US embassy cable - 04KATHMANDU1718

C O N F I D E N T I A L KATHMANDU 001718 
 
SIPDIS 
 
STATE FOR SA/INS, DS/IP/SA 
NSC FOR GREEN/DORMANDY 
LONDON FOR POL-BELL 
 
E.O. 12958: DECL: 08/27/2014 
TAGS: PTER, PGOV, ASEC, ETRD, NP, Maoist Insurgency 
SUBJECT: NEPAL: MAOISTS NARROW CLOSURE OF INDUSTRIES TO 
ONLY THOSE WITH U.S. INVESTMENT 
 
REF: A. KATHMANDU 1710 
     B. KATHMANDU 1679 
     C. KATHMANDU 1658 
     D. KATHMANDU 1632 
     E. KATHMANDU 1553 
 
Classified By: Ambassador James F. Moriarty, Reasons 1.4 (b/d) 
 
1. (U)  Late afternoon August 27, the Maoist-affiliated All 
Nepal Federation of Trade Unions (ANFTU) issued a statement 
asking industries, other than those with U.S. investment, to 
resume their operations.  The ANFTU said that that it had 
decided, however, to close down all multi-national 
corporations in Nepal with U.S. investment forever.  The 
ANFTU justified its threat  saying "It is because the US has 
been providing arms and military training to Nepal in order 
to suppress the Nepali people's "liberation movement" and US 
ambassadors (sic) are giving directives to the Army by 
visiting their divisions."  According to its press statement, 
the ANFTU demanded that the government withdraw its terrorist 
tag and make public the whereabouts of its detained members. 
 
2. (C) Earlier on August 27, NN Singh, managing director of 
Bottlers Nepal, the Coca Cola company here in Nepal, 
indicated his belief that a resolution to the shutdown of 
businesses was near.  Bottlers Nepal had been in meetings 
with all of the other threatened companies and the Federation 
of Nepalese Chambers of Commerce and Industry (FNCCI) with 
the government and the human rights NGO president, Sudip 
Pathak, who had been acting as go-between with the Maoists. 
Pathak and Singh explained their understanding that Bottlers 
Nepal would no longer be a target because 98 percent of the 
shares had been transferred to South African Bottling 
Company.  The Maoists were not concerned about trademark 
issues, but instead were focused on shareholders.  Bottlers 
Nepal plans to open the plants for sanitation purposes on 
August 28, see what the Maoist reaction is, and then open for 
production on August 29.  Pathak said the Maoists did not 
identify the names of the companies with direct US 
investment, and that it would take a few days to confirm who 
the new targets might be.  He speculated that the list might 
include the Radisson Hotel and the Hyatt Hotel, which has 
investment by Hyatt International. 
 
3. (C) COMMENT.  This last minute separation of  U.S. 
companies is a blatant attempt to divide and conquer.  We 
believe that US companies may well be the only companies that 
have refused to pay the Maoist extortion demands.  A senior 
representative from Coca Cola will meet with the Ambassador 
next week to discuss continuing business in Nepal.  After 
further sounding out of U.S. and foreign companies, we will 
prepare draft press guidance for possible use on Monday. 
MORIARTY