US embassy cable - 04KATHMANDU692

S E C R E T KATHMANDU 000692 
 
SIPDIS 
 
STATE FOR SA/INS 
NSC FOR MILLARD 
LONDON FOR POL - GURNEY 
 
E.O. 12958: DECL: 04/11/2014 
TAGS: PGOV, NP, Political Parties 
SUBJECT: NEPAL:  KING'S CONFIDANT SAYS MONARCH OPEN TO 
NEGOTIATIONS WITH PARTIES 
 
REF: A. KATHMANDU 683 (NOTAL) 
     B. KATHMANDU 651 
 
Classified By: AMB. MICHAEL E. MALINOWSKI. REASON:  1.5(B,D). 
 
1.  (S) On April 12 royal confidant Prabhakar Rana told the 
Ambassador that King Gyanendra had agreed, as proposed by the 
U.S. Ambassador in agreement with the Indian and UK 
Ambassadors, to resume discussions with political party 
leaders through an as-yet unnamed Palace envoy (Ref B).  Rana 
said he would pass this message to the party leaders.  The 
talks are to be kept confidential and not to be presented as 
undertaken at the behest of the Palace.  According to Rana, 
the King envisions two possible scenarios evolving from these 
discussions.  First, the parties suggest a consensus 
candidate or candidates (whose acceptability to all sides 
will have been thoroughly vetted by the Palace-appointed 
mediator) to head an all-party government.  Alternatively, 
the King could propose a basket of names from which the 
parties would choose a consensus candidate for Prime 
Minister. 
 
2.  (S)  Rana expressed growing concern at the turbulent 
political situation.  The parties and Palace seem farther 
apart than ever, he observed, while Maoist activities are on 
the increase, exacting a severe toll on the economy.  The 
Government's continued talk of elections in such an 
environment seems unrealistic.  That the King is seen as 
presiding over an impending catastrophe will further 
undermine respect for the monarchy as an institution, Rana 
fretted, but he does not seem to appreciate the urgency of 
the situation.  Rana said he has asked Finance Minister 
Lohani to brief the King on the deteriorating economic 
situation, while a parallel briefing by Foreign Minister 
Thapa would highlight the concerns of the international 
community. 
 
3.  (S)  On April 13 Ambassador Malinowski and Indian 
Ambassador Shyam Saran will meet with senior party leaders to 
advance the plan.  On April 14 the Indian Ambassador plans to 
travel to New Delhi to brief the Indian government on efforts 
to encourage a rapprochement between the Palace and the 
parties.  He also expects to speak with the King.  Ambassador 
Malinowski will reinforce the need for accommodation in his 
farewell calls on the King, the Prime Minister and the party 
leaders. 
MALINOWSKI