Identifier
Created
Classification
Origin
05NEWDELHI859
2005-02-03 12:24:00
CONFIDENTIAL
Embassy New Delhi
Cable title:  

GOI REWARDS BHUTANESE KING AS GUEST OF HONOR AT

Tags:  PREF PREL PHUM IN NP BT UNHCR 
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C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 000859 

SIPDIS

E.O. 12958: DECL: 02/02/2015
TAGS: PREF PREL PHUM IN NP BT UNHCR
SUBJECT: GOI REWARDS BHUTANESE KING AS GUEST OF HONOR AT
REPUBLIC DAY

REF: NEW DELHI 6920

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

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 000859

SIPDIS

E.O. 12958: DECL: 02/02/2015
TAGS: PREF PREL PHUM IN NP BT UNHCR
SUBJECT: GOI REWARDS BHUTANESE KING AS GUEST OF HONOR AT
REPUBLIC DAY

REF: NEW DELHI 6920

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


1. (C) Summary: The Government of India (GOI) rewarded
Bhutanese King Jigme Singye Wangchuck for conducting military
operations in December of 2003 against Indian militants
hiding out in Southern Bhutan by making him the guest of
honor at Republic Day. During the King's January 24-28
visit, the GOI privately pressed the Bhutanese to find a
solution to the ongoing refugee problem with Nepal and
announced a significant increase in the GOI's development
assistance. King Wangchuck stated the Royal Government of
Bhutan (RGOB) will release a draft constitution in March,
highlighted the Kingdom's concerns about Maoist activities in
Nepal, announced a plan to build a number of railway links
between the two countries, reiterated the RGOB's commitment
to the repatriation of Category 1 refugees, discussed
Sino-Bhutanese relations and announced that he was trying to
cut down smoking cigarettes. End Summary.

Militants in the North East
--------------

2. (C) King Wangchuck held the position as guest of honor
during the January 26 Republic Day celebration, a reflection
of the GOI's appreciation for Bhutan's successful military
operations against Indian militants in December 2003.
According to a number of pundits who follow Bhutan, this
decision highlighted the importance of the fight against the
insurgents in North-East India and demonstrated New Delhi's
gratitude to the RGOB for carrying out the mission.

Category 1 Refugees
--------------

3. (C) MEA Joint Secretary Ranjit Rae (Nepal and Bhutan)
told Polcouns and poloffs on February 2 that the King
reiterated his commitment to the Dewey/Wangchuck framework
for repatriation of Category 1 refugees (Reftel) during his
visit, but stated that it depends on the security situation
in Nepal. In one of his media interactions, the King
reportedly stated a majority of the refugees in the camps are
not Bhutanese citizens. However, in a February 2 meeting
with Poloff, Bhutanese First Secretary Karma Rinchhen
commented that this was not a policy change. The RGOB has

never considered a majority of the refugees to be citizens
and he argued the people in Category 2 gave up citizenship
when they left Bhutan. However, Rinchhen noted that under
the terms of the bilateral process, these people will have
the option to reapply for citizenship.


4. (C) Rae commented that he thought the plan to repatriate
Category 1's was "a pretty good initiative" and wondered why
it had not succeeded. He said the GOI had pressed the King
to accept the Category 1's and revive the bilateral process.
Rae stressed the need to have the Nepalese and Bhutanese
ambassadors meet on the issue in Delhi, arguing that not
every aspect of the negotiations should go through formal
letters between the two capitols. India has also made this
point to Kathmandu. Rae inquired about numbers for possible
third country resettlement in the U.S., emphasizing the point
that other solutions could become clear if this information
was available. Polcouns reiterated our standard line on this
issue.

Power to the People
--------------

5. (U) During a January 30 meeting with journalists, King
Wangchuck reiterated his commitment to devolving authority
and creating a constitutional monarchy, announcing that the
draft constitution would be released in March. He stated he
plans to travel throughout Bhutan holding meetings to promote
the new constitution before the document is put up for a
referendum later in the year. King Wangchuck explained that
Bhutan is coming to the end of a long transition, which began
in 1991, from a monarchy to democracy and will implement a
constitution with an amalgamation of ideas from a number of
other countries. He commented that, when implemented, the
constitution will clearly define the role of the monarchy.
Foreshadowing the Trouble in Nepal
--------------

6. (U) Four days prior to King Gyanendra of Nepal's decision
to dismiss the Deuba government and take over power, King
Wangchuck expressed concern that the situation in Nepal was
deteriorating day-by-day and that "as friends and neighbors,
we do not want the situation (to get) out of control." The
Maoists hold sway in 69 districts, stated Wangchuck, but he
hoped that "something good, something positive" would come
out of the situation. However, he warned that the Maoists had
almost total control over Nepal and the situation could
become "much more serious than it is today," having negative
implications for both India and Bhutan.


7. (C) Bhutanese First Secretary Karma Rinchhen told poloff
on February 2 that the RGOB did not intend to make any public
statement concerning the change in government in Nepal, but
that it was not considered "a good thing." He added that the
RGOB is going to take a wait and see approach to the
situation. He argued that if King Gyanendra shows that he
can make progress in the fight against the Maoists and bring
real security to Nepal "how can that not be seen as a
positive development?" Rinchhen added that the Deuba
administration had not effectively dealt with the insurgency,
but the removal of his government will be problematic if the
situation continues to spiral out of control. Rinchhen was
very interested in how the change in regime would effect U.S.
aid to the region, specifically in terms of military
assistance. He reiterated RGOB concerns of a Maoist
spill-over into Bhutan and links between the Maoists and the
United Liberation from of Assam (ULFA),National Democratic
Front of Bodoland (NDFB) and Kamtapur Liberation Organization
(KLO). When questioned if the RGOB believes if these groups
were currently operational in Bhutan, he said no, "but the
threat is still there."

Increase in Aid
--------------

8. (U) In connection with the King's visit, India has agreed
to increase development assistance to Bhutan from Rs. 430
crore (US $100 million) to Rs. 710 crore (US $165 million)
during the current Five Year Plan (2002-2007). According to
the Bhutanese National newspaper (Kuensel),Bhutan and India
signed three memorandums of understanding (MoU) during the
King's visit focusing on development. The MoU's concerned
cooperation on agriculture, continuing the development of the
hydropower industry, and a feasibility study for a network of
railway lines from five locations in Bhutan to connection
points in India. Currently, there are no rail links between
the two countries.

China
--------------

9. (U) Numerous media outlets reported that the King's
expression of optimism about resolving RGOB differences with
China over disputed border areas. He was quoted as saying
that out of the 450 km frontier, only a small portion is
under question. He also de-linked Thimphu's decision not to
have full diplomatic ties with China from the boundary
dispute, stating that Bhutan does not have full diplomatic
relations with any of the five permanent members of the UNSC.
When questioned how this policy could change if India
receives a seat on the council (which Bhutan supports),he
commented, "This (policy) can't apply to India. It would be
like divorcing your wife."

No Smoking in Shangri La
--------------

10. (U) In response to the recent ban on smoking in public
places in Bhutan and the announcement of 100 percent sales
and imports taxes on cigarettes, King Wangchuck announced
that he, as a smoker, would try and cut back on the habit.
When asked how many cigarettes he smokes a day, he quipped,
"I don't want to tell you. With four wives, I better stop
smoking."

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

11. (C) In wake of the decision by King Gyanendra of Nepal
to dismiss the coalition government on February 1 and the
Bhutanese government's often stated concerns for the security
of their Joint Verification Teams, it is unlikely the
repatriation of Category 1 refugees according to the
Dewey/Wangchuck framework will occur in the near future.
While the RGOB maintains they are committed to the Joint
Verification Process, the combination of the implementation
of the new constitution, the upheaval in Nepal and concerns
over Maoist infiltration in the refugee camps will likely
result in RGOB delaying the process. In the meantime,
however, GOI support for the Dewey/Wangchuck framework, and
New Delhi's willingness to weigh in on this topic with
Thimphu is a hopeful signal of India's willingness to join
forces with us in pursuit of a long term solution to the
refugee problem. End Comment.)
MULFORD