HMGN REPORTS SUPPORT FOR U.S. OBSERVER STATUS IN

C O N F I D E N T I A L KATHMANDU 000964 SIPDIS SIPDIS DEPT FOR SA/INS E.O. 12958: DECL: 04/13/2016 TAGS: PREL XD NP SUBJECT: HMGN REPORTS SUPPORT FOR U.S. OBSERVER STATUS IN SAARC, AFTER EMBASSY WEIGHS IN ON REPORTED NEPALI ATTEMPT TO BLOCK IT REF: KATHMANDU 791 Classified By: Ambassador James F. Moriarty, reasons 1.4 (b/d). NEPAL ATTEMPTS TO BLOCK U.S. OBSERVER STATUS -------------- ¶1. (C) During an April 11 conversation on other subjects with the Ambassador, Indian Ambassador Shiv Mukherjee mentioned that GOI reports from the ongoing South Asian Association for Regional Cooperation (SAARC) sub-ministerial meeting in Dhaka indicated that the Nepal delegation was actively opposing the U.S. application for SAARC observer status. In response, A/DCM called Acting Foreign Secretary Dinesh Bhattarai later that day (both the Foreign Minister and the Acting Foreign Secretary were out of the country, the latter leading the Nepali delegation in Dhaka). A/DCM noted that the U.S. had received a report that Nepal was seeking to block U.S. observer status in SAARC, adding that the USG would take it very poorly if this turned out to be true. A/DCM encouraged His Majesty's Government of Nepal (HMGN) to take the long view: the U.S. had been Nepal's friend for many years and expected to be so for years to come. It would be short-sighted of HMGN to prevent the U.S. from playing a helpful role vis-a-vis SAARC. Bhattarai expressed surprise and said he had received no reports from the Dhaka meeting, but added he would contact the Nepali delegation in Dhaka immediately. He also assured A/DCM of his personal agreement with A/DCM's comments. ... BUT SAYS U.S. OBSERVER STATUS SHOULD BE ACCEPTED -------------- -------------- ¶2. (C) On April 12 Bhattarai called A/DCM to say that he had received a "very encouraging" report from Dhaka. There was, he continued, "consensus" among SAARC members that the U.S. application for observer status should be accepted. Bhattarai added that he had been "discomfited" by A/DCM's message of the previous day and he hoped it had been nothing more than a "misunderstanding." (Note: The Acting Foreign Secretary never actually denied the accuracy of our initial SIPDIS message.) COMMENT -------------- ¶3. (C) It would be interesting to obtain confirmation of Ambassador Mukherjee's initial report. Nepal, having taken the lead in promoting SAARC observer status for China, reportedly led an unsuccessful effort to block Japan's subsequent bid for the same status. We suspect this episode may represent another misguided foray by King Gyanendra into power diplomacy, but would welcome any information other SAARC member embassies may be able to glean on the subject. MORIARTY