UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 29-APRIL

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SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 29-APRIL
4

REFERENCE: KATHMANDU 0140

SUMMARY
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1. Prime Minister Lokendra Bahadur Chand has said that
progress is being achieved peace talks have still not begun
between the Government of Nepal (GON) and the Maoists since
the arrival in Kathmandu a week ago of the Maoist
negotiating team. After being underground for seven years,
members of the Maoist negotiation team, headed by Dr.
Baburam Bhattarai, wasted no time in exploiting the
extensive media coverage of their surfacing, including
sharing a platform with Prime Minister Chand, and addressing
a mass gathering in Kathmandu. Bhattarai said there would
be no compromise on the Maoist demands of a constituent
assembly, interim government and round-table conference.
The Maoist ideologue asserted that his party had enough
strength to overthrow the government at any time, and warned
of serious consequences if the peace talks fail. Bhattarai
again criticized the GON for not forming its negotiating
team or creating the right environment for peace talks.
However, while professing to be ready to sit at any time for
peace talks, the Maoists have insisted on new conditions
that must be met before they will participate even in
preliminary "goodwill talks." The Maoist negotiating team
kept a busy schedule all week, meeting with leaders of the
major political parties, but their contradictory rhetoric
throughout the week caused many to question whether the
Maoists truly know what they want. For their part,
representatives of the GON have been low-key this week while
Bhattarai monopolizes the press. Prime Minister Chand
allegedly has delayed the filing of cases against the
Maoists arrested for the murders of Krishna Mohan Shrestha,
Inspector General of the Armed Police Force, his wife and
bodyguard (Reftel). Accusations of code of conduct
violations continued, with the insurgents' alleged extortion
attempts and physical violence, and arrests by security
personnel of Maoist cadres.

TALKS STILL NOT UNDERWAY
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2. Despite the arrival a week ago of the Maoist negotiating
team, peace talks have still not begun. Starting dates of
April 1 and April 3, given by Narayan Singh Pun, government-
appointed peace talks coordinator, were canceled because the
Maoists allegedly were too busy. Pun reportedly has
proposed a new date of April 7 for "goodwill talks." The
Maoists, who have claimed publicly that they are ready to
sit down at any time to begin talks, have insisted on new
preconditions before they will consider attending any talks.
Krishan Bahadur Mahara, member of the Maoist negotiating
team, said talks could now begin only when the GON releases
the Maoists' five Central Committee members currently in
prison, and withdraws the cases filed by the GON in Patan
Appellate Court against Prachanda and Bhattarai.

BHATTARAI'S MEDIA CAMPAIGN
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3. Dr. Baburam Bhattarai and his negotiating team members,
Ram Bahadur Thapa(alias Badal),Krishna Bahadur Mahara, Dev
Gurung, and Matrika Prasad Yadav, have taken full advantage
of the media coverage of their arrival, granting numerous
interviews with foreign and local media to reiterate the
Maoist demands of a round-table conference, interim
government, and constituent assembly. The Maoist ideologue
said there would be no compromise from the insurgents on
these issues. Bhattarai and his team also addressed a
public gathering in Kathmandu on April 3, attended by an
estimated twenty thousand people, many of whom apparently
attended out of curiosity to see and hear the elusive Maoist
leaders. Despite the concessions made by the GON to the
insurgents, Bhattarai told the crowd that the GON has failed
to create a favorable environment for successful peace
talks, and warned of serious consequences if the talks
failed again. Badal, who also spoke at the gathering,
proclaimed that the violence committed by the Maoists was a
positive thing done in the name of oppressed people, and
said they were willing to die to create a "new Nepal."
Badal threatened to return to the jungle and continue the
"People's War" if the GON does not listen to the insurgents
or take the peace talks seriously.

MAOIST PARLEYS WITH POLITICAL PARTIES
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4. Bhattarai and his team wasted no time in courting the
major political parties. They began meetings within a day
after their arrival, including sharing a platform with the
Prime Minister at a Reporter's Club function on March 31.
The Prime Minister reportedly was unaware that Bhattarai had
been invited also, but nonetheless posed for pictures with
the Maoist leader. Bhattarai held meetings with Girija
Prasad Koirala, President of Nepali Congress (NC),and
Madhav Kumar Nepal, General Secretary of the Communist Party
of Nepal-United Marxist Leninist (CPN-UML) to gain support
for his party's ideas, and to explain the need for a
constituent assembly to replace the present constitution,
which he publicly declared was dead. Bhattarai said he and
his team would try to arrange meetings also with foreign
missions.


5. Despite efforts to win the support of the major
political parties, several Maoist leaders have spent time
condemning them. Matrika Yadav, member of the Maoist
negotiating team, labeled the Royal Palace, Nepali Congress
(NC),and the Communist Party of Nepal-United Marxist
Leninists (CPN-UML) as enemies of the Maoists. Bhattarai
also declared that the peace talks could only be held
between the two parties that had armed forces, and therefore
it would be difficult for the political parties to take
part, as they had no power. Bhattarai also lambasted the
parties for causing a "constitutional deadlock" as a result
of their power struggles.


6. The contradictory statements made by the insurgents have
caused many to question whether the Maoists truly know what
they want or if they are even serious about peace talks.
The constant emergence of new demands contrasts with the
claims by the insurgents that they are ready for peace talks
to begin. Ram S. Mahat, senior Nepali Congress (NC)
activist and former Finance Minister, echoed the thoughts of
many in a recent editorial when he said the GON appeared to
be "bending over backwards to appease the Maoists," and
getting nothing in return. As Mahat points out, the Maoists
tactic of raising new demands even in the middle of peace
talks is reminiscent of the past.


7. Prime Minister Chand reportedly has delayed the filing
of charges against the Maoists arrested for the brutal
murders of Krishna Mohan Shrestha, Inspector General of the
Armed Police Force, his wife and bodyguard (Reftel).
According to local press reports, the delay in filing
appears to be an attempt to avoid upsetting the peace
process. Ordinarily, petitions are filed two months after
investigations are completed. The GON has not yet given a
decision on whether or not it will file the petition.

INSURGENTS CONTINUE VIOLENCE
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8. Maoists reportedly have continued to commit ceasefire
violations throughout Nepal. The insurgents have halted
development programs being run in coordination with the
Nepal Red Cross Society, assaulted a woman for refusing to
donate to the insurgents, told the staff of district post
offices not to open during the peace talks, seized land and
goods from villagers, abducted a Village Development
Committee (VDC) secretary, and ordered VDC offices to close.

MAOISTS ARRESTED/RELEASED
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9. A Maoist leader carrying ammunition was arrested by
security personnel, and five other Maoists were re-arrested
shortly after their release from custody on March 30. The
GON released fourteen more Maoist cadres from prison. The
GON has said that detainees would be released in phases,
with additional releases made after the start of peace
talks.

MALINOWSKI