UPDATE ON NEPAL'S MAOIST INSURGENCY, JUNE 28-July 3

UNCLAS SECTION 01 OF 04 KATHMANDU 001252

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E.O. 12958: N/A
TAGS: PINS PTER CASC PGOV NP
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, JUNE 28-July 3

REFERENCE: (A) KATHMANDU 0769

(B) KATHMANDU 1212

SUMMARY
--------------


1. Pushpa Kamal Dahal, alias Prachanda, Maoist supreme
leader, called upon the five major political parties of
Nepal to unite against foreign forces, and to support the
Maoist demands set forth in the first round of peace
negotiations (Ref A). The Government of Nepal (GON) and
senior Maoist leaders traded accusations of ceasefire
violations. Kamal Thapa, Minister of Information and
Communications and GON negotiating team member, however,
remained optimistic and said the GON was "ready for talks"
at any time. Maoist atrocities continue with the brutal
murders of two people and the serious injury of another, and
reports of increasing extortion, combat and explosives
training, recruitment of minors, levying of taxes, and
obstruction of development projects. Victims of the
insurgency and residents of some of the most remote areas of
Nepal voiced concern over the continuation of struggles and
threats despite the ceasefire. End Summary.

PRACHANDA WANTS PARTIES' SUPPORT
--------------


2. In a press release issued on June 29 Pushpa Kamal Dahal,
alias Prachanda, Maoist supreme leader, called upon the five
major political parties of Nepal (Nepali Congress, the
Communist Party of Nepal-United Marxist Leninist, Janamorcha
Nepal, Nepal Workers and Peasants Party, and Nepal
Sadbhawana Party) to support the twenty-four demands put
forth by the Maoists during the first round of peace
negotiations (Ref A). None of the party leaders have yet
responded.


3. The Maoist Supremo again warned against alleged
interference by international forces, declaring that there
was a "serious conspiracy from within and outside the
country" attempting to derail the peace process. Prachanda
called for unity against the "increasing interference of the
foreign forces," and urged public pressure against the
Government of Nepal (GON). He also declared that it would
be a "great disaster" if the peace negotiations were
disrupted.

ACCUSATIONS OF VIOLATIONS ALL AROUND
--------------


4. Amid concerns over the fragile peace process,
representatives from the GON and the Maoist party traded
accusations of ceasefire violations. In a statement issued
on June 27 the Ministry of Defense blamed the Maoists for
creating "social terror" through ongoing extortion
campaigns. The Ministry said the insurgents have demanded
and collected almost USD 150,000 from people and
institutions despite the declaration of a ceasefire.
Condemning the illegal activities, the Ministry warned that
security forces would exact severe punishment in accordance
with the law against those responsible.


6. In addition to criminal violations of the ceasefire, the
local press reports that the Maoists are engaged in
organized combat training and explosives-making in rural
villages. The Maoists allegedly shut down a school in the
far western district of Baitadi and used it to conduct
military and explosives training for the youth of the
village. Security personnel are stationed in District
headquarters, but there reportedly were no security
personnel in the immediate area of the Maoist training.


7. Krishna Bahadur Mahara, Maoist spokesman, hurled his own
accusations, claiming that the GON was violating the code of
conduct, and that the Royal Nepal Army (RNA) was terrorizing
Maoists in rural parts of Nepal. In a press release dated
June 29 Prachanda accused the GON of not taking the Maoists
seriously, and he also accused the RNA of using US made
weapons to kill Nepalis, citing the "mass killings" in
Jajarkot District (Ref B). (FYI: We have no credible
information of US-made weapons being used against civilians.
End FYI)

KEEPING COUNT
--------------


8. Maoist violations of the code of conduct appear to be
increasing, and several organizations are keeping count.
Quoting statistics reportedly obtained from security forces,
the local press reported that the insurgents violated the
code of conduct at least thirty different times throughout
fifteen districts during the period of May 22-June 30.
Violations included extortion, abductions, looting, seizure
of land, and physical violence. Senior Maoist leaders,
however, continue to assert that their cadres are abiding by
the code of conduct and only collect voluntary donations.


9. The Informal Sector Service Center (INSEC),a local NGO,
also detailed numerous violations allegedly committed by
both the insurgents and security personnel during the period
of June 9-24. INSEC's report included an alleged gang rape
of a woman by a group of men professing to be Maoists, as
well as other incidents of looting. Security forces were
accused of rape, torture and assault in separate incidences.

GON "READY FOR TALKS"
--------------


10. In an attempt to make progress in the stalled peace
negotiations, facilitators met separately with
representatives of the GON and Maoist negotiating teams on
July 1. According to facilitators, the two sides have
agreed to sit for a third round of talks soon. Kamal Thapa,
Minister of Information and Communications and GON
negotiating team member, said on June 29 that the GON was
"ready for talks" at any time, but was awaiting a response
from the Maoists. Thapa reportedly spoke informally with
Krishna Bahadur Mahara, Maoist spokesman, on June 27 in an
attempt to set up a date for the third round of peace
negotiations. According to press reports, Minister Thapa
was hopeful that the next round would be held in mid-July,
and hinted that part of the agenda would focus on the
agreements made during the second round of talks, including
the controversial issue of the army's restriction to a 5-
kilometer radius from their barracks, and the disputes
regarding alleged violations of the code of conduct.


11. Krishna Bahadur Mahara, Maoist spokesman and
negotiating team member, said on July 1 that the controversy
over the restriction of the army's movement should not
hinder the progress of the peace negotiations. Mahara said,
however, that the GON should implement the other agreements
that were made, including the release of imprisoned Central
Committee Members.

NEW MAOIST PHILOSOPHY?
--------------


12. On July 1 Mahara told an audience of members of the
lower castes that the right to rebel should be guaranteed.
In direct contrast to traditional communist doctrine, Mahara
said the Maoist Central Committee was committed to launching
a new model of democracy which would ensure the "right to
rebel and renounce the communist dictatorship." In an
apparent attempt to explain the surprising new philosophy,
Mahara pledged that the Maoists were for the people and the
people should revolt when someone goes against their wishes.
He claimed his party was progressive, and it was not crucial
to stick to policies made seven years ago at the beginning
of the "Peoples' War."

MAOIST TERROR GOES ON
--------------


13. Maoists in far northeastern Taplejung District
reportedly are actively recruiting minors, some as young as
twelve years old. A Maoist leader in the district denied
the accusations, but conceded that the insurgents had opened
a recruitment center after local youths showed an interest
in joining the Maoists. He also claimed that the Maoists
did not recruit anyone less than sixteen years of age. A
reliable Embassy contact from the district reports that
parents from her village are sending their children
unaccompanied to Kathmandu to protect them from Maoist
conscription.


14. Maoists brutally murdered two people and seriously
injured another. On June 27 the insurgents allegedly hacked
to death a Nepali Congress (NC) activist in Baglung
District. On July 1 four Maoists reportedly stormed into
the home of the headmaster of a private school in Lalitpur
District of Kathmandu Valley. The insurgents stabbed him
and his wife repeatedly, killing the wife and seriously
injuring the principal. Maoists in Sarlahi District
reportedly are openly demanding donations as high as two
thousand dollars, an exorbitant amount in rural areas. The
Superintendent of Police in the district told the local
press on June 29 that the Maoists continue to extort, murder
and kidnap despite the ceasefire.


15. Insurgents in the far western district of Dolpa
reportedly have posted rules and regulations throughout the
district, renamed parts of the region, and instituted their
own form of government. According to the local press, the
Maoists have seized control of several Village Development
Committees (VDC) and renamed them "Village Peoples'
Committees." The insurgents have implemented trade
guidelines in which merchants are required to register and
receive permission from the Maoists in order to conduct
business. A tax collection system has also been set up,
along with special "courts" where the Maoists impose their
own form of justice and punishment. The GON's Chief
District Officer (CDO) admitted there were several areas
that are "severely affected" by the Maoists, but denied that
the district administration has lost control of the region.


16. Construction of a hydropower project in Lamjung
District remains postponed indefinitely after the Maoists
reportedly banned workers from entering the village a year
ago. Officials with the Annapurna Conservation Area Project
(ACAP) said on June 29 that Maoists still have not allowed
work to begin, despite the ceasefire. Almost five hundred
homes would benefit from the project.
CEASEFIRE OFFERS LITTLE COMFORT
--------------

17. The declaration of a ceasefire has done little to
comfort victims of the Maoist insurgency. Despite the pleas
made by Maoists for people to return to their homes after
the declaration of the ceasefire, some who returned
reportedly were killed by the insurgents while others were
forced to donate large sums of money. According to the
Maoist Victims Association (MVA),a local organization,
there are over one thousand registered victims who fled to
Kathmandu and abandoned their homes, land and livelihoods
out of fear of the Maoists. Victims claim that the Maoists
now move freely throughout rural areas and openly extort
money and torture people, making it impossible to return
home. MVA claims that because of the ceasefire, the GON has
also stopped financial assistance.


18. In the far eastern district of Tehrathum, a two-year
ban on the sale of agricultural goods imposed by the Maoists
still has not been lifted despite the ceasefire. Villagers
whose livelihood depends on the outside sale of agricultural
products said that there is no "difference before and after
the cease-fire," and lament that the insurgents continue
extortion and abduction due to the lack of security
personnel. The code of conduct agreed to by the GON and the
Maoists allows for the unrestricted transport of food,
medicine and other goods.


19. The Government of Japan is providing humanitarian aid
for victims of the Maoist insurgency in the mid-western
district of Rolpa. Over two hundred displaced families are
receiving donations of rice, vegetables, ready-made food
items and utensils.

MALINOWSKI