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