3/22/2011 Cable Viewer

Viewing cable 10ISLAMABAD428, SENATOR KERRY MEETS WITH PAKISTANI PRESIDENT

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Reference ID Created Released Classification Origin

10ISLAMABAD428 2010-02-23 11:11 2011-03-21 01:01 SECRET Embassy Islamabad

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http://www.thehindu.com/news/the-india-cables/article1556680.ece

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United Kingdom SS E C R E T SECTION 01 OF 03 ISLAMABAD 000428
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Editorial SIPDIS
United States
Latin America E.O. 12958: DECL: 02/16/2020
TAGS: PGOV PREL ECON ETRD IN PK
Egypt SUBJECT: SENATOR KERRY MEETS WITH PAKISTANI PRESIDENT
Yemen ZARDARI
Jordan
REF: ISLAMABAD 399
Browse latest releases
Classified By: Ambassador Anne W. Patterson for reasons 1.4 (b, d).
2010/11 2010/12 2011/01
2011/02 2011/03 ¶1. (C) Summary: In a February 16 meeting with President Zardari, Senator Kerry
said that India was ""very open"" to constructive talks with Pakistan, and urged
Pakistan to reach an agreement with India on counter terrorism. Zardari said
Browse by creation date with U.S. support, talks could move forward. He said he doubted broad talks
with the Taliban were possible, specific regional efforts might succeed.
66 72 73 75 79 85 86 88 Pakistan was fighting militants in Pakistan on a ""shoe-string"" budget, but
89 90 00 01 02 03 04 05 Zardari said that he was committed to finding ways to undermine the pull towards
06 07 08 09 10 militancy in Pakistani society. Kerry said that the GOP needed to rebuild
conflict-affected areas to cement military gains against the insurgency. Kerry
Browse by origin encouraged Zardari to develop trade agreements with Pakistan's neighbors and
agreed to Zardari's request to build consensus for liberalizing U.S. trade with
A B C D F G H I Pakistan. Zardari lamented that he was ""a casualty of the world recession,""
J K L M N O P Q and requested U.S. support to relieve IMF conditions on the Pakistani economy.
R S T U V W Y Z He said he needed ""a deal"" with the United States to strengthen his political
position. End Summary.
Browse by tag Encouraging an Indo-Pak Agreement
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A B C D E F G H
I J K L M N O P ¶2. (C) Senator John Kerry opened the February 16 meeting with President Asif
Q R S T U V W X Ali Zardari by referring to his recent talks with Indian PM Manmohan Singh and
Y Z Pakistani PM Yousuf Raza Gilani (reftel). Kerry said Singh was ""very open"" to
negotiation with Pakistan, starting with the upcoming discussions between
Pakistan and India's Foreign Secretaries. Kerry said that cooperation on
Browse by classification counter terrorism with the Indians could lead to Indian compromises on key
CONFIDENTIAL Pakistani issues such as Kashmir and water use in subsequent meetings. Kerry
encouraged the GOP to come up with specific offers to which the GOI could
CONFIDENTIAL//NOFORN respond.
SECRET
SECRET//NOFORN ¶3. (C) Zardari agreed dialogue is the only way forward. However, he justified
UNCLASSIFIED continued suspicion of India, citing recent ""confirmation"" that there was
UNCLASSIFIED//FOR Indian involvement in the Mumbai attacks. He claimed India had increased its
military spending 30 percent this year and described this as a direct threat to
OFFICIAL USE ONLY Pakistan. When Kerry pointed out the Chinese threat to India, Zardari responded
that Indian tanks cannot operate in the Chinese border region and could only be
Community resources intended for an attack on Pakistan. India has 4,700 tanks, he explained, while

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3/22/2011 Cable Viewer
Follow us on Twitter Pakistan has only 2,600. ""Capability creates a fear,"" he added.
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¶4. (C) Kerry said Zardari should put his concerns on the negotiating table as
Twitter this there was a real opportunity for productive conversation between India and
Digg this page Pakistan now: ""You could arrive at a surprising consensus of mutual
Contact us on IRC understanding."" Zardari conceded that Singh deserved respect, but said he was
not confident about the rest of the Indian government.
courage is contagious
Zardari,s Take on Afghanistan and Iran
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¶5. (C) Kerry asked Zardari what affect President Obama's announcement of a U.S.
drawdown date had had on the possibility of success in Afghanistan. Zardari
answered that it had given a boost to those fighting against the United States,
but that they ""live in illusion."" Zardari doubted that the U.S. would
actually leave Afghanistan in two and a half years, adding that ""no one can
afford that."" Kerry asked if dialogue with the Taliban was possible. Zardari
gave a qualified yes: in specific regions, like Quetta, dialogue might be
possible, but on a larger scale it was not. Kerry asked to what degree events
in Iran have an impact in Pakistan. Zardari said Iran needs to be engaged, and
recounted his visit to Iran as an emissary of the ""free world.""
Pakistan's Fight Against Militants
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ISLAMABAD 00000428 002 OF 003
¶6. (C) Kerry noted that, with the December mosque bombing in Rawalpindi,
Pakistani terrorism had changed. He asked if Pakistan was going to commit to
doing whatever it takes to get rid of extremism. Zardari replied that he was
thinking of the future and what will win people away from extremism in ten or
fifteen years. He added, however, that he was ""fighting a war on a shoestring
budget.""

¶7. (C) Kerry said the GOP needed to rebuild the conflict-affected areas as soon
as possible. He explained that new roads, power plants, and health clinics need
to go in quickly or any progress made in vanquishing the militants and
extremists would be lost. Zardari agreed but added that the war went beyond
these areas. He explained that when a U.S. soldier leaves Afghanistan, he no
longer fears for his life; when a Pakistani soldier leaves the conflict areas,
however, he has to worry that militants might target him in his home in Punjab
or Sindh.
Trade, not Aid
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¶8. (C) Zardari complained that Reconstruction Opportunity Zones (ROZs) were too
confined and requested broader trade concessions for Pakistan. Kerry said that,
given the increase in troops in Afghanistan and the subsequent increased U.S.
demand on Pakistan, he would see if greater trading concessions for Pakistan as
a whole could be included in an upcoming security package.
¶9. (C) Kerry warned, however, that his ability to push for a liberalized trade
agreement between Pakistan and the U.S. was directly tied to Pakistan's
democratic stability and continued cooperation in supporting Afghanistan and
defeating terrorists. Every time there is a ""hiccough"" in Pakistan's support,
Kerry explained, Congress waivers on giving Pakistan additional concessions or
aid. As Pakistan was a new democracy, Zardari said there would naturally be
many ""hiccoughs,"" but added, ""message understood."" Kerry said that Pakistan
also needed to create trade agreements with its neighbors, which would let the
Pakistani public know that the GOP was committed to real economic improvement.
Pakistan Nuclear Assistance
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¶10. (S) Kerry said that the lingering A.Q. Khan network remained ""an
albatross"" around Pakistan's neck. Pakistan's ability to reach a new security
arrangement with India and the increased strength of Pakistan's democratic
institutions would be necessary conditions for the U.S. to consider civilian
nuclear assistance to Pakistan.
Something for the People of Pakistan
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¶11. (C) Zardari expressed his gratitude for U.S. assistance to Pakistan. He
opined that he was ""a casualty of the world recession"" and needed something to
give his people, as all they had since he came to power were price increases.
Zardari requested that the USG weigh in with the IMF against further electricity
tariff increases. Another increase, he warned, would result in riots in the
streets. However, Zardari promised to broaden the tax base and implement a
Value-added Tax (VAT), as required by the IMF Stand-by Arrangement.
¶12. (C) Zardari said poverty, uncertainty, and the lack of educational and
employment opportunities undermined Pakistan's potential as well as his
political standing. Zardari said he needs a ""deal"" to show his people that he
has something to offer them, and that assistance and trade concessions were
prerequisites to ""be able to think about India.""

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¶13. (U) This cable was drafted after Senator Kerry departed Pakistan.
¶14. (U) Participants
ISLAMABAD 00000428 003 OF 003

United States
Senator John Kerry
Ambassador Anne W. Patterson
Dr. Jonah Blank, Senior PSM, SFRC
Ms. Fatema Sumar, PSM, SFRC
LCDR Greg Kausner, Military Liaison
Wendy Nassmacher, Embassy Notetaker
Pakistan
President Ali Asif Zardari
Defense Minister Chaudhry Ahmed Mukhtar
Interior Minister Rehman Malik
Finance Minister Shaukat Tarin
Senator Syeda Sughra Hussain Imam
Foreign Secretary Salman Bashir
Presidential Chief of Staff Salman Faruqi
Presidential Media Advisor Farahnaz Ispahani
PATTERSON

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