NEPAL'S PM READY TO DEAL WITH TERAI

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001530 SIPDIS SIPDIS E.O. 12958: DECL: 08/10/2017 TAGS: PREL PGOV PHUM KDEM NP SUBJECT: NEPAL'S PM READY TO DEAL WITH TERAI Classified By: Ambassador Nancy J. Powell. Reasons 1.4 (b/d). Summary -------------- ¶1. (C) At an August 10 meeting Prime Minister Koirala informed the Ambassador that he would be speaking later that day with leaders of the Madheshi People's Rights Forum (MPRF) and expected to reach an agreement on their demands. The PM stated that Indian government leaders were also ready to take positive action to improve the security situation in the Terai. The PM announced that the upcoming cabinet meeting would take decisions allowing refugee resettlement to proceed. Throughout the conversation the PM expressed great frustration with the Maoists. He also admitted that the Nepali Congress party (NC) still has quite a bit of work to do before the Constituent Assembly election. Possible Deal with the MPRF -------------- ¶2. (C) On August 10, Prime Minister (PM) Koirala informed the Ambassador that he would be speaking later that day with leaders of the Madheshi People's Rights Forum (MPRF) about their main demands. He expected to reach an agreement with the MPRF and was hopeful that he could get MPRF leader Mahendra Yadav to use his influence with others in the Terai. (Note: The PM did not indicate what the likely points of the agreement would be, but clearly stated that he could not accept the demand of some for the Terai to separate from Nepal. End Note.) The PM expressed disappointment with those in his own party, the Nepali Congress (NC),for not having gone in front of the people and engaged the population in the Terai as a counter to the MPRF and extremists. The PM indicated he had the support of the Maoists to reach agreement with the MPRF. Indians Ready to Crack Down -------------- ¶3. (C) PM Koirala stated that he had pressed the Indian Prime Minister, the Foreign Minister, and Bihari state government leaders for help in dealing with the situation in the Terai, particularly the problems caused by both factions of the Janatantrik Mukti Morcha (JTMM). He stated that the Indians had agreed to take action, including arresting members of the JTMM in India, provided progress is made between the GON and MPRF. As the PM indicated, such strong action by India would send a clear signal, and he believed Nepal could then deal with the weakened groups. Cabinet Will Address Refugee Issues -------------- ¶4. (C) The PM stated that the Bhutanese refugee issue was on the agenda at the upcoming Cabinet meeting and he expected the Cabinet to take decisions that would allow the resettlement process to move forward. He admitted that conflict between the Foreign Ministry and Labor Ministry had slowed down the process, but he was hopeful that agreement could now be reached. The PM also expressed the view that refugees to be resettled should stay in a separate location, hinting that would be better for their security. (Note: The concept of a separate camp for refugees applying for third-country resettlement has been discussed by Refcoord with UNHCR and the Ministry of Home Affairs and appears to be gaining traction. However, we do not want to delay processing until a new camp could be established. End note.) PM Koirala indicated he did not have any official knowledge of the recent incident in which a Tibetan refugee was sent back to Tibet, but the government would try to get more information about the case. (Note: The Embassy is investigating the case of Tsering Wangchen who was deported to Tibet on July 16. Our initial findings are being reported in a separate telegram. End Note.) The PM indicated Tibetan issues were especially sensitive at the moment because it is likely he would be traveling to China in the near future. KATHMANDU 00001530 002 OF 002 Frustration with Maoists -------------- ¶5. (C) Throughout the conversation, the PM expressed frustration with the Maoists' policies, as well as their lack of understanding of cabinet government, parliamentary politics, and democracy. The PM recognized that Pushpa Dahal (aka Prachanda) was under pressure by Maoist cadre, particularly the younger members, but thought Dahal needed to do a better job of keeping the party under control. If not, he thought Dahal would face more incidents of internal revolt or local actions such as the Maoist attack August 9 on the police post in Nuwakot District. When informed that the USG was considering having the Ambassador meet Maoist ministers, the PM immediately understood this would be "a little change". He acknowledged this was a matter for the U.S. to decide, but requested that nothing be done or said to encourage the Maoists. Nepali Congress Moving Slowly -------------- ¶6. (C) When the conversation turned to internal developments within the PM's party, the Nepali Congress, the PM conceded things moved slowly. The working group on candidate selection has been stymied by the delay in unification with the Nepali Congress-Democratic. Another working group has been discussing the party's platform, which would eventually be submitted to the Election Commission and then publicized. PM Koirala revealed that he has been under tremendous pressure regarding the issue of the monarchy, and it would have to be addressed in the platform. Comment -------------- ¶7. (C) The Prime Minister appeared to be in relatively good health. He expressed appreciation for U.S. aid to the flood victims and for offers of programming assistance on topics such as political transitions, affirmative action, or federalism and for the support for printing ballots that was announced separately. POWELL