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 001310 
 
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, JULY 4-11 
 
REFERENCE:  KATHMANDU 0860 
 
 
SUMMARY 
------- 
 
¶1.  Informal talks proposed for July 11 between Nepal 
Government and Maoist negotiators failed to materialize, 
amid continuing controversy over the terms of agreements 
allegedly reached during the second round of talks (Reftel). 
As peace talks remain stalled, senior Maoists declared that 
they are preparing for both talks and war.  Sir Jeffrey 
James, the British special envoy to Nepal, said his 
government supports peace in Nepal, but also pledged 
continued assistance to Nepal's security forces to counter 
Maoist attacks.  A former Maoist commander claims that 
Maoists are "stretched to the limit," and are using anti- 
American rhetoric as a means of securing their own refuge in 
neighboring India.  A weekly report issued on July 4 by the 
Informal Sector Service Center (INSEC), a local human rights 
organization, showed that 199 people have been abducted by 
the Maoists since the declaration of the ceasefire on 
January 29.  Amnesty International (AI) claimed that the 
Government of Nepal (GON) and the Maoists are not serious 
about the peace negotiations.  Maoist attacks on security 
personnel and civilians continue, including the severe 
beating of three civilians that killed one and injured two 
others, and the obstruction of infrastructure projects. 
According to the National Planning Commission (NPC), a 
program that aims to enhance security and development 
projects in Maoist affected districts will be expanded in 
the next fiscal year.  End Summary. 
 
PROPOSED DATE PASSES WITHOUT TALKS 
---------------------------------- 
 
¶2.  Despite attempts to bring representatives from the 
Government of Nepal (GON) and Maoist negotiating teams to 
the table on June 11, no such meeting occurred.  Padma Ratna 
Tuladhar, Maoist appointed peace talks facilitator, said on 
July 8 that the GON and the Maoists would meet informally on 
Friday, July 11.  Tuladhar, speaking at the Reporter's Club, 
said uncertainty remained over the implementation of 
agreements allegedly reached during the second round of 
negotiations (Reftel), but that both sides claimed they were 
committed to peace.  He also suggested that the King 
intervene to initiate the third round, and allow Maoist 
leaders to meet with him. 
 
¶3.  Representatives from the GON's and Maoists' negotiation 
teams, however, reportedly did meet on July 3 for informal 
talks.  The GON was represented by Kamal Thapa, Minister of 
Communications, and Dr. Prakash Chandra Lohani, Finance 
Minister and GON team leader, while only two of the Maoists' 
negotiating team members, Krishna Bahadur Mahara and Ram 
Bahadur Thapa (alias Badal), represented the Maoists.  Badal 
reportedly demanded that the GON immediately implement 
agreements regarding restricted deployment of the Royal 
Nepal Army (RNA) allegedly reached during the second round 
of talks.   However, as Minister Thapa has said as recently 
as July 4, all decisions reached during the second round 
were not final. 
 
¶4.  The controversial issue of the army's restriction to a 5- 
kilometer radius from its barracks seemingly remains a major 
obstacle.  The local press reports that the RNA remains 
adamantly opposed to the idea, quoting an army official on 
July 4 as saying that to implement it would be "surrendering 
the very concept of national security."  In addition, 
security forces want several issues put on the agenda for 
the third round of talks, including the return of looted 
weapons by the Maoists. 
MAOISTS PREPARED FOR WAR OR PEACE 
--------------------------------- 
 
¶5.  Due to apparent skepticism regarding the future of the 
peace negotiations, Maoist leaders are preparing for other 
options.  Badal, military chief of the Maoists, declared on 
July 4 that the Maoists are preparing for both talks and 
war.  Speaking at the general convention of the All-Nepal 
National Independent Students' Union-Revolutionary (ANNISU- 
R), the Maoist affiliated student organization, Badal 
claimed that security personnel are "unilaterally violating 
the code of conduct," forcing the Maoists to prepare 
themselves against any large-scale violence by the 
government. (Note: Embassy has seen no evidence that the RNA 
is violating the code of conduct in any systematic or 
substantial way.  End note). 
 
¶6.  Local Maoist commanders in the eastern district of 
Khotang reportedly have changed tactics too, warning that 
they are capable of carrying out operations on their own, 
regardless of "higher orders" from Maoist leaders. 
According to Maoist commanders in the district, security 
personnel have resumed security operations and openly harass 
Maoist cadres.  The insurgents declared that they are 
prepared to "face the problems on our own" and were ready 
for any retaliation by security personnel.  The district 
administration denied the insurgents' claims, and said 
security forces are on high alert only after the insurgents 
extorted money from most of the government offices in the 
district headquarters. 
 
BRITISH ENVOY PLEDGES CONTINUED SUPPORT TO GON 
--------------------------------------------- - 
 
¶7.  In an interview on July 7 with the national news agency 
of the GON, a senior official of the British Foreign and 
Commonwealth Office said that his government wants to see 
peace in Nepal and welcomes the sustained ceasefire.  The 
official also said that Sir Jeffrey James, the British 
special envoy to Nepal, has affirmed his government's 
commitment to providing training and other non-lethal 
assistance to Nepal's security forces to counter any 
resumption of hostilities.  James reportedly warned against 
the resumption of hostilities, declaring that it would have 
a "devastating impact" on the lives of ordinary Nepalese. 
 
INSIGHT OF AN EX-MAOIST 
----------------------- 
 
¶8.  A July 10 op-ed written by a former Maoist for a weekly 
English language newspaper claims that Maoists are 
"stretched to the limit" trying to maintain the morale of 
their cadres, and agreed to a ceasefire because of American 
pressure on India to deny Maoist leaders refuge there. 
Puskar Gautam, a former Maoist commander and present member 
of the left-wing Communist Party of Nepal-United Marxist 
Leninist (CPN-UML), claims that the Maoist leaders have 
realized that the "people's war" is unacceptable to India 
and impossible to sustain, and therefore, have adopted new 
tactics.  The Maoists reportedly are trying to present 
themselves as a party dedicated to peace, and Gautam 
speculates that the "Prachanda Path" is developing into a 
multi-party peoples' movement because the insurgents need 
assistance.  Gautam claims that the Maoists' increased anti- 
American rhetoric is an attempt to incite nationalism, alarm 
security officials in Beijing and New Delhi, and ensure 
refuge in India if peace negotiations fail. 
 
ABDUCTIONS RAMPANT DURING CEASEFIRE 
----------------------------------- 
 
¶9.  A weekly report issued on July 4 by the Informal Sector 
Service Center (INSEC), a local human rights organization, 
showed that 199 people have been abducted by Maoists since 
the declaration of the ceasefire on January 29.  The highest 
number of victims, twenty-four, were taken from the far- 
eastern district of Taplejung.  The report states that 
seventy-four people have been released, but 125 remain 
missing.  Representatives from INSEC told the Embassy that 
they were unable to obtain information regarding whether or 
not ransom had been paid to secure the release of those set 
free. 
 
¶10.  The National Human Rights Commission (NHRC) has cited 
concern over human rights violations by the Maoists, 
particularly the abductions of political activists, and sent 
a letter to the Maoists on July 10 calling for the immediate 
release of abductees.  NHRC also urged the Maoists to honor 
their professed commitment to human rights. 
 
AI CLAIMS GON AND MAOISTS "NOT SERIOUS" 
--------------------------------------- 
 
¶11.  Frustrated by failed attempts to meet with GON 
representatives and Maoist negotiating team members, Ingrid 
Massage, Deputy Director of the Asia-Pacific Regional 
Program of Amnesty International (AI), said on July 6 that 
neither the GON nor the Maoists was serious about human 
rights.  She expressed disappointment that representatives 
from the GON and Maoists did not meet visiting AI 
representatives.  Massage also appealed to the public to put 
pressure on both sides to sign a human rights agreement. 
 
ATTACKS ON SECURITY PERSONNEL 
----------------------------- 
 
¶12.  A platoon commander of the Maoists was arrested on July 
8 for allegedly attacking police personnel in Rautahat 
District.  In the far west district of Doti, five RNA 
soldiers were wounded after being fired on by Maoists in a 
confrontation on July 4.  According to a press statement 
issued by the Defense Ministry, the soldiers were attacked 
while patrolling the area.  On July 5 a Maoist activist in 
custody in Accham District attempted to escape after 
snatching a weapon from a soldier.  Security personnel fired 
on the insurgent as he fled. 
 
¶13.  A team of joint security forces destroyed a Maoist 
training camp in Panchthar District on July 8.  There were 
no injuries reported as the insurgents had evacuated the 
camp the prior week. 
 
¶14.  The local press reported on July 3 that Bangladesh 
security agents seized a cache of ammunition and explosives 
reportedly destined for use by Maoists throughout Nepal. 
Over 90,000 bullets and almost two hundred kilograms of 
explosives allegedly were seized from the homes of activists 
from two of Bangladesh's prominent political parties. 
 
MAOIST ATROCITIES CONTINUE 
-------------------------- 
 
¶15.  Maoist cadres continue to ignore the code of conduct by 
abducting, assaulting and killing civilians.  A district 
committee secretary in Kalikot was physically assaulted in 
public on July 6 and then abducted.  According to local 
villagers, the insurgents have threatened to kill him. 
Three former Maoists who returned to their homes in Dhankuta 
District after surrendering to the district administration 
allegedly were tortured severely by Maoists.  They 
reportedly were abducted from their homes by armed Maoists 
on July 4.  On the same day insurgents beat a civilian to 
death and severely injured two others in Kailali District. 
The insurgents justified their actions by claiming they were 
avenging the death of one of their cadres. 
 
¶16.  In the southwestern district of Dang, a Maoist 
stronghold, insurgents reportedly have taken control of over 
half a dozen government offices.  According to local 
villagers the insurgents are running the customs office and 
collecting taxes.  They also have taken control of forest 
offices, animal check posts, health posts, and post offices. 
Maoists reportedly are using some of the offices as shelter 
after government workers fled the area in fear.  (Note:  The 
Maoists launched a brutal attack on the police post of 
Koilabas in the district on December 18, 2002 after which 
there has been no security personnel in the area.  End 
note). 
 
¶17.  Maoists in Kailali District reportedly have halted the 
construction of a bridge intended to facilitate travel 
during monsoon season.  The bridge has been constructed 
during monsoon season for the past two years with the 
financial assistance of private American citizens and local 
funds.  The insurgents declared that the bridge posed a 
security threat to them. 
 
SECURITY AND DEVELOPMENT PLAN UNDERWAY 
-------------------------------------- 
 
¶18.  The Integrated Security and Development Program (ISDP), 
which aims to enhance security and development projects in 
Maoist affected districts, will be expanded in the next 
fiscal year, according to the National Planning Commission 
(NCP).  The program, currently implemented in Gorkha 
District, will be expanded to include over twenty of the 
most affected districts.  The program has enjoyed some 
success in Gorkha, where security has been enhanced, 
government services restored, and various infrastructure 
facilities repaired, including schools and hospitals. 
 
MALINOWSKI