KERRY AND QURESHI PLAN STRATEGY FOR SECURING AID

C O N F I D E N T I A L SECTION 01 OF 03 ISLAMABAD 000917

SIPDIS

E.O. 12958: DECL: 04/27/2019
TAGS: PREL PTER PGOV PK
SUBJECT: KERRY AND QURESHI PLAN STRATEGY FOR SECURING AID
TO PAKISTAN

Classified By: CDA Gerald Feierstein for reasons 1.4 (b),(d).


1. (C) Summary: Codel Kerry met April 13 with Foreign
Minister Shah Mehmood Qureshi. Senator Kerry and Qureshi
focused on the importance of articulating a clear GOP
strategy for security and economic growth to both U.S.
legislators and other donor countries. Foreign Minister
Qureshi planned to go to Tokyo for the Friends of Democratic
Pakistan ministerial on April 17 and then to Washington on
May 5-7. The meeting was followed by a joint press
conference, where Senator Kerry announced $10 billion of USG
assistance as proposed in the Kerry-Lugar legislation. End
Summary.


2. (SBU) U.S. participants included Ambassador, Senator John
Kerry (D-MA) Chairman, Senate Foreign Relations Committee
(SFRC),Frank Lowenstein, Chief Counsel (SFRC),Fatema Sumar
(SFRC Staff Member),Deputy Pol Counselor, and Poloff
(Notetaker). Qureshi was joined by Pakistan's Foreign
Secretary Salman Bashir, Additional Secretary for Americas
Attiyah Mahmood, Director General Sohail Mahmood, Ambassador
at Large Nasir Ali Khan, Director General for North America
Sohail Khan, U.S. Director Ali Khan, and MFA spokesman Abdul
Basit.

PAKISTANI PARLIAMENT RECOMMENDS A COUNTERTERRORISM STRATEGY
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3. (C) Foreign Minister Qureshi welcomed Senator Kerry and
thanked him for understanding the grave challenges facing
Pakistan. Qureshi acknowledged the Senator's leadership in
championing the Kerry-Lugar bill and was grateful for the
recognition of the dire economic situation in Pakistan. The
Foreign Minister explained the Pakistan Peoples Party (PPP)
government was accountable to parliament and therefore the
most pressing matters of the day, extremism and terrorism,
were put forward in the National Assembly for debate. The
debate in October had led to a unanimous resolution
condemning terrorism and seeking to reverse extremism. As a
result of the debate, the government called an All Parties
Parliamentary Committee to devise a new strategy to counter
terrorism and extremism.


4. (C) In Tokyo, Pakistan will be able to articulate a clear
plan on security and the economic situation to friends and
donors. Qureshi said that the GOP has done its homework and
developed a thorough plan, but now the challenge is
successful implementation. Qureshi welcomed the new regional
and holistic approach that was presented by Special
Representative to Afghanistan and Pakistan Holbrooke and
Chairman of the Joint Chiefs Admiral Mullen. Qureshi added
that after the Tokyo conference, he will be traveling to
Washington on May 5-7 to discuss the modalities of
implementing the new strategy.

GOP CONCERNS
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5. (C) Qureshi acknowledged that the GOP and the USG both
realize the importance of increasing Pakistani capacity to
fight terror and also to fix the economic situation.
However, Pakistan has some reservations about the new USG
approach, which Qureshi hoped could be overcome. Qureshi
expressed that the "Af-Pak" terminology was not good for
optics. Even though there was a common strategy, Afghanistan
and Pakistan were still two different countries with two
different histories and lumping them together would upset
people. Additionally Qureshi cited other red-line issues for
Pakistan, such as the extension of the NATO/ISAF mandate
beyond Afghanistan, the contact group idea, concerns voiced
in the media about Pakistani security and intelligence
institutions, reopening the border issue, and reported
conditionality of military and economic assistance. Qureshi
understood that there were differences between the House and
Senate versions of the bill and that it was too early to know
the final conditions, but he wanted to help address Pakistani
issues early. To properly address these concerns, Qureshi
planned to get appointments on the Hill to articulate the GOP
point of view. He said that if there were concerns about
money that were not accounted for, the GOP would be committed

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to a more transparent process. Qureshi reiterated that his
strength was connecting and communicating with legislators,
and he genuinely wanted to allay their concerns.


6. (C) Qureshi appreciated the USG support in putting
together the Friends' and Donors' Conference in Tokyo. The
GOP understood the importance of quiet U.S. diplomacy.
Qureshi hoped that in Tokyo in addition to economic help, the
other nations would enunciate a clear message of solidarity
and unqualified support for Pakistan. The Foreign Minister
cited the importance of positive messaging in such critical
times.

SAME POT: ECONOMIC CRISIS AND GLOBAL SOLUTIONS
-------------- --


7. (C) Senator Kerry reiterated the importance of a strong
U.S.-Pakistan relationship. Kerry applauded Qureshi's
articulate and persuasive skills for successfully
representing Pakistan on the international stage. The
Senator acknowledged that nobody agrees on everything but
that the two nations could find ways to make the new strategy
work. Though the security and economic challenges were
complicated and delicate, both nations were in the "same
pot."


8. (C) Senator Kerry was confident that the U.S. House and
Senate would work things out in order to provide crucial aid
to Pakistan. He stressed that as GOP officials travel to
Tokyo and Washington in the next few weeks, they must be
aware of practicalities faced by American legislators. USG
legislators are being called upon to spend billions of
dollars and they have already spent billions on an economic
stimulus package. The U.S. legislators want to get the
economy moving, but they understand that in the long term
this can be guaranteed through a stronger global system of
financial checks and balances. U.S. legislators are looking
to stimulate growth in the energy, life science, and
technology sectors. Senator Kerry stressed that as a
developing economy, Pakistan can reap benefits from new
economic sectors.


9. (C) Kerry asked Qureshi to "help us help you" by sharing
concrete plans on both the security and economic fronts.
Kerry observed that Pakistan had strong institutions that
were "light years" ahead of Afghanistan, making the challenge
of extremism that much more important in Pakistan. Not only
must the GOP share a clear strategy with U.S. legislators,
but do it using language and concepts that Americans will
understand. U.S. legislators are looking for clarity on how
their money will be spent. Kerry urged Qureshi to lay out
clear and articulate plans in terms of security and economic
assistance strategies. Senator Kerry advised that with help
from US counterparts the GOP should be able to present a
clear plan of action. Transparency and accountability in the
plan will not only reassure legislators but also future
investors in Pakistan.

INVEST IN PAKISTAN: PUBLIC-PRIVATE PARTNERSHIPS
-------------- ---


10. (C) Foreign Secretary Salman Bashir suggested that the
development aid must engage more than the two governments.
Using the corporate sector will be crucial. Bashir proposed
the idea of "project-based" cooperation between the GOP and
corporations in which the risk to the companies would be
minimized and the profits guaranteed by Pakistan. This could
be done by implementing a risk insurance facility and giving
partnering corporations sole-bid access to Pakistani sectors.
This plan would encourage the corporate sector to seek
partnerships that are mutually beneficial. Senator Kerry
appreciated the idea and suggested that such plans also be
used in the energy sector. Pakistan could skip over the
mistakes of other developed nations, and become a showcase
for energy independence using no/low carbon and clean
technologies likely to be promulgated in Copenhagen
negotiations.


11. (SBU) The meeting was followed by a joint press
conference. Foreign Minister Qureshi thanked Senator Kerry

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for his dedication to Pakistan. Senator Kerry announced the
pending Kerry-Lugar legislation that would deliver $1.5
billion in non-military aid to Pakistan every year for the
next ten years. Kerry stressed that the U.S.-Pakistan
relationship was not with one single government but with the
people, and this aid would go towards schools, clinics, jobs,
and other projects to help the lives of Pakistanis.


12. (U) CODEL Kerry did not clear this cable.
FEIERSTEIN