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 001670 
 
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 
MANILA FOR USAID/DCHA/OFDA 
LONDON FOR POL/BELL 
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 14- 
AUGUST 20, 2004 
 
 
SUMMARY 
------- 
 
¶1.  The Maoists have imposed a virtual blockade of roads 
leading to and from the Kathmandu Valley since August 18. 
Traffic remains very light on the roads, no incidents have 
been reported and no Maoists have been spotted.  Tourism- 
related organizations have raised serious concern over the 
Maoist imposed blockade.  More than dozen industries have 
shut down indefinitely from August 17 following the threats 
from All Nepal Trade Union Federation (ANTUF), affiliated to 
the CPN (Maoist), and the August 16 bombing of the Soaltee 
Hotel.  The Industrial Security Group (ISG) urged the 
Maoists to withdraw their threat to industry.  The GON has 
kept security agencies on high alert to maintain law and 
order and to protect lives and property.  The assassination 
of a journalist by the Maoists and threat against nine other 
journalists drew nationwide condemnation.  Nepal and India 
started joint search operations along the India-Nepal border 
to prevent free movement of Maoist rebels.  Maoists continue 
to abduct civilians.  Security forces reportedly killed 
thirteen Maoists this week.  Maoist attacks left six 
security personnel and eight civilians dead.  End Summary. 
 
MAOIST IMPOSE INDEFINITE BLOCKADE IN KATHMANDU VALLEY 
--------------------------------------------- ------- 
 
¶2.  The CPN (Maoist) Dhading-Nuwakot-Rasuwa Joint 
Revolutionary People's Council Nepal and Dhading-Nuwakot- 
Rasuwa Joint District Committee issued a press release on 
August 9 calling for an indefinite economic embargo in the 
Kathmandu Valley; it demanded that all vehicles stop 
entering or leaving the Valley from August 18.   Since the 
18th, traffic has been light - a few buses, trucks and light 
vehicles have been in operation on those routes, according 
to spokesperson Gopendra Bahadur Pandey of the Ministry of 
Home Affairs.  The Maoists have demanded an impartial 
investigation of the killings of their comrades, information 
on those arrested by the security forces and their immediate 
release.  Reportedly, the Maoists are gradually intensifying 
their activities in an around the capital to make their 
demands heard. 
 
¶3.  Fourteen tourism organizations raised serious concerns 
over the Maoist-imposed blockade, as the tourism sector has 
already been hard hit by the longstanding insurgency in the 
country. 
 
BLOCKADE CONTINUES ON MAIN HIGHWAYS 
----------------------------------- 
 
¶4.  The blockade continues on the main highways leading to 
the Kathmandu Valley.  However, there have been no reports 
of any violence on the roads.  According to the Thankot 
Police Post, which is the main entry point to the Valley, 13 
buses, 17 trucks, three oil tankers, 136 light vehicles and 
91 motorcycles passed Thankot from Kathmandu between the 
evening of August 19 and the morning of August 20.  The 
Thankot Police Post also said that 42 buses, 22 trucks, four 
oil tankers, 117 light vehicles and 95 motorcycles entered 
the Valley within the same period.  Similarly, according to 
Balaju Police Post, which is the main entry point to the 
Valley from Nuwakot District (to the north), three buses, 
four trucks, four light vehicles and 12 motorcycles entered 
the Valley on the morning of August 20, and at the same 
time, one bus, 12 light vehicles and nine motorcycles left 
the Valley for Nuwakot. 
 
MAOISTS CONTINUE ATTACKS AGAINST GOVERNMENT FACILITIES 
--------------------------------------------- --------- 
 
¶5.  The insurgents detonated a powerful bomb near the police 
post in Bhaktapur on the morning of August 20.  No 
casualties were reported.  The Maoists also detonated a bomb 
in front of the Land Revenue Office at Dillibazaar in 
Kathmandu, and shot a policeman on duty at the same location 
the morning of August 20.  The Maoist rebels set fire to a 
truck heading towards Butwal on the Mahendra Highway from 
the western district of Kapilbastu on August 19 for defying 
the Maoists' call for a day long shut down in the district 
to protest the killing of some of their cadres.  On that 
same day, the rebels torched a vehicle of Narayani 
Irrigation Development Project in Rupandehi District, and a 
tractor in the central district of Dolakha. 
 
MAOIST THREAT PROMPTS INDUSTRIES TO SHUT DOWN 
--------------------------------------------- 
 
¶6.  More than dozen industries, including multinationals, 
have shut down indefinitely since August 17 following the 
threats from the ANTUF-Revolutionary.  The Maoists accused 
those industries of exploiting their workers.  The shutdown, 
despite government assurance of adequate security, has 
directly affected the livelihood of over 3,000 workers and 
their family members.  Despite Maoist rhetoric on behalf of 
workers, the laborers have deplored the surprise indefinite 
closure of the industries, saying it would only worsen their 
lives.  The Nepal Free Hotel Trade Union and Nepal Tourism 
and Hotel Employees' Association have called upon the ANTUF- 
R to withdraw the indefinite strike. 
 
¶7.  On August 14, the Industrial Security Group (ISG), 
representing the Embassies of the United States of America, 
the United Kingdom, France, Germany and India as well as 
binational chambers of commerce, urged the Maoists to 
retract their threats against the companies.  The statement 
also said that the Maoist threats for interrupting the 
functioning of the companies would severely affect the 
confidence of foreign investors, and could negatively impact 
future investment in Nepal.  The ISG issued another 
statement August 20 condemning the August 16 bomb attack on 
the Soaltee Hotel, which resulted in the closure of the 
hotel.  The ISG urged that these businesses be allowed to 
conduct their operations without interruption. 
 
GOVERNMENT TO KEEP SECURITY ON HIGH ALERT 
----------------------------------------- 
 
¶8.  The GON has directed all the security agencies, 
including the district and regional administrations, to be 
on high alert to maintain law and order and protect the 
lives and property of the people.  The Home Ministry issued 
a press statement seeking the cooperation of civil society, 
political parties, businessmen, transport entrepreneurs, 
industrialists and media in its bid to maintain law and 
order in the country. 
 
MAOISTS KILL JOURNALIST-CUM-HUMAN RIGHTS ACTIVIST 
--------------------------------------------- ---- 
 
¶9.  The Maoists assassinated Dekendra Raj Thapa, a 
journalist-cum-human rights activist, in the mid-western 
district of Dailekh on August 11.  Thapa was a reporter for 
the state-owned Radio Nepal and also an advisor to the Human 
Rights and Peace Society (HURPES), a Nepali NGO.  Murdered 
for allegedly "spying for the security forces" against the 
Maoists, Thapa's killing has drawn international 
condemnation.  Ten organizations, including the Federation 
of Nepalese Journalists (FNJ) and human rights 
organizations, have denounced and condemned the rebels for 
murdering Thapa.  Reporters Without Borders (RSF) also 
expressed shock and rage at the murder.  As a result of the 
killing, RSF listed Prachanda, Chairman of the CPN (Maoist) 
party in their worldwide list of 37 "predators of press 
freedom," a list that also includes Nepal's King Gyanendra. 
Amnesty International has also strongly condemned the 
killing of Thapa, and has asked the Maoists to provide 
evidence of his spying and the process by which the 
"charges" against him were proven. 
 
NEPAL, INDIA START JOINT SEARCH OPERATION ALONG BORDER 
--------------------------------------------- --------- 
 
¶10.  Nepalese and Indian security forces on August 19 
started joint security operations along the Nepal-India 
border to prevent the free movement of Maoist rebels.  The 
joint operations are tied to an information-sharing network 
between India's Special Services Bureau (SSB) and Nepal's 
Unified Command.  According to local press reports, the 
joint operation will focus on ways to prevent arms smuggling 
into Nepal by the rebels.  The focus areas include the 
border areas of Rupandehi, Kapilbastu and Nawalparasi 
districts in Nepal, and Maharajgunj, Siddarthnagar and 
Balrampur areas in the Indian state of Uttar Pradesh. 
 
MAOISTS CONTINUTE TO ABDUCT CIVILIANS 
------------------------------------- 
 
¶11.  Maoists abducted one civilian in Jhapa District and 
five others from Terhathum District on August 17.  The 
rebels also abducted 450 students from a school in Ramechhap 
District on August 16.  The students were reportedly forced 
to participate in a Maoist function in an unidentified 
location.  The insurgents have also kidnapped around six 
dozen students from several schools in Palpa District for 
"indoctrination" on August 13. 
 
MAOISTS TARGET SON AFTER MURDERING FATHER 
----------------------------------------- 
 
¶12.  After the killing of 61-year-old man on August 15, the 
rebels on August 19 issued a death threat to his fifteen- 
year-old son, Indrajit Roka, in the western district of 
Baglung.   The Maoists also warned others of dire 
consequences should they try to protect him.  Indrajit had 
managed to escape the Maoists after he was forced to witness 
the brutal murder of his father. 
 
DEATH TOLL CONTINUES TO RISE 
---------------------------- 
 
¶13.  Six security personnel reportedly died in Maoist- 
related violence this week: 
 
-- Four security personnel were injured when Maoists hurled 
socket bombs at a security patrol in Palpa District on 
August 18. 
 
-- An Assistant Sub-Inspector of Police sustained serious 
injuries after Maoists shot him in Sunsari District on 
August 17. 
 
-- Three security personnel were injured when the Maoists 
triggered a blast targeting a police van in Chitwan District 
on August 15. 
 
-- Maoist rebels shot dead a Royal Nepal Army (RNA) soldier 
in Makwanpur District on August 14. 
 
-- A police constable was killed in a Maoist-laid ambush in 
the central district of Mahottari on August 14. 
 
-- Maoists shot dead an RNA soldier in Dhankuta District on 
August 14. 
 
-- Three security personnel died and one was injured in a 
clash with Maoist militants in Kanchanpur District on August 
¶13. 
 
-- Two security personnel were injured in a Maoist-laid 
ambush in the western district of Palpa on August 13. 
 
¶14.  Security forces reportedly killed thirteen Maoists this 
week: 
 
-- Three Maoists were killed in Kanchanpur District on 
August 17. 
 
-- On August 16, four Maoist rebels were killed in an 
encounter with the security forces in Siraha District, and 
one in Kaski District. 
 
-- One Maoist died at the hands of angry villagers in Morang 
District on August 15. 
 
-- On August 13, two rebels were shot dead in Bajura 
District, and one in Solukhumbu District. 
 
-- Locals spotted the body of a Maoist in Panchthar District 
on August 13. 
 
¶15.  According to local media reports, Maoists claimed the 
lives of seven civilians this week: 
 
-- The chief of the Nepal Red Cross Society, Ilam chapter, 
was killed by the Maoists in Ilam District on August 18. 
 
-- A twelve-year-old boy died and three others were injured 
when Maoists detonated a socket bomb in Chitwan District on 
August 15. 
 
-- On August 15, one civilian was killed and two others were 
injured in Morang District. 
 
-- A civilian was killed in Dang District on August 14. 
-- One civilian was killed in a Maoist-planted bomb 
explosion in Mahottari District on August 14. 
-- Maoist shot dead one civilian in Sarlahi and another in 
Makwanpur District on August 13.