Nepal committed to ideals of United Nations: Koirala

BY A STAFF REPORTER

Kathmandu, Oct 24: Prime Minister Girija Prasad Koirala said today that it is time to hold a vision for the new era and strengthen the United Nations, so that the organisation could come closer to attaining its noble objectives.

"Based on the ideals enshrined in the Charter, we need to make the United Nations more effective and responsive to the present-day needs and aspirations of the international community," Koirala said.

Koirala was addressing the inaugural session of the round table on the Millennium Summit of the United Nations organised by the UN Association of Nepal to commemorate the 55th anniversary of the United Nations here today.

He said during the summit held in New York in September he emphasised the importance of international peace, equity and adherence to common values.

"I also called for establishing an world order, which is all-inclusive and fair and just to all."

"Considering the constraints of the least developed and land locked countries, I also urged the international community to give special consideration to their plights including their growing debt burden and enhance the capacity and authority of the UN bodies and the specialised institutions," Koirala said.

He said at the Interactive Round Table where about 40 leaders from around the world participated he stressed the need to strengthen the United Nations and to enhance its role and capacity to promote cooperative partnership and common prosperity.

Koirala said in view of the unprecedented globalisation and the diverse nature of challenges faced by the nations around the world, United Nations is to take a lead role in dealing with the root causes of challenges and conflicts, he added.

Koirala said that international peace and security are threatened more by the growing gaps between haves and have-nots than anything else. Poverty is the biggest single threat to national and international peace and security, he said.

"Therefore, all our efforts must be geared towards ensuring economic development and social progress in the developing countries, which would promote democratic governance in these countries and international peace and security in the long run."

Koirala said the UN Millennium Declaration issued at the conclusion of the summit has also highlighted the issues that are of importance to Nepal.

"We are happy to see that freedom, equality, solidarity, tolerance and respect for nature and shared responsibility have been described as the fundamental values essential to international relations in the twenty first century," he said.

Addressing the function, Dr. Henning Karcher, UN Resident Coordinator for Nepal said, "I believe it is significant that at the outset of the Millennium Summit, Heads of State and Governments reconfirmed their faith in the United Nations and its Charter as an indispensable foundation for a more peaceful, prosperous and just world."

He said that the UN country team here in Nepal has joined hands with Nepalese government in adopting a rights-based approach to formulate its United Nations Development Assistance Framework for the next five years.

Karcher said in Nepal with its fragile mountains and hills the nexus between poverty and environment is a particularly stark and evident reality. Conservation of biodiversity becomes not only a global imperative but an immediate necessity for those who live off the land and benefit from tourism.

Professor Bishwa Maskay, President of United Nations Association of Nepal (UNAN) said among the vast disparities in economic, political and technological power base of nation-states, only the UN offers the space for democratic self-determination for the small and the weak.

For small states like Nepal, the UN has offered internal conditions for viability and external conditions for sovereignty and security, he said,

Maskay said Nepal’s partnership with the UN has, therefore, come to occupy a pride of place because it is glued by a value system that has a common obligation to promote peace, development and human security.

He said the round table was being organised to bring the commitments, initiatives, institutions and people together to internalise in Nepal the commitments of the millennium summit.

Meanwhile, in Prime Minister Girija Prasad Koirala has said that Nepal is committed of the ideals of the United Nations, and ever since becoming its member in 1955, it has played an active role in realizing the objectives of the world body to which many Nepalese nationals have provided and are still providing their services to maintain peace and order in conflict-prone areas.

The Prime Minister was addressing a function held at the UN house, Pulchowk today on the occasion of United Nations day-2000. The occasion is being observed with the theme "race Against Proverty: Breaking the Silence on HIV/AIDS".

The Prime Minister said our relations with the United Nations are deep-rooted and our commitment to the ideals of the UN is fundamental to our foreign policy, adding, we believe that there is no alternative to this world organisation and it must become stronger in the years ahead.

Pointing out that although science has taken many strides in the health sector, deadly diseases like HIV/AIDS still defy human beings, he said in the case of Nepal, a major factor contributing to the spread of this disease is human trafficking, which is posing a threat to society as the health care system is weak and treatment is unaffordable.

His Majesty’s Government recognises the reality and is ever willing to work closely with non-governmental organisations and international development partners to identify the problem and design an appropriate response in an integrated manner, he further said.

He also thanked the United Nations agencies in Nepal for their productive work in the health sector.

At the function, the Prime Minister presented shawls and certificates to chairman of the mothers group Syangja Prem Kumari Regmi and Makwanpur Rural Women’s Community Health Volunteer Shyam Kumari Lataula for their significant role in HIV/AIDS control.

UNDP resident representative in Nepal Dr Henning Karcher said UNDP strategy is to make a solid contribution to poverty alleviation in keeping with the priorities of the Ninth Plan.

National representative of UNICEF to Nepal steward Macnab and Acham DDC chairman Krishna Prasad Jaisi expressed their views about the spread of HIV/AIDS and its control.

A street play on HIV/AIDS was also presented on the occasion.

Has China really approved Nepal as travel destination ?

BY NAVIN SINGH KHADKA

Kathmandu, Oct.24: Chinese travel agents have not yet started selling Nepal as a destination since, what they claim, the country is not included in the list of Chinese officially-approved outbound-destinations, members of a tourism delegation freshly back from China Travel International Mart said.

"All the six outbound travel agents in China told us that they cannot still sell Nepal because it is yet to be included in the list of China’s recognised outbound destinations," Yogendra Shakya, former President of Hotel Association of Nepal (HAN) told The Rising Nepal.

He was one of the delegates of the three Nepalese companies that took part in the mart in China from October 18 to 21 this month. "They said if they sold Nepal before it is included in the list, they would face problem in foreign exchange repatriation."

The Chinese travel agents’ claim strongly contradicts to what was officially acclaimed here last August – that China has listed Nepal as its ninth outbound destination.

Amidst jubilation in the tourism industry, tourism entrepreneurs had even opened champagne corks cheering the decision. Chinese nationals are only allowed to travel the countries and regions that have been granted the Approved Destination Status by the Chinese government.

With Nepal said to be in that status, travel traders had a reason to smile. They believed they had a big market awaiting them. With1.3 billion as its population, China saw 9.23 million of its citizens travelling abroad in 1999 — up from 4.52 million in 1995.

But now, if the news the Nepalese delegation has brought home from China is true, disappointment certainly has room to prevail. Worse still, ever since the news that Nepal was recognised as an outbound destination by China broke out, the northern neighbour has already added new destinations in the list – the latest being the 15th country.

"And Nepal is nowhere in the list," Shakya said. What backs his point is a feature article in Travel Asia’s October 18, 2000 issue that has shown 15 countries with the China’s Approved Destination Status. These nations include Singapore, Malaysia, Thailand, Philippines, Australia, New Zealand, Korea, Vietnam, Laos, Cambodia, Myanmar, Japan, Brunei, Hong Kong and Macau.

The travel trade tabloid has quoted China Travel Service (Hong Kong) as its source for the facts and figures.

But the officialdom here has a different story on offer. Officials at Ministry of Culture, Tourism and Civil Aviation (MoCTCA) and Foreign Ministry claim they have received an official letter which shows China has recognised Nepal as an outbound destination.

"We did receive a letter of the formal recognition more than one month ago," said Dambar Datta Avasthi, Under Secretary at the MoCTCA.

So say the officials at the Foreign Ministry. "We did receive the information and so we had issued press statements accordingly," said a senior official at the China Desk of the ministry.

In that case, what could have gone wrong? Knowledgeable sources point at an "unmet" Chinese demand that could have possibly kept the Chinese recognition to Nepal – as an outbound destination — from getting the practical seal.

What they point at is the Chinese request to allow the establishment of a Tourist Information Bureau – a unit of China National Tourism Administration — in the capital. "What we have to understand is that every nation gives its neighbour something on the basis of reciprocity," said a senior official at Nepal Tourism Board – that had also taken part in the recent international tourism mart in China.

"No sooner the Chinese tourist information office is allowed to be established here, the Chinese travel agents will be allowed to sell Nepal as a destination," he said.

Officials here said that the idea is under discussion. "The Foreign Ministry has been informed about the matter and the Home Ministry is making inquiry on it," said Awasthi. "There is no question why such an office should not be allowed to be here because they have made it clear that it won’t be for commercial purpose. But the matter has to be discussed among the three ministries."

A section of travel industry, however, is already up against allowing the Chinese tourism information centre here. Nepal Association of Travel Agents, for instance, has been quite vocal against the idea. The opposing quarters in the travel trade claim that such an office would share the business pie in the country.

Whether that happens here or not, the pie is certainly getting smaller for Nepal in China – with the increasing number of countries getting the Chinese outbound destination label. Things could get even tougher when China joins the WTO. That way, it could be now or never for Nepal.

RNAC-Lauda Air deal
Controversy over security deposit looks like an issue misunderstood

By Sunil K.C.

Kathmandu, October 24: The whole controversy over the security deposit and the issuance of a counter-bank guarantee by the leaser in the deal between the Royal Nepal Airlines Corporation (RNAC) and the Lauda Air of Austria to lease a Boeing 767-300 ER looks like an issue of misinterpretation and misunderstanding.

Unlike the scepticism expressed by the media and others the Royal Nepal Airlines will hand over a security deposit of one million US dollars to Lauda Air only after it receives the ‘certificate of delivery’ of the aircraft.

"We will be taking hold of the plane with one hand and transferring the money with the other," said Haribhakta Shrestha, executive Chairman of RNAC.

Again aviation experts say the question of counter-bank guarantee becomes void as the plane will be received at the same time RNAC posts the security deposit.

"Counter bank guarantee is necessary only when you are sending a lot of money to the leaser and only if the plane is dated to arrive at a later date or the arrival of the plane is uncertain," Shrestha said.

After the Chase Air scam stung the RNAC so badly it was natural for the media to raise questions about things like security deposit, counter-bank guarantee and other aspects of the deal to lease aircraft.

Meanwhile, aviation experts say it would be gross misjudgement to compare the present deal with Lauda Air of Austria with that of the now infamous Chase Air or any of the previous deals, which had failed.

The reasons: Lauda Air, a subsidiary of Austrian Air, an Austrian government entity, has been flying to Kathmandu under an agreement between the governments of the two countries. Lauda Air is also partly owned by the famous Formula One driver Niki Lauda. Moreover, it was Lauda himself who had intervened to make the deal successful when it had almost failed.

Secondly, with the reputation it has (Lauda Air has been voted as the ‘Airline of the Year’ in Europe this year) there is little room to doubt about Lauda Air dishonouring the agreement. Because more than anything else, it is the reputation that keeps an airline flying.

Moreover, there is no denying from both the tourism entrepreneurs and others that the Royal Nepal Airlines is in dire need of a wide-body plane. RNAC’s all four previous attempts to acquire a wide-body plane had failed.

The Royal Nepal Airlines had been looking for at least one wide-bodied aircraft since it sold two of its Boeing 727 aircraft seven years ago. The search for such a plane became more acute in the last two years or so after it expanded its routes and two of its narrow-aisle aircraft proved to be unprofitable in long-routes such as Europe.

RNAC's search to fulfil its flight schedules, especially when its plane remain grounded due to technical reasons, through leased planes and the controversies that surrounded them are all too familiar. However, in the last two years, RA desperation grew after it failed to find aircraft in the international market through global tender. The four failed lease deals in the last two years had pushed the airline’s credit-worthiness to rock bottom.

So, about one and a half-month back, after its latest deal with Ansett failed, RNAC went for sealed offer and got offers from three parties: Ansett of Australia, Inland Aviation of USA/UK and ICTC group of Nepal.

Ansett’s conditions were much more stringent than its previous three biddings. It would not give aircraft on AMI but only on dry lease, which means RNAC will have to do with everything - crew, maintenance and insurance - and that too for a five-year period. Even the rate it quoted at US$ 3,700 was US$ 300 higher than it had agreed to previously. That was too big an asking from RNAC, which has been virtually limping from numerous controversies and accusations of mismanagement.

Ansett also said it would not deal with RNAC until the latter learnt to ‘behave’ according to international business norms and practices.

The second bidder, Inland Aviation, not only demanded RNAC to declare it its exclusive agent for five years, meaning RA can not lease aircraft from anybody else, and failing which the Nepalese carrier would have to pay a fine of one million dollar for each month, but it also asked an advancement payment of one million dollar. It also asked the RNAC officials to come to London with three months lease payment.

Nevertheless, RNAC officials went to London to negotiate with Inland Aviation, but it fell through after the supposed leaser failed to show any aircraft.

The third bidder ICTC said it had the full authorization of Lauda Air and the RA team then went to Vienna. There, Lauda Air showed RA officials the plane it had been flying to Kathmandu.

RNAC pilots and engineers who inspected the plane say the plane, although it is 12-year-old, is as good as new. They also say the additional features include the cabin is fitted with telephone and audio-video equipment in each seat.

Earlier, the asking rate was US$ 3,700 per flight hour but finally it was negotiated down to US$ 3,350, fifty dollars lower than what Ansett had agreed to RNAC.

The Executive Chairman of RNAC said this is the best deal RA has struck till date not only because it is cheaper but also because of other features of the agreement such as the Lauda Air has agreed to fly the plane until RNAC’s own pilots are able to take over and also it has agreed to bear the 50 per cent cost of the C-check of the plane.

Figures say its 258-seat capacity makes also makes it cheaper than the China Southwest’s Boeing 757, RNAC has been currently leasing, with the cost per seat with crew at only US$ 14.3 as against US$ 16 of the CSA plane. When the RA pilots begin flying the aircraft this cost will come down even further to US$ 13.

RNAC plans to put this plane in its long routes. "If we can put this plane in the Delhi, Osaka and European route, this plane alone can make a profit of US$ 4.4 million in a year," Shrestha said. He also said that even the European sector, where RA has been perennially suffering losses, could turn out to be profitable with the wide-bodied plane if we do aggressive marketing.

The RNAC Executive Chairman also said the agreement, which also includes the bank guarantee, will be effective from the day RA takes over the plane and the agreement will be effective only after the government of Nepal and the Board of Director of the Corporation approves this. The deal has already been approved by the cabinet, and RNAC is waiting for it to be executed.

If everything goes well RNAC expects to bring in the plane on December 1. "We are thinking of receiving the plane in either Frankfurt or London and carry on our scheduled flight to Kathmandu by the plane right away.

Meanwhile, like once bitten twice shy, several provisions of the deal are being questioned by the Public Accounts Committee of the parliament and others.

PAC Chairman Subash Nembamg said that the Committee has called the Secretary at the Ministry of Tourism and Civil Aviation and the Executive Chairman of the RNAC on October 31 to clarify about the provisions of the agreement.

TRN’s attempt to contact the Secretary at the Ministry of Tourism and Civil Aviation, Barun Prasad Shrestha, did not succeed as the Secretary was convalescing after a heart operation.

"We will ask them about the mode of agreement, the rate and accusations about the age and the condition of the plane and about the counter-bank guarantee," Nembang said.

"We will also ask them about why they did not abide by the directives of the Commission for the Investigation of the Abuse of Authority and also the commitment made by the Minister for Tourism and Civil Aviation to lease aircraft on through tender," he said. But he accepted that RNAC has furnished the PAC with all the details of the agreement and that he would go through them all before he confronts the Secretary and the RNAC’s Executive Chairman at the end of this month.

Nembang, however, accused RNAC of making a haste to lease the Lauda Air aircraft. "Why is RNAC in such a hurry to lease the plane when only about two months ago it extended its deal with China Southwest for a one-year period?" he asked.

Meanwhile, tourism entrepreneurs say RNAC has been barely managing with its three planes. With almost 2 months of its flights to Europe fully booked, RNAC is hard pressed to meet that demand with its narrow-body planes.

The other reality that other airlines such as Lauda Air itself, Qatar Airways, Thai, Singapore Airlines and others are increasing their flights to Kathmandu indicate the market is growing. So, tourism entrepreneurs say, "It is imperative for RNAC to vie for a piece of that cake if it wants to remain competitive." They ask when other airlines can increase their flights why can’t RNAC do the same by bringing in extra planes? The tourism sector has been the severest critique of RNAC, being the flag carrier, for failing to give a boost to the tourism sector by adding more air seat.

Shrestha also said RNAC’s present and planned route structures demand at least four planes. So, he said, RNAC needs one more plane to its present fleet of three aircraft and a wide-bodied one would serve it better.

Sell quality in global market, says Tamrakar

BY A STAFF REPORTER

Kathmandu, Oct. 24: As a homework for the stiff competition Nepal could face after joining the World Trade Organisation, Nepalese products and services need to be streamlined under the Nepal Standards, policy makers and experts agreed here today.

‘’We have a bitter experience of our products being rejected in the international market due to their low quality. And realising this very fact, the producers’ and the businessmen’s concerns should be directed towards the quality and the durability of the products,’’ said Minister for Industry, Commerce and Supplies Ram Krishna Tamrakar while inaugurating the 31st anniversary of Nepal Bureau of Standards and Metrology here today.

He pointed out the need to label the Nepal Standard mark to all the imported goods so that the domestic industries can come into the healthy competition.

Referring to the opportunities and risks associated with quality, he urged all the producers and businessmen to help the government’s efforts in maintaining the quality standard.

‘’Quality is a journey not a destination,’’ said Pradeep Kumar Shrestha President of Federation of Nepalese Chambers of Commerce and Industries (FNCCI). Addressing the ceremony, he stressed that only the united efforts of all the business communities and the authorities can ensure quality of products among the general public.

‘’If the quality of our products do not maintain the standard, the outcome will be counterproductive for not only the businessman but also for the whole country, ‘’he said.

‘’The quality factor should always be borne in mind if the goal is to expand the market,’’ he said. ’’The quality always pays back.’’

He also informed that the FNCCI has planned to award an excellent industrialist in the future.

Chief Commissioner of Asian Paints Pvt. Ltd. P. V. K. Kannan said that the main setbacks for the growth of industrial culture in the country are rampant corruption, bureaucratic hurdles and political instability.

During the occasion, Asian Paints Pvt. Ltd. was awarded the ‘Quality Award 2000’ for its best quality products of this year.

Swodeshi Cable Private Ltd. and AROTEC Pvt. Ltd. received letter of appreciation each.

‘Non-polluting industries to be encouraged’

Kathmandu, Oct. 24 (RSS): Participants of an interaction programme organised by Martin Chautari here today pointed out the need for the government to give priority to electric vehicles taking into consideration environmental pollution and the hike in price of petroleum products.

Speaking at the programme, Minister of State for Water Resources Ram Bahadur Gurung said as environment is the first priority of everyone, the government is working to encourage non-polluting industries.

Maximum utilization of water resources in the country can bring a radical change in the development of the country, Mr Gurung said, adding that the government is ready to give priority to electric vehicles running with electricity produced in the country.

Environmentalist Amod Pokharel disclosed that air pollution during peak hour, (9:00 a.m. To 11:00 a.m.) In Kathmandu was found to contain 400 microgram of particles.

As vehicles running with petrol and diesel add 31,000 tons of carbon monoxide into the atmosphere of Kathmandu Valley annually, air pollution is a grave problem in the valley, he added.

Chairman of Safa Tempo Entrepreneurs’ Association Devi Prasad Limbu complained that the government has not provided any facility to the Safa tempo business running with an investment of about Rs 450 million.

The decision to stop registration of Safa tempos is in contrary to the policy of the ninth plan to encourage electric vehicles, he added.

Joint-secretarty at the National Planning Commission Baidyanath Mallik said 60 percent of the total number of transport vehicles in the country are running in Kathmandu valley and this has had an adverse affect on the environment.

Executive director of Nepal Electricity Authority Bishnu Bam Ballav said the authority has been charging Rs. 4 per unit at the charging stations of safa tempos and is also ready to provide electricity at a concessional rate to electrical vehicles.

Chairman of Winrock Ratna Sansar Shrestha and other speakers also expressed their views at the interaction programme.

Govt has two pronged policy for talks with Maoists: Chataut

Mahendranagar, Oct. 24 (RSS): Minister for Culture, Tourism and Civil Aviation Tarini Datta Chataut has said the Maoist insurgency which is posing a severe challenge before the nation has brought unrest to the heart of every Nepali.

Minister Chataut, who was inaugurating the 11th meeting of Kanchanpur district committee the other day said the government has put forth a two pronged policy of keeping the door open for dialogue with the Maoists and strengthening the security apparatus to prevent any upsetting of the law and order situation in the country.

The government is determined to rehabilitate the freed Kamaiya, he said adding, due to the rise in the price of petroleum products in the international market, the government has been compelled to raise the prices here also.

MP N. P. Saud said there are no differing views on the need to seek a solution to the maoists problem through dialogue but difficulties have arisen because of lack of clarity over how the problem emerged and what the Maoist mission is.

During the meeting held under the chairmanship of Kanchanpur DDC president Rishiraj Lumsali, MPs Ganga Datta Joshi and Lal Bahadur B.K., ex-deputy speaker Bhojraj Joshi, ex-MP Urwadatta Pant and NC Kanchanpur district president Antaram Bhatta also expressed their views.