VZCZCXRO0369
RR RUEHCI
DE RUEHKA #1068/01 1820820
ZNY CCCCC ZZH
R 010820Z JUL 07
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC 4427
INFO RUEHLM/AMEMBASSY COLOMBO 7993
RUEHIL/AMEMBASSY ISLAMABAD 1719
RUEHKT/AMEMBASSY KATHMANDU 9163
RUEHNE/AMEMBASSY NEW DELHI 0007
RUEHCI/AMCONSUL KOLKATA 0815
RUCNDT/USMISSION USUN NEW YORK
RHHMUNA/USCINCPAC HONOLULU HI

C O N F I D E N T I A L SECTION 01 OF 02 DHAKA 001068 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 07/01/2017 
TAGS: PHUM PGOV KGOV KDEM ECON BG
SUBJECT: A VIEW FROM CHITTAGONG: STRONG SUPPORT FOR THE 
CURRENT GOVERNMENT 
 
 
Classified By: Charge d'Affaires a.i. Geeta Pasi, for reasons 1.4(d) 
 
¶1. (SBU) SUMMARY.  "Guide and support this government" was 
the refrain from journalists, businessmen, academics and 
other elites on a recent visit to Chittagong.  While 
acknowledging problems and imperfections with the government, 
almost everyone endorsed its anti-corruption agenda and asked 
the U.S. to be patient and withhold judgment. END SUMMARY. 
 
¶2. (SBU) On a two-day trip to Chittagong, SCA Pakistan and 
Bangladesh Office Director Karen Aguilar, POLOFF and POLFSN 
held meetings with local leaders, businessmen, journalists 
and officials to get a sense of how people outside of Dhaka 
perceive the current political situation. 
 
OVERALL, STRONG SUPPORT, BUT QUALIFIED 
====================================== 
 
¶3. (SBU) Overall, the views of government performance in the 
first six months of the state of emergency were positive. 
With few exceptions, people expressed support for the 
government's direction and urged the U.S. to provide support. 
 
 
¶4. (SBU) The Bangladeshi management staff of Youngone, a 
Korean-owned garment factory in the Export Promotion Zone 
(EPZ), hailed the new efficiency of Chittagong port and 
credited the military with having halted the paralyzing 
strikes, transportation blockades, and protests that plagued 
the city in 2006.  The Bangladeshi managers cited economic 
mistakes of the government, such as the mandatory shop 
closures at 7PM to conserve electricity, which create 
hardships for people who shop after work, and the shuttering 
or demolition of thousands of tiny, illegal food stalls, 
which helped keep the prices of staples down. On the whole, 
though, they dismissed these as missteps and said the 
government deserved U.S. support to "guide" it. 
 
¶5. (C) U.S. help in "guiding" the government was also 
requested by the local correspondents of three national 
papers.  The journalists were more critical of the government 
and more willing to accuse the military of calling the shots, 
but nevertheless, they suggested that the economy was 
functioning better now, and that premature elections would 
return the country to the old status quo.  They admitted they 
were careful not to cross the military, and that this 
resulted in self-censorship.  However, examples of overt 
interference by the military in media coverage were uncommon. 
 
 
"DRAMATIC AND WONDERFUL:" A PORT THAT FINALLY WORKS 
============================================= ====== 
 
¶6. (SBU) Youngone Managing Director Peter Bauer told us the 
improvements at Chittagong port are "dramatic and wonderful" 
and that it now operates like a normal port.  He applauded 
the government for taking drastic steps against corruption, 
and said the practical differences were noticeable. "We 
aren't being hit up for bakshish (bribes) from every corner 
anymore." 
 
¶7. (SBU) During a tour of Chittagong port, new Port Chairman 
Commodore M. Farooq outlined what he is doing to increase 
efficiency and improve conditions.  He attributed the 
pre-state of emergency problems at the port to interference 
from the mayor (now in jail) and labor unions that were more 
interested in agitation and playing politics than in their 
membership's welfare.  One of Farooq's first acts as chairman 
was to consolidate the number of recognized port labor unions 
from 34 down to one, and remove them from street politics. 
He also cracked down on port workers selling their jobs for a 
cut of the salary to other workers. 
 
¶8. (SBU) As a result of these measures, according to Farooq, 
the turn-around time for cargo coming into the port was 
reduced from nine or ten days to four days.  Opportunities 
for corruption are being reduced by eliminating the number of 
middlemen involved in port ransactions and by ensuring that 
correct charges were being levied for storing goods on port 
premises. According to Farooq, for a small bribe port workers 
would not charge companies the official storage rates, thus 
cluttering the port and slowing down the trans-shipment of 
goods. 
 
¶9. (SBU) The elimination of excessive surcharges has brought 
 
DHAKA 00001068  002 OF 002 
 
 
down the cost of cargo from Singapore to Chittagong from $340 
per ton to $170 per ton.  Farooq said there is a proposal 
pending with the government to reduce the number of port 
workers from 8,000 to between 4,000 and 5,000, which would be 
in line with the staffing of comparably sized foreign ports. 
Significant reductions have occured by culling "ghost" 
workers from the payroll. 
 
MESSAGE TO U.S.: "GUIDE AND HELP US" 
==================================== 
 
¶10. (C) Key political and civil society figures asked that 
the U.S. give the government more time to initiate real 
change in the political system.  Former Chittagong University 
Vice Chancellor Dr. Alamgir Mohammad Serujuddin said this 
period is a "golden opportunity" to make real changes to how 
the country runs, and the government needs to prosecute 
corrupt officials and clean up politics without being rushed 
into "premature" elections. 
 
¶11. (C) Serujuddin admitted the government and military had 
made errors -- Chief of Army Staff General Moeen's speech in 
April which was perceived as a foray into politics, for 
example, and the human rights abuses committed by the 
military -- but the military is learning from their mistakes 
and trying to make adjustments. Former Chittagong Mayor 
Mahmudul Chowdhury asked the USG to "guide" the government 
and cooperate with it, and not set a deadline for it to step 
down.  (NOTE: Chowdhury, a disaffected member of former 
President Ershad's Jatiya Party, is a strong candidate to 
join a new political party.) 
 
NO PROTESTS IF LADIES CHARGED WITH "REAL" OFFENSES 
============================================= ===== 
 
¶12. (SBU) Another consensus point that emerged was that if 
Sheikh Hasina of the Awami League and Khaleda Zia of the 
Bangladesh Nationalist Party were charged with real crimes, 
public support for them would dissipate.  Amar Desh 
correspondent Zahidul Karim Kochi told us the onus would be 
on the government to prove that the cases against the two 
ladies were not politically motivated. "Only one thing will 
be tolerated: convictions based on serious arrests, not on 
fake charges."  If this can be established, their supporters 
will cut them loose. This point was echoed both by the 
business community and local leaders. 
 
COMMENT: "GIVE THE GOVERNMENT TIME" 
=================================== 
 
¶13. (C) The message in Chittagong was remarkably consistent: 
support the government. Chittagong's pro-business (and 
pro-stability) perspective is no surprise given the city's 
dependence on the port and how violent and disruptive 
political and labor unrest had become there. Nevertheless, 
these views indicate an enduring reservoir of goodwill 
towards this government, particularly outside the political 
bubble of Dhaka. 
 
¶14. (U) This was message was drafted after SCA/PB Director 
Aguilar departed Dhaka. 
PASI