BOUCHER DINNER WITH PAKISTAN MUSLIM LEAGUE-NAWAZ

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 001493

SIPDIS

SIPDIS

E.O. 12958: DECL: 04/08/2018
TAGS: PREL PGOV PHUM PK
SUBJECT: BOUCHER DINNER WITH PAKISTAN MUSLIM LEAGUE-NAWAZ

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


1. (C) Summary. During a dinner hosted by the Charge,
Assistant Secretary for South and Central Asian Affairs
Richard Boucher discussed challenges facing the new Pakistani
government with leaders of the Pakistan Muslim League-Nawaz.
Finance Minister-designate Dar outlined steps the new
government would take to raise the minimum wage and pay
farmers higher rates for wheat. Dar will be in Washington in
April for the annual World Bank meetings. Petroleum
Minister-designate Asif welcomed a U.S. Geological Survey
aerial mineral mapping survey that the former government had
rejected. Senior Minister-designate Nisar Ali Khan expressed
concern about what he described as Washington's misperception
about his party's ties to extremists. Boucher reviewed U.S.
support for a broad based anti-terror agenda, for
parliamentary consideration of restoration of the judiciary
and our support for oversight by the parliament over the
defense budget. End Summary.


2. (C) Assistant Secretary Boucher met over dinner at the
Charge's residence with Pakistan Muslim League-Nawaz (PML-N)
minister-designates Chaudhry Nisar Ali Khan (Senior
Minister/Communications),Khawaja Muhammad Asif (Petroleum
and Natural Resources) and Ishak Dar (Finance and Economic
Affairs). Polcouns attended as notetaker.


3. (C) The majority of the discussion focused on economic
challenges facing the new coalition government. Dar noted
that he had already met with World Bank officials and planned
to attend the annual World Bank meetings in Washington in
April. He did not yet know the full extent of the current
account deficit or the increase in imports, but he suspected
both would be bad news. Dar confirmed the new government
would increase the minimum wage and the payment that farmers
received for wheat sales. Asif lamented that worldwide
increases in commodity prices, especially oil, would limit
the new government's ability to help the common man cope with
rising fuel and food inflation. On energy, Pakistan has
extensive coal resources, but the coal is of poor quality.
Hydro projects remain politically difficult to implement and
will take years. Even the proposed gas pipeline with Iran,
said Asif, would not produce results for several years.


4. (C) Boucher said the U.S. understands the challenges ahead
would be daunting but cautioned that working with Iran would
undermine our shared non-proliferation objectives. Charge
explained U.S. Government dismay that the former government
had rejected our offer to have the U.S. Geological Survey map
the entire country, including it,s mineral deposits, via an
aerial survey. Asif expressed immediate interest and said he
would raise this issue with the Prime Minister; Pakistan
needed this kind of information to make informed decisions
about the future.


5. (C) Turning to the issue of the deposed judiciary, Khan
asked for U.S. views. Boucher responded that the U.S.
believed this issue should be addressed by the Pakistani
parliament. We supported an independent judiciary and had
urged President Musharraf to release the detained judges.
However, we did not support the reinstatement of any
particular person.


6. (C) Khan also asked if the U.S. would object if the new
parliament scrutinized the defense budget. Boucher assured
him that this kind of review is central to the democratic
process; the U.S. Congress certainly reviews our defense
budget and we would expect the new Pakistani parliament to
take its oversight responsibilities seriously.


7. (C) After waiting through most of dinner, Khan then raised
the issue that clearly concerned him most. The U.S., he
claimed, had unfairly identified the Pakistan Muslim
League-Nawaz as a party of mullahs and extremists. History
shows that this is not the case, said Khan. He cited Nawaz
Sharif's decision to send Pakistani troops to the first Gulf
War despite domestic opposition, the extradition of a
Pakistani who shot several intelligence agents in Virginia,
his work with then President Clinton to pull Pakistan back
from the brink of nuclear conflict with India over the Kargil
affair, and his decision not to sell nuclear weapons
technology. His party, said Khan, has been disappointed and
hurt by statements from Washington that indicate it doesn't

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appreciate all the support the party has provided to America
over the years. The Pakistan Muslim League-Nawaz was a party
that opposed extremism, supported privatization, and opened
relations with India.


8. (C) Boucher said the U.S. recognized how we had worked
together in the past. The current problem in Washington was
Nawaz Sharif's continuing focus only on Musharraf and events
of the past. Pakistan is facing too many challenges to only
look back, said Boucher. It was time to look forward, put
aside any past differences and together address Pakistan's
future. We wanted to work with all parties in the new
coalition government, but found the PML-N focus on revenge to
be unhelpful. Khan said he appreciated the frankness of the
exchange and said he looked forward to working together on
shared objectives with the U.S.


9. (U) Assistant Secretary Boucher cleared this message.
PATTERSON