The Cable

CIA chief Leon Panetta briefs Pakistan intelligence chief on major attack

The U.S. government is working furiously to counter a plot to attack several European public targets, CIA chief Leon Panetta told the head of Pakistan's intelligence community Wednesday.

The plot, to attack multiple public targets in several European capitals, was slated to occur in late November, according to Panetta. After capturing one of the prospective attackers en route from Pakistan's FATA region, the U.S. government authorized the CIA to step up drone strikes inside Pakistan to unprecedented levels while working with various allied governments to kill or capture the two to three dozen militants reportedly preparing for the operation.

The strikes being planned focus on soft targets, such as tourist attractions and public meeting spaces. No targets were believed to be in the United States, although the targets could very well have American citizens present.

Panetta, traveling in Islamabad, met with Lt. Gen. Ahmed Shuja Pasha, the head of Pakistan's Inter Services Intelligence agency (ISI) Wednesday to brief him on what American intelligence services have discovered about a series of Mumbai-style attacks planned by al Qaeda in cooperation with Pakistan's Haqqani Network and Lashkar-e-Taiba, the military group responsible for the devastating attacks in India in November 2008.

The Cable received a read-out from a high-level source who was briefed directly on the Panetta-Pasha meeting. The CIA is asking Pakistan to allow expanded permissions to increase the intensity of drone strikes inside Pakistan -- which are already at record levels --and allow greater access for U.S. and associated forces operating inside Pakistan.

According to The Cable's source, Panetta told Pasha that the U.S. already has in custody one of the alleged attackers, a German citizen of Pakistani origin named Siddiqui. He was captured leaving Pakistan's FATA region and is now currently being held at Bagram Air Force Base in Afghanistan.

The attacks were planned for late November and allied intelligence agencies are employing all resources at their disposal to round up the rest of the perpetrators, with the understanding that the threat has not yet been neutralized.

"Unless you have killed or captured all 24 to 36 operatives, how can you be sure the plot is foiled?" the source said.

According to the source briefed on the Panetta-Pasha meeting, there were no targets inside the United States for the plot, but the high-value European targets that were reportedly on the list of sites to be attacked could very well have American citizens present.

European governments have already been taking precautionary measures. The Eiffel Tower was evacuated for the second time Tuesday and the U.K. government is holding its official threat warning level at "severe," the second highest level, which means that "a terrorist attack is highly likely."

Panetta told Pasha that the drone strikes will escalate further in the coming days and pressed him for information that might aid the search and increased access to Pakistani intelligence data on the groups involved.

Pasha, in turn, asked Panetta for any remaining intelligence the U.S. is holding on the groups and individuals it was targeting. Pasha wants the ISI to be in the loop on any related CIA operations. The tone of the meeting was friendly, but extremely tense, the source said.

The Pakistani government is cooperating fully with the CIA, but concerns linger that elements not completely under the government's control may still be holding out, protecting friends in and allegiances with groups such as the Haqqani Network.

The crisis couldn't come at a worse time for the Pakistani civilian government led by President Asif Ali Zardari. Zardari has been under increasing attack by elements in the Pakistani military and the ISI, who have been pressing for his ouster and using elements within the media and judiciary to bolster their cause.

Pasha, as well as Army Chief Ashfaq Parvez Kayani, is said to be working with the civilian government on the imminent threat. But simultaneously, elements of the military and intelligence services are increasing their behind-the-scenes opposition to the Zardari government.

Secretary of State Hillary Clinton declined to comment on the specifics of the threat Wednesday after meeting with EU foreign affairs chief Catherine Ashton in Washington.

"Now with regard to the intelligence reports of threats, we are not going to comment on specific intelligence, as doing so threatens to undermine intelligence operations that are critical in protecting the United States and our allies," Clinton said.

"As we have repeatedly said, we know that al-Qaida and its network of terrorists wishes to attack both European and U.S. targets. We continue to work very closely with our European allies on the threat from international terrorism, including the role that al-Qaida continues to play."

The Cable

Obama announces Thomas Nides to replace Jack Lew

The White House announced late Wednesday President Obama's intention to nominate  Morgan Stanley's Thomas Nides to be the next deputy Secretary of State for management and resources, replacing Jack Lew, who is waiting to be confirmed to be the director of the Office of Management and Budget.

Here's the short bio the White House put out about Nides:

Thomas R. Nides is the Chief Operating Officer of Morgan Stanley. He is an executive officer and serves as a member of Morgan Stanley's Management Committee and Operating Committee. Prior to joining Morgan Stanley, Mr. Nides served for one year as Worldwide President and Chief Executive Officer of Burson-Marsteller, one of the largest public relations agencies in the world. From 2001 to 2004, Mr. Nides was Chief Administrative Officer of Credit Suisse First Boston, and served on the firm's Executive Board. Mr. Nides has also served as Chief of Staff to the United States Trade Representative (Mickey Kantor), Executive Assistant to the Speaker (Tom Foley), Assistant to the Majority Whip of the United States House of Representatives and Senior Vice President of Fannie Mae. Mr. Nides is a graduate of the University of Minnesota.

He also managed the 2000 vice presidential campaign of Sen. Joseph Lieberman (I-CT).

Nides is in for a substantial pay cut if confirmed. According to Forbes magazine, he pulled in over $3.1 million in salary and bonuses for 2008. Morgan Stanley received $10 billion in U.S. taxpayer bailout funds during the financial crisis but paid it all back last year.

Meanwhile, Lew's nomination to head OMB is still being held up by Sen. Mary Landrieu (D-LA) over her unrelated demand that the Obama administration clarify or repeal its ban on offshore oil drilling.

No schedule has yet been set for Nides' confirmation process, pending official notification to the Senate.