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
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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
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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
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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
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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
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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
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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
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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