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Kathmandu Saturday May 12, 2001 Baishakh 29, 2058.
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Security may feature in Nepal-China talks
Post Report
KATHMANDU, May 11 – Two days after the Chinese
Ambassador Zeng Xuyong publicly expressed his country’s concern at the deteriorating
stability in Nepal, the Ministry of Foreign Affairs (MoFA) today admitted that the Chinese
security concerns might be discussed during the forthcoming visit of Chinese Premier Zhu
Rongji to Nepal.
On Wednesday, speaking about Maoist insurgency, Ambassador
Xuyong had said that China was concerned about the security environment in the Himalayan
Kingdom, though he had added that the matter was an internal affair of Nepal. He was
speaking to the reporters just days before the Chinese Premier Rongji’s three-day
official visit to Nepal beginning May 14.
Rongji, who will be the fourth Chinese Premier to visit
Nepal, is on a South Asia official visit covering Nepal, Pakistan, the Maldives and
Bangladesh. The three-day visit to Nepal will commence on May 14. Rongji is scheduled to
come here after his three-day visit to Pakistan beginning on Friday. He is also visiting
Thailand.
Speaking at a press conference today, Minister for Foreign
Affairs Chakra Prasad Bastola said that since the Chinese envoy went on record over the
security issue, the subject could come up during the talks between Prime Minister Koirala
and his Chinese counterpart Rongji. He further said that China had not officially spoken
about the security situation in Nepal.
However, Bastola admitted that the Chinese had expressed
concerns over activism by Tibetan exiles living in Nepal. The Chinese, Bastola said,
"have expressed their worries on the possibility of Nepal being used against Tibet
autonomous region and mainland China. But we have assured them that Nepalese soil would
not be allowed to be used against any third country."
Bastola said that Nepal would also raise the nuclear arms
race in the region as one of the subjects during Rongji’s visit.
But for the most part, the bilateral talks will focus on
improving the economic ties between the two countries, the entry of Nepal and China into
the World Trade Organization (WTO) and a host of bilateral matters, besides regional and
international issues.
One area of talks sought by Nepal is to formalize the
transportation arrangement between Nepal and China. Nepal at present sends some food
supplies to remote mountainous districts in the northwest through Tibetan territory. But
this is being done on an ad-hoc basis even as the two governments continue to exchange
drafts on ways to formalize the agreement.
China has also agreed in principle to open two more
Nepal-China border points – Kimathanka and Mustang – besides the existing
Kodari, Yari and Rasuwa. Nepal had asked for two more points Tinkar and Mugu and they are
still being discussed, said Foreign Ministry officials. Once Kimathanka and Mustang become
operational, Nepal and China will have six trade points, with Olangchugola being the
sixth, though unofficial border crossing point.
A matter of concern for the Nepalese side is the increasing
trade deficit between the two countries, to the disadvantage of Nepal. In the fiscal year
1999-2000 the imports from mainland China and Tibet amounted to Rs 8.3 billion and Rs 47
million respectively. During the same period Nepal’s exports to these places stood at
Rs 1.8 million (mainland China) and Rs 510 million (Tibet autonomous region). Nepal has
also asked China to grant preferential treatment for trade with the autonomous region of
Tibet.
Altogether six agreements are likely to be signed during the
Chinese Premier’s visit. One is Memorandum of Understanding (MoU) on agriculture,
letters of exchange on the new road link Syabrubesi-Rasuwagadi, polytechnic institute at
Banepa, economic and technological cooperation, hospital for civil servants in Kathmandu
and one on the avoidance of double taxation and fiscal evasion
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