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

UNCLAS SECTION 01 OF 05 KATHMANDU 000471 
 
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/RIE DEL 
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 
 
E.O. 12958: N/A 
TAGS: PHUM PTER CASC PGOV NP IN
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 8-14 
 
REF:  KATHMANDU 0311 
 
SUMMARY 
------- 
 
¶1.  The Government of Nepal (GON) and the Maoists jointly 
announced the signing of a code of conduct on March 13. 
Dinanath Sharma, senior-level Maoist and member of the 
Maoist negotiating team, arrived in the capital and met with 
the major leftist political parties.  Prime Minister 
Lokendra Bahadur Chand called for the political parties to 
put aside their differences and personal interests in order 
to create lasting peace.  Narayan Singh Pun, Minister of 
Physical Planning and Works and government-appointed peace 
talks coordinator said that now was not the time to debate 
the constitutionality of the present government, but to 
solve the nation's problems.  The major parties boycotted, 
for the second time, an all-party meeting called by Prime 
Minister Chand on March 11 to discuss ceasefire 
negotiations. 
 
¶2.  Summary Continued.  Fourteen Maoists escaped from police 
custody in far-western Kanchanpur District on March 8 after 
beating up the guards.  Imprisoned Maoists in Bhadrapur 
District have launched protests.  Two Maoists were released 
from prison in Navalparasi District, and the Supreme Court 
ordered the release of fifteen other prisoners from a 
Kathmandu jail.  Maoists reportedly detonated a powerful 
bomb in Achham District in March 8 and destroyed a 
communications tower.  Four Maoists were killed on March 8 
in Jajarkot District when a bomb they were carrying 
exploded.  Maoists reportedly have attempted to extort money 
from a schoolteacher in Baglung District.  The families of 
two school children killed by Maoists at a Baglung District 
school on February 18 (Reftel) have accused the GON of 
failing to properly investigate the deaths out of fear of 
disrupting the peace process.  The All Nepal National 
Independent Students Union-Revolutionary (ANNISU-R) 
padlocked government-run colleges throughout the Kathmandu 
Valley on March 9. The pro-Maoist student wing said the 
lockdown would continue indefinitely.  The Appellate Court 
of Patan in Kathmandu reportedly issued arrest warrants on 
March 12 for Maoist leaders Prachanda,  Baburam Bhattarai, 
and Ram Bahadur Thapa in response to the criminal cases 
filed against them by the GON.  On March 8 Minister Pun 
reportedly said that the donor community had pledged almost 
two thousand tons of food grain to feed the insurgents. A 
junior minister denied Pun's statement the next day.  End 
Summary. 
 
CODE OF CONDUCT SIGNED; MAJOR PARTIES REACT 
------------------------------------------- 
 
¶3.  After almost daily promises by Narayan Singh Pun, 
Minister of Physical Planning and Works and government- 
appointed coordinator for peace talks that a code of conduct 
would be made public, the GON and the Maoists held a press 
conference on March 13 and jointly announced that a twenty- 
two-point code of conduct had been concluded between the GON 
and the Maoists (septel). The code of conduct was signed by 
Minister Pun and Dr. Baburam Bhattarai, leader of the Maoist 
negotiation team.  Krishna Bahadur Mahara represented the 
Maoist party at the press conference because Bhattarai is 
still underground.  Mahara said the Maoists were committed 
to a peaceful resolution, and the Maoist negotiating team, 
including Bhattarai, would arrive in Kathmandu when they are 
certain the code is being implemented properly. 
 
¶4.  The major political parties hailed the signing and 
reportedly were hopeful that it signified the end of the 
cycle of violence, murder and destruction, but also remained 
somewhat skeptical about whether or not it would be followed 
by both sides.  Arjun Narsingh K.C., spokesman of Nepali 
Congress (NC), was quoted as saying the code of conduct was 
positive, but was hesitant to judge how helpful it would be 
until it was determined that the code was being implemented 
properly. 
¶5.  R.K. Mainali, member of the Communist Party of Nepal- 
United Marxist Leninist (CPN-UML), said that the code should 
be implemented honestly in order for lasting peace to be 
achieved.  Kamal Thapa, Central Member of the Rastriya 
Prajatantra Party (RPP), hailed the GON's "big achievement" 
in releasing details of the code of conduct.   Deep Kumar 
Upadhyay, Central Member of Nepali Congress (Democratic), 
pledged his party's full cooperation in transforming the 
ceasefire into a lasting peace. 
 
MAOIST LEADER MEETS WITH LEFTIST PARTIES IN KATHMANDU 
--------------------------------------------- -------- 
 
¶6.  Dinanath Sharma, senior-level Maoist and member of the 
Maoist negotiating team, arrived in Kathmandu and met with 
the major leftist political parties on March 11.  Sharma's 
highly publicized arrival was the first public visit of a 
senior Maoist since the announcement of the ceasefire. 
Sharma declared the Maoists would join all the leftist 
parties in a "united move against the King's regressive 
step."  (Note:  The parties are protesting the King's 
decision to dissolve the previous government on October 4, 
2002).  Sharma also told reporters that he considers the 
government under Prime Minister Chand illegitimate, and 
reiterated that the Maoists are in negotiations with the 
state (i.e., King Gyanendra) and not the Prime Minister. 
 
¶7.  Prior to the signing of the code of conduct, Sharma 
reportedly accused the GON of delaying the peace process and 
said the GON was "not serious and sincere for talks." 
Sharma said the Maoists had expected to start talks by the 
end of February, but the GON had not created a conducive 
environment.  Minister Pun downplayed criticism of the GON, 
declaring on March 9 that lasting peace would not be 
attained simply by rushing the peace process. 
 
PRIME MINISTER URGES PARTY COOPERATION 
-------------------------------------- 
 
¶8.  On March 10 Prime Minister Lokendra Bahadur Chand called 
for the political parties to put aside their differences and 
personal interests in order to create lasting peace.  The 
Prime Minister urged party leaders to "forget the bitter 
past and unite for permanent peace."  The major parties 
boycotted, for the second time, an all-party meeting called 
by Prime Minister Chand on March 11. 
They had boycotted a previous all-party meeting to which 
they were invited by Chand on February 17. 
 
¶9.  Minister Pun echoed the Prime Minister's remarks on 
March 10, saying that now was not the time to debate the 
constitutionality of the present government, but to solve 
the nation's problems.  Pun said that the GON had made 
sincere efforts to include the major political parties in 
the peace process, and reiterated that people should "rest 
assure about the success of the talks." 
 
SKEPTICISM PERSISTS ABOUT PEACE TALKS 
--------------------------------------- 
 
¶10.  Local political analysts reportedly are wary of the 
future of the peace talks because of the discontent among 
the major political parties and the GON's dependence on 
military action to solve the current crisis.  According to 
press accounts, analysts who gathered on March 12 to discuss 
the current political situation, contended the GON still 
believes that it can solve the current crisis through 
military action, as evidenced by its refusal to order the 
army back to the barracks.  They are also concerned that 
lasting peace cannot be achieved without the support of the 
political parties. 
 
¶11.  Local human rights activists sympathetic to the Maoists 
gathered on March 12 to urge both the GON and the Maoists to 
come up with clear agendas and make adequate preparations 
for the peace talks.  The activists reportedly accused the 
GON of not taking matters seriously, not learning enough 
about Maoist ideology, and being ill prepared.  They warned 
that these were part of the reason why talks had failed 
previously. 
 
¶12.  Sher Bahadur Deuba, President of Nepali Congress 
(Democratic), said on March 7 that the Maoists should fully 
commit to stop all violence and extortion, declaring that it 
would be "suicidal" if the Maoists turn their back on the 
talks again.  Deuba also reiterated his party's opposition 
to the King's dissolution of the previous government on 
October 4, demanding that the King reinstate the elected 
government. 
 
MAOIST JAILBREAK 
----------------- 
 
¶13.  Fourteen Maoists escaped from police custody in far- 
western Kanchanpur District on March 8 after beating up the 
guards.  Among the escapees are platoon leaders and section 
commanders of the so-called Maoist Peoples Army.  The 
insurgents had been arrested on weapons charges.  The 
suspects are still at large and an investigation into the 
jailbreak is underway. 
 
¶14.  The Supreme Court ordered the release on March 13 of 
fifteen Maoists from a Kathmandu jail.  The detainees had 
been in custody on suspicion of being involved in terrorist 
activities.  The District Administration Office in 
Navalparasi released two suspected Maoists from jail on 
March 12, and said that nine other prisoners might also be 
released after the necessary paperwork is completed. 
Prisoners in Bhadrapur District have launched protests 
demanding their release from custody.  The detainees have 
staged different protests for the past two weeks, and have 
planned another for March 23.  There are currently two 
hundred and seventy-four inmates at the district jail. 
 
CONTINUED VIOLENCE 
------------------ 
 
¶15.  Maoists reportedly set off a powerful bomb in Achham 
District on March 8 and destroyed a communications tower. 
Telecommunications had only been restored recently after a 
previous attack on the tower by the insurgents caused major 
damage.  However, sources in the district say that the tower 
is now beyond repair.  Four Maoists were killed on March 8 
in Jajarkot District when a bomb they were carrying 
exploded. 
 
¶16.  In Baglung District insurgents allegedly approached a 
teacher on March 12 and threatened him with physical harm if 
he did not give them almost a thousand dollars. 
 
¶17.  Senior level Maoists in Dang District announced on 
March 8 that they would return over half a million dollars 
in gold that the insurgents looted from the Nepal Bank 
Limited in the district headquarters.  The insurgents said 
the gold would be returned if the villagers could produce 
genuine bank documents proving ownership. 
 
GON ACCUSED OF COVERUP IN DEATH OF CHILDREN 
------------------------------------------- 
 
¶18.  The families of two school children killed by Maoists 
at a Baglung District school on February 18 (Reftel) have 
accused the GON of failing to investigate properly the 
deaths out of fear of disrupting the peace process. 
District representatives from the Communist Party of Nepal- 
United Marxist Leninist (CPN-UML), Nepali Congress (NC), 
Nepali Congress (Democratic), and the Peoples Front Party 
(PFP) also issued a press release accusing the GON of bowing 
to Maoist threats not to investigate the killings.  The 
parties reportedly said the killings were well planned and 
said the Maoists and the GON are "trying to hide the facts." 
The press release also says there have been other similar 
incidents despite the ceasefire. 
 
COURT ISSUES ARREST WARRANTS FOR MAOIST LEADERS 
--------------------------------------------- -- 
 
¶19.  According to press accounts, the Appellate Court of 
Patan in Kathmandu Valley issued arrest warrants on March 12 
for Maoist leaders Prachanda, Baburam Bhattarai, and Ram 
Bahadur Thapa in response to cases filed against them by the 
GON.  The warrants declare that the Maoists have to appear 
before the court within seventy days.  There has been no 
response from the insurgents. 
 
ANNISU-R PADLOCKS COLLEGES 
-------------------------- 
 
¶20.  The All Nepal National Independent Students Union- 
Revolutionary (ANNISU-R) padlocked branches of government- 
run Tribhuvan University throughout the Kathmandu Valley on 
March 9.  Over half a dozen colleges were locked up by the 
militant student wing of the Maoist party.  Dipendra Pant, 
Chairman of the Kathmandu District of ANNISU-R, said the 
lockdown would continue indefinitely unless the GON met 
their five-point demands.  The demands include the release 
of all imprisoned students; the release of information on 
the whereabouts of Purna Poudel, General Secretary of ANNISU- 
R; an immediate end to arrests of pro-Maoist students; a ban 
on security forces inside campuses; and the admission of pro- 
Maoist students to government-run universities. 
 
¶21.  The ANNISU-R issued an additional seventy-two hour 
ultimatum on March 13 threatening further lockdowns if the 
whereabouts of their comrades were not made public.  The 
militants also demanded that all detained and missing 
students be released by March 19. 
 
¶22.  The Ministry of Education reportedly has contacted the 
ANNISU-R for talks, and Minister Pun sent a letter on March 
10 to the ANNISU-R inviting them to the negotiating table 
and declaring that the GON was ready to solve the problem as 
soon as possible.  (Note:  The ANNISU-R withdrew a call for 
a nationwide strike of educational institutions last month 
after the announcement of the ceasefire).  As of March 14 
the campuses remain locked. 
 
GON TO PROVIDE FOOD TO MAOISTS 
------------------------------ 
 
¶23.  There are conflicting reports over whether or not the 
GON has promised food to the Maoists.  On March 8 Narayan 
Singh Pun, Minister of Physical Planning and Works, 
reportedly announced that the donor community had pledged 
almost two thousand tons of food grain to feed Maoist cadre. 
Minsiter Pun was quoted as saying that the insurgents often 
resort to looting because they do not have sufficient 
clothing and food, and therefore, the GON was offering the 
food to stop the need for looting.  However, on March 9, 
just one day after Pun's statement, Rabindra Khanal, 
Assistant Minister of Education and Sports, denied that the 
GON was offering food to the Maoists.  Khanal issued a 
strong statement saying the GON had not reached any decision 
to provide food. 
MALINOWSKI