NEPAL: STATE FOREIGN AFFAIRS MINISTER ON BHUTANESE

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001444

SIPDIS

DEPT FOR SA/INS

E.O. 12958: DECL: 07/26/2014
TAGS: PREL PGOV PINR BT NP
SUBJECT: NEPAL: STATE FOREIGN AFFAIRS MINISTER ON BHUTANESE

REFUGEES, MAOISTS, UNGA

REF: NEW DELHI 4544

Classified By: Ambassador James F. Moriarty; Reasons 1.4 (b, d).


1. (C) SUMMARY: Nepal's State Foreign Affairs Minister Mahat
told the Ambassador on July 26 that negotiations with the
Maoists before the Maoists were serious would be fruitless.
Mahat indicated that a critical RGOB had accepted the results
of Nepal's criminal investigation of the 22 December
Bhutanese refugee incident, but had remained inflexible on
terms of repatriation. In the meeting, Mahat indicated that
Nepal will integrate some refugees. At the same time, Mahat
seemed to indicate that Nepal's tone with Bhutan in the
bilateral discussion might become more firm. Mahat is likely
to lead Nepal's delegation to UNGA. END SUMMARY.

============================================= ===
MAOISTS DISMISSED REAL PEACE OVERTURES BEFORE...
============================================= ===


2. (C) Nepal's Minister of State for Foreign Affairs Prakash
Sharan Mahat told the Ambassador on July 26 that premature
negotiations with the Maoists would be a waste of time. An
animated Mahat, who has worked on the Maoist problem in
several capacities, stated that the Maoists must feel
pressure to make real concessions. Previously, the
government had been willing to offer just about anything for
peace, even hugging their negotiators at the start of talks.
Meanwhile, the Maoists used the desperation for peace to make
tactical and strategic gains, abandoning agreements as soon
as it suited their goals. Now, the Maoists controlled much
of the country by fear, and that fear was driving people to
pursue peace at any cost. (NOTE: Both of Mahat's homes, one
in Bansbari, Kathmandu and one in Nuwakot District were
destroyed by the Maoists. END NOTE.)

=======================
GOB INFLEXIBLE ON TERMS
=======================


3. (C) Turning to the Bhutan-Nepal bilateral at SAARC, Mahat
indicated that the Royal Government of Bhutan (RGOB) had
finally responded to Nepal's report of the December 22
incident in writing. Despite all of the criticisms leveled
at the investigation of the event in the letter, the RGOB
would ultimately accept the results of the investigation.
However, the RGOB seemed unwilling to accept the paragraph in
the report that urged it to be flexible in its interpretation
and application of Bhutanese law. Still, Mahat indicated, at
least a little progress had been made.


4. (C) The GON had been flexible every step of the way, Mahat
emphasized, even to the point of agreeing to take those
refugees that are unwilling to return to Bhutan. (NOTE:
This is the first indication of Nepal's willingness to
resettle refugees in Nepal. Thus far, the GON has been
unwilling to even discuss such a move, fearing that it might
result in further RGOB intransigence. END NOTE.) Mahat
hoped that the Bhutanese would show some flexibility as well.
Meanwhile, the pressure on the RGOB from the international
community had helped move the process forward; in particular,
further encouragement of the RGOB by India was needed.

=========
UNGA NOTE
=========


5. (C) Mahat confirmed he was likely to lead Nepal's
delegation to UNGA, although its composition remains unclear.
If it were possible, Mahat asked, he would very much like to
meet with Under Secretary Grossman on the sidelines of the
meeting. "It's important we keep this dialogue open at as
many levels as possible," Mahat stated.

=======
COMMENT
=======


6. (C) Mahat was unclear whether the GON would remove the
offending paragraph from the report, although it seems
likely. Whether the GON will continue to allow the RGOB to
set the pace of the bilateral process is less clear. As an
interesting example of what he termed Nepal's generosity with
the GOB, Mahat pointedly emphasized that the GON has provided
concessions to the RGOB - in the form of permission to Druk
Air to fly a Delhi-Kathmandu-Thimpu route - despite the
RGOB's intransigence in moving forward with repatriation.
Although he was anything but explicit, that and his admission
of a willingness to integrate refugees that do not want to
return to Bhutan might indicate a new timbre to the
negotiations between the two governments.

===============
BIO INFORMATION
===============


7. (U) Prakash Sharan Mahat was appointed as Minister of
State for Foreign Affairs on July 5. (Prime Minister Deuba
holds the Minister of Foreign Affairs portfolio.) He is also
a member of the advisory group to the Federation of Nepalese
Chambers of Commerce (FNCCI) and a member of the National
General Committee of the Nepali Congress Party (Democratic).
Previously, he served as an advisor to Prime Minister Sher
Bahadur Deuba from July 2001 until October 2002 and as Member
Secretary of the High Level Recommendation Commission for

SIPDIS
Resolution of the Maoist Problem from 1999-2000, member of
the Economic Committee of the Nepali Congress Central
Committee from 1998-2001, and in 1990 a Central Action
Committee Member for the Restoration of Democracy.


8. (C) BIO INFORMATION CONT: Mahat was born in November 1959
in Nuwakot. He was imprisoned several times in the 70's and
80's for his pro-democracy agitation. In 1989, Mahat was
awarded a Fulbright Scholarship. Because of his
pro-democracy activism, the government at the time would not
give him a travel document -- with the restoration of
democracy in the spring of 1990, he was ultimately able to
receive a passport. He holds a PhD in Economics from the
University of Southern Illinois. Mahat is married with two
children. His English is good.
MORIARTY