NEPAL: UPDATE ON MAOIST ACTIVITIES, DEC 07-13

UNCLAS SECTION 01 OF 04 KATHMANDU 002369

SIPDIS

STATE FOR SA/INS AND DS/IP/NEA
STATE ALSO PLEASE PASS USAID/DCHA/OFDA
USAID FOR ANE/AA CORDON WEST AND JIM BEVER
MANILA FOR USAID/DCHA/OFDA
LONDON FOR POL/REIDEL
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

SENSITIVE

E.O 12958: N/A
TAGS: PTER PHUM CASC PGOV IN NEPAL'>NP
SUBJECT: NEPAL: UPDATE ON MAOIST ACTIVITIES, DEC 07-13

REF: (A) KATHMANDU 2316

(B) KATHMANDU 2151
(C) KATHMANDU 2301


1. (U) Summary: While the Government of NEPAL explored
opportunities for peace talks this week, Maoist attacks on
passenger buses, schools and other non-military targets
continued to kill and injure civilians. Violence and
extortion prompted hundreds of additional NEPALis to join
the thousands already displaced internally, and tens of
thousands are reported to be fleeing to India. Maoists
destroyed conservation research facilities in the Annapurna
region, and the World Bank called off several development
projects in Midwestern NEPAL. An American citizen received
an extortion letter. Political parties and NGOs denounced
the Maoist-called educational strike and continuing
violence against civilians, while human rights
organizations criticized the army for the death of several
minors. End summary.

GON IN TOUCH WITH MAOISTS
--------------


2. (U) Saying that "security matters need not be
transparent to the public," Home Minister Dharma Bahadur
Thapa told reporters that his government is in touch with
the Maoist insurgents through a group of human rights
activists, and is exploring the opportunity for official
talks. The minister called upon the insurgents to inform
the government of their agenda and to come to the
negotiation table.

PASSENGER BUSES UNDER ATTACK;
MAOIST INCIDENTS INCREASE IN UPADAYA
--------------


3. (U) At least five people were killed and 30 others
injured in a December 8 landmine attack on a passenger bus
in eastern Sindhuli district. The front of the bus was
completely destroyed in the attack, which killed three
civilians and two members of the security forces.


4. (U) Charging that buses have been carrying security
personnel, Maoists reportedly have stopped all public
transportation on two sections of highway in central
Nuwakot and Makwanpur districts, forcing local residents to
walk for several hours in order to sell produce at the
nearest markets. In western Surkhet district, Maoists have
threatened to start collecting "donations" of 25,00O Nrs
(320 USD) from all buses traveling from the district
capital of Birendranagar.


5. (U) One passenger died and six were injured on December
11, when Maoists opened fire on a moving passenger bus
traveling through southern Udayapur district to Biratnagar.
The southern district has been experiencing increased
Maoist activity since last week's attack in neighboring
Siraha district (ref A). Vehicular traffic came to a
standstill on the district's highway on November 11 when
Maoists destroyed a 15-meter long bridge, and villagers in
the area reported that the insurgents have been setting up
ambushes and burning vehicles along the road since December

8. On December 9, Maoists looted seven houses in two
villages, taking cash, silver and gold, saying that they
were responsible for the Siraha attack.

VIOLENCE AGAINST SCHOOLS, CIV
ILIANS
--------------


6. (U) On December 7, Maoists threw a socket bomb into the
compound of the Peace Zone Secondary School in southeastern
Sunsari district, destroying two buses and injuring a 14
year-old student. On December 8, in northeastern Terhathum
district, an eight year-old boy was killed and his sister
was injured by a Maoist bomb planted in the field where
they were herding family livestock.


7. (U) On December 10, Maoists set fire to one school and
beat the headmaster of another in western Kailali district.
Two buses were destroyed by petrol bombs at a school in
Biratnagar, southern Morang district, on the same day.
Though classes were in session at the school when Maoists
threw the bombs into the compound, no students were injured
in the attack.


8. (U) Eleven civilians were injured on December 7 when
Maoist rebels detonated a pressure cooker bomb in Lalitpur,
three kilometers south of Kathmandu's Ring Road. The local
committee of the Maoist-affiliated All-NEPAL National
Independent Student Union-Revolutionary (ANNISU-R) has
claimed responsibility, and has called for other Lalitpur
restaurants to shut down.

MAOISTS TERRORIZE MARKETS
--------------


9. (U) In Mangalbare bazaar in eastern Ilam district, 30-35
insurgents cordoned off the market for nearly four hours on
the afternoon of December 7, and collected a "donation" of
over 50O,O00 Nrs (6400 USD) from local merchants. One
merchant who opposed the Maoists was severely beaten, and
most of the shopkeepers have fled to the district
headquarters as a result of the daylight raid.

10. (U) Businesses in Sangutar, central Ramechhap district,
have been closed for one week in response to Maoist
threats. According to press reports, the local insurgents
instructed businessmen to abandon their shops and leave the
village. Pharmacies and other shops have closed, and
residents have been unable to purchase medicine or other
essential items. Villagers are surviving on unprocessed
grain, since the local food mill has also been shut down by
Maoist threats.

MORE FAMILIES INTERNALLY DISPLACED;
TENS OF THOUSANDS MORE FLEEING TO INDIA
--------------


11. (U) Officials at the border police post at NEPALganj,
western Banke district, counted more than 8,000 NEPALis
crossing into India during December 4-11, the highest
weekly total ever recorded. In Rupediya, the Indian town
just across the border, one bus operator told reporters
that he has more than doubled his fleet to accommodate the
emmigrating NEPALis. According to the moderate weekly
"NEPALi Times," similar scenes take place in towns all
along the open border with India every day. Those leaving
reportedly range in age from infants to the elderly, but
most are able-bodied men. Though seasonal labor in India
is traditional employment for many NEPALis, migrants
interviewed by the "NEPALi Times" say they are going to
India for security, not simply temporary employment, and
many have no intention to return to their homeland until
NEPAL's security situation improves.


12. (U) Maoists in western Kailali district have forced 163
families of security personnel to leave their homes at
harvest time, abandoning crops and livestock. The
displaced families stated that insurgents did not allow
them time to pack clothes or supplies before locking them
out of their houses. They have settled in the district
headquarters, and most are forced to borrow money to pay
daily expenses. Demands for monetary donations by groups
of armed Maoists in southern Morang district have prompted
familes to flee their homes for the relative safety of the
district capital.

ACAP OFFICES ATTACKED AGAIN;
ANNAPURNA TOURISM AFFECTED
--------------

13. (U) Maoists attacked the Annapurna Conservation Area
Project (ACAP) in Ghandruk for the second time on November
9, burning several years' worth of research records an
d
destroying the remaining facilities. The offices, located
at the Annapurna base camp, were previously looted by
Maoists on November 8 (ref B). Damage from the Ghandruk
attacks is estimated at 3.5 million Nrs (45,000 USD). On
the same night, Maoists entered the ACAP offices at Siklis,
poured cooking fuel from the kitchen over the project's
files and set them ablaze. Sources at the King Mahendra
Trust for Nature Conservation, the parent organization for
ACAP, report that several project offices along the
Annapurna trekking circuit have been looted and burned by
the insurgents over the past few weeks.


14. (U) Tourism in the popular trekking area has declined
by almost 60 percent following the attacks, according to
press reports from the region. Officials at the base camp
office told reporters that fear of the insurgents has
prompted many local residents to abandon their businesses
and leave the village. News reports from the area state
that most remaining villagers rarely venture outside their
homes, and that tourists "have become cautious and control
their movement even during the day." Office personnel, who
stayed in Ghandruk hoping for the security situation to
improve, are considering shifting the office to another
location for safety.

WORLD BANK HALTS DEVELOPMENT PROJECTS
--------------


15. (U) The World Bank reportedly has halted construction
of nine irrigation projects in midwestern NEPAL, though
some of the projects were 90 percent complete and millions
of rupees have already been invested. Tight restrictions
imposed on explosives by security forces have prevented the
Bank from completing the projects, which would have
provided irrigation to tens of thousands of farmers.

AMCIT BUSINESS RECEIVES EXTORTION LETTER
--------------


16. (SBU) On December 2, the Amcit owner of a carpet
factory in Kathmandu reported to the Embassy that she had
received a Maoist extortion letter demanding 500,000 Nrs
(6400 USD). In a meeting with ConOffs and A/RSO, the Amcit
indicated that she had heard from other American business
owners that they had received similar letters. A/RSO
confirmed that the letter conforms to similar demand
letters sent to businesses, schools and agencies throughout
the Valley. ConOff and A/RSO briefed the Amcit on personal
security and asked her to keep in close contact with the
Embassy regarding this issue.

PARTIES DENOUNCE VIOLENCE AGAINST MEMBERS
--------------


17. (U) On December 6, Maoists kidnapped and beheaded CPN-
UML member and former VDC Chairman Shital Das Chaudhary in
western Kailali district. On December 8, stating that the
Maoists had broken an agreement not to attack party
members, the CPN-UML standing committee said that they
could no longer cooperate with the Maoists against the
palace-appointed government. "Though other parties have
called for the Maoists to support the drives against the
royal moves, we cannot work with them until they stop the
violence in this country," said a member of the standing
committee. Also on December 8, the student wing of the
CPN-UML protested the Maoist-called indefinite strike
against Kathmandu Valley schools (ref C).


18. (U) The People's Front of NEPAL and the All NEPAL
Peasants' Association (ANPA) strongly denounced a Maoist
attack on the family of one of their activists, warning the
insurgents to "immediately cease violent activities," or
"face serious consequences." On November 28, eight Maoists
broke into the house of Dila Ram Acharya, Secretary General
of the ANPA, demanded food from his family and threatened
him with abduction.

NGO CONDEMNS MAOIST ATTACK
--------------


19. (U) Anti-Slavery International (ASI),a London-based
human rights organization working to assist the former
bonded laborers of western NEPAL, condemned the Maoist
attack on a training center run by Backward Society

Education (BASE). According to an NGO spokesperson,
Maoists damaged 7O0,00O Nrs (9000 USD) worth of property in
the attack, which took place on the day the head of BASE
received a prestigious award from ASI.

ARMY UNDER FIRE FOR DEATH OF MINORS

20. (U) Parents of five young men killed by Royal NEPAL
Army troops last month filed a complaint with the
administration office in central Nuwakot district on
December 11, seeking compensation for the deaths and
calling them "murder." The Ministry of Defense has
released a statement claiming that the boys, who ranged in
age from 14 to 19, were Maoist terrorists killed in an
encounter with security forces. Family members said that
security personnel had told them that the boys were shot
"because they were walking at night with torch-lights in
their hands."


21. (U) On December 8, the Human Rights and Peace Society,
a local NGO, accused security forces of killing nine
"innocent and unarmed youth" in two separate incidents in
southern pang district. The human rights organization
noted that the young men were out after a curfew, but
asserted that the security forces should have been able to
easily take the youths into custody instead of killing
them. The Ministry of Defense once again released a
statement claiming that the young men, who ranged in age
from 15 to 22, were Maoist terrorists killed in an
encounter with security forces.

MALINOWSKI