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

011146Z Sep 04

C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 001752 
 
SIPDIS 
 
STATE FOR SA/INS, DS/IP/SA 
NSC FOR GREEN/DORMANDY 
LONDON FOR POL-BELL 
 
E.O. 12958: DECL: 09/01/2014 
TAGS: PGOV ASEC CASC NP
SUBJECT: NEPAL: SITREP NO. 1: MOB VIOLENCE IN REACTION TO 
KILLING OF NEPALI HOSTAGES IN IRAQ 
 
REF: KATHMANDU 1748 
 
Classified By: Ambassador James F. Moriarty, Reasons 1.4 (b/d) 
 
SUMMARY 
-------- 
 
¶1. (U) Enraged Nepalis took to the streets all around 
Kathmandu on September 1 in reaction to the news about the 
August 31 murder of the twelve Nepali hostages in Iraq.  They 
have targeted the largest mosque, Muslims, and manpower 
agencies; they have not targeted the United States.  The GON 
called a curfew effective 2:00 pm local time, which got 
people off the streets and should allow emotions to cool 
down.  The Government also declared that September 2 will be 
a National Day of Mourning and educational institutions and 
government offices will be closed.  END SUMMARY. 
 
¶2. (U) The EAC met at 11:00 am local time (reftel) and again 
at 3:30 pm (septel). 
 
DEMONSTRATIONS TURN UGLY 
------------------------ 
 
¶3. (U) Mobs gathered around the Jame Mosque near Ratna Park, 
the usual location for demonstrations, and set it on fire; 
armed police force members, however, have now secured the 
mosque and doused the fire.  Demonstrators also set fire to 
the Qatar Airlines Office and Space Time cable, which is 
owned by a Muslim.  In addition, protesters attacked Nabil 
Bank, reportedly because of its Muslim connections.  People 
have attacked houses where they suspect Nepali Muslims or 
Pakistanis live.  Mobs also targeted all manpower agencies - 
on the grounds that they facilitated the presence of Nepali 
workers in Iraq - looting and destroying premises, at times 
also torching them.   The mobs have set cars on fire, burned 
mounds of tires in the streets, and thrown rocks at different 
targets.  The mob also attacked Kantipur news. 
 
¶4. (U) In other parts of the country, reaction has been 
mixed.  In Pokhara, protests are occurring, but they are not 
disturbing public life.  Some, but not all, shops are closed. 
 In Bhairahawa, shops and the American Center library are 
open, however they will close for a protest scheduled for 
5:00 pm local time.  In Biratnagar, some shops are closed, 
but government offices and our American Corner library are 
open. 
 
GOVERNMENT RESPONSE 
------------------- 
 
¶5. (U) The Government called an indefinite curfew effective 
2:00 pm local time.  The Royal Nepal Army (RNA), which is 
responsible for enforcing curfews, reported that the streets 
were now quiet, except for a few pockets, which it had 
dispersed.  Prime Minister Shah Bahadur Deuba addressed the 
nation this afternoon.  The Prime Minister said that this was 
a tragic time, but urged people to be patient.  He asked 
people not to target any community because terrorists do not 
have any religion nor do they know any boundary.  He 
announced that the GON will pay immediate compensation to the 
families of the victims (one million rupees per family - 
about USD 13,000).  He declared that September 2 would be a 
national day of mourning for the twelve Nepalis; schools and 
GON offices will be closed in their remembrance.  The Embassy 
will observe the day of mourning, and will only have a 
reduced staff come in. 
 
¶6. (U) While most flights from India were canceled, some 
domestic and international flights had arrived.  The RNA 
escorted tourists to hotels and other incoming passengers to 
their homes.  The Government canceled the Confederation of 
Nepalese Industry Partnership Summit that was to take place 
on September 2.  (Malaysia's former Prime Minister Mohammed 
Mahathir and the Thai Deputy Prime Minister were scheduled to 
fly in.) 
 
COMMENT 
------- 
 
¶7. (C) The curfew should help the GON get the situation back 
under control.  An MFA contact noted, however, that it would 
have been better if the GON had called the curfew earlier. 
The issue of the Nepalese hostages had been front page news 
from the start.  There were widespread calls for the GON to 
act against Moonlight, the manpower agency involved. 
Although the GON had to date not done so, the Prime Minister 
confirmed in his address that the GON would prosecute those 
guilty of sending Nepalis to Iraq. 
 
¶8. (C) Although GON policy prohibits Nepalis from working in 
Iraq, many Nepalis are currently working there.  The 
Department of Labor could not provide any numbers because 
laborers do not register with them, but an estimated 15,000 
-20,000 Nepalis could be working in Iraq.  The MFA puts the 
number at no less than 12,000.  If this is the case, the 
violent reaction could also reflect a fear that more Nepalis 
are vulnerable and could also become victims.  Noting that 
there are 400,000 Nepalis working in the Gulf, including 
80,000-100,000 workers in Qatar, the MFA contact worried that 
there could be a backlash in those countries to Nepal's 
violent response.   The executions also demonstrated an ugly 
anti-Muslim undercurrent that normally lies well below the 
surface in Nepali society. 
MORIARTY