UPDATE ON NEPAL'S MAOIST INSURGENCY, JULY 17-23, 2004

UNCLAS SECTION 01 OF 04 KATHMANDU 001407

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E.O. 12958: N/A
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SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, JULY 17-23,
2004

REFERENCE: KATHMANDU 1360

SUMMARY
--------------


1. Government of Nepal (GON) officials said they would not
compromise on "monarchy and multi-party democracy," while
the Prime Minister warned the Maoists that his "elasticity
has a limit." Maoist Chairman Prachanda issued a scathing
rebuke, declaring that his party was ready to move forward
with its revolution "at any cost." Nepal's political parties
remained somewhat hopeful that talks would resume, despite
the criticisms hurled from both the GON and the Maoists.
For the first time, Maoists boldly abducted students and
teachers from a school within the Kathmandu Valley for a
"three-day military training course" (Reftel). Police
negligence was blamed for the death of a civilian after a
bomb left by Maoists exploded in the valley. Seven other
civilians were also killed by the rebels. Nine security
force personnel and nine Maoists were killed in separate
incidents. Maoists reportedly are forcing families of
security personnel to vacate their homes. The All Nepal
National Independent Students' Union- Revolutionary (ANNISU-
R),the Maoist-affiliated student wing, accused the
Government of Nepal (GON) of "breaching" agreements and
warned it should be ready for "retaliation." END SUMMARY.

GON SETS CONDITIONS FOR
DIALOGUE WITH MAOISTS
--------------


2. On July 19, Minister for Information and Communications,
Dr. Mohammed Mohsin, said the government will hold dialogue
with the Maoists, but would not initiate talks until the
Maoists demonstrated a "clear commitment" to achieving
results. Mohsin also said the government would not
compromise on the "monarchy and multi-party democracy" and
would not give into the demands of the Maoists for a
constituent assembly. He appealed to international
organizations, political parties, civil society and foreign
countries to "cooperate with the GON" in securing
negotiations with the Maoists, but dismissed any UN
mediation.

MAOISTS TO PROCEED "AT ANY COST"
--------------


3. In response to Minister Mohsin's comments, Maoist
Chairman Prachanda said his party would not sit for dialogue
and dismissed the GON's alleged willingness to hold fresh
talks as an "illusive publicity stunt." In a statement
issued on July 20, the Maoist chairman reiterated his
party's demand for a constituent assembly and said
constituent assembly elections were necessary before
dialogue could be held. Prachanda once again declared that
his party would welcome UN mediation to help find an "easy
and peaceful outlet" for the current political turmoil,
despite the GON's refusal to invite the UN for mediation.
Prachanda said his party was ready to move forward with its
revolution "at any cost" and accused the Government of Nepal
(GON) of leading the country into "more chaos," and
attempting to "institutionalize military authoritarianism."
The local press quoted an unnamed GON cabinet member as
dismissing Prachanda's statement as "propaganda" and said
there was a "tremendous willingness" from the Maoists to
meet for dialogue.

UNCERTAINTY SURROUNDS PEACE TALKS
--------------


4. Nepal's political party leaders remain unsure that peace
talks will resume in light of the daily exchange of words
between GON officials and Maoist leadership. Madhav Kumar
Nepal, General Secretary of the Communist Party of Nepal-
United Marxist Leninist (CPN-UML) challenged Maoist Chairman
Prachanda to show his party's sincerity in achieving peace,
declaring, "...issuing press statements will not help
resolve problems." Nepal also opined that the GON should
initiate talks, and ensure that the dialogue moves in "a
positive direction." Rastriya Prajatantra Party (RPP)
spokesman Roshan Karki was less enthusiastic, however,
noting that chances of negotiations were slim because the
GON had ruled out constituent assembly. The Peoples' Front
Nepal (PFN) Vice-Chairman accused the GON of not being
"serious" about holding peace talks with the Maoists. On
July 21 Prime Minister Sher Bahadur Deuba reiterated that
his government would maintain "maximum flexibility," but
also added that his "elasticity has a limit."

MAOISTS ABDUCT STUDENTS IN VALLEY
--------------


5. On July 18, Maoists abducted 50 students and 12 teachers
from a school within the Kathmandu Valley for a "three-day
military training course" (Reftel). Although Maoists have
forcibly rounded up thousands of students from schools
across Nepal, this marks the first time that they have taken
students and teachers from within the Kathmandu Valley. All
of the students and teachers were released unharmed on July

20. While in captivity they were subjected to 13-hour
political diatribes by district level Maoist leaders.
Students said the Maoists asked for their support in
fighting for the "independence of Nepali people." Most
students, weary from enduring long walks and hours of
speeches, admitted they did not comprehend most of what the
rebels were saying.

MAOIST BOMB KILLS CIVILIAN;
POLICE NEGLIGENCE BLAMED
--------------


6. A powerful bomb reportedly left by Maoists killed one
civilian and injured five others in Kathmandu on July 18.
Rebels left the bomb on an unattended bicycle outside a
police post. According to press reports, the police claimed
to have been "frantically" searching for the bomb, while
other reports suggest the police were watching the bicycle
from their post. Policemen then allegedly told a vegetable
vendor to take the bicycle away, at which point the bomb
exploded. The following day, Royal Nepal Army (RNA)
officials ironically issued public warnings not to touch any
suspicious objects and to immediately report such sightings
to security forces. Police were similarly accused of
negligence and apathy after two bombs placed at the side of
a road in Kathmandu by Maoists remained there for 24 hours.
Maoists had planted the bombs as a deterrent after the
abduction of the teachers and students from a Kathmandu
Valley school on July 18. Another bomb blast on July 20 in
Doti District killed one civilian and two Maoists. Thirteen
other people were injured.

HEIGHTENED VIOLENCE
--------------

7. On July 21, Maoist rebels, targeting a private
helicopter, managed to place an improvised explosive device
on a helipad in the western district of Kalikot. The bomb
exploded as the helicopter landed, killing one police
officer and injuring four soldiers. The helicopter was
being used to deliver food to security forces. On that same
day, in the central district of Kapilbastu, a Maoist ambush
killed a police officer and a soldier. Seven other security
personnel reportedly are missing following the early-morning
clash that lasted four hours. Seven other police were
killed by Maoists in other incidents: one in Kailali, whose
body was discovered on July 22 after being abducted several
days earlier; two in the Maoist stronghold of Dang on July
20; one in Banke District on July 21; one in Kalikot on July
19; one in Mahottari on July 16; and one in Chitwan on July

18.


8. Maoists killed seven civilians this week in separate
incidents. On July 19, Maoists killed a farmer in Bara
District, and another was killed in the western district of
Dailekh after failing to pay the rebels' demand of USD 500.
On that same day, insurgents killed a man in Rupandehi,
accusing him of spying for the government. The body of a
man abducted by Maoists in the western district of Dang was
found on July 19. On July 16, also in Dang District,
Maoists reportedly dragged an ill 76-year old man from his
bed and shot him to death. (NOTE: This despite one of the
Maoists 40 policy demands from 1996 including the plank that
"Orphans, the disabled, the elderly and children should be
duly honored an protected." END NOTE.) On that same day,
Maoists killed two civilians in the districts of Dhankuta
and Nawalparasi on charges of spying, and a Nepali Congress
(NC) cadre in the district of Rautahat.


9. Security forces killed nine Maoists this week: one each
in Nuwakot District and Taplejung on July 21; another in
Taplejung on July 20; four in Banke on July 18; three in
Panchthar, Accham, and Nawalparasi on July 17.


10. According to the Informal Sector Service Center
(INSEC),a local human rights organization, the Maoists have
heightened their killing spree in recent days. Since Sher
Bahadur Deuba took office as Prime Minister, the Maoists
have killed 137 people. INSEC also claims that security
forces have killed 123 people over the same period. On
average, six people are being killed everyday.

MAOISTS THREATEN FAMILES OF SECURITY PERSONNEL
-------------- -


11. Maoists forced 13 families to leave their homes in the
district of Bardiya because their relatives are working with
security forces. The rebels ordered the families to leave
with only 24 hours notice after failing to persuade their
relatives to leave the security forces. In Nuwakot
District, just north of Kathmandu, Maoists forced six
families to vacate their houses and subsequently locked up
the houses. The rebels are demanding that the villagers
bring back any family members serving in the security
forces. According to locals, over 100 people from the
village are in the army or police.


12. On July 22, the local press reported that a four-member
team of the International Committee of the Red Cross (ICRC)
were prevented from entering a village in Parbat District.
The ICRC representatives were headed to Lunkhuredeurali
Village Development Committee (VDC) in the southern part of
the district to assess the human rights situation there. A
group of Maoists told them to turn back. That region of
Parbat is one of the most affected areas by the Maoist
insurgency. Maoists have warned all of the residents in the
District Headquarters of Phidim in Panchthar, which borders
India on the east, to vacate immediately. The rebels
reportedly are planning protests in the headquarters from
August 17 to September 8, and warned residents that
"anything can happen" during that time. The Maoists have
announced "peoples' mobilization" programs, vehicle
blockades, meetings and said they will also capture the
district headquarters.

ANNISU-R WON'T SIT FOR TALKS
--------------


13. On January 16, the All Nepal National Independent
Students' Union- Revolutionary (ANNISU-R),the Maoist-
affiliated student wing, accused the Government of Nepal
(GON) of "breaching" agreements and warned it should be
ready for "retaliation." Lekhnath Neupane, president of
ANNISU-R, alleged that killings and "constant abductions" of
pro-Maoist student leaders by the GON had forced the
militant group to end efforts for dialogue. Neupane said
the GON was ignoring agreements made between the two sides
and has not created a conducive environment for holding
talks, despite the GON removing the "terrorist" label from
the organization. Neupane also accused the GON of
continuing to kill ANNISU-R cadres. A central member of
ANNISU-R and a former chairman reportedly were killed on
July 15. ANNISU-R's demands include free education for
secondary level students and a reduction of 20 percent in
tuition at private schools, and the release of information
pertaining to the whereabouts of missing and detained ANNISU-
R cadres. There was no official response from the Ministry
of Education and Sports.


14. ANNISU-R has forced the closure of 47 private schools in
the far-eastern district of Jhapa since July 17 after
alleging they were operating without permission. Over
15,000 students were affected by the closures.

MORIARTY