This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 KATHMANDU 002052 
 
SIPDIS 
 
SENSITIVE 
 
STATE FOR SA/INS AND DS/IP/SA 
STATE ALSO PASS USAID/DCHA/OFDA 
LONDON FOR POL - RIEDEL 
MANILA FOR USAID/DCHA/OFDA 
 
E.O. 12958: N/A 
TAGS: PTER ASEC PGOV CASC NP
SUBJECT: KATHMANDU VALLEY STRIKE OBSERVED; MAOISTS CLAIM 
DOOR OPEN FOR TALKS 
 
REF: A. (A) KATHMANDU 2038 
 
     ¶B. (B) KATHMANDU 2035 
 
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SUMMARY 
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¶1.  (SBU) Four people were slightly injured in a series of 
small explosions in the heart of Kathmandu--including two in 
or near the Thamel tourist district--October 27.  The 
Maoists' October 28 strike in the Kathmandu Valley and 
October 27 strike in the southern Terai plains region 
bordering India were largely observed by the general public. 
At least 30 Maoists were reported killed when the Royal Nepal 
Army (RNA) repulsed a Maoist attack on a small airport in the 
remote northeastern district of Okhaldhunga October 27.  An 
October 24 press statement from the Maoist Central Committee 
reiterates the insurgent leadership's openness to talks and 
calls on the King to create an environment conducive to 
dialogue.  End summary. 
 
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THAMEL TARGETED 
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¶2.  (U) In an apparent effort to intimidate the local 
population into observing the general strike, or "bandh," 
they had called for October 28 in Kathmandu Valley (Ref B), 
suspected Maoists set off a series of small bombs within the 
space of a few hours October 27 in heavily traveled areas of 
Kathmandu--including, for the first time, the tourist 
district of Thamel.  Although a mid-afternoon bomb placed in 
a bathroom near a popular pizza restaurant in Thamel blew out 
the walls of the restroom and some windows of adjoining 
shops, no injuries were reported.  A bomb in the parking lot 
of a crowded movie theatre (the only English-language cinema 
in town) a few blocks from Thamel near the Royal Palace 
injured one Nepali, while a third explosion at a dairy near 
the Indian and British Embassies injured three.  No injuries 
were reported in a fourth explosion in the historic city of 
Bhaktapur. 
 
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VALLEY, TERAI STRIKES OBSERVED 
------------------------------- 
 
¶3.  (U)  The October 28 strike called by the Maoists for the 
Kathmandu Valley appears to have been generally observed 
within the city, with about 65 percent of shops and 
businesses remaining closed for the day.  Commercial and 
private vehicular traffic was minimal throughout the day, 
with only the occasional government- or diplomatic-plated 
vehicle speeding past processions of bicycles and rickshaws. 
Both Lincoln International School, which is attended by most 
dependent children at the Embassy and the USAID Mission, and 
the British School were closed for the day.  An October 27 
bandh called for the southern plain region (known as the 
Terai) bordering India was apparently best observed in 
outlying districts, while business in the larger (and better 
defended) cities of Hetauda and Nepalgunj seemed less 
affected.  Sources in the Nepal Sadbhavana Party, whose 
stronghold is in the Terai, told us urban areas of 
Nawalaparasi, Rautahat and Rupandehi Districts were deserted, 
with shops closed and no vehicular movement.  An NGO source 
told us almost all shops were open in Nepalgunj (home of the 
RNA's First Division), however, and motorcycles (but no 
private cars or jeeps) were plying the streets, although 
long-distance buses had apparently suspended operations for 
the day.  A businessman in the industrial town of Hetauda in 
Makwanpur District offered the most encouraging report, 
telling us that all the shops were open and traffic normal 
October 27. 
 
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OKHALDHUNGA ATTACK 
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¶4.  (SBU)  A large force of Maoists attacked a combined 
police/RNA post guarding an airport in Okhaldhunga District, 
180 miles northeast of Kathmandu, at about 10:30 p.m. local 
time October 27.  According to an RNA source, the security 
forces succeeded in repulsing the attack, which ended by 
about 2:30 a.m. October 28.  The Maoists, who suffered at 
least 32 confirmed casualties, did not succeed in penetrating 
the perimeter.  Two RNA soldiers, including the platoon 
commander, a captain, were killed in the attack.  Chief of 
Army Staff Gen. Pyar Jung Thapa reportedly visited the site 
and inspected RNA defenses there the previous week. 
 
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MORE PARTY PROPAGANDA ON PEACE TALKS 
------------------------------------- 
 
¶5.  (U) A press statement from the Maoist Central Committee, 
dated October 24, claims that the party "has kept the door 
for peace talks and negotiation open."  The "grave situation" 
of the country presents two options.  Either the King must 
"demonstrate the kind of sacrifice that could ultimately 
benefit the nation and the people" by accepting the election 
of a constituent assembly, with the aim of drafting a new 
constitution.  On the other hand, "if the King, instead of 
leading the nation toward national unity and people's 
sovereignty, tries to suppress people by deploying the Royal 
Nepal Army and an international army . . . then there is no 
alternative before the people but to go ahead with the 
historic struggle. . . . Here we would like to make clear 
that our party is ready for both options."  If the King 
prefers to seek dialogue, the statement puts the burden on 
him to offer a proposal for a "conducive atmosphere." 
 
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COMMENT 
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¶6.  (SBU)  Up to now, the Maoists, despite their fiery 
anti-foreign rhetoric, have generally not targeted 
tourist-frequented areas in their campaign.  Even though no 
one was hurt in the October 27 bombing in Thamel and just one 
person slightly injured in the cinema parking lot bombing the 
same day, the message was clear.  The Maoists clearly have 
the capability to harm foreigners.  In this context, the 
Maoists' injunction to the King to create a "conducive 
atmosphere" for dialogue takes on a significantly more 
threatening tone---and throws into even greater uncertainty 
the insurgents' sincerity in calling for talks.  In view of 
this unsettling new note, the EAC has reviewed the Embassy's 
security posture and determined that it is appropriate.  We 
will continue to monitor the security situation with and 
inform the Department of any significant developments. 
MALINOWSKI