US embassy cable - 05NEWDELHI2792

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 002792 
 
SIPDIS 
 
E.O. 12958: DECL: 04/12/2015 
TAGS: PREL, PTER, KISL, IN, BG, India-Bangladesh, Indo-US 
SUBJECT: DAS GASTRIGHT ENCOURAGES COORDINATION ON BANGLADESH 
 
 
Classified By: PolCouns Geoff Pyatt.  Reasons 1.4 (B, D) 
 
1.  (C) Summary: In an April 18 meeting with MEA Joint 
Secretary Neelam Deo (Bangladesh), SA DAS John Gastright 
 
SIPDIS 
emphasized that all concerned countries, not just India and 
the US, should encourage the BDG to improve its governance. 
Deo agreed that Bangladesh was still at a point where it 
could reverse some of the negative trends, but expressed deep 
skepticism about the current situation, and noted GOI concern 
about the growing influence of radical Islamists.  End 
Summary. 
 
Expanding Dialogue 
------------------ 
 
2.  (C) Highlighting Bangladesh as the next area for US-India 
cooperation, DAS Gastright urged that during the April 18 
Regional Dialogue with A/S Rocca, we work towards a playbook 
of carrots and sticks that we can offer the BDG to encourage 
it to improve governance.  DAS Gastright explained that due 
in part to New Delhi's prodding, Washington has taken a 
careful look at the situation in Bangladesh and has developed 
a strategy of working cooperatively with the BDG and letting 
them know we are paying attention.  Dhaka has noticed 
Washington's stepped-up attention to issues of governance, 
and has recently taken a number of steps that the donor 
community has recommended.  Deo responded that certainly the 
BDG was capable of reversing the slide, but the "real 
tragedy" was that despite having the ability, Dhaka has 
accomplished very little. 
 
SAARC Summit: A Possible Indian Carrot 
-------------------------------------- 
 
3.  (C) DAS Gastright offered the SAARC Summit as an example 
of something positive India might offer Dhaka as an 
inducement to better governance.  Deo was sympathetic that 
the BDG had put a great deal of effort, twice, into 
organizing the meeting, but added that it was not just the 
"blasts" that soured New Delhi on the Summit.  Noting "a real 
buildup in unfriendly attitude," Deo recounted that just 
prior to the original January SAARC date, a serving general, 
in a speech cleared by the PM's office, declared the need to 
"build alliances to counter the enemy -- India." 
 
4.  (C) Observing that the US and India already convey the 
same message on many issues, Deo pointed out that we have 
both underlined to the BDG the importance of economic ties 
with India.  While there was still dissent in Dhaka on 
whether or not to work with India on the 
Burma-Bangladesh-India gas pipeline (an example of how 
politicized any cooperation with India is, she noted), the 
Tata Corporation was working towards a June deadline for 
completing a feasibility study for its proposed USD two 
billion dollar investment in steel and fertilizer plants. 
Deo added that the Tata project had generated interest among 
other Indian companies in doing business in Bangladesh and 
was helping to improve the atmosphere.  However, she noted 
with concern that the Tata project is being overseen by the 
BDG Industry Minister Nizami, who represents Jamaat-e-Islami. 
 
GOI Sees Lurking Extremism 
-------------------------- 
 
5.  (C) Zeroing in on madrassas as the source of Islamic 
extremism, Deo remarked that some of these schools are 
training jehadis, even though the state itself is not 
abetting jihadism.  While agreeing that Islam in Bangladesh 
was generally moderate and resistant to militancy, the Joint 
Secretary argued that there were some organizations, 
 
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particularly in the Chittagong Hill Tracts, that with foreign 
funding were "building something that could get out of 
control."  Citing this and the Chittagong arms haul, she 
added that she did not think the BDG was intentionally 
abetting these groups, but corruption was a huge problem. 
 
6.  (C) Deo also reiterated the GOI assertion that the 
Pakistani foreign intelligence agency, ISI, has been active 
in Bangladesh.  Among the GOI's concerns that the MEA has 
previously expressed, Deo placed particular emphasis on the 
extent to which the Islamic parties were dampening social and 
cultural life in Bangladesh, especially for female athletes. 
She cited recent analysis by the "Friday Times'" Khaled Ahmed 
as evidence that Bangladesh was following an Islamist 
trajectory similar to Pakistan in the 1980s.  In response to 
Deo's inquiry about US involvement in the Kibria 
investigation, DAS Gastright clarified that ours was an 
advisory role. 
 
Elections? Why Bother? 
---------------------- 
 
7.  (C) Noting the possibility that opposition leader Sheikh 
Hasina would not run for office, Deo was not hopeful that 
there would be anything resembling free and fair elections in 
Bangladesh.  The Joint Secretary commented that the BNP was 
willing to tamper with the electoral system to ensure a 
victory.  DAS Gastright told Deo that along with the EU's USD 
25 million for election monitors, the US was committing USD 
10 million for elections, to convey to the BDG that the 
international community is watching closely, and that the US 
is emphasizing a closely scrutinized process, instead of 
personalities.  Deo welcomed this observation, reiterating 
that India wants to coordinate closely with the US on 
Bangladesh. 
MULFORD