Resignation accepted

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KATHMANDU, Dec. 20: His Majesty the King has, in accordance with the Constitution of the Kingdom of Nepal l990, accepted the resignation tendered by Attorney General Prem Bahadur Bista from his post.

This is stated in a notice issued today by the Press Secretariat of His Majesty the King.

DPM chairs board meeting

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KATHMANDU, Dec. 20: Deputy Prime Minister and Minister for Agriculture and Cooperatives Badri Prasad Mandal chaired the 59th meeting of the National Dairy Development Board held in Lalitpur today.

The meeting approved a budget of Rs. 28.9 million for the fiscal year 2002/03. A decision was also reached to develop a criteria for making investment for setting up of milk processing factories at the dairy cooperatives institutions in Banke, Dang, Jhapa and Morang. Speaking on the occasion, Deputy Prime Minister Mandal expressed the view that dairy business in an agriculture-based country like ours should be developed as a cash crop and stressed the need to free the sector of politics in order provide the farmers with a just price and also increase dairy business.

Presenting the annual programme of the board, acting director of the board Pannadas Shrestha expressed confidence that it would help the board achieve its target.

PM for govt-private sector cooperation in carpet industry

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KATHMANDU, Dec. 20: Prime Minister Lokendra Bahadur Chand inaugurated the 12th general meeting of the Central Carpet Industries Association here today. Releasing a book, 'The Nepalese carpet', published by the association on the occasion, Prime Minister Chand presented different individuals with commendation letters for their contribution in the development of the carpet industry in the country.

Mentioning the impact of the slowdown in the carpet industry, the Prime Minister said the government and private sector together should work for tackling the problem. Highlighting the importance of the carpet industry, he said Nepalese carpets are popular world wide and help to make Nepal known in the world.

Carpets of better quality should be produced to increase the export to other countries, which in turn will help the national economy, he said. On the occasion, Assistant Minister for Culture, Tourism and Civil Aviation Ravi Bhakta Shrestha said as healthy business and sustainable development is the main target of the present government resolution of the problems faced by the private sector comes under its priority.

Acting president of Federation of Nepalese Chamber of Commerce and Industry (FNCCI) Binod Bahadur Shrestha, president of Nepal Chamber of Commerce Rajeshkaji Shrestha, association president AG Sherpa and other speakers also expressed their views on the existing law and policy and the steps to be taken by the government to revive the carpet industry.

Thapa conferred rank of honorary general in India

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KATHMANDU, Dec. 20: President of India Abdul Kalam Azad today conferred the rank of honorary general to chief of the Army Staff Pyarjung Thapa amidst a function held at the Rastrapati Bhavan in New Delhi on December 18.

Present on the occasion were the vice-president, Home Minister, other ministers, high ranking army officials and other officials of India and the Royal Nepalese ambassador to India.
After the function, president Kalam hosted a tea reception in honour of chief of the Army Staff Thapa.
General Thapa yesterday laid a wreath at the "Amar Jawan Jyoti" built to commemorate the brave Indian soldiers at India gate.

Also yesterday, a guard of honour was offered to chief of the Army Staff Thapa at the Indian Army Headquarters at "South Block." During the formal meeting between the Army Chief Thapa and Indian Defence Minister, Chiefs of the Armed Forces, Navy and Air Forces of India, it was stated that terrorism was common problem and not specific to any country and therefore there should be common approach to deal with it.

On the occasions, discussions were also held on resolving the problems between the two countries, joining the campaign against terrorism launched at the international level and mutual cooperation among the countries directly combating terrorism. Chief of the Army Staff Thapa yesterday formally called on Prime Minister of India Atal Behari Vajpayee.

A reception was hosted in honour of the chief of the Army Staff at the Royal Nepalese Embassy.
High ranking officials of the India army and other distinguished persons also presented on the occasion.

Role of Tamang community in culture appreciated

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KATHMANDU, Dec. 20: Prime Minister Lokendra Bahadur Chand said as Nepal is a multi-racial, multi-lingual, multi-religious and multi-cultured country uplifting of all the communities and languages will lead to the overall development of the country.

Inaugurating the first International Tamang Conference following Tamang traditions here today, Prime Minister Chand said Tamang is a rich and prosperous language and lauded the efforts made by the people of this community for the culture and civilisation of the country. mHe said that the Constitution of the Kingdom of Nepal guarantees equal rights for every nationality and language-speaking people and it is through Constitutional monarchy and multiparty democracy that overall development of the country is possible.

Pointing out the necessity for all party consensus for maintaining law and order in the country by putting an end to the ongoing violence, the Prime Minister appealed to all to rise above party interests and work in the interest of the people.  The government is always ready for dialogue, the Prime Minister noted. On the occasion Prime Minister Chand also released a book on the history of the Tamangs written by Ajitman Tamang.

Representatives from India, Hong Kong and Nepal are taking part in the three-day conference organised in order to discuss and exchange views on matters relating to the development of a common forum for the development of the Tamang community. Various Tamang Thanka, food, costume, ornaments, films and cultural programme will be presented at the conference which will also develop a project plan for socio-economic, cultural, religious and social development of the Tamang community, it is stated.

Chand urges youths to work for peace

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KAVREPALANCHOWK, Dec. 20: Prime Minister Lokendra Bahadur Chand has said that since all round development is not possible without peace, all the youths should work for peace. Inaugurating the 29th national general convention of Nepal Jaycees at Banepa today, the Prime Minister said that the youth manpower is the backbone of the country and that is why youths should bring out the strength inherent in themselves and give out a clarion call for peace. He also said that all youths should be faithful to morality to realize the notion that governance should be not of individuals but of the law.

The Prime Minister also awarded Rs 5,000 each and gold medals to youths making invaluable contributions in various fields this year. Those awarded were Yuvaraj Sangraula, Laxmi Shrestha, Suresh Pyakurel, Pabitra Gurung, Sitaram Hachethu and Dr Chiranjibi Nepali. Chand also launched a book, 'The legends of Nepal', written by historian Gyankazi Manandhar, and called on youths to adhere to high ideals and show respect for god as desired by the country.

The Jaycees General Convention participated in by l,700 representatives and observers will last for three days.It will elect a new leadership for the coming year.The Nepal Jaycees was started in l970 under the chairmanship of Dr Bhesh Bahadur Thapa. The Jaycees movement is inspired by the ideals of world peace and fraternity and aims to develop personality and leadership.Also speaking at the function, general convention central convernor Shanti Raj Kayastha called for the embracing of the rule of law and discouraging of individualistic tendencies.Nepal Jaycees National chairman Prakash KC was on the chair.

Minister for Industry, Commerce and Supplies Mahesh Lal Pradhan was also present on the occasion.

'India for politically stable Nepal'

By A Staff Reporter

KATHMANDU, Dec. 20: Indian envoy to Nepal Shyam Saran today said a politically stable and economically prosperous Nepal was in the best interest of India itself.

"And India believes political stability and economic recovery in Nepal lies in the adherence to the twin pillars of constitutional monarchy and multi-party democracy," he said at a Face-to-Face programme organised by the Reporter's Club. He condemned the indiscriminate and destructive violence that has been unleashed on the Nepalese by the Maoists. "We condemn the attempts by these elements to hold hostage the future of the younger generation by disrupting their education".

As to why Maoists cadres, including their leaders, were being sheltered in India, Saran said that the long open border between the two countries may have made it possible for them to find refuge.
But, looking from their perspective, Saran said, "We also have reports of the MCC (Maoist Coordination Council) and the PWG (People's War Group) cadres from India training in camps in the mid-western hills of Nepal." They can be apprehended only on the basis of better information exchange and intelligence co-operation, he said. He also informed that the Indian Government was working with HMG to further promote co-operation in this regard.

He added that the Indian government had extended material support and training to the Nepalese security forces, including the Royal Nepalese Army to meet the Maoists' challenge.
Answering a query, Saran said that as the Maoist problem was Nepal's problem, his country did not want to interfere in the matter. "As the people and the Government of Nepal are capable of resolving the existing Maoist problem, India does not want to indulge in it." He also ruled out the possibility of joint-military action against terrorism.

He added that mutual trust, confidence and co-operation could help defuse any problem existing between the two countries. To another query, Saran said that India did not want to involve in the Bhutanese refugee issue also as it was a "bilateral issue" between Nepal and Bhutan. And India's stance is that it should be resolved from a humanitarian point of view, he said. He, however, did not fail to blame Pakistan for postponing the 12th SAARC summit, a day after Pakistani envoy at a forum said it was not to blame for it. "The future of this region lies on regional co-operation and mutual understanding," he said.

He said any bilateral problem between Nepal and India would be resolved through bilateral talks. As there are unlimited possibilities of expanding trade and commerce as well as investment in Nepal from India, the government of Nepal should do more in this regard, he said. While these two countries are historically, culturally and traditionally bound together, the media from both the countries should try to promote this relation, he added.

ISACPA meet discusses SAARC poverty issue

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KATHMANDU, Dec. 20: The fifth meeting of the Independent South Asian Commission on Poverty Alleviation (ISACPA) was held at the SAARC secretariat here today. The meeting which was inaugurated by SAARC Secretary-General Q.A.M.A. Rahim was chaired by Dr. Kamal Uddin Siddiqui, the co-convenor of the commission.

Representatives of all the seven member countries of the SAARC attended the meeting. Vice chairman of the National Planning Commission Dr. Shankar Sharma and Prof. Dr Bishambhar Pyakurel represented Nepal at the meeting.Before sitting the working session of the meeting, members of the commission led by its co-convenor called on the convenor of the commission and former prime minister Krishna Prasad Bhattarai, according to a press release of the SAARC secretariat.

On the occasion, Dr. Siddiqui briefed Bhattarai about the progress made so far in the preparation of the report and informed him that the draft report could be finalised during the fifth meeting. Convenor of the commission, Bhattarai appreciated the crucial role being played by the co-convenor in steering the work of the commission and finalising the report. SAARC Secretary General Rahim was also present on the occasion.Also today, the members of the commission led by its co-convenor Dr Kamal Uddin Siddiqui called on Prime Minister Lokendra Bahadur Chand at his office in Singha Durbar.

On the occasion, the co-convenor informed Prime Minister Chand about the work done so far in finalizing the report of the commission. Prime Minister Chand mentioned that the commission was doing a very important work during Nepal's chairmanship of the SAARC.He also briefed the commissioners about the government's initiatives to tackle poverty in Nepal.The secretary general of the SAARC was also present during the meeting.

The fifth meeting of the commission discussed the draft of the final report and it is expected that very soon the report would be finalised and ready for submission to the twelfth SAARC summit to be held in Islamabad in 2003.

Defence Ministry refutes news report in Kantipur

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KATHMANDU, Dec. 20: A news item published in Kantipur and some other dailies that a terrorist named Divakar Adhikari was detained illegally, he was tortured physically and mentally while in confinement and was forcibly alleged to be a Maoist is incorrect, the Defence Ministry has stated.
In a press release issued here today, the Defence Ministry has stated that Divakar Adhikari of Kathmandu district Sanglekhola VDC ward No. 9 was taken into custody by the security forces in December last year on the basis of evidence of his involvement in terrorist activities and in accordance with the law and carried out further investigation.

During the course of investigation, it was proved that he was a member of revolutionary students union and involved in various terrorist activities, and therefore he was sent to the police office at Hanumandhoka along with evidences two days later for necessary action.

The security forces had detained him in accordance with the prevailing law to ensure law and order in the country and he was not tortured in any way during his detention. Therefore, the unsubstantiated news item having negative impact on the image of the army has been denied, it has been mentioned in the release.

11 rebels killed in operation

By A Staff Reporter

KATHMANDU, Dec. 20: Eleven Maoist terrorists were killed in operations in Myagdi, Bardiya, Dadeldhura and Kanchanpur, according to the Defence Ministry.

The terrorists were killed when they launched attacks on the security forces on search operations. Security forces have recovered .303 rifles, 16 guns of different types, pistols, bullets for various guns, weapon fragments and accessories, combat dresses, ambush apparatus and granades from the sites of clashes. Socket bombs, medicines, explosives and other logistics used by the terrorists, said a statement issued by the Defence Ministry Friday.

The security forces on Friday handed over gold, silver and currency notes seized from the terrorists to Nepal Rashtra Bank. The items include 8 kg and 93 grams of gold, 296 kg silver, Nepalese currency Rs. 1,294,943 and Indian currency Rs. 2,220. According to the Defence Ministry, the security forces examined and treated 66 patients at a mobile health camp set up at Gorkha on Thursday. Meanwhile, the Defence Ministry has rebutted the media reports that said a person was illegally detained and tortured on fabricated charge of being involved in Maoist activities.

Diwakar Adhikari, a resident of Sanglekhola VDC-9 Kathmandu was taken into control and interrogated by the security last year on the basis of ample evidence. Evidence showed that he was the member of the student wing of the terrorist group and had been involved in different terrorist activities. Adhikari was sent to the District Police Office Hanumandhoka for further actions. While under custody of the army, he was not tortured, says the Defence Ministry statement refuting the news reports.

Hearings on Wagle's case begins

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KATHMANDU, Dec. 20: Hearings on imprisonment for judicial investigation against former minister Chiranjibi Wagle began at the Special Court Kathmandu today. The Commission for Investigation of Abuse of Authority (CIAA) had filed a corruption case against the former minister on Wednesday.

Pleading on behalf of His Majesty's Government and the CIAA, co-attorneys Yubaraj Subedi and Prem Raj Karki said that the entire state has been victimised by the corruption knowingly committed by a person in high post of the state.

They demanded that the former minister be kept under detention until the case is finalised. The hearing would continue on Monday also. Meanwhile, the CIAA interrogated managing director of the Kantipur Publications Kailash Sirohiya regarding the permission to operate Kantipur Television.

WB okays credit for banking reform

By A Staff Reporter

KATHMANDU, Dec 20: Endorsing Nepal's efforts at reforming its ailing banking sector, the World Bank Board of Executive Directors has approved a US $ 16 million credit in support of a Financial Sector Technical Assistance Project, according to the World Bank Kathmandu office today. The current credit of US $ 16 million from the International Development Association (IDA), the concessionary lending arm of the World Bank Group, is part of a financing plan totalling US$30.1 million. The Department for International Development (DFID) of the United Kingdom will finance US$10 million. His Majesty's Government will fund US $4.1 million.

Discussing the progress report of the Bank's Country Assistance Strategy (CAS) for Nepal Thursday, the World Bank Board of Executive Directors in Washington agreed that availability of resources would be parallel to Nepal's performance on reforms. The CAS progress report has reviewed development in Nepal since the Bank Group last formulated a Country Assistance Strategy in late 1998. The 1998 CAS highlighted poor governance as the central problem facing Nepal's development. Slow progress in addressing this fundamental challenge resulted in a sharp decline in the Bank's lending to Nepal, the WB press statement read.

Progress in the implementation of a wide range of reforms over the past 12 months could earn Nepal a significant increase in the availability of WB resources for the country's development. "In 1998, the World Bank made it clear that promises of reform were no longer sufficient," said Ken Ohashi, the WB Country Director for Nepal. "Experience has taught us that until reforms are actually implemented, it is very difficult to be sure that reforms will happen. So the Bank decided that it should judge reform by action, not by promises."

Applying the same principle, the report has viewed that reform efforts in Nepal have accelerated over the last 12 months and concludes that the Bank Group's lending programme for Nepal would now be upgraded from the "low case: (US $ 0-50 million annually in new lending) to the "base case" (about US $ 100million or more annually, depending on sustained progress on reforms). The report states that Nepal continues to face a serious security challenge, political turmoil and significant difficulties in implementing its development agenda. Nonetheless, the report notes that amidst all the turbulence, a wide range of reforms have been under implementation. "It is obvious that there are serious security concerns and political uncertainty," said Ohashi, adding "but when one looks past them, one sees an impressive record of reforms sustained by successive governments over the last year or so."

The report says notable progress has been made in developing the country's Poverty Reduction Strategy (PRS) concurrently with the Tenth Five-Year Plan and in implementing reforms in the financial sector, the fight against corruption, public expenditures, infrastructure regulatory environment and with the development and implementation of the Immediate Action Plan (IAP). The IAP - announced by His Majesty's Government of Nepal in June 2002 - aims at effective management of public resources, prioritisation of development programmes, enhancement of accountability and more effective delivery of public services. The report notes that the IAP is being implemented with an uncommon vigor and seriousness.

A new Country Assistance Strategy (CAS) will be developed next year in alignment with Nepal's Poverty Reduction Strategy. Until then the Bank Group's assistance will be guided by continued emphasis on greater decentralization to bring more resources to grassroots levels, reforms at the central level of government, linking overall lending levels to progress in improving government effectiveness and donor coordination. The report places greater emphasis on results, facilitation of change, donor coordination and partnership building. The financial sector Technical Assistance Credit approved by the Board Thursday is envisaged as the first in a sequence of support for Nepal's overall financial sector reform programme, aimed at creating a prudently operated and commercially viable banking system that is overseen by a modern, effective and technically competent central bank.

At this stage, according to the WB, the programme will focus on three broad objectives over a four-year period. These are helping to restructure and re-engineer Nepal Rastra Bank so that it can perform its key central banking functions more effectively; initiating commercial banking reform in the two large ailing commercial banks that dominate the sector (Rastriya Banijya Bank and Nepal Bank Ltd.) and better financial news reporting and better training for staff in the financial institutions.
Bad banking practices hurt the poor the most, said Simon Bell, the Bank's Team Leader for the project. He said, "While the approach this project is taking may appear highly technical, in fact, it strikes at the heart of poor governance highlighted in the CAS. These funds belong to poor, hard working depositors. When banks make too many of these bad loans, the government would be expected to bail these banks out. A cash strapped government can do so only by forcing the poor to pay more taxes. The poor not only lose their savings, but on top of that are forced to pay for the rich and powerful who stole their money in the place."

Japanese envoy, Sharma discuss tourism

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KATHMANDU, Dec. 20: Japanese Ambassador Zenji Kaminaga called on Minister for Culture, Tourism and Civil Aviation Kuber Prasad Sharma at the latter's office today. Matters relating to Nepal's tourism and civil aviation sector, and culture and the mutual relationship between the two countries were discussed during the meeting.

On the occasion, Minister Sharma made a special request for expansion of Nepal's air services to Japan which remains an important tourist nation for the country. Ambassador Kaminaga assured for cooperation in publicizing Nepal and other related issues in Japan.

Likewise, resident representative of the Asian Development Bank (ADB) Dr Richard Vokes also called on Minister Sharma and discussed matters relating to ADB-funded projects in tourism infrastructure and ecological tourism. Also discussed were issues relating to increasing effectiveness of the Nepal's air service security and developing the civil aviation authority into a professional organisation.

'Govt to find out root cause of Maoist issue'

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LALITPUR, Dec. 20: Minister for Women, Children and Social Welfare Gore Bahadur Khapangi has said it was surprising that even when the present government had opened the door for dialogue to restore peace in the country, there had been no authoritative response from the Maoists. Minister Khapangi who is also the general secretary of the National People's Liberation Party expressed this view at a talk programme on "Present situation of the country and ways of resolving the Maoists issue" organised by the party here today.

Expressing the view that then heads of governments during the last twelve years should resort to self-criticism and apologise for the mistakes committed during the last twelve years, he said that the present government would find out the root cause of Maoists and resolve it. He said that if the Maoists shun their violent activities, their participation in the elections would be ensured and the present government was committed to conduct free and fair elections. At the programme, Minister for Culture, Tourism and Civil Aviation and president of Greenery Party Nepal Kuber Sharma said that communist regime will not be set up in the country by the violence unleashed by the Maoists and emphasised that they should Shun their wrong activities.

Stating the country had to bear the economic crisis because of the mis-governance by the big parties during the last twelve years, he said that the development of the country did not happen due to mis-governance, corruption and lack of change in leadership of the big parties. President of the Rastriya Prajatantra Party (Rastrabadi) Rajeshwar Devkota, president of Democratic Forum Nepal and former minister Dhundi Raj Shastri, independent intellectual Hiranya Lal Shrestha, president of Nepali Janata Party Rastriya Sambridhabad Dr. Bishnu Pokharel and a host of other expressed their views at the programme chaired by party president M.S. Thapa.