NEPAL: A FOUR-PARTY GOVERMENT IS FORMED

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001277

SIPDIS

STATE FOR SA/INS
LONDON FOR POL-GURNEY
NSC FOR MILLARD

E.O. 12958: DECL: 07/08/2014
TAGS: PGOV KWMN NP
SUBJECT: NEPAL: A FOUR-PARTY GOVERMENT IS FORMED

REF: A. KATHMANDU 1012


B. KATHMANDU 1024

C. KATHMANDU 1080

D. KATHMANDU 1231

E. KATHMANDU 1098

Classified By: Classified by Ambassador James F. Moriarty; Reasons 1.5
(b) and (d).


1. (C) SUMMARY: On July 5, Prime Minister Sher Bahadur
Deuba expanded his cabinet to a bulky 31 Ministers, State
Ministers and Assistant Ministers. The cabinet expansion,
which ended a month long delay in the anticipated formation
of a four-party government, includes members from four
political parties as well as two Palace appointees. Despite
being 10 positions larger than Deuba's expressed desire of a
"manageable" 21, the formation of a four-party government
nevertheless represents a significant accomplishment in that
it brings most of the mainstream political parties from the
dismissed Parliament back into the governing process. The
only major mainstream party remaining outside the government,
Koirala's faction of the Nepali Congress, will likely remain
a distraction to the new government. END SUMMARY.


2. (U) A little over a month since being named Prime
Minister (Ref B),Prime Minister Sher Bahadur Deuba on July 5
expanded his 3-member cabinet to 31 (covering 35 positions).
The four-party government was formed after five days of hard
inter-party wrangling over seat-to-party ratios, following
the June 30 announcement (Ref D) by the four member-parties
of an agreed 43-point "common minimum program." The cabinet
includes individuals from Nepali Congress-Democratic (NC-D),
Communist Party of Nepal-United Marxist Leninist (UML),
Rastriya Prajatantra Party (RPP),and Nepal Sadbhavana
Party-Mandal Faction (NSP).


3. (U) Dueba,s own Nepali Congress Democratic (NC-D) holds
fifteen of the total 35 positions (including Prime Minister
and the three positions retained by Deuba). (NOTE: The
Ministry of Industry, Commerce and Supplies, initially held
along with Education by NC-D's Bimalendra Nidhi (Ref D),was
passed to the UML during the horse trading. END NOTE).
Several disputed critical positions, including Deputy Prime
Minister and Finance Minister, along with ten other cabinet
positions, were filled by the largest coalition partner, UML.
Five positions were given to the RPP, and one to NSP. The
remaining two of the 35 positions went to two "technocrats"
named by King Gyanendra. (Bios of the new ministers will be
sent septel.) The only major mainstream party remaining
outside the government is the Nepali Congress Party-Koirala
faction (NCP).


4. (U) As he has done in the past, Prime Minster Deuba
maintains personal control over the portfolios of Royal
Palace Affairs, Defense, and Foreign Affairs. Of the other
"key" ministries, Deputy Prime Minister and Minister for
Finance went to UML,s Bharat Mohan Adhikari; the Ministry of
Home went to NC-D,s Purna Bahadur Khadka; and the Ministry
of Culture, Tourism, and Civil Aviation, another highly
desired portfolio, was retained by NC-D. Unfortunately,
though perhaps not unexpectedly, the Prime Minister only
nominated three women, and only one, Asta Laxmi Shakya of the
UML party, to a full ministerial position. The complete list
of appointees, position and party affiliation is as follows:


1. Prime Minister, Royal Palace Affairs, Ministry of Defense
and Ministry of Foreign Affairs -- Sher Bahadur Deuba (NC-D)

2. Deputy Prime Minister, Minister of Finance -- Bharat
Mohan Adhikari (UML)

3. Minister of Information and Communications -- Dr. Mohammed
Mohsin (Palace)

4. Forest and Soil Conservation -- Badri Prasad Mandal (NSP)

5. Minister of Science and Technology -- Balaram Gharti Magar
(RPP)

6. Minister of Education & Sports -- Bimalendra Nidhi (NC -D)

7. Minister of Physical Planning and Works -- Prakash Man
Singh (NC )D)

8. Minister of Health -- Ashok Kumar Rai (UML)

9. Minister of Home -- Purna Bahadur Khadka (NC-D)

10. Minister of Culture, Tourism and Civil Aviation -- Deep
Kumar Upadhyay (NC-D)

11. Minister of Industry, Commerce and Supplies -- Ishwor
Pokharel (UML)

12. Minister of Local Development -- Yubaraj Gyanwali (UML)

13. Minister of Land Reform and Management -- Jog Mehar
Shrestha (RPP)

14. Minister of Agriculture and Cooperatives -- Hom Nath
Dahal (NC-D)

15. Minister of Labor and Transport Management -- Raghuji
Pant (UML)

16. Minister of Population and Environment -- Bachaspati
Devkota (UML)

17. Minister of Women, Children and Social Welfare -- Asta
Laxmi Shakya (UML)

18. Minister of Law, Justice and Parliamentary Affairs -- Tek
Bahadur Chokhyal (NC-D)

19. Minister of General Administration -- Krishna Lal Thakali
(Palace)

20. State Minister of Water Resources -- Thakur Prasad Sharma
(RPP)

21. State Minister of Foreign Affairs -- Dr. Prakash Sharan
Mahat (NC-D)

22. State Minister of Local Development -- Krishna Gopal
Shrestha (UML)

23. State Minister of Education and Sports -- Bal Krishna
Khand (NC-D)

24. State Minister of Labor and Transport Management -- Urba
Datta Panta (UML)

25. State Minister of Health -- Dr. Bamsidhar Mishra (UML)

26. State Minister of Science and Technology -- Pratibha Rana
(RPP)

27. State Minister of Land Reform and Management -- Ram
Chandra Raya (RPP)

28. Assistant Minister of Agriculture and Cooperatives -- Uma
Kanta Chaudhari (NC-D)

29. Assistant Minister of Population and Environment -- Lal
Bahadur Bishwakarma (UML)

30. Assistant Minister of Physical Planning and Works -- Hari
Shankar Pariyar (NC-D)

31. Assistant Minister of Culture, Tourism and Civil Aviation
-- Bhim Kumari Budhamagar (NC-D)


5. (C) COMMENT: The July 5 formation of a full cabinet,
despite its bulkiness, at least brings most of Nepal's
mainstream political forces back into the governing process.
Contrary to earlier expectations, however, no positions have
been held aside to entice Koirala,s faction into the
government. The absence of G.P. Koirala's Nepali Congress
may prove a serious shortcoming. Koirala, always ready to
play the spoiler when not in a position of primacy, will
likely continue to try to undermine his rival, PM Deuba, as
the new government faces the insurgency and the possible
holding of elections. END COMMENT.
MORIARTY