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

UNCLAS SECTION 01 OF 03 KATHMANDU 001234 
 
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 ALVERSON 
 
E.O. 12958: N/A 
TAGS: PINS PTER CASC PGOV NP PHUM
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, JUNE 26-JULY 
2, 2004 
 
 
SUMMARY 
------- 
 
¶1.  Security forces reportedly thwarted Maoist plans to 
create "chaos" in the capital.  Germany's envoy called for a 
quick resolution of the Maoist conflict to improve Nepal's 
economic development.  Nepal's UN Chief said the UN "would 
not take any initiative" for dialogue with the Maoists, and 
said the Maoists were not "legitimate."  Maoist supremo 
Prachanda threatened to take up "more violent means" if the 
Government of Nepal (GON) prevents UN mediation.  In an open 
letter to Prachanda, Amnesty International (AI) deplored the 
"gross human rights violations" committed by the Maoists, 
and urged the insurgents to respect humanitarian laws. 
Thirty-one rebels were killed in various encounters with 
security forces this week.  Maoists reportedly killed three 
security personnel and 11 civilians.  Maoists continue to 
attack infrastructure, vehicles and non-governmental 
organizations.  End Summary. 
 
MAOISTS' BIG HIT THWARTED 
------------------------- 
 
¶2.  The security forces reportedly foiled an attempt by 
Maoists to create "chaos" in Kathmandu with the use of 
improvised explosive devices (IED) attached to motorcycles. 
On June 25, Royal Nepal Army (RNA) officials, acting on a 
tip, discovered literature, explosives, and homemade bombs 
in the northern and eastern parts of the Kathmandu Valley. 
RNA Brigadier General Netra Bahadur Thapa said the discovery 
"proved" that the rebels were planning to target high- 
traffic areas.  RNA officials said no arrests were made, but 
soldiers are "keeping watch" on several suspects. 
 
MAOIST CONFLICT SLOWING ECONOMIC DEVELOPMENT 
-------------------------------------------- 
 
¶3.  On June 25, German Ambassador to Nepal Rudiger Lemp told 
an audience of businessmen that the Maoist conflict "has 
greatly aggravated" business and economic development in 
Nepal.  Speaking at a function held by the Pokhara Chamber 
of Commerce and Industry, the envoy said resolving the 
Maoist conflict would create a more favorable climate for 
foreign aid and investment.  Lemp also said his government 
was ready to invest in Nepal's private sector, but only 
after the political and security situation stabilizes. 
 
UN RESIDENT COORDINATOR RULES OUT INTERFERENCE 
--------------------------------------------- - 
 
¶4.  On June 30, Matthew Kahane, UN Resident Coordinator in 
Nepal, said the UN has no plans of "interference" in 
settling the current conflict, and would not "take any 
initiative" to instigate dialogue with the Maoists. 
Conceding that the current situation in Nepal is "very 
serious" Kahane said it was important for both the 
Government of Nepal (GON) and the Maoists to "have mutual 
respect for each other," despite the UN's refusal to 
recognize the Maoists as "legitimate."  Kahane said the UN 
would support "national efforts" to bring peace to Nepal. 
 
PRACHANDA WARNS OF MORE VIOLENCE 
-------------------------------- 
 
¶5.  On July 1, Maoist supreme Prachanda issued a press 
statement warning of "more violent means" if the GON 
continues to dismiss inviting the UN to facilitate dialogue 
between the GON and his party.  Prachanda accused the GON of 
inviting more bloodshed with "false propaganda."  He also 
reiterated his party's demand for a round-table conference, 
interim government and constituent assembly. 
 
AI CHALLENGES PRACHANDA 
----------------------- 
 
¶6.  On July 1, Amnesty International (AI) in an open letter 
to Prachanda challenged the Maoists to uphold their public 
claims of adhering to the Geneva Convention, and to stop 
killing civilians.  AI deplored the torture and killing of 
civilians, and the "gross human rights violations" committed 
by the insurgents.  The letter condemned the abductions and 
torture committed by Maoist cadres, and the impact the 
violent insurgency has had on children. 
 
MAOISTS KILLED 
-------------- 
 
¶7.  Thirty-one Maoists reportedly were killed in separate 
encounters with the security forces this week: eighteen in 
the western district of Arghakhanchi on June 29 and June 30; 
four in the central districts of Bara, Sindhuli and Sarlahi 
on June 27; and two in the western districts of Bardiya and 
Kanchanpur also on June 27. On June 25, two insurgents were 
killed in the eastern district Bhojpur, and in the mid- 
western district of Banke.  On June 26, two more were killed 
in the central districts of Nuwakot and Dhanusa. On that 
same day, three were killed in the far-western district of 
Kailali. 
 
MAOISTS KILL SECURITY PERSONNEL 
------------------------------- 
 
¶8.  On July 30, more than six security personnel were 
injured in Maoist-planted landmine in the mid-western 
district of Dailekh.  On June 25, Maoists shot dead a 
policeman and injured another in the mid-western district of 
Banke.  On the same day, a Royal Nepal Army (RNA) soldier 
was killed by insurgents in the eastern district of Morang. 
On June 29, a security officer was killed in the western 
district of Arghakhanchi.  On June 27, two security 
personnel were injured by crossfire in Sindhuli district. 
 
MAOISTS CONTINUE ATROCITIES 
--------------------------- 
 
¶9.  On June 26, one child was killed and two children 
injured when a grenade carried by a Maoist exploded in the 
far-western district of Kanchanpur.  One insurgent also died 
and two civilians suffered injuries. On that same day, the 
insurgents killed another civilian in the central district 
of Sarlahi. On June 25, Maoists shot dead a civilian in the 
eastern district of Dhankuta, and a teacher and student were 
killed in the western district of Lamjung when a Maoist- 
planted bomb exploded on the premises of the school.  On 
June 24, Maoists killed a nephew of former Prime Minister 
Surya Bahadur Thapa in the eastern district of Dhankuta, 
after accusing him of spying on the Maoists.  Another 
civilian was shot dead by the insurgents in the western 
district of Gorkha on June 22. 
 
¶10.  On June 27, four civilians and three security personnel 
were injured in a Maoist-laid mine explosion in the central 
district of Sindhupalchok.  On June 30, four civilians, 
including two children, were injured in a Maoist-planted 
bomb explosion in the central district of Dhading. 
 
¶11.  On June 25, Maoists issued a press release announcing 
they were imposing a fee of USD 66 on tourists entering the 
Kanchanjunga Conservation Area (KCA) in the eastern district 
of Taplejung. The region is a popular tourist trekking 
route. 
 
MAOISTS DESTROY INFRASTRUCTURE; BOMB NGO 
---------------------------------------- 
 
¶12.  On June 25, Maoists set ablaze offices of six Village 
Development Committees (VDCs) in the eastern district of 
Siraha.  On June 28, the rebels also bombed the office 
building of Backward Society Education (BASE), an NGO 
working for the cause of bonded laborers (Kamaiyas), in the 
far-western district of Kailali.  The BASE official told 
emboff that the second floor of the building collapsed in 
the explosion, damaging a vehicle, computers and furniture. 
Damages are estimates at USD 33,333.  In yet another 
incident, the insurgents reportedly torched a ranger post of 
the Royal Chitwan National Park in the central district of 
Chitwan on June 27.  On the same day, the rebels also 
torched a truck transporting Coca Cola in the western 
district of Nawalparasi.  On June 29, Maoists torched a 
vehicle belonging to the Soil Conservation Office in Dhading 
district, and also set fire to the Agriculture Service 
Center in Myagdi district. On July 30, Maoists torched the 
branch office of the Internal Revenue Department in Banke 
district. 
 
BOGUE