VZCZCXRO3880
PP RUEHLH RUEHPW
DE RUEHIL #0417 0291248
ZNR UUUUU ZZH
P 291248Z JAN 08
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC PRIORITY 4707
INFO RUEATRS/DEPT OF TREASURY WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEHNE/AMEMBASSY NEW DELHI 2712
RUEHBUL/AMEMBASSY KABUL 8091
RUEHLO/AMEMBASSY LONDON 7135
RUEHML/AMEMBASSY MANILA 2923
RUEHKP/AMCONSUL KARACHI 8766
RUEHLH/AMCONSUL LAHORE 4680
RUEHPW/AMCONSUL PESHAWAR 3356
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RHMFISS/CDR USCENTCOM MACDILL AFB FL

UNCLAS ISLAMABAD 000417 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
E.O.  12958:  N/A 
TAGS: EFIN ECON EINV PREL PK
SUBJECT: IRAN PAKISTAN GAS PIPELINE PROJECT DEFERRED- AGAIN. 
 
REF: STATE 003733; ISLAMABAD 00139 
 
¶1.  (SBU) SUMMARY.  Local media report a delay in the signing 
ceremony to formalize the Iran Pakistan pipeline deal. Pres contacts 
traveling with President Musharraf confirmed the delay in signing the 
agreement beyond January 31 and a press report indicated that 
Pakistan has renewed bilateral discussions with India to resolve 
outstanding issues on India's participation in the pipeline project. 
END SUMMARY. 
 
¶2. (U) In the evening coverage on January 28, 2008, Dawn News, an 
English-language Pakistani cable TV channel, reported that Pakistan 
has deferred the signing of Iran-Pakistan natural gas pipeline 
project.  However, neither the reported delay nor the signing 
appeared in any of the local daily newspapers on January 29, 2008.  A 
Dawn News "ticker" reported that the signing of the deal was delayed 
due to the refusal of the Iranians to meet in Abu Dhabi instead of 
Tehran, however, ECON was unable to authenticate this information. 
 
¶2. (SBU) ECON contacted the Dawn news channel and spoke to the Bureau 
Chief, Mr. Mubashir Zaidi who confirmed that Dawn correspondent 
Mateen Haider is currently traveling with President Musharaf and 
reported that Pakistan deferred the signing of the agreement. 
Mubashir Zaidi confirmed that President Musharraf was due to travel 
to Iran to sign the contract, but travel plans were changed at the 
last moment without any explanation given to the traveling press 
corps. 
 
¶3. (U) According to an on-line article on January 29 in the Business 
Standard, attributed to the Press Trust of India, the Petroleum 
Ministers of India and Pakistan held discussions on January 27, 2008 
at the Crowne Plaza hotel in London on the USD 7 billion gas pipeline 
project involving the two countries and Iran, with "both sides 
expressing their keenness" to move forward on the project.  Indian 
Petroleum and Natural Gas Minister Murli Deora was invited by his 
Pakistani counterpart Ahsan Ullah Khan to visit Islamabad to sort out 
various outstanding issues.  Deora assured the Pakistani minister 
that "India is keen" on the 2,775-km pipeline and issues like the 
transit fees and strategic investment should be resolved.  Khan, who 
accompanied President Musharraf during his visit to Britain, insisted 
that "Pakistan is equally keen that the project is put on stream." 
 
¶4.  (SBU) COMMENT: GOP officials continue to avoid discussions 
involving the Iran Pakistan pipeline deal with any Embassy officials. 
 Post will continue to monitor all local media for any information 
regarding the pipeline discussions and have asked the Ministry of 
Foreign Affairs to provide the courtesy of advance notification 
should a signing ceremony be scheduled in the future.  END COMMENT. 
 
PATTERSON