Officials refuse to buy each other's version
Talks to continue today

By Bhaskar Sharma 

KATHMANDU, Aug 4 –  Trade talks between the Nepalese and Indian government officials failed to conclude even on the fourth day with the two sides declining to buy each other’s version on the contentious trade issue of ‘export surge’.

The visiting Indian delegation on Saturday proposed to impose quantitative restrictions on the export of five of the Nepalese exportable products, including Zinc Oxide, Acrylic Yarn, Steel Pipes, Vanaspati Ghee and Copper Twines, which it claims to have fallen under the surge net.

Article V(2) of the Nepal-India Trade Treaty 1996 states, "In the event of ..... a surge in the imports generally or in the import of any particular article, the two governments shall enter into consultation with a view to taking appropriate measures."

Providing an alternative to the proposed imposition of the quantitative restrictions, the Indian side even offered to settle down if the Nepalese government agreed to tie its exports with a 30 per cent value addition slab on raw materials, which are converted into finished products targeting the Indian markets.

However, Nepalese officials declined to comply to both the Indian alternatives and instead suggested to hold an altogether new round of talks to settle the issue of export surge, the government source said.

The Nepalese side dismissed the Indian claims that Nepalese exports were harming Indian markets since its export volume is meager compared to the huge market for the products in India. Furthermore, curtailing Nepal’s exports would further widen the already imbalanced Nepal-India trade. Nepal’s trade deficit with India stands at over Rs 18 billion.

Despite the differences over the issue of export surge, most of the other topics included in the comprehensive trade agenda, which was set on the second day of the trade talks, have been discussed and mutual understanding reached, the source said.

India agreed to conclude the Railways Agreement, which the Nepalese side had put as one of its top agendas, within the next two months. This development comes as sweet music to traders since it would ensure direct rail links between the Birgunj Inland Container Depot (ICD) and Calcutta and Haldia ports. Once the rail links are established, the transit costs for Nepal in carrying out foreign trade is expected to go down by as high as 30 per cent.

Also, the issue of giving due recognition to Nepal Standard (NS) mark in the Indian market has gone one step ahead. The two sides Saturday agreed to form a technical team for carrying out the necessary work, the source said. "An agreement to recognize the NS mark in India would be concluded very soon." The non-recognition of the NS mark in India had created hurdles for Nepalese exporters since the 1996 Treaty requires quality certification of Nepalese goods for entering India.

The Nepal-India talks also agreed to reach an agreement in relation to security of Indian investment within the next three months, the source said. India had tabled its security concerns in the wake of increasing attacks against business establishments in the past few months.

Also, the two sides have agreed to wait for the Supreme Court’s verdict before deciding on the issue of automobile imports from India. A case is pending at the Supreme Court that has challenged the government’s decision to prevent vehicle imports from India without the certificate of Conformity of Production (CoP).

While Nepal imports vehicles from some countries solely on the basis of self certification by manufacturers, imports from India requires the CoP certificate. The Indian delegation had asked to scrap the CoP requirement.

India and Nepal are currently discussing on the pertinent Nepal-India trade issues. The secretarial level talks between the two government was initially slated to conclude on Friday, but failed to settle even by late Saturday night. "The talks will end only on Sunday," said an official.

The meet is an annual event that seeks to identify and resolve the issues that stand in the way of effective implementation of the 1996 Trade Treaty. Though the Treaty has a clause for automatic renewal after its expiry every five years, the two sides meet annually to take up the issues of mutual concerns.

While the Nepalese side in the meet was led by Bhanu Prasad Acharya, Secretary at the Ministry of Industry, Commerce and Supplies, the visiting delegation was headed by the Indian Commerce Secretary Prabir Sengupta.

RNAC, CSWA agree to terminate B-575 deal

Post Report

KATHMANDU, Aug 4 – The Royal Nepal Airlines Corporation (RNAC) and China South West Airlines Corporation (CSWA) today mutually agreed to terminate the B-757 jet lease agreement from Sunday, nearly two months before the lease expires.

The national flag carrier also decided to suspend its flight to the European sector – Frankfurt, Paris and London – from September 1. The flight to Dubai will also be suspended. The agreement expires on September 27 this year.

An RNAC release issued today said that dwindling tourists coupled with the possibility of increase in the tourist inflow appearing remote, the Corporation decided to send back the plane before the expiry of its lease term. RNAC officials claimed that no legal damages need to be paid by the Corporation as it was a mutual agreement. The officials also disclosed that one month’s due rent, out of total 6 months, has been paid to the CSWA and the rest would be paid soon.

The decision to suspend the flights in the European sector, as reasoned by RNAC, was taken due to the losses incurred by the Corporation in the sector. Besides the European sector, the RNAC has also suspended its flight to Singapore from Sunday.

Referring to the sold tickets about the suspended sector for the tourist-favourable months of October and November, the RNAC said that it was making necessary arrangements to provide alternative service to the passengers.

The B-757 jet deal was in controversy for alleged kickbacks of 300 US dollars per flight hour. The Public Accounts Committee (PAC) had implicated two ministers, Bhim Bahadur Rawal of CPN-UML and Tarini Datt Chataut of NC for their alleged irregularities in the fourth and the ninth renewal of the lease agreement.

PM assured of cooperation

KATHMANDU, Aug 4 (PR)- Prime Minister Sher Bahadur Deuba today held a meeting with Lower House Speaker Taranath Ranabhat and Chairman of Upper House Mohammad Mohasin to discuss on various issues concerning long-awaited government-Maoist talks.

According to a press release from the PM’s office, both the Speaker and the Chairman assured Deuba that they would extend cooperation on the ensuing talks. Meanwhile, chairman of Communist Party of Nepal (Marxist) Prabhu Narayan Chaudhari, general secretary of Communist Party of Nepal (Marxist Leninist Maoist) Krishna Das Shrestha and Communist Party of Nepal (United) vice-general-secretary Ganesh Shah also visited the Prime Minister at the later’s office Saturday. (See PM page 8)

The left leaders laid stress on solving the Maoist problem peacefully and said that they were ready to assist the government from their respective parties’ sides.

They also presented 6-point recommendation for the government during their visit. The recommendation letter reiterates that the entrance to autocratic monarchy must not be opened at any cost.

"A solution of the problem, based on minimum common point of understanding, should be explored, by making the issue a concerned one of all the leftists and all other political parties," the letter states.

It urges the government to take change-oriented steps to quell discriminations to farmers, workers, women, nationalities and dalits.

And now another embankment causes inundation

By Pramod Poudel / Madhav Dhungana

RANGAPUR,Kapilvastu, Aug 4 - As water resources officials from Nepal and India prepare for a joint meeting to address the inundation problem kicked up by the controversial Rassiyal-Khurda-Lautan embankment, south of Rupandehi district, another India-built embankment some 50 kilometers west of Rassiyal area is likely to raise the hackles of the officials concerned.

With Indian officials increasing the height of what locals here say "road"—which, in fact, works as an embankment to block the water flowing down from Nepal—local farmers here say that the southern neighbour’s move has started to worry them.

"Bigger the structure, more chronic the problem of inundation will become on our side," says 50 something Adbul Aziz, a local teacher, as he wearily looks at the nearby earthen structure whose height he says was raised by more than a foot last June. Already the height of the structure stands around 7 feet, a height tall enough to block monsoon floods.

Like the Rassiyal-Khurda-Lautan embankment, the "road" stretches from east to west parallel to the Nepal-India border, which is also called ‘Dush Gaja’.

And what has compounded the matter is that the earthen structure blocks the waterflow of the Mohali Sagar, a huge pond which locals say is the result of constant waterlogging, aggravating the already-chronic inundation problem in southern Kapilvastu district on the Nepali side.

This is not all. The India-built structure comes so close to Nepal that at one point it nearly touches the ‘Dush Gaja’, a move legal experts in Kathmandu say is a clear indication of violation of international laws.

"Blocking the natural flow of water from the man-made structure in areas near any international borders without the consent of the neighbouring country is violation of international laws," says SN Upadhyaya, a Water Resource Law expert. "Raising of the height of the road by India which is likely to inundate the Nepalese land is illegal".

"With inundation on the Nepalese side and water being regulated, the Indian side reaps the benefit of irrigation," says Aziz. The locals acknowledge that inundation in their part is not a new problem as the road according to them was initially constructed during the British Raj (reign) in India before 1947.

But they are especially concerned with India continuing to increase the height of "road" slowly, which eventually would act as an afflux bund, meaning inundation and flooding in Nepali side.

More than 400 hectares of land have already been inundated in this small village alone as the road grows "taller and bigger" preventing the waterflow of the Mahali Sagar.

"In last June, the level of road was increased by more than a foot¼and it will be a big problem for Nepal if India goes on increasing the height of the road like this," says Aziz.

As there is a "spill way" at one point of the 3-plus-kilometer-long embankment road that regulates the water to flow to the other side (India) it allows India to use the water for irrigation purposes. "We use sacks filled with sand to check the flow of water using only required amount of water for our cultivation," says Pashupati Chaube, an Indian farmer residing on the border village.

Experts point out that the sanctity of the ‘Dush Gaja’ should be preserved. However, much of the no man’s land in the region is inundated.

Water Resources officials meanwhile said agenda number 11 of the minutes of the 11th meeting of "the standing committee on inundation problems between Nepal and India held in Kathmandu in January 2001 had pointed out that the Nepalese side would prepare a proposal for resolving the problem and recommend preventive measures in the region.

Siswa Sagar, Bajha Sagar, Marthi Sagar besides Maholi Sagar are currently causing inundation problem in the area. According to an official at the District Irrigation Office, Kapilvastu, such a proposal has already been prepared, which would be presented in the upcoming meeting.

Arjun Prasad Shrestha, Executive Director of Water and Energy Commission Secretariat (WECS) and a team leader to study the impact and possible consequences of the controversial Rassiyal-Khurda-Lautan bund says that the report would be presented to the government "very soon". Shrestha’s team visited Marchawar area last week, and has already returned to Kathmandu.

"Indians are building the bund (Rassiyal) to save 85 villages, but they are in misconception as the project won’t work out in the long run," says Shrestha stressing the need for joint efforts between the two countries for flood management. The officials from both the countries are holding a joint meeting in Badepur in the Indian State of Uttar Pradesh on August 6 to discuss the issues.

PAC succumbed to Congress conspiracy, alleges Nepal

Post Report

KATHMANDU, Aug 4 - On the first day of Central Committee meeting of the main opposition party CPN-UML, General secretary Madhav Kumar Nepal today demanded introspection from all eight members of the party in the Parliamentary Public Accounts Committee (PAC) for "being trapped by Congress conspiracy" which forced the committee to decide that there had been irregularities in the China South West Air deal.

According to a source within the party, Nepal put forth this proposal in the very beginning of his 15 page political document, which he read out in today’s meeting.

The Public Accounts Committee had decided that there had been irregularities while leasing China South West Aircraft for the state owned Royal Nepal Airlines when Bhim Rawal, also a Central Committee member of UML, was the Minister for Civil Aviation. The Committee also suggested the government to take action against those involved in the deal.

PAC’s decision had been formally challenged by UML immediately. This is one topic, which is likely to attract a lot of controversy while Nepal’s document will be discussed on Sunday.

Apart from the issue, the document also contains various contemporary issues including unity of the left parties, the party’s policies towards Maoist insurgency, national and international political situation, royal palace massacre, Nepali land being inundated due to Indian bund and the new government.

According to another source in the party, Nepal’s document also touched the issue of Pradeep Nepal’s resignation from the party’s spokesman.

The meeting is to continue tomorrow from 8 am and most likely discuss on the above mentioned agenda presented by the General Secretary. The meeting is also likely to discuss on how to go about the forthcoming meeting of party’s National Council and widely talked "national consensus" for solving the Maoist problem.

Commenting on the document read by Nepal, a Central Committee member of the party on condition of anonymity said, " Things about national and international situations are not mentioned clearly nor it has clearly stated about the party’s views regarding the royal massacre but only termed the incident as mysterious."

In his document Nepal mentioned that the party would continue taking the Maoist party as extreme leftist terrorist organisation but hinted that it could change since they are coming in for dialogue.

Nepal also mentioned issues such as preparing the party for forthcoming local elections and consolidating unity in the party.

Argeli could become major forex earner

By Subas Risal

KATHMANDU, Aug 4 - Every year Nepal receives   billions of Yen in assistance from Japan, by far the largest bilateral donor for Nepal. This assistance is often on non-reciprocal basis since Nepal, one of the economically most unfortunate countries, hardly finds ways to reciprocate the second largest economy of the world.

Yet, Nepal can draw solace, though in a minor way, that Argeli (scientifically known as Edgeworthia gardneri Meisn), a plant found in some of the hilly districts of Nepal is being increasingly used in Japan to print Yen notes.

Despite huge export potentials, Argeli is yet to hog the limelight even after five long years of export experiment.

It was Hishao Tanaka, a Japanese national, way back in the late 80s discovered its presence in hilly region of Nepal. Though, it is normally found in the hilly areas at the altitude of 1500m-2600m, Dolakha, Taplegunj and Myagdi districts record a thick presence of this dollar-earning-and-Yen-making plant.

Kanpou Nepal, the only exporting firm of the plant has been exporting around six tons of Argeli annually to Japan since it got approval from the Japanese government five years ago.

However, experts say the export volume of the plant can be increased tremendously to play a significant role in earning the hard currency and at the same time in mitigating unemployment problems in those regions.

"If the government campaigns vigorously to implant awareness in the villagers, it will definitely contribute to mitigating unemployment problems in the areas where the plant is found," says Ram Gopal Shrestha, marketing manager of Kanpou Nepal, the only organisation exporting this plant.

He further adds that 80 per cent of the plant comes from Dolakha, a western hilly district but for the last couple of years, there has been a sudden rise in the number of districts producing the plant namely Myagdi and Taplejung.

Not only is it found in the forests of some hilly districts but also is cultivated in nurseries. Studies and researches have revealed that Argeli, which is grown naturally, is relatively of better quality than the ones cultivated in the nurseries.

Michumata, a Japanese term for Argeli, is believed to have originated from Nepal and Japan has been using it for manufacturing paper products such as stamps, calendar, passport etc since 17th century.

Reportedly, there has been a rapid decline in the productions of Argeli in Japan and if the government boosts up its campaign to instil the awareness in the villagers, it will result in more production eventually leading to the growth in export.

"If export of this plant rises, it can have a positive impact on the economy of the country in the long run. The concerted effort of the non governmental organisations and governmental organisations is required to boost the export of this plant," says Maskey.

There is a long process before it gets ready for export. First, the stem of the plant is cut off and then boiled in water for extraction of its bark. The dried stem stripped off, the bark is ready for export.

"Most important part in the entire process is to take out the bark as it requires great manpower and should be dealt meticulously," says Siddhartha Man Maskey, Financial Manager of the firm.

We pay cash to the villagers according to the quality. Price ranges from Rs 50 - Rs 300 per kg, he says. This in turn will be exported to Japan for 5-7 US dollars per kg,"

Like Argeli, there might be other plants, which can contribute to lifting the standard of the people, if they are dealt properly.

‘India violated int'l law on river’

KATHMANDU, Aug 4 (PR)- Experts have warned that the road construction as claimed by the Indian side in Marchawar of Rupandehi district is against the Helsinki Rules and the UN Convention on River.

Speaking at an interaction on ‘Impacts of Rassiyal-Khurda-Lautan Embankment’ organized by the Chitwan-Kathmandu Liaison Forum, a sister organization of the CPN-UML today, Sher Bahadur KC, an international law expert, said that as the construction inundates Nepalese territory, it is against international law on river.

"The construction has violated the principle of Sovereignty of Equity of international law on river," he said.

Similarly, Netra Prasad Dhital, a geographer, who recently visited the site, said that the three kilometer embankment constructed from Danda Khola to Danav river is not only damaging to Nepal, but also to India.

"The construction of the embankment, which India wants to extend up to 18 kilometers, will displace about 125,000 people of 12 village development committees (VDCs) and submerge about 4000 bighas of Nepalese land. As it affects Indian people, they too are against the construction," he said.

The three meter high embankment would inundate even the Lumbini area, an international heritage site, as Lumbini is only two meters above sea level, he warned.

Ajaya Dixit, a water resource expert, said that the concept of training river by building embankment is a wrong one and we should create awareness among the people of South Asia about it.

Ramhari Silwal, president of the Forum, said that Nepal has been suffering from the hegemonistic attitude of the Indian Government time and again due to weakness of the Nepalese government.

All celebrate Janai Purnima in the Valley

By Ganesh Raj Acharya

KATHMANDU, Aug 4 -Ramesh Sharma, a twenty-one year old student stood in queue to pray Pashupatinath for two hours amid a crowd this morning.

Even after two hours waiting he was still in queue for his turn. "It is no one who suggested to join this religious ceremony but my own culture drove me here to pray the God," he said.

Rishi-Tarpani, popularly known as Janai Purnima, is an auspicious day that falls on Purnima, a full moon day in the month of Srawan (July-August).

Since early morning there were throngs of devotees in the Pashupati area and among them were some faces from neighbouring India also.

According to Hindu mythology, a renowned donor and grand son of Bhakta Prahlad, Emperor Bali was first time tied with this holy string (Rakshabandhan). Emperor Bali, though was born in Asura kula( in the ancestry of demons) but was mythologically famous for his eternal devotee of Lord Vishnu, one of the trinity Gods.

Puranas(old spiritual stories) say mercy of God Bishnu and this holy string made Bali an unconquerable person.

Dilli Sharma from Dailekh who is now in Kathmandu for his own mission says, " I came to Kathmandu some days ago and forth the festival of Janai Purnima tempted me to stay for few days more. Now I have visited Pashupatinath temple and also have taken Rakshabhandhan.

Says Shaligram Sharma, a graduate student of Mahendra Sanskrit University, " This ritual dates back to the time immemorial" adding, " It is a symbol of superiority of almighty God and pray of Para-Shakti for the victory and all round supernatural protection of creatures."

Similarly, a large number of people were taking holy bath in Bagmati river to get salvation for their sins. However, not many follow this ancient ritual, an old man of seventy, seemed as an orthodox said, " People have changed now. They just get up, run and get a sacred thread hung round their neck and tied the other one around wrist, but this is not enough." and adds," It is equally important to have other Karmas(religious duties)also, like holy bathing with Mantras and worship of holy thread Brahmasutra (Janai).

The biggest gainers are the saffron-clad priests , who sit in the temple premises with their janai and tika. There is hardly any one who does not offer them something after accepting the thread and the tika. No one grudges this.

But people have complaints too.

"One thing that puzzles the newcomers is the mismanagement on temple’s entry and exit routes on such busy days. Entering the temple in this high crowd is not less than getting ready for more suffer", says a devotee waiting his turn in queue who recently came here from South India.

On the bank of the Bagmati river opposite to Pashupati temple, a man (probably jhakri, a traditional priest) was in a speedy dance with a typical Nepali DHYANGRO (a musical instrument) in his hand praying for peace for departed souls. His head was adored with the dozens of peacock tail-threads and many devotees visiting Pashupatinath were looking him curiously.

‘Nagad Paanch Lakh’ goes on air, attracts only a few

By Seema A. Adhikari

KATHMANDU, Aug 4- Parents and children huddled up emphatically in their TV-room with much anxiety nourished in their eyes to watch their native star looking for a difference found "Nagad Paanch Lakh" (NPL) neither thrilling nor too boring as Media Co-operative aired its programme nationwide for the first time on Saturday night.

An exact copy of India’s superb entertainment show "Kaun Banega Crorepati" (KBC), the first episode of NPL aired today on the state-run Nepal television was hardly enthralling.

Thousands of enthusiastic Nepalis found NPL hardly entertaining except for occasional fits of giggles fanned by Madan Krisna Shrestha’s typical Nepali jest.

He emerged from the carved wooden door addressing the audience soon after he sprawled on the rotating chair throwing a volley of questions, he appeared rather serious killing the expectation from the televiewers that he would at least laugh openly as a comedian.

A total of eight participants who spearheaded in a drive to earn rupees five lakhs, none went up to the third Phadko (step) to answer. While in a total of 12 questions, the participants should at least answer the first four questions to claim 5,000 rupees or nothing.

The programme was conducted at Pranima Studio built at the cost of 4 million rupees. The first episode costing some 250 thousand rupees was aired for nearly an hour.

Shrestha, a famous cine artist was seen to make incessant efforts to impersonate Bollywood biggest jester Govinda in "Chappar Pharke" or Amitabachan-apple of India’s eyes. However, he drew little applause as the thousands of spectators had already gone weary with such programme already aired in over 30 countries around the world.

Unlike KBC, which provides three options for answering a question, NPL has two options before itself for the participants-"Hello! Hello! and fifty-fifty." However, Lila Joshi, Tripureshower refuted saying the participants were mostly aged and were not smart enough to answer the questions.

The programme aired for the first time in Nepal brought hardly any jester-a kind of flop show rather than a thrilling or a superb entertainment as has always been hoped for. "This episode is worst among the five episodes enacted so far", Shrestha admitted.

"We are correcting the errors in the forth-coming episodes. In the second episode we have tried to give a political colour and the third the show holds a good message for all Nepali people", Shrestha added.

"We have been constantly receiving telephone calls from our audiences and the response has been swift", said Neeta Thapa, the Producer of the show.

Among the complaints shared by many, Rabi Rasaili, from Kusunti, said that the participants coming with a dream to win 5 lakhs rupees were lacking in far-sightdness and knowledge.

Sanjaya Mishra, from Sanepa said that even the KBC was a copy from other country and considering Nepal’s socio-economic status, the show in sum, was a commendable one.

Nevertheless ,the entire programme turned out to be fascinating and suitable to the Nepalese context. Let’s hope the program will make long strides in the coming days.