VISITING U.S. AMBASSADOR TO NEPAL URGES MOFA'S

C O N F I D E N T I A L SECTION 01 OF 02 TOKYO 001570 SIPDIS SIPDIS E.O. 12958: DECL: 03/22/2031 TAGS: PREL PROV PTER NP JA SUBJECT: VISITING U.S. AMBASSADOR TO NEPAL URGES MOFA'S CONTINUED COOPERATION ON STEPS TOWARD DEMOCRACY Classified By: Ambassador J. Thomas Schieffer. Reasons:1.4(b/d). ¶1. (C) Summary: Thanking Japan for its cooperation on Nepal, visiting U.S. Ambassador Moriarty stressed to his MOFA interlocutors on March 20 the importance of continued pressure on the King and political parties to cooperate on democratic reforms. MOFA underscored its support for U.S. policy in Nepal and desire to cooperate closely with the USG. Japan is prepared to use its ODA to support democracy and is considering how to best celebrate the 50th anniversary of Japan-Nepal relations under the current political circumstances. End Summary. Cooperation on Nepal -------------- ¶2. (C) During his March 20 visit to Japan, U.S. Ambassador to Nepal James Moriarty provided the U.S. assessment of the precarious political situation in Nepal and, in separate meetings, thanked MOFA Asian Affairs Bureau DG Kenichiro Sasae and Economic Cooperation Bureau DDG Kazuo Kodama for Japan's close cooperation. He underscored the importance of the international community's continued pressure on the King to move toward democracy while urging the political parties not to cooperate with the Maoist insurgents. DG Sasae and DDG Kodama each expressed their support for U.S. efforts in Nepal and stressed Japan's desire to cooperate with the United States. Japan Desires to be Helpful -------------- ¶3. (C) DG Sasae stated that Japan was taking a close look at its policy toward Nepal. While Japan would continue its economic assistance, Tokyo wants to make an effective contribution to help resolve the complicated political situation. Asked whether he thought there was any chance the Maoists would give up their armed struggle, Moriarty said there was currently no effective pressure on the rebels to do so. He noted the importance of the next several weeks as both the Maoists and the parties took advantage of favorable weather conditions to press their respective agendas. Exploring the issue further, Sasae asked whether steps toward democracy by the King would open the way to talks between the King and the parties on one side and the Maoists on the other. Moriarty said that a rapprochement between the King and the parties was a necessary but not sufficient condition with respect to addressing the Maoist insurgency. Unless cooperation between the King and the parties led at some point to an effective counter-insurgency strategy, the Maoists were unlikely to abandon their quest for power, Moriarty stated. ¶4. (C) Japan prefers not to interfere with another country's domestic political situation, DG Sasae observed, but the situation in Nepal has Tokyo greatly worried. Japan has begun to make public statements reflecting a harder line on the need to return to democracy. Even Nepal's ambassador in Japan has quietly encouraged MOFA to continue such statements, Sasae confided. Stressing that Japan wanted to be helpful, he asked for U.S. advice on what steps to take. Moriarty reiterated his thanks for Japanese cooperation. He emphasized the importance of continuing pressure on the King and staying in close contact with the United States as we try to get both the King and the parties to work together and against the Maoists. Using ODA -------------- ¶5. (C) DDG Kodama said Japan agreed with the U.S. position on the need for the King to reach out to the political parties and for the parties to engage the King. However, neither side has made a commitment to move forward. The King seems particularly stubborn, he observed. Kodama noted Japan's willingness to use its ODA to support democracy. While not overestimating the influence of ODA, he thought that as the top donor in Nepal, Japan should have some "room for maneuver" in close cooperation with the United States and TOKYO 00001570 002 OF 002 other interested countries. Noting that one of the principles of Japan's ODA was to support democracy, Kodama averred that if the Kathmandu government failed to move in the right direction, Tokyo might have to end its economic assistance. Therefore, Japan is taking a cautious approach on approving new assistance projects, he said. Moriarty observed that Japan's long history of altruistic assistance has created a favorable impression among the Nepalese and gave Japan influence that other countries do not enjoy. Caution Toward Anniversary Celebration -------------- ¶6. (C) Former Prime Minister Hashimoto has close relations with Nepal's royal family and wants to be helpful in promoting Japan's relations with Nepal, Kodama related. There is some thought that PM Hashimoto would visit Nepal in September, possibly in connection with the 50th anniversary of Japan-Nepal relations. However, Japan is evaluating the manner in which the anniversary should be celebrated in light of the complex political situation. ¶7. (U) Ambassador Moriarty has cleared this message. SCHIEFFER