Review of 1950 treaty, trade on focus in Nepal FM's India trip

Shirish B Pradhan

Kathmandu, Aug 9 (PTI) Review of the 1950 Indo-Nepal
friendship treaty, discussing ways to prevent cross-border
terrorist and criminal activities and boosting trade ties will
top the agenda in her maiden official visit to India from
Monday, Nepal Foreign Minister Sujata Koirala said on Sunday.

Issues of alleged border encroachment and cooperation on
hydropower sector will also figure during her talks with top
Indian leaders, including Prime Minister of India Mamohan
Singh and her counterpart S M Krishna, she told PTI.

"The focus of the visit will be on enhancing trade
relations and increasing Indian investment," the minister, who
will leave on Monday for New Delhi on a five-day visit, said.

She said that Nepal will continue to pursue its foreign
policy based on "economic diplomacy" and try to get maximum
benefit from emerging economies like India and China.

"India has played a vital role in Nepal's economic
development and we hope to increase India's participation in
our development endeavours," 54-year-old Koirala, the daughter
of former prime minister Girija Prasad Koirala, said.

The review of the Nepal-India Peace and Friendship Treaty
of 1950 will also figure during the talks, she said adding,
India also wants to have a relook into the 59-year-old pact.
The Maoists have long demanding the review of the treaty which
relates to various aspects of the bilateral ties.

The issue of alleged border encroachment by India will
also be taken up as the matter surfaced during the session of
Nepalese Parliament, Koirala said. "We should settle these
issues as these will give a chance to those fomenting
anti-India activities," she said.

The minister said issues pertaining to cross-border
criminal activities, flood problems and implementing past
agreements on hydro-electricity projects will also come up.

"We will discuss about criminal activities and terrorist
activities being carried out by different armed groups in the
open border as we need India's help for maintaining peace in
southern Nepal," she said.

The rising criminal and terrorist activities along the
border is an issue of mutual interest, she pointed out adding
that "it is also India's interest to control such criminal
activities on the open border."

"We are facing a big problem of security as we move
forward in the peace process. India's support and cooperation
will be crucial in improving security in the border and for
the success of the peace process," she said.

To a question, she said there is no plan to sign an
extradition treaty with India during the visit.

Turning to economic and trade ties, she said Nepal will
ask India "to reduce tariff and non-tariff barriers so that we
can reduce the increasing trade deficit and uplift our economy
as we are passing through a political transition." At present,
the trade deficit stands at USD 13.82 million.

Nepal government is aware of the labour problems and lack
of security being faced by Indian joint ventures here, the
minister said. "We have already moved a bill to establish a
separate Industrial Security Force. We are committed to
creating an investment-friendly environment."

Several Indian joint ventures here, including Dabur Nepal
and Surya Nepal, recently faced labour unrest and Maoist-
backed trade unions also forced brief shutdowns in some units.

Nepal government is considering a legislation so that
industrial corridors can be declared as strike-free zones, she
said. "One of the objectives of my visit to India will be
trying to increase the confidence of the business community
there so that they can make more investment in Nepal".

Infrastructure, tourism and information technology are
some areas in which Indian investments could be helpful, she
said. Koirala said Nepal government is considering a plan to
declare Birgunj, the southern Nepal town bordering Raxaul of
India, as a Special Economic Zone and wants to provide many
facilities to the region for which India's help was needed.

Nepal wants to expedite construction of India-sponsored
240 MW Naumure Hydropower Project, Koirala said adding, it
will also seek more scholarships for Nepalese students.
Agriculture development, information technology, tourism
development are some other areas which will be discussed under
the future cooperation projects between Nepal and India, she
added. PTI SBP
SDE
NNNN