US embassy cable - 03KATHMANDU1511

UNCLAS SECTION 01 OF 03 KATHMANDU 001511 
 
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, AUGUST 2-8 
 
REFERENCE:  (A) KATHMANDU 1431 
            (B) KATHMANDU 1496 
 
SUMMARY 
------- 
 
1. Despite agreement by the Maoists to sit for another round 
of peace talks with the Government of Nepal's (GON) 
negotiating team (Ref A), no date has yet been set, and the 
Maoist leadership remains out of the public eye and 
reportedly out of Nepal.  Nepal's main political parties 
have once again rejected Prime Minister Surya Bahadur 
Thapa's plea to join the peace talks.  Ambushes by Maoist 
cadres killed seven security personnel and injured twenty- 
nine others.  One civilian also was killed.  Maoists have 
warned that the attacks will continue if security forces 
move more than five kilometers from their barracks.  Maoists 
reportedly continue to use the Nepal-India border to smuggle 
in contraband.  Eleven people were abducted by insurgents in 
different parts of Nepal, and the Maoists continue to 
threaten Christian and US affiliated organizations.  The 
insurgents also extorted money from an American volunteer 
Christian development group.  End Summary. 
 
THIRD ROUND OF DIALOGUE STILL ELUSIVE 
------------------------------------- 
 
2.  Although the Maoists have agreed to sit for another 
round of peace talks, (Ref A) no date has yet been set.  On 
August 5 Kamal Thapa, Minister of Information and 
Communication and member of the GON's negotiating team, said 
the GON is ready but the Maoists have not confirmed a date. 
Peace talks facilitators are attempting to establish a date 
before the GON's original suggestion of August 15, based on 
Maoist assertions that they want talks "at the earliest." 
Baburam Bhattarai, head of the Maoist negotiating team, 
reportedly told peace talk facilitators on August 7 that the 
Maoists would propose a date within the next few days. 
 
3.  On August 3, Minister Thapa, in response to the Maoists' 
demand that the GON present its agenda for talks, said the 
agenda would focus on the constitution and not individual 
issues.  He said the GON is "in constant touch with the 
political parties, civil society and government agencies" to 
help frame its agenda, but it is not yet finalized. 
 
POLITICAL PARTIES WON'T PARTICIPATE IN TALKS 
-------------------------------------------- 
 
4.  The main political parties have rejected Prime Minister 
Thapa's plea to participate in the peace talks, announcing 
that they cannot interact with an "unconstitutional 
government."  The Prime Minister had issued a statement on 
August 4 asking for cooperation from all the political 
parties to ensure the success of the peace talks, declaring 
that Nepal is at a "very difficult and decisive phase" after 
suffering irreparable losses.  Leaders of the parties, 
however, rejected the Prime Minister's plea, and said they 
will continue their movement against monarchial 
"regression."  Madhav Kumar Nepal, General Secretary of the 
Communist Party of Nepal-United Marxist Leninist (CPN-UML), 
said his party welcomes the talks but that the current 
"unconstitutional government" is incapable of dealing with 
the political demands of the Maoists. 
 
5.  According to August 3 press accounts, Girija Prasad 
Koirala, President of Nepali Congress, also rejected the 
invitation to party participation from Pushpa Kamal Dahal 
(Prachanda), Maoist Supreme Leader, as nothing more than a 
trick to derail the parties' movement against the 
government. 
 
6.  Padma Ratna Tuladhar and Sailendra Kumar Upadhaya, two 
of the peace talks facilitators, said that the next round of 
talks would be held even without the participation of the 
political parties.  On August 1 Tuladhar quoted Baburam 
Bhattarai, Maoist ideologue and head of the Maoist 
negotiating team, as saying that the third round of talks 
would be held regardless of whether the political parties 
participated.  Upadhaya issued a statement on August 2 
supporting this position. 
 
MAOISTS AMBUSH SECURITY FORCES 
------------------------------ 
 
7.  Violent attacks by Maoists against security forces in 
the eastern district of Panchthar appear to be on the rise. 
On August 6 one civilian and a Royal Nepal Army (RNA) 
soldier were killed in an ambush by insurgents.  Five 
security personnel were killed and twenty-eight were injured 
on August 5 after the truck they were riding in drove over a 
landmine planted by Maoists.  On August 4 in the same 
district, security forces and Maoists exchanged gunfire 
after the insurgents reportedly threw bombs at security 
forces returning from patrol. There were no casualties 
reported.  A Maoist district secretary reportedly threatened 
that the Maoists would "repeat such actions" if government 
forces patrolled beyond five kilometers of their barracks. 
The Home Ministry issued a statement condemning the attacks 
and said "it is a matter of sadness that the Maoists have 
continued such violent activities." 
 
8.  On August 4 in the western district of Dailekh, Maoists 
reportedly threw grenades and opened fire on RNA personnel 
guarding a telecommunications tower.  One female Maoist was 
killed by return fire.  On August 3 in the same district, 
RNA soldiers and insurgents reportedly were involved in a 
confrontation.  Maoists claim they have been ordered to 
attack government troops who go outside five kilometers of 
their barracks.  (Note:  One of the Maoists' demands has 
been to implement an agreement allegedly reached during the 
second round of peace talks that restricts the RNA to within 
five kilometers of their barracks.  The GON denies even 
agreeing to this and has not complied.  End note). 
 
9.  Two policemen were attacked on August 1 in Nawalparasi 
District while surveying flood damage in the area.  A group 
of Maoists opened fire on them, killing one officer 
instantly, while the other managed to escape. 
 
MAOISTS USING NEPAL-INDIA BORDER TO IMPORT WEAPONS 
--------------------------------------------- ----- 
 
10.  According to press reports on August 6, Maoists are 
using the far-western district of Kanchanpur, which borders 
India, to smuggle in weapons and ammunition.  Security 
forces reportedly said the insurgents are using the border 
region to import masses of pipes for use in constructing 
pipe bombs, and are also smuggling in explosives.  Security 
has been increased in the region. 
 
MAOISTS DEMAND MONEY FROM US VOLUNTEER GROUP 
-------------------------------------------- 
 
11.  On August 2, Maoists in Nuwakot District, immediately 
north of Kathmandu, extorted money from a group of Americans 
assisting in the reconstruction of a school (Ref B).  The 
group of fourteen Americans, twelve of whom are high school 
students, is part of "Global Roots," a Christian volunteer 
program based in Boston.  Maoists in the village of Sirubari 
approached the group and according to the group's 
coordinator, they were "forced to pay fees."  The insurgents 
also harangued the group for over an hour, during which they 
professed to hate America and President Bush.  According to 
the coordinator of the group, the Maoists declared that 
"This is our area.  We are in control.  Just like any other 
area you have to pay fees for entering our zone."  Fearing a 
return of the Maoists and demands for higher fees, the group 
terminated the project early and left the area early the 
next morning. 
 
ABDUCTIONS BY MAOISTS CONTINUE 
------------------------------ 
 
12.  Maoists continue to violate the ceasefire by abducting 
civilians and security personnel.  On August 3 the 
insurgents reportedly abducted seven civilians in the 
eastern district of Udayapur who were cutting timber.  On 
that same day in Dolakha District, two brothers, one of whom 
is a policeman, were abducted by Maoists.  The officer 
remains missing, but the insurgents released his brother 
after severely beating him.  A group of Maoists in Rauthat 
District abducted a father and son on August 6.  Their 
whereabouts remain unknown. 
 
MAOISTS WARN AGAINST CHRISTIAN ORGANIZATIONS 
-------------------------------------------- 
 
13.  On August 6 Maoists in the districts of Nuwakot, 
Sindhupalchowk and Rasuwa, all immediately north of 
Kathmandu, issued a joint statement warning of action 
against USAID for "unnecessarily influencing Nepalis in the 
name of Christianity."  The insurgents oppose the conversion 
of Hindus to Christianity and have accused USAID of 
attracting over five thousand Hindus to Christianity.  In 
Nuwakot the Maoists reportedly already have banned all 
Christian organizations, accusing them of using the guise of 
religion to support "US backed elements." 
 
MALINOWSKI