PRC/NEPAL: BEIJING CONCERNED SITUATION MAY

C O N F I D E N T I A L BEIJING 007692 SIPDIS SIPDIS E.O. 12958: DECL: 04/24/2016 TAGS: PREL PGOV NP CE CH SUBJECT: PRC/NEPAL: BEIJING CONCERNED SITUATION MAY DETERIORATE INTO CIVIL WAR; SEEKING JOINT-EFFORT REF: A. A) AMBASSADOR MORIARTY/KAGAN 4/24 TELCON ¶B. B) AMBASSADOR MORIARTY/CDA SEDNEY 4/24 TELCON C) KATHMANDU 1033 AND PREVIOUS. Classified By: Classified by CDA David S. Sedney. Reasons 1.4 (b/d) Summary -------------- ¶1. (C) Beijing is worried that the situation in Nepal is deteriorating, and believes that civil war is "an immediate possibility," Vice Foreign Minister Wu Dawei told the CDA April 24. After requesting the meeting to share PRC concerns over the deteriorating situation in Nepal and ask for U.S. views, Wu stressed China supports dialogue between the "constitutional forces" as the only way to resolve the situation. Wryly noting China's policy of non-intervention in domestic affairs, Wu said he has begun thinking about PRC options in the event of a civil war. He pressed for close consultations and, where possible, cooperation between the United States and China to help return stability in Nepal. End Summary. ¶2. (C) After requesting a meeting with the CDA on short notice on April 25, a visibly worried VFM Wu questioned the CDA on U.S. views of Maoist participation in Nepal's constitutional assembly, support for the monarchy in the future and on the four point demands of the Seven Party Alliance. Wu stated that Nepal's King is very anxious over the future of the monarchy and that survival of the monarchy, in some form, is King Gyanendra's key concern in the ongoing negotiations. ¶3. (C) Drawing from refs, the CDA stated that the United States values the cooperation and exchanges it has with China on the Nepal situation. The CDA agreed the siuation is turbulent and dynamic with the real potential for rapid deterioration if the King and the Seven-Party Alliance do not reach agreement soon. The CDA stressed it is vital that the King and the Seven-Party Alliance reach agreement on returning power to the people of Nepal as soon as possible to reduce the likelihood of the Maoists seizing power and asked Wu that China urge the King to come to an agreement. The United States is not calling for the end of the monarchy, the CDA said, but is calling for the King to make fundamental changes in the government to allow Nepal to regain stability. The CDA told Wu that once the King and the Seven Parties reach agreement, it will be important for the international community, especially the key countries, India, China, the United States and the United Kingdom, to move quickly to offer all possible support. ¶4. (C) Wu told the CDA that immediately before their meeting he had met with the Indian Ambassador, who did not seem worried, thought things would work out and did not think the chances were high that Nepal faces a civil war. Wu and the CDA agreed that China and the United States are closer to each other on this question than to India. Wu said that India is likely to play a larger role than China in helping to resolve the Nepal crisis. ¶5. (C) Pointing out that China and Nepal share a long border, VFM Wu stated that China does not want to interfere in Nepal's internal issues but at the same time does not want the situation to worsen. He stated Beijing hopes all sides keep in close contact and noted the close cooperation between the U.S Embassy and China's Embassy in Nepal. Calling for joint efforts to help stabilize the region, Wu stressed the importance of close cooperation in Beijing and Washington to help find a way to resolve the issue. SEDNEY