Foreign Relations of the United States, 1958–1960, South and Southeast Asia, Volume XV

281. Telegram From the Embassy in India to the Department of State¹

New Delhi, May 9, 1959—7 p.m.

2765. I visited Kathmandu May 5–8 in order: (1) obtain fresh assessment of situation before departing on home leave; (2) meet Nepali Congress (NC) leaders who will be forming new government; (3) extend invitation to King to visit United States; (4) prepare way for establishment resident United States Mission.²

Meeting with King confined to social occasion during which I mentioned invitation to him (see Embtel 2764).³

Highlights my talks with Subarna, Shah, Thapa, B. P. Koirala, NC General Secretary, several opposition leaders including K. I. Singh, are:

(1) B.P. Koirala. I was impressed by Koirala as clearest thinking Nepalese leader I have met. He has much to learn about economics and administration, but he is approaching tremendous task he faces with well-balanced blending of enthusiasm, practical political sense and commendable awareness of his own shortcomings. He considers himself a Socialist. No question of his basic political motivation, belief in democratic institutions and opposition to communism. We are fortunate at this time in political orientation of NC leadership, and we should be able to work closely with Koirala, who is receptive and welcomes our views.

(2) New government—King and Koirala met May 4 to discuss formation new government and public announcement of King’s designation of Koirala as Prime Minister expected within ten days. Putting constitution into effect and opening of Parliament not planned until late June to give new government time form cabinet and prepare legislative program including budget.

(3) United States aid—I briefed Koirala on our present aid program, stressing implementation of several substantial projects of impact nature in near future and after formation new government including telecommunications, aviation and ropeway projects. Our preliminary exploration monetary stabilization scheme with GON also mentioned to him. Koirala stated United States aid going in right direction and he welcomed projects in communications field. However, first order of business new government would be to undertake “small scale impact” projects such as village drinking water, schools, village roads, bridges, health clinics in each of Nepal’s 32 districts for admittedly political reasons. He considered it of vital importance to future his party and democratic institutions to show people benefits of popularly-elected government before NC turned to them for increased taxes. Accordingly, many United States-GON programs such as monetary stabilization, calling for extensive fiscal and TAC reforms must be deferred until impact program launched. He wanted this initiated immediately and estimated it would cost about $4 million first year mostly in local currencies. Koirala said he had discussed approach with Sahay⁴ who had indicated general agreement and willingness of GOI to help. Sahay confirmed this when I called on him.

(4) Opposition parties—Opposition has little voice within Parliament. Tanka Prasad,⁵ K. I. Singh and Communists therefore reportedly negotiating to form some type coalition outside Parliament. Meanwhile Singh threatening stage nation-wide Protest Day against “illegal” elections, demand for “caretaker” government and new “honest” elections. Expectation is that opposition will not resort to agitation until NC has been in office some time and issue arises which favorable for opposition to exploit. Opposition leaders fail recognize how discredited they are, but they can serve useful purpose of preventing complacency in NC ranks.

(5) Soviet Mission—Koirala and Subarna made point of expressing their regret over hasty action of old government in allowing resident Soviet Mission and way in which decision reached. During meeting with Shah and Thapa, I expressed my surprise at Nepalese failure keep us informed especially since I thought we had understanding with GON over reasons why we had not established mission in past. They offered lame excuse they had instructed Daman⁶ to see me before event. I believe my representation served purpose, especially on Thapa.

Subarna indicated Soviet aid projects would have to be negotiated in detail with new government [less than 1 line of source text not declassified]. I mentioned to Subarna and Koirala our concern over implication Soviet East-West road survey and told them regional road priorities were flexible. First Soviet technicians expected July.

(6) Summary—In spite of arrival of USSR on scene, number important assets working in our favor, most valuable being Nepal’s first popularly-elected government, with strong working majority, which believes in democratic institutions and is Western-oriented. Important for future of these institutions and for free world to do everything we can to help this government succeed during its five years in office. I visualize our role being that of injecting as much realism as possible in its programs and, on the other hand, of providing prompt and flexible backstopping of new government. Koirala’s impact program merits our support even though it may include a few ill-conceived schemes and some waste. There is a small price to pay for the mutually important significance of its success. As the new government begins formulating its programs, we will submit our specific recommendations on them.

Bunker

1. Source: Department of State, Central Files, 790C.00/5–959. Confidential. Repeated to Calcutta and Kathmandu.
2. The Embassy reported in more detail on Bunker’s trip to Nepal, including memoranda of his conversations with Nepalese officials, in despatch 1351 from New Delhi, May 18. (Ibid., 790C.00/5–1859)
3. In telegram 2764, May 9, Bunker reported that he extended the President’s invitation to the King for a visit to the United States during a small dinner which he gave for the King in Kathmandu on May 6. “King appeared extremely pleased,” Bunker noted, “and said he would inform me soon about his wishes on timing of visit.” (Ibid., 790C.11/5–9)
4. Bhagwan Sahay, Indian Ambassador to Nepal.
5. Leader of the People’s Party (Praja Parishad) and former Prime Minister of Nepal, 1956–1957.
6. Lieutenant General Daman Shamsher Jang Bahadur Rana, Nepalese Ambassador to India, the People’s Republic of China, and Japan.