Identifier
Created
Classification
Origin
05NEWDELHI2717
2005-04-11 13:03:00
CONFIDENTIAL
Embassy New Delhi
Cable title:  

RGOB NON-COMMITTAL ON SUPPORT FOR UNCHR RESOLUTION

Tags:  PGOV PREF PREL PHUM KDEM IN NP BT CU UNHCR 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 002717 

SIPDIS

E.O. 12958: DECL: 04/10/2015
TAGS: PGOV PREF PREL PHUM KDEM IN NP BT CU UNHCR
SUBJECT: RGOB NON-COMMITTAL ON SUPPORT FOR UNCHR RESOLUTION
AGAINST CUBA, RESOLVED ON FURTHER DEMOCRATIZATION


Classified By: DCM Robert O. Blake, Jr., for Reasons 1.4 (B, D)

C O N F I D E N T I A L SECTION 01 OF 04 NEW DELHI 002717

SIPDIS

E.O. 12958: DECL: 04/10/2015
TAGS: PGOV PREF PREL PHUM KDEM IN NP BT CU UNHCR
SUBJECT: RGOB NON-COMMITTAL ON SUPPORT FOR UNCHR RESOLUTION
AGAINST CUBA, RESOLVED ON FURTHER DEMOCRATIZATION


Classified By: DCM Robert O. Blake, Jr., for Reasons 1.4 (B, D)


1. (C) Summary: In an April 7 meeting with Bhutanese
Foreign Secretary Neden Zangmo, DCM urged the Royal
Government of Bhutan (RGOB) to support a UNCHR resolution
against Cuba noting that Bhutan's vote could be decisive.
The FS was non-committal citing the support Cuba had provided
Bhutan in the ongoing Bhutanese refugee matter. The FS also
noted that the Bhutanese Parliament is expected to ratify the
Chemical Weapons Convention (CWC) in June, and explained that
the December 22, 2003 disturbances in the refugee camps in
Nepal and the introduction of Bhutan's draft constitution had
slowed Bhutan's implementation of its commitment to
repatriate Category 1 refugees from Nepal. In a later
meeting with the UNDP resident representative, the res rep
said most Bhutanese oppose the draft constitution's proposed
introduction of a multi-party system because of skepticism
about the recent checkered history of multi-party democracy
in Nepal and Bangladesh. The editor of Bhutan's national
newspaper, Kuensel, agreed but predicted that the King is so
trusted that he is likely to convince the Bhutanese people to
approve the constitution, perhaps as a gift to the King in
2007 on the 100th anniversary of the Monarchy. End Summary.


Meeting with Foreign Secretary
--------------


2. (C) DCM opened the meeting by welcoming the strong
relations between the U.S. and Bhutan, expressing
appreciation in particular for Bhutan's ratification of the
Article 98 Treaty. The Foreign Secretary responded that
while Bhutan does not have diplomatic relations with the Perm
5, it nonetheless depends on the goodwill and friendship of
the United States and other Perm 5 members. She noted that
she herself had participated in a 1990 International Visitors
Program visit to eight states in the United States that she
had benefited a great deal from.


Tourism/Construction Now Employer of Choice
--------------


3. (C) DCM asked the Foreign Secretary about Bhutan's top
priorities. FS responded that providing youth employment is
the RGOB's major challenge. Whereas previously young
graduates could count on a job in the civil service, the King
had capped the civil service size at 17,000 positions to keep
government small, compact and efficient. This meant that the
bulk of new job opportunities would need to come from the
private sector. Asked which industries could provide new
jobs, the FS identified construction and tourism as key
sectors. She noted proudly that 3,000 tourists had visited
Bhutan in the first quarter 2005 compared to 9,000 for all of

2004. The RGOB's priority remained to attract a relatively
low volume of high spending tourists. DCM commented that the
new Aman resorts in Bhutan had attracted widespread favorable
press in the U.S. that would help Bhutan in this goal.

Royal Road Show to Consult People on Draft Constitution
-------------- --------------


4. (C) Regarding constitutional reform the FS placed the
draft constitution in the context of the King's policy to
steadily devolve power from the monarchy to democratic
institutions. The draft constitution was now being
circulated to every household in Bhutan after which the King
plans to visit every district to hear the views of his
people. The constitution's highlight is the creation of
multi-party system. The FS noted that the introduction of
the constitution had been delayed by the 2003 campaign
against the ULFA. She predicted the King's consultations
would take at least a year, possibly longer. She confessed
to a certain personal apprehension about the introduction of
political parties since she and most Bhutanese reposed great
confidence in the King and concern about the experience of
political parties in other parts of South Asia (see below for
UNDP comments that many Bhutanese share this apprehension).
Indian Hydro Projects Boost Economy
--------------


5. (C) With respect to the economy the FS commented that
growth continues between 5-6% annually. She noted that the
coming on line of the Tala hydro power project in 2006,
funded through a mixed credit from the Government of India
would give a further boost both to growth and exports, of
which power was by far the most important. The FS candidly
noted the Bhutanese hydro power projects had boosted Bhutan's
per capita income to $800, but that most families were poorer
than this figure implied. (Comment: CIA's Factbook cites a
$1,300 per capita GDP. In any case, this figure will climb
dramatically in the next few years as new hydro projects come
on line. End Comment.)


6. (C) DCM inquired about the RGOB's progress in its
campaign against ULFA. The FS hailed the success of the 2003
campaign in removing all 30 camps from Bhutanese territory.
She reported that the RGOB continues to have regular
counter-terrorism meetings with India to monitor the ULFA
threat. As to the situation in Bangladesh, she noted that
Bangladesh is Bhutan's largest trading partner after India
and that instability there does have an impact on Bhutan.

Complications For Repatriating Bhutanese Refugees
-------------- --------------


7. (C) Turning to Nepal the DCM noted that the United States
is disappointed with the lack of progress in repatriating
Bhutan Category 1 refugees from the refugee camps in Nepal.
The FS responded that Bhutan remains committed to
repatriating Category 1 refugees but that the December 22,
2003 incidents in the camps had slowed down the process. She
further noted that Nepal also had to agree and that Bhutan
had heard nothing from the Nepalese. She added that Bhutan
is at a delicate juncture with the introduction of a new
constitution and can ill afford instability at this sensitive
stage. She noted that FM Wangchuk had explained this in a
recent call with AS Rocca, in which they had agreed that the
State Department would instruct Ambassador Mulford to meet
with Bhutanese Ambassador Tshering in Delhi on both Bhutanese
refugees and Cuba human rights issues.

UNCHR Vote on Cuba
--------------


8. (C) DCM expressed appreciation for Bhutan's abstention on
the 2004 Cuba UNCHR resolution and predicted another very
close vote on April 14-15. He outlined evidence that Cuba's
human rights record had deteriorated in the last year and
urged Bhutan to support a resolution condemning Cuba for its
abysmal record. FS replied that even an abstention poses a
very difficult problem for Bhutan because of the support Cuba
has extended Bhutan on the Bhutanese refugee issue. The DCM
reiterated that Bhutan's vote would be critical to the United
States and many other countries and could be decisive.


9. (C) Before leaving DCM urged that Bhutan ratify the
Chemical Weapons Convention as soon as possible. The FS
noted that she expects the Bhutanese parliament to ratify the
CWC in June.

Meeting with UNDP
--------------


10. (C) DCM subsequently met for a wide-ranging discussion
with UNDP Resident Representative Renata Lok Dessallien
(protect) who has lived in Bhutan for three years. DCM again
began by hailing the warm but limited relations between the
U.S. and Bhutan. Dessallien laughed and said Bhutan has its
hands full managing relations with India and China, and is
understandably reluctant to establish relations with the Perm

5. She explained that India is active at all levels in
Bhutan, sometimes excessively so. She noted, for example,
that when the King had asked foreign governments and
international institutions such as the UNDP for advice on the
draft constitution three years ago, India immediately
dispatched constitutional advisors to Bhutan and made clear
that it would not look favorably on Bhutan receiving
assistance from other countries. As a result, the UNDP had
worked quietly behind the scenes to arrange for informal
advice that took place under the Indian radar.

Skepticism on Multi-party Democracy
--------------


11. (C) DCM remarked that he had detected skepticism on the
part of Bhutanese officials regarding the King's intention to
introduce a multi-party system into Bhutan. Dessallien
responded categorically that there is not a single interest
group in Bhutan that favors radical political change. She
said the whole country has been "buzzing" since the draft
constitution was released on March 26. Most Bhutanese that
she had spoken with had questioned where in South Asia
multi-party democracy had succeeded, citing the problems in
Nepal, Bangladesh and even India where Bhutanese see a
functioning democracy marred by growing corruption and very
slow decision making. She said the King is banking on
convincing his countrymen on the need for further devolution
of power to guard against capricious actions by the Monarchy
such as those by the King in Nepal. (Note: In a subsequent
lunch with the editor of Bhutan's national newspaper,
Kuensel, the editor agreed with Dessallien's views but
predicted that the King is so trusted that he is likely to
convince the Bhutanese people to approve the constitution,
perhaps as a gift to the King in 2007 on the 100 anniversary
of the Monarchy. End Note) Highlighting other elements of
the King's efforts to preserve good governance Dessallien
cited the King's strong efforts to punish corruption in
government and establish special commissions to address
corruption and human rights. She also praised the penal code
passed in 2004.

Economic Challenges: Raise Literacy, Diversify Economy
-------------- --------------


12. (C) Dessallien said Bhutan is making good economic
progress but faces important challenges. She expressed
concern about low literacy and the poor quality of primary
education. She was less concerned about employment, since
unemployment is only about 5%. Bhutan's greater challenge is
to diversify its economy. The country faces structural
obstacles because of its small market and low economies of
scale that provide few opportunities for private companies.
She noted that some Bhutanese hope to develop niche markets,
such as call centers but also explained that Bhutan's unique
ethos of "gross national happiness" and its Buddhist
philosophy sometimes take priority over private initiatives.
A private American effort to establish a small company in
Bhutan to manufacture and market fly fishing hooks and flies,
for example, had foundered when Bhutanese groups had pointed
out to the government that such equipment would kill fish
(fishing is heavily restricted in Bhutan). Project advocates
countered that most fly fishermen catch and release their
fish, but this argument did not carry the day.

Cable TV ) Too Much of a Good Thing?
--------------


13. (C) DCM asked how the introduction of cable television
and the internet in 1999 had affected Bhutanese society.
Dessallien responded that while internet usage was still
relatively small, many Bhutanese households now had access to
cable and that the sudden introduction of half naked models
on Fashion TV, Indian soap operas and western movies had had
a revolutionary and (many Bhutanese people believe) negative
impact. Drug use, sexually transmitted diseases and AIDS all
were on the increase, although precise figures are not
available.

US Scholarships Needed
--------------


14. (C) DCM asked how the United States might usefully help
Bhutan if funds become available. Dessallien responded that
there is universal admiration in Bhutan for America's higher
education system and that scholarships were in great need and
would have a lasting and sustained impact on Bhutan. She
cited Australia's strong program over many years to provide
scholarships for Bhutanese. Asked how the Australians screen
potential applicants with no staff on the ground, Dessallien
responded that the Royal Civil Service Commission does a good
and unbiased job of doing so.
MULFORD