NEPAL: MAOISTS ATTACK SECURITY FORCES; PRESSURING

C O N F I D E N T I A L SECTION 01 OF 03 KATHMANDU 001496

SIPDIS

DEPT FOR SA/INS AND SA/RA
LONDON FOR POL/GURNEY
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PLEASE PASS TO USAID/ANE

E.O. 12958: DECL: 07/30/2013
TAGS: PGOV PTER PINS CASC NP
SUBJECT: NEPAL: MAOISTS ATTACK SECURITY FORCES; PRESSURING
THE PENDING PEACE TALKS

REF: A. A. KATHMANDU 1431

B. B. KATHMANDU 1423

Classified By: DCM Robert K. Boggs for reasons 1.5 (b) and (d).

Summary
========


1. (U) Since their July 31 commitment to a third round of
peace talks (ref A),the Maoists have increased activities in
violation of the cease-fire code of conduct resulting in the
deaths of 8 security personnel and one Maoist. Maoist
violations could be a unilateral attempt to restrict the army
to within 5 kilometers of their barracks. Coming on the
heels of threats to American development projects in three
districts north of Kathmandu (ref B),on August 2, Maoists
extorted money from American student volunteers and on August
4 accused USAID of implementing projects in these districts
designed to proselytize and convert Nepali Hindus to
Christianity. Maoist aggressiveness is not limited to the
U.S., the AUSTRALIAn Embassy reported two recent incidents
against their projects. Post will continue to confer with
non-governmental organizations and diplomatic missions to get
a better understanding of the scope and depth of recent
Maoist threats. End Summary.

Maoist Code of Conduct Violations
==================================


2. (U) Since their July 31 announcement committing them to a
third round of peace talks (ref A),the Maoists have
increased the pace of their violations of the agreed
code-of-conduct. In nine days, the press has reported that
Maoists have ambushed government security patrols, stolen
government funds for the poor, executed a police officer, and
abducted both security personnel and civilians. The reported
incidents are outlined below:

-- July 31, Maoists ambushed an army unit en route to inspect
a telecommunications repeater just outside Sindhuli District
headquarters, 70 kilometers east of Kathmandu. The Maoists
hung two soldiers, while three were able to escape, one with
minor injuries.

-- August 1, Maoists shot a police officer in Bhairahawa, a
border town in south-central Nepal, while he was inspecting
damage caused by flooding.

-- August 2, five students abducted five months ago from
their schools in Khotang District, in eastern Nepal, escaped
from a Maoist training camp.

-- August 3, Maoists and an army patrol reportedly exchanged
fire in Dailekh District, in Nepal's mid-west, killing one
Maoist guerrilla and injuring six others. The army took nine
into custody and confiscated improvised explosives, bullets,
and political documents.

-- August 3, Maoists abducted seven civilians cutting timber
in Udaypur District in Nepal's eastern hills.

-- August 3, Maoist cadres in Taplejung, in Nepal's far-east,
took over USD 300 from a village secretary intended for
distribution to the elderly and widows.

-- August 4, insurgents abducted a police officer and his
brother returning from a rural post in Ramechap, a district
60 kilometers east of Kathmandu. The brother was released
after a severe beating.

-- August 5, the press reported a Maoist ambush of a combined
army and police patrol in Panchthar District in Nepal's
far-east. The attack killed five and injured 28 others.

-- August 5, Maoists reportedly attacked security forces on
patrol in Dailekh District in Nepal's mid-west. No casualty
figures were provided; however, Maoists were quoted with
saying that their cadres have been ordered to attack
government forces that move outside a 5-kilometer radius of
their barracks. (Note: The Maoist negotiators claim, and
the government disputes, that the 5-kilometer restriction was
agreed to at the second round of peace talks. End note.)


Threats to Americans
=====================


3. (U) On August 2, a group of American Christian students
volunteering with Global Roots of Boston were approached by a
group of Maoists in Nuwakot District immediately north of
Kathmandu. The Maoists lectured the group for over an hour
with a speech that included anti-American and anti-Bush
sentiments. The Maoists stated that they would not hold
American policies against the students, but the Maoists
demanded each of the students to pay a USD 5 fee (which they
did). Carole Lester, the group's coordinator, quoted the
Maoists as saying, "This is our area. We are in control. If
you were not students, we would have charged you USD 50 per
person. If you had been affiliated with an NGO
(non-governmental organization),you would have been charged
50 percent of the development costs." The students were
building an extension to a village school with USD 5,000
raised in the U.S. Lester reported that after this
encounter, the group pulled out of the project and left
Nuwakot the next morning. (Note: The RSO had briefed the
coordinator before they departed for Nuwakot, urging them to
reconsider. End note.)


4. (U) The local press reported that at a press conference
on August 5, a Maoist leader of the Rasuwa, Nuwakot, and
Sindhupalchok Districts accused USAID of funding the
construction of four churches in the three districts in order
to proselytize. He alleged that USAID has attracted more
than five thousand Hindus to Christianity. (Note:
Prosylitizing is prohibited by Nepali law, although people
may voluntarily pursue a change in faith. End note.)

AUSTRALIAn-affiliated Projects Harassed
=========================================


5. (SBU) Maoist aggressiveness is not limited to the U.S.
For example, the AUSTRALIAn Embassy reported to the DCM two
recent Maoist threats to AUSTRALIAn-affiliated projects. In
Kavre District, adjacent to Kathmandu to the east, an
AUSTRALIAn project vehicle was stopped by gun and grenade
toting Maoists who demanded a ride; against security
guidelines, the driver did so. This event has put at risk
AUSTRALIA's 20 year-old commercial forestry projects in Kavre
and Sindhupalchok (northeast of Kathmandu) Districts.
AUSTRALIAn project vehicles will no longer be allowed to
travel through these districts, and all project management
will be confined to Kathmandu. The AUSTRALIAn Embassy will
reassess the security conditions in a couple of weeks and
adjust or cancel the program as necessary.


6. (SBU) In Rasuwa District, a district north of Kathmandu
on the Chinese border, the AUSTRALIAn Embassy reported that
an AUSTRALIAn who heads a Seventh-Day Adventist NGO has
negotiated repeatedly with Maoist representatives to avoid
paying extortion. The AUSTRALIAn has had to travel to the
district on five occasions to participate in these
discussions, with one of the sessions lasting five hours. To
date, the group has reportedly avoided paying the Maoists.
However, in the last session the Maoists stated that if the
effort had been affiliated with the U.S., they would not have
entertained negotiations and would have just shutdown the
project. In addition to these two incidents, the AUSTRALIAn
Embassy reported that the Maoist extortion has become more
aggressive in both Kavre and Sindhupalchok Districts.

Comment
========


7. (C) Maoist Violations: If Maoist statements that they
are unilaterally enforcing the supposed 5-kilometer
restriction are true, Post expects there will be more attacks
in coming days. The Maoists' rampant violations of the
code-of-conduct are not matched by the government, which has
refrained from retaliating against Maoist violations for fear
of providing the Maoists with a pretext for breaking the
cease-fire. The heightened levels of violence appear to be a
Maoist tactic to pressure the government to concede to the
5-kilometer restriction on the movement of security forces in
the upcoming peace talks. In view of previous government
statements on this issue (ref B),it is unlikely the
government will agree to this restriction.


8. (SBU) Maoist Threats to Americans: The threats to Global
Roots volunteers confirms reports of Maoist threats to
American-associated groups in Nuwakot District (ref B). The
alleged demand for a 50 percent cut of NGO project funds is a
new element that, if adhered to on a national scale, will
certainly restrict the efforts of USG development programs
and the work of many privately-funded American organizations.
Post will propose language for an amended Public
Announcement after conferring with USAID development partners
and other diplomatic missions regarding their recent
experiences with the Maoists. End Comment.
MALINOWSKI