MAOISTS REPORTEDLY LINK ATTACK ON COCA-COLA

UNCLAS KATHMANDU 000751

SIPDIS

SENSITIVE

STATE FOR SA/INS AND DS/OP/NEA

E.O. 12958: N/A
TAGS: PTER CASC BEXP NEPAL'>NP
SUBJECT: MAOISTS REPORTEDLY LINK ATTACK ON COCA-COLA
FACILITY TO U.S. AFFILIATION

REF: A. (A) KATHMANDU 747


B. (B) STATE 69408

C. (C) KATHMANDU 439

D. (D) KATHMANDU 209

E. (E) 01 KATHMANDU 2324


1. (SBU) Summary: The NEPALi manager of a Coca-cola
factory where Maoists set off two bombs the night of April 14
(Ref A) said the armed attackers told Coke employees at the
plant their facility was being targeted because of its
affiliation with the U.S. and because of USG aid to victims
of the Maoist insurgency (Ref B). No one was injured in the
blasts, but damage to the factory will delay continued
production for at least another 15 days. The bombers'
statement marks the first time the insurgents have linked a
particular action by the USG to one of their attacks. End
summary.


2. (SBU) N.N. Singh, Managing Director of Coca-Cola in
NEPAL, told RSO and poloff that estimates of the damage
inflicted by two bomb blasts set by Maoists at the facility
in Narayangadh April 14 are still incomplete (Ref A). The
capping and filling machines were both damaged, Singh said,
necessitating the shutdown of production for at least 15-20
days. No one was injured in the attack, and police have made
no arrests.


3. (SBU) Singh reported that five armed men entered the
plant about 7:45 p.m. on April 14. After rounding up the
three unarmed security guards, the electrician, the boiler
operator, the night supervisor, and five people who were in
the cafeteria, one of the intruders began lecturing them.
According to the employees' account, the man emphasized that
the Maoists had nothing personally against any of the
employees and did not intend to harm them. Since, however,
Coca-cola is a symbol of American imperialism, the insurgents
are targeting the facility. The man took special note of
recent press items announcing a USG grant of USD 100,000 to
assist victims of the insurgency (Ref B). Since the USG is
giving USD 100,000, we are damaging this factory worth half a
million dollars, the man reportedly stressed. Following this
explanation, the man's companions then set off the two bombs.


4. (SBU) Noting that Sunday's incident marks the third time
a Coca-cola facility has been attacked since November (Refs D
and E),Singh commented that his own and the Ambassador's
requests for increased police protection for the two
facilities (Ref C) were not enough to avert this latest
incident. The police chief has posted patrols around both
facilities, Singh acknowledged, but patrols alone are not
effective in deterring such attacks. He said he has
personally asked the police chief for armed policemen to be
posted inside both plants, but the Chief has always declined,
saying he does not have the manpower to grant Singh's
request. Coca-cola logos are prominent all over NEPAL, Singh
continued. If the Maoists have made it plain that they
consider Coca-cola a legitimate target, every Coca-cola
delivery truck in the country could be threatened. He asked
that the Embassy again raise security at the facilities with
the police. RSO and poloff undertook to do so.


5. (SBU) Comment: Press items reporting real and
apochryphal USG aid to the Government of NEPAL have increased
markedly in the past few months. This incident, however,
marks the first time to our knowledge that the Maoists have
articulated a specific connection between a USG action--in
this case, the grant--and an attack. The Embassy has
received no other communications or information regarding
possible threats to other U.S.-affiliated entities or
individuals. The EAC will discuss next steps at its April 22
meeting.
MALINOWSKI