CHINESE AMBASSADOR DENIES COMMERCIAL WEAPONS

C O N F I D E N T I A L KATHMANDU 002516 SIPDIS SIPDIS DEPT FOR SA/INS NSC FOR RICHELSOPH E.O. 12958: DECL: 11/18/2015 TAGS: PREL MASS MCAP PGOV PINS CH NP SUBJECT: CHINESE AMBASSADOR DENIES COMMERCIAL WEAPONS SALES TO NEPAL REF: A. KATHMANDU 2379 ¶B. KATHMANDU 2391 ¶C. STATE 202064 ¶D. KATHMANDU 2390 ¶E. BEIJING 18209 ¶F. BEIJING 18123 ¶G. KATHMANDU 1645 Classified By: Amb. James F. Moriarty, Reason 1.4 (b/d) NO LARGE COMMERCIAL WEAPONS SALES -------------- ¶1. (C) Chinese Ambassador Sun Heping categorically stated to the Ambassador in a November 18 meeting that China had no large commercial sales to Nepal in the works. The Ambassador described to Sun his comments at a press conference in Butwal (refs A and B) that new provisions of large amounts of weapons by other parties, including China, might take the pressure off the King to reach out to the political parties. The Ambassador explained that the King might calculate that he had sufficient external support to allow him to do whatever he wanted internally. Amb. Sun replied that China was providing similar assistance as in the past -- roughly one USD million worth of equipment (ref A). In response to the Ambassador's concern about rumors of large commercial sales of weapons worth over USD twenty million (ref C),Sun averred "absolutely not." He asserted that he would know about such sales if they were taking place. He added that the figure of USD 20 million was "laughable." The Ambassador assured him that the USG would be happy to hear this. BUT WORRIED ABOUT SITUATION -------------- ¶2. (C) Amb. Sun stated that Beijing's policy toward Nepal had not changed. Beijing still wanted to see "cooperation and understanding" between the King and the political parties. The Ambassador agreed that things were evolving and becoming more dangerous. The political parties were desperate because the King continued to constrict their space, but they could not operate in the countryside without the approval of the Maoists. The Parties could only mobilize a movement against the King if they had the active cooperation of the Maoists. The Ambassador added that because of that desperation which had led to dangerous initiatives on the part of some UML leaders, he had felt it necessary to publicly warn the Parties against forming an alliance with the Maoists without the latter forswearing violence (ref D). COMMENT -------------- ¶3. (C) Our sense remains that Beijing shares our worry about developments here (ref G). Amb. Sun's strong denial of rumored commercial weapons sales indicates that Beijing understood our message of concern about China providing lethal weapons to Nepal (refs C, E and F). China seems to recognize that it has to tell us, and presumably the Indians, that it appreciates that the issue of providing weapons to Nepal is very sensitive and that it is important not to dissipate pressure on the King. We will see whether the Chinese Ambassador's denials are accurate. MORIARTY