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

UNCLAS SECTION 01 OF 05 KATHMANDU 000885 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT: MAY 6 - 12, 2003 
 
 
-  STATE FOR NP, AC, PM 
-  STATE FOR IN/R/MR 
-  STATE FOR SA/INS, PM/CBM, PM/PRO 
-  STATE FOR SA/PPD 
 
 ¶1.  POLITICAL AFFAIRS 
 
 "SECOND ROUND OF PEACE TALKS" 
 
 -- The government and Maoists made incremental progress 
 in the second round of peace talks (5/9) with the 
 former agreeing to release a few jailed rebels and even 
 limiting the Royal Nepal Army to within five kilometers 
 of their barracks.  The two sides also announced the 
 formation of a monitoring and evaluation committee to 
 oversee the implementation of the all-important code of 
 conduct, which governs behavior during peace 
 negotiations. (The Kathmandu Post, 5/10)-.. The Royal 
 Nepal Army (RNA) has expressed serious discontent over 
the government-Maoist agreement to limit the army's 
movement within five kilometers of radius from military 
barracks. (Reports, 5/12) 
 
-- "The King is playing a game to divide Nepali 
Congress and the UML, said NC President Girija Prasad 
Koirala to the same journalists to whom the King had 
met a few days ago."  (centrist "Kantipur," 5/12) 
 
-- "Maoist leader Dr. Baburam Bhattarai has said that 
the real talks have not started yet.  He said that the 
"actual talks" would begin only when they entered into 
political agenda." (independent "Nepal Samacharpatra," 
V/D, 5/12) 
 
-- Facilitators in the current peace talks are wary of 
the outcome and fear a repeat of 2001, when the talks 
ended in failure. (centrist "Kathmandu Post," E/D, 
5/11) 
 
"FIVE POLITICAL PARTIES' JOINT MOVEMENT AGAINST OCTOBER 
4 ROYAL MOVE" 
 
-- Over one hundred persons were injured when the 
fourth day of the joint agitation against political 
regression turned violent in Kathmandu (5/11) following 
a police lathi (bamboo baton) charge on the 
demonstrators.  Incidents of police lathi charge have 
also been reported from other places of the country. 
(Major newspapers, 5/12) 
 
-- "The King should not prolong [the stalemate]-. 
Otherwise, the Federation of Nepalese Journalists (FNJ) 
will also come out in the streets in support of the 
movement, said the President of the FNJ." (leftist 
"Sanghu," V/W, 5/12) 
 
-- The demonstrators burnt the effigies of "regression" 
across the country on the third day of the movement. 
(Media reports, 5/11) 
 
-- Army personnel swooped down on the peaceful 
demonstrations held in Nepalgunj (5/9) and arrested 
several activists of various political parties. (Major 
newspapers, 5/11) 
 
-- In a separate campaign, Nepali Congress (Democratic) 
launched its nation-wide protest campaign against the 
royal take over, demanding reinstatement of the Sher 
Bahadur Deuba government that was sacked by the king on 
October 4. (Media reports, 5/10) 
 
-- On the second day of the first phase of joint 
movement five political parties took out (5/9) joint 
rallies waving black flags across the country. (Media 
reports, 5/10) 
 
-- Agitating political parties staged a 20-minute long 
silent demonstration in the capital and across the 
nation. (Media reports, 5/9) 
 
-- UML General Secretary Madhav Kumar Nepal said (5/6) 
that Maoist leader Dr. Baburam Bhattarai "is anxious to 
get a telephone call inviting him to be the Prime 
Minister." (centrist "Spacetime Dainik," V/D, 5/7) 
 
-- The functioning of the Premier Chand's cabinet gives 
it poor public support to withstand the organized 
onslaught of the parties. (centrist "Telegraph," E/W, 
5/7) 
-- The Royal Palace has put UML General Secretary 
Madhav Kumar Nepal on its black list after he severely 
criticized the King and the crown prince in the May 4 
mass meeting.  Nepali President Girija Prasad Koirala 
was successful in stimulating Nepal against the monarch 
and possibly preventing him from becoming the next 
Prime Minister.  The Palace was, otherwise, considering 
appointing Nepal to the post of the Prime Minister. 
(centrist "Ghatana Ra Bichar," V/W, 5/7) 
 
-- The Chand government has started to ask for help 
from foreign powers, especially America, to abort the 
movement launched by five parliamentary parties. 
(leftist "City Times," V/D, 5/6) 
-- The leaders who encouraged the King to dissolve the 
elected government have begun to express their 
frustration not through the movement but through 
"imaginary movement."  Nobody is ready to support the 
movement at a time when the talks are underway to 
resolve the Maoist problem.  People's negative reaction 
to the May 4 mass meeting has made it clear that they 
will run away from the scene rather than the King will. 
(centrist "Punarjagaran," V/W, 5/6) 
 
-- "Kathmandu valley denizens have not supported the 
movement.  People have punished Nepali Congress and the 
UML; they don't trust the five parties." (pro-Royal 
Palace "Gorkha Express," V/W, 5/6) 
 
-- "There's an increased bitterness between the 
government and political parties.  There is once again 
a race of strength show in the country." (leftist "Yug 
Sambad," V/W, 5/6) 
 
"KING MEETS JOURNALISTS AND EXPRESSES UNHAPPINESS WITH 
POLITICAL PARTIES" 
 
-- King Gyanendra went on an offensive one day before 
five political parties launched a movement against him 
Thursday for what they call his regressive actions 
since October 4 last year.  He met journalists 
Wednesday and put forth his views on events leading to 
the present stalemate between him and the opposition 
parties.  The King said he will hand over executive 
power to that party or power that can give the country 
permanent peace.  "First peace should be restored; the 
country will be stable only after the restoration of 
peace.  Politics will be meaningless without the 
restoration of peace.  My first priority is the 
restoration of peace in the country.  Efforts have been 
initiated in this direction.  In the future, my wish is 
to hand over executive authority to representatives of 
that power and party that can give permanent peace." 
 
"Even now I have given my executive power to Prime 
Minister Lokendra Bahadur Chand.  This demonstrates and 
it should be understood the King is committed to 
constitutional monarchy and multiparty system.  There 
should be such discipline in political parties and not 
only with the King and people," the King told the 
journalists.  The King said he did not suspend the 
constitution or hand over executive powers to others 
after the dismissal of Prime Minister Sher Bahadur 
Deuba on October 4 last year.  "If the King wanted to 
snatch executive powers, he could have suspended the 
constitution or given executive authority to somebody. 
But he did not do this and kept executive powers to 
himself while asking representatives of parliamentary 
parties to recommend names for a prime minister," the 
King said. (Compiled from Nepalnews.com and others, 
5/8) 
 
-- Five major political parties criticized the 
monarch's concerns. (Major newspapers, 5/9) 
 
"Analyzing the King's message to the editors of major 
dailies, political parties have concluded that the King 
is becoming very weak." (centrist "Deshantar," V/D, 
5/11) 
 
-- "The Royal Palace is preparing to announce for 
elections." (leftist "Sanghu," V/W, 5/12) 
 
¶2.  U.S.-NEPAL 
 
"U.S. AMBASSADOR'S INTERVIEW ON NEPAL TELEVISION" 
 
-- U.S. Ambassador Michael Malinowski said that as good 
neighbor of Nepal, the U.S. always wanted to see 
democracy, multiparty system, constitutional monarchy 
and a government that respected human rights, was 
efficient, could keep corruption down and deliver goods 
and services to its people. 
 
Ambassador Malinowski said that the United States was 
worried about the recent political happenings 
in Nepal. 
Talking to Nepal Television's popular talk show "Disha 
Nirdesh," he said that the U.S. was carefully watching 
the situation in the troubled Himalayan kingdom and it 
wished that the legal forces in the country and the 
civil society should be more cohesive in their efforts 
to bring permanent peace here.  He said the U.S. 
supported the peace talks between the government and 
the Maoists.  He expressed hope that the peace talks 
would be able to bring the insurgents into the system. 
The ambassador said it would not be in the interest of 
the Maoists to go back into the jungle.  He said the 
U.S. interest in Nepal now was greater than ever 
because of the crisis in the country.  Now the funds 
set aside for Nepal have reached $38 million, the 
highest for a single year.  He said the Maoists can get 
off the "secondary list" [State Department's recently 
announced terrorist list] if they stop violence, 
extortions and child abuse."  (Ambassador Malinowski's 
5/5 interview on Nepal Television and compiled media 
reports, 5/5-6) 
 
-- "Malinowski's interview indicates that the U.S. 
emphasizes on the establishment of human rights, 
permanent peace and democracy" (Editorial in the 
government-owned "Gorkhapatra," V/D, 5/8) 
 
-- British Ambassador to Nepal Keith Bloomfield said 
(5/6) that his country had not enlisted the Maoists in 
its international terrorist list.  The comment from the 
British envoy comes a few days after the United States 
put the Maoists in its second tier of terrorist list. 
("The Kathmandu Post," 5/7) 
 
"NEPALI CONGRESS PRESIDENT OPPOSES THE RECENT NEPAL- 
U.S. AGREEMENT ON ANTITERRORISM ASSISTANCE (ATA)" 
 
-- "Nepali Congress Party President Girija Prasad 
Koirala has claimed that the Antiterrorism Assistance 
(ATA) that Nepal signed with another country in order 
to control terrorist activities will be scrapped as 
soon as a legal government is established.  "All the 
work done by this illegal government will be declared 
illegal," he said." ("Kantipur," 5/12) 
"REACTIONS TO U.S.'S INCLUSION OF MAOISTS ON TERRORIST 
LIST" 
 
-- In his first reaction, Maoist President Prachanda 
has accused the United States of interference in 
Nepal's internal affairs.  Prachanda said, " The United 
States wants to extend its hold in Nepal, thereby 
furthering its own interests and influence on India, 
China and ultimately over whole of South Asia." 
Prachanda also urged the US to stop what he calls "all 
activities that interfere in Nepal's internal affairs." 
"At a time when peace talks are being held to end the 
insurgency, war mongering forces within and outside the 
country have increased their conspiracy and 
activities," the statement said. (Kantipuronline.com, 
5/8) 
 
-- "If the Maoists run away from the talks, they will 
have no future.  The U.S. might attack them.  If it 
attacks, then Nepal might become a puppet regime of 
America, like Afghanistan and Iraq..." (Editorial in 
centrist "Nispakshya," V/W, 5/6) 
 
-- "Many people have not been surprised with America 
putting the Maoists in its terrorist list.  In fact, 
most Nepalis consider the Maoists as terrorists.  The 
government has begun talks with them not because they 
are popular among the people or their political 
ideology is acceptable.  The main purpose of the talks 
is to disarm them and to end terrorism inflicted by 
them with the help of weapons.  The Maoists' activities 
have been full of terror and they should be called 
terrorists.  America has said what it has seen. 
There's no need to frown over." (editorial in 
"Punarjagaran," 5/6) 
 
¶3.  MAOIST ISSUES 
 
"MAOISTS MEET WITH EMBASSY OFFICIALS" 
 
-- ""America is preparing to put the Maoists in the 
main terrorist list in case the government-Maoists 
talks fail.  An U.S. Embassy representative and the 
Maoist talks team have met recently.  According to an 
embassy source, the embassy representative, in the 
meeting a few days ago made clear to the Maoists that 
America would not supp 
ort any move that undermined the 
multiparty system" ("Nepal Samacharpatra," 5/6) 
 
-- For the first time last week Chief Maoist peace 
negotiator Dr. Baburam Bhattarai and his aide, Krishna 
Bahadur Mahara met with an official of the American 
Embassy, an official source said.  A First Secretary of 
the Embassy met with the rebels at the Embassy.  The 
diplomat raised the issue of the murders of two Nepali 
security guards at the Embassy last year by the rebels, 
attacks on U.S. interests and the importance of a 
peaceful political movement at the business-like 
meeting, a source said. (Nepalnews.com, 5/6) 
 
-- "The U.S. has expressed the commitment that it would 
not support or do anything that devaluates Nepal's 
multiparty democracy.  A source has said that a First 
Secretary of the U.S. Embassy expressed such commitment 
 
SIPDIS 
a few days ago in a meeting with Maoist talks team 
coordinator Dr. Baburam Bhattarai and two other 
members." (pro-India "Annapurna Times," V/D, 5/6) 
 
"MAOIST ACTIVITIES" 
 
-- After the second round of talks between the Maoists 
and the government, the former has set up a contact 
office in Kathmandu. (leftist "Prakash," V/W, 5/12) 
 
-- A report compiled by district security committees 
reveals widespread and unabated Maoist violation of the 
code - extortion, holding of mass meeting with arms and 
abduction - across the country. ("The Himalayan Times," 
5/11) 
 
-- Dr. Baburam Bhattarai said the King, army [Royal 
Nepal Army] and America were the hurdles in the peace 
talks. ("Nepal Samacharpatra," 5/8) 
 
-- Maoist militias were alleged to have physically 
tortured five civilians after taking them under control 
and leading to Maoist hideout in connection with the 
murder of a teacher about three weeks ago. ("The 
Kathmandu Post," 5/7) 
 
-- To raise people's opinion in favor of the Maoists' 
demand of the roundtable meeting, interim government 
and constituent assembly for a foregoing political 
solution, the Maoists' Special Central Command has 
begun "Ring March Campaign 2060" in the districts 
nearby the Kathmandu Valley. (Maoist-mouthpiece 
"Janadesh, V/W, 5/6) 
 
-- A Maoist guerilla woman, who was shot by the Royal 
Nepal Army in Okhaldhunga district during the 
ceasefire, died in Kathmandu's Teaching Hospital.  A 
huge rally took a round with her body in the capital 
before cremation. ("Janadesh," 5/6) 
 
-- The Maoists have intensified military recruitment 
and training.  They have also extorted people... The 
future political course will be made clear by the Royal 
Palace's decision. (centrist "Samata," V/W, 5/6) 
 
¶4.  BUSINESS/ECONOMY 
 
-- The World Bank has agreed to provide US $ 5 million 
loan in support of the government policy of providing 
an incentive grant to communities taking over 
management of public schools. ("The Kathmandu Post" and 
"Kantipur," 5/11) 
-- The export of garments to the U.S. markets, which 
absorbs around 80 per cent of the total garments 
exported from Nepal, has increased by a whooping 111 
per cent in the month of April as compared to the 
exports during the corresponding month last year. ("The 
Kathmandu Post," 5/7) 
 
-- According to the South Asia Network of Economic 
Institute, World Bank, there is an illegal trade worth 
over 30 billion rupees [384 million dollars] between 
Nepal and India because of the free border and weak 
custom network. ("Kantipur," 5/7) 
¶5.  HEALTH/SARS 
-- The government decided (5/6) to evacuate all Nepali 
citizens studying in different Chinese provinces and 
bring them back home at the earliest. (Media reports, 
5/7) 
 
¶6.  OTHERS 
 
-- Strong winds and blizzards sweeping the central and 
eastern parts of the country have affected the Everest 
region, preventing dozens of climbers from making it to 
the top of the world. ("The Kathmandu Post," 5/7) 
 
-- The government has withdrawn vehicle facilities for 
former prime ministers and home ministers.  It has also 
called back the security personnel assigned to them. 
(Media reports, 
5/7) 
 
-- There are 11 professional criminal gangs involved in 
threatening, manhandling and killing people on 
contracts in the Kathmandu Valley, say the police. 
("The Kathmandu Post," 5/6) 
 
-- An U.S.-based Nepali youth organization, Nepal 
Democratic Youth Council (NDYC), has welcomed the joint 
movement launched by five political parties. ("The 
Kathmandu Post," 5/6) 
 
-- The government has welcomed the announcement of the 
conclusion of the U.S.-led war in Iraq. ("The Himalayan 
Times," 5/6) 
 
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