VZCZCXRO3570
RR RUEHLH RUEHPW
DE RUEHIL #3933 3581319
ZNY CCCCC ZZH
R 231319Z DEC 08
FM AMEMBASSY ISLAMABAD
TO RUEHC/SECSTATE WASHDC 0817
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHDC
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RHMFISS/CDR USCENTCOM MACDILL AFB FL
RUEHNE/AMEMBASSY NEW DELHI 4232
RUEHML/AMEMBASSY MANILA 3111
RUEHLO/AMEMBASSY LONDON 9321
RUEHKP/AMCONSUL KARACHI 0814
RUEHLH/AMCONSUL LAHORE 6547
RUEHPW/AMCONSUL PESHAWAR 5404

C O N F I D E N T I A L ISLAMABAD 003933 
 
SIPDIS 
 
E.O. 12958:  DECL:  12/22/2018 
TAGS: EINV EFIN ENGY ECON PGOV PREL PK
SUBJECT: PAKISTANI MEDIA AND GOP ATTITUDES TOWARD THE BIT 
 
Classified by Anne W. Patterson, reasons 1.4 (b), (d) 
 
¶1. (C) SUMMARY: A recent article in the Pakistani press has 
criticized the Bilateral Investment Treaty (BIT) as "one-sided" and 
"in favor of U.S. investors" only.  The article presents some 
misconceptions about the BIT and was refuted by a Ministry of 
Investment official.  Five outstanding issues need to be resolved or 
they will continue to delay the conclusion of the BIT negotiations. 
Secretary General Salman Farruqui said that high-level negotiations, 
requiring the involvement of the new administration's U.S. Trade 
Representative, would be required to resolve the issues.  It is thus 
unlikely that the BIT could be concluded before the end of the 
current administration.  End summary. 
 
MISLEADING ARTICLE 
- - - - - - - - - - 
 
¶2. (SBU) A local Pakistani newspaper, Dawn, ran an article on 
December 22 which mischaracterized the ongoing negotiations for the 
BIT between the U.S. and Pakistan, quoting anonymous officials.  The 
author wrote that the BIT is "one-sided tilted entirely in favor of 
U.S. investors."  In addition, the author quotes an unnamed expert 
stating that "the kind of concessions they (Americans) are seeking 
should not be given." 
 
¶3. (SBU) EconOff spoke with Mr. Kosar Zaidi, Director Legal and 
International Agreements of the Ministry of Investment who denied 
that the article reflected the views of the government.  He remarked 
that the author, Mubarak Zeb Khan, based his articles on "old 
documents."  Mr. Zaidi commented that the GOP is ready to negotiate 
and conclude the BIT agreement.  However he noted that there are some 
lobbies, which he refused to name, that are resisting the signing of 
a BIT between Pakistan and the United States. 
 
¶4. (SBU) Post is drafting a response letter to the editor of Dawn 
which seeks to clarify the purpose of the BIT and its potential 
benefits for Pakistan. 
 
OUTSTANDING ISSUES 
- - - - - - - - - - 
 
¶5. (SBU) There are five outstanding issues that remain to be resolved 
in order to finalize negotiations for the BIT. These issues concern 
dispute settlements, recovery of damages, arbitration procedures, 
scope of the BIT to extend to the judiciary and transparency of BIT 
laws and procedures. 
 
GOP WANTS MORE NEGOTIATIONS FIRST 
- - - - - - - - - - - - - - - - - 
 
¶6. (C) In a meeting with the DCM on December 23, Secretary General 
Salman Farruqui said that the GOP was "very keen" on signing the BIT, 
but that some issues still needed to be resolved.  He stated that the 
experts thought that more negotiations were needed and he himself was 
of the opinion that these would have to be high-level negotiations in 
order to make progress as the working level had reached a "dead end." 
 He anticipated that a new round of discussions would therefore need 
to await the appointment of a new U.S. Trade Representative. 
Farruqui expresed interest in President-elect Obama's trade views and 
wondered whether the BIT would be able to move forward based on its 
current format. 
 
COMMENT 
- - - - - 
 
¶7. (C) GOP officials have indicated to post on multiple occasions 
that they are very interested in completing the BIT negotiations and 
signing the Treaty.  Nonetheless, it is clear that they are unwilling 
to sign the March 2006 version of the BIT as it stands without 
addressing the outstanding issues.  The newspaper article, Zaidi's 
intimation that there are certain elements opposed to the BIT, and 
Farruqui's statements on the need for renewed high-level negotiations 
make it clear that although the GOP is interested in concluding a 
BIT, it will not happen before the end of the current Administration. 
 End comment. 
 
PATTERSON