NEPAL'S PRIME MINISTER SEEKS TO LOWER POLITICAL

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001247

SIPDIS

STATE FOR SA/INS
LONDON FOR POL - GURNEY
NSC FOR MILLARD
SECDEF FOR OSD/ISA

E.O. 12958: DECL: 07/01/2013
TAGS: PGOV PREL PTER EAID PREF NEPAL'>NP
SUBJECT: NEPAL'S PRIME MINISTER SEEKS TO LOWER POLITICAL
TEMPERATURE WITH PROTESTING POLITICAL PARTIES


Classified By: DCM ROBERT K. BOGGS. REASON: 1.5 (B,D).

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SUMMARY
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1. (C) In a June 29 meeting with the Ambassador, Prime
Minister Surya Bahadur Thapa said he wants to "lower the
political temperature" with the protesting political parties.
He hopes to bring representatives of the parties into the
Government of NEPAL (GON) negotiating team. His efforts so
far have met with some success in re-establishing good
relations, especially among the second-tier leadership.
Thapa reconfirmed that the GON has not changed its policy
toward Tibetan asylum seekers and appealed for international
pressure on Bhutan to keep to its commitments to repatriate
refugees in NEPAL. End summary.

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THAPA TALKING TO PARTIES
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2. (C) Accompanied by DCM Robert Boggs and AID Mission
Director Donald Clark, the Ambassador called on Prime
Minister Surya Bahadur Thapa on June 29. The Ambassador
congratulated Thapa on his June 11 appointment and emphasized
that the USG was pleased by his pledge to broaden the
government and hold early elections.


3. (C) The Prime Minister said his government faces two
primary challenges: advancing the peace process and reaching
an understanding with the political parties. He reported
that he had been holding extensive discussions with party
leaders, adding that he was meeting Communist Party of NEPAL
- United Marxist Leninist (UML) General Secretary Madhav
NEPAL that same day and NEPALi Congress Party President G.P.
Koirala the following day. In addition, he is also holding
discussions with second-tier party leaders, who had offered
some encouraging reactions.


4. (C) The political leaders realize that their street
agitation against the Government of NEPAL (GON) is having no
effect, Thapa stressed, and may thus be increasingly ready to
consider compromise. To encourage a more conducive
environment, Thapa said his own policy so far has been to
"lower the political temperature" by withholding criticism of
the parties in the state-owned press and by urging the police
to adopt a more restrained approach in dealing with the
street protests. Agitation is a democratic right as long as
the protests remain peaceful, he emphasized. Thapa said his
efforts to change the politically charged, embittered
atmosphere have had some effect at the working levels of the
parties, adding that some second-rung leaders had confided to
him that they saw no rationale to the protracted and largely
unpopular program of street protests. The Ambassador
responded that he appreciated the PM's attempts to broaden
his government, adding that the cooperation of the political
parties is essential to holding timely elections.

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US ASSISTANCE IMPORTANT
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5. (C) Thapa said that he deeply appreciates US development
cooperation and expressed gratitude for US security
assistance. In his view, there are three essential
components to a successful GON effort to counter the
insurgency. First, the security forces need more and better
training and equipment. Second, well-coordinated
international support is crucial. The third critical element
is securing support from the political parties. He
emphasized that he has kept the GON talk team purposely small
in order to leave room for the political parties to join.
The peace talks are only the first step, Thapa indicated.
Should a political settlement be reached, substantial
international support will also be needed to fund
rehabilitation and reintegration of former Maoists. The
Ambassador said that he was encouraged to learn of Thapa's
efforts to form a more representative negotiating team and
reiterated USG interest in seeing the peace process move
forward.
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TIBETAN POLICY REMAINS UNCHANGED
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6. (C) The Ambassador stressed USG concern at the May 31
deportations of 18 Tibetans from NEPAL. He urged the PM to
commit to restoring the GON's previous policy of allowing
UNHCR to process transiting Tibetans for onward travel to
India. He also raised the problem faced by long-time
resident Tibetan parents in NEPAL who are unable to secure
proper identification and travel documents for their
children. Many such parents who have been accepted for
immigration to the US remain unable to take their
undocumented children--most of whom may have been born in
NEPAL--with them. The PM reconfirmed that GON policy toward
Tibetan asylum seekers has not changed, and stated that in
the future transiting Tibetans will be handed over, as
before, to UNHCR. He committed to doing "everything I can"
to reassure the US on this point, noting that he plans to
send NEPAL's UN PermRep to Washington to meet with concerned
leaders in Congress. He added that he plans to reply soon to
a June 19 letter on the subject from nine US Conmgressmen.

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BHUTANESE REFUGEES
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7. (C) The Ambassador raised plans for repatriation of the
first tranche of Bhutanese refugees. At the last
ministerial, the Bhutanese had showed "evidence of a good
approach" toward repatriation, Thapa said. Constant
vigilance will be needed, however, including by members of
the international community, to ensure that Bhutan follows
through in implementing the agreement. Thapa acquiesced in
the Ambassador's observation on the importance of including
UNHCR in the process, but added that "Bhutan has a fear
complex" about the organization.

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COMMENT
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8. (C) Thapa's patient optimism that he will be able to
bring the political parties into his government is
reassuring--especially given the lack of success evident in
this endeavor thus far. Several observers within political
and diplomatic circles, however, have expresed confidence
that the politically savvy, battle-hardened Thapa will be
able to pull it off, given enough time. We agree that the
parties' sustained protests have failed to garner them much
public sympathy--and increasingly, even much attention in the
press. Whether or not the party leaders prove as savvy as
Thapa is reputed to be and abandon their futile "joint stir"
to join his Cabinet remains to be seen.
MALINOWSKI