US embassy cable - 03KATHMANDU1252

UNCLAS SECTION 01 OF 04 KATHMANDU 001252 
 
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 28-July 3 
 
REFERENCE:  (A) KATHMANDU 0769 
 
            (B) KATHMANDU 1212 
 
SUMMARY 
------- 
 
1.  Pushpa Kamal Dahal, alias Prachanda, Maoist supreme 
leader, called upon the five major political parties of 
Nepal to unite against foreign forces, and to support the 
Maoist demands set forth in the first round of peace 
negotiations (Ref A).  The Government of Nepal (GON) and 
senior Maoist leaders traded accusations of ceasefire 
violations.  Kamal Thapa, Minister of Information and 
Communications and GON negotiating team member, however, 
remained optimistic and said the GON was "ready for talks" 
at any time.  Maoist atrocities continue with the brutal 
murders of two people and the serious injury of another, and 
reports of increasing extortion, combat and explosives 
training, recruitment of minors, levying of taxes, and 
obstruction of development projects.  Victims of the 
insurgency and residents of some of the most remote areas of 
Nepal voiced concern over the continuation of struggles and 
threats despite the ceasefire.  End Summary. 
 
PRACHANDA WANTS PARTIES' SUPPORT 
-------------------------------- 
 
2.  In a press release issued on June 29 Pushpa Kamal Dahal, 
alias Prachanda, Maoist supreme leader, called upon the five 
major political parties of Nepal (Nepali Congress, the 
Communist Party of Nepal-United Marxist Leninist, Janamorcha 
Nepal, Nepal Workers and Peasants Party, and Nepal 
Sadbhawana Party) to support the twenty-four demands put 
forth by the Maoists during the first round of peace 
negotiations (Ref A).  None of the party leaders have yet 
responded. 
 
3.  The Maoist Supremo again warned against alleged 
interference by international forces, declaring that there 
was a "serious conspiracy from within and outside the 
country" attempting to derail the peace process.  Prachanda 
called for unity against the "increasing interference of the 
foreign forces," and urged public pressure against the 
Government of Nepal (GON).  He also declared that it would 
be a "great disaster" if the peace negotiations were 
disrupted. 
 
ACCUSATIONS OF VIOLATIONS ALL AROUND 
------------------------------------ 
 
4.  Amid concerns over the fragile peace process, 
representatives from the GON and the Maoist party traded 
accusations of ceasefire violations.  In a statement issued 
on June 27 the Ministry of Defense blamed the Maoists for 
creating "social terror" through ongoing extortion 
campaigns.  The Ministry said the insurgents have demanded 
and collected almost USD 150,000 from people and 
institutions despite the declaration of a ceasefire. 
Condemning the illegal activities, the Ministry warned that 
security forces would exact severe punishment in accordance 
with the law against those responsible. 
 
6.  In addition to criminal violations of the ceasefire, the 
local press reports that the Maoists are engaged in 
organized combat training and explosives-making in rural 
villages.  The Maoists allegedly shut down a school in the 
far western district of Baitadi and used it to conduct 
military and explosives training for the youth of the 
village.  Security personnel are stationed in District 
headquarters, but there reportedly were no security 
personnel in the immediate area of the Maoist training. 
 
7.  Krishna Bahadur Mahara, Maoist spokesman, hurled his own 
accusations, claiming that the GON was violating the code of 
conduct, and that the Royal Nepal Army (RNA) was terrorizing 
Maoists in rural parts of Nepal.  In a press release dated 
June 29 Prachanda accused the GON of not taking the Maoists 
seriously, and he also accused the RNA of using US made 
weapons to kill Nepalis, citing the "mass killings" in 
Jajarkot District (Ref B).  (FYI:  We have no credible 
information of US-made weapons being used against civilians. 
End FYI) 
 
KEEPING COUNT 
------------- 
 
8.  Maoist violations of the code of conduct appear to be 
increasing, and several organizations are keeping count. 
Quoting statistics reportedly obtained from security forces, 
the local press reported that the insurgents violated the 
code of conduct at least thirty different times throughout 
fifteen districts during the period of May 22-June 30. 
Violations included extortion, abductions, looting, seizure 
of land, and physical violence.  Senior Maoist leaders, 
however, continue to assert that their cadres are abiding by 
the code of conduct and only collect voluntary donations. 
 
9.  The Informal Sector Service Center (INSEC), a local NGO, 
also detailed numerous violations allegedly committed by 
both the insurgents and security personnel during the period 
of June 9-24.  INSEC's report included an alleged gang rape 
of a woman by a group of men professing to be Maoists, as 
well as other incidents of looting.  Security forces were 
accused of rape, torture and assault in separate incidences. 
 
GON "READY FOR TALKS" 
--------------------- 
 
10.  In an attempt to make progress in the stalled peace 
negotiations, facilitators met separately with 
representatives of the GON and Maoist negotiating teams on 
July 1.   According to facilitators, the two sides have 
agreed to sit for a third round of talks soon. Kamal Thapa, 
Minister of Information and Communications and GON 
negotiating team member, said on June 29 that the GON was 
"ready for talks" at any time, but was awaiting a response 
from the Maoists.  Thapa reportedly spoke informally with 
Krishna Bahadur Mahara, Maoist spokesman, on June 27 in an 
attempt to set up a date for the third round of peace 
negotiations.  According to press reports, Minister Thapa 
was hopeful that the next round would be held in mid-July, 
and hinted that part of the agenda would focus on the 
agreements made during the second round of talks, including 
the controversial issue of the army's restriction to a 5- 
kilometer radius from their barracks, and the disputes 
regarding alleged violations of the code of conduct. 
 
11.  Krishna Bahadur Mahara, Maoist spokesman and 
negotiating team member, said on July 1 that the controversy 
over the restriction of the army's movement should not 
hinder the progress of the peace negotiations.  Mahara said, 
however, that the GON should implement the other agreements 
that were made, including the release of imprisoned Central 
Committee Members. 
 
NEW MAOIST PHILOSOPHY? 
---------------------- 
 
12.  On July 1 Mahara told an audience of members of the 
lower castes that the right to rebel should be guaranteed. 
In direct contrast to traditional communist doctrine, Mahara 
said the Maoist Central Committee was committed to launching 
a new model of democracy which would ensure the "right to 
rebel and renounce the communist dictatorship."  In an 
apparent attempt to explain the surprising new philosophy, 
Mahara pledged that the Maoists were for the people and the 
people should revolt when someone goes against their wishes. 
He claimed his party was progressive, and it was not crucial 
to stick to policies made seven years ago at the beginning 
of the "Peoples' War." 
 
MAOIST TERROR GOES ON 
---------------------- 
 
13.  Maoists in far northeastern Taplejung District 
reportedly are actively recruiting minors, some as young as 
twelve years old.  A Maoist leader in the district denied 
the accusations, but conceded that the insurgents had opened 
a recruitment center after local youths showed an interest 
in joining the Maoists.  He also claimed that the Maoists 
did not recruit anyone less than sixteen years of age.  A 
reliable Embassy contact from the district reports that 
parents from her village are sending their children 
unaccompanied to Kathmandu to protect them from Maoist 
conscription. 
 
14.  Maoists brutally murdered two people and seriously 
injured another.  On June 27 the insurgents allegedly hacked 
to death a Nepali Congress (NC) activist in Baglung 
District.  On July 1 four Maoists reportedly stormed into 
the home of the headmaster of a private school in Lalitpur 
District of Kathmandu Valley.  The insurgents stabbed him 
and his wife repeatedly, killing the wife and seriously 
injuring the principal.  Maoists in Sarlahi District 
reportedly are openly demanding donations as high as two 
thousand dollars, an exorbitant amount in rural areas.  The 
Superintendent of Police in the district told the local 
press on June 29 that the Maoists continue to extort, murder 
and kidnap despite the ceasefire. 
 
15.  Insurgents in the far western district of Dolpa 
reportedly have posted rules and regulations throughout the 
district, renamed parts of the region, and instituted their 
own form of government.  According to the local press, the 
Maoists have seized control of several Village Development 
Committees (VDC) and renamed them "Village Peoples' 
Committees."  The insurgents have implemented trade 
guidelines in which merchants are required to register and 
receive permission from the Maoists in order to conduct 
business.  A tax collection system has also been set up, 
along with special "courts" where the Maoists impose their 
own form of justice and punishment.  The GON's Chief 
District Officer (CDO) admitted there were several areas 
that are "severely affected" by the Maoists, but denied that 
the district administration has lost control of the region. 
 
16.  Construction of a hydropower project in Lamjung 
District remains postponed indefinitely after the Maoists 
reportedly banned workers from entering the village a year 
ago.  Officials with the Annapurna Conservation Area Project 
(ACAP) said on June 29 that Maoists still have not allowed 
work to begin, despite the ceasefire.  Almost five hundred 
homes would benefit from the project. 
CEASEFIRE OFFERS LITTLE COMFORT 
------------------------------- 
17.  The declaration of a ceasefire has done little to 
comfort victims of the Maoist insurgency.  Despite the pleas 
made by Maoists for people to return to their homes after 
the declaration of the ceasefire, some who returned 
reportedly were killed by the insurgents while others were 
forced to donate large sums of money.  According to the 
Maoist Victims Association (MVA), a local organization, 
there are over one thousand registered victims who fled to 
Kathmandu and abandoned their homes, land and livelihoods 
out of fear of the Maoists.  Victims claim that the Maoists 
now move freely throughout rural areas and openly extort 
money and torture people, making it impossible to return 
home.  MVA claims that because of the ceasefire, the GON has 
also stopped financial assistance. 
 
18.  In the far eastern district of Tehrathum, a two-year 
ban on the sale of agricultural goods imposed by the Maoists 
still has not been lifted despite the ceasefire.  Villagers 
whose livelihood depends on the outside sale of agricultural 
products said that there is no "difference before and after 
the cease-fire," and lament that the insurgents continue 
extortion and abduction due to the lack of security 
personnel.  The code of conduct agreed to by the GON and the 
Maoists allows for the unrestricted transport of food, 
medicine and other goods. 
 
19.  The Government of Japan is providing humanitarian aid 
for victims of the Maoist insurgency in the mid-western 
district of Rolpa.  Over two hundred displaced families are 
receiving donations of rice, vegetables, ready-made food 
items and utensils. 
 
MALINOWSKI