UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 20-26,

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E.O. 12958: N/A
TAGS: PINS PTER CASC PGOV NP PHUM
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, MARCH 20-26,
2004

REFERENCE: (A) KATHMANDU 0516
(B) KATHMANDU 0437

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


1. A deadly attack on March 20 topped a week of violence in
Nepal in which at least 187 Maoists, 35 security personnel
and 50 civilians lost their lives. The UN Secretary General
appealed for an end to the violence, and reiterated the UN's
offer to help in finding a solution. The Prime Minister
said he takes the UN's statement "very seriously," but some
of Nepal's major political parties dismissed UN mediation
until there was "a legitimate government." The local press
reported a significant increase in the number of Maoists
entering Indian cities along the India-Nepal border, while
officials in Mumbai reportedly investigate Maoist
recruitment posters placed in train stations. Maoist-
planted bombs rocked the Kathmandu Valley, including several
in Thamel, the main tourist hub. Amnesty International (AI)
ranks Nepal as having the highest number of cases of
disappearances. A Maoist-imposed blockade in the far west
began with a series of bombs. End Summary.

AMBUSHES AND OFFENSIVES; MAJOR CASUALTIES
--------------


2. A well-planned Maoist attack on a district headquarters
on March 20 topped a week of violence. Several thousand
Maoist rebels launched a nighttime assault on Beni, the
headquarters of Myagdi District in the west-central region
of Nepal (Ref A). At least sixteen Royal Nepal Army (RNA)
soldiers, fourteen police officers and thirty civilians were
killed. Initial reports claimed that 200-500 rebels were
killed, while only 120 bodies have been found so far. The
rebels attacked the police station, the bank, the District
Administration Office, and a jail, subsequently releasing
all of the inmates. They were unable to take over the RNA
barracks. A videotape obtained from the clash site reveals
that the rebels had planned to overrun the town and hold it
for three days. On the tape, a Maoist commander, speaking
to hundreds of people, including children, women, and young
soldiers, declares that "our rebellion has reached a
decisive stage," and "now it's time to make sacrifices."
Despite the heavy losses suffered by the security forces,
RNA spokesman Colonel Deepak Gurung said "it is a major
success of the army."


3. During the clash, Maoists also abducted thirty-three
security personnel, including the Chief District officer
(CDO),the highest ranking civil servant, and the Deputy
Superintendent of Police (DSP),the highest-ranking police
officer. On March 22 rebel sources said the hostages would
be released only after the GON released three of their
senior members (Matrika Yadav, Suresh Ale Magar, and Tilak
Sharma) who currently are in detention. Amnesty
International (AI) has appealed for the release of those
abducted, reiterating that international law "clearly
prohibits the taking of hostages."


4. Air raids carried out on March 23 in Parbat by security
forces attempting to flush out Maoists fleeing after the
Beni clash reportedly left over 50 rebels and 20 civilians
dead. The air strikes were carried out after security
forces reportedly received a tip that insurgents who
participated in the March 20 ambush in Myagdi had fled to
neighboring Parbat. Maoists claim the death toll is
exaggerated.

5. Seventeen Maoists were killed in other clashes this
week: three in the western district of Dang on March 25;
another one in Dang on March 24; two in Dhanusha District on
March 22; three in the central district of Kaski on March
20; and ten in Dhading District on March 20. Five security
personnel also lost their lives in Maoist ambushes: one RNA
soldier was gunned down in Rupandehi, and a retired
inspector of the National Investigation Department in Kavre
District on March 25; two police officers abducted by
Maoists were found dead in Banke District on March 20; and
two police officers were killed in Dhading District on March

19.

UN SECRETARY APPEALS FOR END TO VIOLENCE
--------------


6. Following the deadly clash in Beni, UN Secretary General
Kofi Annan appealed for an immediate end to the violence in
Nepal and offered his assistance. In the statement issued
on March 23, Annan said Nepal's economic and social
development "is being seriously hampered," and said he was
disturbed by the "serious human rights violations." The
Secretary General also reiterated his willingness to help in

SIPDIS
any way.


7. On March 24 however, representatives from some of
Nepal's major political parties dismissed UN mediation until
there was "a legitimate government." Bharat Mohan Adhikary,
politburo member of the Communist Party of Nepal-United
Marxist Leninist (CPN-UML),agreed there was an "urgent
need" for UN mediation, but said an all-party government
should be formed first and Parliament reinstated. Narahari
Acharya, Nepali Congress (NC) central committee member, said
NC would not rule out UN intervention, but would have to
determine "to what extent we should welcome its role."
Abhuvan Pathak, central committee member of the Rastriya
Prajatantra Party (RPP) refused to accept any third party
intervention, declaring defiantly that Nepalis are "capable"
of solving their own domestic matters.

MAOISTS SEEKING REFUGE IN INDIA
--------------


8. On March 23, the local press reported a significant
increase in the number of Maoists entering Indian cities
along the India-Nepal border. According to the report,
officials along the border believe many of the rebels are
seeking medical treatment for injuries after clashes with
Nepalese security forces. Others are Indian nationals,
particularly businessmen, returning home to India to escape
the violence and extortion demands of the insurgents.


9. An Indian newspaper reported on March 23 that Maoists
from Nepal are placing recruitment posters in India's train
stations. According to the article, the posters, with
photographs of top brass Maoists, have been plastered in
train stations in Mumbai. Nepalese who migrated to Mumbai
reportedly are worried that Indian police will drive them
away in an attempt to pre-empt any Maoist activity. The
article quoted an official in Mumbai as saying that because
the city was so large "any group here could easily merge
with underground groups and carry out joint operations." He
went on to say, however, that if any Maoists were found in
India they would be repatriated "immediately to Nepal."

BLASTS ROCK KATHMANDU
--------------


10. Five separate Maoist-planted bombs rocked the Kathmandu
Valley. On March 25, two blasts occurred in Thamel, the
main tourist hub. There were no casualties in that
incident. Superintendent of Police Deepak Ranjit blamed the
blasts on the Maoists' special task force, and said they
were trying "to create havoc in the city." On March 23,
three blasts injured one police officer and three civilians,
two of whom were children. Two of the bombs were set off at
government buildings, one of which was again in the heart of
Thamel, and another exploded on the side of a road. A
fourth bomb was defused by a bomb disposal unit. On March
20 in Kathmandu District, a Royal Nepal Army (RNA) soldier
was killed and two police officers injured while trying to
defuse a bomb left by the rebels. The body of a suspected
Maoist was found inside an office building after a bomb
exploded there. On March 19 in the eastern district of Bara
Maoists reportedly blew up the Nepal Telecommunication
Corporation (NTC) office and a radio transmission tower
causing almost one million dollars in damages. Eighty
percent of NTC's customers are now without service.

NEPAL RANKS FIRST IN ABDUCTIONS
--------------


11. According to Amnesty International (AI) Nepal ranks
first for having the highest number in cases of
disappearances. March 21 press reports cite AI as reporting
190 people who have disappeared since the end of the
ceasefire in August 2003. Human rights activist allege the
number is higher. On March 19, the International Committee
of the Red Cross (ICRC) voiced concern about the
difficulties faced in trying to obtain information about the
conditions of those abducted, particularly by the Maoists.


12. Maoists abducted 28 members of the Communist Party of
Nepal-United Marxist Leninist (CPN-UML) in Surkhet District
on March 20. They were released on March 24.

MAOIST BLOCKADES CONTINUE
--------------


13. A Maoist-imposed blockade in the far-western districts
of Banke and Bardiya began on March 23 with a series of
bombs meant to intimidate the people of those districts into
compliance. Several bombs went off throughout the
districts, including in the office of the Nepal Drinking
Water Corporation, and near two bridges. A security vehicle
was also ambushed by Maoists, but that bomb did not cause
any damage. Transportation services and delivery of
commodities have stopped after drivers reportedly said they
could not depend on security forces to provide adequate
protection. A contact reported to EmbOff that his bus,
which was traveling in a convoy guarded by security forces,
came under attack while heading to Jhapa District.


14. Fallout from the 15-day blockade called by the Maoists
in the western and mid-western districts (Ref B) continues
despite initial indications it would end on March 21. Many
of the buses still have not resumed normal operations, and
supplies of commodities have dwindled. A member of the
Morang Industries Association told reporters that "the
industries here are completely handicapped."

ELECTION ANNOUNCEMENT FORTHCOMING?
--------------


15. Amid the buzz over the possible announcement of dates
for elections, Maoist supremo Prachanda denounced the
planned elections as propaganda. The Maoist Chairman said
"it is lunatic" to talk about holding elections when there
is a civil war in the country. He also accused the GON of
seeking help from the USG in securing participation from the
political parties. Prachanda accused "US representatives"
of "knocking on the doors of leaders" and "humiliating
Nepal's nationality and sovereignty" by visiting army
barracks. (Note: this is in apparent reference to the
Ambassador's recent visit to the eastern region of Nepal.
End note). He warned that if the parties get trapped "in
the web" of the so-called elctions, "they will not be
forgiven."

MALINOWSKI