WEEKLY NEPAL MEDIA REPORT FROM JUNE 29 TO JULY

UNCLAS SECTION 01 OF 03 KATHMANDU 001269

SIPDIS

E.O. 12958: N/A
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT FROM JUNE 29 TO JULY
6, 2004


STATE FOR NP, AC, PM
STATE FOR IN/R/MR
STATE FOR SA/INS, PM/CBM, PM/PRO
STATE FOR SA/PPD


1. POLITICAL AFFAIRS

-- PM forms 31-member cabinet: Prime Minister Sher
Bahadur Deuba has expanded his three-member cabinet to
31-member cabinet by inducting 28 ministers from four
political parties and civic society on Monday. (Major
reports, 7/6)

-- Cabinet faces: The cabinet has 19 cabinet ministers
including a deputy prime minister from the CPN-UML, the
major coalition partner, five from Nepali Congress
(Democratic),two from Rastriya Prajatantra Party (RPP)
one from Nepal Sadbhawana Party (NSP). The cabinet has
two royal representatives. Under royal recommendation,
former National Assembly (NA) Chairman Dr Mohammad
Mohsin and former king-appointed NA member, Krishna Lal
Thakali, have been appointed cabinet ministers. Former
DPM Badri Prasad Mandal has taken charge of the
Ministry of Forest and Soil Conservation". (The
Kathmandu Post, 7/6)

-- Dissatisfaction in parties over cabinet: "... Nobody
is inspired by the faces in the newly formed 31-member
cabinet. Those who have been inducted into the cabinet
have also failed to gather confidence of their party
colleagues. There are divisions within the CPN-UML
regarding the names of the ministers. The party has
sent inexperienced and brash people to the cabinet.
The workers of ruling Nepali Congress (Democratic) are
also unhappy over the selection. The king's faithful
are also unhappy over the king's nominations..." (Pro-UML
"Drishti," V/W, 7/6)

-- RPP and NSP in trouble: "... President of Rashtriya
Prajatantra Party (RPP) Pashupati SJB Rana has been
accused of sending names to please the palace. RPP
spokesperson Roshan Karki accused Rana of 'striking a
deal' with the PM. She said that Rana wanted his party
man to get the portfolio of minister for water
resources for which he nominated PM Deuba's mother-in-
law Pratibha Rana for the post of ministership from
RPP... Likewise Nepal Sadbhavana Party's Badri Prasad
Mandal, who has already become DPM, nominated himself
for minister's post. NSP partyworkers have strongly
condemned his move calling it an insult to 'Madhesis'
(people from the southern plains)..." (Kantipur, V/D,
7/6)

-- RPP to split: A faction of the Rashtriya Prajatantra
Party (RPP) led by former Prime Minister Surya Bahadur
Thapa has decided to launch a new political party.
(www.neoalnews.com, 7/6)
-- Girija met Maoist leaders: It is said that Nepali
Congress President Girija Prasad Koirala met Maoist
leaders Prachanda and Dr. Baburam Bhattarai in New
Delhi on Thursday morning in presence of an Indian
leader. According to his family source, Dr. Shekhar
Koirala was also present in the meeting. Koirala is
trying to go to power with the Maoists' support. (Pro-
Deuba "Tarun," V/W, 7/5) ". However, upon his return
Koirala denied meeting any Maoist leader". (Major
reports, 7/6)

-- Govt. and partners unveil CMP: After hectic parleys
for a long time, the four political parties led by PM
Deuba's Nepali Congress (Democratic) announced a common
minimum program (CMP) with a vow to restore peace in
the country. The 43-point CMP divided into four parts
primarily stresses the need to resolve the Maoist
problem and hold general elections at the earliest with
consensus among all political forces. (Major reports,
7/1)

-- Govt forms panel to probe on disappearance cases:
The Home Ministry Thursday formed a five-member
committee to probe into the status of indiv
iduals who
have gone missing after being arrested by the security
forces in different times. (Media reports, 7/2)


2. MAOIST INSURGENCY

-- 13 killed in ambush: A dozen policemen and a
civilian were killed when Maoists detonated a powerful
landmine blowing up the pick-up they were travelling
in, at Bahuarwa Bhatha VDC, along Padam road, 10 kms
west of Birgunj, early this morning. (Major reports,
7/6)

-- Defense ministry demands additional 30b rupees: In
addition to the already earmarked defense budget of
around Rs. 7.5 billion for the upcoming fiscal year,
the Ministry of Defense has asked the Ministry of
Finance to allocate Rs. 3.10 billion more. The
security budget has been soaring all along since the
Maoist rebels took arms in 1996. Since then the total
security budget has increased by 300 per cent. (The
Kathmandu Post, 7/2)

-- Maoists gun down Pokhara mayor: A group of Maoists
on Friday shot dead Mayor of Pokhara Harka Bahadur
Gurug and seriously injured his bodyguard and car
driver. He is the second mayor to be assassinated by
the rebels. Local Maoists have claimed the
responsibility. (Media reports, 7/2)

-- Maoists ready for UN-mediated talks: Chairman of the
Communist Party of Nepal (Maoist) Prachanda Thursday
said his party will take up "more violent means" if the
government goes on refusing the United Nations to
"facilitate" peace negotiations in Nepal. He also said
that the Deuba government does not have the power to
find a peaceful and progressive political way out of
the current crisis as it is a "continuation of the old
regime." The Maoist leader even accused the CPN-UML
leadership for betraying the people's democratic
aspirations by taking decisions that amounted to
"conspiracy" and backing "regression." "The CPN-UML
leadership has fallen in status and become a slave of
autocracy. The Nepali people will never forget this
process of conspiracy and betrayal," the statement
stated. (Major reports, 7/2)

-- 10 Maoists, 1 security man killed: At least ten
Maoists and a security man were killed in two separate
incidents in Kaski Arghakhanchi district Wednesday.
(Media reports, 7/1)


3. NEPAL-U.S.

-- U.S. envoy James F. Moriarty arrives: The newly
appointed ambassador of United States of America to
Nepal James Francis Moriarty arrived here on Monday.
The U.S. envoy Moriarty was received at the Tribhuvan
International Airport by ADC of King Gyanendra and
Deputy Chief of Protocol. (National News Agency report
in leading dailies, 7/6)
-- U.S. couple launches drive to bring adopted daughter
from Nepal: "Joe Parisi and Erin Thornley went to
Kathmandu, Nepal, on June 28, 2003, to meet their newly
adopted daughter, Tsewang. They were excited about
bringing their first child home to America. A year
later, Tsewang is still in Nepal, victim of a
belligerent bureaucracy at the U.S. consular office in
the American Embassy in Kathmandu. The office is run
by officials who adamantly refuse to grant a visa to
the legally adopted 5-year-old and won't listen to
pleas from the parents or even from lawmakers,
including U.S. Rep. Tammy Baldwin, Democrat-Madison..."
(The Kathmandu Post, 7/3)

-- U.S. provides fund for temple renovation: The U.S.
embassy announced a grant of over two million rupees
for the restoration of Kageshwor Mahadev temple,
situated at Kathmandu Durbar Square. A press release
issued by the U.S. embassy stated, "The fund has been
awarded to the Kathmandu Valley Preservation Trust
(KVPT) for the restoration of Kageswar Mahadev temple
from the 2004 Ambassador's Fund for Cultural
Preservation (AFCP) program." Nepal is one among the
41 countries that has been awarded the grant out of 121
eligible countries. (Major dailies, 7/1)

BOGUE