US embassy cable - 03KATHMANDU1143

UNCLAS SECTION 01 OF 03 KATHMANDU 001143 
 
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/GURNEY 
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 
NSC FOR MILLARD 
SECDEF FOR OSD/ISA LILIENFELD 
 
E.O. 12958: N/A 
TAGS: PINS, PTER, CASC, PGOV, NP, Maoist Insurgency 
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, JUNE 14-20 
 
REFERENCE:  KATHMANDU 0945 
 
SUMMARY 
------- 
 
1.  Maoists reportedly attacked a convoy headed to the far- 
western district of Jajarkot to provide humanitarian 
assistance.  In a meeting held this week, international aid 
agencies reported increased Maoist activities that were 
threatening aid projects. Kamal Thapa, Minister of 
Information and Communications and newly appointed member of 
the government's peace negotiating team, said the next round 
of talks would be held soon, but offered no timeframe. 
Senior-level Maoists reportedly are getting frustrated with 
the delay in negotiating the third round of peace 
negotiations, accusing both the Government of Nepal (GON) 
and the USG for the delay.  Maoist negotiating team members 
also have accused the GON of preparing to resume hostilities 
with USG encouragement.  Insurgents abducted nine civilians 
this week, allegedly torturing several of them during 
captivity, and beat up several other civilians after 
stealing grain and other goods from them.  The All Nepal 
National Independent Students' Union-Revolutionary (ANNISU- 
R), the Maoist affiliated student organization, reportedly 
is forcing young students to join its organization.  The 
Royal Nepal Army (RNA) continues its "Hearts and Minds" 
campaign (Reftel).  Seventeen more Maoists were released 
from detention.  End summary. 
 
MAOISTS ATTACK RNA HUMANITARIAN CONVOY 
-------------------------------------- 
 
2.  A convoy of Royal Nepal Army (RNA) soldiers, police and 
civilians came under Maoist attack on June 18.  According to 
press reports, the convoy was fired on by a group of three 
hundred Maoists as it headed toward the far western district 
of Jajarkot as part of the RNA's ongoing humanitarian 
assistance efforts (Reftel).  According to an army 
spokesman, the army returned fire and the confrontation 
lasted over three hours.  (Note:  In the past, Maoists have 
made attempts to disrupt health camps throughout different 
districts, including issuing threats and orders against 
villagers not to attend the camps, and cutting off water 
supplies in the areas where the camps were being held. End 
note).  In a statement released on June 19, the Ministry of 
Defense strongly condemned the attack, and suggested it 
would have adverse effects on the peace process.  There has 
been no comment from the Maoists on the attack. The 
humanitarian team said it will continue with the medical 
camp as planned. 
 
MAOIST ACTIIVITIES INCREASING 
----------------------------- 
 
3.  In a meeting held this week, international aid agencies 
presented alarming information on Maoist activity throughout 
Nepal despite the ceasefire.  Extortion campaigns have 
increased substantially, particularly during the past month, 
and have disrupted some development projects and threaten to 
halt others altogether.  Maoists reportedly also have 
threatened to stop all foreign development projects if peace 
talks fail, and have already prevented foreigners from 
entering into one eastern district. 
 
4.  The international agencies also presented information 
suggesting that Maoists have made it known that they oppose 
employment projects because they interfere with Maoist 
recruitment efforts. 
THIRD ROUND OF TALKS TO BE HELD "SOON" 
-------------------------------------- 
5.  Kamal Thapa, Minister of Information and Communications 
and newly appointed member of the government's peace 
negotiating team, said on June 14 that the Government of 
Nepal (GON) would hold the next round of talks "very soon," 
but provided no specific timeframe.  Minister Thapa said he 
was studying the agreements reached during the last two 
rounds, and would sit for talks only after enough homework 
had been done. 
 
MAOIST TEAM CRITICIZES DELAY IN TALKS; BLAMES U.S. 
--------------------------------------------- ----- 
 
6.  Senior-level Maoists reportedly are getting frustrated 
with the delay in setting a date for the third round of 
peace negotiations.  On June 17 Krishna Bahadur Mahara, 
spokesman and member of the Maoist negotiating team, accused 
the GON of delaying the peace talks under the pretext that 
it needed time to study previous agreements.  Mahara claimed 
the GON was "compelling the Maoists to go back to armed 
struggle."  Mahara alleged the U.S. was responsible for the 
delay in peace talks, but offered no further explanation. 
However, the Maoist spokesman declared that the peace talks 
would fail if the USG did not support them. 
 
7.  On June 14 Ram Bahadur Thapa, alias Badal, also a member 
of the Maoist talk team, reportedly told a public gathering 
in Sindhuli District that the GON was planning to announce 
the collapse of the peace talks.  Badal accused the GON of 
conspiring to get rid of the political parties and the 
Maoists.  Matrika Prasad Yadav, a politburo member of the 
Maoists, addressing a public rally in Bara District in the 
Terai on June 14, concurred that by delaying the peace 
process the GON was inviting war. 
 
MAOISTS CLAIM GON MAKING PREPARATIONS FOR WAR 
--------------------------------------------- 
 
8.  Maoist rhetoric of late is accusing the GON of preparing 
to recommence hostilities.  Senior Maoists have lambasted 
the RNA's purchase of new weapons, helicopters and ongoing 
recruitment of additional personnel.  On June 14 Badal, 
military chief of the Maoists, reportedly charged that the 
GON is not only buying new weapons, but is also planning to 
ask the USG for help to "crush the Maoists."  Badal 
reiterated his previous accusations that preparations are 
underway for the GON to impose military rule. 
 
INSURGENTS CONTINUE TERROR 
-------------------------- 
 
9.  A group of thirty-five armed Maoists reportedly abducted 
four youths on June 17 in Sunsari District in the Terai, and 
held them captive for twenty-two hours.  According to the 
abductees, they were severely beaten and tortured during 
their captivity.  Maoist cadres abducted the four and 
accused them of being involved in the rape of a local woman. 
Five laborers in Salyan District were abducted by insurgents 
on June 15, and accused of digging without permission.  The 
laborers had been repairing the roadside.  A journalist 
working for a state-run newspaper was released on June 17 
after being held captive by the Maoists for twelve days. 
Maoist cadres had abducted the journalist in Pokhara, 
charging him with extorting money fraudulently in the name 
of the Maoists. 
 
10.  According to the local paper, Maoists in the districts 
of Sindhuli and Siraha beat up several civilians and looted 
their grain and other goods.  The estimated value of the 
looted goods is almost two thousand dollars, a fortune in 
the impoverished countryside. 
 
ANNISU-R FORCING STUDENTS TO JOIN ORGANIZATION 
--------------------------------------------- - 
 
11.  Karna Bahadur Shahi, President of National Private and 
Boarding Schools Association Nepal (NPABSON), told the local 
press on June 19 that the All Nepal National Independent 
Students' Union-Revolutionary (ANNISU-R), the Maoist 
affiliated student organization, was forcing young students 
to join its student group.  According to Shahi, members of 
ANNISU-R storm into classrooms and threaten those who try to 
resist.  Students are intimidated into providing their names 
and phone numbers.  Shahi condemned these actions of the 
ANNISU-R, and castigated them for using children as 
political pawns. 
 
RNA MAKING LIFE BETTER 
---------------------- 
 
12.  The Royal Nepal Army (RNA) continues its "Hearts and 
Minds" campaign(Reftel), providing humanitarian assistance 
to some of the most remote and Maoist-affected districts of 
Nepal.  On June 7 the RNA arrived in the mid-western 
district of Baglung to provide medical assistance, and to 
distribute clothes, paper supplies and food, and even gave 
haircuts.  Assistance was also provided in obtaining 
passports and citizenship papers.  According to press 
reports, locals have welcomed the camps and declared that 
"life has become much better." 
 
13.  On June 15 the RNA also held a two-day camp in Myagdi 
District in mid-western Nepal.  Local press accounts 
estimated that over fifteen thousand people received medical 
help and relief supplies.  Farmers were given seeds for 
planting and agricultural training.  According to the Chief 
District Officer (CDO), the administration office 
distributed citizenship papers to almost two hundred people. 
 
DISTRICT JAIL RELEASES ALL MAOIST PRISONERS 
------------------------------------------- 
 
14.  The District Administration Office (DAO) in Kapilvastu 
reported on June 13 that its local jail now has no Maoist 
prisoners following the release of seventeen Maoists on June 
13. 
 
15.  On June 11 a joint team of army and police personnel 
arrested seventeen Maoists in Kailali District on weapons 
charges.  The insurgents reportedly were carrying grenades, 
rifles and ammunition.  Police also arrested two student 
members of the All Nepal National Independent Students' 
Union-Revolutionary (ANNISU-R), the Maoist-aligned student 
organization, on June 14. 
 
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