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