Identifier
Created
Classification
Origin
04KATHMANDU1372
2004-07-20 07:14:00
UNCLASSIFIED
Embassy Kathmandu
Cable title:  

WEEKLY NEPAL MEDIA REPORT FROM JULY 13 TO 19,

Tags:  OPRC PGOV PREL KMDR NP 
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200714Z Jul 04
UNCLAS SECTION 01 OF 02 KATHMANDU 001372 

SIPDIS

E.O. 12958: N/A
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT FROM JULY 13 TO 19,
2004


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

UNCLAS SECTION 01 OF 02 KATHMANDU 001372

SIPDIS

E.O. 12958: N/A
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT FROM JULY 13 TO 19,
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

-- FM unveils Rs 111 billion budget: Deputy Prime
Minister and Finance Minister Bharat Mohan Adhikari
unveiled Rs 111.68 billion-budget ordinance for the
fiscal year 2061/62 (2004/05). The budget does not
make any radical departure from those of the previous
years. It has given continuity to the reforms
programs. Of the total, Rs 47 billion has been set
aside for development purposes. The budget aims to
raise Rs 66.26 billion as revenue; Rs 15.35 billion
from foreign grants; Rs 16.95 billion as foreign loans;
and Rs 13.11 billion will be the deficit. Adhikari has
touted the budget as peace-oriented. He has set up a
peace fund of Rs 20 million. (Major reports, 7/17)

-- Civil servants to run local bodies: The government
has decided to let the civil servants run the local
bodies after the tenure of the members appointed by the
earlier government ended Thursday. (Media reports,
7/16)

-- Deuba on a mission to please army: "Prime Minister
Sher Bahadur Deuba's mission to equip the army does not
end at just that but he has been trapped in the nexus
of weapon-dealers. Deuba is increasing defense budget
and getting more weapons. For the same reason, Deuba's
wife Arzoo Deuba is going to America and Belgium via
Hong Kong. Deuba's refusal to declare ceasefire is
also said to be influenced by the same weapons-mafia..."
(Leftist "Yugpatra," V/W, 7/15)

-- Govt will not announce unilateral ceasefire: Even as
the CPN-UML is trumpeting a possible unilateral
ceasefire announcement by the government, Prime
Minister Sher Bahadur Deuba Tuesday ruled it out.
Deuba said he always favored a meaningful dialogue for
permanent peace in the country and that the government
would not make a decision on a ceasefire in haste. He
further said he would rather not opt for peace that
would have an abrupt end. (Pro-India "The Himalayan
Times," E/D, 7/14)

-- Talks on with India, UN to solve insurgency: Nepali
Congress President Girija Prasad Koirala said he has
already held three rounds of talks with India and the
UN to initiate peace talks with the Maoists. "I have
already talked to the representatives of UN Secretary-

General Kofi Annan and India," he said Monday. (Media
reports, 7/13)

2. MAOIST INSURGENCY

-- 14 teachers, 40 pupils abducted from Valley: In the
first instance of its kind in Kathmandu Valley, Maoists
Sunday kidnapped over 40 students and 14 teachers from
two schools on the outskirts of the Valley. The school
is situated just four kilometers away from an army
barrack. (The Himalayan Times, 7/19)

-- Maoists' killing spree heightens: The Maoists have
heightened their violent activities over the past week.
They have killed a teacher, a government official,
shopkeepers and other civilians and also exploded bombs
at different places in the capital. Outside of the
capital too, the rebels' activities has increased.
They shot dead Dhan Bahadur Bam, the Mayor of Dhangadi
municipality in Kailali district Monday afternoon.
(Major reports, 7/13-19)

-- No talks with government anymore: The All Nepal
National Independent Students' Union -- Revolutionary
(ANNISU-R),the student wing of the Maoists, said they
were ending all efforts to sit for dialogue with the
government and charged the government of breaching the
terms of agreement with the students. (The Himalayan
Times, 7/17)

-- Bomb explosion kills woman: The Maoists exploded a
bomb in front of the Nepal Telecom office in Lalitpur
on Thursday killing an elderly woman. Maoists claimed
responsibility for the explosion and claiming that the
action was taken against Nepal Telecom for selling only
the half of the promised 50,000 lines of pre-paid
mobile to the public and selling a huge number of SIM
cards to the "Royal American Army" (Maoists' label to
the Royal Nepal Army) and others in black market.
(Media reports, 7/16)


3. NEPAL-U.S.

-- New U.S. envoy for peace, prosperity in Nepal: Newly
appointed U.S. Ambassador to Nepal James Francis
Moriarty said that America sincerely desires to see a
peaceful democratic system and economic prosperity in
Nepal. In his first encounter with the Nepali press,
Moriarty said that his priority is to see the
resolution of crisis. On Bhutanese refugees problem,
he said that the bilateral talks between Nepal and
Bhutan was the best solution. He, however, said that
the U.S. was preparing to provide humanitarian support
to the refugees. (Centrist "Kantipur," V/D and others,
7/18)

-- King receives letters of credence: King Gyanendra
received letters of credence from Ambassador Designate
of the United States of America to Nepal James Francis
Moriarty at the Royal palace on Friday. Prime Minister
Deuba was also at the event. (Media reports, 7/17)

-- American bomb at airport: "A suitcase with the
address: American Embassy, Panipokhari, Nepal on one
side and 'Bomb Inside' on the other side reached the
Kathmandu airport last Tuesday, causing panic among
airport officials. The cargo building was vacated and
the security defused the bomb..." The customs office is
tightlipped over which company and flight the suitcase
came from... One army official said that the embassy must
have brought the bomb for training. Does the embassy
hold security trainings?" (Leftist "Jana-Aastha," V/W,
7/14)


4. OTHERS

-- Economy projected to grow by 3.6 percent: Despite
continuing conflict in the country, a government
economic survey has projected the economy to grow by
nearly 3.6 percent. (Major reports, 7/16)

-- Blair hails Deuba, offers help: British Prime
Minister Tony Blair congratulated Prime Minister Sher
Bahadur Deuba on forming a new multi-party government
and also offered help to Nepal to push ahead the peace
process. (Media reports, 7/16)

-- Donors to resume works in Karnali: The major four
donor agencies have decided to resume their development.
works in Karnali zone following security assurance from
Maoists. Earlier, ten donor agencies including SNV,
GTZ, DFID and WFP, had suspended their works in Karnali
zone from mid-May citing deteriorating security
situations and threats from Maoists.
(www.kantiDuronline.com, 7/14)

MORIARTY