US embassy cable - 04KATHMANDU1300

UNCLAS SECTION 01 OF 03 KATHMANDU 001300 
 
SIPDIS 
 
STATE FOR SA/INS AND DS/IP/NEA 
STATE ALSO PLEASE PASS USAID/DCHA/OFDA 
STATE ALSO PLEASE PASS PEACE CORPS HQ 
USAID FOR ANE/AA GORDON WEST AND JIM BEVER 
MANILA FOR USAID/DCHA/OFDA 
LONDON FOR POL/GURNEY 
TREASURY FOR GENERAL COUNSEL/DAUFHAUSER AND DAS JZARATE 
TREASURY ALSO FOR OFAC/RNEWCOMB AND TASK FORCE ON TERRORIST 
FINANCING 
JUSTICE FOR OFFICE OF THE DEPUTY ATTORNEY GENERAL/DLAUFMAN 
NSC FOR MILLARD 
SECDEF FOR OSD/ISA ALVERSON 
 
E.O. 12958: N/A 
TAGS: PINS, PTER, CASC, PGOV, NP, PHUM, Maoist Insurgency 
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, JULY 2-JULY 9, 
2004 
 
REF: A) Kathmandu 1260 
 
 
SUMMARY 
------- 
 
1.  Maoists assassinated the Mayor of Pokhara, reportedly in 
retaliation for the deaths of six rebels and for failing to 
abandon his post.  The four political parties who have 
declined joining Deuba's cabinet reportedly have entered 
into talks with Maoist leaders.  A senior member of the 
Maoist Central Committee reportedly stated that the Maoists 
will accept a ceasefire if their demand for a constituent 
assembly is met.  The Maoist-aligned All Nepal National 
Independent Students Union - Revolutionary (ANNISU-R) 
threatened to resume last month's nation-wide educational 
strike.  In various incidents with security forces 32 
Maoists and 27 security personnel were allegedly killed 
while 9 security personnel were injured.  Maoists claimed 
responsibility for the assassinations of two government 
officials, in addition to the Pokhara Mayor.  Due to Maoist 
violence and harassment, 7 civilians were reportedly killed, 
one tortured to death, 14 injured, and over 200 teachers and 
students abducted.  Various incidents of Maoist bombings, 
looting and blockades were also reported.  End Summary. 
 
MAOISTS ASSASSINATE MAYOR OF POKHARA 
------------------------------------ 
 
2.  On July 2, Maoists assassinated the Mayor of Pokhara, 
Harka Bahadur Gurung, and seriously injured Gurung's 
bodyguard and driver.  Three rebels reportedly opened fire 
at 11:45 AM as the mayor was leaving his home.  Gurung is 
the second mayor to be assassinated by Maoists after Mayor 
Gopal Giri of Birgunj was killed on January 15, 2004.  Local 
Maoists have publicly claimed responsibility, stating that 
the assassination was retaliation for six rebels gunned down 
in Kaski District on June 30.  According to other media 
reports, the killing was retaliation for Gurung's 
unwillingness to abandon his post, and as a result of the 
assassination, other Pokhara local officials are considering 
resigning their positions. 
 
AGITATING PARTIES ALLEGEDLY HOLDING TALKS WITH MAOISTS 
--------------------------------------------- ------------ 
 
3.  Nepali Congress President, Girija Prasad Koirala, 
reportedly spoke with Maoist leaders Prachanda and Dr. 
Baburam Bhattarai on July 1 while in New Delhi for medical 
treatment.  Separately, media on July 8 reported that the 
four agitating political parties (those parties who declined 
to join Prime Minister Deuba's government), including 
Koirala's faction of the Nepali Congress, have begun a 
dialogue with the Communist Party of Nepal-Maoists. 
Chairman of People's Front Nepal, Amik Sherchan, reportedly 
stated that the present government was incapable of holding 
talks with the Maoists, adding that the parties would 
discuss a "new constitution" with the Maoists.  Koirala 
reportedly stated on July 7 that the dialogue with the 
Maoists had already begun. 
 
MAOISTS ALLEGEDLY WILLING TO CONSIDER CEASEFIRE 
--------------------------------------------- -- 
 
4.  On July 7, Bam Dev Chhetri, a senior member of the 
Maoist Central Committee, said in a phone interview with a 
local journalist that the Maoists would be prepared to 
accept a ceasefire agreement if their demand for a 
constituent assembly was met.  "We will not accept anything 
short of constituent assembly elections."  Chhetri also 
reportedly said the Maoists would not disarm during any 
negotiations, as it "would be tantamount to surrender." 
Vernacular weeklies are reporting that the government is 
preparing for talks with Maoists.  Padma Ratna Tuladhar, 
mediator during two previous rounds of talks has apparently 
departed the capital to hold talks with Maoists.  Meanwhile, 
Deputy Prime Minister Bharat Mohan Adhikari has been quoted 
as stating that the government is willing to discuss 
everything with the Maoists during peace negotiations, 
including the notion of a constituent assembly. 
 
ANNISU-R THREATENS ANOTHER STRIKE 
--------------------------------- 
 
5.  On July 6, the Maoist-aligned All Nepal National 
Independent Students' Union - Revolutionary (ANNISU-R) 
threatened to resume the educational strike that closed 
schools nationwide for 13 days last month.  According to 
ANNISU-R, the government has not created a climate conducive 
to holding talks with the students, despite the GON removing 
the "terrorist label" from the organization. 
 
MAOISTS CONTINUE TO KILL, MAIM, ABDUCT AND DISPLACE 
--------------------------------------------- ------ 
 
7.  On July 2, according to the Kathmandu Post, Maoists 
brutally killed cattle dealer Riyaz Mushalman in Rupandehi 
District two days after he was abducted.  His body was 
recovered with both legs chopped off.  The same day in 
Nuwakot District, a man who had been reported as abducted 
was also killed.  On July 3, in Doti District, a farmer lost 
his right leg from a socket bomb explosion while being 
dragged by a Maoist to attend an indoctrination program. 
Also according to the Kathmandu Post, on July 4, Maoists 
dragged a man from his house and beat him to death in 
Bardiya District; no reason was given for the murder.  In 
Nepalgunj, six pedestrians were injured by a Maoist roadside 
bomb blast.  On July 5 in Doti District, two Maoists died 
and seven civilians who had been forced to participate in an 
indoctrination program were injured when a bomb carried by 
the Maoists detonated. 
 
8.  On July 3, Maoists abducted dozens of students and four 
teachers from Himalayan Secondary School in Ilam District. 
On July 4 in Ilam District, six Maoists abducted 25 
additional students while the students were on their way to 
Purnasmarak Secondary School.  On July 5, Maoists reportedly 
forced 150 teachers from three dozen schools in Udayapur 
District to participate in indoctrination programs.  On July 
6, Maoists in Gulmi District abducted five youths, allegedly 
for mistreating local dalits (members of the untouchable 
caste). 
 
9.  On July 2, local media reported that the insurgency has 
forced local merchants (of Rangeli Bazaar) to migrate from 
the district.  Media reporting from Darchula District 
indicate that 150 families have been displaced as a result 
of Maoist orders that a member from each family must join 
the rebels.  A similar report from Rasuwa District (north of 
Kathmandu on the border with Tibet) stated that "most youth" 
from the district have left for foreign countries to escape 
the insurgency.  Maoists have also allegedly barred people 
in west Taplejung District from visiting Fungling, the 
district headquarters, for fear that they would spy for 
security personnel. 
 
10.  In Kalikot District on July 2 rebels detonated a bomb 
that damaged two water tanks and disrupted the water supply 
to the district headquarters.  In Kailali District on July 
4, an alleged Maoist group looted goods worth hundreds of 
thousands of rupees from a restaurant and a cloth shop. 
Meanwhile, Maoists have reportedly called for an indefinite 
transportation blockade starting July 3 in Surkhet District, 
following the establishment of an army camp there.  On July 
7 in Taplejung District, Maoists set ablaze a passenger bus 
after forcing the passengers off the bus. 
 
11.  A report from Morang District on July 5 said four 
former Maoists, including the area commander of Bhojpur 
District, issued a statement denouncing the Maoist party. 
They reportedly renounced terrorist activities retroactively 
since October 15, 2003, and submitted NPR 775,000 (about USD 
10,000) and their weapons to the District Secretary. 
 
MAOISTS ATTACK SECURITY PERSONNEL 
--------------------------------- 
 
12.  On July 4 in Nuwakot District, two security personnel 
were injured in a Maoist-laid land-mine explosion.  The same 
day in Dang District, Maoists killed a member of the Nepal 
Armed Police Force (APF).  Eleven security personnel were 
killed in a clash in the Salyan District on July 5.  A dozen 
policemen and one civilian were killed when a Maoist 
landmine destroyed their vehicle on July 5 in Birgunj (REF 
A).  Meanwhile, Maoists assassinated two people in Kathmandu 
in broad daylight on July 6, Deputy Superintendent of Police 
Uttam Bahadur Karki and the Chairman of Metropolitan City 
Ward 12, Mahesh Man Shrestha.  On July 8, Maoists killed one 
soldier in Chitwan District.  The same day in Banke 
District, Maoists killed one member of the Armed Police 
Force and another individual, although the latter's 
affiliation is not known. 
 
SECURITY FORCES KILL MAOISTS 
---------------------------- 
 
13.  On July 3, security forces shot dead two alleged 
Maoists in a clash in Ilam District and claim to have 
recovered arms belonging to the rebels.  On July 4, security 
forces in Rupandehi District shot dead two unidentified 
persons.  Security forces in Dang District reported 
recovering the bodies of 16 Maoists killed in a clash that 
occurred on July 5.  Security forces shot and killed six 
rebels in Dailekh District on July 6.  Two RNA soldiers were 
injured in the incident.  The same day, two alleged Maoists 
were shot dead in Rupandehi District.  On July 8, security 
forces shot dead four Maoists, including two women, in 
Gorkha District.  Five security personnel were injured in 
the clash. 
 
MORIARTY