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 000624 
 
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/RIEDEL 
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 29-APRIL 
4 
 
REFERENCE:  KATHMANDU 0140 
 
SUMMARY 
------- 
 
¶1.  Prime Minister Lokendra Bahadur Chand has said that 
progress is being achieved peace talks have still not begun 
between the Government of Nepal (GON) and the Maoists since 
the arrival in Kathmandu a week ago of the Maoist 
negotiating team.  After being underground for seven years, 
members of the Maoist negotiation team, headed by Dr. 
Baburam Bhattarai, wasted no time in exploiting the 
extensive media coverage of their surfacing, including 
sharing a platform with Prime Minister Chand, and addressing 
a mass gathering in Kathmandu.  Bhattarai said there would 
be no compromise on the Maoist demands of a constituent 
assembly, interim government and round-table conference. 
The Maoist ideologue asserted that his party had enough 
strength to overthrow the government at any time, and warned 
of serious consequences if the peace talks fail.  Bhattarai 
again criticized the GON for not forming its negotiating 
team or creating the right environment for peace talks. 
However, while professing to be ready to sit at any time for 
peace talks, the Maoists have insisted on new conditions 
that must be met before they will participate even in 
preliminary "goodwill talks."  The Maoist negotiating team 
kept a busy schedule all week, meeting with leaders of the 
major political parties, but their contradictory rhetoric 
throughout the week caused many to question whether the 
Maoists truly know what they want.  For their part, 
representatives of the GON have been low-key this week while 
Bhattarai monopolizes the press.  Prime Minister Chand 
allegedly has delayed the filing of cases against the 
Maoists arrested for the murders of Krishna Mohan Shrestha, 
Inspector General of the Armed Police Force, his wife and 
bodyguard (Reftel).  Accusations of code of conduct 
violations continued, with the insurgents' alleged extortion 
attempts and physical violence, and arrests by security 
personnel of Maoist cadres. 
 
TALKS STILL NOT UNDERWAY 
------------------------ 
 
¶2.  Despite the arrival a week ago of the Maoist negotiating 
team, peace talks have still not begun.  Starting dates of 
April 1 and April 3, given by Narayan Singh Pun, government- 
appointed peace talks coordinator, were canceled because the 
Maoists allegedly were too busy.  Pun reportedly has 
proposed a new date of April 7 for "goodwill talks."  The 
Maoists, who have claimed publicly that they are ready to 
sit down at any time to begin talks, have insisted on new 
preconditions before they will consider attending any talks. 
Krishan Bahadur Mahara, member of the Maoist negotiating 
team, said talks could now begin only when the GON releases 
the Maoists' five Central Committee members currently in 
prison, and withdraws the cases filed by the GON in Patan 
Appellate Court against Prachanda and Bhattarai. 
 
BHATTARAI'S MEDIA CAMPAIGN 
-------------------------- 
 
¶3.  Dr. Baburam Bhattarai and his negotiating team members, 
Ram Bahadur Thapa(alias Badal), Krishna Bahadur Mahara, Dev 
Gurung, and Matrika Prasad Yadav, have taken full advantage 
of the media coverage of their arrival, granting numerous 
interviews with foreign and local media to reiterate the 
Maoist demands of a round-table conference, interim 
government, and constituent assembly.  The Maoist ideologue 
said there would be no compromise from the insurgents on 
these issues.  Bhattarai and his team also addressed a 
public gathering in Kathmandu on April 3, attended by an 
estimated twenty thousand people, many of whom apparently 
attended out of curiosity to see and hear the elusive Maoist 
leaders.  Despite the concessions made by the GON to the 
insurgents, Bhattarai told the crowd that the GON has failed 
to create a favorable environment for successful peace 
talks, and warned of serious consequences if the talks 
failed again.  Badal, who also spoke at the gathering, 
proclaimed that the violence committed by the Maoists was a 
positive thing done in the name of oppressed people, and 
said they were willing to die to create a "new Nepal." 
Badal threatened to return to the jungle and continue the 
"People's War" if the GON does not listen to the insurgents 
or take the peace talks seriously. 
 
MAOIST PARLEYS WITH POLITICAL PARTIES 
------------------------------------- 
 
¶4.  Bhattarai and his team wasted no time in courting the 
major political parties.  They began meetings within a day 
after their arrival, including sharing a platform with the 
Prime Minister at a Reporter's Club function on March 31. 
The Prime Minister reportedly was unaware that Bhattarai had 
been invited also, but nonetheless posed for pictures with 
the Maoist leader.  Bhattarai held meetings with Girija 
Prasad Koirala, President of Nepali Congress (NC), and 
Madhav Kumar Nepal, General Secretary of the Communist Party 
of Nepal-United Marxist Leninist (CPN-UML) to gain support 
for his party's ideas, and to explain the need for a 
constituent assembly to replace the present constitution, 
which he publicly declared was dead.  Bhattarai said he and 
his team would try to arrange meetings also with foreign 
missions. 
 
¶5.  Despite efforts to win the support of the major 
political parties, several Maoist leaders have spent time 
condemning them.  Matrika Yadav, member of the Maoist 
negotiating team, labeled the Royal Palace, Nepali Congress 
(NC), and the Communist Party of Nepal-United Marxist 
Leninists (CPN-UML) as enemies of the Maoists.  Bhattarai 
also declared that the peace talks could only be held 
between the two parties that had armed forces, and therefore 
it would be difficult for the political parties to take 
part, as they had no power.  Bhattarai also lambasted the 
parties for causing a "constitutional deadlock" as a result 
of their power struggles. 
 
¶6.  The contradictory statements made by the insurgents have 
caused many to question whether the Maoists truly know what 
they want or if they are even serious about peace talks. 
The constant emergence of new demands contrasts with the 
claims by the insurgents that they are ready for peace talks 
to begin.  Ram S. Mahat, senior Nepali Congress (NC) 
activist and former Finance Minister, echoed the thoughts of 
many in a recent editorial when he said the GON appeared to 
be "bending over backwards to appease the Maoists," and 
getting nothing in return.  As Mahat points out, the Maoists 
tactic of raising new demands even in the middle of peace 
talks is reminiscent of the past. 
 
¶7.  Prime Minister Chand reportedly has delayed the filing 
of charges against the Maoists arrested for the brutal 
murders of Krishna Mohan Shrestha, Inspector General of the 
Armed Police Force, his wife and bodyguard (Reftel). 
According to local press reports, the delay in filing 
appears to be an attempt to avoid upsetting the peace 
process.  Ordinarily, petitions are filed two months after 
investigations are completed.  The GON has not yet given a 
decision on whether or not it will file the petition. 
 
INSURGENTS CONTINUE VIOLENCE 
---------------------------- 
 
¶8.  Maoists reportedly have continued to commit ceasefire 
violations throughout Nepal.  The insurgents have halted 
development programs being run in coordination with the 
Nepal Red Cross Society, assaulted a woman for refusing to 
donate to the insurgents, told the staff of district post 
offices not to open during the peace talks, seized land and 
goods from villagers, abducted a Village Development 
Committee (VDC) secretary, and ordered VDC offices to close. 
 
MAOISTS ARRESTED/RELEASED 
------------------------- 
 
¶9.  A Maoist leader carrying ammunition was arrested by 
security personnel, and five other Maoists were re-arrested 
shortly after their release from custody on March 30.  The 
GON released fourteen more Maoist cadres from prison.  The 
GON has said that detainees would be released in phases, 
with additional releases made after the start of peace 
talks. 
 
MALINOWSKI