US embassy cable - 03KATHMANDU366

C O N F I D E N T I A L KATHMANDU 000366 
 
SIPDIS 
 
STATE FOR SA/INS AND DS/IP/SA 
LONDON FOR POL - RIEDEL 
TREASURY FOR OFAC - NEWCOMB 
 
E.O. 12958: DECL: 02/27/2013 
TAGS: PTER, PINS, BEXP, ASEC, CASC, NP, Maoist Insurgency 
SUBJECT: NEPAL:  MAOISTS DENY COCA-COLA EXTORTION 
 
REF: KATHMANDU 0352 
 
Classified By: AMB. MICHAEL E. MALINOWSKI.  REASON:  1.5 (B,D) 
 
1.  (C) On February 28 Narayan Singh Pun, Minister for 
Physical Works and government-appointed interlocutor with 
Maoist insurgents, called the Ambassador to report that he 
had, as requested, raised with his Maoist contacts the 
continued extortion of funds from Coca-Cola's local 
representative (Reftel).  (Note:  As requested by Coca-Cola 
and the Ambassador, Pun did not mention the company by name 
in his discussion.  End note.)  His Maoist interlocutors 
vigorously denied that their leadership has either sanctioned 
or encouraged such activities since the January 29 ceasefire, 
Pun told the Ambassador.  The Maoists suggested that the 
extortion may have been carried out by imposters, and claimed 
that bogus "humanitarian organizations" pressing for 
"donations" from the international community to support the 
peace process had succeeded in raising as much as USD 1 
million.  When told that the extortion demand had been 
accompanied by a signed letter from Maoist leader Prachanda 
that appeared authentic, Pun's interlocutors asked for a copy 
of the letter, as well as the name of the person who had 
demanded the money, and assured him that appropriate action 
would be taken against any errant cadre violating the 
directive against extortion.  Pun told the Ambassador he 
would pass a copy of the extortion letter, as well as any 
additional information, to his Maoist contacts, if desired. 
 
 
2.  (C)  Poloff advised Coca-Cola Country Manager N.N. Singh 
of Pun's offer and asked for permission to pass a copy of the 
extortion letter received by Coca-Cola, with the company's 
name and any other identifying information excised from the 
text.  Poloff also asked if she could pass on the name 
(assumed to be a nom de guerre) of the extortionist.  Singh 
expressed concern that even passing on the Maoist alias could 
be dangerous, citing Maoist killings of alleged "informants," 
including two U.S. Embassy guards, as examples.  After 
discussing the matter with Coca-Cola's regional office in 
Bangkok, Singh told poloff that the company did not want to 
release a copy of the letter--even without identifying 
information--or the name of the extortionist to the Maoists. 
Poloff agreed not to supply the information.  Singh said he 
would attempt to parry any future demands for funds by saying 
he had not received authorization to pay from Coca-Cola 
corporate headquarters. 
 
3.  (C)  Comment:  Singh's reaction indicates just how 
successful the Maoists have been in intimidating the local 
population.  Even members of the well-connected business 
elite like the Country Manager for the largest multinational 
firm in Nepal are too fearful to take action against 
low-ranking Maoist couriers--ceasefire or no ceasefire.  We 
will continue to explore, along with other embassies and 
their respective bilateral business chambers, the issuing of 
a joint public statement condemning the continued extortion. 
 
MALINOWSKI