Nepal & BIMST-EC
Keeping Future Perspective Ahead

By Nischal Nath Pandey

THE decision of Nepal to join BIMST-EC as an observer is based on its far-sighted assessment about political and strategic convergence, speeding up of economic relations and its future potential and complementarities in areas that are till now unexplored. BIMST-EC has several advantages that Nepal can benefit from since Nepal too possess decades of experience in areas like tourism that BIMST-EC has only to gain.

Background

On 6 June 1997, a new sub-regional grouping BIST-EC (Bangladesh, India, Sri Lanka, Thailand) was formed at a meeting of the trade ministers of these countries in Bangkok. After Myanmar joined the organisation as a full member at a special ministerial meeting in December 1997, the name of the grouping was changed to BIMST-EC. The idea of BIMST-EC may have commenced in order to activate economic interaction around the Bay of Bengal community. But within weeks of the first ministerial meet. Thailand got enthralled in a major financial crisis and other member states too had their share of political uncertainty in their respective capitals. Nonetheless, the geographical area that this economic grouping made an effort to enclose was unquestionably home to the oldest trading communities which is why the grouping created so much of initial euphoria. In the Declaration itself, the members were designing to establish a firm foundations for common action to promote cooperation in the areas of trade, investment, technological exchange and interrelated area in a spirit of equality and partnership. The aims and purposes of the group as visualized by the members was among others to create an enabling environment for rapid economic development with identification and implementation of specific cooperation projects in the fields of investment and industry, technology, human resource development, tourism, agriculture, energy and infrastructure and transportation.

At the first meeting of senior Trade Economic officials of BIMST-EC member states exchanged views of the progress of six identified sectors of cooperation. It has been widely acknowledged that these specific sectors are the backbone of BIMST-EC, a raison d’être behind the organisation’s high esteem as economic oriented but free of political irritants. Bangladesh, the lead country for trade and investment sector, reported on the projected plans of action on those core areas and Myanmar reported on the energy sector and investigated the potential for cooperation in new sources of energy along with prospects in the fields of photovoltaics, solar water heating, bio mass and bio-gas energy and thermal energy conversion (OTEC). Thailand, the lead country for fisheries stated its desire to include aquaculture in the fisheries sector while India, the lead country for the technology sector made a presentation on the possibilities of cooperation in high technology areas such as remote sensing communication, composite material technology and computer-aided design. Nepal participated as observer on the expert group meeting on Tourism held in August 1999. The tourism sector which is headed by Sri Lanka, a country that still possesses a vibrant tourism industry despite enduring a very long armed conflict. Another feature of the regional grouping has been its purposeful and conscious consideration of trade facilitation issues which is reflected in its decision of identifying and eliminating various impediments to intra-regional trade and cooperating in valuation procedures, especially for goods commonly traded among member countries. Besides, pre-shipment inspection (standards, testing and certification), strengthening the banking arrangements, facilitation of transportation, intellectual property rights and mobility of business people were painstakingly deliberated and pondered. Involving these very significant areas, it was recommended that periodic meetings of the central banks of the member countries should be held so as to solve problems swiftly and ease procedures of banking transactions and flow of foreign exchange remittance Harmonisation of standard rules related to opening and confirmation of LCs as well as other certifications was also explored. Member states have likewise agreed to cooperate in sharing information, data, technology and expertise to increase cooperation in the energy sector. Thailand has been involved to prepare a plan to develop a regional infrastructure base for the use of natural gas found in the Bay of Bengal area. In fact, it was Thailand that has agreed to speed up construction of a trans-Asian highway which is actually extending a road of about 15 hundred kilometres in between Vietnam and Thailand through Myanmar and Bangladesh. The road is expected to terminate at Calcutta.

Despite the advantage of cultural closeness and understanding that the member states of the region posses, they were behind in realising the existence of natural proximity amongst themselves. But the time is now ripe to give a crisp thrust to the organisation by boosting economic and technical cooperation not only at the governmental level but more so among the private sectors of member states. It may be recalled here that the private sectors of both Thailand and India have been major players in their respective economies from quite some time now.

Possibilities

Nepal should not only explore possibilities of acquiring a full-fledged membership of BIMST-EC but at the same time strengthen bilateral relationship with individual BIMST-EC countries. In today’s interdependent world, one cannot figure out why a nation such as ours living in destitute and poverty should not try to reach the overwhelming prospects brought about by regional cooperation and economic integration. Economic cooperation has received the principal focus in the recent years and it is for this that we must be flexible to the idea of group efforts and alliances like the BIMST-EC. Some commentators are of the view that Nepal being a member of SAARC should not get into other regional forums which is in today’s time and era an outdated and obsolete argument in itself. The primary objective of getting involved in regional groupings is for social and economic advances so as to improve the living standards of the people and it is this that should ultimately guide our policies, strategies and foreign policy approaches in the 21st century.

King Mahendra’s Visit To China

By Guna Dev Bhattarai

MODERN China produced charistmatic persons such as Dr. Sun Yat Sen, Chiag-Kai-Shek, Mao Tze-Tung and Chou- enlai. The first two failed to unify China while the last two were responsible for modernising China and enabled her to challenge the big powers in recent times. The People’s Republic of China (PRC) came into existence on October 1, 1949 under Chairman Mao-Tze-Tung at Peking (now Beijing). The establishment of PRC ushered in a new era in the history of Chinese people. The Communist ideology and national interests guided her relations with the other powers. Nevertheless after the Bandung Conference in 1955, China entered into friendly relations with the neutral countries like India and others. It was on the basis of five Principles (Panchsheel) Tanka Prasad Acharya’s government concluded on September 20, 1956 a treaty of friendship between Nepal and China. Besides, Tanka Prasad Acharya as the Prime Minister, was equally successful in strengthening Nepal’s ties with India.

King Mahendra visited many countries during his reign. One of them was the People’s Republic of China. The visit took peace on September 25, 1961 which coincided with the auspicious celebration of the twelfth anniversary of the founding of the PRC. Inspite of having different political systems the bond of friendship between Nepal and PRC was to be cemented in keeping with the demands of the age.

When Their Majesties visited Canton thousands of people greeted them with the traditional multi-coloured lanterns. On many occasions of their visit the concerned authorities observed ‘Our friendship would consolidate peace in Asia and the world.’ After visiting many regions Their Majesties visited Peking (Beijing). They were astounded at the sight of Nepalese and Chinese flags spontaneously decorated here and there. During the visit adherence to non-aligned foreign policy of Nepal was highly applauded and appreciated by the Chinese.

Chairman and Madame Liu-Shao-Chi warmly received Their Majesties at the airport. The surging crowds shouted "Long live Nepal and China friendship". The youths of China perhaps had no experience of seeing a monarch of a small Himalayan kingdom. Chairman Liu-Shao-Chi’s banquet speech impressed Their Majesties when the former said, "The Chinese government and people will work in close cooperation with His Majesty’s Government of Nepal and the Nepalese people in opposing colonialisation, strengthening Asia-African solidarity and safe-guarding world peace. Further he emphasised in his speech by saying, "China has always strived for the realisation of peaceful coexistence with countries of different social systems on the basis of the five principles (Panchasheel). We firmly maintain that all countries, big or small, should treat each other equally and help and respect one another, that any foreign infringement of their sovereignty and territorial integrity in its internal affairs are absolutely impermissible and no political strings should be attached to mutual economic aid." Further the Chairman declared, "This stand of ours is firm and unshakable and can stand the set of time and practice." He concluded his speech by saying, "In the face of foreign aggression and pressure, the heroic Nepalese people have remained firm and unyielding and have always maintained their independence and dignity."

King Mahendra was equally clear in his reply by saying "we have no intention of following any particular country or power-bloc. It is our conviction that a small nation can make contribution to world affairs only by adopting such a policy. In the present-day world, international amity cannot be maintained on the basis of strength of arms and pride of power alone. Friendliness, goodwill, non-aggression, sovereign independence, ideal of more values, non-interference in internal affairs, peace and other allied attitudes are the need of the day."

Chou-enlai took Their Majesties to different places of historic interests. During the tours King Mahendra and Chou-enlai had frank exchange of views on tangled issues. Further, Their Majesties were highly impressed by the astounding development China had achieved in a short span of time.

Last but not the least, the meeting between King Mahendra and Mao-Tze-Tung was a rare occasion. There was not even an iota of superiority or inferiority complex on either side. Both of them were of the same view that Asian nations should trust themselves and help one another in every aspect of life. By far the most outstanding achievement was the acceptance of the traditional map of Mount Everest by China. The Everest deadlock was amicably settled. King Mahendra said, "Today a fresh chapter has been added to the history of our good relations." His Majesty’s farewell banquet address enhanced the prospect of peace: "Nepal is for peace and friendship with all countries, especially neighbourly countries. We do not entertain a warlike attitude towards any country though we keep ourselves ever ready so that we may not be found wanting in the event of any aggression against us from any
quarter." Thus Their Majesties’ visit to the Peoples’ of Republic China left an indelible impact on the Nepal-China relation.