IRAN PAKISTAN GAS PIPELINE PROJECT DEFERRED- AGAIN.

UNCLAS ISLAMABAD 000417 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EFIN ECON EINV PREL PK SUBJECT: IRAN PAKISTAN GAS PIPELINE PROJECT DEFERRED- AGAIN. REF: STATE 003733; ISLAMABAD 00139 ¶1. (SBU) SUMMARY. Local media report a delay in the signing ceremony to formalize the Iran Pakistan pipeline deal. Pres contacts traveling with President Musharraf confirmed the delay in signing the agreement beyond January 31 and a press report indicated that Pakistan has renewed bilateral discussions with India to resolve outstanding issues on India's participation in the pipeline project. END SUMMARY. ¶2. (U) In the evening coverage on January 28, 2008, Dawn News, an English-language Pakistani cable TV channel, reported that Pakistan has deferred the signing of Iran-Pakistan natural gas pipeline project. However, neither the reported delay nor the signing appeared in any of the local daily newspapers on January 29, 2008. A Dawn News "ticker" reported that the signing of the deal was delayed due to the refusal of the Iranians to meet in Abu Dhabi instead of Tehran, however, ECON was unable to authenticate this information. ¶2. (SBU) ECON contacted the Dawn news channel and spoke to the Bureau Chief, Mr. Mubashir Zaidi who confirmed that Dawn correspondent Mateen Haider is currently traveling with President Musharaf and reported that Pakistan deferred the signing of the agreement. Mubashir Zaidi confirmed that President Musharraf was due to travel to Iran to sign the contract, but travel plans were changed at the last moment without any explanation given to the traveling press corps. ¶3. (U) According to an on-line article on January 29 in the Business Standard, attributed to the Press Trust of India, the Petroleum Ministers of India and Pakistan held discussions on January 27, 2008 at the Crowne Plaza hotel in LONDON on the USD 7 billion gas pipeline project involving the two countries and Iran, with "both sides expressing their keenness" to move forward on the project. Indian Petroleum and Natural Gas Minister Murli Deora was invited by his Pakistani counterpart Ahsan Ullah Khan to visit Islamabad to sort out various outstanding issues. Deora assured the Pakistani minister that "India is keen" on the 2,775-km pipeline and issues like the transit fees and strategic investment should be resolved. Khan, who accompanied President Musharraf during his visit to Britain, insisted that "Pakistan is equally keen that the project is put on stream." ¶4. (SBU) COMMENT: GOP officials continue to avoid discussions involving the Iran Pakistan pipeline deal with any Embassy officials. Post will continue to monitor all local media for any information regarding the pipeline discussions and have asked the Ministry of Foreign Affairs to provide the courtesy of advance notification should a signing ceremony be scheduled in the future. END COMMENT. PATTERSON