News update from Nepal, August 14, 2005 Maoist maneuver On July 18, CPN(M) chairman Prachanda reinstated three of its central committee members, including party ideologue Dr. Babu Ram Bhattarai in the party’s standing committee. He uttered,“Our party is ready even to take extreme decisions and exercise maximum flexibility.” Current Maoist strategy involves unity-struggle­transformation. Ruling out the possibilities of resumption of peace talks with the government, Dr. Bhattarai declared that his party was“not attempting a final military victory right now, but is working for a negotiated political settlement either directly for a democratic republic or for the election to a Constituent Assembly.” While talking to Washington Times on July 30, he said,“We feel constrained to settle for a compromise due to the sensitive geopolitical setting of the country sandwiched between the two huge states of India and China.” On July 14, leaders of seven-party alliance sought the CPN(M) to fulfill five conditions for a talk: stop harassing political activists, stop obstructing their political activities, ensure smooth running of schools, not obstruct anti-regression movement and express clear and institutional commitment to multiparty polity, human rights and rule of law. On July 27, Prachanda made it clear that an end to “dictatorial monarchy,” election to a constituent assembly, multi-party democracy in a republican set up, compliance with human rights and bringing the army under the elected representatives constitute their core political agenda. He also said that his party had already issued orders to the rank and file to stop attacking workers of other political parties. Any substantive understanding with the Maoists, however, remains remote unless they first“lay down their arms” said NC leader Dr. Ram Sharan Mahat. But, CPN-UML general-secretary Madhav K. Nepal insisted that they can“lay down their arms during election time.” To refurbish their image, CPN(M) has dropped ideological criticism of India and the US, released 18 security personnel captured by them from Khotang and Bhojpur in mid-June with the facilitation of International Committee of Red Cross (July 18) and allowed the operation of several INGOs(that were forced to withdraw earlier) from the rural areas of Dadeldhura. Their other tactics, however, continued. Its recent attacks in Banepa, where they killed two policemen, and August 8 raid in Pili army camp in Kalikot district frightened however the political parties and international community about the implication of Maoist-political parties alliance. In Kalikot battle, the death of 26 Maoists has been confirmed. Spokesperson of the RNA said that 43 soldiers were killed, 112 are in contact and 60 security men are in Maoist control. The Pili barrack was recently set up for the construction of Karnali Highway. The RNA claimed that about 15 soldiers were lined up and shot from behind. The UN High Commissioner for Human Rights in Nepal(UNHCHR), Ian Martin called for human treatment of the hostages. In response, Prachanda said his party is committed to provide cooperation to the envoy. He said the CPN (M) has a policy of allowing him to meet all party units, inspect sensitive places and meet the captives.“The policy is already in practice dealing with ICRC. He also denied having killed the soldiers in captivity”. Martin urged a“full forensic 6