INDIA RESPONDS QUICKLY TO NEPAL KING'S ACTIONS;

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 000792

SIPDIS

E.O. 12958: DECL: 01/31/2015
TAGS: PREL PGOV PTER MASS EAID PREF ASEC IN NP
SUBJECT: INDIA RESPONDS QUICKLY TO NEPAL KING'S ACTIONS;
SEEKS COORDINATED LINE WITH WASHINGTON


Classified By: Ambassador David C. Mulford, for Reasons 1.4 (B, D)


1. (S) Summary: Expressing "grave concern" over the King's
decision to dissolve the multiparty government in Nepal, and
calling the action "a serious setback to the cause of
democracy," New Delhi responded swiftly and with unusual
firmness to the February 1 developments in Kathmandu. In a
statement issued just hours after the King wrested power from
Prime Minister Deuba, the MEA called for the safety and
welfare of Nepalese political leaders who are now reportedly
under house arrest, and stated that the King had violated the
principles of multiparty democracy and constitutional
monarchy as enshrined in Nepal's Constitution. In a February
1 phone call to the Ambassador, Foreign Secretary Saran urged
that Washington reinforce the GOI line with its own strong
statement. Saran warned that if there is large scale
agitation in Kathmandu, and if the RNA overreacts, India may
have to "take some unpopular decisions." In that
eventuality, Saran added, he hopes Washington and New Delhi
will be on the same page. End Summary.

Joint Message
--------------


2. (C) In a sign of growing GOI commitment to the US-India
security partnership, Foreign Secretary Saran called the
Ambassador on the afternoon of February 1, just a few minutes
after New Delhi had issued its statement on the situation in
Nepal (full text para 6). Saran described the MEA release as
"unusually strong" and urged the Ambassador to work with
Washington to generate a reinforcing message from Washington.
Invoking the RNA's record of poor human rights practices,
Saran expressed concern about the likelihood of large scale
agitation in Kathmandu. If the RNA overreacts, India may
have to "take some unpopular decisions" (no further
information) and, Saran added, hopes Washington and New Delhi
will be on the same page.


3. (C) Speaking to Polcouns earlier on February 1, a Director
in the Prime Minister's office indicated that New Delhi had
warning that the King would act late on January 31.
Underlining India's concern with the unfolding situation,
Prime Minister Manmohan Singh and his foreign affairs team
reportedly met early on February 1 to review the situation
and craft a response. MEA Director (Nepal and Bhutan) Achal
Kumar Malhotra told Poloff that, given India's keen interest
in the long-term stability of Nepal, the MEA would issue
further statements if necessary and would continue to closely
monitor the situation.


4. (C) MEA Under Secretary (Nepal) Manu Mahawar emphasized
that the GOI had not yet decided whether to suspend aid to
Nepal, a decision that would come only after India had
reviewed the situation in greater detail. He noted that
communication with the Indian Embassy in Kathmandu had been
spotty since local land and cell phone service was
unavailable following Gyanendra's announcement, a situation
that contributed to the uncertainly surrounding the
situation. Predictably, the Indians have already started
asking whether the developments in Nepal will trigger Section
508 sanctions from the US.

Comment
--------------


5. (C) The Indian government has repeatedly expressed an
interest in continuing to coordinate with the US as the
situation unfolds in Kathmandu. Saran's call to the
Ambassador suggests that New Delhi is gravely concerned about
the situation in Nepal, and is likely to ramp up their
signals of displeasure with the King's actions in both public
and private. Whether the GOI will suspend military aid
remains to be seen. As one of our contacts noted,
Gyanendra's decision to sack the Deuba government was "a
direct snub to New Delhi," especially in light of India's
repeated requests that the King avoid such a course. The
same contact also speculated that Kathmandu's closure of the
Dalai Lama's office in Nepal was intended as a sop to
Beijing, aimed at lining up support from Beijing in the event
that New Delhi took a hard line on the King's action.


6. (U) Text of the MEA statement follows:

Statement on Developments in Nepal

The King of Nepal has dissolved the multiparty government led
by Prime Minister Deuba, and has decided to constitute a
Council of Ministers under his own Chairmanship. An emergency
has been declared and fundamental rights have been suspended.
These developments constitute a serious setback to the cause
of democracy in Nepal and cannot but be a cause of grave
concern to India.

There are also reports that several political leaders have
been confined to their residences. The safety and welfare of
the political leaders must be ensured and political parties
must be allowed to exercise all the rights enjoyed by them
under the Constitution.

India has consistently supported multiparty democracy and
constitutional monarchy enshrined in Nepal's Constitution as
the two pillars of political stability in Nepal. This
principle has now been violated with the King forming a
government under his Chairmanship.

We have always considered that in Nepal, it is imperative to
evolve a broad national consensus, particularly between the
monarchy and political parties, to deal with the political
and economic challenges facing the country.

The latest developments in Nepal bring the monarchy and the
mainstream political parties in direct confrontation with
each other. This can only benefit the forces that not only
wish to undermine democracy but the institution of monarchy
as well.

India has a longstanding and unique relationship with Nepal,
with which it shares an open border, a history of strong
cultural and spiritual values and wide-ranging economic and
commercial links. We will continue to support the restoration
of political stability and economic prosperity in Nepal, a
process which requires reliance on the forces of democracy
and the support of the people of Nepal.

New Delhi
February 1, 2005
Ministry of External Affairs
MULFORD