Report of the Secretary-General on the request of Nepal for United Nations assistance in support of its peace process

1. The present report is submitted pursuant to Security Council resolution 1740 (2007), in which the Council established the United Nations Mission in Nepal (UNMIN) in response to the request of the Government of Nepal and the Communist Party of Nepal (Maoist), or CPN(M), for United Nations support for the peace process. UNMIN was established as a special political mission with a mandate to monitor the management of arms and armed personnel of CPN(M) and the Nepal Army, assist in monitoring ceasefire arrangements, provide technical support for the conduct of the election of a Constituent Assembly in a free and fair atmosphere and provide a small team of electoral monitors.

2. The report reviews the progress of the peace process and the implementation of the mandate of UNMIN since my previous report to the Council of 18 July 2007 (S/2007/442). It further takes stock of the challenges facing Nepal in its efforts to consolidate peace and embark on its historic transition.

II. Progress of the peace process

3. Since my last report to the Council, a number of important political developments have occurred in Nepal. Remaining electoral legislation has been enacted, significant agreements were reached with marginalized groups, and the Election Commission made the necessary technical preparations to hold the election on the agreed date of 22 November. However, doubts about a November poll for the Constituent Assembly persisted for a combination of reasons. Chief among these are the lack of unity and political consensus among the eight parties that formed the interim Government on 1 April 2007 and continued difficulties in effectively implementing commitments made in the different agreements to date. In addition, persisting disaffection among marginalized communities about their exclusion from the political process and State structures, despite two agreements reached with the Madhesi People's Rights Forum (MPRF) and with the Nepal Federation of Indigenous Nationalities (NEFIN), as well as the activities of armed groups and communal violence in the country's southern plains, the Terai region, have contributed significantly to the uncertainty. On 5 October, amidst a dispute between CPN(M) and the other parties over the electoral system and the declaration of a republic (discussed below), a collective decision was taken to reschedule the 22 November election. A new election date had yet to be fixed.

4. The second phase of registration of CPN(M) personnel in the cantonments continued after some initial disruption. This involves verification of the age and date of recruitment of those registered at the first stage in order to establish whether they have met the two criteria of eligibility as combatants, namely whether they were born before 25 May 1988 and whether they were recruited before 25 May 2006. As previously reported, the verification process started on 19 June at the first main cantonment site of the Maoists in Ilam in the east, and was completed at that site by 26 June. But before that process could begin at another cantonment site, the Maoists raised a number of substantive and procedural concerns.

5. The Maoists sought to link continuation of the verification process to other issues they deemed significant, including the need for major improvement of conditions in the cantonment sites; the payment of agreed monthly government allowances to Maoist personnel in cantonments; and the start of discussions on the future of the Maoist army and the Nepal Army, emphasizing their demand for the formation of a new national force made up of elements from both. My Special Representative made clear that verification was an obligation under the agreement on monitoring the management of arms and armies between the previous Seven- Party Alliance government and the Maoists, and UNMIN could not accept any preconditions for the continuation of verification.

6. After a period of delay, and with the Government showing a greater degree of flexibility in addressing some of the key concerns of the Maoists, the Maoists agreed to the resumption of verification. However, UNMIN was able to resume the process of verification at the second main cantonment site, in Sindhuli, only in mid-August, following the meeting of the expanded central committee of CPN(M) early in August. The process has since continued with satisfactory cooperation. Verification has now been completed in Ilam, Sindhuli, Surkhet and Kailali, with three further sites to follow.

7. Despite this progress, UNMIN continues to have concerns about several issues related to the cantonment of the Maoist army, the main one of which is the manner and timing of the discharge of the Maoist personnel determined to be ineligible under the determined criteria, in particular, those who were minors at the relevant date. The Maoist leadership states that it is committed in principle to moving forward with discharge but requires Government agreement on the payment of allowances to personnel who have been in cantonments. UNMIN has repeatedly pressed the parties to resolve this issue, and has insisted that both the Government and the Maoists should treat the discharge of minors and others ineligible as an urgent priority. In addition, an unmanaged discharge of large numbers of personnel from the cantonments could create serious social problems. It is hoped that the Cabinet decision of 8 October to release a partial payment of the allowances will lead to positive movement on this matter. Cantonment conditions remain a major concern, both at present and in the longer term for those who will remain in cantonments after the verification and discharge process.

8. The overall political climate and management of the peace process have become more complicated during this period. The unity of the eight parties came under a severe test largely as a result of their failure to fully implement agreements, including among others, on the fulfilment of responsibilities towards cantoned Maoist personnel and the return of properties seized during the 10-year conflict. There is also a deeper gulf of perspective regarding the extent and breadth of the political, social and economic changes the country should undergo, as well as regarding the future of the Maoist combatants and the country's security sector. Difficulties in reaching decisions by consensus among the eight parties inside and outside the interim Government and intra-party divisions have contributed to the recent political dissension.

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