US embassy cable - 02KATHMANDU575

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000575 
 
SIPDIS 
 
LONDON FOR POL/RIEDEL 
 
E.O. 12958: DECL: 03/19/2012 
TAGS: PREL, PTER, ETRD, PREF, PINR, NP, India Relations 
SUBJECT: PRIME MINISTER DEPARTS FOR INDIA, FIRST TRIP 
ABROAD THIS TERM 
 
REF: KATHMANDU 467 
 
Classified By: AMBASSADOR MICHAEL E. MALINOWSKI, REASONS 1.5(B),(D) 
 
1. (C) Summary.  Securing Indian assistance in Nepal's battle 
against the Maoist insurgency will be Nepali Prime Minister 
Deuba's primary goal in his March 20-26 official visit to 
India.  He will ask his counterparts both for materiel 
assistance and for help in apprehending Nepali Maoists in 
India.  Indian diplomatic sources here hold up the visit as 
evidence of their country's support and concern for their 
northern neighbor.  Nepal will also be looking to discuss 
trade issues, border security and Bhutanese refugees.  Deuba 
will visit Calcutta for meetings with state leaders there 
before returning home.  End Summary. 
 
Insurgency Dominates PM's First Trip Abroad 
------------------------------------------- 
 
2. (SBU) Prime Minister Sher Bahadur Deuba left Kathmandu 
March 20 on a week-long official visit to India, his first 
trip abroad since taking office in July, 2001.  Before 
leaving, the Prime Minister indicated that Nepal's Maoist 
insurgency will dominate bilateral discussions.  Deuba plans 
to ask the Indians for materiel assistance and help in the 
form of arresting Maoist leaders - some of whom either live 
in India or travel frequently across the open border - and in 
cracking down on Maoist operations in India, including 
financial transactions through Indian banks. 
 
Indians Play Up Visit 
--------------------- 
 
3. (C) In a call with Ambassador, the Indian Ambassador 
related that PM Vajpayee had made time to receive Deuba 
despite a schedule made crowded by domestic problems, and 
that receiving Deuba with full state honors should be 
interpreted as a clear signal of India's support for Nepal 
and its concern about the current situation.  Indian Embassy 
Poloff reiterated this point, and added that Vajpayee had now 
cancelled several trips abroad in order to deal with crises 
at home.  (Note:  The Indian Ambassador added that he had 
weighed in with Nepal's former Prime Minister G.P. Koirala, 
asking the elder statesman - who has had good relations with 
India throughout his career - to lay off his political 
maneuvering to unseat Deuba, on the grounds that stability in 
Nepal is essential at this time.  Note.) 
 
Other Issues: Trade, Border Issues, Refugees 
-------------------------------------------- 
 
4. (SBU) Trade issues are also on Deuba's agenda.  Deuba 
plans to bring up revisions to the Nepal-India trade treaty - 
including quotas on four of Nepal's primary exports to India 
(Reftel) - and a still-inoperable dry port container facility 
on the border.  Other long-standing issues, including a 
border dispute at Kalapani and an Indian embankment built 
near Lumbini, the Buddha's birthplace, will be in Deuba's 
talking points.  Deuba stated that he would ask New Delhi to 
play a positive role in resolving the Bhutanese refugee issue. 
 
Why Calcutta? 
------------- 
 
5. (C) Dueba's Indian hosts plan to take him on a side trip 
to Calcutta.  The Indian Embassy here told us that they like 
to take their guests out of Delhi, and Calcutta was chosen 
because of Nepal's shared border with West Bengal.  State 
leaders would call on Deuba during his stay in Calcutta, the 
Indians told us.  Some Nepalese Maoists are believed to 
operate out of West Bengal, and in the past have met Nepali 
political leaders in the Indian city of Siliguri. 
Speculation is rife in Kathmandu about the possibility of a 
meeting in West Bengal between Deuba and insurgent leaders. 
 
Comment 
------- 
 
6. (C) India was the first country to declare the Maoists 
"terrorists" after the insurgents broke the ceasefire in late 
November, 2001.  Since then they have done little, and 
reportedly Maoist leaders and cadres continue to shuttle back 
and forth across the open border.  India appears to be using 
Deuba's visit to show their care and concern, but not 
necessarily in more than a symbolic way.  In Calcutta the 
intent may be to ask for cooperation directly from the local 
(Marxist) government. 
MALINOWSKI