WEEKLY NEPAL MEDIA REPORT: JULY 8 - 14, 2003

UNCLAS SECTION 01 OF 05 KATHMANDU 001329

SIPDIS

E.O. 12958: N/A
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT: JULY 8 - 14, 2003

- STATE FOR NP, AC, PM
- STATE FOR IN/R/MR
- STATE FOR SA/INS, PM/CBM, PM/PRO
- STATE FOR SA/PPD


1. POLITICAL AFFAIRS

PEACE TALKS

-- Government, Maoists hold talks: Members of the
negotiating teams of the government and the Maoists
held an informal meeting in Kathmandu to create a
congenial atmosphere for the third round of the peace
talks. However, the talks failed to set a date for the
next round of the talks. (Government-owned " Rising
Nepal," E/D, 7/14)

-- Government formally calls Maoists to resume talks:
The government sent (7/13) a formal letter to the
Maoist leadership with the proposal for sitting down
for formal dialogue as soon as possible. (Media
reports, 7/14)

-- Question mark looms over talks: A question mark
suddenly arose over the continuation of peace talks
between the Maoists and the government today (7/13)
with both the parties making moves and counter moves.
In a day of fast paced developments, the Maoists
threatened not to sit for the next round of peace talks
unless and until the government honored the agreement
it had reached with them over deployment of the army in
the second round of peace talks held in May, and also
freed three top Maoist leaders. The government
responded to the Maoists' threat by sending a letter
formally inviting them to the third round of talks.
But the letter was not written by Prime Minister Surya
Bahadur Thapa. Nor was it addressed to the Maoist
supremo; it was signed by Information and
Communications Minister Kamal Thapa and sent to Maoist
talks team leader Dr Baburam Bhattarai. (pro-India
"Himalayan Times," E/D, 7/14)

-- Movement reaches village level: The movement
launched by major political parties to make the king
less powerful but respectable has reached the village
level. (centrist "Deshantar," V/W, 7/13)

-- Security tightened in mid-west: Security in most of
the districts in the mid-western region has been beefed
up. This follows an atmosphere of uncertainty,
generated by a lull in the resumption of talks between
the government and the Maoists. Meanwhile, the local
administration has issued a curfew order in Dang
district where the Maoists had carried out a massive
attack on the army base two-and-a-half years ago.
(Media reports, 7/13)

-- Peace talks vulnerable: "The peace talks process is
at a vulnerable point". Despite the four rounds of
informal talks, the formal one is still uncertain...
The security wing is now specially alert and vigilant."
(centrist "Bimarsha," V/W, 7/11)
-- The joint movement is a big pain for Nepali
Congress. (centrist "Nepalipatra," V/W, 9/11)

-- UML suspends senior party leader: The fourth central
committee meeting of the UML suspended (7/8) party
central committee member Radha Krishna Mainali from his
position for six months. Mainali was charged of
protesting the joint movement launched against
regression, and supporting the king's retrogression
through his many articles published in the past. (Media
reports, 7/9)

PALACE IN SEARCH OF PRIME MINISTER AGAIN

-- Girija Prasad Koirala [former Prime Minister and
President of Nepali Congress] is set to be the next
Prime Minister. Koirala is friendly with the Palace
now. The joint movement is in a limbo. (centrist
"Naya Kiran," V/W, 7/11)

-- Girija Prasad Koirala is getting closer to the
Palace these days. There has been a new political
consensus between the Girija clique and the palace in
the initiatives and directions of the Indian power
center. Koirala is now
playing a double standard by
telling the Maoists that "the movement should be now
for the Republic State" and telling the palace that it
was he only who could save it from the crisis. (pro-
Maoists "Jana Dharana," V/W, 7/10)

-- The Royal Palace is finally unsatisfied with Prime
Minister Thapa as he could not include any other
political party in the government. The Palace is now
on the lookout for a new Prime Minister. It has eyed
on three figures: Speaker of the House Taranath
Ranabhat, former Prime Minister Sher Bahadur Deuba and
former Speaker of the House Daman Nath Dhungana.
(centrist "Ghatana Ra Bichar," V/W, 7/9)

2. MAOIST ACTIVITIES

-- Maoists confiscate citizenship certificates: Maoist
cadres confiscated citizenship certificates distributed
by a "Goodwill Team" of the Royal Nepal Army (RNA) in
Mugu district in mid July. (centrist "Kathmandu Post,"
E/D and centrist "Kantipur," V/D, 7/12)

-- Maoists restrict entry: The Maoists have imposed
restriction on entry to 10 remote VDCs of Kavre
district, as they declared them as a base area a week
ago. ("Kantipur," 9/11)


3. NEPAL-U.S.

-- Nepal Trade Bill could still move in U.S. Senate: A
preferential legislation that would allow duty and
quota free access to Nepali garments could earn fresh
support from Senator Dianne Feinstein, provided
authorities in Nepal lend an assurance that they would
not deport Tibetan asylum-seekers in future, a
spokesperson at Senator Feinstein's office said today.
("The Kathmandu Post," 7/13)

-- The bill: Industrialists are pressuring the
government to request U.S. Senator Dianne Feinstein to
reintroduce the customs and quota free bill for Nepali
garments that she withdrew in May after 18 Tibetans
were deported back to China. "They want a guarantee
from us that there will be no deportation in the
future," says a senior Foreign Ministry official. "But
how can we issue such a guarantee? We have accepted
more than 150,000 refugees in the country but if
someone arrives here illegally, we will have to deport
them." Nepali garment manufacturers say the government
is not lobbying enough. (centrist "Nepali Times," E/W,
7/11)

-- Violence and instability continue to depress U.S.
tourism to Nepal: The U.S. in a press release stated
that Nepal's violence and instability is having an
adverse effect on the number of American tourists
visiting Nepal. "Unfortunately, continued political
turmoil and violent street demonstrations even after
the ceasefire have dampened thus far the expected
rebound in U.S. tourism," stated the release. "Threats
and violence over the past two years from members of
the Communist Party of Nepal (Maoist) have caused a
dramatic decline in U.S. and other international
visitors. As a direct result of Maoist violence and
threats, foreign tourism has declined by more than half
since 2000. Instead of the 40,000 Americans, who
visited in 2000, only 16,000 U.S. visitors arrived in
Nepal in 2002." The statement also cited reports of
trekkers being assaulted and robbed at gunpoint in
rural areas by Maoists. (Media reports, 7/11)

-- Royal Nepal Army to be in Iraq: As U.S. soldiers are
being decimated because of Iraqi people's resistance,
it has asked for a military assistance from Nepal as
well. The discussion the Thapa government is holding
on this makes it suspicious whether Nepal is longing to
deviate from its non-aligned foreign policy. Experts
are saying that the sending off the Nepalese army to
Iraq would be a mistake and counterproductive.
However, top army officials are in consensus to send
Nepalese troops to Iraq. The top officials had
stressed on sending the troops to Iraq, even if they
would be under the American command, when Prime
Minister Thapa asked them last week for an advice.
Their suggestion was based on two facts: U.S. military
assistance to suppress the Maoists and the economic
benefits the troops would make in Iraq.

-- Althou
gh the rulers of some Arab nations are U.S.-
supporters, the majority of people are anti-America.
If the troops are sent to Iraq, the lives of about half
million Nepalis will be unsecured. The U.S. is asking
for Nepali troops only because it wants to keep its own
troops safe and use the Nepalis as mercenaries. The
Americans want a very low casualty on its troops. If
too many Americans die, President Bush will be an
unpopular figure. This will have a direct effect on the
next presidential elections. (leftist "Jana Aastha,"
V/W, 7/9)

-- Troops for Iraq: Pros and cons: The government is
reportedly considering the dispatch of an infantry
battalion to Iraq to join in the post-war
"stabilization force" there, as per a formal request by
the United States. Given the grim state of
unemployment in the country, aided and abetted by
blatant misgovernance for twelve long years, can Nepal
really afford to turn a blind eye to the prospect of
thousands of valuable jobs in the massive re-
construction efforts that will be beginning very
shortly in Iraq? Are there no dangers at all? Of
course, there are - as in UN peacekeeping operations!
For a professional Army that should not, however, be a
deterrent. Instead, it should be treated as a valuable
opportunity to gain new experience that could stand the
nation in good stead in the future. (Op-ed in "The
Kathmandu Post, 7/9)

-- USAID assistance to Nepal: The USAID has agreed to
Nepal with grant assistance worth 7.5 million dollars
to strengthen the rule of law in the country and
initiate anti-corruption measures. The assistance
extending over three years will support Nepal's efforts
on strengthening the rule of law, enhancing access to
justice, and advancing accountability and anti-
corruption initiative. (Media reports, 7/9)


4. BHUTANESE REFUGEES

-- Involve UNHCR in refugee verification: US envoy:
U.S. Ambassador Michael E Malinowski favors UNHCR's
involvement in the Bhutanese refugees' verification
process. In a letter to "The Kathmandu Post,"
Malinowski said, "I strongly believe that UNHCR is
uniquely qualified to assist in the verification and
repatriation of the refugees." The U.S. envoy added
that "the UNHCR is widely recognized by the
international community as having the expertise needed
to ensure that the repatriation and reintegration to
Bhutan is conducted in just and humane manner".

-- He said this while expressing concern at the nature
and content of the report prepared by Nepal-Bhutan
Joint Verification Team (JVT) which was publicized on
June 18 amid much uproar among the Bhutanese refugees
in Nepal. The report, which has huge inconsistencies
and thus leaves out a large number of Bhutanese
refugees as non-Bhutanese, rules out any chances of
their repatriation to Bhutan for all practical purposes
until their pleas are heard by the Druk authorities.
(The Kathmandu Post and others, 7/10. Separate cable
sent earlier on this)

-- Nepal, Bhutan discuss U.S. statement during
bilateral meet: A day after the U.S. ambassador to
Nepal expressed his dismay over the tardy progress in
the repatriation of the Bhutanese refugees from the
Khudunabari camp, Nepal and Bhutan discussed the U.S.
statement during their bilateral meet, held on the
sidelines of the SAARC Standing Committee meeting in
Kathmandu on Thursday.

-- When reminded that the envoy had also issued a
veiled criticism of Nepal, Nepal's Foreign Secretary
Madhu Raman Acharya said, "I think what they are
reiterating...is the concerns of the refugees, which we
are also reiterating." Meanwhile, Bhutan's officiating
Foreign Secretary S. T. Rabgye declined to make any
comment when "The Kathmandu Post" approached him for
his reaction to the U.S. statement. "No comments,"
said Rabgye, although he admitted that he had read the
reports in newspapers.
-- The refugee leaders, on the other hand, were upbeat.
The president of Bhutan National Democratic Par
ty and
the chief coordinator of the Association of Human
Rights Activists-Bhutan (AHURA, Bhutan) welcomed the
U.S. concerns.

-- "This is very good news for us," said the president.
"This is the first time that the U.S. has expressed
such open support for us." He added it was long
overdue in the light of the atrocities on the refugees.
The coordinator said that with U.S. showing interest in
the affairs of the refugees, things could be better for
the refugees. There are more than 100 thousand
refugees in the UNHCR-run camps in eastern Nepal. ("The
Kathmandu Post," 7/11)
-- Bhutanese forum hails Ambassador Malinowski's
statement: "A two-day special meeting of the People's
Forum for Human Rights in Bhutan (PFHRB) concluded in
Siliguri, India, taking positively the U.S. Ambassador
Michael E. Malinowski's recent statement on the joint
verification team's report on Bhutanese refugee
categorizations. (The Kathmandu Post, 7/14)


5. PRESS AND MEDIA

-- Private television channels launched: The Kantipur
Television Network (KTN) and the Image Metro Television
formally launched their transmissions on July 13. The
KTN is the only channel in the private sector to have
acquired a license for the terrestrial transmission.
The Image TV will broadcast in and around the Kathmandu
Valley. The KTN plans to expand its broadcast
throughout the nation and outside through satellite up-
link. (Media reports, 7/14)


6. REGIONAL

-- Bhutto in Kathmandu: Former Pakistani Prime Minister
Benazir Bhutto, who is currently on a private visit to
Nepal, today said the main threat to democracy in South
Asia lies in periodic dictatorships, "which have shown
tendency to give birth to terrorism also." ("The
Kathmandu Post," 7/14)

-- Pakistan accuses India of holding SAARC hostage:
Pakistan's Foreign Secretary Riaz H Khokhar rejected
(7/11) the Indian charge that his country was the
"slowest" member as far as SAARC economic agenda was
concerned and pointed out that this could be used as a
pretext by India to postpone the forthcoming Summit
once again. He also blamed India for not holding
bilateral talks while the two countries' foreign
secretaries were in Kathmandu. On China's inclusion in

SIPDIS
the SAARC, the Pakistani foreign secretary said, "We
would certainly welcome it" and claimed that "six out
of the seven members agree that China should be
associated, and if possible, made a member." (Feature
article in "The Kathmandu Post, 7/12)
-- SAARC Summit in January: All seven member-countries
of the SAARC agreed to hold the postponed 12th Summit
in Pakistan on January 4-6, with the preceding meetings
beginning at the end of December. (Media reports,
7/11))


7. OTHERS

-- Jurists slam Nepal's judicial set-up: The
International Commission of Jurists in a report says
that Nepal is perilously close to slipping from a
constitutional to an absolute monarchy as the integrity
of the Nepalese constitution is under severe strain,
with the king having failed to call elections. ("The
Himalayan Times," 7/13)

-- Food shortage hits the eastern region: While the
food shortage has been a regular feature of remote far
western zone of Karnali, it now has extended to eastern
region as well, as five eastern districts including
Bhojpur, Khotang, Taplejung, Okhaldhunga and
Sankhuwasabha are facing with acute food-crunch
recently. ("The Kathmandu Post," 7/13)
-- 48 killed, 1,143 families affected: At least 10
people were confirmed dead in separate incidents of
landslide and flood in various parts of the country on
Thursday. The Home Ministry said (7/10) that 48 people
were killed and more than 1,140 families were affected
across the country since the onset of the rainy season.
("Kantipur," 7/11)

MALINOWSKI