THE NEPALESE AND Russian governments signed an agreement in Kathmandu Tuesday abolishing visa requirements for each other's citizens carrying diplomatic or official passports. Acting Foreign Secretary Madhu Raman Acharya and ambassador of the Russian Federation to Nepal, Valery Vartanovich, signed on the agreement on behalf of their respective governments. The agreement, which will come into force after 30 days, will simplify the official travel of diplomatic and official passport holders of the two countries by eliminating visa requirements for a maximum of 180 days, the Foreign Ministry said.

THE GOVERNMENT IS TO launch "Destination Nepal Campaign" during 2002-03 to stop the decline in tourist arrivals and promote Nepal as a preferred destination. Talking to reporters, Minister for Culture, Tourism and Civil Aviation Bal Bahadur KC said the government would do everything possible, together with the private sector, to stop the massive decline in tourist arrivals. The number of tourists visiting Nepal in the past three months has plummeted by almost 50 percent. Apart from trying to lure more tourists from abroad, the campaign also aims to improve policies and infrastructure for sustainable and coordinated development of tourism in the country. The government has allocated Rs 22.5 million for campaign this fiscal year. The government had launched Visit Nepal Year in 1998 with similar objectives. Tourist arrivals in Nepal have declined drastically in the aftermath of the June 1 tragedy at the Narayanhity royal palace and the September 11 terrorist attacks on the United States last year.

THE DEFENSE MINISTRY said Wednesday that security forces gunned down a dozen Maoist insurgents in seven districts. According to the ministry, four rebels were killed in Banke, three in Dang, one each in Baglung, Udaypur, Parbat, Sindhupalchok and Gulmi districts. In Kathmandu, one policeman and a youth were killed when rebels hurled a petrol bomb and opened fire on a police post at Kuleswore at around 7 p.m. on Wednesday. Rebels in the central district of Chitwan killed a police constable on duty Wednesday evening, Kantipur daily reported. The rebels also killed a Nepali Congress activist, 50-year-old Ghamanada Giri in Banke, and a 54-year-old farmer, Durga Bahadur Gurung, in Tanahun district on Tuesday. Giri, father of Dang-based journalist Arjun Giri, was abducted from his house on Sunday.

THE GOVERNMENT OF the Federal Republic of Germany is to provide a grant assistance of 28.95 million euros to Nepal for the year 2002-03, focusing on three priority areas: health and family planning, promotion of local self-governance and civil society, and the promotion of renewal energy. Of the total amount, 8.5 million euros has been earmarked for improved health services for disadvantaged people. Over 90 percent of the project activities are aimed at poverty reduction, the German embassy in Kathmandu said. The grant includes 7.5 million euros for setting up 100,000 small biogas plants by 2003 for cooking and lighting in peasant households. Nepal is said to have one of the most successful biogas programs in the world.

A TOP BUREAUCRAT has admitted that the threat of economic crisis is looming large in the country. In an interview with Kantipur daily, Finance Secretary Dr. Bimal Koirala said the country, from the economic point of view, was in a very difficult situation. The economy, he said, was facing an unprecedented crisis. The tourism sector is in a critical position, while growth of export-oriented industries is shrinking. This has resulted in lower-than-expected revenue collection in recent months. Rising regular expenditure, growing liabilities of public enterprises and declining revenues have made it harder to maintain fiscal balance. The financial sector is not in a good position, Dr. Koirala said. "If we fail to accelerate long-term reforms in the fiscal and financial fronts, the economy will suffer a heavy blow in the days ahead," he warned. Dr. Koirala said the Maoist insurgency, global economic slowdown and post-September 11 uncertainties had hit the Nepalese economy hard.

MAOIST INSURGENTS PARTIALLY damaged a bridge linking Trishuli, district headquarters of Nuwakot, with Kathmandu early Friday. The Maoists dug out the concrete of the bridge and put in logs before setting the 61-meter-long bridge on fire. The bridge was opened for traffic after several hours. In Dolakha district, the Maoists set fire on six buildings of the Botanical Centre. The attack is reported to have caused a damage of over Rs 5 million and destroying important research materials, center officials said.  The rebels also attacked and set fire to the office of the Cottage and Small Industries Development Committee in the district. Rajdhani daily reported Sunday that the insurgents looted nearly 800 quintals of rice, allocated for former kamaiyas, from the godown of a cooperative at Kota Tulsipur in Kailali district Friday night. Hundreds of rebels broke open the godown and transported the rice in tractors and rubber-tire carts. Coordinator of the Food Security Program for the emancipated Kamaiyas, Dinesh Bhandari, said the German cooperation agency GTZ had procured the rice for distribution to former bonded laborers under its "Food for Work" program in the district.

THE SOCIETY OF Ex-Budhanilkantha Students (SEBS) organised a solo concert of pop singer Navin Kumar Bhattarai at Birendra International Convention Center on Saturday. The money raised from the concert is to be spent on providing scholarships to underprivileged children of the country. The Nationwide Scholarship Program, started in 1991, is providing financial assistance to 50 high-school students. Ninety-one students from 36 districts have passed the SLC examinations under this scholarship program. SEBS has been providing Rs.4,500 per year to each of the students selected on the basis of merit.