US embassy cable - 02KATHMANDU402

UNCLAS SECTION 01 OF 02 KATHMANDU 000402 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR SA/INS 
 
LONDON FOR RIEGEL 
 
E.O. 12958:    N/A 
TAGS: PREL, EAID, PGOV, ETRD, NP 
SUBJECT: FOREIGN SECRETARY APPEALS FOR IMMEDIATE AID 
 
REF(S): A)  01 KATHMANDU 1675; B) KATHMANDU 0378 
 
---------- 
SUMMARY 
---------- 
 
1. (SBU) SUMMARY:   On Feb. 21 Foreign Secretary Madhu 
Raman Acharya called the Ambassador to the Foreign 
Ministry to appeal directly for immediate assistance in 
the wake of the Maoist attacks on Achham (Ref B).  He 
said the Ministry hopes to send a delegation, at the 
secretary level, to Washington to make its case directly 
 
SIPDIS 
to the USG.  The Ambassador reiterated USG support for 
the Government of Nepal (GON) and reviewed the progress 
of USG efforts to beef up both military and development 
assistance.  He advised the proposed delegation travel 
to Washington after the visit of the assessment team 
from PACOM in April.  End summary. 
 
----------------------------------- 
WE APPRECIATE THE SENTIMENT . . . 
----------------------------------- 
 
2.  (U)  On Feb. 21 Foreign Secretary Madhu Raman 
Acharya asked to meet with the Ambassador at the MFA. 
Joint Secretary for the Americas Gyan Chandra Acharya 
and Undersecretary Prahlad Prasai also attended.  The 
Ambassador opened the meeting by extending condolences 
for the Feb. 17 Maoist attacks in Achham District (Ref 
B).  The Foreign Secretary thanked the Ambassador for 
the statement issued by A/S Boucher the previous day, 
and for the Ambassador's own comments, carried in the 
local press Feb. 21, condemning the attacks. 
 
3. (SBU) The Ambassador reiterated USG support for 
Government of Nepal (GON) efforts to address the 
increasingly violent insurgency, and reported that the 
USG is still reviewing possible programs to expand both 
military and development assistance.  The USG is hoping 
to be able to provide at least an additional USD 3 
million in development funds for this year, and a 
possible USD 6-9 million the following year.  At least 
USD 2 million in military aid for this year now seems 
possible, he said.  A supplement to the budget with 
additional funds for Nepal is also being contemplated, 
he said, but cautioned that such a process may be 
complicated and lengthy. 
 
------------------------------ 
. . . BUT WHERE'S THE MONEY? 
------------------------------ 
 
4.  (SBU)  Although its bureaucratic processes take 
time, the USG wants to help Nepal, the Ambassador 
concluded, and is very concerned by the flare-up in 
violence in an already volatile region.  He noted 
Secretary of State Colin Powell brought this message to 
 
SIPDIS 
the GON during his Jan. 18-19 visit.  Secretary Acharya 
responded that the Powell visit had raised hope for more 
USG aid.  He said he understands that the USG is 
reviewing the requests, but stated that the Foreign 
Ministry must demonstrate to the Nepali public that it 
is being proactive in seeking tangible support from 
friendly nations.  To this end, he proposed sending an 
MFA delegation, headed by him, to Washington to make its 
case. 
 
5.  (SBU)  The Ambassador suggested the delegation also 
include representation from the Royal Nepal Army (RNA) 
and the Ministry of Finance to help make a concerted 
pitch for the need for increased aid.  He proposed the 
delegation wait until after the visit to Nepal of the 
assessment team from PACOM in April.  With the 
assessment team's findings in hand, the delegation could 
arrive in Washington with a firmer idea of Nepal's needs 
and requirements.  Besides the Department of State, the 
delegation should also visit USAID and the Department of 
Defense, the Ambassador noted. 
 
-------------------------------- 
AND LET'S NOT FORGET GARMENTS 
-------------------------------- 
 
6.  (SBU)  The Foreign Secretary suggested that, in 
light of the increasingly serious situation Nepal faces, 
the USG might be more generous in its allocation of 
garment quotas.  The Ambassador noted that the Finance 
Minister had brought up the same subject with 
Undersecretary Larson during his Jan. 18-19 visit, and 
that a response from U/S Larson is on its way.  The 
Ambassador indicated that there seems to be little hope 
of increased quota--especially since Nepal has not used 
up all of its quota in a number of categories--but 
suggested that the proposed delegation to Washington 
also include someone from the Ministry of Commerce to 
raise the topic. 
 
----------------- 
GUNS AND GHEE 
-------------------- 
 
7.  (SBU)  The Ambassador raised an article that 
appeared in the local press citing a report from the 
Indian newspaper The Asian Age that speculated 
explosives used by the Maoists in the attacks in Achham 
may have been supplied by extremist groups, like the 
People's War Group and the Maoist Co-ordination Centre, 
based in India.  The article quoted a Calcutta police 
DIG stating he had seen evidence of arms being sent to 
Kathmandu and outlying districts.  The Foreign Secretary 
said the GON frequently hears rumors of such connections 
between the Maoists and groups in India, but had as yet 
"no concrete evidence." 
 
8.  (SBU)  The Foreign Secretary said talks aimed at 
renewing the bilateral trade treaty between India and 
Nepal had ended inconclusively for now, although both 
sides have "narrowed down" their areas of difference. 
Joint Secretary Acharya said that while the Indians had 
originally requested to review treaty provisions for 
five products they claimed had undergone a "surge" in 
exports to India (Ref A), they were now proposing more 
comprehensive, "across-the-board" changes in the treaty. 
 
-------- 
COMMENT 
-------- 
 
9.  (SBU)  Our interlocutors in the GON seem to 
appreciate that USG funding processes take time, and 
that we are serious about trying to help.  That said, 
the horrific attacks in Achham have obviously put 
pressure on all branches of the GON.  For the MFA, this 
pressure translates into urgent appeals for assistance 
to likely foreign donors. 
 
Malinowski