WEEKLY NEPAL MEDIA REPORT FROM AUGUST 17 TO 23,

UNCLAS SECTION 01 OF 03 KATHMANDU 001696

SIPDIS

E.O. 12958: N/A
TAGS: OPRC PGOV PREL KMDR NP
SUBJECT: WEEKLY NEPAL MEDIA REPORT FROM AUGUST 17 TO 23,
2004


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


1. MAOIST BLOCKADE

-- RNA providing air cover: The Royal Nepalese Army
(RNA) is to provide air cover as security for vehicles
entering and leaving Kathmandu in an attempt to break
the Maoist blockade of Kathmandu Valley. (Centrist "The
Kathmandu Post," E/D, 8/23)

-- Int'l media spreading rumors: Minister for
Information and Communications Dr. Mohammed Mohsin has
alleged the international media of spreading rumor. Dr.
Mohsin, who is also the spokesman of the government,
said that the government had been taken aback by the way
international media were giving news that could result
into panic. "There is no truth in news reports that say
Kathmandu is under siege," he said. (Media reports,
8/23)

-- Valley isolated as blockade plugs main entry points:
"The Maoists-imposed indefinite economic embargo on the
capital has paralyzed life along the busy Prithvi
Highway. The Valley has remained isolated and though
the government may claim that things are picking up,
statistics belie its claim. The country's busiest
highway, where thousands of vehicles used to get stuck
for hours due to traffic jams, was deserted." (Pro-India
"The Himalayan Times," E/D, 8/22) . The Kathmandu Valley
has been cut off from the rest of the country due to the
indefinite highway blockade since Wednesday called by
Maoist-affiliated student organizations and trade
unions. The ANNISU-R had called for the blockade
demanding the government to make public the whereabouts
of missing student leaders, enquiry into the deaths of
their leaders and compensation to the families of those
killed by security forces. (Major reports, 8/19)


2. MAOIST INSURGENCY

-- Maoist attack Khalanga second time: The Maoists
attacked Jumla Khalanga, the district headquarters of
Jumla last night, killing one security personnel and
abducting 14 persons - six government staffers,
including chiefs of Revenue Office and Agriculture
Development Office (ADO),six security personnel and two
civilians. Rebels also torched five government offices
and plundered two houses. Royal Nepalese Army (RNA)
claimed four deaths on the rebel side. (Major reports,
8/23)

-- Maoists smuggling yarsagumba: Maoists are smuggling
yarsagumba (Cordyceps sinensis),a pricey herb believed
to be a cure for impotency and found in the country's
western highlands, into India and Tibet on a massive
scale, and levying duties on traders. (The Kathmandu
Post, 8/23)

-- Companies unwilling to resume operation: Most
companies that downed their shutters due to Maoist
threats have rejected government appeals to resume
operation, stating that they could not do so unless both
the Maoists and the government reach an agreement to
amicably put an end to the present crisis. (The
Kathmandu Post, 8/22)

-- UN offers to mediate before it's too late: Assistant
Secretary General of United Nations and Deputy Executive

SIPDIS
Director of UNICEF Kul Chandra Gautam has advised the
government and Maoists to seek international assistance
in resolving the present conflict before it deteriorates
further. Gautam said UN Secretary General Kofi Anan
could offer help to Nepal for establishing peace, if
conflicting parties show their willingness. (The
Kathmandu Post, 8/21)

-- UK adopting `wait and watch' policy: British Special
Representative to Nepal Sir Jeffrey James Friday said
the United Kingdom was adopting a "wait and watch"
policy regarding whether to designate the Maoists a
terrorist outfit. (Media reports, 8/21)

-- Maoists walked out from talks due to pressure from
RIM: A year after the Maoists walked out from talks with
the government, then Prime Minister Surya Bahadur Thapa
has said that the Maoists were under pressure from RIM.
"RIM's analysis was that the Maoist movement, failed
worldwide, was gaining new heights in Nepal. RIM
suggested that the Maoists should go for 'fight to
finish' and Maoists complied." (Centrist "Kantipur,"
V/D, 8/19)

-- Maoist threats prompt 11 industries to down shutters:
Hotel Soaltee Crowne Plaza has shut down indefinitely
following multiple bomb attacks by suspected Maoist
rebels. About a dozen industries, including
multinationals, are to down shutters from tomorrow
(Tuesday) following threats from the Maoists' trade
union wing. (Major reports, 8/17)



3. CURRENT AFFAIRS

-- Nepalis taken hostage in Iraq: A shadowy Islamist
group has announced the purported seizure of 12 Nepali
men for cooperating with U.S. forces in Iraq, according
to a statement posted on an Islamist website Friday.
(The Katmandu Post and others picking up from AFP news,
8/21) On August 22, The Kathmandu Post reported: "The
actual number of Nepali workers reportedly taken hostage
by the Ansar al-Sunna Army, a militant outfit in Iraq,
is 22, claimed Nepal Association of Foreign Employment
Agencies (NAFEA) President Nirmal Gurung. Meanwhile,
the government formed a three-member probe committee to
secure information on the abduction. The government
does not allow citizens to work in Iraq due to security
concerns but a large number of Nepalese workers have
reportedly been channeled to war-torn country via India.
(Major reports, 8/22)

-- Deuba to be declared incompetent again? Prime
Minister Sher Bahadur Deuba who came to power accepting
every condition the king put forth is on his way to be
declared incompetent again. The government's inability
to provide security to industries, particularly Hotel
Soaltee, which also has the king's investment, is
leading to this. Deuba was sacked on October 4 last year
on charges of "incompetence" by the king. (Pro-Nepali
Congress "Rastriya Bimarsha," V/W, 8/20)

-- Maulana involved with international terrorist: Some
Islam teachers, Maulana, arrested from separate places
in Kathmandu six days back are suspected to have links
with international terrorists. "They have a lot of
accusations and we are investigating them. You please
understand my hints and do not try to step forward in
this case," Home Minister Purna Bahadur Khadka told a
group of Muslims who had gone to inquire about the
arrest. (Centrist "Rajdhani," V/D, 8/20)


4. JOURNALIST KILLED; MEDIA OUTRAGED

-- Journalists and professionals of various
organizations staged protest demonstration in the
capital Wednesday against Maoists' continuing activities
of killing, abduction and issuing death threats to
journalists in the recent days. Journalists took to the
streets Wednesday protesting the Maoists' "atrocities
against press freedom" following the killing of Dekendra
Thapa, a journalist of Radio Nepal recently. (The top
daily newspapers have all expressed outrage over the
killing of Dekendra Thapa, Radio Nepal journalist. The
Kathmandu Post and Kantipur published strong worded
front-page editorials while the others have regular
editorials.) (Major dailies, 8/19)
-- FNJ's letter to Prachanda: In an open letter
addressed to Maoist Chairman Prachanda, Federation of
Nepalese Journalists Wednesday, warned Maoists not to
repeat crimes against journalists, and to respect the
right to freedom of expression and their fundamental
rights. Such anarchist, inhuman and violent actions
would project them as enemies in the eyes of the
journalists, the letter stated. "Let's hope the Maoists
will correct their crimes and mistakes and exhibit
political and humane behavior." (The Kathmandu Post,
Kantipur, 8/19)
-- Maoists issue death threat to ten journalists:
Following the assassination of journalist Dekendra Raj
Thapa, the Maoists have issued death threats to ten more
journalists. (The Kathmandu Post, 8/18)

-- Maoists kill journalist: Maoists have once again
indulged in a gruesome murder of a journalist in
Dailekha district. Maoists abducted Dakendra Thapa, a
journo working from Dailekh for Radio Nepal last week
and killed him on August 11 on charges of spying. (Media
reports, 8/17)

5. OTHERS
-- U.S. introduces biometric visa processing system: The
U.S. Embassy in Nepal has introduced a new biometric
visa processing system that requires electronic scanning
of fingerprints for all non-immigrant and immigrant visa
applicants with effect from July 15. (The Kathmandu
Post, www.kantipuronline.com, 8/17)
-- Nepal-China agreements: China and Nepal signed four
agreements on economic and technological cooperation and
other areas in Beijing Monday afternoon. The documents
include the Agreement on Economic and Technological
Cooperation between the governments of the two
countries, an agreement on Nepal's use of a road in
Tibet to transport goods, an agreement on a bridge
across the borders of the two countries and an agreement
on automobile transportation. (Reports, 8/17)
MORIARTY