CODEL TIERNEY MEETS WITH PRIME MINISTER GILANI

C O N F I D E N T I A L SECTION 01 OF 02 ISLAMABAD 000568 SIPDIS E.O. 12958: DECL: 02/04/2019 TAGS: PGOV PREL PTER ECON EAID PK SUBJECT: CODEL TIERNEY MEETS WITH PRIME MINISTER GILANI Classified By: Anne W. Patterson for reasons 1.4 (b) and (d) ¶1. (C) Summary: CODEL Tierney met February 2 with Prime Minister Yousef Gilani. Gilani thanked the U.S. for its help in defusing tensions with India following the Mumbai attacks. He emphasized the GOP commitment to cooperating with the U.S. in the fight against terrorism and stressed the need for a regional approach that engages people at a grassroots level. Gilani requested increased economic and development assistance through the Reconstruction Opportunity Zone (ROZ) and the "Biden-Lugar" legislation to fight poverty and unemployment, which he identified as the root causes of Pakistan's problems. Representative Tierney said the U.S. would like to see Pakistan's civilian government determine the ISI and military budgets, and commended both sides' restraint following the Mumbai attacks. End Summary. ¶2. (C) Representative Tierney (D-MA),accompanied by Representatives George Miller (D-CA),Chris Van Hollen (D-MD),Peter Welch (D-VT),Christopher Murphy (D-CT),Ron Kind (D-WI) and the Ambassador, met February 2 with Pakistan's Prime Minister Yousuf Gilani. Gilani was accompanied by Finance Minister Shaukat Tareen and the Federally Administered Tribal Areas (FATA) Women's President of the Pakistan People's Party (PPP) Ayesha Gullalai. ¶3. (C) Prime Minister Gilani opened by welcoming the new administration and expressed his hope that this change will benefit Pakistan-U.S. relations. He stressed the need for the new U.S. administration to fight terrorism using a regional approach. He noted that since the February 18 general elections, the GOP had worked to improve relations with Afghanistan and India. Gilani admitted that the Mumbai attacks had been a setback with India, but thought that, in time, both countries could move forward to restore positive relations. He thanked the U.S. for its role in defusing tensions. Gilani stated that India had indicated there will be an increase in the exchange of information and that Pakistan would soon make public the findings of its investigation of the attacks. Representative Tierney said that the U.S. people want resolution of the war against terrorism, but the solution must be a thorough one and this would take time. He commended both sides' restraint following the Mumbai attacks. Fighting Terror: A Regional Approach and Grassroots Engagement -------------- -------------- ¶4. (C) Gilani said the GOP wants closer collaboration with the U.S. and promised full cooperation in fighting extremism and terrorism. He noted repeatedly that fighting terror requires a regional approach that is targeted to the needs on the ground. He stressed that until problems with India, especially Kashmir, are resolved, the GOP cannot fully focus its efforts on fighting terrorism. He said the U.S. could trust Pakistan to distribute its resources appropriately, noting that Pakistan had already assured President Bush that Pakistan would not use F-16s against India. ¶5. (C) Gilani stressed that the three and a half million refugees from Afghanistan -- the largest single refugee population in the world -- and poppy production and drug trade in Afghanistan contribute to instability in Pakistan. He suggested that the Tajiks, Uzbeks, Afghans and Taliban that Pakistan is fighting are entering Pakistan with drug money assistance. Gilani called the trilateral jirga that former President Musharraf had attended, as well as the following smaller jirga beneficial and "in the interest of the world." ¶6. (C) Gilani said the GOP wants more intelligence sharing with the U.S., and reiterated previous requests to President Bush for information sharing and increased interaction between the U.S. and Pakistani militaries. He made clear his view that, for the U.S. to be successful in Pakistan, the local and tribal people must be engaged on a grassroots level: if minds and hearts could be won, support for military action would follow. The PPP's FATA Women's President Ayesha Gullalai also emphasized the need for political, economic and social development in the tribal areas. She claimed that tribal people want to assimilate into Pakistan and the world, and support Pakistan's democratic government. Representative ISLAMABAD 00000568 002 OF 002 Tierney thanked Gilani for his suggestions, noting that President Obama had appointed a special team to work in the region. Request for U.S. Economic and Development Assistance -------------- -------------- ¶7. (C) Gilani reiterated the GOP's deep interest in the ROZs and the Enhanced Partnership with Pakistan Act ("Biden-Lugar") Bill. He said that Pakistan's problems stem from poverty and unemployment, and that economic and development assistance would help reduce anti-Americanism and would broaden popular support to combat terrorism. Finance Minister Shaukat Tareen reported on Pakistan's depleting reserves and increasing deficit. Tareen requested U.S. assistance in increasing coordination with the World Bank and other International Finance Institutions, claiming that the World Bank had not dispersed funds in the past 17 months. ¶8. (C) Representative Van Hollen informed Gilani that both Vice President Biden and President Obama had discussed ROZs, and there is hope that ROZ legislation will move quickly through Congress. He added that the legislation will be designed to be mutually beneficial, taking into consideration the interests of all sides. Van Hollen said it is important that Gilani make it clear to the Obama administration that ROZs are important to the GOP. ¶9. (C) Gilani cited Pakistan's success in removing poppy production from Pakistan as an example of Pakistan's ability to comply with U.S. requests. Both Gilani and FM Tareen noted that Pakistan has met all the IMF targets for the first three months of the Standby Arrangement, citing this as further justification that Pakistan deserves U.S. economic assistance. Finance Minister Tareen stated that meetings of the Friends of Pakistan are planned for March and July. Advancements in Civilian Control over ISI and the Military -------------- -------------- ¶10. (C) Gilani brought up U.S. concerns over the ability of the civilian government to control the intelligence services (ISI) and the military. He claimed that ISI now reports to him and that this is the first time since 1974 that the Defense Budget has faced an oversight hearing on the floor of the House. He also assured the CODEL of Army Chief Kayani's professionalism and neutrality, and Kayani's desire to support democracy. Representative Tierney urged Gilani to institutionalize oversight hearings and budget examination procedures, adding that the U.S. would like to see Pakistan's civilian government determine the ISI and military budgets. ¶11. (C) CODEL Tierney cleared this cable. PATTERSON