MAOIST VIOLENCE IN NEPAL: NO EU CLEARINGHOUSE

C O N F I D E N T I A L BRUSSELS 003207 SIPDIS E.O. 12958: DECL: 07/28/2014 TAGS: PTER KT NP EUN USEU BRUSSELS SUBJECT: MAOIST VIOLENCE IN NEPAL: NO EU CLEARINGHOUSE ACTION YET REF: STATE 159970 Classified By: Political Officer Maren Smith for reasons 1.4 (b/d). ¶1. (C) We met on July 28 with Mario Ferrucci, deputy head of the India, Nepal, and Bhutan unit in the Commission's External Relations directorate, to discuss reftel points. He said that UK pressure for designating the Maoists as a terrorist organization was "a constant" in EU discussions, most recently at the July 22 COREPER meeting. According to Ferrucci -- who admitted that the Commission has no role in the designation decision but is closely following the debate -- the EU's position has not changed due to the "legitimate possibility" that the peace process could take off. It would not help, he said, to add the Maoists to the list of terrorist groups at this point. Ferrucci also questioned whether a freeze on Maoist assets in Europe -- which he claimed were minimal -- would really have much of an effect on the group's activities. ¶2. (C) Ferrucci confirmed that the Dutch Presidency was drafting a strong statement intended to send a parallel message, warning the Nepalese government to make progress on development, good governance, and human rights reforms while also threatening the Maoists with being added to the list of terrorist groups if they did not support peace talks. The EU has agreed to review progress and reconsider designation "by the end of the year," according to Ferrucci. ¶3. (C) We also discussed points on July 27 with British and Dutch contacts, who -- like Ferrucci -- noted that some member states were concerned that freezing assets now would hurt the peace process. The Council will revisit the issue in September. According to British diplomat Anna Clunes, the Germans have also argued that the Maoists do not meet the EU criteria for designation because no competent (judicial) authority has started an investigation or legal proceeding. She suggested that it might be useful for the U.S. and the UK to jointly lobby the Germans on this particular question in September.