Identifier
Created
Classification
Origin
06ISLAMABAD21968
2006-11-13 10:39:00
CONFIDENTIAL
Embassy Islamabad
Cable title:  

ASSISTANT SECRETARY BOUCHER'S MEETING WITH PAKISTANI PRIME

Tags:  PREL PTER ECON ETRD EINV OPIC MNUC AF PK 
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C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 021968 

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/12/2016
TAGS: PREL PTER ECON ETRD EINV OPIC MNUC AF PK
SUBJECT: ASSISTANT SECRETARY BOUCHER'S MEETING WITH PAKISTANI PRIME
MINISTER AZIZ: A "MARSHALL PLAN" FOR AFGHANISTAN, NO MORE BAJAURS

Classified By: Ambassador Ryan C. Crocker, Reasons 1.4 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 021968

SIPDIS

SIPDIS

E.O. 12958: DECL: 11/12/2016
TAGS: PREL PTER ECON ETRD EINV OPIC MNUC AF PK
SUBJECT: ASSISTANT SECRETARY BOUCHER'S MEETING WITH PAKISTANI PRIME
MINISTER AZIZ: A "MARSHALL PLAN" FOR AFGHANISTAN, NO MORE BAJAURS

Classified By: Ambassador Ryan C. Crocker, Reasons 1.4 (b) and (d).


1. (C) Summary: On November 7, Assistant Secretary Boucher met
with Prime Minister Shaukat Aziz. Aziz discussed the political
situation, remarking that the Bajaur incident had played into the
hands of the religious opposition, and that the mood of the general
populace was truly angry. He repeatedly stressed the serious,
deteriorating nature of the situation in Afghanistan, advising the
U.S. to act quickly via a "Marshall Plan," and to engage other
countries, particularly the Gulf States, at the highest levels. His
government is moving forward on the amendments to the Hudood
Ordinance and on border security, and asserts its right to lobby for
civil nuclear technology. The Prime Minister asked for U.S. support
for the Pakistan Infrastructure Fund, and hinted that they may
purchase more Boeing aircraft. He also suggested that we look to his
speech at Princeton University later in the week as a major policy
speech for Pakistan. End Summary


2. (U) On November 7, Boucher, accompanied by Ambassador Crocker,
Senior Advisor Hayden, and Econ Counselor (note taker),met with
Prime Minister Shaukat Aziz. Khalid Saeed, Principal Secretary to
the Prime Minister; Zameer Akram, Additional Secretary, Prime
Minister's Secretariat; Shahid Kamal, Additional Secretary, Ministry
of Foreign Affairs; and Mamoona Amjed, Additional Press Secretary;
were also present.


3. ( C) Domestic Politics: The Prime Minister said that political
reform was going well. The current government was moving into its
final year, with elections expected late next year. "We are getting
geared up [for the elections]; we will go in as a coalition." He
indicated that initially the Pakistan Muslim League had hoped to

engage with more parties, but had encountered opposition from their
own supporters, particularly on the issue of past corruption. The
religious parties were looking for issues to rally the people, he
said, but they did not have a credible program to offer. The poverty
level has declined from 35 percent to 24 percent under the present
government, although he acknowledged that many people had not felt it
directly, especially in rural areas. The education system and skills
levels had deteriorated, he said, and, while the government is
responding with crash programs, more is needed. The thrust of the
government's message is, "if you want more of this, support us."


4. (C) Aziz expressed concern about the impact of Bajaur on the
government's credibility and the ability of the religious parties to
increase their franchise. "Bajaur has damaged us. We can't sustain
one more incident like this. In the drawing rooms of Pakistan,
everyone is discussing this and they are not convinced by what we
[the government] have told them."


5. (C) Hudood Ordinance: In response to a question from Boucher,
the Prime Minister said that the government believed it should push
ahead with amending the Hudood Ordinances, as this will help move the
gender issue forward and nothing in the amendments violates the
Koran. The mullahs were using Hudood as an issue, he said,
acknowledging that even within his own party there were differing
views. He did not seem concerned with the prospect of members of his
own coalition resigning from Parliament, noting that by-elections can
take place.


6. (C) Afghanistan - More Must be Done: Aziz said he had met the
previous day with Afghan Finance Minister Ahady. "The Afghans are
feeling disenfranchised, and the very dangerous nexus between
terrorism and drug money is growing more than people realize."
There is also a tide of rising nationalism opposed to the presence of
foreign troops. He said that, if the Taliban's influence continues
to increase, Afghanistan would be the biggest loser, followed by
Pakistan. The Prime Minister had several suggestions for the United
States on how to remedy the deteriorating situation:
-- Engage the visible stakeholders (Pakistan) as well as the
invisible stakeholders (Iran, Russia) at all levels, many of which
are active in Afghanistan in order to embarrass the U.S. and the
coalition and are much more dangerous that the world realizes.
-- Establish a very broad-based "Marshall Plan" for Afghanistan,

ISLAMABAD 00021968 002 OF 002


soliciting funding from a variety of sources, including China and
Japan. The Prime Minister urged the U.S. to apply pressure ("soft
arm-twisting") on the royal families in Saudi Arabia, the United Arab
Emirates, Kuwait, and Qatar for additional funding.
-- Bring in UN peacekeepers.

Boucher responded that the U.S. was gearing up for a major effort to
improve governance and services in the South, and that the EU and
NATO were fully engaged.


7. (C) Border Security: Pakistan is ready to move on improving
security in the "porous, undermanned, treacherous" border areas. The
government intends to fence and mine selected areas. The Prime
Minister had spent a few days in Quetta recently, where there are
reportedly 500,000 refugees from Kandahar. The refugee camps provide
a safe haven for militants who form alliances with local religious
elements. "We want the camps closed," Aziz stated emphatically. He
also met with all 1200 Balochi sardars, who told him unanimously that
they wanted peace and opposed a Taliban presence in Quetta.


8. (SBU) Reconstruction Opportunity Zones: The Prime Minister said
he had been updated, and his only concern was that the zones should
be moving faster. Boucher explained the need for legislation before
the zones could be implemented. Prime Minister Aziz said, although
he had heard of Afghan reservations about the zones, he had spoken
with President Karzai when he was in Jalalabad recently to inaugurate
a Pakistan-financed road, and the Afghan president had given him
"carte blanche" regarding the zones and was very positive about their
job creation aspects.


9. (C) Civil Nuclear Cooperation: The Prime Minister clarified
Pakistan's position on access to nuclear technology. The country's
energy needs were growing 8-12 percent annually, and nuclear power
could play a critical role in meeting this requirement. "We are not
happy with the U.S.-India nuclear deal, and we have every right to
ask, demand, solicit and lobby for our case." Boucher said the
agreement with India was not criteria based, and Pakistan's lobbying
the Nuclear Suppliers' Group for a different outcome was inconsistent
with commitments made by President Musharraf and Foreign Minister
Kasuri in Washington.


10. (SBU) Miscellaneous: The Prime Minister asked for U.S. support
for the Pakistan Infrastructure Fund (based in London),which he said
the Overseas Private Investment Corporation had been investigating.
He noted that OPIC and the U.S. Export-Import Bank had been very
helpful to Pakistan and said that the government was considering
buying more Boeing 777 aircraft.


11. (U) This cable was coordinated with SCA - Caitlin Hayden.
CROCKER