BHUTANESE REFUGEES: AMBASSADOR VISITS CAMP, TALKS

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000619

SIPDIS

GENEVA FOR RMA
ROME FOR USMISSION
LONDON FOR POL/RIEDEL

E.O. 12958: DECL: 03/28/2012
TAGS: PREF PREL EAID AORC PHUM NP
SUBJECT: BHUTANESE REFUGEES: AMBASSADOR VISITS CAMP, TALKS
NEAR DEADLOCK

REF: 01 KATHMANDU 2131

Classified By: Ambassador Michael E. Malinowski, Reasons 1.5 (b),(d).


1. (C) Ambassador visited three Bhutanese refugee camps in
eastern Nepal March 25. Overall, the refugees expressed
satisfaction with conditions in the camps, but an
undercurrent of frustration was in evidence. The Refugee
Affected Area Program for the region has concluded, and aid
workers warned that tensions with locals could rise in the
absence of additional similar programs. Talks between Nepal
and Bhutan have stalled, and Post advocates engaging Bhutan
to urge a timely resolution of the refugee issue. End
Summary.

Camp Visit
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2. (U) Nearly one year to the day after the Nepal-Bhutan
joint verification process got underway, Ambassador visited
Bhutanese refugee camps in Morang and Jhapa districts in
eastern Nepal on March 25. After inspecting the camps at
Sanischare in Morang and Beldangi I and II in Jhapa, he met
with local authorities and with staff from UNHCR, WFP and
their implementing partners.

Conditions Remain Good, But Frustration Evident
-------------- --


3. (SBU) Overall, conditions - including hygienic,
nutritional and educational - in the camps remain quite good,
and refugees expressed satisfaction with the camps'
administration. However, John Andrew, the new head of
UNHCR's Jhapa field office, commented that upon his arrival
the first thing he noticed was how poorly clothed the
youngest children were. New children's clothing - including
material for school uniforms - had not been provided for
several years. Some refugees voiced concern about the lack
of opportunities for post-secondary education, funding for
which has also been scarce.


4. (SBU) An undercurrent of frustration was evident in talks
with the refugees, and some aid workers feared that this
frustration could get out of hand. Refugee leaders have
expressed concern about rumors in the camps that the refugees
will have to reapply for citizenship two years after
repatriation to Bhutan. The leaders were also worried that
reports that Bhutan has encouraged settlers to occupy the
refugees' former lands would rile camp residents.

Refugee Affected Area Program Ended
--------------


5. (SBU) Relations between refugees and locals remain "quite
good," according to local officials. They acknowledged a
danger that the refugees - who are not supposed to work on
the local economy and thus have a lot of time on their hands
- were at risk of becoming involved with the Maoists. Local
officials, UN staff and NGO representatives all expressed
concern that the UNHCR's Refugee Affected Area Program (RAAP)
had concluded. RAAPs typically run for four years, and the
RAAP associated with the Bhutanese refugees was extended for
a second four-year period. Funding has now run out, and the
program has been discontinued. To date, relations between
the refugees and locals have been good, but this could be
hard to maintain in the absence of a continued program to
build good will, one UNHCR staffer judged. Considering the
extreme level of poverty in the areas surrounding the refugee
camps, additional inputs would be needed. In future, donors
should avoid giving the impression that such relief could
last a long time, the UNHCR Representative in Kathmandu
admitted.

Nepal-Bhutan Talks: Deadlock Looms
--------------


6. (C) MFA Under Secretary Prahalad Prasai told us March 21
that talks with Bhutan are in "kind of a deadlock." When
pressed, however, Prasai back-pedaled, insisting that a
deadlock had not yet been reached. Bhutan was using
"procrastination and delay tactics," and had not yet given a
reply to Nepal's requet to set a date for the next round of
Ministerial talks. Verification teams have gone back to
their respective capitals until further notice. (Note: In
Geneva, the Director of UNHCR's Asia Bureau recently met with
Bhutan's Ambassador to discuss the status of the talks, the
UNHCR Representative here told us.)

Comment
--------------


7. (C) The refugee camps are fertile ground for unrest and
violence related either to the slowness of the joint
verification process or to the Maoists insurgency. In its
talks with Nepal, Bhutan has not shown a sense of urgency
proportional to this risk. As we have urged before (Reftel),
we continue to believe that we should engage Bhutan on this
issue sooner rather than later.
MALINOWSKI