Tea party organised
Deuba optimistic on resolution of Maoist problem through talks

BY A STAFF REPORTER

Kathmandu, Nov. 1: The ruling Nepali Congress organised a tea party this afternoon at the Birendra International Convention Center on the occasion of Bijaya Dashami-2058.

This annual function of the Nepali Congress was attended by the leaders of the different political parties, party workers, supporters, and officials from government, diplomatic missions, NGOs and INGOs.

The NC Party President and former Prime Minister Girija Prasad Koirala and senior leaders Krishna Prasad Bhattarai, Speaker Taranath Ranabhat, Shailaja Acharya, Basu Risal and others welcomed the invitees who included leaders of various political parties, heads of the diplomatic missions, high government officials and thousands of guests.

During the tea, when the political leaders wanted to talk about politics President Koirala said, "No political gossip today. It is a function organised to exchange best wishes and share feelings. Away with politics today."

The Nepali Congress has been hosting the tea-reception every year since the time of its great leader B. P. Koirala. Late B. P. Koirala had initiated the tradition of tea party with a view to meet and discuss with the political party leaders and party workers during Panchayat era. After his death late Ganesh Man Singh continued the tradition and now the Party President Koirala has been giving continuity to it.

Prime Minister Sher Bahadur Deuba also attended the function. After Deuba arrived at the venue at about 3 AM, leader of the Main Opposition Party Madhav Kumar Nepal talked on the need of all-party government for solving the Maoist problem. To this Premier Deuba replied saying the formation of such a government was not a bad idea but that all party government was formed only when the situation of the country would be very much critical. "And I am hopeful that the Maoist problem would be solved through dialogues."

Meanwhile, former Prime Minister Krishna Prasad Bhattarai outright refused the idea of all-party government saying that the CPN-UML may form a government only after three years and that too, if it gets a mandate from people in the elections.

Speaker of the House of Representatives Taranath Ranabhat, National Assembly Chairman Dr. Mohammed Mohsin, Deputy Speaker Chitra Lekha Yadav, ministers, ministers of state, assistant ministers and members of Parliament were present during the function. Also present were leaders of the main opposition CPN-UML Nepal, Bharat Mohan Adhikari and Ishwor Pokharel. Similarly, CPN-ML President Sahana Pradhan and General Secretary Bamdev Gautam were also present. Leaders of Rastriya Prajatantra Party, Nepal Sadbhavana Party and other political parties representing in the Parliament also attended the reception and exchanged best wishes on the auspicious occasion of Bijaya Dashami and Deepawali.

Photo cum art exhibition to be organised

BY A STAFF REPORTER

Kathmandu, Nov. 1: Noted US photographer Sandy Shum and artist Jyoti Dawadi are jointly organising a 20-day long photography cum art exhibition at Siddhartha Art Gallery, Babermahal Revisited starting November 6.

The exhibition will consist of Shum’s impressionistic photographs taken in Nepal, Cambodia, Thailand, Bhutan, as well as California while another artist Jyoti Duwadi will be displaying her digital art works. Many of her photographs explore Lord Buddha.

Executive Director of American Fulbright Commission Michael Gill is scheduled to inaugurate the exhibition next Tuesday.

Anthrax monitoring panel meet held

BY A STAFF REPORTER

Kathmandu, Nov. 1: A meeting of the Anthrax Monitoring Committee chaired by the State Minister for Science and Technology Bhakta Bahadur Balayar constituted a working committee to remain alert about the outbreak of deadly disease and to manage for the treatment in case it appears in the country.

The working committee set up under the co-ordination of Science and Technology Secretary is represented by Royal Nepal Academy for Science and Technology Secretary, Director General of the Department of Postal Services, Director of Central Health Laboratory, Chief of Central Veterinary Disease Diagnosis Laboratory, Chief of National Forensic Science Laboratory, Deputy Inspector General of Police Rup Sagar Moktan and Director of Epidemology and Disease Control Directorate under the Department of Health Services.

This committee will prepare a directory to alert people to check anthrax and manage for the timely treatment in case the disease appears in the country, according to a press release issued by the Science and Technology Ministry.

The meeting has selected National Forensic Laboratory, Central Health Laboratory and Central Veterinary Disease Diagnosis Laboratory to check the potential cases of anthrax.

The Ministry confirmed that there were not any cases of anthrax in the country adding the concerned authorities were alert about its possible outbreak.

Afghanistan: Not always a battlefield

BY PAULA J. DOBRIANSKY

Kathmandu, Nov. 1: The current generation of young Afghans cannot remember a time when their country really worked. There was a time - a little over 20 years ago - when Afghanistan was a functioning state, a member of the world community. Afghanistan, while always poor and rugged, was home to a proud people who had aspirations and hopes for a better future. Afghans ran their own country, children went to school, people had enough to eat, and women were educated and employed.

Unfortunately it is now difficult to remember that functioning Afghanistan. The time before the Taliban - before the civil war, before the Soviet invasion - seems like another age. Yet, Afghans can and should find their way back to a normal society and functioning country.

Life in Afghanistan, even before the conflict, was not easy. It was among the ten or so poorest countries in the world. Natural resources were limited and subsistence farming constituted the main activity of the majority of Afghans. Infrastructure was under-developed. Improvement in the lives of most Afghans depended to a large extent on the activities of foreign relief and development agencies.

But Afghan society worked. Despite hardships, Afghans ran their country and raised their families. An educational system operated in most cities and towns, educating both boys and girls. Afghan universities produced a cadre of educated elites who provided the manpower for the government and for the private sector economy. Health care in hospitals was available in the cities, while in rural areas, more rudimentary healthcare was provided by government-trained nurses. Subsistence farming, coupled with foreign assistance - including from the U.S. Agency for International Development (USAID) - provided sufficient sustenance so that for the majority of Afghans the threat of famine was virtually non-existent.

Before chaos and destruction descended on Afghanistan, Afghan women had the freedom to take part in the life of their country. Educated urban women held positions in medicine, business, education, and the media. There were women working in nearly all government ministries. There were women judges and lawyers. A few women held elective political office. Prior to the Taliban takeover of Afghanistan women made up more than half of all students at Kabul University, 70 per cent of the nation's schoolteachers, half of all civilian government workers, and 40 per cent of the doctors in Kabul.

Political power in Afghanistan was exercised both by a national government and by traditional means: the central leadership in Kabul controlled national functions such as foreign policy and defense, provided resources for education, health care, and transportation. Provincial governors were appointed by the central government. In the countryside, where most Afghans lived, village and tribal elders ruled on issues of local concern; if an issue had wider impact, a group of such elders from a number of neighboring villages would gather to debate the problem and reach a resolution. The power of these elders stemmed not from the barrel of a gun, but from the prestige and lineage of the individual, and from his character and achievements. This informal, yet centuries-old means of wielding political power was accepted by the people, and recognized by the government.

Afghanistan once played a proper role on the world stage. Relations with neighboring states were normal. The United States maintained a large aid programme focused on agricultural development and health care. One of USAID's flagship efforts, the Helmand River irrigation project, brought irrigation to farms in southern Afghanistan.

Afghanistan can once again be a country that works, a functioning member of the world community. To put Afghanistan back together again, Afghans will have to regain control of their country's future. They will have to work together, with all Afghans who love their country, to build a future for themselves and their children. The world community will help, as it has helped with humanitarian aid over the last two decades. The Afghanistan of 25 years ago, now a distant memory, is a reminder of what is possible in the future. Afghans deserve a chance to reclaim and rebuild their nation. It is this Administration's key goal to help in this endeavor. (The author is U.S. Under Secretary of State for Global Affairs.)

Nepal-India trade talks
Dilly dallying further intensifies confusion

BY RAJKUMAR K.C

Kathmandu, Nov. 1: With only 37 days left for the Nepal-India Trade Treaty to be expired, the possibility of striking a deal to give a continuation to the 1996 Trade Treaty has virtually bugged down in the morass of confusion.

When the talks between the secretaries of the two nations held in New Delhi recently remained inconclusive, the joint secretary level talks to be held here from Saturday, according to officials, industrialists and economists 'will bear no fruit at all.'

Even officials at the Ministry of Industries, Commerce and Supplies do not see any significance of this talks owing to reluctance of India for tackling the problems.

At this juncture Indian Commerce Secretary Prabir Sen Gupta who is supposed to represent the team, is not participating owing to WTO Conference being held in Doha.

It has clearly shown what is the priority of India?

A highly placed source at the Ministry of Industry, Commerce and Supplies says that the negotiations at bureaucratic level is impossible. In fact India wants this matter to be resolved at political level, it says.

Dilly dallying attitude of India has a great meaning, says Prof. Guna Nidhi Sharma. ' The renewal of the 1996 Treaty is highly correlated with the Mahakali Treaty that took place in 1995.

Of course India is adopting liberalization in its economy and it is one of the WTO members too. On top of that India has often raised its voice priority to gear up regional economy. If it is so there should arise no question upon the renewal of the 1996 Trade Treaty.

Even the Confederation of Indian Industries (CII) has already approved the renewal of the treaty in its original form. CII – the counterpart of the Federation of the Nepalese Chambers of Commerce (FNCCI) which represents private sector in India has recommended its government to give continuity to the treaty.

Well, if the CII has recommended its government for the automatic renewal of the treaty, why is the Indian government playing a game of cat and mouse with its small neighbor?

The reason, according to Prof. Sharma is obvious that India does not Nepal's stability. 'Otherwise there arises no question of manipulation and dilly dallying,' he says.

Nepal's export to India is very insignificant. The total export from Nepal to India does not come even with a range of 0.1 per cent of India's total import too.

According to a report, non- of the 'alleged' exports such as – vegetable ghee, acrylic yarn, GI pipes, zinc oxide and copper wire exceeds the given limit which ranges from 0.5-3 per cent. Besides, the export items of Nepal also involve several manufacturing processes as well.

However, India is constantly pressing Nepal to put five of the above items within the surge net and wants to whittle down the export of these items into India.

As per the Article V-2 of the Nepal India Trade Treaty 1996- 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.

But Prof. Bishwambhar Pyakurel. who is closely watching the Nepal India trade activities takes present situation as a political problem rather than technical one.

According to the Article XII of the 1996 Trade Treaty, it shall remain in force up to December 5, 2001 and shall be automatically extended for further periods of five years at a time unless either of the parties gives to the other a written notice, three months in advance of its intention to terminate the treaty.

India had sent a letter in August this year with the intention of renewal of the treaty.

Ravi Bhkta Shrestha, President of the FNCCI strongly puts forth his view that there should arise no political interests on economic issues. 'Delay in negotiations will further intensify the uncertainty.'

However, industrialists and trade analysts fear that any alterations in the treaty would jeopardize the Nepalese economy. It is to be noted that after the treaty, Nepal's export have experienced a quantum jump. It has increased by almost 60 per cent during the year 1997-98. Similarly in 1999-2000, Nepal's export trade to India went up to Rs 22.61 billion.

In the meantime India's shares of Nepal's import trade also increased. Import from India crossed Rs 40.51 billion making a trade deficit with India to Rs 18.31 billion.

According to the Ministry of Industry Commerce and Supplies, the Indian delegation will be led a joint secretary at the Ministry of Commerce.

Massive search launched
Former MP among UML men kidnapped by Maoist insurgents

BY A STAFF REPORTER

Kathmandu, Nov. 1: Maoist insurgents have kidnapped former Member of Parliament of the CPN-UML Dilli Bahadur Mahat and three other UML’s local elected representatives from Garjyangkot Khallabada VDC of Jumla district on Wednesday night.

According to our Nepalgunj correspondent, the others kidnapped by the Maoists are Chairman of the Jumla District Development Committee Tirtha Bahadur Budha, DDC member Dhirendra Raj and VDC Chairman Govinda Adhikary.

Police DIG of the mid-Western region, Amar Singh Shah said in Nepalgunj that the police have launched a massive search for the former MP and others kidnapped by the Maoists.

Shah also said that the Maoists had tried to disrupt the police search team by firing at them near Tatopani of the district.

Meanwhile, Betini VDC of Nuwakot district has remained tense on the issue of the death of deputy chief of the Maoists’ local people’s government Bir Bahadur Tamang. Tamang was beaten to death on Sunday by the people of the local resistance group, who had become enraged with torment and tribulation of the Maoists.

Our Nuwakot correspondent says the Maoists have taken Tamang’s death as an issue of revenge. At their meeting in Thansing they said that they would avenge Tamang’s death. After the death the irate Maoists have also taken Tamang’s wife and children along with them.

Similarly, the Maoists have set fire to the Betini VDC office and have disconnected the only telephone line of the VDC.

Immediately after the incident on Sunday, a police team led by police inspector Krishna Kumar Mahat reached the village and has started patrolling the area. However, the setting fire to the VDC office has created tension in the village. Considering the volatile situation, another police team led by police DSP Bikram Singh Thapa has also reached the place. Meanwhile, it is learnt that an army helicopter was also seen flying to the area.

The District administration said all security measures have been taken to avert any untoward incident between the police and people on one side and the Maoists on the other.

In another incident in Nuwakot, the Maoists have severely beaten Jit Bahadur Ghale, secretary of Bageshwori village unit of the CPN-UML. Family sources said Ghale has been admitted to hospital for treatment. Meanwhile, about 50 youths of the village have stood up against the Maoists. They say that they would resist and counter the Maoists atrocities and any forceful activity. With the people standing up against them, the Maoists’ local chief has fled the village.

Meanwhile, VDC Chairman Madhu Lamsal said some other Maoists, including deputy chief and other members of the Maoists’ local government have pledged before the people that they would quit the Maoist movement and would lead independent lives.

Similarly, in Chandranigahapur of Rautahat, five Maoists insurgents have been seriously injured when a mass of people counterattacked the Maoists.

According to Area Police Office at Chandranigahapur, the armed Maoist rebels had tried to attack the house of Mahesh Karki, a local resident, on Tuesday night, but the people, tired of their terror, rose against them.

In the counterattack, Maoists’ team commander Ramesh Basnet has been seriously injured while four or five other injured could not be identified since they fled.

Likewise, local people of Sindureghari of Tumaria Mahioun VDC have thrashed the Maoists’ area commander Hari Sapkota for threatening them and creating terror in the village.

Local social worker Ajay Kumar Shah said that the people have now risen against the Maoists after the insurgents continued with their violent activities along with acts of terror even after the talks started between them and the government for the peaceful solution to the problem.

Uttam Karki, vice-president of the local Saraswati Youth Club, said the local people have been patrolling the area with the help of police. "We will no longer take the Maoists’ cruelty lying down. We are ready to fight them," Karki said.

Meanwhile, police inspector at the area police office at Chandranigahapur Ana Bahadur Pandey said that the police have been vigilant to prevent any untoward incident and to maintain peace and security situation in the area.

Likewise, the rebel group kidnapped CPN-UML Kalikot office secretary Surja Man Sahi, district member Dayaram Neupane, Melgudi VDC chairman Sak Bahadur Bam and party secretary of the same VDC Lokendra Bahadur Shahi on Oct. 27. their whereabouts are yet unknown.

The CPN-UML has also said that the fate of Humla DDC vice-chairman and CPN-UML national council member Chakra Bahadur Fadera, who was kidnapped by the Maoists on Oct. 14, is not known.

The party has strongly condemned the anarchic and terrorist activity and demanded that the rebels immediately release all the CPN-UML workers they have abducted and stop such activities.

Govt urged to close gaps with Maoists

Biratnagar, Nov. 1 (RSS): Former speaker and facilitator of the government-Maoist talks Damannath Dhungana has said that holding talks between the governmetn and Maoists is an achievement of civil society comprising journalists, intellectuals and human rights activists.

Dhungana was inaugurating a day-long seminar on the "responsibility of civil society for just and peace" organised under the joint auspices of Forum for Human Rights Protection and the Joint Forum for Protection of Human Rights eastern region here today.

The former speaker also spoke of the need for the government to correct shortcomings, if any, in the constitution keeping in mind the past 12 years during which no governments could win the confidence of people to settle differences between pro-constitutional and anti-constitutional forces.

Dhungana also urged the government to narrow down the distance with the Maoists by implementing points of the agreement reached with the Maoists in order to resolve the problem through talks.

Intellectual and former state minister Radha Prasad Ghimire observed that the government-Maoist talks should be successful for the sake of national integrity, corruption should be effectively checked and the spirit of the people's movement should be upheld.

Central vice chairman of the Nepal Intellectuals Council Dr Khagendra Acharya said the Maoist problem was born out of corruption, unethical actitivities and the tendency of leaders to stick to power, adding that both the government and Maoists should soften their stands to make the talks successful.

Politician Durga Subedi spoke of the need to reduce poverty, control corruption and refine the constitution as per necessity.

The function was chaired by chairman of the Joint Forum of Human Rights Protection eastern region Lalraj Subedi.

Earlier, a peace rally comprising human rights activists, journalists, social and political workers and members of the general public was taken out.

Two months' review
Marginal growth of monetary aggregates: NRB

BY STAFF REPORTER

Kathmandu, Nov. 1: The first two months of the fiscal year 2001/02 have been marked with a very marginal growth of monetary aggregates. Government expenditure also grew slowly due mainly to a decline in both the regular and development expenditures. In spite of an increase in revenue collection, resource mobilisation declined mainly due to a sharp fall in foreign cash grants and non-budgetary receipts net, thereby resulting in budgetary deficit.

The rate of inflation on point to point basis went up mainly due to a rise in the price of vegetables and fruits and sugar and related products, despite a decline in the prices of grains and cereals products as well as pulses under the food and beverages group.

In the external front, both exports and imports decline compared to a year earlier level. Trade deficit narrowed down further during the review period mainly as a result of decline in imports.

The foreign exchange holdings of the banking system increased substantially due to a surplus in the balance of payments emanating from the growth in net transfer income as well as a decline in the trade deficit. The foreign exchange reserve was sufficient to cover merchandise import of twelve months. In the money market, treasury bills rate remained at 3.78 per cent whereas the inter-bank rate stood at 2.62 per cent, according to press release of Nepal Rastra Bank.

During the first two months of the fiscal year 2001/02 broad money registered a growth of 0.4 per cent (Rs. 787 million) amounting to Rs 214600.5 million compared to a growth of 0.3 per cent (Rs 468.0 million) during the same period last year.

An increase in net foreign assest as well as net domestic assest is attributed to the growth in broad money.

Narrow money increased marginally by 0.4 per cent (Rs 102.6 million) during the review period compared to a decline of 1.8 per cent (Rs 1105.6 million) during the same period last year.

During the review period, total domestic credit of the banking sector increased by 0.1 per cent (Rs 148.3 million) as a result of an increase in the growth of credit flow to the government entreprises as well as to the private sector.

Such credit had declined by 0.6 per cent (Rs 924.7 million during the same period last year. The flow of bank credit to the private sector increased by 1.2 per cent (Rs 1476.3 million) during the review period as against an increase of 0.9 per cent (Rs 940.0 million during the same period last year, the press release says.

On the fiscal front, total government expenditure registered a slower growth of 9.7 per cent amounting to Rs 6253.5 million during the review period as against an increase of 26.0 per cent during the same period last year. Of the total government expenditure, regular expenditure declined by 4.3 per cent to Rs 3663.4 million, development expenditure by 11.0 per cent to Rs 761.9 million whereas freeze expenditure increased by 80.1 per cent to Rs 1829.2 million during the review period.

Despite a decline in both the regular and development expenditure, total government expenditure increased due mainly to a sharp rise in the freeze expenditure. In the previous year. Dashain express provided to the government employees during this period had pushed the regular expenditure up whereas such expense not being disbursed during the review period led to the decline in the regular expenditure compared to that in the previous year. The late release of the development expenditure as a consequence of delay in budget approval is attributed to the decline in development spending during the review period, the press release states.

Resource mobilisation in the review period declined by 1.1 per cent to Rs 6156.8 million in contrast to a growth of 26.9 per cent during the same period last year. Revenue collection, the major resource to finance the budget, stood as Rs 6194.7 million marking a 13.5 per cent growth compared to a lower growth of 9.9 per cent in the previous year.

However, a sharp decline in the receipts from foreign cash grants and non-budgetary income resulted in the lower resource mobilization and subsequently deficit of Rs 96.7 million.

To meet the deficit, the government, in addition to mobilising foreign cash loan worth Rs 741. 5 million, received Rs 18.6 million under the 'others' heading of the government account and subsequently there was a surplus of Rs 663.4 million in the central treasury during the review period.

The National Urban Consumer Price Index, on point to point basis recorded a rise of 4.0 per cent during the review period compared to an increase of 1.0 per cent during the same period last year.

Of the overall price index, price index of food and beverages group increased by 3.4 per cent as against a decline of 4.4 per cent in the preceding year.

Despite a sharp increase in the prices of vegetable and fruits, sugar and related products, oil and ghee, restaurant meals, meat, fish and eggs, beverages, spices, milk and milk products, the declining prices of grain and cereals products as well as that of pluses contributed for such a low price rise of food and beverages group. However, the price of non-food and services group increased only by 4.7 per cent during the review period as against a growth of 8.1 per cent in the previous year.

The rise in the price of non-food and services group was mainly due to the upward movement in the prices of housing, transport and communication, and medical and personal care. Region wise, the price index of Kathmandu valley, Hills and Terai increased by 3.8 per cent 4.7 per cent and 3.9 per cent respectively, the press release says.

On the external front, exports registered a decline of 5.1 per cent to Rs 8558.0 million in the review period in contrast to a growth of 38.0 per cent during the same period last year. During the review period in contrast to a growth of 38.0 per cent during the same period last year. During the review period, the growth of export to India decelerated to 24.9 per cent from 73.6 per cent in the previous year whereas that to the third countries declined by 29.8 per cent from 73.6 per cent in the previous year whereas that to the third countries declined by 29.8 percent as against a growth of 18.2 per cent during the same period last year. Export of jewellery to third countries increased whereas that of woolen carpet, readymade garments, pashmina, pulses and tanned skin exhibited a significant decline, the press release states.

During the review period, imports declined by 5.0 per cent to Rs 1660.7 million, as against a growth of 6.6 per cent during the same period last year. The import of cement, electrical equipments, medicine, chemical fertilizer, petroleum products M.S. bilet, M.S. wire rod and pesticides from India and petroleum products, betelnut, medical equipments, electrical equipments, telecommunication equipments, medicine, polythene granules, copper win and sheet, paper as well as silver from third countries increased compared to that of the previous year.

During the review period, in spite of a decline in both the exports and imports by a similar rate, trade deficit narrowed down by 4.8 per cent to Rs 8132.7 million owing to the larger base of imports than that of exports. In the previous year, the trade deficit had declined by 14.1 per cent. The export/import ratio which was 51.4 per cent in the previous year, remained similar as 51.3 per cent in the review period.

Based on the available annual balance of payments statistics for the preceding year 2000/01, the balance of payments remained favourable by Rs 5762.8 million. During the review period, in spite of a decline in net services income, current account deficit declined by 20.2 per cent to Rs 7154.9 million due mainly to a decrease in the deficit and an increase its current transfer receipts compared to that of the previous year.

However, a significant inflow of official capital net and miscellaneous capital helped the balance of payment to remain positive.

Based on the monetary statistics for the second month of the fiscal year 2001/02, the overall balance of payment recorded a surplus of Rs 373.8 million. Subsequently foreign exchange holdings of the banking system increased by 8.4 per cent to Rs 105185.6 million at mid September 2001. Of the total reserves 76.1 per cent was accounted for by convertible currencies.

In the share market capitalisation of the companies listed in the stock exchange squeezed to Rs. 37.05 billion at mid-September 2001 from Rs 43.96 billion in the previous month. Likewise, NEPSE share price index decreased from 322.15 in the previous month to 265.22 at mid-September 2001, it is said.