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 02 KATHMANDU 001444 
 
SIPDIS 
 
DEPT FOR SA/INS 
 
E.O. 12958: DECL: 07/26/2014 
TAGS: PREL PGOV PINR BT NP
SUBJECT: NEPAL: STATE FOREIGN AFFAIRS MINISTER ON BHUTANESE 
 
REFUGEES, MAOISTS, UNGA 
 
REF: NEW DELHI 4544 
 
Classified By: Ambassador James F. Moriarty; Reasons 1.4 (b, d). 
 
¶1. (C)  SUMMARY: Nepal's State Foreign Affairs Minister Mahat 
told the Ambassador on July 26 that negotiations with the 
Maoists before the Maoists were serious would be fruitless. 
Mahat indicated that a critical RGOB had accepted the results 
of Nepal's criminal investigation of the 22 December 
Bhutanese refugee incident, but had remained inflexible on 
terms of repatriation.  In the meeting, Mahat indicated that 
Nepal will integrate some refugees.  At the same time, Mahat 
seemed to indicate that Nepal's tone with Bhutan in the 
bilateral discussion might become more firm.  Mahat is likely 
to lead Nepal's delegation to UNGA.  END SUMMARY. 
 
============================================= === 
MAOISTS DISMISSED REAL PEACE OVERTURES BEFORE... 
============================================= === 
 
¶2. (C)  Nepal's Minister of State for Foreign Affairs Prakash 
Sharan Mahat told the Ambassador on July 26 that premature 
negotiations with the Maoists would be a waste of time.  An 
animated Mahat, who has worked on the Maoist problem in 
several capacities, stated that the Maoists must feel 
pressure to make real concessions.  Previously, the 
government had been willing to offer just about anything for 
peace, even hugging their negotiators at the start of talks. 
Meanwhile, the Maoists used the desperation for peace to make 
tactical and strategic gains, abandoning agreements as soon 
as it suited their goals.  Now, the Maoists controlled much 
of the country by fear, and that fear was driving people to 
pursue peace at any cost.  (NOTE: Both of Mahat's homes, one 
in Bansbari, Kathmandu and one in Nuwakot District were 
destroyed by the Maoists.  END NOTE.) 
 
======================= 
GOB INFLEXIBLE ON TERMS 
======================= 
 
¶3. (C) Turning to the Bhutan-Nepal bilateral at SAARC, Mahat 
indicated that the Royal Government of Bhutan (RGOB) had 
finally responded to Nepal's report of the December 22 
incident in writing.  Despite all of the criticisms leveled 
at the investigation of the event in the letter, the RGOB 
would ultimately accept the results of the investigation. 
However, the RGOB seemed unwilling to accept the paragraph in 
the report that urged it to be flexible in its interpretation 
and application of Bhutanese law.  Still, Mahat indicated, at 
least a little progress had been made. 
 
¶4. (C) The GON had been flexible every step of the way, Mahat 
emphasized, even to the point of agreeing to take those 
refugees that are unwilling to return to Bhutan.  (NOTE: 
This is the first indication of Nepal's willingness to 
resettle refugees in Nepal.  Thus far, the GON has been 
unwilling to even discuss such a move, fearing that it might 
result in further RGOB intransigence.  END NOTE.)  Mahat 
hoped that the Bhutanese would show some flexibility as well. 
 Meanwhile, the pressure on the RGOB from the international 
community had helped move the process forward; in particular, 
further encouragement of the RGOB by India was needed. 
 
========= 
UNGA NOTE 
========= 
 
¶5. (C)  Mahat confirmed he was likely to lead Nepal's 
delegation to UNGA, although its composition remains unclear. 
 If it were possible, Mahat asked, he would very much like to 
meet with Under Secretary Grossman on the sidelines of the 
meeting.  "It's important we keep this dialogue open at as 
many levels as possible," Mahat stated. 
 
======= 
COMMENT 
======= 
 
¶6. (C) Mahat was unclear whether the GON would remove the 
offending paragraph from the report, although it seems 
likely.  Whether the GON will continue to allow the RGOB to 
set the pace of the bilateral process is less clear.  As an 
interesting example of what he termed Nepal's generosity with 
the GOB, Mahat pointedly emphasized that the GON has provided 
concessions to the RGOB - in the form of permission to Druk 
Air to fly a Delhi-Kathmandu-Thimpu route - despite the 
RGOB's intransigence in moving forward with repatriation. 
Although he was anything but explicit, that and his admission 
of a willingness to integrate refugees that do not want to 
return to Bhutan might indicate a new timbre to the 
negotiations between the two governments. 
 
=============== 
BIO INFORMATION 
=============== 
 
¶7. (U)  Prakash Sharan Mahat was appointed as Minister of 
State for Foreign Affairs on July 5. (Prime Minister Deuba 
holds the Minister of Foreign Affairs portfolio.)  He is also 
a member of the advisory group to the Federation of Nepalese 
Chambers of Commerce (FNCCI) and a member of the National 
General Committee of the Nepali Congress Party (Democratic). 
Previously, he served as an advisor to Prime Minister Sher 
Bahadur Deuba from July 2001 until October 2002 and as Member 
Secretary of the High Level Recommendation Commission for 
 
SIPDIS 
Resolution of the Maoist Problem from 1999-2000, member of 
the Economic Committee of the Nepali Congress Central 
Committee from 1998-2001, and in 1990 a Central Action 
Committee Member for the Restoration of Democracy. 
 
¶8. (C) BIO INFORMATION CONT:  Mahat was born in November 1959 
in Nuwakot.  He was imprisoned several times in the 70's and 
80's for his pro-democracy agitation.  In 1989, Mahat was 
awarded a Fulbright Scholarship.  Because of his 
pro-democracy activism, the government at the time would not 
give him a travel document -- with the restoration of 
democracy in the spring of 1990, he was ultimately able to 
receive a passport.  He holds a PhD in Economics from the 
University of Southern Illinois.  Mahat is married with two 
children.  His English is good. 
MORIARTY