US embassy cable - 04KATHMANDU1730

C O N F I D E N T I A L KATHMANDU 001730 
 
SIPDIS 
 
STATE FOR SA/INS, DS/IP/SA 
NSC FOR GREEN/DORMANDY 
LONDON FOR POL-BELL 
 
E.O. 12958: DECL: 08/30/2014 
TAGS: PTER, PGOV, EINV, ASEC, NP, Maoist Insurgency 
SUBJECT: NEPAL: BUSINESSES REMAIN CLOSED; INDUSTRY SECURITY 
GROUP UNITED 
 
REF: KATHMANDU 1718 
 
Classified By: Ambassador James F. Moriarty, Reasons 1.4 (b/d) 
 
1. (C)  Maoists muddied the waters on August 27 by issuing a 
press statement that indicated the Maoist-threatened 
businesses, other than those with U.S. investment, could 
reopen (reftel) and then an hour later issuing a 
contradictory statement that all the businesses must remain 
closed.  The Industry Security Group (ISG) (the U.S., U.K., 
French, German, and Indian Embassies, along with their 
respective binational Chambers of Commerce) met on August 30 
to discuss next steps.  The industry members were frustrated 
and sought guidance about options. 
 
2. (C)  The ISG agreed on five measures to put pressure on 
the Maoists. 
-- The ISG will issue another statement condemning the 
continued Maoist threats, the August 28 bombing of Nepal 
Lever (a Nepal-India joint venture company), threats against 
a German hydropower development site, and the threat to close 
down all multi-national corporations with U.S. investment. 
The U.K., as chair of the ISG, will circulate a draft 
statement to members on August 31. 
-- ISG members who are members of the EU will ask the EU to 
issue a statement condemning Maoist tactics and their effect 
on the Nepali people. 
-- Members will individually and privately undertake to urge 
the Prime Minister to consider meeting a Maoist demand to 
release information about the whereabouts and details of some 
Maoist detainees within a week.  (The GON had agreed to do 
this within a month, and perhaps earlier, and the ISG agreed 
that releasing this information sooner would be consistent 
with the GON's human rights commitments.) 
-- Industry and trade unions will get together to keep the 
issue and its effects on Nepali workers before the public. 
-- Industry members will check with the Federation of Nepali 
Chambers of Commerce and Industry (FNCCI) on its plan to 
develop a program of sustained activities to demonstrate the 
public's frustration with the effects of the Maoists' tactics. 
 
3. (C) COMMENT.  The conflicting Maoist demands and actions 
appear to be designed to divide the ISG members.  The Embassy 
believes it is key for the ISG to remain united by issuing an 
ISG statement condemning not only the continued closure of 
industries, but also the threat against businesses with U.S. 
investment.  Embassy will forward the text of the ISG 
statement to the Department once it is agreed upon. 
MORIARTY