NEPAL: MAOISTS DEMAND MONEY FROM COCA-COLA,

UNCLAS KATHMANDU 001822

SIPDIS

SENSITIVE

DEPT FOR SA/INS, S/CT, AND DS/IP/SA
ISLAMABAD FOR AMBASSADOR POWELL
LONDON FOR POL/GURNEY
NSC FOR MILLARD

E.O. 12958: N/A
TAGS: PTER ECON ASEC NP
SUBJECT: NEPAL: MAOISTS DEMAND MONEY FROM COCA-COLA,
THREATEN THE COMPANY



1. (U) This cable contains business sensitive information
and should be handled accordingly.


2. (SBU) On September 15, Maoists resumed extortion demands
of Coca-Cola in Nepal. Coca-Cola has investments valued at
USD 30 million in the country in the form of two bottling
plants, one in Kathmandu and one in Chitwan District
(southwest of Kathmandu). The most recent demand is for USD
270,000 and has a firm deadline of 30 September. The demand
has been communicated to the company through site visits at
both plants and phone calls to the country manager, and the
two plant managers.


3. (SBU) Post has discussed the security situation with
Coca-Cola regional managers in Bangkok and the regional
officer for corporate security, presently on travel in
Vietnam. The Coca-Cola regional office is particularly
concerned at the personal threats received by its three local
managers. RSO and PolOff reported on the Embassy's recent
letters requesting the Home Secretary, the Inspector General
of the Civil Police, and the Inspector General of the Armed
Police Force to provide extra checkpoints 100 meters from
Coca-Cola's two plants. (Note: To date, the Embassy has not
received a response on these requests. End note.) Coca-Cola
is reviewing next steps carefully, including a possible
decision to suspend operations in Nepal. If the company is
forced to shutdown, 400 employees will lose their jobs and
the Government of Nepal will lose one of its largest
taxpayers.


4. (SBU) Comment: Post is aware that nearly all Nepalese
firms have received extortion demands. However, Coca-Cola is
one of the few companies that have not paid.
MALINOWSKI