Interim government a precondition for Round Three, says Prachanda

Post Report

KATHMANDU, Nov 10 - Chairman of Communist Party of Nepal (Maoist) Pushpa Kamal Dahal a.k.a. Prachanda today said that formation of an interim government is the only pre-condition to the upcoming third round of peace talks with the government.

In a press statement issued here today, Prachanda has also formally announced that the Maoist Party has withdrawn the demand of institutional development of a republican state in the forthcoming talks. The Maoists withdrew the demand of a republican state for "legitimate and democratic" exercise, the statement says.

The Maoist supremo has also urged all the people to be prepared for the constituent assembly elections. "We want to form an interim government thereby conducting elections for the constituent assembly," the statement says.

Prachanda has said in the statement that his party wants to put a halt to every violence and counter-violence. "Though the Maoist Party has no policy of attacking anyone, they were forced to resort to defensive actions against those murdering the people and the revolutionaries," the statement says.

But, the chief government negotiator of the peace talks and Minister for Physical Planning and Works Chirinjivi Wagle, talking to The Kathmandu Post said the Maoist statement was "incomplete". "Since the statement has not directed its workers to stop all kinds of violent acts as demanded by the government, it is incomplete and is far short of the government demands."

Prachanda has also warned not to perceive their flexibility for the talks as the Maoists’ weakness. "We want the people to make the final decision about the republican state through constituent assembly," his statement adds.

Remarking on the government’s move of scrapping the Public Security Regulations as a positive step towards the talks, Prachanda has reiterated the demand of making public the whereabouts of the Maoists including one of its leaders Dandapani Neupane.

But Minister for Home and Local Development Khum Bahadur Khadka, in an interview given to Rastriya Samachar Samiti (RSS) and Nepal Television, has said that there is no Maoist left in the police custody nor anybody disappeared by the government.

"Based on its record, the government has already made public the whereabouts of all Maoist leaders and workers under police custody," Minister Khadka said in the interview, adding, "Now the government has no record of any more Maoist workers."

In the interview, Minister Khadka also urged the Maoist leader Prachanda to give directives urging all their cadres to halt violent activities and stop using any kind of force.

"It is the turn of Maoist leader Prachanda to issue a statement ordering his cadres to immediately stop all kinds of violent activities. If such a statement is made by the Maoists’ side publicly, the confusion will be over and it would be easier for the government to take action against those perpetrating violence in the name of the Maoists," RSS quoted Minister Khadka as saying.

Minister Khadka also said the third round of talks will possibly take place before the Tihar festival. But, Minister Wagle said it was still "not sure" about the date and the venue of the dialogue.

Prachanda’s statement has also accused the main opposition CPN-UML of kow-towing to "fascist Girija" and the Palace. He also said the Deuba government was being dictated by conspirators.

Meanwhile, our Baglung-based correspondent reports: Minister of State for Home and Local Development Devendra Raj Kandel today said the government will be forced to opt for "strong measures" if the government-Maoist talks fail.

Speaking at a function organised to mark the first death anniversary of Tul Prasad Sherchan, NC worker and joint secretary of the Maoist Sufferers’ Association, State Minister Kandel said, "If the Maoists go against the dialogue dragging it to a failure, the situation will not be in their favour. Even the Armed Police Force is now strong enough to counter the Maoists."

Trade talks inconclusive 
India proposes 50 per cent value addition

By Pramod Poudel

NEW DELHI, India, Nov 10 – Indian officials negotiating for the renewal of the 1996 Nepal-India Trade Treaty have proposed to impose compulsory value addition slab of 50 per cent on material and labour on Nepali goods that are exported to India free of basic customs duty.

The Indian side placed the proposal at the latest round of trade talks that was held on Friday and Saturday in the Indian capital of New Delhi. The latest offer of the Indian side follows the recent understanding reached by the two sides in Kathmandu to adopt value addition on material and labour as a means to weed out the contentious issues that have soured the bilateral trading relations lately.

Though the Nepali side is yet to respond to the Indian offer, the two sides are likely to reach a final accord in the next round of talks, probably a secretary level one, that is scheduled for next week in Kathmandu. "Nepal has asked for some time to respond to the Indian offer," said a high level official who took part at the talks in New Delhi on Friday and Saturday.

He informed that the Indian side wanted the 50 per cent value addition in such a way that goods exported to India from Nepal required to have a prescribed amount of limited foreign content with the rest of Nepalese contents, which was not possible for the Nepalese industries in the present circumstances to meet.

"If value addition is done as it is done internationally, there would be no need for a preferential trading regime. If international practice is adopted, then the trading would be on a preferential basis or on a Most Favoured Nation basis, trading relations would be no different," the official argued.

"It was hence difficult for us to agree to their modalities in the value addition norms," said the delegate. With the 1996 trade treaty which was also meant to encourage industrialization of Nepal, India had agreed to waive the provision of 50 per cent Nepalese labour and Nepalese and, or Indian material content for the Nepalese products to have duty free entry into India, the provision which was there in 1991 treaty. This preferential access was on the basis of certificate of origin.

Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Confederation of Indian Industries (CII) had earlier recommended for value addition of 30 per cent, which could be adopted in a phase wise manner on the nature of products.

S. Ramasundaram, Joint Secretary at the Commerce Department of India, who leads the talk from the Indian side pointed out that India was not considering such recommendation but said that they were under consultations with various industries and associations regarding value addition norms. Regarding "surge" through which India could check excessive import from Nepal, the Indian side has provided some measures to which the Nepali side found it hard to agree. Both sides Saturday also discussed upon various safeguard measures like anti-dumping and countervailing duties in which Nepal could not agree to the Indian side demands. India wants to have that clause where by it can take safeguard measures unilaterally.

Nepal and India side are yet to discuss on the issue regarding the certificate of origin and the rules of origin. "New Delhi will send its detailed proposal over the certificate of origin and safeguard measures on Monday," the Nepali official told The Kathmandu Post.

Many business leaders in Kathmandu admit that the 1996 trade treaty has helped in the strengthening of the relations between the two countries, but India wanting amendment in the treaty seems to weaken the relationship. Denies Ramasundaram. He says that India wanted amendment just to save some of their industries from collapsing.

Nine killed as diesel-tanker tumbles down the highway

Post Report

DAMAULI, Nov 10- At least nine people were charred to death when a diesel-tanker collided with the road side wall and tumbled down some 150 meters from the highway at Ainapahar of the Prithivi highway.

Nine people including two children and three women died instantly on the spot and two other suffered injuries. The tanker hit the wall, burst into flames and plunged into the Marsyangdi river, the police said.

Those injured in the mishap are undergoing treatment at the Western Regional Hospital in Pokhara, according to Ganesh KC, Deputy Superintendent of Police (DSP) at the District Police Office in Tanahun. The condition of both the injured is reported to be normal.

According to DSP KC, the tanker with the registration number Na.A. Kha. 9281 bound for Baglung from Rupandehi collided with the roadside wall at Ainapahara at around 1:30 am. The rear part of the tanker touched electricity wire and burst into flames. All of the victims were burnt to death.

Area Police Office, Anbukhairani was first to be informed regarding the mishap. According to the Deputy Superintendent of Police (DSP), Dal Bahadur Karki flames was visible even at the night time some 100 meters from the police checkpost. Karki said that he immediately informed the Royal Nepal Army and locals and reached the site where the mishap took place.

The locals said that when they reached the site they found people and the tanker being burnt and it took about an hour to douse the fire, said the locals.

Those died in the mishap have been identified as :

1. Krishna Bahadur Khatri (driver) Dolakha

2. Kiran Shrestha Butwal

3. Abhishek Shrestha (son of Kiran Shrestha)

4. Radhika Gurung Rupandehi

5. Daughter of Radhika (her name yet to be identified)

6. Dharma Gyawali (conductor of the tractor) Nawalparasi

7. Geeta Damini Nawalparasi

8. Bhotu Rimal Nuwakot

9. Kismat Shrestha Butwal

Injured

1. Govinda Shrestha Rupandehi

2. Ashish Shrestha (son of Govinda) Rupandehi

Koirala escapes road mishap

Post Report

KATHMANDU, Nov 10- Former Prime Minster and the reigning President of ruling Nepali Congress, Girija Prasad Koirala escaped a major road mishap today as a mini truck collided with the car Koirala was travelling, in Sano Thimi- Hanumante Khola stretch of the Arniko Highway.

Koirala was returning after inaugurating the sixth meeting of Banepa municipality when the Mini Tata numbered Ba. 1. Ka 2328 rammed into a side of Koirala’s vehicle at around 12:30pm, heavily damaging it.

Koirala, along with others escaped unhurt from the accident.

According to eye witnesses, the mini truck coming from the opposite direction at a high speed dogged the escorting vehicle and rammed the Ba 2 Cha 9697 vehicle on which Koirala was travelling on the side and further skidded and collided with a security vehicle which was following the vehicle.

Immediately, after the accident the driver of the mini truck Devendra Tamang was taken into custody for investigation by the police.

Meanwhile, the Nepali Congress Central Office has issued a press release demanding a thorough investigation of the accident.

At around 12:20 PM, the car Koirala was riding collided with the Mini Tata (Ba.1.Ka. 2328) at Hanumante Pul, Bhaktapur. Though the car is said to have been heavily damaged, Koirala did not suffer any injuries. Nepali congress has demanded the government to investigate the incident immediately.

Intense negotiations on WTO agenda begins

By Ram Sharan Sedhai

DOHA, Qatar, Nov 10 – Trade ministers from 142 member countries plus observers who gathered here for the fourth ministerial conference of the World Trade Organization (WTO) Friday began intense negotiations and debate that would determine the future shape of the global rules based trading system.

Though 50 gagged non-governmental organizations (NGOs) representatives staged a peaceful protest in front of the conference hall at the Sheraton, it was a low key protest against the backdrop of Seattle. Security personnel allowed them to demonstrate prior to the opening of the meeting without any interference.

However, heavily armed police in camouflage fatigues were seen guarding every nook and corner of the city of this Persian gulf state throughout the day. The security arrangement has emboldened the trade ministers of the member countries and they are hopeful of holding new round of negotiations on the multilateral trading system.

Though protesters at the Seattle like Greenpeace, Third World Network and Peasant’s Confederation warned the meet of coming to a stalemate, tight security, Qatar’s geographic location, cost of getting there, limited accommodation and the provision of getting visas in advance have minimized the chances of the repetition of Seattle debacle.

However, the issue of patenting of drugs and public health and Trade Related Aspects of Intellectual Property Rights (TRIPS), loomed large over the five-day meet of the multilateral trading system compounded by the gloomy picture of the global economic slowdown, aggravated following the US attacks on September 11 and the ongoing war against terrorism.

Other issues like the dispute over agricultural and export subsidies, trade in services, trade and environment, competition policy and labour standards are the main agendas of the meeting, which were raised strongly by the developing nations during the Seattle meeting.

The number of outstanding problems left for ministers to resolve has been reduced to a manageable minimum, but this does not mean that every thing has been settled but some tough issues. "Deep differences remain", acknowledged WTO Director-general Mike Moore in his speech at the inaugural session.

Doha Conference is the beginning of a new journey whose objective is further liberalization of trade, creation of more jobs, strengthening of multilateral system and the extension of full benefits of the multilateral trading system to the marginalized poor countries, said Moore without pronouncing the word LDCs.

China’s possible entry into the global trading regime got prominence during the session. "This meeting will set the seal on a major historic event, the accession of China and Chinese Taipei to the WTO", Moore said reckoning China’s growing influence in international trade.

Inaugurating the meeting Friday evening, Shaikh Hamad Bin Khalifa Al-Thani, Amir of the State of Qatar, urged all ministers to make decisions that would be satisfactory to all. He said the multilateral trading system has undoubtedly contributed to the growth of world economy and has extended aid to many developing nations, but there has been no equal distribution of benefits among many developing countries.

Taking full account of the needs and expectations of developing countries is the goal of WTO and ministers must work to find an effective mechanism within the WTO which can provide a realistic prospect for these countries, particularly the least developed countries (LDCs), emphasized the Emir.

"The world is awaiting a new round of negotiations that would give prominence to development, consolidate the principles of justice and equity in multilateral trading system and open wide the doors of every market for the LDCs", he added.

Youssef Hussain Kamal, Minister of Finance, economy and Commerce of the host country Qatar, said that the implementation of the Uruguay Round Agreements represents for many developing countries is an issue of vital importance as they rightly say that many of the benefits of the Uruguay Round did not materialize. This should be addressed and a mechanism for dealing with these issues should be created, he stressed.

Rubens Ricupero secretary general of UNCTAD, read out UN secretary-general Kofi Annan’s message and Stuart Harbinson, Chairman of the General Council also spoke on the occasion.

Today’s LDCs’ Ministerial Meeting signalled light at the end of the tunnel. The meeting was significant as Nepal got an opportunity to collectively put forward the voices of the LDCs and it was well-received. Nepal presented revised drafts on TRIPS and Implementation. Speaking during the meeting, Minister for industry Commerce and Supplies Purna Bahadur Khadka, head of Nepalese delegation in capacity of observer country, urged WTO to recognize the marginalization of LDCs.

Minister Khadka also stressed that LDCs’ accession priority should be recognized and transition period should be counted beginning from the date of accession. "LDC friends let us work together, coordinating unitedly to articulate our common agenda", he said addressing the representatives of LDCs.

He also held talks with Rogerr Farrel, Accession Working Party’s Chairman and Accession Division Director of WTO during the meeting regarding expediting Nepal’s accession process. Farrel said that he is committed to Nepal’s fast track accession to WTO.

"We want to help Nepal for its fast track accession. We are co-operating, ready to cooperate and committed towards it", said Minister Khadka quoting Farrel.

"We want revised offer of goods and services and legislative action plan for the expedition of your country’s accession process", said Farrel. Minister Khadka said that preparations will be made accordingly for the fast track accession process.

About 5000 people including the press, delegates of member and observer countries including a fewer number of NGO representatives compared to Seattle are attending the meeting.

SIDA to allocate US$ 12.5 m for Melamchi

Post Report

KATHMANDU, Nov 10 – Nepal and Sweden on Friday signed an agreement to provide a credit of 12.5 million US dollar for the Melamchi Water Supply Project (MWSP).The fund will be channelled through Swedish International Development Agency (SIDA).

The agreement was signed by Madhav Ghimire, Joint Secretary at the Ministry of Finance and Swedish Ambassador Johan Nordenfelt, said a release issued by Melamchi Water Supply Development Board.

Speaking on the occasion, Arthur C Macintosh, senior project engineer of the Asian Development Bank called upon the government to be serious about the introduction of private operator in the distribution of drinking water in Kathmandu by December 2002 as planned.

However, Ghimire, who heads the foreign aid division, said that although it was a difficult task to introduce private operator in the sector, the government is fully committed to facilitating the private sector.

Demand for republican state discarded, but for how long?

By Tilak Pokharel

KATHMANDU, Nov 10 – Though the Dashain festival passed merely in hope, the government-Maoist dialogue is likely to be the Dipawali gift for the 23 million Nepalis who are expecting with bated breath for the fruitful conclusion of the talks that will signal an end to the spectre of violence.

Both the government and Maoist have shown willingness to the talks and have created environment of trust, at least for the moment, averting the looming crisis that had cast a doubt on the outcome of the talks and on the possibility of the talks itself. If no untoward incident happens at the last moment, the third round of peace talks would take place within a day or two. All the right moves are being made for the success of the talks. The Maoists have dropped their chief demand, a republic state, albeit temporarily. The government has, in turn, scrapped the Public Security Regulations and has initiated moves to release 68 Maoists.

The Maoists also say their negotiators can come to the capital for the talks within 24 hours of the government’s announcement of date and venue for the talks. Home Minister Khum Bahadur Khadka said the talks would be held before Tihar.

Although the Maoists have temporarily dropped their demand for republic, they have been insisting on the formation of interim government and the constituent assembly. As far as the interim government is concerned, even Prime Minister Sher Bahadur Deuba has shown willingness to consider it "if all the political parties and civil society want a national government".

Though the Maoists have not scrapped "the establishment of a republican state" from their principles and ideology, the Maoist move has been applauded from every corner of life, in general. But everything is not clear yet. The cloud of uncertainty is still hovering over the success of the talks and the Maoists leaving the guns and coming to the mainstream politics.

Some of the political analysts and leaders have said it is the rebels’ tricky tactics to gain as much political mileage as possible. They have questioned as to why the Maoists have been insisting on forming constituent assembly. They feel that it is the means to their end of republican state.

"I think the Maoist move is to gain political benefit out of the present volatile political situation," says Dr Surendra K C, senior political analyst. "I cannot trust on the Maoists in this regard since they have not permanently removed the demand for republic from their agenda." However, he said that if the Maoists’ intentions are good, then it is a positive move on their part.

Dr. KC also said that since the King has no direct role in almost any state affairs, it is just useless to ask for the scrapping of the monarchy as demanded by the Maoists.

Not only KC there are many leaders within the ruling party who still see the Maoist move to be trickery. Former Deputy Prime Minister and NC leader Ram Chandra Poudel recently said that the Maoist move was a conspiracy.

But editor of Mulyankan Monthly Shyam Shrestha who is known to be very close to the Maoists says that the Maoists have withdrawn their demand of republic without any tricks and wrong intention. "The Maoists have neither left the ideology of establishing Nepal a republican state and nor they have done any trick with their recent move," says Shrestha.

However he admitted that the demand for constituent assembly was a medium to achieve their aim of making Nepal a republic.

Shrestha also says the constituent assembly is the best way out of the present political turmoil, including the Maoist problem. "The election conducted for the constituent assembly will decide whether the country will opt for the constitutional monarchy or a republic," he says. Even the Maoists will be convinced by the people’s choice after the election, says Shrestha.

Shrestha who recently mediated the government and the Maoists to exchange each other’s demands formally also blamed the government of being less flexible than the Maoists. "What does the government really want the Maoists to do? Do they mean that the Maoists should leave all their earlier demands and simply come to the mainstream politics?" questions Shrestha.

Another senior political analyst Govind Neupane says that the Maoists should not have put forth the demand of republican state right from the beginning of the peace talks with the government.

"Since they (Maoists) are demanding for the constituent assembly, the sole right to decide the system goes to the people and there is no use of raising the demand of a republican state," says Neupane. "I think the Maoists have realised it now."

Some leftists believe that the Maoists withdrew the demand of republican state to facilitate the talks, which the Maoists aim to use for the formation of interim government and constituent assembly, leading to their ultimate goal of republic.

Marrakech climate talks end in deal

By Sudha Shrestha

MARRAKECH, Morocco, Nov 10 - Environment Ministers meeting in Marrakech for UN climate talks finally felt relieved after they succeeded to reach an agreement late Friday after two weeks of intense negotiations .At the last moment, the climate summit managed to get through snags created by umbrella group which were bargaining hard over compromise legal text set in Bonn.

The agreement has been hailed as the second achievement of the UN Climate talks that has capped the success achieved in Bonn in the direction of operationalising the Kyoto protocol on the climate change. Now, hopes are rising high about the possible ratification of the Kyoto protocal next year that can take place even without the US.

The protocol will go into force after it is ratified by a minimum of 55 countries responsible for 55 percent of emissions. committing to reduce their emission of greenhouse gases by 5.2 per cent below 1990s levels.

The Marrakech meeting took decisions on workable rules to govern the operation of the Kyoto Protocol three international market mechanisms, which encourage climate change activity in developing countries and among developed countries, and create an international system for emissions credit trading and also practical rules for the accounting of forestry and agricultural sinks, which absorbs atmospheric greenhouse gases. Similarly; decision was also taken on a balanced compliance regime which is fair, firmand effective and which meets the needs of all Parties.

The use of sinks was one of the contentious issues on which Russia, one of the major parties of Umbrella group raised much of the storm. Russia was asking for emission credit for its sinks more than stipulated by the Bonn accord. However, the Marrekech agreement stipulates that domestic sink credits must be reported annually and have a special classification, guaranteeing transparency.

In spirit of the Marrekech deal, sink projects in developing countries will start soon which will be covered by special rules. The terms of reference for this will be expected to be defined soon, according to a statement here .

Commenting on the out come of the summit, Canadian environment minister David Anderson said "the legal text we now have will give everyone an even clearer picture of how the protocol will work to meet our GHG reductions goals". However, International NGOs cautiously welcomed the agreement reached last minute.

In a statement, the Friends of International says the deal has failed to address many issues like establishing a strong links between the compliance regime and eligibility to participate in carbon trading.

The most disappointing for this NGO is that the Marrakech talks failed to set out a road map for future generations or request action to promote renewable energy worldwide in a statement to the World Summit Development (WSSD, scheduled to take place in Johannesburg next year.