Nepal's donors urge rebels to end extortion

KATHMANDU, Sep 7 (Reuters) Nepal's key foreign donors urged the country's Maoist rebels today to end extortion and intimidation, saying their actions hurt the economy of the impoverished nation.

The Industrial Security Group that includes representatives from key donors like the United States, Britain, India and France said Maoist efforts to ''intimidate'' employees into joining their unions was hurting business.

''These actions contravene international human rights standards,'' the group said in a statement issued by the US embassy in Kathmandu.

''They are also incompatible with the Maoists' stated aspirations to join the democratic process,'' it said.

The group urged Nepal's multi-party government to take immediate steps to to end Maoist intimidation and ''forced unionisation''.

The Maoists say they collect ''voluntary donations'' to fund their 35,000-strong guerrilla force and claim no one was being compelled to pay.

The rebels and the government have been observing a ceasefire since King Gyanendra bowed to violent street protests and handed power to political parties in April.

Mainstream political parties and business groups say the rebels, who have been extorting money from businessmen, were violating the ceasefire code of conduct.

More than 13,000 people have been killed in the anti-monarchy insurgency since it started in 1996.

REUTERS SP KN1950