Identifier
Created
Classification
Origin
03KATHMANDU2076
2003-10-25 04:58:00
UNCLASSIFIED
Embassy Kathmandu
Cable title:  

NEPAL: MAOIST ACTIVITY OCTOBER 18 - OCTOBER 24

Tags:  PTER PGOV PREL NP 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 04 KATHMANDU 002076 

SIPDIS

STATE FOR SA/INS, USAID/ANE, LONDON FOR POL/GURNEY, NSC FOR
MILLARD

E.O. 12958: N/A
TAGS: PTER PGOV PREL NP
SUBJECT: NEPAL: MAOIST ACTIVITY OCTOBER 18 - OCTOBER 24

REF: (A) KATHMANDU 2048

(B) KATHMANDU 2020
(C) KATHMANDU 2042
(D) KATHMANUD 2022
(E) KATHMANDU 2040


Summary
-------
UNCLAS SECTION 01 OF 04 KATHMANDU 002076

SIPDIS

STATE FOR SA/INS, USAID/ANE, LONDON FOR POL/GURNEY, NSC FOR
MILLARD

E.O. 12958: N/A
TAGS: PTER PGOV PREL NP
SUBJECT: NEPAL: MAOIST ACTIVITY OCTOBER 18 - OCTOBER 24

REF: (A) KATHMANDU 2048

(B) KATHMANDU 2020
(C) KATHMANDU 2042
(D) KATHMANUD 2022
(E) KATHMANDU 2040


Summary
--------------

1. After a relatively quiet Dasain holiday, the period of
October 18-24 has been marked with increased violence.
According to local press reports, 57 suspected Maoists, 3
security personnel and 5 civilians were killed during this
week's clashes around the country. Despite the Maoists'
press release of October 21, which announced a policy shift
away from indiscriminate murder and destruction of
infrastructure, reports from the far-western and mid-western
regions of Nepal attests to continued extortion, kidnappings
and murder of local villagers and businessmen. Colgate-
Palmolive (Nepal),a 100 percent owned and operated Indian
investment has temporarily suspended operations. Local
media reports reference Maoist extortion and an on-going
labor dispute as the reason for temporary closure.


2. The Government of Nepal (GON),in an effort to better
manage the economic impact of the insurgency, announced the
creation of a tourism crisis management cell. Maoists in
the Makalu and Dolpa areas have standardized their taxing of
foreign nationals who visit the area. The GON announced
bans on certain cultural activities associated with the
local Tihar "festival of lights" holiday for the first time,
citing security reasons. End Summary.

Words Vs. Deeds of the Maoists
--------------

3. On October 21, Prachanda, the supreme Maoist leader,
issued a press release citing a major shift in his party's
policies. (Ref A) The statement indicated that the Maoists
would downscale the intensity of their violence and
destruction, and cease the destruction of government
buildings, telecom towers and other infrastructure. NGOs
and INGOs except those receiving U.S. funding would be
allowed to operate. "Common people" would be allowed to
make voluntary donations to the Maoists, while big
businesses would be assessed a "tax."


4. On the morning of October 22, a group of Maoists
exploded a pressure cooker bomb at a local government office
in Bhaktapur (located in Kathmandu Valley),completely
destroying the building and damaging property valued at an

estimated NRs. 400,000 (equivalent USD 5,405). Just one day
after the pronouncement, moreover, Maoist insurgents
brutally murdered five civilians in different parts of the
country.

Colgate-Palmolive Factory Closes
--------------

5. Colgate-Palmolive (Nepal),a 100 percent owned and
operated Indian investment, announced on October 19 that it
would temporarily suspend operations for seven business days
citing the "fragile security situation" and low demand as
the major factors. (Refs B and C) This announcement
coincides with media reports indicating that Colgate-
Palmolive received an extortion demand from the Maoists amid
an on-going labor dispute with the plant's local employees.

Government Branch Offices Shift
--------------

6. Local press reports indicate that many government branch
offices have shifted to district headquarters, following
heightened Maoist activities. Most police posts and
regional police offices also are reported to have moved as a
result of the security situation.

More incidents of extortions and kidnapping
--------------

7. Maoists plan to extort NRs. 10 million from businesses
in Gulmi district (located in southwest Nepal). Some 48
businessmen are reported to have received the extortion
letter, which demands "donations" in a range of NRs. 50,000
to 500,000 (equivalent USD 676 to USD 6,757).


8. On October 17, a group of armed Maoists abducted 23
merchants in Accham District (located in far-west Nepal),
stating that the traders were "unfriendly to their party;"
authorities have no indication where they are being held.
One businessman who escaped indicated that he believed the
group was abducted for failing to pay extortion demands.

Maoists destroy local businesses and disrupt food supply
-------------- --------------

9. Around 100 armed Maoists destroyed a three-decades-old
government sheep farm located in Nuwakot district (located
in central Nepal) on October 15, leaving the local employees
jobless. The Maoists killed sheep on the farm and destroyed
the entire infrastructure, including government offices,
sheep pens and farm buildings.


10. Reports from Kailali District (located in far-west
Nepal) indicate that the timber industry has also been
affected by the insurgency. Many sawmills have been forced
to close due to low timber supply. Those that remain
operational cite "double taxation" by the Maoists as a huge
financial burden. Government security personnel and the
Maoist insurgents restrict collection of wood from the
forest, resulting in illegal smuggling of timber to domestic
wood and furniture industries.


11. Some farmers reportedly are deciding not to harvest
their rice crops, citing both low demand from food traders
and levies by Maoists on farmers owning more than 5 bighas
(about 8 acres). Maoists are demanding that farmers pay
NRs. 50,000 (equivalent USD 676) as a "donation." Food
traders indicate they are not purchasing rice because they
have been warned by the Maoists not to transport food
products for business. In addition, people in remote
districts of Achham, Bajhang and Bajura districts are facing
food deficits because government contractors are unwilling
to transport subsidized grain to these districts in the far-
west because of security concerns.

Maoists Target the Young and Old: Compulsory training
-------------- --------------

12. In Achham District (located in far-western Nepal),the
Maoists have initiated a new campaign entitled "All are
Maoists including children and elderly." The propaganda
campaign involves children as young as age 10 and the
elderly in physical and doctrinal training. Reports
indicate that individuals are forced to wear a cap, to carry
the Maoist flag and to chant pro-Maoist slogans during 16
hours of marching around town.

Youths Kidnapped by Maoists
--------------

13. Armed Maoists reportedly kidnapped 13 young adults
between the ages of 18 to 25 from Beltakua village in Dang
District (located in mid-western Nepal). According to local
residents, the youths were awaken up the evening of October
17, assembled in a nearby open area, handcuffed and taken
north.

Schools in the Middle
--------------

14. The United Nations Children's Fund (UNICEF) condemned
the October 13 clash between Maoists and security personnel
that occurred on the grounds of Sharada Higher Secondary
School in Doti (located in far-western Nepal). Carol
Bellamy, executive director of UNICEF, called for a code of
conduct between all parties that included no weaponson
school grounds, no recruitment of children, no political
activities in schools, no harassment of teachers or
students, and no disruption of school activities. On
October 13, the Maoists had organized a program at the
school and reportedly threatened students if they did not
participate. Security forces who stormed the school and
opened fire explained that they believed that all the
assembled group were Maoists. Four students were killed in
the clash. In the aftermath, nearly twenty schools have
closed in Doti, and many parents have chosen not to send
their children to schools that have remained opened. The
National Human Rights Commission has initiated an
investigation into the incident. Meanwhile, on October 20,
Maoists padlocked more than a hundred schools in Syangja
district (located in western Nepal).


15. Nepal's three largest teachers organizations announced
a joint protest program against the increasing incidents of
murder, arrest and abduction of teachers following the
breaking of the cease-fire on August 27. Reports indicate
that since the beginning of the Maoist insurgency, 141
teachers have been killed. Since the Maoists broke off the
cease-fire, five teachers have been murdered and three
teachers kidnapped by the Maoists. The teachers' group
plans to submit demands for security and increased salary
and benefits to the District Education Offices on October

31. If their demands are not met, the teachers plan to
organize a sit-in at the district headquarters on November

14.

Asian Development Bank remains committed
--------------

16. John Samy, deputy director general of the South Asian
Regional Department of the Asian Development Bank (ADB),
reiterated during a trip to Nepal on October 17 that ADB
remains committed to assisting Nepal on development and
poverty reduction through the crisis period. Samy
underscored the need for international donors to remain
engaged during "Nepal's critical juncture." ADB is in the
process of creating a new Country Strategy and Programme for
Nepal which should be completed in 2004.

Armed Police Force takes over Farmers' land
--------------

17. Farmers demanded the return of land (about 13 acres)
that reportedly was taken over by the Armed Police Force's
Neelbarahl Battalion about three months ago, leaving some
100 farmers landless. The land encompasses four village
development areas within the Kathmandu district.

Maoists abduct and release British Gurkha Army Officers
-------------- --------------

18. On October 19, Maoists kidnapped four British Gurkha
Officers, including a British Army Lieutenant Colonel, about
300 km west of Kathmandu in the remote Lekhani Village
Development Committee in Baglung District. (Refs D and E).
The British Gurkhas were on a recruitment drive in the area,
when their camp was surrounded on October 19. Forty hours
after their abduction, the officers were released. The
Maoists have been opposing the recruitment of Nepali young
men into the British and Indian armies. However, this is
the first time that the Maoists have detained a foreign
recruiter.

Government restricts political and festival activities
-------------- --

19. On October 22, the Kathmandu District Administration
announced a ban on protest rallies, picketing and hunger
strikes within the capital city. On October 23, local
governments within the Kathmandu Valley announced a ban on
cultural activities associated with the Tihar festival of
lights from October 23 - 27, citing security reasons. This
is the first time that these cultural activities have been
banned.

Maoists levy "war tax" and other forced "donations"
-------------- --------------

20. Reports of Maoists collecting a NRs. 5000 (equivalent
USD 68) war tax from foreign tourists in the Makalu-Barun
area have surfaced. (Located east of Mount Everest, Makalu
is the fifth highest mountain in the world.) The tax is
five times the amount of the government's entry fee into the
area. However, fee collection on the government side ceased
over a year ago when the government office was closed for
security reasons. The Maoists have taken over the
government offices and established a post there. Reports
indicate that the Maoists collect fees from tourists at
gunpoint and supply receipts in return.

21. In another area, reports indicate that Maoists have
begun collecting forced, but negotiated, "donations" from
tourists in the northern area of Dolpa. Security personnel
indicate that Maoists usually request USD 100, but tourists
usually negotiate the figure down to NRs. 1000 (equivalent
USD 14).

Tourism: Crisis Management Cell Established
--------------

22. This week the GON developed a Crisis Management Cell to
deal with problems within the tourism industry. The
Minister of Culture, Tourism and Civil Aviation will head
this group. Representatives include the Ministries of Home
Affairs, Health, Information and Communications, as well as
the Royal Nepalese Army, Armed Police Force, Nepal Police
and private sector tourism entrepreneurs.

Clashes between Security Forces and Maoists
--------------

23. News reports indicate that 57 suspected Maoists, 3
security personnel and 5 civilians were killed during this
week's clashes around the country. Eight security personnel
were seriously injured on October 20 and one was killed when
their Kathmandu-bound military vehicle ran over a landmine.

BOGGS