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