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    Thursday, 12 March 2009, 04:28

    S E C R E T SECTION 01 OF 04 ISLAMABAD 000516

    SIPDIS

    EO 12958 DECL: 08/04/2018

    TAGS PREL, PTER, PGOV, PK

    SUBJECT: LITTLE MOVEMENT ON RECONCILIATION

    REF: A. ISLAMABAD 506 B. ISLAMABAD 508

    Classified By: Anne W. Patterson, for reasons 1.4 (b)(d)

    1. (C) Summary. In a last-ditch effort to

    reduce tensions with the Sharif brothers ahead

    of the start of the lawyers' march on March

    12, President Zardari offered Pakistan Muslim

    League (PML) leader Chaudhry Shujaat Hussain

    the post of Senate leader if PML would form a

    government with the Pakistan People's Party

    (PPP) in Punjab but will do little to pacify

    Nawaz Sharif or the lawyers. Shujaat is

    considering the deal, which will be sealed by

    the March 12 vote in the Senate it could end

    governor's rule in Punjab--if Shujaat can keep

    the PML forward block in line. Other

    compromise efforts have failed, although the

    UK High Commission is probing for the various

    parties' positions in advance of a possible

    HMG mediation effort. After seeing Interior Minister Malik and

    Awami National Party leader Asfundyar Wali Khan, Ambassador

    will see Shujaat March 11 and the Sharifs on March 12.

    2. (C) Amid reports of possible targeted killings and Mumbai

    style attacks during the march, the GOP began arresting

    Pakistan Muslim League-N (PML-N) and Jamaat-e-Islami (JI)

    members and some civil activists. Interior Minister Malik

    assured Ambassador he had no plans to arrest the Sharifs or

    key civil society leaders like Aitzaz Ahsan, but caveated thisby saying he might have to arrest Imran Khan or others "who

    did not obey the law." Lawyers and JI activists already have

    begun infiltrating Islamabad if a significant number of

    demonstrators cannot enter the capital, we expect protests in

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    US embassy cables: Pakistani armychief hints at unseating Zardariguardian.co.uk, Tuesday 30 November 2010 22.06 GMT

    Summary

    As street protests

    threaten to topple the

    Pakistani government,the US ambassador

    discusses ways to end

    the crisis with leaders.

    In one meeting the head

    of the Pakistani army,

    General Ashfaq Kayani,

    tells her that he may be

    forced to "persuade"

    President Asif Ali

    Zardari to resign. The

    ambassador says the

    comments are not an

    indicator of an

    imminent army coup.

    Key passage highlighted

    in yellow.

    Read related article

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    multiple areas, especially in Punjab, beginning March 12.

    Accordingly, we are issuing a Warden Notice March 11.

    3. (C) During Ambassador's fourth meeting in a week with Chief

    of Army Staff (COAS) General Kayani on March 10, he again

    hinted that he might, however reluctantly, have to persuade

    President Zardari to resign if the situation sharply

    deteriorates. He mentioned Asfundyar Wali Khan as a possible

    replacement. This would not be a formal coup but would leave

    in place the PPP government led by PM Gilani, thus avoiding

    elections that likely would bring Nawaz Sharif to power. We do

    not believe Army action is imminent. We do believe Kayani was

    laying down a clear marker so that, if he has to act, he can

    say he warned the U.S. in advance and gave us ample

    opportunities to pressure both sides to back down. Kayani is

    trying to leverage what he considers predominate U.S.

    influence over Zardari, instead of seeking a direct

    confrontation that could provoke an unhelpful civil-military

    clash.

    4. (C) Two weeks ago, Zardari was staring at victory on all

    fronts today, he recognizes he must compromise with the

    Sharifs and might well be looking over his shoulder at the

    Army. Even if the lawyers' march fizzles--and it may--Nawaz

    retains the high moral ground in public opinion and can

    continue attacking a now weakened Zardari. We should encourage

    Zardari to continue efforts to ease tensions and ask the

    Saudis and the UAE to weigh in with their respective allies.

    This could be a protracted process. End Summary.

    Mediation/Confrontation/Collapse

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

    5. (C) There are three political scenarios in play as tensions

    between President Zardari and the Sharif brothers rise ahead

    of the start of the lawyers' march on March 12:

    mediation/accommodation, which resolves the Sharifs'

    disqualification from holding public office, ends governor's

    rule in Punjab and addresses the judicial issue

    confrontation, which leads to violence and possible Army

    intervention and a fizzled march that sets the stage for

    continued conflict.

    Mediation/Accommodation

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

    6. (C) On March 11, Awami National Party (ANP) leader

    Asfundyar Wali Khan described to Ambassador and Polcouns his

    ISLAMABAD 00000516 002 OF 004

    mediation efforts with Jamiat Ulema-e-Islam leader Fazlur

    Rehman over the past week. Zardari, he asserted, agreed to

    request a review of the Supreme Court decision disqualifying

    the Sharifs, said that after a positive outcome to that review

    Shahbaz Sharif would be reinstated as Chief Minister Punjab,

    and agreed to a conference to discuss restoring the judiciary.

    In return, Nawaz should delay the lawyers' march.

    7. (C) Nawaz reportedly agreed but then changed his mind and

    demanded reversal of the court decision, an end to governor's

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    rule in Punjab and reinstatement of the former Chief Justice.

    Under pressure, Nawaz relented and agreed to the judicial

    conference idea but offered only to ask the lawyers to

    consider postponing the march, and said all this had to be

    accomplished in a day. Asfundyar noted that it was impossible

    to demand a immediate review of a Court decision that had not

    been formally issued. He told Nawaz that he would win the next

    election and should just be patient by pressing now, he

    threatened a political vacuum that would be filled by the

    Army. This time, warned Asfundyar, Nawaz might not be sent

    into a comfortable exile. Nawaz refused to budge.

    8. (C) Asfundyar said that Zardari was surrounded by advisors

    who were not politicians, so he was not being encouraged to

    compromise Nawaz's chief advisor was Chaudhry Nisar who, with

    the Sharif brothers disqualified, stood the best chance of

    being the next PML-N Prime Minister. Nawaz had provoked the

    Court by launching a campaign over the doctored exam scores of

    the Chief Justice's daughter, and this had prompted the ruling

    against Shahbaz. Asfundyar attributed the crisis 70 percent to

    Nawaz and 30 percent to Zardari. In Asfundyar's view, therewas an absence of trust on both sides, and what was needed was

    a cease-fire in which to conduct reasonable negotiations. If

    the march fizzled, there could be time to work out a

    compromise if the march sparked violence, there was "nothing

    to do but pray."

    9. (C) Asfundyar welcomed the idea of UK mediation but said it

    was the U.S. view that counted most. He also urged that we

    contact the UAE to pressure Zardari and the Saudis to pressure

    Nawaz to back off. ANP had seen PML-N members distributing

    cash envelopes to a stream of supporters this week like

    Zardari, Asfundyar said he believed the money was coming from

    the Saudis. Asfundyar was open to continue mediating if asked.

    He reminded Ambassador that Zardari had offered him the job of

    Prime Minister immediately after the February 2008 elections.

    10. (C) In a separate meeting with Ambassador and Polcouns, UK

    High Commissioner Brinkley said he had received approval to

    approach the various sides, discern their bottom lines, and

    report back to London. HMG had not yet decided whether to take

    on any role of mediator or guarantor. The UK planned to make a

    public statement today urging the parties to resolve their

    differences democratically and eschew violence. Brinkley wasscheduled to see PM Gilani and possibly Zardari and Shahbaz

    Sharif on March 11, and Chief of Army Staff General Kayani and

    Asfundyar Wali Khan on March 12.

    11. (C) Late on March 11, the PML confirmed press reports that

    the PPP had reversed course (Ref B) and now had offered

    Chaudhry Shujaat Hussain the post of leader of the Senate if

    PML agreed to join PPP in a coalition government in Punjab.

    Shujaat will meet PM Gilani later March 11 on March 12, the

    newly constituted Senate would vote on a party leader. If the

    deal goes through, it would end governor's rule in Punjab but

    it is unclear if a PPP-led government will reduce tensions. It

    remains unclear, however, if Shujaat can hold on to his 28-35

    member "forward block" of Nawaz supporters to seal this deal.

    Without the PML forward block, the PPP cannot form a

    government.

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    Confrontation

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

    12. (C) In a March 11 meeting with Ambassador and Polcouns,

    Interior Minister Malik described his efforts to mediate with

    the lawyers to convince them to hold a peaceful march outside

    of Islamabad, but he said the lawyers so far have spurned the

    GOP's proposals. Malik plans to block roads into Islamabad

    ISLAMABAD 00000516 003 OF 004

    beginning March 13. Ambassador warned that efforts to arrest

    the Sharifs or high-profile activists like Aitzaz Ahsan would

    not be well received in Washington or elsewhere. Malik denied

    he had any intention of arresting the Sharifs or Aitzaz but

    qualified this by saying "unless they do not stop, but I will

    tell you first. I have to maintain law and order." He said he

    might have to arrest Imran Khan and some JI activists. (Note:

    On March 10, Punjab police began arresting 200-250 JI student

    activists and low-level PML-N workers. Mission contacts report

    many activists already are going underground. Neither the

    Sharifs nor Aitzaz Ahsan have been arrested. Geo TV News,

    which the GOP has criticized for being anti-government,

    disappeared from cable TV. See septel for updates.)

    13. (C) Malik said he had received serious threat information

    regarding a Mumbai style attack in Karachi on March 13-14 by

    the Jandallah group that previously had attacked the U.S.

    Consulate. There were also reports of a proposed targeted

    killing, against whom was unclear. JI leaders were giving

    their students "black coats" so they could look like lawyers

    and already were infiltrating Islamabad. Malik expected crowds

    of at least 4,000-5,000 in the capital, even with road

    closures.

    14. (S) In four conversations with Ambassador this week, Chief

    of Army Staff (COAS) General Kayani hinted that, however

    reluctantly, he might have to urge Zardari to resign, if

    conditions deteriorate. He did not offer any red lines. Kayani

    indicated that Asfundyar Wali Khan or someone else broadly

    acceptable might be an appropriate replacement for Zardari. We

    do not believe Army action is imminent, but we do believe

    Kayani was laying down a marker that, if he had to intervene,

    the U.S. had been forewarned and given many opportunities to

    avoid intervention by pressuring both Nawaz and Zardari.

    Kayani made it clear that regardless of how much he disliked

    Zardari, he distrusted Nawaz even more. The scenario Kayani

    hinted at was one in which he would pressure Zardari to resign

    (and presumably leave the country). This would not be an

    official Army "coup" it would leave the PPP government led by

    Prime Minister Gilani in place and preclude the need for

    elections that likely would bring Nawaz to power.

    15. (S) Kayani hinted at disquiet among his corps commanders

    who believe Zardari is corrupt and has not been paying enough

    attention to Pakistan's economic and security challenges. ISIDG Pasha highlighted to Ambassador his concerns about

    Zardari's alleged corruption on the flight to the U.S. for the

    strategic review, and we have multiple sources demonstrating

    Army complaints about Zardari. Kayani believes the U.S. has

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    the most influence over Zardari, and he knows we are

    Pakistan's most important ally, especially for increasing the

    capacity of the Pakistani Army. Kayani told Ambassador he has

    talked directly to Zardari, but he does not appear to have

    conveyed the seriousness of Army concerns about Zardari or the

    security situation vis a vis the march. (Note: Kayani may be

    seeking to avoid a confrontation that would prompt Zardari to

    make a disastrous decision to try and oust the COAS.)

    A Fizzle

    --------

    16. (C) At this point, everything appears to rest on the

    outcome of the lawyers' march. PML-N does not have a proven

    reputation for putting demonstrators on the streets, although

    JI does. By applying the road closure/detention tactics that

    worked for Musharraf in 2007 to stop pro-Nawaz demonstrations,

    the government might be able to avoid a serious clash this

    time. But if a policeman fires into the crowd or a terrorist

    attacks protesters, all bets are off.

    17. (C) There is also the likelihood that the march will not

    occur as scheduled. Blocked from Islamabad, there could be

    multiple flash points in the Punjab, early demonstrations in

    Islamabad, and a series of confrontations with the police.

    This could be a protracted clash of wills.

    18. (C) Comment: Two weeks ago, Zardari was staring victory in

    the face after negotiating a PPP win in Senate elections,

    setting Nawaz up for an entirely legal

    ISLAMABAD 00000516 004 OF 004

    disqualification, and looking toward successful Friends and

    Donors meetings that would provide the financial support

    needed to bolster his sagging popularity. By over-reaching to

    make a grab for Punjab without doing his homework on vote

    counting in Punjab, Zardari now needs to compromise with the

    Sharifs and might well be looking over his shoulder at the

    Army. Even if the march fizzles, Nawaz retains the high moral

    ground in the public's eyes and will use it to continue

    attacking a weakened Zardari. Zardari needs to win back the

    military's confidence.

    PATTERSON

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