MONITORING COMMITTEE CONTINUES TO TAKE SHAPE WHILE

C O N F I D E N T I A L KATHMANDU 001726

SIPDIS

SIPDIS

E.O. 12958: DECL: 06/30/2016
TAGS: PGOV PTER NP
SUBJECT: MONITORING COMMITTEE CONTINUES TO TAKE SHAPE WHILE
MAOISTS REMAIN ACTIVE

REF: A. KATHMANDU 1576


B. KATHMANDU 1373

C. 05 KATHMANDU 2556

D. KATHMANDU 1694

Classified By: Ambassador James F. Moriarty. Reasons 1.4 (b/d).

SUMMARY
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1. (C) The work of the Ceasefire Code of Conduct National
Monitoring Committee is proceeding at a far slower pace than
it took to reach the eight-point agreement (ref A) that
created it. Members of the monitoring committee explained to
us that the committee was busy developing its working
framework and forming subcommittees. Despite the wide-spread
recognition of the importance of monitoring, one member
opined it would be two to three weeks before the committee
started actual monitoring work. Prachanda stated that
violations of the Code of Conduct such as extortion and
parallel governments were needed as a "bargaining card."
Meanwhile, leading industrialists report that extortion in
the capital has spiked recently and that the cost of
transport is 50 percent higher due to Maoist interference
with transportation companies. End Summary.

MONITORING COMMITTEE STILL TAKING SHAPE...
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2. (C) Members of the Ceasefire Code of Conduct National
Monitoring Committee told us the committee continued to
develop the framework necessary for it to commence actual
monitoring work. Christian religious leader Dr. K.B. Rokaya
noted that the monitoring committee would work on the basis
of the 25-point Code of Conduct (ref B),the 12-point
understanding (ref C),and the 8-point agreement. He said
that the monitoring committee was in the process of forming
three sub-committees to focus on logistics support, working
procedures, and developing a working framework respectively.
Civil society leader Malla Sundar explained that the working
framework would determine how the committee could move
forward and do its work. Subodh Pyakurel, President of the
Informal Sector Service Center (INSEC) and also a monitor,
speculated that it would take two-to-three weeks for the
committee to begin its monitoring work.

...ALL NOMINEES NOT PARTICIPATING
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3. (C) While the GON nominated 31 people to the monitoring
committee, all the members are not participating. Stressing
that he had not attended any monitoring committee meetings
although he was a nominee, Former Ambassador to Sri Lanka
Nilambar Acharya commented that working on the monitoring
committee was "not a matter of accepting or rejecting the
government's nomination, but a question of having time to
attend the meetings." INSEC's Pyakurel explained that he had
changed his mind and agreed to participate on the monitoring
committee only after GON leaders agreed to add a line to the
monitoring committee's terms of reference (TOR) (ref D)
stating that monitoring would be done in accordance with
international humanitarian law. He explained that two of the
Government of Nepal's (GON) negotiators, Home Minister
Krishna Prasad Sitaula and Minister of Culture and Tourism
Pramod Gyawali, had personally requested that he join the
monitoring committee and had accepted his condition. Rokaya
mentioned that the monitoring committee was "not in the mood"
to add any new members at this time.

NO CLEAR ROLE FOR OHCHR
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4. (C) The monitoring committee has yet to formalize a role
for the United Nations Office of the High Commissioner for
Human Rights (OHCHR) in the monitoring process. INSEC's
Pyakurel noted that he was planning to request that OHCHR
help him train all the members of the monitoring committee on
international humanitarian law using a training manual he was
currently putting together. He stressed how important it was
for all the monitoring committee members to have an
understanding of law surrounding human rights to effectively

do their job. Rokaya noted that the 25-point Code of Conduct
allowed for the monitoring committee to approach OHCHR, and
that the monitoring committee planned to contact OHCHR only
about human rights issues.

DEUBA: NEPALIS UNABLE TO MONITOR WEAPONS
--------------


5. (C) Indian Ambassador Shiv Shanker Mukherjee told the
Ambassador on June 30 that Nepali Congress-Democratic (NC-D)
leader Sher Bahadur Deuba had expressed concern about the
possibility of any group of Nepalis being adequately able to
monitor compliance with the Code of Conduct by the Maoists.
Deuba had commented that Nepalis would be "scared to death"
of Maoists and unable to do so. Mukherjee stressed that it
was still important to make the monitoring committee as
effective as possible. He noted to the Ambassador that the
Government of India (GOI) was not saying the GON could not
seek international advice and technical assistance.

MAOISTS CONTINUE TO VIOLATE THE CODE OF CONDUCT...
-------------- --------------


6. (C) While the monitoring committee's taking shape, the
Maoists continue activities in violation of the Code of
Conduct. Businessmen Vijay Shah told us that Maoists were
making a big push for extortion payments in Kathmandu.
Maoists knew this was the time of year companies had funds
available to settle their bank loans and pay government
taxes; the Maoists wanted to get some of that money before
the monitoring committee started its work. Narendra Basnet,
Vice-President of the Confederation of Nepalese Industries
(CNI) said a fresh extortion drive had started in the capital
and businessmen were being asked for the equivalent of USD
41,000 to 55,000. Industrialist Rajendra Khetan told Emboff
that around the country Maoist-affiliated trade-unions were
pushing for full-time employment for temporary workers and
causing many factories to close, including his Gorkha
Brewery. Shah said there were about 50-60 factories closed
in the southern Industrial city of Birgunj due to extortion
threats.


7. (C) In addition to extortion, Maoists are trying to
accumulate money in other ways. Industrialist Basanta
Chaudhary said that the cost of transporting goods had
increased 50 percent due to a Maoist "transportation
syndicate." He explained that Maoists were forcing all
transportation companies to register the companies with their
syndicate for the right to use Nepal's highways; had to pay a
"levy" to join. According to press reports, on June 28 in
northern Dolakha District, Maoists ordered all Village
District Committee (VDC) Secretaries to deposit ten percent
of each VDC's budget for the fiscal year to the Maoist
district office by July 2.


8. (SBU) Maoists have also abducted two more individuals. On
June 29, Maoists abducted Pokharavanda VDC Secretary Dhruba
Prasad Shah from eastern Siraha District. In addition,
apparently retaliating against the killing of two Maoists by
an anti-Maoist vigilante group on June 28, Maoists abducted
Satish Chandra Shukla of Hathihawa VDC of southwestern
Kapilvastu District on June 29.

...BECAUSE PRACHANDA NEEDS A BARGAINING CARD
--------------


9. (U) In response to ongoing Maoist activities, Prachanda
told reporters that issues of People's Courts, parallel
governments, and the display of arms by the PLA would be
settled once the interim government was in place. He
admitted local level cadre had committed "some mistakes," but
said "if we give up our stand on these issues, there will be
no bargaining card left with us."

COMMENT
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10. (C) The need of the day is to get the monitoring
committee up and running effectively. The international
community should do all it can to support this effort and to
strengthen the resolve of the committee's members.

MORIARTY