US embassy cable - 05KATHMANDU2686

UNCLAS KATHMANDU 002686 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR S/CT - RHONDA SHORE, ED SALAZAR 
DEPT FOR SA/INS, SA/RA 
NCTC 
 
E.O. 12958: N/A 
TAGS: PTER, ASEC, KCRM, EFIN, NP 
SUBJECT:  NEPAL: 2005 COUNTRY REPORTS ON TERRORISM 
 
REF: STATE 193439 
 
UPDATED REPORT 
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1. (U) Nepal 
In April, 2003, Nepal signed an agreement with the U.S. 
Government establishing an antiterrorism assistance program. 
The Government of Nepal continued its strong support of the 
global coalition against terrorism in 2005, and was 
responsive to both US and multilateral efforts to police 
international terrorism.  On January 31, Nepal passed the 
Bank and Financial Institutions Ordinance, which regulates 
the actions of financial institutions in Nepal and provides 
the Central Bank with authority to freeze and confiscate the 
accounts of terrorists.  Nepal has diplomatic relations with 
North Korea and North Korea has an Embassy, headed by an 
Ambassador, in Nepal.  Nepal's primary focus, however, 
remained the Maoist insurgency, active in Nepal since 
February 1996.  There are credible reports that Maoist 
leaders and cadre cross into India to evade capture or to 
seek rest or medical assistance. 
 
After unilaterally withdrawing from a seven-month cease-fire 
in August, 2003, the Maoists resumed full-scale hostilities. 
In 2005 alone, Maoists have been responsible for the deaths 
of at least 263 civilians and 330 government security forces. 
 The Government says that Nepalese security forces have 
arrested thousands of suspected Maoists and killed more than 
1009 during the year.  In the worst civilian casualty since 
the beginning of the insurgency, on June 6, the Maoists 
ambushed a passenger bus, killing 41 people and injuring 71 
in a landmine blast near Chitwan in southern Nepal.  The 
Maoists imposed two nation-wide blockades, February 12-26 and 
April 2-12, shutting down traffic and commerce throughout 
most of Nepal.  During the February blockade, the Maoists 
targeted civilian drivers of vehicles who dared to defy the 
blockade and shot and killed an Indian truck driver.  During 
the Maoists' unilateral three-month cease-fire (September 
3-December 3), killings decreased, but other violence and 
threats of violence, including kidnappings and extortion, 
continued. 
 
Repeated anti-US rhetoric suggests the Maoists view U.S. 
support for the Government as a key obstacle to their goal of 
establishing a communist dictatorship.  Maoist supreme 
commander Prachanda issued a press statement with his Indian 
counterpart on September 1 calling for continued armed 
struggle and directly threatening U.S. interests. 
 
In addition to threats against American-affiliated business 
enterprises, Maoists have threatened attacks against U.S. and 
international NGOs, including those associated with Peace 
Corps programs.  In September 2004, Maoists attacked an 
American NGO worker in midwestern Nepal.  They continued to 
extort money from Nepalis and foreigners, including American 
tourists, to raise funds for their insurgency.   The Maoists' 
public statements have criticized the United States, the 
United Kingdom, and India for providing security assistance 
to Nepal.  In September 2004, Maoists bombed the American 
Center in Kathmandu.  The attack occurred during non-duty 
hours and there were no injuries, but the blast damaged the 
facility. 
 
Security remains weak at many public facilities, including 
Tribhuvan International Airport in Kathmandu.  The United 
States and others are actively working with the Government to 
improve this situation, but limited Government finances, weak 
border controls, and poor security infrastructure could make 
Nepal a convenient logistic and transit point for some 
outside militants and international terrorists. 
 
Nepal is party to five of the 12 international conventions 
and protocols relating to terrorism and is a signatory to the 
Convention for the Suppression of Terrorist Bombings. 
 
2. (U) Embassy point of contact is Pol/Econ Chief Grace 
 
Shelton (sheltongw@state.gov). 
MILLARD