US embassy cable - 04KATHMANDU1696

UNCLAS SECTION 01 OF 03 KATHMANDU 001696 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OPRC, PGOV, PREL, KMDR, NP 
SUBJECT: WEEKLY NEPAL MEDIA REPORT FROM AUGUST 17 TO 23, 
2004 
 
 
STATE FOR NP, AC, PM 
STATE FOR IN/R/MR 
STATE FOR SA/INS, PM/CBM, PM/PRO 
STATE FOR SA/PPD 
 
1.  MAOIST BLOCKADE 
 
-- RNA providing air cover: The Royal Nepalese Army 
(RNA) is to provide air cover as security for vehicles 
entering and leaving Kathmandu in an attempt to break 
the Maoist blockade of Kathmandu Valley. (Centrist "The 
Kathmandu Post," E/D, 8/23) 
 
-- Int'l media spreading rumors: Minister for 
Information and Communications Dr. Mohammed Mohsin has 
alleged the international media of spreading rumor.  Dr. 
Mohsin, who is also the spokesman of the government, 
said that the government had been taken aback by the way 
international media were giving news that could result 
into panic.  "There is no truth in news reports that say 
Kathmandu is under siege," he said. (Media reports, 
8/23) 
 
-- Valley isolated as blockade plugs main entry points: 
"The Maoists-imposed indefinite economic embargo on the 
capital has paralyzed life along the busy Prithvi 
Highway.  The Valley has remained isolated and though 
the government may claim that things are picking up, 
statistics belie its claim.  The country's busiest 
highway, where thousands of vehicles used to get stuck 
for hours due to traffic jams, was deserted." (Pro-India 
"The Himalayan Times," E/D, 8/22) . The Kathmandu Valley 
has been cut off from the rest of the country due to the 
indefinite highway blockade since Wednesday called by 
Maoist-affiliated student organizations and trade 
unions.  The ANNISU-R had called for the blockade 
demanding the government to make public the whereabouts 
of missing student leaders, enquiry into the deaths of 
their leaders and compensation to the families of those 
killed by security forces. (Major reports, 8/19) 
 
2. MAOIST INSURGENCY 
 
-- Maoist attack Khalanga second time: The Maoists 
attacked Jumla Khalanga, the district headquarters of 
Jumla last night, killing one security personnel and 
abducting 14 persons - six government staffers, 
including chiefs of Revenue Office and Agriculture 
Development Office (ADO), six security personnel and two 
civilians.  Rebels also torched five government offices 
and plundered two houses.  Royal Nepalese Army (RNA) 
claimed four deaths on the rebel side. (Major reports, 
8/23) 
 
-- Maoists smuggling yarsagumba: Maoists are smuggling 
yarsagumba (Cordyceps sinensis), a pricey herb believed 
to be a cure for impotency and found in the country's 
western highlands, into India and Tibet on a massive 
scale, and levying duties on traders. (The Kathmandu 
Post, 8/23) 
 
-- Companies unwilling to resume operation: Most 
companies that downed their shutters due to Maoist 
threats have rejected government appeals to resume 
operation, stating that they could not do so unless both 
the Maoists and the government reach an agreement to 
amicably put an end to the present crisis. (The 
Kathmandu Post, 8/22) 
 
-- UN offers to mediate before it's too late: Assistant 
Secretary General of United Nations and Deputy Executive 
 
SIPDIS 
Director of UNICEF Kul Chandra Gautam has advised the 
government and Maoists to seek international assistance 
in resolving the present conflict before it deteriorates 
further.  Gautam said UN Secretary General Kofi Anan 
could offer help to Nepal for establishing peace, if 
conflicting parties show their willingness. (The 
Kathmandu Post, 8/21) 
 
-- UK adopting `wait and watch' policy: British Special 
Representative to Nepal Sir Jeffrey James Friday said 
the United Kingdom was adopting a "wait and watch" 
policy regarding whether to designate the Maoists a 
terrorist outfit. (Media reports, 8/21) 
 
-- Maoists walked out from talks due to pressure from 
RIM: A year after the Maoists walked out from talks with 
the government, then Prime Minister Surya Bahadur Thapa 
has said that the Maoists were under pressure from RIM. 
"RIM's analysis was that the Maoist movement, failed 
worldwide, was gaining new heights in Nepal.  RIM 
suggested that the Maoists should go for 'fight to 
finish' and Maoists complied." (Centrist "Kantipur," 
V/D, 8/19) 
 
-- Maoist threats prompt 11 industries to down shutters: 
Hotel Soaltee Crowne Plaza has shut down indefinitely 
following multiple bomb attacks by suspected Maoist 
rebels.  About a dozen industries, including 
multinationals, are to down shutters from tomorrow 
(Tuesday) following threats from the Maoists' trade 
union wing. (Major reports, 8/17) 
 
 
3. CURRENT AFFAIRS 
 
-- Nepalis taken hostage in Iraq: A shadowy Islamist 
group has announced the purported seizure of 12 Nepali 
men for cooperating with U.S. forces in Iraq, according 
to a statement posted on an Islamist website Friday. 
(The Katmandu Post and others picking up from AFP news, 
8/21)  On August 22, The Kathmandu Post reported: "The 
actual number of Nepali workers reportedly taken hostage 
by the Ansar al-Sunna Army, a militant outfit in Iraq, 
is 22, claimed Nepal Association of Foreign Employment 
Agencies (NAFEA) President Nirmal Gurung.  Meanwhile, 
the government formed a three-member probe committee to 
secure information on the abduction.  The government 
does not allow citizens to work in Iraq due to security 
concerns but a large number of Nepalese workers have 
reportedly been channeled to war-torn country via India. 
(Major reports, 8/22) 
 
-- Deuba to be declared incompetent again? Prime 
Minister Sher Bahadur Deuba who came to power accepting 
every condition the king put forth is on his way to be 
declared incompetent again.  The government's inability 
to provide security to industries, particularly Hotel 
Soaltee, which also has the king's investment, is 
leading to this. Deuba was sacked on October 4 last year 
on charges of "incompetence" by the king. (Pro-Nepali 
Congress "Rastriya Bimarsha," V/W, 8/20) 
 
-- Maulana involved with international terrorist: Some 
Islam teachers, Maulana, arrested from separate places 
in Kathmandu six days back are suspected to have links 
with international terrorists.  "They have a lot of 
accusations and we are investigating them.  You please 
understand my hints and do not try to step forward in 
this case," Home Minister Purna Bahadur Khadka told a 
group of Muslims who had gone to inquire about the 
arrest. (Centrist "Rajdhani," V/D, 8/20) 
 
4.  JOURNALIST KILLED; MEDIA OUTRAGED 
 
-- Journalists and professionals of various 
organizations staged protest demonstration in the 
capital Wednesday against Maoists' continuing activities 
of killing, abduction and issuing death threats to 
journalists in the recent days.  Journalists took to the 
streets Wednesday protesting the Maoists' "atrocities 
against press freedom" following the killing of Dekendra 
Thapa, a journalist of Radio Nepal recently.  (The top 
daily newspapers have all expressed outrage over the 
killing of Dekendra Thapa, Radio Nepal journalist.  The 
Kathmandu Post and Kantipur published strong worded 
front-page editorials while the others have regular 
editorials.) (Major dailies, 8/19) 
-- FNJ's letter to Prachanda: In an open letter 
addressed to Maoist Chairman Prachanda, Federation of 
Nepalese Journalists Wednesday, warned Maoists not to 
repeat crimes against journalists, and to respect the 
right to freedom of expression and their fundamental 
rights.  Such anarchist, inhuman and violent actions 
would project them as enemies in the eyes of the 
journalists, the letter stated. "Let's hope the Maoists 
will correct their crimes and mistakes and exhibit 
political and humane behavior." (The Kathmandu Post, 
Kantipur, 8/19) 
-- Maoists issue death threat to ten journalists: 
Following the assassination of journalist Dekendra Raj 
Thapa, the Maoists have issued death threats to ten more 
journalists. (The Kathmandu Post, 8/18) 
 
-- Maoists kill journalist: Maoists have once again 
indulged in a gruesome murder of a journalist in 
Dailekha district.  Maoists abducted Dakendra Thapa, a 
journo working from Dailekh for Radio Nepal last week 
and killed him on August 11 on charges of spying. (Media 
reports, 8/17) 
5.  OTHERS 
-- U.S. introduces biometric visa processing system: The 
U.S. Embassy in Nepal has introduced a new biometric 
visa processing system that requires electronic scanning 
of fingerprints for all non-immigrant and immigrant visa 
applicants with effect from July 15. (The Kathmandu 
Post, www.kantipuronline.com, 8/17) 
-- Nepal-China agreements: China and Nepal signed four 
agreements on economic and technological cooperation and 
other areas in Beijing Monday afternoon.  The documents 
include the Agreement on Economic and Technological 
Cooperation between the governments of the two 
countries, an agreement on Nepal's use of a road in 
Tibet to transport goods, an agreement on a bridge 
across the borders of the two countries and an agreement 
on automobile transportation. (Reports, 8/17) 
MORIARTY