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NEPAL-CHINA RELATIONS |
A Great Leap Forward In the history of 45 years of diplomatic relations, Nepal and China have never had any serious disputes compared to many ups and downs witnessed in Nepal's relations with her southern neighbor. Over the years, China has become more accessible to Nepal. Such is the situation that Nepal benefits a lot by using the new highway on the Chinese side that runs parallel to Nepal's northern border. The highway can become the cheapest means to supply foodstuffs and other materials to remote northern regions in Nepal. As China is planning to build a super highway to link Tibetan capital Lhasa with the port city of Shanghai, the northern neighbor could one day provide another alternative transit link By KESHAB POUDEL Just two weeks after Nepal and China celebrated the 45th anniversary of the establishment of their diplomatic relations, a convoy of Nepalese trucks loaded with rice left Kodari, border point of China, on August 13 on their way to Lomanthang (Mustang) in the western Nepal via the Chinese road in Tibet.
As the road built in southern part of Tibet runs parallel to the bordering northern remote regions of Nepal, it can greatly help Nepal supply essential commodities to its north-western remote regions much quicker. In his recent visit to China, Nepalese foreign minister Chakra Prasad Bastola requested the Chinese government to allow Nepal to use the road to transport food grains and other essential materials uniterruptedly for a longer period. "Chinese officials have shown positive response to the request," said Chakra Prasad Bastola, talking to journalists at Tribhuwan International Airport (TIA), upon his return. As trade volume between the two countries is rising, Nepal and China have agreed to open two more transit points in Kimathanka of Sankhuwasabha and Liji of Mustang to boost the trade relations. Currently four border points Yari, Timureghadi, Tatopani and Olangchunggola are in operation. According to a study, there are more than 200 points that can be operated in the 1440 km long border between Nepal and China. During his five day visit, foreign minister Bastola succeeded at convincing the Chinese officials in opening more transit points. This is the first time in four decades when the two countries have realized the importance to open another alternative road from Nepal to Tibet. Kathmandu-Kodari road, built with an aim to link Kathmandu to Lhasa in 1960, has greatly boosted trade between the two countries. China has further allowed Nepalese vehicles to carry food stuffs to northern districts through the highway. "We are planning to send more food stuffs to Humla, Mustang and Dolpa via Kodari and through the Tibetan highway," said Khil Bahadur Shrestha, deputy general manager of Nepal Food Corporation (NFC). "By using the Chinese road, we can save large amount of resources which we would otherwise have to use to airlift the supplies." When the two countries signed the agreement on August 1, 1955 to establish formal diplomatic relations, nobody had imagined that one day Nepal would use the Chinese road to transport supplies to its remote northern parts. The road which was once considered only of strategic importance has now become a vital commercial link. Kodari highway replaced the old mule track through which Nepal supplied food stuffs to northern Himalayan districts. Besides, the road also links different Chinese cities. Forty-five years ago, Nepal faced similar situation in the south also when it had to use Indian railway service of bordering India to travel from one place in Nepal to another inside the kingdom. That Kodari highway would one day provide access to reach the foothills of Himalayas was just a dream. Compared to the road and railway lines along the southern border, the northern road, though in difficult terrain, is said to be much dependable to carry goods. According to the NFC, it can save up to Rs 800,000 rupees annually in transport fare to supply 500 quintals of rice to Lomanthang through Kodari highway. NFC has already handed over 138 quintals of rice to concerned transporters. Earlier, NFC used to spend Rs. 3000 as airfare to transport each quintal of rice. Now it can transport the same quantity of rice for just Rs. 1,900 via road. "We are considering to send the rice and other essential commodities to other remote Himalayan districts like Dolpa and Humla though the Tibetan side," said Khil Bahadur Shrestha. "We can save millions of rupees in transportation by using the Tibetan roads." The road to Lhasa is not supplementary to transport goods to Nepal. As China is planning to construct four-lane free way linking Lhasa to the port city of Shanghai, Nepal may have another alternative sea route in the days to come. Following famous saying of late Chinese leader Deng Xiaoping: "To get rich, first build a road" China is now planning to connect the villages to cities and cities to coast to develop the south-western parts of China including Tibetan Autonomous Region. According to the Time magazine's August 21-29 (2000) issue, Chinese government is planning to build 35,000 km of new roads in the west of China over the next decade, at the cost of hundreds of billions of dollars. Already in the Sichuan capital of Chengdu, next to Tibet, four new express-ways have joined older ones that connected the city of Chongquing, including one section of a planned Lhasa-to-Shanghai superhighway. When the highway is completed, Lhasa will be linked to Shanghai. China is launching a grand scheme to develop its western states including Tibet. From railway to roads, Tibet autonomous region will be linked to eastern parts of China. "China will also build a rail link to Lhasa if economic development permits us," said Chinese ambassador Zeng Xuyong. Although Nepal is so close to Tibet, the Nepalese officials do not think Lhasa-Shanghai link can mitigate Nepal's India-locked situation. "There is a highway, of course, which links the Tibetan plateau with the plains of Ganga through Kathmandu. However, as the route is roundabout, Nepal's terai has not been able to utilize it fully to supply its surplus agricultural products to Tibet. A more direct road, planned in 1960, was shelved because of Indian misgivings that such a road would mean direct Chinese military access to the Ganga plains," said Kanak Mani Dixit, editor of Himal South Asia, in its June 1998 issue. "Chinese lack of formal recognition of Sikkim's incorporation into India is said to be stopping the border between Lhasa and Sikkim being opened. When that happens, the trade conduit from Tibet to the sea will open, and Nepal which has been the historical custodian of trade with Tibet will be left out in the cold," said Dixit. China has always shown great concern for Nepal's development. "China will continue to have close relations with Pakistan and will have a benign but positive relations towards Nepal and to a limited extent with Bhutan," said J.N. Dixit, former Indian foreign secretary in Himal South Asia, June 1998. "India's own relationship with China will remain complex and tenuous for some time to come," added J. N. Dixit. China has made continuous efforts quietly to link Nepal with the silk road. Without the planning of Nepal government, many border points of Nepal have access to roads in China. "One can imagine the benefits within a decade when the silk road will be linked to the sea. No geographical barrier can stop Nepal from taking the advantage of that kind of development. It is beyond anybody to deprive Nepal from that prosperity," said a China specialist. The road which passes through north of Nepalese border is said to have links with Burma on east and Pakistan on the west. "When I went to Mansarovar, I found the road is going to be commercially viable. It is like a highway," said former foreign minister Shailendra Kumar Upadhyaya. Himalaya is no more a barrier for trade. Compared to the southern border where no single economically viable and convenient highways is available across the border, China is building highways that could be beneficial to Nepal. Had Dharan-Arun highway been completed, Nepal could have easier access to the roads in China. The Kimathanka is said to be just 20 km from the proposed Arun III project. Chinese policy towards Nepal has been to reduce Indian dominance in Nepalese economy. China's cooperation in the past focused at reducing Nepal's over dependence on India. Till now Nepal is largely dependent upon India but the situation is gradually changing. Within the next one decade, China is supposed to become the world economic power and Nepal's diversification of trade through the Lhasa-Shanghai route would have the potentials of reducing her economic dependence on India. "Earlier Himalayas proved to be the most formidable obstacle for any substantial increase in trade between Nepal and China. Now the situation is changing as China has built strategic road along the northern border," said Upadhyaya. Kathmandu-Kodari-Lhasa road also served strategic and political objectives but it was never explicitly highlighted by China. Although Chinese role in Nepal has never seemed to be presumptons Nepal's strategic importance to China can never be minimised. "The issues related to Tibet are, of course, major factors affecting China's relations with Nepal. Beijing government remains concerned about neighboring lands being used as a base for separatist activities," said J. N. Dixit. Nepal has always remained strategically important to China and will remain so. Traditionally, the Chinese believed in the palm and finger theory. According to the theory, Tibet is the palm and Nepal, Sikkim, Bhutan, Laddkh and Nalhula Pass are the fingers. The old imperial doctrine existed till Mao ruled China. During the Manchu Dynasty, the theory was very popular. China always been oversensitive about control over Tibet. This reality is well understood by others. Strategically, Nepal occupies very important place for the stability of Tibet. Nepal's political stability and economic prosperity, therefore, is also important. "We want to see Nepal as a stable and prosperous nation," said Xuyong, Chinese ambassador to Nepal (see box). China always supports the independent and self-sustaining economy of Nepal. Even countries like Japan seem to be serious about Nepalese economy. China also expressed sufficient interest to promote Nepal. India's interest in Nepal is, however, to make it ever more dependant on it. If Nepal has a self-sustaining economy, it can have independent maneouvring between India and China. The border between Nepal and China has remained quiet and calm but the have been generating serious concerns activities of Free Tibet activists. After the opening of Kodari highway, India exhibited misgivings about the route. According to Indian strategists, the road could be used for the movement of military equipments used in mountain warfare. China supported Nepal to withstand the economic domination of India after the Sino-India war of 1962. "The type of projects that China undertook in Nepal reveals the implicit motive of China to offset Indian influence. It offered to construct such industries like cotton, textiles, leather and shoe to produce things which Nepal had traditionally been importing from India," has written Dr. T.R. Ghoble in his book China-Nepal Relations and India published in 1986. Chinese aid programs since 1963 display a steady growth. In 1969 China became the second largest donor to Nepal next to India. Late Chinese premier Zhau Enlai in 1957 pointed out: "National economic development was an essential means of safeguarding full national independence. China would be willing to aid Nepal within its capacities." The statement implied that as long as Nepal was economically dependent on India, it was virtually not enjoying independent status. Kathmandu, therefore, should diversify its policy in order to preserve its independence. "But it was clear that China had entered into competition with India in Nepal and it would be difficult for India to steer Sino-Nepalese relations in the same assertive manner as it did in the earlier phase," writes Dr. Ghoble. The history of Nepal-China relations is a history of progressive development with minor intervening irritants. China started its relations with Nepal from virtually a scratch and with odds heavily against it. China-Nepal relations started on a low key as it was established with the consent of India. "China, contrary to its ideological predisposition, has been supporting a monarchy and has been refraining from giving open support to local communist parties," said Dr. Ghoble. "Obviously China did not promote the objective of spreading communism in Nepal." Experts argue China is suspicious that India and other western powers might use Nepal to promote the hostile activities in Tibet. One of the major features of Sino-Nepal relations after 1961 is that there have been no major disputes, only some minor incidents between. Chronology of Nepal-China Relations - August 1, 1955 establishment of diplomatic relations between the two countries. - September 20, 1956 agreement on trade relations - October 7, 1956 agreement on economic aid - March 21, 1960 border agreement - March 28, 1960 Treaty of Peace and Friendship - October 5, 1961 boundary treaty - October 15, 1961 agreement on construction of Kathmandu-Kodari Road Project - January 13, 1963 protocol of Construction of the Kathmandu-Lhasa highway Roads Built With Chinese Assistance Bhaktapur-Kodari Industry Built With Chinese Assistance Harisiddhi Brick and Tile Factory
(privatized) Irrigation and Hydropower Project - Sunkoshi - Pokhara Seti Irrigation and Power - Kamala Irrigation (withdrawn) "Future Relations Between Nepal And China Will Develop And Prosper" — Zeng Xuyong
Chinese Ambassador to Nepal Zeng Xuyong has been here for nearly two years. As Nepal and China celebrate 45 years of establishment of their diplomatic relationship, Xuyong talked to Radio Sagarmatha about the state of relationship between the two neighbors. Excerpts: On History Of Bilateral Relations : On Trade And Investment : On Future Potential : "Chinese Are Very Sympathetic To Nepal" - Chakra Prasad Bastola
Foreign Minister CHAKRA PRASAD BASTOLA is one of the eloquent politicians in Nepali Congress. Bastola was recently in China on an official visit. Bastola spoke to KESHAB POUDEL at his office on Monday about the relations between Nepal and China. Excerpts: What are the highlights of your recent visit to People's Republic of China? In fact, I was invited on the occasion of 45th anniversary of establishment of Nepal-China relations. As such I didn't have any pre-set agenda. We were not talking on particular issues. We talked on the entire gamut of our bilateral relations. Moreover I had not gone there to sign any agreement but one did come up on technical and economic assistance. Chinese government agreed to provide grant assistance worth 50 million Yuan. We talked on all the issues including bilateral, regional as well as international. I told them that things have changed locally, regionally and nationally so we should start looking at our relations in future. We have to look at the possibilities in this light. That was the basic theme of my visit. China is now talking about the market economy and they say that they would be continuing their grants and help to Nepal according to their capability. But there could be other areas also like commercial loans and business participation and so on. I said that the trade between the two countries is not favorable to Nepal. I told them clearly that I came here not just to ask for grant but to ask the market for Nepalese products. The Chinese agreed to work out proper solution. China has built the road parallel to our northern border. How can Nepal get benefit from that? We are using it in someway but we want to use it without interruption. We have to work out a treaty to be signed with Tibetan region. During the signing of that treaty we want to include all our concerns. So that the transit rights should not be temporary. It could be institutionalized. We are interested on the development of our northern region so for that we did ask for opening of new points. On the Chinese side they agreed on principle and said the matter would be considered. Nepal Food Corporation (NFC) has already started to use the Chinese road to transport food to Mustang, is it a temporary arrangement, then? Yes, the present arrangement is temporary. When we sign the treaty with Tibet which is pending, we want to include all the matters. It is said that China is keen to develop the alternative road to Kodari. Can you explain which is that? They are not saying that. Chinese are saying that there should be viable and dependable road. According to the Chinese officials, the present Kodari road is not good beyond Khasa. They are saying that they should look for alternative. My impression is that they think one road and one alternative is necessary to expand the trade. The Chinese are yet to finalize whether Kodari can be improved or another alternative is essential. Are Chinese really going to support Nepal to build alternative road? They were very serious on trade when I mentioned the trade imbalance between the two countries. You need to have a good road to bridge the trade gap between the two countries. For trade, you need road. They may come up with the proposal for another alternative road. What would be the response of your government to the Chinese proposal? Of course, we have to create proper situation to expand the trade. If the road is required, we must build the road. Nepal needs more infrastructures to enhance its trade. We seek support from friendly countries to build infrastructures. Tourism also came as a big issue during the talk. Chinese are developing their western sector of Tibet for tourism. So, we need to have alternative development on our side. On the whole, my feeling is that the possibility is there. We are now in a position to go for specific issues and we have a very good option in the tourism sector. It is up to the Tourism Ministry to go forward. The issue of expanding Air Service Agreement also came up. I also asked for other destinations besides Shanghai. In terms of trade, China is going in a big way and Nepal has to get benefit from that. We have to find out ways and means to reduce the trade deficit with China. If we export more goods to China, we will benefit. At that time we will not need any kind of grant from China. It is said that China is building a railway network from Lhasa to Shanghai. Can that network be of use to Nepal? I, too, had heard about it. But we did not discuss it so I am not in a position to shed light on that. What did the Chinese think about the postponement of SAARC summit? We did not discuss that issue. How do you assess the Chinese viewpoint regarding Nepal? Chinese are very sympathetic to Nepal. They appreciate our role and contribution particularly in the issues of human rights when Nepal supported them in Geneva. They are satisfied with Nepal's policy regarding Tibet. It is widely reported that China is much concerned about security issue. Did they raise this issue during your visit? In fact, I did try to bring the issue before them but they did not raise it. Chinese are quite satisfied with the foreign policy of Nepal. They have appreciated our stand on Tibet and Taiwan. They repeatedly appreciated our one China policy. |
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