US embassy cable - 03KATHMANDU2165

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 002165 
 
SIPDIS 
 
STATE FOR EB/ESC/TFS (GLASS), S/CT FOR NAVRATIL, SA FOR DON 
CAMP, SA/INS FOR DGOOD AND GBAYER, INL FOR JWHITAKER 
LONDON FOR PGUERNEY 
TREASURY FOR OFAC (NEWCOMB) AND EXECUTIVE OFFICE FOR 
TERRORIST FINANCING AND FINANCIAL CRIMES 
NSC FOR EMILLARD 
 
E.O. 12958: DECL: 11/03/2013 
TAGS: PTER, EFIN, KVPR, NP, Maoist Insurgency 
SUBJECT: NEPAL: MAOIST RESPONSE TO U.S. TERRORISM 
DESIGNATION 
 
REF: A. A) STATE 305118 
     B. B) KATHMANDU 2048 
     C. C) KATHMANDU 2096 
     D. D) KATHMANDU 2163 
 
Classified By: CHARGE D'AFFAIRES, A.I. ROBERT K. BOGGS BASED UPON REASO 
NS 1.5 (B) AND (D) 
 
1.  (U) Nepal's Maoists, in response to the U.S. designation 
of them as terrorists on the assets freeze list (ref A), have 
posted a statement on the Nepali version of their website 
blasting the designation as an example of U.S. interference 
in the internal affairs of Nepal and its neighbors.  The 
Maoists' 2 November statement advances a range of 
explanations for the U.S. designation, including the 
contention that the U.S. wants to establish a military base 
in Nepal.  In addition, the statement claims that the U.S. 
action comes at a time when European donors, the United 
Nations and the Maoists are actively working for a peaceful 
solution. In a separate internet interview, Maoist supremo 
Prachanda claimed that the Maoists are in "constant contact" 
with UN Secretary General Kofi Annan regarding possible UN 
mediation in the peace process. 
 
2.  (U) The Maoist statement further describes the U.S. 
designation as "ridiculous," especially in light of the 
Maoist announcement on 21 October of a shift toward a less 
aggressive policy (ref B).  The statement claims that the 
U.S. made the designation only after the Maoist Politburo 
decision to reduce terrorist activities. 
 
3.  (U) Excerpts from the 2 November statement include: 
-- "...the Maoists have time and again repeated that at the 
moment it does not have a policy to go against any foreign 
power including America." 
--"...now when the Maoists have decided to stop such 
activities, which they (the U.S.) term as terrorist, it (the 
U.S.) has enlisted them as terrorists." 
--"...it has become clear. . . that the U.S. administration 
is trying to fulfill its evil designs by creating chaos in 
Nepal.  At a time when different countries of the world 
including the United Nations and the European Union are 
active in establishing peace in Nepal..." 
--"The decision taken by the U.S. administration, interfering 
with the internal politics of Nepal, is being seen as a plot 
not only against Nepal, but also against the neighboring 
countries." 
--"Political analysts believe that America has the ill 
intention of keeping a watch on India and surrounding China 
by establishing a military base in Nepal..." 
 
3.  (C) COMMENT.  In this initial reaction to the recent U.S. 
announcement of terrorist sanctions against them, the Maoists 
are clearly attempting to generate concern in Beijing and in 
New Delhi about America's growing influence in Nepal.  In 
addition, the Maoist statement makes an effort to drive a 
wedge between the "evil" U.S. actions in Nepal and the 
"peaceful" actions of European donors and the UN.  The 
explicit denial that the Maoists are planning to "go against" 
America suggests that the terrorist designation has served, 
so far at least, more as a warning against attacking U.S. 
interests than as a provocation.  Over the past few weeks, 
there appears to be in some of the Maoist leadership's 
rhetoric a gradual "walking back" from public threats against 
the U.S. 
 
4.  (C) COMMENT CONTINUED.  Despite the Maoists' commitments 
in their 21 October and 2 November statements, we have yet to 
see any solid, concrete movement away from violence. 
Instead, their campaign of violence continues unabated.  By 
depicting the terrorist designation as a U.S. attempt to 
derail putative efforts by the UN to restore peace, the 
Maoists are trying to deflect public and international 
attention from the real cause of instability in Nepal--their 
continued reign of terror in the countryside.  END COMMENT. 
BOGGS