UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 15-21

UNCLAS SECTION 01 OF 04 KATHMANDU 000515

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E.O. 12958: N/A
TAGS: PHUM PTER CASC PGOV NP IN
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 15-21

REFERENCE: (A) KATHMANDU 0471

(B) KATHMANDU 0145
SUMMARY
--------------


1. Prime Minister Lokendra Bahadur Chand told the local
press that peace talks would likely start in April, while
Dinanath Sharma, senior-level Maoist leader and member of
the Maoist negotiating team, said he was ready to begin
talks at any time. Narayan Singh Pun, Minister of Physical
Planning and Works, and government-appointed peace talks
coordinator, expressed confidence that the peace talks would
succeed. Minister Pun also reasserted that Maoist leaders
would not be arrested during peace talks. Twenty more
Maoists were released from various jails throughout the
country. Maoists reportedly have abducted two Nepali
Congress (Democratic) workers in Pyuthan District, accusing
them of being informants, while a splinter group of the
insurgents has stepped up extortion demands from teachers in
Sankhuwasabha District. Maoists in Kaski District
reportedly are still widely engaged in recruiting, and are
storing weapons in the jungle and other hideouts, promising
a "vicious war" if talks failed. The All Nepal National
Independent Students' Union-Revolutionary (ANNISU-R)
unlocked college campuses on March 16 after Tribhuvan
University (TU) reportedly agreed to fulfill their demands
(Ref A),but expressed anger at the Home Ministry's press
statement issued on March 16 that Purna Poudel, General
Secretary of ANNISU-R, was not in custody. Devendra

SIPDIS
Parajuli, President of ANNISU-R, accused the GON of lying
about Poudel's whereabouts, and reportedly accused the
security personnel of murdering ANNISU-R cadres in custody.
ANNISU-R promised a "strong action" if their cadres were not
released. The GON announced on March 16 that it plans to
reconstruct infrastructure destroyed during the Maoist
insurgency, and rehabilitate displaced people, particularly
children and widows. The families of five youths mistakenly
killed in Nuwakot District by security forces in November
2002 (Ref B) are still waiting to receive compensation
promised to them by the GON.

POSSIBLE START DATE FOR PEACE TALKS
--------------


2. Prime Minister Lokendra Bahadur Chand told the local
press on March 15 that peace talks would likely start in
April. The Prime Minister said that the Maoists had
requested three weeks to inform all of their cadres of the
March 13 signing of the code of conduct.


3. Dinanath Sharma, senior-level Maoist leader and member
of the Maoist negotiating team, told reporters on March 16
that the focus of the peace talks should be on how much the
participants are willing to sacrifice and not how much they
want to gain. Sharma also promised that more senior Maoists
would appear in public if the GON created a conducive
environment, declaring that they were ready to begin talks.


4. Narayan Singh Pun, Minister of Physical Planning and
Works and government-appointed peace talks coordinator,
expressed confidence on March 16 that the peace talks would
succeed, and said the GON was "on the right track."
Minister Pun also said that, because restoring the economy
of the country was vital to ensure that democracy
flourished, economics would be one of the prime topics of
the peace talks.

GON READY TO ACT ALONE
--------------


5. Prime Minister Chand announced on March 15 that the GON
would try again to involve the major political parties in
peace talks, but that the Government of Nepal (GON) was
ready to move ahead on its own if necessary. Chand
reportedly dismissed the labeling of his government as
illegitimate, and expressed concern that the major political
parties might be trying to disrupt the peace process. Chand
proclaimed that the GON was committed to maintaining peace
and accused the main parties of boycotting the peace
process. (Note: The major parties boycotted, for the
second time, an all-party meeting called by Prime Minister
Chand on March 11. They had boycotted a previous all-party
meeting to which they were invited by Chand on February 17.
End note.)

PUN SAYS NO ARRESTS OF MAOIST LEADERS
--------------


6. Minister Pun said on March 19 that Maoist leaders would
not be arrested during peace talks. Pun said the code of
conduct guaranteed freedom of movement by Maoist negotiators
and that the GON was committed to honoring the code.


7. Five Maoists were re-arrested shortly after their
release on March 16 in Jhapa District. The detainees had
been in custody for three months. The Chief District
Officer (CDO) said he was aware of their re-arrest but did
not know where they had been taken. Two ANNISU-R cadres
were arrested on March 14 in Surkhet District while
attending an organizational meeting. Devendra Parajuli,
President of ANNISU-R, said the arrests were a violation of
the code of conduct.


8. In Salyan District, thirteen Maoists were released from
custody on March 18. Security officials reportedly released
them to help generate support for the peace process. Three
Maoists in Baglung District, including a journalist and a
teacher, and three from Sarlahi District were also released
this week. A senior-level Maoist arrested in Damauli
District by army personnel a week after the announcement of
the ceasefire was released on March 20.

MAOIST CADRES IGNORE CODE OF CONDUCT
--------------


9. Maoists reportedly have abducted two Nepali Congress
(Democratic) workers in Pyuthan District on March 19. The
insurgents have accused them of being informants for
security forces prior to the ceasefire.


10. The Maoist affiliated Kirant Worker's Party (KWP)
apparently has shunned the code of conduct guidelines and
reportedly are extorting money from school teachers in
Sankhuwasabha District. The KWP activists allegedly are
armed and visiting schools demanding portions of the
teachers' salaries.


11. Locals in west-central Baglung District are still
unable to return home because the Maoists have not
relinquished control of their land even after the ceasefire.
According to local press accounts, over a hundred people
have been displaced throughout the district after the
insurgents seized their land, some of which was taken after
the announcement of the ceasefire. Maoist leaders in the
eastern district of Ilam reportedly are asking people to
return to their homes. Many of the villagers have stayed
away despite the ceasefire, however, out of fear they will
be forced again by Maoists to make monetary contributions.
The insurgents have apparently told the villagers it was
safe for them to return and had nothing to fear if they did
not take any action against the Maoists.


12. Local journalists met with Maoists in the central hill
district of Kaski on March 18 and reported that the
insurgents are still widely engaged in recruiting, and are
storing weapons in the jungle and other hideouts. The
Maoists have also shunned offers of food by the "feudal
rulers and imperialists" and allegedly have said they do not
accept these acts of "so-called cooperation" by the
government. The district leader also warned that if the
talks failed there would be a vicious war.


13. Maoists reportedly issued a statement on March 15
demanding that the GON supply food to villagers in Baglung
District. The food depots there are empty due to earlier
raids by the insurgents, and many people throughout the
district reportedly are facing a severe food crisis. The
GON already has been supplying rice.

ANNISU-R UNLOCKS COLLEGES
--------------


14. The All Nepal National Independent Students' Union-
Revolutionary (ANNISU-R) unlocked college campuses on March
16 after Tribhuvan University (TU) reportedly agreed to
fulfill their demands, which included the release of all
imprisoned students; the release of information on the
whereabouts of Purna Poudel, General Secretary of ANNISU-R;
an immediate end to arrests of pro-Maoist students; a ban on
security forces inside campuses; and the admission of pro-
Maoist students to government-run universities.
The militant student wing of the Maoists had padlocked
branches throughout the country of government-run Tribhuvan
University since March 9 (Ref A).


15. ANNISU-R cadres reacted angrily to the Home Ministry's
press statement issued on March 16 that Purna Poudel,
General Secretary of ANNISU-R, was not in custody, nor were
there any records of him being detained. Devendra Parajuli,
President of ANNISU-R, held a press conference on March 19
and declared that the GON was lying about Poudel's
whereabouts, and that army and police personnel had arrested
Poudel on April 26, 2002. Parajuli also reportedly accused
security personnel of murdering ANNISU-R cadres in custody.
Poudel insisted that the GON reveal the whereabouts of all
its missing cadres and release them or face a "strong
movement against the government."

RECONSTRUCTION AND REHABILITATION PLANS
--------------


16. On March 14 Kulchandra Gautam, Assistant Secretary
General of the United Nations (UN) and Deputy Executive of
UNICEF, said in Kathmandu that the UN could play a pivotal
role in the reconstruction of Nepal once the current
conflict is resolved. Gautam said that there was much
sympathy within the international community for Nepal and
that many governments would be agreeable to launch
humanitarian and reconstructive programs for the regions hit
hardest by the insurgency.


17. The GON announced on March 16 that it plans to
reconstruct infrastructure destroyed during the Maoist
insurgency and rehabilitate displaced people. The National
Planning Commission (NCP) said priority would be given to
district headquarters, bridges, airports, school buildings,
health clinics, road repair, and communication systems. Job
training and shelter would also be available for those
displaced as a result of the insurgency. The GON's figures
show that almost three thousand people have been displaced,
but many human rights organizations claim the number is much
higher. There is no date set for when these programs will
begin.


18. The GON announced a rehabilitation program on March 19
for over one thousand children in the mid and far western
districts. The program is aimed at helping those children
affected by the insurgency as well as women who were
widowed. Under the program, the children would receive free
education, lodging and food while the widows would have the
opportunity to obtain interest-free loans for start-up
businesses. Critics of the program, however, have deemed it
as inadequate and limited to only a handful of insurgency
victims.


19. In direct contrast to past statements of party
objectives, Krishna Bahadur Mahara, member of the Maoist
negotiation team, said on March 19 that the economy is the
basic foundation of the country and that it was important to
develop a free market economy. Mahara said the business
community has many troubles that need to be solved before
Nepal's economy can prosper, and his party has developed a
seventy-five-point plan. No details of this plan have been
provided. Maoists traditionally have discouraged private
sector growth and made numerous threats against foreign
businesses and investors.

GON SLOW WITH COMPENSATION
--------------


20. The families of five youths mistakenly killed in
Nuwakot District by security forces in November 2002 (Ref B)
are still waiting to receive compensation promised to them
by the GON. Despite frequent visits to the District
Administration Office (DAO) the families have been sent away
repeatedly empty-handed. The Chief of the DAO said he has
not received the money from the GON, but would give it to
the families as soon as he did.

MALINOWSKI