US embassy cable - 05NEWDELHI9164

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 009164 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/02/2015 
TAGS: PGREL, PBTS, ECIN, ETRD, PREF, PTER, PGOV, IN, BT, NP 
SUBJECT: FS SARAN CALLS FOR ENHANCED BHUTAN TIES 
 
REF: NEW DELHI 8893 
 
Classified By: PolCouns Geoff Pyatt for Reasons 1.4 (B, D) 
 
1.  (C) Summary: India and Bhutan have a vital stake in each 
other's well-being and greater economic, security and 
cultural ties will benefit both countries, Foreign Secretary 
Shyam Saran argued during an unusual December 3 seminar 
focused on Bhutan.  Underlining the growing GOI concern about 
contagion from Maoist groups in Nepal, Thimphu and New Delhi 
will continue jointly to develop and upgrade their border and 
security infrastructure in order to combat the threat of 
Maoists and Indian left-wing extremists.  He also promised 
GOI support for the King's proposed transition from an 
absolute to constitutional monarchy.  Saran argued for 
greater integration of the economies of Bhutan and India in 
order to meet the needs of the next generation, and suggested 
the border should be a gateway, not a boundary.  At the same 
seminar, Professor J.D. Muni of Jawaharlal Nehru University 
argued for greater GOI involvement in solving the 
Bhutan-Nepal refugee problem and solidarity with Bhutan 
regarding the Sino-Bhutanese border dispute.  Muni also 
discussed the 1949 treaty between India and Bhutan, which is 
still in force today and states Bhutan will be "guided by the 
advice of the Government of India in regards to its external 
relations," and noted that it might be time to change the 
wording to reflect the reality that Bhutan conducts its own 
foreign policy.  This event was evidence of India's 
increasing comfort with a more visible and transparent 
relationship with its small neighbor.  End Summary. 
 
More Ties, Better Neighbors 
--------------------------- 
 
2.  (U) Bhutan and India have a vital stake in each other's 
well-being and prosperity, and their destinies, regardless of 
their size, are intertwined, Saran commented during a New 
Delhi seminar hosted by hosted by the Bhutan India Friendship 
Associations (BIFA), a group comprising of academics, 
artisans, and government officials based in Thimphu.  He 
remarked that stability, peace and economic advancement are 
the most durable guarantors of peaceful coexistence, and that 
India has been privileged to assist Bhutan in its task of 
nation-building. 
 
3.  (U) Highlighting the military operations conducted by the 
Royal Bhutanese Army in December 2003 as a milestone in "our 
joint response to terrorist activities," Saran called for 
continued cooperation along the border.  He noted that India 
looks forward jointly to upgrading border infrastructure and 
management, including better roads, communication links and 
information sharing.  Noting the common threat of Nepalese 
Maoist groups and their linkages with Indian left wing 
extremists and insurgent groups, Saran commented that 
cooperation along the border is a prerequisite for securing 
close and friendly relations between countries sharing a long 
border. 
 
Support for the Constitution 
---------------------------- 
 
4.  (U) Saran stated that the GOI is following the King of 
Bhutan's proposed transition to a constitutional monarchy 
"with keen interest" and would assist during the process. 
 
NEW DELHI 00009164  002 OF 003 
 
 
Acknowledging that the process could take two to three years, 
he indicated that the GOI's objective is "not just to 
consolidate and preserve the exemplary relations we have, but 
to take them to an even higher level of mutually-beneficial 
cooperation and understanding." 
 
Economic Integration Vital 
-------------------------- 
 
5.  (U) Saran told the audience that economic integration and 
cooperation was necessary in the increasingly inter-dependent 
global economy.  He called for a strategy of economic 
development that complements the resources endowed to each 
country.  Noting Bhutan's success in developing its 
hydropower resources while preserving the environment, Saran 
stated the GOI supports greater cooperation in this sector. 
He argued that the next generation in India and Bhutan 
expects a better life, which the two governments will have to 
deliver, and greater integration will help achieve this goal. 
 He concluded that the border should not be viewed as a 
boundary, but a gateway to facilitate economic growth. 
 
India Needs to Play Larger Role in Refugee Problem 
--------------------------------------------- ----- 
 
6.  (C) At the same seminar at which Saran spoke, JNU 
Professor Muni stated that India needs to play a larger role 
in finding a solution to the refugee problem between Bhutan 
and Nepal.  (Comment: Joint Secretary Rae's November 22 
comments (reftel) suggest that the GOI has pressed Thimphu to 
resolve the conflict, but that the RGOB intends to do so on 
its own time frame.  End Comment.)  Muni argued that India, 
due to its involvement in the transit of refugees from Bhutan 
to Nepal in the early 1990s, needs to apply more pressure on 
the Bhutanese to resolve the issue.  He warned that the 
intrusion by Maoists into the refugee camps is of concern to 
both New Delhi and Thimphu and will directly affect India in 
the future if a solution is not found to the refugee problem. 
 
 
Sino-Bhutan Relations 
--------------------- 
 
7.  (U) Muni indicated that the GOI should provide more 
assistance to the Bhutanese regarding the Sino-Bhutan border, 
asserting that "the GOI needs to make sure that Bhutan does 
not get pushed around by the Chinese." 
 
Comment: Less Influence of Big Brother India 
-------------------------------------------- 
 
8.  (C) Muni noted that it might be time to change the 
wording of the 1949 GOI-RGOB treaty, which states that Bhutan 
will be guided by the GOI in regards to its foreign 
relations.  He argued that the realities on the ground, that 
Bhutan now makes most of its own decisions, should be 
reflected in a change to the treaty.  The Mission has also 
seen evidence that Bhutan is exerting more independence in 
its foreign policy decisions, first, in breaking with India 
two years in a row on the UNHRC vote on Cuba, and second, in 
resisting GOI pressure to settle the refugee issue.  That 
being said, Saran's unusual public speech on India's 
relationship with Thimphu reflects New Delhi's increasing 
willingness to address its policy towards Bhutan in a 
 
NEW DELHI 00009164  003 OF 003 
 
 
transparent and forthright manner, rather than treating it as 
distinct from other foreign policy relationships.  End 
Comment. 
 
9.  (U) Visit New Delhi's Classified Website: 
(http://www.state.sgov.gov/p/sa/newdelhi/) 
MULFORD