US embassy cable - 05DHAKA1742

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 001742 
 
SIPDIS 
 
CORRECTED COPY--CLEARANCE LISTED IN PARA 15 
 
E.O. 12958: DECL: 04/12/2010 
TAGS: PREL, PTER, PGOV, ENRG, ECON, BG 
SUBJECT: DAS GASTRIGHT'S VISIT TO BANGLADESH 
 
REF: DHAKA 001718 
 
Classified By: P/E Counselor D.C. McCullough, reasons para 1.4 b, d. 
 
1. (SBU) Summary and Introduction.  On April 10-11, visiting 
SA DAS John Gastright discussed Bangladesh developments with 
Foreign Secretary Hemayetuddin, PMO Principal Secretary 
Kamaluddin Siddiqui, Awami League president Sheikh Hasina, 
UNOCAL Bangladesh Managing Director Andrew Fawthrup, British 
Hight Commissioner Anwar Chowdhury, and young Bangladeshi 
entrepreneurs.  He also met extensively with Mission 
personnel.  Charge and P/E counselor (notetaker) accompanied 
on the BDG meetings.  End Summary and Introduction. 
 
Foreign Ministry 
---------------- 
 
3. (C) Bangladeshis, Hemayetuddin told DAS Gastright, greatly 
value their relationship with the U.S, whose inspiration over 
the decades has helped shape Bangladesh's "quest for 
democracy."  Asked about the looming campaign for national 
elections in early 2007, Hemayetuddin rejected opposition 
Awami League demands for electoral reforms by arguing that 
the existing caretaker system has worked well and should not 
be changed.  He cited Bangladeshis' love of music and the 
peaceful celebration here of minority religious holidays as 
evidence of their fundamentally moderate and tolerant nature. 
 "We have problems like abject poverty which we try to 
address," he said, "but please try to judge us by realistic 
local standards and help us reach our shared goals." 
 
4. (C) DAS Gastright underscored USG concerns about 
extra-judicial killings associated with the Rapid Action 
Battalion (RAB), the bilateral implications posed by the 
Leahy amendment, and the positive signal that would arise 
from arresting Islamist vigilante Bangla Bhai.  Hemayetuddin 
praised RAB for improving law and order throughout the 
country, and characterized "cross-fire" deaths as 
self-defense against well-armed criminals.  "But I agree 
there shouldn't be excesses."  Bangla Bhai, he suggested, 
might have slipped across the porous border into India. 
 
5. (C) Hemayetuddin affirmed the BDG's commitment against 
political violence, and said the ruling coalition's 
two-thirds parliamentary majority denied it any incentive for 
extreme action.  He also argued that including Islamists in 
the coalition constrained their room for agitation against, 
for example, the war in Iraq.  "They're not extremists," he 
stated. 
Hemayetuddin took on board DAS Gastright's hope that PM Zia, 
as Defense Minister, could meet with PACOM Commander Admiral 
Fallon during his visit to Dhaka next week.  (Reftel reports 
Hemayetuddin's readout on Chinese PM Wen's recent visit.) 
 
6. (C) During a short drop-by with Foreign Minister Morshed 
Khan and Foreign Affairs Adviser Reaz Rahman, DAS Gastright 
and Charge were told that the Cabinet would soon approve 
eight of the nine UN CT conventions that Bangladesh has yet 
to endorse.  (Note: In a subsequent phone call to Ambassador 
Thomas, Khan announced that the Cabinet had just approved all 
outstanding conventions except the one on terrorist 
financing.  The latter, he said, is approved in principle but 
concerns need to be resolved about its impact on Bangladeshi 
remittances from the Middle East to local mosques and 
madrassahs.  Parliamentary ratification is not expected to be 
a problem.) 
 
PMO 
--- 
 
7. (C) After welcoming the Chinese premier's visit as a 
counter to Indian "bullying" (reftel), Siddiqui urged the USG 
to press Pakistan and India to reschedule the SAARC summit 
and pursue issues regionally instead of bilaterally.  DAS 
Gastright agreed to relay the request to Washington. 
 
8. (C) DAS Gastright welcomed improved BDG cooperation with 
the FBI in the investigation of the killing of former AL 
leader Shah Kibria.  He expressed concern, however, that 
A/Legatt, during his recent meetings with the suspects in 
Habiganj, had observed signs that the suspects had been 
severely beaten, and that all but one of them denied 
involvement in the crime and recanted their confessions. 
Siddiqui asserted that the BDG was committed to pursuing the 
investigation "wherever it goes" and that Quaiyum, the 
alleged ringleader, would not be allowed to escape justice. 
He took the point that the BDG could significantly strengthen 
the case against the suspects if they could develop 
corroborative evidence separate from the confessions. 
 
Sheikh Hasina 
------------- 
9. (C) DAS Gastright offered condolences for the victims of 
the August 21 and January 27 attacks on AL leaders, hoped 
Hasina's own convalescence was going well, and assured Hasina 
that the USG continues to press the BDG to solve the Kibria 
killing and all acts of political violence.  Hasina replied 
that she has lost all hearing in her right ear and has only 
partial hearing in her left ear.  She reiterated her view 
that the BDG is itself behind the anti-AL attacks.  "Maybe I 
am still alive because of your pressure." 
10. (C) Hasina welcomed DAS Gastright's observation that the 
next national election would likely be the most monitored 
election ever in Bangladesh, but insisted electoral reforms 
are critical for a credible electoral process.  She related 
her long commitment to democracy, but argued that the ruling 
BNP is determined to rig the election and therefore does not 
hold itself accountable to the Bangladeshi people.  DAS 
Gastright urged the AL to exercise, not surrender, its 
political rights and not to boycott the election, and asked 
what the AL's minimum requirements would be to participate in 
the polls.  In response, Saber Hussain Chowdhury, Hasina's 
political secretary, said there should be consensus support 
-- perhaps defined as all parliamentary parties -- for the 
appointments of the chief election commissioner and the 
caretaker government chief adviser, as well as on the 
selection of a new president and chief of army staff for the 
caretaker period because of their control of the army, and 
its key role in providing security, during elections. 
 
British High Commissioner 
------------------------- 
 
11. (C) BHC Anwar Chowdhury reviewed the nature and 
challenges of Bangladesh's dysfunctional political system, 
and in particular the damaging dynastic leadership 
predilections of both mainstream parties.  In contrast, he 
said, Jamaat Islami has internal democracy and a cohesive 
vision for its and Bangladesh's future, which enhance 
political Islam's potential here to exert influence 
disproportionate to its actual electoral support.  He agreed 
that it is critical to reinforce to the BDG our concerns 
about extremism and governance through steady VIP visits. 
 
Young Business Lights 
--------------------- 
 
12. (SBU) Young entrepreneurs, at a dinner, told DAS 
Gastright there are many opportunities for business in 
Bangladesh, which is one reason so many Bangladeshi 
expatriates have returned to start new ventures.  However, 
they noted as significant hurdles poor governance, inadequate 
infrastructure, especially in power and transportation, and 
pervasive corruption, which they have internalized as a cost 
of doing business. 
 
UNOCAL 
------ 
 
13. (SBU) MD Andrew Fawthrup briefed DAS Gastright on 
UNOCAL's (now ChevronTexaco's) activities and experience in 
Bangladesh.  He noted that companies that understand how 
business is done in the region (e.g. at a relatively slow 
pace) can do very well.  UNOCAL minimizes its exposure here 
by making sure it receives adequate returns on existing 
investments before committing to new projects.  Corruption is 
prevalent, he said, but UNOCAL's strong line against payoffs, 
including so called "speed money," has worked to its 
advantage since officials at all levels realize it's not 
worth their time to try and shake UNOCAL down for extra 
"fees" and "payments." 
 
Media Coverage 
-------------- 
 
14. (SBU) Based mostly on a brief press conference after the 
Sheikh Hasina meeting, local media coverage of DAS 
Gastright's visit was straightforward, stressing he was on a 
familiarization visit to Bangladesh.  Several papers 
highlighted his observation that corruption impedes foreign 
investment in Bangladesh. 
 
15. (U) DAS Gastright cleared this message. 
THOMAS