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

C O N F I D E N T I A L SECTION 01 OF 03 KATHMANDU 001938 
 
SIPDIS 
 
STATE FOR SA/INS 
LONDON FOR POL - RIEDEL 
 
E.O. 12958: DECL: 10/06/2012 
TAGS: PGOV NP GON
SUBJECT: NEPAL:  REACTIONS TO KING'S ASSUMPTION OF 
EXECUTIVE POWERS 
 
REF: (A) KATHMANDU 1932 
 
Classified By: DCM ROBERT K. BOGGS.  REASON:  1.5 (B,D). 
 
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SUMMARY 
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¶1.  (C)  After initially denouncing King Gyanendra's October 
4 assumption of executive power (Ref A) as unconstitutional, 
leaders of most political parties are still coming to grips 
with--and trying to assess how best to turn to their 
advantage--the monarch's action.  As of COB October 7, most 
party leaders had not yet officially decided whether or how 
to accept Gyanendra's invitation to propose members of a 
caretaker government.  A well-connected source with ties 
close to the Palace told the Ambassador October 7 that the 
King is increasingly confident, despite some initial 
demurring, that he will get the multi-partisan support and 
participation in the new Cabinet that he seeks.  Although 
extra police and security have been apparent on Kathmandu 
streets since October 5, public reation remains fairly 
measured--even positive.  Local press and police sources 
report that some former members of Prime Minister Sher 
Bahadur Deuba's Cabinet are under unofficial "house arrest." 
The Maoists, whom the King did not specifically invite to 
participate in the Cabinet, issued a press statement October 
5 condemning the monarch's move.  Embassy's press statement, 
to be released on an if-asked basis, follows in Para 8 below. 
 End summary. 
 
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CONSULTATION, BUT SO FAR NO CONSENSUS 
-------------------------------------- 
 
¶2.  (C)  Following his late-night dismissal of the government 
of Prime Minister Sher Bahadur Deuba and his assumption of 
executive powers October 4 (Ref A), King Gyanendra continues 
to meet with leaders of mainstream political parties to 
encourage their participation in a caretaker government. 
Although many of the parties have toned down the heated 
rhetoric of their initial reactions (both factions of the 
Nepali Congress had earlier termed the move "undemocratic" 
and "unconstitutional"), most mainstream parties were as of 
COB October 7 still assessing the King's action--and his 
invitation to nominate members to an interim Cabinet.  Sushil 
Koirala, General Secretary of the Nepali Congress (Koirala 
wing), told us that his party had many questions about the 
"modalities" of the proposed new government, i.e., whether 
the Cabinet could be reconstituted from the previous 
Parliament; whether the Cabinet or the King will exercise 
executive powers; and the extent of powers of the caretaker 
Prime Minister.  Both the National Democratic Party, which 
had initially welcomed the King's action, and the Communist 
Party of Nepal - United Marxist Leninist (UML) have not yet 
determined whether to accept the King's offer and nominate 
members to join the interim government.  Only former Prime 
Minister Deuba told the Ambassador on October 7 that he will 
not forward to the King nominations for the proposed interim 
government (septel). 
 
¶3.  (C)  Former Finance Minister Ram Sharan Mahat, now allied 
with the Nepali Congress (Koirala), told the Ambassador 
October 7 that his party, while still regarding the King's 
action as unconstitutional, realizes it must deal with the 
new reality the move presents.  The Nepali Congress is very 
concerned that "no further encroachment" upon the 
Constitution take place.  The new Cabinet should include 
members of political parties based on their representation in 
the previous Parliament, Mahat said.  Indeed, most of the 
Cabinet should be political figures, rather than technocrats, 
Mahat noted, citing Article 128 of the Constitution.  (Note: 
Article 128.2 stipulates that in the event of the dissolution 
of the Cabinet, "His Majesty shall constitute a new Council 
of Ministers consisting of representatives from the main 
political parties."  End note.) 
 
¶4.  (C)  The parties' apparent hesitation does not seem to be 
a matter of concern to the King.  Prabhakar Rana, a prominent 
businessman with close ties to the Palace, told the 
Ambassador October 7 that King Gyanendra is increasingly 
confident that he will get the multi-partisan support and 
participation he is seeking within the five-day limit he set 
in his October 4 speech (Ref A).  The King is not bargaining 
with the parties, Rana asserted, although he indicated the 
monarch may be reconsidering his precondition that new 
Cabinet members not stand in the next general election.  Rana 
also dismissed speculation that the King plans to fill the 
new interim government with aged hold-overs from the former 
Panchayat regime. 
 
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PUBLIC REACTION 
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¶5.  (SBU)  Although police and security forces have beefed up 
their presence along Kathmandu streets since October 5, 
public reaction to the King's announcement has been 
comparatively calm--even positive.  The Palace declared 
October 7 a government holiday; most people took the occasion 
to shop in preparation for the week-long Dasain holiday, 
which begins October 14.  The UML student union staged a 
peaceful protest October 6; other public demonstrations have 
been pro-Palace.  Members of the business community have told 
us they welcomed the King's move--some even going so far as 
to take out public advertisements applauding his action in 
local newspapers. 
 
¶6.  (C) According to police sources, at least two of former 
PM Deuba's Cabinet Ministers have been placed under 
unofficial house arrest.  Police are "guarding" the private 
homes of former Communications Minister Jaya Prakash Gupta 
and former Physical Works Minister Chiranjibi Wagle, both of 
whom have been summoned to appear before the Commission for 
the Investigation into the Abuse of Authority (CIAA), the 
autonomous anti-corruption body.  The police have told us 
that the order was passed down from sources in the Palace, 
rather than the Home Ministry.  There have been unconfirmed 
press reports that the homes of three other former 
ministers--Khum Bahadur Khadga (Home), Bal Bahadur K.C. 
(Civil Aviation), and Bijay Kumar Gachhadar (Water Resources) 
are under police surveillance as well.  Reflective of the 
many problems that he had with his erstwhile Cabinet 
colleagues, former Prime Minister Deuba told the Ambassador 
that he had "no problem if they were thrown in jail." 
 
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MAOISTS:  PREDICTABLE CONDEMNATION, BUT SO FAR NO ACTION 
--------------------------------------------- ------------ 
 
¶7.  (U)  On October 5 Maoist leader Prachanda issued a press 
statement condemning Gyanendra's action as a "baton" to 
"attack the fundamental rights of the people," part of an 
ongoing Palace conspiracy to undermine democracy.  Noting 
that the King's announcement made no mention of a solution to 
the "present civil war in the country," the Maoist statement 
urges all Nepalis to "launch a strong protest to sweep out 
the feudal, tyrannical despots forever."  Despite the fiery 
rhetoric, however, there have been no reports of increased 
Maoist activity or fresh schedules for general strikes, or 
"bandhs," issued since the King's October 4 speech. 
 
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EMBASSY STATEMENT 
------------------- 
 
¶8.  (U)  The Foreign Ministries in New Delhi and Beijing have 
already issued public statements regarding the King's action: 
 China's predictably non-committal and India's well-balanced 
and generally supportive.  We understand the EU may be 
weighing a joint statement. The Embassy prepared the 
following statement to be used on an if-asked basis with the 
Nepali and foreign press. 
 
--We consider it regrettable that the security situation 
prevented elections from being held as scheduled on November 
¶13. 
 
--As friends of Nepal, we view preservation of the 
constitutional monarchy and a multi-party democracy that 
respects all fundamental political and civil rights as 
crucial elements of any satisfactory resolution to this 
national crisis. 
--We note His Majesty's affirmation of his commitment to the 
Constitution and democracy. 
 
--We consider it imperative that free, fair and credible 
national and local elections be held as soon as feasible. 
 
--In this time of national crisis, we look to all Nepalis to 
accept the challenge before their country and contribute 
their vision and leadership to resolve the problems 
confronting their nation. 
 
End statement. 
 
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COMMENT 
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¶9.  (C) After initially condemning the King's move as 
unconstitutional, the largest political parties are clearly 
re-thinking their positions.  With the possible exception of 
former PM Deuba's Nepali Congress (Democratic), most parties 
seem to be reassessing their options and attempting to 
extract the most advantage possible from the new situation. 
The composition of the new Cabinet is very much a work in 
progress for both the King and the parties.  Despite the 
tough talk on both sides, we expect a signficant amount of 
accommodation will take place on the part of both the Palace 
and the parties in order to achieve a workable solution. 
 
 
 
 
MALINOWSKI