NETHERLANDS/EU/TERRORIST FINANCE: FREEZING MAOIST

C O N F I D E N T I A L THE HAGUE 002587 SIPDIS STATE FOR EUR, EB, S/CT, IO, SA E.O. 12958: DECL: 10/07/2014 TAGS: PTER NP NL KTFM SUBJECT: NETHERLANDS/EU/TERRORIST FINANCE: FREEZING MAOIST ASSETS REF: A. (A) STATE 213824 ¶B. (B) KATHMANDU 1672 ¶C. (C) THE HAGUE 1902 Classified By: POL Counselor Andrew Schofer for Reasons 1.4 (b/d) ¶1. (C) Summary: The Dutch expect an EU designation of the Maoists within one month's time. They plan to carry out a simultaneous EU Troika visit to Kathmandu to ensure the Government of Nepal remains "on notice" with regard to this issue. End Summary. Designation Strategy -------------- ¶2. (C) Poloff discussed Ref A and B information October 7 with Wilfred Mohr, Head of MFA's South Asia Division. Mohr confirmed that the Dutch expect the Maoists to be designated by the EU within the month as part of the larger designation strategy in motion since Summer (ref C). Mohr said he is currently working on adding the issue to the EU's COREPER agenda for further discussion among EU members. He noted there remains some reluctance among a few members, but that he was optimistic that the Dutch, in partnership with the British, would be able to convince them in the end. He thanked poloff for the additional information, which could be of use in EU discussions. ¶3. (C) Mohr noted that the Maoists have refused back-channel talks and were not likely to agree to political talks with the Government of Nepal (discussed in Ref C as a variable which could derail an EU designation). Mohr also reported that recent discussions with Government of India officials had revealed that the GOI feels the Maoists are not sincere about political discussions and are "playing games." Mohr also said that, in what he viewed as an uncharacteristic move, the Indian officials had also welcomed a "united international front" in messages regarding this issue. ¶4. (SBU) Econoff also delivered reftel points separately on October 7 to Alle Dorhout, who has the lead on EU designation issues in the MFA's Directorate for European Integration, and Margreet Wenting, Senior Policy Advisor responsible for terrorist financing in the Department of Financial Integrity at the Finance Ministry. Troika Visit to Keep GON "On Notice" -------------- ¶5. (C) Since the primary Dutch/EU concern is that designating the Maoists could give the Government of Nepal "the wrong impression" that they are now favored, Mohr said the Dutch EU Presidency will organize a Troika visit to Kathmandu to be carried out together with the designation. Such a visit will ensure that the GON does not see itself as "off the hook," as "the winning party," or as "the good guy," according to Mohr. SOBEL