Jaswant visiting Nepal to build new ties

By C. Raja Mohan

NEW DELHI, AUG. 16. The External Affairs Minister, Mr. Jaswant Singh, arrives in Nepal tomorrow on a three-day goodwill visit to establish political contact with the new leadership of the Himalayan Kingdom.

Mr. Singh, who also holds the charge of the Defence Ministry, will be the first high-level political visitor from any country to visit Nepal since the tragic massacre in the revered royal family on June 1.

As he engages the new King and the Prime Minister of Nepal, Mr. Singh is likely to convey the strong Indian commitment to build a new partnership between the two nations.

At a time when the political establishment in Kathmandu is struggling to cope with the political challenge from the spreading Maoist insurgency, Mr. Singh is likely to signal New Delhi's strong interest in the stability and security of the Kingdom.

Mr. Singh will have an extensive round of talks with the Prime Minister, Mr. Sher Bahadur Deuba. He will also call on King Gyanendra. The Government hopes Mr. Singh's talks will reassure the Nepal leadership of the enduring Indian commitment to a cooperative relationship with its very special neighbour.

At the same time Mr. Singh is also likely to convey India's hopes for greater predictability in the ties between the two nations that have gone through many ups and downs in recent years.

Meanwhile, India has told Nepal it wants a review of the 1996 trade treaty before deciding to extend it for another five years. New Delhi has also proposed talks on the subject to Kathmandu. The Indo-Nepal trade treaty signed in December, 1991 calls for its automatic renewal for another five years unless either side raises objections.

Official sources here say the decision to seek a review of certain provisions of the treaty in no way implies that India wants an abrogation of the treaty.

They point to the many positive results from the treaty, which has seen a five-fold increase in Nepal's exports to India. Nearly 50 per cent of Nepal's exports worldwide now head to the Indian market. India, however, has some concerns, in particular the inadequate ``rules of origin'' in the treaty. As a result, Nepal has become a trading conduit rather than an attractive base for value addition before export to India.

New Delhi believes that clear rules of origin and their effective implementation will benefit both sides by promoting manufacturing activity in Nepal and preventing the dumping of goods manufactured elsewhere on the Indian market.

Mr. Singh is unlikely to go into a detailed technical discussion of either trade or a whole range of other contentious issues between the two countries.

But it will be Mr. Singh's endeavour to send a strong political message that the Government is ready to address seriously all issues of mutual concern on the basis of equality and common benefit.

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