This record is a partial extract of the original cable. The full text of the original cable is not available.

C O N F I D E N T I A L SECTION 01 OF 02 MANILA 001853 
 
SIPDIS 
 
DEPT FOR SA/PAB AND EAP/PMBS 
 
E.O. 12958: DECL: 04/22/2015 
TAGS: PREL PTER KISL PK IN RP
SUBJECT: INTELLIGENCE COOPERATION AGREEMENT CAPS 
MUSHARRAF'S STATE VISIT 
 
Classified By: (U) Political Officer Paul O'Friel 
for reasons 1.4(b) and (d). 
 
¶1.  (C) SUMMARY.  President Musharraf's state visit produced 
a new counterterrorism cooperation agreement that will 
regularize and expand intelligence exchanges between 
Pakistan's Inter-Service Intelligence Directorate and the 
Intelligence Service of the Armed Forces of the Philippines. 
Musharraf publicly endorsed Manila's bid for observer status 
with the Organization of the Islamic Conference, and backed 
the Philippine government's negotiations to end a 
decades-long Muslim secessionist struggle in Mindanao.  In 
private remarks, however, he warned that the Philippines must 
do more to counter Islamist extremism, or risk becoming the 
new front line in the war against terror.  END SUMMARY. 
 
AGREEMENT TO REGULARIZE AND EXPAND INTELLIGENCE EXCHANGES 
--------------------------------------------- ------------ 
 
¶2.  (C) Pakistani President Pervez Musharraf capped his April 
18-20 state visit to the Philippines -- the first-ever by a 
Pakistani president -- with the signing of a memorandum of 
understanding boosting intelligence cooperation between the 
two countries.  (Note:  President Arroyo joined her father, 
former President Diosdado Macapagal, on the first visit of a 
Philippine leader to Pakistan in 1962.  End Note.)  According 
to Department of Foreign Affairs (DFA) South Asia Director 
Nathaniel Imperial, the agreement, which is similar to 
intelligence exchanges the Philippines has established with 
other states, closes a significant gap in intelligence 
sharing.  Imperial told poloff April 21 that the MOU 
regularizes heretofore ad hoc annual intelligence 
discussions, with a commitment to institutionalize and 
upgrade exchanges between Pakistan's Inter-Service 
Intelligence Directorate (ISID) and the Intelligence Service 
of the Armed Forces of the Philippines (ISAFP).  "We hope for 
very key high-level exchanges soon," Imperial said.  (Note. 
According to press reports, National Security Advisor 
Norberto Gonzales plans a follow up meeting with Pakistani 
counterparts in Islamabad on June 22.  End note.)  He added 
that the agreement also established a framework for 
cooperation on transnational crime, e.g., narcotics, bank 
fraud, and the illegal transfer of small arms, as well as the 
possible exchange of personnel. 
 
EFFORTS TO REINFORCE RELIGIOUS MODERATION 
----------------------------------------- 
 
¶3.  (SBU) Imperial said the two Presidents also discussed 
ways to reinforce religious moderation.  President Arroyo 
expressed support for Musharraf's efforts to reform the 
curriculum in Pakistan's madrassah school system, noting the 
parallels with madrassah schools in the southern Philippines. 
 According to Imperial, his government is also reviewing its 
screening procedures for Filipinos studying in Pakistani 
Islamic schools.  He added that President Arroyo committed 
the Philippines to hosting an international conference on 
inter-faith dialogue, but did not fix a date. 
 
SUPPORT FOR MANILA'S BID FOR OIC OBSERVER STATUS 
--------------------------------------------- --- 
 
¶4.  (SBU) The Pakistani-Philippine talks included discussion 
of the Philippines' bid for observer status in the 
Organization of the Islamic Conference (OIC).  Imperial noted 
that when asked by a journalist about Pakistan's stance on 
Philippine OIC membership, Musharraf had said he supported 
the bid, with the caveat that the OIC is "restructuring" at 
the moment.  Imperial said his government was encouraged by 
Musharraf's stance; while the backing was relative, it 
reversed Pakistan's previous position of outright opposition. 
 (Note. At the 30th OIC Foreign Ministers Conference in May 
2003, Pakistan opposed the Philippines' bid, stating that it 
would set a precedent and open up admission to non-Islamic 
countries -- read India.  End note.)  Other agreements signed 
in the course of the visit included memorandums on supply of 
low-cost pharmaceuticals from Pakistan, mutual lifting of 
visa requirements for diplomats, and promotion of cultural 
exchanges. 
 
PUBLIC REMARKS FOCUS ON COUNTERTERRORISM THEMES 
--------------------------------------------- -- 
 
¶5.  (U) Musharraf's April 20 address to a joint session of 
the Philippine Congress focused on the themes of 
counterterrorism and good governance.  The Pakistani 
President expressed support for the GRP's ongoing peace talks 
with the secessionist Moro Islamic Liberation Front (MILF), 
saying, "Filipino Muslims must strive to be dynamic, vibrant, 
progressive, and loyal part of the Philippines."  He put 
forward his concept of "enlightened moderation," in which 
Islamic nations would do more to reject extremism and promote 
socio-economic development, while Western countries 
simultaneously worked to help resolve long-standing political 
disputes in the Islamic World and assist developing countries 
in their efforts towards "emancipation and development." 
¶6.  (C) At an April 20 Foreign Correspondents of the 
Philippines breakfast, Musharraf focused most of his remarks 
on counterterrorism.  He rejected the notion of a "clash of 
civilizations," noting that "the West is not engaged in a war 
against Islam."  He emphasized the importance of military 
force -- "if the Islamists don't want to live in peace, we 
will eliminate them," but also stressed the vital role 
economic development and stability played in the fight 
against terrorism.  Addressing economic deprivation, 
joblessness, poverty, and illiteracy could neutralize the 
root causes of terrorism.  Education is vital to this end, 
Musharraf said, noting that the madrassah curriculum needs to 
promote moderation and "real values of Islam," and not 
extremism.  In off-the-record remarks, we are told Musharraf 
warned that the Philippines must do more to counter the 
extremist threat in Mindanao, or risk becoming the new front 
line in the war against terror. 
 
COMMENT 
------- 
 
¶7.  (C) Given that many Abu Sayyaf Group (ASG) leaders passed 
through Pakistan on their way to al-Qaida camps in 
Afghanistan and presence of many Filipino students in 
Pakistani madrassahs, the enhanced intelligence cooperation 
agreement is a welcome, but overdue initiative.  Trade ties 
between two countries are paltry (according to Department of 
Trade statistics the Philippines exported $21 million worth 
of goods to Pakistan in 2004, and imported $15 million), and 
are likely to remain so, despite the pharmaceutical 
agreement.  Aside from the intelligence cooperation 
agreement, the Musharraf visit might best be explained by a 
quid pro quo.  Pakistani backing for the Philippines' bid for 
observer status in the OIC, in return for future Philippine 
support for a Pakistani effort to obtain observer status in 
the East Asian Summit, for which India has already qualified. 
 
Visit Embassy Manila's Classified website: 
http://www.state.sgov.gov/p/eap/manila/index. cfm 
Ricciardone