Interview With Suhasini Haidar of CNN-IBN

Mr. Boucher, how does the U.S. actually see its role as an observer at SAARC? What does this entail?

ASSISTANT SECRETARY BOUCHER: I think to some extent we are still figuring it out, because this is the first time there have been observers at SAARC meetings, and the first time for us, so I am thrilled to be here. It's a chance for me to interact with all the leaders of the region and see how they interact with each other. We are looking for areas that we can support, areas like trade or education that we can work with, and try to support the organization and its goals.

QUESTION: We did hear from the Chinese Foreign Minister yesterday. China certainly has in place plans to meet with all the leaders of SAARC, the China-South Asia business forum if you like. Are there specific plans the U.S. has as well?

ASSISTANT SECRETARY BOUCHER: We have a lot of different programs with people in the region, including programs to support SAARC. We have worked with them before on free trade areas, for example, and we are looking for more areas like that where we can be supportive on a regional basis.

QUESTION: Well, you are one of the five observers to this particular SAARC summit. The next one will see Iran inducted as an observer as well. How do you react to that?

ASSISTANT SECRETARY BOUCHER: Well, I guess we'll have to see how it works out. I mean, frankly, Iran has caused a lot of problems for people in this region. It's not necessarily been a helpful influence in terms of its development of nuclear weapons, and countries in this region have expressed their views. So, I think one would hope that members of SAARC would look at this carefully and would also use whatever occasions they have to make clear to Iran they can't continue that kind of behavior.

QUESTION: Are you then disappointed that Iran got such a unanimous support, really, as an observer here?

ASSISTANT SECRETARY BOUCHER: The organization and the people in the organization have to make their own decisions.

QUESTION: Well, let's switch tracks to something that you are more often here for, the negotiations on nuclear cooperation that are ongoing. You were speaking at the [Senate] Foreign Relations Subcommittee when you said that progress on the nuclear deal cooperation is going ahead but not as rapidly as we might desire. Is there a sense that the 123 negotiations are slowing down?

ASSISTANT SECRETARY BOUCHER: Well, we had another round last week where we were hoping, I think, to make more progress and we did. The fact is the United States has really carried through on all its commitments. We are ready to conclude an agreement on the basis that the President and Prime Minister agreed upon. And at this point, the ball is in the Indian court. But we are anxious to make progress. We will be talking in the next couple of days with the Indian government about how we can move forward.

QUESTION: Well, there are so many steps ahead that need to be taken care of. The Nuclear Suppliers Group hasn't yet even taken off. Are you prepared for the eventuality that this deal doesn't finish by year-end?

ASSISTANT SECRETARY BOUCHER: Well, I think we are going to get this deal finished. The question is the timing. And that's why we would like to see it moving as rapidly as possible, because we do have to complete each of these steps. We have to go back to our Congress. We want this to become a reality, it's certainly a big breakthrough in U.S.-India relations and we all look forward to fruition.

QUESTION: Is this sort of slowdown right now actually hampering the deal in any way? What is it, is it a technical…?

ASSISTANT SECRETARY BOUCHER: I think it is a process of negotiation and we recognize that. We are willing to sit down with the Indian side and negotiate. We have done that already, and I am sure we will have to do it again. But we hope to make progress in those negotiations because we do see all these steps that have to be completed, and our congressional time table, and the other factors.

QUESTION: Speculation in Washington that it will be upgraded once again to the political level. Do we see Nicholas Burns coming back into the negotiations?

ASSISTANT SECRETARY BOUCHER: Well, he has been very involved. He had meetings in Washington with former Foreign Secretary Saran in February. Foreign Secretary Menon came in February as well. So, he has been very involved. He has been on the phone with his counterparts and he is working this very actively along with the rest of us.

QUESTION: But is it a cause for concern just yet?

ASSISTANT SECRETARY BOUCHER: I think I wouldn't quite go that far. As I said, we would like to make progress. We are willing to make progress, and we are going to keep looking at how to make progress.

QUESTION: At the Subcommittee you also spoke about the possibility of an India-Pakistan nuclear arms race and said that "that is not a possibility" but also that you were encouraged by the progress being made in India-Pakistan talks, particularly on the subject of Kashmir. What in particular makes you feel encouraged?

ASSISTANT SECRETARY BOUCHER: Well, I think there has been a lot of discussion of different ideas. There have been discussions in India, discussions in Pakistan, discussions among people in Kashmir as well. And there are ideas that seem to be coming together. I leave it to the Indians and Pakistanis to determine how they can proceed. They will have another session of talks, I guess, this week here. So, we have been encouraged at the reduction of tensions over all, the fact that they are making progress and they're looking at how they can solve some of these fundamental issues.

QUESTION: At the same subcommittee meeting you spoke about the need for U.S. engagement on specific issues of South Asia and then, if I can quote you correctly, you said the danger of a series of failed states if these engagements, a succession of dangerous failed states if these negotiations were not to happen. Could you explain that?

ASSISTANT SECRETARY BOUCHER: I don't remember saying that, frankly.

QUESTION: You have been quoted as saying that.

ASSISTANT SECRETARY BOUCHER: I generally talk about the other side, the enormous potential of this region, the young people of this region, of countries sort of bringing it together and moving along the path of democracy and development and peaceful relations with each other. And there is a lot to do in that regard. I don't think anybody can look around the region and say everything is going well everywhere, but if we can overcome some of these challenges -- challenges of terrorism, challenges of poverty, challenges of education, challenges of democracy, corruption, things like that -- if we overcome those, this region just has a tremendous potential. So, I tend to look on the positive side of what we can accomplish and see how we can do that.

QUESTION: You spoke of democracy -- right now Pakistan is preparing for elections and you yourself said you are convinced elections will happen later this year. Is there a process that the U.S. sees a role for itself in, perhaps in mediating a deal to bring some of the key political players like Benazir Bhutto, Nawaz Sharif back into the electoral process?

ASSISTANT SECRETARY BOUCHER: I think we've tried to support the election process in every way we can and we want this to be an open and free and fair election. We have made clear our view that that's part of the program, it's part of the program that President Musharraf has laid out. We will try to support that. We do a lot of things to support democracy, whether it's working with civil society in Pakistan, we support the election commission in Pakistan. So, we are trying to support the election in every way we can.

QUESTION: Now, at the SAARC summit where you are an observer, deep differences really between the Afghanistan President Hamid Karzai and the Pakistani side. President Karzai actually talking about Pakistani involvement, Pakistani possible support to terror groups that are based in Pakistan. How do you see that playing out? These are both allies of the U.S. We've seen some pressure coming from the U.S. as well to try and put those differences aside.

ASSISTANT SECRETARY BOUCHER: Well, we have a done a lot of work with Afghanistan and Pakistan and they have talked to each other in a variety of forums and continue to talk to each other. I think they will probably have some meetings while we are here in India, and that's a good thing. It really boils down to, there are problems with terrorism in Pakistan and problems with terrorism in Afghanistan, and we want to work with both sides and see each side work as hard as it can against terrorism. Only by all of us working together we can conquer these problems.