US embassy cable - 03KATHMANDU1822

UNCLAS KATHMANDU 001822 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR SA/INS, S/CT, AND DS/IP/SA 
ISLAMABAD FOR AMBASSADOR POWELL 
LONDON FOR POL/GURNEY 
NSC FOR MILLARD 
 
E.O. 12958: N/A 
TAGS: PTER, ECON, ASEC, NP, Maoist Insurgency 
SUBJECT: NEPAL:  MAOISTS DEMAND MONEY FROM COCA-COLA, 
THREATEN THE COMPANY 
 
 
1.  (U) This cable contains business sensitive information 
and should be handled accordingly. 
 
2.  (SBU) On September 15, Maoists resumed extortion demands 
of Coca-Cola in Nepal.  Coca-Cola has investments valued at 
USD 30 million in the country in the form of two bottling 
plants, one in Kathmandu and one in Chitwan District 
(southwest of Kathmandu).  The most recent demand is for USD 
270,000 and has a firm deadline of 30 September.  The demand 
has been communicated to the company through site visits at 
both plants and phone calls to the country manager, and the 
two plant managers. 
 
3.  (SBU) Post has discussed the security situation with 
Coca-Cola regional managers in Bangkok and the regional 
officer for corporate security, presently on travel in 
Vietnam.  The Coca-Cola regional office is particularly 
concerned at the personal threats received by its three local 
managers.  RSO and PolOff reported on the Embassy's recent 
letters requesting the Home Secretary, the Inspector General 
of the Civil Police, and the Inspector General of the Armed 
Police Force to provide extra checkpoints 100 meters from 
Coca-Cola's two plants.  (Note:  To date, the Embassy has not 
received a response on these requests.  End note.)  Coca-Cola 
is reviewing next steps carefully, including a possible 
decision to suspend operations in Nepal.  If the company is 
forced to shutdown, 400 employees will lose their jobs and 
the Government of Nepal will lose one of its largest 
taxpayers. 
 
4.  (SBU)  Comment:  Post is aware that nearly all Nepalese 
firms have received extortion demands.  However, Coca-Cola is 
one of the few companies that have not paid. 
MALINOWSKI