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Nepal and China have agreed to expedite the implementation of an agreement to boost trade, increase road and aviation links and promote tourism.
The decision to speed up implementation comes five months after the signing of a cooperation agreement during Chinese Premier Zhu Rongji's visit to Kathmandu in May.
According to sources in the foreign ministry in Nepal, trade and all other bilateral issues were discussed at length at a foreign secretary-level meeting in Beijing last week.
Under the agreement, China is to construct a civil service hospital, the Rasuwa-Syaphrubesi road and a polytechnic institute in Nepal.
The 65-km road would be the shortest route from Tibet to Kathmandu. Nepal and China have only one road link now, a 120 km long road through the Nepal-China border in the east.
"According to the understanding reached in Beijing last week, a Chinese study team is to arrive soon for the purpose of construction of these projects," a member of the Nepali delegation at the talks told IANS.
"Both sides agreed to open more border points for bilateral trade and China has also agreed to consider Nepal's request to include Beijing and Xian as two more points beyond Shanghai for flights," the official said.
According to a foreign ministry official, Nepal asked the Chinese side to grant visas to Nepali nationals upon arrival at Hong Kong airport, a privilege that was scrapped after Hong Kong was handed back to China in 1999.
"Nepal expects the restoration of that privilege and the Chinese authorities have assured us that they would forward it (the request) to the Hong Kong Special Administrative Region," the official said.
A senior official at the ministry of finance said during the talks that Nepal called for a reduction of the nearly $16 million trade gap in favour of China through preferential treatment for Nepali goods.
"Nepal also asked China to open passes along the Nepal-Tibet border for trade and remove obstacles for Chinese tourists visiting Nepal and got a positive response from the Chinese side," the official said.
Observers in Kathmandu say the Chinese have never before been so responsive to Nepal's demands.
"The recent exchange of high-level visits between the two countries has created room for speculation that some interesting strategies lie ahead as the Chinese are considering Nepal as the most crucial strategic point to balance the growing American and Pakistani presence to counter India," a China watcher said.
Indo-Asian News Service
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