CODELS LEVIN AND CASEY DISCUSS SECURITY AND

C O N F I D E N T I A L ISLAMABAD 002050

SIPDIS

E.O. 12958: DECL: 06/05/2018
TAGS: PGOV PHUM PREL PTER ECON PK
SUBJECT: CODELS LEVIN AND CASEY DISCUSS SECURITY AND
ECONOMIC CRISIS WITH PPP LEADER ZARDARI

Classified By: Anne W. Patterson, Reasons 1.4 (b),(d)


1. (C) Summary: Senator Carl Levin and Senator Robert Casey
met May 25 with Pakistan People's Party (PPP) Co-Chairman
Asif Zardari, National Security Advisor Mahmud Ali Durrani
and Ambassador-designate to the U.S. Husain Haqqani to
discuss recent negotiations with militants, counterterrorism
efforts, development assistance and Pakistan's growing
economic crisis. In response to the Senators' concerns
regarding the negotiations and the overall security
situation, Zardari stressed that his government is committed
to the war on terror, noting he had lost his wife, Benazir
Bhutto, to terrorism. He acknowledged Pakistan's need for
military assistance and infrastructure support, but he
emphasized that allowing Pakistan greater access to U.S.
markets would be an invaluable contribution to building a
sustainable economy. Regarding the current wheat shortage
and rising food prices, Zardari also asked for some form of
short-term food assistance. End Summary.


2. (C) Senators Levin and Casey began by offering condolences
on the December assassination of Zardari's wife, PPP leader
Benazir Bhutto. Senator Levin praised Bhutto for her
"fearlessness." Zardari agreed, noting that many had warned
Bhutto she might be assassinated if she returned to Pakistan,
but she had replied that she could also be killed in a
traffic accident and wanted to return to her home where she
was needed.

U.S. AND PAKISTAN NATURAL ALLIES IN GWOT
--------------


3. (C) The Senators expressed interest in Zardari's views on
border security. The U.S. and Pakistan were natural allies
in the war on terror, Zardari asserted. The rise in suicide
bombings over the past year proved that this was Pakistan's
war and that extremism posed a dire threat to the country's
way of life. Regarding recent and current peace talks with
militants, Zardari noted the ARMY had begun negotiations
before the new government was in place. Zardari assured the
Senators that any proposed agreement would be shared with the
U.S., but the Government of Pakistan (GoP) intended to
proceed with negotiations in an attempt to bring the border
areas more "in tune" with the central government. Zardari
said emphatically that his government had no intention of
dealing directly with terrorists. There was no single
military solution to defeating the insurgency; it was key, he
said, to also provide assistance and economic development to
these impoverished communities. It was not a matter of
ideology, Zardari insisted. People in the border region were
like anyone else; they wanted progress, employment and basic
comforts, including water and electricity.


4. (C) On the U.S.-Pakistan security relationship, Zardari
stated he wanted close military cooperation with the U.S.,
including expanded intelligence sharing and even joint
operations. Zardari's NSA Durrani pointed out that Pakistan
had more than 900 border posts in Pakistan while Afghanistan
only had 100 and said more ISAF assistance was needed in the
area of border management.

GOP GOING FORWARD WITH PEACE AGREEMENTS
--------------


5. (C) Returning to the peace negotiations, Senator Levin
asked Zardari if the agreements would explicitly prohibit
cross-border attacks. Zardari said affirmatively and
stressed the importance of finding ways - such as through
these agreements - to extend the writ of government into the
tribal areas. One important element in the South Waziristan
negotiations was the re-opening of roads, allowing thousands
of people - displaced by fighting - to return to their
communities. Zardari asserted that since these roads were
opened, 3,000 people a day were returning home. Pakistan
has, he said, already demonstrated its ability to achieve
short-term military victories, but the long-term
counterinsurgency effort would not be successful without the
support of local communities. Finally, he said current peace
agreements differed from earlier, unsuccessful ones on two
important points: first, they were negotiated from a position
of strength - based on military successes against militants,
and second, the GoP was committed to effective implementation
and strict enforceability of the agreements.

PAKISTAN FACING AN "ECONOMIC MELTDOWN"
--------------


6. (C) Senator Levin asked how the U.S. could best assist
Pakistan. Zardari again emphasized the need for economic and
infrastructure development. He said the frontier region was
willing to partner with the PPP-led government because of the
PPP's demonstrated respect for the leadership and specific
political aspirations of that region. For instance, the
Northwest Frontier Province (NWFP) was seeking to change its
name to Pukhtonkhwa and PPP supported that effort. The most
important assistance the U.S. could offer, said Zardari, was
to give Pakistan more space in U.S. markets. "Don't give us
more money, give us more trade."


7. (C) Senator Casey asked what additional non-military
assistance the U.S. could provide over the next 5-10 years.
Zardari said, aside from trade, it was most important to
strengthen civil institutions. Established civil
institutions would create continuity in the face of frequent
political change and would serve as "insurance policies"
protecting democratic government.


8. (C) Describing what he called an "economic meltdown,"
Zardari pointed out Musharraf's government had put a number
of bad economic policies in place, and now the coalition
government was left "holding the crying baby." The economic
crisis threatened to undermine the civilian government,
Zardari stated. There was no way to solve these problems in
the short term, and Zardari asked about the possibility of
urgent U.S. food aid to Pakistan. The Senators and
Ambassador assured Zardari they would explore options to
provide such assistance.


9. (C) In response to inquiries regarding India and Kashmir,
Zardari opined that Pakistan and India must lower barriers
and promote cross-border trade for Pakistan to prosper. More
India-Pakistan cooperation would encourage progress on the
Kashmir question and promote stability in the region; it was
a win-win situation, in his opinion.


10. (C) Zardari closed by noting he had asked for a UN
investigation into Bhutto's assassination and would
appreciate the U.S.'s support.

(U) CODELS Levin and Casey did not clear this cable.

PATTERSON