US embassy cable - 05KATHMANDU1384

UNCLAS SECTION 01 OF 04 KATHMANDU 001384 
 
SIPDIS 
 
DEPT FOR NP, AC, PM 
DEPT FOR IN/R/MR 
DEPT FOR SA/INS, PM/CBM, PM/PRO 
DEPT FOR SA/PPD 
 
E.O. 12958: N/A 
TAGS: OPRC, PGOV, PREL, KMDR, NP 
SUBJECT: WEEKLY NEPAL MEDIA REPORT FROM JUNE 21 TO 27, 
2005 
 
 
1. POLITICAL AFFAIRS 
 
Subedi released from detention: Ending a weeklong drama, 
the government released Navaraj Subedi, general secretary 
of People's Front from detention as per the second order 
from the Supreme Court on Friday.  He had been re-arrested 
nine days ago and the government had claimed at the court 
that he was not in their detention. (Major dailies, 6/25) 
 
Relations with China exemplary: Information and 
Communication Minister and government spokesperson Tanka 
Dhakal said that Nepal's relation with China is exemplary. 
He praised China's policy of non-interference and said 
Nepal wished for similar type of relation with other 
friendly countries as well.  "Nepal wants to develop 
relations of equality with neighbors," Dhakal said. 
(Centrist "Kantipur," V/D, 6/26. Cir: 100,000) 
 
Proposal to make king chancellor of all universities: 
Plans are afoot to issue a new ordinance making the King 
the chancellor of all universities - private or public. 
At present, out of the total seven universities, the King 
is the chancellor of two - Tribhuvan University (TU) and 
Mahendra Sanskrit University (MSU).  According to 
University Grants Commission (UGC), which is drafting the 
new ordinance, the move is aimed at freeing the 
politicization of universities. (Compiled from major 
dailies, 6/24) 
 
`Parties, Maoists may unite for common goal': CPN-UML 
General Secretary Madhav Kumar Nepal, said that Maoists 
and other political parties could brush aside their 
differences and share the common objective of the ongoing 
movement for democracy.  "We don't insist that they join 
our movement, but we can attack the same target in 
different ways," said Nepal, while addressing a talk 
program on Thursday.  "But they (Maoists) should lay down 
their arms to exert pressure for constituent assembly 
elections," he said. (Centrist "Kathmandu Post," E/D, 
circulation: 20,000, 6/24) 
 
`Monarchy treading on thin ice': Leaders of the agitating 
seven-party alliance have urged the king to end his active 
rule if he wishes the monarchy to continue in the country. 
The leaders said the institution of monarchy itself would 
be at risk if the King refused to give up his active rule. 
"The time has come for the King to choose between a 
republic and a liberal democracy in the country," said 
Nepali Congress President, Girija Prasad Koirala.  "The 
King should realize that if the republicans and democrats 
unite, there would be no future for the monarchy." (The 
Kathmandu Post and other dailies, 6/23) 
 
2.  U.S. - NEPAL 
 
Camp arrives: U.S. Principal Deputy Assistant Secretary 
for South Asian Affairs, Donald A. Camp, arrived in 
Kathmandu on a two-day visit Sunday.  Upon arrival at the 
Tribhuvan International Airport, Camp told reporters that 
it was his regular consultative visit.  In Kathmandu, Camp 
will meet cabinet vice-chairmen duo Dr Tulsi Giri and 
Kirtinidhi Bista, ministers and leaders of political 
parties.  He is the second senior U.S. official, after 
Assistant Secretary of State for South Asian Affairs, 
Christina Rocca, to visit Nepal after the Royal move of 
February 1. (www.nepalnews.com and other dailies, 6/27) 
 
Moriarty warns of disaster if Maoists win: U.S. ambassador 
to Nepal, James F. Moriarty, said a victory for the 
Maoists would be a humanitarian disaster of huge 
proportions for Nepal.  "The next year will be absolutely 
critical for Nepal," said Moriarty at a public program 
organized by the East-West Center in Honolulu.  According 
to the report, Moriarty predicted such a scenario would 
send millions of refugees across into neighboring India. 
"Should we give $2 million of security assistance this 
year, or $500 million to refugee camps scattered 
throughout India in the not-too-distant future?" Moriarty 
asked.  "Within the next 12 to 14 months, Nepal is clearly 
going to be going down one of two paths.  One, the path of 
reconciliation between the palace and parties to come up 
with a functioning game plan to get the country back to 
democracy and also to deal with the insurgency," he said. 
"The other path is bleaker - no reconciliation, 
increasingly larger demonstrations in Kathmandu, and 
Maoists destabilizing the situation with more violence," 
he added. (Pro-India "Himalayan Times," E/D, 6/25, Cir: 
above 25,000) Note: All major daily newspapers have 
published this story, most on their front pages. 
 
Confusing  at  best: ". But what has the U.S.,  being  the 
only  superpower in the world, done to help bring about  a 
negotiated  settlement? As for Moriarty's first condition, 
the  two political forces had been, till three years  ago, 
united against the Maoists; but what happened then? . Many 
may  interpret the third condition as amounting to a  plea 
for more military aid to fight the Maoists. So one wonders 
how  the frequent US statements ruling out the possibility 
of a military solution and the American tendency to supply 
more arms are consistent. The US approach is confusing  at 
best." (Editorial in The Himalayan Times, 6/27 in reaction 
to Ambassador Moriarty's remarks in Hawaii) 
 
U.S.' myopic vision: ". The argument that since the King 
has taken the step, even if it is wrong, and so must be 
supported, is at best a very faulty and dangerous one. Was 
February 1 necessary? . While agreeing with Moriarty that 
Nepal's security forces do need U.S. military assistance, 
I cannot agree with his reason for doing so. The bogey of 
Maoist threat is just bogus.  Agreeing to the reason 
offered by Moriarty means recognizing a threat that does 
not exist now, and is unlikely in the future as well. And 
even after the lifting of the emergency, many of the 
structures put in place in the first three months since 
February First still remain.  The pity is that while UK's 
Ambassador to Nepal Keith Bloomfield and the European 
Union `see' through it, Moriarty and the U.S. don't.  Or 
perhaps pretend otherwise. Moriarty also said that the 
next 12-14 months would be crucial. True. He and his 
government will do a great service to the cause of 
restoration of democracy and rule of law here and the 
subsequent resolution of the conflict if they stop being 
myopic." (Opinion in The Kathmandu Post, 6/27, also in 
reaction to Ambassador Moriarty's remarks in Hawaii) 
 
U.S. to continue aid to fight trafficking: A U.S. official 
said Friday that U.S. aid to Nepal to fight trafficking 
would not be reduced though Nepal has moved to Tier One 
from Tier Two in the Trafficking in Person Report (TIP). 
The report was released on June 3 in Washington by the US 
State Department.  Presenting details of the report in the 
capital, official with the TIP Report Section, Mark 
Taylor, said, "Improving status obviously means it needs 
less priority but there is no such hard and fast rule in 
the case of Nepal regarding resources and support."  "We 
are looking for quality response of the government in 
combating trafficking," he said.  (Compiled from The 
Kathmandu Post and pro-India "Annapurna Post," V/D, 
circulation: 30,000, 6/25-26) 
 
Correspondence with American Ambassador about Bhotekoshi 
reimbursement controversy: Bhotekoshi Power Company has 
written a letter to the U.S. Ambassador saying that Nepal 
Electricity Authority owes it four million dollars.  The 
BPC has sent a copy of the latest letter that was earlier 
sent to Vice Chairman and Water Resources Minister Tulsi 
Giri to the U.S. ambassador too.  BPC has claimed that NEA 
owes it four million dollars, including the interest.  A 
bill on free entry to Nepali garment products in the U.S. 
markets is currently is stuck in the U.S. Senate due to 
Bhotekoshi controversy.  NEA has said that it cannot pay 
the asked amount.  NEA has said that BPC can go to 
international court if it is unhappy with the present 
arrangement.  The government has formed a committee headed 
by Mohan Bahadur Basnet, secretary of Water and Energy 
Commission to resolve the problem. (Kantipur, 6/23) 
 
3.  MAOIST INSURGENCY 
 
Dozen security men killed in Arghakhanchi: At least 12 
security personnel were killed in clashes with Maoist 
rebels in Arghakhanchi Saturday.  Six policemen and six 
soldiers were among those killed during the skirmishes. 
(Media reports, 6/27) 
 
Nepal Maoists deny hand in Bihar attack: The Maoists in 
Nepal have denied any involvement in Friday's attack in a 
district in Bihar.  Spokesperson of the Maoists, Krishna 
Bahadur Mahara, in a statement on Saturday, said there was 
no involvement of Janasena (People's Army) and his party 
in the attack.  "We have no policy of such joint attacks," 
he said.  He said he seriously doubted a conspiracy of 
"national as well as foreign powers" to defame his party. 
(Compiled from reports, 6/25-26) 
 
Rebels kill 2 villagers, 2 NC (D) cadres: Suspected 
Maoists killed four people, including two NC (Democratic) 
cadres, in separate incidents over the past three days. 
The incident was in stark contrast to Maoist supremo 
Prachanda's statement not to kill unarmed civilians. 
(Media reports, 6/22) 
 
Case filed against top Maoist leaders: The government on 
Tuesday filed cases at an Appellate Court against a dozen 
Maoist functionaries including Maoist chairman Prachanda 
and Ram Bahadur Thapa alias Badal.   Badal is said to be 
one of the military strategists of the underground outfit 
that is waging an armed rebellion for the last nine years. 
A government attorney made top Maoist leaders defendants 
in nearly 18-months-old case in which two security 
personnel were killed in a landmine explosion in Chitwan 
district. (www.nepalnews.com, 6/22) 
 
4.  STATE OF THE MEDIA 
 
Journalists hold nationwide protests: Journalists across 
the country took out protest rallies against the 
government's restriction and suppression of independent 
media on Sunday. Expressing their solidarity with Nepali 
journalists' movement for complete press freedom in Nepal, 
journalists in India have decided to take out a rally in 
Birpur, India, on July 6. (The Kathmandu Post, 6/26) 
 
Blast editor detained, interrogated: Police on Thursday in 
Dharan detained the editor of Blast Times and its chief 
reporter Giridhar Sapkota, alleging them of publishing 
news articles supporting the Maoists. (The Kathmandu Post, 
6/25) 
 
Radio journalists issue Kathmandu declaration: The 
agitating radio journalists issued an eight-point 
Kathmandu Declaration urging the government to immediately 
allow broadcasts of news from the FM radios.  The first 
national convention of the independent broadcasters, 
journalists and supporters issued the declaration.  More 
than 40 participants including radio station managers, 
representatives and journalists took part in the 
convention. (Major dailies, 6/25) 
 
Journalists organize sit-in: In protest of government 
intervention and new advertisement policy, journalists 
organized sit-in in Kathmandu.  Leaders of seven political 
parties were also present at the sit-in protest. (Major 
dailies, 6/24) 
 
5.  OTHER 
 
Britain summons Nepali envoy: Two days after Nepal 
summoned British envoy for clarifications, Nepal's 
traditional friend and ally Britain summoned the Royal 
Nepalese Ambassador to London, Prabal SJB Rana, to the 
Foreign and Common Wealth Office.  British officials 
expressed dismay at the way Nepal sought clarification 
from their envoy in Kathmandu.  On Monday, British 
ambassador in Kathmandu, Keith G. Bloomfield, was summoned 
to Shital Niwas to express `displeasure' on his recent 
remarks regarding rule of law and constitutional 
provisions in the country.  British Foreign office told 
ambassador Rana that Keith Bloomfield's remarks deemed 
"objectionable" to the Nepali government were well within 
the broad framework of the British policies vis--vis 
democratic values in general and the derailment of 
democracy in Nepal in particular.  Rana was told that 
Bloomfield's remarks need not be mistaken for 
"interference in the internal affairs of Nepal." On the 
contrary, the remarks made may be viewed as "an expression 
of friendly concern." (Kantipur and The Himalayan Times, 
6/23) 
British envoy summoned for his remarks: Ministry for 
Foreign Affairs Monday summoned British Ambassador Keith 
Bloomfield for interfering in internal affairs of Nepal 
while speaking at public functions recently.  Foreign 
Secretary Madhu Raman Acharya sought verbal clarification 
 
SIPDIS 
from Bloomfield and asked him to remain within the 
framework of diplomatic norms and not to make comments on 
internal affairs of Nepal.  The British envoy, in recent 
days, had made remarks on democracy and rule of law at two 
separate programs in the Kathmandu valley last week. 
Ambassador Bloomfield had stressed on restoration of 
democracy and civil liberties in the country on two 
occasions recently.  "Rule of law, civil liberties and 
freedom of speech are integral parts of democracy," the 
ambassador had said, adding that democracy without these 
is unimaginable. (Major report in dailies, 6/21) 
MILLARD