US embassy cable - 04KATHMANDU1688

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001688 
 
SIPDIS 
 
STATE FOR SA/INS, DS/IP/SA 
NSC FOR GREEN/DORMANDY 
LONDON FOR POL-BELL 
 
E.O. 12958: DECL: 08/24/2014 
TAGS: PTER, PGOV, ASEC, NP 
SUBJECT: NEPAL: INCIDENTS ALONG BLOCKADED HIGHWAYS 
 
REF: KATHMANDU 1679 
 
Classified By: Ambassador James F. Moriarty, Reasons 1.4 (b/d) 
 
SUMMARY 
-------- 
 
1. (C)  Minister of State for Foreign Affairs Prakash Saran 
Mahat gave a briefing on the current situation to reassure 
the diplomatic community.  However, there have been a couple 
of Maoist attacks along the highways and the traffic patterns 
are varying - decreasing on one of the main roads, returning 
to almost normal on the second main road, and increasing on 
the third main highway.  The Maoist-threatened industries 
remain closed and are continuing their talks with the 
government and negotiations with the Maoists to try to 
reopen.  Maoists continue to spread fear in Kathmandu by 
placing explosives in local government offices.  End Summary. 
 
MFA REASSURES DIPLOMATIC COMMUNITY 
---------------------------------- 
 
2. (C)  On August 24, Minister of State for Foreign Affairs 
Dr. Prakash Saran Mahat assured the diplomatic community that 
Kathmandu Valley was "not under siege," contrary to foreign 
press reports.  He explained that the Maoists were using fear 
tactics to show they could create major problems in the 
capital and could disrupt public lives.  Mahat said that 
although the Maoists lacked the capacity to enforce the 
blockade, people did not want to take the risk.  He predicted 
the Maoists would try and create incidents, but reassured the 
diplomatic corps that Kathmandu Valley was safe overall.  He 
acknowledged that while there were no major gatherings of 
Maoists near Kathmandu Valley, they were entering in small 
numbers to do acts to maintain the climate of fear.  Mahat 
set forth the steps the government had taken to provide 
security: establishing a convoy system, increasing patrols by 
8,000 security forces in Kathmandu Valley, mobilizing air 
surveillance, and providing increased security to diplomatic 
missions. 
 
3. (C) Mahat further noted that the Thai Embassy had received 
a letter threatening a proposed visit by the Thai Deputy 
Prime Minister (septel).  He reiterated that the government 
was providing security to all the diplomatic missions and 
their employees.  On the subject of possible peace talks, the 
Minister stated that the government was serious and would do 
its best, but it would not give in to the Maoist demands 
before talks just because of the pressure of the blockade. 
Foreign Secretary Acharya added that the Cabinet had agreed 
last week to follow through on its earlier promises to 
compensate industries and transporters hurt in this and 
earlier closures.  He said that the government has already 
started making payments to those harmed in previous 
incidents.  Nepal National Security Council coordinator MG 
Kul Bahadur Khadka told the Ambassador that the Deuba 
government has also guaranteed to pay if someone is killed 
during this blockade.  The government hoped that this would 
increase the readiness of people to travel. 
 
BLOCKADE CONTINUES, TRAFFIC VARIABLE, INCIDENTS STARTING 
--------------------------------------------- ----------- 
 
4. (C)  The blockade continues and incidents of Maoist 
attacks on the blockade route have started.  Major General 
Khadka told the DATT that he believed that the attacks will 
only slow traffic and force people to use Army provided 
convoys.  Traffic is variable - decreasing on one of the 
three major roads, but increasing on the others.  At mid-day 
on August 24, on the road going East, past Bhaktapur and east 
of Panchkahl (about 30 kilometers from Kathmandu), RNA 
Headquarters reported that Maoists had just ambushed a 
platoon of approximately 40 men who were clearing the road 
near Palephi.  The Army has dispatched attack helicopters and 
reinforcements.  RNA Headquarters is still obtaining 
preliminary information and there are no reports of 
casualties yet.  However, as of 2:00 pm August 24, the 
traffic traveling on this road does not seem to have been 
affected and was much higher than Monday.  Police sources 
explained that the Maoists had erected a blockade for two 
days, but had now removed it.  With the removal of that 
blockade, the number was back up to 552 total vehicles (192 
buses, 69 trucks, 145 light vehicles, 146 motor-bikes). 
5. (U)  On the night of August 23, off the Tribhuwan Highway 
(leading west to Pokhara), Maoists damaged three trucks that 
were traveling on a back road and not part of a military 
convoy.  Security forces responded to the scene.  This 
incident does not appear to have affected traffic and as of 
August 24, the traffic on this road had increased.  As of 
3:00 p.m. August 24, on the west and south Prithvi-Tribhuwan 
Highway there were a total of 806 vehicles (146 buses, 136 
mini-trucks, 303 light vehicles, and 221 motorbikes).  On the 
road north to and from Nuwakot, as of 2:00 p.m. August 24, 
fewer vehicles traveled than yesterday - a total of 31 
(compared to 187 yesterday) vehicles (1 bus, 5 mini-vans, 25 
light vehicles, and an unreported number of motorbikes). 
 
MAJOR COMPANIES REMAIN CLOSED - FRUSTRATION GROWING 
--------------------------------------------- ------ 
 
6. (C) The managing director of Coca Cola's business in 
Nepal, Bottlers Nepal, on August 24 again asked the Embassy 
for advice.  He stated that some of the companies, including 
Soaltee Hotel and Surya Tobacco, but not Coca Cola, were 
considering stopping payment of taxes to the government while 
they were shut.  Singh agreed with Emboffs that the blame for 
the industries' closure lies squarely with the Maoists.  He 
will suggest to Coca Cola India, which handles all press 
relations, that Coca Cola India issue a press statement 
condemning the Maoists.  In the meantime, he said that the 
companies continued to work with Sudip Pathak, President of 
Human Rights Organization of Nepal (HURON), and others to 
negotiate with the Maoists.  The companies and NGOs have held 
daily talks with the government, in reply to the Maoist 
demand that they pressure the government. 
 
OTHER VIOLENCE 
-------------- 
 
7. (U)  Within Kathmandu, Nepali police reported that at 
approximately 1130 a.m. local time, the RNA had defused a 
pressure cooker bomb in the land reform office in Babar 
Mahal, a location close to an area frequented by tourists. 
Also within the Kathmandu Valley, a bomb exploded on the 
second floor of a four-floor Agricultural Development Office 
building in Sukedhara, which is close to the area of the 
assassinations reported reftel.  An accountant broke his leg 
jumping out of a fourth floor window and the landlady 
sustained minor injuries.  In Nepalgunj, in the Terai, 
unconfirmed reports indicate that a bomb may have been 
detonated on the evening of August 23 near a hotel.  We are 
seeking confirmation. 
MORIARTY