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Understanding the Nepal Peace Agreement
8 November 2006

Unofficial Translation of the Comprehensive Peace Agreement concluded between the Government of Nepal and the Communist Party of Nepal (Maoist), 21 November 2006
Full text of the decisions of the Seven Party Alliance (SPA) - Maoist summit meeting, 8 November 2006
Nepal: Seven Party Alliance - Muddling along and giving in at every stage -. S.Chandrasekharan, Indian Think Tank, SAAG, 19 August 2006
Nepal's Instability in the Regional Power Struggle: India, China  -  PINR, Report, 3 February 2006
12- Point understanding between Seven Party Alliance and Maoists, 22 November 2005
Nepal's SPA, India Pressured by US Ambassador's Speech -  Preeti Koirala, Newsblaze

"The second element of US Ambassador Moriarty's statement is overtly directed towards India. Every sane mind knows that top Maoist leaders live and give out their directives to their cadres from within the Indian territory. Lately, several interviews have been taken of the Maoist leaders from the Indian capital. It is anybody's guess that India very well knows where Prachanda and Baburam are hiding but does not want to arrest them for some future usage that they have vis-a-vis the give and take that may take place between the monarchy and the Government of India. The 12-point agreement definitely had the tacit Indian consent. Some reports even suggested that the Government of India itself had engineered the understanding in order to pressure the King..."

Indian Expansion - An Outline: Nepal - Dev Nathan, Journal of Eelam Studies, Summer 1989
Decade  of Insurgency - a Chronology

Full text of the decisions of the SPA-Maoist summit meeting, 8 November 2006

Respecting people�s aspiration for democracy, peace and progress expressed through repeated historic people�s movement and struggles since 1951,

Reaffirming commitments to the 12-point and 8-point agreements, and 25-point code of conduct between the seven parties and the Maoists along with other agreements, understandings, code of conducts and letter sent to the United Nations stating similar perspectives by the Maoists and the Nepal government,

Pledging for progressive restructuring of the state by resolving prevailing problems related with class, ethnicity, regional and gender differences,

Reiterating commitments to competitive multiparty democratic system, civil liberties, fundamental rights, human rights, complete press freedom, rule of law and all other norms and values of democratic system,

Guaranteeing the fundamental rights of the Nepalese people to cast their votes in the constituent assembly polls without any kind of fear,

By putting democracy, peace, prosperity, progressive social and economic transformation, independence, integrity, sovereignty and prestige of the state in the centre-stage and to implement the commitments made by both the sides to hold the election to constituent assembly by mid June 2007 in a free and fair manner, the following decisions have been taken from the meeting of the top leaders of the seven parties and the Maoists today, November 8, 2006.

I. Relating to the implementation of the past agreements

Implement all the agreements, understanding and code of conduct signed earlier - fully, sincerely and strongly

Form a high-level commission to investigate and publicise the whereabouts of citizens stated to have been disappeared by the state and the Maoists in the past

Accelerate the process of returning the houses, land and properties confiscated in the past. Ensure the environment so that displaced people would be able to return to their villages. For this purpose, committees would be formed in districts comprising representatives from both the sides. Complete all these works within one month.

Make public announcement regarding the withdrawal of all accusations and charges levelled by the state at the leaders and the cadres of the CPN (Maoist) and release all political prisoners from both the sides.

II. Relating to management of arms and army

In order to hold the elections to constituent assembly in a peaceful, free and fair environment and for democratisation and restructuring of the Nepali Army as per the feelings expressed in 12-point agreement, 8-point understanding, 25-point code of conduct and 5-point letter sent to the United Nations, the following works would be carried out:

Relating to Maoist army

As per the commitments expressed in the letter sent to the United Nations by the Nepal government and the Maoists on August 9, the combatants of the Maoists would be sent to following cantonments. The United Nations would do the necessary verification and monitoring of them.

Main camps would be in the following places

1. Kailali, 2. Surkhet, 3. Rolpa, 4. Palpa, 5. Kavre, 6. Sindhuli 7. Ilam. There would be three smaller camps located in the periphery of each of these main camps

All the arms and ammunitions would be securely stored in the camps except those needed for providing security of the camp after the Maoist combatants are sent to the cantonments. They will be put under a single lock system and the concerned side would keep the key of this lock. For the UN to monitor it, a device with siren as well as recording facility will be installed. When there is need to examine the stored arms, the UN would do so in the presence of the concerned side. Prepare the details of technology including camera for monitoring as per the agreement among the Nepal government, the Maoists and the United Nations.

On completion of cantonment of the Maoist combatants, Nepal government would take up the responsibility for providing ration and other facilities to them

The interim cabinet would form a special committee to carry out monitoring, integration and rehabilitation of the Maoist combatants

Make arrangement for the security of the Maoist leaders as per the agreement with the Nepal government

Relating to Nepali Army

The Nepali Army would be confined to the barracks as per the commitments of the letter sent to the United Nations. Guarantee that its arms would not be used for or against any side. Keep similar quantity of arms of the Nepali Army in the store, seal it with single-lock system and give the key to the concerned side. For the UN to monitor it, a device with siren as well as recording facility will be installed. When there is need to examine the stored arms, the UN would do so in the presence of the concerned side. Prepare the details of technology including camera for monitoring as per the agreement among the Nepal government, the Maoists and the United Nations..

The cabinet would control, mobilise and manage the Nepali Army as per the new Military Act. The interim cabinet would prepare and implement the detailed action plan of democratisation of the Nepali Army by taking suggestions from the concerned committee of the interim parliament. This includes works like determination of the right number of the Nepali Army, prepare the democratic structure reflecting the national and inclusive character, and train them on democratic principles and human rights values

Continue the works of the Nepali Army such as border security, security of the conservation areas, protected areas, banks, airport, power house, telephone tower, central secretariat and security of VIPs.

III. Relating to the subjects of the interim constitution

1. Relating to interim constitution

Finalise the interim constitution presented by the interim constitution drafting committee as per the agreements reached today

The reinstated House of Representatives would promulgate the interim constitution and the newly formed interim legislature would endorse it.

2. Relating to the monarchy

No rights on state administration would remain with the King

Bring the properties of the late King Birendra, late Queen Aishwarya and their family members under the control of the Nepal government and use it for the welfare purposes through a trust.

All properties acquired by King Gyanendra by the virtue of him being the King (like palaces of various places, forests and conservation areas, heritage having historical and archaeological importance) would be nationalised.

Determine the fate of the institution of monarchy by the first meeting of the Constituent Assembly through simple majority vote.

3. Relating to interim legislature (parliament)

i. The interim legislature would be unicameral of the following type: There would be 209 members of the seven parties and others who are members of the present lower and upper house (excluding those who opposed the people�s movement). Since the Left Front does not have its representation in the current parliament, its representation in the interim parliament would be determined based on understanding.

ii. 73 members from the side of the Maoists

iii. 48 members from among the sister organisations and professional bodies, oppressed ethnic communities and regions and political personalities (to be nominated based on understanding)

(total number : 330)

But those who stood against the people�s movement would not be given membership in the interim parliament.

The reinstated House of Representatives and National Assembly would be dissolved once the formation of the interim parliament is complete.

The people�s government, people�s court run by the CPN (Maoist) would be dissolved on the day of the formation of the interim parliament.

Run the interim parliament as per the political understanding

4. Relating to interim government

Form the interim cabinet as per the understanding

Determine the work division and structure of the interim parliament as per understanding

The interim government would work as per the aspiration of the people�s movement, political understanding and culture of cooperation

5. Relating to judiciary

Follow the norms and values and concept of the independent judiciary

Make the judiciary committed to the aspiration of the people�s movement, democracy and interim constitution

Institute a constitutional court to finalise disputes regarding the constituent assembly

6. Relating to constitutional bodies

A new constitutional council will be formed that will include the Prime Minister, Chief Justice and the Speaker of the interim parliament, which will recommend appointments at the constitutional bodies. Such appointments will be based on specific criteria.

The appointments in the Election Commission will be completed on the basis of understanding.

7. Relating to local bodies

Interim local bodies will be formed in district, city and village level on the basis of agreement between the seven political parties and the Maoists.
8. Relating to citizenship problem

Distribute citizenship to all Nepalis who have been deprived of their citizenship certificate before the election of the constituent assembly

Considering mid-April 1990 as the base (cut off) year, all Nepalese citizens who were born before that date and have been continuously living in Nepal since then will be provided with citizenship certificate.

Other provisions regarding citizenship will be according to the provisions mentioned in the law.

9. Regarding the election of the constituent assembly

The interim cabinet will be given the authority to ascertain the date to hold the election of the constituent assembly by mid-June 2007.

The election of the constituent assembly will be based on mixed electoral system. 205 members will be elected through First-Past-The-Post system. 204 members will be elected as per the proportional representation system on the basis of votes won by the political parties. A law in this regard will be made after consultation with the Election Commission.

While appointing the candidates, the political parties should ensure proportional representation of oppressed groups, region, Madheshi, Women, Dalit and other groups.

16 members will be nominated by the interim Council of Ministers from among distinguished persons.

The total number of members of the constitutional assembly will be 425.

Nepalese who are 18 years or above at the time when the interim constitution is promulgated will be eligible to vote.

Monitoring of the election of the constituent assembly will be done by the United Nations.

10. Structure of the state

To end discriminations based on class, ethnicity, lingual, gender, cultural, religion and region and to deconstruct the centralised and unitary structure of the state and to reconstruct it into an inclusive, democratic and forward looking state.

A high level commission will be formed to suggest on the restructuring of the state.

Final decision regarding the restructuring of the state will be made by the constituent assembly.

11. Directive principles of socio-economic transformation

To end all forms of feudalism, a common minimum program will be prepared for socio-economic transformation on the basis of mutual agreement and they will be implemented.

Formulate policies to implement scientific land reform program by doing away with the feudal land ownership.

To adopt policies that will protect and promote national industries and resources.

To ascertain the rights of the citizens on sectors like education, health, shelter, employment and food security.

Policies will be adopted to provide land and socio-economic security to backward groups like landless, bonded labourers, tillers, Haruwa-charuwa and other such groups, which are socio-economically backward.

To adopt policies to take strict actions against the people who have worked in government positions and have amassed huge amount of properties through corruption.

Prepare a common development concept that will help in socio-economic transformation of the country and will also assist in ensuring the country�s prosperity in a short period of time.

Follow policies ascertaining the professional rights of workers and increase investment on sectors like promoting industries, trade and export and increase employment and income generating opportunities.

IV. Relating to the management of the conflict victims

1. Provisions will be made for providing proper relief, respect and resettlement for the family members of the people who have died due to the conflict and for the ones who have been disabled.

2. Provide relief to the family members of the people who have been disappeared on the basis of the report presented by the investigation commission.

3. Carry out special programs to rehabilitate the people who have been displaced due to the conflict; to provide relief in case of destruction of private and public properties; and to reconstruct the destroyed infrastructures.

4. Conduct investigation about those who were involved in gross violation of human rights at the time of the conflict and those who committed crime against humanity. Form a high level Truth and Reconciliation Commission to create an environment for social reconciliation.

V. Miscellaneous

1. A high-level committee will be formed as per understanding to monitor if the agreement have been implemented.

2. The government will take action against anyone involved in acting against the code of conduct, agreement and laws.

3. At the time of the election of the constituent assembly, the political parties will be free to present their policies regarding republic, socio-economic transformation, referendum, election system and other such issues in which an agreement has not been reached now.

VI. Time Schedule

1. To conclude comprehensive peace agreement between Nepal government and the CPN (Maoists) by November 16, 2006

2. That all the Maoist combatants would gather into the camps by November 21, 2006 as stated in 2(1) and store the arms. The United Nations would do their verification and monitoring.

3. As stated in 2(5), the Nepali Army would remain confined in barrack by November 21, 2006 , keep the specified number of arms in the store and the United Nations would conduct its monitoring.

4. To complete the interim constitution by November 21, 2006

5. To promulgate the interim constitution by November 26, 2006 , establish the interim legislature and dissolve the House of Representatives and National Assembly

6. Form the interim cabinet by December 1, 2006


Chairman, CPN (Maoists)

Girija Prasad Koirala
Prime Minister and president of the Nepali Congress

Madhav Kumar Nepal
General secretary of CPN (UML)

Sher Bahadur Deuba
President of Nepali Congress Democratic

Amik Sherchan
Deputy prime minister and chairman of People�s Front Nepal

Bharat Bimal Yadav
Vice president of NSP (Anandi Devi)

Narayan Man Bijukchhe
President of NWPP

C. P. Mainali
Chairman of Left Front

November 8, 2006

Note of dissent by the UML

Agreeing for the implementation of the subjects stated above as all other parties have agreement on those, our party has following differences:

1. The UML believes that the issue of whether to keep the monarchy or not should be determined through the referendum along with the election to constituent assembly

2. The UML believes that it would be most democratic to adopt the proportional system for election to the constituent assembly.

Nepal: SPA- Muddling along and giving in at every stage -. S.Chandrasekharan, Indian Think Tank, SAAG, 19 August 20006

It is noticed that the Seven Party Alliance while muddling along in the peace process has been giving in at every stage in their dealings with the Maoists. The joint letter to the United Nations on arms management is one such case.

The problem appears to be not with the Maoists who have a clear agenda and are tackling the media, civic bodies and the politicians in a very professional way. They do not have too many spokespersons talking out of turn unlike the seven party alliance leaders whose statements not only confuse others but must also be confusing to their own cadres. Another vexed problem is the lack of unity among the SPA. On every issue - monarchy, composition of an interim parliament, citizenship to the stateless people of Indian origin, mode of future elections, and on restructuring of the State, there are serious differences among the individual units of the Alliance.

What the SPA needs is to have a serious �in house� discussions on these issues and work out a strategy in dealing with the Maoists. Negotiations are done privately and the Nepali Congress does not seem to be briefing other party leaders of the Alliance regularly. Even leaders like Madhav Nepal feel ignored!

Joint Letter to United Nations:

After hectic discussions and after many drafts, the Maoists and the Government succeeded in sending a joint letter to the United Nations on the issue of arms management of both sides on the last day of the dead line- 9th August 2006.

The letter to the United Nations, handed over to the acting UN Resident Representative Abraham Abraham, UN assistance sought the following:

1. Continuing OHCHR monitoring the Human rights situation.
2. Helping monitor the 25 point Code of Conduct relating the Cease fire.
3. Confining Maoists combatants and their weapons in designated cantonments and letting the UN monitor them.
4. Confining Nepal Army Personnel and their weapons in barracks to ensure that they are not used for or against any side.
5. Observing the constituent Assembly elections.

Compare it with what G.P.Koirala had written unilaterally earlier to the UN on July 2, 2006 which said

1. Continue monitoring of Human rights through the Office of the High Commissioner for Human Rights (OHCHR) in Nepal.
2. Assist to monitor the code of conduct during the cease fire.
3. Assist in the monitoring of combatants of Maoist and decommissioning of their arms in order to ensure a free and fair election to the Constituent Assembly.
4. Monitor to assure that the Nepali Army is inside barrack and is not being used for or against any side in order to ensure free and fair elections to the Constituent Assembly.
5. Observe the election process to the Constituent Assembly.

The critical issue is in point 3 of G.P�s letter which envisages �decommissioning of arms� to ensure a free and fair election. In other words it implies that free and fair elections cannot be had if the Maoists retain their arms. But this is what has been conceded in point 3 of the joint letter. There should be no doubt that so long as the Maoists retain their arms whether in the barracks or outside, people will not feel free to vote. This is especially true when the entire country side is still under the control of the Maoists and a parallel administration is still being run by them.

In the Parliament, as late as 17th August, the Parliamentarians complained that the Maoists in the country side are still indulging in abduction, extortion and intimidation. The fear of the Maoists will continue so long as the arms and the persons are not separated till the elections to the constituent assembly. For this, the Parliamentarians are themselves to blame. Very few of them have gone to their constituencies to rebuild their connections and most of them are sticking onto the capital not out of fear but for their own selfish interests. It is understood that there is a scramble for positions in many vacancies that have arisen in the public sector undertakings!

DDR and Arms Management:

If the arms management is considered to be part of DDR ( Disarmament, Demobilization and Reintegration) the joint letter to the UN fails to address these issues and has handed over the responsibility to the United Nations! The UN has no authority either to separate arms from the Maoists even in camps and mere verification of the arms in the camps and observation before and during elections cannot by themselves ensure free and fair elections. The UN by itself will not have enough man power to carry out the tasks and it is doubtful how far civilians will be able to help them.

Prachanda says that they have seven divisions of 5000 persons each and do not have an idea of the number of weapons they have. The general assessment of neutral observers is that they had about 9000 in number before cease fire and have added 3000 more by recruitment and not more. Similarly no one knows how many and what kind of weapons they hold.

The second issue is whether DDR is at all possible when there is actually no trust between the two parties. The Maoists have declared that the question of laying down their arms does not arise until the State and the Nepali Army are restructured.

The Government has already tabled a bill in the Parliament to amend Army Act 2016 (Nepali Era) to formally sever the traditional links between the Nepali Army and the King. The Security Council is being restructured with the Prime Minister in the chair and the ministers of Defence, Home, Finance and Foreign Affairs as members who will take decisions without referring to the King. Earlier the council consisted of the Prime minister, Defence minister and the Army Chief as members and could only recommend to the King for mobilisation of the Army in the event of any serious situation affecting the security of the State. But these changes are considered to be cosmetic by the Maoists.

The contention of the Maoists is that the army is still loyal to the Palace and they have no faith in the neutrality of the Army. Until the army is restructured and their own PLA is integrated the question of their laying down their arms does not arise.

Closely linked with the arms management is the interim constitution, interim parliament and interim government until the elections to the constituent assembly. The ICDC ( Interim Constitution Drafting Committee) is ready with the draft constitution with many blanks which could be filled up only if there is a consensus amongst all parties. The first major issue is on the position of monarchy- Prachanda wants no mention of monarchy in the interim constitution and this could be thought of later after constituent assembly elections. The reason is that the Maoists are keen to join the interim government and the interim council/parliament, but they cannot do if monarchy finds a place in the constitution! Prime Minister G.P.Koirala has on record said that the Parliament will be dissolved only after the issue of arms management is settled and an interim constitution drafted. It is difficult to see an early resolution of the arms management problem.

Need is for a "Bottom Line" and not bottomless lines:

To us, it looks that the issue of mention of monarchy is a minor one as the constitution is itself a temporary one to pave the way for elections to the constituent assembly. What is more important is for the SPA to clearly decide on the bottom lines and stick to them rather than giving in at every issue after making brave statements to the contrary! .
Nepal's Instability in the Regional Power Struggle
PINR, Report Drafted By: Adam Wolfe  03 February 2006
see also
05.01.06 India Struggles to Negotiate a Settlement in Nepal
04.25.06 Intelligence Brief: Nepal's King Reinstates Parliament
02.09.06 Intelligence Brief: Elections in Nepal and Haiti
02.03.06 Nepal's Instability in the Regional Power Struggle
09.27.05 Intelligence Brief: Nepal
03.11.05 Sacking the Government Brings International Attention to Nepal

As the first anniversary of King Gyanendra's sacking of the government passes, Nepal continues to slip further into instability, creating a power vacuum in which regional powers India and China compete for influence. The power struggle in Nepal consists of three domestic players: the king, the major parties of the former government, and the Maoist rebels of the countryside. In recent months, the political parties have aligned with the rebels, but each group maintains its own agenda.

China unconditionally backs the king in a costless gamble to gain influence in the Himalayan country that borders the Tibetan region. India believes that monarchal rule is inherently unstable in Nepal, and it threw its support behind the political parties after they were dismissed in February 2005. The U.S. and U.K. have supported India's position, partially to limit China's influence in the region.

It is not certain how the tri-polar power struggle will be resolved in Nepal. It is reasonably certain, however, that neither the king nor the rebels have the ability to gain control of the entire country. While the impoverished, landlocked country has little strategic value in itself, Nepal's position on the border of a potentially unstable region on China's western border and India's eastern boundary makes its instability important to the region's "great game."

Tri-Polar Power Struggle

With the exception of a brief period in 1959-60, democracy was first established in Nepal by King Birendra after he bowed to political pressure and instituted a constitutional monarchy in 1989. The parliamentary system was unstable and fractious from the beginning. In 1994, Prime Minister Koirala quit his post after defeat in the parliamentary vote, beginning the current period of political instability.

In 1996, the Maoist Communist Party of Nepal left the government and initiated its "people's war" against the monarchy in the countryside. Estimates of the area controlled by the rebels range from nearly 50 percent of the country (UNICEF) to 80 percent (Refugees International). The rebellion has been plagued by torture and brutality at the hands of both the rebels and the security forces, and has killed approximately 12,500 people since 1996.

King Gyanendra unexpectedly assumed the throne in 2001 after the heir apparent shot and killed his parents and then turned the gun on himself. King Gyanendra quickly demonstrated that he would be even more willing than his predecessor to interject himself into the political process.

In 2001, the government and the rebels agreed to a truce, but the break in fighting only lasted four months. Following the resumption of violence, King Gyanendra declared a state of emergency and dismissed the government of Prime Minister Sher Bahadur Deuba. He later instated Lokendra Bahadur Chand as prime minister, but months of protests from political parties left out of the government forced him to resign on May 30, 2003. The king tried his luck with another royalist, Surya Bahadur Thapa, as prime minister, but he was forced to quit after less than a year in the face of more protests.

On June 2, 2004, King Gyanendra reappointed Deuba as prime minister. Eight months later, the king fired the entire parliament, placing members under house arrest, and assumed absolute control on the pretense of using the full force of the military to end the Maoist rebellion in the countryside. The king's direct control of the military, however, has done nothing to resolve the rebellion.

The fractious parliamentary parties have put their differences aside since February 2005, and have agreed that reestablishing parliamentary control is the most important objective. In late August 2005, the political parties agreed to abandon the goal of achieving a constitutional monarchy in favor of complete parliamentary control. This shift in goals brought the political parties in line with the stated goals of the Maoist rebels. [See: "Intelligence Brief: Nepal"]

In response to the shifted stance of the political parties, the Maoist rebels initiated a cease-fire, which ultimately lasted four months. This led to a November 22, 2005 agreement between the parliamentary parties and the rebels that essentially reduced the power struggle to two parties. The rebels and the seven main political parties called for an end to "the autocratic monarchy." However, there is still a great distance between the goals of the political parties and the rebels, and it is not clear what would become of the alliance if this goal were to be achieved.

While violence did dramatically decrease during the cease-fire, reports indicate that the rebels did not completely abandon their weapons. The government never agreed to the cease-fire, and continued its attacks against the rebels. At the start of this year, the Maoist rebels ended their cease-fire, claiming that the government's attacks forced them into a fighting position, and the level of violence has increased.

By aligning with the Maoist rebels, the parliamentary parties hoped to gain concessions from the king, but he proved inflexible. Instead, the king is taking an approach, first predicted by PINR in March 2005, of holding municipal elections on February 8 in order to legitimize his rule. [See: "Sacking the Government Brings International Attention to Nepal"]

Municipal elections would be the first step toward creating a parliament that he can dominate, but one strong enough potentially to garner the support of the United States and India. At this juncture, India and the U.S. are not ready to throw their support behind the king's plan. Instead, they are working in close collaboration with the parliamentary parties to reestablish a democratic government in Nepal. This is a strategy not without risk, and ultimately New Delhi and Washington might realign with the king in order to prevent an encroachment by China into India's sphere of influence.

India and China Compete in Nepal

Before the parliament's dismissal last February, India and the U.S. were the major military donors to Nepal. India's own Maoist rebels, the Naxalites, have proven to be an intransigent threat in half a dozen Indian states, including in a stronghold in the Bastar region of Chattisgarh. The possibility of a successful Maoist coup in Nepal, which would embolden their counterparts in India, caused the Indian government to provide extensive training and aid to the king's military. The U.S. would like to maintain close relations with Nepal in a strategy of encircling China and containing Beijing's influence in southwestern Asia.

After the government's dismissal, however, India's assessment was that the king would not be able to succeed in suppressing the Maoist rebellion and that his rule is inherently unstable. New Delhi immediately ended all military support to Nepal. Washington and London supported the decision with similar policies.

Since then, New Delhi has been in close contact with the main Nepalese political parties -- the Nepali Congress Party (N.C.P.) and the Communist Party of Nepal (U.M.L.) -- in order to coordinate their actions with the goal of reinstating parliamentary rule. Washington has played an important supporting role in coordinating the political parties' actions. For example, Indian leaders hosted a meeting in New Delhi in November 2005 that included U.S. Ambassador to Nepal James Moriarty, Madhav Kumar Nepal (a leader of the U.M.L.), and the N.C.P.'s Girija Koirala. Shortly thereafter, the November 22 agreement between the rebels and the Nepalese parliamentary parties emerged.

The alliance between the rebels and the political parties is troubling for New Delhi because it fears that such cooperation could strengthen India's own Maoist rebels. Also, the alliance makes less tenable the position taken by New Delhi, Washington and London of supporting the democratically elected government as the only way to end the Maoist rebellion.

India's support for the parliamentary parties is not without debate in New Delhi. There are reports that the Ministry of External Affairs' support for the parliamentary parties' negotiations with the Maoist rebels has been contested by the Home and Defense Ministries, which have placed their bets on King Gyanendra fearing that a Maoist takeover would destabilize regions within India that are fighting a domestic Maoist rebellion. While New Delhi continues to support the political parties, it is not clear that it will do so indefinitely. Should King Gyanendra's municipal elections, which will be boycotted by all but one of the political parties, eventually lead to a weak parliament, India may reassess its support.

While India has the most to lose in Nepal, China has welcomed the recent instability as an easy way to establish its influence there. It has signed arms deals with King Gyanendra, and should the king prove able to hold onto power, it would gain support on the border of the Tibetan region. Yet, if the king proves unable to last, then, in China's perception, the situation simply returns to the previous paradigm in which India dominates Nepal's agenda. This position also places China in the way of forming an international solution to the tri-polar power struggle in the United Nations.


The parliamentary parties and the Maoist rebels formed an alliance after the February 2005 coup. The alliance, although frayed, still holds even though the rebels took up arms again at the start of the year. The king's plan to hold elections next month has been hotly contested by the parliamentary parties and the rebels. This has led to an increase in violence in the past weeks as the political parties have attempted to disrupt the process through mass protests, and the rebels have attempted to force the cancellation of the polls by increasing their attacks. Both tactics have been met with violence from the king's security forces. On the eve of the one-year anniversary of the coup, more than 500 people were detained in order to prevent planned protests, and a rebel attack in Palpa killed 16 policemen and three soldiers.

Several prominent political leaders have been placed under house arrest, and, while there have been some relaxations on the city's outer regions, the curfew and ban on gatherings put in place by the king remain in Kathmandu's center. It is not clear how the elections will play out on February 8. It is likely, however, that they will go forward with a low turnout.

The political parties and the rebels seem to have gained the upper hand as the elections approach. Only 3,255 individuals filed to stand for 4,146 vacant seats. Those who have registered have been urged to stay in police custody for their own protection. While this undermines the king's plan to build his legitimacy through the elections, violence and intimidation from the rebels might also undermine the international standing of the political parties if their alliance is not broken. It does not appear that the elections will force any breakthrough in the tri-polar power struggle.

Predictably, India, the U.S., and the U.K. have said the coming elections are not legitimate, while China has shown its support for them. If the current impasse continues to hold, India, in consolidation with the United States, may begin to shift its support back to the king. China's support for the king will be unwavering, even if the polls collapse in violence or are widely ignored. The elections will not be the first step to restoring order in Nepal, but they may help to determine which neighboring country will benefit from Nepal's failure.

12- Point understanding between Seven Party Alliance and Maoists, 22 November 2005

Letter of Understanding (Unofficial translation)

The long struggle between absolute monarchy and democracy in Nepal has now reached a very grave and new turn. Establishing peace by resolving the 10-year old armed conflict through a forward-looking political outlet has become the need of today. Therefore, implementing the concept of absolute democracy through a forward-looking restructuring of the state has become an inevitable need to solve the problems related to class, caste, gender, region etc of all sectors including political, economic, social and cultural, bringing autocratic monarchy to an end and establishing absolute democracy. We make public that, against this existing backdrop and reference in the country, the following understanding has been reached between the seven parliamentary parties and the CPN (Maoist) through different methods of talks.

Points of Understanding

1. Today, democracy, peace, prosperity, social advancement and a free and sovereign Nepal is the chief wish of all Nepalese. We completely agree that autocratic monarchy is the main hurdle in (realising) this. It is our clear view that without establishing absolute democracy by ending autocratic monarchy, there is no possibility of peace, progress and prosperity in the country. Therefore, an understanding has been reached to establish absolute democracy by ending autocratic monarchy, with all forces against the autocratic monarchy centralizing their assault against autocratic monarchy from their respective positions, thereby creating a nationwide storm of democratic protests.

2. The seven agitating parties are fully committed to the fact that only by establishing absolute democracy through the restoration of the Parliament with the force of agitation, forming an all-party government with complete authority, holding elections to a constituent assembly through dialogue and understanding with the Maoists, can the existing conflict in the country be resolved and sovereignty and state power completely transferred to the people. It is the view and commitment of the CPN (Maoist) that the above mentioned goal can be achieved by holding a national political conference of the agitating democratic forces, and through its decision, forming an interim government to hold constituent assembly elections. An understanding has been reached between the agitating seven parties and the CPN (Maoist) to continue dialogue on this procedural work-list and find a common understanding. It has been agreed that the force of people's movement is the only alternative to achieve this.

3. Today, the country has demanded the establishment of permanent peace along with a positive solution to the armed conflict. Therefore, we are committed to ending autocratic monarchy and the existing armed conflict, and establishing permanent peace in the country through constituent assembly elections and forward-looking political outlet. The CPN (Maoist) expresses its commitment to move along the new peaceful political stream through this process. In this very context, an understanding has been reached to keep, during the holding of constituent assembly elections after ending autocratic monarchy, the armed Maoist force and the royal army under the supervision of the United Nations or any other reliable international supervision, to conclude the elections in a free and fair manner and accept the result of the elections. We expect reliable international mediation even during the dialogue process.

4. Expressing clearly and making public institutional commitment to the democratic norms and values like the competitive multiparty system of governance, civil liberties, human rights, the concept of the rule of law, fundamental rights etc, the CPN (Maoist) has expressed commitment to move forward its activities accordingly.

5. The CPN (Maoist) has expressed its commitment to create an environment allowing the political activists of other democratic parties displaced during the course of the armed conflict to return to their former localities and live there with dignity, return their home, land and property seized in an unjust manner and carry out their activities without let or hindrance.

6. Undertaking self criticism and self evaluation of past mistakes, the CPN (Maoist) has expressed commitment not to repeat such mistakes in future.

7. The seven political parties, undertaking self evaluation, have expressed commitment not to repeat the mistakes of the past which were committed while in parliament and in government.

8. In the context of moving the peace process forward, commitment has been expressed to fully respect the norms and values of human rights and press freedom and move ahead accordingly.

9. As the announcement of municipal polls pushed forward with the ill-motive of deluding the people and the international community and giving continuity to the autocratic and illegitimate rule of the King, and the talk of elections to Parliament are a crafty ploy, we announce to actively boycott them and call upon the general public to make such elections a failure.

10. The people and their representative political parties are the real guardians of nationality. Therefore, we are firmly committed to protecting the independence, sovereignty, geographical integrity of the country and national unity. Based on the principle of peaceful co-existence, it is our common obligation to maintain friendly relations with all countries of the world and good-neighbour relationship with neighbouring countries, especially India and China. But we request the patriotic masses to be cautious against the false attempt by the King and (his) loyalists to prolong his autocratic and illegitimate rule and delude the patriotic people by projecting the illusory "Mandale" nationalism and questioning the patriotism of the political parties, and appeal to the international powers and the people to support, in every possible way, the democratic movement against autocratic monarchy in Nepal.

11. We call upon the civil society, professional organizations, various wings of parties, people of all communities and regions, press and intellectuals to actively participate in the peaceful movement launched on the basis of these understandings centered on democracy, peace, prosperity, forward-looking social change and the country's independence, sovereignty, and pride.

12. Regarding the inappropriate conducts that took place between the parties in the past, a common commitment has been expressed to investigate any objection raised by any party over such incidents, take action if found guilty, and to make the action public. An understanding has been reached to settle any problem emerging between the parties through peaceful dialogue at the concerned level or at the leadership level.
Nepal's SPA, India Pressured by US Ambassador's Speech -  Preeti Koirala, Newsblaze

The US ambassador James F. Moriarty makes headlines whenever he makes statements. His speech delivered at the Ganesh Man Singh Foundation early this month was symbolic in a sense that late Singh was a selfless leader who didn't crave for power for the sake of democracy and freedom. Our contemporary leaders both of the NC and the UML never followed the path of Ganesh Man.

Girija Prasad Koirala even went ahead to minimize Singh during his own life time by actively conspiring to defeat Mangala Devi Singh (Singh's wife) and Prakash Man Singh (Singh's eldest son) in the general elections of 1991. Therefore, by choosing to speak at the forum of a Foundation named after late Singh, the U.S. envoy sarcastically called for inner party democracy and selflessness to nurture democracy by recalling what Ganesh Man had done but apparently what all leaders of today have forgotten.

His contempt and dislike towards the 12-point agreement between the parties and the Maoists supposedly reached at the behest of Delhi has come up as a surprise to everyone. This agreement was reached months ago and neither the U.S. government nor Moriarty had spoken anything grossly negative when the agreement was actually reached.

But it seems now that the Bush administration has realized how awful and dangerous the 12 point understanding actually is. The parties are where they were in front of the people but the Maoists have got huge gains out of the agreement. It has become very easy for the present government also to tell to the people that "See we were always telling you, these seven parties have been tacitly aiding the Maoists".

The fact remains that the Maoist movement started when there was full-fledged multi-party democracy and that the insurgency actually spiraled out of control when the Nepali Congress and the UML were in power. This theory of party leaders like Bam Dev Gautam and Khum Bahadur Khadga tacitly aiding the insurgency during their respective tenures as Home Minister proved right when the same bunch of leaders signed the agreement with the Maoists. This agreement was defective, shady and flawed from the day it was inked as has been realized by the envoy of the world's only superpower.

Now, if the present government bans the political parties and declares those that tie nuptial knots with the Maoists as "terrorists" themselves, it seems that there won't be such a degree of international criticism as one would like to imagine. The publication of a caricature of prophet Mohammad by a Danish newspaper has already started global debate on whether the press should be allowed to publish anything in the name of press freedom. The Malaysian government immediately banned a 60-year-old newspaper for re-printing the same cartoon. In our case, those newspapers that openly favor the Maoist propaganda have been allowed to operate and yet the government continues to get the blame for harassing the media.

The second element of Moriarty's statement is overtly directed towards India. Every sane mind knows that top Maoist leaders live and give out their directives to their cadres from within the Indian territory. Lately, several interviews have been taken of the Maoist leaders from the Indian capital. It is anybody's guess that India very well knows where Prachanda and Baburam are hiding but does not want to arrest them for some future usage that they have vis-a-vis the give and take that may take place between the monarchy and the Government of India. The 12-point agreement definitely had the tacit Indian consent. Some reports even suggested that the Government of India itself had engineered the understanding in order to pressure the King.

But ambassador Moriarty's compos mentis speech suggesting that the agreement was "ill-intentional" clearly indicates that the world's only superpower is against India's unnecessary meddling inside Nepal's internal affairs. The publicity that the U.S. and India were in tandem in their respective Nepal policies has fallen flat after Moriarty's speech. It has obviously embarrassed Delhi to a great deal.

Everything that was "achieved" in the post February First period has been lost by a single statement. India has thus wasted one full year in Nepal which could have been well used in nurturing the present government and in achieving concrete things in security, political and economic areas. Besides, it now seems that the US has started looking Nepal from the Chinese window as they have been doing as regards to other countries in the region.

After all, Moriarty is a known China expert in the State Department and speaks fluent Mandarin, he has years of experience in Beijing and Taipei. This will be dangerous to India's long-standing unique bond with SAARC countries like Bangladesh, Bhutan and Sri Lanka. With Pakistan, the American policy is exactly the same as that of the Chinese policy. What is even more astounding is that the Chinese ambassador in New Delhi openly said that his government is ready for assisting in the peace talks with the Naxalites of the entire sub-continent who use the name of Mao-zee-Dong. Therefore, from every rational standpoint, Delhi should not delay in keeping the Narayanhiti royal palace in good humor before it is too late and before the U.S-China axis from within Nepal begins to take shape of the Pakistani variety.

His Majesty the King, on his democracy day message, called for reconciliation but the 7 parties, obdurate and inflexible as they are, have rejected his call for a dialogue. It must be well understood that the product of reconciliation is a change of the government not the other way around. Former MPs who were last elected 7 years ago do not represent the will of the sovereign people and if they claim that they still do, they must cave in their over-sized egos for their own common benefit or else have the fortitude to contest the general elections.

Moriarty has thus told clearly to every power centre in Nepal that terrorists everywhere whether it is Osama Bin laden and al Qaeda, LTTE, Hamas or the Maoists of Nepal are basically the same. Their tactics of terror and intimidation are the same. They kill civilians and give the pretext of "empowering the people" in the name of violence. They are all terrorists and one should not negotiate with them until they give up arms.

America has been utilizing a military solution to the al Qaeda problem and Nepal should also do the same by requesting for necessary arms and ammunition to defeat terrorism within Nepal. If peace can only be achieved by "talking" with the Maoists, then a good example must be set by those that preach this noble idea. There should be no double standard.

If Nepal should negotiate with the Maoists by agreeing on a 12 point understanding, the EU also should first formally invite Osama Bin Laden to Brussels to hear his genuine concerns and problems. If Nepal Television should not try to interview Prabhakaran and his gang of murderers or the leaders of ULFA and BODO; then The Times of India, The Hindu, BBC and other media should also not publicize Prachanda and his idiotic verse of nonsense that everybody finds insane.

Will the Government of India allow Nepalese journalists to interview and thereby mystify the terrorists who planted bombs in the parliament of India? What will be the Indian reaction if Nepalese media start writing editorials that it is high time that Delhi begins realizing that without an independent Kashmir, the problem of the people of Kashmir will not be resolved?

Therefore, it is now Delhi's turn to follow-up on Moriarty's genuine and truthful statement and not embrace the Nepali Maoist leaders as if they were different to its own Naxalites running wild from Bihar to Chattisgarh and all the way to Andhra Pradesh. Since its ambassador at the India House has already said that "political parties in Nepal can use the Indian card", Delhi must clearly tell the political parties that if they are to co-exist and survive, they must reciprocate the call of the monarch for a reconciliation.

Nepal established diplomatic relations with the United States of America before it did with India and China. Sometimes, we are forced to appreciate the Ranas for some of the far-sighted decisions that they took during their 104-year rule.

Indian Expansion - An Outline: Nepal - Dev Nathan, Journal of Eelam Studies, Summer 1989

[*Since the paper was written in May 1988, it does not cover the subsequent efforts by the Indian Government to subjugate Nepal economically - Ed.]

Unlike Sikkim, Nepal was never a protectorate of the British. The British preferred to maintain it as an independent state, as a buffer between British India and China. The 1923 treaty of peace and Friendship recognised Nepal as an independent and sovereign state. On the eve of the transfer of power, in July, 1947, Britain reaffirmed Nepal's independence when their respective legations in Kathmandu and Nepal were raised to the embassy level.

Well before this, however the seeds of India's domination of Nepal had been sown. The Nepalese Terai contained a population of largely Indian extraction. Marwari and other Indian traders had spread through the country, occupying key positions in trade and commerce. They sold industrial products manufactured in British India and sent back rice and other agricultural commodities in return. In the second half of the thirties Indian big business groups set up jute, sugar and match factories in Nepal, (Lama, 1986. 150).

While encouraging a movement against the autocratic Ranas, the GOI signed the 1950 Indo-Nepalese Treaty, a treaty that holds even today and legalises some aspects of the unequal relations between Indian and Nepal.

According to Article 6 of the treaty, the Governments of India and Nepal agree to grant on a reciprocal basis to the nationals of one country in the territories of the other the same privileges in the matter of residence, ownership of property, participation in trade and commerce, movement and privileges of a similar nature. This combined with free movement across the borders and the full convertibility of currency has enabled Indian traders, contractors and industrialists to buy up economic assets in Nepal and dominate its economic life. The granting of formally equal rights only legitimises inequality, as the Indian migrants to Nepal are essentially businessmen of various hues, while the Nepali migrants to India are Gorkha soldiers and low-paid labourers, working in hotels, restaurants and as domestic help.

The letters exchanged with the Treaty spelt out the military aspects

(1) Neither Government shall tolerate any threat to the security of the other by a foreign aggressor. To deal with such a threat, the two Governments shall consult with each other and devise effective counter measures.

(2) Any arms, ammunition or warlike material and equipment necessary for the security of Nepal that the Government of Nepal may import through the territory of India shall be so imported with tire assistance and agreement of' the Government of India.

(3) Both Governments agree not to employ any foreigners whose activity may be prejudicial to the security of the other

What this effectively does is to tie down Nepal to India's perception of the military situation. The GOI can further determine the arms that Nepal may buy. The GOI has done this not only with regard to arms purchased through India, but all arms purchased by Nepal.

In 1987 the GOI objected to Nepal's purchase of anti-aircraft guns from China (India Today, Dec. 15, 1987). Nepal's right to employ any foreign nationals, of its choice is restricted by India's necessary agreement. Faced with the growing conflict in South Asia, Nepal has proposed that it be declared a zone of peace. India has objected to this on the ground that it implies a revision of the 1950 treaty, which forces Nepal to act on the basis of Indian military perceptions. Neutrality, when India is one of the partners in the conflict, is something that India is determined not to allow Nepal.

Nepal is a land-locked country, or, rather, as it has sometimes been described an India-locked country. India has used this position to force various harmful "Trade and  Transit Treaties" on Nepal. The first Treaty of 1950 forced Nepal to levy export duties on Nepalese manufactures equal to Indian excise duties so that Nepalese manufactures may not become competitive. The Treaty prohibited Nepal from selling its good in third countries at rates cheaper than those in India. It imposed GOI control on the foreign exchange earned by Nepal, which was deposited in the Reserve Bank of India. Further, all goods imported by Nepal through India, were charged import duties at Indian rates. These monies were later refunded, not to the Nepali importers but to the Nepali Government.

What India had imposed on Nepal was a customs union, an area within which trade would be free, while the area would face the rest of the world with common import duties. Export duties on exports of Nepali manufactures to India equivalent to Indian excise duties, were aimed at discouraging Nepali manufactures. Food and other primary products from Nepal faced no such duties, thus their export was encouraged relative to that of manufactures.

At the same time imports by Nepal from third countries faced import duties at the same rates as levied by India. Thus, Indian manufacturers got the same protection in Nepal that they did in India. The scheme of returning these import duties to the Nepali Government, only made the Nepali Government a party to the destruction of Nepali manufacturer; it did not change the economic effects of the customs union.

As one study pointed out, "Urban petty manufacturing of 'industrial' goods has become increasingly threatened compared with the growth of new forms of production and servicing, by 'the Indian connection', which demonstrates the extent to which small scale 'industrial' enterprises are dependent on large scale factory production outside Nepal. The former includes brass and clay pot makers, straw mat weavers, and makers of bamboo screens or winnowing trays; and the latter motor mechanics, watch and radio repairers, and tailors using imported Indian cloth". (Blaikie et al, 1980, 56)

Questions of trade and transit have continued to be major issues in Indo-Nepalese relations. The GOI has insisted on clubbing together trade and transit, so that it can make use of Nepal's weakness in transit to force concession on Matters of trade. Nepal, on the other hand,. has been trying to get the two issues delinked and separate treaties entered into for both. It was only in 1978, during the Janata Party rule in Delhi, that the GOI agreed to enter into separate treaties for trade and transit.

The GOI has frequently used strong-arm tactics to force Nepal to accept its dictates. In 1971 there was a virtual economic blockade of Nepal, prior to the new Indo-Nepal Treaty (1971) being signed. India stopped supplies of petroleum products and Nepal was threatened with a virtual transport shutdown. Nepal had to give up its demand to separate trade and transit and to agree not to raise the tariffs on new industries (conceded in the 1960 treaty.) This economic blockade was the culmination of a series of trade measures in the late sixties.

As Nepal undercut India in raw jute and stainless steel utensils and synthetic fabrics that came into India (the factories for their manufacture in Nepal having themselves been set up by Indian business groups) the GOI in 1969 banned all imports of textiles from Nepal. At this time Nepal had also approached China for help in cotton cultivation in the Terai. The GO I insisted on keeping the Chinese out of the Terai and responded with an economic blockade.

Keeping the Chinese out of any projects in the Terai has been a clearly enunciated aim of Indian policy. The reason is supposed to be one of defence, but what this actually means is that of keeping Nepal as dependent as possible on India. To make sure that no project in the Terai goes out of Indian hands, the GOI has even used outright military, pressure. After China was awarded a contract to build a section of the East West Highway in the Terai, the Indian Army was moved into position along the Nepalese border and remained there till Nepal agreed to cancel the Chinese contract.

The net result of India's economic thrust, backed up by continuous pressure from the Indian Government, is that Nepal's exports are chiefly primary products, maize, rice, herbs, ghee, dried ginger, timber and jute. Some of these, like wheat, ghee and oil seeds, are re exported to Nepal in processed form. India's exports, on the other hand, are of a variety of manufactured goods, chiefly chemical and drugs, metal manufactures, and machinery and transport equipment.

The classical colonial pattern of the nineteenth century free trade (primary products versus manufactures) is the pattern Indian has imposed on Nepal. This pattern is reinforced by government pressure, and its aid programme. Needless to say, Nepal's terms of trade with India have deteriorated in line with the fall in primary  goods prices relative to those of manufactures.

The trade pattern has also led to a large deficit for Nepal, to cover which Nepal has, at times, had to convert several million dollars worth of hard currency into Indian rupees. Having a currency that is freely convertible in to Indian rupees, the Nepalese official exchange rate with  the dollar is determined by India. Nepal's trade deficit with India is largely covered by the remittances of the cheap labour it provides to India.

Besides the colonial trade relation, and the supply of cheap labour there is also the use or rather destruction, of Nepal's natural resources to India's advantage. The Kosi multi-purpose flood control power-irrigation project is one such. There were differences on the compensation to be paid for Nepali lands acquired for the project. The projects have resulted in a continuous soil erosion, while yielding negligible benefits in irrigation and flood control to Nepal (Lama, 1985, 130)

The stranglehold of Indians over trade and commerce, particularly in the Terai has already been mentioned. Many of these traders have for convenience taken Nepal citizenship, but they retain all other business and family links with India. Othcr traders areIndian citizens. It has also been mentioned that Indian investments in industrial enterprises began in the late 1930s. After world war II some of the Indian business groups set up joint enterprises in collaboration with the local Nepali businessmen, compradors of compradors, as the Indian business groups had themselves set up their industrial ventures in collaboration with the TNCs. Since then some industrial units have been set up by Indian business groups. Below, a few of the units have been mentioned. But, as noted by Morris (1987), the official number of Indian joint ventures is almost certainly an underestimate.

The Sahu Jain group set up a sugar mill in 1963; Dhirajlal, Brijlal of Calcutta a starch and glucose factory. Birlas have a zinc and lead project in which they hold 25% of the shares, with another 25% being held  bv Golden Moffit and Associates of U.K. Union Carbide of India Limited  have a dry cells plant. In Nepal Orind Magnesite, Orissa Industries hold '25% of the shares and the unit has a technical collaboration with Harbingar Walkar of USA. The ubiquitous Oberois have a hotel, while the Mohan Meakin group brew beer. These are also units for manufacturing of glue and conversion of wood into splinters. (All the above information from Lama, 1985)

The Indian joint enterprises in Nepal fall into two clear categories.

First, those in which the technology is quite standardized, as is the case with textile mills, beer brewing, sugar mills and so on.

Second, those in which the enterprise has a partner from the imperialist countries, in financial and/or in technical collaboration.

This confirms the earlier conclusion about the nature of capital export from India. In the case of Nepal, however, the virtual customs union between India and Nepal, which give Indian manufactures an access to the Nepali market just as though it were an Indian state, has inhibited Indian investment in Nepal. Selling to Nepal is more profitable than investing there. As a result the bourgeosie that does grow in Nepal is linked to the Indian bourgeoisie, running repair shops and service centres for machinery and equipment manufactured in India, or using Indian equipment in small establishments like tailoring shops.

India is by far Nepal's largest trade partner and aid giver. The customs union forced on Nepal has helped India maintain its position in Nepal's trade, a position reinforced by the Indian aid programme.

It was in the mid 50s, that India became Nepal's largest aid-giver, a position it has held since. Aid, of course, is a means to promoting trade. The sectoral distribution of aid shows to what extent this programme is meant to benefit India. More than 50% was for building roads and airports. Besides their strategic military importance, these means of communication help the spread of Indian factory made goods into the far corners of Nepal, destroying the local handicrafts like basket weaving and pot making, building up in its stead a class of comprador merchants based on the sale of Indian factory made goods. This process is very familiar to Indians who know of the role played by the railways in Britain's imperial scheme.

Productive activities like agriculture, horticulture and industries, or beneficial activities like education and health, altogether got less than 8% of the total aid. The other major sector to which Indian aid went has been "irrigation, power and water supply". As already pointed out, this was meant to benefit India and not Nepal. If anything, Nepal has paid the cost in terms of soil erosion and other forms of ecological degradation.

Sectorwise Aid Commitment by India in Nepal, 1951-72
Sector Percentage
Roads and Airports 52.6
Posts and Telecommunicat ions 1.1
Irrigation, Power and Water Supply 33.1
Horticulture, Agriculture, Veterinary & Forest 1.2
Community and Panchayat Development 3.8
Education and Health 0.8
Industries 0.5
Archaeology, Archives and Surveys 6.9
Technical Assistance and Training 1.6
Source: Dewan C Vohra, India's Aid Diplomacy in The Third World, 1980  

 Consequent upon this aid programme, Dewan Vohra (1980) has estimated the number of Indian experts in Nepal to be around 100,000

Decade of Insurgency - Chronology

1996: Maoists begin fighting monarchy.

April 1998: Maoists turn down government offer for talks.

September 2005: Maoist rebels announce unilateral cease-fire, which the monarchy rejects.

November 2005: Maoists enter into loose alliance with the seven main political parties to try to end king's rule.

January 2006: Rebels end cease-fire.

April 24: King forced to reinstate parliament, dismissed in 2002, after 19 days of popular protests leave 19 dead.

April 27: Maoists declare three-month cease-fire. Three days later, prime minister offers talks, which occur June 16.

June 10: Parliament revokes king's power.

June 19: Government, Maoists agree to dissolve parliament and set up interim administration that includes rebels.

July 4: Nepal invites UN to monitor weapons held by rebels and government.

July 14: Maoists refuse to surrender arms.

July 28: Maoists extend cease-fire by three months as talks begin with a team of UN officials.

Aug. 9: Government, rebels agree to confine their troops, weapons to temporary camps under UN supervision.

Nov. 8: Prime minister, rebel chief sign the comprehensive peace deal.

Source: Reuters


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