Identifier
Created
Classification
Origin
06KATHMANDU2028
2006-07-28 11:09:00
CONFIDENTIAL
Embassy Kathmandu
Cable title:
PRC VFM SAYS CHINA AND THE U.S. SHARE A COMMON
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C O N F I D E N T I A L KATHMANDU 002028
SIPDIS
SIPDIS
E.O. 12958: DECL: 07/28/2016
TAGS: PREL CH NP
SUBJECT: PRC VFM SAYS CHINA AND THE U.S. SHARE A COMMON
GOAL FOR NEPAL
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
SUMMARY
-------
C O N F I D E N T I A L KATHMANDU 002028
SIPDIS
SIPDIS
E.O. 12958: DECL: 07/28/2016
TAGS: PREL CH NP
SUBJECT: PRC VFM SAYS CHINA AND THE U.S. SHARE A COMMON
GOAL FOR NEPAL
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
SUMMARY
--------------
1. (C) In a July 27 meeting with PRC visiting Vice Foreign
Minister Wu Tawei, Ambassador Moriarty stressed the
importance of a unified approach to the Maoist issue in
Nepal. Wu shared the Ambassador's perspective that the PRC
and the U.S. must work together to assist Nepal during this
time of transition. He agreed that the Maoists should give
up their arms and renounce violence before joining the
government. Wu also stated that the PRC would be increasing
aid to Nepal by USD 30 million. End Summary.
INCREASE IN PRC AID TO NEPAL
--------------
2. (C) Vice Foreign Minister Wu confirmed that his visit to
Nepal was to discuss ways for China to assist the new
government. He disclosed that the Chinese government would
provide 200 million RMB (USD 25 million) to the Government of
Nepal (GON) in the form of concessional loans subsidized to a
zero percent interest rate. Liang Xiang, the Assistant
President of the China Import Export Bank, accompanied Wu on
the trip and attended the meeting. Wu added that the PRC
would also provide 40 million RMB (USD 5 million) additional
grant assistance above its existing 80 million RMB (USD 10
million) annual grant for economic and technical projects.
Wu was interested in hearing concrete proposals from the GON
for the loan money.
STRATEGIC AND UNIFIED GOAL
--------------
3. (C) Wu expressed concern that the poor track record of
previous Nepali governments might continue in the future; he
acknowledged, however, that Nepal had considerable economic
potential, if the political situation stabilized. He
strongly agreed with Ambassador Moriarty that the Maoists
must give up arms and violence before joining the government.
Wu stated that the Chinese Government has had an official
policy of no contact with the Maoists, but lamented that the
Government of India seemed to be cultivating the Maoists.
The Ambassador pointed out that there were many factors
complicating New Delhi's Nepal policy but that the GOI
clearly recognized the danger a Maoist-controlled Nepal would
represent to India. Wu agreed that China, India and the U.S.
shared a strategic interest and a common goal in seeking a
peaceful, prosperous and democratic Nepal. Wu also
acknowledged that India has the largest role to play in Nepal.
AN ACADEMIC, NOT THE PRC, WU PROCLAIMS
--------------
4. (C) Ambassador Moriarty pushed Wu on the recent comments
by well-known Chinese Nepal analyst Wang Hongwei, following
Wang's meeting with Maoist supremo Prachanda. The Ambassador
noted with concern Wang's assertion that the U.S. was
pursuing its own vested interests in labeling the Maoists as
a terrorist organization. Wu and Ambassador Sun Heping were
anxious to thoroughly disassociate the Chinese government
from Wang. Wu acted as though this was the first time he had
heard of Wang's comments. Wu emphasized that Wang worked for
the Chinese Academy of Social Sciences and not the Chinese
government or the Chinese Foreign Ministry.
COMMENT
--------------
5. (C) Wu seemed doubtful of the new GON's ability to bring a
lasting peace to Nepal or create stability on China's border.
That said, he seemed determined to try to reassure us that
Beijing has no interest in cutting a separate deal with the
Maoists and instead would be increasing its support for the
GON. We also assume that the delegation will be pushing the
GON and the seven-party alliance on Tibet-related issues.
MORIARTY
SIPDIS
SIPDIS
E.O. 12958: DECL: 07/28/2016
TAGS: PREL CH NP
SUBJECT: PRC VFM SAYS CHINA AND THE U.S. SHARE A COMMON
GOAL FOR NEPAL
Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).
SUMMARY
--------------
1. (C) In a July 27 meeting with PRC visiting Vice Foreign
Minister Wu Tawei, Ambassador Moriarty stressed the
importance of a unified approach to the Maoist issue in
Nepal. Wu shared the Ambassador's perspective that the PRC
and the U.S. must work together to assist Nepal during this
time of transition. He agreed that the Maoists should give
up their arms and renounce violence before joining the
government. Wu also stated that the PRC would be increasing
aid to Nepal by USD 30 million. End Summary.
INCREASE IN PRC AID TO NEPAL
--------------
2. (C) Vice Foreign Minister Wu confirmed that his visit to
Nepal was to discuss ways for China to assist the new
government. He disclosed that the Chinese government would
provide 200 million RMB (USD 25 million) to the Government of
Nepal (GON) in the form of concessional loans subsidized to a
zero percent interest rate. Liang Xiang, the Assistant
President of the China Import Export Bank, accompanied Wu on
the trip and attended the meeting. Wu added that the PRC
would also provide 40 million RMB (USD 5 million) additional
grant assistance above its existing 80 million RMB (USD 10
million) annual grant for economic and technical projects.
Wu was interested in hearing concrete proposals from the GON
for the loan money.
STRATEGIC AND UNIFIED GOAL
--------------
3. (C) Wu expressed concern that the poor track record of
previous Nepali governments might continue in the future; he
acknowledged, however, that Nepal had considerable economic
potential, if the political situation stabilized. He
strongly agreed with Ambassador Moriarty that the Maoists
must give up arms and violence before joining the government.
Wu stated that the Chinese Government has had an official
policy of no contact with the Maoists, but lamented that the
Government of India seemed to be cultivating the Maoists.
The Ambassador pointed out that there were many factors
complicating New Delhi's Nepal policy but that the GOI
clearly recognized the danger a Maoist-controlled Nepal would
represent to India. Wu agreed that China, India and the U.S.
shared a strategic interest and a common goal in seeking a
peaceful, prosperous and democratic Nepal. Wu also
acknowledged that India has the largest role to play in Nepal.
AN ACADEMIC, NOT THE PRC, WU PROCLAIMS
--------------
4. (C) Ambassador Moriarty pushed Wu on the recent comments
by well-known Chinese Nepal analyst Wang Hongwei, following
Wang's meeting with Maoist supremo Prachanda. The Ambassador
noted with concern Wang's assertion that the U.S. was
pursuing its own vested interests in labeling the Maoists as
a terrorist organization. Wu and Ambassador Sun Heping were
anxious to thoroughly disassociate the Chinese government
from Wang. Wu acted as though this was the first time he had
heard of Wang's comments. Wu emphasized that Wang worked for
the Chinese Academy of Social Sciences and not the Chinese
government or the Chinese Foreign Ministry.
COMMENT
--------------
5. (C) Wu seemed doubtful of the new GON's ability to bring a
lasting peace to Nepal or create stability on China's border.
That said, he seemed determined to try to reassure us that
Beijing has no interest in cutting a separate deal with the
Maoists and instead would be increasing its support for the
GON. We also assume that the delegation will be pushing the
GON and the seven-party alliance on Tibet-related issues.
MORIARTY