KATHMANDU VALLEY STRIKE OBSERVED; MAOISTS CLAIM

UNCLAS SECTION 01 OF 02 KATHMANDU 002052 SIPDIS SENSITIVE STATE FOR SA/INS AND DS/IP/SA STATE ALSO PASS USAID/DCHA/OFDA LONDON FOR POL - RIEDEL MANILA FOR USAID/DCHA/OFDA E.O. 12958: N/A TAGS: PTER ASEC PGOV CASC NP SUBJECT: KATHMANDU VALLEY STRIKE OBSERVED; MAOISTS CLAIM DOOR OPEN FOR TALKS REF: A. (A) KATHMANDU 2038 ¶B. (B) KATHMANDU 2035 -------------- SUMMARY -------------- ¶1. (SBU) Four people were slightly injured in a series of small explosions in the heart of Kathmandu--including two in or near the Thamel tourist district--October 27. The Maoists' October 28 strike in the Kathmandu Valley and October 27 strike in the southern Terai plains region bordering India were largely observed by the general public. At least 30 Maoists were reported killed when the Royal Nepal Army (RNA) repulsed a Maoist attack on a small airport in the remote northeastern district of Okhaldhunga October 27. An October 24 press statement from the Maoist Central Committee reiterates the insurgent leadership's openness to talks and calls on the King to create an environment conducive to dialogue. End summary. -------------- THAMEL TARGETED -------------- ¶2. (U) In an apparent effort to intimidate the local population into observing the general strike, or "bandh," they had called for October 28 in Kathmandu Valley (Ref B), suspected Maoists set off a series of small bombs within the space of a few hours October 27 in heavily traveled areas of Kathmandu--including, for the first time, the tourist district of Thamel. Although a mid-afternoon bomb placed in a bathroom near a popular pizza restaurant in Thamel blew out the walls of the restroom and some windows of adjoining shops, no injuries were reported. A bomb in the parking lot of a crowded movie theatre (the only English-language cinema in town) a few blocks from Thamel near the Royal Palace injured one Nepali, while a third explosion at a dairy near the Indian and British Embassies injured three. No injuries were reported in a fourth explosion in the historic city of Bhaktapur. -------------- VALLEY, TERAI STRIKES OBSERVED -------------- ¶3. (U) The October 28 strike called by the Maoists for the Kathmandu Valley appears to have been generally observed within the city, with about 65 percent of shops and businesses remaining closed for the day. Commercial and private vehicular traffic was minimal throughout the day, with only the occasional government- or diplomatic-plated vehicle speeding past processions of bicycles and rickshaws. Both Lincoln International School, which is attended by most dependent children at the Embassy and the USAID Mission, and the British School were closed for the day. An October 27 bandh called for the southern plain region (known as the Terai) bordering India was apparently best observed in outlying districts, while business in the larger (and better defended) cities of Hetauda and Nepalgunj seemed less affected. Sources in the Nepal Sadbhavana Party, whose stronghold is in the Terai, told us urban areas of Nawalaparasi, Rautahat and Rupandehi Districts were deserted, with shops closed and no vehicular movement. An NGO source told us almost all shops were open in Nepalgunj (home of the RNA's First Division),however, and motorcycles (but no private cars or jeeps) were plying the streets, although long-distance buses had apparently suspended operations for the day. A businessman in the industrial town of Hetauda in Makwanpur District offered the most encouraging report, telling us that all the shops were open and traffic normal October 27. -------------- OKHALDHUNGA ATTACK -------------- ¶4. (SBU) A large force of Maoists attacked a combined police/RNA post guarding an airport in Okhaldhunga District, 180 miles northeast of Kathmandu, at about 10:30 p.m. local time October 27. According to an RNA source, the security forces succeeded in repulsing the attack, which ended by about 2:30 a.m. October 28. The Maoists, who suffered at least 32 confirmed casualties, did not succeed in penetrating the perimeter. Two RNA soldiers, including the platoon commander, a captain, were killed in the attack. Chief of Army Staff Gen. Pyar Jung Thapa reportedly visited the site and inspected RNA defenses there the previous week. -------------- MORE PARTY PROPAGANDA ON PEACE TALKS -------------- ¶5. (U) A press statement from the Maoist Central Committee, dated October 24, claims that the party "has kept the door for peace talks and negotiation open." The "grave situation" of the country presents two options. Either the King must "demonstrate the kind of sacrifice that could ultimately benefit the nation and the people" by accepting the election of a constituent assembly, with the aim of drafting a new constitution. On the other hand, "if the King, instead of leading the nation toward national unity and people's sovereignty, tries to suppress people by deploying the Royal Nepal Army and an international army . . . then there is no alternative before the people but to go ahead with the historic struggle. . . . Here we would like to make clear that our party is ready for both options." If the King prefers to seek dialogue, the statement puts the burden on him to offer a proposal for a "conducive atmosphere." -------------- COMMENT -------------- ¶6. (SBU) Up to now, the Maoists, despite their fiery anti-foreign rhetoric, have generally not targeted tourist-frequented areas in their campaign. Even though no one was hurt in the October 27 bombing in Thamel and just one person slightly injured in the cinema parking lot bombing the same day, the message was clear. The Maoists clearly have the capability to harm foreigners. In this context, the Maoists' injunction to the King to create a "conducive atmosphere" for dialogue takes on a significantly more threatening tone---and throws into even greater uncertainty the insurgents' sincerity in calling for talks. In view of this unsettling new note, the EAC has reviewed the Embassy's security posture and determined that it is appropriate. We will continue to monitor the security situation with and inform the Department of any significant developments. MALINOWSKI