SAARC SUMMIT: PROGRESS ON DELIVERABLES DESPITE

C O N F I D E N T I A L SECTION 01 OF 02 COLOMBO 000748

SIPDIS

DEPARTMENT FOR SCA/INS

E.O. 12958: DECL: 08/07/2018
TAGS: PGOV PREL PTER PHUM MOPS CE
SUBJECT: SAARC SUMMIT: PROGRESS ON DELIVERABLES DESPITE
INDO-PAK TENSIONS

REF: A) COLOMBO 733 B) ISLAMABAD 2636 C) COLOMBO 743

Classified By: AMBASSADOR ROBERT O. BLAKE, JR. REASONS: 1.4(b,d).


1. (C) SUMMARY: The margins of the 15th South Asia
Association for Regional Cooperation summit served as a venue
for Pakistan, India, and Afghanistan to address the fallout
of the embassy attack in Kabul and other recent incidents
productively. For the first time in the Association's
history the declaration includes language on fighting
terrorism. The other issues dealt with were food security,
energy security, free trade, and climate change. The major
deliverables were the establishment of a Development Fund, a
Convention on Mutual Legal Assistance in Criminal Matters,
the South Asia Regional Standards Organization, the accession
of Afghanistan into the South Asia Free Trade Agreement, and
the Colombo Declaration on Food Security. END SUMMARY.

Karzai candid on tensions with Pakistan
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2. (C) As reported in the media, there was tension in the air
between Pakistan and its neighbors Afghanistan and India.
Afghan President Karzai made a pointed remark in his opening
address; "In Pakistan, terrorism and its sanctuaries are
gaining a deeper grip... terrorists in our region receive
institutional nurturing and support." Indian Prime Minister
Singh called terrorism "the single biggest threat to our
stability," adding "terrorists know no borders." In his
speech, the last opening address of the SAARC member
countries, Prime Minister Gilani condemned the Kabul attack
and noted that while terrorism afflicts the whole region,
"Pakistan has suffered the most." Singh, however, told the
press on August 2 that India's relationship with Pakistan is
at a low point after recent incidents. In a bilateral
meeting, Singh reportedly told Gilani that the suicide attack
on the Indian mission in Kabul, the recent bombings in Indian
cities and the incidents on the Kashmir Line of Control had
created ill-will toward Pakistan among the Indian public and
might affect future relations between the countries.
According to press reports, Gilani committed to investigating
the allegations of Inter-Services Intelligence involvement in
the Kabul attack (note: Foreign Minister Qureshi has since
denied any such commitment - ref B).

SAARC Deliverables
--------------


3. (SBU) The summit declaration addressed energy security,
climate change, economic cooperation, and had a special
section on food security. For the first time in SAARC
history, the declaration also made an explicit reference to
terrorism. Member countries expressed the unanimous
sentiment that regional cooperation within SAARC had entered
a new phase of real implementation on these issues. The
overall mood, despite the Indo-Pak-Afghan tensions, was
positive. Several leaders expressed their satisfaction in
the fact that the Ministers were able to come to consensus on
nearly every issue, leaving Heads of State and Government
free to use the retreat sessions to discuss issues most on
their minds.

- The SAARC Development fund (SDF) to provide assistance to
SAARC countries under three categories - social,
infrastructure, economic - will be established with an
initial USD 300 million: $100 million from India, $200
million from other member states. This replaces the earlier
South Asian Development Fund (SADF).

- The SAARC Convention on Mutual Legal Assistance in Criminal
Matters will provide a broad framework for SAARC members to
cooperate and assist in the investigation and prosecution of
crimes and the tracing, restraint and forfeiture of the

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proceeds and instruments of crime.

- The South Asia Regional Standards Organization (SARSO) will
enhance and promote regional cooperation on standards and
quality control, with a goal of promoting trade and quality
infrastructure.

- South Asia Free Trade Agreement (SAFTA): the Summit
approved the formal entry of Afghanistan.

- Colombo Declaration on Food Security: The final text is
still under negotiation; it will likely include language
calling for the establishment of a SAARC Food Bank.

SAARC and Boucher dominate local media
--------------


4. (U) The Tamil media generally recognized the significance
of the summit's initiatives, but asserted that the dialogue
on terrorism had overshadowed discussion of human rights
issues. The pro-government Sinhala media response to the
summit was overwhelmingly positive. The English language
media gave wide coverage to lapses in security that affected
the Indian delegation during the summit. Op-ed pieces in
papers of all slants asserted that the conference produced
little tangible benefit for the people of Sri Lanka and
criticized government spending on the summit. Televised
media offered no such criticism, however.


5. (U) In the aftermath of the SAARC summit, the focus has
shifted to the debate between the government and the
opposition on the successes and failures of the summit.
Media close to the main opposition United National Party
continue to highlight what they characterize as a waste of
government money. The leader of a Colombo-based Tamil party
and human rights activist, Mano Ganesan, called the summit "a
nuisance to the people."


6. (U) Assistant Secretary Boucher's press conference in
Colombo drew an unusually high turnout of about 120 local and
international journalists, indicative of strong interest in
U.S. cooperation with SAARC as well as U.S. positions on Sri
Lankan and South Asian affairs. Further media reaction to
the SAARC summit and Boucher's visit reported ref C.


7. (C) COMMENT: The working atmosphere was generally
constructive. The Sri Lankan hosts provided a logistical
platform that functioned surprisingly well, given the
near-obsession with security precautions that were at times
heavy-handed. The local population took it mostly in stride,
with those having the means escaping the city for the
duration. Despite the attention given to strains between
India, Pakistan and Afghanistan, the SAARC summit managed to
produce modest but useful deliverables. That the
organization was able to rise above the tensions of the
moment and continue its slow progress toward a regional
mechanism for integration is an encouraging sign that perhaps
SAARC is developing some maturity, with the potential for
producing further dividends for stability in the future.


8. (U) Assistant Secretary Boucher cleared this message.
BLAKE