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DE RUEHNE #9751/01 3611226
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O 271226Z DEC 05
FM AMEMBASSY NEW DELHI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7913
INFO RUEHBJ/AMEMBASSY BEIJING 9408
RUEHLM/AMEMBASSY COLOMBO 2523
RUEHKA/AMEMBASSY DHAKA 2546
RUEHIL/AMEMBASSY ISLAMABAD 5376
RUEHBUL/AMEMBASSY KABUL 2156
RUEHKT/AMEMBASSY KATHMANDU 3186
RUEHLO/AMEMBASSY LONDON 7518
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RUEHCG/AMCONSUL CHENNAI 0161
RUEHBI/AMCONSUL MUMBAI 9433
RUCNDT/USMISSION USUN NEW YORK 8251
RHEHNSC/NSC WASHDC
RUEIDN/DNI WASHINGTON DC
RHHMUNA/CDR USPACOM HONOLULU HI
RUEHGV/USMISSION GENEVA 0377
RUCPDOC/DEPT OF COMMERCE WASHDC
RHHJJPI/PACOM IDHS HONOLULU HI
RHMFISS/HQ USSOCOM MACDILL AFB FL
RHMFISS/HQ USCENTCOM MACDILL AFB FL
RUEKJCS/SECDEF WASHDC
RUEKJCS/JOINT STAFF WASHDC

C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 009751 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 12/26/2015 
TAGS: PREL PREF KDEM PGOV ENRG IN BT
SUBJECT: INDIA READY TO PUSH HARDER ON BHUTAN REFUGEES 
 
REF: A. NEW DELHI 9504 
     ¶B. STATE 223674 
 
Classified By: A/DCM Geoff Pyatt for Reasons 1.4 (B, D) 
 
¶1.  (C) Summary: The GOI is ready to take a more proactive 
role in prodding Bhutan to resolve the long-running refugee 
problem, an MEA official told A/DCM and Poloff on December 
¶27.  Bhutan's King had previously informed New Delhi of his 
plan to abdicate in 2008 following elections, and India is 
optimistic about both political reform and economic growth in 
the kingdom, especially following the 2006 entry in service 
of the Tala hydroelectric project.  End Summary. 
 
Refugees: New Delhi Takes the Lead? 
----------------------------------- 
 
¶2.  (C) MEA Joint Secretary (North) Pankaj Saran told A/DCM 
and Poloff that India is "eager" to talk to Bhutan about 
breaking the logjam of impediments to accepting the Category 
I and IV refugees in Nepalese camps.  Bhutanese interlocutors 
have briefed the GOI on a verbal agreement between the 
Bhutanese and Nepalese FMs on the margins of the November 
SAARC summit in Dhaka to repatriate the first batch, but 
progress seems to have stalled since, Saran reported.  The 
refugee issue is "looming larger" in New Delhi's 
consciousness, however, and the GOI is willing to use its 
good offices with both the Nepalese and the Bhutanese to 
resolve the differences, Saran continued.  He suggested that 
refugee repatriation could be included on the agenda of 
India-Bhutan foreign office talks scheduled for mid-January. 
New Delhi is approaching the January talks as an opportunity 
for "deep thinking" on how to go forward with Bhutan, and "we 
intend to do more" on the refugee issue than in the past, he 
emphasized. 
 
¶3.  (C) India understands the Bhutanese concerns about 
refugee repatriation, Saran commented, including fears of 
Maoist organizing in the refugee camps, and would move 
forward with both Bhutanese and Nepalese concerns in mind. 
New Delhi would also like to get a "better fix" on Nepal's 
objections to the proposal, he added, voicing Nepalese 
concern that Bhutan may agree to take only the first batch 
and then wash its hands of the issue. 
 
The Democratic Monarch 
---------------------- 
 
¶4.  (C) Thimpu had previously informed New Delhi of King 
Wangchuk's plan to abdicate his throne in 2008 following 
elections and establishment of a constitutional monarchy (Ref 
A), Saran said.  He speculated that the monarch's decision 
was prompted by a desire to provide to his son more guidance 
in governing than he received upon assuming the throne after 
the death of his own father.  New Delhi is ready to deal with 
the Crown Prince and expects him to take a more active role 
in affairs of state leading up to the 2008 transition. 
 
¶5.  (C) The decision to abdicate is linked to the 
introduction of the Constitution, Saran observed, a 
continuation of the process the King began in 1998 by 
devolving power to a Prime Minister.  Bhutan's population is 
young, Saran said, a fact that the King has pointed to in 
discussions with the GOI as a reason for his determination to 
introduce a constitutional democracy to "better reflect the 
aspirations" of the population.  Saran dismissed concerns 
that the constitutional changes could be a prelude to further 
expulsions of ethnic Nepalese, saying that while New Delhi 
 
NEW DELHI 00009751  002 OF 002 
 
 
has seen no indications that could be the case, it would 
strongly disapprove of further expulsions. 
 
Optimistic about Bhutan's Future 
-------------------------------- 
 
¶6.  (SBU) New Delhi is optimistic about Bhutan's 
transformation, Saran commented, observing that the economy 
is looking up, particularly after the expected entry in 
service of the Tala hydroelectric project, ideally in May or 
June 2006.  Hydroelectricity remains an area for growth, he 
continued, and India intends to do feasibility studies on 
three other locations for possible hydroelectricity projects. 
 
¶7.  (U) Visit New Delhi's Classified Website: 
(http://www.state.sgov.gov/p/sa/newdelhi/) 
BLAKE