NAWAZ ASSURES BOUCHER HE WILL NOT EMBARRASS THE

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 003399

SIPDIS

E.O. 12958: DECL: 08/04/2018
TAGS: PREL PTER PGOV PK
SUBJECT: NAWAZ ASSURES BOUCHER HE WILL NOT EMBARRASS THE
GOVERNMENT

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


1. (C) Summary. In an October 20 meeting with Assistant
Secretary Boucher, Nawaz Sharif expressed disappointment with
the outcome of an ongoing joint session of parliament on the
security situation and said he was sending a letter to Prime
Minister Gilani outlining his party,s strategy on
counter-terrorism. He called for forming a multi-party
committee to draft a joint resolution that supported
dialogue, economic development and a commitment that
Pakistan's territory would not be used to launch terrorist
attacks on other countries (see also septel). Nawaz said he
would not embarrass the government and would support, without
conditions, both its counter-terrorism and economic policies.
However, Nawaz noted that Pakistan's experience with
International Monetary Fund programs had not been pleasant.
Boucher commented that establishing a consensus on these
issues would both help defeat terrorism and increase
international support for Pakistan. Boucher briefed Nawaz on
the purpose of the Friends of Pakistan group and noted that
Saudi Arabia had positively participated in the October 20
Islamabad discussion. Nawaz flatly denied he was involved in
any negotiations in Saudi Arabia between the Afghan
government and the Taliban. End Summary.


2. (C) On October 20, Assistant Secretary for South and
Central Asia Richard Boucher and Ambassador met with Pakistan
Muslim League-Nawaz leader Nawaz Sharif. Also attending
were: Pakistan Muslim League-Nawaz members Shahbaz Sharif,
Chaudhry Nisar, Khwaja Asif, and Ashan Iqbal; SCA's Senior
Advisor Caitlin Hayden and Polcouns.


3. (C) After an initial exchange about the challenges
facing farmers in the Punjab, Boucher expressed continuing
U.S. support for food and economic aid and praised the
government for its efforts to deal with systemic structural
problems in the economy. Shahbaz Sharif remarked that
Pakistan was living off the support of the United States;
Boucher challenged that assumption noting that only a small
part of Pakistan's economy relied on foreign aid.


4. (C) Chaudhry Nisar criticized the government's
seriousness in organizing the ongoing joint session of
parliament on security issues saying that the leadership had
not done its homework and the military briefing provided no
new information. He wondered why the Foreign, Defense and
Interior Ministers had not been present to answer questions
after Information Minister Rehman's presentation of the
government position and said that Rehman had not offered any
policy options up for debate.


5. (C) Nawaz expressed disappointment with the outcome of
the joint sitting and said he was submitting a letter to the
Prime Minister that called for a joint committee to draft a
resolution that could be voted upon by the entire parliament.
His plan was to outline a strategy that would elicit
ownership from all sides. It supported dialogue and
socio-economic development for the tribal areas and included
a commitment that Pakistan's territory should not be used to
launch terrorist activity against other states (see septel
for additional details).


6. (C) Assistant Secretary Boucher said it was good to hear
that Nawaz,s party was focusing on fundamentals. A joint
base could be useful both in fighting militants and in
building international support for Pakistan. Nawaz said
terrorism was a very serious problem that required a
consensus policy. The situation was worsening all over the
country; Nawaz himself had to spend 40 million rupees to
increase security around his house in Lahore. He pledged not
to embarrass the government and said the Pakistan Muslim
League-Nawaz would support the government, without
conditions, on its counter-terrorism and economic policies.


7. (C) In response to Nawaz's question about the U.S.
presidential election, Boucher said all candidates had
emphasized the need for increased aid to Pakistan. But given
domestic financial pressure, it was hard to predict the
future. He asked if Nawaz would support an International
Monetary Fund package for Pakistan. Nawaz noted that
Pakistan's past experiences with the Fund had not been

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pleasant and it would be better not to have a formal program.
However, if it was necessary, then Pakistan had no choice.


8. (C) Ahsan Iqbal commented that the Fund was dominated by
bankers who did not appreciate the political ramifications of
their conditions. Khwaja Asif noted that the Fund had failed
to rescue countries in recent years and it was better to rely
on bilateral assistance. He said that Pakistan was sensitive
to political factors and needed blood in the form of an
immediate influx of foreign reserves to revive an ailing
patient. Boucher responded that the Fund's seal of approval
was often necessary to elicit additional international and
bilateral support. Chaudhry Nisar said that, officially, the
Finance Minister was still saying that a Fund program was a
last resort.


9. (C) Nawaz asked how the Friends of Pakistan initiative
was progressing. Boucher emphasized that the purpose of the
Friends group was not to provide cash but to hear the
government's plans for security, education, development, etc
and determine how other states can fill in the holes. Over
time, the initiative can produce better and more targeted
assistance. International financial institutions can
complement this effort with loans. The core group included
the U.S., UK, Saudi Arabia, United Arab Emirates, and China;
the Saudis, said Boucher, had come and participated in a very
positive and encouraging way. There were more and more
countries interested in the initiative every day.


10. (C) Finally, Boucher asked if the press stories were
true that Nawaz had attended the Saudi iftar dinner for the
Taliban in Mecca. Nawaz said "no, never." He had met with
King Abdullah but had been "amazed" to read in the press
about his alleged role in negotiating between the Taliban and
Afghanistan.

11. (U) Ambassador Boucher has cleared this message.

PATTERSON