O 020901Z MAR 09
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C O N F I D E N T I A L KATHMANDU 000164 
 
 
DEPT FOR SCA/FO, SCA/INS 
 
E.O. 12958: DECL: 03/02/2019 
TAGS: PGOV PREL MARR KOCI EAID PHUM NP
SUBJECT: AMBASSADOR'S FEBRUARY 27 MEETING WITH PRIME 
MINISTER DAHAL 
 
Classified By: AMBASSADOR NANCY J. POWELL FOR REASONS 1.4 (B/D) 
 
¶1.  (C)  Summary:  Ambassador met with PM Dahal on February 
27 to provide observations following Department consultations 
and the recent A/S Boucher visit to Nepal.  PM Dahal appeared 
to understand that any USG terrorism de-listing action relied 
largely on future Maoist actions, including clear steps, both 
in word and deed, to reject terrorism and rein in violence 
and end impunity, particularly where the Maoist Young 
Communist League (YCL) was concerned.  The PM solicited 
Ambassador,s views on integration/ rehabilitation of PLA 
cadres, and also on the ongoing Army recruitment saga. 
Ambassador commended the PM on the formation/operation of the 
Special Committee, noted that integration needed to be a 
consensual, Nepali-led decision, urged haste in reaching an 
agreement, and called for greater communication between the 
MoD and the Nepal Army.  Ambassador said that USG assistance 
levels were likely to continue at approximate current levels, 
but not grow significantly in the short term.  She 
underscored growing Department and Congressional interest in 
the adoption issue which required the PM,s attention. 
Ambassador also presented copies of the 2008 Human Rights 
Report on Nepal to the PM, noting continuing concerns with 
YCL and Terai violence and press freedom issues, among 
others.  End Summary. 
 
Meeting at Singha Durbar 
------------------------ 
 
¶2. (U)  Ambassador and DCM met with Prime Minister Pushpa 
Kamal Dahal on February 27 at his Singha Durbar office in 
Kathmandu.  The Prime Minister,s Foreign Affairs Advisor 
Hira Bahadur Thapa and Padhumna Shah, Joint Secretary for 
Europe and the Americas at the Ministry of Foreign Affairs, 
were also in attendance. 
 
Maoist Terrorism Designations 
----------------------------- 
 
¶3. (C)  Clearly of interest to the PM, Ambassador,s comments 
on the terrorism designations were closely followed.  She 
pointed out that the onus for moving ahead on any delisting 
effort mainly rested with the Maoists at this point.  Many in 
the USG policy apparatus were either against or agnostic to 
removing the Maoists from the USG terrorism lists.  Continued 
YCL excesses, Maoist human rights abuses, and lack of clear 
signals from the PM and Maoist leadership drew into question 
their commitment and undermined chances for de-listing. 
Attacks on the media by Maoist cadres, the PM,s own 
statements vaguely suggesting the need for a secondary 
"revolution," and a failure to reject and rein in extremist 
voices from his own party did not provide enough evidence to 
support moving ahead.  A clear rejection of terrorism in word 
and deed, and addressing YCL violence and extortion were 
essential.  Ambassador noted Maoist cooperation in providing 
fuller information regarding the killings to two Embassy 
security personnel in 2001 and 2002, but pointed out that we 
fully expected the Maoists to accept responsibility for the 
killings to the families of the deceased, and to disclose the 
information to the Nepal Human Rights Commission.  Additional 
information regarding the 2004 attack on the American Center 
was also still needed.  The PM responded by noting that he 
had made anti-terrorism remarks in the past: following the 
Mumbai attacks, and subsequently, when his own personal 
assistant was shot and wounded in Kathmandu by an unknown 
assailant.  The Ambassador suggested a broader statement 
renouncing violence would be helpful, as did A/S Boucher on 
February 11. 
 
Integration/Rehabilitation and Recruitment 
------------------------------------------ 
 
¶4.  (C)  The PM asked for the Ambassador,s take on military 
integration/rehabilitation, and the ongoing recruitment saga. 
The Ambassador responded that progress on the cantonments 
needed to be both quick and correct.  She suggested that 
immediate movement on the discharge of the identified 4,000 
non-combatants, working with UNDP and UNICEF on planning 
would be helpful; the PM agreed and said the process had 
already begun.   Ambassador noted that integration and 
rehabilitation modalities needed to have a Nepali solution, 
but urged haste in making the difficult decisions on 
integration and other options facing former Maoist army 
fighters.  She emphasized the USG view that limited 
integration into the Army, based on individual choice, would 
best suit the process, but that wholesale integration by 
larger units posed significant problems.  On the recruitment 
issue, Ambassador noted the USG view that military 
subordination to elected civilian authority was a key value, 
but that the elected government also was compelled to conduct 
itself in a responsible and informed manner.  The same 
message had been given to the Chief of Army Staff  Katawal. 
The PM, in response, noted that there was now "no problem 
with the Army," and commented on his own attendance at Army 
Day celebrations earlier in the week as evidence of growing 
communication. 
 
Foreign Assistance 
------------------ 
 
¶5. (C)  Ambassador noted requests from the PM and Finance 
Minister Bhattarai, raised during meetings with visiting 
Assistant Secretary for South and Central Asian Affairs 
Richard Boucher February 11-12, asking for sharply increased 
levels of development assistance.  Noting that while the USG 
was pleased to see its assistance and programs continue, 
there was little chance that any significant increases in USG 
aid would be forthcoming in the short term based on her 
consultations in Washington.  A greater focus, and 
well-thought-out National Development Framework, to be 
presented by the GON in May, would be very helpful as the USG 
reviewed its funding priorities. 
 
Adoptions 
--------- 
 
¶6. (C)  The Ambassador raised the issue of third country 
adoptions, particularly those families considered 
"transition" cases, which had been suspended between old and 
new regulations when new guidelines were promulgated last 
year.  She noted her recent briefings in Washington with 
Senator Feinstein, and staffers representing more than a 
dozen Members of Congress as indications of how seriously 
American legislators viewed the current impasse, and urged a 
speedy and humanitarian consideration of these cases.  PM 
Dahal acknowledged receiving the letter from Senator 
Feinstein, as well as a separate letter signed by more than a 
dozen Members of Congress, and that he was working with the 
Ministry of Women, Children, and Social Services to reach a 
decision.  He gave no hint of how the GON would proceed. 
(Note: PM Dahal rejected a request for a brief joint French 
and American meeting to discuss adoptions prior to the 
February 27 meeting; Ambassador noted that the situation 
required the PM,s attention, and indicated that we would be 
renewing the request to meet on the issue.  End note). 
 
Human Rights Report 
------------------- 
 
¶7. (C)  The Prime Minister received two copies of the 2008 
Human Rights Report for Nepal from the Ambassador, briefly 
noting media coverage of the report earlier that day.  The 
Ambassador highlighted continuing USG concerns, particularly 
on persisting abuses by the Maoist Young Communist League 
(YCL), violence in Nepal,s troubled Terai region where 
impunity was all too common, and press freedom issues, among 
others.  The PM offered no substantive response.  (Note: 
Subsequently, on March 1, the PM did make a strong statement 
on the GON,s commitment to press freedom, and acknowledged 
past problems.  End note). 
 
Peace Corps 
----------- 
 
¶8.  (C)  Ambassador briefly mentioned that, conditions 
permitting, she would like to begin preliminary discussions 
regarding a return of the Peace Corps to Nepal.  A 
prerequisite for such a development, she noted, would be a 
pledge by the PM that PCVs could work unimpeded in the 
exposed village settings where they were normally posted, and 
would not be harassed or troubled by YCL cadres.  The PM 
offered no substantive response, except to say that he would 
look into the issue and reply at a later time. 
 
Comment 
------- 
 
¶9. (C)  PM Dahal,s responses to key concerns were 
unimpressive, but it is clear that he received the messages 
on the terrorism designations, on the USG,s human rights 
concerns, and regarding American views on the YCL and 
impunity issues.  Whether he takes action to address them is 
another matter.  His responses to most issues/concerns were 
short, vague, or lacking in specifics.  His most animated 
moment came during a power cut which left the meeting room in 
the dark, remarking that this "had never happened before" at 
his offices in Singha Durbar.  For the remainder of the 
Nepali nation, dealing with 14-hour-per-day load shedding, 
that statement should be outrageous - if it is true. 
 
 
POWELL