US embassy cable - 03KATHMANDU837

C O N F I D E N T I A L KATHMANDU 000837 
 
SIPDIS 
 
STATE FOR SA/INS 
LONDON FOR POL - GURNEY 
 
E.O. 12958: DECL: 05/06/2013 
TAGS: PTER, PGOV, NP, Maoist Insurgency, U.S-Nepali Relations 
SUBJECT: NEPAL:  SECOND ROUND OF TALKS BETWEEN INSURGENTS, 
GOVERNMENT SCHEDULED AMID FUROR OVER USG TERRORISM WATCHLIST 
 
REF: A. (A) KATHMANDU 0769 
     B. (B) KATHMANDU 0814 
 
Classified By: DCM ROBERT K. BOGGS.  REASON:  1.5 (B,D). 
 
1.  (U) The second round of talks between the Government of 
Nepal (GON) and Maoist insurgents is scheduled to take place 
on May 9 at an undisclosed location, according to local press 
reports.  The initial round was held less than a week earlier 
at a Kathmandu hotel (Ref A).  No agenda for the second round 
has yet been made public. 
 
2.  (SBU)  The announcement of this next round follows 
closely upon dire predictions by Maoist negotiators and even 
some mainstream politicians that the USG decision to place 
the Maoists on a watchlist in its annual terrorism report 
could "derail" peace talks.  In a May 7 interview with a 
left-wing vernacular newspaper, Maoist ideologue Baburam 
Bhattarai described the listing as "an unsuccessful attempt 
by the US to jeopardize talks. . . . and to establish a 
military base in Nepal and fulfil its strategic interest in 
South Asia."  In another interview in the Maoist publication 
"Janadesh," Bhattarai charged, "The action increases the 
chances of turning the country into a battlefield by turning 
China and India against each other.  There is no doubt that 
the action will have a serious and far-reaching effect on the 
sovereignty and independence of the country. . . . .The 
declaration is . . . a big conspiracy against Nepali 
nationalism and Nepali people."  At a rally in Kathmandu on 
May 4 (Ref B), Communist Party of Nepal - United Marxist 
Leninist (UML) General Secretary Madhav Nepal warned that the 
USG action "could disrupt the peace process."  In a televised 
interview that aired on May 5, Ambassador Malinowski 
clarified the significance of the listing, noting that the 
Maoists' actions against US interests had landed them on the 
watchlist (septel).  He noted that, contrary to widespread 
speculation, the release of the report was not/not 
intentionally timed to coincide with the peace talks. 
 
3.  (C)  The expatriate head of an NGO called poloff May 4 to 
communicate Bhattarai's dismay at the listing.  Bhattarai 
reportedly had said that the Maoists had declared a ceasefire 
and come to the negotiating table "in good faith" to try for 
a peaceful settlement.  The Maoists were thus "genuinely 
mystified" by the listing, and wondered if they were supposed 
to be "negotiating with Kathmandu or Washington."  The NGO 
head indicated the Maoists might be interested in resuming 
dialogue with an Embassy representative to clarify matters. 
Poloff declined, replying that matters were likely clear 
enough already to the Maoists, i.e., that their own actions 
against US employees and interests had earned them the 
listing. 
 
4.  (C)  Comment:  The Maoists are clearly dismayed by the 
listing, which they fear may impede the charm offensive they 
have launched with the diplomatic community, members of civil 
society, and the local intelligentsia since coming above 
ground on March 28.  We will continue to convey the message, 
both publicly and privately, that the listing took place 
because of Maoist actions against the USG, that our decision 
was made independently of Maoist actions against the GON and 
the GON decision to stop characterizing them as terrorists, 
and that the listing cannot thus be misconstrued as "internal 
interference."  Maoist rhetoric aside, we are encouraged that 
the two sides have agreed to a second round of talks.  This 
decision strengthens our perception that the US' firm 
opposition Maoist violence is a major consideration in their 
pursuit of a political settlement. 
MALINOWSKI