MEDIA REACTION: U.S.-CHINA RELATIONS AND SOUTH ASIA

UNCLAS KATHMANDU 001089



STATE FOR SCA/INSB, PM/CBM, PM/PRO



STATE FOR SCA/PPD, PA/RRU



SIPDIS



E.O. 12958 N/A

TAGS: KMDR, KPAO, PGOV, OPRC, NP

SUBJ: MEDIA REACTION: U.S.-CHINA RELATIONS AND SOUTH

ASIA



1. SUMMARY: Nepal's largest vernacular daily

"Kantipur", with a circulation of 150,000, ran an

op-ed piece in its November 30, 2009 edition about

U.S.-China relations after President Obama's China

visit. The piece entitled "Changed Balance of Power

in South Asia", written by Nepal's former Foreign

Minister Ramesh Nath Pandey, opined that the new

understanding between the U.S. and China would

change the regional power balance in South Asia.



TRANSLATED EXCERPTS:



2. "The problems of growing internal terrorism in

India, the threat of Taliban control in Pakistan,

Sri Lanka's direction towards instating military

rule, growing Islamic extremism in Bangladesh, and

more than 40 active armed groups in Nepal, have made

South Asia like a volcano about to explode. In this

context, there has been an agreement between the

U.S. and China to change South Asia's regional power

structure and the balance of power."



3. "Obama's recent visit to China came at a time

when Indo-China relations are at its worst after

1962 and U.S.-China relations are at its best. A

joint statement issued by the two presidents after

the visit mentions three important points: both

countries are for stability and peace in South Asia,

the U.S. and China agree to improve India-Pakistan

relations, and the U.S. and China have agreed to

work together to achieve peace, stability and

development in South Asia, in addition to stronger

communication between the two countries. This is

proof that a meaningful strategic agreement has been

reached between the U.S. and China. The willingness

shown by the U.S. to give China a decisive role has

a far-reaching effect as this has changed the

balance of power in South Asia."



4. "New Delhi immediately voiced its concern. A

regional strategic partner of the U.S. during the

Bush administration, it was obvious India would be

unhappy with Obama Administration's move to have

China as its regional strategic partner. "



5. "Even though the two countries have reached an

agreement regarding South Asia, in the global arena

it cannot be denied that the U.S. and China are

competing to be world leaders. What effect this

competition will have on India's relationship with

China and the U.S., and the strategic involvement of

India, China, and the U.S. in Nepal, is yet to be

seen. "



6. "Since the U.S. will always actively seek an

opportunity to weaken China in its long-term

strategic interests, there will be increased U.S.

involvement in Nepal focusing on China. As China

has agreed with the U.S. to take a more active role

in South Asia, India will also start to increase its

influence in Nepal."





BERRY