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 001407 
 
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 DORMANDY 
SECDEF FOR OSD/ISA ALVERSON 
 
E.O. 12958: N/A 
TAGS: 
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, JULY 17-23, 
2004 
 
REFERENCE: KATHMANDU 1360 
 
SUMMARY 
------- 
 
¶1.   Government of Nepal (GON) officials said they would not 
compromise on "monarchy and multi-party democracy," while 
the Prime Minister warned the Maoists that his "elasticity 
has a limit."  Maoist Chairman Prachanda issued a scathing 
rebuke, declaring that his party was ready to move forward 
with its revolution "at any cost." Nepal's political parties 
remained somewhat hopeful that talks would resume, despite 
the criticisms hurled from both the GON and the Maoists. 
For the first time, Maoists boldly abducted students and 
teachers from a school within the Kathmandu Valley for a 
"three-day military training course" (Reftel).  Police 
negligence was blamed for the death of a civilian after a 
bomb left by Maoists exploded in the valley.  Seven other 
civilians were also killed by the rebels.  Nine security 
force personnel and nine Maoists were killed in separate 
incidents. Maoists reportedly are forcing families of 
security personnel to vacate their homes. The All Nepal 
National Independent Students' Union- Revolutionary (ANNISU- 
R), the Maoist-affiliated student wing, accused the 
Government of Nepal (GON) of "breaching" agreements and 
warned it should be ready for "retaliation."  END SUMMARY. 
 
GON SETS CONDITIONS FOR 
DIALOGUE WITH MAOISTS 
------------------------ 
 
¶2.  On July 19, Minister for Information and Communications, 
Dr. Mohammed Mohsin, said the government will hold dialogue 
with the Maoists, but would not initiate talks until the 
Maoists demonstrated a "clear commitment" to achieving 
results.  Mohsin also said the government would not 
compromise on the "monarchy and multi-party democracy" and 
would not give into the demands of the Maoists for a 
constituent assembly.  He appealed to international 
organizations, political parties, civil society and foreign 
countries to "cooperate with the GON" in securing 
negotiations with the Maoists, but dismissed any UN 
mediation. 
 
MAOISTS TO PROCEED "AT ANY COST" 
-------------------------------- 
 
¶3.  In response to Minister Mohsin's comments, Maoist 
Chairman Prachanda said his party would not sit for dialogue 
and dismissed the GON's alleged willingness to hold fresh 
talks as an "illusive publicity stunt."  In a statement 
issued on July 20, the Maoist chairman reiterated his 
party's demand for a constituent assembly and said 
constituent assembly elections were necessary before 
dialogue could be held.  Prachanda once again declared that 
his party would welcome UN mediation to help find an "easy 
and peaceful outlet" for the current political turmoil, 
despite the GON's refusal to invite the UN for mediation. 
Prachanda said his party was ready to move forward with its 
revolution "at any cost" and accused the Government of Nepal 
(GON) of leading the country into "more chaos," and 
attempting to "institutionalize military authoritarianism." 
The local press quoted an unnamed GON cabinet member as 
dismissing Prachanda's statement as "propaganda" and said 
there was a "tremendous willingness" from the Maoists to 
meet for dialogue. 
 
UNCERTAINTY SURROUNDS PEACE TALKS 
--------------------------------- 
 
¶4.  Nepal's political party leaders remain unsure that peace 
talks will resume in light of the daily exchange of words 
between GON officials and Maoist leadership.  Madhav Kumar 
Nepal, General Secretary of the Communist Party of Nepal- 
United Marxist Leninist (CPN-UML) challenged Maoist Chairman 
Prachanda to show his party's sincerity in achieving peace, 
declaring, "...issuing press statements will not help 
resolve problems."  Nepal also opined that the GON should 
initiate talks, and ensure that the dialogue moves in "a 
positive direction."  Rastriya Prajatantra Party (RPP) 
spokesman Roshan Karki was less enthusiastic, however, 
noting that chances of negotiations were slim because the 
GON had ruled out constituent assembly.  The Peoples' Front 
Nepal (PFN) Vice-Chairman accused the GON of not being 
"serious" about holding peace talks with the Maoists.  On 
July 21 Prime Minister Sher Bahadur Deuba reiterated that 
his government would maintain "maximum flexibility," but 
also added that his "elasticity has a limit." 
 
MAOISTS ABDUCT STUDENTS IN VALLEY 
--------------------------------- 
 
¶5.  On July 18, Maoists abducted 50 students and 12 teachers 
from a school within the Kathmandu Valley for a "three-day 
military training course" (Reftel).  Although Maoists have 
forcibly rounded up thousands of students from schools 
across Nepal, this marks the first time that they have taken 
students and teachers from within the Kathmandu Valley.  All 
of the students and teachers were released unharmed on July 
¶20.  While in captivity they were subjected to 13-hour 
political diatribes by district level Maoist leaders. 
Students said the Maoists asked for their support in 
fighting for the "independence of Nepali people."  Most 
students, weary from enduring long walks and hours of 
speeches, admitted they did not comprehend most of what the 
rebels were saying. 
 
MAOIST BOMB KILLS CIVILIAN; 
POLICE NEGLIGENCE BLAMED 
---------------------------- 
 
¶6.  A powerful bomb reportedly left by Maoists killed one 
civilian and injured five others in Kathmandu on July 18. 
Rebels left the bomb on an unattended bicycle outside a 
police post.  According to press reports, the police claimed 
to have been "frantically" searching for the bomb, while 
other reports suggest the police were watching the bicycle 
from their post.  Policemen then allegedly told a vegetable 
vendor to take the bicycle away, at which point the bomb 
exploded.  The following day, Royal Nepal Army (RNA) 
officials ironically issued public warnings not to touch any 
suspicious objects and to immediately report such sightings 
to security forces.  Police were similarly accused of 
negligence and apathy after two bombs placed at the side of 
a road in Kathmandu by Maoists remained there for 24 hours. 
Maoists had planted the bombs as a deterrent after the 
abduction of the teachers and students from a Kathmandu 
Valley school on July 18.  Another bomb blast on July 20 in 
Doti District killed one civilian and two Maoists.  Thirteen 
other people were injured. 
 
HEIGHTENED VIOLENCE 
------------------- 
¶7.  On July 21, Maoist rebels, targeting a private 
helicopter, managed to place an improvised explosive device 
on a helipad in the western district of Kalikot.  The bomb 
exploded as the helicopter landed, killing one police 
officer and injuring four soldiers.  The helicopter was 
being used to deliver food to security forces.  On that same 
day, in the central district of Kapilbastu, a Maoist ambush 
killed a police officer and a soldier.  Seven other security 
personnel reportedly are missing following the early-morning 
clash that lasted four hours.  Seven other police were 
killed by Maoists in other incidents: one in Kailali, whose 
body was discovered on July 22 after being abducted several 
days earlier; two in the Maoist stronghold of Dang on July 
20; one in Banke District on July 21; one in Kalikot on July 
19; one in Mahottari on July 16; and one in Chitwan on July 
¶18. 
 
¶8.  Maoists killed seven civilians this week in separate 
incidents.  On July 19, Maoists killed a farmer in Bara 
District, and another was killed in the western district of 
Dailekh after failing to pay the rebels' demand of USD 500. 
On that same day, insurgents killed a man in Rupandehi, 
accusing him of spying for the government.  The body of a 
man abducted by Maoists in the western district of Dang was 
found on July 19.  On July 16, also in Dang District, 
Maoists reportedly dragged an ill 76-year old man from his 
bed and shot him to death.  (NOTE: This despite one of the 
Maoists 40 policy demands from 1996 including the plank that 
"Orphans, the disabled, the elderly and children should be 
duly honored an protected."  END NOTE.)  On that same day, 
Maoists killed two civilians in the districts of Dhankuta 
and Nawalparasi on charges of spying, and a Nepali Congress 
(NC) cadre in the district of Rautahat. 
 
¶9.  Security forces killed nine Maoists this week: one each 
in Nuwakot District and Taplejung on July 21; another in 
Taplejung on July 20; four in Banke on July 18; three in 
Panchthar, Accham, and Nawalparasi on July 17. 
 
¶10.  According to the Informal Sector Service Center 
(INSEC), a local human rights organization, the Maoists have 
heightened their killing spree in recent days.  Since Sher 
Bahadur Deuba took office as Prime Minister, the Maoists 
have killed 137 people.  INSEC also claims that security 
forces have killed 123 people over the same period.  On 
average, six people are being killed everyday. 
 
MAOISTS THREATEN FAMILES OF SECURITY PERSONNEL 
--------------------------------------------- - 
 
¶11.  Maoists forced 13 families to leave their homes in the 
district of Bardiya because their relatives are working with 
security forces.  The rebels ordered the families to leave 
with only 24 hours notice after failing to persuade their 
relatives to leave the security forces.  In Nuwakot 
District, just north of Kathmandu, Maoists forced six 
families to vacate their houses and subsequently locked up 
the houses.  The rebels are demanding that the villagers 
bring back any family members serving in the security 
forces.  According to locals, over 100 people from the 
village are in the army or police. 
 
¶12.  On July 22, the local press reported that a four-member 
team of the International Committee of the Red Cross (ICRC) 
were prevented from entering a village in Parbat District. 
The ICRC representatives were headed to Lunkhuredeurali 
Village Development Committee (VDC) in the southern part of 
the district to assess the human rights situation there.  A 
group of Maoists told them to turn back. That region of 
Parbat is one of the most affected areas by the Maoist 
insurgency.  Maoists have warned all of the residents in the 
District Headquarters of Phidim in Panchthar, which borders 
India on the east, to vacate immediately.  The rebels 
reportedly are planning protests in the headquarters from 
August 17 to September 8, and warned residents that 
"anything can happen" during that time.  The Maoists have 
announced "peoples' mobilization" programs, vehicle 
blockades, meetings and said they will also capture the 
district headquarters. 
 
ANNISU-R WON'T SIT FOR TALKS 
----------------------------- 
 
¶13.  On January 16, the All Nepal National Independent 
Students' Union- Revolutionary (ANNISU-R), the Maoist- 
affiliated student wing, accused the Government of Nepal 
(GON) of "breaching" agreements and warned it should be 
ready for "retaliation."  Lekhnath Neupane, president of 
ANNISU-R, alleged that killings and "constant abductions" of 
pro-Maoist student leaders by the GON had forced the 
militant group to end efforts for dialogue.  Neupane said 
the GON was ignoring agreements made between the two sides 
and has not created a conducive environment for holding 
talks, despite the GON removing the "terrorist" label from 
the organization.  Neupane also accused the GON of 
continuing to kill ANNISU-R cadres.  A central member of 
ANNISU-R and a former chairman reportedly were killed on 
July 15.  ANNISU-R's demands include free education for 
secondary level students and a reduction of 20 percent in 
tuition at private schools, and the release of information 
pertaining to the whereabouts of missing and detained ANNISU- 
R cadres.   There was no official response from the Ministry 
of Education and Sports. 
 
¶14. ANNISU-R has forced the closure of 47 private schools in 
the far-eastern district of Jhapa since July 17 after 
alleging they were operating without permission.  Over 
15,000 students were affected by the closures. 
 
MORIARTY