US embassy cable - 05NEWDELHI1553

C O N F I D E N T I A L NEW DELHI 001553 
 
SIPDIS 
 
E.O. 12958: DECL: 02/28/2015 
TAGS: PREL, MASS, IN, PK, NP, India-Nepal 
SUBJECT: GOI REQUESTS USG INTERVENTION ON REPORTED PAKISTAN 
ARMS OFFER TO NEPAL 
 
REF: STATE 30213 
 
Classified By: Political Counselor Geoffrey Pyatt for Reasons 1.4 (B, D 
) 
 
1.  (U) This is an action request.  See paragraph 3. 
 
2.  (C) Following up the Foreign Secretary's earlier approach 
to the Ambassador on the subject of third country arms 
transfers to Nepal (reftel), Acting MEA Joint Secretary 
(Americas) Renu Pall called in PolCouns and PolOff on March 1 
to inform us of a GOI report that the Government of Pakistan 
has offered a USD 5 million "soft loan" on generous terms to 
the Government of Nepal to provide modern stores, equipment 
and training to the RNA.  Pall urgently requested the USG to 
intervene with the GOP, adding, "we would not want to see 
this go through."  The offer, stated Pall, calls on the RGON 
to submit a final proposal for requested supplies to the 
Embassy of Pakistan in Kathmandu.  Pall noted that Pakistan 
had provided a loan on similar terms in 1989, offering 20 
year repayment, low interest, and a five year grace period. 
Responding to questions, Pall stated that the GOI had not 
directly approached the GOP on this matter, and did not have 
any details of what military provisions might be on offer. 
Pall was unaware whether the GOI had yet approached the 
Government of Israel regarding similar concerns (reftel). 
 
3.  (C) Action request. In the context of Indian concerns 
expressed to Ambassador Moriarty that any new offers of 
military assistance could remove pressure on the GON to 
return to the democratic path, Post requests that Department 
direct AmEmbassy Islamabad to approach GOP requesting that 
Pakistan not take advantage of the suspension of Indian 
military assistance to provide arms or a new credit line to 
the RNA. 
MULFORD