MEA KRISHNA HONORS BHUTAN WITH FIRST VISIT ABROAD

UNCLAS NEW DELHI 001333

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SUBJECT: MEA KRISHNA HONORS BHUTAN WITH FIRST VISIT ABROAD


1. (U) Summary. India's newly-appointed Minister for
External Affairs S.M. Krishna visited Bhutan June 18-20,
marking his first trip abroad after assuming power. Krishna
met with the current and former kings, Prime Minister Jigmi
Thinley, and other officials to reaffirm the close
relationship between the world's youngest and largest
democracies. According to the Bhutanese Embassy in New
Delhi, collaboration on hydropower projects topped the
agenda, but Krishna underscored the importance of expanding
bilateral ties beyond energy cooperation. He made good on
this promise by signing a memorandum of understanding
allocating USD one million for a Nehru-Wangchuk scholarship
program for Bhutanese students to study in India. While the
Political Counselor Tenzin Rondel Wangchuck characterized the
trip as a "routine goodwill visit," he noted the Foreign
Minister's decision to make Bhutan his first official
destination "speaks volumes." On June 30, Bhutanese Prime
Minister Thinley will return the favor when he visits India
as the first head of state after the newly reelected UPA
government took office. End Summary.


2. (U) S.M. Krishna, along with Foreign Secretary Shivshankar
Menon, made his maiden voyage as External Affairs Minister to
Bhutan June 18-20. The Royal Government of Bhutan (RGOB)
greeted the delegation with appropriate pomp, which confirmed
that India remains its closest and most trusted ally. During
a luncheon meeting with 29-year-old King of Bhutan, Jigme
Khesar Namgyel Wangchuk, Krishna referred to Bhutan as "the
kingdom of happiness" and reiterated India's continued
support for development in the tiny Himalayan nation. India
has already donated approximately USD 285 million to Bhutan's
Tenth Five-Year Plan (2008-2013),which broadly outlined the
country's social and economic development strategy. Krishna
reconfirmed India's commitment to providing resources to
establish a hospital on par with the All India Institute of
Medical Services in New Delhi.


3. (U) The Bhutanese Embassy confirmed there was no change in
the target for exportable energy to India, which was set at
10,000 megawatts by 2020 during a visit of Prime Minister
Singh in 2008. Political Counselor Wangchuck admitted the
target was already "too ambitious," but emphasized both
governments are working "vigorously" to ensure the deadline
is met. Media outlets reported that Thimphu plans to
increase its involvement in future power projects: the Indian
government pledged to contribute 60 percent of the funds and
Bhutan will cover the rest.


4. (U) Krishna and his counterpart, Foreign Minister Lyonpo
Ugyen Tshering, signed a memorandum of understanding for the
Nehru-Wangchuk scholarship program. The program was already
incorporated into the Tenth Five Year Plan and allocated USD
one million to enable Bhutanese students to study in Indian
universities at the graduate and postgraduate level. Krishna
commented the program recalls "the indelible legacy of
Jawaharlal Nehru and the legendary role of the Wangchuk
dynasty."


5. (SBU) During a joint press conference on June 20, an
Indian journalist asked Bhutanese Foreign Minister Tshering
if the United Liberation Front of Asom (ULFA) was camped
within the borders of Bhutan, generating headlines in both
countries. Indian media had reported a possible reemergence
of the separatist group along Bhutan's border with the
northeastern Indian state of Assam. India and Bhutan had
successfully conducted joint operations in 2003 to destroy
ULFA camps on the Bhutan side of the border. Tshering
responded, "we don't have any ULFA cadets here and our own
knowledge of our country has not indicated that there's a
presence here." Indian Foreign Secretary Menon confirmed
that the Indian government is "fully satisfied" with the
RGOB's assurances. The Bhutanese Political Counselor
dismissed the "sensational" Indian journalist who posed the
question, remarking "I'm sure that guy was from the
Northeast."
BURLEIGH