Nepal businessmen protest Maoist extortion

KATHMANDU, Sep 19 (Reuters) Hundreds of businessmen rallied in Nepal today to demand an end to extortion by Maoist rebels and greater security from the government, witnesses and business leaders said.

''Stop extortions immediately'', read some of the placards held up protesters taking part in the demonstration organised by the Federation of Nepalese Chamber of Commerce and Industries (FNCCI), an umbrella business group, in Birgunj, a major business town 60 km south of Kathmandu.

''Extortions and other acts of intimidation by the Maoists or their trade union have forced many industries or businesses to close,'' FNCCI President Chandi Raj Dhakal told Reuters.

Earlier this month, Nepal's key foreign donors, including the United States, urged the rebels to end extortion and intimidation, saying their actions were hurting the economy of one of the world's poorest nations.

The Maoists, who have been observing a ceasefire with the security forces since May and are holding talks with the multi-party government, say they collect only ''voluntary donations'' and do not force businessmen to pay up.

But Dhakal said many businesses had closed down in the past few months because of what he termed ''unreasonable'' demands for higher wages and better working conditions by pro-rebel labour groups, who have called regular strikes.

''The government has failed to give us security and protect business interests,'' he said.

The Maoists and the government are discussing how to include the rebels in an interim government and when to schedule elections for a special assembly to prepare a new constitution.

More than 13,000 people have been killed since the Maoist insurgency started in 1996. The rebels want to turn Nepal into a communist state and completely abolish the monarchy.

REUTERS DKA BS1655