CHIEF MINISTER SHAHBAZ SHARIF READY TO CORRECT GOVERNOR'S

C O N F I D E N T I A L LAHORE 000069


E.O. 12958: DECL: 4/3/2019
TAGS: PGOV PTER PK
SUBJECT: CHIEF MINISTER SHAHBAZ SHARIF READY TO CORRECT GOVERNOR'S
MISTAKES

REF: Lahore 68


CLASSIFIED BY: Bryan Hunt, Principal Officer, Consulate Lahore,
U.S. Department of State.
REASON: 1.4 (b),(d)


1. (C) Summary: Newly restored Chief Minister Shahbaz Sharif
told Principal Officer (PO) April 3 that he will focus on the
terrorism issues that afflicted Punjab while Governor Salman
Taseer had taken over. He noted that the March 31 court ruling
only stayed his disqualification from office, while his brother
Nawaz's ineligibility stood for the moment, but he expected that
the Supreme Court would look favorably in the final ruling in
mid-May. Shahbaz related that the Pakistan Muslim League-Nawaz
(PML-N) has offered to maintain the coalition with the Pakistan
People's Party (PPP) that the court ruling had restored, but he
waited for the final decision from the PPP. Regarding the PPP's
offer for the PML-N to join the federal government, Shahbaz laid
down several conditions and reiterated that his party lacks
trust in President Asif Zardari. End Summary.

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Restored But Not Refreshed
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2. (C) In an April 3 meeting with Principal Officer, Chief
Minister Shahbaz Sharif reflected on the deterioration of
Punjab's security under the leadership of governor's rule. He
decried that Governor Salman Taseer had ignored a specific
warning issued March 25 that targeted police training
facilities. As a result, he explained, only three officers
"without even sticks" guarded the entrance to the Manawan
Training Center when it came under attack March 30. He worried
that, when connected with the attack on the Sri Lankan cricket
team, Punjab now faces a stronger, more pervasive threat than
before, but he resolved to confront the terrorists during the
continuation of his tenure. Shahbaz related that he would
preside over a gathering of security officials to discuss the
threats to the province.

- - -
Court Ruling Gives New Life
- - -


3. (C) Regarding the March 31 court ruling, Shahbaz clarified
that the court only stayed the disqualification against him; his
brother Nawaz's ineligibility remained standing because it did
not immediately impact the government. He took the stay order
as a sign that the Supreme Court will eventually rule in his and
Nawaz's favor.

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PML-N To Wait for PPP Decision
- - -


4. (C) Shahbaz confirmed press reports that the Pakistan Muslim
League-Nawaz (PML-N) has invited the Pakistan People's Party
(PPP) to sustain the previous provincial government coalition,
which the court ruling had also effectively restored. Although
elements of the PPP appeared to lean in favor of the coalition,
Shahbaz said that his party will wait for President Asif
Zardari's decision, which will likely occur during the PPP's
Central Executive Committee meeting in Naudero on April 3.
(Note: The CEC meeting reportedly gave Zardari authority to
decide.)

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PML-N Reluctant to Join Federal Government
- - -


5. (C) PO asked whether the PML-N would take up the PPP's offer
to re-form the coalition in the federal government. Shahbaz
acknowledged the offer, but noted that the PPP must satisfy
several conditions before the PML-N would feel comfortable. The
pledge to create a committee in Parliament to implement the
Charter of Democracy (COD) is only a start, he hedged. The
PML-N would also like to see more powers given to the Prime
Minister, the position of President reduced to the ceremonial
figure that Pakistan's Constitution had intended, and far
greater accountability on foreign assistance. PO assured
Shahbaz that the U.S. would impose strict conditions and
monitoring regimes on the increased assistance provided under
the Kerry-Lugar legislation, but he noted that other countries,
such as China and Saudi Arabia, usually lacked such strings when
they provide financial support.


6. (C) Shahbaz added that a general lack of trust in Zardari
also hampers the PML-N's enthusiasm for joining the federal
government. He related that soon after the Long March
resolution, Zardari resumed political games by delaying the
restoration of Shahbaz and announcing a premature end to
governor's rule. Shahbaz said that he preferred working with
Prime Minister Gilani, who has stood by his word so far.

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Forward Bloc To Join Government Regardless
- - -


7. (C) If the PPP decides to maintain its tie-up with the PML-N,
Shahbaz noted, he would still reshuffle his cabinet to
incorporate those "forward bloc" members of the Pakistan Muslim
League (PML) who will support the PML-N. Accordingly, forward
bloc members, now in the majority of the PML, attempted to force
a change in the leader of the opposition April 3 with a motion
in the provincial assembly. Former Punjab Minister of Education
Imran Masood told PO that once the PML joins the cabinet, the
leader of the opposition would again change to reflect the
remaining PML members still opposing the PML-N and possibly the
PPP.

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Don't Attack ISI
- - -


8. (C) Shahbaz remarked that the recent comments from U.S.
officials blaming the Inter-Services Intelligence (ISI) could
only hurt Pakistan's effort to fight terrorism. He noted that
ISI and the PML-N have had extremely bad relations in the past,
but American criticisms of ISI's failure to act against
extremism dampens the willingness of the agency to work against
terrorists. "Whether you like it or not, ISI is the only game
in town," he advised.


9. (C) Comment: Following the brief, helter-skelter rule of
Governor Taseer, Shahbaz's restoration brings a measure of
stability and relief to the provincial government. His apparent
decision to concentrate on security is a welcome one, and we
will continue to press PML-N to shut down Lashkar-e-Taiba and
Jamaat-ud-Dawa facilities.


HUNT