US embassy cable - 02KATHMANDU2502

S E C R E T SECTION 01 OF 02 KATHMANDU 002502 
 
SIPDIS 
 
NOFORN 
 
STATE FOR SA/INS 
LONDON FOR POL/REIDEL 
 
E.O. 12958: DECL: 12/31/2012 
TAGS: IN, NP, PGOV, PTER, RU 
SUBJECT: NEPAL: MILITARY AID RUNS AGROUND ON THE SHOALS OF 
BUREAUCRACY 
 
 
Classified By: Ambassador Michael Malinowski for reasons b,d. 
 
1. (C) Summary:  Delivery of M16A2 rifles for the Royal 
Nepalese Army (RNA), already two months later than scheduled, 
was delayed again on December 24 when the Government of India 
(GOI) denied overflight permission for the transport plane. 
The delay makes the US arms shipment the third in a string of 
military assistance packages that have fallen victim to 
bureaucratic obstacles on their way to Nepal.  Continued 
delay in provision of promised military aid is prompting the 
Government of Nepal (GON) to look to India and other sources 
for an interim solution to its critical equipment needs.  End 
summary. 
 
BELGIAN AND US SHIPMENTS DELAYED 
-------------------------------- 
 
2. (C)  On December 26, New Delhi DAO was contacted by a 
representative from Air Transport International (ATI), a 
freight company charged with delivery of 3,000 M16A2 rifles 
to Kathmandu, requesting urgent assistance in obtaining 
overflight approval for the transport plane.  According to 
the ATI rep, their commercial agent failed to identify the 
plane's cargo as weaponry in the initial permit application, 
resulting in refusal of the request.  After direct 
intervention with the GOI by Embassy New Delhi, the shipment 
of arms, intended to replace the RNA's outdated Indian 
Self-Loading Rifles, has been rescheduled for January 6, 
assuming that overflight clearance will be granted. 
 
3. (S/NF) In addition, Post was informed on December 31 that 
ammunition intended for the "Balance Nail" training team has 
also been delayed by red tape.  The ammunition was scheduled 
to arrive on a Thai Airways flight from Bangkok on December 
31.  However, the shipment didn't arrive in Thailand in time 
to make the flight to Kathmandu, and the agreement between 
Thai Airways and the GOI concerning hazmat overflight 
clearance expires at midnight.  The ammunition will have to 
be rerouted on the less-reliable Royal Nepal Airlines, and 
should arrive on January 3, barring any further complications. 
 
4. (U) The US shipments are only the latest in a string of 
military aid packages that have been held up by bureaucratic 
obstruction on their way to Nepal.  Earlier in December, a 
plane carrying 500 Belgian Minimi machine guns was diverted 
to Kazakhstan when the Eastern European shipping company 
failed to meet Indian overflight requirements.  Delivery of 
the machine guns has been postponed since December 14, while 
Nepali and Belgian diplomats in New Delhi sort out the proper 
application procedure for overflight clearances for arms. 
 
UK HELICOPTERS STUCK IN BELARUS 
------------------------------- 
 
5. (S/NF) Two critically needed MI-17 helicopters promised by 
the UK also have been delayed.  Our British colleagues, 
citing their Belgian purchasing agent, expected the 
helicopters to be delivered early in December. Recently they 
learned that the Belarussian airframes have not yet been 
outfitted with engines and may not be outfitted with them any 
time in the near future.  British diplomatic sources did not 
elaborate on  the complications preventing the installation 
of engines, but implied that Russian organized crime and 
possibly government corruption were the root causes of the 
delay.  The resulting cost increases, they say, are 
threatening to quash the entire deal.  The RNA currently has 
only one mission-capable MI-17, its only significant 
troop-carrying helicopter. 
 
RNA: "US HAS NOT DELIVERED" 
--------------------------- 
 
6. (S/NF) The RNA is becoming increasingly frustrated with 
the inability of the US and other overseas supporters to 
provide arms as quickly as needed to counter increasing 
Maoist violence.  The USG initially planned to deliver 5,000 
M16A2 rifles in October 2002, and the RNA has already trained 
the units scheduled to receive the weapons.  Although the RNA 
spokesman has publicly stated that once GOI overflight 
applications are processed the army does not expect any 
further problems, confidential comments have been less 
sanguine. "The US has promised a lot but has not delivered," 
one highly placed RNA officer told the Embassy SAO.  "Other 
countries such as Israel, the UK, China and India have 
stepped up and performed, but the RNA is still waiting for 
the US to produce." 
 
7. (C) RNA officials have asserted that they would like to 
equip their entire force with M16A2 rifles.  In order to meet 
their existing critical need for weaponry, however, the RNA 
has purchased several thousand inferior Indian Small Arms 
Systems (INSAS) rifles and plans to distribute them to three 
full brigades while waiting for US M16s.  Embassy DATT plans 
to meet with the Indian DATT on January 3 to acquire further 
details. 
 
COMMENT 
------- 
 
8. (C) Post does not believe that the current refusal of 
overflight privileges by the GOI is part of a conscious 
effort to scuttle foreign military assistance to Nepal.  The 
delay appears instead simply to be evidence that Indian 
requirements regarding the overflight of arms are too 
complicated for some transport companies to navigate 
successfully on the first try.  However, while indications 
are that the present delay will be temporary and that the red 
tape surrounding the US and Belgian arms is slowly 
unraveling, Post is desirous to ensure that future shipments 
do not meet a similar fate.  The convergence of bureaucratic 
obstacles and other postponements that have  delayed the 
delivery of military aid undermines the credibility of the 
USG and other military suppliers, and threatens the effective 
coordination of international military assistance.  And 
whatever the cause, failure to provide critically needed arms 
and equipment in a timely fashion to Nepal's beleaguered army 
compromises the ability of the GON to combat the Maoist 
insurgency and force the rebels to the bargaining table. 
MALINOWSKI