US embassy cable - 05DHAKA4658

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 004658 
 
SIPDIS 
 
STATE FOR USTR 
 
E.O. 12958: DECL: 09/15/2010 
TAGS: PREL, CASC, ELAB, PHUM, BG 
SUBJECT: CHARGE CONVOKED FOR AMCHAM REMARKS 
 
REF: DHAKA 04601 
 
Classified By: A/DCM D.C. McCullough, reason para 1.4 b. 
 
 1. (C) Summary.  MFA convoked Charge to object to the timing 
and substance of her well-publicized remarks to the American 
Chamber of Commerce on current, mainly economic, trends in 
Bangladesh.  Her references to corruption, the impact of 
violence on investment, and the need for political parties 
and government to cooperate for a successful election are 
nothing new from U.S. officials and others, Charge replied. 
She in turn raised USG concerns about the BDG's repeated 
failure to notify us of detained Americans and the recent 
beating by RAB of a US citizen.  She also flagged as an 
important issue BEPZA's reported obstruction of a potentially 
landmark agreement between workers and management at an EPZ 
factory with major labor unrest.  End Summary. 
 
2. (SBU) On September 15, MFA Americas DG Shameen Ahsan 
convoked Charge to discuss her September 12 address to the 
110 mostly businesspersons at the September monthly luncheon 
of the American Chamber of Commerce in Bangladesh.  Emboff 
(notetaker) accompanied. 
 
3. (C) Ahsan noted that Bangladeshi media gave extensive 
coverage to Charge's speech, and her "unusual" remarks on 
corruption, governance, alleged references to Bangladesh as a 
failed state, and the possibility that the next general 
election might be problematic.  Bangladesh, he stated, has 
had three successful elections, and questions about the 
process should be raised in parliament.  "Voices outside of 
parliament do not meet the standards of concern."  He also 
complained that Charge's speech occurred when PM Zia was 
abroad and on the verge of her meeting with Secretary Rice in 
New York. 
 
4. (C) Charge responded that some headlines had badly 
mischaracterized her remarks, and that she had signed this 
morning a letter of complaint to a newspaper that falsely 
reported she described Bangladesh as a failed, violent state. 
  What she actually said was the BDG should address 
governance, security, and other impediments to investment and 
concerns by some about Bangladesh's stability and security. 
On corruption and elections, she said nothing that has not 
been said previously by US and other officials, including her 
hope appeal to political parties to participate in the 
electoral process and for the government to ensure a 
conducive democratic environment. 
 
5. (C) Charge then raised USG deep concerns over the beating 
of an American citizen by the Rapid Action Battalion (reftel) 
and over the continuing failure of Bangladeshi law 
enforcement officials to provide us with consular 
notification when an American is detained.  Ahsan replied 
that U.S. law enforcement officials are not providing 
consular notification for arrested Bangladeshis.  Asked if 
this meant the BDG was not notifying us of detained Americans 
as a matter of reciprocity, Ahsan replied this was not the 
case.  He claimed the MFA has raised the issue many times 
with the Home Ministry, and hoped the Embassy would again 
follow up directly with Home Minister of State Babar. 
 
6. (C) Charge also flagged for Ahsan a developing problem in 
the Dhaka Export Processing Zone (EPZ) which could damage 
Bangladesh's reputation to foreign buyers and raise new 
concerns about labor rights.  On September 12, she noted, the 
Taiwanese-owned Ringshine LTG ready-made garment factory came 
to a potentially landmark agreement with workers to resolve 
serious issues arising from the factory's implementation of 
the EPZ labor law and its alleged persecution of workers and 
members of its Worker Representation Welfare Committee.  The 
agreement followed the arrival in Dhaka of representatives of 
a major Spanish buyer who threatened to pull its orders from 
Ringshine and perhaps Bangladesh.  Part of the agreement 
includes worker and management training by the BDG, the ILO, 
and the USAID-funded Solidarity Center (SC).  Unfortunately, 
Charge said, the Bangladesh Export Processing Zone (BEPZA), 
which administers the EPZ's for the BDG, is apparently trying 
to block the agreement by blocking the training, due to start 
on September 19, and in particular SC's role in the training. 
 BEPZA is also reportedly maintaining sanctions against 
Ringshine workers rehired and exonerated by management of 
wrongdoing. 
 
7. (C) Ahsan took the points, but raised doubts about the 
impartiality of Solidarity Center.  Many EPZ investors, he 
stated, have told BEPZA that SC fuels labor unrest. 
 
8. (C) Comment: Charge's AmCham speech covered broad but 
familiar ground on economic and political issues.  On 
September 14, Parliamentary Speaker Sircar criticized the 
speech as "unusual" and urged the MFA to pursue the matter 
with the State Department.  MFA can now say it did its job. 
The atmosphere at the meeting was professional and cordial. 
CHAMMAS