US embassy cable - 02KATHMANDU615

UNCLAS KATHMANDU 000615 
 
SIPDIS 
 
SENSITIVE 
 
LONDON FOR POL/RIEDEL 
 
REF: KATHMANDU 445 
 
E.O. 12958: N/A 
TAGS: PREL, PTER, EAID, ETRD, PHUM, PGOV, PINR, NP, U.S-Nepali Relations 
SUBJECT: TERROR, TRADE AND AID:  FORSEC VISIT TO DC 
 
 
1. (SBU) Summary:  Nepal's Foreign Secretary Madhu Raman 
Acharya will use his April 2-5 visit to Washington to urge 
quick delivery of additional security and development aid 
to Nepal, to discuss cooperation in the fight against 
terrorism, and to press for more favorable trade terms for 
Nepali products.  End Summary. 
 
Terror and Aid 
-------------- 
 
2. (SDU) Nepal's Foreign Secretary Madhu Raman Acharya 
told Ambassador March 27 that he considered his April 2-5 
Washington visit to be a follow-up to the SecState visit 
to Nepal in January.  The SecState visit boosted morale, 
but had also raised expectations, Acharya said.  He would 
use his meetings in Washington to underline the importance 
of delivering additional aid - including military 
assistance - to Nepal quicker, rather than later.  Acharya 
added that he hoped to discuss ways to cooperate in the 
fight against terrorism, and expressed an interest in 
discussing counter-terrorism issues while in the U.S.  "If 
[the situation in Nepal] gets out of control, it will 
cause problems for everybody," Acharya concluded. 
 
Trade 
----- 
 
3. (SBU) ForSec plans to raise trade issues during his 
visit, focussing on quotas for Nepal's garments and GSP 
consideration for its carpets.  He will press for making 
landlocked Least Developed Countries a special category 
for trade purposes, or at least for providing a temporary 
waiver for products from such countries.  [Note:  Acharya 
indicated that his Embassy in Washington was attempting to 
arrange an appointment with USTR as well as with 
Congressional leaders.]  On the economic side, Acharya 
noted that Parliament's budget session was coming up and 
the government would need help to avoid starving 
development activities by diverting more funds for 
security purposes. 
 
Domestic Politics and Human Rights 
---------------------------------- 
 
4. (SBU) Ambassador advised ForSec Acharya that his 
interlocutors in Washington will be interested in hearing 
from him about the domestic political situation and human 
rights in Nepal.  Acharya replied that political stability 
was a prerequisite for solving Nepal's problems, and the 
government's position was that any change in government 
must take place within a constitutional framework.  Taking 
note of yesterday's release of four journalists from 
military custody (Reftel), Acharya indicated that Nepal's 
intentions were good in regard to human rights.  When the 
Ambassador asked about the status of ICRC's headquarters 
agreement with Nepal - reportedly held up in the Foreign 
Ministry - Acharya responded that they were in the "final 
stages" of the process and expected a decision next week. 
 
Next Stop London 
---------------- 
 
5. (SBU) Acharya will stop in London for consultations 
with his British counterparts on his way back to Nepal. 
We understand that Acharya also will soon be traveling to 
Moscow. 
 
Comment 
------- 
 
6. (SBU) The Secretary's January visit to Nepal raised 
spirits here, and the Nepalese hope to use their Foreign 
Secretary's visit to raise Nepal's profile in Washington, 
 
SIPDIS 
and - more immediately - to raise much-needed development 
and security assistance.  As Acharya pointed out, without 
increased support at this time, Nepal's problems will 
become more serious and intractable. 
 
MALINOWSKI