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

UNCLAS SECTION 01 OF 05 KATHMANDU 001596 
 
SIPDIS 
 
STATE FOR SA/INS AND DS/IP/NEA 
STATE ALSO PLEASE PASS USAID/DCHA/OFDA 
STATE ALSO PLEASE PASS PEACE CORPS HQ 
STATE ALSO PLEASE PASS EU COLLECTIVE 
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: PINS PTER CASC PGOV NP PHUM
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, AUGUST 7- 
AUGUST 13, 2004 
 
 
SUMMARY 
------- 
 
¶1.  A five-member high-level peace committee headed by Prime 
Minister Sher Deuba was formed on August 12 to establish a 
peace secretariat.  The Royal Nepal Army (RNA) launched 
raids in the far-western district of Achham on August 10 and 
¶11.  President of All Nepal National Independent Students' 
Union, a Maoist affiliated student wing, said that they 
would wage a final battle if the government fails to hold 
talks with the Maoists.  GON has made adequate arrangements 
to thwart an economic blockade by the rebels in Kathmandu 
Valley rumored to start August 18, but the Maoists have said 
that the economic embargo was just a rumor.  All Nepal Trade 
Union Federation, affiliated to the CPN (Maoist), demanded 
that dozens of industries shut down.  The European Union 
Presidency called for a renewed ceasfire and expressed 
particular concern about Maoist violence. The Maoist rebels 
continued to attack infrastructure.  Maoists attacked a 
hospital in the mid-western district of Dang.  The rebels 
looted a UN vehicle in Sunsari District.  Security forces 
reportedly killed 31 Maoists this week.  Maoist attacks left 
seven security personnel and six civilians dead.  End 
Summary. 
 
PRIME MINISTER TO HEAD PEACE COMMITTEE 
-------------------------------------- 
 
¶2.  The much-awaited high level peace committee headed by 
Prime Minister Sher Bahadur Deuba was formed on August 12. 
Leaders of all the coalition partners- CPN -UML General 
Secretary Madhav Kumar Nepal, President of Nepal Sadbhavana 
 
SIPDIS 
Party and Minister for Forest and Soil Conservation Badri 
Mandal, President of Rastriya Prajatantra Party Pashupati 
Shumsher Rana and Minister for Information and 
Communications Mohammad Mohsin are members.  The 
spokesperson of GON, Mohammad Mohsin, told the reporters 
that the committee would hold meetings to come up with the 
modus operandi of how it ought to go ahead to make the peace 
process result-oriented.  He added that it would also 
expedite all work to institute the peace secretariat, which 
would be formed in the coming week. 
 
MAOISTS TO TARGET EASTERN DISTRICT HEADQUARTERS 
--------------------------------------------- -- 
 
¶3.  The Maoist chief of Information and Publication Section 
of the eastern district of Sunsari on August 7 informed the 
media persons about a plan to launch a major attack in one 
of the headquarters of the hilly districts of the eastern 
region of Nepal within a month.  The Maoist leader also 
claimed that the impending attack would be a next big hit 
after the Bhojpur incident, which took place on March 2. The 
Maoist leader also informed the media people of forming a 
district people's government in foreseeable future, and that 
central level leaders have already arrived in Sunsari 
District. 
 
ARMY RAIDS MAOISTS' HIDEOUTS IN ACHHAM 
-------------------------------------- 
 
¶4.  The Royal Nepal Army (RNA) launched raids in a remote 
mountainous district of Achham, about 600 kilometers west of 
Kathmandu, on August 10 and 11.  Colonel Yagya Bahadur 
Rajaure of the RNA's Western Division Headquarters in 
Nepalgunj told the reporters that the army received 
information that top rebel leaders were gathering in the 
district for a rally.  Hundreds of RNA troops raided Kamal 
Bazaar and Binayak area of Achham District.  The RNA decided 
to go on the offensive against the Maoists after learning 
about Maoists using ultra modern weapons at Binayak, and 
that thousands of rebels had gathered there for a big 
assembly planned for August 11.  A senior RNA official told 
The Rising Nepal, a state-run newspaper, on August 11 that 
no clash had taken place so far and the people were safe. 
 
MAOIST STUDENT LEADER TALKS OF DECISIVE WAR 
------------------------------------------- 
 
¶5.  President of All Nepal National Independent Students' 
Union-Revolutionary (ANNISU-R), Lekhnath Neupane, said in a 
press conference in the central district of Makwanpur that 
if the government does not come to talks without conditions 
accepting the demands of the insurgents, then they would 
wage a final battle against the government and the RNA. 
Neupane added that they were setting up a brigade to 
reinforce the activities in the "Ring Area" surrounding 
Kathmandu Valley. 
 
¶6.  The press statement issued by the Ministry of Education 
and Sports on August 11 has invited All Nepal National 
Independent Students' Union-Revolutionary (ANNISU-R) for a 
dialogue to find a lasting solution to all educational 
problems.  The Ministry statement has also called on the 
Maoist students to stop violence in educational 
institutions, and stop abduction of teachers and students. 
 
GOVERNMENT READY TO TACKLE MAOIST EMBARGO, IF IT HAPPENS 
--------------------------------------------- ----------- 
 
¶7.  The Maoists' Nuwakot-Rasuwa-Sindhupalchok Unified 
District Committee stated in a press release that they would 
block all the entry points leading to Kathmandu Valley 
starting August 18 for a period of three weeks, and not 
allow any vehicle to operate on roads leading to Kathmandu. 
The Home Ministry spokesperson Gopendra Bahadur Pandey told 
the media on August 11 that the government had made 
"adequate" and "reliable" security arrangements to thwart 
the three-week economic embargo called by the Maoists. 
However, on August 12, the Maoists denied reports published 
in different newspapers regarding an "indefinite blockade" 
called by them from August 18.  The Maoists' district 
people's committees of Dhading, Rasuwa and Nuwakot issued a 
press statement saying they have not called a blockade in 
those districts, and have appealed to civilians not to get 
terrified by such propaganda. 
 
MAOISTS DEMAND INDUSTRIES CLOSE 
------------------------------- 
 
¶8.  All Nepal Trade Union Federation (ANTUF), affiliated to 
the CPN (Maoist), releasing a press statement on August 11, 
demanded dozens of industries including Hotel Soaltee, Surya 
Nepal Private Limited, and Bottlers Nepal to shut down from 
August 17 for a an indefinite period or else the plant and 
safety of the workers would be at risk.  The press release 
alleged that these industries are engaged in exploiting the 
workers and spying on them.  The threats are also connected 
to some of the companies' non-payment of extortion demands. 
¶9.  The district committee of ANTUF has demanded through a 
press release that Surya Nepal Limited based in Bara 
District in central Terai shut down as of August 17.  Saying 
that the ownership of Surya Nepal Limited, a tobacco 
company, lies with the main person of the present 
establishment, ANTUF alleged that Surya Nepal has 
discriminated and exploited the workers, and are constantly 
against the "Peoples' War" launched by the CPN (Maoist). The 
press release also requested that the employees and workers 
make an alternative arrangement.  In response to the Maoist 
press release, Nepal Independent Laborers' Union (NILU), the 
official trade union of Surya Nepal Limited, appealed to the 
Maoists through a press statement to withdraw their demand 
of an indefinite strike, as it would directly affect the 
lives of more than 500 employees whose monthly wages are 
their only source of income.  Also the workers of Bottlers 
Nepal Limited appealed to ANTUF to call off the indefinite 
closure of factories beginning on August 17. 
 
EUROPEAN UNION CALLS FOR CEASEFIRE 
---------------------------------- 
 
¶10.  The Presidency of the European Union (EU) has called on 
the conflicting parties, including the Maoists, to declare a 
ceasefire as soon as possible and create a climate for a 
meaningful and lasting peace process.  A press statement 
issued by the Royal Danish Embassy on behalf of EU in 
Kathmandu on August 10 said the EU was ready to support the 
government to create environment for peace talks.  The EU 
has also called on all the conflicting parties to respect 
human rights, and have appealed to the Maoists to 
immediately stop terrorist attacks, the use of child 
soldiers, abduction and forced indoctrination, extortion and 
violent activities. 
 
MAOISTS ATTACK INFRASTRUCTURE 
----------------------------- 
 
¶11.  The Maoist rebels reportedly bombed a minor customs 
office at Mathiya Village Development Committee (VDC) in the 
central district of Rautahat on August 8.  The insurgents 
also exploded a bomb in the office of the Simrik Air causing 
minor damage to windows, doors and walls. In yet another 
incident, a group of Maoists detonated bombs inside two 
civilian houses in Rupandehi District on August 9.  The 
rebels dragged all the people out of the houses before 
exploding pressure cooker bombs.  The rebels also detonated 
a powerful bomb inside the house of Bijay Raj Bhattarai, 
Secretary at the Ministry of Land Reforms, in Chitwan 
 
SIPDIS 
District on August 10.  The rebels set ablaze a vehicle of 
National Bardiya Park in the mid-western district of Bardiya 
on August 11. 
 
MAOISTS OPEN FIRE INSIDE HOSPITAL 
--------------------------------- 
 
¶12.  The Maoist insurgents reportedly attacked the Mahendra 
Hospital in the mid-western district of Dang on August 10. 
Bullets shattered the hospital's windows; hit the emergency 
room and maternity ward, forcing everyone there to run for 
cover.  The shooting occurred when a police officer went to 
pick up sick personnel in the hospital.  The Maoists fired 
shots that triggered the exchange of fire.  No human 
casualty has been reported. 
MAOISTS LOOT UN VEHICLE 
----------------------- 
¶13.  The Maoist rebels looted a motorcycle belonging to the 
UN and abducted a UN staff, who was riding the motorbike in 
Sunsari District on August 3.  The UN staff was released on 
the same day.  In yet another incident, the insurgents 
seized a camera and notebook of a journalist in Dailekh 
District on August 9. 
 
DEATH TOLL CONTINUES TO RISE 
---------------------------- 
 
¶14.  Seven security personnel reportedly died in Maoist- 
related violence this week: 
 
-- Assistant Sub-Inspector of police was shot dead by the 
insurgents in Parsa District on August 11. 
-- A security personnel was killed in crossfire in Panchthar 
District on August 9. 
-- The Maoists killed two security personnel after abducting 
them in Kapilbastu District on August 9. 
-- Rebels shot and killed one Royal Nepal Army (RNA) soldier 
and injured two others in the mid-western district of 
Surkhet August 8. 
-- A police personnel was killed in Panchthar District on 
August 8. 
-- Five security personnel were injured in a Maoist attack 
in Jumla District, and another in Chitwan District on August 
¶8. 
-- The rebels abducted and then shot dead one RNA soldier in 
Dhankuta District on August 6. 
 
 
¶15.  Security forces reportedly killed thirty-one Maoists 
this week: 
 
-- two Maoists were killed by the security forces in Bara 
District on August 11. 
-- five rebels were killed in the far-western district of 
Bajura on August 10. 
-- two Maoists were shot dead in Tehrathum District on 
August 9. 
-- one Maoist was killed in the eastern district of 
Panchthar on August 9. 
-- one each in Kailali and Siraha on August 8. 
-- two in Humla District on August 7. 
-- six rebels were shot dead in Jumla District on August 8. 
-- two were killed in Dhanusa District on August 6. 
-- one each died in Dhankuta and Siraha on August 7. 
-- two Maoists died while setting up a landmine in Nuwakot 
District on August 6. 
-- two rebels were shot dead in the western district of 
Baglung on August 4. 
-- one each in Sunsari and Udayapur on August 6. 
-- one in Sarlahi on August 5. 
¶16.  According to local press reports, Maoists claimed the 
lives of six civilians this week: 
 
-- Former District Development Committee (DDC) Chairman of 
Kailali District was severely injured in a Maoist attack on 
August 12. 
-- Two civilians were killed in a stray bomb explosion in 
Dhading District on August 11. 
-- One civilian was killed in Dailekh District on August 10. 
-- One civilian was injured in a Maoist-laid mine explosion 
in Chitwan District on August 9. 
-- A 15-year-old boy was abducted and killed by the Maoists 
on August 7. 
-- A driver of a passenger bus was killed when the rebels 
detonated a bomb inside the bus in Kailali District on 
August 11. 
-- One civilian was shot dead in Pokhara, Kaski, on August 
¶11. 
 
 
MORIARTY