US embassy cable - 03KATHMANDU960

UNCLAS SECTION 01 OF 03 KATHMANDU 000960 
 
SIPDIS 
 
STATE FOR SA/INS AND DS/IP/NEA 
STATE ALSO PLEASE PASS USAID/DCHA/OFDA 
STATE ALSO PLEASE PASS PEACE CORPS HQ 
USAID FOR ANE/AA GORDON WEST AND JIM BEVER 
MANILA FOR USAID/DCHA/OFDA 
LONDON FOR POL/RIEDEL 
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 
 
E.O. 12958: N/A 
TAGS: PINS, PTER, CASC, PGOV, NP, Maoist Insurgency 
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, May 17-23 
 
REFERENCE  (A) KATHMANDU 0902 
 
           (B) KATHMANDU 0945 
           (C) KATHMANDU 0140 
SUMMARY 
------- 
 
1.  No date has been set yet for the third round of peace 
talks.  However, the controversy continues around 
restrictions on the movements of the Royal Nepal Army (RNA). 
Maoist leaders have demanded explanations for the statements 
made by Ramesh Nath Pandey, Minister for Information and 
Communication and government negotiating team member, 
denying that any agreement has been reached about limiting 
the RNA.  The release of three Maoist Central Committee 
Members has been delayed.  The RNA continues its 
humanitarian assistance and medical treatment outreach 
efforts.  Amnesty International (AI) announced on May 19 
that it intends to send a delegation to Nepal.  The All 
Nepal National Independent Students' Union-Revolutionary 
(ANNISU) has forced the closure of accounting offices in 
over twenty-four private schools.  A Maoist Central 
Committee Member admitted in a local interview that fear of 
the U.S. military drove the Maoists to the negotiating 
table.  Maoists abducted fifteen civilians, tortured four 
others, and continue to extort money.  Victims of the Maoist 
insurgency continue to voice their objections to being 
excluded from the peace process.  End Summary. 
 
MAOISTS WANT PANDEY OUT 
----------------------- 
 
2.  Baburam Bhattarai, Maoist ideologue and head of the 
Maoist negotiating team, angrily reacted to statements by 
Ramesh Nath Pandey, Minister for Information and 
Communication and government negotiating team member, in 
which Pandey said that no agreement was reached regarding 
the restriction of the Royal Nepal Army's (RNA's) movements 
to only five kilometers from their barracks (Ref A). 
Bhattarai, speaking at a hastily called press conference on 
May 15, said Pandey's denial of the agreement was a "blatant 
lie" and a betrayal of the peace process.  The Maoist 
ideologue reiterated his claim that the agreement to 
restrict the RNA's movements was reached during the second 
round of peace talks, and said the government should get rid 
of the "liars" on its team.  In addition to the demand for a 
new "trustworthy and powerful (government) team," Bhattarai 
said that the Maoists want clarification of Pandey's 
statements, an immediate halt to international intervention 
and "dubious" activities, the immediate release of their 
three Central Committee Members, and a halt to public 
comments by the army. 
 
3.  Narayan Singh Pun, Minister of Physical Planning and 
Works and government negotiating team member, in response to 
Bhattarai's complaints against Pandey, said that there had 
been some "misunderstandings" between the government and the 
Maoists, but told reporters that the Maoists were right 
about the agreement made to restrict the army.  In direct 
contrast to Pun's statement, however, Badri Narayan Basnet, 
Minister for Forest and Soil Conservation, reportedly 
concurred with Pandey and said that no agreement had been 
reached.  To date, the RNA has continued normal operations. 
 
MAOISTS FEAR U.S. MILITARY 
-------------------------- 
 
4.  During an interview with a local publication in May, 
Matrika Prasad Yadav, a Maoist Politburo member and 
negotiating team member, conceded that the fear of American 
intervention prompted the Maoists to return to the 
negotiating table.  Yadav reportedly said that the growing 
influence of the United States remains a concern to the 
Maoists.  The insurgents have enjoyed many victories over 
GON security forces, Yadav claimed, but conceded that the 
Maoists are not ready to take on American forces and will 
remain at the negotiating table as long as necessary to 
forestall more direct U.S. military involvement. 
 
RELEASE OF MAOIST LEADERS DELAYED 
--------------------------------- 
 
5.  Despite reported government assurances that the Maoists' 
three Central Committee Members would be released, the GON 
instead filed a detention order, extending the prison 
sentence another six months for one of them.  Krishna 
Bahadur Mahara, Maoist spokesman, issued a press release on 
May 21 criticizing the move, and declared the Maoists were 
taking this action "very seriously."  Mahara questioned the 
GON's motives in extending the jail sentence and accused the 
GON of violating the code of conduct. 
 
MAOIST VIOLATIONS INCREASE 
--------------------------- 
 
6.  Maoist cadres have continued to violate the ceasefire 
agreement by abducting civilians in three separate 
southeastern districts.  Two civilians were abducted from 
Siraha District on May 20, while on May 19, nine family 
members were abducted by insurgents in Dhanusha District. 
The family members reportedly are members of the Nepali 
Congress (NC) party, and had refused to contribute to the 
Maoists.  The insurgents also reportedly accused them of 
being informants.  Their whereabouts remain unknown. 
Maoists also abducted three former members of local Village 
Development Committees (VDCs) in Sindhuli District, and 
another Nepali Congress supporter from Morang District, who 
remains missing.  Four civilians, including a woman, were 
tortured by Maoists in the northern district of Gorkha after 
the insurgents were given tap water to drink instead of 
filtered water. 
 
7.  Maoists reportedly have continued extorting money from 
tourists in the northeastern region of Dolakha, demanding 
"donations" from as many as seven tourist groups in a week. 
According to press reports, the Maoist leaders in the region 
have admitted the practice, declaring that the money will be 
used for "development purposes," and therefore is not a 
violation of the code of conduct.  In the mid-western 
district of Rolpa, the insurgents reportedly have also been 
issuing trading licenses to local merchants.  Merchants are 
forced to give a "voluntary donation" in order to receive 
permission to sell their goods.  The Rolpa Chief District 
Officer (CDO) was quoted as saying that the Maoists are in 
direct violation of the code of conduct, and that the 
activities should stop immediately. 
 
RNA CONTINUES HEALTH CAMPS 
-------------------------- 
 
8.  The Royal Nepal Army (RNA) conducted free health camps 
across Nepal, providing dental care, medical treatment, and 
various humanitarian services (Ref B).  According to press 
reports, Army personnel provided assistance to almost four 
thousand villagers in the districts of Surkhet, Siraha, 
Bharatpur, Itahari, Sindhuli, Dolakha, and Udayapur.  The 
army also distributed supplies to elementary schools in 
Udayapar District, and repaired desks and benches in the 
schools.  In Bharatpur, a blood drive was also held. 
 
AI TO SEND DELEGATION TO NEPAL 
------------------------------ 
 
9.  Amnesty International (AI) announced on May 19 that it 
will send a delegation to Nepal to discuss its concern over 
increasing human rights violations by both the security 
forces and the insurgents, despite a three-month ceasefire. 
In its press release, AI urged the Maoists and the GON to 
establish immediately an effective monitoring team, and 
provide the necessary resources to conduct impartial 
investigations of alleged human rights violations. 
 
ANNISU-R THREATENS TO CLOSE PRIVATE SCHOOLS 
------------------------------------------- 
 
10.  The All Nepal National Independent Students' Union- 
Revolutionary (ANNISU) has forced the closure of accounting 
offices in over twenty-four schools.  The Maoist aligned 
student group said the offices would be closed indefinitely. 
The disruption in services and continued threats from 
members of ANNISU-R has caused some private schools to 
consider closing permanently, and has stirred the anger of 
parents, many of whom are pleading with school principals to 
keep the schools open.  ANNISU-R has demanded that tuition 
fees be lowered, and locked the accounting offices in 
protest. 
 
MAOIST VICTIMS DEMAND JUSTICE 
----------------------------- 
 
11.  Victims of the Maoist insurgency complain that they 
remain without a voice in the peace process.  The daughter 
of Mohan Krishna Shrestha, the Inspector General of the 
Armed Police Force, who was brutally murdered along with his 
wife and bodyguard (Ref C), told a local publication on May 
16 that the GON should not have released those responsible 
for her parents' murder.  Shrestha said the murders have 
been forgotten under the pretext of not disturbing the peace 
process.  Victims' groups have been persistent in trying to 
get their needs on the agenda, but Minister Pun acknowledged 
that the issue of civilian killings has not yet "figured 
into the peace negotiations." 
 
BOGGS