Pakistan let China see crashed U.S. stealth helicopter

Pakistan gave China access to the previously unknown U.S. "stealth" helicopter that crashed during the commando raid that killed Osama bin Laden in May despite explicit requests from the CIA not to, the Financial Times reported on Sunday.

The disclosure, if confirmed, is likely to further shake the U.S.-Pakistan relationship, which has been improving slightly after hitting its lowest point in decades following the killing of bin Laden.

During the raid, one of two modified Blackhawk helicopters, believed to employ unknown stealth capability, malfunctioned and crashed, forcing the commandos to abandon it.

"The U.S. now has information that Pakistan, particularly the ISI, gave access to the Chinese military to the downed helicopter in Abbottabad," the paper quoted a person "in intelligence circles" as saying on its website.

It said Pakistan, which enjoys a close relationship with China, allowed Chinese intelligence officials to take pictures of the crashed aircraft as well as take samples of its special "skin" that allowed the American raid to evade Pakistani radar.

One U.S. official, speaking on condition of anonymity, told Reuters there was reason to believe Pakistan had allowed the Chinese to inspect the aircraft. But the official could not confirm it happened with certainty.

The surviving tail section, photos of which were widely distributed on the Internet, was returned to the United States following a trip by U.S. Senator John Kerry in May, a spokesman for the U.S. embassy told Reuters.

Shortly after the raid, Pakistan hinted that it might give China access to the helicopter, given its fury over the raid, which it considers a grievous violation of its sovereignty.

"We had explicitly asked the Pakistanis in the immediate aftermath of the raid not to let anyone have access to the damaged remains of the helicopter," the Financial Times quoted the source as saying.

In an incident such as the helicopter crash, it is standard American procedure to destroy sophisticated technology such as encrypted communications and navigation computers.

DISPLEASURE

Pakistan is a strategic ally to the United States but the relationship has been on a downward spiral since the killing of the al Qaeda leader in the raid by U.S. forces.

Islamabad was not informed in advance and responded by cutting back on U.S. trainers in the country and placing limits on CIA activities there.

There are also growing frustrations with Pakistan over its reluctance to mount offensives against militant factions in the northwest who are fighting U.S.-led foreign forces across the border in Afghanistan.

In a show of displeasure over Pakistan’s cutback in U.S. trainers, its limits on visas for U.S. personnel and other bilateral irritants, the United States has suspended about a third of its $2.7 billion annual defense aid to Pakistan.

Despite this, both sides have tried to prevent a breakdown of relations.

The head of Pakistan’s powerful Inter-Services Intelligence (ISI), Lieutenant-General Ahmad Shuja Pasha, visited the United States last month for talks with U.S. government and intelligence officials, which both sides said went well.

Despite the billions in aid, Pakistan still considers China a more reliable ally than the United States. China is a major investor in predominantly Muslim Pakistan in areas such as telecommunications, ports and infrastructure. The countries are linked by a Chinese-built road pushed through Pakistan’s northern mountains.

Trade with Pakistan is worth almost $9 billion a year for Pakistan, and China is its top arms supplier.

In the wake of attacks that left 11 people dead in the China’s western region of Xinjiang in late July, Pakistan dispatched the ISI’s Pasha to Beijing.

(Writing and additional reporting by Chris Allbritton in Islamabad, Mark Hosenball and Phil Stewart in Washington; Editing by Rosalind Russell and Alison Williams)

http://www.reuters.com/article/2011/08/14/us-pakistan-china-usa-idUSTRE77D2BT20110814

China boosts Pakistan’s power sector

M. Aftab (Analysis)

The Chinese investors are moving ahead to build multi-billion dollar energy development projects in this country. It will make China the single largest investor in the energy sector of Pakistan.

These efforts aim at overcoming, at least, part of the worst electricity and, natural gas outages that often last for days. The seriousness of the energy crunch can be judged from the fact that it has not only slashed the GDP by 2 per cent nearly halving the government target of 4.5 per cent but is making the Pakistan Peoples Party-led government of president Zardari-Prim Minister Yusuf Razaf Gilani extremely unpopular.

This is because besides industries, households and commercial users, too are hit. This is the growing mood of the people at a time when the national elections are due in a year. In fact, the opposition political parties are demanding early elections-citing the government failure to overcome the energy crisis as one of the key reasons to oust it.

Chinese investment plans for Pakistan took a leap forward as Naveed Qamar, Minister for Water and Power, held intensive negotiations with the Chinese government and a range of companies in Beijing this week. The occasion was the fist meeting of China-Pakistan Joint Energy Group (JEWG). The big Chinese delegation was headed by Qian Zhimin, Deputy Administrator of National Energy Administration (NEA) of the National Development Reform Commission of China. The cooperation follows December 17, 2010 signing of the memorandum of understanding at the tp level. Qian Zhimin informed the JEWG session “our efforts are a clear evidence of the brotherly relationship between our two neighbouring countries. This is the spirit with which we are moving fast to develop energy resources of Pakistan.”

“Pakistan has always encouraged and welcomed participation of Chinese entrepreneurs, investors end manufacturing companies to participate in the development all of its sectors, especially in power.

Many of the leading Chinese entrepreneurs, investors and power sector companies are already actively engaged in various energy projects in Pakistan,” Naveed Qamar said at the JEWG conference. He asked the Chinese to invest and develop energy projects in Pakistan as the country is endowed with abundant natural resources, including hydel, natural gas, and renewable energy. Pakistan’s hydro-power generation potential is around 60,000 mw, a vast portion of which is economically exploitable.

Against it, the existing generation installed capacity is less than 20 per cent of the total potential. Pakistan’s coal reserves at Thar in Southern Sindh province alone are estimated at 185 billion tonnes.

Even if half of these reserves are exploited, coal can generate an additional 100,000 mw over the next 30 years. Pakistan also has a big potential in the field of solar and wind based renewable energy resources.

Islamabad has also invited Chinese and other foreign investors to participate in renewing, upgrading and building national level transmission lines for power distribution. This, in itself, is a field with a multi-billion dollar investment potential and big profits.

Qamar said, Pakistan is currently faced with energy demand-and- supply gap, yet the government is fully committed to resolve the prevalent energy shortages and achieving energy security on a sustainable basis with active support of friendly countries, specially China. Pakistan is now faced with an electricity shortage of 5,000 megawatts (mw) which is rapidly widening due to growing consumer demand, industrialisation, expanding services and population growth.

Qamar informed the session, the government of Pakistan has taken various initiatives—including development of upfront tariffs for multiple fuel-technology-based power projects operation and maintenance of public sector power generation companies through private sector, and conversion of the existing Independent Power Projects (IPPs) to cheaper fuels.

The Joint Group discussed and evaluated several projects for joint development and investment. These projects include: Neelum-Jhelum, Khan Khwar, Debai Khwar, Allai Khwar, Jinnah, Satpara, Darawat, Kohala, Gomalzam, Bunji, raising of Mangla Dam, Ghabir, Nai Gaj, Naulong, Diamer-Bhasha, Matiltan Suki Kinari, Kotli, Madian, Sindh-Engro Coal Mining and Power project, Sonda Jherruk Coal Project, AES Import and Coal, Nandipur Thermal Power Project, and Chichuki Malian Thermal Project. The investors also discussed a number of alternate energy projects for development and investment.

Besides Chinese energy officials, a large number of Chinese energy companies and financial market institutions also took part in the JEWG negotiations. They include: China Development Bank, Exim Bank, ICBC, Three Gorges Dam Corporation, China Machinery Engineering Corporation, Dongfang Electric Company, Sinohydro Corporation, HydroChina Corporation, China National Chemical Engineering Corporation, Tianchen Engineering corporation, China Energine International, and China Gazhouba Group Corporation.

The negotiations in China, and the projects in hand will also generate huge business for investors, exporters and Pakistan’s trading partners, in the near future.

http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/business/2011/August/business_August290.xml&section=business&col=