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 -------------- ¶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 COLOMBO 00000748 002 OF 002 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