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
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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