US embassy cable - 02KATHMANDU2044

C O N F I D E N T I A L SECTION 01 OF 03 KATHMANDU 002044 
 
SIPDIS 
 
STATE FOR SA/INS 
LONDON FOR POL - RIEDEL 
 
E.O. 12958: DECL: 10/24/2012 
TAGS: PREL, PGOV, PREF, PINR, NP, IN, LICC 
SUBJECT: NEPAL:  SA DAS CAMP MEETINGS WITH FOREIGN MINISTER 
AND FOREIGN SECRETARY 
 
REF: A. (A) KATHMANDU 1926 
     B. (B) KATHMANDU 1640 
 
Classified By: DCM ROBERT K. BOGGS. REASON:  1.5 (B,D). 
 
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SUMMARY 
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1.  (C)  In October 23 meetings with Deputy Assistant 
Secretary for South Asian Affairs Donald Camp and the 
 
SIPDIS 
Ambassador, newly appointed Foreign Minister Narendra Bikram 
Shah and Foreign Secretary Madhu Raman Acharya both stressed 
that the change in government will not affect Nepal's 
inclination to conclude an Article 98 agreement with the U.S. 
 DAS Camp emphasized the USG's continued support for Nepal. 
ForMin Shah assessed that the interim government can depend 
on no more than "a few months of good will" from a public 
anxious to see progress on resolving the insurgency and 
holding elections.  Biographic information on the new Foreign 
Minister follows in Paras 10-11 below.  End summary. 
 
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US SUPPORT:  "GREAT POLITICAL SIGNIFICANCE" 
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2.  (SBU)  Deputy Assistant Secretary for South Asian Affairs 
Donald Camp, accompanied by the Ambassador, DCM, and poloff 
met October 23 with Foreign Secretary Madhu Raman Acharya and 
Joint Secretary for South Asia Gyan Chandra Acharya.  DAS 
Camp opened the meeting by expressing the USG's continued 
support for the Government of Nepal (GON), reflected in 
increased development and security assistance.  The Foreign 
Secretary responded that the GON attaches "great political 
 
SIPDIS 
significance" to USG support. 
 
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ARTICLE 98 
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3.  (C)  The October 11 change in government does not change 
the GON's willingness to pursue an Article 98 agreement with 
the U.S. (Ref A).  The MFA is "expediting" review of the 
draft agreement with the Ministry of Law, the Foreign 
Secretary said.  GON and USG views on the International 
 
SIPDIS 
Criminal Court coincide, he noted.  (Note:  The Foreign 
Minister echoed this position in his subsequent meeting with 
DAS Camp and the Ambassador, but asked for a list of 
countries that have already concluded and/or are seriously 
considering an Article 98 agreement. End note.) 
 
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SUPPORT FROM INDIA, OTHERS 
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4. (C)  The Ambassador asked for an assessment of Indian 
cooperation in countering the Maoist insurgency.  The Foreign 
Secretary responded that although the previous government of 
 
SIPDIS 
Prime Minister Deuba had "a good understanding" with the 
Indian government, India's "actions don't always match the 
expectations here." While India had cooperated in banning the 
All Indian-Nepali Unity Society, a Maoist front (Ref B), the 
same organization has resurfaced in India under a different 
name, the Foreign Secretary asserted.  India has given some 
indication that it will increase military support; Acharya 
cited rifles as one example.  The Chinese are helping "on a 
token basis," while Russian offers are purely on a commercial 
basis.  The GON has tried to allay Indian suspicions 
surrounding US security assistance, the Foreign Secretary 
added, by stressing the transparency of USG aid and aims. 
The GON wants the support of India "in ways that are 
acceptable and comfortable for us," Joint Secretary Acharya 
interjected.  GON efforts at transparency are not the same as 
seeking approval from India for accepting foreign aid, he 
stressed. 
 
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BHUTANESE REFUGEES 
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5.  (SBU)  The Foreign Secretary confirmed that Foreign 
Minister Shah met briefly October 22 with the Bhutanese 
Foreign Minister during the latter's stopover at the 
Kathmandu airport.  Shah formally invited his Bhutanese 
counterpart for the next (and long-pending) round of 
bilateral talks aimed at resolving the Bhutanese refugee 
problem; no date was fixed.  Joint Secretary Acharya said the 
refugees are growing frustrated by the lack of progress; the 
GON is worried the Maoists could exploit that frustration. 
Disagreement persists between the two governments over what 
action is to be taken with various categories of refugees 
and, more specifically, over the definition of "forced" 
eviction.  The Joint Secretary said he suspects the 
Government of Bhutan is procrastinating because of dismay at 
the number of bonafide refugees, based on the results of the 
first (and so far only) joint verification exercise, it may 
be required to take back.  He believes that the Bhutanese 
government sometimes responds to international pressure.  The 
GON has thus asked some European governments for help in 
persuading the Bhutanese of the need for flexibility. 
 
6.  (SBU)  DAS Camp noted that representatives of the USG, 
including the Ambassador in New Delhi, has raised the issue 
with the Bhutanese on a number of occasions.  Our main 
leverage with the Bhutanese is moral suasion, he observed. 
Since the Bhutanese are increasing the number of countries 
with which they have Ambassadorial relations, the scope for 
increasing international pressure may increase as well.  The 
USG will continue to press for a timely resolution to the 
refugee problem, both on its own and in concert with other 
countries.  Joint Secretary Acharya suggested the USG might 
persuade the Bhutanese to initiate dialogue with refugee 
leaders in Nepal. 
 
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FOREIGN MINISTER: "ONLY A FEW MONTHS OF GOOD WILL" 
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7.  (SBU) Immediately following the meeting with the Foreign 
Secretary, DAS Camp, accompanied by the Ambassador and DCM, 
 
SIPDIS 
called on Foreign Minister Narendra Bikram Shah.  DAS Camp 
noted the unprecedented level of bilateral cooperation, which 
reflects USG support for Nepal.  DAS Camp and the Ambassador 
welcomed the new government's commitment to holding elections 
as soon as possible, as well as its continued interest in 
concluding an Article 98 agreement. Shah thanked the USG for 
its support.  He noted that he will make his first foreign 
trip as Minister October 28 when he accompanies Crown Prince 
Paras to the Global Mountain Summit in Bishkek. 
 
8.  (C)  Shah asked his visitors for the USG's assessment of 
the constitutionality of the King's October 11 appointment of 
the interim government.  The Ambassador acknowledged there is 
some dispute among the political parties on this question, 
but noted the current domestic political situation is 
"breaking new ground."  No previous King had ever used the 
authority apparently granted him under Clause 127 of the 
Constitution; the Clause itself has never been subjected to 
judicial review.  The important thing is that all Nepalis, 
regardless of political affiliation, present a united front 
against the Maoists.  The King is trying, so far with limited 
success, to make this happen. 
 
9.  (C)  Once former Prime Minister Sher Bahadur Deuba was 
expelled from the Nepali Congress and registered his own 
party with the Election Commission, he was no longer the 
leader of the largest party in Parliament and thus lost the 
moral right to be Prime Minister, Shah said.  Had King 
Gyanendra had agreed to Deuba's request for a year-long 
extension in office, such an act would have been "a massive 
violation" of the Constitution.  Shah believes the King acted 
to save the Constitution.  He had to dismiss Deuba before 
October 6--the deadline set by the Election Commission to 
file nominations for general elections--and before 
campaigning began in earnest.  The basic tasks of the 
caretaker government are to hold elections--within six months 
at the latest--and to restore security.  While acknowledging 
that so far there has been no popular outcry against the 
King's action, he believes the caretaker government can 
expect "only a few months of good will" before the public 
grows impatient for results. 
 
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BIOGRAPHIC INFORMATION ON NARENDRA BIKRAM SHAH 
--------------------------------------------- -- 
 
10.  (SBU) Narendra Bikram Shah, called out of retirement by 
his October 11 appointment as Foreign Minister by King 
Gyanendra, had a lengthy and distinguished career in Nepal's 
Foreign Service, serving as Ambassador in both the Panchayat 
era and after the restoration of democracy in 1990.  Shah 
held the post of Nepal's Permanent Representative to the UN 
from 1995-1999; Foreign Secretary from 1986 to 1992; and as 
Ambassador to the USSR from 1981 to 1985.  A former 
diplomatic colleague at the UN describes him as witty, 
intelligent, and a long-time friend to the U.S. 
11.  (U)  Shah was born January 1, 1940, in Dhadhing District 
in central Nepal.  He graduated with a Masters degree in 
history from Calcutta University in 1960.  He returned to 
India as Counselor at Nepal's Embassy in New Delhi from 
1972-1976. 
 
12.  (U) DAS Camp did not have the opportunity to clear this 
message before departing from Kathmandu. 
MALINOWSKI