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

UNCLAS SECTION 01 OF 03 KATHMANDU 001670 
 
SIPDIS 
 
STATE FOR SA/INS, LONDON FOR POL/GURNEY, NSC FOR MILLARD 
 
E.O. 12958: N/A 
TAGS: PTER PGOV PREL NP
SUBJECT: NEPAL: MAOIST ACTIVITY AUGUST 23 - 29 
 
REF: (A) KATHMANDU 1650 
     (B) KATHMANDU 1648 
     (C) KATHMANDU 1644 
     (D) KATHMANDU 1620 
     (E) KATHMANDU 1612 
     (F) KATHMANDU 1611 
 
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SUMMARY 
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¶1. ON AUGUST 27, NEPAL'S MAOIST REBELS ISSUED A PRESS 
STATEMENT EFFECTIVELY ENDING THE SEVEN-MONTH LONG CEASE- 
FIRE WITH THE GOVERNMENT OF NEPAL (GON) (REF C).  IN THE 
PRESS STATEMENT, THE INSURGENTS ATTEMPTED TO BLAME THE GON 
FOR THE FAILURE OF THE PEACE PROCESS, CITING ALLEGED GON 
VIOLATIONS OF THE AGREED CODE OF CONDUCT AND GON REFUSAL 
TO CONCEDE TO MAOIST DEMANDS FOR A CONSTITUENT ASSEMBLY. 
HOWEVER, THE POLITICAL PARTIES AND CIVIL SOCIETY HAVE 
DEPLORED THE MAOIST DECISION, CALLING IT A "BETRAYAL" OF 
THE NEPALI PEOPLE'S DESIRE FOR PEACE. 
 
¶2. SUMMARY CONTINUED: THE MAOIST DECLARATION ARRIVED AMID 
INCREASED MAOIST VIOLENCE IN MANY PARTS OF THE COUNTRY, 
INCLUDING AN ATTACK ON FORMER PRIME MINISTER DEUBA AND THE 
DESTRUCTION BY ARSON OF A LARGE PAPER MILL IN THE TERAI 
(REF D).  SINCE THE BREAK IN THE CEASE-FIRE, THE MAOISTS 
ATTEMPTED TO ASSASSINATE TWO ARMY COLONELS, ABDUCTED OVER 
A DOZEN CPN-UML PARTY MEMBERS AND LOOTED OVER USD 50,000 
FROM A BANK IN DANG DISTRICT (REF B).  IN REACTION, THE 
GON RE-DESIGNATED THE MAOISTS AS A TERRORIST GROUP AND PUT 
SECURITY FORCES ON HIGH ALERT WITH NIGHTTIME CURFEWS 
IMPOSED IN TEN DISTRICTS AS OF AUGUST 29 (REF A).  END 
SUMMARY. 
 
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MAOISTS ISSUE ULTIMATUM ON CONSTITUENT ASSEMBLY 
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¶3. ON AUGUST 24, THE MAOISTS ISSUED AN ULTIMATUM GIVING 
THE GON UNTIL AUGUST 26 TO AGREE TO THE FORMATION OF A 
CONSTITUENT ASSEMBLY TO REDRAFT NEPAL'S CONSTITUTION.  THE 
ULTIMATUM FOLLOWED LESS THAN A WEEK AFTER THE CONCLUSION 
ON AUGUST 19 OF THE THIRD ROUND OF PEACE TALKS AND A DAY 
AFTER GON NEGOTIATOR AND FINANCE MINISTER, PRAKASH CHANDRA 
LOHANI, CALLED THE MAOIST DEMAND FOR A CONSTITUENT 
ASSEMBLY "A STRATEGY TO CONSOLIDATE MILITANT POWER" THAT 
COULD NOT BE CONSIDERED UNLESS THE MAOISTS AGREED TO GIVE 
UP THEIR ARMS. 
 
¶4. MAOIST STATEMENTS MADE PRIOR TO THE AUGUST 24 ULTIMATUM 
SENT MIXED MESSAGES ABOUT THE INSURGENTS' COMMITMENT TO 
THE CEASE-FIRE.  ON AUGUST 23, MAOIST SUPREME LEADER 
PUSHPA KAMAL DAHAL, ALIAS PRACHANDA, REPORTEDLY SAID THAT 
THE MAOISTS WOULD NOT "BACK AWAY" FROM THE CEASE-FIRE, 
WHILE ON AUGUST 24, MAOIST POLITICAL LEADER BABURAM 
BHATTARAI WARNED THAT ANOTHER ROUND OF TALKS WOULD BE 
"FUTILE IF THE GOVERNMENT DOES NOT ACCEPT UNCONDITIONALLY 
A CONSTITUENT ASSEMBLY."  MEANWHILE, GON NEGOTIATORS SAID 
THEY WERE READY TO RESUME PEACE TALKS "ANYTIME AFTER 
MONDAY, ANYWHERE IN NEPAL." 
 
¶5. LEADERS IN BOTH THE NEPALI CONGRESS AND COMMUNIST PARTY 
OF NEPAL - UNITED MARXIST LENINIST (CPN-UML) ALSO REJECTED 
THE MAOIST DEMAND FOR A CONSTITUENT ASSEMBLY, ALTHOUGH 
THEY REMAINED IN FAVOR OF AMENDING THE CONSTITUTION.  CPN- 
UML LEADER K.P. OLI SAID, "THE GOVERNMENT OFFER ON THIS IS 
A GOOD ONE AND SOMETHING WHICH THE REBELS SHOULD AGREE 
TO." 
 
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DEATH OF 17 MAOISTS RAISES INTERNATIONAL CONCERN 
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¶6. ON AUGUST 23, AMNESTY INTERNATIONAL ALLEGED THAT "17 
MAOISTS WERE DELIBERATELY KILLED BY THE ARMY AFTER BEING 
TAKEN INTO CUSTODY" AND DEMANDED A PROBE INTO THE 
INCIDENT, WHICH TOOK PLACE ON AUGUST 17 IN DORAMBA IN 
RAMECHHAP DISTRICT IN CENTRAL-EASTERN NEPAL.  THE ROYAL 
NEPAL ARMY REPORT, HOWEVER, STATED THAT THE SECURITY 
FORCES WERE ATTACKED FIRST AND ONLY RESPONDED IN SELF- 
DEFENSE. 
 
¶7. IN REACTION TO THE DORAMBA INCIDENT, THE MAOISTS 
DECLARED A BANDH, OR GENERAL STRIKE, WHICH WAS CARRIED OUT 
PEACEFULLY IN EASTERN NEPAL ON AUGUST 26.  ALSO ON THE 
26TH, THE NATIONAL HUMAN RIGHTS COMMISSION APPOINTED A 
PANEL, LED BY A FORMER SUPREME COURT JUDGE, TO INITIATE AN 
INQUIRY INTO THE INCIDENT. 
 
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MAOISTS ATTACK FORMER PRIME MINISTER 
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¶8. ON AUGUST 25, MAOISTS AMBUSHED THE CONVEY OF FORMER 
PRIME MINISTER AND LEADER OF THE NEPALI CONGRESS 
(DEMOCRATIC), SHER BAHADUR DEUBA, WHILE HE WAS TRAVELING 
BY ROAD IN KAILALI DISTRICT IN MID-WEST NEPAL TO ATTEND A 
POLITICAL PARTY PROGRAM (REF E).  NO ONE WAS HURT, 
ALTHOUGH HIS VEHICLE REPORTEDLY WAS HIT TWICE BY BULLETS, 
PUNCTURING ONE TIRE.  A POLICE ESCORT VEHICLE WAS ALSO 
HIT.  PRIME MINISTER SURYA BAHADUR THAPA STRONGLY 
CONDEMNED THE ATTACK ON THE FORMER PRIME MINISTER AND SAID 
IT "RAISED SERIOUS DOUBTS OVER THE MAOISTS' COMMITMENT TO 
THE PEACE PROCESS."  ALL OF THE POLITICAL PARTIES ALSO 
MADE STATEMENTS DEPLORING THE MAOIST ATTACK.  ON AUGUST 
26, THE MAOISTS EXPRESSED "SORROW" OVER THE ATTACK ON 
DEUBA AND SUGGESTED THAT THE INSURGENTS WERE NOT AWARE 
THAT THE FORMER PRIME MINISTER WAS IN THE CONVOY. 
 
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MAOISTS TORCH EVEREST PAPER MILL 
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¶9. ON AUGUST 25, MAOISTS IN DHANUSHA DISTRICT IN THE 
EASTERN TERAI USED KEROSENE AND GRENADES TO SET FIRE TO 
THE EVEREST PAPER MILL AND KIDNAPPED THREE INDIAN 
EMPLOYEES, INCLUDING THE CHIEF MANAGER OF THE PLANT. 
THESE WERE THE FIRST INDIAN CITIZENS TO HAVE BEEN ABDUCTED 
BY THE MAOISTS.  DAMAGE TO THE MILL WAS ESTIMATED TO BE 
OVER USD 250,000. 
 
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MAOISTS BREAK CEASE-FIRE AND RESUME VIOLENCE 
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¶10. AFTER SEVERAL DAYS OF RECRIMINATIONS BY BOTH THE GON 
AND MAOISTS, ON AUGUST 27 THE MAOISTS ISSUED A PRESS 
STATEMENT EFFECTIVELY WITHDRAWING FROM THE CEASE-FIRE 
WHILE ATTEMPTING TO BLAME THE GOVERNMENT FOR THE BREAKDOWN 
IN PEACE TALKS (REF B).  THE FOLLOWING MORNING, ON AUGUST 
28, MAOIST HIT TEAMS ATTEMPTED TO ASSASSINATE TWO ARMY 
COLONELS.  COLONEL KIRIN BASNYAT DIED WHILE THE SECOND 
OFFICER, COLONEL RAMINDRA CHHETRI, IS IN CRITICAL 
CONDITION (REF A).  COLONEL BASNYAT IS THE HIGHEST-RANKING 
ARMY OFFICER TO HAVE BEEN KILLED BY THE MAOISTS DURING THE 
SEVEN-YEAR INSURGENCY.  ALSO ON AUGUST 28, MAOIST CADRES 
ROBBED THE RASTRIYA BANIJYA BANK IN DANG DISTRICT, 
STEALING OVER USD 50,000 IN CASH AND SERIOUSLY INJURING A 
BANK OFFICIAL. 
 
¶11. THE GON RESPONDED TO THE INCIDENTS BY RE-DECLARING THE 
MAOISTS AS TERRORISTS -- A DESIGNATION THE GOVERNMENT 
WITHDREW AS A PRE-CONDITION TO PEACE TALKS DURING THE 
CEASE-FIRE.  SECURITY FORCES WENT ON HIGH ALERT WITH 
NIGHTTIME CURFEWS IMPOSED IN TEN DISTRICTS ACROSS THE 
COUNTRY AS OF AUGUST 29. 
 
¶12. THE POLITICAL PARTIES AND INTERNATIONAL COMMUNITY 
WIDELY CONDEMNED THE MAOIST DECISION TO BREAK THE CEASE- 
FIRE.  NEPALI CONGRESS PRESIDENT G.P. KOIRALA URGED BOTH 
SIDES TO SEEK A PEACEFUL SOLUTION THROUGH TALKS WHILE 
NEPALI CONGRESS (DEMOCRATIC) LEADER SHER BAHADUR DEUBA 
CHARACTERIZED THE MAOIST WITHDRAWAL AS A "BETRAYAL." 
 
¶13. ON AUGUST 29, THE MAOISTS ISSUED A PRESS STATEMENT 
DECLARING THAT THE INSURGENTS WOULD RESUME GUERILLA 
WARFARE AND CONDEMNING THE "ARROGANT HINDU MONARCHY" FOR 
"SUBJUGATING" THE PEOPLE OF NEPAL.  "THAT IS WHY THE 
ESTABLISHMENT OF A REPUBLIC AND A NEW NATIONAL ARMY HAS 
BECOME NECESSARY," IT ASSERTED.  THE MAOISTS AGAIN 
CRITICIZED THE U.S. - NEPAL ANTI-TERRORIST AGREEMENT AND 
THE "ARRIVAL OF HUNDREDS OF AMERICAN MILITARY ADVISORS AND 
SUPPLY OF WEAPONS WORTH BILLIONS OF RUPEES."  THE 
INSURGENTS ALSO CALLED FOR A NATION-WIDE BANDH TO CLOSE 
SCHOOLS, BUSINESSES AND TRANSPORTATION FROM SEPTEMBER 18- 
¶20. 
 
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SUMMARY OF CLASHES BETWEEN SECURITY FORCES AND MAOISTS 
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¶14. THE PACE OF VIOLENT CLASHES BETWEEN THE MAOISTS AND 
SECURITY FORCES INCREASED OVER THE PAST WEEK WITH A LARGE 
PROPORTION OF THEM TAKING PLACE IN THE LOWLAND TERAI, 
ALONG NEPAL'S SOUTHERN BORDER WITH INDIA.  ON AUGUST 23, 
SECURITY FORCES INJURED SEVERAL MAOISTS IN LAMJUNG 
DISTRICT AND SEIZED SEVERAL 303-CALIBRE RIFLES AND SOCKET 
BOMBS.  THAT SAME DAY IN KAILALI DISTRICT IN THE WESTERN 
TERAI, THREE POLICE OFFICERS WERE SERIOUSLY INJURED BY A 
MAOIST-LAID LANDMINE.  ALSO ON AUGUST 23, MAOISTS AMBUSHED 
A JOINT ARMY-POLICE PATROL IN KASKI DISTRICT.  ROYAL NEPAL 
ARMY OFFICIALS REPORT THAT NO SECURITY PERSONNEL WERE 
INJURED AND AT LEAST TEN REBELS WERE KILLED, ALTHOUGH NO 
BODIES WERE FOUND. 
 
¶15. ON AUGUST 24, TWO MAOISTS WERE KILLED IN A CLASH WITH 
THE RNA IN LAMJUNG DISTRICT IN CENTRAL NEPAL.  ON AUGUST 
25, POLICE IN PARSA DISTRICT IN THE CENTRAL TERAI ARRESTED 
SIX MAOISTS ENGAGED IN EXTORTION AND SEIZED A 303 RIFLE, 
LIVE CARTRIDGES, A SOCKET BOMB AND ONE PAGER FROM THE 
DETAINEES.  THAT SAME DAY, RNA FORCES REPORTEDLY KILLED 
THREE MAOISTS IN DARCHULA DISTRICT IN FAR-WEST NEPAL.  ON 
AUGUST 26, MAOISTS SHOT AND KILLED THREE POLICEMEN, WHILE 
THREE MORE WENT MISSING IN MAHOTARI AND SARLAHI DISTRICTS 
IN THE TERAI.  THAT SAME DAY, MAOISTS SHOT AND KILLED A 
POLICE OFFICER WHO WAS CONDUCTING VEHICLE CHECKS ON THE 
MAIN HIGHWAY IN MAHOTTARI DISTRICT IN THE TERAI. 
SEPARATELY, MAOISTS KILLED THE FORMER CHAIRMAN OF LAUKASA 
VILLAGE IN RAUTAHAT DISTRICT, ALSO IN THE TERAI. 
 
¶16. ON AUGUST 27, A GROUP OF ROUGHLY 45 MAOISTS KILLED 
THREE POLICEMEN AND INJURED ONE OTHER AT A POLICE POST IN 
SIRAHA DISTRICT IN THE TERAI.  IN NEIGHBORING UDAPAYAPUR 
DISTRICT, MAOISTS SET FIRE TO A POLICE POST THAT SAME DAY. 
ALSO ON AUGUST 27, SECURITY FORCES REPORTEDLY KILLED 13 
MAOISTS AND SEIZED AN INDIAN-MANUFACTURED SLR RIFLE, TWO 
303 RIFLES, AND OTHER EXPLOSIVES AND AMMUNITION IN 
SEPARATE INCIDENTS IN DARCHULA, SURKHET AND PANCHTHAR 
DISTRICTS IN THE MID-WEST, FAR-WEST AND FAR-EAST PARTS OF 
THE COUNTRY RESPECTIVELY.  MAOISTS ALSO ABDUCTED TEN CPN- 
UML MEMBERS IN ROLPA IN MID-WEST NEPAL ON AUGUST 27 AND 
ANOTHER THREE CPN-UML MEMBERS IN MAKWAWANPUR DISTRICT 
SOUTH OF KATHMANDU. 
 
¶17. AFTER THE BREAK IN THE CEASE-FIRE, ON AUGUST 28, RNA 
FORCES AND MAOISTS CLASHED IN TWO DIFFERENT PLACES IN 
ROLPA DISTRICT, THE MAOISTS' HEARTLAND.  SECURITY FORCES 
REPORTED THAT NEARLY TWO HUNDRED MAOISTS ATTACKED AN ARMY 
PATROL, RESULTING IN THE DEATHS OF AT LEAST SIX 
INSURGENTS.  THAT SAME DAY, A SECOND POLICE POST IN SIRAHA 
DISTRICT REPORTEDLY WAS ATTACKED WHILE ANOTHER POLICE POST 
WAS OVERRUN IN MAHOTARI DISTRICT.  ON AUGUST 29, 
INSURGENTS HURLED SOCKET BOMBS AND SET ABLAZE THE 
ANCESTRAL HOUSE OF FINANCE MINISTER DR. PRAKASH CHANDRA 
LOHANI IN NUWAKOT DISTRICT NORTH OF KATHMANDU.  THAT SAME 
DAY ARMED MAOISTS LOOTED OVER USD 30,000 FROM A BANK IN 
CHITWAN DISTRICT IN THE TERAI. 
 
MALINOWSKI