VZCZCXYZ0007
OO RUEHWEB

DE RUEHKT #2897 3560928
ZNR UUUUU ZZH
O 220928Z DEC 05
FM AMEMBASSY KATHMANDU
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9627
INFO RUEHBJ/AMEMBASSY BEIJING PRIORITY 3777
RUEHLM/AMEMBASSY COLOMBO PRIORITY 4027
RUEHKA/AMEMBASSY DHAKA PRIORITY 9075
RUEHIL/AMEMBASSY ISLAMABAD PRIORITY 1999
RUEHNE/AMEMBASSY NEW DELHI PRIORITY 8949
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY

UNCLAS KATHMANDU 002897 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SA/INS, EB 
 
E.O. 12958: N/A 
TAGS: BEXP BTIO EINV ECON ENRG NP
SUBJECT: BUSINESS LEADERS TO STAFFDEL: NEPAL IS OPEN FOR 
BUSINESS 
 
 
BUSINESS LEADERS UPBEAT ABOUT BUSINESS IN NEPAL 
--------------------------------------------- -- 
 
¶1. (SBU) At a December 21 breakfast meeting with 
congressional Staffdel, six Nepali business leaders said that 
Nepal was "open for business."  The business leaders 
explained to the Staffdel how the Maoist insurgency and the 
current instability of His Majesty's Government of Nepal 
(HMGN) were hindrances to Nepal being more attractive to 
foreign investment.  The business leaders expressed the 
desire for peace and stability in Nepal, which was better for 
business, and most of the group said they felt the King was 
most capable of creating a more stable Nepal.  The business 
leaders noted that they were upbeat about the potential for 
future foreign investment in Nepal.  Sandip Shah, the Manager 
of the Bhote Koshi hydropower project for the Panda Group, 
currently the largest U.S. investment in Nepal, was less 
positive.  The Panda Group is planning to sell its investment 
in the project to a Nepali company due to difficulties Panda 
Group has experienced conducting business here. 
 
BUSINESS GROUP ALSO POSITIVE ON TOURISM DESPITE INSURGENCY 
--------------------------------------------- ------------- 
 
¶2. (SBU) The business leaders stated that tourism has been 
doing well in Nepal over the last few years, that the upward 
trend in tourism in the late nineteen-nineties had leveled 
off, and that the last several months during the Maoist 
cease-fire have seen increased tourist arrivals.  One 
business leader opined that the U.S. travel warning had 
scared off many tourists.  The business leaders declared that 
the Maoists were terrorists, but said they did not target 
Western tourists and were only active in collecting trekking 
fees (or "donations" to the Maoist cause) from tourists in 
certain areas.  Emboff noted that paying Maoists extortion 
was against U.S. law.  The business leaders were upbeat that 
tourism would continue to rise. 
 
COMMENT 
------- 
 
¶3. (SBU) After the meeting, Staffdel noted the business 
leaders seemed to be putting a very positive spin on foreign 
investment and tourism, when the reality was not as good. 
Post does not believe that tourism and foreign investment 
will see major gains until more durable solutions to the 
political instability and Maoist insurgency are achieved. 
 
¶4. (SBU) Staffdel List: 
 
-- J. Matthew Szymanski, Chief of Staff, House Small Business 
Committee 
-- Christopher Szymanski, Staff Assistant, House Small 
Business Committee 
-- Dawn Petchell, Senior Policy Adviser, Bureau of 
Legislative Affairs (H Bureau) 
-- James Garrison, Lieutenant Colonel, U.S. Army House Liaison 
 
¶5. (SBU) Nepali Business Leaders List: 
 
-- Sunil Shakya, President, Nepal-USA Chamber of Commerce and 
Industry 
-- Prasiddha Bahadur Pandey, Managing Director, Shangri La 
Hotel and Resort 
-- Narendra Basnyat, Chairman, Himalayan Distillery Limited 
-- Moti Lal Dugar, Vice Chairman, TM Dugar Group 
-- Sandip Shah, General Manager, Bhote Koshi Power Company, 
Panda Group 
-- Ravi Bhakta Shrestha, Vice-Chairman, N.E. Group 
 
¶6. (SBU) Staffdel Szymanski cleared this message. 
MILLARD