THE DEPUTY SECRETARY'S MEETING WITH FOREIGN

C O N F I D E N T I A L ISLAMABAD 001332 SIPDIS SIPDIS E.O. 12958: DECL: 03/27/2018 TAGS: PREL PGOV PHUM PK SUBJECT: THE DEPUTY SECRETARY'S MEETING WITH FOREIGN SECRETARY KHAN SIPDIS Classified By: Charge d'Affaires Peter Bodde, for reasons 1.4 (b)(d) ¶1. (C) Summary. In a March 25 meeting, Foreign Secretary Khan told the Deputy Secretary it might be possible to schedule the next round of the U.S.-Pakistan Strategic Dialogue in Washington in June, depending on approval of the incoming Foreign Minister. Khan said there was a chance of progress on Indo-Pak relations, especially the Sir Creek issue, but this would depend on the new Pakistani government. Khan predicted that the Awami National Party would appoint effective leaders to the next round of the Peace Jirga with Afghanistan. While welcoming the introduction of Reconstruction Opportunity Zone (ROZ) legislation in the Senate, Khan urged the U.S. to develop the textile industry in the tribal areas. End Summary. ¶2. (C) Deputy Secretary Negroponte, accompanied by SCA Assistant Secretary Boucher and Polcouns, met March 25 with MFA Foreign Secretary Riaz Khan. Also attending were MFA Additional Secretary for Americas Attiyah Mahmood and Americas Desk Director Mansoor Khan. ¶3. (C) The Deputy Secretary renewed the U.S. offer to host the next meeting of the U.S.-Pakistan Strategic Dialogue in Washington; Khan thought that June would be the best timeframe but said the new Foreign Minster would have to confirm a date after the cabinet had been announced. Khan noted that we were due for another meeting on energy and education issues. ¶4. (C) On Indo-Pak relations, Khan said he looked forward to briefing the new government. He noted that Pakistan People's Party leader Asif Zardari had received negative feedback on his recent remarks that the Kashmir issue could be set aside while trade was increased with India. He said the MFA was waiting to restart the fourth round of the Composite Dialogue until the new government was in place. Khan hoped that the two sides could demonstrate they were capable of moving forward to resolve issues rather than just manage them. There was a chance of progress, at least on the Sir Creek issues, said Khan. ¶5. (C) Boucher noted that he had been in India when Zardari made his remarks; at least in the private sector, they had been welcomed because Indians believe their government currently is too weak to take on the Kashmir issue. The Deputy Secretary noted that Zardari had been enthusiastic about the prospect of increasing trade with India. Khan agreed but warned it would be important to prevent a backlash from ignoring other aspects of the relationship. ¶6. (C) Khan predicted that Pakistan and Afghanistan would proceed on naming the 25 member follow on Peace Jirga teams. He expected the Awami National Party to choose participants who could be influential in the jirga, but he hoped that Kabul would change its proposed team. Now, it is "representational" said Khan, but having Uzbeks and other non-natives will not be effective in talks with Pakistani Pashtuns. Negotiations were continuing with the kidnappers of Pakistan's Ambassador to Afghanistan, said Khan. ¶7. (C) The Deputy Secretary noted that Reconstruction Opportunity Zone (ROZ) legislation had been introduced in the Senate. Khan agreed this was good news but urged a greater U.S. concentration on developing the textile industry in the tribal areas. He questioned the economic viability of USG efforts to develop a gemstone or marble industry, because these commodities were located "in the hills" where the security situation remains problematic. ¶8. (U) The Deputy Secretary cleared this message. BODDE