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 000358 
 
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/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: UPDATE ON NEPAL'S MAOIST INSURGENCY, FEB 22-28 
 
REFERENCE:  (A) KATHMANDU 0152 
            (B) KATHMANDU 0311 
 
SUMMARY 
------- 
 
¶1.  Narayan Singh Pun, Minister of Physical Planning and 
Works and government-appointed peace talks coordinator, said 
the peace process will take time but can be accomplished 
without the participation of other political parties if 
necessary.  Pun also said he expects to hold talks with the 
Maoists within the next few weeks.  The National Human 
Rights Commission (NHRC) has called for information about 
the peace process to be shared with political parties and 
the people of Nepal as well.  Girija Prasad Koirala, the 
President of Nepali Congress (NC), criticized the GON for 
failing to announce a code of conduct or its negotiating 
team.  Maoist leaders in town for negotiations with Pun 
continue to meet with major party leaders.  Maoist leader 
Prachanda warned that his party was ready to resume the 
armed conflict if the peace talks failed and criticized the 
Government of Nepal (GON) for violating the ceasefire by 
allowing security operations, including arrests of Maoist 
cadres, to continue.  Colonel Deepak Gurung, the Royal Nepal 
Army (RNA) spokesman, says the army welcomes the ceasefire, 
but is also prepared to resume fighting if the peace talks 
fail. 
 
¶2.  Summary Continued.  The Maoists continue to hold mass 
political meetings in the countryside.  Maoist prisoners in 
a Kathmandu jail, who have already staged protests and sit- 
ins, have threatened to go on a hunger strike if the GON 
does not meet demands for the release of imprisoned cadres. 
Maoists reportedly have issued a death threat to a 
journalist who wrote an unfavorable article about the 
insurgents, and confined another to his village.  A man 
accused of stealing was shot and killed by the Maoists on 
February 22 in Dang District.  Investigations into the 
January 26 murders of Krishna Mohan Shrestha, Inspector 
General of the Armed Police Force, his wife and bodyguard 
(Ref A), continue.  Maoists reportedly have admitted 
mistakenly killing two children and seriously injuring 
another at a primary school in northwestern Baglung District 
on February 18 (Ref B), but denied other reports that they 
are responsible for increased incidents of looting.  End 
Summary. 
 
PEACE PROCESS WILL TAKE TIME; 
GON READY TO MOVE FORWARD ON ITS OWN 
------------------------------------ 
 
¶3.  Narayan Singh Pun, Minister of Physical Planning and 
Works and government-appointed peace talks coordinator, said 
on February 26 that peace talks were an ongoing, complex 
process, which will take time to develop.  Minister Pun told 
reporters that peace talks between the GON and the Maoists, 
which will require much patience and skill, might begin 
toward the end of March.  Pun was also quoted in the local 
press as saying he communicates by telephone with the 
Maoists, including Dr. Baburam Bhattarai, the leader of the 
Maoist negotiating team, as often as five times a day. 
 
¶4.  Minister Pun reportedly said that the GON would first 
hold talks with the Maoists, and then invite political 
parties and representatives of civil society to participate, 
but that peace was possible without participation from the 
other political parties.  Speaking at the Reporters' Club on 
February 26, he asserted that a "thousand things" had 
already been achieved, and the GON's patience was wearing 
thin with criticism by the political parties.  According to 
Pun, the GON was committed to fulfilling the interests of 
the people "on its own" if necessary. 
 
DEMAND FOR CODE OF CONDUCT DETAILS 
---------------------------------- 
¶5.  The National Human Rights Commission (NHRC) criticized 
both the GON and the Maoists for failing to make details of 
the ceasefire and code of conduct public.  Nayan Bahadur 
Khatri, Chairman of the NHRC, said that details of the peace 
process should not be limited only to the GON and the 
Maoists, but should include other political parties and the 
people of Nepal.  According to press reports, Minister 
Narayan Singh Pun, government-appointed coordinator for the 
peace talks, said on February 21 that both sides had 
exchanged drafts for a code of conduct, but refused to give 
details, saying they would be made public soon.   According 
to press accounts, Minister Pun met informally with Krishna 
Bahadur Mahara, a member of the Maoist negotiating team, on 
February 27 to finalize the code of conduct, but there were 
disagreements over the re-deployment of the army. 
 
¶6.  The NHRC also denounced the GON and the Maoists for 
failing to respond to the draft it submitted to both sides 
outlining its own proposed code of conduct.  The draft had 
called for a revocation of the Terrorist and Disruptive 
Activities Act, an immediate end to violence, and a halt to 
the use of weapons by the insurgents and security personnel. 
 
¶7.  Girija Prasad Koirala, the President of Nepali Congress 
(NC), said his party hoped the ceasefire would turn into 
lasting peace, but questioned the seriousness of the GON. 
Koirala, speaking at a press conference on February 27, 
accused the GON of creating further confusion by its refusal 
to make public a code of conduct, and criticized its failure 
to announce a negotiating team.  Koirala said the most 
desirable solution to the current problem should come from 
the framework of the current constitution, and should not 
merely be an agreement between only two sides.  Koirala also 
told the audience of foreign and national news media that 
his party was not willing to recognize the government under 
Prime Minister Lokendra Bahadur Chand, nor the Royal Act 
that dissolved the Deuba Government last year. 
 
PRACHANDA READY TO FIGHT TO THE END 
----------------------------------- 
 
¶8.  Maoist leader Prachanda issued a statement on February 
25, declaring that the Maoists would "fight to the end" if 
the GON did not create a conducive environment for peace 
talks.  Prachanda accused the GON of violating the ceasefire 
not only by continuing to arrest his cadres and carrying out 
search and patrol activities, but also by allegedly 
intensifying such operations.  Prachanda criticized the GON 
for its delay in preparing a negotiating team and for its 
failure to take any "concrete or positive steps." 
 
¶9.  Prachanda has continued to contact members of political 
parties, urging them to be involved with the peace process. 
Girija Prasad Koirala, President of Nepali Congress (NC), 
reportedly was contacted by Prachanda on February 25. 
Koirala said the Maoist leader told him to play a key role 
in the talks and reiterated that there had been no secret 
agreements made prior to the announcement of the ceasefire. 
A diplomatic colleague also reports that Maoists have 
approached his embassy, asking it to arrange a meeting for 
them with a number of European missions. 
 
¶10.  Krishna Bahadur Mahara and Dinanath Sharma, members of 
the Maoist negotiating team for the peace talks, met with 
former Prime Minister Sher Bahadur Deuba.  According to 
Deuba, Mahara and Sharma asked for help in generating public 
support.  Deuba told the local press that his party would 
neither help the Maoists nor fight against them, but 
expressed concern over their sincerity and the possibility 
that the insurgents were using the ceasefire to rebuild 
their forces (Note:  It was under Deuba's government that 
the Maoists walked out of the third round of peace talks 
last year and launched surprise attacks on army 
installations.  End Note.) 
 
RNA READY TO BATTLE IF TALKS FAIL 
--------------------------------- 
 
¶11.  Colonel Deepak Gurung, spokesman for the Royal Nepal 
Army (RNA), said the RNA is committed to and will abide by 
the ceasefire, but was prepared to fight a "decisive war" 
with Maoist insurgents if necessary.  Gurung, speaking on 
February 25 at the RNA's first press conference since the 
ceasefire was announced, said the army welcomed the 
ceasefire, but was also prepared if the peace talks failed. 
Gurung said the RNA would not spare anybody if they are 
attacked, and expressed confidence that the insurgents did 
not have the capabilities to win against the RNA.  He also 
said the army would not return to the barracks until peace 
is completely restored. 
 
¶12.  Gurung described some of the ongoing projects the RNA 
is currently involved in, including the reconstruction of 
buildings, school and health facilities that were destroyed 
during the insurgency.  According to Gurung, the RNA is also 
running health camps in the mid-western regions, which 
provide medical treatment to Maoists as well as civilians. 
The army's barracks in Dang, Achham and Arghakhanchi 
Districts, which were destroyed by Maoist attacks, have also 
been rebuilt. 
 
PRISONERS THREATEN HUNGER STRIKE 
-------------------------------- 
 
¶13.  Prisoners in Nakkhu Jail in Kathmandu have threatened 
on February 25 to go on a hunger strike if the GON does not 
meet the Maoists' demands for the release of its imprisoned 
cadres.  The prisoners, who are already staging sit-ins and 
protests within the jails, said they would begin hunger 
strikes if their list of demands, sent to Prime Minister 
Lokendra Bahadur Chand through facilitators, was not taken 
seriously.  The memorandum insists the GON create a 
conducive environment for peace talks, release information 
on the whereabouts of missing Maoist cadres, and stop 
propaganda against the Maoists.  (Note: Government officials 
have explained publicly that Maoist cadres who have been 
arrested for serious crimes cannot be released without 
following formal legal procedures.  End Note.) 
 
¶14.  In Jhapa District, police allegedly rearrested nine 
suspected Maoists immediately after they were released from 
the Jhapa Jail.  According to press reports, there are forty- 
two suspected Maoists still imprisoned in Jhapa. 
 
MAOIST THREATEN JOURNALIST 
-------------------------- 
 
¶15.  Maoists reportedly have issued a death threat to a 
journalist who wrote an unfavorable article about the 
insurgents.  Rabin Prasad Thapalia, a journalist with the 
weekly Ruprekha, blamed the insurgents for creating widows 
and orphans, and preventing people from celebrating 
religious festivals.  The Maoists, in turn, threatened to 
"terminate" Thapalia if he did not retract his story and 
publicly apologize.  According to Thapalia, he printed an 
apology in the paper, but the insurgents said it was 
inadequate.  The insurgents allegedly have warned Thapalia's 
family that if he returns to his village in central Nuwakot 
District he will be killed. 
 
¶16.  According to reports from Accham District, Maoists have 
confined a journalist to his village in Darna.  Deepak 
Bahadur Thapa has been restricted to his village and cannot 
leave without permission from the Maoists. No reason was 
given for his confinement. 
¶17.  The Reporters' Club Nepal, a local organization of 
journalists, issued a press release on February 26 
denouncing the Maoists for their treatment of journalists. 
Rishi Dhamala, President of the organization, said 
journalists should not be threatened or punished for what 
they report, and that both the Maoists and the GON should 
respect the role the press plays in the peace process. 
 
IG KILLED BY MAOIST SPECIAL FORCES 
---------------------------------- 
 
¶18.  A report submitted on February 21 by the team 
investigating the murders of Krishna Mohan Shrestha, 
Inspector General of the Armed Police Force, his wife and 
bodyguard (Ref A), states that a special task force of 
Maoists was responsible for the murder.  The report states 
that seven people were involved with the planning of the 
murder, while four directly carried it out.  The insurgents 
allegedly had planned the murder for some time, monitoring 
Shrestha's activities and taking note of his daily routine. 
 
MAOISTS ADMIT KILLING; PLEDGE HELP 
---------------------------------- 
 
¶19.  Maoists reportedly have admitted to mistakenly killing 
two children and seriously injuring another at a primary 
school in northwestern Baglung District on February 18 (Ref 
B).  The insurgents have pledged to help the injured child 
with medical treatment and also gave twenty-six dollars to 
each of the guardians of the deceased children.  Villagers 
said, however, that the insurgents refused to give the 
corpses to the families and instead buried them near a local 
stream.  Villagers later helped to dig up the children's 
bodies so that the families could perform a proper burial. 
 
¶20.  Maoists in Parbat District issued a statement on 
February 22 denying that they are responsible for looting 
and extortion in the district.   The insurgents have also 
warned criminals not to call themselves Maoists.  Looting 
incidents reportedly have increased in Tanahun District as 
well, despite the ceasefire.  Security forces suspect that 
Maoists are involved.  Maoists are also suspected in the 
February 22 shooting death of a man in Dang District, who 
they accused of stealing. 
 
WAR WITH THE PALACE? 
-------------------- 
 
¶21.  Maoists held a mass meeting in Bara District on 
February 26 where they reportedly proclaimed that the war in 
the future would be between them and the Royal Palace.  The 
insurgents said the ultimate goal is to gain control over 
the central government.  Jamin Prakash Shah, District 
Commander, and other speakers at the meeting said that the 
GON had failed to form a negotiating team because it is not 
serious about the talks. 
 
MALINOWSKI