US embassy cable - 03KATHMANDU1369

UNCLAS SECTION 01 OF 02 KATHMANDU 001369 
 
SIPDIS 
 
SENSITIVE 
 
LONDON FOR POL/GURNEY 
 
E.O. 12958: N/A 
TAGS: PREL, PTER, PGOV, ECON, EINV, NP, Maoist Insurgency 
SUBJECT: NEPAL:  JOINT STATEMENT CONDEMNING MAOIST 
EXTORTIONS 
 
REF:  A.  KATHMANDU 1367  B.  KATHMANDU 1358 
 
1.  (U) Ref A cable resent to expanded list of 
addressees (AmEmbassies Berlin and Paris). 
 
2.  (U) On July 21, the Industrial Security Group in 
Nepal released a press statement condemning Maoist 
extortions of individuals and businesses during the 
current cease-fire.  Despite provisions in the code of 
conduct barring the practice, Maoist exactions have 
grown in size and scope in recent months.  The 
Industrial Security Group, chaired by the British 
Ambassador and composed of the bilateral chambers of 
commerce and industry and representatives of the 
embassies of France, Germany, India, U.K. and the U.S., 
issued the statement to highlight on the Maoists' 
continuing crimes and to call for an end to them.  The 
Ambassadors received the support of the Prime Minister 
before releasing the statement (ref B).  (The statement 
is provided in its entirety at paragraph 4.) 
 
3.  (SBU) Comment:  The public statement is precedent- 
setting, as it brought together disparate national 
agendas on a single issue.  Despite early uncertainty 
surrounding the stand of the Indian Embassy, in the end 
it joined with the other members in endorsing the 
statement.  In addition to the unusual cooperation of 
India, it is notable that the usually quiet European 
missions also fully supported this action.  End 
comment. 
 
4.  (U) Press Statement, begin text: 
 
Joint Statement of the Industrial Security Group 
Concerning Maoist Extortion 
 
Throughout the period of insurgency in Nepal, 
businesses have complained of extortion demands by 
representatives of the Communist Party of Nepal 
(Maoist).  Extortion is a hidden crime, conducted away 
from view, which exploits the fear of its victims. 
Before the cease-fire, this extortion was enforced by 
terrorist threats and use of violence, including 
beatings, shootings and bombings.  The cease-fire 
between the government and the militants in January, 
and the adoption of a Code of Conduct in March should 
have lead to the end of extortion.  Sadly, this has not 
been the case.  Reports of extortion by members of the 
CPN(M) have increased substantially during the cease- 
fire in the number of incidents, geographical extent 
and amounts of money demanded. 
 
Though the cease-fire has reduced the level of over-all 
violence, Maoists have continued to press Nepalis from 
all walks of life--businessmen, families, farmers, 
landowners, civil servants, development workers, 
educators and factory workers--for money and food. 
These extortion demands are criminal and violate not 
only Nepali law but also the internationally recognized 
right of the Nepali people to security for themselves, 
their families and their property.  Maoist extortion 
also flouts the ninth point of the Code of Conduct, 
which states "There will be no forceful collection of 
cash or kind".  The intensified demands belie Maoist 
claims to support the welfare of the people and the 
health of the nation's economy.  Extortion erodes 
public and international confidence in the Maoists' 
sincerity in seeking a stable peace through 
negotiation.  Extortion of money from tourists also 
threatens Nepal's international standing and economic 
well-being and should end. 
 
Chambers of Commerce and Industry and their 
international partners, in the interest of the welfare 
of Nepal's people and the sanctity of the rule of law 
in the Kingdom, call upon the CPN(M) to end immediately 
these criminal exactions and adhere to all the 
conditions in the Code of Conduct.  The Industrial 
Security Group also urges His Majesty's Government to 
make extortion and other violations of the Code of 
Conduct (including interference in schools, 
intimidation of development projects and extortions of 
hospitals, social institutions and tourists) central to 
the next round of peace talks.  The Industrial Security 
Group also urges the Communist Party of Nepal (Maoist) 
to make the necessary steps to rejoin legitimate Nepali 
politics. 
 
Note:  The Industrial Security Group comprised of 
bilateral Chambers of Commerce and Industry and 
representatives of the Embassies of France, Germany, 
India, U.K. and the U.S. 
 
This statement is issued by the British Embassy in 
Kathmandu on behalf of the Industrial Security Group of 
which the Embassy is acting Chair. 
 
21 July 2003 
British Embassy, Kathmandu 
 
End text. 
 
MALINOWSKI