NEPAL'S PRIME MINISTER AGREES TO RESETTLE

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000317

SIPDIS

SIPDIS

E.O. 12958: DECL: 02/07/2017
TAGS: PREF PREL PGOV PHUM CH BT NP
SUBJECT: NEPAL'S PRIME MINISTER AGREES TO RESETTLE
BHUTANESE REFUGEES, WORRIES ABOUT TERAI

REF: 02/02/07 HARRIS-KAPLAN E-MAIL

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

Summary
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1. (C) In a February 7 meeting with Ambassador Moriarty,
Prime Minister Girija Prasad Koirala agreed to allow
third-country resettlement of Bhutanese refugees. On the
ongoing violence in the Terai, the Ambassador encouraged the
Prime Minister to both initiate a dialogue with all ethnic
minorities and provide immediate and specific offers to the
Madhesi groups. While stressing the need to maintain Nepal's
"national integrity," the PM's Foreign Policy Advisor, Dr.
Suresh Chalise, actively engaged the Ambassador on the
specifics of a national dialogue, including the need for it
to be an open forum for all groups, not just the Madhesis.
The PM reiterated his position on ensuring that Maoist
combatants' arms were locked up at cantonment sites before
formation of an interim government. PM Koirala denied press
reports that he had agreed to a Maoist Deputy Prime Minister
and said he would like to appoint two or three deputies with
the most senior one from his own Nepali Congress party.

Yes to Resettlement of Bhutanese Refugees
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2. (SBU) On February 7, the Ambassador delivered Assistant
Secretary for Population, Refugees and Migration (PRM)

SIPDIS
Sauerbrey's letter (ref) to the Prime Minister requesting the
Government of Nepal's permission to begin planning a
large-scale U.S. resettlement program for Bhutanese refugees.
The Ambassador also handed over a copy of the PRM fact
sheet. The Prime Minister gave his assent, saying "there is
no problem for those (refugees) that want to go (for
resettlement)." The Ambassador thanked the PM for moving
forward with a solution for the refugees.

Tibetan Follow-to-Join Cases
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3. (C) The Ambassador raised the need to allow the 180
Tibetan asylee follow-to-join cases to depart Nepal and
rejoin their families in the U.S. The PM noted he was under
heavy pressure from the People's Republic of China (PRC) to
prevent resettlement and suggested that perhaps small numbers
could leave at a time. The Prime Minister's Foreign Policy
Advisor Dr. Chalise asked about the possibility of sending
the Tibetans to India as currently done with new Tibetan
arrivals and then transporting them to the U.S. from there.
The Ambassador agreed to explore that possibility.

Need To Give the Madhesis Something ...
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4. (C) Discussion in the meeting centered largely around the
ongoing violence in the Terai lowlands, and how the
Government of Nepal (GON) should respond. The PM admitted
his health was poor due to sleepless nights worrying about
the Madhesi problem. The Ambassador sympathized with the
difficult decisions facing the PM and described the need for
an inclusive process. Chalise emphasized the importance of
maintaining Nepal's national integrity, but acknowledged that
a federal structure and proportional electoral constituencies
would likely address the Madhesis' demands. The Ambassador
replied that, if the government were only to address the
Madhesis' demands, it would soon face a rolling series of
demands from various marginalized groups. The national pie
was not large enough to meet fully all the demands of each
minority group, he added, and compromise would be required.
Both the Foreign Policy Advisor and the Ambassador agreed
that the government needed to offer something immediate and
specific to the Madhesis, such as compensation for victims
and apologies for the shooting of protesters, in order to
forestall continued violence.

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... But Leave Room For More Inclusive Dialogue
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5. (C) PM Koirala said "I am ready to talk to anyone who is
interested." The Ambassador urged that the government should
provide specific dates and places for these discussions and
that the discussion should center on two issues: how the
Constituent Assembly (CA) would be elected and how the CA
would work once it was established. Chalise commented that
the PM was thinking of addressing the nation for a second
time and asked the Ambassador for his thoughts on how a
national dialogue might be initiated. The Ambassador replied
that the PM should steer away from forming another government
committee to examine the issues, but rather call for an open
forum that would allow all ethnic groups a voice in
determining the form and functioning of the CA. Chalise
enthusiastically endorsed this concept. The Foreign Policy
Advisor suggested that the government and political parties
could nominate participants, but that the forum could remain
open to include anyone from civil society and ethnic groups.

No Interim Government Until Arms Management Is Completed
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6. (C) The Ambassador stressed the importance of completing
arms management before allowing Maoists to participate in an
interim government. PM Koirala voiced his agreement, as did
Chalise, who said that the GON would not move on formation of
an interim government until the UN had certified that arms
management was completed and successful. The Ambassador
doubted that a formal UN certification would be forthcoming,
although he believed the UN understood the need to keep the
arms management process going until the Maoists had turned in
the bulk of the 3,500 weapons seized from security forces.
He urged the PM to stand firm on this issue and promised U.S.
support.

Maoist Deputy Prime Minister Will Be Junior One
-------------- --


7. (C) The Ambassador expressed serious reservations about
the rumored appointment of a Maoist as Deputy Prime Minister.
If such a move allowed the Maoists to gain control of the
Prime Minister position, they would never let it go, he
stated. The PM claimed that he had never agreed to having a
Maoist as his senior-most deputy; the issue was still under
discussion. He said he would like to appoint two or three
Deputy PMs, with the most senior one coming from the ranks of
his own Nepali Congress party. Chalise assured the
Ambassador that the PM was aware of the dangers posed by a
senior Maoist Deputy PM.

Comment
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8. (C) The Prime Minister's verbal commitment to allow
third-country resettlement of Bhutanese refugees comes as a
wonderful surprise. Post is eager to work with the
Department on issuing a "Request For Proposals" to establish
an Overseas Processing Entity as soon as possible. While
Koirala's interest in initiating a national dialogue is
encouraging, he seems uncertain how to proceed. His
challenge is to find a way that satisfies pressing Madhesi
demands but still leaves enough political space for the
inclusion of other ethnic and minority groups in the final
process. Whether the PM is ready to make a second nationwide
address in another attempt to resolve the ongoing unrest in
the Terai is far from clear. Unless he moves quickly to
offer something concrete to the Madhesis, however, the
violence in the troubled border region will continue and
could easily worsen and spread.
MORIARTY