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C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000739 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: DECL: 04/10/2017 
TAGS: PGOV PTER PREL PREF BT IN NP
SUBJECT: AFTER PUSHING FOR AN INTERIM GOVERNMENT, INDIANS 
NOW ADMIT OBSTACLES TO ELECTIONS 
 
Classified By: Ambassador James F. Moriarty for reasons 1.4(b/d). 
 
Summary 
------- 
 
¶1. (C) Indian Ambassador Shiv Shankar Mukherjee agreed with 
the Ambassador April 9 that the re-appointment of Krishna 
Prasad Sitaula as Home Minister would exacerbate existing 
tensions in the Terai and make it more difficult to impose 
law and order.  They also agreed that problems remained with 
the inclusion of marginalized groups in the political 
process.  The Ambassador reassured Mukherjee that U.S. 
support for the Madhesi People's Rights Forum (MPRF) was 
based on the need to include marginalized groups in a 
national dialogue and did not extend to condoning violence. 
India would support a decision by the Seven Party Alliance 
(SPA) and Maoists to postpone the Constituent Assembly 
election if the decision was reached jointly by all eight 
governing parties, Mukherjee stressed.  He appeared visibly 
worried that a recent U.S. assessment indicated that 
political parties remained unable to conduct party business 
freely in 80 percent of Nepal's districts.  The Indian 
Ambassador agreed that a flawed election would need to be 
condemned broadly and publicly.  According to Mukherjee, 
India's Prime Minister had told Prime Minister Koirala that 
India supported third-country resettlement of the Bhutanese 
refugees.  Once resettlement had progressed significantly, 
India might assist in repatriating the residual population. 
 
Home Minister's Re-appointment Sent Wrong Message 
--------------------------------------------- ---- 
 
¶2. (C) In a meeting April 9 with Indian Ambassador Shiv 
Shankar Mukherjee, the Ambassador emphasized that the 
formation of an interim government with Krishna Prasad 
Sitaula as Home Minister had exacerbated tensions with the 
Madhesi rights movement in the Terai and made it more 
difficult to impose law and order across the country. 
Mukherjee agreed, noting that every Madhesi he had contacted 
felt "insulted" by the PM's decision to retain Sitaula.  The 
Government of India (GOI) supported legitimate Madhesi 
grievances but believed Madhesis needed to play a more 
responsible role, come into the process and participate in 
elections.  The Ambassador pointed out that the Government of 
Nepal (GON) had not yet allowed Madhesis into the political 
process.  Mukherjee agreed that inclusion remained a problem. 
 
U.S. Support for the Madhesi People's Rights Forum 
--------------------------------------------- ----- 
 
¶3. (C) Mukherjee reported that he had reports that the 
Madhesi People's Rights Forum (MPRF) President Upendra Yadav 
had claimed that he had the backing of the United States and 
thus did not need India's help.  Mukherjee appeared worried 
that the U.S. was attempting to undermine the Maoists by 
supporting the MPRF.  The Ambassador assured him that the 
U.S. was not providing the MPRF with anything but moral 
support.  The Embassy had issued a public statement in the 
wake of the Gaur massacre condemning violence on both sides. 
The Ambassador said it was important that the diplomatic 
community continued to press the GON to more adequately 
include marginalized groups, including the MPRF, in the 
political process. 
 
India Would Support GON Decision To Delay Election... 
--------------------------------------------- -------- 
 
¶4. (C) Mukherjee noted that there had been increased talk of 
delaying the Constituent Assembly (CA) election scheduled for 
June 20.  The GOI would support any decision by the Seven 
Party Alliance (SPA) and the Maoists to postpone the CA 
election, but that the eight parties should jointly announce 
and publicly support any such decision.  The international 
diplomatic community, Mukherjee averred, should not publicly 
push for an election delay.  The Ambassador agreed, with the 
caveat that the environment for elections needed to be free 
and fair or else face condemnation. 
 
KATHMANDU 00000739  002 OF 002 
 
 
 
...But Agreed That Flawed Elections Were Possible 
--------------------------------------------- ---- 
 
¶5. (C) The Ambassador described a recent National Democratic 
Institute (NDI) assessment that concluded that Nepali 
political parties were unable to work freely in 80 percent of 
Nepal's districts due to Maoist intimidation and the 
instability in the Terai.  Mukherjee appeared visibly worried 
when the Ambassador described how political party workers 
were only allowed to work in the countryside as long as they 
abided by Maoist rules, which included not criticizing the 
Maoists.  The Ambassador explained that he was urging the 
international community to declare publicly that, if Maoists 
failed to improve their behavior in the run-up to elections, 
elections could not be free and fair.  Mukherjee agreed that 
flawed elections would need to be denounced broadly and 
publicly. 
 
India Told Nepal to Proceed with Bhutanese Refugee 
Resettlement 
--------------------------------------------- ----- 
 
¶6. (C) The Ambassador said he was not pleased that Prime 
Minister G.P. Koirala had told Assistant Secretary Richard 
Boucher in New Delhi that third-country resettlement of the 
Bhutanese refugees would only happen after some repatriation 
to Bhutan had begun.  The Ambassador said that he had warned 
Finance Minister Ram Saran Mahat on April 8 that the U.S. was 
not willing to support Nepal's political gamesmanship with 
Bhutan; if resettlement were indefinitely postponed, the U.S. 
might begin reducing its assistance to the refugee camps. 
Mahat had indicated that the GON intended to pursue both 
repatriation and resettlement simultaneously, but wanted 
international condemnation of Bhutan, the Ambassador said. 
Mukherjee also related Indian Prime Minister Man Mohan 
Singh's discussion with PM Koirala on the margins of the 
SAARC Summit; Singh had encouraged Koirala to move ahead with 
resettlement now, adding that after resettlement had 
progressed significantly, India might help with repatriating 
the residual population. 
 
Comment 
------- 
 
¶7. (C) Compared with India's strong push for an interim 
government and desire to move ahead quickly toward a 
Constituent Assembly election, the GOI now seems to have 
begun to acknowledge that some delay in the election might be 
required.  Perhaps the GOI has realized that, with continuing 
unrest in the Terai and Maoist threats and intimidation 
unabated, flawed elections are likely and could entirely 
derail the peace process. 
MORIARTY