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

C O N F I D E N T I A L SECTION 01 OF 03 KATHMANDU 001496 
 
SIPDIS 
 
DEPT FOR SA/INS AND SA/RA 
LONDON FOR POL/GURNEY 
NSC FOR MILLARD 
PLEASE PASS TO USAID/ANE 
 
E.O. 12958: DECL: 07/30/2013 
TAGS: PGOV PTER PINS CASC NP
SUBJECT: NEPAL:  MAOISTS ATTACK SECURITY FORCES; PRESSURING 
THE PENDING PEACE TALKS 
 
REF: A. A. KATHMANDU 1431 
     ¶B. B. KATHMANDU 1423 
 
Classified By: DCM Robert K. Boggs for reasons 1.5 (b) and (d). 
 
Summary 
======== 
 
¶1.  (U) Since their July 31 commitment to a third round of 
peace talks (ref A), the Maoists have increased activities in 
violation of the cease-fire code of conduct resulting in the 
deaths of 8 security personnel and one Maoist.  Maoist 
violations could be a unilateral attempt to restrict the army 
to within 5 kilometers of their barracks.  Coming on the 
heels of threats to American development projects in three 
districts north of Kathmandu (ref B), on August 2, Maoists 
extorted money from American student volunteers and on August 
4 accused USAID of implementing projects in these districts 
designed to proselytize and convert Nepali Hindus to 
Christianity.  Maoist aggressiveness is not limited to the 
U.S., the Australian Embassy reported two recent incidents 
against their projects.  Post will continue to confer with 
non-governmental organizations and diplomatic missions to get 
a better understanding of the scope and depth of recent 
Maoist threats.  End Summary. 
 
Maoist Code of Conduct Violations 
================================== 
 
¶2.  (U) Since their July 31 announcement committing them to a 
third round of peace talks (ref A), the Maoists have 
increased the pace of their violations of the agreed 
code-of-conduct.  In nine days, the press has reported that 
Maoists have ambushed government security patrols, stolen 
government funds for the poor, executed a police officer, and 
abducted both security personnel and civilians.  The reported 
incidents are outlined below: 
 
-- July 31, Maoists ambushed an army unit en route to inspect 
a telecommunications repeater just outside Sindhuli District 
headquarters, 70 kilometers east of Kathmandu.  The Maoists 
hung two soldiers, while three were able to escape, one with 
minor injuries. 
 
-- August 1, Maoists shot a police officer in Bhairahawa, a 
border town in south-central Nepal, while he was inspecting 
damage caused by flooding. 
 
-- August 2, five students abducted five months ago from 
their schools in Khotang District, in eastern Nepal, escaped 
from a Maoist training camp. 
 
-- August 3, Maoists and an army patrol reportedly exchanged 
fire in Dailekh District, in Nepal's mid-west, killing one 
Maoist guerrilla and injuring six others.  The army took nine 
into custody and confiscated improvised explosives, bullets, 
and political documents. 
 
-- August 3, Maoists abducted seven civilians cutting timber 
in Udaypur District in Nepal's eastern hills. 
 
-- August 3, Maoist cadres in Taplejung, in Nepal's far-east, 
took over USD 300 from a village secretary intended for 
distribution to the elderly and widows. 
 
-- August 4, insurgents abducted a police officer and his 
brother returning from a rural post in Ramechap, a district 
60 kilometers east of Kathmandu.  The brother was released 
after a severe beating. 
 
-- August 5, the press reported a Maoist ambush of a combined 
army and police patrol in Panchthar District in Nepal's 
far-east.  The attack killed five and injured 28 others. 
 
-- August 5, Maoists reportedly attacked security forces on 
patrol in Dailekh District in Nepal's mid-west.  No casualty 
figures were provided; however, Maoists were quoted with 
saying that their cadres have been ordered to attack 
government forces that move outside a 5-kilometer radius of 
their barracks.  (Note:  The Maoist negotiators claim, and 
the government disputes, that the 5-kilometer restriction was 
agreed to at the second round of peace talks.  End note.) 
 
 
Threats to Americans 
===================== 
 
¶3.  (U) On August 2, a group of American Christian students 
volunteering with Global Roots of Boston were approached by a 
group of Maoists in Nuwakot District immediately north of 
Kathmandu.  The Maoists lectured the group for over an hour 
with a speech that included anti-American and anti-Bush 
sentiments.  The Maoists stated that they would not hold 
American policies against the students, but the Maoists 
demanded each of the students to pay a USD 5 fee (which they 
did).  Carole Lester, the group's coordinator, quoted the 
Maoists as saying, "This is our area.  We are in control.  If 
you were not students, we would have charged you USD 50 per 
person.  If you had been affiliated with an NGO 
(non-governmental organization), you would have been charged 
50 percent of the development costs."  The students were 
building an extension to a village school with USD 5,000 
raised in the U.S.  Lester reported that after this 
encounter, the group pulled out of the project and left 
Nuwakot the next morning.  (Note:  The RSO had briefed the 
coordinator before they departed for Nuwakot, urging them to 
reconsider.  End note.) 
 
¶4.  (U) The local press reported that at a press conference 
on August 5, a Maoist leader of the Rasuwa, Nuwakot, and 
Sindhupalchok Districts accused USAID of funding the 
construction of four churches in the three districts in order 
to proselytize.  He alleged that USAID has attracted more 
than five thousand Hindus to Christianity.  (Note: 
Prosylitizing is prohibited by Nepali law, although people 
may voluntarily pursue a change in faith.  End note.) 
 
Australian-affiliated Projects Harassed 
========================================= 
 
¶5.  (SBU) Maoist aggressiveness is not limited to the U.S. 
For example, the Australian Embassy reported to the DCM two 
recent Maoist threats to Australian-affiliated projects.  In 
Kavre District, adjacent to Kathmandu to the east, an 
Australian project vehicle was stopped by gun and grenade 
toting Maoists who demanded a ride; against security 
guidelines, the driver did so.  This event has put at risk 
Australia's 20 year-old commercial forestry projects in Kavre 
and Sindhupalchok (northeast of Kathmandu) Districts. 
Australian project vehicles will no longer be allowed to 
travel through these districts, and all project management 
will be confined to Kathmandu.  The Australian Embassy will 
reassess the security conditions in a couple of weeks and 
adjust or cancel the program as necessary. 
 
¶6.  (SBU) In Rasuwa District, a district north of Kathmandu 
on the Chinese border, the Australian Embassy reported that 
an Australian who heads a Seventh-Day Adventist NGO has 
negotiated repeatedly with Maoist representatives to avoid 
paying extortion.  The Australian has had to travel to the 
district on five occasions to participate in these 
discussions, with one of the sessions lasting five hours.  To 
date, the group has reportedly avoided paying the Maoists. 
However, in the last session the Maoists stated that if the 
effort had been affiliated with the U.S., they would not have 
entertained negotiations and would have just shutdown the 
project.  In addition to these two incidents, the Australian 
Embassy reported that the Maoist extortion has become more 
aggressive in both Kavre and Sindhupalchok Districts. 
 
Comment 
======== 
 
¶7.  (C) Maoist Violations:  If Maoist statements that they 
are unilaterally enforcing the supposed 5-kilometer 
restriction are true, Post expects there will be more attacks 
in coming days.  The Maoists' rampant violations of the 
code-of-conduct are not matched by the government, which has 
refrained from retaliating against Maoist violations for fear 
of providing the Maoists with a pretext for breaking the 
cease-fire.  The heightened levels of violence appear to be a 
Maoist tactic to pressure the government to concede to the 
5-kilometer restriction on the movement of security forces in 
the upcoming peace talks.  In view of previous government 
statements on this issue (ref B), it is unlikely the 
government will agree to this restriction. 
 
¶8.  (SBU) Maoist Threats to Americans:  The threats to Global 
Roots volunteers confirms reports of Maoist threats to 
American-associated groups in Nuwakot District (ref B).  The 
alleged demand for a 50 percent cut of NGO project funds is a 
new element that, if adhered to on a national scale, will 
certainly restrict the efforts of USG development programs 
and the work of many privately-funded American organizations. 
 Post will propose language for an amended Public 
Announcement after conferring with USAID development partners 
and other diplomatic missions regarding their recent 
experiences with the Maoists.  End Comment. 
MALINOWSKI