U.S. Department of State Country Reports on Terrorism 2005 - Nepal

Nepal's primary focus remained the Maoist insurgency, active in Nepal since February 1996. In 2005 alone, Maoists were responsible for the deaths of at least 263 civilians and 330 government security forces, according to press accounts. The government reports that Nepalese security forces arrested thousands of suspected Maoist militants and killed more than 966 in 2005.

On June 6, in the worst attack on civilians since the beginning of the insurgency, Maoists ambushed a passenger bus, killing 41 people and subsequently injuring 71 in a landmine blast. The Maoists imposed two nation-wide blockades February 12-26 and April 2-12, effectively shutting down traffic and businesses throughout most of Nepal. During the February blockade, the Maoists targeted civilian drivers of vehicles who defied the blockade. During the Maoists' unilateral four-month cease-fire from September 3 to January 3, killings decreased dramatically, but kidnappings and extortion continued.

Repeated anti-U.S. rhetoric suggests that the Maoists view U.S. support for the Nepalese Government as a key obstacle to their goal of overthrowing the monarchy. Maoist supreme commander Prachanda issued a press statement with his Indian counterpart on September 1 calling for continued armed struggle and naming the United States as the principal enemy.

In addition to threats against American-affiliated business enterprises, Maoists have threatened attacks against U.S. and international NGOs, including Peace Corps workers. They have continued to extort money from Nepalis and foreigners, including American tourists, to raise funds for their insurgency. The Maoists' public statements criticized the United States, the United Kingdom, and India for providing security assistance to Nepal.

On January 31, Nepal passed the Bank and Financial Institutions Ordinance, which regulates the actions of financial institutions in Nepal and provides the Central Bank with authority to freeze and confiscate the accounts of terrorists.


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