Identifier
Created
Classification
Origin
04KATHMANDU879
2004-05-07 08:03:00
UNCLASSIFIED
Embassy Kathmandu
Cable title:  

UPDATE ON NEPAL'S MAOIST INSURGENCY, MAY 1-7, 2004

Tags:  PINS PTER CASC PGOV NP PHUM 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 KATHMANDU 000879 

SIPDIS

STATE FOR SA/INS AND DS/IP/NEA
STATE ALSO PLEASE PASS USAID/DCHA/OFDA
STATE ALSO PLEASE PASS PEACE CORPS HQ
USAID FOR ANE/AA GORDON WEST AND JIM BEVER
MANILA FOR USAID/DCHA/OFDA
LONDON FOR POL/GURNEY
TREASURY FOR GENERAL COUNSEL/DAUFHAUSER AND DAS JZARATE
TREASURY ALSO FOR OFAC/RNEWCOMB AND TASK FORCE ON TERRORIST
FINANCING
JUSTICE FOR OFFICE OF THE DEPUTY ATTORNEY GENERAL/DLAUFMAN
NSC FOR MILLARD
SECDEF FOR OSD/ISA ALVERSON

E.O. 12958: N/A
TAGS: PINS PTER CASC PGOV NP PHUM
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, MAY 1-7, 2004

REF: (A) SECSTATE 96295
(B) KATHMANDU 846
(C) KATHMANDU 722

SUMMARY
-------

UNCLAS SECTION 01 OF 03 KATHMANDU 000879

SIPDIS

STATE FOR SA/INS AND DS/IP/NEA
STATE ALSO PLEASE PASS USAID/DCHA/OFDA
STATE ALSO PLEASE PASS PEACE CORPS HQ
USAID FOR ANE/AA GORDON WEST AND JIM BEVER
MANILA FOR USAID/DCHA/OFDA
LONDON FOR POL/GURNEY
TREASURY FOR GENERAL COUNSEL/DAUFHAUSER AND DAS JZARATE
TREASURY ALSO FOR OFAC/RNEWCOMB AND TASK FORCE ON TERRORIST
FINANCING
JUSTICE FOR OFFICE OF THE DEPUTY ATTORNEY GENERAL/DLAUFMAN
NSC FOR MILLARD
SECDEF FOR OSD/ISA ALVERSON

E.O. 12958: N/A
TAGS: PINS PTER CASC PGOV NP PHUM
SUBJECT: UPDATE ON NEPAL'S MAOIST INSURGENCY, MAY 1-7, 2004

REF: (A) SECSTATE 96295
(B) KATHMANDU 846
(C) KATHMANDU 722

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


1. On May 4, the Communist Party of Nepal (Maoist) reacted
angrily to its inclusion on the U.S. Terrorist Exclusion
List (REF A). Following continued Maoist threats and
violence against their work in the far-west region of Nepal,
some international donors announced on May 6 that they would
suspend development work in the region until further notice.
Contradicting earlier commitments not to target development
infrastructure or project sites the Maoists on May 1
attacked a government agricultural project site in the
eastern Terai and forced the closure of the only railroad in
Nepal. On May 6, in the same district, the Maoists looted
close to USD 60,000 from a local bank. There continue to be
widespread reports of Maoists threatening government
officials in an effort to force them to resign from their
posts. The result has been a shift in government structure
to the district level. END SUMMARY.

MAOISTS ON U.S. TERRORIST EXCLUSION LIST
--------------


2. On May 4 the Maoists, in response to being included on
the U.S. Terrorist Exclusion List (REF A),issued a scathing
editorial in the Janadesh Weekly (Nepali language, Maoist
sympathetic). The editorial called the designation an
indication that the U.S. did not support peace in Nepal and
opposed "the emergence of Maoists as a power which can
challenge American imperialism." Press reports further
indicated that Maoist leader Baburam Bhattarai stated that
the U.S.' exclusion designation demonstrated America's
desire to "make Nepal a battlefield, aimed at inciting India
and China to go to war."

DONORS SUSPEND DEVELOPMENT
WORK IN FAR WEST

--------------


3. On 6 May, the Netherlands aid organization (SNV),the
British Department for International Development (DFID),and
German Technical Cooperation (GTZ) announced during the
closing session of the Nepal Development Forum that they had
suspended development activities in the Kailali District and
in the Karnali Zone (in the far-west) as a result of
"unacceptable" Maoist demands and threats against a number
of development agencies (REF B). SNV also announced that it
had topped all of its development activities in the mid-west
as a result of Maoist threats. World Food Program (WFP)
announced that in the absence of these agencies' technical
assistance, its programs, and specifically the Rural
Community Infrastructure Works program, would also be
suspended until further notice.


MAOISTS DESTROY A GOVERNMENT AGRICULTURE
DEVELOPMENT PROJECT AND LOOT BANK
--------------


4. Violating an earlier commitment made by Maoist supreme
leader Prachanda not to target development infrastructure or
project property, on May 1 approximately 200 Maoists
attacked a government agricultural project site located
about 17 km north of Dhanusha District headquarters (in
eastern Terai). The site provides agricultural irrigation
to 23 districts. New reports indicate that estimated damage
from the attack is over NRs. 80 million (over USD 1.1
million). The attack forced the closure of the Janakpur-
Jayanagar railway (the only railway in Nepal) and will
likely lead to irrigation problems in the Terai. On May 6,
Maoists looted close to USD 60,000 from the Everest Bank
located in Janakpur (Dhanusha District headquarters).
According to local news reports, to prevent security forces
from responding to the situation the Maoists disconnected
phone lines and placed bombs along roads leading to the
bank.

RUMORS OF MAOIST EMBARGO RESULT IN STRANDED
TRUCKS AT TATOPANI BORDER CROSSING
--------------


5. According to news reports, over 50 trucks transporting
consumer goods bound for Kathmandu have been held at the
Tatopani customs border crossing (along the Chinese-Nepal
border) since May 5 following rumors that the Maoists have
embargoed the area.

MAOISTS TARGET GOVERNMENT OFFICIALS
AND DISTRICT HEADQUARTERS
--------------


6. The Maoists continue to target government officials and
offices. In Dang (mid-western region),over 100 appointed
local government representatives reportedly resigned in fear
of Maoist reprisals. Reports indicate that in Nawalparasi
District (in central Terai),Maoists padlocked over 60 local
government offices in an effort to prevent government
officials from reporting to work. Reports from Bardiya (in
western Terai) indicate that approximately 95 percent of
local government offices had shifted to district
headquarters following Maoists threats. In Ilam (in eastern
Terai) reports allege that 49 nominated government officials
refused to assume their posts following Maoists threats.

MAOISTS CONDUCT POLITICAL CAMPAIGNS;
FORCED RECRUITMENT CONTINUES
--------------


7. Maoists continue to force villagers to participate in
their political events. In Dadeldhura (far-west),Maoists
are reportedly forcing women to participate in a seven-day
women's program. As a result, over 100 women fled to the
district headquarters to avoid this. Reports from Kalikot,
also in the far-west, mention that hundreds of people have
been forced by the Maoists to participate in military
training. On May 2, reports from Kailali District (far-
west) allege that the Maoists have abducted over 500 ex-
Kamaiyas, or bonded workers, and have taken them to the
central part of the district.


8. Six local schools in Kalikot (far-west) closed following
a Maoist demand that each school send 50 participants to its
"Maoist Student Meet" on May 9. Students, citing fears of
forced conscription, have left their villages for the Doti
district headquarters. As a result, schools in the district
headquarters, Dipayal, and neighboring Silgadi are filled
beyond capacity and have been forced to turn students away.
Reports indicate that dozens of students from Achham
District (located in the far-west) fled across the border to
India following the April 12 RNA aerial attack on their
school (REF C).

BOGUE