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