AUSTRALIAN AMBASSADOR PLANS TO MEET WITH MAOISTS

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000176 SIPDIS SIPDIS E.O. 12958: DECL: 01/25/2017 TAGS: PREL PTER ECON ENRG EAID AS NP SUBJECT: AUSTRALIAN AMBASSADOR PLANS TO MEET WITH MAOISTS Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d) Summary -------------- ¶1. (C) Australian Ambassador Lade told Ambassador Moriarty January 24 that Canberra had authorized him to meet with the Maoists. He conceded that he had no illusions about the Maoists and acknowledged they were continuing their abuses. Nevertheless, the Government of Australia had interests in Nepal which would require Maoist support, or at least tolerance. Ambassador Lade cited the GOA's aid program and the Australian interest in the proposed West Seti hydroelectric project. Lade warned the Ambassador that he planned to invite Maoist MPs from the Interim Parliament as well as the top Maoist leaders to Australia's national day January 26. The Ambassador expressed regret about the GOA decision and reaffirmed that the United States planned to keep its contacts with the Maoists to a minimum, even after they joined the Interim Government. Australian Ambassador Authorized To Meet Maoists -------------- --- ¶2. (C) On January 24, Australian Ambassador Graeme Lade requested a meeting with the Ambassador to preview a change in his government's contact policy toward the Maoists. Canberra, he said, had authorized his Embassy to have contact with the Maoists now that they had entered the Interim Parliament and were poised to join an interim government. Ambassador Lade admitted to the Ambassador that he had no illusions that the Maoists had changed their goals or their behavior. He knew they continued to violate their peace commitments. However, Australia had interests in Nepal which needed to be protected, and it was Canberra's view that the only way to do so was to have contact with the Maoists. While Maoist approval might not be required, the Maoists would soon be in a position to spoil Australian programs and projects. Lade added that, because his Embassy was a two-person mission, he expected to have many of the contacts himself. Australian Interests On the Line -------------- ¶3. (C) Lade cited two principal Australian interests in Nepal. First, there was its relatively modest bilateral aid program which was concentrated in forestry and health. Second and more important, there was the proposed 750 Mw West Seti hydropower project. For this project especially, the Australian Ambassador was convinced Maoist buy-in was indispensable. (Note: The West Seti project is the largest hydropower project currently on the drawing board in Nepal. Nepal's total hydropower production at present is only 600 Mw. The Australian firm Broken Hill is reportedly close to lining up Chinese financing and Government of Nepal approval for the mega-project, which would sell power to India.) Australian Charm Campaign Starting -------------- ¶4. (C) Ambassador Lade informed the Ambassador that he had invited the two senior Maoist MPs from the Interim Parliament, Krishna Bahadur Mahara and Dev Gurung, to Australia's National Day celebration on January 26. Canberra had subsequently instructed him to add the two senior leaders of the Maoists, Maoist Supremo Prachanda and Dr. Baburam Bhattarai. The Ambassador expressed regret that the GOA had decided to end its policy of avoiding contact with the Maoists, especially in light of ongoing Maoist abuses. He told Ambassador Lade that a formal U.S. policy had not yet been adopted, but senior Washington officials had advised the Ambassador that he and the U.S. Embassy should keep those contacts to a minimum. The Ambassador stated that he expected that he would have almost no contact with Maoist ministers. When absolutely necessary, meetings would likely take place, but the U.S. Embassy would be represented at a lower level. The Ambassador thanked Ambassador Lade for KATHMANDU 00000176 002 OF 002 warning him in advance to expect Maoists at the Australian National Day. Comment -------------- ¶5. (C) As the Ambassador told the Australian envoy, the Maoists were not expecting such a warm welcome from Canberra so quickly. They will no doubt trumpet this invite as a symbol of their international respectability at a time when their deeds give little reason for such acclaim. In his defense, Lade cited a recent comment by Chief of Army Staff Katawal who said he understood Australia's need to protect its interests. That may be, but the Ambassador detected a strong desire by his Australian counterpart to soothe what sounded to him like a troubled conscience. MORIARTY