The US Ambassador to Nepal Dean R Thompson has said the US government is keenly watching Nepal’s initiatives regarding the implementation of the Millennium Challenge Corporation (MCC) Nepal Compact, resolving the problems faced by Tibetan refugees, transitional justice process, and other issues like defense cooperation, climate change, and strengthening the democratic process.

While rejecting occasional allegations of US interference in Nepal’s internal affairs, the ambassador, who came here to take up his assignment last October, said Washington is only involved in bilateral and diplomatic engagements.

“Nepal should be able to make its own decisions,” he said during an interaction with a group of journalists in Kathmandu on Wednesday.

“The priority of the US government in Nepal is to ensure implementation of the MCC compact, support the democratic process, which is under threat globally, work with democratically and constitutionally elected governments and help steer the country towards a positive trajectory.”

On the MCC Nepal compact, which is all set to enter into force from August, Thompson said he is aware of some recent issues that surfaced in Dang and Ratamate area of Nuwakot.

In Dang, across the right-of-way of a highway that is going to be upgraded through the MCC grant, hundreds or trees were felled recently without conducting the environment impact assessment and reportedly without prior information of the Millennium Challenge Account (MCA) Nepal. According to sources, thousands of trees along the Dhankhola to Shivakhola stretch of the East-West highway were being cut down starting December 10 without informing the local authorities, and now the local administration of Dang has sought a report from the Divisional Road Office on the felling of trees.

“It is not known on whose instructions the trees were cut down. We are investigating the matter. The MCA Nepal is also looking into the issue,” an official said requesting anonymity.

Some locals in the Ratmate area of Nuwakot district are continuously protesting against the proposed electricity substation, which is to be built with MCC assistance.

“We want to make people realize that these projects should be implemented. We are open and transparent. Any obstruction or protest will not diminish our optimism to implement the project. What I hear broadly here is that there is strong desire to go for implementation of this project,” said Thompson.

He called the MCC project a “very much Nepali driven process,” which aims to create over 10,000 jobs in Nepal.

When the $630 million MCC compact was caught up in controversy last year, the US side accused certain internal and external elements of mounting a “malicious campaign of misinformation and disinformation” against the aid agreement.

Despite a face-off between Washington and Beijing, Nepal’s parliament in February last year ratified the MCC Nepal Compact, which focuses on building transmission lines and road upgrades.

The ambassador also rejected claims that MCC projects and the State Partnership Program (SPP) provide the pretext for the US military to come to Nepal.

The erstwhile Sher Bahadur Deuba government declined to be a part of SPP, the United States’ military initiative focused on humanitarian assistance, disaster response and strengthening the capacity of Nepal Army. But other defense and military cooperation between Nepal and the United States of America are continuing.

“It’s crystal clear that the MCC does not have military, security or defense related components. And the SPP is a training opportunity for the Nepal Army personnel, providing humanitarian assistance and disaster relief. We hundred percent respect the decision made by the government of Nepal on the SPP. The SPP has no treaty obligation and there is no provision of the US Army to come to the ground, it’s a military to military cooperation” said Thompson.

On the US Indo-Pacific Strategy, the US envoy claimed that it is not a military concept but a component of the US foreign policy outlook on South East Asia and South Asia.

He did not say much about the geopolitical rivalry between Washington and Beijing in Kathmandu, but said Nepal’s location has made it geopolitically important and the US works in Nepal’s interest.

He also touched upon the contribution made by the US Peace Corps volunteers in Nepal, and the assistance being provided by the USAID in various developmental projects including climate change.

“We support the sovereignty, territorial integrity and independence of Nepal. Our focus is on the interest of both the countries,” said Thompson. “We are not going to be involved in any political process in Nepal.”

He also thanked the government of Nepal for taking in thousands of Tibetan refugees although Nepal is not part of the Refugee Convention of 1951.

Nepal is hosting over 15,000 Tibetan refugees on humanitarian grounds, but it has stopped issuing them identity cards since 1995. The UN refugee agency, the US government and the Western bloc have been lobbying with successive Nepali governments for the issuance of the identity cards to the remaining Tibetan refugees in Nepal who are deprived of basic rights like school and college admissions, opening bank accounts, and doing business, among other things.

“It is not a political issue, but a humanitarian issue, which will make it easy for them to live here,” said Thompson, adding, “Nepal is generous to the refugees despite not being a party to the refugee convention.”

Due to strong pressure from Beijing, successive governments in Kathmandu have declined to distribute refugee identity cards to those Tibetans who entered Nepal after 1995 and their children.

“They are facing a very abnormal situation due to the lack of a refugee identity card. Their children are deprived of basic facilities including healthcare and others. This is not a political issue, this is a humanitarian issue. The United States is benefitted from refugees coming across the globe. We support them to integrate in society. We will work with the UN agency and others to find a lasting solution for the refugees. They are also human, they need respect. We want to help them,” said the US envoy.

When asked whether the US looks at Nepal through New Delhi’s lens, the ambassador said as Nepal and the US have long enjoyed bilateral relations, “the US looks at Nepal based strictly on a bilateral basis.”