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Musharraf: There are many Indian extremists who have links with extremists in Pakistan. So if the world is serious about combating terrorism, then don't leave India out. Originally, Richard Holbrooke was supposed to be the US special representative for all three countries, but the strong Indian lobby in America prevented that.

Musharraf: No, he is aiming at the right things. He is showing intentions of improving the dialogue with the Muslim world, which is good. He is right when he says that more forces must be deployed in Afghanistan. There is an intention of increasing funding for Pakistan, which is also good. But he also has to understand the reality in Pakistan and I am not sure he does.

Musharraf: One of the realities is that the Indian intelligence service RAW is interfering in our country. For example in Balochistan, our largest province bordering Iran and Afghanistan. One of the most brutal insurgents against our forces, Brahamdagh Bugti ...

Musharraf: ... he is sitting in Kabul, protected by the Afghan government and provided with weapons and money by the Indian intelligence agency RAW. He has his own training camps and sends his fighters to Balochistan where they terrorize people and damage the civil infrastructure. RAW is also interfering in the Swat Valley, I know that. Where do all these Taliban fighters in Swat get their arms and money from? From Afghanistan. The Indian consulates in Jallalabad and Kandahar only exist to be a thorn in the side of Pakistan.

SPIEGEL: Let us talk about the role of the ISI. A short time ago, US newspapers reported that ISI has systematically supported Taliban groups. Is that true? Musharraf: Intelligence always has access to other networks -- this is what Americans did with KGB, this is what ISI also does. You should understand that the army is on board to fight the Taliban and al-Qaida. I have always been against the Taliban. Don't try to lecture us about how we should handle this tactically. I will give you an example: Siraj Haqqani ... SPIEGEL: ... a powerful Taliban commander who is allegedly secretly allied with the ISI. Musharraf: He is the man who has influence over Baitullah Mehsud, a dangerous terrorist, the fiercest commander in South Waiziristan and the murderer of Benazir Bhutto as we know today. Mehsud kidnapped our ambassador in Kabul and our intelligence used Haqqani's influence to get him released. Now, that does not mean that Haqqani is supported by us. The intelligence service is using certain enemies against other enemies. And it is better to tackle them one by one than making them all enemies.

Musharraf: The Americans are hated in the country today. The US drone attacks, which we have been living with for months now, are most unpopular -- there is no doubt about it. Regardless whether they are killing terrorists, Taliban or Al-Qaida-figures or not, there are too many civilian victims. The deployment of drones has to be stopped.

SPIEGEL: The US military eliminated several high-ranking al-Qaida figures through drone attacks. What would be a possible alternative? Musharraf: We have to find a way or method with which the Pakistani army could conduct these attacks itself. There would immediately be much better acceptance amongst the populice and we would cause less collateral damage and there would be fewer civilian victims.

The Pakistani military has lost the wars it has fought via traditional means. But running guerrilla operations—against the Soviets, the Indians and the Afghans—has proved an extremely cost-effective way to keep its neighbors off balance.

The ambassador's book, "Pakistan: Between Mosque and Military," marshals strong evidence that, at least until recently, the Pakistani military made the pretense of arresting militants in order to get funds from Washington. But it never shut down the networks. "From the point of view of Pakistan's Islamists and their backers in the ISI [Pakistan's military intelligence]," Haqqani writes, "jihad is on hold but not yet over. Pakistan still has an unfinished agenda in Afghanistan and Kashmir.

The book concludes by telling how Pakistan's military has used the threat from these militant groups to maintain power, delegitimize the civilian government and—most crucial of all—keep aid flowing from the United States. And the book's author has now joined in this great game. Last week Ambassador Haqqani wrote an op-ed claiming that Pakistan was fighting these militant groups vigorously. The only problem, he explained, was that Washington was reluctant to provide the weapons, training and funds Pakistan needs. He has become a character out of the pages of his own book.