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

UNCLAS SECTION 01 OF 04 KATHMANDU 002484 
 
SIPDIS 
 
STATE FOR SA/INS AND DS/IP/NEA 
STATE ALSO PLEASE PASS USAID/DCHA/OFDA 
USAID FOR ANE/AA GORDON WEST AND JIM BEVER 
MANILA FOR USAID/DCHA/OFDA 
LONDON FOR POL/REIDEL 
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: NEPAL:  UPDATE ON MAOIST ACTIVITIES, DEC 21-DEC 27 
 
 
SUMMARY 
------- 
¶1.   The Centre For Economic and Social Development released 
a study on December 24 that showed an overwhelming majority 
of Nepalis, particularly those in Maoist infested areas, 
support a multi-party democracy.  The local press reported 
that India has tightened security along its northern borders 
following reports of Maoists entering the area, while the 
Indian Ambassador claimed to the press that two Indian 
terrorist groups have been crossing the border to train in 
camps located in Nepal.  Amnesty International has accused 
the Royal Nepal Army (RNA) of intimidating two victims into 
recanting their allegations of rape by top army officials. 
The RNA is facing increasing pressure from the media and 
human rights organizations for alleged human rights abuses. 
Skepticism surrounds the proposed peace talks between the 
government and Maoists as both sides demand formal peace 
proposals.  Maoist violence continued, with the killings of 
three policemen, a soldier, and a schoolteacher, and a 
December 26 bomb blast in downtown Kathmandu.  The 
insurgents also abducted, but later released, unharmed, 45 
schoolchildren; kidnapped a local development officer; 
destroyed a police post; and increased extortion demands. 
Besides a one-day general strike in the western region that 
disrupted business, education and transportation, the 
Maoists have also called a strike December 29-30 in the 
Narayani and Bagmati zones, which includes the Kathmandu 
Valley.  Another bandh has been declared for January 3 in 
the southeastern city of Biratnagar to disrupt a visit to 
that area by the King. 
 
NEPALIS FAVOR MULTI-PARTY DEMOCRACY 
----------------------------------- 
 
¶2.  A survey conducted by the Centre For Economic and Social 
Development (CESOD), a Kathmandu based non-governmental 
organization, released December 24, shows that over 73 
percent of Nepalis support a multi-party democracy.  CESOD 
conducted its research over a six-month period, in the 
districts of Surkhet, Bardia, Sindhuli, Rautahat, Morang, 
and Dhankuta, all of which are infested with Maoists.  The 
report also stated that villagers favor a democracy that is 
free from corruption and want the current political crisis 
to be solved through dialogue. 
 
INDIA PUTS PARAMILITARY FORCES ALONG BORDER 
------------------------------------------- 
 
¶3. According to the local press, India has placed 
paramilitary forces along its borders, following reports 
that Maoist rebels were crossing into Northern India.  Shyam 
Saran, India's Ambassador to Nepal, publicly denied that 
India harbors Nepali Maoists, instead blaming the open 
border.  Saran also said that members of two Indian 
terrorist groups, the Maoist Coordination Committee (MCC) 
and the Peoples War Group (PWG) cross the border into Nepal 
to enter training camps.  Saran asserted that India will not 
take part in any joint military action with Nepal against 
the Maoists, nor play any role in mediating talks between 
the Government of Nepal (GON) and the Maoists. 
 
RNA UNDER FIRE, HOLDS PRESS CONFERENCE 
-------------------------------------- 
 
¶4.  Following publication of its December 19 report on 
Nepal, Amnesty International (AI) accused the Royal Nepal 
Army (RNA) of pressuring two victims highlighted in the 
report to recant their allegations of rape against army 
officials.  The AI statement called upon the GON to ensure 
the protection and safety of all victims of human rights 
abuses.  The National Human Rights Commission (NHRC) has 
issued a statement castigating the GON for failing to 
acknowledge the AI report and demanding that the GON 
investigate human rights abuses and punish violators 
accordingly.  NHRC announced that it will send teams of 
observers to the western districts of Banke and Baridya to 
monitor the situations there.  Meanwhile, the Non Government 
Federation and the Association of International NGOs have 
joined in expressing their "grave concern" over  human 
rights abuses by both the Maoists and the government, citing 
the escalation of rape, torture, kidnappings and 
disappearances of civilians.  The Human Rights and Peace 
Society denounced the November 27 killings by the RNA of 
five young men and boys in Nuwakot as a human rights 
violation. 
 
¶5.  Under increasing pressure from the media and human 
rights organizations, the RNA held a press conference 
December 26 to defend its human rights record and give its 
version of two well publicized cases, the killing of five 
youths in the Nuwakot district as well as the allegations of 
rape by top Army officials. 
 
¶6.  The Royal Nepal Army (RNA) issued a statement denying 
the accusations of rape.  Gurung said the reports of rape 
were baseless and denied that the victims were forced to 
recant their stories.  He showed video footage of the two 
women involved and claimed that they appeared relaxed and 
not under any pressure to recant their stories.  Preliminary 
results of the RNA investigation into the Nuwakot killings 
indicate that the five youths may have been innocent, Gurung 
acknowledged.  Should the final investigation support those 
initial findings, appropriate action against the soldiers 
involved will be taken, he pledged. 
 
MAOISTS DECLARE BANDHS 
---------------------- 
 
¶7.  Maoists have declared a two-day general strike (bandh) 
for December 29 and 30 in the Bagmati and Narayani zones, to 
include the Kathmandu Valley.  Taxi and bus services will be 
shut down, and businesses and schools closed.  In the past, 
vehicles that break the strike have been attacked.  The 
Maoists have also declared a bandh in southeastern Nepal, to 
include the Biratnagar area, on January 3, which coincides 
with a visit by the King to that region. 
 
¶8.  Maoists called a one-day bandh on December 25 in the 
western region that affected businesses, schools and 
transportation.  Districts affected by the bandh included 
Baglung, Rupandehi, and Nawalparasi. Major businesses, 
schools and industries closed, and highways were empty. 
 
PM CHAND WANTS FORMAL PROPOSAL FROM MAOISTS 
------------------------------------------- 
 
¶9.  Prime Minister Lokendra Bahadur Chand told the press he 
is still awaiting a formal peace proposal from the Maoists 
in order to move ahead with peace talks.  Chand said the GON 
would take a "positive stance" if the Maoists made an 
"authoritative and credible" offer of a peace proposal. 
Devi Prasad Ojha, Minister for Education and Sports, 
however, told the press that he expected the talks to be 
held by the second week of February, but refused to 
elaborate. 
 
MAOISTS SET CONDITIONS FOR TALKS 
-------------------------------- 
 
¶10.  The Maoists, in turn, have demanded that the government 
announce a formal peace offer before beginning dialogue. 
Maoist leader Prachanda issued a statement demanding that 
the GON comply with four conditions before dialogue can take 
place: that the terrorist designation by the government be 
lifted; that it stop killing innocent people; that it 
disclose the location of detainees; and that it provide a 
clear agenda of the issues that need to be discussed. 
According to Narayan Singh Pun, Minister for Physical 
Planning and Works, the GON is considering whether to lift 
the terrorist designation, but will not reach a decision 
until it has consulted with all major political parties. 
Party leaders quoted in the local press expressed skepticism 
regarding the Maoists' sincerity in pushing for talks. 
 
MAOISTS TRY NEW STRATEGY IN GORKHA 
---------------------------------- 
 
¶11.  In the historic western district of Gorkha, Maoists are 
trying to garner support from the villagers, according to 
local press reports.  The Maoists reportedly have changed 
their tactics from using violence to handing out food and 
treats to the villagers.  At the same time, however, the 
Maoists have warned that those who spy against them will be 
killed.  Villagers, some willingly and some out of fear, 
provide food and shelter to the insurgents, making it more 
difficult for the security forces to take action against 
them. 
 
AMID PEACE TALKS, MAOIST VIOLENCE CONTINUES 
------------------------------------------- 
 
¶12.  A bomb exploded in downtown Kathmandu on December 26, 
injuring seven people and damaging two buildings.  On 
December 20, a group of Maoists brutally killed a 
schoolteacher in central Kavre district, dragging him from 
his bed, stabbing him with khukuris and iron rods, and 
pouring acid in his wounds.  On December 21, Maoist rebels 
kidnapped a local development officer in the Ridibazar 
district.  On December 22, Maoists also abducted 45 students 
from a secondary school in the Surkhet district.  The 
students reportedly were released unharmed. 
 
¶13. On December 23, a group of Maoists bombed the Mahuwari 
Police Post in Rupandehi district, completely destroying the 
post and all of the documents inside.  Maoists shot and 
killed a National Intelligence Department (NID) inspector at 
his home in the Kathmandu Valley on December 24.  Another 
officer was killed in Kapilvastu district on December 25 
when Maoist rebels opened fire on him as he was conducting 
checks on a passenger bus.  On that same day, another 
officer was killed in Tikapur, when he was called from his 
house by two Maoists, who then shot him.  Two other 
policemen in the Syangja district were injured when a 
landmine was detonated by Maoists.  On December 22, Maoist 
rebels set a Chief District Officer's house on fire after 
forcing the family members to vacate it.  In another 
incident, a Royal Nepalese Army soldier was killed on 
December 22 in an ambush by Maoists in the eastern district 
of Panchthaar. 
 
¶14.  Maoists have ordered residents in the district of 
Surkhet to leave by early January, hinting at an attack on 
the district headquarters.  Villagers have been asked to 
vacate their houses and shops. 
 
PLEA TO MAOISTS TO STOP KILLING JOURNALISTS 
------------------------------------------- 
 
¶15.  Members of Reporters Without Borders (RSF) issued a 
plea to Maoists to stop killing members of the media after 
the kidnap and murder of a journalist who had been working 
for a pro-Maoist newspaper before surrendering to the 
security forces. 
 
MAOISTS EXTORT MORE MONEY 
------------------------- 
 
¶16.  Maoists have launched a massive "household tax" 
campaign, demanding money from households in the western and 
southern parts of northern Bhojpur district.  The insurgents 
reportedly assess the tax on a sliding scale,  according to 
the financial status of the families.   Maoists have also 
intensified their collection of money from professionals in 
the Parbat and Ramechhap districts, demanding donations from 
teachers, government employees, and merchants. 
 
¶17.  Maoists have issued a 35-day ultimatum for all non- 
government organizations, including educational 
institutions, in the far-western district of Doti to 
register with them or face shutdowns.  The Maoists have 
warned that those organizations who fail to register with 
the "people's government" will be forcibly closed. 
 
MALINOWSKI