FS SARAN CALLS FOR ENHANCED BHUTAN TIES

C O N F I D E N T I A L SECTION 01 OF 03 NEW DELHI 009164

SIPDIS

SIPDIS

E.O. 12958: DECL: 12/02/2015
TAGS: PGREL PBTS ECIN ETRD PREF PTER PGOV IN BT NP
SUBJECT: FS SARAN CALLS FOR ENHANCED BHUTAN TIES

REF: NEW DELHI 8893

Classified By: PolCouns Geoff Pyatt for Reasons 1.4 (B, D)


1. (C) Summary: India and Bhutan have a vital stake in each
other's well-being and greater economic, security and
cultural ties will benefit both countries, Foreign Secretary
Shyam Saran argued during an unusual December 3 seminar
focused on Bhutan. Underlining the growing GOI concern about
contagion from Maoist groups in Nepal, Thimphu and New Delhi
will continue jointly to develop and upgrade their border and
security infrastructure in order to combat the threat of
Maoists and Indian left-wing extremists. He also promised
GOI support for the King's proposed transition from an
absolute to constitutional monarchy. Saran argued for
greater integration of the economies of Bhutan and India in
order to meet the needs of the next generation, and suggested
the border should be a gateway, not a boundary. At the same
seminar, Professor J.D. Muni of Jawaharlal Nehru University
argued for greater GOI involvement in solving the
Bhutan-Nepal refugee problem and solidarity with Bhutan
regarding the Sino-Bhutanese border dispute. Muni also
discussed the 1949 treaty between India and Bhutan, which is
still in force today and states Bhutan will be "guided by the
advice of the Government of India in regards to its external
relations," and noted that it might be time to change the
wording to reflect the reality that Bhutan conducts its own
foreign policy. This event was evidence of India's
increasing comfort with a more visible and transparent
relationship with its small neighbor. End Summary.

More Ties, Better Neighbors
--------------


2. (U) Bhutan and India have a vital stake in each other's
well-being and prosperity, and their destinies, regardless of
their size, are intertwined, Saran commented during a New
Delhi seminar hosted by hosted by the Bhutan India Friendship
Associations (BIFA),a group comprising of academics,
artisans, and government officials based in Thimphu. He
remarked that stability, peace and economic advancement are
the most durable guarantors of peaceful coexistence, and that
India has been privileged to assist Bhutan in its task of
nation-building.


3. (U) Highlighting the military operations conducted by the
Royal Bhutanese Army in December 2003 as a milestone in "our
joint response to terrorist activities," Saran called for
continued cooperation along the border. He noted that India
looks forward jointly to upgrading border infrastructure and
management, including better roads, communication links and
information sharing. Noting the common threat of Nepalese
Maoist groups and their linkages with Indian left wing
extremists and insurgent groups, Saran commented that
cooperation along the border is a prerequisite for securing
close and friendly relations between countries sharing a long
border.

Support for the Constitution
--------------


4. (U) Saran stated that the GOI is following the King of
Bhutan's proposed transition to a constitutional monarchy
"with keen interest" and would assist during the process.

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Acknowledging that the process could take two to three years,
he indicated that the GOI's objective is "not just to
consolidate and preserve the exemplary relations we have, but
to take them to an even higher level of mutually-beneficial
cooperation and understanding."

Economic Integration Vital
--------------


5. (U) Saran told the audience that economic integration and
cooperation was necessary in the increasingly inter-dependent
global economy. He called for a strategy of economic
development that complements the resources endowed to each
country. Noting Bhutan's success in developing its
hydropower resources while preserving the environment, Saran
stated the GOI supports greater cooperation in this sector.
He argued that the next generation in India and Bhutan
expects a better life, which the two governments will have to
deliver, and greater integration will help achieve this goal.
He concluded that the border should not be viewed as a
boundary, but a gateway to facilitate economic growth.

India Needs to Play Larger Role in Refugee Problem
-------------- --------------


6. (C) At the same seminar at which Saran spoke, JNU
Professor Muni stated that India needs to play a larger role
in finding a solution to the refugee problem between Bhutan
and Nepal. (Comment: Joint Secretary Rae's November 22
comments (reftel) suggest that the GOI has pressed Thimphu to
resolve the conflict, but that the RGOB intends to do so on
its own time frame. End Comment.) Muni argued that India,
due to its involvement in the transit of refugees from Bhutan
to Nepal in the early 1990s, needs to apply more pressure on
the Bhutanese to resolve the issue. He warned that the
intrusion by Maoists into the refugee camps is of concern to
both New Delhi and Thimphu and will directly affect India in
the future if a solution is not found to the refugee problem.


Sino-Bhutan Relations
--------------


7. (U) Muni indicated that the GOI should provide more
assistance to the Bhutanese regarding the Sino-Bhutan border,
asserting that "the GOI needs to make sure that Bhutan does
not get pushed around by the Chinese."

Comment: Less Influence of Big Brother India
--------------


8. (C) Muni noted that it might be time to change the
wording of the 1949 GOI-RGOB treaty, which states that Bhutan
will be guided by the GOI in regards to its foreign
relations. He argued that the realities on the ground, that
Bhutan now makes most of its own decisions, should be
reflected in a change to the treaty. The Mission has also
seen evidence that Bhutan is exerting more independence in
its foreign policy decisions, first, in breaking with India
two years in a row on the UNHRC vote on Cuba, and second, in
resisting GOI pressure to settle the refugee issue. That
being said, Saran's unusual public speech on India's
relationship with Thimphu reflects New Delhi's increasing
willingness to address its policy towards Bhutan in a

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transparent and forthright manner, rather than treating it as
distinct from other foreign policy relationships. End
Comment.


9. (U) Visit New Delhi's Classified Website:
(http://www.state.sgov.gov/p/sa/newdelhi/)
MULFORD