PRESIDENT MUSHARRAF AND CODEL CARDIN DISCUSS BILATERAL

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 002304

SIPDIS

E.O. 12958: DECL: 06/30/2018
TAGS: PREL PGOV ECON EAID PTER IN PK
SUBJECT: PRESIDENT MUSHARRAF AND CODEL CARDIN DISCUSS BILATERAL
RELATIONSHIP

Classified By: DCM Peter W. Bodde, for reasons 1.4 (b) & (d)

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Summary
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1. (C) SUMMARY. In a June 30 meeting with Codel
Cardin, Pakistan President Pervez Musharraf explained the importance
of concluding agreements with the tribal groups in the border areas
to secure peace. He also expressed hope for stronger military and
intelligence cooperation with the U.S as well as increased economic
assistance and help with Pakistan-India relations. END SUMMARY.


2. (C) A Congressional delegation composed of Senator Benjamin L.
Cardin (D-MD),and Representatives Robert Aderholt (R-AL),Mike
McIntyre (D-NC),Loretta Sanchez (D-CA),and Zach Wamp (R-TN) as well
as the Deputy Chief of Mission met June 30 with President Pervez
Musharraf at the Rawalpindi encampment. Topics covered included:
importance of the bilateral relationship, security in the Federally
Administered Tribal Areas, and India.

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Importance of the bilateral relationship
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3. (C) While noting that the U.S. Congress follows events in
Pakistan very closely, Senator Cardin expressed support for Pakistan
and noted the "mutually important issues facing our countries" and
the significant impact that issues in Pakistan have across the border
in Afghanistan. Musharraf agreed that the bilateral relationship is
on track, and hoped that it would be further strengthened,
specifically citing the need for stronger military and intelligence
cooperation. He spoke candidly with the delegation, and noted that
Pakistan needed to wage a public image campaign to "wake up the
Pakistani people to the threats within."


4. (C) Responding to Rep. Aderholt's question of "how can the U.S be
more helpful," Musharraf first noted the importance of bringing down
oil prices and further elaborated that "the developing world can't
survive" with the current high oil prices. Second, Musharraf asked
for increased economic assistance through market access and job
creation. He referred to his previous requests for a free trade
agreement and noted that the Reconstruction Opportunity Zones "have
been very slow to come on-line" but added "if an FTA is not possible,
then at least give us more market access." Third, Musharraf asked
for increases in, and expeditious reimbursements of, Coalition
Support Funds and more support for the Frontier Corps.


5. (C) Responding to Rep. Wamp's question on the country's economic
vulnerability in the face of an energy crisis, Musharraf acknowledged
that Pakistan is facing serious economic problems. Noting that
increases in oil and wheat prices have hurt the economy, he stated
that the real economic threat is the loss of political stability
because of Pakistan's struggle against the Taliban and Al Qaeda. He
added that "people are worried and are running away with their
money." Further claiming that "this is an unholy coalition who are
trying to stab each other in the back," Musharraf opined that the
economy is also suffering from a lack of focus from the coalition
government, and that without quick action, righting the economy
"could be harder than fighting terrorism."

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Security Issues in the Border Areas
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6. (C) Explaining that it is important to see FATA security issues in
"their entire complexity" and noting that "Al Qaeda is in our
mountains and we must get them," Musharraf claimed that robust
cooperation is necessary to root out militant groups which he further
described as "not previously established and not active in Pakistan's
cities." He referred to the June 10 Frontier Corps incident as
"something that should not have happened" and regretted the bad press
which resulted from the loss of Frontier Corps soldiers.


7. (C) Turning to the issue of federal government negotiations with
the tribes in the FATA, Musharraf referred to the process as
"necessary to build trust among the tribal people" and stated that
the government "needed cover with the tribal people to take action."
He viewed four "components" as "essential" in any such agreements:
"1) no Al Qaeda- no harboring or facilitation; 2) no cross border
Taliban activity; 3) a strong penalty for any violation of the
agreement; and 4) an "implementation mechanism" against any

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violator." Musharraf claimed that if the tribal agreements had all
four components, then "we should be happy." He referred to the
agreement with Waziristan "where the situation [was] better," and
noted the NWFP Governor recently spent the night in the district
after a cadet school dedication ceremony.


8. (C) He empathetically expressed that Baitullah Mehsud "must be
eliminated" and noted that "Mehsud's people" were in Waziristan but
further stated that "the tribes don't meet with them due to the
agreement." Musharraf expressed hope that future agreements could be
signed in public with "big personalities present" and also broadcast
on television to show their importance and create public pressure on
the groups to respect the terms of the agreement.


9. (C) He opined that the new coalition government had been too slow
in using military force in the border areas and expressed frustration
at the overall "foot dragging on policy issues." He also noted that
the new government "needed to communicate with the military and
clearly state its policy." Musharraf further stated that recently
internal communication had been better "with the alarm bells ringing"
since the settled areas are now affected. Claiming that "Pakistan as
a whole will be in danger if we don't act," the President noted an
agreement had been reached internally to use the Frontier Corps in
the border area disputes with redeployment of troops from Balochistan
Province to increase their numbers by four wings. He further noted
that he thinks the Frontier Corps needs to raise another four wings
to quell the current unrest. Musharraf also stated that the military
"has the resolve to act."

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Earthquake areas
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10. (C) Responding to Rep. Sanchez's question, Musharraf claimed the
reconstruction efforts in the earthquake affected areas as "one of
Pakistan's greatest success stories" and noted that "we have done a
better job than the tsunami and Katrina." Expressing his gratitude
to the world for the $6.5 billion relief effort, he noted that
international assistance, including 500,000 earthquake resistant
houses, modern schools with computers and science labs, and
vocational skills from the construction efforts, has led to a higher
standard of living for the region.

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India
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11. (C) Responding to Rep. McIntyre's question regarding what role
the U.S should play in Pak-India relations, Musharraf simply stated
"a greater role" and then explained the U.S. can influence India on
issues such as Kashmir and greater economic interaction. Cardin
further agreed that improved relations between India and Pakistan are
in the U.S interest. Rep. Sanchez noted that on her previous visit
in 2006 Musharraf told her that "India was dragging their feet" and
noted that she hopes the U.S can help improve their relationship.
Musharraf responded that India is the "big brother with a small
heart" and noted that the "magnanimity must come from the bigger
brother but can be positively received."


12. (C) Cardin expressed his continued support and noted that
Pakistan and the U.S. are strategically linked. He promised to take
back Musharraf's request for more economic assistance. Cardin also
noted that it is critical to resolve the security issues in the
border areas to secure stability in Afghanistan. Musharraf pledged
that Pakistan would stay the course because "it is in our own self
interest."


13. (U) Codel Cardin did not clear on this message.

PATTERSON