Pending post verification are claims that total $279 million for the March-May 2007 period. The areas of greatest concern to us include costs for helicopter operations ($83 million annually), radar maintenance ($65 million annually) and Joint Staff operations ($5 million annually).

114010 7/2/2007 7:25:00 AM 07ISLAMABAD2873 Embassy Islamabad CONFIDENTIAL VZCZCXRO0671PP RUEHLH RUEHPWDE RUEHIL #2873 1830725ZNY CCCCC ZZHP 020725Z JUL 07FM AMEMBASSY ISLAMABADTO RUEHC/SECSTATE WASHDC PRIORITY 0174INFO RUEHBUL/AMEMBASSY KABUL PRIORITY 7268RUEHLO/AMEMBASSY LONDON PRIORITY 5933RUEHKP/AMCONSUL KARACHI PRIORITY 6566RUEHLH/AMCONSUL LAHORE PRIORITY 2751RUEHPW/AMCONSUL PESHAWAR PRIORITY 1172RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL PRIORITYRUEKJCS/SECDEF WASHINGTON DC PRIORITYRUEAIIA/CIA WASHDC PRIORITY

C O N F I D E N T I A L ISLAMABAD 002873

SIPDIS SIPDIS

E.O. 12958: DECL: 07/02/2017 TAGS: ASEC, PGOV, PK, PREL

SUBJECT: MONITORING PAKISTAN'S COALITION SUPPORT FUNDS

Classified By: Anne W. Patterson, for reasons 1.5 (b),(d).

1. (C) Summary: Post increasingly has engaged the GOP to ensure that Coalition Support Funds (CSF), used to reimburse Pakistan for costs related to the fight against al Qaeda and the Taliban, are reasonable and credible. We have asked for additional information in order to verify pending Pakistani requests. End Summary.

2. (C) Recognizing the financial burden that the war on terror places on Pakistan, Congress has authorized the USG to reimburse Islamabad for its contribution to our mutual efforts. Through May 2007, Pakistan has requested reimbursement for $5.6 billion; the U.S. had paid Pakistan $4.9 billion in CSF since October 2001.

3. (C) In order to be effective, CSF should be flexible and speedy. However, since 2006, we have engaged the GOP seeking verification that its CSF requests were reasonable and credible. Following a series of meetings, which included delivery of a request for information from DOD U/S Edelman to the Pakistan MinDef, post has requested additional clarification on expenses.

4. (C) Pending post verification are claims that total $279 million for the March-May 2007 period. The areas of greatest concern to us include costs for helicopter operations ($83 million annually), radar maintenance ($65 million annually) and Joint Staff operations ($5 million annually). We are also seeking confirmation of the location of bunkers constructed ($35 million) and roads built ($20 million) since July 2006, and we have requested answers to anomalies in the cost of rations, flak vests and accommodations maintenance.

5. (C) Post will continue to seek answers that ensure CSF is spent in accordance with Congressional guidelines.

PATTERSON