDIS

CORRECTED COPY--CLEARANCE LISTED IN PARA 15

E.O. 12958: DECL: 04/12/2010
TAGS: PREL PTER PGOV ENRG ECON BG
SUBJECT: DAS GASTRIGHT'S VISIT TO BANGLADESH

REF: DHAKA 001718

Classified By: P/E Counselor D.C. McCullough, reasons para 1.4 b, d.


1. (SBU) Summary and Introduction. On April 10-11, visiting
SA DAS John Gastright discussed Bangladesh developments with
Foreign Secretary Hemayetuddin, PMO Principal Secretary
Kamaluddin Siddiqui, Awami League president Sheikh Hasina,
UNOCAL Bangladesh Managing Director Andrew Fawthrup, British
Hight Commissioner Anwar Chowdhury, and young Bangladeshi
entrepreneurs. He also met extensively with Mission
personnel. Charge and P/E counselor (notetaker) accompanied
on the BDG meetings. End Summary and Introduction.

Foreign Ministry
--------------


3. (C) Bangladeshis, Hemayetuddin told DAS Gastright, greatly
value their relationship with the U.S, whose inspiration over
the decades has helped shape Bangladesh's "quest for
democracy." Asked about the looming campaign for national
elections in early 2007, Hemayetuddin rejected opposition
Awami League demands for electoral reforms by arguing that
the existing caretaker system has worked well and should not
be changed. He cited Bangladeshis' love of music and the
peaceful celebration here of minority religious holidays as
evidence of their fundamentally moderate and tolerant nature.
"We have problems like abject poverty which we try to
address," he said, "but please try to judge us by realistic
local standards and help us reach our shared goals."


4. (C) DAS Gastright underscored USG concerns about
extra-judicial killings associated with the Rapid Action
Battalion (RAB),the bilateral implications posed by the
Leahy amendment, and the positive signal that would arise
from arresting Islamist vigilante Bangla Bhai. Hemayetuddin
praised RAB for improving law and order throughout the
country, and characterized "cross-fire" deaths as
self-defense against well-armed criminals. "But I agree
there shouldn't be excesses." Bangla Bhai, he suggested,
might have slipped across the porous border into India.


5. (C) Hemayetuddin affirmed the BDG's commitment against
political violence, and said the ruling coalition's
two-thirds parliamentary majority denied it any incentive for
extreme action. He also argued that including Islamists in
the coalition constrained their room for agitation against,
for example, the war in Iraq. "They're not extremists," he
stated.
Hemayetuddin took on board DAS Gastright's hope that PM Zia,
as Defense Minister, could meet with PACOM Commander Admiral
Fallon during his visit to Dhaka next week. (Reftel reports
Hemayetuddin's readout on Chinese PM Wen's recent visit.)


6. (C) During a short drop-by with Foreign Minister Morshed
Khan and Foreign Affairs Adviser Reaz Rahman, DAS Gastright
and Charge were told that the Cabinet would soon approve
eight of the nine UN CT conventions that Bangladesh has yet
to endorse. (Note: In a subsequent phone call to Ambassador
Thomas, Khan announced that the Cabinet had just approved all
outstanding conventions except the one on terrorist
financing. The latter, he said, is approved in principle but
concerns need to be resolved about its impact on Bangladeshi
remittances from the Middle East to local mosques and
madrassahs. Parliamentary ratification is not expected to be
a problem.)

PMO
---


7. (C) After welcoming the Chinese premier's visit as a
counter to Indian "bullying" (reftel),Siddiqui urged the USG
to press Pakistan and India to reschedule the SAARC summit
and pursue issues regionally instead of bilaterally. DAS
Gastright agreed to relay the request to Washington.


8. (C) DAS Gastright welcomed improved BDG cooperation with
the FBI in the investigation of the killing of former AL
leader Shah Kibria. He expressed concern, however, that
A/Legatt, during his recent meetings with the suspects in
Habiganj, had observed signs that the suspects had been
severely beaten, and that all but one of them denied
involvement in the crime and recanted their confessions.
Siddiqui asserted that the BDG was committed to pursuing the
investigation "wherever it goes" and that Quaiyum, the
alleged ringleader, would not be allowed to escape justice.
He took the point that the BDG could significantly strengthen
the case against the suspects if they could develop
corroborative evidence separate from the confessions.

Sheikh Hasina
--------------

9. (C) DAS Gastright offered condolences for the victims of
the August 21 and January 27 attacks on AL leaders, hoped
Hasina's own convalescence was going well, and assured Hasina
that the USG continues to press the BDG to solve the Kibria
killing and all acts of political violence. Hasina replied
that she has lost all hearing in her right ear and has only
partial hearing in her left ear. She reiterated her view
that the BDG is itself behind the anti-AL attacks. "Maybe I
am still alive because of your pressure."

10. (C) Hasina welcomed DAS Gastright's observation that the
next national election would likely be the most monitored
election ever in Bangladesh, but insisted electoral reforms
are critical for a credible electoral process. She related
her long commitment to democracy, but argued that the ruling
BNP is determined to rig the election and therefore does not
hold itself accountable to the Bangladeshi people. DAS
Gastright urged the AL to exercise, not surrender, its
political rights and not to boycott the election, and asked
what the AL's minimum requirements would be to participate in
the polls. In response, Saber Hussain Chowdhury, Hasina's
political secretary, said there should be consensus support
-- perhaps defined as all parliamentary parties -- for the
appointments of the chief election commissioner and the
caretaker government chief adviser, as well as on the
selection of a new president and chief of army staff for the
caretaker period because of their control of the army, and
its key role in providing security, during elections.

British High Commissioner
--------------


11. (C) BHC Anwar Chowdhury reviewed the nature and
challenges of Bangladesh's dysfunctional political system,
and in particular the damaging dynastic leadership
predilections of both mainstream parties. In contrast, he
said, Jamaat Islami has internal democracy and a cohesive
vision for its and Bangladesh's future, which enhance
political Islam's potential here to exert influence
disproportionate to its actual electoral support. He agreed
that it is critical to reinforce to the BDG our concerns
about extremism and governance through steady VIP visits.

Young Business Lights
--------------


12. (SBU) Young entrepreneurs, at a dinner, told DAS
Gastright there are many opportunities for business in
Bangladesh, which is one reason so many Bangladeshi
expatriates have returned to start new ventures. However,
they noted as significant hurdles poor governance, inadequate
infrastructure, especially in power and transportation, and
pervasive corruption, which they have internalized as a cost
of doing business.

UNOCAL
--------------


13. (SBU) MD Andrew Fawthrup briefed DAS Gastright on
UNOCAL's (now ChevronTexaco's) activities and experience in
Bangladesh. He noted that companies that understand how
business is done in the region (e.g. at a relatively slow
pace) can do very well. UNOCAL minimizes its exposure here
by making sure it receives adequate returns on existing
investments before committing to new projects. Corruption is
prevalent, he said, but UNOCAL's strong line against payoffs,
including so called "speed money," has worked to its
advantage since officials at all levels realize it's not
worth their time to try and shake UNOCAL down for extra
"fees" and "payments."

Media Coverage
--------------


14. (SBU) Based mostly on a brief press conference after the
Sheikh Hasina meeting, local media coverage of DAS
Gastright's visit was straightforward, stressing he was on a
familiarization visit to Bangladesh. Several papers
highlighted his observation that corruption impedes foreign
investment in Bangladesh.


15. (U) DAS Gastright cleared this message.
THOMAS