CHINESE MILITARY AID TAKES PRESSURE OFF KING TO

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 002379

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DEPT FOR SA/INS
NSC FOR RICHELSOPH

E.O. 12958: DECL: 10/31/2015
TAGS: PREL PGOV MASS CH NP JP
SUBJECT: CHINESE MILITARY AID TAKES PRESSURE OFF KING TO
RECONCILE

REF: A. KATHMANDU 2327


B. KATHMANDU 1912

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

Summary
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1. (C) Chief of Army Staff (COAS) General Thapa announced on
October 24 that China had committed about 1 million USD for
military assistance to Nepal this year, noting that more
assistance would follow next year. The Ambassador publicly
(septel) and privately (ref A) cautioned that, while Nepal
had the right as a sovereign country to purchase weapons for
self-protection, military aid from China could take pressure
off the King to reconcile with the political parties, a
precondition for democratic countries (U.S., U.K, and India)
to resume supplying lethal weapons to Nepal. End summary.

COAS Thapa's visit to China Yields Military Assistance to
Nepal
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2. (U) COAS Thapa returned from a week long visit to China
on October 24 and told reporters that China had committed 8
million yuan (989,000 USD) for military assistance to Nepal.
He said, "We have decided to buy our military equipment from
China." He noted that China had "agreed to provide similar
assistance next year" as well. Thapa's visit to China at the
invitation of the Chinese People's Army followed Foreign
Minister Pandey's visit in August in which he secured USD 12
million in untied assistance (ref B).

Ambassador's Remarks on China Assistance Front Paged
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3. (U) Answering a question regarding Chinese military
assistance at a press conference organized by the Federation
of Nepali Journalists in Butwal in the Western terai on
October 26, the Ambassador said that while a sovereign
country had the right to buy weapons to protect itself,
Chinese military assistance to Nepal was worrying if it took
pressure off of the King to reach out to political parties.
The Himalayan Times put the Ambassador's comments on the
front page in an article titled "Moriarty objects to Chinese
military aid." The article noted that the Ambassador had
reiterated America's stand that "it would halt all military
assistance to Nepal until the reinstatement of democracy."
It also quoted the Ambassador as saying the U.S. would
provide as much help as required for the reinstatement of
democracy.

VC Giri Publicly Lashes Out Against Ambassador Over China
Comments
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4. (U) On October 30 at a "Peace Rally" in the terai town of
Gaur (in UML Leader M.K. Nepal's home district),Vice
Chairman Giri lashed out at the Ambassador. Giri asserted
that the Ambassador was "irritated" at the arms and financial
assistance Nepal would be getting from China and therefore
was criticizing the government. He added that "statements
being given by the American Ambassador against us won't
affect the present government." He noted that Nepal could
solve its own problems. He continued, "I can confidently say
that the development of Nepal is possible as imagined by the
King through his proclamation of February 1." He argued that
the government could not "digest the intervention of foreign
countries in Nepal's matters" and charged the international
community with backing anti-government civil society
activists.

Embassy Clarifies Ambassador's Remarks
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5. (C) On October 31, the DCM clarified to the Acting Foreign
Secretary Shrestha the Ambassador's public comments regarding

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Nepali arms purchases from China. She explained that the
Ambassador had said that while Nepal had the right to buy
weapons from any source for its own defense, the U.S. was
concerned about recent reports about large Chinese arms sales
to Nepal. The Ambassador had stressed that the U.S. believed
it was critical for Nepal's legitimate forces to unite, and
for the King to take the first step toward reconciliation
with the political parties for that purpose. The Ambassador
worried that HMGN might believe that large arms purchase
would eliminate the need for reconciliation. The DCM noted
that the Ambassador's comments as described above represented
the exact views of the U.S. government.

Japanese Concerned
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6. (C) In a meeting with Japanese Ambassador Tsutomu Hiraoka
on October 25, the Ambassador commented that Thapa's visit to
China and Pandey's visit to Russia were His Majesty's
Government of Nepal's attempt to show that it had
alternatives to traditional close ties with democratic
countries. The Ambassador explained that he had cautioned
Vice Chairman Giri (ref A) about the international reaction
to a Nepal that allied itself with undemocratic countries.
Hiraoka asked if the U.S. would now reconsider military
assistance to Nepal. The Ambassador replied that Chinese
military assistance took the pressure off of the King to
reconcile with the parties, a precondition for the U.S. to
consider resuming military aid. The Ambassador noted that
Nepalis believed that, though not as good as American M-16s,
the Chinese-made AK-47s were better than Indian INSAS rifles.
Therefore, if the army had enough Chinese weapons it would
also be less likely to pressure the King to reach out to the
parties. He acknowledged that new suppliers were a
predictable outcome of the suspension of assistance by
traditional suppliers. He added that India, as Nepal's
largest traditional arms supplier, and the country with the
most influence in Nepal should also react strongly to China's
weapon shipments. Hiraoka remarked that it was very
difficult to try to convince the King to do the right thing,
though he said Tokyo was asking for ideas. The Ambassador
suggested that Japan continue to express its concerns to HMGN
and continue to push the King to reach out to the parties.

Comment
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7. (C) The Ambassador's public comments cautioning HMGN from
isolating itself and becoming an international pariah struck
a sensitive chord. HMGN's initial reaction has been to lash
out against the Ambassador, however, we hope that we have
sparked a debate within the government about the dangers of
self-isolation.
MORIARTY