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 001212 
 
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/GURNEY 
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 
NSC FOR MILLARD 
SECDEF FOR OSD/ISA LILIENFELD 
 
E.O. 12958: N/A 
TAGS: PINS PTER CASC PGOV NP
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, JUNE 21-27 
 
REFERENCE:  KATHMANDU 1143 
 
SUMMARY 
------- 
 
¶1.  The notable absence of Baburam Bhattarai, number two 
leader and head of the Maoist negotiating team, has raised 
speculation that the Maoist ideologue is once again out of 
the country.  Senior Maoist leaders continue to condemn 
alleged US "interference" in Nepal.  Uncertainty persists 
over the next round of peace talks, with no date set for the 
third round.  The National Human Rights Commission (NHRC) is 
awaiting a response from the Government of Nepal (GON) on 
the draft it submitted to ensure adherence to the ceasefire. 
Maoists held several rallies, including a massive one in 
downtown Kathmandu.  The insurgents reportedly forced 
thousands of schoolchildren to attend.  Maoists abducted 
four civilians, including a Red Cross official, beat to 
death a civilian, and seriously injured another.  In a 
separate incident, the insurgents brutally assaulted a 
schoolteacher who refused to provide "donations," and took 
control of a micro-hydro project after the managing operator 
refused the insurgents' demands for money.  Maoists 
reportedly have threatened to cut off the hands and legs of 
those who defy orders not to attend health camps conducted 
by the RNA.  The humanitarian outreach efforts by the RNA 
reportedly have been highly successful.  End summary. 
 
BHATTARAI OUT OF SIGHT 
---------------------- 
 
¶2.  Baburam Bhattarai, number two leader and head of the 
Maoist negotiating team, has not been seen publicly for 
several weeks.  The Maoist ideologue, who has dominated the 
press since coming out of hiding, has been 
uncharacteristically silent.  Peace talk facilitators 
reportedly said that they had not been in contact with the 
Maoist ideologue because he was out of Kathmandu.  There is 
speculation that Bhattarai is visiting neighboring India. 
 
MAOISTS CONTINUE ANTI-US RHETORIC 
--------------------------------- 
 
¶3.  Maoist leaders continued to condemn the United States. 
On June 25 Krishna Bahadur Mahara, politburo member and 
Maoist spokesman, decried the "increasing US interference" 
in Nepal, and declared that the USG was "meddling in the 
peace talks."  Mahara, who conceded that the possibility of 
American involvement drove the Maoists to the negotiating 
table, claimed the USG was hatching a conspiracy from behind 
the scenes to disrupt the peace talks. (Note:  The local 
press reported that during a June 18-20 visit to Nepal, 
Lieutenant General James Campbell, Pacific Commander of the 
US Army, assured Nepal of continued US financial and 
political support in its battle against the Maoists. Senior- 
level Maoists have been especially critical of the US 
military presence in Nepal.  End note.) 
 
¶4.  Ram Bahadur Thapa, alias Badal, Maoist military chief 
and negotiating team member, also criticized the USG.  On 
June 20, speaking at a Maoist rally in Kathmandu, Badal 
claimed that the United States was trying to disrupt the 
peace talks, and lambasted the inclusion of the Maoists on a 
US terrorist watch list. 
 
UNCERTAINTY LOOMS OVER PEACE NEGOTIATIONS 
----------------------------------------- 
 
¶5.  Amid public pressure for continuity in the peace process 
and charges of ceasefire violations, representatives from 
the Government of Nepal's (GON) negotiating team and the 
Maoist team still have not set a date for the next round of 
peace negotiations.  Prime Minister Thapa repeatedly has 
said the third round would happen "soon," but has not 
offered a timeframe.  On June 25 Krishna Bahadur Mahara, 
Maoist spokesman, accused the GON of delaying the 
negotiations and demanded that the GON move forward honestly 
with the peace process. 
 
¶6.  Despite the lack of a date for the third round, Prime 
Minister Thapa has outlined an agenda for the fourth round. 
Thapa said that the issue of the RNA's restriction to a 5- 
kilometer radius around its barracks would be discussed in 
the fourth round when the GON would give its official 
position on the controversial issue.   Krishna Bahadur 
Mahara, Maoist spokesman and negotiating team member, 
retorted that "there is no point in carrying on the talks" 
if the GON does not send the army back to its barracks. 
 
NHRC AWAITS RESPONSE FROM GON 
----------------------------- 
 
¶7.  The National Human Rights Commission (NHRC) has still 
not received a response to the human rights accord draft it 
presented to the Prime Minister on June 19.  The NHRC has 
criticized both the GON and the Maoists for not abiding by 
the code of conduct, and the proposal calls for closer 
monitoring of human rights violations and assurance of 
availability of medical treatment, food supplies and 
education.  The Prime Minister said he was studying the 
proposal. 
 
MAOISTS HOLD "PEACE" RALLIES; 
FORCE SCHOOLCHILDREN TO ATTEND 
------------------------------ 
 
¶8.  On June 20 the Maoists, along with the five major 
political parties, held a massive rally in Kathmandu. 
Krishna Bahadur Mahara, Maoist spokesman and negotiating 
team member, addressed the crowd and said his party wanted 
reform and permanent peace.  However, the local press 
reported that the majority of the attendees were 
schoolchildren, some younger than ten years old, who were 
forced to attend the rally.  A teacher was quoted as saying 
that the Maoists demanded the students attend the rally, 
causing schools to shut down for half of the day.  Other 
schools declared the day a holiday so that the children 
could stay at home and not be forced to attend the protest. 
 
¶9.  On June 23 Maoists staged another rally in the south 
western district of Banke that blocked a major highway.  The 
insurgents formed a human chain protesting alleged United 
States interference in Nepal, and also demanded the 
immediate withdrawal of the Royal Nepal Army (RNA).  In 
Chitwan, Maoist cadres blocked roads throughout the district 
for several hours, demanding that the GON bring peace 
negotiations to a successful conclusion.  The insurgents 
also reiterated the Maoist demands for a round-table 
conference, interim government and constituent assembly. 
 
MAOISTS IGNORE CEASEFIRE 
------------------------ 
 
¶10.  The Maoists continued to violate the ceasefire with the 
abduction of civilians.  Maoist cadres reportedly kidnapped 
the President of the Red Cross Society in Kalikot District 
and two other civilians on June 25.  Their whereabouts are 
unknown.  In Taplejung District insurgents abducted an 
employee of the transportation association on June 25 for 
remarrying and imprisoned his new wife. 
 
¶11.  In Sarlahi District Maoists dragged two civilians from 
their house on June 23 in the early morning and brutally 
beat one of them to death and seriously injured the other. 
Security forces in the area reportedly have said they will 
not remain "mute spectators," warning that the insurgents 
will face stiff action by the security forces.  Maoists in 
the region reportedly took responsibility for the murder, 
but said the incident "could be an accident."  Two young 
children were killed by a bomb in Rukum District, a Maoist 
stronghold.  The bomb reportedly was hidden by insurgents 
and exploded while the children were playing with it. 
 
¶12.  In another display of violence, on June 20 a group of 
insurgents in Dolakha severely beat a schoolteacher after he 
refused to give them money.  According to the Society of 
Maoist Displaced Teachers, a local association, Maoists have 
killed nine teachers since the declaration of the ceasefire 
and injured thirteen others.  Many teachers are refusing to 
return to schools outside district headquarters because of 
inadequate security. 
 
¶13.  Maoists in Rukum District took control of a micro-hydro 
project on June 24 after management refused to provide them 
with several thousand dollars in "donations."  Electricity 
also reportedly has been disrupted in other parts of the 
district due to the Maoists.  According to the managing 
director of the micro-hydro project, only five Village 
Development Committees (VDC) out of forty-three have access 
to electricity, and operations cannot continue without 
adequate security. 
 
MAOISTS ISSUE WARNINGS OVER HEALTH CAMPS 
---------------------------------------- 
 
¶14.  Maoists reportedly have threatened to cut off the hands 
and legs of those who defy orders not to attend health camps 
conducted by the RNA.  According to press accounts, Maoist 
cadres in the far-western regions have warned that attendees 
of the camps would have their legs and hands chopped off 
after the army leaves.  As a result of the threats, it is 
estimated that hundreds of people are being deprived of 
medical treatment out of fear of retaliation by the 
insurgents. 
 
¶15.  On June 21 seven armed Maoists reportedly were killed 
by RNA personnel in the far-western district of Jajarkot 
during an exchange of gunfire.  The insurgents reportedly 
opened fire on the convoy which was arriving to set up a 
camp for medical and other services in the region (Reftel). 
On June 26 a Maoist cadre was killed by army personnel in 
Bhojpur District after attempting to disrupt assistance to a 
school in the district. 
 
RNA OUTREACH EFFORTS BRANDED A SUCCESS 
-------------------------------------- 
 
¶16.  The humanitarian assistance provided by the Royal Nepal 
Army (RNA) has enjoyed significant success, despite 
opposition from Maoists.  According to figures published in 
the local press, over 130,000 people in rural areas have 
received some form of assistance, including medical and 
veterinary treatment, agricultural training and citizenship 
and passport services.  In addition, over forty thousand 
dollars in medicine was distributed free of charge.  The 
outreach efforts were aimed at some of the most remote 
districts of Nepal, particularly those hit hardest by the 
Maoist insurgency. 
 
¶17.  On June 24 the RNA held relief and health camps in 
Jumla District, benefiting over 1400 people, and on June 23 
RNA soldiers organized a health camp in Dailekh District, 
providing medical examinations and distributing medicines, 
and assistance with such administrative matters as 
passports.  Maoist cadres reportedly also received treatment 
at the camp. 
 
MALINOWSKI