US embassy cable - 05KATHMANDU2383

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 002383 
 
SIPDIS 
 
DEPT FOR SA/INS 
NSC FOR RICHELSOPH 
 
E.O. 12958: DECL: 10/31/2015 
TAGS: PREL, PGOV, MASS, CH, NP, Political Parties 
SUBJECT: CHINESE MILITARY AID TAKES PRESSURE OFF KING TO 
RECONCILE 
 
REF: A. KATHMANDU 2327 
     B. KATHMANDU 1912 
 
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d). 
 
Summary 
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1.  (C) Chief of Army Staff (COAS) General Thapa announced on 
October 24 that China had committed about 1 million USD for 
military assistance to Nepal this year, noting that more 
assistance would follow next year.  The Ambassador publicly 
(septel) and privately (ref A) cautioned that, while Nepal 
had the right as a sovereign country to purchase weapons for 
self-protection, military aid from China could take pressure 
off the King to reconcile with the political parties, a 
precondition for democratic countries (U.S., U.K, and India) 
to resume supplying lethal weapons to Nepal.  End summary. 
 
COAS Thapa's visit to China Yields Military Assistance to 
Nepal 
--------------------------------------------- --------- 
 
2.  (U) COAS Thapa returned from a week long visit to China 
on October 24 and told reporters that China had committed 8 
million yuan (989,000 USD) for military assistance to Nepal. 
He said, "We have decided to buy our military equipment from 
China."  He noted that China had "agreed to provide similar 
assistance next year" as well.  Thapa's visit to China at the 
invitation of the Chinese People's Army followed Foreign 
Minister Pandey's visit in August in which he secured USD 12 
million in untied assistance (ref B). 
 
Ambassador's Remarks on China Assistance Front Paged 
--------------------------------------------- ------- 
 
3. (U) Answering a question regarding Chinese military 
assistance at a press conference organized by the Federation 
of Nepali Journalists in Butwal in the Western terai on 
October 26, the Ambassador said that while a sovereign 
country had the right to buy weapons to protect itself, 
Chinese military assistance to Nepal was worrying if it took 
pressure off of the King to reach out to political parties. 
The Himalayan Times put the Ambassador's comments on the 
front page in an article titled "Moriarty objects to Chinese 
military aid."  The article noted that the Ambassador had 
reiterated America's stand that "it would halt all military 
assistance to Nepal until the reinstatement of democracy." 
It also quoted the Ambassador as saying the U.S. would 
provide as much help as required for the reinstatement of 
democracy. 
 
VC Giri Publicly Lashes Out Against Ambassador Over China 
Comments 
--------------------------------------------- ------------ 
 
4. (U) On October 30 at a "Peace Rally" in the terai town of 
Gaur (in UML Leader M.K. Nepal's home district), Vice 
Chairman Giri lashed out at the Ambassador.  Giri asserted 
that the Ambassador was "irritated" at the arms and financial 
assistance Nepal would be getting from China and therefore 
was criticizing the government.  He added that "statements 
being given by the American Ambassador against us won't 
affect the present government."  He noted that Nepal could 
solve its own problems.  He continued, "I can confidently say 
that the development of Nepal is possible as imagined by the 
King through his proclamation of February 1."  He argued that 
the government could not "digest the intervention of foreign 
countries in Nepal's matters" and charged the international 
community with backing anti-government civil society 
activists. 
 
Embassy Clarifies Ambassador's Remarks 
-------------------------------------- 
 
5. (C) On October 31, the DCM clarified to the Acting Foreign 
Secretary Shrestha the Ambassador's public comments regarding 
 
SIPDIS 
Nepali arms purchases from China.  She explained that the 
Ambassador had said that while Nepal had the right to buy 
weapons from any source for its own defense, the U.S. was 
concerned about recent reports about large Chinese arms sales 
to Nepal.  The Ambassador had stressed that the U.S. believed 
it was critical for Nepal's legitimate forces to unite, and 
for the King to take the first step toward reconciliation 
with the political parties for that purpose.  The Ambassador 
worried that HMGN might believe that large arms purchase 
would eliminate the need for reconciliation.  The DCM noted 
that the Ambassador's comments as described above represented 
the exact views of the U.S. government. 
 
Japanese Concerned 
------------------ 
 
6.  (C) In a meeting with Japanese Ambassador Tsutomu Hiraoka 
on October 25, the Ambassador commented that Thapa's visit to 
China and Pandey's visit to Russia were His Majesty's 
Government of Nepal's attempt to show that it had 
alternatives to traditional close ties with democratic 
countries.  The Ambassador explained that he had cautioned 
Vice Chairman Giri (ref A) about the international reaction 
to a Nepal that allied itself with undemocratic countries. 
Hiraoka asked if the U.S. would now reconsider military 
assistance to Nepal.  The Ambassador replied that Chinese 
military assistance took the pressure off of the King to 
reconcile with the parties, a precondition for the U.S. to 
consider resuming military aid.  The Ambassador noted that 
Nepalis believed that, though not as good as American M-16s, 
the Chinese-made AK-47s were better than Indian INSAS rifles. 
 Therefore, if the army had enough Chinese weapons it would 
also be less likely to pressure the King to reach out to the 
parties.  He acknowledged that new suppliers were a 
predictable outcome of the suspension of assistance by 
traditional suppliers.  He added that India, as Nepal's 
largest traditional arms supplier, and the country with the 
most influence in Nepal should also react strongly to China's 
weapon shipments.  Hiraoka remarked that it was very 
difficult to try to convince the King to do the right thing, 
though he said Tokyo was asking for ideas.  The Ambassador 
suggested that Japan continue to express its concerns to HMGN 
and continue to push the King to reach out to the parties. 
 
Comment 
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7.  (C) The Ambassador's public comments cautioning HMGN from 
isolating itself and becoming an international pariah struck 
a sensitive chord.  HMGN's initial reaction has been to lash 
out against the Ambassador, however, we hope that we have 
sparked a debate within the government about the dangers of 
self-isolation. 
MORIARTY