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 001493 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT FROM JULY 27 TO 
August 2, 2004 
 
STATE FOR NP, AC, PM 
STATE FOR IN/R/MR 
STATE FOR SA/INS, PM/CBM, PM/PRO 
STATE FOR SA/PPD 
 
¶1.  NEPAL - U.S. 
 
-- U.S. assistance for Nepal's flood victims: "The U.S. 
Ambassador to Nepal James F. Moriarty handed over a 
cheque of U.S.$ 50,000 to Karin Hakensson-Furga, 
representative of International Red Cross and Red 
Crescent Societies to assist the government of Nepal to 
respond to the recent floods and landslides across the 
country. (Government-owned "The Rising Nepal," E/D and 
others, 7/31). 
 
-- "American fund" for new mechanism: According to a 
senior U.S. Embassy source, the U.S. has launched a new 
mechanism to collect information about the present 
dreadful conflict, following the arrival of.the new 
ambassador.  For this, the State Department has already 
allocated a budget... As the former ambassador developed 
strategies base on the information from only a couple 
of so-called America experts, new U.S. Ambassador ]ames 
¶F. Moriarty has been instructed to build up strategies 
by discussing with well-known politicians, 
administrators, journalists, etc. that had participated 
in the Humphrey, Fulbright and IVP programs.  As the 
State Department has already dispatched budget for 
this, a "special duty officer" (Nepali) has also been 
designated.  Moriartv has alreadv started this project 
by having dinners with special iournalists". (Pro-Nepali 
Congress "Deshantar weekly," V/W, 8/1) 
 
-- America seriously concerned over Maoist problem: As 
the breeze of the Maoist problem in Nepal reached the 
U.S., the new U.S. ambassador, ]ames Moriarty, has 
expressed the commitment that his country would solve 
this problem during his tenure... There are several 
reasons why a pro-China Ambassador has been sent to 
Nepal by recalling former Ambassador Malinowski even 
though he still had some time to serve in Nepal.  The 
U.S. has given Moriarty a full authority to end the 
Maoist insurgency in Nepal during his period. 
Ambassador Moriarty has a direct approach, influence 
and relationship with the White House.  He is 
considered as a polished diplomat.  The Republican U.S. 
policy maintains that it doesn't face any danger from 
its well-to-do counterpart nations, but it does so from 
weak countries.  The Maoists have been able to draw the 
U.S.'s attention because of their successful movement 
in Medal .  America is now fully determined to finish 
off the Maoists for once and all. (Leftist "Jana 
Manch," V/w, 8/1) 
 
-- DOA sends Kal Bhairav papers to palace: The 
Department of Archaeology (DoA) on Friday sent 
documents regarding the details of the archaeological 
and historical significance of Kal Bhairav temple to 
the Royal palace after a controversy cropped up over 
the recent conservation works being carried out at the 
temple.  The Kathmandu Va]ley Preservation Trust is 
carrying out conservation work on the shrine of Kal 
Bhairav at Hanumandhoka Durbar Square under a U.S. 
Embassy grant. (Pro-India "The Hlmalayan Times," E/D, 
3/31) 
 
-- Real player oceans away, Deuba and Maoists pawns of 
grand design: "". The main actor of this design is found 
to be a person named Craig Fuller, Managing Director of 
Korn/Ferry International". The roval palace, political 
parties, Deuba and the Maoists have become pawns of 
Fuller's mastermind in such a way that Nepa might have 
to bear a colossal damage in the future"- According to 
the source, ]ulia Chang Bloch was appointed the U.S. 
Ambassador to Nepal on his advice". The new U.S. 
Ambassador, ]ames F. Moriarty, like Bloch, is also 
considered as Fuller's trusted man.  Moriarty had even 
worked at Fuller's firm in the past". Analysts, who know 
well how America is entering Nepal on the ground 
prepared by the Maoist insurgency, claim that the CPN- 
Maolst has become a "pawn" of America, like the 
Talebans had become in Afghanistan". (Centrist 
"Yugpatra," V/W, 7/29) 
 
-- Maoist problem will be resolved during my term: 
"What are America's thoughts on endino the violence and 
civil war in Nepal?  American Ambassador ]ames Francis 
Moriarty has given a long interview to ]ana Aastha. 
This is the first interview to a Nepali-language Paper 
of the new ambassador.  He had urged the political 
parties to join the government during a press 
conference last Tuesday".' (Leftist "]ana Aastha," V/W, 
7/28) 
 
-- No immediate talks: "There are no possibilities of 
immediate talks between the government and Maoists. 
This was due to changes in the tone of PM Deuba and the 
CPN-UML about constituent assembly after they joined 
the government". America and India are trying to break 
the possible alliance between the agitating parties 
including Nepali Congress and for this, the two 
countries have said that they could dismiss the 
incumbent government and ask Nepali Congress to form 
the government".' (Saptahik Aawa], V/W, 7/28) 
-- Nepali works on Librarv of Congress website: 
Prominent Nepali authors have begun recording the 
excerpts of their works for a website of the.South 
Asian Literary Recording Project (SALRP) of the Library 
of Congress, the biggest librarv in the world. To 
celebrate 200 years of its establishment, the Library 
of Congress had initiated the documentation of writers' 
works ln their own voices besides books and magazines. 
(Major dailies, 7/28) 
 
-- U.S. pledges to provide $24.4m grant: The US 
government has pledged to provide additional grant 
assistance of $24.4 million to five various ongoing 
projects.  The total value of these five agreements 
amounts to $187.6 million. Dr Madhav Prasad Ghimire, 
joint secretary at the ministry of finance and ]ames 
Moriarty, U.S. ambassador to Nepal, Donald Clarke, 
director, United States Agency for International 
Development (USAID) today signed agreement amendments 
at a ceremony held at the ministry of finance. (Major 
dailies, 7/27) 
 
¶2.  POLITICAL AFFAIRS 
 
-- Donors want bureaucrats to run Peace Secretariat: 
Even as the government is undecided on the composition 
of Peace Secretariat, donors who have pledged . 
commitment to fund it have made it clear that they 
would not support the secretariat if the government 
packs it with Doliticos". The government has allocated 
about Rs 20 million for the Peace Secretariat and the 
United States Embassy has also pledged a certain amount 
of money under the Peace Bureau. (The Himalayan Times, 
8/2) 
 
-- CPN-UML to quit gout. if peace talks delayed: CPN- 
UML general secretary Madhav Kumar Nepal has threatened 
to pull out of the ruling four-party coalition if the 
government fails to hold peace talks with the Maoist 
rebels soon.  Nepal said, "There is no meaning of our 
remaining in the government if it undermines its first 
task-restoration of peace."  He added that one of the 
major coalition allies, led by the Prime Minister 
himse]f, seems to be de]aying the process. (Centrist 
"The Kathmandu Post," E/D, 8/2) 
 
-- Koirala to rope in parties before talks with 
Maoists: Nepali Congress President GP Koirala Thursday 
said he would initiate talks with political oarties 
includinq those in the government for a collective 
stance before holding dialogue with the Maoists- (The 
Kathmandu Post, 7/30) 
 
¶3.  MAOIST INSURGENCY 
 
-- Maoists set up landmine in road: Hundreds of people 
have been suffering as their movement has come to a- 
grinding halt after the Maoists laid down landmines in 
a busy road section if Pyuthan-Balubang and Rolpa- 
Bhalubang in mid-western Nepal.  The Maoists have fixed 
landmines in several places within the one-kilometer 
section of the road.  Security forces are cleaning the 
area but still some explosive devices are said to be 
active there. (Centrist "Kantipur",  V/D, 8/1) 
 
-- Maoists set to arm locals in west: The Maoists are 
preparing to arm the locals of rural areas of western 
Nepal under their new "people's army movement " 
             .              , 
according to Prabhakar, the Maolsts' politburo member 
and Seti-Mahakali Regional Organization Committee in- 
change.  He also said that the Maoists are in touch 
with Nepali Congress chief Girija Prasad Koirala...'' 
(The Hlmalayan Times, 8/1) 
 
-- Insurgency toll 9,996: The Maoist insurgency, which 
began ln February 13, 1996, has claimed the lives of 
9,996 people in the country as per the latest figures 
available. The number of people killed by the Maoists 
until ]ulv 14 totaled 3,409 while the state accounted 
for the death of 6,587, according to Informal Sector 
Service Center (INSEC). (The Kathmandu Post, 7/29 
 
-- There's been no govt-Maoist talks yet: No dialogue 
has taken place so far between the government and the 
Maoists, Padma Ratna Tuladhar told The Himalayan Times 
today. Tuladhar was one of the four facilitators in the 
previous rounds of talks that failed on August 27 last 
year.  Tuladhar's assertion contradicts claims made by 
several  po]iticians and bureaucrats that the present 
government has made informal contact with the Maoists. 
(The Himalayan Times) 
 
-- Maoist plan: "... According to sources, the Maoists 
plan to expand their military wing to six battalions 
across the country with ten thousand militias in each..." 
(Leftist "]anadharana," V/W, 7/29) 
 
-- KWP and MNF break ties with CPN-Maoists: Two Maoist 
aligned sister organizations have opted to split from 
the mainstream of CPN-Maoists.  The two sister 
organizations of Maoists - Madhesi National Front (MNF) 
and Kirat Workers Party (KWP) - formally decided to 
split from the main body of CPN-Maoists, after they 
found that Maoists leadership did not stop 
discriminating their people on various grounds within 
the party. (Kantipur, 7/27) 
 
MORIARTY