US embassy cable - 02KATHMANDU2369

UNCLAS SECTION 01 OF 04 KATHMANDU 002369 
 
SIPDIS 
 
STATE FOR SA/INS AND DS/IP/NEA 
STATE ALSO PLEASE PASS USAID/DCHA/OFDA 
USAID FOR ANE/AA CORDON WEST AND JIM BEVER 
MANILA FOR USAID/DCHA/OFDA 
LONDON FOR POL/REIDEL 
TREASURY FOR GENERAL COUNSEL/DAUFHAUSER AND DAS JZARATE 
TREASURY ALSO FOR OFAC/RNEWCOMB AND TASK FORCE ON TERRORIST 
FINANCING 
JUSTICE FOR OFFICE OF THE DEPUTY ATTORNEY GENERAL/DLAUFMAN 
 
SENSITIVE 
 
E.O 12958: N/A 
TAGS: PTER, PHUM, CASC, PGOV, IN, NP, Maoist Insurgency 
SUBJECT:  NEPAL: UPDATE ON MAOIST ACTIVITIES, DEC 07-13 
 
REF: (A) KATHMANDU 2316 
 
     (B) KATHMANDU 2151 
     (C) KATHMANDU 2301 
 
1. (U) Summary:  While the Government of Nepal explored 
opportunities for peace talks this week, Maoist attacks on 
passenger buses, schools and other non-military targets 
continued to kill and injure civilians.  Violence and 
extortion prompted hundreds of additional Nepalis to join 
the thousands already displaced internally, and tens of 
thousands are reported to be fleeing to India.  Maoists 
destroyed conservation research facilities in the Annapurna 
region, and the World Bank called off several development 
projects in Midwestern Nepal.  An American citizen received 
an extortion letter.  Political parties and NGOs denounced 
the Maoist-called educational strike and continuing 
violence against civilians, while human rights 
organizations criticized the army for the death of several 
minors. End summary. 
 
GON IN TOUCH WITH MAOISTS 
------------------------- 
 
2. (U) Saying that "security matters need not be 
transparent to the public," Home Minister Dharma Bahadur 
Thapa told reporters that his government is in touch with 
the Maoist insurgents through a group of human rights 
activists, and is exploring the opportunity for official 
talks.  The minister called upon the insurgents to inform 
the government of their agenda and to come to the 
negotiation table. 
 
PASSENGER BUSES UNDER ATTACK; 
MAOIST INCIDENTS INCREASE IN UPADAYA 
------------------------------------ 
 
3. (U) At least five people were killed and 30 others 
injured in a December 8 landmine attack on a passenger bus 
in eastern Sindhuli district.  The front of the bus was 
completely destroyed in the attack, which killed three 
civilians and two members of the security forces. 
 
4. (U) Charging that buses have been carrying security 
personnel, Maoists reportedly have stopped all public 
transportation on two sections of highway in central 
Nuwakot and Makwanpur districts, forcing local residents to 
walk for several hours in order to sell produce at the 
nearest markets.  In western Surkhet district, Maoists have 
threatened to start collecting "donations" of 25,00O Nrs 
(320 USD) from all buses traveling from the district 
capital of Birendranagar. 
 
5. (U) One passenger died and six were injured on December 
11, when Maoists opened fire on a moving passenger bus 
traveling through southern Udayapur district to Biratnagar. 
The southern district has been experiencing increased 
Maoist activity since last week's attack in neighboring 
Siraha district (ref A).  Vehicular traffic came to a 
standstill on the district's highway on November 11 when 
Maoists destroyed a 15-meter long bridge, and villagers in 
the area reported that the insurgents have been setting up 
ambushes and burning vehicles along the road since December 
8.  On December 9, Maoists looted seven houses in two 
villages, taking cash, silver and gold, saying that they 
were responsible for the Siraha attack. 
 
VIOLENCE AGAINST SCHOOLS, CIV 
ILIANS 
----------------------------------- 
 
6. (U) On December 7, Maoists threw a socket bomb into the 
compound of the Peace Zone Secondary School in southeastern 
Sunsari district, destroying two buses and injuring a 14 
year-old student.  On December 8, in northeastern Terhathum 
district, an eight year-old boy was killed and his sister 
was injured by a Maoist bomb planted in the field where 
they were herding family livestock. 
 
7. (U) On December 10, Maoists set fire to one school and 
beat the headmaster of another in western Kailali district. 
Two buses were destroyed by petrol bombs at a school in 
Biratnagar, southern Morang district, on the same day. 
Though classes were in session at the school when Maoists 
threw the bombs into the compound, no students were injured 
in the attack. 
 
8. (U) Eleven civilians were injured on December 7 when 
Maoist rebels detonated a pressure cooker bomb in Lalitpur, 
three kilometers south of Kathmandu's Ring Road.  The local 
committee of the Maoist-affiliated All-Nepal National 
Independent Student Union-Revolutionary (ANNISU-R) has 
claimed responsibility, and has called for other Lalitpur 
restaurants to shut down. 
 
MAOISTS TERRORIZE MARKETS 
------------------------- 
 
9. (U) In Mangalbare bazaar in eastern Ilam district, 30-35 
insurgents cordoned off the market for nearly four hours on 
the afternoon of December 7, and collected a "donation" of 
over 50O,O00 Nrs (6400 USD) from local merchants.  One 
merchant who opposed the Maoists was severely beaten, and 
most of the shopkeepers have fled to the district 
headquarters as a result of the daylight raid. 
10. (U) Businesses in Sangutar, central Ramechhap district, 
have been closed for one week in response to Maoist 
threats.  According to press reports, the local insurgents 
instructed businessmen to abandon their shops and leave the 
village.  Pharmacies and other shops have closed, and 
residents have been unable to purchase medicine or other 
essential items.  Villagers are surviving on unprocessed 
grain, since the local food mill has also been shut down by 
Maoist threats. 
 
MORE FAMILIES INTERNALLY DISPLACED; 
TENS OF THOUSANDS MORE FLEEING TO INDIA 
--------------------------------------- 
 
11. (U) Officials at the border police post at Nepalganj, 
western Banke district, counted more than 8,000 Nepalis 
crossing into India during December 4-11, the highest 
weekly total ever recorded.  In Rupediya, the Indian town 
just across the border, one bus operator told reporters 
that he has more than doubled his fleet to accommodate the 
emmigrating Nepalis.  According to the moderate weekly 
"Nepali Times," similar scenes take place in towns all 
along the open border with India every day.  Those leaving 
reportedly range in age from infants to the elderly, but 
most are able-bodied men.  Though seasonal labor in India 
is traditional employment for many Nepalis, migrants 
interviewed by the "Nepali Times" say they are going to 
India for security, not simply temporary employment, and 
many have no intention to return to their homeland until 
Nepal's security situation improves. 
 
12. (U) Maoists in western Kailali district have forced 163 
families of security personnel to leave their homes at 
harvest time, abandoning crops and livestock.  The 
displaced families stated that insurgents did not allow 
them time to pack clothes or supplies before locking them 
out of their houses.  They have settled in the district 
headquarters, and most are forced to borrow money to pay 
daily expenses.  Demands for monetary donations by groups 
of armed Maoists in southern Morang district have prompted 
familes to flee their homes for the relative safety of the 
district capital. 
 
ACAP OFFICES ATTACKED AGAIN; 
ANNAPURNA TOURISM AFFECTED 
---------------------------- 
13. (U) Maoists attacked the Annapurna Conservation Area 
Project (ACAP) in Ghandruk for the second time on November 
9, burning several years' worth of research records an 
d 
destroying the remaining facilities.  The offices, located 
at the Annapurna base camp, were previously looted by 
Maoists on November 8 (ref B).  Damage from the Ghandruk 
attacks is estimated at 3.5 million Nrs (45,000 USD).  On 
the same night, Maoists entered the ACAP offices at Siklis, 
poured cooking fuel from the kitchen over the project's 
files and set them ablaze.  Sources at the King Mahendra 
Trust for Nature Conservation, the parent organization for 
ACAP, report that several project offices along the 
Annapurna trekking circuit have been looted and burned by 
the insurgents over the past few weeks. 
 
14. (U) Tourism in the popular trekking area has declined 
by almost 60 percent following the attacks, according to 
press reports from the region.  Officials at the base camp 
office told reporters that fear of the insurgents has 
prompted many local residents to abandon their businesses 
and leave the village.  News reports from the area state 
that most remaining villagers rarely venture outside their 
homes, and that tourists "have become cautious and control 
their movement even during the day."  Office personnel, who 
stayed in Ghandruk hoping for the security situation to 
improve, are considering shifting the office to another 
location for safety. 
 
WORLD BANK HALTS DEVELOPMENT PROJECTS 
------------------------------------- 
 
15. (U) The World Bank reportedly has halted construction 
of nine irrigation projects in midwestern Nepal, though 
some of the projects were 90 percent complete and millions 
of rupees have already been invested.  Tight restrictions 
imposed on explosives by security forces have prevented the 
Bank from completing the projects, which would have 
provided irrigation to tens of thousands of farmers. 
 
AMCIT BUSINESS RECEIVES EXTORTION LETTER 
---------------------------------------- 
 
16. (SBU) On December 2, the Amcit owner of a carpet 
factory in Kathmandu reported to the Embassy that she had 
received a Maoist extortion letter demanding 500,000 Nrs 
(6400 USD).  In a meeting with ConOffs and A/RSO, the Amcit 
indicated that she had heard from other American business 
owners that they had received similar letters.  A/RSO 
confirmed that the letter conforms to similar demand 
letters sent to businesses, schools and agencies throughout 
the Valley.  ConOff and A/RSO briefed the Amcit on personal 
security and asked her to keep in close contact with the 
Embassy regarding this issue. 
 
PARTIES DENOUNCE VIOLENCE AGAINST MEMBERS 
----------------------------------------- 
 
17. (U) On December 6, Maoists kidnapped and beheaded CPN- 
UML member and former VDC Chairman Shital Das Chaudhary in 
western Kailali district.  On December 8, stating that the 
Maoists had broken an agreement not to attack party 
members, the CPN-UML standing committee said that they 
could no longer cooperate with the Maoists against the 
palace-appointed government.  "Though other parties have 
called for the Maoists to support the drives against the 
royal moves, we cannot work with them until they stop the 
violence in this country," said a member of the standing 
committee.  Also on December 8, the student wing of the 
CPN-UML protested the Maoist-called indefinite strike 
against Kathmandu Valley schools (ref C). 
 
18. (U) The People's Front of Nepal and the All Nepal 
Peasants' Association (ANPA) strongly denounced a Maoist 
attack on the family of one of their activists, warning the 
insurgents to "immediately cease violent activities," or 
"face serious consequences."  On November 28, eight Maoists 
broke into the house of Dila Ram Acharya, Secretary General 
of the ANPA, demanded food from his family and threatened 
him with abduction. 
 
NGO CONDEMNS MAOIST ATTACK 
-------------------------- 
 
19. (U) Anti-Slavery International (ASI), a London-based 
human rights organization working to assist the former 
bonded laborers of western Nepal, condemned the Maoist 
attack on a training center run by Backward Society 
 
Education (BASE).  According to an NGO spokesperson, 
Maoists damaged 7O0,00O Nrs (9000 USD) worth of property in 
the attack, which took place on the day the head of BASE 
received a prestigious award from ASI. 
 
ARMY UNDER FIRE FOR DEATH OF MINORS 
20. (U) Parents of five young men killed by Royal Nepal 
Army troops last month filed a complaint with the 
administration office in central Nuwakot district on 
December 11, seeking compensation for the deaths and 
calling them "murder."  The Ministry of Defense has 
released a statement claiming that the boys, who ranged in 
age from 14 to 19, were Maoist terrorists killed in an 
encounter with security forces.  Family members said that 
security personnel had told them that the boys were shot 
"because they were walking at night with torch-lights in 
their hands." 
 
21. (U) On December 8, the Human Rights and Peace Society, 
a local NGO, accused security forces of killing nine 
"innocent and unarmed youth" in two separate incidents in 
southern pang district.  The human rights organization 
noted that the young men were out after a curfew, but 
asserted that the security forces should have been able to 
easily take the youths into custody instead of killing 
them.  The Ministry of Defense once again released a 
statement claiming that the young men, who ranged in age 
from 15 to 22, were Maoist terrorists killed in an 
encounter with security forces. 
 
MALINOWSKI