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 001329 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT: JULY 8 - 14, 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 
 
 PEACE TALKS 
 
 -- Government, Maoists hold talks: Members of the 
 negotiating teams of the government and the Maoists 
 held an informal meeting in Kathmandu to create a 
 congenial atmosphere for the third round of the peace 
 talks.  However, the talks failed to set a date for the 
 next round of the talks.  (Government-owned " Rising 
 Nepal," E/D, 7/14) 
 
 -- Government formally calls Maoists to resume talks: 
 The government sent (7/13) a formal letter to the 
Maoist leadership with the proposal for sitting down 
for formal dialogue as soon as possible. (Media 
reports, 7/14) 
 
-- Question mark looms over talks: A question mark 
suddenly arose over the continuation of peace talks 
between the Maoists and the government today (7/13) 
with both the parties making moves and counter moves. 
In a day of fast paced developments, the Maoists 
threatened not to sit for the next round of peace talks 
unless and until the government honored the agreement 
it had reached with them over deployment of the army in 
the second round of peace talks held in May, and also 
freed three top Maoist leaders.  The government 
responded to the Maoists' threat by sending a letter 
formally inviting them to the third round of talks. 
But the letter was not written by Prime Minister Surya 
Bahadur Thapa.  Nor was it addressed to the Maoist 
supremo; it was signed by Information and 
Communications Minister Kamal Thapa and sent to Maoist 
talks team leader Dr Baburam Bhattarai. (pro-India 
"Himalayan Times," E/D, 7/14) 
 
-- Movement reaches village level: The movement 
launched by major political parties to make the king 
less powerful but respectable has reached the village 
level. (centrist "Deshantar," V/W, 7/13) 
 
-- Security tightened in mid-west: Security in most of 
the districts in the mid-western region has been beefed 
up.  This follows an atmosphere of uncertainty, 
generated by a lull in the resumption of talks between 
the government and the Maoists.  Meanwhile, the local 
administration has issued a curfew order in Dang 
district where the Maoists had carried out a massive 
attack on the army base two-and-a-half years ago. 
(Media reports, 7/13) 
 
-- Peace talks vulnerable: "The peace talks process is 
at a vulnerable point". Despite the four rounds of 
informal talks, the formal one is still uncertain... 
The security wing is now specially alert and vigilant." 
(centrist "Bimarsha," V/W, 7/11) 
-- The joint movement is a big pain for Nepali 
Congress. (centrist "Nepalipatra," V/W, 9/11) 
 
-- UML suspends senior party leader: The fourth central 
committee meeting of the UML suspended (7/8) party 
central committee member Radha Krishna Mainali from his 
position for six months.  Mainali was charged of 
protesting the joint movement launched against 
regression, and supporting the king's retrogression 
through his many articles published in the past. (Media 
reports, 7/9) 
 
PALACE IN SEARCH OF PRIME MINISTER AGAIN 
 
-- Girija Prasad Koirala [former Prime Minister and 
President of Nepali Congress] is set to be the next 
Prime Minister.  Koirala is friendly with the Palace 
now.  The joint movement is in a limbo.  (centrist 
"Naya Kiran," V/W, 7/11) 
 
-- Girija Prasad Koirala is getting closer to the 
Palace these days.  There has been a new political 
consensus between the Girija clique and the palace in 
the initiatives and directions of the Indian power 
center.  Koirala is now 
 playing a double standard by 
telling the Maoists that "the movement should be now 
for the Republic State" and telling the palace that it 
was he only who could save it from the crisis. (pro- 
Maoists "Jana Dharana," V/W, 7/10) 
 
-- The Royal Palace is finally unsatisfied with Prime 
Minister Thapa as he could not include any other 
political party in the government.  The Palace is now 
on the lookout for a new Prime Minister.  It has eyed 
on three figures: Speaker of the House Taranath 
Ranabhat, former Prime Minister Sher Bahadur Deuba and 
former Speaker of the House Daman Nath Dhungana. 
(centrist "Ghatana Ra Bichar," V/W, 7/9) 
¶2.  MAOIST ACTIVITIES 
 
-- Maoists confiscate citizenship certificates: Maoist 
cadres confiscated citizenship certificates distributed 
by a "Goodwill Team" of the Royal Nepal Army (RNA) in 
Mugu district in mid July. (centrist "Kathmandu Post," 
E/D and centrist "Kantipur," V/D, 7/12) 
 
-- Maoists restrict entry: The Maoists have imposed 
restriction on entry to 10 remote VDCs of Kavre 
district, as they declared them as a base area a week 
ago. ("Kantipur," 9/11) 
 
¶3.  NEPAL-U.S. 
 
-- Nepal Trade Bill could still move in U.S. Senate: A 
preferential legislation that would allow duty and 
quota free access to Nepali garments could earn fresh 
support from Senator Dianne Feinstein, provided 
authorities in Nepal lend an assurance that they would 
not deport Tibetan asylum-seekers in future, a 
spokesperson at Senator Feinstein's office said today. 
("The Kathmandu Post," 7/13) 
 
-- The bill: Industrialists are pressuring the 
government to request U.S. Senator Dianne Feinstein to 
reintroduce the customs and quota free bill for Nepali 
garments that she withdrew in May after 18 Tibetans 
were deported back to China.  "They want a guarantee 
from us that there will be no deportation in the 
future," says a senior Foreign Ministry official.  "But 
how can we issue such a guarantee?  We have accepted 
more than 150,000 refugees in the country but if 
someone arrives here illegally, we will have to deport 
them."  Nepali garment manufacturers say the government 
is not lobbying enough. (centrist "Nepali Times," E/W, 
7/11) 
 
-- Violence and instability continue to depress U.S. 
tourism to Nepal: The U.S. in a press release stated 
that Nepal's violence and instability is having an 
adverse effect on the number of American tourists 
visiting Nepal.  "Unfortunately, continued political 
turmoil and violent street demonstrations even after 
the ceasefire have dampened thus far the expected 
rebound in U.S. tourism," stated the release.  "Threats 
and violence over the past two years from members of 
the Communist Party of Nepal (Maoist) have caused a 
dramatic decline in U.S. and other international 
visitors.  As a direct result of Maoist violence and 
threats, foreign tourism has declined by more than half 
since 2000.  Instead of the 40,000 Americans, who 
visited in 2000, only 16,000 U.S. visitors arrived in 
Nepal in 2002."  The statement also cited reports of 
trekkers being assaulted and robbed at gunpoint in 
rural areas by Maoists. (Media reports, 7/11) 
 
-- Royal Nepal Army to be in Iraq: As U.S. soldiers are 
being decimated because of Iraqi people's resistance, 
it has asked for a military assistance from Nepal as 
well.  The discussion the Thapa government is holding 
on this makes it suspicious whether Nepal is longing to 
deviate from its non-aligned foreign policy.  Experts 
are saying that the sending off the Nepalese army to 
Iraq would be a mistake and counterproductive. 
However, top army officials are in consensus to send 
Nepalese troops to Iraq.  The top officials had 
stressed on sending the troops to Iraq, even if they 
would be under the American command, when Prime 
Minister Thapa asked them last week for an advice. 
Their suggestion was based on two facts: U.S. military 
assistance to suppress the Maoists and the economic 
benefits the troops would make in Iraq. 
 
-- Althou 
gh the rulers of some Arab nations are U.S.- 
supporters, the majority of people are anti-America. 
If the troops are sent to Iraq, the lives of about half 
million Nepalis will be unsecured.  The U.S. is asking 
for Nepali troops only because it wants to keep its own 
troops safe and use the Nepalis as mercenaries.  The 
Americans want a very low casualty on its troops.  If 
too many Americans die, President Bush will be an 
unpopular figure. This will have a direct effect on the 
next presidential elections. (leftist "Jana Aastha," 
V/W, 7/9) 
 
-- Troops for Iraq: Pros and cons: The government is 
reportedly considering the dispatch of an infantry 
battalion to Iraq to join in the post-war 
"stabilization force" there, as per a formal request by 
the United States.  Given the grim state of 
unemployment in the country, aided and abetted by 
blatant misgovernance for twelve long years, can Nepal 
really afford to turn a blind eye to the prospect of 
thousands of valuable jobs in the massive re- 
construction efforts that will be beginning very 
shortly in Iraq?  Are there no dangers at all? Of 
course, there are - as in UN peacekeeping operations! 
For a professional Army that should not, however, be a 
deterrent.  Instead, it should be treated as a valuable 
opportunity to gain new experience that could stand the 
nation in good stead in the future. (Op-ed in "The 
Kathmandu Post, 7/9) 
 
-- USAID assistance to Nepal: The USAID has agreed to 
Nepal with grant assistance worth 7.5 million dollars 
to strengthen the rule of law in the country and 
initiate anti-corruption measures.  The assistance 
extending over three years will support Nepal's efforts 
on strengthening the rule of law, enhancing access to 
justice, and advancing accountability and anti- 
corruption initiative. (Media reports, 7/9) 
 
¶4.  BHUTANESE REFUGEES 
 
-- Involve UNHCR in refugee verification: US envoy: 
U.S. Ambassador Michael E Malinowski favors UNHCR's 
involvement in the Bhutanese refugees' verification 
process.  In a letter to "The Kathmandu Post," 
Malinowski said, "I strongly believe that UNHCR is 
uniquely qualified to assist in the verification and 
repatriation of the refugees."  The U.S. envoy added 
that "the UNHCR is widely recognized by the 
international community as having the expertise needed 
to ensure that the repatriation and reintegration to 
Bhutan is conducted in just and humane manner". 
 
-- He said this while expressing concern at the nature 
and content of the report prepared by Nepal-Bhutan 
Joint Verification Team (JVT) which was publicized on 
June 18 amid much uproar among the Bhutanese refugees 
in Nepal.  The report, which has huge inconsistencies 
and thus leaves out a large number of Bhutanese 
refugees as non-Bhutanese, rules out any chances of 
their repatriation to Bhutan for all practical purposes 
until their pleas are heard by the Druk authorities. 
(The Kathmandu Post and others, 7/10.  Separate cable 
sent earlier on this) 
 
-- Nepal, Bhutan discuss U.S. statement during 
bilateral meet: A day after the U.S. ambassador to 
Nepal expressed his dismay over the tardy progress in 
the repatriation of the Bhutanese refugees from the 
Khudunabari camp, Nepal and Bhutan discussed the U.S. 
statement during their bilateral meet, held on the 
sidelines of the SAARC Standing Committee meeting in 
Kathmandu on Thursday. 
 
-- When reminded that the envoy had also issued a 
veiled criticism of Nepal, Nepal's Foreign Secretary 
Madhu Raman Acharya said, "I think what they are 
reiterating...is the concerns of the refugees, which we 
are also reiterating."  Meanwhile, Bhutan's officiating 
Foreign Secretary S. T. Rabgye declined to make any 
comment when "The Kathmandu Post" approached him for 
his reaction to the U.S. statement.  "No comments," 
said Rabgye, although he admitted that he had read the 
reports in newspapers. 
-- The refugee leaders, on the other hand, were upbeat. 
The president of Bhutan National Democratic Par 
ty and 
the chief coordinator of the Association of Human 
Rights Activists-Bhutan (AHURA, Bhutan) welcomed the 
U.S. concerns. 
 
-- "This is very good news for us," said the president. 
"This is the first time that the U.S. has expressed 
such open support for us."  He added it was long 
overdue in the light of the atrocities on the refugees. 
The coordinator said that with U.S. showing interest in 
the affairs of the refugees, things could be better for 
the refugees.  There are more than 100 thousand 
refugees in the UNHCR-run camps in eastern Nepal. ("The 
Kathmandu Post," 7/11) 
-- Bhutanese forum hails Ambassador Malinowski's 
statement: "A two-day special meeting of the People's 
Forum for Human Rights in Bhutan (PFHRB) concluded in 
Siliguri, India, taking positively the U.S. Ambassador 
Michael E. Malinowski's recent statement on the joint 
verification team's report on Bhutanese refugee 
categorizations. (The Kathmandu Post, 7/14) 
 
¶5.  PRESS AND MEDIA 
 
-- Private television channels launched: The Kantipur 
Television Network (KTN) and the Image Metro Television 
formally launched their transmissions on July 13.  The 
KTN is the only channel in the private sector to have 
acquired a license for the terrestrial transmission. 
The Image TV will broadcast in and around the Kathmandu 
Valley.  The KTN plans to expand its broadcast 
throughout the nation and outside through satellite up- 
link. (Media reports, 7/14) 
 
¶6.  REGIONAL 
 
-- Bhutto in Kathmandu: Former Pakistani Prime Minister 
Benazir Bhutto, who is currently on a private visit to 
Nepal, today said the main threat to democracy in South 
Asia lies in periodic dictatorships, "which have shown 
tendency to give birth to terrorism also." ("The 
Kathmandu Post," 7/14) 
 
-- Pakistan accuses India of holding SAARC hostage: 
Pakistan's Foreign Secretary Riaz H Khokhar rejected 
(7/11) the Indian charge that his country was the 
"slowest" member as far as SAARC economic agenda was 
concerned and pointed out that this could be used as a 
pretext by India to postpone the forthcoming Summit 
once again.  He also blamed India for not holding 
bilateral talks while the two countries' foreign 
secretaries were in Kathmandu.  On China's inclusion in 
 
SIPDIS 
the SAARC, the Pakistani foreign secretary said, "We 
would certainly welcome it" and claimed that "six out 
of the seven members agree that China should be 
associated, and if possible, made a member." (Feature 
article in "The Kathmandu Post, 7/12) 
-- SAARC Summit in January: All seven member-countries 
of the SAARC agreed to hold the postponed 12th Summit 
in Pakistan on January 4-6, with the preceding meetings 
beginning at the end of December. (Media reports, 
7/11)) 
 
¶7.  OTHERS 
 
-- Jurists slam Nepal's judicial set-up: The 
International Commission of Jurists in a report says 
that Nepal is perilously close to slipping from a 
constitutional to an absolute monarchy as the integrity 
of the Nepalese constitution is under severe strain, 
with the king having failed to call elections. ("The 
Himalayan Times," 7/13) 
 
-- Food shortage hits the eastern region: While the 
food shortage has been a regular feature of remote far 
western zone of Karnali, it now has extended to eastern 
region as well, as five eastern districts including 
Bhojpur, Khotang, Taplejung, Okhaldhunga and 
Sankhuwasabha are facing with acute food-crunch 
recently. ("The Kathmandu Post," 7/13) 
-- 48 killed, 1,143 families affected: At least 10 
people were confirmed dead in separate incidents of 
landslide and flood in various parts of the country on 
Thursday.  The Home Ministry said (7/10) that 48 people 
were killed and more than 1,140 families were affected 
across the country since the onset of the rainy season. 
("Kantipur," 7/11) 
 
MALINOWSKI