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9/23 /12 US e mbassy cables : Pa kis tan army c hie f expla ins fat e of los t mi lli ons | Wo rld news | gua rdi an. co.u k 1/5 www.guardian.co.uk/world/usembassycablesdocuments/188670 Saturday, 24 January 2009, 12:28 C O N F I D E N T I A L SECTION 01 OF 03 ISLAMABAD 000155 SIPDIS EO 12958 DECL: 01/23/2019 TAGS PREL, PGOV, PTER, MAR, MOPS, PK SUBJECT: CENTCOM GENERAL PETRAEUS MEETS WITH PAKISTAN COAS KAYANI Classified By: Ambassador Anne W. Patterson for reasons 1.4 (b) and (d) Summary: (C) In a January 20 meeting with U.S. CENTCOM Commander General David Petraeus, Pakistan Chief of the Army Staff General Ashfaq Kayani reiterated his need for support and asked for changes in the Coalition Support Fund process to allow for more rapid reimbursement. Kayani repeated his concerns about Pakistan's IDP situation, which was undermining military operations, and described candidly the deterioration in Swat and his ongoing operations in Bajaur and Mohmand agencies. Kayani repeatedly expressed concern about the inability of the GOP to "hold and build," which General Petraeus described as the "always unsuccessful clear and leave" strategy. Kayani said he was going to exercise restraint with India, but would respond to an Indian attack. General Petraeus raised the likelihood of an alternative shipment route for NATO through central Asia, stressed the continued need for the route through Khyber, and expressed appreciation for increased cooperation on the border with ISAF forces. General Petraeus indicated that he thought increased measures to control population movements would have to be put in place and assured Kayani of his commitment to support Pakistan military development. Petraeus made clear that the Pakistan military needed to focus on the extremists on the western border, instead of the Indian threat. End summary. 1. (C) U.S. CENTCOM Commander General David Petraeus, Sign into the Guardian using your Facebook account US embassy cables: Pakistan army chief explains fate of lost millions guardian.co.uk, Wednesday 1 December 2010 10.26 GMT Summary General Ashfaq Kayani tells General David Petraeus where millions of dollars reported missing from a fund to fight the Taliban have gone. He requests the US to stop making him look like an army "for hire" and admits his forces have lost control of Swat. Petraeus agrees to look into a new way of disbursing the funds. Key passage highlighted in yellow. Read related article

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Saturday, 24 January 2009, 12:28

C O N F I D E N T I A L SECTION 01 OF 03 ISLAMABAD 000155

SIPDIS

EO 12958 DECL: 01/23/2019

TAGS PREL, PGOV, PTER, MAR, MOPS, PK

SUBJECT: CENTCOM GENERAL PETRAEUS MEETS WITH PAKISTAN COAS

KAYANI

Classified By: Ambassador Anne W. Patterson for reasons 1.4

(b) and (d)

Summary: (C) In a January 20 meeting with U.S.

CENTCOM Commander General David Petraeus,

Pakistan Chief of the Army Staff General

Ashfaq Kayani reiterated his need for support

and asked for changes in the Coalition Support

Fund process to allow for more rapid

reimbursement. Kayani repeated his concerns

about Pakistan's IDP situation, which was

undermining military operations, and described

candidly the deterioration in Swat and his

ongoing operations in Bajaur and Mohmand

agencies. Kayani repeatedly expressed concern

about the inability of the GOP to "hold and

build," which General Petraeus described as

the "always unsuccessful clear and leave" strategy. Kayani

said he was going to exercise restraint with India, but would

respond to an Indian attack. General Petraeus raised the

likelihood of an alternative shipment route for NATO through

central Asia, stressed the continued need for the route

through Khyber, and expressed appreciation for increased

cooperation on the border with ISAF forces. General Petraeus

indicated that he thought increased measures to control

population movements would have to be put in place and assured

Kayani of his commitment to support Pakistan military

development. Petraeus made clear that the Pakistan military

needed to focus on the extremists on the western border,

instead of the Indian threat. End summary.

1. (C) U.S. CENTCOM Commander General David Petraeus,

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US embassy cables: Pakistan army chief explains fate of lost millionsguardian.co.uk, Wednesday 1 December 2010 10.26 GMT

Summary

General Ashfaq Kayani

tells General DavidPetraeus where millions

of dollars reported

missing from a fund to

fight the Taliban have

gone. He requests the

US to stop making him

look like an army "for

hire" and admits his

forces have lost control

of Swat. Petraeus agrees

to look into a new way of

disbursing the funds.

Key passage highlighted

in yellow.

Read related article

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accompanied by the Ambassador, J5 Major General Robert

Allardice and POLAD Michael Gfoeller, met with Pakistan Chief

of the Army Staff (COAS) General Ashfaq Kayani on January 20.

Kayani was accompanied by his Director General Military

Operations, Major General Javed Iqbal, his Chief of Staff,

Lieutenant General Muhammad Mustafa Khan, and his Senior Aide,

Brigadier Zubeir.

Musharraf's Situation

---------------------

2. (C) In opening remarks regarding General Kayani,s likely

move into the official COAS residence, Kayani observed that

former President Musharraf,s situation seemed to be fine, even

though he had been concerned earlier about Zardari,s failure

to grant amnesty to Musharraf. Kayani observed that amnesty

should have been granted immediately when Zardari assumed

office, but it seemed as if the situation had settled down and

he was no longer as concerned about President Musharraf,s

legal situation. (Comment: Former President Musharraf is

visiting his family in the U.S. and also undertaking speaking

engagements. The construction of Musharraf's house near

Islamabad is well advanced, so he may be able to move out of

the COAS house in the next few weeks. End Comment)

Coalition Support Funds

-----------------------

3. (C) Kayani spoke candidly about the process of

reimbursement of Coalition Support Funds (CSF). He said it was

important to avoid the impression that the Pakistan military

is "for hire." Still, the military had little incentive to

provide the copious documentation, since only 40 percent of

the money had been returned to military coffers in the past.

Kayani said the money had mostly supported the federal

government's budget. The typical breakdown had been about 60

percent to the federal government, 40 percent to the military,

but President Zardari had told him recently that the entire

amount would be reimbursed to the military. Kayani suggested

that the CSF reimbursement amount "mirror" the system used for

the UN's reimbursement of peacekeeping expenses or establish a

base period and estimate the increase in military activity

from that base. Petraeus indicated that he believed that the

prospects for the "Enhanced Partnership with Pakistan Act"

also known as the Biden-Lugar legislation, which would provide

$1.5 billion for development activities, were positive, and

there were plans underway to fund Pakistan,s military needs.

IDPs: Humanitarian and Strategic Issue

--------------------------------------

ISLAMABAD 00000155 002 OF 003

4. (C) Kayani explained that his military budget had been flat

lined, and therefore had dropped sharply in real terms;

military spending now represented only 16 percent of the

government's budget. He said the Pakistan military needed

basic equipment like helmets, protective gear, and personnel

carriers. Kayani was particularly concerned about the status

of internally displaced persons (IDPs), who were displaced

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from their homes by fighting. This was not only a humanitarian

problem, but also a strategic one. Kayani said he had no

capacity to compensate civilians who had been injured or whose

property had been destroyed. "If we don,t do that," Kayani

said, "we will lose the battle for public opinion." Kayani

said that the provincial government lacks the capacity to help

the IDPs. He emphasized the importance of carrying forward the

Bajaur operation. Kayani noted that at first he had thought

the army "should stay out of politics," but it was

increasingly obvious that the military would have to become

involved in the IDP situation. Ambassador noted that the

international community had also dropped the ball on providing

relief for the IDPs and was now rushing to catch up.

Swat Valley

-----------

5. (C) Kayani was clear that the GOP had lost control of the

Swat valley. He said the police had no ability to come in

after the army to "hold" territory. He recounted that half of

the 600 police officers, supposedly from the NWFP's elite

police units, destined for Swat had deserted, largely because

there was no command structure. Petraeus replied that the U.S.

had confronted this same issue in Iraq, describing it as a

"clear and leave" strategy, requiring the retaking of the same

ground multiple times. Petraeus observed that the police are

the most vulnerable, since they are exposed in communities.

Petraeus noted that increased measures to control population

movements would probably have to be put in place throughout

the country, which would require considerable manpower.

Frontier Corps

--------------

6. (C) Petraeus said that the Frontier Corps (FC) was working

well with Special Operations Forces, largely because of the

leadership of the Frontier Corps Inspector General Major

General Tariq Khan. Petraeus noted that the 11th Corps Chief

of Staff Brigadier Amir was less cooperative with U.S. forces,

and Kayani took note of that. Kayani said he had concentrated

on improving the Frontier Corps and brought salaries and

rations on a par with the regular army. He had also extended

to the FC a benefit package for the families of those killed

in the line of duty. Kayani added that FC successes in combat

had understandably increased morale. Kayani mused about the

"glorification of terrorism" (particularly the pictures of

dead combatants in the press) and said Pakistan needed press

laws similar to those in the UK.

7. (C) Kayani and Petraeus agreed that some of the

civilian/military projects, which had been impeded at the 11th

Corps, needed to be speeded up. Petraeus had given

instructions that Special Operations Forces would be deployed

regularly and constantly, and the U.S. "needed to move their

soldiers in here, so they could engage productively with theFC."

Pakistan/India

--------------

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8. (C) Petraeus said the most important threat to Pakistan was

on the western border and internally. Terrorists were an

existential threat to Pakistan. Kayani agreed. However, Kayani

observed that he had postponed a missile test. The Indians, he

said, in contrast, had conducted one just a few hours before.

Kayani said he had no intention to resume missile testing as

long as the current tensions persisted. He promised to be

transparent with allies about his plans and had briefed us

about his move of 6000 troops to the Indian border. Kayani

said he was determined to exercise restraint in his actions

with India. He recounted that he had taken no

ISLAMABAD 00000155 003 OF 003

action the evening that Indian External Affairs Minister

Pranab Mukherjee had supposedly called President Zardari and

threatened to declare war. Kayani asked to be alerted if the

U.S. had any warning of another attack - he understood that

the Indians had been warned about the Mumbai attack. He

mentioned that discussion of the consequences of a follow-on

attack made both India and Pakistan hostage to extremists and

increased the likelihood of an attack. "If there is any clue

about another attack," he said, "please share it with us."

Next Steps

----------

9. (C) Kayani returned to the issue of CSF at the conclusion

of the conversation, saying that he hoped to have the May CSF

submission soon, but we needed to develop a simpler way of

handling CSF claims. Petraeus said he would look at options

quickly. Kayani and Petraeus agreed that progress had been

made on the Border Coordination centers and that additional

communications capacity needed to be added. Petraeus pressed

Kayani on moving forward with setting up the additional

facilities inside of Pakistan.

10. (C) Petraeus said he was looking forward to welcoming

Kayani to Tampa during his February 2009 counterpart visit.

Kayani said he hoped, after consultation with the Prime

Minister and the President, to bring a roadmap for

consideration by U.S. officials.

11. (U) This cable has been cleared by CENTCOM. PATTERSON

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