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PP RUEHBI RUEHCI RUEHDBU RUEHLH RUEHNEH RUEHPW
DE RUEHKA #0088/01 0271008
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P 271008Z JAN 10
FM AMEMBASSY DHAKA
TO RUEHC/SECSTATE WASHDC PRIORITY 9948
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEHLO/AMEMBASSY LONDON 2230
RHHMUNA/CDR USPACOM HONOLULU HI
RUEAIIA/CIA WASHINGTON DC
RHMFISS/CDRUSARPAC FT SHAFTER HI
RHHMUNS/COMSOCPAC HONOLULU HI
RUEKDIA/DIA WASHDC
RUEKDIA/JOINT STAFF WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC

S E C R E T SECTION 01 OF 05 DHAKA 000088 
 
NOFORN 
SIPDIS 
 
DEPT FOR U/S MCHALE FROM THE AMBASSADOR 
ALSO FOR SCA/FO, SCA/INSB, SCA/PPD 
 
E.O. 12958: DECL: 01/25/2035 
TAGS: PGOV PREL KPAO ECON PINR PINS KDEM PTER BG
SUBJECT: BANGLADESH SCENESETTER FOR U/S MCHALE 
 
Classified By: Ambassador James F. Moriarty.  Reasons 1.4 (B) and (D) 
 
Summary 
------- 
 
¶1.  (C) Undersecretary McHale, we look forward to welcoming 
you to Bangladesh, a secular democracy with a moderate 
Muslim-majority population of nearly 160 million people that 
is friendly to the United States.  U.S. engagement with 
Bangladesh to help develop its democracy and economy and 
counterterrorism  advances U.S. interests in South Asia and 
beyond on Muslim outreach, climate change, food security, UN 
peacekeeping and other global issues.  This is a surprisingly 
hopeful place despite the daunting problems it faces: 
recurring natural disasters; poverty; overpopulation; porous 
borders attractive to terrorists; and a political system that 
features two dominant mainstream parties whose leaders, Prime 
Minister Sheikh Hasina of the Awami League (AL) and 
Bangladesh Nationalist Party (BNP) Chairwoman Khaleda Zia, 
revel in petty partisanship. 
 
¶2.  (C) Yet that is only part of the story.  Bangladesh has 
made huge progress in a number of areas, and is no longer the 
"international basket case" once described by a former 
Secretary of State.  It is now an emerging democracy that in 
December 2008 held its freest, fairest and most credible 
Parliamentary elections since independence in 1971.  After 
sweeping into power in a landslide victory in that election, 
Bangladesh's Awami League government overcame a number of 
challenges during its first year in office, most critically 
the February 2009 Bangladesh Rifles Mutiny.  The Government 
delivered on its campaign promises to crack down on extremism 
and improve Bangladesh's international position in the region 
and globally.  Bangladesh's economy escaped the worst effects 
of the global economic slowdown and remains positioned for 
higher growth levels in the coming years. 
 
Bangladesh, U.S. Goals and Public Diplomacy 
------------------------------------------- 
 
¶3.  (C) President Obama and Secretary Clinton are both 
extremely popular in Bangladesh.  This popularity, coupled 
with the current political, economic and social environment, 
provides an excellent opportunity to advance key U.S. 
objectives in the nation with the fourth most Muslims in the 
world.  The United States enjoys good will in 
history-conscious Bangladesh, affection stemming from Senator 
Edward Kennedy's early support for the creation of the 
country and reflected in people-to-people ties of the 
500,000-strong Bangladeshi diaspora in the United States. 
Given Bangladesh's population, a comparatively modest U.S. 
Government resource investment in public diplomacy 
initiatives could significantly enhance our outreach efforts 
to achieve U.S. goals.  Department funding for our requested 
new "Edward Kennedy" public diplomacy platform in the heart 
of Dhaka's 14 million plus inhabitants, support for the 
companion namesake grant program, and funding for the 
Bangladesh Youth Leadership Initiative would significantly 
expand Mission Dhaka's outreach efforts to targeted audiences 
and key opinion makers. 
 
Hasina Consolidates Power 
------------------------- 
 
¶4.  (C) Upon returning to office in January 2009, Hasina's 
first priority had been to consolidate her power--first 
within the government and then within her party.  Hasina 
gambled in choosing a Cabinet short on experience but long on 
loyalty, elevating trusted lieutenants like Foreign Minister 
Dipu Moni to senior positions.  While some of the new Cabinet 
Members (notably Home Affairs Minister Sahara Khatun) faced 
criticism throughout the year, for the most part the 
Ministers have stayed out of trouble.  Most importantly for 
Hasina, none have been involved in any major corruption 
scandals--a clear difference from past governments.  At the 
same time, the Prime Minister's Office moved quickly to 
replace senior civil servants and military officers suspected 
of pro-opposition sentiments.  In July, Hasina completed her 
consolidation of power through an Awami League Council 
 
DHAKA 00000088  002 OF 005 
 
 
Meeting that sidelined the leaders of the party's "reformist" 
faction.  Hasina ended the year the undisputed leader of her 
party and the nation.  Recent polls showed that Hasina's 
government has retained much of the support that led to the 
party's landslide victory in the December 2008 elections that 
brought to an end two years of emergency rule. 
 
Governance and Political Reform Stymied 
--------------------------------------- 
 
¶5.  (C) To a great extent, the 2007 - 2008 Caretaker 
Government's primary focus was on improving governance and 
moving Bangladesh's politics away from the winner-take-all 
approach that had pushed the country to the brink in late 
¶2006.  Towards that end, the Caretaker Government pushed 
through reforms to the electoral system, pressed parties to 
reform, and attempted to decentralize the administration by 
empowering sub-district (county) level government.  During 
the campaign, politicians from all parties pledged to make 
Parliament effective and improve governance, responding to a 
widely held demand from civil society. 
 
Backtracking, Old Habits Die Hard 
--------------------------------- 
 
¶6.  (C) Almost from the beginning, however, both sides began 
to back track from their pre-election pledges.  The 
opposition BNP, initially stung by their election debacle, 
remained outside Parliament for most of 2009.  While the 
initial excuse for a Parliamentary boycott involved seating 
in the Assembly, by year's end the opposition had announced a 
list of 10 demands before they would return.  For its part, 
the ruling party members of Parliament watered down a number 
of Caretaker reforms, including those on local government. 
While the Parliamentary Committees were formed with members 
from all parties and have been active, on a whole Parliament 
has been a disappointment.  In December, the opposition 
Bangladesh Nationalist Party held its National Council 
Meeting, which adopted a new Constitution and returned 
Opposition Leader Begum Khaleda Zia's notorious son Tarique 
Rahman to prominence, as the number 2 in the party.  As 2010 
dawns, hard-liners in the opposition have increased their 
calls for the opposition to take its case to the streets. 
For its part, the Jamaat Islami, the largest religious party, 
is under siege as it faces a possible judicial ban on 
religious political parties and the threat of war crimes 
trials for its senior leadership. 
 
Denying Space to Extremism 
-------------------------- 
 
¶7.  (SBU) Bangladesh's strong national identity, the history 
of its liberation struggle, and the legacy of moderate Islam 
significantly limit popular support for extremism.  However, 
previous lack of political will, the country's porous 
borders, ungoverned spaces, poor service delivery, and weak 
rule of law have allowed space for transnational and domestic 
terrorists and for other illicit activities, including the 
trafficking of people, arms, and narcotics.  As highlighted 
by the deadly terrorist attack on Mumbai in November 2008, 
transnational terrorists are becoming increasingly active and 
bold in South Asia.  They have demonstrated their ability to 
use Bangladesh as a safe haven, transit point, and recruiting 
base. 
 
Government Committed to Fighting Extremism 
------------------------------------------ 
 
¶8.  (S/NF) Since forming the government, Hasina and her inner 
circle have stressed their determination to confront domestic 
and transnational terrorist groups.  They believe such groups 
were behind attacks against the Awami League during the 
2001-2006 Four Party Alliance government, including two 
assassination attempts against Sheikh Hasina.  The Government 
has also realized that counterterrorism cooperation 
represents India's primary interest in Bangladesh and that 
meaningful steps against the insurgent and terrorist groups 
are a pre-requisite for closer ties with New Delhi.  The 
Bangladesh Government is paying more than lip service to 
 
DHAKA 00000088  003 OF 005 
 
 
fighting terrorism: its intelligence agencies arrested, and 
shared information with the U.S., India, and the United 
Kingdom derived from debriefings of members of the 
Pakistan-based terror group Lashkar-e-Tayyiba (LeT) operating 
in Bangladesh.  These efforts helped disrupt plots to attack 
India during the run up to India's March-April general 
elections.  Similarly, Bangladesh has sent back to the Indian 
Government insurgents from the United Liberation Front of 
Assam, who had been sheltering in Bangladesh for years. 
Hasina also has signaled a strong interest in attacking the 
root causes of extremism.  For example, she has made reform 
of Islamic schools known as madrassas a priority. 
Specifically, she wants to bring thousands of 
heretofore-independent madrassas under government regulation 
to ensure they do not disseminate extremist ideologies and 
their curriculum prepares students to enter the mainstream 
economy. 
 
Law Enforcement Cooperation 
--------------------------- 
 
¶9.  (C) The Embassy plans to help Bangladesh overcome 
weaknesses in GOB law enforcement agencies that hinder the 
fight against terrorism.  Using 1207 funds, the Mission soon 
will launch a community policing program aimed at promoting 
better relations between police and the communities they 
serve in northwest Bangladesh, long a breeding ground for 
Islamic extremists.  The Mission also is working to help make 
Bangladesh's Rapid Action Battalion (RAB) a more transparent 
and accountable organization with respect to human rights 
practices so it can qualify for U.S. Government 
counterterrorism training.  Recent arrests of members of the 
domestic terrorist group Jama'atul Mujahideen Bangladesh, 
including its most wanted explosives expert, attest to the 
RAB's value as a prospective counterterrorism partner. 
 
Impediments to Economic Growth and Development 
--------------------------------------------- - 
 
¶10.  (C) When the current government took office in January 
2009, there was a great deal of concern about the potential 
impact of the global economic crisis on Bangladesh, in 
particular, possible slowdowns in exports or remittances. 
Throughout the year, Bangladesh's economy proved resilient, 
with both exports and remittances maintaining their strength 
and with growth forecast at more than five percent.  Even if 
Bangladesh weathers the global downturn, it still must 
address the challenges it has faced for the last decade and 
more: chronic power shortages, decaying transport 
infrastructure, a weak education system, a fragile financial 
sector, poor governance and low government revenues, 
particularly taxes.  If the Government can tackle even some 
of these problems, GDP growth could increase to seven percent 
to eight percent annually, a rate needed to pull Bangladesh 
effectively out of poverty.  Donors and investors are 
standing by to help; U.S. bilateral assistance to Bangladesh 
this year will exceed USD 150 million.  Our economic ties to 
Bangladesh reinforce our tight-knit relationship.  Bilateral 
trade in 2009 totaled USD 4.2 billion, while remittances 
exceeded USD 1.2 billion.  The U.S. was Bangladesh's largest 
export market and second largest source of remittances. 
 
Bangladesh Regains Place in International Arena 
--------------------------------------------- -- 
 
¶11.  (C) During their first year in office, Prime Minister 
Hasina and Foreign Minister Moni spent a significant amount 
of time traveling abroad to burnish Bangladesh's reputation 
as a leader in the developing world.  The pace of foreign 
travel picked up during the second half of 2009, with the 
Prime Minister traveling to the UN General Assembly, the Rome 
Food Summit, the Commonwealth Heads of Government Meeting, 
and the Copenhagen Climate Change Summit.  Given Bangladesh's 
equities, the Prime Minister played a prominent role at 
several of these international meetings.  For her part, 
Foreign Minister Moni kept up a grueling schedule of 
bilateral and multilateral visits, including a successful 
visit to Washington in September 2009.  Throughout, the Awami 
League has sought to follow a policy of "friendship to all," 
 
DHAKA 00000088  004 OF 005 
 
 
which was proclaimed in the Foreign Minister's inaugural 
comments on Bangladesh's foreign policy. 
 
Small PD Investment to Pay Big Dividends 
---------------------------------------- 
 
¶12.  (SBU) Now is the time to capitalize on the opportunities 
the popularity of the Obama Administration and alignment of 
our interests.  Specifically, problems related to the 
American Center's current and future location should be 
addressed to ensure we maintain access to key influencers 
among Dhaka's 14 million inhabitants.  As one of the most 
densely populated cities in one of the most densely populated 
countries, Mission Dhaka faces significant constraints in 
reaching key population groups, especially youth and 
students. 
 
 
Proposed Edward Kennedy Center to Boost U.S. Outreach 
--------------------------------------------- -------- 
 
 
¶13.  (SBU) The American Center is located more than one hour 
from the heart of Dhaka and its tens of thousands of 
students, government officials and media organizations who 
live and work there.  To provide a new platform to reach 
these key population groups, post has requested $1.25 million 
from R via SCA/PPD to develop "The Edward Kennedy Center for 
Public Service and the Arts."  Post envisions the Kennedy 
Center as a public/private partnership focused on the legacy 
of Senator Edward Kennedy.  He is the most beloved American 
statesman in Bangladesh because of his on-the-ground support 
during the 1971 Liberation War.  Bangladeshis embrace 
Kennedy's commitment to public service.  As envisioned, the 
Kennedy Center would offer regular English language training, 
student advising, speaker presentations, outreach events and 
cultural programs supporting MSP objectives.  The Kennedy 
Center would be staffed by local partners with PAS oversight. 
 
Edward Kennedy Small Grants 
--------------------------- 
 
¶14.  (SBU) Accompanying the Kennedy Center, post also 
proposes funding for a small grants program called "Edward 
Kennedy Grants."  Post requested $150,000 from R via SCA/PPD 
to establish this grants program.  This initiative would be 
similar to small grants programs at missions around the 
world.  An Embassy-wide committee chaired by the PAO would 
choose grantees.  Grants would focus on specific MSP 
objectives, specifically focusing on public service, social 
responsibility and promoting tolerance.  These grants would 
also offer funding in the area of humanities, which is 
severely underfunded in Bangladesh.  Post believes that with 
name recognition, private donors, including those from the 
Bangladesh diaspora community in the U.S., will provide 
future funds for this program. 
 
Bangladesh Youth Leadership Initiative Support 
--------------------------------------------- -- 
 
¶15.  (SBU) Mission Dhaka also submitted a request for 
$110,000 to R through SCA/PPD to support the Bangladesh Youth 
Leadership Initiative.  These funds would be used to provide 
leadership training to 100 high school graduates from a mix 
of madrassas and English and Bangla medium schools.  Through 
active citizenship and public service, the program has 
already proven that students can overcome religious and 
socio-economic differences.  Students participating in this 
program also commit to a three-month community service 
program in support of shared community objectives. 
 
Comment: U.S. Interests and Opportunities in Bangladesh 
--------------------------------------------- ------------ 
 
¶16.  (C) We have a chance to make real progress in U.S. 
relations with Bangladesh and in so doing advance key U.S. 
interests more broadly.  On issues from food security to 
climate change to international terrorism, U.S. and 
Bangladeshi views roughly coincide.  The coming year presents 
 
DHAKA 00000088  005 OF 005 
 
 
us with an opportunity to reap the returns on decades of 
close ties topped off by our steadfast support for the return 
of democracy.  If the U.S. can help the "international 
basketcase" of the 1970s evolve into a reasonably prosperous, 
reasonably stable democracy, U.S. interests in South Asia 
will be on much sounder footing.  Your visit will jumpstart 
us down this path. 
MORIARTY