US embassy cable - 03KATHMANDU1758

UNCLAS SECTION 01 OF 04 KATHMANDU 001758 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OPRC, PGOV, PREL, KMDR, NP 
SUBJECT: WEEKLY NEPAL MEDIA REPORT: 
SEPTEMBER 2 TO 8, 2003 
 
 
 - STATE FOR NP, AC, PM 
 - STATE FOR IN/R/MR 
 - STATE FOR SA/INS, PM/CBM, PM/PRO 
 - STATE FOR SA/PPD 
 
1.  POLITICAL AFFAIRS 
 
 -- Parties' protest to continue despite 
blasts: The five agitating parties will not 
halt their protests scheduled for the 
afternoon despite the series of bomb blasts 
in the Valley Monday morning, a UML leader 
said Monday. (Nepalnews.com, 9/8) 
 
- -  UML  back  on  streets :  A  day  after  i t  was 
 conspicuously absent from the anti- 
 government agitation, the CPN-UML came out 
on the streets in force, shouting slogans 
and courting arrests in a bid to prove their 
commitment to the five-party alliance. 
Behind this move lay a day of red faces and 
hectic parleys involving meetings, apologies 
and even a mission to its large partner in 
protest -- the Nepali Congress. (Media 
reports, 9/8) 
 
 -- UML's conspicuous absence surprises 
agitating allies: As a surprise to agitating 
political parties, the UML remained 
suspiciously absent from the third day of 
the joint civil disobedience, ensuing a 
serious crack in the seven-month long pact 
among five political parties. (Centrist 
"Kathmandu Post," E/D, 9/7) 
 
 -- AI flays Government for arresting 
"peaceful" demonstrators: Amnesty 
International (AI) condemned Thursday's 
arrest of "hundreds of political party 
leaders, party activists and students while 
on their way to a protest rally in 
Kathmandu", according to a statement issued 
by the world human rights watchdog body. 
 ("The Kathmandu Post," 9/7) 
 
 -- Kirat Workers' Party breaks off with 
Maoists: Kirat Workers' Party [a rebellion 
party] said Saturday it has broken off with 
the Maoists.  The party accused Maoists for 
reneging on agreements when the two parties 
merged earlier this year. (Media reports, 
9/6) 
 
 -- Political parties carry out civil 
disobedience: Defying the government's 
prohibition order against holding mass 
gatherings, thousands of cadres of the five 
agitating political parties appeared on the 
streets of the capital and across the 
Police rounded up some twenty trucks of 
*** TOO LARGE SKEW *** 
-- Parties to accept Deuba provided House 
reinstated: Nepali Congress (NC) and CPN-UML 
leaders on Wednesday said they would not 
oppose the revival of the Sher Bahadur 
Deuba-led government if that were followed 
up by reinstatement of the House of 
Representatives.  The unfolding situation is 
a result of the hectic roles played by the 
Indian, U.S. and British ambassadors in the 
last few days. ("The Kathmandu Post" and 
others, 9/4) 
 
 -- Breakdown of ceasefire: "Following the 
breakdown of ceasefire and peace talks by 
the Maoists, the country has been pushed 
into another round of political instability 
and chaos.  However, the new scenario has 
also brought the country's major political 
players including the King and the five 
agitating political parties much closer as 
all of them have vowed their strong 
commitment to the present constitution. 
Gauging the prevailing political situation, 
it appears that while the country's major 
political forces are still demanding the 
restoration of the House of Representatives, 
the monarchists are arguing in favor of 
holding new elections.  This difference can 
be considered marginal and can be easily 
resolved if the major political forces sit 
together to decide the appropriate modality 
of bringing the constitutional process to 
right track." (Centrist "Spotlight," E/W, 
9/5) 
 
 -- Agitating parties slow down pace: The 
five agitating political parties has so 
ft- 
peddled on their scheduled agitation as the 
government held out a pledge to create the 
right atmosphere to pave a way out of the 
current political imbroglio.  The changing 
stances follow a series of hectic efforts 
put in by the ambassadors of UK, India and 
right atmosphere to pave a way out of the 
current political imbroglio.  The changing 
stances follow a series of hectic efforts 
put in by the ambassadors of UK, India and 
the U.S. during the last few days.  Also 
significant were the similar meetings 
between Prime Minister Thapa and the Nepali 
Congress (NC) president Girija Prasad 
Koirala, CPN-UML general secretary Madhav 
Kumar Nepal. (Reports, 9/3) 
 
 -- Weapons arrive: Three tons of weapons 
finally have arrived via Royal Nepal 
Airlines in Kathmandu from Dubai, where they 
were dumped for about a year after Former 
Prime Minister Sher Bahadur Deuba purchased 
them in Belgium.  The Indians have frowned 
their eyes over the arrivals of the weapons 
passing through Indian air. (Leftist "Jana 
Aastha," V/W, 9/3) 
 
 -- Proposal to make Madhav PM: The Royal 
Palace has sent a message to Madhav Kumar 
Nepal, offering him to be the next PM. 
Former Minister Devi Ojha conveyed the 
message to him.  Because of this, the UML's 
tone about the September 4 movement has 
changed.  Thapa, knowing his imminent fall 
down, has begun aligning with Nepal 
Congress.  Once the UML is in power, its 
cadres will fight the Maoists from district 
to district.  And the American and Palace 
policy of "iron cuts iron" or the communists 
fight communists will be successful in 
Nepal. ("Jana Aastha," 9/3) 
 
 -- Search for new PM: The days of the Thapa 
government are numbered.  Now the palace is 
looking for a new candidate for the position 
of Prime Minister.  Former Prime Minister 
Sher Bahadur Deuba, Speaker of the House 
Taranath Ranabhat, UML General Secretary 
-- U.S. envoy for unity against violence: 
Nepal's constitutional forces must be united 
against the violence isolating the Maoists, 
U.S. Ambassador to Nepal Michael E. 
Malinowski said Tuesday.  (Media reports, 
9/3) 
 
 -- Government bans protest rallies: The 
government has banned holding rallies, 
processions, mass meetings, sit-ins, strikes 
and other such programs in Kathmandu, 
Lalitpur and Bhaktapur districts from 
September 2 to September 23. (Government- 
owned "Rising Nepal," E/D, 9/2) 
 
 -- Foreign envoys urge party leaders: The 
ambassadors of the U.S., UK and India are 
believed to have urged Nepali Congress 
President G.P. Koirala and CPN-UML General 
Secretary Madhav Kumar Nepal to hold 
 
SIPDIS 
dialogue with King Gyanendra after his 
return from Britain.  The envoys were of the 
view that the parties and the institution of 
constitutional monarchy should get united in 
finding solutions to the problems. 
Meanwhile, informed sources revealed that 
the ambassadors of U.S. and the UK met PM 
Thapa and stressed upon him not to increase 
the rift with the parties. (Kantipur and the 
Kathmandu Post, 9/2) 
 
2.  SECURITY FORCE, MAOIST CLASHES 
 
 -- New RNA brigade in east to crush rebels: 
In its bid to tighten the national security 
following the collapse of the peace process, 
the Royal Nepalese Army (RNA) has decided to 
establish another infantry brigade in the 
eastern development region, increasing its 
total strength from around 60,000 at present 
to over 65,000. ("The Himalayan Times," 9/7) 
 
 -- One killed, 12 injured in Valley blasts: 
Multiple bomb blasts in the capital, six in 
number so far, has killed a 10-year-old 
student injuring 12 more Monday morning. 
(Nepalnews.com, 9/8) 
 
 -- Maoists kill journalist: Maoists Sunday 
brutally murdered journalist Gyanendra 
Khadka, 35, a reporter of National News 
Agency  ( ASS )  for  Sindhupalchowk  di strict . 
(Media reports, 9/8) 
 
 -- Maoists loot banks: The Maoists looted 
the Agricultural Development Bank in Bara 
district and destroyed the Area Police 
Office and VDC buildings at Madhuvan baza 
ar 
on 9/6. ("The Himalayan Times," 9/8) 
 
 -- Maoists continue outrage: Maoists 
overnight bombed the ancestral home of Raj 
Sabha [National Council] member Rudra K.C. 
in Myagdhi district, radio reports said. 
(Media reports, 9/6) 
 
 -- Clashes countrywide: Fourteen Maoists and 
one police official have been killed in 
separate clashes in the country since 
yesterday (9/3). ("The Himalayan Times," 
9/5) 
 
 -- Maoists bring in weapons: The Department 
of Investigation has presented a report to 
the government saying that the Maoists have 
brought into the capital a large quantity of 
RDX and sharp shooters. (Centrist "Nepal 
Samacharpatra," V/D, 9/4) 
 
 -- 18 Maoists, 3 security men killed: 
Eighteen Maoists and three security 
personnel were killed in separate incidents 
in Lamgunj, Morang, Siraha and Sarlahi 
di stricts  on  9/1  and  9/2 .  ( Media  reports , 
9/3) 
 
 -- Two civilians, seven rebels killed in 
can frontations :  Two  members  of  a  fami ly  were 
k i 1 led  and  seven  others ,  incl uding women  and 
ch i ldren ,  in lured  in  crossfire  between  the 
security forces and Maoist rebels in a VDC 
of Udayapur district on Saturday.  In 
another incident, at least seven Maoists 
were reportedly killed yesterday during 
exchange of fire in Sarlahi and Sindhuli 
districts. ("The Kathmandu Post," 9/2) 
 
3.  PRESS AND MEDIA 
 
- -  The  government  has  handed  out  1 icenses  to 
 five  new  FM  stat ion s .    In  addi lion  to  12  new 
 stations announced since last week, the 
 Win i stry  of  In format ion  and  Communications 
 has  now  i ssued  1 icenses  to  43  FM  stations . 
 (Independent "Nepali Times," E/W, and 
 others, 9/5) 
 
 4.  BUSINESS/ECONOMY 
  -- Nepal to join WTO: Nepal will join the 
 WTO  on  September  11 .  Prachanda  Shre stha , 
 Joint  Secretary  at  the  Mini stry  of  Industry 
 and Commerce, said the signing ceremony 
 would be held at the Cancun ministerial 
 conference the following day in Mexico. 
 (Nepalnews.com, 9/6) 
 
  -- Three Nepali hotels among Asia's best: 
 Three  Nepa 1 i  hotels  - -  Dwarika ' s  Ho tel , 
 Kathmandu  Guest  House  and  Yak  &  Yet i  - -  have 
 been enlisted in the top 300 hotels and 
 resorts of Asia, Kantipur (9/6) reported 
 quoting asiahotel.com. 
-- WLL phone service from next week: United 
Telecom Limited (UTL), a private telecom 
operator, is launching its service next 
week, possibly on Wednesday, ending the 
three-decade long monopoly of Nepal 
Telecommunications Corporation (NTC) in 
basic telephony. ("The Kathmandu Post," 9/5) 
 
 -- Exemplary achievement: Chilime hydropower 
plant, Nepal's first indigenously developed 
20 MW power plant, begins production. 
(Spotlight, 9/4) 
 
5.  OTHERS 
 
 -- Organic fertilizer from capital's wastes: 
The government has decided to grant 
permission to Lona Fertilizers, a private 
company, to produce organic fertilizer from 
the capital's waste for 30 years, a 
published report said Saturday. (Media 
reports, 9/6) 
 
MALINOWSKI