US embassy cable - 03KATHMANDU1870

S E C R E T SECTION 01 OF 02 KATHMANDU 001870 
 
SIPDIS 
 
NOFORN 
 
STATE FOR SA/INS 
NSC FOR MILLARD 
LONDON FOR POL - GURNEY 
 
E.O. 12958: DECL: 09/23/2013 
TAGS: PREL, PTER, MCAP, PGOV, IN, NP, India Relations 
SUBJECT: NEPAL:  INDIAN AMBASSADOR REPORTS ADVANCES IN 
BILATERAL SECURITY COOPERATION 
 
REF: A. KATHMANDU 1859 
 
     B. KATHMANDU 1692 
 
Classified By: AMB. MICHAEL E. MALINOWSKI.  REASON:  1.5(B,D). 
 
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SUMMARY 
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1.  (S/NF)  According to Indian Ambassador Shyam Saran, 
bilateral consultations between Indian and Nepali security 
and intelligence officers in Kathmandu on Sept 22-23 
proceeded "exceptionally well" as a first step in 
institutionalizing security assistance and information 
exchange between the two governments.  The GOI believes it 
can provide most of Nepal's requirements for conventional 
military equipment, according to Saran, and looks to the USG 
to provide "high-tech" equipment.  New initiatives include 
regularizing contacts between the two countries' respective 
border security units and GOI training on how to counter 
urban terrorism.  While both Ambassadors agreed that their 
efforts to promote a reconciliation between the political 
parties and the Palace had not so far proven successful, 
Saran reported that the Government of Nepal (GON) is 
considering holding phased national and local elections in 
2004.  End summary. 
 
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PROGRESS ON BILATERAL DEFENSE COOPERATION 
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2.  (C)  On September 24 Indian Ambassador Shyam Saran called 
on the Ambassador to brief him on progress achieved during 
bilateral consultations between Indian and Nepali security 
and intelligence officials in Kathmandu Sept. 22-23 (Ref A). 
The initial round of talks went "exceptionally well," Saran 
reported, characterizing them as the "most serious and 
cooperative" discussions on security, military, and 
intelligence topics ever between the two neighbors.  The next 
round is expected to be held in New Delhi in November. 
 
3.  (S/NF)  Saran said the talks focused on three topics. 
First, the discussions helped clarify new Government of Nepal 
(GON) requests for equipment, which included among other 
items mine-protected vehicles (MPVs), jeeps, and INSAS 
rifles.  Saran said the GOI would try to be responsive to the 
new GON requests and may attempt to transfer some MPVs 
currently in Jharkand to Nepal.  (Those vehicles would have 
to undergo some kind of refurbishment.)  Second, since recent 
Royal Nepal Army (RNA) successes in the field increase the 
danger of the Maoists modifying their tactics and diverting 
their attacks to urban environments, the GOI offered to 
provide training on how to counter urban terrorism, Saran 
reported.  Third, the two governments have agreed to 
revitalize intelligence exchanges, especially regarding 
cross-border movement of suspected terrorists.  The smooth 
exchange of information had been hampered in the past because 
the RNA, which is primarily responsible for border security 
in Nepal, had no institutional links with the IB, which is 
responsible for border security in India.  The talks 
addressed how to institutionalize the relationship between 
the two forces, including setting up formal channels of 
communication (with secure "hotlines") at IB offices in 
Siliguri, Patna and Lucknow.  Communications will be 
supplemented by regular meetings between representatives of 
the two security forces at additional local venues as well. 
Saran added that the GOI plans to increase the number of 
border security force units along the border with Nepal from 
14 to 34. 
 
4.  (C)  After Nepal's Dashain-Tihar holidays in October, the 
two governments will pursue conclusion of extradition and 
mutual legal assistance treaties, Saran said.  Talks on this 
subject over the past few days had gone well, he reported, 
with many earlier hurdles, including the sticky topic of how 
to treat third-country nationals, resolved, he reported. 
Extradition of one's own nationals remains a sensitive topic, 
however.  In the past, Saran explained, the GOI had regularly 
turned over suspected Maoists to the GON without a formal 
treaty--earning criticism from human rights groups and INGOs 
such as ICRC in the process.  The wife of Maoist Central 
Committee member Bam Dev Chhetri, whom the GOI had handed 
over in September 2002 (and who was subsequently released by 
the GON during the ceasefire), has filed a case against the 
GOI, he noted.  An extradition treaty with Nepal would give 
the GOI a firm legal basis for such transfers in the future. 
 
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INDIAN VIEWS ON US SECURITY ASSISTANCE 
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5.  (C)  By having the GON prioritize its security needs, the 
GOI will be better able to provide assistance, Saran 
continued.  While the GOI has no objection per se to the USG 
providing M-16 rifles to the RNA, the GOI believes that it is 
in a better position to provide conventional weapons like 
rifles to the Nepali military, and that the USG should offer 
"high-tech" equipment and assistance.  Ambassador Malinowski 
replied that while final funding levels remain unknown, the 
USG is reviewing the possibility of providing refurbished 
Bell helicopters to the RNA.  Saran noted that the GOI may 
provide a few Indian helicopters as well. 
 
 
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NO PROGRESS ON POLITICAL FRONT 
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6.  (C)  Both Ambassadors agreed that their joint efforts, 
along with the British Ambassador, to promote a 
reconciliation between the political parties and the Palace 
(Ref B) had not so far proven fruitful.  The fragile 
consensus between the political parties is already beginning 
to unravel, both noted, with the Nepali Congress hinting it 
will insist that revival of Parliament precede formation of 
an all-party government and the Communist Party of Nepal - 
United Marxist Leninist (UML) hinting it will insist on the 
exact opposite.  Nonetheless, the Ambassadors concurred that 
the GON will have to reach out to the political parties. 
Saran reported that he understands that the King may decide 
to meet the parties to enlist their support and is also 
considering a possible Cabinet expansion.  For now, the GON 
intends to concentrate on elections, including the 
possibility of holding staggered local elections next spring, 
followed by national elections, conducted in phases, 
beginning in November 2004. 
MALINOWSKI