NEWS NOTES (Spotlight Weelky)

China Reiterates Support For Nepal

PM Deuba

Chinese Foreign Minister Tang Jiaxuan has reiterated his government's support for the measures, including the state of emergency, taken by the Nepalese government to maintain peace and stability in the country. According to the Foreign Ministry, Minister Tang extended his support during a telephone conversation with Prime Minister Sher Bahadur Deuba, who also holds the foreign affairs portfolio, Saturday morning. Minister Tang made it clear that neither the Chinese Communist Party nor the any entity of the Chinese government had any links with the terrorists of Nepal. Prime Minister Deuba informed Minister Tang about the compelling reasons leading to the declaration of the state of emergency despite sincere efforts of the government to resolve the problem through peaceful negotiations. Rajdhani daily reported that the Chinese minister was especially worried about the use of the word 'Mao' by the CPN (Maoist) of Nepal. The Nepalese government has declared the Maoists as terrorists. Leading dailies report Dec. 9.

`Nepal For Early Completion Of SAFTA'

Prime Minister Sher Bahadur Deuba has called for intensified efforts to give final shape to the South Asia Free Trade Area (SAFTA). Addressing a function held here to mark the SAARC Charter Day Saturday, Premier Deuba said Nepal would like to deepen and accelerate regional economic cooperation. The prime minister said that during the 11th SAARC summit, due to be held in Kathmandu early next month, a review will be made to consolidate the gains made so far. He added that poverty alleviation would continue to remain a priority area. The premier said two conventions, on combating the trafficking of women and children for prostitution and on the promotion of child welfare in South Asia, will be signed during the Kathmandu summit. Leading dailies report Dec. 9.

Nepal Bandh Largely Peaceful

The Nepal Bandh (nationwide shutdown strike) called by the underground Maoists passed off largely peacefully Friday. An unprecedented heavy security was deployed in the capital valley. Army personnel could be seen manning the streets with small tanks. Armed soldiers were also patrolling and checking vehicles and passengers. Most of the shops remained closed in Kathmandu out of fear of violence, though no untoward incident took place. RSS news agency quoted Home Ministry spokesman Gopendra Bahadur Panday as saying that with the security personnel further activated, no untoward incident could take place during the strike. Meanwhile, reports from the western town of Pokhara said the Maoists killed two unarmed policemen in an attack at Dhampus village in Kaski district Thursday night. Three other policemen escaped the attacks. The Defense Ministry said Thursday that Royal Nepal Army personnel arrested 30 suspected Maoist terrorists from seven districts, including four from Bhaktapur in Kathmandu valley. Compiled from reports Dec. 8.

Operation To Continue: Gupta

Gupta

Minister for Information and Communications Jaya Prakash Prasad Gupta has said the military operations against the Maoists are continuing successfully. Addressing a regular press briefing at his ministry Thursday, Minister Gupta said at least 250 Maoist terrorists had been killed since the army launched its operations on November 26. He said over 100 terrorists had been arrested so far. The minister said the government has withdrawn its decision to free Maoist activists who were supposed to be released after the third round of government-Maoist talks. Responding to a question, Minister Gupta said the army did not need arms and ammunition but required helicopters. "Ground forces are facing difficulty reaching remote areas where terrorists are located. So we need helicopters with night vision facilities so that troops can be transported easily into these areas," he added. The minister said Nepal would purchase the helicopters from whichever country that could provide them quickly and at a cheaper rate. Leading dailies report Dec. 7.

India Declares PWG And MCC As Terrorists

In what may have come as a morale-boosting news for the Nepalese government, the government of India on Wednesday declared two Maoist outfits, the People's War Group (PWG) and Maoist Coordination Center (MCC) as terrorists and banned all the activities of their 25 affiliated organizations. The Nepalese Maoists have maintained close relations with the Indian Maoist groups and are said to be receiving training and supplies from them. Kantipur daily quoted Press Trust of India as reporting that these organizations have been declared as terrorists in Indian states of Andhra Pradesh and Bihar. Meanwhile, Indian State Police of Uttar Pradesh have raided and sealed two shops at Gorakhpur on charges of supplying huge quantity of chemicals and weapons to Nepal's Maoists. The Indian police have also sent four people to jail who were arrested from near the Indo-Nepal border while carrying weapons, a news report in the daily said. Compiled from reports Dec. 6.

Interkraft And IPC Competing For BPC

Ministry of finance

Even after three years, Interkraft and Independent Power Corporation (IPC-Nepal) are competing to procure the state-owned Butwal Power Company (BPC). Interkraft is a consortium of Nepali and Norwegian investors while British-US investors own the IPC. The government had scrapped the first tender bid in late 1999 to sell its 75 percent stake in the BPC to private buyers after the IPC pulled out of the fray, accusing the Finance Ministry of favoring its rival, the Interkraft. Nepalese officials rejected the allegations. The second tender bid in September 2000 was also scrapped as none of the bidders offered an appropriate price for the profit-making company. Compiled from reports Dec. 6.

`Market Economy Emerges As A Key Force'

Former US ambassador to India, Frank Wisner, has said as the command economy has failed the world over to deliver desired outcome, the market economy has become an important force in the global economy. Mr. Wisner, who is also a vice-chairman of the American Group (AIG), noted that corruption was tantamount to cancer in a democratic society. Addressing a talk program here Tuesday, Mr. Wisner said success of privatization largely depends on the government's policies and response of trade unions or employees. He said the government should not invest in enterprises, rather it should mobilize its resources for the well being of the public. Mr. Wisner is currently in Nepal in connection with the launching of a local branch of American Life Insurance Company (ALICO), a subsidiary of the AIG Group. Leading dailies report Dec. 5.

`Operation Will Be Over In Six Months'

Home Minister Khum Bahadur Khadka has said the operation launched by the security agencies against the Maoist terrorists would be over within the next six months. Talking to a private daily newspaper, Mr. Khadka said the army and police personnel maintained high morale and the operation so far was successful. When asked about the role of the army, the minister said the army was working under the government and was being coordinated by the government. Mr. Khadka said the talks with the Maoists could resume only if they surrendered all the weapons they had looted from Dang and other parts of the country and apologized for what they have done so far. "The talks cannot be held at their convenience," he asserted. Rajdhani Dec. 4.

Four Public Enterprises To Be Closed

The council of ministers on Friday decided to close down four loss-making state-owned enterprises, reports said. Kantipur daily reported on Monday that the government has decided to close down the Nepal Transport Corporation (NTC), Sajha Yatayat, Cottage Industries and Handicrafts Emporium and Nepal Oriental and Magnesite Pvt. Ltd. Over 1,300 employees in the three entities, excluding NTC, will be laid off and would be compensated as per the regulations. NTC owes over Rs 20 million in salaries to its employees for the last 11 months. According to official statistics, the Sajha Yatayat has been incurring a loss of Rs 18 million per annum, Nepal Oriental and Magnesite Pvt. Ltd. incurred a net loss of over Rs 80 million last year. The government is planning to privatize these enterprises after closing them down and laying off their staff, the report said. A total of 16 public enterprises have been sold to private management by the government since 1992. Compiled from reports Dec. 5.