INSTITUTE OF FOREIGN AFFAIRS

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1 Vol. 1 August January 2011 Dr. Bhekh Bahadur Thapa, Dr. Madan Kumar Bhattrai, Mr. Tika Jung Thapa, DPM & FM Sujata Koirala & Mrs. Anjan Shakya at the Seminar on Challenges of Nepal s Foreign Policy, Hotel Malla, (From L to R) on 9 August 2010 Chief Guest DPM & FM Ms. Sujata Koirala at the Seminar on Sino-Nepal Relations: Harmonious Friendships, Hotel Malla on 26 August 2010 Distinguisted speakes at the Seminar on South Asia-RoK Patnership: Future Prospects, Hotel Soaltee 18 Nov 2010 News Brief National Ä Concern Over Peace Process Bilateral Ä India s special emissary to Nepal Regional Ä SAARC gets a first woman secretary general International Ä Nepal set to Chair LDC global coordinating bureau Programmes Executed Ä Challengs of Nepal s Foreign Policy Ä Sino-Nepal Relations Ä Investment Opportunity Ä South Asia-RoK Partnerships Upcoming Ä Training new officials Ä National seminar on LDCs Featured Articles Ä Nepali Youth: Potential and Reality Ä Living with imperfect systems Ä Political salience of Nuclear Weapons INSTITUTE OF FOREIGN AFFAIRS

2 IFA Introduction Editorial Conceived as a catalyst body for generating national consensus on foreign policy issues, the Institute of Foreign Affairs also caters to professional training needs of Nepalese officials servicing in foreign affairs offices of the Nepali government. As a think tank IFA delves in research studies on matters of national interest particularly Nepal s relations and conduct with foreign countries. IFA works with its partner organizations, governmental as well as non-governmental, at home and abroad, to realize its objectives relating to foreign policy issues and its interactions with political, economic, social and cultural areas. Besides organizing seminars, workshops, meetings and conferences and bringing out relevant publications, it is also engaged in the task of becoming a repository of information on Nepal s foreign policy issues. Founded as an integral part of the Ministry of Foreign Affairs in 1993, it got reconstituted as a semi-autonomous body in the year Honourable Minister of Foreign Affairs heads the Board of directors of the Institute and the Foreign Secretary represents the ministry as a member to the Board. The Executive Director of the Institute, presently Mr. Tika Jung Thapa, looks after the day to day operations. Supporting Staff Mr. Bimal Raut Mr. Rajeev Kunwar Mr. Sanu Raja Puri Mr. Mahendra Prasad Joshi Ms. Binita Shrestha Mr. Subhash Lohani Ms. Dipa Neupane Published by Institute of Foreign Affairs Tripureshwor, Kathmandu Tel.: /55 Fax: ifa@mail.com.np URL: Institute of Foreign Affairs has made an attempt to combine several interesting features including news, programs and feature articles in the current bulletin. Additionally, it appears that some efforts have been made to classify news during the reporting period under four broad categories: national, bilateral, regional and international. It is believed that the present bulletin will cater to the varied needs of the readers in a simplified manner. It would also provide focused reading to students of international relations on the subject of their interest. Actually, this bulletin can be treated as a gateway to the study and understanding of foreign relations of Nepal at the bilateral, regional and international levels. In spite of a considerable length of time spent in the editing of this publication, it has its limits owing to either excessive coverage or less coverage of events as maintained by the Institute of Foreign Affairs. Nevertheless, activities of IFA outlined in the first section of this bulletin have been enriched by activities that were carried out by the Nepalese missions abroad. Summary reports of four seminars held by IFA in collaboration with partner organizations provide a glimpse of Nepal s engagement with foreign countries at different planes. Overall, it is believed that this bulletin, the first of its kind, will be useful to the Nepali public, particularly the students keen to understand Nepal s engagement with foreign countries. The editorial team wishes to express its gratitude to the Executive Director of IFA for his guidance and direction. The team is thankful to the entire staff of IFA for their full support and cooperation in making the relevant materials available in time. Mr. Rajeev Kunwar, research and publication officer of IFA and Dr. Bal Bahadur Mukhia, deserve thanks for this studious effort during the preparation of this bulletin. Binod P Bista Advisor/IFA, Distinguished Speakers at the Seminar on Investment Opportunity in Nepal, Hotel Himalaya, on 30 September 2010 Audience at the Seminar on Challenges of Nepal s Foreign Policy, Hotel Malla on 9 August 2010 DPM & FM inagurating the Seminar on Challenges of Nepal s Foreign Policy, Hotel Malla by lighting a traditional lamp on 9 August 2010 Chief Guest & Audience at the Seminar on Investment Opportunity in Nepal, Hotel Himalaya on 30 September 2010 Printed at: Heidel Press Pvt. Ltd. Dillibazar, Ktm, Tel: , The views expressed in the articles do not necessarily reflect the views of the IFA South Korean Ambassdor to Nepal H.E. Mr. Hong Song Mog delivering his remarks in the Seminar on South Asia-RoK Patnership: Future Prospects, Hotel Soaltee, on 18 Nov 2010 Chinese Participants at the Seminar on Sino-Nepal Relations: Harmonious Friendships, Hotel Malla on 26 August 2010

3 Table of Contents Editorial Table of Contents i Foreword ii IFA News (a) Institutional Exchanges and Visits 1 (b) Institutional Communication 1 (c) Initiatives in Economic Diplomacy and others 2 National Issues 5 Bilateral Issues 7 Regional Issues 11 International Issues 12 IFA Programmes 1. Challenges of Nepal s Foreign Policy Sino-Nepal Relations: Harmonious Friendships Investment Opportunity in Nepal Republic of Korea and South Asia Partnerships: Future Prospects 16 Upcoming IFA Activities 1. Training of new officials of the Ministry of Foreign Affairs National level seminar on LDCs 18 Featured Articles 1. Nepali Youth: Potential and Reality Living with Imperfect Systems Political Salience of Nuclear Weapons 24 i

4 Foreword by ED First, I wish to announce the release of a news bulletin of the Institute of Foreign Affairs in a completely new format and design. Care has been taken to make it a more readable publication by combining brief information on news events, activities undertaken, organized programs and relevant articles covering various aspects of our interactions including, of course, foreign relations. This issue is divided into four distinct parts: IFA related matters; issues of national, bilateral, regional and international importance; program summaries; and last but not the least brief papers contributed by both the IFA staff and outside experts. The period under review covered in this bulletin signifies an important shift of ownership and supervision in Nepal s peace process, from the United Nations Mission in Nepal (UNMIN), to a national body, namely, Special Committee on Integration and Rehabilitation of Maoists combatants in a smooth and professional manner. Our contiguous neighbours have shown serious concern on the bleak state of affairs of our country. Special emissary and high level delegations from both countries visited Nepal to exchange views on the progress of the peace process and constitution making, utterly essential to maintain stability, peace and security in the country. In the regional affairs SAARC is getting its first female Secretary-General from the Maldives. That country is hosting the 17th SAARC Summit in November. The issues slated for discussion at the upcoming Summit have to do with climate change, poverty and terrorism that must be resolved urgently. Also, there is a pressing need that must be undertaken in a concerted manner for confronting the wrath of natural and manmade disasters affecting the lives of the people of the region. In the international affairs Nepal, as the chair of the coordinating group of the Least Developed Countries, has to exhibit a proactive role at the fourth LDCs meeting in Istanbul, Turkey. Graduation from this category requires ceaseless and relentless effort, and time is apt for Nepal to set a historic example in getting international attention and assistance to this ensemble. Lacking political stability and still mired in confusion over the completion of the peace process and constitution making places Nepal in a bad spot for any of its regional and international initiative as reflected in its failed bid for the Presidency of the General Assembly of the United Nations. I wish to thank all the staff of IFA for their cooperation and support extended to me for the completion of this publication. I am grateful to the contributors of write ups which have further enriched the content of this publication. I hope you will find this publication up to your mark. Any suggestion or criticism with a view to improving the standard and quality of this bulletin in future will be warmly welcomed. Tika Jung Thapa Executive Director ii

5 IFA News (a) Institutional Exchanges and Visits 1. At the invitation of Mr. Tanvir Ahmad Khan, Director-General of the Institute of Strategic Studies, Islamabad, Executive Director Mr. Tika Jung Thapa visited Pakistan from 1 st to 8 th November Mr. Thapa held discussions with DG of ISS and exchanged views on mutual, regional and international issues. They agreed on strengthening mutual areas of cooperation between the two institutes. Mr. Thapa expressed sympathy to the victims of natural disaster in Thatta. He held discussions on current affairs confronting both the countries with a broad spectrum of civil society leaders, intellectuals and distinguished individuals and media personnel. 2. Executive Director Mr. Tika Jung Thapa along with IFA Board Member Mr. Rakesh Hamal and Advisor to IFA Mr. Binod Prasad Bista visited the Republic of Korea (RoK) at the invitation of the government of RoK from 13 th to 20 th December The IFA team held talks with the officials of the Ministry of Foreign Affairs and Trade, Ministry of Strategy and Finance, Institute of Foreign Affairs and Security, and Korean International Cooperation Agency (KOICA) in RoK. The Nepalese side expressed its desire to expand institutional ties and sought further cooperation in the capacity building of IFA. 3. A Nepalese delegation led by Minister of Foreign Affairs Madam Sujata Koirala visited China for the inaugural ceremony of the Institute of Himalayan Studies (IHS) at Southwest University of Political Science and Law (SWUPL) in Chongqing from 26 th to 29 th December The IHS institute is a joint venture project supported by IFA, Nepal and TV Journalists Association of Nepal as well as Tshingua University and SWUPL of China. While IFA Executive Director Mr. Tika Jung Thapa, IFA Board Member Mr. Rakesh Hamal, Advisor to IFA Mr. Binod Prasad Bista represented IFA, Mr. Himal Neupane participated on behalf of Nepal Television. Joint Secretary at the Ministry of Foreign Affairs Mr. Rudra Kumar Nepal accompanied the Deputy Prime Minister and Minister of Foreign Affairs. (b) Institutional Communication 1. To further expand institutional relations IFA officials met senior staff of the Embassy of the United States of America and discussed on specific areas of cooperation. It included discussion on economic matters especially strengthening institutions of manpower planning and development, international relations matters and capacity building of IFA. Ambassador Scott H. Delisi expressed his pleasure in meeting with IFA Executive Director and his team and assured his support in IFA activities. 2. Similarly, IFA officials held a meeting with senior diplomats of the Embassy of Finland seeking help in establishing institutional ties with like-minded Finnish Institutes, if possible. It was informed that the Finnish institutes exclusively serve their ministries and the government and may not be possible to go for joint collaboration at this stage. 3. The discussion agenda of Executive Director Mr. Tika Jung Thapa and Australian Ambassador H.E. Susan Grace centered on establishing and strengthening of relations between IFA and the embassy and some like-minded institutes of Australia. The Australian envoy informed that her embassy s focus at the moment was given to agriculture, food and climate change. Since Australia is also involved in capacity building of Nepalese civil servants and others, IFA through a letter expressed its desire to avail of the capacity building opportunity to some of its staff. 3

6 4. With its desire to expand collaboration with diplomatic mission, IFA officials likewise met the diplomatic head of the French Embassy and discussed further cooperation on cultural matters and heritage. It touched upon capacity building exercise of national institutions such as the IFA and other national institutions of Nepal. 5. Mr. Tika Jung Thapa, Executive Director of IFA met the senior staff of the EU Delegation to Nepal, Embassies of Myanmar, Bangladesh, Norway and United Kingdom regarding matters of mutual cooperation and support and facilitating to set up institutional ties with similar think tanks institutes of their country. 6. Mr. Tika Jung Thapa also met the senior staff of the Swiss Embassy in Nepal to explore an appropriate balance between diplomacy and development. (C) Initiatives on Economic Diplomacy and others Apart from IFA s own efforts in pursuing matters relating to economic diplomacy directly it also sought support from Nepalese embassies abroad. In this context status reports were received from the Embassies in the United States of America and France as follows: A report from the Embassy of Nepal, Washington D.C. during 2010: H.E. Dr. Shankar P. Sharma, Ambassador of Nepal to the US made a presentation to about 100 participants that included media representatives and travel and tour operators about the Tourism Potential in Nepal on May 28, 2010 at Irvin, Texas. Dr. Sharma had addressed the 3rd NRN Regional Conference organized by the NRN USA in Houston, Texas urging Nepali Diaspora to mobilize their expertise and resource for Nepal s socioeconomic development. He participated in the promotion campaign for Nepal Tourism Year Dr. Sharma inaugurated the Office of Nepal s Honorary Consul (Mr. Prem Raja Mahat) to Maryland and Pennsylvania on October 23, He shed light on the responsibility of Honorary Consul in safeguarding the interests of Nepalese community members in the jurisdiction of the Consulate and in promoting trade and investment relations between Nepal and the US. The then Minister for Tourism and Civil Aviation Mr. Sharad Singh Bhandari held interaction with the travel and tour operators and airlines representatives in Washington D.C. on November 8, Mr. Bhandari urged the airlines and travel representatives to include Nepal in their selling package to encourage the American tourists to visit Nepal during A report from the Embassy of Nepal, Paris: The Embassy organized an interaction programme for the promotion of tourism in Nepal which was participated by tour operators, representatives of Nepalese and French associations based in Paris. An interaction programme on a long standing contribution of French and Nepalese organizations was organized by the Embassy with the participation of their representatives and media personnel. On the occasion of celebrating 60 years of diplomatic relations between Nepal and France on 20 April 2009 photo exhibition and pictures of Nepal-France relations were held at the Nepalese Embassy Chancery on 20 April In cooperation with the Nepalese cultural organization the Embassy held Nepal Festival in Vincennes on May 2009 and tourism promotional activities were conducted in Pontcarre in Similarly in January 2010 tourism promotional activities were conducted at St. Sebastian Sur Loir. Peace rally was held on the occasion of the birth anniversary of Lord Buddha. In 2010 again Nepal Festival was held on Vincennes, Paris and then in Lyon by Soleil Vert. Tourism related programmes were held and presentation was made on June The Ambassador participated in a programme in honour of the French Mountaineering team. He met the Mayor of Vendome and deputy-mayor of Marseilles. He inaugurated Nepal Tourism Year 2011 at Place de Joffre near Paris. 4

7 1. National Issues This transition period saw important developments in Nepal s domestic front. There was a repeated call from various quarters including many members of the Constituent Assembly for the formation of a national unity government to resolve outstanding issues and complete the task of constitution making and peace process within stipulated timeframe. Besides the government s objection, former Nepalese Foreign Ministers taking the United Nations Secretary General s report of the United Nations Mission in Nepal (UNMIN), as against the spirit of Comprehensive Peace Agreement, has virtually ended UNMIN presence in Nepal. However, an alternative mechanism was put in place whereby the command and control of Maoists combatants has finally come under the Special Integration and Rehabilitation Committee comprising major political parties. In the area of Millennium Development Goals, a third report of Nepal mentioned that the country is close to achieving the eight goals but it must also pay attention to reduce inequality and social exclusion to achieve the MDGs and establish an everlasting peace. Nepal is leading in utilizing alternative technologies to tackle climate change. Former Foreign Ministers Slam Report (Sep 7) Four former foreign ministers Mr. K P Sharma Oli, Mr. Chakra P. Bastola, Dr. Ram Sharan Mahat and Dr. Prakash C. Lohani have taken a strong exception to the then report of UN Secretary General Ban Ki-moon, stating that the report is against the spirit of the Comprehensive Peace Agreement (CPA). They officially filed an objection through the office of the UN Resident Coordinator in Nepal, asking Mr. Ban to either retract or rectify the report in question. The objection letter says the tone and content of the report violates the essence of Nepal s Comprehensive Peace Accord and related agreements. The contentious issue has been the treatment of Nepal Army in parallel with the Maoist combatants. (Source: The Republica) Parties divided over UN mission presence (December 21) Major political parties were divided over the issue of extending the tenure of UNMIN beyond January 15. The UN political mission continued presence until the May 28 deadline of the CA was desired by the Maoist party whereas both Nepali Congress and the CPN-UML are against the idea of making a new request for its prolongation of stay. However, both remain open on the role of the UN agency after its termination in rehabilitating the Maoist combatants. One NC leader and the party s representative in the Special Committee on Integration and Rehabilitation said his party was ready to accept UNMIN s extension with a reduced mandate. Its standing position is to keep the Nepal Army away from the purview of UNMIN and then it is ready to accept the proposal for tenure extension. CPN UML s position in this regard is to provide some kind of a role for the UN agency in the Nepalese process. It would not completely shun UN s continued engagement in the peace process. P5 countries of the Security Council are very clear according to an UNMIN official that political mission will be closed after mid-january and further says that the alternative mechanism be put in place based on national consensus. A Maoist Standing Committee member said they are willing to bring combatants under the Special Committee and regroup them in three categories based on their choices before dismissing the current mandate of UNMIN. One of P5 members of the SC welcomed the separation of former combatants from the party and looking forward to seeing it implemented. UNMIN chief Ms. Karin Landgren leaves for New York on Jan. 1 to brief the Security Council on the developments in Nepal s peace process. An UNMIN official said that the parties are requested to do the earnest decisions including the demand for the high-tech monitoring equipment by the first week of January if they want them to be addressed by the UN. In her 5

8 talks with Mr. Rakam Chemjong, Ms. Landgren said that it would take an additional four months after Jan.15 for the UNMIN to complete the liquidation of the mission and suggested sending a consensual request on borrowing containers and monitoring devices for the interim period. (Source: The Kathmandu Post) Peace process in jeopardy Ms. Landgren says to UNSC (January 7) UNMIN Chief Ms Karin Landgren has said that there is a growing apprehension in Nepal about derailment of the peace process and that a UN supported peace is likely to be deadlocked. Ms. Landgren cautioned the UNSC doing her presentation of final report on Nepal s peace process. UNMIN is due to leave on January 15. (Source: The Himalayan Times) Landgren s good will and PM asks for UN Support (January 16) Outgoing chief of the UNMIN Ms. Karin Landgren paid a farewell call on PM Madhav Kumar Nepal. During her meeting she expected that Nepal s peace process would move ahead smoothly after hinting of 3 point deal by the government and the Maoists. On Friday evening Ms. Landgren hoped that the said deal would assist in giving continuity to the tasks of monitoring of the arms and armies which were undertaken by the UNMIN. This major agreement on Nepalese peace would transfer the responsibilities owned up by the UNMIN to the Secretariat of Special Integration and Rehabilitation Committee. Premier Nepal and Ms. Landgren exchanged thanks for supporting each other throughout UNMIN s existence in Nepal. Mr. Nepal also asked Ms. Landgren for UN s continuous help to the country from the UN and international communities. (Source: The Rising Nepal) UN, US, India praise PLA handover (January 23) The United Nations which has been assisting Nepal s peace process for long, the US and India have praised the command and control of the cantonment handover to the Special Committee on Supervision, Integration and Rehabilitation of Maoist combatants. They noted it as a positive development in the peace process with the departure of UNMIN. (Source: The Republica) MoFA s New Envoys on the Mission Cabinet recommended the names of four bureaucrats of the Ministry of Foreign Affairs (MoFA) as envoys to Brazil, South Africa, U.A.E. and the Permanent Representative to the United Nations (UN). Mr. Pradyumna Bikram Shah, Mr. Arun Dhital, Mr. Madhuvan Poudel and former Foreign Secretary Gyan Chandra Acharya have been recommended as envoys respectively. (Source: N/A) Nepal close to achieving MDG s: Report (Sep 7) Nepal is close to achieving several of the eightglobally agreed Millennium Development Goal s (MDG s) related to poverty, education, health, and environmental sustainability, said country s third MDG Report. It further says that striking progress has been made in various MDG indicators. UNDP in a press statement said that two-third of the way towards the 2015 MDG finishing line, the country should focus on eradicating inequality and social exclusion to achieve the MDG s and to sustain peace. It lauds impressive efforts undertaken by Nepal despite a decade long internal conflict. The report mentions that poverty came down to 25.4% in 2009 from 42% in Nepal has already achieved the 2015 target of bringing down the undernourished population from 49% to 25%. The infant mortality rate is estimated to have dropped to 41 per 1000 live births from 109 per 1000 live births in The country is on track to achieve this goal, said the report. MoFA move to train officers in India lands in House (December 22) The controversy over a decision of the Ministry of Foreign Affairs (MoFA) to send 28 newlyappointed third class gazetted officers to India for basic training in diplomacy has landed in the Nepalese parliament. Foreign Secretary Dr. Bhattarai informed the meeting that the 6

9 28 newly-appointed officers were being sent to India for basic diplomacy training free of cost from the Government of India at MoFA s request. He said MoFA was also arranging other professional training for the officers in countries like China, Malaysia and Japan. Though it was misleading for committee members to perceive a large officers being sent to India for training but MoFA initially planned to send the 28 officers in two batches. The proposed plan had to be amended as India decided to train all of them in a single course citing financial reason. Responding to queries of lawmakers why such a large number of officers were being sent to India for training, Secretary Dr. Bhattarai said they initially planned to send the 28 officers in two batches. The plan was changed as India decided to train all the officers in a single course, citing financial reason. (Source: The Republica) Valley DAOs to issue MRPs (December 23) The inter-ministries task force, formed for easy issuance of Machine Readable Passports (MRPs), today decided to issue MRPs from the District Administrative Officers of Kathmandu, Bhaktapur and Lalitpur from January 18. The task force meeting, held at the Ministry of Foreign Affairs (MoFA), however, decided that personalization service for all MRPs seekers would continue from Central Passport Office (CPO) based at MoFA. We decided to this effect to manage the crowd of MRP aspirants and enable easy issuance for them, Foreign Secretary Madan Kumar Bhattarai said. More than 1,500 people on an average have been queuing up at MoFA for MRPs every day. MoFA is going to issue the first MRPs from December 26. According to Bhattarai, district administrative offices of Kathmandu, Bhaktapur and Lalitpur will collect MRPs forms from respective district dwellers and later issue them after CPO Personalizes these MRPs. Citizens of the remaining 72 districts and Nepalese living abroad (embassies abroad) have to approach MoFA for the MRPs. A senior official at MoFA termed the decision a step towards decentralizing the issuance of MRPs. On Monday, the government had formed a nine member task force to ensure easy and secure issuance of MRPs, comprising joint-secretary level representatives from various ministries, including MoFA, Home, Finance, Information and Communication, and Transportation under the coordination of Chief of CPO, Mr. Bharat Raj Paudel. (Source: The Republica) 2. Bilateral Issues It is inevitable that the continued political instability in Nepal would neither be well received by Nepal s immediate neighbors nor by the international community. This is vindicated by the increasing trend of visits of special emissary as well as high level delegations from India and China. Both the neighboring countries have shown their serious stakes of their national security in Nepal. They seem to be competing with each other in attracting Nepal s attention through additional aid packages in a variety of sectors. Foreign aid including technical assistance has been pledged and stepped up to the government of Nepal in the field of security and education and development of cultural and religious sites. Special Emissary in the Capital (Aug 3) Former Indian Ambassador to Nepal Mr. Shyam Saran arrived in Kathmandu as a special emissary of Indian Prime Minister Man Mohan Singh. He held extensive consultations with top Nepali political leaders on present political impasses. Mr. Saran, an expert on Nepal in India, met top political figures and held discussions on delayed constitution drafting, stalled peace process and prevailing political confusion. Mr. Saran expressed Indian concern on political standoff and delay 7

10 in peace and constitution drafting process in Nepal. Revealing the purpose of his visit, as a neighbor, India desires stability and economic development in Nepal. Mr. Saran was India s Ambassador to Nepal till mid-2004 before he assumed office as Indian Foreign Secretary. He retired as foreign secretary in (Source: N/A) Chinese leaders meets Prez., PM (Sep 13) Chinese delegation called on President Dr. Ram Baran Yadav at Shital Niwas and sought assurance on Nepal s One China policy. The 21-member high-level delegation led by Mr. He Yong, Vice Premier and secretary at the secretariat of the 17th Central Committee of the Communist Party of China, sought assurance from Nepal that it would not allow any anti-china activities within its soil. The delegation reiterated the Chinese policy of non-interference and conveyed that it wishes to see other countries do the same. Dr. Yadav, in return, reiterated Nepal s stance on one- China policy. During the meet the delegation also expressed its serious concerns over the ongoing peace and constitution drafting process and hoped that the parties would collaborate to reach consensus soon. The delegation assured China s continued political and economic support to Nepal. The meeting also dwelt on President Yadav s proposed visit to China in October-end. Earlier, the delegation had called on Prime Minister Mr. Madhav Kumar Nepal and inquired about the peace and constitution drafting process. DPM and Minister for Foreign Affairs Ms. Sujata Koirala said that the impending visit of a high powered Chinese delegation to Nepal is a matter of immense pride for Nepal. (Source: N/A) MoU signed between Nepal and China (Sep 14) Nepal-China Chamber of Commerce and Industry and the China Council for Promotion of International Trade, Taizhou Sub-Council (CCPIT Taizhou) signed a Memorandum of Understanding (MoU) to promote investment in Nepal and foster economic and commercial relations between Nepali and Chinese business entrepreneurs. The two bodies agreed upon business extension and information sharing. (Source: N/A) Chinese team here for security talks (December 21) A six-member team headed by Director of Public Security Department of Tibet Autonomous Region Mr. Li Zhao arrived in Kathmandu on Tuesday to hold bilateral security talks. The Chinese officials are due to meet Secretary of Home Ministry Dr. Govinda Kusum. The one-day meeting will primarily dwell on exploring security related assistance from the Chinese side to Nepal s security organs, a Home Ministry official spoke on condition of anonymity because he was not authorized to comment. Mr. Li will also hold meetings with chiefs of Nepal Police, Armed Police Force and National Investigation Department. As always, the Chinese side will seek Nepal s firm commitment on one-china policy as well as Tibetan issue. We will seek and explore security related assistance from Chinese side that includes training to security personnel and logistic as well as technical support, the official said. A meeting of senior Nepali and Chinese officials in July had agreed to sit together regularly to exchange security related matters and the latest meeting is part of that, the official said. They also stood one on setting up a highlevel mechanism to share intelligence and information on security matters to contain anti-china activities in Nepal and agreed to tackle illegal cross-border activities. (Source: The Kathmandu Post) DPM leaves for China Deputy Prime Minister and Minister for Foreign Affairs, Ms. Sujata Koirala left for China on Sunday on a four-day visit. Deputy Prime Minister Ms. Koirala is scheduled to inaugurate a non-governmental organization 8

11 established in Chongqing of China and attend a function to be organized by the Institute of Himalayan Studies, according to the Ministry of Foreign Affairs. Talking briefly to reporters at the Tribhuvan International Airport, Ms. Koirala said the visit was not political. She also expressed confidence that Nepal and China would continue to work together in the field of training and research. (Source: Rastriya Samachar Samiti) Nepal-China cultural ties stressed (December 27) A delegation of Nepal-China Friendly Society, Lumbini, today met Mr. Zhou Bin, Chief of Culture Section of Chinese Embassy today and discussed maters related to mutual interest. The team led by Society s Chairman Mr. Narayan Sapkota stressed for more efforts to promote age-old relations between Nepal and China. Nepal-China relation is based on Panchasheel and more efforts should be made to take cultural relations between the two countries to people s level, he said. On the occasion, Society s founding member and Chairman of Rastriya Samachar Samiti Mr. Bal Krishna Chapagain shed lights on the importance of friendship between Nepal and China and development of the communication sector. He said the agreement to exchange news between Rastriya Samachar Samiti and China s state news agency Xinhua has helped strengthen relations between the two countries. At the programme, Chinese Embassy official Mr. Pin stressed for strengthening cultural relations between Nepal and China. (Source: The Kathmandu Post) India to focus more on Nepal, Bangladesh (December 31) As India readies to take up its non-permanent seat in the UN Security Council from next decision to focus on its neighbourhood, especially Nepal and Bangladesh. India Diplomats in Kathmandu won t call it a policy shift, but maintain that India s attention toward Nepal is on an upward trajectory. Top billing will be given to Nepal and Bangladesh, not Pakistan, reported the Times of India in its Thursday s online edition. With a new ambassador, Mr. Jayant Prasad, ready to drive Indian policy in Kathmandu, India will try to push for free and fair elections in Nepal where the Maoists contest elections after disarming, so that nobody has an unfair advantage. That has to be the crux of the political deal in Kathmandu, but it has to be done by the Nepalese themselves, the paper said. An Indian diplomat in Kathmandu told the Post that India s focus on Nepal continues to grow. This is not a policy shift. On July 4, 2009 President Ms. Pratibha Patil had said during her parliamentary address that India will pay more attention to its neighbourhood, he said. He said India is worried about the widening trust deficit at the inter-party and intra-party levels among major political forces in Nepal. Sources say though approached by different shades of opinion in Nepal asking for intervention India continues to hold aloof because active intervention doesn t make it friends among the Nepalese. Indian Foreign Secretary Ms. Nirupama Rao is scheduled to visit Kathmandu soon after Maoist leader Dr. Baburam Bhattarai visits India next week. Bhattarai s visit will be important, for firsthand assessment of current Maoist thinking, the report further said. Bhattarai s trip to India next week is confirmed and he will meet top Indian leaders, said Bhattarai s aide Bishwadeep Pandey. He added that Bhattarai s India trip is in line with the party decision. Bhattarai will be accompanied by Deputy Commander of the Maoist People s Liberation Army Mr. 9

12 Barshaman Pun in Nepal Seminar organized by Vivekananda Foundation in New Delhi. The Programme, scheduled to be jointly addressed by Indian and Nepali foreign ministers, will see a convergence of Nepali and Indian politicians, academics, former diplomats and experts. CPN-UML leaders Mr. KP Oli, Mr. Pradeep Gyawali, NC leaders Dr. Prakash Man Singh, Mr. Pradeep Giri and former Nepal Army Chief Mr. Rukmangad Katwal are among those scheduled to attend the seminar. (Source: The Kathmandu Post) Key Nepal-India deal likely (January 13) Nepal and India are likely to sign a mega bilateral pact worth US $ 250 Million (Rs 17 billion) during the upcoming visit of Indian Foreign Secretary Smt. Nirupama Rao Indian Premier Dr. Man Mohan Singh had announced extension of a new concessional line of credit US $ 250 million during President Dr. Ram Baran Yadav s visit to India last February. (Source: The Kathmandu Post) China pledges Rs. 1.1 b aid to Nepal Army (January 20) The Chinese government pledged a financial assistance about Rs.1.1 billion to Nepal Army to establish a health institute and improve infrastructures in the existing medical institutions run by the Army. This is the biggest aid ever committed by the northern neighbour to NA. (Source: The Republica) The Indian Embassy Press Release: Indian FS Rao visit to Nepal (January 26) The Foreign Secretary of India, Smt. Nirupama Rao paid an official visit to Kathmandu from January 18-20, During the visit, the Foreign Secretary gave a courtesy call on the President Dr. Ram Baran Yadav and Prime Minister Mr. Madhav Kumar Nepal. She also called on Chairman of Constituent Assembly and Speaker of Legislative-Parliament, Mr. Subash Nembang, Deputy Prime Minister and Minister for Physical Planning and Works Mr. Bijay Kumar Gachhadar, Deputy Prime Minister and Foreign Minister Ms. Sujata Koirala and Minister for Energy Dr. Prakash Sharan Mahat. The meetings focused on whole gamut of bilateral relations and measures to further expand and strengthen the close and multi faceted ties that exists between the two countries. The Foreign Secretary conveyed greetings of the President of India and underlined India s commitment to fulfilling the agreements made on Nepalese PM s visit to India in August She met with Nepalese political leaders from across the political spectrum and emphasized on her talk that India stands for a democratic, stable, peaceful and prosperous Nepal. She gave assurance of India s support the constitution drafting process and durable conclusion of peace process. She also met her counterpart Dr. Madan Kumar Bhattarai, Foreign Secretary of Nepal on issues of mutual interest. Ms. Rao urged speedy convening of meetings of various institutional mechanisms and implementation of projects being executed in Nepal with the assistance from the Government of India. The Foreign Secretary of Nepal assured that the Government of Nepal shall do its utmost to expedite the work of established mechanisms and other initiatives in order to deepen and enhance bilateral ties. (Source: The Telegraph Weekly) No Defense Aid from India says Bhandari (January 26) Defense minister Ms. Vidhya Devi Bhandari has dismissed media speculations that Nepal is getting supply of lethal weapons from India and stressed that there is no immediate plan to purchase any military hardware from India for the Nepal Army. However she admitted that there had been talks with the Indian side on resumption of supply of both lethal and non-lethal weapons for Nepal Army earlier. Since then no progress in that regard has been made although Nepal Army is in dire need of the weapons for training purpose. (Source: The Republica) Prez. to leave for India visit today (January 27) President Dr. Ram Baran Yadav is embarking on an official visit to India on Thursday. 10

13 President Dr. Yadav will be accompanied by a 17 member delegation for his two day visit to the southern neighbour. He is scheduled to hold meetings with his Indian counterpart Smt. Pratibha Patil, Indian Vice-President Mr. Hamid Ansari, Prime Minister Dr. Manmohan Singh, Foreign Minister Mr. S.M. Krishna and President of Indian National Congress Ms. Sonia Gandhi on Wednesday. In honor of Dr. Yadav Indian President Ms. Patil will give a banquet party the same evening. Dr. Yadav will hold meeting with Finance Minister Mr. Pranab Mukherjee, Union Home Minister P. Chidambaran, Defense Minister Mr. A.K. Antony and main opposition party leader Ms. Sushma Swaraj on Thursday. The Nepalese Embassy in New Delhi will organize a dinner party in the evening in honour of the President. He is scheduled to arrive home on February 5. (Source: The Republica) 3. Regional Issues South Asian Association for Regional Cooperation got its first woman Secretary- General from the Maldives where the 17 th SAARC summit would be held in November Nepal is poised to lead another regional grouping BIMSTEC for one year. Asian Development Bank honored the country in three best projects concerning infrastructure and livelihood. SAARC to get first woman secy gen Maldives former attorney-general Ms. Fathimath Dhiyana Saeed is likely to be appointed as the Secretary General of the South Asian Association for Regional Cooperation (SAARC) from March 1 after the three-year term of incumbent Secretary-General Dr. Sheel Kant Sharma expires on Feb 28, Ms. Saeed will be the first woman chief of the regional grouping in its 26 years of existence. An official at the Ministry of Foreign Affairs confirmed Ms. Saeed will succeed Sharma from March. Ms. Saeed, a former parliamentarian and attorney-general in her 30s, will also be JICA in Nepal (Sept. 3) Japan International Cooperation Agency (JICA) celebrated the 40th anniversary of JICA Volunteer Programme in Nepal in Japanese volunteers started to serve the developing countries since 1965 under the Japan Overseas Volunteers Cooperation (JOVC) funded by the Ministry of Foreign Affairs of Japan for providing official technical assistance. Since 1974, JOVC Secretariat has been integrated into JICA. However, JOVC office was established in 1970 in Nepal for socio-economic development in the country. In past 40 years, JICA volunteers have involved in different fields like agriculture, fruit cultivation, vegetables growing, fisherieslivestock development, food preservation, education, health, community drinking water, transportation, forestry communication, civil engineering, sports, women development, etc. (Source: N/A) the youngest ever chief of the regional bloc. Her name will be formally proposed by the Maldives at the SAARC foreign ministers meeting in February, said the official. (Source could not be identified) Next SAARC Summit in the Maldives (January 2) The Maldives will host the 17 th SAARC summit on November Citing the reasons of economic slowdown, the Maldives had earlier skipped hosting the SAARC summit. Later Bhutan did the honors. (Source: The Kathmandu Post) Nepal set to lead BIMSTEC (January 15) The 13 th Ministerial meeting of the BIMSTEC countries to be held in Myanmar next week will decide to this effect. Deputy Prime Minister and Foreign Minister Ms. Sujata Koirala will attend the meeting where she will assume charge of the chair for another year. This regional body of coastal areas of Bay of Bengal has identified 13 priority areas to extend cooperation which 11

14 include trade and investment, transport and communication, energy, agriculture, public health, poverty alleviation, counter-terrorism and transnational crime among others. The member states have led BIMSTEC on national basis in alphabetical order. (Source: The Kathmandu Post) Nepal first South Asian country for Climate Resilience Nepal is the first of nine Asian countries to begin a Global Pilot Programme to explore and design adaptation options funded under the $ 6 billion Climate Investment Fund (CIF). The Pilot programme for Climate Resilience, a $600 million fund under the CIF umbrella, is implemented through Asian Development Bank (ADB) and World Bank (WB). The programme is designed to help countries explore innovations and options for adapting to the growing impact of climate change. The Nepal Pilot Program begins with a series of workshops engaging government, community organizations, the private sector and international donors. An important part of its 4. International Issues Nepal is set to chair the Global Coordinating Bureau of 48 Least Developed Countries. At the forthcoming LDCs summit in Istanbul, it is expected that the LDCs would seek debt relief, problems relating to land-locked LDCs and achieving the Millennium Development Goals (MDGs), among others. Nepal is ranked 130th of the 139 countries surveyed in the World Competitiveness Report Factors influencing the lower ranking are attributed to political instability, corruption, policy ambiguity, inefficient bureaucracy and inadequate supply of infrastructure. The European Commission agrees to provide equivalent NRs. 144 million to the Bhutanese refugees. EC aid for Bhutanese (Sept. 5) European Commission has agreed to provide up to Rs. 144 million to Bhutanese refugees in Nepal for quality food, according to a press design will be to consult Nepal s stakeholders as widely as possible. Funding for Climate Resilience Projects in Nepal will be in the form of grants with concessional lending also available. (Source: N/A) ADB honours 3 best projects The Asian Development Bank (ADB) has awarded three best performing projects that contributed to improving the lives of people by providing jobs and skill-buildings as well as income generating opportunities in rural parts of the country. The projects were Community Livestock Development Project, Road Connectivity Sector I Project and Decentralized Rural Infrastructure and Livelihood Project. Barry J Hitchcock, Country Director of ADB said that the award was of reorganization for the excellent performance, efficiency in implementation and meeting of targets. He added that successful implementation of the projects has significantly contributed towards maximizing ADB s overall contribution. release issued by the EC. Humanitarian Aid and Civil Protection Office of EC will provide the amount to the World Food Programme. WFP is implementing a programme entitled Food Assistance to the Bhutanese refugees who have been living in the seven camps of the eastern Nepal for the last two decades. According to the press release, EC covers a period of six months. The EC aid to Bhutanese refugees started from (Source: N/A) Nepal set to chair LDC Group Nepal is taking over as Chair of the Group of 48 Least Developing Countries (LDC s) for the next three years after Bangladesh s tenure as the Chair expires. According to the Ministry of Foreign Affairs (MoFA), Nepal is taking over from Bangladesh from January 1, 2010, even though the handover process will start from September. The Foreign Ministry is preparing to constitute a ministerial level committee to 12

15 look after affairs here in Kathmandu and New York simultaneously. Nepal will be able to lobby, arrange meetings and raise issues pertaining to the LDC community in the UN and other international fora more effectively after assuming the Chair. Issues that top the agenda of LDCs are global economic meltdown, trade and transit facilities, debt relief, problems relating to landlocked LDCs and achieving the Millennium Development Goals (MDGs) set by the UN. Nepal is preparing for the fourth LDC s Summit being organized by the United Nations at Istanbul, Turkey on May, The Ministry is setting up a separate cell to effectively handle its new responsibilities. (Source: N/A) ICRC unveiled The International Committee of the Red Cross (ICRC) unveiled a Nepali translation of the Geneva Convention and three additional protocols on August 12, during a programme in the capital to mark the 60th anniversary of the Geneva Convention. Nepal has adopted the four protocols of the Geneva Convention, but is yet to adopt the three additional protocols, which focus on protection to victims of armed conflicts and place limits on the way wars are fought. (Source: The Kathmandu Post) The World Competitiveness Report The World Competitiveness Report for has placed Nepal s business competitiveness figure in bottom 10 among 139 economies that were surveyed by the World Economic Forum. Nepal ranks 130th due to political instability, corruption, policy ambiguity, inefficient bureaucracy and inadequate supply of infrastructure. Nepal scored the highest among the 10 countries placed at bottom - in the annual list that has put Nepal 125th of the report among 133 economies. Nepal was ranked 126th in among 134 economies. Nepal is also at the bottom in South Asia, where India ranks 51st, Sri Lanka 62nd, Bangladesh 107th and Pakistan 123rd. The report is based on 12 key indicators under which there are 112 variables to measure country s competitiveness. Benett meets PM Nepal (Aug 5) Mr. Richard Benett, Representative of the UN High Commissioner for Human Rights in Nepal (OHCHR-Nepal) met Prime Minister Madhav Kumar Nepal to bid farewell before departing at the end of his assignment. (Source: N/A) Nation greets Mandela Prime Minister Madhav Kumar Nepal extended hearty best wishes to Senior Statesman of South Africa and Nobel Peace Prize winner Nelson Rolihlahla Mandela on the occasion of his 90th birthday on July 18. In a message, Premier Nepal spoke highly of Mandela, describing him as an apostle of peace, non-violence, equality and justice, a harbinger of South Africa s freedom struggle and a tenacious fighter for the cause of human rights. He spent 27 years imprisoned before becoming the country s first black President. (Source: N/A) Presentation of Letter of Credentials Ambassadors designate from United Kingdom H.E. Dr. John Anthony Tucknott and Denmark H.E. Morten Jesperson presented their Letter of Credentials at the Rashtrapati Bahawan, Shital Niwas on August Similarly, ambassadors designate from France, Russia and Democratic People s Republic of Korea H.E. Mr. Jean Charles Demarquis on 13 September 2010, H. E. Dr. Sergey Vasilievich Velichkin on 16 December 2010 and H. E. Mr. Kim Yong Su on 3 January 2011 respectively presented their letter of credence in the order of precedence. 13

16 IFA Programmes IFA conducted four seminars on various facets of Nepalese foreign policy. A seminar on Challenges of Nepal s Foreign Policy was organized with support from Friedrich-Ebert- Stiftung on August 9, Similarly, IFA organized a seminar on Sino-Nepal Relations: Harmonious Friendships in collaboration with TV Journalists Association of Nepal and Tsinghua University International Center for Communication, Beijing, China on August Third seminar was organized with Nepal Pavilion Company on Investment Opportunity in Nepal on September 30, Fourth seminar was organized with the Embassy of the Republic of Korea to Nepal on November 2010 entitled South Asia and RoK Partnerships: Future Prospects. Brief summaries of the seminars are as follows: 1. Challenges of Nepal s Foreign Policy Nepal s foreign policy has been overshadowed by domestic politics which is remaining unstable and uncertain. Challenges to its foreign policy are experienced more from domestic politics rather than from regional and international levels. The present state of Nepal has become weak due to activities mostly focused on garnering support from political parties and other stakeholders for the government of the day. Appropriate policy level intervention is required in conducting Nepal s relations at the bilateral and multilateral levels. The trajectory of Nepal s modern international relations dates back to the period of 1940s, especially, during numbered days of Rana régime which established diplomatic relations with United Kingdom, India, USA and France. The country s experience in and support to the activities of United Nations signals Nepal s commitment to the cause of peace and security not just at home but the world at large. It has played a creative role in non-aligned movement since participating in the Bandung Conference in 1960, a precursor to Non-aligned Movement. Since its inception Nepal has been following the policy of non-alignment and played an active role in the Non-Aligned Summits and meetings. The country pays full regard in its relations with her immediate neighbors, India and China. All said and done Nepal s present preoccupation lies with its focus given to promote and develop economic diplomacy. In his welcome address Executive Director Mr. Tika Jung Thapa underlined the importance of coordinated approach in Nepal s foreign policy backed up by diplomatic finesse to respond to unforeseen challenges. In her keynote address, DPM and Minister for Foreign Affairs, Madam Sujata Koirala, stated that it was very important to reduce the country s aid dependency and ensure a higher rate of economic growth by pursuing economic diplomacy. Presenting a paper, former Ambassador Dr. Bekh Bahadur Thapa mentioned that the country was in a difficult juncture and if we did not seize the time in favor of our national interests then our continuation as a nationstate could flounder. Also it was a tricky time to dwell on the subject of reorientation of foreign policy as Nepal s major political parties were at loggerheads on the question of key aspects of constitution, yet to be promulgated. Presenting his paper Prof. Bishwambher Pyakuryal mentioned that economic diplomacy once confined to domestic borders has been replaced of late by the country s interaction with global forces, civil society organizations and private sectors. In his own words, Nepal s current economic woes and emerging priorities necessitate reengineering economic diplomacy-specific foreign policy for economic partnership largely with Nepal s trading partners. Furthermore, he added that the time has now come to make a paradigm shift from the notion of economic diplomacy subject to budget constraint towards the system of budget, subject to the merit of 14