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 000567 
 
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 PHUM
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 20-26, 
2004 
 
REFERENCE:  (A)  KATHMANDU 0516 
            (B)  KATHMANDU 0437 
 
SUMMARY 
------- 
 
¶1.  A deadly attack on March 20 topped a week of violence in 
Nepal in which at least 187 Maoists, 35 security personnel 
and 50 civilians lost their lives.  The UN Secretary General 
appealed for an end to the violence, and reiterated the UN's 
offer to help in finding a solution.  The Prime Minister 
said he takes the UN's statement "very seriously," but some 
of Nepal's major political parties dismissed UN mediation 
until there was "a legitimate government."  The local press 
reported a significant increase in the number of Maoists 
entering Indian cities along the India-Nepal border, while 
officials in Mumbai reportedly investigate Maoist 
recruitment posters placed in train stations.  Maoist- 
planted bombs rocked the Kathmandu Valley, including several 
in Thamel, the main tourist hub.  Amnesty International (AI) 
ranks Nepal as having the highest number of cases of 
disappearances.  A Maoist-imposed blockade in the far west 
began with a series of bombs.  End Summary. 
 
AMBUSHES AND OFFENSIVES; MAJOR CASUALTIES 
----------------------------------------- 
 
¶2.  A well-planned Maoist attack on a district headquarters 
on March 20 topped a week of violence.  Several thousand 
Maoist rebels launched a nighttime assault on Beni, the 
headquarters of Myagdi District in the west-central region 
of Nepal (Ref A).  At least sixteen Royal Nepal Army (RNA) 
soldiers, fourteen police officers and thirty civilians were 
killed.  Initial reports claimed that 200-500 rebels were 
killed, while only 120 bodies have been found so far.  The 
rebels attacked the police station, the bank, the District 
Administration Office, and a jail, subsequently releasing 
all of the inmates.  They were unable to take over the RNA 
barracks.  A videotape obtained from the clash site reveals 
that the rebels had planned to overrun the town and hold it 
for three days.  On the tape, a Maoist commander, speaking 
to hundreds of people, including children, women, and young 
soldiers, declares that "our rebellion has reached a 
decisive stage," and "now it's time to make sacrifices." 
Despite the heavy losses suffered by the security forces, 
RNA spokesman Colonel Deepak Gurung said "it is a major 
success of the army." 
 
¶3.  During the clash, Maoists also abducted thirty-three 
security personnel, including the Chief District officer 
(CDO), the highest ranking civil servant, and the Deputy 
Superintendent of Police (DSP), the highest-ranking police 
officer.  On March 22 rebel sources  said the hostages would 
be released only after the GON released three of their 
senior members (Matrika Yadav, Suresh Ale Magar, and Tilak 
Sharma) who currently are in detention.  Amnesty 
International (AI) has appealed for the release of those 
abducted, reiterating that international law "clearly 
prohibits the taking of hostages." 
 
¶4.  Air raids carried out on March 23 in Parbat by security 
forces attempting to flush out Maoists fleeing after the 
Beni clash reportedly left over 50 rebels and 20 civilians 
dead.  The air strikes were carried out after security 
forces reportedly received a tip that insurgents who 
participated in the March 20 ambush in Myagdi had fled to 
neighboring Parbat.  Maoists claim the death toll is 
exaggerated. 
¶5.  Seventeen Maoists were killed in other clashes this 
week: three in the western district of Dang on March 25; 
another one in Dang on March 24; two in Dhanusha District on 
March 22; three in the central district of Kaski on March 
20; and ten in Dhading District on March 20.  Five security 
personnel also lost their lives in Maoist ambushes: one RNA 
soldier was gunned down in Rupandehi, and a retired 
inspector of the National Investigation Department in Kavre 
District on March 25; two police officers abducted by 
Maoists were found dead in Banke District on March 20; and 
two police officers were killed in Dhading District on March 
¶19. 
 
UN SECRETARY APPEALS FOR END TO VIOLENCE 
---------------------------------------- 
 
¶6.  Following the deadly clash in Beni, UN Secretary General 
Kofi Annan appealed for an immediate end to the violence in 
Nepal and offered his assistance.  In the statement issued 
on March 23, Annan said Nepal's economic and social 
development "is being seriously hampered," and said he was 
disturbed by the "serious human rights violations."  The 
Secretary General also reiterated his willingness to help in 
 
SIPDIS 
any way. 
 
¶7.  On March 24 however, representatives from some of 
Nepal's major political parties dismissed UN mediation until 
there was "a legitimate government."  Bharat Mohan Adhikary, 
politburo member of the Communist Party of Nepal-United 
Marxist Leninist (CPN-UML), agreed there was an "urgent 
need" for UN mediation, but said an all-party government 
should be formed first and Parliament reinstated.  Narahari 
Acharya, Nepali Congress (NC) central committee member, said 
NC would not rule out UN intervention, but would have to 
determine "to what extent we should welcome its role." 
Abhuvan Pathak, central committee member of the Rastriya 
Prajatantra Party (RPP) refused to accept any third party 
intervention, declaring defiantly that Nepalis are "capable" 
of solving their own domestic matters. 
 
MAOISTS SEEKING REFUGE IN INDIA 
------------------------------- 
 
¶8.  On March 23, the local press reported a significant 
increase in the number of Maoists entering Indian cities 
along the India-Nepal border.  According to the report, 
officials along the border believe many of the rebels are 
seeking medical treatment for injuries after clashes with 
Nepalese security forces.  Others are Indian nationals, 
particularly businessmen, returning home to India to escape 
the violence and extortion demands of the insurgents. 
 
¶9.  An Indian newspaper reported on March 23 that Maoists 
from Nepal are placing recruitment posters in India's train 
stations.  According to the article, the posters, with 
photographs of top brass Maoists, have been plastered in 
train stations in Mumbai.  Nepalese who migrated to Mumbai 
reportedly are worried that Indian police will drive them 
away in an attempt to pre-empt any Maoist activity.  The 
article quoted an official in Mumbai as saying that because 
the city was so large "any group here could easily merge 
with underground groups and carry out joint operations."  He 
went on to say, however, that if any Maoists were found in 
India they would be repatriated "immediately to Nepal." 
 
BLASTS ROCK KATHMANDU 
--------------------- 
 
¶10.  Five separate Maoist-planted bombs rocked the Kathmandu 
Valley.  On March 25, two blasts occurred in Thamel, the 
main tourist hub.  There were no casualties in that 
incident.  Superintendent of Police Deepak Ranjit blamed the 
blasts on the Maoists' special task force, and said they 
were trying "to create havoc in the city."  On March 23, 
three blasts injured one police officer and three civilians, 
two of whom were children.  Two of the bombs were set off at 
government buildings, one of which was again in the heart of 
Thamel, and another exploded on the side of a road.  A 
fourth bomb was defused by a bomb disposal unit.  On March 
20 in Kathmandu District, a Royal Nepal Army (RNA) soldier 
was killed and two police officers injured while trying to 
defuse a bomb left by the rebels.  The body of a suspected 
Maoist was found inside an office building after a bomb 
exploded there.  On March 19 in the eastern district of Bara 
Maoists reportedly blew up the Nepal Telecommunication 
Corporation (NTC) office and a radio transmission tower 
causing almost one million dollars in damages.  Eighty 
percent of NTC's customers are now without service. 
 
NEPAL RANKS FIRST IN ABDUCTIONS 
------------------------------- 
 
¶11.  According to Amnesty International (AI) Nepal ranks 
first for having the highest number in cases of 
disappearances.  March 21 press reports cite AI as reporting 
190 people who have disappeared since the end of the 
ceasefire in August 2003.  Human rights activist allege the 
number is higher.  On March 19, the International Committee 
of the Red Cross (ICRC) voiced concern about the 
difficulties faced in trying to obtain information about the 
conditions of those abducted, particularly by the Maoists. 
 
¶12.  Maoists abducted 28 members of the Communist Party of 
Nepal-United Marxist Leninist (CPN-UML) in Surkhet District 
on March 20.  They were released on March 24. 
 
MAOIST BLOCKADES CONTINUE 
------------------------- 
 
¶13.  A Maoist-imposed blockade in the far-western districts 
of Banke and Bardiya began on March 23 with a series of 
bombs meant to intimidate the people of those districts into 
compliance.  Several bombs went off throughout the 
districts, including in the office of the Nepal Drinking 
Water Corporation, and near two bridges.  A security vehicle 
was also ambushed by Maoists, but that bomb did not cause 
any damage.  Transportation services and delivery of 
commodities have stopped after drivers reportedly said they 
could not depend on security forces to provide adequate 
protection.  A contact reported to EmbOff that his bus, 
which was traveling in a convoy guarded by security forces, 
came under attack while heading to Jhapa District. 
 
¶14.  Fallout from the 15-day blockade called by the Maoists 
in the western and mid-western districts (Ref B) continues 
despite initial indications it would end on March 21.  Many 
of the buses still have not resumed normal operations, and 
supplies of commodities have dwindled. A member of the 
Morang Industries Association told reporters that "the 
industries here are completely handicapped." 
 
ELECTION ANNOUNCEMENT FORTHCOMING? 
---------------------------------- 
 
¶15.  Amid the buzz over the possible announcement of dates 
for elections, Maoist supremo Prachanda denounced the 
planned elections as propaganda. The Maoist Chairman said 
"it is lunatic" to talk about holding elections when there 
is a civil war in the country.  He also accused the GON of 
seeking help from the USG in securing participation from the 
political parties.  Prachanda accused "US representatives" 
of "knocking on the doors of leaders" and "humiliating 
Nepal's nationality and sovereignty" by visiting army 
barracks. (Note: this is in apparent reference to the 
Ambassador's recent visit to the eastern region of Nepal. 
End note).   He warned that if the parties get trapped "in 
the web" of the so-called elctions, "they will not be 
forgiven." 
 
MALINOWSKI