This record is a partial extract of the original cable. The full text of the original cable is not available.

S E C R E T SECTION 01 OF 02 KATHMANDU 000731 
 
SIPDIS 
 
LONDON FOR POL/RIEDEL 
NSC FOR MORIARTY 
 
E.O. 12958: DECL: 04/11/2012 
TAGS: PREL PTER PGOV PHUM PREL PINR NP
SUBJECT: PM DEUBA ON THE CURRENT CRISIS: WORRIED, BUT 
POSITIVE 
 
REF: A. KATHMANDU 710 
     ¶B. STATE 63807 
     ¶C. KATHMANDU 708 
     ¶D. KATHMANDU 672 
 
Classified By: AMBASSADOR MICHAEL E. MALINOWSKI, REASONS 1.5(B),(D) 
 
¶1. (S) Summary.  Prime Minister Deuba expressed gratitude for 
international assistance to Nepal during an April 12 meeting 
with U.S. and U.K. Ambassadors.  To continue recent "positive 
steps," Deuba was hopeful that a White House meeting could be 
arranged during his upcoming visit to the U.S.  Reviewing 
developments overnight, Deuba confirmed a Maoist attack on 
security forces in western Nepal and that India had 
extradited eight suspected Maoists to Nepal.  Deuba hopes 
India will "talk sense" to visiting former Prime Minister 
Koirala, and added that he had not approved a meeting between 
Koirala and Maoist representatives.  Deuba continues to worry 
about efforts by Koirala to unseat him.  The PM enjoys good 
relations with the King, who took pains to assure him of 
Palace support for democracy.  Nepal's National Security 
Council is now operational; next, Deuba hopes to 
institutionalize ways of combating public corruption.  Post 
concludes that high-profile exposure during Deuba's upcoming 
trip to the U.S. will help him both fend off spoilers and 
crystallize international support.  End Summary. 
 
Deuba Grateful for Foreign Assistance 
------------------------------------- 
 
¶2. (C) Ambassador and UK Ambassador Ronald Nash breakfasted 
with Prime Minister Sher Bahadur Deuba at the British 
residence April 12.  Reviewing the current situation in 
Nepal, Deuba judged that "not all things are bad."  He 
expressed great gratitude for the support he had received 
from the U.S. and British governments, and specifically 
acknowledged the presence in country of the U.S. military's 
PACOM assessment team and a team from the U.S. National 
Guard.  Deuba appreciated that Assistant Secretary Rocca had 
included Nepal on the agenda in her recent talks in New 
Delhi.  He also referred to helpful statements made by the 
U.K. State Minister when he had come through Kathmandu 
recently.  Nepal's Foreign Secretary had just concluded good 
talks in Washington (Ref B) and London, and would travel to 
Moscow in coming weeks.  The PM's own recent visit to Delhi 
had gone well, he judged.  Prime Minister Deuba hopes he can 
travel to Washington to meet with the President in May, with 
the aim of building on what he termed "positive steps" in the 
bilateral relationship and the struggle against terrorism 
(Ref C). 
 
Maoists Continue Attacks, Target Infrastructure 
--------------------------------------------- -- 
 
¶4. (C) Deuba related that casualties would be high in an 
April 11 series of attacks when Maoists overran two police 
posts in western Nepal's Dang district (Septel).  Nepal's 
security forces are stretched thin due to the need to guard 
the country's infrastructure, which the Maoists continue to 
attack, Deuba said. 
 
India Turns Over Maoists 
------------------------ 
 
¶5. (S) Confirming press reports on India's hand-over of eight 
wounded Maoists to Nepal, Deuba noted that the Indians had 
acted on information provided by Kathmandu (Septel).  Deuba 
described the Maoists as low-level.  (Note:  At a 
U.S.-sponsored reception April 11, Chief of Army Staff Rana 
also made this claim to Ambassador.)  (We note this is the 
first such action on India's part, and may have been the 
result of the series of U.S., U.K., and Nepalese visits to 
New Delhi.) 
 
Koirala to India 
---------------- 
 
¶6. (C) Deuba hopes the Indians can "talk some sense" into 
former Prime Minister G.P. Koirala during Koirala's upcoming 
visit to India (Ref A).  Asked by Ambassador about rumored 
plans for a meeting in India between Koirala and Maoist 
leader Baburam Bhattarai, Deuba replied that he had not 
authorized talks between the former PM and the Maoists. 
(Note:  COAS Rana told Ambassador April 11 that the Royal 
Nepalese Army (RNA) had caught wind of plans for a 
Koirala-Bhattarai meeting in India, and would have Koirala 
under surveillance during his trip in order, presumably, to 
discredit the former PM.  End Note.) 
 
Former PM's Shadow 
------------------ 
 
¶7. (C) Deuba stated that G.P. Koirala continues to try to 
oust him (Ref A).  Deuba is "quite worried" about this.  He 
sees option in dissolving the government and calling for new 
elections to give him six more months, at least.  The 
Ambassadors asked the Prime Minister whether elections could 
be held under current security conditions, pointed out the 
added expense to an already-strapped treasury, and that an 
election would further stretch Nepal's security assets. 
 
Opposition Aiming for 7-10 Split 
-------------------------------- 
 
¶8. (C) Deuba does not think the main opposition party, 
CPN-UML, is working to unseat him at this time.  Rather, the 
opposition seeks to fragment the ruling Nepali Congress Party 
(NCP).  After Deuba was unseated by G.P. Koirala in 1997, 
CNP-UML leader Madhav Nepal approached him about joining 
forces.  Deuba had declined. 
 
Relations with King 
------------------- 
 
¶9. (C) The PM's visit to western Nepal with the King and the 
COAS (Ref D) had been "positive" and had boosted morale, 
Deuba said.  He added that his relations with the King are 
good, though he understood that Koirala had problems with the 
current King.  The King had assured Deuba that he supports 
the present democratic system. 
 
Pending Security Measures 
------------------------- 
 
¶10. (C) Deuba told the Ambassadors he had called an all-party 
meeting for April 15 to discuss ways of heading off the 
upcoming general strike, or "bandh," scheduled for April 
23-27.  He plans to hold political rallies and similar events 
to get people into the streets.  The PM also pointed out that 
Nepal's newly formed National Security Council had begun to 
function.  One of the NSC's functions is to investigate human 
rights abuses, he noted, and the head of the NSC himself will 
handle the human rights portfolio. 
 
New Measure to Control Endemic Corruption 
----------------------------------------- 
 
¶11. (C) Asked about corruption in his administration, Deuba 
stated that he knew that at least half of his cabinet members 
were corrupt, but his government would fall if he moved to 
get rid of them.  A survey of office-holders' property was 
underway; this would be used as a benchmark later on to see 
who had acquired substantial property during their term of 
office.  Deuba also noted that a new anti-corruption bill had 
been passed by the lower house of Parliament.  (Note:  A vote 
in the upper house could come as early as the evening of 
April 12, the Parliament Secretariat told us.) 
 
Comment 
------- 
 
¶12. (C) During breakfast, Deuba's obvious pleasure at growing 
international support for Nepal and India's cooperation in 
the return of the wounded Maoists was tempered by his 
distress over the overnight attacks in western Nepal. 
Although his position looks secure for now (Ref A), he faces 
enormous challenges in the days to come.  Meetings at the 
highest level in Washington will raise his standing both at 
home and abroad and ensure a measure of continuity as Nepal 
grapples with the increasingly menacing Maoist insurgency. 
MALINOWSKI