DEPUTY SECRETARY'S PAKISTAN MEETINGS ON REGIONAL

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 004083

SIPDIS

SIPDIS

E.O. 12958: DECL: 09/20/2017
TAGS: PREL PK
SUBJECT: DEPUTY SECRETARY'S PAKISTAN MEETINGS ON REGIONAL
ISSUES

Classified By: Anne W. Patterson, for reasons 1.4 (b)(d)


1. (C) During a lunchtime session of the Strategic Dialogue
September 13, the Deputy Secretary and Foreign Secretary Riaz
Khan discussed regional issues. Khan said that despite some
successes, Pakistan is disappointed about the lack of
progress on "real" issues in the Indo-Pak dialogue. Khan
quietly noted GOP concern about the U.S.-India Nuclear
Agreement and expressed concern about resolving the
Palestinian conflict and what he termed the standoff with
Iran. The Deputy Secretary briefed Khan on the situation in
Afghanistan and Iraq. End Summary.

India
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2. (C) Khan confirmed that routine talks under the umbrella
of the Composite Dialogue continue, and there was continuing
progress on cultural, people-to-people and intelligence
exchanges. On trade, he said that Pakistan was implementing
the South Asia Free Trade Agreement and has approved 1,076 of
4,000 items as tariff-free. But India continued to throw up
roadblocks in the form of multiple non-tariff barriers,
especially on textiles. An Indo-Pak working group has been
established to review these issues but what is needed,
according to Khan, is movement on the real issues of Kashmir,
Siachen, and Sir Creek. There has been some improvement on
Kashmir, but it remains tense and the negotiations
"breakthrough" has been exaggerated. Pakistan has been
disappointed on Siachen because India is resisting
Islamabad's proposed compromise to establish a schedule for
disengagement of the armed forces. The continued human
presence is eroding the glacier and creating environmental
damage. Progress on the Sir Creek mapping is the best
confidence building success at the moment. Khan said he did
not see a possibility of resolving larger border transit
issues until there was first movement on political questions.
There has been no progress on resolving Indo-Chinese border
issues, but Khan believed that neither side wants to disrupt
the status quo by using force.

Afghanistan
--------------


3. (C) The Deputy Secretary noted the successful trilateral
meeting in Kabul with Pakistani and Afghan Presidential
Advisors Aziz and Rassoul. On the security situation, there
had been an intensification of Taliban activity but this did
not necessarily mean they are stronger as NATO/ISAF forces
had also increased their activities. The Afghan forces
remained modest in size but both their quality and quantity
were expanding. The Taliban have no political agenda.
Narcotics production was a growing problem, especially in
Helmand Province, and President Karzai was committed to
eradication by forms other than spraying.


4. (C) The Deputy Secretary said he had sensed an improvement
in President Karzai's attitude towards Pakistan, but he
encouraged further efforts to improve bilateral relations.
The Peace Jirga and proposals for follow-on jirgas was
helpful. On the Taliban's recent offer to open negotiations,
he said that it was not yet clear who was speaking with what
authority. One should not rule out leaving the door open for
those willing to walk through it. In an earlier introductory
meeting with Khan, the Deputy Secretary suggested that
Musharraf and Karzai open the sub-jirga meeting as a way to
demonstrate a continued bilateral commitment to the process.
Khan was noncommittal in his response.


5. (C) Khan noted the need for Afghanistan to re-establish
the national consensus that fell apart after the withdrawal
of Soviet forces. The Taliban problem and their Pashtun
identity should be seen in this context. There was a need
for economic development and political outreach through the
jirgas to isolate the militants and engage those Taliban
elements who could be reconciled with the government. Khan
repeated the GOP mantra that there is no country other than
Pakistan with a greater stake in a stable Afghanistan. He
acknowledged possibilities for linking Pakistan with Central
Asia through Afghanistan, especially for gas pipelines.
Pakistan, he said, continues to bear the burden of Afghan
refugee camps where terrorist and criminal elements thrive.
It was important to send the children home to get a proper
non-madrassa education; he speculated that perhaps the UN
should increase the repatriation stipend and assist this

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process.

Iraq
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6. (C) Khan noted he had seen Ambassador Crocker's recent
congressional testimony and repeated that Pakistan believed a
multi-national force acceptable to all Iraqi parties could
help the Iraqi security situation. The Deputy Secretary said
he found Ambassador Crocker's statement encouraging. We had
made progress on security but it would take time. There has
been a growing realization in many circles in Washington that
we cannot abruptly pull out.

Middle East
--------------


7. (C) Khan expressed concern about the continuing situation
in Palestine and "your" standoff with Iran. These issues
aggravate the situation and have a spillover effect. The
Deputy Secretary said that the Secretary is personally
committed to making a sustained effort on Palestinian-Israeli
talks. On Iran, we have serious concerns and are not
encouraged by Iran's current behavior. They are using
diplomacy to buy time to extend their nuclear program and
their support for radical elements in the Middle East. We
have found evidence of their shipment of equipment to the
Taliban.

U.S.-India Nuclear Agreement
--------------


8. (C) Khan noted that the U.S. understood Pakistan's concern
with the U.S.-India Nuclear Agreement. Pakistan did not want
India to be able to use spent fuel from civilian reactors to
enhance its nuclear weapons capacity. The main thrust of
Pakistan's concern was to prevent an arms race in South Asia.
Khan said that Pakistan had approached the Nuclear Suppliers
Group to seek support because Pakistan needs civilian nuclear
capacity to meet growing energy needs. Ambassador Durrani
noted that the National Command Authority statement on the
U.S.-India Agreement included nothing new; Khan indicated he
had been unaware of any promises Pakistan made not to comment
publicly on the Agreement. The Deputy Secretary noted that
the Agreement was subject to continuing controversy in India
itself; we were addressing Pakistan's energy needs in the
Strategic Dialogue.


9. (U) Meeting attendees included: (U.S.) Deputy Secretary
John Negroponte, D/Mary Sue Conaway, SCA/Caitlin Hayden and
Embassy Political Counselor Candace Putnam (notetaker).
(Pakistan) Foreign Secretary Riaz Khan, Pakistan Ambassador
to the U.S. Mahmud Ali Durrani, MFA Secretary (Americas)
Shahid Kamal, Secretary, Prime Minister's Secretariat Zamir
Akram, MFA DG (UN) Attiya Mahmood, MFA Spokesperson Tasnim
Aslam, MFA DG (Americas) Sohail Mahmood, MFA DG (Disarmament)
Qazi Khalilullah, MFA Director (FS Office) Babar Amin,
Director (Americas) Mansoor Ahmad Khan and Assistant Director
(Americas) Haseeb bin Aziz.


10. (U) The Deputy Secretary's staff has cleared this message.

PATTERSON