UNCLAS ROME 000879

SIPDIS


FROM U.S. MISSION IN ROME

KATHMANDU FOR AMBASSADOR MALINOWSKI AND USAID DIRECTOR CLARK
STATE FOR AS/PRM DEWEY, PRM/P, SA/INS AND IO/EDA BEHREND AND
KOTOK
USAID FOR DAA/DCHA GRIGSBY, DCHA/FFP LANDIS, ANE/ESA
USDA/FAS FOR CHAMBLISS/TILSWORTH/GAINOR
GENEVA FOR AMBASSADOR MOLEY, RMA LYNCH AND NKYLOH/USAID
USUN FOR AMBASSADOR NEGROPONTE AND MLUTZ
BRUSSELS FOR USAID/LERNER
NSC OR JDWORKEN

E.O. 12958: N/A
TAGS: EAID EAGR AORC PREF KUNR WFP UNHCR
SUBJECT: WFP BOARD PPROVES NEPAL PROTRACTED RELIEF AND
RECOVERY OPEATION (PRRO) VALUED AT U.S. DOLLARS (USD) 7.59
MILION - 19,226 METRIC TONS

REF: (A) 03 ROME 1295

--------------
SUMMARY
--------------


1. The WFP Execuive Board, at its first regular session
(Februar 23-26), approved a Protracted Relief and Recovery
Operation for Nepal. The project 10058.3, entitle Food
Assistance to Bhutanese refugees in Nepal,is for twelve
months (July 2004-June 2005), and overs 99,600
beneficiaries. Total cost to WFP isUSD 7.59 million. Over
the life-of-project, WFP ill supply (subject to the
availability of funds)a total of 19,226 metric tons of food
aid. End smmary.

--------------
Background
--------------

. Refugees from Bhutan - mostly ethnic Nepalis - bgan
fleeing to Nepal in late 1990, with the inflx peaking in

1992. The population is now stabilizd in seven camps in
Eastern Nepal, and it appear that most Bhutanese refugees
prefer to return t Bhutan. In 2003, Nepalese and Bhutanese
Joint Vrification Teams completed the verification and
ategorization of refugees in Khudunabari Camp. Thoe
refugees in Categories (I) Bhutanese citizens ompelled to
leave Bhutan; (II) Bhutanese who volntarily left Bhutan;
and (IV) alleged criminals were scheduled to be offered
repatriation to Bhtan in February 2004. However, an
incident on December 22, 2003, in which refugees attacked
Bhutaese officials in Khudunabari Camp, resulted in the
postponement of the repatriation. Displeased wih the
stated terms and conditions for return, Bhutanese refugee
leaders demand that returnees regain Bhutanese citizenship
as well as access to their original land and employment
opportunities. UNHCR announced plans in October 2003 to
gradually phase out its assistance in the camps over a two-
year p

eriod while focusing on fostering self-reliance
activities, referring vulnerable cases for resettlement, and
ensuring any returns to Bhutan are voluntary. UNHCR has
already begun cutting assistance in 2004.

-------------- --------------
U.S. intervention in support of approval of the Nepal PRRO
-------------- --------------


3. Herewith the essence of the supportive U.S. intervention:

-The USG continues to urge both Nepal and Bhutan to provide
durable solutions for the more than 100,000 Bhutanese
refugees in Nepal. Both Governments need to promptly
reengage the bilateral process to prepare for their
repatriation and local integration. Specific concerns
raised by the refugees about the terms and conditions for
return should be addressed.

-USDEL encourages WFP to monitor how its operations in the
Bhutanese refugee camps will be affected by UNHCR's reduced
assistance. We urge the UN to ensure that the basic needs
of the Bhutanese refugees are met as Bhutan and Nepal
revisit next steps on repatriation and local integration.

-USDEL remains concerned with the fragile security situation
that impacts not only UN staff but also the camp population
in general.


4. Other delegations were supportive of WFP's efforts.

--------------
WFP's Country Director responds
--------------


5. WFP's Country Director for Nepal (Ms. Erika Joergensen)
reported that UNHCR has effectively ceased its support for
the Joint Verification process. Nepal-Bhutan "talks," in her
view, are at a "standstill." She confirmed that the
Government of Nepal has removed permanent police points in
the camps, which in turn has heightened camp insecurity.
Moreover, in October 2003, both districts hosting the camps
were declared Phase 3 by the United Nations Security
Coordinator (UNSECOORD), restricting United Nations staff to
essential monitoring.

-------------- --------------
Donor support to WFP Nepal's ongoing PRRO 10058.2 covering
the period July 2003-June 2004
-------------- --------------


6. U.S. contributions against the present WFP Nepal PRRO
total USD 902,321 (2,021 metric tons). The PRRO's major
donor is the European Community (ECHO), which has
contributed USD 2.37 million (6,682 metric tons). Note.
Overall contributions to the ongoing program through January
9, 2004 are USD 6.9 million (19,574 metric tons), against an
operations target of USD 8.57 million (20,044 metric tons).
End note.

--------------
Executive Board approval
--------------


7. The WFP Board approved the Protracted Relief and Recovery
Operation for Nepal. The project 10058.3, entitled Food
Assistance to Bhutanese refugees in Nepal, is for twelve
months (July 2004-June 2005), and covers 99,600
beneficiaries. Total cost to WFP is USD 7.59 million. Over
the life-of-project, WFP will supply (subject to the
availability of funds) a total of 19,226 metric tons of food
aid. Hall


NNNN
2004ROME00879 - Classification: UNCLASSIFIED