NEPAL: KING'S CONFIDANT SAYS MONARCH OPEN TO

S E C R E T KATHMANDU 000692

SIPDIS

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

E.O. 12958: DECL: 04/11/2014
TAGS: PGOV NP
SUBJECT: NEPAL: KING'S CONFIDANT SAYS MONARCH OPEN TO
NEGOTIATIONS WITH PARTIES

REF: A. KATHMANDU 683 (NOTAL)

B. KATHMANDU 651

Classified By: AMB. MICHAEL E. MALINOWSKI. REASON: 1.5(B,D).


1. (S) On April 12 royal confidant Prabhakar Rana told the
Ambassador that King Gyanendra had agreed, as proposed by the
U.S. Ambassador in agreement with the Indian and UK
Ambassadors, to resume discussions with political party
leaders through an as-yet unnamed Palace envoy (Ref B). Rana
said he would pass this message to the party leaders. The
talks are to be kept confidential and not to be presented as
undertaken at the behest of the Palace. According to Rana,
the King envisions two possible scenarios evolving from these
discussions. First, the parties suggest a consensus
candidate or candidates (whose acceptability to all sides
will have been thoroughly vetted by the Palace-appointed
mediator) to head an all-party government. Alternatively,
the King could propose a basket of names from which the
parties would choose a consensus candidate for Prime
Minister.


2. (S) Rana expressed growing concern at the turbulent
political situation. The parties and Palace seem farther
apart than ever, he observed, while Maoist activities are on
the increase, exacting a severe toll on the economy. The
Government's continued talk of elections in such an
environment seems unrealistic. That the King is seen as
presiding over an impending catastrophe will further
undermine respect for the monarchy as an institution, Rana
fretted, but he does not seem to appreciate the urgency of
the situation. Rana said he has asked Finance Minister
Lohani to brief the King on the deteriorating economic
situation, while a parallel briefing by Foreign Minister
Thapa would highlight the concerns of the international
community.


3. (S) On April 13 Ambassador Malinowski and Indian
Ambassador Shyam Saran will meet with senior party leaders to
advance the plan. On April 14 the Indian Ambassador plans to
travel to New Delhi to brief the Indian government on efforts
to encourage a rapprochement between the Palace and the
parties. He also expects to speak with the King. Ambassador
Malinowski will reinforce the need for accommodation in his
farewell calls on the King, the Prime Minister and the party
leaders.
MALINOWSKI