US embassy cable - 02KATHMANDU2440

UNCLAS KATHMANDU 002440 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR DS/OSAC, DS/IP/SA, DS/DSS/ITA AND SA/INS 
 
E.O. 12958: N/A 
TAGS: PTER, ASEC, PINS, NP, Maoist Insurgency 
SUBJECT: EXTORTION LETTER DELIVERED TO COCA-COLA'S LOCAL 
MANAGER -- KATHMANDU 
 
REF: KATHMANDU 2369 
 
1.  On 17 December,  Mr. N.N. Singh (source protect), the 
head of Coca Cola's Nepal operations, told RSO that he had 
received a letter purporting to be from the Maoists and 
"requesting...financial support of" 3 million Nepali Rupees 
(NRs).  Singh stated that he had received the letter several 
days earlier, but has been busy dealing with the death of his 
brother (Hindu death rituals require several days activities 
before returning to normal business).  He provided a copy of 
the letter, a translation thereof, and showed the RSO the 
original.  He expressed greater concern over this extortion 
attempt than those in the past, observing that this letter 
was delivered to his home as opposed to his office.  Singh 
stated that he is concerned for his personal safety and that 
of his business.  He told RSO that he has been in contact 
with Coca Cola security officials in Atlanta regarding this 
matter. 
 
2.  RSO offered to contact host country security services on 
Coca Cola's behalf and ask for additional security.  Singh 
told RSO that he did not want a GON bodyguard nor a physical 
presence of GON security personnel at either his home or 
office; his preference is for increased Royal Nepalese Army 
(RNA) patrolling in the vicinity of his residence, citing 
lack of confidence in the police.  RSO has passed this 
request through DAtt. 
 
3.  Singh told RSO of his involvement in recent talks between 
Nepal's largest chamber of commerce (FNCCI) and the RNA over 
establishment of a new industrial security force.  He said 
that the RNA has asked businesses to front 850 million NRs to 
fund the force's creation.  Singh lamented that in the 
current business environment it is not possible for 
businesses to contribute so much, comparing the figure to the 
Maoists' high extortion demands.  He expressed doubt as to 
when, if ever, the industrial security force would become a 
reality. 
 
4.  RSO compared the copy of the extortion letter to one Post 
has on record, which was received by an AmCit business owner 
on December 2 (ref).  The letters are identical with the 
exception of the pre-lined areas filled in by hand 
(addressee, address, reference number, amount of money 
requested).  RSO noted that the handwriting contained in the 
pre-lined sections did not match with the handwriting 
contained in the first letter.  RSO assesses the letter 
presented by Singh as an authentic Maoist extortion letter 
and has passed this assessment on to him. 
 
5.  Post notes that extortion by the Maoists seems to be on 
the rise after a several month hiatus.  Singh's pessimistic 
outlook on both the economy and security situation are 
similar to those held by many of Post's contacts.  Whether 
this renewed drive for money signals financial difficulties 
for the insurgents or an attempt to build funds for a new 
push against the GON, as they state in their correspondence, 
is unclear.  However, the frustration and feeling of dilemma 
rampant in the business community is crystalline. 
MALINOWSKI