NEPAL: MEETING LEAHY AMENDMENT CONDITIONS ON

C O N F I D E N T I A L SECTION 01 OF 04 KATHMANDU 001116

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/05/2017
TAGS: PREL PGOV PHUM KDEM NP
SUBJECT: NEPAL: MEETING LEAHY AMENDMENT CONDITIONS ON
HUMAN RIGHTS

REF: A. 05 KATHMANDU 1659

B. 05 KATHMANDU 1570

Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).

Introduction
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1. (C) There is a strong case for certifying that the
requirements of the Leahy Amendment for U.S. Foreign Military
Financing (FMF) have been met for Nepal given the significant
progress the Government of Nepal (GON) has made in restoring
human rights. Resumption of FMF is also in U.S. national
security interest given the importance of such assistance to
Nepal's democratic transition. The People's Movement and
restoration of Parliament in April 2006 marked the end of a
decade-long insurgency and launched a peace process that has
resulted in a major improvement in the human rights
situation. Expectations have been raised that long-standing
human rights issues, such as caste-, ethnic-, and
gender-based discrimination will be addressed. While many
challenges remain, Post assesses that the GON has met the
first and third of three Leahy Amendment conditions for
Nepal: restoration of civil liberties and movement toward a
clear timetable to restore multi-party democracy. In our
view, the GON has also begun good faith efforts to meet the
second condition: protection of human rights. Moreover,
continued withholding of FMF would hamper our ability to
respond to worst-case scenarios -- including a return to
conflict -- and limit our capacity to encourage a
professional Nepal Army committed to working under civilian
control.

Renewed Focus on Human Rights Since April 2006
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2. (SBU) The April 2006 People's Movement resulted in the
end of King Gyanendra's rule; a decade-long Maoist insurgency
gave way to a peace process intended to move Nepal toward
stability and democracy. The transition to peace has led to
significant improvements in the country's human rights
situation and public dialogue on important human rights
issues that lay at the root of the conflict, such as ethnic
and caste-based exclusion. All the agreements signed during
the course of negotiations over the past year, including the
Ceasefire Code of Conduct and the Comprehensive Peace
Agreement (CPA),have included human rights commitments. The
same is true of the Interim Constitution adopted in January

2007. The challenge will be implementing these commitments
and remedying past abuses. The new Ministry of Peace and
Reconstruction has also begun to formulate the terms of
reference for a truth and reconciliation commission.

Nepal Essentially Meets Leahy Conditions
--------------


3. (SBU) Based on our review of the Leahy Amendment, Post
assesses that the GON, including its security forces, has met
the first and third of the three Leahy Amendment conditions
for Nepal: restoration of civil liberties and movement
toward a clear timetable to restore multi-party democracy.
In our view, the GON has also begun good faith efforts to
meet the second criterion: protection of human rights.

First Criterion: Restored Civil Liberties
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4. (SBU) Since the April 2006 People's Movement, or Jana
Andolan II, and restoration of Parliament in April 2006, the
GON has made significant progress in restoring civil
liberties to Nepali citizens. Under the monarchy, the King
imposed extensive restrictions on civil rights, including
freedom of speech and the press, freedom of peaceful
association, and freedom of movement. When King Gyanendra
seized executive authority in February 2005, he imposed even
more severe restrictions on civil liberties. The King
dismissed multi-party government and arrested politicians,

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human rights defenders, student activists and journalists.
More than 3,000 persons were detained. A law imposed by the
King prohibited speech and publications that threatened the
sovereignty and integrity of the "Kingdom." Since the
reinstatement of Parliament, these restrictions have been
lifted. The GON has allowed freedom of speech, the press, and
association, and has placed no restrictions on movement,
academic activities or cultural events. The CPA reiterates
the GON's commitment to civil liberties, as does the Interim
Constitution. The only remaining restriction on movement
applies to certain senior officials who face allegations of
misconduct during the King's rule and the April People's
Movement.

Second Criterion: Protection of Human Rights
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5. (SBU) There has also been a significant improvement in
the GON's protection of human rights since the reinstatement
of Parliament and initiation of the peace process. Nepal's
security forces under King Gyanendra, particularly the then
Royal Nepalese Army, were accused of widespread human rights
abuses. Throughout 2005 and early 2006, the King
increasingly used excessive force to control peaceful
opposition. Torture, as well as disappearances, occurred
frequently. With the cessation of hostilities, security
force violations have reduced significantly. The Nepal Army
has been confined to its barracks (a condition of the
November 2006 Agreement on the Management of Arms and
Armies). An Army Bill adopted by the Parliament in September
2006 addresses internal reform of the Army, implements
measures to ensure adherence to human rights norms, and sets
up mechanisms for accountability. A Police Act is currently
being drafted. Both the NA and the Nepal Police (NP) have
established human rights cells down to the unit (brigade)
level to promote human rights and to investigate cases of
abuse. During 2006, the NA investigated 102 cases of abuse
involving 163 individuals.

Human Rights Protection Bodies Forming
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6. (C) The GON has generally permitted the National Human
Rights Commission and the Office of the UN's High
Commissioner for Human Rights (OHCHR) to make unannounced
visits to prisons and detainees in army and police custody.
A number of domestic and international human rights groups
operate without government restriction and are able to
investigate and publicize their findings. In May 2006, the
GON appointed a Commission of Inquiry to investigate human
rights violations committed during the April People's
Movement, and in early June 2006, the Home Ministry
established a Disappearances Committee. The Ministry of
Peace and Reconstruction, which was created April 1, 2007,
when the new Interim Government was established, has started
to formulate terms of reference for a truth and
reconciliation commission.

Human Rights Challenges Remain
--------------


7. (SBU) While the human rights situation has improved
markedly since the end of the insurgency, three fundamental
human rights challenges remain. First, human rights abuses,
including abduction, extortion, and forced recruitment,
primarily by Maoist and Maoist-affiliated groups such as the
Young Communist League (YCL),but also by ethnic extremists,
continue unabated across the countryside in direct violation
of the November peace accords. Second, there has not been
sufficient progress in investigating and remedying past
abuses by the security forces and the Maoists, including
disappearances. OHCHR has complained that the NA has not
been forthcoming with necessary records for investigation.
Ensuring that a truth and reconciliation process is
instituted and other human rights protection bodies are
operating and effective will be vital to this end as the
peace process proceeds. The National Human Rights

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Commission, which is currently without Commissioners due to
political party haggling, will also need to be re-energized.
Third, the GON has been ineffective in utilizing the NP and
APF to restore public order. The Police have been
ill-prepared and ill-equipped to provide security, resulting
in a law-and-order crisis and credible allegations of the use
of excessive force to quell violent protects in Nepal's Terai
region in early 2007. At the same time, the Police have
proven disinterested in responding to violations of the law
by Maoist organizations.

Third Criterion: Timetable for Multi-Party Democracy
-------------- --------------


8. (SBU) In November 2006, the governing Seven-Party
Alliance (SPA) and the Maoists signed the CPA followed by an
Agreement on the Management of Arms and Armies. The
agreements provided for the cessation of hostilities, the
cantonment of Maoist People's Liberation Army (PLA)
combatants, relegation of the Nepal Army to its barracks
under UN monitors, Constituent Assembly (CA) elections by
June 2007, and a national-level interim power sharing
arrangement between the SPA and the Maoists. Despite
continued Maoist violations of their commitments and violent
rioting in early 2007 by marginalized groups in Nepal's
southern Terai, significant progress has been made toward
achievement of these tasks. The Interim Constitution was
promulgated in January 2007. The NA has remained in its
barracks, and with UN assistance, over 30,000 Maoists have
been registered and placed in cantonments. A vetting process
to screen out non-combatants is expected to begin shortly.
An interim parliament and an interim cabinet were constituted
in January and April respectively, reflecting a power-sharing
arrangement between the SPA and the Maoists. The Constituent
Assembly election was delayed from June 2007 because of
political debate over an electoral system approach and
disruptions caused by Terai violence. However, the SPA and
the Maoists have agreed to hold the election by mid-December.
A credible CA election will mark the next milestone in
Nepal's road to multi-party democracy.

..... and the Case for a National Security Waiver
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9. (C) Despite this progress in the peace process, there
are few signs that the Maoists will participate responsibly
in a multi-party democracy. To date, their participation in
the peace process has appeared simply a tactic toward
reaching their ultimate goal of state domination; a return to
conflict cannot be ruled out. To the Maoists, the Nepal Army
is the primary obstacle in their path to power. Once their
first goal, a republic, is achieved, they are likely to focus
their efforts on weakening and dismembering the Nepal Army.
In recent months, Maoist leaders have called for downsizing
of, and integration of PLA combatants into, the NA. U.S. FMF
support will be vital to protect against a Maoist takeover
and encourage security sector reform efforts, ensuring a
professional Army committed to working under civilian
control. Security sector reform in turn will be a key
ingredient to put Nepal on a path to stability and democracy,
vital to protect U.S. interests in the region. FMF funding
would also assist in further preparing the Nepal Army to
participate in global peace operations. We hope to see the
number of troops contributed by Nepal to peacekeeping
operations, currently at 3,500, double or triple in the next
few years.

Comment
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10. (C) Nepal's peace process remains fragile and human
rights challenges continue. That said, Nepal has made
enormous strides since the end of the insurgency and
initiation of the peace process in April 2006. In our view,
the GON has met two of the three Leahy Amendment conditions
for FMF for Nepal and has begun good faith efforts to meet
the third. If it is not possible to certify that Nepal has

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met the Leahy conditions, we would recommend a national
security waiver. Now is the time to fully engage with Nepal
and bring all our resources to bear to assist with the
country's democratic transition. The provision of FMF to
Nepal is vital to provide us continued leverage with the GON
and Nepal Army to encourage progress on human rights
protection and security sector reform. Support to the NA
also ensures we are simultaneously preparing responsibly for
worst-case scenarios that would have a detrimental impact on
U.S. interests in the region.
MORIARTY