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cede power to political parties, India backed a "twin-pillar theory"
in Nepal. It held that a constitutional monarchy and a multiparty
democracy should co-exist. Today, with the Maoists winning the
election and the king's future in doubt, the "only pillar now is the
will of the people of Nepal," said Deb Mukharji, India's former
ambassador to Nepal.

India has said it will support a Maoist-led government in Nepal. The
Maoists have demanded a review of Nepal's political and trade treaties
with India, which they claim have been tilted in New Delhi's favor.
India has responded that it is ready to review the accords. Of the
total of $600 million in foreign investment Nepal had received as of
October, some 43% came from India, according to the latest data
available from the Nepalese government.

The U.S. ranked second, with 13% of the total. But the Maoists' rise
to prominence poses a serious dilemma for the U.S. Washington still
considers the Maoists a terrorist organization.

China -- the third-largest foreign investor in Nepal -- in late April
sent a delegation to Katmandu. Officials promised continued assistance
and an expansion of areas of cooperation with Nepal. China has plans
to increase its rail service from Lhasa in Tibet to Khasa, a Chinese
border town through which most Chinese goods come to Nepal. The
Nepalese government dealt strongly with Tibetan protesters in their
country, and the Maoists have made it clear that they consider Tibet
part of China.

Write to Krishna Pokharel at krishna.pokharel at wsj.com

<http://timesofindia.indiatimes.com/World/US_warms_up_to_Maoists_in_Nepal/a=
rticleshow/3005865.cms>
US warms up to Maoists in Nepal
3 May 2008, 0050 hrs IST,TNN

KATHMANDU: Less than a month after their stunning victory in the
historic constituent assembly election, Nepal's Maoist party has
pulled off a major diplomatic coup with their most bitter critic, the
US that still officially regards them as a terrorist organisation,
making overtures to them.

The former guerrillas celebrated May Day with additional zeal after
the US ambassador to Nepal Nancy Powell held a meeting with Maoist
chairman Prachanda at his residence in Kathmandu on Thursday.

The news of the meeting =97 the first of its kind=97was kept tightly under
wraps till Friday, when the envoy left for Washington to relay the
results of her encounters with the future prime minister of Nepal as
well as the incumbent premier, Girija Prasad Koirala.

"US Ambassador Nancy Powell met on Thursday with CPN (M) Chairman
Pushpa Kamal Dahal to discuss the outcome of the April 10 elections,
CPN (M) plans for the Constituent Assembly, and the future of US-Nepal
relations," the US Embassy in Kathmandu said in a statement issued on
Friday.

"This was their first meeting. The meeting occurred in advance of
Powell's return to the United States for consultations on US-Nepal
relations."

At the meeting, on her side, Powell provided an overview of current US
government assistance to Nepal and sought Prachanda's assurances that
the new government led by his party would respect current donor
agreements and ensure the safety of those implementing them.

Powell also urged the Maoist leader to ensure that "all Maoist
organisations illustrate their commitment to the political process
through their words and actions".

Calling the meeting "extremely positive", Prachanda on his side gave
his assurance that his party would remain committed to multi-party
democracy.

Though the Maoists still remain on the US State Department's watchlist
of terrorist organizations which are banned in the US, there was an
indication of thaw last month after Washington said it would continue
its support to Nepal. Normally, the US freezes all assistance to
governments that include any party or individual placed on the terror
list.

The meeting comes after Prachanda met Powell in a group at a meeting
hosted by the UN. Asked if she warded him off as a terrorist, a
smiling Prachanda told TOI , "She neither said anything negative nor
ask any question. She just listened. We hope she would ask her
government to create a conducive environment and lift the terrorist
tag on us."

Only last month, former US president Jimmy Carter had endorsed the
Maoists, saying that they were more the victims of violence during the
election than the aggressor. He had also said that it was a serious
error of the Bush administration to cut off all channels of
communication with the Maoists, even after they had laid down arms and
joined the peace process and advised Washington to do business with
the former rebels.

<http://news.xinhuanet.com/english/2008-05/02/content_8093051.htm>
U. S. ambassador to Nepal meets CPN-M leader for the 1st time
www.chinaview.cn 2008-05-02 20:48:00

KATHMANDU, May 2 (Xinhua) -- U.S. Ambassador to Nepal Nancy Powell had
a formal meeting with chairman of the Communist Party of Nepal
(Maoist) (CPN-M) Prachanda for the first time, the U.S. Embassy said
Friday.

According to a press release issued by the U.S. Embassy in Nepal
Friday morning, "The U.S. Ambassador Powell met with chairman of the
CPN-M Prachanda (Puspa Kamal Dhahal) to discuss the outcome of the CA
elections, CPN-M's plan for the CA and the future of the U.S.-Nepal
relations."

Powell said that the U.S. government was ready to assist Nepal for
stability and democracy and expressed confidence that the new
government will ensure a favorable environment for donors and
investors, according to the statement.

"Powell encouraged Prachanda to ensure that all CPN-M organizations
illustrate their commitment to the political process through their
words and actions," said the statement.

During the meeting, chairman of the CPN-M Prachanda drew the attention
of Powell towards the fact that U.S. has listed CPN-M in its terrorist
watch list.

The U.S. government is yet to remove the CPN-M from the terrorist list
even after CPN-M became largest political party of Nepal following
their victory in the Constituent Assembly (CA) elections held
recently.

Powell returned to the U.S. on Friday for consultations on U.S.-Nepal
relations.

<http://www.financialexpress.com/news/Nepal-Maoists-to-study-Left-govts-in-=
Kerala--West-Bengal/304608/#>
Nepal Maoists to study Left govts in Kerala, West Bengal
AM Jigeesh
Posted online: Saturday , May 03, 2008 at 2211 hrs

New Delhi, May 2The Maoists in Nepal, who are about to run a coalition
government in the country after emerging as the single largest party
in the recent General Elections, are eager to study the Left Front's
experiences in running governments in Kerala and West Bengal.

The Maoist leadership has discussed this with CPI(M) politburo member
Sitaram Yechury and evinced interest to visit Kerala and West Bengal
to study how the CPI(M) led governments use the "existing system for
social change".

According to CPI(M) sources, the Maoists have shown a "special
interest" in studying the "Kerala model of development". "They wanted
to study how Kerala remained top in all social indicators like health,
literacy and education. They also felt that Kerala could well be a
model on issues like implementation of land reforms and building
public health infrastructure," sources said.

Meanwhile, Yechury completed a two-day visit in the neighbouring
country on Friday. During the visit, he met senior Maoist
functionaries including Pushpa Kumar Dahal (Prachanda), Baburam
Bhattarai and CP Gajurel. He also held discussions with senior
political leadership in the country including Prime Minister GP
Koirala and CPN(UMAL) leader Madhav Kumar Nepal.

There other reason for the Maoists' interest was that the first
"coalition ministry" in the history of India was experimented in
Kerala that too led by the CPI(M). Former CPI(M) general secretary EMS
Namboodiripad was the chief minister of a coalition government
comprising seven parties in second half of 1960s. "In Nepal also the
Maoists are about to head a seven-party coalition ministry," Left
sources said.

The Maoists had already made it clear that for economic development of
the poor country, they are ready to take the "capitalist path".

The CPI(M)'s newfound love with the Maoists and Yechury's active
involvement to bring the CPN(M) to the mainstream has also to be
considered as an interesting development. The CPI(M) has a
long-standing relation with the CPN(UML). Now it has to be watched
that whether the Marxists will invite the Maoists for their
conferences or other events. The CPI(M) has already supported
Prachanda's demand of scrapping the 1950 treaty between India and
Nepal.

<http://www.bloomberg.com/apps/news?pid=3D20601091&sid=3DabOnWJmlDZFM&refer=
=3Dindia>
India May Review Trade Treaty With Nepal's Communists (Update1)

By Bibhudatta Pradhan and Jay Shankar

April 30 (Bloomberg) -- India is willing to review a security and
trade treaty with Nepal after communist former rebels announced plans
to scrap the accord when they form a government following their
victory in this month's elections.

``They have spoken about replacing it or changing it in order to bring
the relationship to a new and higher level,'' Indian Foreign Secretary
Shivshankar Menon said in New Delhi yesterday. ``We will be happy to
work with Nepal to that aim.''

Prachanda, head of the Communist Party of Nepal (Maoist), said during
the election campaign the 58-year-old treaty is unequal and a new
accord is needed to reflect modern realities between the countries. He
reaffirmed that stance during a meeting with the new Indian ambassador
at the weekend.

India and Nepal signed a Peace and Friendship Treaty in 1950 defining
their security and trade ties. India is Nepal's biggest trading
partner, exporting $1.8 billion of goods and importing $654 million in
the year to July 2007, according to the Federation of Nepalese
Chambers of Commerce and Industry.

India supplied military equipment to Nepal's army and helped it combat
the 10-year Maoist insurgency to install a communist republic in the
country. The civil war ended in 2006 when the rebels signed a peace
accord and joined an interim government to prepare for elections.

Treaties Reviewed

Prachanda, whose real name is Puspa Kamal Dahal, also wants a review
of all other treaties between the two countries. The Maoists have made
clear they are committed to peace, multiparty democracy and economic
progress and India's leaders should work with the new government, he
said earlier this month.

The Maoists won 220 seats in the April 10 election for a 601-member
assembly that will draft a new constitution and declare a republic,
ending almost 240 years of monarchy in the country that lies between
India and China. The Maoists said April 24 they will form a new
government within a month.

China may challenge India's influence in Nepal after the victory of
the communists, analyst Joe Thomas of the New Delhi- based Observer
Research Foundation said.

``Economic assistance to Nepal is one area where both the countries
will contest,'' Thomas said. ``It is here where China's political and
economic muscle will come to play.''

Nepal imported $261 million of Chinese goods in the year to July 2007,
while its exports stood at $5.9 million.

Terai Region

Nepali Congress, the nation's oldest party, won 110 seats in the
ballot, the CPN (Unified Marxist-Leninist) won 103 and the Madhesi
Janadhikar Forum, representing the Terai region bordering India, has
52. Terai has open borders with India's West Bengal state, northern
Uttar Pradesh and Bihar and Uttaranchal.

``For India, Nepal is not just any other neighbor,'' said Brahma
Chellaney, professor of Strategic Studies at the Centre for Policy
Research, a New Delhi-based body. ``It is linked with its security
system.'' When China increases its influence in Nepal, it has a direct
bearing on India's security, he said.

The open border policy ``is only sustainable'' if India's security
perimeter runs to Nepal's 1,414-kilometer (876-mile) frontier with
China, Chellaney said.

``India will have to do something drastic and shut this open border,''
he said. ``It is imperative now.''

China, which fought a brief border war with India in 1962, didn't
openly back the Maoists during their insurgency, Professor Gopalji
Malviya, head of defense and strategic studies at the University of
Madras, said by telephone from the city of Chennai.

``China will woo Nepal by giving economic aid and military assistance
to keep Nepal within their ambit of foreign policy affairs,'' he said.

People's Choice

China respects the choice of the people of Nepal and the ``social
system and development road'' they have chosen, Foreign Ministry
spokeswoman Jian Yu said after the election, according to the official
Xinhua News Agency. China will continue to provide ``assistance within
its ability,'' she said.

Having good relations with China is ``without doubt'' desirable, said
Gopal Prasad Pokharel, executive director of the Kathmandu-based
Institute of Foreign Affairs, a semi-autonomous body involved in
formulating Nepal's foreign policy.

``We cannot underestimate our unique and extensive bilateral and
traditional relationship with India,'' he said by telephone. ``The new
government will maintain equal proximity and the equidistant
relationship being pursued so far by Nepal.''

To contact the reporters on this story: Bibhudatta Pradhan in New
Delhi at bpradhan at bloomberg.net; Jay Shankar in Bangalore at
jshankar1 at bloomberg.net
Last Updated: April 30, 2008 02:42 EDT

<http://www.kantipuronline.com/kolnews.php?nid=3D145461>
World Bank officials meet PM, Maoist leadership

Kantipur Report

KATHMANDU, April 29 - Visiting senior World Bank officials Tuesday
assured Prime Minister Girija Prasad Koirala and the Maoist leadership
that the monetory body would continue to extend assistance for
hydropower development in Nepal.

The visiting delegation of eleven incumbent directors of the World
Bank gave the assurance during a meeting with PM Koirala at his
official residence at Baluwatar in the capital this morning.

According to the PM's foreign affairs advisor Aditya Baral, the World
Bank's representatives enquired about the kind of projects the Nepal
Government wanted the Bank to invest in following the transformation
of the country after conflict.

PM Koirala said poverty and unemployment can be eliminated if the
country can make exemplary progress in the hydropower sector.

Following the PM's remark, the World Bank's representatives said that
the issue will be put forward at the Bank's next meeting, sources
said.

Also today, the World Bank officials met with the Maoist leadership
and discussed the Bank's future assistance and the party's economic
plan and policy.

The team of World Bank officials, who arrived here in the capital four
days ago, are leaving for India today.

Posted on: 2008-04-29 01:29:23 (Server Time)
--=20
Yoshie
<http://montages.blogspot.com/>