ASSISTANT SECRETARY BOUCHER REVIEWS SOUTH ASIAN

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 001702 SIPDIS SIPDIS E.O. 12958: DECL: 04/11/2017 TAGS: PGOV PREL PTER PHUM PINR PREF ECON ETRD AF NP, PK, CE, IN SUBJECT: ASSISTANT SECRETARY BOUCHER REVIEWS SOUTH ASIAN DEVELOPMENTS WITH FOREIGN SECRETARY MENON REF: A. SECSTATE 40440 ¶B. NEW DELHI 1486 Classified By: Political Counselor Ted Osius for reasons 1.4 (B,D) ¶1. (C) Summary: During a one hour meeting on April 5, Assistant Secretary for South and Central Asian Affairs Richard Boucher and Indian Foreign Secretary Shivshankar Menon reviewed political and economic developments with Pakistan, Nepal and Sri Lanka. When it comes to the region, New Delhi and Washington are largely pushing in the same direction. Septel reports their discussion on 123 negotiations. End Summary. Sri Lanka - Doubts on Devolution -------------- ¶2. (C) Assistant Secretary Boucher noted that during their just concluded meeting, Sri Lankan Foreign Minister Rajapaksa claimed that the Sri Lankan government was ready to present a "strong devolution proposal." The Assistant Secretary was skeptical, stating that he suspected that it has been considerably "watered down." Despite this, Rajapaksa assured the US that once the proposal was made public, the Sri Lankan government would be willing to discuss specific provisions and strengthen them. Boucher emphasized to Rajapaksa that the US has concerns about Sri Lanka's human rights performance. The US Embassy in Colombo had supplied the Sri Lankans with the names of 351 individuals who had "disappeared," or been abused but had not received a definitive response. The Sri Lankan government had promised to reiterate the code of conduct for law enforcement, however. ¶3. (C) Foreign Secretary Menon replied that New Delhi has also concluded that the devolution proposal has "gone downhill," and that a strong proposal was important for Sri Lankan credibility. Rajapaksa reportedly told Menon that Colombo realizes that it must do more work, especially regarding human rights, the treatment of refugees and civilian casualties. Nepal - Doubts About Maoists -------------- ¶4. (C) Assistant Secretary Boucher noted that the US government is "nervous" about the latest "lurch forward" towards a restoration of parliamentary democracy in Nepal. He pointed out that New Delhi has influence over events in the Terai and should also approach Prime Minister Koirala to be more active in resolving this issue. As regards the timing of upcoming elections, the US believes that "good is more important than quick," but much depends on the Nepalese Election Commission. ¶5. (C) Foreign Secretary Menon replied that he has received assurances from the government of Nepal (as have we) that it would start arresting Maoists who commit illegal acts. He noted that guns are an important issue for New Delhi, as there are many armed Maoists outside the camps who could intimidate the population and hurt the democratic process. If the elections are delayed, though, this will give the Maoists more time to compel people. Boucher countered that any delay would give the police and the parties more chance to get set up in the countryside. The Maoists, Menon pointed out, will enjoy no real credibility until there is a successful election. The Foreign Secretary agreed that the onus is on the Nepal Election Commission, which must be allowed to do its work, as the people of Nepal will not accept "foreign interference" in their internal affairs. Pakistan - On its Best Behavior -------------- NEW DELHI 00001702 002 OF 002 ¶6. (C) The Foreign Secretary was happy to report that there were no India/Pakistan fireworks at this year's SAARC summit. He credited this to the over three years of bilateral dialog that have taken place, stating that "SAARC is no longer the main show," and Pakistan no longer feels a need to posture at the summits. Menon confirmed that the Indian and Pakistani Foreign Secretaries will hold talks on the Siachen Glacier. While Islamabad has not told India directly, it has acknowledged indirectly by accepting SAARC's proposal for a multi-mode transport study that there is a need for "trade and transit" between Afghanistan and other countries, implying that it will allow India/Afghanistan trade to proceed through Pakistan at some undetermined point. Prospects for Genuine Regional Cooperation -------------- ¶7. (C) Foreign Secretary Menon confirmed that the SAARC countries are ready to cooperate on multilateral projects involving water, energy, flood control and the environment, and plan to put together specific proposals for the World Bank and other multilateral agencies that would involve cooperation between three or four countries on specific projects. Assistant Secretary Boucher replied that he sensed during the summit that the smaller South Asian countries are feeling a reflected pride in the rapid economic development of India and its increasing international importance, and had determined that this would given them greater status. Iran - The Uninvited Guest -------------- ¶8. (C) Assistant Secretary Boucher expressed US displeasure regarding Iran's acceptance at the SAARC summit as an observer for next year, saying "I wish you had not invited them." Menon replied that Iran was not at the summit at India's request, but had made its own approach to the organization requesting observer status. He maintained that he chaired the meeting that addressed the issue, and provided three minutes for any SAARC member to raise an objection, but was greeted with nothing but silence during the meeting when the request came up. ¶9. (C) When asked about the recently presented demarche regarding the activities of Iran's Bank Sepah (reftels), Menon replied that this bank has no branches in India and conducts no activities in the country and provided assurances that the Indian government has already taken steps to make sure that it cannot operate. India will soon provide a formal notification that it is in full compliance with UNSCR 1747, he concluded. Comment -------------- ¶10. (C) The Foreign Secretary went out of his way to emphasize areas of agreement between India and the U.S. on South Asian regional issues. He indicated that New Delhi is genuinely interested in working with Washington on the issues and was comfortable with US positions. It is also evident that SAARC is much less contentious than it used to be and that that smaller South Asian countries are more comfortable with India's strong influence in the region, especially in the economic arena, where trade with India is looking increasingly attractive. ¶11. (U) Assistant Secretary Boucher has cleared this message. ¶12. (U) Visit New Delhi's Classified Website: (http://www.state.sgov.gov/p/sa/newdelhi/) MULFORD