US embassy cable - 03KATHMANDU1507

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001507 
 
SIPDIS 
 
DEPT FOR SA/INS, LONDON FOR POL/GURNEY, NSC FOR MILLARD 
 
E.O. 12958: DECL: 08/07/2013 
TAGS: PGOV, PTER, NP, Political Parties 
SUBJECT: NEPAL: NEPALI CONGRESS (DEUBA) PARTY ALSO WILL NOT 
JOIN CURRENT GOVERNMENT 
 
REF: (A) KATHMANDU 1419 (B) KATHMANDU 1486 
 
Classified By: Ambassador Michael E. Malinowski for Reasons 1.5 (b,d). 
 
1. (C) Summary.  In a meeting with former Prime Minister 
Deuba on August 7, Ambassador Malinowski reiterated U.S. 
concerns over recent Maoist activity in Nepal and stressed 
the need for the King, government and political parties to 
join forces against the Maoist threat.  Deuba replied that 
his party -- a splinter faction of the Nepali Congress party 
-- would not join Prime Minister Thapa's government, although 
he did not preclude informal participation in the peace 
talks.  Deuba admitted that his party could join the 
government if the previous parliament were reinstated or 
under an all-party government led by CPN-UML Chairman Madhav 
Nepal, Nepali Congress founding father Krishna Prasad 
Bhattarai or other unnamed leaders who had a direct 
connection with the last Parliament.  Deuba also expressed 
concern that European donor governments were supporting only 
leftist NGOs, many of which are sympathetic to the Maoist 
cause, he said.  End Summary. 
 
2. (C) On August 7, Ambassador Malinowski met with former 
Prime Minister Sher Bahadur Deuba, Chairman of the Nepali 
Congress splinter party, to express concern over recent 
Maoist activities and to encourage the democratic forces to 
unite against the Maoist threat.  The Ambassador appreciated 
Deuba's public statements pressuring the Maoists to return to 
a third round of talks.  However, he was concerned that the 
cease-fire would not last, especially without the 
participation of the political parties. 
 
3. (C) Deuba replied that under no conditions would his party 
join Prime Minister Thapa's government.  He suggested that 
the King clearly had not reconciled himself to acting only 
within his constitutionally-granted powers, arguing that 
Nepal's constitution does not allow the King to appoint the 
Prime Minister.  Deuba stood by the five agitating parties' 
18-point agenda agreed to on July 4 demanding, among other 
things, reinstatement of the Parliament and establishment of 
parliamentary authority over the national army.  If the King 
cannot agree with the parties' demands, how could he possibly 
agree with the Maoists' demands, asked Deuba. 
 
4. (C) Deuba agreed that ongoing Maoist activity in violation 
of the cease-fire code of conduct was of great concern.  He 
acknowledged that the Maoists have continued to collect huge 
sums of money, to import arms and ammunition and have managed 
to gain concessions from the GON while giving nothing in 
return.  However, Deuba did not see an immediate solution to 
the Maoist problem.  The Ambassador suggested that perhaps 
the parties could work informally with the government's 
negotiating team to provide input and help shape the contours 
of a settlement.  Deuba responded that the King must first 
compromise with the parties if he truly wants their 
participation in the government and in the peace talks. 
However, Deuba did not preclude outright his party's informal 
participation in the government's negotiations with the 
Maoists. 
 
5. (C) Deuba reiterated his party's position that it would 
not join Prime Minister Thapa's government.  The King had 
missed the opportunity to gain the support of the political 
parties, he said, when the King rejected their consensus 
candidate for Prime Minister, UML leader Madhav Nepal.  Deuba 
suggested, however, that his party could participate in the 
government if either the previous parliament were reinstated 
(with himself as Prime Minister) or an all-party government 
was chosen with Madhav Nepal as Prime Minister.  Deuba also 
averred that he could accept K.P. Bhattarai, an elder 
statesman and founding father of the Nepali Congress, as 
Prime Minister. (Note.  Recent rumors suggest that Bhattarai 
could become candidate for Prime Minister if Thapa is asked 
to resign, with the support of many political leaders, 
including G.P. Koirala and Sher Bahadur Deuba.  End Note.) 
 
6. (C) Deuba noted the Maoists' increased anti-American 
rhetoric in recent days and suggested that the Maoists had 
not targeted European countries because of the European's 
willingness to deal with the insurgents.  He complained that 
most European donor governments worked only with left-leaning 
NGOs that were often sympathetic to the Maoist cause.  He 
also complained that many of the expatriate staff of some of 
the European donors were personally from the far left of the 
European political spectrum and that many still viewed the 
Maoists in romantic and unrealistic terms.  Deuba expressed 
concern that this indirect assistance would send the wrong 
message to the Maoists and strengthen their position 
vis-a-vis the government. 
 
MALINOWSKI