EXTORTION LETTER DELIVERED TO COCA-COLA'S LOCAL

1. On 17 December, Mr. N.N. Singh (source protect), the
head of Coca Cola's Nepal operations, told RSO that he had
received a letter purporting to be from the Maoists and
"requesting...financial support of" 3 million Nepali Rupees
(NRs). Singh stated that he had received the letter several
days earlier, but has been busy dealing with the death of his
brother (Hindu death rituals require several days activities
before returning to normal business). He provided a copy of
the letter, a translation thereof, and showed the RSO the
original. He expressed greater concern over this extortion
attempt than those in the past, observing that this letter
was delivered to his home as opposed to his office. Singh
stated that he is concerned for his personal safety and that
of his business. He told RSO that he has been in contact
with Coca Cola security officials in Atlanta regarding this
matter.



2. RSO offered to contact host country security services on
Coca Cola's behalf and ask for additional security. Singh
told RSO that he did not want a GON bodyguard nor a physical
presence of GON security personnel at either his home or
office; his preference is for increased Royal Nepalese Army
(RNA) patrolling in the vicinity of his residence, citing
lack of confidence in the police. RSO has passed this
request through DAtt.



3. Singh told RSO of his involvement in recent talks between
Nepal's largest chamber of commerce (FNCCI) and the RNA over
establishment of a new industrial security force. He said
that the RNA has asked businesses to front 850 million NRs to
fund the force's creation. Singh lamented that in the
current business environment it is not possible for
businesses to contribute so much, comparing the figure to the
Maoists' high extortion demands. He expressed doubt as to
when, if ever, the industrial security force would become a
reality.



4. RSO compared the copy of the extortion letter to one Post
has on record, which was received by an AmCit business owner
on December 2 (ref). The letters are identical with the
exception of the pre-lined areas filled in by hand
(addressee, address, reference number, amount of money
requested). RSO noted that the handwriting contained in the
pre-lined sections did not match with the handwriting
contained in the first letter. RSO assesses the letter
presented by Singh as an authentic Maoist extortion letter
and has passed this assessment on to him.



5. Post notes that extortion by the Maoists seems to be on
the rise after a several month hiatus. Singh's pessimistic
outlook on both the economy and security situation are
similar to those held by many of Post's contacts. Whether
this renewed drive for money signals financial difficulties
for the insurgents or an attempt to build funds for a new
push against the GON, as they state in their correspondence,
is unclear. However, the frustration and feeling of dilemma
rampant in the business community is crystalline.
MALINOWSKI