HOME SECRETARY UPBEAT ABOUT DECLINE IN TERRORISM,

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 007777

SIPDIS

DEPT FOR S/CT, SA, CA

E.O. 12958: DECL: 10/05/2015
TAGS: PREL PINR PTER CASC CJAN IN PK NP GOI
SUBJECT: HOME SECRETARY UPBEAT ABOUT DECLINE IN TERRORISM,
LOOKS FORWARD TO CT JOINT WORKING GROUP

Classified By: Ambassador David C. Mulford for Reasons 1.4 (B, D)


1. (U) ACTION REQUEST FOR S/CT IN PARA 8.


2. (C) Summary: In an October 3 meeting with the Ambassador
following an MLAT signing ceremony, Home Secretary VK Duggal
was moderately upbeat over the security situation in Kashmir,
noting that the situation was calm enough for the valley to
welcome a record number of tourists last summer. However,
Duggal expressed concern that, although the number and
intensity of incidents in Kashmir were down, the camps in
Pakistan were still active. He indicated that a number of
infiltrators captured recently were from other parts of
Pakistan, not Kashmir, and suggested that the Delhi cinema
bomber may have trained in Lahore. Duggal welcomed the
appointment of the Department's new counter-terrorism
coordinator and urged that the Joint Working Group on
Terrorism be re-energized. He also indicated that his staff
would soon provide the Embassy with a new list of terrorist
organizations that India felt were actually fronts for other
organizations already on the UN's terrorism list. Duggal
expressed his sympathy for the victims of hurricane Katrina
and stressed the importance of continuing to work together to
develop our disaster response capability. End Summary.

MLAT Signing
--------------


3. (U) Ambassador Mulford met October 3 with Duggal both
before and after a brief signing ceremony to exchange
Instruments of Ratification of the US - India Mutual Legal
Assistance Treaty. Also present were PV Bhide, Additional
Secretary in the Ministry of Home Affairs (MHA),Sanjay

SIPDIS
Bhattacharyya, since-departed Director of the Americas
Division at the Ministry of External Affairs, and William
Bartlett, Minister Counselor for Consular Affairs
(notetaker).

Kashmir Terrorist Infrastructure Still in Place
-------------- --


4. (C) In response to the Ambassador's question about the
situation in Kashmir, Secretary Duggal replied that his
office was hard at work implementing the confidence building
measures agreed between India and Pakistan. He indicated
that there had been some terrorist incidents, but that he did
not see the CBMs as linked to these events. Overall, Duggal
said, the number of infiltrations and attacks were down,
commenting that Kashmir had welcomed 400,000 tourists (a new
record) and 370,000 pilgrims this year, largely without
incident. Duggal also said he anticipated there might be a
further exchange of detainees soon.


5. (C) The Home Secretary noted that a number of the
infiltrators captured recently were from other areas within
Pakistan and not Pakistani Kashmir, and commented that the
perpetrator of New Delhi's May 22 cinema bombings may have
trained in Lahore. He also observed that terrorist training
camps were still operating and that the reduction in
infiltration may have as much to do with India's increased
effectiveness in patrolling the Line of Control, as with any
Pakistani effort to reduce the flow. According to Duggal,
India also continues to see infiltration through other
borders, including those with Nepal and Bangladesh. The
Ambassador assured Duggal that President Bush continues to
push President Musharraf to close the training camps.

Nepal Border Concerns
--------------

6. (C) The Ambassador also asked about instability in Nepal
and any possible spillover into India. Duggal observed that
India has historically had an open border with Nepal with a
free flow of people in both directions, but that he had no
evidence of Nepalese Maoist activity in India. He expressed
concern that Pakistan might use Nepal as a route for
infiltration, but did not elaborate.

Ready to Renew CT Coordination
--------------


7. (C) Duggal noted favorably the recent appointment of
Henry Crumpton as the Department's new Counter-Terrorism
Coordinator and said India was anxious to re-energize the
Joint Counter-Terrorism Working Group. The next meeting is
due to be held in Washington, and India would like to begin
planning for this event. In this context, Duggal noted that
the GOI had developed a list, which it has recently shared
with the UK, of new cover organizations created by
organizations already on the "Terrorism List." He promised
to provide the Embassy with a copy of these new names and
sought the USG's support in adding them to the "formal" list.
(Note: We assume this refers to the UN 1267 Sanctions List
of Taliban and al-Qaeda affiliates. End Note)


8. (U) ACTION REQUEST FOR S/CT: Please give us a time frame
for the next meeting of the JCTWG to share with the GOI.

Disaster Preparation
--------------


9. (SBU) Finally, Duggal expressed his condolences on the
losses associated with hurricanes Katrina and Rita, and
suggested this made cooperation between India and the US on
disaster preparation and planning even more important than
ever. He said that India was close to enacting new
legislation that would reorganize India's disaster response
capability, clearly delegating responsibility down to the
lowest local level. The Home Secretary noted ongoing US -
India cooperation on disaster planning and hoped that it
would continue and increase.

Comment: Welcome Optimism
--------------


10. (C) Duggal's optimistic assessment of improving security
in Kashmir and reduced terrorism reflects the confidence that
is essential to New Delhi's continued engagement in the
Indo-Pak peace process, but as Duggal observed to visiting US
Ambassador to Pakistan Crocker on October 4, this confidence
could still be shattered by acts like the July 5 Ayodhya
attack. Duggal's comment that MHA does not see evidence of
Nepalese Maoist activity in India stands in stark contrast to
security forces' public claims of joint Indian-Nepalese
insurgent training camps and operations in the rural
districts of Uttar Pradesh and Bihar states. Post plans to
visit some of these districts in October to assess these
claims.


11. (U) Visit New Delhi's Classified Website:
(http://www.state.sgov.gov/p/sa/newdelhi/)
Mulford