C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000872

SIPDIS

STATE FOR SA/INS
LONDON FOR POL - RIEDEL

E.O. 12958: DECL: 05/03/2012
TAGS: PTER PGOV NP
SUBJECT: MAOIST STATEMENT "WELCOMES" DIALOGUE; ARMY HITS
INSURGENT TRAINING CAMP

REF: A. (A) KATHMANDU 838


B. (B) KATHMANDU 787

Classified By: A/DCM MICHAEL HOZA. REASON: 1.5 (B,D).

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SUMMARY
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1. (SBU) In its fourth public statement in less than a
week, the Maoist leadership said it would "welcome" any
initiative to resume dialogue. Interspersed with the usual
bromides against "foreign interference," the statement
indicates that local press reports--both accurate and
inaccurate-- of possible USG military assistance to the
Government of Nepal (GON) may be making the Maoists nervous.
Given Maoist duplicity in the past, however, the GON is
unlikely to react positively to this tepid overture. The
Army reports six platoons have engaged Maoists massed at a
training camp on the border of the western districts of Rolpa
and Pyuthan. The Army estimates Maoist casualties at more
than 70. End summary.

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PROLIFIC PRACHANDA
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2. (U) In an uncharacteristically prolific burst, the Maoist
leadership has issued four press statements in less than a
week, each of them referring to the threat of foreign
interference (Ref A). The most recent statement, dated May 1
and signed by Maoist party president Prachanda, made several
additional references to the threat of foreign interference,
but also stated the insurgents would "welcome" an
inititiative to resume dialogue with the Government of Nepal
(GON). The unofficial English translation of the press
statement follows in para 3 below.


3. (U) Begin unofficial translation of Prachanda statement:

Nepal Communist Party (Maoist) Central Committee
Press Statement
May 1, 2002

The threat of murder, oppression and terror imposed on the
Nepali people by feudal regressive forces, which have been in
power since the Royal Palace massacre in cooperation with
imperialists, is completely wild and barbaric, with no
respect for norms, values, customs and accepted practices.
The behavior of the mercenaries, or the so-called Royal Nepal
Army, over the last five months under the control and

direction of these feudal murderers has made this quite
clear. This feudalism has been unsuccessful in the face of
the People's Liberation Army established by the sons and
daughters of the great Nepali people. As a result, the
feudal murderers, in a conspiracy to eliminate the very
existence of the sovereignty of Nepal and the Nepali people,
have called for imperialist interference and have announced
bounties on their heads, demonstrating their monstrous
character. In this adverse situation, it is historically
compulsory for all political forces, intellectuals, and
people who have faith in the country and the people to unite
and begin undertaking effective initiatives for a positive
political way out. We had clearly visualized the present
difficult situation at the time of the Royal Palace carnage.
It is no secret that we had then strongly raised our voices
for the needs of all political parties, including those in
Parliament and others outside of Parliament, to unite against
feudal tyranny. Although late, today not only the
intelligentsia and the people but also the major
Parliamentary parties are raising this issue and the need for
dialogue for a positive political way out and to avoid
foreign interference. We welcome this initiative and
process. We are ready to take any necessary steps to reach a
logical conclusion for the liberation of the country from
regressive feudalistic atrocities, foreign interference and
oppression. We appeal to all not to make a mistake by taking
our feeling of responsibility toward the country and the
people as weakness or a desperate attempt to hold talks. We
will be committed to oppose the so-called ruleres until the
end if they continue to move ahead in the same way as today.
No one should doubt this.

Prachanda
President
Communist Party of Nepal (Maoist)
Central Office
End text of translation.


4. (C) Although dated May 1, the statement was only released
to the media late May 2. As of this writing, the GON has
made no official reaction to the statement's oblique
reference to resuming dialogue. In a May 2 meeting with the
Ambassador, however, Prime Minister Sher Bahadur Deuba said
that he could not yet contemplate resuming dialogue with the
Maoists. Because of their duplicitous behavior in the
negotiations conducted during the previous year, they cannot
be trusted, Deuba said. Negotiations might only be possible
after GON security forces break the Maoists' strength; he
indicated he does not think the GON is at that point yet.

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RNA PLATOON ENGAGES MAOISTS IN ROLPA-PYUTHAN
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5. (C) On May 2 a 25-man Royal Nepal Army (RNA) platoon on
night patrol near the border of Rolpa and Pyuthan Districts
in western Nepal were attacked by a massive Maoist
contingent, according to the RNA's Director of Military
Operations Brig. Gen. Deepak Malla. The platoon withdrew to
a hilltop and were reportedly holding off the insurgents as
of COB the following day, according to Malla. An additional
five RNA platoons are en route to the site, a few kilometers
southeast of Liwang, a town visited by emboffs and members of
the PACOM assessment team in April (Ref B). Malla said the
RNA platoon had sustained four casualties, but estimated
Maoist losses as high as 70. (Note: Local press reports,
citing Ministry of Defense sources, put Maoist casualties at

40. End note.)


6. (C) Malla said the RNA had received intelligence of a
large concentration of Maoists in the area; the patrol had
been looking for signs of the presence when fired on. Malla
added that Maoists were believed to have stockpiled
significant quantities of weapons at the site, perhaps in
anticipation of launching a large-scale attack on security
forces in the near future.

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COMMENT
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7. (C) Maoist press statements since the state of emergency
have from time to time implied the insurgents might be open
to resuming talks, while not stating explicitly they are
ready to do so. Prachanda's May 1 statement--tepid though it
is--is the most explicit articulation to date of the Maoists'
attitude toward dialogue, and follows widespread reports,
both accurate and inaccurate, of impending USG and other
foreign military assistance to the GON. The strong signals
of foreign support for the GON implicit in Deuba's upcoming
meetings with President Bush and UK Prime Minister Tony Blair
are also undoubtedly a factor--hence the link between
dialogue as a way to avert "foreign interference."


8. (C) If the RNA's information is correct, however, the
Maoists were apparently planning a large-scale attack to
coincide with or to follow this statement--a pattern they
have adopted all too frequently in the past. We do not
expect the Prime Minister or others in the GON to react
positively to the Maoists' overture.
MALINOWSKI