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FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC 7318
INFO RUEHNE/AMEMBASSY NEW DELHI 0802
RUEHCG/AMCONSUL CHENNAI 0980
RUEHKT/AMEMBASSY KATHMANDU 9830
RUEHFT/AMCONSUL FRANKFURT 0660
RUEHKU/AMEMBASSY KUWAIT 0270
RUEHDO/AMEMBASSY DOHA 0228
RUEHHK/AMCONSUL HONG KONG 0529

UNCLAS DHAKA 000937 
 
SIPDIS 
SENSITIVE 
 
DEPT FOR H AND SCA 
 
E.O. 12958: N/A 
TAGS: PREL PGOV PINR KDEM EAID OREP BG
SUBJECT:  STAFFDEL YEO VISIT HIGHLIGHTS IMPORTANCE OF POLITICAL 
TRANSITION AND CLOSE BILATERAL TIES 
 
REF: STATE 82421 
 
¶1. (U)  SUMMARY: During their August 19 - 21 visit to Bangladesh, 
StaffDel Yeo underscored the strong Congressional interest in 
bilateral relations and stressed the importance of free and fair 
parliamentary elections by the end of the year.  The staff 
delegation from the House Committee on Foreign Affairs, which was 
led by Peter Yeo and included Manpreet Singh Anand and Brent 
Woolfork, met with senior GOB officials, held discussions with 
political and civil society leaders, visited the Cyclone 
Sidr-affected areas to see USAID-funded recovery projects, and 
visited an HIV/AIDS project in Dhaka.  The Staffdel's local 
interlocutors expressed appreciation for U.S. engagement and 
support. END SUMMARY. 
 
BI-LATERAL RELATIONS 
 
¶2. (SBU)   Foreign Adviser Dr. Iftekhar Ahmed Chowdhury welcomed 
Staffdel Yeo to Bangladesh, acknowledging the critical role that the 
Congress plays in developing our bilateral relationship.   Chowdhury 
stressed Bangladesh's desire for enhanced market access for its 
exports to the U.S., asking that his country not be penalized for 
its success.  Chowdhury claimed that Bangladesh paid $500 million in 
duties on its $3.5 billion in exports to the U.S., which he said was 
a much higher percentage than many other countries' exports are 
charged.  Looking into the future, Chowdhury focused on the 
potential for Bangladesh to transform into a "giant Singapore or 
Bangalore" in 50 years. 
 
¶3.  (SBU)  The Staffdel emphasized the strong Congressional interest 
in Bangladesh's ongoing democratic transition, culminating in 
elections by the end of 2008.  The Foreign Adviser reiterated the 
Caretaker Government's (CTG) commitment to ensuring stability while 
preparing for the return of parliamentary democracy.   In response 
to a question, the Foreign Adviser said that it would be difficult 
for Bangladesh to lift the State of Emergency since its constitution 
did not provide an alternative that would ensure stability. 
Chowdhury expressed hope that Bangladesh's international partners 
would understand the importance of maintaining security until and 
during elections.  Chowdhury also focused on the importance of 
building strong institutions and explained the need to ensure 
continuity of reforms begun by the CTG. 
 
¶4. (SBU)  In a separate meeting, Foreign Secretary Touhid Hossain 
also highlighted the economic and trade dimension of the bilateral 
relationship.  Specifically, Hossain focused on the importance to 
Bangladesh of continued GSP benefits.   Referring to the New 
Partnership for Development Act, Hossain acknowledged concerns by 
some African countries, but expressed hope that the final bill would 
not disadvantage Bangladesh.   On politics, Hossain said he was 
convinced that elections would take place on schedule, and pointed 
to the successful August 4 elections and the Election Commission's 
achievement in creating a photo voter's list as positive 
developments. 
 
¶5.  (SBU)  Responding to a question from the Staffdel, Hossain said 
Bangladesh understood the importance of addressing worker rights 
issues and the linkages to trade preferences.  He said that 
Bangladesh would be open to the idea of regional approaches to 
addressing labor issues.  Hossain also said that the GOB was looking 
for ways to ensure that Bangladesh's expatriate workers were treated 
better in destination countries.   The Staffdel also noted the 
continuing Congressional interest in the case of Salahuddin Shoaib 
Chowdhury.  Hossain said the GOB was aware of this interest and said 
that he and the Home Secretary were trying to resolve the case. 
Hossain clarified that Chowdhury no longer faces the death penalty, 
even if convicted in the ongoing case. 
 
ELECTIONS PREPARATIONS 
---------------------- 
 
¶6.  (SBU) During his meeting with the Staffdel, Bangladesh's Chief 
Election Commissioner A.T.M. Shamsul Huda outlined the Commission's 
main achievements in implementing the electoral roadmap as well as 
the remaining challenges.  Huda emphasized the BEC's achievement in 
registering Bangladesh's 80 million voters.  Huda and the other 
Commissioners outlined the key technical, logistical and cultural 
challenges that they had overcome and emphasized the many benefits 
to be derived from the massive registration effort. 
 
¶7. (SBU) The Commissioners also discussed the August 4th local 
elections, which were held in four of Bangladesh's major cities and 
 
nine municipalities.  The EC described these elections as  a key 
test of their capacity to administer elections using the new voter 
list, and claimed the polls demonstrated how the state of emergency 
might affect electoral contests. The Commissioners said that the 
elections were generally successful and they highlighted the absence 
of violence, freedom of nomination and campaigning, high voter 
turnout, and respect for new electoral laws and regulations.  They 
were also candid in outlining some of the lessons learned and 
improvements to be introduced, such as improved voter identification 
and poll worker training. 
 
¶8. (SBU)  During a reception hosted by the Ambassador, the Staffdel 
were able to discuss political developments with representatives 
from a cross-section of Bangladesh's political parties, as well as 
representatives of civil society and the business community.  On the 
whole, the politicians expressed guarded optimism regarding the 
prospects for elections. 
 
 
 
DEVELOPMENT ASSISTANCE 
---------------------- 
¶9. (U) The StaffDel traveled to Sarankhola, in southern Bangladesh, 
to visit the Sidr-affected region to see the ongoing relief effort. 
During their visit, they were able to see four ongoing 
USAID-supported projects: a CARE Shelter Reconstruction project; a 
GOB-constructed Cyclone Shelter; a WFP Emergency Food Distribution 
site; the Leaders of Influence program (involving religious and 
community leaders) and a local government program. The Staffdel 
visited the first few CARE-constructed houses built as part of the 
medium term support for rebuilding livelihoods and reducing 
vulnerability for families affected by Cyclone Sidr. USAID is 
funding construction of approximately 850 houses for families who 
lost their homes in the recent cyclone. The delegation members 
observed the actual food distribution process while visiting WFP's 
general food distribution site. They also handed over the food 
rations to beneficiaries. This USG supported program, implemented by 
the WFP, helps to meet the immediate food needs of people affected 
by Cyclone Sidr. Later, the visitors met informally with officials 
from Rupantar, a USAID-funded NGO that implements some Sidr relief 
and rehabilitation activities. The Staffdel also met with the Muslim 
religious leader (Imams) who have received training under the 
USAID-funded Leaders of Influence program to learn from and actively 
participate in the development efforts of Bangladesh. 
 
 
¶10. (U) USAID implementing partners had an opportunity to describe 
their efforts in the immediate aftermath of the cyclone, as well as 
the long-term reconstruction plans for the region.  The StaffDel was 
also briefed on interagency cooperation in relief efforts, including 
Defense funding for the construction of new cyclone shelters.  This 
visit was an opportunity for the Staffdel to learn how USG supported 
the medium term reconstruction and rehabilitation efforts in the 
aftermath of Cyclone Sidr and how the recently appropriated 
emergency supplemental funds will be used to further reconstruction 
efforts. The $ 77.5 million approved for long term reconstruction 
efforts will help rebuild the livelihoods and productive assets of 
affected communities, such as reestablishing the fishing industry 
and creating jobs through Cash for Work programs. Long term 
reconstruction efforts will include restoration of fish and shrimp 
ponds, assistance to the GOB through a flood shelter planning and 
management program (so that disaster shelters are mapped and built 
in areas where they are most needed), and provision of nutrition for 
children and mothers in the cyclone-affected region. The shelters 
will serve as schools and community centers when not needed for 
emergencies. 
 
¶11. (U) The StaffDel also visited a drop-in center in Dhaka for 
injecting drug users, the population group in Bangladesh with the 
highest prevalence of HIV, which is still less than 5% of estimated 
total users. Padakhep, a local NGO, implements the activity with a 
Global Fund grant managed by Save the Children. These grants and 
partnerships demonstrate the GOB's trust in the private sector to 
assist in critical health service delivery. At the center, the 
visitors interacted with both staff and drug users to get a better 
understanding of the nature of the HIV/AIDS epidemic in Bangladesh 
and of the type of services and interventions which have been 
designed to mitigate the spread of the disease. 
 
¶12. (U) At a dinner hosted by the USAID Director, the StaffDel had 
an opportunity to learn more about the development climate and to 
exchange ideas with the multilateral and bilateral donor community 
 
including UNDP, the World Bank, ADB, WFP, CIDA and the Netherlands 
and with major implementing partners such as CARE and Grameen 
Shakti.   The dinner guests explained the active donor coordination 
mechanisms in Bangladesh, and emphasized how these proved critical 
in the aftermath of the cyclone to ensure the most effective use of 
assistance. 
 
COMMENT 
------- 
 
¶13. (SBU)  The StaffDel's visit came at a perfect time, with the 
next four months vital to ensuring the return to a stable, 
participatory democracy.  The StaffDel's message on the restoration 
of democracy was well-received, with all interlocutors agreeing that 
the elections must proceed in a fair and transparent manner.  This 
visit was also an excellent opportunity to again highlight the 
leading USG role in providing assistance following Cyclone Sidr, as 
well as our commitment to continue to help restore livelihoods over 
the longer term. 
 
¶14. (U)  The Staffdel has cleared this cable. 
 
ROLLINS