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This man is using this American woman to sow his wild oats. That's all it boils down to. If he wanted, he could pursue a woman that was acceptable to his parents -- but the rub is that he couldn't have the no-strings, live-in relationship with her.
The secrecy of this relationship is demeaning to the LW. And she shouldn't try to win his family's favor -- it's a long shot that she ever would. This relationship is just a waste of time.