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

UNCLAS SECTION 01 OF 02 KATHMANDU 001542 
 
SIPDIS 
 
LONDON FOR POL/ GURNEY 
NSC FOR MILLARD 
 
E.O. 12958: N/A 
TAGS: PGOV SOCI NP
SUBJECT: NEPALI STUDENT LEADERS WARN OF MORE "AGITATION 
PROGRAMING" IF GOVERNMENT DOES NOT AGREE TO FINAL DEMAND. 
 
REFERENCE:  (A) KATHMANDU 00652 
            (B) KATHMANDU 01220 
 
SUMMARY 
------- 
 
¶1.  In meetings with the Nepali Student Union and the Nepal 
National Student's Union-the two largest of Nepal's seven 
united student unions-backed by the Nepali Congress (NC) 
party and the Communist Party of Nepal-United Marxist 
Leninist (CPN-UML) respectively, student leaders said they 
intended to close down public schools if their demand of 
free education up to grade 10 is not met.  Originally, in 
April, school lockouts were intended to protest allegedly 
excessive tuition rates charged by private schools.  The 
lockouts were lead by the Maoist student organization, the 
All Nepal National Independent Student Union-Revolutionary 
(ANNISU-R), in conjunction with the other party-affiliated 
student unions.  Since then, ANNISU-R has split from the 
seven party-affiliated unions, which have brokered a 
settlement with private schools and the Government of Nepal 
(GON).  The student unions have not reiterated this demand 
for free education publicly and for over a month have been 
holding strategy meetings among themselves to decide on the 
best course of action.  There are currently no meetings 
scheduled between student leaders and government officials. 
End Summary. 
 
DESPITE GOVERNMENT CONCESSIONS, STUDENT UNIONS STILL 
THREATEN TO SHUT DOWN SCHOOLS 
--------------------------------------------- ------- 
 
¶2.  Both the Private and Boarding School Association of 
Nepal (PABSON) and the GON met with the student unions and 
agreed to most of their demands in early July of 2003 as a 
result of forced school closures at the end of June.  PABSON 
agreed to a price ceiling on tuition, more scholarships for 
poor students, and greater teacher accountability.  The 
government agreed to increase teacher quality and 
accountability in public schools as well as student- 
demanded curriculum changes at the National University. 
Despite these agreements, student leaders insisted they 
would demand free education up to grade 10 from the 
government and were willing to close public schools to 
accomplish their goal. 
 
FREE EDUCATION REMAINS FISCALLY UNATTAINABLE 
-------------------------------------------- 
 
¶3.  The Ministry of Education budget for FY 03 is about 16 
percent of the total GON budget.  Post estimates that to 
meet the student union demand of free education up to grade 
10 the GON would have to allocate 42 percent of the over-all 
national budget to the Ministry of Education. 
 
¶4.  Student unions claim the GON has increased security 
spending dramatically while neglecting education.  In 
actuality, from FY02 to FY03 the security budget increased 
only 1.3 percent, and the education budget decreased 0.6 
percent.  Additionally, at the GON's budget presentation on 
July 17, 2003 the Ministry of Finance promised a 10 percent 
decrease in the security budget of FY04.  This 10 percent 
decrease would be held in an emergency fund in case the 
ceasefire breaks.  In any case, even if the reduction in 
security spending were realized, there would still not be 
sufficient funds in the budget to provide education to all 
students up to grade 10. 
 
¶5.  On, July 17, the Director General of the Department of 
Education stated publicly that the Ministry would not have 
enough funding to provide free education to grade 10.  He 
said the government was working on a compromise acceptable 
to the student unions, having met all their other demands. 
 
STUDENT LEADERS DISTANCE THEMSELVES FROM VIOLENCE AND 
MAOISTS 
--------------------------------------------- ---------- 
 
¶6.  In meetings with Embassy intern, student unions 
distanced themselves from the Maoist student group, the 
ANNISU-R, and stated that they currently have no affiliation 
with it.  (Note.  In April 2003, during student-led protests 
over petroleum price increases, the ANNISU-R joined the 
seven student unions in their agitations.  The strikes 
resulted in the burning and looting of a National University 
building and the shooting by police of one student leader 
(Ref A) End Note).  Both student groups denied being 
involved in the burning or looting of any buildings.  While 
the student unions disavowed past violent acts, the acting 
president of the Nepali Student Union said, "The Nepali 
government does not listen; it listens only when people take 
to the street.  Sometimes you have to burn tires to get 
their attention." 
 
STUDENT UNIONS' AFFILIATION WITH POLITICAL PARTIES 
--------------------------------------------- ------ 
 
¶7.  While student unions claim to operate independently of 
political parties, the UML affiliated student union admitted 
that all decisions were cleared through UML party leaders. 
The NC affiliated student union admitted that in addition to 
clearing action programs and protests through NC party 
leaders, they periodically received funding from the NC for 
rent and other union related expenses.  There is little 
effort to conceal this direct partisan association. 
 
COMMENT 
-------- 
 
¶8.  The student unions' demands regarding educational 
funding continues to represent an attempt to demonstrate 
political muscle rather than a true concern for the welfare 
of poor students (Ref B).  The student unions' scheduled 
school lockout in June was moved up a week in order to 
coincide with the 5-party protest against government 
"regression" and the appointment by the King of Surya 
Bahadur Thapa as Prime Minster. 
 
¶9. While free education until grade 10 is currently an 
unrealistic option, there are other important educational 
issues that should be addressed at the national level.  Only 
15.8 percent of current Nepali teachers have adequate 
teaching credentials.  According to the 2001 national census 
only 81 percent of school age children are enrolled in 
school and only 60 percent finish grade 5, (the equivalent 
of US primary education).  Because the political parties 
remain outside the government, the parties and their student 
unions are able to act with a degree of impunity, making it 
possible for them to militate for irresponsible and 
unattainable demands on the government. 
 
MALINOWSKI