GILANI HIGHLIGHTS COUNTERTERRORISM AND ECONOMY

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 003011

SIPDIS

E.O. 12958: DECL: 09/11/2018
TAGS: PGOV PK PREL MOPS PTER EAID
SUBJECT: GILANI HIGHLIGHTS COUNTERTERRORISM AND ECONOMY
WITH CODEL TAUSCHER

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


1. (C) Summary: Codel Tauscher -- U.S. Representatives Ellen
Tauscher (D-CA),Tom Petri (R-WI),Jim Cooper (D-TN),Jon
Porter (R-NV),Dave Reichert (D-WA),and Nancy Boyda (D-KS)
-- met September 7 with Pakistan's Prime Minister Yousuf
Gilani. He thanked the USG for its support in helping
transition the country to a full democracy, noting the
importance of the February 18 parliamentary elections and
former President Pervez Musharraf's stepping down as Chief of
Army Staff. Gilani assured the codel that fighting extremism
was his government's number one priority; terrorist acts were
also hurting Pakistan's economy, he asserted. He claimed
good relations with neighbor Afghanistan but complained about
the lack of GOA cooperation on a bio-metric system and on
refugees. The codel members offered USG support on several
issues, from Pakistan's counterterrorism efforts to economic
reforms. End summary.

Support for Democracy and GWOT
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2. (C) Prime Minister Gilani began his September 7 meeting
with Codel Tauscher with thanks for USG support of a
democratic transition in Pakistan. He noted that moderate
forces had received a mandate in the February 18 general
elections, that he had been elected unanimously as PM, and
that party Co-Chair Asif Zardari had just won the presidency
with overwhelming totals. He thanked the USG for ensuring
free and fair elections and convincing former President
Pervez Musharraf to resign as Chief of Army Staff.


3. (C) Gilani stressed that Pakistan was on the "front-line
against extremism." He reiterated the GOP's commitment to
fight terrorism within the country's borders. Gilani noted
the gains of secular parties in the Northwest Frontier
Province (NWFP),Federally Administered Tribal Areas (FATA)
and Balochistan. These parties, specifically coalition
partner Awami National Party (ANP),had good relations with
Afghanistan President Hamid Karzai, and Gilani believed there
would be good cooperation covering the border areas because
of this relationship.


4. (C) Gilani made a clear link between the fight against
terrorism and the country's poor economic outlook; attacks
caused capital flight and scared foreign investors. He noted
the kidnapping of some foreign (Chinese) workers recently.
Without outlining a policy, Gilani said militants in the
frontier regions needed to be isolated from the tribals, but
"when we attack, they unite."

Good Neighbors
- - - - - - - -


5. (C) Gilani complained that the GOP treasury was spending
huge resources not only to fight the GWOT but also on the
three million Afghan refugees within Pakistan's borders.
These refugees -- the largest displaced group in the world --
should return to Afghanistan after decades in Pakistan. He
also charged that Afghan drug lords were funding
destabilization schemes inside Pakistan.


6. (C) Gilani added that the 18 FATA parliamentarians, most
just elected in February, were now scared to return to their
districts and had been blunt with him that they feared
publicly backing a secular party like the Pakistan People's
Party (PPP). He said the GOP would not hesitate to use force
against militants, noting recently delivered F-16s had been
used for counterterrorism purposes in the frontier regions
not as part of a conventional deterrent.


7. (C) Codel Tauscher told Gilani: "You have our support
(fighting terrorism)." They agreed with Gilani's call for a
multi-track U.S.-Pakistan bilateral relationship beyond CT.
Gilani claimed credit for jump-starting bilateral and
tripartite military cooperation. The Army had suffered many
casualties and was still ill-equipped to fight the militants,
he said. Gilani noted the difficult terrain along the
Pak-Afghan border and how that challenged effective
patrolling, even with over 1,000 checkpoints. He complained
that the Afghan government refused to cooperate with the GOP

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on bio-metric checks at border crossing points.


8. (C) Codel Tauscher asked what the U.S. could do to help
Pakistan on the economic front. Gilani made no specific
request, simply noting again how sensitive domestic and
foreign investors were to terrorist attacks. He said his
administration had been persuaded by the international
financial institutions to curb subsidies on commodities, a
difficult move for a newly elected government. "Musharraf
did not add one megawatt of energy during his eight years,"
Gilani noted.


9. (C) Gilani claimed he had "forgiven Musharraf" for
imprisoning him. He promised that the PPP would "not rock
the boat" by targeting Musharraf for prosecution and that the
former president would have "safe passage" out of the
country. He said Pakistan's 1973 Constitution would be
restored, indicating that presidential prerogatives would be
given back to parliament. He insisted deposed judges would
be "re-appointed" but said that those who had "politicized
themselves" and actually led demonstrations should not be
brought back to the bench, referring to former Supreme Court
Chief Justice Iftikhar Chaudhry. He added, a returned
Chaudhry would legislate from the bench and possibly even
order Musharraf's arrest.


10. (U) Codel Tauscher did not clear this cable.

PATTERSON