British Ambassador to Nepal Keith George Bloomfield said Metropolitan Police had already submitted a report to the Nepalese government and urged it to deal with the problem.

"The extortion is systematic and regular, which is making life difficult for the business community," Bloomfield told the ninth annual general meeting of the Nepal-British Chamber of Commerce and Industry here Friday.

He also said the extortion demands have been "expanding" and "increasing".

Britain chairs the Industrial Security Group (ISG) in Nepal, which includes countries with major investment in the Himalayan kingdom like India and the US.

The ISG met Prime Minister Sher Bahadur Deuba recently to express concern over a Maoist "ban" on several leading business organisations in Nepal, including Indian, American and British joint ventures.

Bloomfield said a team of experts from Metropolitan Police has submitted a master plan to Nepal and advised the government to set up a special task force to tackle the problem.

The government has said extortion demands should be refused and the matter reported. It said it is ready to provide security to business organisations under threat.

The business community said it has no faith in the government's ability to provide protection.

Last week, while addressing the annual general meeting of the Federation of Nepalese Chambers of Commerce and Industry, Sher Bahadur Deuba accused the business community of conceding Maoist demands. The community admitted it was doing so because of compulsion.

Maoist guerrillas have been funding their violent uprising by robbery and extortion, with the business community and people living in rural districts being forced to pay up. 

The guerrillas started their insurgency in 1996 trying to overthrow Nepal's constitutional monarchy and install a communist republic. The insurgency has already claimed about 10,000 lives.

--Indo-Asian News Service